Abengoa Sa · OTC:AGOAF

Abengoa Sa — FY2012 Earnings Presentation

41 slides from Abengoa Sa's earnings presentation, Feb 22, 2013

  1. Slide 1: Fiscal Year 2012 Earnings Presentation

    Innovative Technology Solutions for Sustainability ABENGOA Fiscal Year 2012 Earnings Presentation February 22nd, 2013

  2. 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 wit

  3. Slide 3: Agenda

    Agenda 1 FY 2012 Business Highlights 2 FY 2012 Financial Highlights 3 2013 Outlook 4 Appendix 3

  4. Slide 4: Agenda: FY 2012 Business Highlights

    Agenda 1 FY 2012 Business Highlights 2 FY 2012 Financial Highlights 3 2013 Outlook 4 Appendix 4

  5. Slide 5: Key figures for the year

    Key figures for the year Revenues EBITDA 7,783 M€ 1,246 M€ 10% (7,089 M€ in 2011) 13% (1,103 M€ in 2011) Total Assets Employees 20,545 M€ 26,402 9% (18,793 M€ in 2011) 19% (22,261 in 2011) 0,072 € dividend payout to be proposed to AGM* 5 *Annual General Meeting

  6. Slide 6: Business Highlights

    Business Highlights Strong delivery in the toughest environment in decades We have seen the worst drought in the US in 60 years, impacting severely margins in our ethanol business We have suffered uncertainty first, and “expropriation” later, from Spanish Government in our solar business Despite tha

  7. Slide 7: Corporate Investment Profile

    Corporate Investment Profile 2012, another year on the right path Cash from asset rotations Corporate EBITDA 1,587 Key Highlights Corporate Capex 1,131 1,189 1. 2012: Corp. EBITDA + Asset Rotation 1,166 870 708 1,041 ≈ Corp. Capex 354 752 817 119 750 102 2. 80% investment in concessions vs. 717 777

  8. Slide 8: Segment Results Diversification

    Segment Results Diversification Revenues EBITDA FY 2002 1,522 M€ 175 M€ FY 2012 7,783 M€ 1,246 M€ 17% 36% 58% 25% 58% 6% E&C Concessions Ind. Production 8

  9. Slide 9: Geographic Diversification

    Geographic Diversification 26% of revenues from US; 26% from Latin America 2002 Revenues 2012 Revenues 6% 9% 3% 16% 26% 60% 25% 11% 13% 8% 7% 6% 4% 2% 1% 3% 1,522 M€ 7,783 M€ Spain Rest of Europe Mexico Asia & Oceania US Brazil Rest of LatAm Africa Over the last ten years, the U.S. has become our fi

  10. Slide 10: Balanced asset portfolio

    Balanced asset portfolio Owning and managing more than 11 B€ assets around the globe Net Fixed Assets* per region (M€) USA Rest of LatAm Asia & Oceania 2,567 M€ 1,144 M€ 145 M€ Spain Brazil 3,428 M€ 1,893 M€ Africa Europe Mexico 690 M€ 1,054 M€ 590 M€ A truly diversified assets portfolio provides so

  11. Slide 11: E&C + Technology & Others

    E&C + Technology&Others Excellent performance, visibility on future results Revenues 4,512 M€ revenues (a 19% increase YoY) 4,512 3,807 457 724 M€ EBITDA (a 36% increase YoY) 281 3,584 M€ bookings during FY 2012 3,526 4,055 6,679 B€ backlog at year end, allowing outstanding visibility on E&C sales f

  12. Slide 12: Concession-type Infrastructures

    Concession-type Infrastructures Start-up of new concessions as scheduled 473 M€ Revenues (a 11% increase YoY) EBITDA 307 307 M€ EBITDA (a 3% increase YoY) 299 7 new assets commenced operation during the period, 70% 65% adding 83 M€ of additional EBITDA generation (105 M€ annualized contribution, aft

  13. Slide 13: Impact of regulatory changes in renewables in Spain

    Impact of regulatory changes in renewables in Spain Despite a strong hit, reform impact is reduced through diversification at consolidated level Regulatory changes Action Plan 1 Natural gas related power generation  Cancellation of any new investment in at pool price instead of pool+premium Spain (

  14. Slide 14: Industrial Production

    Industrial Production Industrial Production: bittersweet year Production (Ml) Biofuels: 2,758 2,138 M€ of revenues for the period, a 4% decrease Y-o-Y 2,439 91 M€ EBITDA achieved in FY 2012, a 40% decrease Y-o-Y due to low crush margins in the period 3 plants temporarily shut down in US and EU as of

  15. Slide 15: Ethanol Business - Insight

    Ethanol Business - Insight 2013: solid base for recovery Slowly back to stability Expected improvements Stable trends ahead  Corn harvest  Corn harvest  Sugarcane harvest • Likely recovery of corn • Recovery of corn yields • Record harvest expected production after historic fundamental driver of

  16. Slide 16: Strong Focus on Technology as an Engine for Future Growth

    Strong Focus on Technology as an Engine for Future Growth Developing a cutting edge technology through continuous support to our R&D investment plans Continued Investment in R&D… …Developing Cutting Edge Technologies R&D Investment (M€)  N-Butanol Production 91 91 − Flexible process for producing b

  17. Slide 17: Agenda: FY 2012 Financial Highlights

    Agenda 1 FY 2012 Business Highlights 2 FY 2012 Financial Highlights 3 2013 Outlook 4 Appendix 17

  18. Slide 18: Key financial figures for the year

    Key financial figures for the year Revenues EBITDA Net Income 7,783 M€ 1,246 M€ 125 M€ 10% (7,089 M€ in 2011) 13% (1,103 M€ in 2011) 51% (257 M€ in 2011) Corporate Leverage E&C Backlog Pipeline 3.2x 6,679 M€ 88,054 M€ 3.4x as of September 2012 11% ( 7,535 M€ in 2011) 21% (72,537 M€ in 2011) 18

  19. Slide 19: Key Financial Highlights

    Key Financial Highlights Building up balance sheet strength and preserving liquidity… Balance Sheet Strength Financing Capacity  3,451 M€ liquidity on balance  1,663 M€ successful syndicated loan sheet: refinancing closed in July 2012 • Highly diversified per placement • Strong currency diversific

  20. Slide 20: E&C Results Visibility - Backlog

    E&C Results Visibility - Backlog 2013: it will all be about execution… Backlog Conversion 2013e 2014e 2015e+ 4,185 Dec.12 Backlog (M€) 1,313 1,181 6,679 Backlog represents 1.6 years worth of E&C revenues Existing backlog allows us to look at 2013 with confidence, letting us concentrate on execution

  21. Slide 21: E&C Results Visibility - Pipeline

    E&C Results Visibility - Pipeline …While key metrics demonstrate positive outlook for the future Dec.12 pipeline (M€) 88,054 Split by sector Split by geography 72,537 5% 4% 4% 11% 9% 15% 24% 17% 28% 48% 9% 14% 12% T&D Water Spain Brazil Power Industrial US Rest of Europe Plants Mexico LatAm Others A

  22. Slide 22: Investment Areas

    Investment Areas Well identified Capex Plan through 2015+ Equity Capex Plan By Sector By Geography (2013 – 2015+) 4% 7% 856 M€ 227 142142 12% 1,035 10% 482 1358 20% 2,194 M€ of non recourse 36% debt expected to finance rest 9% of the investment (75% Pending figures secured) 22% 472 45% 7% 2477 8% 23

  23. Slide 23: Great Value from Future Projects

    Great Value from Future Projects As of Dec. 31 ‘12 Ann. Abengoa (Equity Expected Fully Location Capacity Ownership %) 2012 2013 2014 2015 EBITDAe Start Up Funded? (M€) Solana USA 280 MW 100% Q3 13 65  Mojave USA 280 MW 100% Q2 14 55  South Africa Trough South Africa 100 MW 51% Q1 15 81  South Afr

  24. Slide 24: Reinforced Capital Structure

    Reinforced Capital Structure Liquidity protection & management of corporate leverage: key priorities M€ Dec 2011 Dec 2012 Corporate Debt 4,830 4,758 Corporate Cash, Equiv. & STFI (3,346) (2,275) Total net corporate debt 1,484 2,483 N/R Debt 5,390 6,975 N/R Cash Equiv. & STFI (1,406) (1,176) Total ne

  25. Slide 25: Key Leverage Ratios

    Key Leverage Ratios Committed to maintain corporate leverage ~3.0x FY 2011 FY 2012 Corporate 2.1x 3.2x (excl. pre-op. debt) 0.3x 0.8x Non-Recourse 8.7x 12.1x (excl. pre-op. debt) 4.5x 6.9x Consolidated 5.0x 6.6x (excl. pre-op. debt) 2.1x 3.2x Note: Corp. Net Debt ratio as defined by bank and bond fa

  26. Slide 26: 2013 Bond Issuances

    2013 Bond Issuances 650 M€ issuance to extend maturities and reinforce liquidity position Use of Proceeds  208 M€ repayment of syndicated loan maturing in 2013  No increase in corporate debt  200 M€ repayment of syndicated  Activates further availability of credit lines loan maturing in 2014  C

  27. Slide 27: Effective Maturity Management

    Effective Maturity Management Constantly improved maturity profile and liquidity position Corporate debt maturity profile as of Dec’11 (M€) 1,557 850 856 1,282 605 250 556 456 407 200 500 502 152 300 294 275 256 107 105 104 2012e >2018 2,275 Pro-forma* Corporate debt maturity profile as of Dec’12 Su

  28. Slide 28: Cash-flow Overview

    Cash-flow Overview Continued effort in investment plan Cash generated from • EBITDA: 1,246 M€ operations • Non-monetary adj.: (66) M€ • Working Capital: (48) M€ • Net Interested Paid and taxes: (413) M€ 443 M€ • Taxes and other financial costs: (276) M€ Net Investment • Asset rotations and partners’

  29. Slide 29: Net Debt Bridge

    Net Debt Bridge Net cash generated from operating activities Taxes and other Consolidated financial costs 276 LT Financial M€ Investment and Others 344 Dividends, FX and other Net Interest Consolidation Asset Rotations Paid and Partners' Movements EBITDA 413 45 Capex entry 1,246 3,594 636 Working Ca

  30. Slide 30: Agenda: 2013 Outlook

    Agenda 1 FY 2012 Business Highlights 2 FY 2012 Financial Highlights 3 2013 Outlook 4 Appendix 30

  31. Slide 31: Key Highlights for 2013

    Key Highlights for 2013 What to expect in 2013 Focus on backlog execution, and further international expansion E&C Bring into operation 11 assets Concessions Additional strong EBITDA generation from new projects Expected improvement in US and European ethanol markets by end of 2013 Ethanol sector W2

  32. Slide 32: Key Financial Targets

    Key Financial Targets M€ Revenues EBITDA Corp. EBITDA 2013e 8,000 – 8,100 1350 – 1,400 800 – 825 Guidance 3% 10% 5% E&C: ~4,800 M€ (4,100 M€ from backlog) Conc.: ~550 M€ Ind. Prod.: ~2700 M€ 32

  33. Slide 33: Agenda: Appendix

    Agenda 1 FY 2012 Business Highlights 2 FY 2012 Financial Highlights 3 2013 Outlook 4 Appendix 33

  34. Slide 34: Results by Activity

    Results by Activity M€ Revenues EBITDA Margin FY 2011 FY 2012 Var (%) FY 2011 FY 2012 Var (%) FY 2011 FY 2012 Engineering and Construction E&C 3,526 4,055 15.0% 438 514 17.4% 12.4% 12.7% Others 281 457 62.6% 93 210 125.8% 33.1% 46.0% Total 3,807 4,512 18.5% 531 724 36.3% 13.9% 16.0% Concession-type

  35. Slide 35: E&C Backlog

    E&C Backlog Solid backlog, well diversified, provides revenue visibility Backlog (M€) By Geography LatAm 7,535 24% 37% USA 6,679 6,253 Europe 22% RoW 17% By Sector Solar 14% T&D 1% 36% Environment 14% Conventional Power 11% Industrial Plants 24% Others Dec 2010 Dec 2011 Dec 2012  Backlog at Dec 12

  36. Slide 36: E&C – Insight

    E&C – Insight Consolidating as a strong EPC player for energy projects in developing countries Pipeline FY 2012 Spain 4% T&D Power Brazil 11% 9% 10% 6% 4% US 8% 11% 11% 24% 19% Rest of Europe 17% 10% 43% 8% 18% Mexico 14% 18% 9% 9% 20% 12% 5% Rest of Latin America Asia & Oceania 13,085 M€ 42,024 M€

  37. Slide 37: Balanced asset portfolio

    Balanced asset portfolio Under Total Non Operating Construction/ Gross Net ABG Recourse (M€) (Gross) Development Assets Assets* Equity Net Debt Partners Transmission 520 1,905 2,425 2,394 862 1,180 352 CSP 3,177 1,999 5,176 5,003 1,797 3,098 108 Cogeneration 213 551 764 748 67 681 0 Water 186 284 47

  38. Slide 38: Sustainable Business Going Forward

    Sustainable Business Going Forward Revenue visibility backed by a solid backlog and a solid asset portfolio Solid backlog securing Extensive asset base once current capex plan completed Solid producing assets future revenues Solar (MW) 1,653 Transmissions (km) Biofuels (Ml/year) 9,165 3,175 3,270 95

  39. Slide 39: Capex by segment (I)

    Capex by segment (I) Amounts based on the company´s best estimate as of December 31, 2012. Actual investments or timing thereof may change. Ann. Total EBITDAe Pending (M€) Capacity Abengoa (%) Country Start Up (M€) Investment Capex ABG Equity Partners Debt Solar 6,502 1,882 381 78 1,423 Solana 280 M

  40. Slide 40: Capex by segment (II)

    Capex by segment (II) Amounts based on the company´s best estimate as of December 31, 2012. Actual investments or timing thereof may change. 2013 2014 2015+ Pending ABG Pending ABG Pending ABG (M€) Capex Equity Partners Debt Capex Equity Partners Debt Capex Equity Partners Debt Solar 1,464 316 48 1,

  41. Slide 41: Thank you

    Innovative Technology Solutions for Sustainability ABENGOA Thank you February 22nd, 2013

Abengoa — FY2012 Earnings Presentation on 6ix