Abengoa SA · OTC:AGOAF
Abengoa SA — Debt Investor Presentation (October 2009)
32 slides from Abengoa SA's debt investor presentation, Oct 29, 2009
Slide 1: Credit Update
ABENGOA With the sun … we produce thermoelectric and photovoltaic electric energy Innovative Solutions for Sustainability Credit Update With biomass … we produce ecological biofuels and animal feed With waste … we produce new materials through recycling, and we treat and desalinate water With inform
Slide 2: Disclaimer
ABENGOA Disclaimer The information contained in this document has been provided by Abengoa, S.A. (“Abengoa”) . The information and any opinions or statements made in this document have not been verified by independent third parties, therefore, no representation or warranty, expressed or implied, is
Slide 3: Contents
ABENGOA Contents 1 Overview of Abengoa 2 Financial Performance 3 Key Credit Highlights 4 Exhibits 3
Slide 4: Background
ABENGOA Background Business description Strong Share Performance Abengoa is a leading global technology Exchanges: Madrid and Barcelona company in energy and environment, and a Ticker: ABG large operator of power transmission, water IPO date: 29/11/96 concessions, and renewable energy - solar and
Slide 5: Main Drivers
ABENGOA Main Drivers From global trends… … to concrete business opportunities Solar power global installed capacity will be growing at 13% per year from 2010 to 2050 reaching 3,700 Mw (Greenpeace, “EREC Energy Revolution”) Increased Energy Demand - Demand expected to increase between 40% Biofu
Slide 6: Unique Business Model and successfully proven strategy
Unique Business Model and ABENGOA successfully proven strategy 1 Unique Engineering 2 Asset owned operations capabilities …Allows to build - Solar CSP (1) - Power Transmission lines - Desalination Energy - Biofuels Environment …generates know-how …creates innovative solutions from the ground up 3
Slide 7: Engineering Capabilities
1 Engineering Capabilities ABENGOA For third For own EPC (1) of… parties assets Cumulated experience (in the past 5 years) CSP Solar plants 9 31 Mw built; 150 Mw under construction Renewable Energy ISCC(2) Solar plants 9 9 150 Mw under construction Biomass plants 9 9 1.35 bnl capacity bu
Slide 8: Asset-owned operations
2 Asset-owned operations ABENGOA Power Remarks Locations Assets Renewable Energy Solar First two commercial CSP towers Spain 41 Mw in operation Largest CSP plant in the world under US 150 Mw under construction development (280 Mw, Solana) Rest of World Hundreds in development First
Slide 9: Technology development
3 Technology development ABENGOA Technology development as growth generator in the field of sustainability in Energy and Environment 84 M€ invested in R&D in 2008, ca. 2.5% of sales World pioneer in CSP solar technologies >900 people in R&D+i World leader in development of 2nd generation >
Slide 10: Corporate Structure - Committed and Experienced Management Team
Corporate Structure - Committed and ABENGOA Experienced Management Team ABENGOA Felipe Benjumea, Chairman & Amando Sánchez, CFO CEO CFO since 2003 CEO since 1989 Joined in 1998 ABENGOA ABENGOA BEFESA ABEINSA TELVENT SOLAR (100%) BIOENERGY (97%) (97%) (100%) (52%) Santiago Seage, CEO Javier Sal
Slide 11: Business and geographical diversification
Business and geographical ABENGOA diversification Business distribution by fixed assets* (1H’09) Solar Abeinsa 14.8% 29.3% Bioenergy 8.4% 34.3% Telvent 13.2% Geographical distribution by revenues (1H’09) Befesa Asia Total Fixed assets: 5,788 M€ Africa 2.8% 8.6% Spain Latin 28.4% America 24.5% Europe
Slide 12: Contents
ABENGOA Contents 1 Overview of Abengoa 2 Financial Performance 3 Key Credit Highlights 4 Exhibits 12
Slide 13: Solid financials
ABENGOA Solid financials Sustained historical two-digits growth with increased margins, even in current environment Sales (M€) EBITDA (M€) Net Income (M€) 7% 1% :1 :2 % GR 2% GR 16 700 50.00% CA 17% :2 41% ** 45.00% CA 140 + 140 ** + GR + 3,769 3,769 600 CA 5% 1% 541 541 +2 40.00% 120 +3 3,214 3% 6%
Slide 14: Financial Performance: Income Statement
Financial Performance ABENGOA Income Statement Financial highlights CAGR% M€ 2004 2005 2006 2007 2008* H1 09 (04-08) Sales 1,746 2,024 2,677 3,214 3,769 1,814 21.2% EBITDA 180 216 288 384 541 315 31.6% EBIT 127 163 219 286 363 207 30.0% Net Interest 60 48 95 152 246 85 42.2% Net Income 52 66 100 120
Slide 15: Financial Performance: Key Balance sheet data
Financial Performance ABENGOA Key Balance sheet data M€ 2004 2005 2006 2007 2008* H109 Fixed assets 668 891 1,263 2,097 2,552 3,056 Fixed assets in non-recourse activities 491 682 1,146 1,638 2,292 2,741 Cash and short-term financial investments 563 815 1,510 2,294 2,089 1,520 Total assets 2,491 3,3
Slide 16: Favorable Outlook
ABENGOA Favorable Outlook + 11 % Positive sales performance in 1H2009 vs 1H2008 ~20.9 bn€ Order backlog in concession activities (average life of 24 years) ~5.5 bn€ Order backlog from contracting activities (19 months of sales) < 30% Revenue contribution of top 20 clients 16
Slide 17: Introduction to financing policy
Introduction to financing policy ABENGOA Excellent reputation in the International banking market: - More than 6 bn€ debt raised in the last 10 years - More than 50 stable relationships with Tier-1 international banks Recognized track-record as Project Sponsor - Non-recourse and Project Finance
Slide 18: Financial Model
ABENGOA Financial Model Equilibrium of non-recourse Project Financing and Corporate Debt keeps financial discipline Non-recourse financing (NR) on a project by project basis: used to fund significant investments. Capex commitments are subject to availability of long-term funding Corporate Debt (
Slide 19: Financial Model: Non-recourse Debt
Financial Model ABENGOA Non-recourse Debt Non-Recourse Debt Suited with cash-flow generation profile of projects and investments: - The Long-term concession / commercial agreements (15 to 30 years) of project finance is suitable to higher leverage of such projects - Repayment instalments follow pr
Slide 20: Financial Model: Long Term Corporate Debt
Financial Model ABENGOA Long Term Corporate Debt Long Term Corporate Debt Credit facilities: - 1,800 M€ in three 600 M€ syndicated facilities (average pricing of E+67.5bps) due in 2011 and 2012: Santander, BNP Paribas, Societe Generale, ING, Citigroup, La Caixa, Caja Madrid as some of the MLA’s. -
Slide 21: Financial Model: Long Term Corporate Debt
Financial Model ABENGOA Long Term Corporate Debt Long Term Corporate Debt Committed to maintain our corporate debt ratio ex. NR (“Net Leverage ex NR” or “Net Debt ex NR to EBITDA ex NR”) below 3x This is the only covenant of our corporate credit facilities, as agreed with our banks since 2002 M€
Slide 22: Financial Priorities
ABENGOA Financial Priorities Reinforce liquidity - Partial divestment of Telvent - Keep discipline in financing of new capex Finance capex plan with strong cash generation at corporate level and funding already in place Seek growth with less capital - Partnerships with industrial (Sonatrach an
Slide 23: Solid operating policy and tight audit controls
Solid operating policy and tight ABENGOA audit controls Adequate internal control systems in place to: - Monitor and evaluate business risk - Guarantee the accuracy of financial information Policy to hedge interest rates, FX and commodity price risks First European entity to undertake Sarbanes
Slide 24: Contents
ABENGOA Contents 1 Overview of Abengoa 2 Financial Performance 3 Key Credit Highlights 4 Exhibits 24
Slide 25: In summary: Key Credit Highlights
ABENGOA In summary Key Credit Highlights 9 Well balanced, diversified and resilient business 9 Activities supported by solid market trends 9 Unique business model that boosts organic growth 9 Experienced and committed management team 9 Strong financial performance 9 Healthy and predictable backlog 9
Slide 26: Contents
ABENGOA Contents 1 Overview of Abengoa 2 Financial Performance 3 Key Credit Highlights 4 Exhibits 26
Slide 27: Corporate (ex Non-Recourse) Activities: Description and Ebitda Breakdown
Corporate (“ex Non-Recourse”) Activities ABENGOA Brief Description and Ebitda Breakdown Ebitda at Corporate entities is growing rapidly based in solid drivers and large backlog Based on current backlog, we expect Corporate Ebitda to achieve 1,800 M€ in next three years (2H’09 – 1H’12) M€ 1H'09 v
Slide 28: Corporate (ex Non-Recourse) Activities: Detail of Backlog
Corporate (“ex Non-Recourse”) Activities ABENGOA Detail of Backlog Order Order book book covers covers 19 19 months months of of sales sales in in contracting contracting activities activities Portfolio % over Business Units Sep. 2009 Dec.08 Industrial Engineering & Construction (*) 4,083 + 30% 21 m
Slide 29: Corporate Debt
ABENGOA Corporate Debt Most of corporate debt is incurred by Abengoa SA: - represents 80% of total corporate debt - benefits from the upstream guarantee of main operating subsidiaries Corporate debt is backed by corporate assets of 3,056M€ and corporate EBITDA of 450 M€ LTM June 09 Additionall
Slide 30: Capex Program
ABENGOA Capex Program Committed Capex Program: 4,271 M€ - Non-recourse debt and partners: 3,128 M€ - Funds from Abengoa Corporate: 1,143 M€ 90% of non-recourse debt signed; the rest fully committed with BNDES/Banobras Capex from Abengoa Entry in Total Abengoa M€ Capacity (%) Country Operation Fi
Slide 31: Uses and Sources
ABENGOA Uses and Sources Funding of the capex program to be contributed from Abengoa Corporate is covered by existing cash and corporate Ebitda generation: M€ Capex horizon 2H09-1H2012 : 4,271 Financed by : - External non-recourse debt and partners : 3,128 - Abengoa at corporate level 1,143 Us
Slide 32: Non-Recourse Projects: Nature of Revenues of Main Project Types
Non-Recourse Projects ABENGOA Nature of Revenues of Main Project Types Average remaining life of current Total life projects Characteristics Fixed price linked to inflation which is paid based on availability (no demand risk). Transmission The “off-taker” of the concessions is formed by a pool o