Abengoa Sa · OTC:AGOAF
Abengoa Sa — FY2003 Earnings Presentation
48 slides from Abengoa Sa's earnings presentation, Mar 4, 2004
Slide 1: Cover letter to CNMV forwarding analyst presentation
Comisión Nacional del Mercado de Valores Paseo de la Castellana, nº 19 28046 Madrid Markets Area of the Supervising Department Seville, 4 March 2004 Ref. Other Communications Dear Sirs, We herewith forward a copy of the Company’s Presentation to Analists. In the meantime, I remain, Yours sincerely,
Slide 2: Your Partner in Resources and Technical Solutions
ABENGOA Your Partner in Resources and Technical Solutions March 2004
Slide 3: Disclaimer
ABENGOA Disclaimer "The present document has been drafted by Abengoa for its exclusive use as a presentation of the results of the period considered. It does not suppose a bid, commitment nor recommendation to subscribe or to acquire values, it has not been verified by third parties and consequently
Slide 4: Agenda
ABENGOA Agenda 2003 results and priorities going forward Overview of the four business units Q&A 3
Slide 5: Speakers
ABENGOA Speakers Amando Sánchez Falcón (CFO) Javier Salgado Leirado (CEO Bioenergy) Manuel Sánchez Ortega (CEO Information Tecnology) Miguel Angel Jiménez-Velasco Mazarío (General Counsel) Juan Carlos Jiménez Lora (Head of I.R.) 4
Slide 6: Overview
ABENGOA Overview Abengoa provides innovative technology based solutions to large corporate clients in the creation of infrastructures and in two more recent and high growth areas: sustainable development and information and knowledge management Engineering Environmental Information & Industrial Bioe
Slide 7: Strategy
ABENGOA Strategy A clear corporate Cash generation from traditional business (Engineering and strategy … Industrial Construction) to serve our large corporate clients in new high growth areas (Bioenergy, Environmental Services and Information Technology) … with aggressive 1) as profitable as bes
Slide 8: Main highlights
ABENGOA Main highlights Strong results and solid balance sheet in 2003 Positive outlook for 2004 Ten years of our Strategy Plan, delivering growth into new businesses and geographies and superior shareholder value A leader in all its core businesses with a solid customer base and low risk pr
Slide 9: Strong results in 2003
ABENGOA Strong results in 2003 M M €€ 03/02 03/02 CAGR CAGR 93-03 93-03 2003 2003 %% %% Sales Sales 1,635.3 1,635.3 +7.5 +7.5 13.9 13.9 EBITDA EBITDA 185.2 185.2 +6.0 +6.0 21.8 21.8 Net Net income income 47.0 47.0 +8.1 +8.1 20.3 20.3 Net Net cash cash flow flow (net (net 137.5 137.5 +16.2 +16.2 23.0
Slide 10: Results by Business Unit
ABENGOA Results by Business Unit M M €€ Engineering Engineering && Environmental Environmental IT IT Bioenergy Bioenergy Construction Construction Services Services 2003 2003 03/02 03/02 2003 03/02 03/02 2003 03/02 03/02 2003 03/02 03/02 % % 2003 % % 2003 % % 2003 % % Sales Sales 713.0 713.0 10.2 10
Slide 11: Main highlights by business
ABENGOA Main highlights by business Engineering & Sustained activity and profitability in Spain and Latin America Construction Intense commercial activity leading to high back log Low prices of aluminum, high competition, low exports due to Enviromental strength of euro Services Good evoluti
Slide 12: Positive outlook for 2004
ABENGOA Positive outlook for 2004 Engineering and Important backlog (18 months) industrial Geographic expansion under way (i.e.: Libya, Mauritania, Costa Rica...) construction Cost saving measures implemented during 2003 in aluminum Environmental business services Expansion plans under way i
Slide 13: Ten years with a clear strategic intent
ABENGOA Ten years with a clear strategic intent From … To … Grow into new business “A “A provider provider of of innovative innovative technology technology “An “An engineering engineering based based solutions solutions to to company company inin Spain Spain and and large large corporations corpora
Slide 14: Strategic goals successfully achieved 1993-2003
ABENGOA Strategic goals successfully achieved 1993-2003 Two strategic priorities defined in 1993 Business outside engineering Growth into new 57 % businesses 9 30% 1993 2003 International Business (M€) 1993 2003 International expansion 9 US and Canada Latinoamérica - 119.4 209.8 332.9 Europe (ex
Slide 15: Superior performance 1993-2003
ABENGOA Superior performance 1993-2003 Superior return to shareholders (100= IPO in 1996) Sustained economic 400 growth 1993-2003 300 Abengoa 271 ¾ Sales: +13,9% CAGR 200 I. Gral. 200 Ibex 35 ¾ EBITDA: +21,8% 166 100 CAGR 0 1996 2003 2000 14
Slide 16: Leader in every business
ABENGOA Leader in every business Engineering Engineering and and Environmental Environmental Information Information Bioenergy Bioenergy Industrial Industrial Services Services Technology Technology Construction Construction ## 11 Ethanol Ethanol Leader Leader in in Spain Spain International Interna
Slide 17: A diverse and stable client base
ABENGOA A diverse and stable client base: largest client 6% of revenues Bioenergy Information Technology Engineering and Industrial Environmental Services Construction 16
Slide 18: Innovation will be the fundamental source of future growth
ABENGOA Innovation will be the fundamental source of future growth Strong internal R&D plan including: – Bioenergy: 35 million U$D multi-year project 50% co-financed with US DOE and 4,5 million € EU V Framework Program grant for biomass demonstration plant – Information Technology: 10 million € ye
Slide 19: Corporate priorities: use generated cash to grow
ABENGOA Corporate priorities: use generated cash to grow Profitable growth 1 Bioenergy Fund growth opportunities in EU and US in a market where Abengoa Bioenergy is a world wide leader (2nd largest, the only one with strong presence in EU and US, leader in R&D) Engineering & Cash Construction gen
Slide 20: Priorities by business unit
ABENGOA Priorities by business unit Cash generation Engineering Grow in certain new profitable geographies (i.e. North Africa, & Industrial Middle East) and businesses (i.e. solar energy) Construction Capture BOT opportunities for large corporates Environmental Increase profitability of alum
Slide 21: Corporate Government
ABENGOA Corporate Goverment Latest Incorporations and present situation Board of Directors – Incorporation of independent directors – Secretary and legal Counsel Advisory Board to the Board of Directors – Incorporation of independent directors Committees of the Board of Directors – Audit Commi
Slide 22: Corporate Government: Norms
ABENGOA Corporate Goverment Norms of Corporate Goverment Board of Directors Articles of Incorporation Managing Rules of the Board of Director Rules for the internal Regime regarding the stock Exchange Market Managing Rules of the General Shareholders Meetings Professional Code of Conduct
Slide 23: Engineering & Industrial Construction
ABENGOA Engineering & Industrial Construction The leader in Spain and Latinamerica 22
Slide 24: Engineering & Industrial Construction
ABENGOA Engineering & Industrial Construction Leader in Spain and Latam of several Engineering and Industrial Construction markets: - Electric generation and distribution - Industrial - Transport. 23
Slide 25: Our business
ABENGOA Our business Power generation: CCGT´s, cogeneration and biomass T & D: High voltage Transmission lines and substations Markets Industry: Mechanical, electrical and Telecom installations and services Transport: High Speed Railway Infrastructure. Spain: 56% México: 19% Geographies
Slide 26: Blue Chip Customer Base
ABENGOA Blue Chip Customer Base Clients Generation Electricity Competitive advantages T&D International Presence Turn – key & financing Industry capabilities & Telecom Technology (high speed, solar, ….) Transport 25
Slide 27: Engineering & Industrial Construction
ABENGOA Engineering & Industrial Construction Cash generator and proved business model Strong project management culture Backlog March 2004 (18 months) Market opportunities 2004-2008: – T &D & Generation: Spain: REE (1.5 bn€), Iberdrola (8.6 bn€ ), Unión Fenosa (2.0 bn €), Endesa. Latam: CFE
Slide 28: BEFESA (Environmental Services)
ABENGOA BEFESA (Environmental Services) A leader in industrial waste management in Spain www.befesa.es 27
Slide 29: Befesa
ABENGOA Befesa Befesa leads three environmental services markets in Spain: industrial waste management, environmental engineering and services and aluminum residues recycling. 28
Slide 30: Our business
ABENGOA Our business Industrial waste management: Fee based waste management & cleaning services to industrial corporations Engineering and services: Design, construction and operation of environmental infrastructures in multi-year Markets contracts Recycling of aluminum residues: purchase of
Slide 31: Blue chip customer base
ABENGOA Blue chip customer base Clients Industrial waste Competitive management advantages Superior technology in certain markets (i.e. metallic waste, industrial Engineering cleaning, water & services treatment and desalination) Network of environmental Aluminum platforms residues recycling 30
Slide 32: Our business plan: grow in industrial waste management
ABENGOA Our business plan: grow in industrial waste management Strategic priority Continue building an integrated “one stop shop” for large corporations Industrial waste Capture profitable growth opportunities in Spain: management – Opening new waste collection, treatment and recycling facilit
Slide 33: TELVENT (Information Technology)
ABENGOA TELVENT (Information Technology) Manuel Sánchez Ortega CEO Telvent www.telvent.com 32
Slide 34: Telvent
ABENGOA Telvent Telvent’s vision Telvent is a leader provider of complete RealTime IT solutions in selected industrial sectors (Energy, Traffic, Transport and Environment) in the Americas, Spain and China, enabling our customers to more efficiently manage their operations and business processes. 33
Slide 35: Telvent's solutions help to...
ABENGOA Telvent Telvent’s solutions help to … – Manage more than 70% of oil and gas pipelines movements of hydrocarbons of North and Latin America. – The transmission and distribution of more than 140.000 GWh, providing electricity to more than 80 million people. – Control vehicle traffic at more th
Slide 36: Strategy: Up the Hour Glass
ABENGOA Strategy Knowledge Enterprise Enterprise Integration Up the Hour Glass Data Center / Hosting / BRS Business Apps (i.e. Control workforce management, Center simulation) Information Operational Apps Data Acquisition & Control Communications Field Field data RTUs 35
Slide 37: Our business
ABENGOA Our business Strong presence in Spain (45% of current revenues) ¾Geographies Important presence in America (41% of current revenues) Growing relevance in China. ¾Sectors Selected “verticals” where processed field data is key for business decision making (i.e. traffic management). A
Slide 38: Telvent
ABENGOA Telvent CAGR Revenues 31 EBITDA 21% 18% 302 21 18 232 214 210 14 15 158 EBITDA Margin 1999 2000 2001 2002 2003 1999 2000 2001 2002 2003 9% 9% 7% 7% 9% 9% 9% 10% 2003E 2003E 2003 2003 Energy and Other China Other Environment 12% 11% Spain 49% Brazil 3% 9% 45% North Traffic& America Transport
Slide 39: Distinctive client base
ABENGOA Telvent Distinctive client base Energy Municipal Public Security Traffic New York City Transit Bureau Beijing Capital Highway Development Transport Environment 38
Slide 40: Ambitious future growth strategy
ABENGOA Telvent Ambitious future growth strategy Consolidate leadership in core geographies and sectors x2 600 420 300 2003 Mid term Mid term organically with acquisitions Position to capture Complete current mid/long term growth offering for utilities opportunities (Business Process Outsourcing, BO
Slide 41: ABENGOA BIOENERGY
ABENGOA ABENGOA BIOENERGY Science. Solutions.Service Javier Salgado Leirado CEO Abengoa Bioenergy www.abengoabioenergy.com 40
Slide 42: Abengoa Bioenergy
ABENGOA Abengoa Bioenergy Abengoa Bioenergy is a worldwide leader in renewable fuels, (bioethanol) with a unique set of assets in key markets (Europe and USA), and leader in R&D of renewable fuels Cartagena Curtis York Colwich Portales (Murcia) (A Coruña ) (Nebraska) (Kansas ) (Nuevo Mexico) 41
Slide 43: Our business
ABENGOA Our business Production and supply of bio-ethanol, “green” fuel derived from biomass mixed directly or indirectly into fossil based fuels Business Clients oil companies through mid to long term contracts Committed support by US and EU Administrations #1 in Europe with a installed cap
Slide 44: Distinctive set of clients
ABENGOA Distinctive set of clients Clients Competitive US advantages: Technology (productivity, R&D) Presence in US and Europe Track record in Europe as a pioneer: recognized technology and consolidation Europe relationships Existing installed capacity 43
Slide 45: Markets
ABENGOA Markets Europe US First stages of development (# 500 20 year competitive industry M liter) 3bn gallon (11.340 M liter) # 1 installed capacity (326 M liter) #5 installed capacity (342 M liter) Two new Directives in 2003 Today state MTBE ban and bi- partisan support - 2003/30/CE
Slide 46: Growth strategy
ABENGOA Growth strategy 3 On the long term, the best option could 3 be fuel cells, where ethanol could be a fishable source of hidrogen “Boundaryless Ethanol fuel cells opportunity” Biofuels such as ethanol are the most viable option Biomass 2 2 Significant probability of breakthrough in technology
Slide 47: Growth plans
ABENGOA Growth plans 1. Achieve industry best operational performance throught best practices and R&D effort 719 750 EBITDA margen (%) 600 .5 2. EU: Leverage existing capacity x2 14% for exports to enter new long 450 14 Sales term markets and new on-site 291 300 projects 11 11% 150 0 3. US: - Ma
Slide 48: In summary, from an engineering company to a growth story
ABENGOA In summary, from an engineering company to a growth story Innovation Corporate client Engineering base Environment Information & Bioenergy Shared services technology Construction management principles and Cash High growth business resources generator Leadership positions in their