Abengoa Sa · OTC:AGOAF
Abengoa Sa — Q1 2015 Earnings Presentation
39 slides from Abengoa Sa's earnings presentation, May 14, 2015
Slide 1: Q1 2015 Earnings Presentation
Innovative Technology Solutions for Sustainability ABENGOA Q1 2015 Earnings Presentation May 14, 2015
Slide 2: Forward-looking Statement
Forward-looking Statement • This presentation contains forward-looking statements (within the meaning of the U.S. Private Securities Litigation Reform Act of 1995) and information relating to Abengoa that are based on the beliefs of its management as well as assumptions made and information currentl
Slide 3: Agenda
Agenda Q1 2015 Business Review Q1 2015 Financial Review Outlook & Targets Appendix 3
Slide 4: Q1 2015 Business Review
Agenda Q1 2015 Business Review 4
Slide 5: Q1 2015 Financial Summary
Q1 2015 Financial Summary Solid quarter to start 2015 as expected P&L Business KPI’s Balance Sheet & CF Revenues €1.6bn +1% E&C Bookings €1.7bn +13% Adj Corp Leverage(1) 1.5x -1.0x 1.5x 1,559 1,702 Q1'14 Q2'14 Q3'14 Q4'14 Q1'14 Q1'14 Q2'14 Q3'14 Q4'14 Q1'14 M'14 J'14 S'14 D'14 M'15 PF EBITDA €321mn
Slide 6: Q1 2015 Highlights
Q1 2015 Highlights Positive business performance & corporate strategic actions Solid EBITDA growth due to high margins and new projects in operation • E&C: record backlog driven by robust new bookings in Q1; trend continue in Q2 Business • New concessions in operation boosting revenues, EBITDA and m
Slide 7: Update on Strategic Actions in 2015
Update on Strategic Actions in 2015 ~1.4 B€ of cash generation from corporate actions already achieved Status Transaction Value Incl. in Updated 2015 FCF Guidance Sale of 13% stake in ABY 270 M€ 270 M€ 100% - equity recycling ROFO 2 agreement 120 M€ 120 M€ 100%- equity recycling 0% - Exchangeable Ex
Slide 8: Geographic Diversification
Geographic Diversification Revenue growth fueled by projects in developing economies Revenues by Region Weight (%) Y-o-Y Growth M€ Decrease in North 583 America due to South America 311 37% 20% +87% completion of Total Americas: large projects 342 59% compensated with North America 693 22% 45% -51%
Slide 9: Business Highlights - E&C
Business Highlights - E&C Strong EBITDA, attractive margins & order intake Engineering & Construction (M€) Revenues EBITDA & Margin • Double-digit EBITDA growth due to strong execution on projects in Chile, +0.2% +26% Mexico, South Africa,… 1,068 1,070 243 194 • High EBITDA margin in Q1 due to large
Slide 10: Mar. 2015 E&C Backlog
Mar. 2015 E&C Backlog Increased E&C backlog to +8.6 B€ and an additional 3.0 B€ of O&M Engineering & Construction Backlog Backlog Evolution Conversion to Revenues 3.0 9.4 B€ 0.1 0.1 2.8 0.8 8.6 2.7 3.3 8.0 7.2 3.4 ~38% ~25% ~27% ~XX% Mar'13 Dec.'14 E&C Mar.'15 Fulcrum+Salina O&M Backlog Rest 2015 20
Slide 11: Business Highlights - Concessions
Business Highlights - Concessions Continued growth and high EBITDA margins in Concessions Abengoa Abengoa Concessions Concessions (M€) Revenues EBITDA & Margin • Significant growth due to new 81% 165% projects in operation: Norte Brazil, 84 122 Tenes, etc. 67 • Increased margins due to efficiencies
Slide 12: ROFO Highlights: 614 M€ sale of solar assets to Abengoa Yield
ROFO 3 Highlights 614 M€ sale of solar assets to Abengoa Yield ROFO 3 Assets Highlights Asset Stake Loc. Capacity Status • Contract signed: transaction approved by both Board of Directors Helioenergy 1&2 70% 100 MW Oper. • 614 M€(1) price expected to be Helios 1 & 2 100% 100 MW Oper. collected in Q2
Slide 13: Concessions Assets - Snapshot
Concessions Assets - Snapshot First class project pipeline to further fuel ABY growth First class assets in operation & under construction Strong CAFD at ABY; 30-34% to fuel Abengoa Yield Growth growth in DPS expected in 2016 ABENGOA APW-1 ABENGOA YIELD Operation Construction Construction IPO ROFO
Slide 14: Business Highlights - Bioenergy
Business Highlights - Bioenergy Weak crush spreads in USA & Europe in Q1 2015; improving now Bioenergy (M€) Revenues EBITDA & Margin (10)% (117)% 406 • Negative EBITDA due to weak 367 39 crush spreads in USA & EU in Q1 9.5% • Lower ethanol price and volumes (7) produced impacting revenues (1.8)% Q1'
Slide 15: Q1 2015 Financial Review
Agenda Q1 2015 Financial Review 15
Slide 16: Q1 2015 P&L Snapshot
Q1 2015 P&L Snapshot EBITDA growth and maintaining high margins Q1 2015 Performance (€ millions) Q1 2015 Y-o-Y Change Revenues 1,559 +1.1% Q1 2015 revenue growth of 1.1% Raw Materials & Operating Cost /Income (1,236) (3.2)% • On track to achieve year guidance % of Sales 79.3% (350) bp R&D (2) (27.4)
Slide 17: Q1 2015 Corporate FCF
Q1 2015 Corporate FCF ~663 M€ Corporate FCF in Q1 2015PF after recent transactions Mar. 2015 Q1 2014 Q1 2015 Post Q1’15 events Adjusted EIG Payment ROFO 3 Corporate EBITDA 211 222 222 Net Financial Income/(Expense) (98) (132) (132) Taxes (11) 5 5 Dividends from Abengoa Yield - 9 9 Funds from Operati
Slide 18: Consolidated Cash-flow
Consolidated Cash-flow Q1 2014 Q1 2015 EBITDA 264 321 Working Capital (547) 84 Net Interest Paid (135) (194) Operating Taxes & Other Financial Cost (26) - Activities Non-monetary Adjust. (13) (37) Discontinued operations 9 17 A. Cash generated from operations (448) 192 Investing Total CAPEX invested
Slide 19: Net Debt Overview
Net Debt Overview Net corporate leverage of 1.5x after recent transactions Mar. 2014 Mar. 2015 Mar. 2015 Post Q1’15 events Millions € Adjusted EIG Conversion ABY ROFO 3 Payment CB 2019 Exhan.(1) Corporate Debt 6,229 5,578 - (198) (223) - 5,157 Corporate Guaranteed by Corporate Corporate Cash, Equiv.
Slide 20: Corp. Net Debt Bridge
Corp. Net Debt Bridge Adjusted corporate net debt of ~1,450 M€ after recent transactions Amounts in M€ (234) (44) (105) (132) 460(1) 75 5 9 222 130 (2,556) 223 (2,353) 301 (1,442) Dec. Mar. Mar. 2014 2015 2015 PF 20 (1) ~460 M€ payment from EIG received in April 7, 2015 in an escrow account. ~200 M€
Slide 21: Zoom in Bridge Loans (NRDP)
Zoom in Bridge Loans (“NRDP”) 1.9 B€ of Bridge Loans as of March 31, 2015 Bridge Loan Info Long-term N/R Debt Uses & Sources Value Source Guarantee Maturity Expec. closing date C EPC Sponsor / Jul’15 – T&D Brazil 1,097 A B Jul’15 – Sep’17 Sources (€m) Uses (€m) Corp. Sep’19 Green Hosp. Manaus 61 C E
Slide 22: March 2015 Corporate Liquidity
March 2015 Corporate Liquidity 3.0 B€ of corp. liquidity as of March 2015 March 2015 Corp. Liquidity • Distributed among ~40 institutions, out 3,022 M€ of which no one represents >10% • Additional liquidity sources already 1,391 M€ secured: • 0.5 B€ of EIG initial payment; ~0.2 B€ of which has been
Slide 23: Corporate Liquidity Protection in 2015
Corporate Liquidity Protection in 2015 Substantial liquidity sources to face our corporate commitments Amounts in M€ 327 120 200 120 301 ~4,310 460 3,022 Cash Cash linked to linked to suppliers suppliers 1.3 B€ 1.3 B€ Corp. EIG payment ROFO 3 (1) Dilution to 40% EIG add. Payment Other ECP expected T
Slide 24: Corporate Debt Maturity Profile
Corporate Debt Maturity Profile Improving our debt maturity profile efficiently Mar. 31, 2015 Pro-forma Recourse Maturity (€m) ~4.3 B€ Cash 1,042 1,072 linked to 840 822 829 suppliers 260 409 320 6 273 543 1.3 B€ 371 606 794 125 550 400 520 500 246 170 113 150 34 43 2015 Estimated Rest 2015E 2016E 2
Slide 25: Outlook & Targets
Agenda Outlook & Targets 25
Slide 26: Strategic Actions in 2015
Strategic Actions in 2015 Executing transactions as committed to generate cash in 2015 Included in Original Included in Updated Updated Transactions expected for 2015 FCF Guidance FCF Guidance 13% ABY stake sale 270 M€ 270 M€ 270 M€ ROFO 2 120 M€ 120 M€ 120 M€ APW-1 EIG Agreement 550 M€ 550 M€ 660 M
Slide 27: 2015 Corporate FCF Guidance
2015 Corporate FCF Guidance 2015E corp. FCF guidance maintained; supported by strategic plan Previous 2015 Updated 2015 Guidance Adjustments Guidance Corporate EBITDA ~930 ~930 Net Financial Income/(Expense) & Taxes ~(470) ~(470) Dividends from Abengoa Yield 40 40 Funds from Operations ~500 ~500 Cha
Slide 28: FY2015 Guidance
FY2015 Guidance FY 2015 guidance focus on further deleverage € Millions Previous ROFO 3 FY 2015 New Guidance € Millions YoY Growth Revenues 7,850-7,950 (100) 7,750-7,850 8-10% EBITDA 1,400-1,450 (70) 1,330-1,380 -5/-2% P&L Corporate EBITDA 920-935 920-935 -5/-3% Net Income 280-320 280-320 125-155% N
Slide 29: Main Takeaways
Main Takeways (I) Positive start of the year: growing business and positive outlook for 2015 Delivering all the strategic corporate actions as committed Reinforcing liquidity and improving capital structure: better credit profile Continued focus on technology to create key Committed to FCF generatio
Slide 30: Appendix
ABENGOA . 4) Appendix
Slide 31: Q1 2015 Results by Activity
FY 2014 Results by Activity € in Millions Revenues EBITDA EBITDA Margin Q1’15 Q1 ‘14 Var (%) Q1 ’15 Q1 ‘14 Var (%) Q1 ’15 Q1‘14 Engineering and Construction E&C 1,070 1,068 0% 243 194 26% 22.8% 18.1% Total E&C 1,070 1,068 0% 243 194 26% 22.8% 18.1% Abengoa Concessions Solar 58 40 46% 39 16 135% 67.1
Slide 32: Zoom in E&C Pipeline
Zoom in E&C Pipeline ~165 B€ of Pipeline Opportunities Diversified by Sector & Region T&D 12% 17% Pipeline 164.5 B€ By Sector 7% Power Generation Water 18% Indust. Plants 46% Billion € Others +3% 159.4 164.5 12% North America 24% Europe By Region Brazil 31% 11% Rest South America 11% Asia 12% Africa
Slide 33: Additional O&M Backlog
Additional O&M Backlog +3.0 B€ of O&M revenues expected for the next ~24 years Significant revenues from O&M services for Very well diversified by sector and external projects during the next 24 years by region ~2.9 B€ 3.0 B€ 5% 8% T&D 18% Renewable ~75 M€ Conventional 10% ~55 M€ Water 60% O&M Mar'1
Slide 34: Concessions Equity BV Evolution
Concessions Equity BV Evolution Reduced risk profile as we bring assets in operation Value in Projects in Operation & under Construction 2.0x 0.9x 0.7x 0.3x 0.4x • 1.5 B€ of EBV in operation, 1.2 € millions B€ of EBV in projects under 1,208 construction and 1.3 B€ market 874 value of 51% stake in AB
Slide 35: Abengoa Concessions (I): Concessions in Operation
Abengoa Concessions (I) Concessions in Operation as of Mar. 31, 2015 Sector Asset Country ABG ownership COD Current EBV Chennai India 25% 2010 Tenes Algeria 51% 2014 83.3 Ghana Ghana 56% 2015 M€ Inapreu Spain 50% 2010 Other concessions Spain Spain 50-100% 2008 53.7 Concecutex Mexico 50% 2010 M€ ATE
Slide 36: Abengoa Concessions (II): Under Construction/Development
Abengoa Concessions (II) Concessions under Construction/Development as of Mar. 31, 2015 Sector Asset Country ABG ownership COD Current EBV Agadir Morocco 51% 2017 SAWS USA 45%* 2019 18.2 Zapotillo Mexico 100% 2017 M€ A3T Mexico 45% 2017 A4T Mexico 45% 2018 Hospital Manaus Uruguay 60% 2015 471.8 Urug
Slide 37: Pending Capex by Project
Pending Capex by Project Pending CAPEX Amounts based on the company´s best estimate as of Mar. 31, 2015. Actual investments or timing thereof may change. Partners Abengoa Entry in Total ABG Equity (incl. EIG initial payments Capacity Country Debt (%) Operation Investment Capex to ABG for CAPEX alrea
Slide 38: Asset Portfolio Capacity - Summary
Asset Portfolio Capacity - Summary Solid and well diversified asset portfolio Extensive concessional asset base once current capex plan completed Solid producing assets Solar (MW)(1) Transmissions (km) 2,283 Biofuels (Ml/year) 690 3,175 3,270 1,503 11,963 6,688 1341 1341 5,143 3,270 3,270 1,611 1,74
Slide 39: Thank you
Innovative Technology Solutions for Sustainability ABENGOA Thank you May 14, 2015