Abengoa Sa · OTC:AGOAF
Abengoa Sa — Merger or Acquisition (June 2011)
22 slides from Abengoa Sa's merger presentation, Jun 3, 2011
Slide 1: Telvent and Transmissions Transactions Update
Innovative Solutions for Sustainability ABENGOA Telvent and Transmissions Transactions Update 3rd June, 2011
Slide 2: Forward-looking Statement
ABENGOA Forward-looking Statement This presentation contains forward-looking statements and information relating to Abengoa that are based on the beliefs of its management as well as assumptions made and information currently available to Abengoa. Such statements reflect the current views of Abengoa
Slide 3: Agenda
ABENGOA Agenda 1 Highlights 2 Telvent transaction 3 Transmission power lines transaction 4 Financial Impact 3
Slide 4: Highlights
ABENGOA Highlights $40/share Offered price for 40% of Telvent 36% Premium over 90 day average price 344% Premium over IPO 485M€ Value of sale of transmission power lines to CEMIG 50% Stake in new JV with CEMIG as growth vehicle in transmission lines in Brazil and LatAm 1,430M€ Reduction of net debt
Slide 5: Agenda: Telvent transaction
ABENGOA Agenda 1 Highlights 2 Telvent transaction 3 Transmission power lines transaction 4 Financial Impact 5
Slide 6: Executive Summary: Sale of Telvent's stake
ABENGOA Executive Summary Sale of Telvent´s stake Agreement with Schneider Electric to sell 40% stake at $ 40 per share ($545 M). Implies an Enterprise Value of 1,360 M€ Simultaneously Schneider will launch a tender offer to all minority holders at the same price Net cash inflow of 421 M€ and consol
Slide 7: Telvent Transaction: Rationale of Transaction
ABENGOA Telvent Transaction Rationale of Transaction Favorable transaction for Abengoa, Telvent´s minority shareholders, and for Telvent and its employees In line with strategy of narrowing focus on core businesses (will simplify analysis of E&C business) In line with financial strategy to deleverag
Slide 8: Telvent Transaction: Superior Returns
ABENGOA Telvent Transaction Superior Returns Cash-on-cash: 4x(1) Telvent share price and EBITDA performance since IPO 2011 Gain of 135 – 145 M€ Transaction value US$40/share €502m(1) +36% premium over 90 day average €125m Invested Capital Cash Returns Opportunistic and profitable sale crystallising
Slide 9: Agenda: Transmission power lines transaction
ABENGOA Agenda 1 Highlights 2 Telvent transaction 3 Transmission power lines transaction 4 Financial Impact 9
Slide 10: Executive summary: Sale of transmission lines in Brazil
ABENGOA Executive summary Sale of transmission lines in Brazil to TAESA (Cemig) 100% sale of NTE (386 km) and sale of 50% sub holding including STE, ATE, ATE II and ATE III (2,132 Km) 485 M€ offer in cash, that represents: - Reduction of consolidated total net debt of approx. 656 M€ - Abengoa´s IRR:
Slide 11: Operation structure
ABENGOA Operation structure (i) 100% NTE sale and (ii) creation and sale of the 50% sub holding that controls STE, ATE, ATE II and ATE III III Investment Funds 48% (*) 49% (*) ABENGOA ABENGOA TAESA 485 M€ 100% 50% 50% 100% 100% c c Subholding 100% • NTE • ATE IV – VII • STE • STE • Manaus • ATE • NT
Slide 12: Returns Analysis
ABENGOA Returns Analysis Sale price values assets at a x1.1 book value and gives a 12.7 IRR (19% with EPC margin) (M€) Shareholder Cemig 100% Price/BV EV/ % Sale Net Debt EV Offer Equity offer offer (Equity) EBITDA NTE 106 100% 145 145 1.4x 30 175 5.1x Sub holding 678 50% 339 678 1.0x 281 959 9.2x T
Slide 13: Brazilian portfolio after operation
ABENGOA Brazilian portfolio after operation After the sale Abengoa holds in Brazil an asset portfolio of 6,700 Km 6.696 km Brazil 108 Yr to end Longitude Abengoa Start up of (Km) % concession Lote I 108 100% 2012 29 Manaus 596 51% 2011 27 Linha Verde 987 51% 2011 28 3.993 Norte Brasil 2,410 51% 2012
Slide 14: Agenda: Financial Impact
ABENGOA Agenda 1 Highlights 2 Telvent transaction 3 Transmission power lines transaction 4 Financial Impact 14
Slide 15: Cash & Net Debt impact
ABENGOA Cash & Net Debt impact (M€) Impact on corporate cash (*) Impact on consolidated net debt (*) 1. Transmission Lines Proceeds from sale 485 Proceeds from sale (485) Total effect on cash 485 N/R net debt (171) Total effect on net debt (656) 2. Telvent 2.Proceeds Telvent from sale 384 Proceeds f
Slide 16: Reinforced Capital Structure
ABENGOA Reinforced Capital Structure Ensuring Abengoa’s balance sheet strength Dec Dec’2010 M€ Var Var (%) ‘2010 Proforma Corporate Debt 5,063 4,722 (341) (6.7) % Corporate Cash, Equiv & SFTI (2,766) (3,625) 859 31 % Total net corporate debt 2,297 1,097 (1,200) (52) % N/R Debt 4,050 3,761 (289) (7)
Slide 17: Flexibility to face debt maturities
ABENGOA Flexibility to face debt maturities Corporate Debt Maturity (€M) 2010 Telvent 384 Revolving WC facilities 175 Convertible Bonds ABG 450 Corporate Debt ABG 4,144 Total 5,153 corporate debt Total 2,766 corporate cash Dec 2010 Telvent 58 cash position 1,814 Dec 2010 cash positionv 1,436 158 2,7
Slide 18: Flexibility to face debt maturities: Post transactions pro-forma
ABENGOA Flexibility to face debt maturities Post Telvent + Transmission Sale pro-forma Corporate Debt Maturity (€M) (2010 proforma) Revolving WC facilities 175 Convertible Bonds ABG 450 Corporate Debt ABG 4,144 Total Total 3,614 4,769 corporate cash corporate debt Telvent cash effect* 421 Cemig cash
Slide 19: Profit and Loss
ABENGOA Profit and Loss Abengoa Pro Forma Pro Forma Historical NTE, STE and Year ended Dec 31, 2010 (€M) Telvent GIT Excluding ATEs Consolidated Consolidated Telvent 2010 2010 Revenue 5,566 (737) 4,829 (111) 4,718 EBITDA 942 (130) 812 (90) 722 Operating Profit 622 (73) 549 (72) 477 Finance Cost Net
Slide 20: New estimates
ABENGOA New estimates Revised estimates Revise 2011 revenue estimates to 5,800 M€ - 6,000 M€ Revise 2011 Ebitda estimates to 940 M€ - 960 M€ Revise 2013 Ebitda target to 1,300 M€ (>2.5x 2009 pro-forma Ebitda) 2020 20
Slide 21: Highlights
ABENGOA Highlights $40/share Offered price for 40% of Telvent 36% Premium over 90 day average price 344% Premium over IPO 485M€ Value of sale of transmission power lines to CEMIG 50% Stake in new JV with CEMIG as growth vehicle in transmission lines in Brazil and LatAm 1,430M€ Reduction of net debt
Slide 22: Soluciones Innovadoras para el Desarrollo Sostenible
ABENGOA Soluciones Innovadoras para el Desarrollo Sostenible