Acciona Sa · BME:ANA
Acciona Sa — FY2010 Earnings Presentation
49 slides from Acciona Sa's earnings presentation, Feb 28, 2011
Slide 1: 2010 Results January - December
2010 RESULTS JANUARY - DECEMBER 28% February 2011
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 2010 (FY10). 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. 2010 Key highlights 2. Financial information by division 3. 2010 financing highlights 4. Conclusions FY10 Results Presentation 3
Slide 4: 1. 2010 Key highlights
1. 2010 Key highlights
Slide 5: 2010 Key highlights
2010 Key highlights Macro Macro // sovereign sovereign debt debt crisis crisis Renewables Renewables regulation regulation in in Spain Spain Infrastructures Infrastructures austerity austerity program program Spanish Spanish power power prices prices performance performance ACCIONA 9 EBITDA €1,211m
Slide 6: P&L main figures
P&L main figures Key figures EBITDA breakdown1 2010 By division 67% Energy (€m) 2009 2010 Chg. (%) 17% Infrastructures Revenues 6,515 6,263 -3.9% 2% Real Estate 5% Water and ES EBITDA 1,043 1,211 +16.1% Services and Other Net profit of 10% Business continued 149 167 +11.9% activities €1,211m +16% +1
Slide 7: Net capex by division
Net capex by division Net Capex breakdown Key highlights By division (€m) Capex Capex Selective criteria applied to FY09 FY10 investment decisions Energy 1,070 641 Core businesses capture most of the Group’s capex: Infrastructures 233 214 – Energy: 65% Real Estate 32 -71 – Infrastructures: 22% 9
Slide 8: 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-09 31-Dec-10 Energy 5,499 5,616 Infrastructures 140 -243 45% 55% Real Estate 1,087 732 Water & Environment -4 53 Logistic & Transport S. 239 157 Other Business 304 271 €8
Slide 9: ACCIONA strategy
ACCIONA strategy ACCIONA ACCIONA is is aa global global developer developer and and provider provider ofof renewable renewable energy, energy, transport, transport, social social and and water water infrastructure infrastructure …… - Wind - Mini / Large hydro - Solar 45% - Biomass Economic Growth En
Slide 10: ACCIONA strategy: core business growth paths
ACCIONA strategy CORE BUSINESS GROWTH PATHS VERTICAL INTEGRATION: FULL VALUE CHAIN ENERGY Project Engineering Wind Asset Full value chain & turbine O&M Ownership model Æ development rotation construction manufacture Replicable in strategic countries INF. Sponsor & Asset Financing Construction O&M Ow
Slide 11: Full value chain / Asset rotation: illustrative project IRR
Full value chain / Asset rotation: Illustrative project IRRp Full risk profile: Mature asset: develop. + construction low risk profile ACCIONA Investor/LT holder Asset rotation Project CF IRRp>10% IRRp: ~8-9% IRRp multiplier ~>1.25x 2010 2015 2020 2025 2030 2035 6-8 years Capex FY10 Results Presenta
Slide 12: Full value chain / Asset rotation: illustrative equity IRR
Full value chain / Asset rotation: Illustrative equity IRRe Full risk profile: Mature asset: develop. + construction low risk profile Equity CF ACCIONA Investor/LT holder Asset rotation IRRe>13% IRRp: ~8-9% IRRe multiplier ~>1.5x 2010 2015 2020 2025 2030 2035 6-8 years Capex FY10 Results Presentatio
Slide 13: Value chain model: Global reach
Value chain model: Global reach Strategic countries CANADA SPAIN POLAND USA INDIA ITALY COLOMBIA MEXICO BRAZIL CHILE AUSTRALIA Energy wind Solar Infrastructure Water FY10 Results Presentation 13
Slide 14: Asset rotation / Disposals
Asset rotation / Disposals Mature assets Asset rotation Reinvestment in greenfield projects to maximize returns Demand from institutions and long term holders Rotation processes on track Disposals Non-core assets At optimum timing for crystallization of value FY10 Results Presentation 14
Slide 15: 2. Financial information by division
2. Financial information by division
Slide 16: Energy
Energy Mini-Hydro Concentrated Solar ACCIONA Conventional Wind Biomass Solar Power Biofuels special regime Photovoltaic Windpower Hydro FY10 Results Presentation 16
Slide 17: Energy: Key figures
Energy: Key figures Revenues (€m) EBITDA (€m) Generation 50.4% 54.9% 1,497 Industrial, +20.0% develop. & other 1,248 13% EBITDA margin 821 +30.5% 20% 629 80% 87% 913 658 -29 -92 Jan-Dec 09 Jan-Dec 10 Jan-Dec 09 Jan-Dec 10 Strong performance of generation Æ +39% increase of attributable production:
Slide 18: Energy: EBITDA reconciliation
Energy: EBITDA reconciliation 2010 Energy EBITDA breakdown (€m) -€92m €913m +€2m +€8m €821m -€48m -€54m Generation Biofuels ACCIONA Development & Consolidation Total EBITDA Windpower construction adj and other FY10 Results Presentation 18
Slide 19: Energy: Installed capacity and under construction
Energy: Installed capacity and under construction Installed MW @ Dec 2010 MW under construction @ Dec 2010 MW (Total) Spain Internat. Total MW (Total) Spain Internat. Total Wind 4,591 1,679 6,270 Wind 35 604 639 Conventional Hydro 680 - 680 Conventional Hydro - - - Hydro special regime 232 - 232 Hyd
Slide 20: Energy: 2010 installed capacity
Energy: 2010 installed capacity +173MW 7,587¹ 7.610 32 40 1 100 7,437 7.437 31-Dec-09 CSP Spain International Conventional Hydro Endesa Biomass 31-Dec-10 Wind hydro 173MW Æ 420MW 173MW Æ 420MW wind wind equivalent equivalent Adjusted by the reduction of 24MW of cogeneration FY10 Results Presentation
Slide 21: Wind load factor
Wind load factor Load factor -0.1 pp 27.5% remained flat during 27.4% 2010: 31.7% 30.9% – 27.5% vs 27.4% Lower international 25.8% 26.1% load factor offset by increased domestic load factor Jan-Dec 09 Jan-Dec 10 International Spain FY10 Results Presentation 21
Slide 22: Energy: Production
Energy: Production Attributable production (GWh) (Attributable GWh) Jan-Dec 09 Jan-Dec 10 Chg. (%) Wind Spain 6,769 8,539 26% Other tech. Wind Spain Wind international 2,977 3,901 31% (24%) (52%) Total wind 9,746 12,441 28% Hydro special regime 442 847 92% Conventional Hydro 595 2,009 238% Biomass 1
Slide 23: Energy: Spanish pool price
Energy: Spanish pool price Strong Strong pool pool price price recovery recovery throughout throughout the the year year Active Active hedging hedging strategy strategy through through CESUR CESUR and and bilateral bilateral contracts contracts 50 +1% +8% +55% +16% 40 Pool (€/MWh) 30 Quarterly CESUR
Slide 24: Infrastructures
Infrastructures Construction Concessions Real Estate FY10 Results Presentation 24
Slide 25: Infrastructures: Key figures
Infrastructures: Key figures Revenues (€m) EBITDA (€m) 28% 36% Const. & Eng Concessions 3,618 5.9% 6.5% EBITDA margin 18% 2% -13.7% International % 26% 3,121 -5.1% 215 4% 204 82% 18% 74% 26% 98% 96% 82% 74% 86% Jan-Dec 09 Jan-Dec 10 Jan-Dec 09 Jan-Dec 10 Slowdown of domestic construction volumes d
Slide 26: Infrastructures: Construction backlog December 2010
Infrastructures: Construction backlog December 2010 Construction backlog (€m) Construction backlog Dec 2010 By client type Chg. Vs (%) (€m) 31-Dec-09 31-Dec-10 31-Dec-09 Civil works (Spain) 3,802 3,129 -18% Civil works (Internat.) 1,282 2,176 70% Total Civil Works 5,084 5,305 4% Residential (Spain)
Slide 27: Infrastructures: Construction backlog
Infrastructures: Construction backlog Construction backlog Dec 2009 Construction backlog Dec 2010 International International 26% 38% Spain 74% Spain 62% €7,021m €7,258m International backlog Dec 2010 Spanish backlog Dec 2010 By geography By client Europe (39%) Central Admin (48%) Canada (28%) Regio
Slide 28: Infrastructures: Concessions
Infrastructures: Concessions Road Rail Canal Port Univer. Hospital Total # of concessions 10 3 1 1 1 5 21 EBITDA 2010 (€m) 37 0 1 0 5 14 53¹ Average life² (yrs) 30 30 30 30 20 30 30 Average consumed life² (yrs) 5 6 4 5 3 4 5 Book value (€m) 1.077 47 46 15 27 197 1.467¹ Book Book value value as as of
Slide 29: Infrastructures: Concessions book value breakdown
Infrastructures: Concessions Book value breakdown By status 15% Under construction 35% Operational Operat. + under construction 50% €1,467m Book value breakdown By country 32% Spain 42% Chile Brazil Mexico 5% Canada 4% 17% €1,467m Note: Weighted average by book value (equity + net debt) excluding SP
Slide 30: Infrastructures: Real Estate
Infrastructures: Real Estate Revenues (€m) EBITDA (€m) Development 268 16.2% 11.4% Rental Assets 8% -23.9% Parkings 17% 204 EBITDA margin 11% 43 -46.3% 20% 12 23 75% 68% 12 29 21 2 Jan-Dec 09 Jan-Dec 10 -10 Jan-Dec 09 Jan-Dec 10 Destocking in the residential market Disposal of rental assets driv
Slide 31: Real Estate: Destocking
Real Estate: Destocking ∼70% first residence 1,743 -566 ~25% international 1,177 -188 (Units) 989 Dec-09 Destocking during Dec-10 Presales as of Dec Total 2010 2010 Destocking Destocking on on track track 32% 32% reduction reduction of of housing housing stock stock during during 2010 2010 FY10 Resu
Slide 32: Real Estate: Rental asset disposals
Real Estate: Rental asset disposals Disposal price Location Sq m Parking spaces (€m) Polígono Industrial Alcobendas 37,200 325 51.3 (Madrid’s business area) Julián Camarillo (Madrid’s business 17,546 279 45.5 area) Avenida de Europa 20 Alcobendas 3,485 153 18.4 (Madrid’s business area) Assets Assets
Slide 33: Real Estate: 2010 Independent asset appraisal
Real Estate: 2010 Independent asset appraisal GAV (€m) GAV 2010 breakdown 2009 2010 By geography By asset type Difference due to asset Development disposals in 2010 International 17% 12% Rental 2,168 39% 2,029 216 1,929 183 162 Spain Land 88% 44% 1,952 1,847 30% Offices 1,767 29% Residential homes 2
Slide 34: Water & Environment Services
Water & Environment Services Water and Environmental Services FY10 Results Presentation 34
Slide 35: Water & Environment Services: Key figures
Water & Environment Services: Key figures Revenues (€m) EBITDA (€m) Agua & ES 7.5% 8.2% Other EBITDA margin 729 +0.4% 732 +9.9% 60 54 30% 29% 17% 31% 70% 71% 69% 83% Jan-Dec 09 Jan-Dec 10 Jan-Dec 09 Jan-Dec 10 Strong performance of Water & ES: EBITDA up 33% driven by +48% of water business Margi
Slide 36: Water & Environment Services
Water & Environment Services Agua revenues breakdown International revenues breakdown By geography By geography Spain 51% Australia (60%) Algeria (10%) Latam (10%) International 49% UK (7%) Italy (7%) Portugal (2%) USA (1%) ROW (3%) €454m €222m Exceptional Exceptional results results for for water w
Slide 37: Water backlog
Water backlog Backlog breakdown (€m) Internat. backlog breakdown Dec 2010 By activity By geography 32% 39% Mexico (47%) 4,812 +10.4% Australia (17%) 4,358 Algeria (13%) Venezuela (5%) USA (2%) 79% 87% Italy (2%) O&M Egypt (1%) D&C RoW (13%) International 21% 13% €1,881m 31-Dec-09 31-Dec-10 Strengt
Slide 38: Services and Other Business
Services and Other Business Services Other Businesses Logistic & Transport Handling and other Asset Manager Media (GPD) Winery logistics FY10 Results Presentation 38
Slide 39: Logistic & Transport Services: Key figures
Logistic & Transport Services: Key figures Revenues (€m) EBITDA (€m) Trasmediterránea Handling 10.6% 9.5% Other 811 EBITDA margin -4.2% 777 86 15% -14.3% 4 16% 8% 74 17% 5% 18% 17% 17% 75% 78% 67% 67% Jan-Dec 09 Jan-Dec 10 Jan-Dec 09 Jan-Dec 10 Trasmediterránea affected by lower passenger volume d
Slide 40: Other Business: Key figures
Other Business: Key figures Revenues (€m) EBITDA (€m) Bestinver 29.8% 38.6% Winery Corp. and other +8.3% 119 EBITDA margin 110 1 5 11% 26% 1 46 34% +40.4% 8 33 34% 12 6 46 7 30 55% 29 40% 5 2 5 -2 -5 Jan-Dec 09 Jan-Dec 10 Jan-Dec 09 Jan-Dec 10 The asset fund manager Bestinver contributed €46m to E
Slide 41: Other Business: Bestinver
Other Business: Bestinver Evolution of assets under management (€m) +32% 5,357 4,806 4,396 4,273 4,044 31-Dec-09 31-Mar-10 30-Jun-10 30-Sep-10 31-Dec-10 FY10 Results Presentation 41
Slide 42: 3. 2010 Financing highlights
3. 2010 Financing highlights
Slide 43: Assets classified for sale
Assets classified for sale In In accordance accordance to to IFRS IFRS 5, 5, some some assets assets and and liabilities liabilities have have been been classified classified as as non-current non-current assets assets held held for for sale sale in in the the BS BS of of Dec Dec 2010 2010 Real Es
Slide 44: Net debt performance 2010
Net debt performance 2010 -9% €7,265m +€301m €7,566m €6,587m Division €m % -€979m Energy 5,616 85% Infrastruct. -243 -4% Real Estate 732 11% Log. & Transp. 157 2% Water & ES 53 1% Other 271 4% 31-Dec-09 NFD increase NFD before NFD of assets 31-Dec-10 during 2010 adjustments for sale & acc. method ch
Slide 45: Debt amortization schedule
Debt amortization schedule Debt amortization schedule (€m)¹ 1,958 93 33 26 2 year bridge loan of €1.5bn maturing in June 2011 1,806 477 474 473 3130 60 93 328 57 13 9 14 36 8 10 62 394 355 331 249 +12months +24months +36months +48months +60months 60 Energy Infrastructures Real Estate Other Serivces
Slide 46: Bridge loan refinancing status
Bridge loan refinancing status Starting point Process timing €1.5bn bridge loan maturing June 2011 Legal due diligence completed Raised to fund acquisition of 2,079MW Technical due diligence - wind and hydro (wind + hydro) free of debt for €2.9bn resource evaluation completed MLA group alr
Slide 47: 4. Conclusions
4. Conclusions
Slide 48: Conclusions
Conclusions Strong results in a challenging environment Reduction of NFD and leverage ratios: Asset rotation, selective investments and WC management Successful internationalization: International backlog ~40% Energy division growth driven by international markets Refinancing process of €1.5bn bridg
Slide 49: 2010 Results January - December
2010 RESULTS JANUARY - DECEMBER 28% February 2011