Abengoa Sa · OTC:AGOAF
Abengoa Sa — Telvent — Investor Presentation (February 2005)
34 slides from Abengoa Sa's investor presentation, February 2005
Slide 1: Telvent Presentación Analistas
TELVENT Presentación Analistas Madrid, Hotel Occidental Miguel Ángel (Febrero, 2005) 1
Slide 2: Forward-Looking Statement
Forward-Looking Statement This presentation contains forward-looking statements and information relating to Telvent, that are based on the beliefs of its management as well as assumptions made and information currently available to Telvent. Such statements reflect the current views of Telvent with r
Slide 3: Agenda
Agenda • Telvent • Highlights • Telvent IPO • Financial Overview • Acquisitions • Business Outlook • Summary 3
Slide 4: 1. Telvent
* TELVENT TS 1. Telvent
Slide 5: Experienced Management Team
Experienced Management Team Manuel Sánchez José I. del Barrio Ana M. Plaza Larry Stack Dave Jardine Dai Jue Chairman and CEO VP Bus. Developmt. & IR CFO CTO VP North America VP China Years with Telvent: 15 Years with Telvent: 16 Years with Telvent: 9 Years with Telven
Slide 6: Telvent´s Vision
Telvent´s Vision Telvent’s vision is to be the leading provider of integrated RealTime IT solutions in selected industrial sectors (Energy, Traffic, Transport and Environment) in North America, Latin America, Europe and China, enabling our customers to more efficiently manage their operations and bu
Slide 7: Mission Critical Solutions
Mission Critical Solutions Telvent’s 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 p
Slide 8: Revenue Breakdown by Segment and Geography
Revenue Breakdown by Segment Environmt Energy 9,4% Other 40,8% 8,1% Transport 6,9% Traffic 34,8% and Geography China RoW 3,1% 5,9% Europe North 58,0% America 14,0% Latam 19,0% Note: Figures as per September 30, 2004 8
Slide 9: Diversified Blue Chip Customer Base
Diversified Blue Chip Customer Base Energy: Energy: Oil Oil && Gas Gas Energy: Energy: Electricity Electricity Traffic Traffic Rio Light PetroChina Transport Transport Environment Environment New York City Transit Long Long and and Stable Stable Relationships Relationships 9
Slide 10: Our Three Axis Growth Strategy
Our Three Axis Growth Strategy Consolidate leadership in core geographies and sectors 1 • Organic growth in Europe and Latin America • Strengthen presence and develop sectors in North America • Capture growth in China • Acquisition opportunities Capture the “vertical” Complete a distinctive, RealTim
Slide 11: 2. Highlights
TELVENT 2. Highlights
Slide 12: Successful FY 2004 and Good Outlook for 2005
Successful FY 2004 and Good Outlook for 2005 • Successful completion of Telvent IPO • Strong Q3 Financials, leading to a good as expected FY2004 • Successful acquisition plan completion: ICX, Xwave and Miner & Miner • Good outlook in our business going forward: 9 Revenue visibility 9 Increase of our
Slide 13: 3. Telvent IPO
TELVENT 3. Telvent IPO
Slide 14: Successful IPO
Successful IPO Telvent is a NASDAQ listed Company (“TLVT”) since October 21 2004 The Telvent IPO was a successful transaction despite a choppy IPO market and significant valuation sensitivity among almost all institutional accounts around the $9.00 level Telvent was able to generate quality in
Slide 15: Telvent Price Chart vs. NASDAQ Composite
Telvent Price Chart vs. NASDAQ Composite Abengoa Free Float 62,2% 32,0% Mangmt 5,8% IPO Pricing Price vs. Filed Offer to Issuer Offer Price File to Offer Filing Range Date Range Current Telvent GIT October 21 $9 US Below (33.3)% >15% 12.5 – 14.5 15
Slide 16: 4. Financial Overview
TELVENT 4. Financial Overview 16
Slide 17: Financial Highlights (Q3 2004 Report)
Financial Highlights (Q3 2004 Report) ℜ Revenues in the third quarter increased 24.8% to €72.7 Million Year- Over-Year ℜ Gross Margin grew to 22.4% ℜ Net Income in the quarter increased 54.8% to €2.7 Million Year-Over- Year ℜ Net Cash position of €45 million ℜ Bookings in the quarter were €122.6 Mil
Slide 18: Financial Growth Summary
Financial Growth Summary Revenues Gross Profit 22.4% 20% 26.6% 21.7% 199.2 22.4% 44.7 % 24.8 166.0 21.7% 36.0 72.7 16.3 58.3 12.7 Q3 2003 Q3 2004 Nine Nine Q3 2003 Q3 2004 Nine Nine Months Months Months Months 2003 2004 2003 2004 Operating Income Net Income 5.4% 8.4% 18 7.0% % 6.3% 3.2% 10.7 54.8 6.
Slide 19: Profit and Loss Account (9 Months)
Profit and Loss Account (9 Months) (€ Million) YoY Nine Months Ended September, 30 Growth 2004 % 2003 % % Revenues 199.2 100.0% 166.0 100.0% 20.0% COGS 154.6 77.6% 130.0 78.3% 18.9% Gross Profit 44.7 22.4% 36.0 21.7% 24.0% Operating Expenses 33.9 17.0% 30.8 18.5% 10.3% Income from Operations 10.7 5.
Slide 20: Reconciliation between GAAP and Pro Forma Income
Reconciliation between GAAP and Pro Forma Income Nine Months Ended YoY September, 30 Growth 2004 2003 % GAAP Income before Income taxes 8.0 3.1 160.8% Adjustments to Net Income (Loss): Amortization of intangibles 1.7 1.7 Stock Compensation Plan expenses 1.1 0.4 Mark to Market Derivatives 1.0 1.4 Tot
Slide 21: Strong Balance Sheet Position
Strong Balance Sheet Position 2003 Sep-04 Post IPO Cash €27.7 €17.6 €77.2 Total Debt 56.2 31.9 31.9 Net Cash / (Net Debt) (28.5) (14.3) 45.3 Shareholder´s Equity 60.3 69.3 128.9 Positive Positive Net Net Cash Cash Position Position Post-IPO Post-IPO 21
Slide 22: FY2004 Guidance and Long-term Model
9 months ended FY2004 Long-term Model Sept. 30, 2004 Guidance (3-5 years) 10% - 12% 11% - 13% Revenues 20% (organic) (organic) % Gross Margin (o/R) 22.4% 21% - 23% 25% Income from % (o/R) 5.4% 5% - 6% 8% - 9% Operations Net Income €M 6.4 9 - 10 25% (CAGR) Pro forma EPS € 0.49 0.49 – 0.54 25% (CAGR)
Slide 23: 5. Acquisitions
TELVENT 5. Acquisitions 23
Slide 24: Telvent has closed three acquisitions during 2004
Telvent has closed three acquisitions during 2004 ℜ ICX (closed in May, 2004) Based in Spain, Seville. 30 people..Owned by Local Government (50%) and Fujitsu (50%). Dedicated to Health Care Information Technology. This area may become the fifth vertical of Telvent, in addition to Energy, Environ
Slide 25: Acquisition Criteria Proof
Acquisition Criteria Proof ICX Xwave Miner & Miner * Previous Knowledge/Collaboration Strategic (“Three Axis Model”) Synergies No Overlapping Profitability ROIC > 15% Accretive/Dilutive Accretive Accretive Accretive Price(€M) / Valuation(PER) 1.7 / 8.5 2.8 / 5.6 8.0 / 16.4 * Telvent has acquired 70%
Slide 26: Rationale behind the acquisition
Rationale behind the acquisition ℜ Up The Hour Glass 9 Spatial information is a critical component of the seamless real time data integration for our customers 9 Outage Management is essential to improve reliability of utilities. 9 Work Flow Management is more and more demanded ℜ Market Leader 9 ESR
Slide 27: 6. Business Outlook
TELVENT 6. Business Outlook 27
Slide 28: Good Business Outlook
Good Business Outlook, based on: ℜ Revenue Visibility and stability: Backlog, Bookings, and Pipeline ℜ Business and Operations Growth in our North American Region ℜ Strong backlog in China due to a superb bookings figure in 2004 ℜ Successful R&D developments 28
Slide 29: Revenue Visibility and Stability
Revenue Visibility and Stability 17.2% 23.9% €346,5 €266,0 €295,7 Backlog (€ Million) €214,7 Dec. 2002 Dec. 2003 Q3 - 2003 Q3 - 2004 77.6% 369.1 207.8 268,1 Bookings (€ Million) 101 FY03 FY04 (E) Strong visibility going forward, based on Backlog, Bookings, and Pipeline 29
Slide 30: Major Contracts Signed in the last months
Major Contracts Signed in the last months Energy • Telecontrol project for 20 transmission substations in the high voltage ring of the Brazilian power transmission operator, ONS, worth € 4.5 million • Control and Integral Management Systems (SIMCOT), of 11 Pemex Tank Farms throughout the whole Mexic
Slide 31: Business and Operations Growth in our North American Region
Business and Operations Growth in our North American Region China RoW North 4,4% 4,6% Europe 100% America 53,6% 12,0% 90% 80% 70% China Latam 60% 2003 Latin America 25,4% 50% 40% North America 30% Europe China 2004 20% RoW North 3,1% 5,9% Europe 10% America 14,0% 58,0% 0% December December 2003 2004
Slide 32: 7. Summary
TELVENT The Global RealTime IT Company 7. Summary 32
Slide 33: Our Three Axis Growth Strategy
Our Three Axis Growth Strategy 1 Consolidate leadership in core geographies and sectors • Electricity in NA • Organic growth in Europe and Latin America • US Traffic Strategy 1 • Strengthen presence and develop sectors in North America • Superb backlog in China • Capture growth in China • Acquisitio
Slide 34: Summary
Summary Successful IPO and subsequent partial exercise of the overallotment option Expect to maintain the Guidance for FY 2004. Good business outlook for FY2005 Growth momentum based on excellent bookings and backlog Successful acquisition of Miner & Miner Continued growth in our North Ame