Abengoa Sa · OTC:AGOAF
Abengoa Sa — FY2011 Earnings Presentation
50 slides from Abengoa Sa's earnings presentation, Feb 27, 2012
Slide 1: Fiscal Year 2011 Earnings Presentation
Innovative Technology Solutions for Sustainability ABENGOA Fiscal Year 2011 Earnings Presentation February 27th, 2012
Slide 2: Forward-looking Statement
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 with re
Slide 3: Agenda
Agenda 1 FY 2011 Business Highlights 2 FY 2011 Financial Highlights 3 Conclusions 4 Appendix 3
Slide 4: Agenda: FY 2011 Business Highlights
Agenda 1 FY 2011 Business Highlights 2 FY 2011 Financial Highlights 3 Conclusions 4 Appendix 4
Slide 5: FY 2011 Highlights
FY 2011 Highlights A year of delivery on our words Growth Deleverage Diversification 5
Slide 6: 2011 Key Financial Highlights
2011 Key Financial Highlights 29 consecutive quarters of Y-o-Y financial growth Revenues EBITDA 7,089 M€ 1,103 M€ ↑ 46% (4,860 M€ FY 2010) ↑ 36% (812 M€ FY 2010) Net Income Corporate Net Debt to Corporate EBITDA 257 M€ 2.1x ↑ 24% (207 M€ FY 2010 figure) ↓ from 3.8x at FY 2010 75% increase in dividen
Slide 7: Crystallizing Value
Crystallizing Value Reducing company leverage securing returns and growth options 1 Investment of 300 M€ in new Class B shares First Reserve FR stable presence within our Board of Directors 2 through nominee of a member, Mr. C. Santiago 1 Reduction of corporate net debt of 725 M€ and increasing over
Slide 8: E&C Business Model Description
E&C Business Model Description Value creation and requirements Projects promoted by ↑ EPC Margin External customers, won through ↑ Positive working capital competitive process Projects promoted by ↑ EPC Margin customers or state agencies, ↑ Positive working capital External with won through competit
Slide 9: Corporate Evolution
Corporate Evolution 2011, breaking point at corporate level Corp. EBITDA generation + cash from assets rotations Capex Invested at Corporate Level Cash from assets rotations Net Capex invested at corp. Level / Corp. EBITDA generation Corporate Ebitda 1,587 1,166 870 1,041 752 708 915 817 119 102 394
Slide 10: Geographic Diversification
Geographic Diversification A truly global business Revenues FY 2011 1% 12% E&C 6% 2% Concessions 11% 27% 13% Industrial Production 15% 21% Revenues FY 2001 19% 1% 6%2% 9% Geographies Spain Rest of Latin America 18% Brazil Asia & Oceania 64% US Africa Rest of Europe 10
Slide 11: E&C
E&C Financial growth year-after-year Revenues of FY 2011, representing an increase of 3,526 M€ 53% Y-o-Y 45% of55% revenues coming from external activities, and from external with equity activities 438 M€ EBITDA achieved in FY 2011, with margins of 12.4%, compared to 11.3% in 2010 7.5 B€ Backlog 201
Slide 12: E&C: A global leader in the power sector
E&C A global leader in the power sector Financial figures FY 2011 Revenue Breakdown* Revenues (M€) EBITDA (M€) 438 External with 259 Equity 45% 3,526 External 55% 2,302 12.4% 11.3% FY 2010 FY 2011 FY 2010 FY 2011 Backlog (M€) 7,535 Brazil 1% 2% 10% 6,253 Spain 29% Rest of LatAm 13% US Asia & Oceania
Slide 13: E&C – Bookings
E&C – Bookings Solid booking activity securing backlog at high levels Bookings (M€) By Geography By Type Asia 3% External 13% Latam External with 41% 44% Equity 4,343 19% Europe 56% 3,631 Africa 24% USA By Sector By Size Solar < 100 M€ 22% Environment 36% 39% 100-500 M€ 39% T&D 3% Conventional 9% >
Slide 14: FY2011 E&C Bookings
FY2011 E&C Bookings 2011 Landmark Projects awarded through highly competitive bids Country Project Activity Amount Detail CSP 100 MW trough 725 M€ South Africa 50 MW tower ALUR bioethanol 120 M$ 70 ML capacity plant Morelos 440 M$ 640 MW combined cycle plant Zapotillo water 5.6 m3/s water 566 M$ pro
Slide 15: E&C – Pipeline
E&C – Pipeline Record pipeline, highest ever M€ Pipeline By Geography By Type 72,537 Asia 6% 2% External 21% 17% 30% Latam External with Equity Europe Internal 20% Bids Presented Africa 77% 27% USA 53,848 38,378 By Sector By Size 15,346 T&D < 100 M€ 22% 20% 25% Conventional Power 100-500 M€ 4,343 1%
Slide 16: Concession-type Infrastructures
Concession-type Infrastructures Excellent year for all our plants and transmission assets Revenues of FY 2011, an increase of 39% due 427 M€ mainly to new solar thermal assets in operation 299 M€ EBITDA achieved in FY 2011, with overall margins of 70% for the segment of solar power produced and 99.5
Slide 17: Concession-type Infrastructures: Strong results
Concession-type Infrastructures Strong results driven by increased capacity and strong operational performance EBITDA (M€) Revenues (M€) 299 6 3 2 4 10 14 427 39 308 93 208 26 4 10 FY 2010 FY 2011 43 2% Cogeneration 10% Brazil Water 193 Spain 151 Solar 35% 53% Africa Transmission LatAm FY 2010 Organ
Slide 18: Timeline: Main Projects in Execution
Timeline: Main Projects in Execution As of Dec. 31 ‘11 Ann. Abengoa Expected Fully 2011 2012 2013 2014 EBITDAe Location Capacity (%) Start Up (M€) Funded? SPP1 Algeria 150 MW 51% Q2 11 34 Helioenergy 1-2 Spain 50 MW x2 50% Q3 11 / Q1 12 42 Solacor 1-2 Spain 50 MW x2 74% Q1 / Q2 12 39 Solaben 2-3 Spa
Slide 19: Concessional Asset Portfolio
Concessional Asset Portfolio Significant capacity increase when completing capex plan Concession-type infrastructures Solar (MW) Transmission (km) 1,653 8,831 250 4,928 910 3,903 493 493 3,903 Dec 2011 E2013/14 Dec 2011 E2013/14 Cogeneration (MW) Desalination (Ml/day) 970 110 693* 300 560 300 393* D
Slide 20: Solar Regulation Update
Solar Regulation Update Royal Decree 1/2012 27th of January 2012 No effects on pre-registered No effects on capacity included in the Pre-Registry, yet assets under development Excluding No retroactive measures on CSP capacity in operation or retroactivity under construction Abengoa 300 MW in operati
Slide 21: Industrial Production
Industrial Production Segment growth achieved in a very challenging environment Biofuels: of revenues for the period, a 41% increase Y-o-Y, 2,225 M€ due to higher commodity prices and increase in volumes sold 287 M€ increase due to capacity expansion, with average plant utilization of 93% throughout
Slide 22: Industrial Production: Sustained growth and stable outlook
Industrial Production Sustained growth and stable outlook Revenues and FY 2011 Revenues EBITDA Margin (M€) Production (ML) Breakdown 2,225 2,758 2,553 1,575 11% USA 38% Europe 21% 13% Spain 7% Brazil 30% FY 2010 FY 2011 FY 2010 FY 2011 Revenues and Industrial Waste EBITDA Margin (M€) Treated (Mt) 2.
Slide 23: Technology Update - Solar
Technology Update - Solar Introducing breakthrough innovations to continue leading the CSP future Leading in the past R&D pilot projects New leading technology PS10 first commercial saturated Superheated steam technology reaches Superheated steam technology steam tower in the world temperature up to
Slide 24: Technology Update - Bioenergy
Technology Update - Bioenergy Getting ready for commercial scale 2G Enzymatic Hydrolisis Proprietary 2G bioethanol producing technology from lignocellulosic raw material Developed in lab, tested at pilot scale and demonstrated in our pilot Salamanca plant Time Frame 2009 2011 2013 Enzyme price (USD/
Slide 25: Agenda
Agenda 1 FY 2011 Business Highlights 2 FY 2011 Financial Highlights 3 Conclusions 4 Appendix 25
Slide 26: 2011 Key Financial Highlights
2011 Key Financial Highlights 29 consecutive quarters of Y-o-Y financial growth Revenues EBITDA Net Income 7,089 M€ 1,103 M€ 257 M€ ↑ 24% (↑ 75% excl. non ↑ 46% (4,860 M€ FY 2010) ↑ 36% (812 M€ FY 2010) recurring items) Bookings Backlog Pipeline 4,343 M€ 7,535 M€ 73 B€ Providing great visibility for
Slide 27: Business Diversification (I)
Business Diversification (I) Robust growth from diversified source of revenues Revenues* (M€) Q4’10 Q4’11 Var% FY’10 FY’11 Var% Engineering & Construction 663 1,370 107% 2,302 3,526 53% Concession-type Infrastructure 79 105 33% 308 427 39% Industrial Production 755 830 10% 2,250 3,136 39% Total 1,49
Slide 28: Business Diversification (II)
Business Diversification (II) Towards a well diversified EBITDA profile Margin Margin EBITDA* (M€) Q4’10 Q4’11 Var% FY’10 FY’11 Var% FY’10 FY’11 Engineering & Construction 87 174 99% 259 438 69% 11% 12% Concession-type 56 68 21% 208 299 44% 68% 70% Infrastructure Industrial Production 142 117 (18%)
Slide 29: High Revenue Visibility
High Revenue Visibility Backlog (M€) Estimated Conversion to Revenues Dec. 2011 2012e 2013e 2014e+ E&C Order Book 7,535* 3,832 2,624 1,078 34,257 35,570 Concession-type Asset based, recurring revenues 463 850 Industrial Production 16,800 (1) 11,200 2,800 2,800 * Excluding Telvent 29 (1) Illustrative
Slide 30: E&C Backlog
E&C Backlog Solid backlog, well diversified, provides revenue visibility Backlog (M€) By Geography By Type* LatAm External 20% 26% 33% USA External with Equity 7,535 22% Europe 74% 25% RoW 6,253 By Sector By Size Solar < 100 M€ 12% 2% T&D 22% 9% Environment 100-500 M€ 48% 10% Conventional 51% Power
Slide 31: Capex Plan
Capex Plan Commitment to invest only when financing is in place Breakdown by Asset Type Breakdown by Financing Source M€ M€ 2,709 Solar 2,170 2,709 Committed Non- 2,252 15 Recourse Debt Power Transmission 918 94 Committed 93 Biofuels 265 289 Partner's Equity 232 Cogeneration 93 Abengoa's Equity 1,07
Slide 32: Reinforced Capital Structure
Reinforced Capital Structure Improving capital structure from effective company management and corporate transactions M€ Dec 2010 Dec 2011 Corporate Debt 5,043 4,830 Corporate Cash, Equiv. & STFI (2,766) (3,346) Total net corporate debt 2,277 1,484 N/R Debt 4,050 5,390 N/R Cash Equiv. & STFI (1,131)
Slide 33: Net Debt Bridge
Net Debt Bridge Significant cash generated from Operating Activities Consolidated M€ 76 (870) 474 (1,103) 2,913 (919) 5,467 5,196 (300) Net Debt EBITDA NWC Capital Capex Disposals Net Interest Discnt., FX Net debt (Dec 10) Increase Paid and and Other (Dec 11) Taxes 33
Slide 34: Debt Maturity Profile
Debt Maturity Profile Sound maturity profile and liquidity position at December 31, 2011 Corporate Debt (M€) Committed Capex No refinancing needs at corporate level needs through July 2013 3,346 Average cost corp. debt: 7.9% Convertible Bonds Corporate Debt Proactive management of maturities: extens
Slide 35: Agenda
Agenda 1 FY 2011 Business Highlights 2 FY 2011 Financial Highlights 3 Conclusions 4 Appendix 35
Slide 36: Guidance Evolution
Guidance Evolution Keeping our promises and overdelivering H1 2011 Q3 2011 FY 2011 Guidance Update Actual M€ Revenues 5,975 ↑ 6,850 √ 7,089 EBITDA 960 ↑ 1,050 √ 1,103 36
Slide 37: Key Financial Targets
Key Financial Targets Corp. Revenues EBITDA EBITDA M€ 2012e 7,550 - 7,750 1,275 - 1,325 780 – 800 Guidance 8% 18% 10% Corporate Corp. Capex Dividend Leverage Investment Payout Ratio <2013 Corp. Targets ~3x Ebitda >15% 37
Slide 38: Conclusions: What do we expect from 2012
Conclusions What do we expect from 2012 Growth Deleverage Diversification 38
Slide 39: Agenda: Appendix
Agenda 1 FY 2011 Business Highlights 2 FY 2011 Financial Highlights 3 Conclusions 4 Appendix 39
Slide 40: Results by Activity
Results by Activity M€ Revenues EBITDA Margin 2011 2010 Var (%) 2011 2010 Var (%) 2011 2010 Engineering and Construction E&C 3,526 2,302 53% 438 259 69% 12.4% 11.3% Total 3,526 2,302 53% 438 259 69% 12.4% 11.3% Concession-type Infrastructure Solar 131 59 122% 93 43 116% 71.0% 72.9% Water 21 15 38% 1
Slide 41: Concession-type Infrastructure Balanced Asset Portfolio
Concession-type Infrastructure Balanced Asset Portfolio Under Total Non Capex Operating Construction Gross Net Recourse Invested in (M€) (Gross) Development Assets Assets(1) ABG Equity Net Debt Partners 2011 Trasmission 1,123 1,173 2,296 2,207 943 1,052 212 1,411 CSP 1,569 1,362 2,931 2,847 1,049 1,
Slide 42: Cash-flow Statement
Cash-flow Statement Strong operating cash flow generation M€ Dec 2010 Dec 2011 Consolidated after-tax profit 215 182 Non-monetary adjustments to profit 502 767 Variation in working capital & Discont. activities 336 847 Cash generated by operations 1,053 1,796 Net interest paid / Tax paid & Discont.
Slide 43: Capex Committed by segment (I)
Capex Committed by segment* (I) Total Total Entry in ABG Committed (M€) Capacity Abengoa (%) Country Operation Investment Pending Corporate Partners Debt Capex Solar 5,081 2,170 534 22 1,614 Algeria 150 MW 51% Algeria Q2 11 293 Helioenergy 1 and 2 100 MW 50% Spain Q3 11 / Q1 12 561 7 3 4 Solacor 1 a
Slide 44: Capex Committed by segment (II)
Capex Committed by segment* (II) 2012 2013 2014 Total ABG Total ABG Total ABG Committed (M€) Capex Corporate Partners Debt Capex Corporate Partners Debt Capex Corporate Partners Debt Solar 1,539 368 22 1,149 503 124 379 128 42 86 Algeria Helioenergy 1 and 2 7 3 4 Solacor 1 and 2 71 23 4 44 Solaben 2
Slide 45: Capex Plan financing fully secured
Capex Plan Capex Plan financing fully secured through a balanced mix of sources Date of Project Finance Facility Size and Projects Financial Institution Financial Close Maturity Currency Solar Helioenergy 1 Commercial Banks May 2010 20 Years 158 M€ Helioenergy 2 Commercial Banks 20 Years 158 M€ 178
Slide 46: Detail of corporate debt FY 2011
Detail of corporate debt FY 2011 Strike Outstanding amount (M€ (M€) Ranking Maturity Spread / Coupon Swap/Cap Swap/Cap as of 31/12/2011 Corporate Recourse Debt: Bank Debt Syndicated Loan 2005 Senior Unsecured July 12 Euribor + 67.5 bps 167 Syndicated Loan 2006 Senior Unsecured July 12 Euribor + 67.5
Slide 47: 2012 Guidance
2012 Guidance M€ E&C Evolution Total Revenues E&C 7,650 Concession-Type 4,100 Infrastructures 7,089 3,526 2,302 Industrial Production 1,683 3,085 2009 2010 2011 2012e 3,136 4,860 Concession-Type Infrastructures Evolution 465 3,444 2,250 427 1,542 308 308 427 465 4,100 219 219 3,526 2,302 2009 2010 2
Slide 48: End-user Tariff Breakdown
End-user Tariff Breakdown CSP represents 1% of end-user tariff Hydro Losses 1% Biomass Others Capacity Payments 1% 2% Wind 12% Risk Premium Solar CSP 5% 12% Adjustment Services 1% 1% Solar PV 5% Peak Services Fees 5% 7% 3% CESUR Auction Transport Energy 4% costs Non- 49% renewable 65% premiums 5% Pr
Slide 49: Special Regime Costs
Special Regime Costs CSP costs represent 2.1% of special regime accumulated costs 6,855 6,451 6,214 937 879 Total special regime (RE) cost 842 accumulated since 2004 1,404 1,177 623 1,076 4,565 3,338 1,701 8,786 1,608 1,731 482 2,468 6,154 29,115 M€ 731 517 1,664 656 1,144 ,2.387 1,053 1,073 390 2,6
Slide 50: Thank you
Innovative Technology Solutions for Sustainability ABENGOA Thank you