Acciona Sa · BME:ANA
Acciona Sa — Investor Presentation (June 2007)
32 slides from Acciona Sa's investor presentation, Jun 7, 2007
Slide 1: Pioneers in development and sustainability – Scottish Investors Day
Juan Muro-Lara MD Corporate Development Chairman Office Pioneers in development and sustainability Scottish Investors Day Edinburgh 7th June 2007
Slide 2: Disclaimer
Disclaimer This presentation contains information regarding (1) Acciona, S.A. (“Acciona”), Enel S.p.A. (“Enel”), Endesa, S.A. (“Endesa”) and their respective affiliates, (2) the proposed tender offer by Acciona and Enel for 100% of the shares of Endesa, including shares of Endesa represented by Amer
Slide 3: Disclaimer
Disclaimer The availability of the Tender Offer to Endesa shareholders who are not resident in and citizens of Spain or the United States may be affected by the laws of the relevant jurisdictions in which they are located or of which they are citizens. Such persons should inform themselves of, and o
Slide 4: Business Model
Business Model Infrastructure: Construction Concessions Real Estate: Urban & environmental Economic Growth Rental portfolio services Ecological Balance Development Social Progress Energy: Logistics & transport Wind services Other renewables 4 Pioneers in development and sustainability
Slide 5: Business Lines
Business Lines Infrastructure Construction Engineering Concessions Real Estate Rental Portfolio Development Logistic and Transport Services Acciona Trasmediterranea Airport services Other logistic services Urban and Environmental Services Water Facility Management Hospital services Funeral services
Slide 6: Key strengths
Key strengths • Leadership and entrepreneurial vision • Capacity to react and adapt to business environment • Long term view • Solvency and financial discipline • Capacity to innovate 6 Pioneers in development and sustainability
Slide 7: Key financial highlights
Key financial highlights (€m) 2005 2006 (%) Sales 4,853 6,272 29.3% EBITDA 743 960 29.2% EBIT 512 630 23.1% Net Profit 324 408* 25.9% Shareholders equity 3,431 4,633 35.0% Net Debt 1,108 9,128 n/a Gearing (%) 32% 197% n/a Capital Expenditure 1,292 7,942 n /a Operational Data 2005 2006 (%) Constructi
Slide 8: Renewable Energy
Renewable Energy • Strong opportunity to lead a new energy model era: World’s fossil fuel addiction growing dependence on Middle East increasing vulnerability to oil – supply disruption energy security risks climate change • Strong fundamentals to energy demand growth: 60% 2002 – 2030 ac
Slide 9: Renewable Energy
Renewable Energy • is clean, free and indigenous • provides energy security • is a scalable, modular business • is growing faster than any other energy source • with global growth potential still largely untapped • improved technology becoming increasingly competitive with conventional fossil fuels
Slide 10: Acciona Energía wind energy
Acciona Energía wind energy #1 developer and #4 worldwide O&M builder worldwide player of wind farms #8 wind turbine #3 owner of wind manufacturer assets in the worldwide world, #2 in Spain 10 Pioneers in development and sustainability
Slide 11: Horizontal Integration
Horizontal Integration Wind: 3,133 MWs operational Biomass: three plants (33 MW) - straw and wood waste Solar: 29 MW photovoltaic, 24 MW thermal, and 64 MW thermoelectric under construction Minihydro: 19 plants (59 MW) Biofuels: 70,000 tons biodiesel plant, and 26,000 bioethanol plant ACCIONA also h
Slide 12: Global Wind Forecast
Global Wind Forecast Forecast Year Increase CAGR IEA Reference Scenario 430 GW 2030 7x 8.6% IEA Alternative Scenario 538 GW 2030 9x 9.6% BTM Consultants 148.8 GW 2010 3x 20.2% GWEC 149.5 GW 2010 3x 26.1% GWEC Wind Force 12 1,254.1 GW 2020 21x 22.6% EWEA 160.9 GW 2010 3x 22.5% IEA: International Ener
Slide 13: Looking ahead in Renewable Energy
Looking ahead in Renewable Energy EU commission DIRECTIVE EU COUNCIL proposal: 20% of EU WHITE BOOK Europe (nov 1997) 2001/77/CE DECISION OF renewable (oct 2001) 25.04.2002 energy in 2020 (jan 2007) RD 1995/2000 Law 54/1997 of the RD 2818/1998 of Regulation of Spain RES Development Plan Electric Sec
Slide 14: Spanish Regulatory Framework Revision
Spanish Regulatory Framework Revision • Maintains fundamental regulatory principles • Keep the two remuneration options: Fixed tariff and market tariff • Increase the tariff for the fix option in wind energy • Establish a cap and a floor for the market option in wind energy • Update of remuneration
Slide 15: Wind Energy Operational Assets
Wind Energy Operational Assets • Establish a transition period • Two possibilities before January 1st 2009: ¾ Keep the RD436 remuneration system Fixed tariff option (no time limit) Market option (up to December 31st 2012) ¾ Move to the RD661 remuneration system Current Remuneration Market option
Slide 16: Wind Energy New Assets
Wind Energy New Assets • New installations after December 31st 2007 • Future level reviews will not be retroactive Market Option* Fixed Tariff* Pool Price + €30 MWh premiun €75 MWh (first 20 years) Market Option* Cap: €87 MWh After €62.73 Mwh Pool Price Premiun Remuneration Floor: €73 MWh 40 33 73 T
Slide 17: Other technologies
Other technologies • Solar Photovoltaic: ¾ Favours installations between 100 kW and 10 MW, associated to a tariff of 418 €/MWh ¾ Other installations remain as with RD 436 • Solar Thermoelectric: The market premium increases by 27%, this being the most favourable option • Wind Off-Shore: The premium
Slide 18: ACCIONA Wind Development Plan
ACCIONA Wind Development Plan CAGR 09E/06: +35.5% 7,801 International 2,821 Spain CAGR 06/03: +49.2% 1,847 2,421 3,133 712 1,219 1,202 258 944 2003 2004 2005 2006 2009E MWs by year end MWs installed in calendar year 18 Pioneers in development and sustainability
Slide 19: ACCIONA Biofuels
ACCIONA Biofuels EU TARGETS for Biofuels (EU Directive 2003/30/CE) • - 2005: 2% of total gasoline and diesel from Biofuels • - 2010: 5.75% of total gasoline and diesel from Biofuels • - 2015: currently considering to raise the target to 8% ACCIONA/Repsol Agrement • No. Plants: three plants with 200,
Slide 20: Solar Photovoltaic
Solar Photovoltaic • No. Plants: 369 (five owned) • Power: 29 MW installed (2.8 MW owned) • Market Share: leader with 30% of total installed power in Spain • Developing the biggest plant in the world in Portugal (42 MW in the first phase) • Building a photovoltaic panel manufacturing plant in Portug
Slide 21: ACCIONA Solar Thermoelectric
ACCIONA Solar Thermoelectric • No. Plants: 64 MW plant in construction in the US: “Nevada Solar One” • Pipeline: additional 100 MW plant projected by 2009 • Market Share: 18% of current worldwide installed capacity Growth Potential • Spain: 500 MWs of Solar Thermoelectric by 2010 • US: 7 states, so
Slide 22: Biomass
Biomass • No. Plants: 3 • Power: 33 MW • Production: 220 Gwh/year • Market Share in Spain: 11% • Pipeline: additional 60 MW by 2009 Premiun to kwh key for future development 22 Pioneers in development and sustainability
Slide 23: ACCIONA Wind Power
ACCIONA Wind Power • No. Plants: 3 • Product: AW 1500, in – house developed technology • Capacity Production: 1,100 units / year • First plant in the US will be operational this year (+250 units / year) • Strategic activity: • full wind value chain (75% of total cost) • reduces and diversifies suppl
Slide 24: Endesa: a transforming transaction
Endesa: a transforming transaction 24 Pioneers in development and sustainability
Slide 25: Strategic value of Endesa
Strategic value of Endesa • Favourable macroeconomic environment • Reduced Spanish electricity market regulatory uncertainties • Management redirection towards value creation • European market is undergoing a consolidation phase • Leader in the fastest growing markets: Spain & Latam • Defensive asse
Slide 26: Acciona´s contribution: Stronger business, greater value
Acciona´s contribution: Stronger business, greater value • Lead the global transition to a sustainable energy model • Creation of the global leader in renewable energies • Additional value creation from an aligned shareholding – management structure • Exploit the combination of strong and recurrent
Slide 27: Acciona´s contribution: Stronger business, greater value
Acciona´s contribution: Stronger business, greater value INTERNATIONAL EXPANSION • 1,000 MW additional in wind by 2010 due to joint optimization of existing Renewables projects and grid infrastructure, WTGs availability and power guaranty Conventional Business improvement by the combination of w
Slide 28: The Agreement
The Agreement • Acciona and Enel (the “Parties”), Endesa’s two largest shareholders, have reached an agreement relating to Endesa, valid for a period of 10 years, subject to extensions for five-year periods. The agreement provides: The joint management of Endesa under the leadership of Acciona The c
Slide 29: Creation of a World Leader in Renewable Energy
Creation of a World Leader in Renewable Energy • Combination of Endesa’s renewable energy assets and Acciona • Acciona will hold a majority stake and will manage the resulting entity • The resulting company will be a world leader in renewable energy Global Ranking in wind capacity (MW) Total Install
Slide 30: Acciona´s objectives
Acciona´s objectives Management 9 9 Endesa maintains influence in its Spanish Endesa identity Creation of a world leader in 9 9 Commitment to sustainable growth of the renewable leading Spanish energies utility With a superior financial impact: highly accretive transaction 30 Pioneers in development
Slide 31: ACCIONA – A unique investment case
ACCIONA Acciona has a unique combination of: • High free cash flow generation businesses • Niche services activities with recurrent cash flows • Strong growth profile • Capital intensive, high margin and attractive IRRs investment opportunities A UNIQUE INVESTMENT CASE 31 Pioneers in development and
Slide 32: Pioneers in development and sustainability – Scottish Investors Day
Juan Muro-Lara MD Corporate Development Chairman Office Pioneers in development and sustainability Scottish Investors Day Edinburgh 7th June 2007