Acciona Sa · BME:ANA
Acciona Sa — FY2011 Earnings Presentation
43 slides from Acciona Sa's earnings presentation, Feb 27, 2012
Slide 1: 2011 Results January-December
2011 RESULTS JANUARY - DECEMBER 27th February 2012
Slide 2: Disclaimer
Disclaimer This document has been prepared by ACCIONA, S.A. (“ACCIONA” or the “Company”) exclusively for use during the presentation of financial results of the full year 2011 (FY11). Therefore it cannot be disclosed or made public by any person or entity with an aim other than the one expressed abo
Slide 3: Table of contents
Table of contents 1. 2011 key highlights 2. Energy regulatory challenges 3. Core divisions’ financial information 4. Other businesses and group’s financial information 5. 2012 outlook and conclusions FY11 Results Presentation 3
Slide 4: 1. 2011 key highlights
1. 2011 key highlights
Slide 5: 2011 key highlights
2011 key highlights Resilient performance in a challenging environment Strong performance of core businesses Stable net debt and falling leverage ratios Successful asset rotation strategy with substantial capital gains Non-core activities underperformance Trasmediterránea restructuring already imple
Slide 6: 2011 key highlights
2011 key highlights EBITDA up +8% Net attributable profit up +21% Capex ~€1bn Î Focused on core businesses Net debt ~€7bn Î NFD/EBITDA: 5.3x – Adj.¹ NFD/EBITDA: 4.6x Capital gains from asset rotation €280m 1Adjusted multiple to exclude net debt not generating EBITDA from assets currently under const
Slide 7: Strategic focus
Strategic focus Focus on three core divisions: Energy, Infrastructures and Water Consolidation of global presence Strengthen financial structure Î Lower NFD/EBITDA ratio Strict investment criteria Î Capex prioritisation Potential selective non-organic growth Rotation of mature assets policy Stable d
Slide 8: 2. Energy regulatory challenges
2. Energy regulatory challenges
Slide 9: Regulatory uncertainty in Spain
Regulatory uncertainty in Spain Electricity system faces structural challenges Energy dependence Tariff deficit Legal security / regulatory stability and visibility Decarbonisation / compliance with international environmental targets End-user prices do not reflect the full costs of the system Spain
Slide 10: Unsustainable energy dependence
Unsustainable energy dependence Energy dependence evolution 1998-2009 (%) 79.4 Spain 61.6 Germany 53.9 EU-27 51.3 France Self-sufficiency energy by technology in Spain 2010 (%) 6.4% 47.3% 23.5% 12.2% 2.6% 8.5% % share of primary energy 2010 Source: Eurostat and CORES FY11 Results Presentation 10
Slide 11: Energy: The key contributor to trade balance deficit
Energy: The key contributor to trade balance deficit Impact of energy on the trade balance (€m) 75% Every $10 increase in the price of brent Æ +€6bn additional cost for the Spanish economy Renewables are a key driver to reducing energy dependence and improving the trade balance In 2010, renewable en
Slide 12: 2011 electric system costs
2011 electric system costs Non renew energies Others 6% 4% SPV 7% Renewable incentives Spot (ex SPV) 42% 8% Transport 5% Tarriff deficit disadjustment 5% Cap payments Distribution & adjust. 16% services €33,447m 7% Renewables (ex SPV) only represent 8% of the system costs Sources: CNE & REE FY11 Res
Slide 13: Renewables reduce pool prices
Renewables reduce pool prices November 2011 December 2011 January 2012 Pool prices Demand Wind (MWh) Wind share Day In 2010, (€/MWh) (MWh) (%) Savings (€m) renewable 13-Nov-11 15.5 574,000 256,000 45% 18.9 energies 20-Nov-11 47.4 586,000 121,000 21% Pool variation (€/MWh) 31.9 -67% represented 16-De
Slide 14: Major growth in other system costs
Major growth in other system costs Distribution & commercial Transmission (€m) Cogeneration (€m) management (€m) Δ 64% Æ €597m Δ 56% Æ €1,695m Δ 206% Æ +€964m Deficit tariff disadjustment Capacity payments (€m) (€m) Costs of other regulated activities have grown significantly contributing to 2005 th
Slide 15: Renewable energy incentives and Tariff deficit
Renewable energy incentives and Tariff deficit Renewable energy incentives and Tariff deficit (€m) Renewable energy incentives are not the key driver of tariff deficit generation FY11 Results Presentation 15
Slide 16: Renewables bear the brunt of cost savings since 2009
Renewables bear the brunt of cost savings since 2009 Renewables contribution to containing Measures in the electric sector the tariff deficit Impact 2009- Impact 2009- Measures affecting renewable energy Ordinary regime measures 2013 (€m) 2013 (€m) Generation c harge -338 Generation charge -115 RDL
Slide 17: Short and medium term actions required
Short and medium term actions required Renewables have already contributed the most to the efforts to curb the deficit The recent moratorium¹ is yet another sacrifice from the renewable sector There is a range of urgent actions that result in a fairer distribution of the effort ¹Royal Decree Law 1/2
Slide 18: 3. Core divisions' financial information
3. Core divisions’ financial information
Slide 19: Energy: Key figures
Energy: Key figures Key figures Key highlights Installation of 701MW during 2011: (Million Euro) Jan-Dec 10 Jan-Dec 11 Chg. Chg. (%) − Spain 97MW − Canada 41MW − México 306MW − Australia 32MW Revenues 1,497 1,650 153 10.2% − USA 132MW − Poland 38MW − India 56MW EBITDA 821 956 134 16.4% Productio
Slide 20: Energy: 2011 installed capacity
Energy: 2011 installed capacity +701MW 701MW Æ 800MW wind equivalent ¹Adjusted by reduction of 8MW of biomass and 68MW of cogeneration FY11 Results Presentation 20
Slide 21: Energy: Installed capacity and under construction
Energy: Installed capacity and under construction Installed MW @ Dec 2011 MW under construction @ Dec 2011 MW (Total) Spain Internat. Total MW (Total) Spain Internat. Total Wind 4,637 2,283 6,921 Wind 60 127 187 Conventional Hydro 680 - 680 Conventional Hydro - - - Hydro special regime 232 - 232 Hyd
Slide 22: ACCIONA: 2011 hedging and optimization
ACCIONA: 2011 hedging and optimization By volumes (total production) By revenues (generation revenues) 2011: 17,749GWh 2011: €1,522m >80% of the production volume hedged in 2011 In economic terms, only 12% of the revenues are exposed to spot prices volatility ¹Regulated frameworks includes MW under
Slide 23: Energy: Spanish pool price
Energy: Spanish pool price €MWh €54.3MWh (+0%) €56.2MWh (+8%) €51.4MWh (+7%) €49.07MWh (+8%) Quarterly forward 2011 Pool FY2011 : €50.3 Quarterly av. 2011 Pool FY2010: €36.7 1Q 2011 2Q 2011 3Q 2011 4Q 2011 1Q 2012 MW¹ 700 900 510 935 618 GWh 1,511 1,966 1,126 2,065 1,349 €/MWh 49.1 51.4 54.3 56.2 53
Slide 24: Infrastructures: Key figures
Infrastructures: Key figures Key figures Construction backlog (€m) Chg. vs. (%) (Million Euro) Jan-Dec 10 Jan-Dec 11 Chg. Chg. (%) (€m) 31-Dec-10 31-Dec-11 31-Dec-10 Civil works (Spain) 3,129 2,581 -18% Revenues 3,121 3,522 401 12.9% Civil works (Internat.) 2,176 2,106 -3% EBITDA 204 215 11 5.6% Tot
Slide 25: Infrastructures: Construction backlog
Infrastructures: Construction backlog Construction backlog Dec 2011 Construction backlog Dec 2011 By client type International Civil works 72% 41% (vs 38% in 2010) Non residential 19% Residential 3% Other¹ 6% Spain 59% €6,497m €6,497m International backlog Dec 2011 Spanish backlog Dec 2011 By geogra
Slide 26: Infrastructures: Concessions
Infrastructures: Concessions Road Rail Canal Port Univer. Hospital Total # of concessions 9 3 1 1 1 6 21 EBITDA FY2011 (€m) 23 0 2 0 6 19 53¹ 3 Average life (yrs) 31 31 30 30 20 30 30 3 Average consumed life (yrs) 5 7 5 6 4 5 5 Equity: €309 Invested capital (€m) 1,112 65 63 15 22 237 1,501² Net debt
Slide 27: Water & Environment Services: Key figures
Water & Environment Services: Key figures Divisional key figures Water business (Million Euro) Jan-Dec 10 Jan-Dec 11 Chg. Chg. (%) (Million Euro) Jan-Dec 10 Jan-Dec 11 Chg. Chg. (%) Revenues 732 697 -35 -4.8% Revenues 454 413 -42 -9.2% EBITDA 60 55 -5 -8.6% EBITDA 45 42 -3 -6.4% Margin (%) 8.2% 7.8%
Slide 28: Revenue breakdown
Revenue breakdown Water revenues breakdown International revenues breakdown By geography By geography Spain 53% International 47% €413m €194m Latam (46%) Australia (31%) Italy (11%) Algeria (3%) UK (3%) Portugal (2%) USA (1%) RoW (3%) FY11 Results Presentation 28
Slide 29: Water backlog breakdown
Water backlog breakdown Backlog breakdown (€m) Internat. backlog breakdown Dec 2011 By activity By geography 39% 36% 4,812 4,783 -0.6% O&M and services 87% 86% D&C International €1,706m 13% 14% 31-Dec-10 31-Dec-11 Water backlog remains flat at €4,783m in December 2011 vs €4,812m in December 2010 FY1
Slide 30: 4. Other businesses and group's financial information
4. Other businesses and group’s financial information
Slide 31: Infrastructures: Real Estate
Infrastructures: Real Estate Key figures LTM destocking (units) ~ 66% first residence (Million Euro) Jan-Dec 10 Jan-Dec 11 Chg. Chg. (%) ~ 20% international Revenues 204 104 -100 -48.9% EBITDA 23 12 -12 -49.7% Margin (%) 11.4% 11.2% Key highlights Promotion activity affected by challenging market
Slide 32: Real Estate: 2011 independent asset appraisal
Real Estate: 2011 independent asset appraisal GAV (€m) GAV 2011 breakdown 2010 2011 By geography By asset type Difference due to asset disposals in 2011 42% Residential homes 31% Offices 27% Other GAV 2011: €1,621m Note: Independent asset appraisal ¹2010 Proforma restated including the same portfoli
Slide 33: Services and Other Business: Key figures
Services and Other Business: Key figures Logistics & transport services TRASMEDITERRÁNEA affected by: − Ï Fuel cost per mile sailed +33% − Ð Occupancy rate: (Million Euro) Jan-Dec 10 Jan-Dec 11 Chg. Chg. (%) • Passenger: -6% • Vehicle: -6% Revenues 777 714 -63 -8.1% • Linear meter: -3% − Ð Average p
Slide 34: P&L: Key figures
P&L: Key figures Jan-Dec 10 Jan-Dec 11 Chg. Chg. €m €m €m (%) Revenues 6,263 6,646 383 6.1% EBITDA 1,211 1,312 101 8.3% D&A and provisions (683) (717) (34) 5.0% Results on impairment / reversal of assets (32) (253) (220) 680.8% Results on non current assets disposals or 37 287 249 nm held for sale a
Slide 35: Capex by division
Capex by division Capex breakdown Key highlights By division (€m) Capex Jan-Dec 10 Jan-Dec 11 Strict criteria applied to investment decisions Energy 641 802 Core areas capture most of 2011 Infrastructures 214 275 Capex: Real Estate -71 -182 − Energy: 701MW added in 2011 + 237MW under constructio
Slide 36: Asset rotation
Asset rotation Asset rotation 2011 (EV in €m) 33% 67% 15% of a CSP 50% of two Car parks Splau! shopping Total EV company concessions in (EQT and center (Unibail (Mitsubishi) Chile Horapark) Rodamco) (Atlantia) FY11 Results Presentation 36
Slide 37: Funding strategy
Funding strategy Highlights Financing strategy based on project finance: 32% − Non recourse − Maximises returns − Enhances growth capacity − Eliminates refinancing risk Successful €1.4bn refinancing in 2011 Financial deleverage compatible with growth FY11 Results Presentation 37
Slide 38: Debt breakdown by division and nature
Debt breakdown by division and nature Net debt breakdown Gross debt breakdown By division By nature (€m) Net Debt Net Debt 31-Dec-10 31-Dec-11 32% Recourse Energy 5,616 6,173 68% Infrastructures -243 -232 Non recourse Real Estate 732 651 Water & Environment 53 124 €8,954m Logistic & Transport S. 157
Slide 39: Debt amortization schedule
Debt amortization schedule Principal repayment schedule (€m)¹ No refinancing events Undrawn corporate credit lines amounted to €1,571m ¹Excludes bilateral credit policies, project bridge financing (mostly energy) and real estate development loans FY11 Results Presentation 39
Slide 40: 5. 2012 outlook and conclusions
5. 2012 outlook and conclusions
Slide 41: Outlook 2012: Trends
Outlook 2012: Trends Revenues Ï Ï Water Revenues Ï Ï EBITDA Ï Ï Water EBITDA Ï Ï Capacity addition: 300 – 350MW Water backlog Ï (55% international; 85% wind) Capex ~ €500m Prices hedging policy in line with 2011 Energy Water Revenues supported by international Trasmediterránea: g
Slide 42: Conclusions
Conclusions Strong set of results in a challenging environment: Revenues +6%, EBITDA +8%, net profit +21% Successful execution of asset rotation strategy at attractive valuations EV > €1bn, capital gains of €280m Continuing financial de-gearing and capex prioritization Potential selective non-organi
Slide 43: 2011 Results January-December
2011 RESULTS JANUARY - DECEMBER 27th February 2012