Acciona Sa · BME:ANA
Acciona Sa — Non-Deal Roadshow (April 2009)
56 slides from Acciona Sa's roadshow presentation, Apr 16, 2009
Slide 1: Pioneers in development and sustainability
acciona Pioneers in development and sustainability CreDIT Suisse 16t April 2009
Slide 2: Table of Contents
Table of Contents 1. Company Overview 2. Strategy 3. Financial Highlights 4. Divisional Overview 5. Agreement with Enel 6. ACCIONA post Agreement with Enel 7. Conclusions 2
Slide 3: Disclaimer
Disclaimer This presentation contains statements that constitute forward looking statements in its general meaning and within the meaning of Spanish Applicable Law regarding securities markets. These statements appear in a number of places in this document and include statements regarding the intent
Slide 4: 1. Company Overview
1. Company Overview CREDIT Suisst™
Slide 5: From the Origins to the Current Strategic Positioning
From the Origins to the Current Strategic Positioning ACCIONA is created in 1997 as a result of the merger between Entrecanales & Tavora and Cubiertas & MZOV, being the first merger in the Spanish construction sector - Founded as a construction Company specialising in large civil works During the de
Slide 6: ACCIONA in the Equity Capital Markets
ACCIONA in the Equity Capital Markets ACCIONA is listed since 1997 and has a market capitalisation of €5.4bn and EV of €23.3bn as of 13th April 2009 It is part of the following indexes: - IBEX-35 - Dow Jones Sustainability World Index (DJSI World) - Dow Jones Stoxx Sustainability Index Since Septemb
Slide 7: International Platform: Strategic Countries
International Platform: Strategic Countries 2004 2008 Poland Poland Canada Portugal USA Italy India China Mexico Mexico Arab Emirates Brazil Australia Chile Chile 17% 23% % International Sales TACC 23% +132% €704m €1.637m 7
Slide 8: ACCIONA Divisions
ACCIONA Divisions Infrastructure Construction Engineering Concessions Real Estate Rental Portfolio Development Energy Renewables Logistic and Transport Services ACCIONA Trasmediterránea (shipping) Airport services Other logistic services Urban and Environmental Services Water Facility Management Was
Slide 9: Transformation since 2003
Transformation since 2003 2003 2008 51% 29% 14% (2% Real Estate) (4% Real Estate) Revenues Other 25% Energy 2% Endesa 43% 4% Services Construction & 20% Real Estate x 1.9 74% 24% 14% x 3.3 2003: €3,865m 2008: €7,208m Energy 2008: €12,665m Ex-Endesa Infrastructure Incl. Endesa Water & Other Services
Slide 10: 2. Strategy
2. Strategy CREDIT Suisst™
Slide 11: Future Strategy
Future Strategy Posicionamiento Estratégico ACCIONA’s business model rests on three pillars Energy Infrastructure Agua Renewables Construction Desalination Concessions Water treatment Real Estate SUSTAINABILITY: Economic Growth, Environmental Balance, Social Progress 11
Slide 12: 3. Financial Highlights
3. Financial Highlights CREDIT Suisst™
Slide 13: P&L Main Figures
P&L Main Figures ACCIONA’s solid business model resulted in very positive results for the year 2008 in the current challenging environment (€m) Jan-Dec 07 Jan-Dec 08 Chg. (%) Revenue 7,953 12,665 ∆ 59.3 Revenue Ex Endesa 6,749 7,208 ∆ 6.8 EBITDA 1,407 2,827 ∆ 100.9 EBITDA Ex Edesa 978 1,069 ∆ 9.3 EB
Slide 14: EBITDA Contribution
EBITDA Contribution 2008 EBITDA 2008 EBITDA ex Endesa 20.8% AC CIONA Energy 54.8% 62.0% Endesa - 8.6% Infrastructures 22.6% 3.0% Real Estate 7.9% 1.4% Lo gistic & Transpo rt Services 3.6% 2.5% Urban & Enviro m ental Services 6.5% 1.7% Other Business and Financial 4.6% €2,827m €1,069m Defensive Busin
Slide 15: Financial Analysis
Financial Analysis Exit from Endesa provides a significant reduction of financial leverage with enlarged stable cash flows allowing easier access to scarce credit resources Significant room to re-leverage debt-free acquired assets Funding source for ACCIONA’s renewable pipeline during the coming yea
Slide 16: Capex by Division
Capex by Division Our Investments are aligned with the strategy… (€m) Investments % 2008 o/ Total Infrastructures 206 6.5% Real Estate 100 3.2% Energy 1,762 55.9% Logistic & Transport Services 28 0.9% Urban & Enviromental Services 84 2.7% ACCIONA ex Endesa 2,180 69.2% Endesa 972 30.8% Total Capex 3,
Slide 17: 4. Divisional Overview
4. Divisional Overview CREDIT Suisst™
Slide 18: Energy
Energy Wind Mini Hydro Biomass Concentrated Photovoltaic Thermal Biodiesel ACCIONA Energy Solar Solar Solar Windpwer Power 18
Slide 19: Energy: Key Figures
Energy: Key Figures #1 developers of wind farms, #2* owner of wind assets and #7 manufacturer of turbines ACCIONA Energy is active in all the principal clean energies, mainly focusing its activity on wind energy, a field in which it has so far installed 6,038 MW at 31st December 2008 Owned as of 31s
Slide 20: Energy: Capacity
Energy: Capacity MW Installed @ Dec 08 MW under Construction @ Dec 08 MW (Total) Spain International Total MW (Total) Spain International Total Wind 3,274 1,292 4,566 Wind 222 324 546 Mini Hydro 59 - 59 Mini Hydro - - - Biomass 33 - 33 82% Biomass 32 - 32 100% Solar PV 49 - 49 Attributable Solar PV
Slide 21: Total Wind Capacity MW (31st December 2008)
Total Wind Capacity MW (31st December 2008) Germany 148 MW Hungary Canada 24 MW 136 MW Spain 3,274 MW Spain (72%) USA South Korea 485 MW Portugal Italy Greece 47 MW US (11%) 26 MW 71 MW 44 MW Mexico Canada (3%) 38 MW India ROTW (15%) 30 MW Australia 243 MW Installed capacity Total Worldwide: 4,566 M
Slide 22: Social & Political Support around the World
Social & Political Support around the World Dec 2008: European Parliament approves the European directive aiming to promote renewable energies with a triple target by 2020: European - 20% of the EU's overall energy consumption coming from renewables Union - 20% CO2 emissions reduction - 20% efficien
Slide 23: Solar Thermoelectric: ACCIONA Key Facts
Solar Thermoelectric: ACCIONA Key Facts ACCIONA Energy is a pioneer and one of the key worldwide players in Solar Thermal Industry based on its previous experience and future pipeline ACCIONA Positioning in the Industry Power Come into Name Site Status Start works (MW) service Nevada Solar One Nevad
Slide 24: Solar Thermoelectric: Nevada Solar One, a Landmark Project
Solar Thermoelectric: Nevada Solar One, a Landmark Project Third largest CSP plant in the world. Connected to the grid in June 2007 Capacity: 64 MW, enough to power 14,000 homes Investment: $266m, 1st structured leveraged lease financing for a solar power project in US Surface: 300 acres equivalent
Slide 25: Solar Thermoelectric: Pipeline (Spain)
Solar Thermoelectric: Pipeline (Spain) 5 Projects: Alvarado I and II, Palma del Rio I and II & Miajadas Σ 5 Projects Collector Surface Area (m2) 1,820,000 Total Capacity (MW) 250 MW Estimated Capex (€m) 1,200 Miajada Average Life 25 years + Participants 100% ACCIONA Alvarado I y II Financing (D/E) 8
Slide 26: Solar Photovoltaic
Solar Photovoltaic No. Plants: 369 (five owned) Power: 115 MW installed (49 MW owned) ACCIONA has developed 66MW for third parties Landmark Project: ACCIONA has developed the biggest plant in the world (46 MW) in Moura, Portugal Amareleja PV plant Amareleja PV plant - Moura, Portugal Investment: €26
Slide 27: Biomass
Biomass Key Facts No. Plants: 3 Power: 33 MW Production: 240 Gwh/year Market Share in Spain: 11% Pipeline (Spain) 7 projects with a total capacity of 110 MW in Spain • Under construction: o Briviesca (Burgos): 16MW - Investment: €83m o Miajadas (Cáceres): 16MW - Employees: 50 direct employees (150 i
Slide 28: ACCIONA Windpower
ACCIONA Windpower World’s #7 turbine manufacturer AW-1500 wind turbines produced No. Plants: 4 (2 in Spain, 1 in China, 1 in USA) Total capacity Year Units (MW) No. Employees: 915 2004 143 214.5 Product: AW 1500, in – house developed technology 2005 149 223.5 2006 284 426.0 Capacity Production: 1,30
Slide 29: Infrastructure
Infrastructure Construction Concessions Real Estate 29
Slide 30: Infrastructure: Key Figures
Infrastructure: Key Figures Revenues (€m) EBITDA (€m) 3,695 7.5% 6.8% -2.8% 3.592 1% 276 -11.9% 2% 243 6% 12% 99% Const. & Eng. 94% 88% 98% Concessions EBITDA margin 2007 2008 2007 2008 Main infrastructure works awarded in 2008: SPAIN: INTERNATIONAL: Platform for high speed train Madrid- A-30 toll r
Slide 31: Infrastructure: Construction
Infrastructure: Construction Constr. Backlog - Business Breakdown Constr. Backlog - Geograph. Breakdown Construction Backlog (€m ) Dec-07 Dec-08 % Var. W eight (% ) Civil works (Spain) 3,398 4,144 22% 56% Civil works (International) 458 1,353 196% 18% International Total Civil W orks 3,855 5,497 43%
Slide 32: Infrastructure: Concessions
Infrastructure: Concessions Book value of concessions as of December 2008: €669m (equity and debt) Young portfolio of concessions: – Average life: 3.7 years – Average remaining life: 24 years Main 2008’s new concessions awarded: – A-30 toll road in Canada, which will become a main axis linking Quebe
Slide 33: Infrastructure: Real Estate
Infrastructure: Real Estate Revenues (€m) EBITDA (€m) 445 28.1% 26.6% 5% -28.1% 19% 125 320 -31.8% 7% Parkings 9% 15% Rental Assets 34% 85 Development 14% 76% EBITDA margin 34% 78% 56% 52% 2007 2008 2007 2008 Presales dropped from €182m in 2007 to €42.9m in 2008 Acquisition of land €131m¹: – Spain:
Slide 34: Infrastructure: Real Estate - Independent Asset Appraisal
Infrastructure: Real Estate - Independent Asset Appraisal 2007 2008 Independent asset Gross Capital Gross Capital (€ million) GAV Gain GAV Gain appraisal by: Development 1,634 423 559 66 Domestic 1,336 350 289 57 - CB Richard Ellis International 298 73 270 9 Rental 1,105 302 1,829 265 - Aguirre Newm
Slide 35: Water
CREDIT Suisse™ Water jacciona 35
Slide 36: ACCIONA Agua: Overview
ACCIONA Agua: Overview ACCIONA Agua was created from the merger of Pridesa, Infilco and Gesba in March 2006 and offers a full range of services in the integral water cycle (%) ACCIONA Agua is a leading company in water treatment and particularly in desalination by reverse osmosis International profi
Slide 37: ACCIONA Agua: Landmark projects (i)
ACCIONA Agua: Landmark projects (i) (%) ACCIONA Agua has built over 70 desalination plants, which produce 1.6 million m3/day to supply over 6 million people. ACCIONA Agua also operates most of the desalination plants which it has built A few of ACCIONA Agua’s landmark projects: Torrevieja desalinati
Slide 38: ACCIONA Agua: Landmark projects (ii)
ACCIONA Agua: Landmark projects (ii) Thames GW Torrevieja Djerba Carlsbad Tampa Palm Jebel Ali Hialeah Fouka El Ahogado KAEC CRP Chennai Adelaida Under Development Awarded / Under Construction In Operation 38
Slide 39: Services and Other Businesses
Services and Other Businesses Services Other Businesses Logistic & Transport Urban & Environmental Asset Management Media (GPD) Winery 39
Slide 40: Logistic & Transport Services: Key Figures
Logistic & Transport Services: Key Figures Revenues (€m) EBITDA (€m) -1.1% 7.5% 4.3% 924 914 69 -43.3% 18% 19% 10% Other Trasmediterránea 60% 39 66% 64% Handling 32% EBITDA margin 14% 53% 16% 17% 30% 2007 2008 2007 2008 The division has suffered a severe margin contraction during the year, affecting
Slide 41: Urban & Environmental Services: Key Figures
Urban & Environmental Services: Key Figures Revenues (€m) EBITDA (€m) 7.8% 9.1% 10.1% 772 70 702 28.0% 55 43% Agua 52% Other 61% 60% EBITDA margin 57% 39% 48% 40% 2007 2008 2007 2008 ACCIONA Agua’s revenues up 34.2% and EBITDA up 80.1% to €370m and €40m respectively Water business increases its weig
Slide 42: Other Businesses: Key Figures
Other Businesses: Key Figures Revenues (€m) EBITDA (€m) 43.8% 35.7% 165 -15.5% 72 EBITDA margin -31.7% 140 49 2007 2008 2007 2008 Includes: – Bestinver – “Bodegas Hijos de Antonio Barceló” winery business – Media (GPD) Bestinver had €2,386m under management as of December 2008 42
Slide 43: 25% Stake in Endesa
EMM endesa 25% Stake in Endesa CrepirSulsse™ jacciona 43
Slide 44: Endesa: Contribution
Endesa: Contribution Chg. (€m) Jan-Dec 07 Jan-Dec 08 (x) Revenue 1,203 5,458 4.5x EBITDA 429 1,757 4.1x Net Profit 316 226 0.7x Significant increase of net financial expenses (+€896m) mainly explained by the change in the consolidation criteria of Endesa, recognizing in 2007 the dividends paid out b
Slide 45: 5. Agreement with Enel
5. Agreement with Enel CREDIT Suisst™
Slide 46: Agreement with Enel: Transaction Overview
Agreement with Enel: Transaction Overview On the 20th February 2009 ACCIONA and Enel reached an agreement regarding Endesa EARLY EXERCISE OF PUT CONSOLIDATION OF A OPTION ON ITS 25.01% LEADING RENEWABLE STAKE IN ENDESA ENERGY COMPANY Valued at €11,107m in cash Simultaneously ACCIONA will as of 20th
Slide 47: Transaction Overview: Timetable and Other Key Terms
Transaction Overview: Timetable and Other Key Terms Execution Date: six months after signing (20 August 2009) or earlier if the conditions precedent are fulfilled Key conditions precedent: - Unconditional approval from required Authorities in Spain and EU - Regulatory approvals - Effective availabil
Slide 48: Agreement with Enel: Overview of Assets
Agreement with Enel: Overview of Assets Average Average Load Assets Gross MWs Net MWs Remaining Life(1) Factor (2) Wind Assets in Spain 1,154.0 1,154.0 18 26.9% (2) Wind Assets in Portugal 93.7 93.7 17 26.9% Mini-Hydro 175.4 174.6 40 33.2% Hydro 682.2 682.2 45 29.7% TOTAL 2,105.3 2,104.5 30 28.3% Al
Slide 49: Strategic and Financial Rationale
Strategic and Financial Rationale Early exercise of the Put Option for the 25.01% stake in Endesa Fully reinvested in operating, debt free, 100% owned renewable assets Crystallized capital gain Consistent with ACCIONA’s three pillar business model: Renewable Energy, Infrastructures and Water Signifi
Slide 50: Strategic and Financial Rationale
Strategic and Financial Rationale Acquisition of renewable and hydro assets of Endesa Leadership consolidation of ACCIONA as #2 wind renewable energy Company globally Consolidation of world leading #2 wind renewable energy Company in Spain with 23% (1) market share renewable energy company #2 mini-h
Slide 51: 6. ACCIONA post Agreement with Enel
6. ACCIONA post Agreement with Enel
Slide 52: Consolidating Worldwide Leadership
Consolidating Worldwide Leadership Gross Installed Renewables Capacity (FY 2008) 9,302 #2 Gross Installed Capacity (MW) 6,976 6,685 #4 2,105 5,052 (1) 4,871 2,275 4,871 Iberdrola Acciona Florida Power & EDP Renovaveis Acciona EDF Energies Renovables Light Nouvelles Post-agreement Pre-agreement Sourc
Slide 53: Unique Platform for Future Growth
Unique Platform for Future Growth Improvement of Only asset-base fully operational portfolio acquired ACCIONA’s wind Rebalance of ACCIONA’s operational and pipeline wind portfolio renewable portfolio Ability to leverage debt-free acquired assets to finance ACCIONA’s pipeline mix Increased critical m
Slide 54: A Transforming Transaction into a "Greener" Company
A Transforming Transaction into a “Greener” Company Increased Energy Contribution excellent growth prospects and defensive regulatory environment EBITDA 2006 EBITDA 2009E (1) 10% 17% 20% 42% ~x2 Energy Contribution (%) 73% 38% 42% Energy EBITDA CAGR (€m) Infrastructures Energy Services & Other Busin
Slide 55: 7. Conclusions
7. Conclusions CREDIT Suisst™
Slide 56: Conclusions
Conclusions ACCIONA’s future business strategy relies on three pillars under the sustainability umbrella: Infrastructure, Energy and Water Under a challenging environment, the sound results of 2008 respond to the defensive business mix of the company, together with our strong growth potential in the