Abengoa Sa · OTC:AGOAF
Abengoa Sa — FY2010 Earnings Presentation
42 slides from Abengoa Sa's earnings presentation, Feb 24, 2011
Slide 1: Fiscal Year 2010 Earnings Presentation
Innovative Solutions for Sustainability ABENGOA Fiscal Year 2010 Earnings Presentation February 24th, 2011
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 Business Information 2 Financial Information 3 2011 Highlights 4 Appendix 3
Slide 4: Business Information
Agenda 1 Business Information 2 Financial Information 3 2011 Highlights 4 Appendix 4
Slide 5: 2010 Highlights
2010 Highlights Successful performance in a challenging environment Revenues of €5,566 M, an increase of 34% y-o-y Excellent financial EBITDA of €942 M, an increase of 26% y-o-y results Net income of €207 M, an increase of 22% y-o-y Engineering and Construction (E&C) backlog up to €9.3 B - 90% visib
Slide 6: Business diversification
Business diversification Continuing the diversification towards robust business model Revenues (M€) 2009 Var (%) 2010 Engineering & Construction 2,481 +26% 3,121 Concession-type Infrastructures 219 +41% 308 Industrial Production 1,447 +48% 2,137 Total 4,147 +34% 5,566 2009 2010 35% E&C 38% Concessio
Slide 7: Business Objectives
Business Objectives Recurring EBITDA increased from 48% to 56% EBITDA (M€) 2009 Var (%) 2010 Engineering & Construction 389 +7% 415 Concession-type Infrastructures 143 +46% 208 Industrial Production 218 +46% 319 Total 750 +26% 942 2009 2010 29% E&C 44% 34% 52% Concession-type Infrastructures 19% Ind
Slide 8: Geographic Diversification
Geographic Diversification +70 significant projects in 20 different countries during 2010 2010 Revenue Breakdown 4% 4% Spain Rest of Latin America 26% 15% Brazil Asia & Oceania 16% US Africa 19% 16% Rest of Europe The Americas (principally Brazil and US) account for 50% while Spain accounts for 26%
Slide 9: E&C: Revenue growth, backlog increase, geographic expansion
E&C Revenue growth, backlog increase, geographic expansion Significant revenue increase of 26%, with 79% Stable presence in 32 countries of revenues coming from external customers* Strong engineering capabilities allows to – CAGR 05-10: 22% (total); 20% (external only*) capture growth opportunities
Slide 10: E&C: +26% revenue growth supported by a strong backlog
E&C +26% revenue growth supported by a strong backlog Financial figures 2010 Revenue Breakdown Revenues EBITDA (€M) (€M) Spain 1% 6% 415 7% 3,121 389 Rest of Latin America 26% Brazil 11% 2,481 16% US 13% Asia & Oceania Africa 22% 27% Europe exc. Spain 2009 2010 2009 2010 Backlog (€M) 11% 9,274 8,813
Slide 11: E&C 2010 Landmark Projects (I)
E&C 2010 Landmark Projects (I) Solar Power Client: ONE Power Client: Xcel Energy Location: Morocco Location: 450 MW Integrated Colorado, USA Solar Combined Integration of a Cycle (ISCC) CSP installation in Amount: $522 M a coal power plant 1st ISCC project in Amount: $2 M the world Solution to incre
Slide 12: E&C 2010 Landmark Projects (II)
E&C 2010 Landmark Projects (II) Cogeneration Client: Pemex Client: Abengoa Location: Mexico Bioenergy 300 MW Location: Brazil Cogeneration plant 2 x 70 MW plants Amount: $630 M in sugar cane mills 1st cogeneration Amount: $120 M project in a Pemex refinery Water Client: Qingdao Power Client: Apa Bra
Slide 13: Concession-type Infrastructures
Concession-type Infrastructures Eight new assets brought into operation during 2010 Revenues and EBITDA increased as new assets Joint Ventures with: became operational EBITDA margin of 67% Eight new assets in operation: – Three 50 MW CSP plants in Spain Financing secured for 280 MW Solana project –
Slide 14: Revenues and EBITDA secured for 27 years
Concession-type Infrastructures Revenues and EBITDA secured for 27 years Financial figures 2010 Revenue Breakdown Revenues EBITDA Backlog (€M) (€M) (€M) 5% 10% Transmission 308 208 34,976 30,666 Solar 219 19% 143 Cogeneration 66% Water 65% 67% 4% Spain 2009 2010 2009 2010 2009 2010 36% Gross Fixed A
Slide 15: Industrial Production
Industrial Production Strong operational performance across all of our plants Biofuels: Industrial recycling: – Revenues of €1,575 M and EBITDA of – Revenues of €562 M and EBITDA of €212 M compared to €1,010 M and €123 M €108M compared to €437 M and €95 M in 2009 in 2009 – No further investment in 1
Slide 16: Industrial Production: +46% EBITDA increase
Industrial Production +46% EBITDA increase Financial figures 2010 Revenue Breakdown Revenues EBITDA (M€) 2,137 (M€) 319 2% Europe exc. Spain 10% 562 US 1,447 218 108 40% Ind. Recycling 23% Spain 437 Biofuels 95 Brazil 22% 19% 1,575 25% Asia & Africa 1,010 12% 13% 123 212 2009 2010 2009 2010 Gross Fi
Slide 17: Industrial Production: Significant presence in key growing areas
Industrial Production Significant presence in key growing areas Biofuels production (ML) Revenue breakdown (%) 2,224 13% USA 1,374 35% EU 28% Brazil 2009 2010 Waste treated (Mt) Revenue breakdown (%) 2.2 Germany 7% 1.8 26% Spain 36% France Rest of Europe 21% 10% Asia & Africa 2009 2010 17
Slide 18: Technology update (I)
Technology update (I) We are at the forefront in Solar CSP technologies… Main Programs Goals 2010 Achievements CSP – Tower Increase efficiency “Eureka” has accumulated 1,200 operation hours, demonstrating the viability of this new CSP – Trough Reduce components cost superheated steam technology Ther
Slide 19: Technology update (II)
Technology update (II) … and in 2nd generation biofuels Main Programs Goals 2010 Achievements Enzymes Competitive cellulosic Complete basic process engineering package technology ethanol for first commercial cellulosic ethanol facility in Kansas, U.S. Cellulosic Ethanol Competitive Enzyme technology
Slide 20: Timeline: Main projects in execution
Timeline: Main projects in execution 2010 2011 2012 As of Dec. 31 ‘10 Capacity Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Solnova 1 & 3 (Sanlucar) SPP1 (Algeria) 2x50 MW 150 MW Solnova 4 (Sanlucar) Helioenergy 1 & 2(Écija) 50 MW 2x50MW Solar Solacor 1&2 (Córdoba) 2x50MW Solaben 2&3 (Extremadura) 2x50MW Sta
Slide 21: Assets Portfolio after Capex Plan
Assets Portfolio after Capex Plan Concession-type Infrastructures Industrial Plants Solar Power Assets Transmission Assets Biofuels Assets (MW) 1,503 (km) (ML/yr) 3,195 9,233 3,105 380 90 4,820 1,905 4.041 4.413 930 193 43 2009 2010 2013/14 2009 2010 2013/14 2009 2010 2013/14 Cogeneration Assets Des
Slide 22: Financial Information
Agenda 1 Business Information 2 Financial Information 3 2011 Highlights 4 Appendix 22
Slide 23: Accounting Considerations
Accounting Considerations Change in application of IFRIC 12 to certain CSP power plants in Spain In previous quarters, we have applied IFRIC 12, Service Concession Agreements, to CSP power plants in Spain included in “pre-registration” In January 2011, as part of an ordinary review conducted by the
Slide 24: Key Financial Information
Key Financial Information 2010 2009 YoY % Highlights €M Strong revenue growth in every Revenues Revenues 5,566 4,147 +34% segment EBITDA 942 750 +26% EBITDA Margin 17% 18% Significant EBITDA increase, above guidance provided Net Income 207 170 +22% Net income EPS € 2.29 1.88 Net Income increase of +
Slide 25: Contribution by Segments
Contribution by Segments Strong operating performance in every business Revenues (€M) 690 5,566 639 90 4,147 38 % 34% 35 % 6% 5% 56 % 60 % FY '09 E&C Concession-type Industrial FY '10 Infrastructures Production 101 942 EBITDA (€M) 26 65 750 34% 26% 29 % 22% 19 % 52 % 44% FY '09 E&C Concession-type I
Slide 26: High Revenue Visibility
High Revenue Visibility Backlog (€M) Backlog Conversion (€M) Dic. 2010 2011 2012 2013 +2013 E&C Order Book * 9,274 ~4,200 * ~3,500 * ~1,400 * ~160 * 34,976 33,048 Concession-type Asset based, recurring revenues 350 617 961 Industrial Production 17,500 ** 10,000 2,500 2,500 2,500 *Note: Engineering b
Slide 27: Total leverage in line with previous period
Total Debt Total leverage in line with previous period Total Net Debt Bridge M€ Dec ‘10 Dec ‘09 Corporate Debt 5,063 3,286 Non recourse Debt 4,050 2,933 368 5,216 2.094 Cash & Equivalents & STFI (3,897) (2,028) 4,190 Total Net Debt 5,216 4,190 Total EBITDA 942 750 942 Total Net Debt / Total EBITDA 5
Slide 28: Corporate Debt
Corporate Debt Net Corporate Debt down despite strong capex investment Net Corporate Debt Covenant Bridge M€ Dec ‘10 Dec ‘09 Corporate Debt 5,063 3,286 Cash & Equivalents & STFI (3,897) (2,028) 1,257 Net Corporate Debt* 1,166 1,257 1,166 297 Corporate EBITDA ** 658 685 817 Net Corp. Debt / Corp. EBI
Slide 29: Well funded at corporate level
Corporate Debt Well funded at corporate level €2.4 B of long term debt secured No financing needs at corporate level in 2011 Average cost of debt: 6.1% Limited interest exposure: 90% covered Balanced sources of funding 2009 2010 Banks 6% 11% 9% 16% Bonds 9% 50% Institutional 76% 23% Convertible bond
Slide 30: Committed capex plan, fully financed
Capex plan Committed capex plan, fully financed As of December 31 ‘10 €2,264 M €1,332 M N/R Debt €2,675 M 1,633 Partners’ equity €400 M Abengoa €1,281 M 708 850 €4,356 M Total 80 276 €273 M €290 M 551 €196 M 348 186 290 147 29 16 58 34 Transmission Solar CSP Cogeneration Biofuels 2G Desalination Inc
Slide 31: 2011 Highlights
Agenda 1 Business Information 2 Financial Information 3 2011 Highlights 4 Appendix 31
Slide 32: 2011 Highlights: We expect
2011 Highlights We expect: Revenue growth in the low teens To continue the growth of our E&C business for external customers; CAGR of 20% for the last 5 years Low double digit EBITDA growth No need to issue new corporate debt in 2011 To continue our asset rotation strategy To align Corporate Capex w
Slide 33: Appendix
Agenda 1 Business Information 2 Financial Information 3 2011 Highlights 4 Appendix 33
Slide 34: P&L Account
P&L Account €M 2010 2009 YoY % Sales 5,566 4,147 +34% EBITDA 942 750 +26% Depreciation & amortization expense (320) (319) 0% Net operating profit 622 431 +44% Net financial expense (359) (170) +111% Profit before income tax 263 261 +1% Income tax expense 0 (58) n.a. Profit of the year 263 203 +30% P
Slide 35: Net Income Growth & Asset Rotation
Net Income Growth & Asset Rotation Solid Growth without asset rotation Net Income 207 170 46 +22% 38 Asset Rotation + 161 Growth ex-asset rotation 133 2009 2010 Asset Rotation includes: In 2009, the sale of a minority stake in Telvent (€38 M impact on Net Income) In 2010, ETEE & ETIM transmission li
Slide 36: Balance Sheet
Balance Sheet 3,9 b€ in cash and equivalents €M Dec 31 ‘10 YoY % Dec 31 ’09 Fixed assets corporate 3,434 +2% 3,355 Fixed assets non recourse activities 5,745 +59% 3,623 Other Assets 3,898 +16% 3,363 Cash and short term financial 3,897 +92% 2,028 investments (mostly public debt, repos and deposits) C
Slide 37: Cash-flow Statement
Cash-flow Statement Solid operating cash flow + successful debt issuance allows for strong liquidity position even after investments €M 2010 2009 I. Consolidated after-tax profit 263 203 Non-monetary adjustments to the profit 502 539 II. Cash generated by operations 766 741 III. Variations in workin
Slide 38: Reconciliation 2010
Reconciliation 2010 in €M Engineering Environm. Bioenergy Solar IT Total & IC Services 2,012 256 111 742 3,121 E&C 248 11 27 129 415 Concession- 236 15 58 308 type Infrastructures 155 10 43 208 Industrial 562 1,575 2,137 Production 107 212 319 2,248 833 1,575 168 742 5,566 Total 402 128 212 70 129 9
Slide 39: Reconciliation 2009
Reconciliation 2009 in €M Engineering Environm. Bioenergy Solar IT Total & IC Services 1,352 278 92 759 2,481 E&C 194 20 3 173 389 Concession- 188 7 24 219 type Infrastructures 120 4 19 143 Industrial 437 1,010 1,447 Production 95 123 218 1,541 722 1,010 116 759 4,147 Total 314 119 123 22 173 750 Re
Slide 40: Liquidity and Corporate Debt Maturity
Liquidity and Corporate Debt Maturity Facility Amount (€M) (*) Pricing 2011 2012 2013 2014 2015 2016 2017-Fw Syndicated loans & FSF 2.112 Euribor + (70-275) bp 274 556 1.282 EIB loan 109 Euribor + 60 bp 109 Instituto Credito Oficial 150 Euribor + 60 bp 30 30 30 30 30 Credit lines at Abengoa S.A. 175
Slide 41: Balanced Asset Portfolio
Balanced Asset Portfolio FY 2010 FY 2009 Gross Net Gross Net Power Transmission 2,272 2,108 1,606 1,496 Solar CSP 1,915 1,750 1,125 995 Cogeneration 266 244 36 20 Water 411 388 298 281 Concession-type 4,864 4,490 3,065 2,792 infrastructure Biofuels 3,451 2,884 2,898 2,481 Recycling 1,078 721 997 674
Slide 42: Fiscal Year 2010 (closing cover)
Innovative Solutions for Sustainability ABENGOA Fiscal Year 2010 Earnings Presentation February 24th, 2011