Abengoa Sa · OTC:AGOAF
Abengoa Sa — Investor Day (October 2008)
24 slides from Abengoa Sa's investor day presentation, Oct 23, 2008
Slide 1: IV Annual Analyst and Investor Day
ABENGOA IV Abengoa Investor Day ABENGOA IV Annual Analyst and Investor Day October 22nd – 23rd, 2008 ABENGOA Going Forward 1
Slide 2: We are in a privileged position in times of uncertainty
ABENGOA IV Abengoa Investor Day We are in a privileged position in times of uncertainty: - Well positioned in attractive markets that will outperform the economy - Diverse from business and geographic perspective - Ability to continue growing without new capital We are in a good financing situation:
Slide 3: Well positioned to withstand a tougher economic context
ABENGOA Well positioned to withstand a tougher economic context IV Abengoa Investor Day Diminishing growth rates across the world, with some European countries already in recession. Consumption is decreasing Strong decline in residential construction Companies cost-cutting and relocating H
Slide 4: Sunny Days Ahead for Abengoa (I)
ABENGOA Sunny Days Ahead for Abengoa (I) IV Abengoa Investor Day Solar power is experiencing increasing government support worldwide as its development is a must towards a viable alternative source to fossil fuels Geographic diversification to deal with changes in government support ITC extens
Slide 5: Sunny Days Ahead for Abengoa (II)
ABENGOA Sunny Days Ahead for Abengoa (II) IV Abengoa Investor Day Very well positioned worldwide in the desalination market Long term zinc hedging against possible lower zinc prices in a lower industrial activity scenario, plus availability to treat more residues at slightly higher logistic cost
Slide 6: ...but sunny days ahead for Abengoa (III)
ABENGOA …but sunny days ahead for Abengoa (III) IV Abengoa Investor Day 1H’08 growth should be sustainable… Key Metrics (M€) 1H’08** 1H’07 Incr. (%) Sales 1,632.0 1,393.7 17,1% Gross Operating Cash Flows (*) 312,6 170,2 83,6% % Gross CF’s / Sales 19,2% 12,2% Ebitda*** 238.0 170.2 39,8% % Ebitda / Sa
Slide 7: Leader in every Business
ABENGOA Leader in every Business IV Abengoa Investor Day Sales by Division (in M€) Operating Cash Flow (in M€) CAGR CAGR ’04-’07 ’04-’07 3.500 3.215 24% 31% 500 0.6% - 452 - 450 2% 3.000 2.677 19% 31% 400 12% 12% 2.500 18% 350 18% 2.024 19% 22% 300 288 21% 2.000 18% 1.687 18% 15% 250 216 16% 2
Slide 8: Global Player
ABENGOA Global Player IV Abengoa Investor Day Well diversified geographically: presence in more than 70 countries International activity represents 62,1% of total sales, with a 33,1% YoY growth (2007 figures) Europe (ex Spain) 605M€ (19%) Asia US and Canada 97M€ (3%) 477M€ (15%) Total Spain 1.217M€
Slide 9: Sustained Two Digit Growth since IPO
ABENGOA Sustained Two Digit Growth since IPO IV Abengoa Investor Day 1996 Well positioned to target 20% EPS growth: 1996--2007 2007 2006 2006--2007 2007 Sales (M€) Operating Cash Flow (M€) 3.215 3.215 2.024 452 452 % % 288 17 21 GR: GR: CA CA 7% +5 0% 579 +2 54 1996 2007 2006 2007 1996 2007 2006 200
Slide 10: "Sunny Days Ahead" because...
ABENGOA “Sunny Days Ahead” because… IV Abengoa Investor Day We are in a privileged position in times of uncertainty: - Well positioned in attractive markets that will outperform the economy - Diverse from business and geographic perspective - Ability to continue growing without new capital We are in
Slide 11: Financial Summary
ABENGOA Financial Summary IV Abengoa Investor Day Financial highlights (in M€) 2004 2005 2006 2007 1H2008 CAGR% (04-07) Sales 1.746 2.024 2.677 3.214 1.632 22,6% Gross Operating Cash-flow* 180 216 288 452 313 35,9% Net Income 52 66 100 120 71 32,1% Total assets 2.491 3.323 5.427 8.110 8.316 48,2% In
Slide 12: Priorities 2008-2011
ABENGOA Priorities 2008-2011 IV Abengoa Investor Day Abengoa’s investment strategy is driven by funding, financial and strategic criteria: • Funding: Only projects with certain funding will be developed • Financial: Return targets across the business are revised regularly • Strategic: Biyearly updat
Slide 13: Abengoa Financing Strategy
ABENGOA Abengoa Financing Strategy IV Abengoa Investor Day • Current financing model has served to finance growth in an ordered manner. • Use of two sources of financing to ensure availability of sufficient funds to meet financial commitments: - Non-recourse debt (PF): used to finance significant in
Slide 14: Cash and Debt split per Division
ABENGOA Cash and Debt split per Division IV Abengoa Investor Day Cash and debt distribution per division (1H08) Env. Inf. Eng. (M€) Solar Bio Serv. Techn. Constr. Total Gross corporate debt* 231 1.103 484 208 485 2.511 Gross non-recourse debt (PF) 309 152 406 16 835 1.718 Cash and equivalents** 100
Slide 15: Long Term Corporate Debt
ABENGOA Long Term Corporate Debt IV Abengoa Investor Day Abengoa SA credit facilities: 3 X 600 M€ syndicated facilities due in 2011 and 2012 150 M€ bilateral loan with ICO (Spanish Agency, guaranteed by the Kingdom of Spain) due in 2013-2017 (straight amortization) to finance foreign investmen
Slide 16: Long Term Corporate Debt
ABENGOA Long Term Corporate Debt IV Abengoa Investor Day No refinancing needs in 2008 and 2009 2010: 266M€ due of credit facilities Expected Amortization Calendar 1.400 1.200 Synd. loans EIB loan ICO loan 1.000 Average life (years): 3 800 600 400 200 0 2008 2009 2010 2011 2012 2013-2017 16
Slide 17: Non-recourse Debt
ABENGOA Non-recourse Debt IV Abengoa Investor Day Abengoa finances the construction of major investments (‘integrated product’) under a non-recourse financing scheme (or project finance): - Project-finance allows to ring-fence investments; debt is repaid based solely on project cash-flows. - Abeng
Slide 18: Liquidity Management Position and ST Financial Policy
ABENGOA Liquidity Management Position and ST Financial Policy IV Abengoa Investor Day Abengoa maintains a strong liquidity position Cash and equivalents 1H07 2007 1H08 (M€) 1.241 2.294 1.775 Efficient working capital management policy that allows self-financing and increases growth capacity. Act
Slide 19: Projects Timeline
ABENGOA Projects Timeline IV Abengoa Investor Day Projects Projects in in execution execution 2008 2009 2010 Q1 08 Q2 08 Q3 08 Q4 08 Q1 09 Q2 09 Q3 09 Q4 09 Q1 10 Q2 10 Q3 10 Q4 10 Solar PS 20 20 MW Start-up Q1 09 Solnova 1 50 MW Start-up Q4 09 Solnova 3 50 MW Start-up Q2 10 Algeria(51%) 150 MW Star
Slide 20: Projects Timeline
ABENGOA Projects Timeline IV Abengoa Investor Day Projects Projects in in execution execution Capex (All figures in M€) Solar 1.198 Project pipeline execution ensured (2008-2010): PS 20 20 MW Financed 78% of non-recourse financing signed Solnova 1 50 MW Financed remaining 22% (Tenés, Amazonas,
Slide 21: Risk Management
ABENGOA Risk Management IV Abengoa Investor Day Abengoa follows an established policy to mitigate market risks: Interest rates: - Corporate Debt: - Minimum 80% through caps and swaps (average guaranteed rates between 4.5% and 5.1% as per 1H08 ). - Project finance: - Hedged between 75% and 100% of
Slide 22: We are in a privileged position in times of uncertainty
ABENGOA IV Abengoa Investor Day We are in a privileged position in times of uncertainty: - Well positioned in attractive markets that will outperform the economy - Diverse from business and geographic perspective - Ability to continue growing without new capital We are in a good financing situation:
Slide 23: Internal Control
ABENGOA Internal Control IV Abengoa Investor Day SOX compliant : - Compliance according to PCAOB received by auditors, in order to ensure all pertinent financial information is reliable and known to the management. - First European entity to undertake SOX Audit voluntarily following our commitment
Slide 24: Internal Control
ABENGOA Internal Control IV Abengoa Investor Day NOC related to Structured Finance covers, among others, the procedure to accomplish a project finance and sets minimal return measures to be met: -Business and Financial Committees involved since the beginning. Electronic approval system. -Project I