Abengoa Sa · OTC:AGOAF

Abengoa Sa — Debt Investor Presentation (March 2010)

39 slides from Abengoa Sa's debt investor presentation, March 2010

  1. Slide 1: Credit Update

    ABENGOA With the sun … we produce thermoelectric and photovoltaic electric energy Innovative Solutions for Sustainability Credit Update With biomass … we produce ecological biofuels and animal feed With waste … we produce new materials through recycling, and we treat and desalinate water With inform

  2. Slide 2: Disclaimer

    ABENGOA Disclaimer The information contained in this document has been provided by Abengoa, S.A. (“Abengoa”) . The information and any opinions or statements made in this document have not been verified by independent third parties, therefore, no representation or warranty, expressed or implied, is

  3. Slide 3: Contents

    ABENGOA Contents 1 Overview of Abengoa 2 Financial Performance 3 Key Credit Highlights 4 Capex Plan 5 Exhibits 3

  4. Slide 4: Overview

    ABENGOA Overview Business description Geographical distribution by revenues (2009) Africa Asia ƒ Leading global technology company in energy 3.4% 7.9% – Large operator of power transmission, water concessions, renewable energy and recycling assets Spain – Develops proprietary technology in solar pow

  5. Slide 5: Main Drivers

    ABENGOA Main Drivers From global trends… … to concrete business opportunities ƒ Solar power global installed capacity will be growing at 13% per year from 2010 to 2050 reaching 3,700 Mw (Greenpeace, “EREC Energy Revolution”) ƒ Increased Energy Demand - Demand expected to increase between 40% ƒ Biofu

  6. Slide 6: Unique Business Model and Successfully Proven Strategy

    Unique Business Model and ABENGOA Successfully Proven strategy 1ƒ Unique Engineering 2ƒ Asset owned operations capabilities …Allows to build ƒ Solar CSP (1) ƒ Power Transmission lines Scale through constructing ƒ Desalination government owned assets ƒ Biofuels and third parties Energy Largely regula

  7. Slide 7: Corporate Structure - Committed and Experienced Management Team

    Corporate Structure - Committed and ABENGOA Experienced Management Team ABENGOA Felipe Benjumea, Chairman & Amando Sánchez, CFO CEO ƒ CFO since 2003 ƒ CEO since 1989 ƒ Joined in 1998 ABENGOA ABENGOA BEFESA ABEINSA TELVENT SOLAR (100%) BIOENERGY (97%) (97%) (100%) (40%) Santiago Seage, CEO Javier Sal

  8. Slide 8: Contents

    ABENGOA Contents 1 Overview of Abengoa 2 Financial Performance 3 Key Credit Highlights 4 Capex Plan 5 Exhibits 8

  9. Slide 9: Financial Performance Highlights

    Financial Performance ABENGOA Highlights Sustained historical two-digits growth with increased margins, even in a very tough environment Sales (M€) EBITDA (M€) Net Income (M€) 7% :1 0% 1% % GR +1 4% 2 23 :2 CA + GR 7% : 4,147 4,147 170 170 GR A + 3 CA C 3,769 750 750 140 541 18,1% 18,1% 14,3% 866 10

  10. Slide 10: Favorable Outlook

    ABENGOA Favorable Outlook + 10 % Positive sales performance in 2009 vs 2008 ~30.6 bn€ Order backlog in concession activities (average life of 24 years) (1) ~7.6 bn€ Order backlog from contracting activities (32 months of sales) (1) < 30% Revenue diversification contribution of top 20 clients (1) As

  11. Slide 11: Successful track-record in the banking and debt markets

    Successful track-record in the ABENGOA banking and debt markets ƒ Excellent track record in capital markets – 200 M€ 6.875% 2014 Convertible Bond issued in June 2009 – 300 M€ 9.625% 2015 Euro Bond issued in November 2009 – 250 M€ 4.5% 2017 Convertible Bond issued in January 2010 ƒ Excellent reputati

  12. Slide 12: Financial Model

    ABENGOA Financial Model Balance of non-recourse Project Financing and Corporate Debt keeps financial discipline ƒ Non-recourse financing (NR) on a project by project basis: used to fund significant investments. Capex commitments are subject to availability of long-term funding. ƒ Corporate Debt (ex

  13. Slide 13: Financial Model: Non-recourse Debt

    Financial Model ABENGOA Non-recourse Debt Non-Recourse Debt ƒ Matched with cash-flow generation profile of projects and investments: - The long-term concession / commercial agreements (15 to 30 years) of project finance are suitable to higher leverage of such projects - Repayment instalments follow

  14. Slide 14: Financial Model: Long Term Corporate Debt

    Financial Model ABENGOA Long Term Corporate Debt Long Term Corporate Debt ƒ Credit facilities: - 1,800 M€ in three 600 M€ syndicated facilities (average pricing of E+67.5bps) due in 2011 and 2012: Santander, BNP Paribas, Societe Generale, ING, Citigroup, La Caixa, Caja Madrid as some of the MLA’s. -

  15. Slide 15: Corporate Debt Refinancing Strategy

    ABENGOA Corporate Debt Refinancing Strategy Abengoa Forward Start Facility (FSF) 1,533 M€ financing ƒ 2 year extension of July 2010 (266 M€) and July 2011 (1,266 M€) maturing Existing Facilities only; (2012 maturities will remain) ƒ Proposed pricing for banks agreeing to the extension: 275 bps until

  16. Slide 16: Financial Model: Long Term Corporate Debt

    Financial Model ABENGOA Long Term Corporate Debt Long Term Corporate Debt ƒ Committed to maintain our corporate debt ratio below 3x ƒ This is the only covenant of our corporate credit facilities, as agreed with our banks since 2002, an also incorporated in the covenant package of the 300 M€ February

  17. Slide 17: Net Debt Analysis & Covenant

    Financial Model ABENGOA Net Debt Analysis & Covenant Net Corporate Debt/Ebitda ratio well below 3x contractual limit (1) Major Adj (€ in Million) 31 Dec.09 .Jan10 & Febr10 Net debt (corporate) + Debt with credit institutions & leasings 2780 + Notes and Convertible bond 506 + Convertible bond due 201

  18. Slide 18: Financial Priorities

    ABENGOA Financial Priorities ƒ Reinforce Financial Structure: - Maintain Corporate Net Debt / Ebitda below 3x - Raise new equity at subsidiaries: • At Business Unit level: Befesa, Abengoa Solar, Abengoa Bioenergy • At Project level: through partnerships - Keep strong liquidity position (1,290 M€ as

  19. Slide 19: Solid operating policy and tight audit controls

    Solid operating policy and tight ABENGOA audit controls ƒ Adequate internal control systems in place to: - Monitor and evaluate business risk - Guarantee the accuracy of financial information ƒ Policy to hedge interest rates, FX and commodity price risks ƒ First European entity to undertake Sarbanes

  20. Slide 20: Contents

    ABENGOA Contents 1 Overview of Abengoa 2 Financial Performance 3 Key Credit Highlights 4 Capex Plan 5 Exhibits 20

  21. Slide 21: In summary: Key Credit Highlights

    ABENGOA In summary Key Credit Highlights 9 Well balanced, diversified and resilient business 9 Activities supported by solid market trends 9 Unique business model that boosts organic growth 9 Experienced and committed management team 9 Strong financial performance 9 Healthy and predictable backlog 9

  22. Slide 22: Contents

    ABENGOA Contents 1 Overview of Abengoa 2 Financial Performance 3 Key Credit Highlights 4 Capex Plan 5 Exhibits 22

  23. Slide 23: Detail of committed capex plan

    Detail of comitted capex plan ABENGOA ƒ Committed Capex Programme: 2,437 M€ - Non-recourse debt and partners: 1,727 M€ - Funds from Abengoa Corporate: 710 M€ ƒ 100% of non-recourse debt is committed in M€ as of 31 Dec 2009 Capex from Abengoa Entry in Abengoa Capacity (%) Country Operation Financing

  24. Slide 24: Updated Capex Plan

    ABENGOA Updated Capex Plan ƒ 10 new CSP projects awarded feed-in tariff in Spain; capex of ~2,500 M€ - Flexibility to build these projects over the next 3 years - Awarded, but not committed. Commitments as financing is secured o/w Capex from Abengoa Total Abengoa M€ Capacity (%) Location Status Cape

  25. Slide 25: Sources & Uses of Capex Programme

    ABENGOA Sources & Uses of Capex Programme Funding of the capex programme to be contributed from Abengoa Corporate is covered by existing cash and Corporate Ebitda generation: Committed Non-committed Total M€ ƒ Capex horizon 2010-2012 : 2,437 2,500 4,937 ƒ Financed by : - Committed Non-recourse debt

  26. Slide 26: CSP projects

    ABENGOA CSP projects ƒ Key highlights - Regulation: predictability in cash flows thanks to feed-in-tariff (Spain) - Proven technology: Parabolic trough solar power plants have been in existence for almost 50 years (Harper Lake Solar Funding Corp. rated BBB- / Baa2) - In-house experienced EPC contrac

  27. Slide 27: CSP projects: Illustrative cash-flow profile

    ABENGOA CSP projects Illustrative cash-flow profile for a 50 MW CSP plant EUR in millions year -1 -2 1 2 3 4 5 6 - 34 Construction Business a FCF from construction, development, equipment, technology fees… 20 20 Corporate & Operational Business b FCF from Management Fees and O&M Margins 1 1 1,25 1,3

  28. Slide 28: Contents

    ABENGOA Contents 1 Overview of Abengoa 2 Financial Performance 3 Key Credit Highlights 4 Capex Plan 5 Exhibits 28

  29. Slide 29: Income Statement

    Financial Performance ABENGOA Income Statement Financial highlights CAGR% M€ 2004 2005 2006 2007 2008* 2009 (04-09) Sales 1,746 2,024 2,677 3,214 3,769 4,147 18.9% EBITDA 180 216 288 384 541 750 33.0% EBIT 127 163 219 286 363 431 23.4% Net Interest 60 48 95 152 246 199 42.2% Net Income 52 66 100 120

  30. Slide 30: Key Balance sheet data

    Financial Performance ABENGOA Key Balance sheet data M€ 2004 2005 2006 2007 2008* 2009 Fixed assets 668 891 1,263 2,097 2,552 3,355 Fixed assets in non-recourse activities 491 682 1,146 1,638 2,292 3,623 Cash and short-term financial investments (mostly public debt repos and deposits) 563 815 1,510

  31. Slide 31: Cash-Flow Statement split by Corporate / Non-Recourse

    Financial Performance ABENGOA Cash-Flow Statement split by Corporate / Non - Recourse 2007 2008 2009 Non Non Non (€ in millions) Corporate recourse Total Corporate recourse Total Corporate recourse Total Gross Cash Flows 261 191 452 370 257 627 634 282 916 Intragroup eliminations -69 -86 -165 Ebitda

  32. Slide 32: Detailed Debt Structure

    Financial Model ABENGOA Detailed Debt Structure Corporate Consolidated Net debt: €1,257m Net debt: €4,191m Ebitda: €634m Preoperational: €2,373 Ebitda: €750m Operating cash-flow from corporate Corporate debt at Abengoa level (non project-finance entities) Op. cash flows Engineering and industrial co

  33. Slide 33: Engineering Capabilities

    1 Engineering Capabilities ABENGOA Engineering, For third procurement and For own assets Experience in the past five years Backlog (M€) parties construction of… „ CSP solar plants „ 31MW built; 300MW under „ 2,345 9 construction Renewable energy „ ISCC(2) solar plants „ 150MW + 470 MW under „ 218 9

  34. Slide 34: Asset-owned operations

    2 Asset-owned operations ABENGOA Concession Remarks Locations Assets revenues (M€)* „ First two commercial CSP towers „ Spain „ 41MW in operation „ 14,530 (1) Renewable energy „ Largest CSP plant in the world under „ US „ 300 MW under construction in development (280MW, Solana) „ Rest of World Spain

  35. Slide 35: Technology development

    3 Technology development ABENGOA Technology development as growth generator in the field of sustainability in Energy and Environment ƒ 90 M€ invested in R&D in 2008, ca. 2.2% of sales ƒ World pioneer in CSP solar technologies ƒ >900 people in R&D+i ƒ World leader in development of 2nd generation ƒ >

  36. Slide 36: Corporate (ex Non-Recourse) Activities: Description and Ebitda Breakdown

    Corporate (“ex Non-Recourse”) Activities ABENGOA Brief Description and Ebitda Breakdown ƒ Ebitda at Corporate entities (“Corporate Ebitda”) is growing rapidly based on solid drivers and large backlog ƒ Based on current backlog, we expect Corporate Ebitda to total 2.5 bn€ in the next 3 years (2010 –

  37. Slide 37: Non-Recourse Projects: Nature of Revenues of Main Project Types

    Non-Recourse Projects ABENGOA Nature of Revenues of Main Project Types Average remaining life of current Total life projects Characteristics ƒ Fixed price linked to inflation which is paid based on availability (no demand risk). Transmission ƒ The “off-taker” of the concessions is formed by a pool o

  38. Slide 38: Order book at all-time high

    ABENGOA Order book at all-time high ~30.7 bn€ Order backlog in concession activities (average life of 24 years) Order Backlog in concession activities (M€) 30,666 20,866 Q3 '09 2009 ~7.7 bn€ Order backlog from contracting activities (26 months of sales) Order Backlog from contracting activities (M€)

  39. Slide 39: Corporate Debt

    ABENGOA Corporate Debt ƒ Most of corporate debt is incurred by Abengoa SA: - represents 80% of total corporate debt - benefits from the upstream guarantee of main operating subsidiaries ƒ Corporate debt is backed by corporate assets of 3,355M€ and corporate EBITDA of 750 M€ December 09 ƒ Additionall

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