Abengoa Sa · OTC:AGOAF
Abengoa Sa — Telvent — FY2004 Earnings Presentation
36 slides from Abengoa Sa's earnings presentation, Mar 31, 2005
Slide 1: FY 2004 Earnings Report and 2005 Guidance
TELVENT FY 2004 Earnings Report and 2005 Guidance March 31, 2005 1
Slide 2: Forward-Looking Statement
Forward-Looking Statement This presentation This presentation contains contains forward-looking forward-looking statements statements and and information information relating to relating to Telvent, Telvent, that that are are based based on on the the beliefs beliefs of of its its management managem
Slide 3: Agenda
Agenda 1. 2004 Business Highlights 2. Financial Overview 3. Segment Discussion 4. 2005 Guidance 5. Summary 3
Slide 4: 1. 2004 Business Highlights
1. 2004 Business Highlights 4
Slide 5: Successful 2004
Successful 2004….. • Strong Q4 and full fiscal year 2004 financials: " 21.3% increase in revenues, year over year " 97.4% increase in pro forma net income, year over year " Net Cash position of €64.5 million • Successful completion of Telvent IPO • Annual recurring revenues of more than 80% in every
Slide 6: … and Good Outlook for 2005
… and Good Outlook for 2005 • Revenue visibility: Backlog and bookings at the end of 2004 showing 19.2% and 45.7% increases, respectively, from 2003 figures • Enhanced business prospects in North America: leveraging newly acquired customers (through our Miner & Miner acquisition), and our business e
Slide 7: Revenues, Gross Profit, Operating Income, Net Income
€ in Millions Revenues Gross Profit % 21.4% 21.3 21.6% 312.6 67.0 21.3% % 19.7% 23.6 257.7 55.6 113.4 19.6 22.3 91.7 Q4 2003 Q4 2004 FY 2003 FY 2004 Q4 2003 Q4 2004 FY 2003 FY 2004 Operating Income Net Income 5.3% .7% 124 3.4% 16.5 % 4.0% 5.1% 64.0 10.1 8.9 4.5 3.6 5.7 2.3 3.8 Q4 2003 Q4 2004 FY 200
Slide 8: Telvent has closed three acquisitions during 2004
Telvent has closed three acquisitions during 2004 " ICX (May 2004) " Based in Spain, Seville. 30 people. " Dedicated to Health Care Information Technology. This area may become the fifth core sector of Telvent, in addition to Energy, Environment, Traffic and Transport. ICX has a very strong software
Slide 9: Business and Operations Growth in our North American Region
Business and Operations Growth in our North American Region 100% 90% North 2003 80% America 11.3% 70% China 60% Latin America 50% North America 40% North Europe America 30% 14.1% 2004 20% 10% 0% Revenue Breakdown by Geography December 2003 December 2004 Staff by Geography With more than 600 professi
Slide 10: Implementing our Three-Axis Growth Strategy
Implementing our Three-Axis Growth Strategy 1 Consolidate leadership in core geographies and sectors • Electricity growth in NA • Organic growth in Europe and Latin America • RWIS Alberta contract 1 awarding • Strengthen presence and develop sectors in North America • Strong backlog in China • Captu
Slide 11: 2. Financial Overview
TELVENT 2. Financial Overview
Slide 12: Financial Highlights
Financial Highlights • Telvent applied FIN46-R to all joint ventures (temporary consortiums) created after January 1st, 2004. As such, all joint ventures in which the Company is the primary beneficiary are consolidated. The consolidation of these entities affects certain assets, liabilities and the
Slide 13: Financial Highlights (2)
Financial Highlights (2) • Full year pro forma net income increased by 97.4% to €13.8 million. Q4 2004 pro forma net income was €4.3 million, an increase of 69.7% year-over-year • Full year pro forma EPS was €0.63 (21,775,752 shares), versus €0.35 (20,000,000 shares), for fiscal year 2003 • Operatin
Slide 14: Business (Revenues) Growth
Business (Revenues) Growth € in Millions 21.3% 11.8% JV’s Double Digit Growth FX (€30.8) (€6.4 ) 257.7 288.2 281.8 312.6 FY 2003 FY 2004 14
Slide 15: Profit and Loss Account (FY2004)
€ in Millions Profit and Loss Account (FY2004) % Change 2004 % O/R 2003 % O/R 2004 * % O/R Year-Over-Year Revenues 312.6 100% 257.7 100% 21.3% 281.8 100% COGS 245.6 78.6% 202.1 78.4% - 214.9 76.3% Gross Profit 67.0 21.4% 55.6 21.6% 20.5% 66.9 23.7% Operating Expenses 50.5 16.2% 46.7 18.1% - 50.5 17.
Slide 16: Pro Forma vs. GAAP
Pro Forma vs. GAAP FY 2004 FY 2003 GAAP Net Income € 10.1 M € 4.5 M GAAP EPS € 0.47 € 0.23 Pro forma € 13.8 M € 7.0 M Net Income Pro forma EPS € 0.63 € 0.35 Shares Outstanding 21,775,752 20,000,000 Pro forma net income excludes the amortization of intangible assets from the NMS Division of Metso and
Slide 17: Reconciliation between GAAP and pro forma net income and EPS
Reconciliation between GAAP and pro forma net income and EPS € in Millions FY04 GAAP Net Income - as reported € 10.1 • Amortization of Intangibles € 2.3 • Stock Compensation Plan Expenses € 2.3 • Mark to Market Derivatives € (0.2) • Income tax provision € (0.7) Net Income - Pro Forma € 13.8 EPS - Pr
Slide 18: Net Cash / Cash Flow
Net Cash / Cash Flow € in Millions As of Dec.31, As of Dec.31, 2004 2003 Cash and cash equivalents 88.5 27.7 Due from/to related parties, net 20.8 (6.7) Short-Term Debt (28.0) (33.0) Long-Term Debt (16.9) (25.8) Net cash / Net debt 64.5 (37.8) Cash Cash generated generated during during the the year
Slide 19: Revenue Visibility and Stability
Revenue Visibility and Stability € in Millions 19.2% Backlog 266.0 317.0 Dec. 31, 2003 Dec. 31, 2004 45.7% 392.0 269.0 268.1 Q1-Q3 Q1-Q3 204.2 Bookings 123.9 Q4 Q4 64.8 FY 2003 FY 2004 Strong visibility going forward, based on Backlog, Bookings, and Pipeline 19 Note: Figures are in Spanish GAAP
Slide 20: Backlog Guidance: Revenue Visibility and Stability
Backlog Guidance € in Millions As of December 31, 2003 As of December 31, 2004 100% 100% 80% 80% € 181.4 € 207.4 60% 60% € 266.0 68.2% € 317.0 65.4% 40% 40% €48.8 € 58.0 € 51.6 20% € 35.9 20% 18.4% 13.5% 18.3% 16.3% 0% 0% Dec. 2003 2004 2005 2006+ Dec. 2004 2005 2006 2007+ Revenue Visibility and Sta
Slide 21: 3. Segment Discussion
TELVENT 3. Segment Discussion 21
Slide 22: Business breakdown by Sector and Geography presentation basis
Management includes a presentation of the breakdown of our business by Sector and Geography that excludes the effect of including our joint venture partners´portion of revenues and cost of revenues in our consolidated results. Management´s view is that this presentation gives the investor the best p
Slide 23: Business breakdown by Sector excluding joint venture partners
Business breakdown by Sector showing the effect of excluding our joint venture partners´portion of revenues and cost of revenues Growth FY 2004 FY 2004 * FY 2003 (2004* over 2003) Revenues 123.5 122.0 113.5 7.5% Energy COGS 97.2 95.7 89.4 7.0% Gross Margin 21.3% 21.6% 21.2% Revenues 114.5 86.6 78.8
Slide 24: Breakdown of Revenues by Sector and Margin Contribution
Breakdown of Revenues by Sector…. Enviromt. 7.4% Energy Other 44.0% 8.6% 2003 ...and Margin Contribution Transport 9.4% Traffic 30.6% Enviromt. Energy 10.3% 39.2% Other 14.8% Enviromt. 2004 9.9% Energy Other 43.3% 2004 9.3% Transport Traffic 6.2% 29.5% Transport Traffic 6.8% 30.7% Energy and Traffic
Slide 25: Breakdown of Revenues by Geography and Margin Contribution
Breakdown of Revenues by Geography RoW 10.7% China Europe 4.5% 53.8% 2003 ...and Margin Contribution North America 11.3% Latam 19.7% RoW China Europe 3.0% 3.7% 58.1% North RoW America 2004 China Europe 5.9% 18.4% 4.6% 53.9% North America 14.1% 2004 Latam 16.8% Latam 21.5% Continuous Growth in the No
Slide 26: Energy
Energy € in Millions 21.6% 1.5% 21.2% 10.8% Europe 24.8% 2.4% 144.6 146.8 122.0 North America Latin America 113.5 China 34.3% RoW 27.7% 73.0 81.2 113.5 FY 2003 123.5 FY 2004 Dec. 2003 Dec. 2004 Revenues and Gross Margins Geographical Breakdown Backlog " In our North American region, despite high oil
Slide 27: Traffic
Traffic € in Millions (1.2)% 22.8% 6.0% 1.0% 21.2% 9.1% Europe 0,0% North America Latin America 73.4 72.5 86.6 China 78.8 RoW 83.9% 73.0 81.2 FY73.0 2003 FY81.2 2004 Dec. 2003 Dec. 2004 Revenues and Gross Margins Geographical Breakdown Backlog " Good general business performance and a high percentag
Slide 28: Transport
€ in Millions Transport 18.5% 21.6% 16.1% 0.0% Europe 2.2% 1.533% North America Latin America 0,0% 34.3 24.4 19.2 China RoW 2.1 81.7% 81.2 FY73.0 2003 FY81.2 2004 Dec. 2003 73.0 Dec. 2004 Revenues and Gross Margins Geographical Breakdown Backlog " Revenues decreased in 2004 because of the overall ec
Slide 29: Environment
Environment € in Millions 24.6% 6.8% 0.0% 13.6% Europe 19.5% 27.9 North America 29.9% 43.5% Latin America 19.0 17.6 China 15.5 RoW FY73.0 2003 FY81.2 2004 19.8% Dec. 2003 Dec. 2004 73.0 81.2 Revenues and Gross Margins Geographical Breakdown Backlog " The increase in revenues in this sector in 2004 r
Slide 30: Other
€ in Millions Other 37.9% 29.8% 0.0% 0.0% 0.0% 0.0% Europe 50.3% 26.1 North America Latin America 22.1 China 45.7 RoW 30.4 FY73.0 2003 FY81.2 2004 100.0% Dec. 2003 Dec. 2004 Revenues and Gross Margins Geographical Breakdown Backlog " We enjoyed steady growth in our Other sector due to further market
Slide 31: Segment % Over Total Revenues
Segment Revenue Backlog @ Rev. Breakdown Rev. Breakdown Revenue % Over Total Breakdown by Dec. 31, Government/Corporate by Geography Recurrence Revenues Offer 2004 100% Managed New 10.8% Services Customer 15% Europe 24.8% 2.4% Energy 75% North America Maintenan 146,8 50% Corporate Latin America ce G
Slide 32: 4. Guidance
TELVENT The Global RealTime IT Company ‘ 4. Guidance ~ 32
Slide 33: FY2005 Guidance
FY2005 Guidance FY 2005 Guidance Revenues 10% - 12% Gross Margin % (o/R) 22% - 24% Income from Operations % (o/R) 6% - 7% Pro Forma Net € Millions 15.5 – 17.0 Income Pro Forma EPS € 0.53 - 0.58 Shares 29,247,100 Outstanding Note: These financial projections update and replace our previous guidance 3
Slide 34: 5. Summary
TELVENT The Global RealTime IT Company ‘ 5. Summary ~ 34
Slide 35: Summary
Summary " Successful IPO and subsequent partial exercise of the overallotment option " Growth momentum based on excellent bookings and backlog " Continued efforts in costs and expense savings, driving the operating margins improvement " Successful acquisition and integration of ICX, Xwave, Miner & M
Slide 36: FY 2004 Earnings Report and 2005 Guidance
TELVENT FY 2004 Earnings Report and 2005 Guidance March 31, 2005 36