Acciona Sa · BME:ANA
Acciona Sa — FY2016 Earnings Presentation
53 slides from Acciona Sa's earnings presentation, Mar 1, 2017
Slide 1: FY 2016 Results Presentation, 1st March 2017
1st March 2017
Slide 2: Disclaimer
| Disclaimer jacciona This document has been prepared by ACCIONA, S.A. (“ACCIONA" or the “Company” exclusively for use during the presentation of financial results for the full year of 2016 (FY 2016). Therefore it cannot be disclosed or made public by any person or entity with an aim other than the
Slide 3: Table of contents
| Table of contents 1. 2 3 4 5. 6 7 8 Chairman’s opening remarks . 2016 Achievements & Trends 2017 . Group financial information . Energy Infrastructure . Other Activities . ACCIONA Outlook 2017 . Q&A session Appendix
Slide 4: 1. Chairman's opening remarks
1. Chairman’s opening remarks José Manuel Entrecanales Chairman & CEO
Slide 5: ACCIONA at the heart of mitigation, adaptation & sustainability infrastructure
| Qacciona at the heart of MITIGATION, ADAPTATION & SUSTAINABILITY infrastructure Mitigating the effects of climate change, resource depletion & environmental impact; Adapting to the challenges of population growth, economic development & new social needs: promoting sustainable development AY iin F
Slide 6: Kaya Identity
7 % Industrial Processes 68% Energy 11 % Agriculture 14 % Others Kaya Identity Population Living Energy Energy standard intensity emissions Source: International Energy Agency (2016). “CO2 emissions from fuel combustion”.
Slide 7: For not exceeding the 2oC
+25% +58% -34% -14% +11 % For not exceeding the 2oC (450 Scenario) is necessary: -44 % Source: Own calculation based on International Energy Agency (2016) “World Energy Outlook 2016”, OECD Statistics and World Bank Statistics
Slide 8: From $1.9tr to $3tr
From $1.9tr to $3tr 691 503 114 288 1,112 13 1,402 221 229 283 Fossil Renewable Grids Source: International Energy Agency (2016) “World Energy Outlook 2016” Nuclear & CCS Energy Efficiency
Slide 9: Renewables, Nuclear, Oil&Gas
Renewables 300 Wind onshore 250 Solar PV Nuclear 200 Oil&Gas 150 100 30-50 $/MWh Coal 50 35-45 $/MWh 1995 2015 2040
Slide 10: Energy: Regional investment trends in power generation
10| Energy: Regional investment trends in power generation ACCIONA FY2016 Results presentation jacciona Total generation capex Renewable generation capex Current € 394 billion annual CAPEX investment in power plants Qacciona Renewables Fossil Fuels Nuclear 60% Wind Solar Bioenergy Hydroelectric Mari
Slide 11: Infrastructure: Regional investment trends
ACCIONA FY2016 Results presentation | Infrastructure: Regional investment trends Gacciona Total infrastructure capex ACCIONA'’s addressable market in infrastructure Current € 5-6 trillion annual CAPEX investment in infrastructure Average annual investment in ACCIONA Infrastructure core segments for
Slide 12: 2. 2016 Achievements & Trends 2017
2.2016 Achievements & Trends 2017 Juan Muro-Lara Chief Corporate Development & IR Officer
Slide 13: 2016 Achievements
| 2016 Achievements Delivery of financial targets * EBITDA marginally up despite Spanish power price weakness * Net debt / EBITDA improvement and well within target range Securing profitable growth * Significant capex ramp-up — partly financed with non-core rotation * Successful year in competitive
Slide 14: 2016 Achievements
| 2016 Achievements jacciona Major step in the overhaul of ACCIONA’s financing model * Project debt refinanced with corporate debt transform balance sheet funding model * Should lead to structurally lower cost of capital Other Businesses performing well * Marked increase of Transmediterranea’s contr
Slide 15: Trends 2017
| Trends 2017 > Resuming moderate EBITDA growth — driven by core divisions — Energy — higher prices and reviewed regulation in Spain and contribution from new International assets —_Infrastructure — consolidation of Construction margins, and growth in Water & Services > Gross capital expenditure at
Slide 16: 3. Group financial information
3. Group financial information Carlos Arilla Group Chief Financial Officer
Slide 17: FY 2016 key figures
| FY 2016 key figures jacciona 2016 % Chg. (€m) vs FY 2015 Revenues 5,977 -8.7% EBITDA 1,192 41.5% Ordinary EBT 312 -5.3% Total EBT 408 +28.0% 2016 2015 (€m) (€m) Gross capex 916 222 Net Investment Cashflow! 719 167 Net Financial Debt 5,131 5,159 Net Debt / EBITDA 4.31x 4.39x ™ Net Investment Cashfl
Slide 18: FY 2016 Extraordinary items
| FY 2016 Extraordinary items Breakdown of €95m net extraordinary effects at EBT = Capital gain associated to AWP-Nordex deal > +€657m = Other positive effects > €64m Positive effects — Capital gain associated to the acquisition of a 37,05% of ATLL to BTG Pactual +€721m — Unwinding of a provision du
Slide 19: Group: Capex by division
| Group: Capex by division Capex breakdown Key highlights jacciona (ém) Energy Infrastructure Construction Water Service Other Activities Gross capex Divestments Net capex Net Investment cashflow Jan-Dec 15 130 79 49 19 nN 13 222 -51 71 167 Capex Jan-Dec 16 489 358 223 107 28 69 916 -64 852 719 Stro
Slide 20: Group: Refinancing transactions
| Group: Refinancing transactions jacciona ACCIONA has conducted key refinancing transactions aiming to reduce the average cost of debt, optimize cash management and increase flexibility v Estimated annualized financial cost savings of ~€75m from 2017 1 ¥ _Undrawn credit lines maturity extended Synd
Slide 21: Net debt by division
31-Dec-15 31-Dec-16 Non- Cash + (€m) Net debt Recourse debt recourse Gross debt C.Faui Net debt debt o GPK Hi Recourse 33% Energy 4,295 2,941 1,738 4,679 -385 4,294 Hi Non-recourse 67% Infrastructure 162 708 352 1,060 -1,076 -16 Construction 136 530 235 765 -830 -65 Water 7 133 m1 243 -222 21 Servic
Slide 22: Bank and non-bank debt
Deuda bancaria Deuda no bancaria
Slide 23: Group: Net debt evolution
ACCIONA FY2016 Results presentation 23| Group: Net debt evolution Ascciona Net debt reconciliation FY 2016 (€m) ins 3 Operating CF Net Investment CF Financing/Others CF Netdebt EBITDA Financial — Working Other Net Divestment Other Treasury Derivatives Forex Dividends Perimeter Net debt Dec 2015 resu
Slide 24: 4. Energy
4. Energy
Slide 25: Energy: Key figures
| Energy: Key figures jacciona Key figures EBITDA evolution (€m) (Million Euro) Jan-Dec15 Jan-Dec16 Chg. Chg. (%) 897 | | 740 Revenues 2,719 1,796 -923 -65 — EBITDA 897 740 -157 Margin (%) 33.0% 412% = Main drivers: AWP deconsolidated as of 1st April 2016 and FY 2015 EBITDA — Generation AWP, Non- FY
Slide 26: Energy markets: U.S., Mexico, India, Chile, Australia
U.S. Mexico India Chile Australia
Slide 27: Energy: Strategy
| Energy: Strategy Always maximizing operating efficiency Innovation & continuous improvements Always growing profitably O&M cost reduction (continuing efforts) Increasing availability (marginal) Power marketing: diversification of products and markets reducing/hedging risk Corporate PPA’s as a plus
Slide 28: 5. Infrastructure
5. Infrastructure Luis Castilla CEO ACCIONA Infrastructure
Slide 29: Infrastructure: Key highlights
| Infrastructure: Key highlights jacciona Key figures 2016 highlights (Million Euro) Jan-Dec15 Jan-Dec16 Chg. Chg. (%) = Improved revenues and margin as a result of: Revenues 3,306 3,611 305 9.2% — Good performance of most relevant international EBITDA ww 321 = CLES projects: Quito Metro (Ecuador),
Slide 30: Infrastructure: Key contracts 2016
ACCIONA FY2016 Results presentation 30 Infrastructure: Key contracts 2016 Quito Metro CODELCO Mining tunnels \ ay o nt €0.4 bn Thermosolar Pla ro) } €11bn © construction © concessions O ware eo INDUSTRIAL r=] SERVICE Recently awarded contracts Note: contract value refers to the total amount of the p
Slide 31: Construction: Key figures
| Construction’: Key figures Key figures Construction & Industrial backlog (Million Euro) Jan-Dec15 Jan-Dec16 Chg. Chg. (%) sm LatAm (33%) EMEA (Spain not incl.) (30%) Revenues 2,171 2,267 96 44% Spain (17%) EBITDA 102 174 72 70.5% Australia & South East Asia (14%) Margin (%) 4.7% 7.7% Construction:
Slide 32: Water and Services: Key figures
Water and Services: Key figures jacciona Water: Key figures Service: key figures (Million Euro) Jan-Dec15 Jan-Dec16 Chg. Chg. (%) (Million Euro) Jan-Dec15 Jan-Dec16 Chg. Chg. (%) Revenues 451 708 258 57.2% Revenues 716 677 -39 -5.5% EBITDA 35 119 84 243.6% EBITDA 31 28 3 -9.0% Margin (%) 77% 16.8% M
Slide 33: Infrastructure growth priorities by business
CONSTRUCTION CONCESSIONS • Central Europe & Scandinavia • SE Asia • Development in USA • Private Clients in Spain WATER SERVICE • North America & Canada • Accelerate International Growth • SE Asia • O&M of Transmission Lines • Increase weight of Long • Airport: Handling International Term operations
Slide 34: Infrastructure: Internal transformation
ACCIONA FY2016 Results presentation 34 Infrastructure: Internal transformation jacciona Competitiveness Solutions Risk Control Organizational efficiency Specialization Bid management On goin going Self performance Knowledge and talent Contract management Processes Procurement igitalizati fenni Ll aw
Slide 35: 6. Other activities
6. Other activities Juan Muro-Lara Chief Corporate Development & IR Officer
Slide 36: Other activities
| Other activities jacciona Key figures Revenues Breakdown (Million Euro) Jan-Dec15 Jan-Dec16 Chg. Chg. (%) (Million Euro) Jan-Dec 15 Jan-Dec 16 Chg. Chg. (%) Revenues 613 668 55 8.9% Trasmediterranea 424 431 7 1.6% Real Estate 51 105 54 104.8% 113 131 18 16.2% EBITDA Bestinver 91 85 6 67% Margin (%
Slide 37: Trasmediterranea
Trasmediterranea Key highlights Key figures (Million Euro) Jan-Dec15 Jan-Dec16 Chg. Chg. (%) Revenues 424 431 7 1.6% EBITDA 4 61 20 48.5% Margin (%) 9.6% 14.1% Jan-Dec15 Jan-Dec16 Chg. (%) Passengers served 2,451,323 2,508,535 2.3% Cargo handled (lane metres) 5,651,087 5,780,966 23% Vehicles 544,999
Slide 38: Bestinver
Bestinver jacciona Key figures Key highlights (MillionEuro) Jan-Dec15 Jan-Dec16 Chg. Chg. (%) = 11.4% and 10.9% performance of Bestinver Internacional and Bestinfond, respectively (vs Revenues 1 85 6 67% benchmark +2.6%) ™ Fund NAVs are currently at historic high levels EBITDA “ ° * mes with a poten
Slide 39: Real Estate
| Real Estate jacciona Key highlights Key figures (MillionEuro) Jan-Dec15 Jan-Dec16 Chg. Chg. (%) Revenues 51 105 54 104.8% EBITDA 6 14 8 122.1% Margin (%) 12.4% 13.4% = EBITDA more than doubles reaching €14m in FY2016 due to the partial delivery of a real estate development project in Mexico ™ Disp
Slide 40: Real Estate - New strategy well underway
| Real Estate —- New strategy well underway Gacciona ACCIONA has carried out a strategic review of its Real Estate business to maximize its value and leverage on current property cycle * ACCIONA is no longer pursuing the IPO of part of its portfolio, as previously announced New strategy along two ma
Slide 41: 7. 2017 Outlook
7.2017 Outlook Juan Muro-Lara Chief Corporate Development & IR Officer
Slide 42: ACCIONA Outlook 2017
| ACCIONA Outlook 2017 Moderate EBITDA growth driven by Energy and Infrastructure Group EBITDA 2017E > Mid-single digit growth Gross capex ~€900m > ~60% Energy Net Investment Cashflow! ~€650m NFD / EBITDA Vv Vv VW Towards lower part of ~4.0-4.5x range ™ Net Investment Cashflow is equivalent to Gross
Slide 43: 8. Q&A session
8. Q&A session
Slide 44: Appendix
Appendix
Slide 45: Group: Recourse debt & liquidity
| Group: Recourse debt & liquidity Maturity profile of debt with recourse (€4,517m) 1,745 2017 2018 2019 2020 > 2021 ™Credit lines mMLoans BECP MEMTN Convertible Proactively monitoring opportunities in the capital markets post-refinancing transactions (e.g. €150m Green Schuldschein issued in Oct 201
Slide 46: Group: Non-recourse debt amortization schedule
ACCIONA FY2016 Results presentation 4q Group: Non-recourse debt amortization schedule jacciona Principal repayment schedule 2017-2026 (€m) 292 1 | 144 151 °° 154160 149 61 ! 50 66 68 72 2017 2018 2019 2020 2021 Average 2022-26 @ Energy Spain Energy International Mlnfrastructure | Other Activities St
Slide 47: Energy: Installed capacity
ACCIONA FY2016 Results presentation 47| Energy: Installed capacity {acciona Spain 5,950 4,673 619 5,279 Wind 4,747 3,470 619 4,079 Hydro 888 888 0 888 Solar Thermoelectric 250 250 (0) 250 Solar PV 3 3 (0) 3 Biomass 61 61 0) 59 Internacional 2,963 2,677 78 1,865 Wind 2,512 2,272 48 1,524 Solar Thermo
Slide 48: Energy: Equity-accounted generation capacity
ACCIONA FY2016 Results presentation 4g Energy: Equity-accounted generation capacity jacciona Detail of capacity accounted under the equity method Wind Spain 619 1,322 45 212 2005 Wind International 48 116 6 6 2005 Australia 32 78 3 3 2005 Hungary 12 24 2 3 2006 USA 4 14 0 0 2003 Solar PV 30 60 21 75
Slide 49: Energy: FY 2016 installations and WIP
ACCIONA FY2016 Results presentation 4 Energy: FY 2016 installations and WIP jacciona MW installed in 2016 Biggest PV plant in Latin America Will contribute to cover part of the 600GWh renewable supply Solar PV Chile Romero Solar 246* Q4 2016 contract from Jan 2018 onward and the supply contract sign
Slide 50: Energy: Growth visibility
| Energy: Growth visibility jacciona New Capacity Awarded/ Approved during 2016 Asset Country Technology MWs (ANA) Award Date Start of Construction CoD El Cortijo Mexico Wind 168.0 Mar-16 Q12017 Q3 2018 San Gabriel Chile Wind 183.0 Sep-16 Q3 2017 Q12019 Tolpan Chile Wind 87.0 Sep-16 42019 42021 Mont
Slide 51: Energy: Wind drivers by country
| Energy: Wind drivers by country Wind prices (€/MWh) and Load factors (%) jacciona FY 2016 Av. price (€/MWh) Spain Average 61.2 Spain - Regulated 74.4 Spain - Not regulated 35.6 Canada 548° USA 30.5 India** 52.7 Mexico 67.5 Costa Rica 78.2 Australia 68.2 Greece 84.5 Ml Poland 65.2 = Croatia 105.6 2
Slide 52: Infrastructure: Concessions
ACCIONA FY2016 Results presentation 52| Infrastructure: Concessions Gacciona Pies ot cmt | re ort | vie || 14 2 1 1 6 57 81 # of concessions Proportional EBITDA FY 2016 (€m) 69 3 4 i} 24 140 235 Consolidated EBITDA FY 2016 (€m) 45 0 0 0 13 106 158 Average life (yrs) 33 29 30 30 28 25 57 Average cons
Slide 53: 1st March 2017
1st March 2017