Abengoa Sa · OTC:AGOAF
Abengoa Sa — Investor Presentation (September 2006)
45 slides from Abengoa Sa's investor presentation, September 2006
Slide 1: Your Partner in Resources and Technical Solutions
ABENGOA Your Partner in Resources and Technical Solutions September 2006 1
Slide 2: Forward-Looking Statement
Forward-Looking Statement This presentation This presentation contains contains forward-looking forward-looking statements statements andand information information relating to relating to Abengoa Abengoa that that are are based based onon the the beliefs beliefs of of its its management management
Slide 3: Agenda
Agenda 1. Abengoa 1995-2005 2. Business Unit 3. Appendix: Results for First Half 2006 2.1. Consolidated 2.2. Business Unit 3
Slide 4: Overview
Overview Abengoa is a technology company that applies innovative solutions for sustainable development in infrastructures, environment and energy sectors. ABENGOA Engineering & Industrial Environmental Costruction Solar Bioenergy Services Information Technology Information and knowledge management C
Slide 5: Leader in every business
Leader in every business Industrial Enviromental Information Solar Bioenergy Engeeniring and Services Technology Construction International # 1 Ethanol Leader in Spain in leader in real time Leadership in Leader in Spain Market producer in EU industrial waste IT in four sectors tchnology and in Lati
Slide 6: Key Abengoa Consolidated Financial Figures: 1995 – 2005
Key Abengoa Consolidated Financial Figures: 1995 – 2005 Revenues EBITDA € in Millions % : 14,7 % CAG R 2.024 A GR: 17,4 216,0 1.746 C 180,0 166,0 175,0 1.380 1.522 514 44,0 1995 2001 2002 2004 2005 1995 2001 2002 2004 2005 Net Income Cash Flow % 7% 18,3 G R: 29, 66,0 CAG R: 131,0 CA 118,0 107,0 113,
Slide 7: Successful 1H 2006
Succesfull 1H 2006 € in Millions Revenues EBITDA 2.023,5 216,4 1.746,1 180,1 1.089,9 120,9 902,8 91,8 % 15,9 10,7% 10,3% % 11,1% 20,7 10,2% 2004 2005 H1 2005 H1 2006 2004 2005 H1 2005 H1 2006 Net Income Net Cash Flow (Profit After Tax + Amortization) 66,0 131,4 52,4 113,0 46,3 83,8 27,7 57,7 % 3,3%
Slide 8: Agenda
Agenda 1. Abengoa 1995-2005 2. Business Unit 3. Appendix: Results for First Half 2006 2.1. Consolidated 2.2. Business Unit 8
Slide 9: Industrial Engineering and Construction
Industrial Engineering and Construction With engineering... we construct and operate conventional and renewable energy power plants, power transmission systems and industrial infrastructures 9
Slide 10: Engineering & IC Growth Drivers
Engineering & IC Growth Drivers Geographic expansion: Med Rim and Middle East PFI / Concessions (Transmission Lines): Areas of core expertise No demand risk Availability of long term Project Finance Contracts for other Business Units: Thermoelectric solar plan: 300 Mw Construction of Bioenergy plant
Slide 11: Overview of all Latam Transmission Concessions
Engineering & IC Overview of all Latam Transmission Concessions Reference Status Regional Distance Abengoa Concession Project Investment (Operations Operator location Kms stake Contract type (mUSD) start date) Operating BR Expansion Minas Gerais 582 112 25% BOOT Transener (Dec-02) Operating BR NTE N
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Slide 13: Overview of Solar Energy
Solar Overview of Solar Energy Solar Energy is divided in two different fields: Photovoltaic Solar Thermal Energy or Concentrating Solar Power (Tower or Central Receiver, Parabolic Through, Stirling Disc) Throughout the past 20 years, we have gathered know-how in many research projects New Business
Slide 14: Plan to build and own 300 Mw of Solar Thermal capacity in Spain
Solar Plan to build and own 300 Mw of Solar Thermal capacity in Spain Favorable regulatory framework (RD 436/2004) 300% of Average Reference Tariff (229,74 €/Mwh) for 25 years Two plants operating by year end in Spain: 11 MW thermoelectric plant (Tower): first commercial project in Europe 1.2 MW pho
Slide 15: Thermal Power Plant PS-10
Thermal Power Plant PS-10, 11 Mw - 624 heliostats of 121 m2 each. - Area: 60 Has. - Tower of 115 meters high. 15
Slide 16: Environmental Services
Environmental Services With wastes... we produce new materials by recycling, and we also treat and desalt water to achieve a sustainable globe 16
Slide 17: Befesa: Environmental Services - Desalination
Befesa: Environmental Services Desalination : Befesa is one of the leaders in Spain… More than 500.000 m3/day built in Spain Awarded, in joint venture, the construction, O&M for 15 years of the Bajo Almanzora (Almería) desalination plant (60.000 m3/d) for the amount of 73 M€. …and international 500.
Slide 18: Befesa: Environmental Services
Befesa: Environmental Services Befesa is one of the companies with largest references in the desalination market worldwide Strong position in specialized industrial segments: Steel dust (zinc recycling) and hazardous waste management 18
Slide 19: Information Technologies
Information Technologies With Information Technology… we transform data into knowledge, providing effective operational and business real-time decision making for traffic, transport, energy and environment 19
Slide 20: Mission Critical Solutions
Mission Critical Solutions Our solutions help to safely manage and control in real-time... Approximately 60% of oil and gas volume movement through pipelines in North and Latin America Transportation and distribution of more than 140,000 GWh, providing electricity to more than 80 million people Traf
Slide 21: Mission Critical Solutions Profile
Mission Critical Solutions Profile • Global real-time IT company serving core Energy, Traffic, Transport, and Environment sectors • Comprehensive portfolio of solutions, outsourcing and consulting services, that link collection of raw data with delivery of business intelligence • Global solutions de
Slide 22: Case Study: Oil & Gas Pipeline Network Operation
Case Study: Oil & Gas Pipeline Network Operation • Polaris application manages volume measurement, Business Business revenue accounting and customer billing Applications Applications Advanced Advanced • LMS/GMS application detects leaks in the pipeline Operational Operational and determines scheduli
Slide 23: Bioenergy
Bioenergy With biomass... we produce ecologic fuels and animal feed 23
Slide 24: Logic of Ethanol
Logic of Ethanol “The transport sector is a principal source of global emissions of GHG. The only long-term solution to this connected set of problems is to 25-31 Oct 2003 reduce the world’s reliance on oil” “Hydrogen fuel cells are at last becoming a viable alternative. Another alternative likely t
Slide 25: Demand Drivers
Demand Drivers The main drivers that lead the development of the Worldwide ethanol industry: Environmental Protection f Ethanol is an environmentally friendly biodegradable fuel source that reduces exhaust emissions and, unlike MTBE, has been determined to be relatively safe for ground water. Energy
Slide 26: Abengoa Bioenergy Today
Abengoa Bioenergy Today f Production and supply of ethanol, “green” fuel derived from grain mixed directly or indirectly into fossil based fuels Business f Leader in production capacity with ability to use various feedstocks f World class supplier to major oil companies f #1 in Europe with an instal
Slide 27: Production Capacity
Production Capacity Production Facilities in EU Production Facilities in the U.S. EU(Ml) (Ml) 2006 2007 2008 US (Ml) 2006 2007 2008 EU 2006 2007 2008 US (Ml) 2006 2007 2008 Production 540 540 790 Production 420 420 745 Production 540 540 790 Production 420 420 745 Construction 250 550 800 Constructi
Slide 28: EU biofuel production targets (05e – 10e)
EU Fuel biofuel production targets (05e – 10e) f Achieving the 5,75% EU indicative target would require boosting bioethanol capacity an annual 60% (05 – 10) f We estimate that almost an additional 12 million m3 are needed to achieve the 5,75% EU indicative target. Assuming 25% will be imported, the
Slide 29: EU Implementation of legal framework
EU Implementation of legal framework f Fragmented legal framework fA committed action from the UE and Member States is needed to achieve those targets: a revision of the 2003 Directive is in process Netherlands: Sweden: Mandatory target by 2007 Total tax exemption 0,5 approved by Government is eur/l
Slide 30: US Main Ethanol Legislative Initiatives
US Main Ethanol Legislative Initiatives There are five main legislative actions that have been introduced in recent years that create a stable framework for the ethanol industry. 1. Energy Bill f The new Energy Bill replaces the 2% oxygen requirement with a Renewable Fuel Standard mandating a minimu
Slide 31: US Market Outlook
US Market Outlook US market growing above the RFS provision. f 2005 expected output to reach 4,6 billion gallons, or 3,1% of gasoline f Strong demand due to MTBE replacement and high oil prices f More than 2 bn gallons under construction, capacity expected to reach 6,7 billion gallons f E85 will gai
Slide 32: Conclusion
Conclusion Conclusion: Leader in its Business Attractive Growth Markets Strong corporate culture and management systems 32
Slide 33: Agenda
Agenda 1. Abengoa 1995-2005 2. Business Unit 3. Appendix: Results for First Half 2006 2.1. Consolidated 2.2. Business Unit 33
Slide 34: Successful H1 2006
Successful H1 2006 Revenues of €1.089,9 million, representing 20,7% year-over-year growth. EBITDA of €120,9 million, representing 31,7% year-over-year growth. Net Income of €46,3 million, representing 67,4% year-over-year growth. Net Debt position (ex Project Finance) of €99.5 million, as against €2
Slide 35: First Half 2006 Highlights
First Half 2006 Highlights Strong growth in Revenues, EBITDA and Net Profit Abengoa’s consolidated sales in the first half of 2006 were 1,089.9 M €, a 20.7% increase on the previous year. All of Abengoa’s Business Units increased their sales in the first six months of this financial year. The EBITDA
Slide 36: First Half 2006 Highlights: Commercial and strategic milestones
First Half 2006 Highlights Significant progress in commercial and strategic milestones Bioenergy ⌦ Groundbreaking ceremony for the bioethanol production facility site in the south of France. ⌦ Successful start-up of the ethanol plant in Salamanca. Environmental Services ⌦ New contracts in Spain for
Slide 37: Highlights by Business Unit
Highlights by Business Unit Revenues Ebitda (€M) (€M) H1 05 H1 06 H1 05 H1 06 500 60 400 50 40 300 30 200 20 100 10 0 0 Bioenergy Environmental Information Ind. Engineering Bioenergy Environmental Information Ind. Engineering Services Technologies and Construction Services Technologies and Construct
Slide 38: Contribution by Business Unit
Contribution by Business Unit € in Millions 1100 +88.4 1,089.9 1050 +31.6 1000 +39.9 950 +27.2 900 Revenue Growth 902.8 850 H1 2005 Bioenergy Environm. Information Industrial E&C H1 2006 Services Technologies 125 +19.9 120.9 120 115 110 105 +3.8 100 +3.2 95 +2.2 90 91.8 EBITDA Growth 85 H1 2005 Bioe
Slide 39: Unaudited P&L Account
€ in Millions, except EPS H1 2006 H1 2005 Unaudited P&L Account Net turnover 1.090 903 Variation in inventories 37 6 Other operating income 20 47 Materials consumed (629) (542) Personnel expenses (194) (162) Research and development costs (8) (7) Other operating expenses (194) (153) Ebitda 121 92 De
Slide 40: Agenda
Agenda 1. Abengoa 1995-2005 2. Business Unit 3. Appendix: Results for First Half 2006 2.1. Consolidated 2.2. Business Unit 40
Slide 41: Industrial Engineering and Construction H1 2006 Review
Industrial Engineering and Construction Percentage of Total ¤ H1 2006 Review Revenues Highlight Revenues reached 467.5 M €, which is a 23.3% increase on those of the same period of the previous year. The Ebitda has also increased on the previous year by 19.9 M €, and has gone from 36.7 M € in the fi
Slide 42: Environmental Services H1 2006 Review
Environmental Services Percentage of Total ¤ H1 2006 Review Revenues Highlights Revenues (218.0 M €) increase by 22.4%, due to: Higher volume of wastes treated in all the Group’s areas, especially by the Aluminum Waste 20,0% Recycling Unit (+41%) Higher volume of works executed by the Environmental
Slide 43: Information Technologies H1 2006 Review
Information Technologies Percentage of Total ¤ H1 2006 Review Revenues Highlights The sales figure for the first half-year of 2006 reached 189.9 M €, which is a 20% increase on 2005. Excluding the impact of the acquisitions (Almos and BBS), sales growth remains at 16.3%. 17,4% The Ebitda is 16.2 M €
Slide 44: Bioenergy H1 2006 Review
Bioenergy Percentage of Total ¤ H1 2006 Review Revenues Highlights 214,5 M € of revenues, a 14.5% increase, due to: Higher sales prices in both the EU and US. 19,7% Higher pool prices at the cogeneration facilities of the EU plants. Volume increase in the EU market. Revenue 26.0 M € of Ebitda, a 9.3
Slide 45: Your Partner in Resources and Technical Solutions
ABENGOA Your Partner in Resources and Technical Solutions September 2006 45