Abengoa Sa · OTC:AGOAF
Abengoa Sa — Q1 2013 Earnings Presentation
36 slides from Abengoa Sa's earnings presentation, Apr 30, 2013
Slide 1: First Quarter 2013 Earnings Presentation
Innovative Technology Solutions for Sustainability ABENGOA First Quarter 2013 Earnings Presentation April 30, 2013
Slide 2: Forward-looking Statement
Forward-looking Statement This presentation contains forward-looking statements and information relating to Abengoa that are based on the beliefs of its management as well as assumptions made and information currently available to Abengoa. Such statements reflect the current views of Abengoa with re
Slide 3: Introduction to Quarterly Results
Introduction to Quarterly Results Two Accounting Changes Affecting Financial Figures in the Presentation 1 Adoption of IFRS 10 & 11 effective January 1, 2013 Topic Guidance & Considerations Impact in Results De-consolidation of financial entities previously IFRS 10 • A new definition of “Control” co
Slide 4: Agenda
Agenda 1 Q1 2013 Business Highlights 2 Q1 2013 Financial Highlights 3 Conclusions & Outlook 4 Appendix 4
Slide 5: Agenda
Agenda 1 Q1 2013 Business Highlights 2 Q1 2013 Financial Highlights 3 Conclusions & Outlook 4 Appendix 5
Slide 6: Positive Start with a Solid First Quarter: Q1 2013 Key Figures
Q1 2013 Key Figures Positive Start with a Pipeline +13% 99,338 M€ Solid First Quarter Backlog -6% 6,262 M€ Revenues +19% 1,850 M€ EBITDA +20% 270 M€ Net Income +1% 90 M€ Corp. Leverage -0.3x 2.9x 6
Slide 7: Executive Summary: Starting the Year On Track
Executive Summary Starting the Year On Track to Meet 2013 Targets • Solid Performance of Core E&C Business • Signs of Recovery in Biofuels Market Worldwide Business • 3 New Plants in Operation Milestones • US business activity; major revenue contributor Achieved • Strategic Agreement with BrightSour
Slide 8: Successful Asset Rotation Strategy: Sale of Befesa
Successful Asset Rotation Strategy Agreement with Triton Partners for the sale of Befesa* • Enterprise Value of 1,075 B€ Valuation… • Equity Value: 625 M€ • Cash Payment: 352 M€ Total ABENGOA Proceeds of • Vendor Note: 48 M€ @mkt interest for 4 years 625 M€… • 225 M€ Convertible Bond at Triton exit
Slide 9: Geographic Diversification
Geographic Diversification Low Business Dependence on a Single Region Q1’13 Revenues 1,850 M€ Rest EU 12% 12% USA +20% 216 M€ 20% Spain 28% 19% 32% +66% 510 M€ -28% 361 M€ Asia & Oc 6% 4% Brazil +71% 113 M€ 12% 14% Africa -1% 220 M€ 11% 2% +628% 208 M€ Rest Latam 12% 16% -12% 223 M€ Q1 Q1 2013 2012
Slide 10: E&C: Strong Quarter in Revenues, EBITDA and Margins
E&C Strong quarter in Revenues, EBITDA and Margins; Stable Backlog and Increasing Pipeline Key Figures Operating Analysis Revenues EBITDA EBITDA Mg. 1,376 M€ +33% YoY 1,376 233 73.4% 1,037 132 186 64.4% Q1’13 Revenues 85 109 80 33% 25% 1,244 11.9% 928 106 148 11.4% 233 M€ +25% YoY Q1’13 EBITDA Q1'12
Slide 11: BrightSource Agreement
BrightSource Agreement Partnering to provide EPC and leading the O&M of the two biggest solar plants in the world (500MW) Incredible value unlocked upon securing Demostrating our value creation capital structure of the project: proposition Will Boost EPC backlog: +1.5 B$ 1 Technology as the engine f
Slide 12: Concession-type Infrastructures
Concession-type Infrastructures Positive quarter in Water and T&D; regulation changes impacting Solar, as anticipated Key Figures Operating Analysis Revenues EBITDA EBITDA Mg. 68 M€ -6% YoY 38 72 68 52.8% Q1’13 Revenues 29 42.6% 29 M€ -24% YoY Q1’13 EBITDA Q1'12 Q1'13 Q1'12 Q1'13 Q1 '12 Q1 '13 • T&D
Slide 13: Biofuels
Biofuels Signs of improvement in the market; expected to materialize thru H2 2013 Key Figures Operating Analysis Revenues EBITDA EBITDA Mg. 406 M€ -10% YoY 450 8 Q1’13 Revenues 406 2.0% 700% 0.2% 8 M€ +700% YoY 1 Q1’13 EBITDA Q1'12 Q1'13 Q1'12 Q1'13 Q1 '12 Q1 '13 • US Plants & Rotterdam re-opened in
Slide 14: Ethanol Business Outlook
Ethanol Business Outlook Improved Outlook in US, while Brazil putting measures to improve ethanol and sugar markets. Europe still uncertain Industry Outlook – + Expected improvements, Market slightly Pro-ethanol; stable but still uncertainty Recovering trends Expected improvement in new Improved cor
Slide 15: Technology Update
Technology Update Continued R&D plans as expected Cutting Edge Technologies Quarterly Update • Higher temperature and higher efficiency, aiming to reach grid parity Air & Molten Salt with other conventional generation technologies Solar Towers • Accumulated hours of pilot testing: 571 h for molten s
Slide 16: Agenda
Agenda 1 Q1 2013 Business Highlights 2 Q1 2013 Financial Highlights 3 Conclusions & Outlook 4 Appendix 16
Slide 17: Q1 2013 Key Financials
Q1 2013 Key Financials Double-digit revenue growth driven by a strong performance in core E&C +19% y-o-y Strong quarter in bookings driving a 20% EBITDA growth solid backlog and improved operating Margins Improved Corp. Net Debt & Leverage Growing +1% our Improved Pro-forma* Net income Leverage: 2.3
Slide 18: Quarterly Results - Reconciliation
Quarterly Results - Reconciliation Two Accounting Changes Affecting Financial Figures in the Presentation Q1 2012 Accounting Changes Q1 2012 YoY Q1 2013 Growth as reported IFRS 10&11 Befesa Sale Restated Revenues 1,764 M€ (55) M€ (150) M€ 1,559 M€ 1,850 M€ +19% P&L EBITDA 285 M€ (31) M€ (29) M€ 225
Slide 19: Excellent Revenue Visibility
Excellent Revenue Visibility Focus on execution, increase of backlog and expand recurrent business Estimated Conversion to Revenues Rest of 2014e 2015e+ 2013e M€ Backlog represents 1.4 years worth of 2012 E&C revenues March 2013 Backlog E&C 49% 27% 23% Backlog 6,262 M€ 3,077 1,713 1,472 Contracted r
Slide 20: E&C Results Visibility - Pipeline
E&C Results Visibility - Pipeline Increased pipeline demonstrate positive outlook for the future and should translate into growth opportunities Pipeline (B€) 99.3 Split by sector Split by geography 88.1 9% 5% 4% 12% 16% 15% 21% 29% 15% 42% 13% 13% 8% 11% T&D Water Spain Brazil Power Industrial US Re
Slide 21: Investment Areas: Capex Plan through 2015+
Investment Areas Well identified Capex Plan through 2015+ Equity Capex Plan By Sector By Geography (Rest of 2013e – 2015+) Abengoa Equity 5% Investment Per Year 4% 308 227142 1% 140 149 482 14% 16% 1358 1,035 35% 2013e 2014e 2015e+ 32% 15% Pending figures 472 45% 2477 4% 597 M€ 29% 308 1,023 595 1,9
Slide 22: Great Value from Future Projects
Great Value from Future Projects As of March 31 , 2013 Ann. Abengoa (Equity Expected Fully Location Capacity Ownership %) 2013 2014 2015 2016 EBITDAe Start Up Funded? (M€) Solana USA 280 MW 100% Q3 13 65 Mojave USA 280 MW 100% Q2 14 55 Kaxu Trough South Africa 100 MW 51% Q1 15 81 Khi Tower South Afr
Slide 23: Reinforced Capital Structure
Reinforced Capital Structure Liquidity protection & management of corporate leverage: key priorities Dec. 2012 March 2013 As Reported Restated(1) March 2013 Proforma(2) Corporate Debt 4,758 4,757 5,055 5,055 Net Corporate Corporate Cash, Equiv. & STFI (2,275) (2,271) (2,681) (3,120) Debt Total net c
Slide 24: Key Leverage Ratios
Key Leverage Ratios Corporate Leverage Ratio within our Target Dec. 2012 March 2013 As Reported Restated As Reported Proforma* Corporate 3.2x 3.2x 2.9x 2.3x Non-Recourse 12.1x 9.7x 16.1 16.1 Consolidated 6.6x 5.6x 6.3x 6.0x (excl. pre-op. debt) 3.2x 3.1x 3.3x 2.9x 24 *Pro-forma magnitudes includes c
Slide 25: Strong Liquidity Position
Strong Liquidity Position Adequate liquidity position to face commitments over 2013/2014 Main Sources of Liquidity Potential WC New Asset Sales Other Potential WC • Estimated EBITDA Adj. By Debt Prepayments Non-cash items (2013/2014) >2,000 M€ • Asset sales: Befesa, Bargoa 439 M€ • Dividends & Taxes
Slide 26: Corporate Debt Maturity
Effective Maturity Management Significant extension of average life of corporate debt vs previous years Syndicated Loans Other corp. debt Expected repayment of Syndicated Loan & Other Corp. Bonds Convertible Bonds Debt with remaining 2013 bond issuances proceeds Corporate Debt Maturity 100 676 100 1
Slide 27: Net Debt Bridge
Net Debt Bridge Consolidated Net Debt Change in the Period Dec´12 Mar´13 M€ EBITDA 270 Non monetary and other adjustment (8) Assets held for Sale & Disc. (6,701) Working Capital Operation Other Net Investments Taxes & Other Financial 267 (232) (62) Costs Capex (24) (7,257) (628) Net Interest Dividen
Slide 28: Cash-flow Overview
Cash-flow Overview Continued effort in investment plan Cash generated from • EBITDA: 270 M€ operations • Non-monetary adj.: (8) M€ • Working Capital: (232) M€ • Net Interested Paid : (95) M€ (68) M€ • • Taxes and other financial costs: Discontinued operations: (24) M€ 21 M€ Net Investment • Total ca
Slide 29: Agenda
Agenda 1 Q1 2013 Business Highlights 2 Q1 2013 Financial Highlights 3 Conclusions & Outlook 4 Appendix 29
Slide 30: Confirmed FY 2013E Guidance
Confirmed FY 2013E Guidance 2013 Guidance Confirmed; Adapted to Adoption of IFRS 10 & 11 and Befesa Sale M€ Revenues EBITDA Corp. EBITDA 2013e Guidance 8,000 – 8,100 1,350 – 1,400 800 – 825 as of Dec. 2012 3% vs 7,783 M€ M€ 10% vs 1,246 M€ M€ 5% vs 777 M€ M€ IFRS 10 & 11 Impact (65) (42) - Befesa Sa
Slide 31: Agenda
Agenda 1 Q1 2013 Business Highlights 2 Q1 2013 Financial Highlights 3 Conclusions & Outlook 4 Appendix 31
Slide 32: Results by Activity
Results by Activity € in Millions Revenues EBITDA EBITDA Margin Q1 2012* Q1 2013 Var (%) Q1 2012* Q1 2013 Var (%) Q1 2012* Q1 2013 Engineering and Construction E&C 928 1,244 34.1% 106 148 39.6% 11.4% 11.9% Others 109 132 21.1% 80 85 6.3% 73.4% 64.4% Total E&C 1,037 1,376 32.7% 186 233 25.3% 17.9% 16
Slide 33: Sustainable Business Going Forward
Sustainable Business Going Forward Revenue visibility backed by our solid asset portfolio Extensive asset base once current capex plan completed Solid producing assets Solar (MW) 1,653 Transmissions (km) Biofuels (Ml/year) 9,165 3,175 3,270 95 810 2,472 843 5,217 3,175 843 1,476 1,476 March 2013 201
Slide 34: Capex by segment (I)
Capex by segment (I) Amounts based on the company´s best estimate as of March 31, 2013. Actual investments or timing thereof may change. Ann. Total EBITDAe Pending (M€) Capacity Abengoa (%) Country Start Up (M€) Investment Capex ABG Equity Partners Debt Solar 4,161 1,609 271 76 1,262 Solana2 280 MW
Slide 35: Capex by segment (II)
Capex by segment (II) Amounts based on the company´s best estimate as of March 31, 2013. Actual investments or timing thereof may change. Rest of 2013 2014 2015+ Pending ABG Pending ABG Pending ABG (M€) Capex Equity Partners Debt Capex Equity Partners Debt Capex Equity Partners Debt Solar 1,140 203
Slide 36: Thank you
Innovative Technology Solutions for Sustainability ABENGOA Thank you February 22nd, 2013