Abengoa Sa · OTC:AGOAF
Abengoa Sa — FY2006 Earnings Presentation
62 slides from Abengoa Sa's earnings presentation, Feb 27, 2007
Slide 1: Abengoa 2006 Earnings Presentation
ABENGOA 2006 Earnings Presentation February, 27th 2007 Instituto Español de Analistas Financieros With the sun... we produce thermoelectric and photovoltaic electric energy With biomass… we produce ecologic fuels and animal feed With wastes… we produce new materials by recycling, and we also treat a
Slide 2: Forward-Looking Statement
ABENGOA Forward-Looking Statement This presentation This presentation contains contains forward-looking forward-looking statements statements and and information relating information relating toto Abengoa Abengoa thatthat are are based based on on the the beliefs beliefs of of its its management as
Slide 3: Agenda
ABENGOA Agenda 1. About Us 2. 2006 Highlights 3. 2006 Detailed Financial Analysis 3.1. Consolidated 3.2. Business Unit 4. Solar 5. Q&A 3
Slide 4: Our Commitment
ABENGOA Our Commitment In Abengoa, we believe that the globe requires Solutions that allow our development to be more sustainable. Scientists tell us that Climate Change is a reality and from Abengoa, we believe the time has come to pursue and put these solutions into practice. More than ten years a
Slide 5: Our Commitment
ABENGOA Our Commitment To this end, we invest in Research, Development and Innovation, R&D&I, Globally roll out the technologies with the greatest potential, and attract and develop the necessary Talent. Moreover, through the Focus-Abengoa Foundation, we dedicate human and economic resources to prom
Slide 6: Abengoa Presentation
ABENGOA Abengoa Presentation Abengoa is a technology company applying innovative solutions for sustainable development in the infrastructures, environment and energy sectors. • Sales and and Gross Gross Cash Cash Flow Flow in in 2006 2006 of of 2,677.2 2,677.2 and and 287.9 million euro, respectivel
Slide 7: Organization
ABENGOA Organization Abengoa is organized into five Business Units and a Corporate Area. Corporate Strategic Development ABENGOA Corporate Area Human Resources GIRH Solúcar Abengoa Befesa Telvent Abeinsa Systems and Bioenergía Communication. Telvent Outsourcing Environmental Information Industrial S
Slide 8: Solar
ABENGOA Solar Solúcar Energía is its holding company. This Business Unit’s activity focuses on the design, promotion, finance attainment, construction and operation of electric energy generating plants that utilize the sun as their primary energy source. It possesses the know-how and technology requ
Slide 9: Bioenergy
ABENGOA Bioenergy Abengoa Bioenergía is its holding company. The Business Unit is dedicated to the production and development of biofuels for transport, bioethanol and biodiesel, among others that utilize biomass (cereals, cellulosic biomass, and oleaginous seeds) as the raw material. The biofuels a
Slide 10: Environmental Services
ABENGOA Environmental Services Befesa Medio Ambiente, the holding company of Abengoa’s environmental services Business Unit, focuses its activity on providing environmental services for industry and on the construction of environmental infrastructures, while conducting aluminum waste recycling, zinc
Slide 11: Information Technologies
ABENGOA Information Technologies Telvent, the holding company of Abengoa’s businesses in the Information Technology sector, is a specialist in Real-Time information technology (IT) solutions with high added value in four specific industry sectors (Energy, Traffic, Transport and Environment) in Europ
Slide 12: Industrial Engineering and Construction
ABENGOA Industrial Engineering and Construction Abeinsa is Abengoa’s holding company for this Business Unit, whose activity focuses on engineering, construction and maintenance of electric, mechanical and instrumentation infrastructures for the energy, industry, transport and services sectors: Promo
Slide 13: Positioning of the Business Units
ABENGOA Positioning of the Business Units 2006 Sales Gross Cash Flows Abengoa is the leader on the home market in electricity generation from solar energy, with a development plan for more than 300 MW over the next few years. Solar - - With the sun... we produce thermoelectric and photovoltaic elect
Slide 14: Evolution of Sales and Gross Cash Flows by Business Unit
ABENGOA Evolution of Sales and Gross Cash Flows by Business Unit Sales 1996 8% 2005 19% 2006 18% 24% 43% 44% 20% 21% 68% 18% 17% Gross Cash Flows 1996 8% 2005 20% 2006 17% 14% 46% 48% 20% 19% 78% 15% 15% Solar Bioenergy Environmental Services Information Technologies Industrial Engineering and Const
Slide 15: R&D&I
ABENGOA R&D&I 2005 2006 2007 (F) %/ %/ %/ M€ M€ M€ Main Projects Sales Sales Sales Solar Energy 31.7 17.4 15.7 Biomass convertion to ethanol 13.5 26.2 18.0 Enhancement ethanol efficiency (residual starch) 1.1 1.6 1.1 Hydrogen Technology. Fuel Cells 2.7 2.1 6.6 Electricity, environmental, oil and gas
Slide 16: Workforce
ABENGOA Workforce Average Workforce 2006 Total: 13,608 (100%) 14.000 12.000 6.977 Senior Manag. 473 (3.5%) 51% 10.000 Middle Manag. 1,227 (9.0%) 8.000 Engineers and 6.000 2,210 (16.2%) Uni. Graduates 6.631 4.000 49% Skilled and 2.000 1,893 (13.9%) semi-skilled 0 Laborers 7,805 (57.4%) Abroad Spain 1
Slide 17: Agenda
ABENGOA Agenda 1. About Us 2. 2006 Highlights 3. 2006 Detailed Financial Analysis 3.1. Consolidated 3.2. Business Unit 4. Solar 5. Q&A 17
Slide 18: 2006: Outstanding Performance
ABENGOA 2006: Outstanding Performance YoY % Revenues 2,677.2 M € + 32.3% Gross Cash Flow * 287.9 M € +33.0% Net Income 100.3 M € + 52.0% EPS 1,11 € + 52.0% Market Cap** 2.743 M € + 144% Investments 959,0 M € + 76.2% Net Cash Position*** 154 M € + 30% * As today equal Ebitda ** As of cl
Slide 19: ABENGOA
ABENGOA Abengoa is focusing its growth in investments where the construction of assets is done in-house, generally by the Industrial Engineering and Construction group. Interpretation 12 by IFRIC published late 2006 establishes that profit from construction in service concession must be recogniz
Slide 20: Strong Cash-Flow generation
ABENGOA Strong Cash-Flow generation Financial Discipline Allows Future Growth Strong Cash-Flow Generation Gross Cash Flow from Working Capital Operations +58 M € 288 M € (+33%) Investments in Profitable Growth Investments 959 M € (+75%) Funded by Non-Recourse Debt Non-Recourse Debt +758 M €
Slide 21: Agenda
ABENGOA Agenda 1. About Us 2. 2006 Highlights 3. 2006 Detailed Financial Analysis 3.1. Consolidated 3.2. Business Unit 4. Solar 5. Q&A 21
Slide 22: Revenues, Gross Cash Flow and Net Income
ABENGOA € in Millions Revenues Gross Cash Flow Sustained Revenue Growth Improved Operating Performance 2,677.2 % 33.0 287.9 % 2,023.5 2,023.5 20.1 1,746.1 216.4 216.4 180.1 % % 15.9 32.3 10,3% 10,7% 10,7% 10,8% 2004 2005 2005 2006 2004 2005 2005 2006 Net Income % 52.0 100.3 % 26.0 66.0 66.0 3,7% 52.
Slide 23: P&L Account
ABENGOA € in Millions, except EPS P&L Account 31.12.2005 31.12.2006 Var (%) Net turnover 2.024 2.677 32 Depreciation and amortization expense (53) (69) 30 Research and development costs (18) (23) 27 I. Net Operating Profit 163 219 34 II. Net Financial Loss (59) (92) 56 III. Participation in Profits/
Slide 24: International Activity
ABENGOA International Activity • International Activity represents 56% of total sales, with a 52,7% yoy growth Activity Abroad 2006 2005 1996 CAGR (96-06) Exportation and Local Company Sales M€ % M€ % M€ % % - USA and Canada 284.7 10.6 270.3 13.4 0.0 0.0 - - Latin America 739.5 27.6 492.3 24.3 152.4
Slide 25: Contribution by Business Unit
ABENGOA Contribution by Business Unit € in Millions 2700,0 +303.6 2,677.2 2500,0 +113.7 Revenue Growth +152.9 2300,0 +83.5 2100,0 2,023.5 1900,0 2005 Bioenergy Environm. Information Industrial E&C 2006,0 Services Technologies 300,0 +38.7 287.9 280,0 260,0 +9.0 Gross Cash Flow +17.6 240,0 Growth 220,
Slide 26: Balance Sheet
ABENGOA € in Millions, except EPS Balance Sheet Balance Sheet 2005 2006 Var (%) Intangible Assets (incl. Goodwill) 349 623 79% Fixed Assets in Projects 682 1.147 68% Equity 526 541 3% Non-Recourse Financing 671 1.254 87% Net Debt 2005 2006 Var (%) Long Term Debt with Credit Institutions (530) (873)
Slide 27: Cash-Flow Statement
ABENGOA Cash-Flow Statement € in Millions, except EPS Cash Flow Statement 2005 2006 Var (%) Consolidated Profit after-Tax 78 122 55% Corporate Income Tax 32 13 -58% Depreciation and amortization 53 69 30% Net Financial Loss 59 92 56% Participation in Profits/(Losses) of Associate Companies 5 8 41% P
Slide 28: Agenda
ABENGOA Agenda 1. About Us 2. 2006 Highlights 3. 2006 Detailed Financial Analysis 3.1. Consolidated 3.2. Business Unit 4. Solar 5. Q&A 28
Slide 29: Highlights by Business Unit: Revenues
ABENGOA Highlights by Business Unit Revenues (€M) 2005 2006 % 1300 + 35.1 1200 1100 1000 900 % + 38.0 800 % % 700 600 + 21.3 + 31.4 500 400 300 200 100 0 Bioenergy Environmental Services Information Technologies Ind. Engineering and Construction • Strong revenue growth (+20% in the 4 sectors) 29
Slide 30: Highlights by Business Unit: Gross Cash Flow
ABENGOA Highlights by Business Unit Gross Cash Flow (€M) 2005 2006 % + 39.1 160 140 120 100 % % + 43.7 80 60 + 14.0 + 27.2 % 40 20 0 Bioenergy Environmental Services Information Technologies Ind. Engineering and Construction • Succesful operating performance 30
Slide 31: Bioenergy
ABENGOA Bioenergy With biomass... we produce ecologic fuels and animal feed 31
Slide 32: Bioenergy
ABENGOA Bioenergy Percentage of Total Revenues ¤ 2006 Review 17,8% Highlights Revenue and Gross Cash Flow Margin ; 476.2 M € of revenues, a 21.3% increase: 11.2% 10.5% ; Higher sales prices in both the EU and US markets. ; Volume increase in the EU market due to the start up of 392,7 476,2 Biocarbur
Slide 33: Bioenergy
ABENGOA Bioenergy ¤ 2006 Review Percentage of Total Revenues United States 17,8% ; Ethanol sales volume reached 102.0 million gallons against 100.4 million gallons in 2005 (+2%) Revenue and ; Ethanol price: average 2006 1.75 US$/gall vs. 1.43 US$/gall in 2005 Gross Cash Flow Margin (+22%) 11.2% 10.5
Slide 34: Environmental Services
ABENGOA Environmental Services With wastes... we produce new materials by recycling, and we also treat and desalt water to achieve a sustainable globe 34
Slide 35: Environmental Services
ABENGOA Environmental Services Percentage of Total ¤ 2006 Review Revenues Highlights 20,7% ;Revenues (555.3 M €) increase by 38.0%: Revenue and Gross Cash Flow Margin 10.0% 10.5% ; Aluminium: Higher volume and prices 555,3 ; Environmental Engineering: increase of activity. 402,4 ; Steel dust: consol
Slide 36: Information Technologies
ABENGOA Information Technologies With Information Technology… we transform data into knowledge, providing effective operational and business real-time decision making for traffic, transport, energy and environment 36
Slide 37: Information Technologies
ABENGOA Information Technologies ¤ 2006 Review Percentage of Total Revenues Highlights 17,8% ;The sales figure for 2006 reached 476.3 M €, which is a 31.4% increase on 2005. This increase is essentially due to the organic growth of the activity. Revenue and Gross Cash Flow Margin 9.2% 8.9% ; Energy:
Slide 38: Industrial Engineering and Construction
ABENGOA Industrial Engineering and Construction With engineering... we construct and operate conventional and renewable energy power plants, power transmission systems and industrial infrastructures 38
Slide 39: Industrial Engineering and Construction
ABENGOA Industrial Engineering and Construction Percentage of Total Revenues ¤ 2006 Review 43,7% Highlights Revenue and Gross Cash Flow Margin ; Revenues reached 1,169.4 M €, which is a 35.1% increase on the 11.8% previous year. 11.4% ; Contribution from energy (Solar and Ethanol) and installations
Slide 40: Industrial Engineering and Construction: Significant Contracts
ABENGOA Industrial Engineering and Construction Percentage of Total Revenues ¤ List of Significant Contracts 43,7% ; Transmission Lines Concession in Brazil, December 2006 (250 M €) Revenue and Gross Cash Flow Margin ; Electric interconnection system, the Countries of Central America (89 M€) 11.8% 1
Slide 41: Solar
ABENGOA Solar With the sun…we produce thermoelectric and photovoltaic electric energy 41
Slide 42: Solar: 2006 Milestones
ABENGOA Solar ¤2006 Milestones ; Construction completed on the first 10 Mw commercial solar thermal generation unit (central receiver) ; Start of construction of 20 Mw central receiver ; Management Team completed ; R&D Team ; The Sevilla PV plant, the largest commercial photovoltaic solar energy pow
Slide 43: Conclusion: Keys for 2007
ABENGOA Conclusion Keys for 2007 Environmental Environmental Information Information Industrial Industrial & & Eng. Eng. Solar Solar Bioenergy Bioenergy Services Services Technologies Technologies Construction Construction - Construction: Start-up of Ravenna (85 Mgall) Organic Growth Solar and Ethan
Slide 44: Agenda
ABENGOA Agenda 1. About Us 2. 2006 Highlights 3. 2006 Detailed Financial Analysis 3.1. Consolidated 3.2. Business Unit 4. Solar 5. Q&A 44
Slide 45: Solar Energy
ABENGOA Solar Energy Abengoa is one of the worldwide pioneers in grid connected Solar energy with experience in both main C.S.P. technologies (trough and central receiver) and in PV With the sun…we produce thermoelectric (C.S.P.) and photovoltaic electricity 45
Slide 46: Our beliefs
ABENGOA Our beliefs • We all need solutions to deliver Clean Electricity • Solar Energy is and will be one of the solutions: – Proven CSP technologies can provide in some regions dispatchable clean energy in large plants at a cost competitive with peak power in the mid term – PV can provide everywhe
Slide 47: Solar Energy
ABENGOA Solar Energy 25-31 Oct 2003 47
Slide 48: CSP Technologies
ABENGOA CSP Technologies CSP troughs CSP dishes CSP towers 48
Slide 49: A CSP Plant
ABENGOA A CSP Plant Well known power block technology Can scale up to several hundred MWs Gas and storage help to deliver to the grid whenever needed 49
Slide 50: PV Technology
ABENGOA PV Technology Simpler technology Today higher cost per KWh due to low efficiency No storage 50
Slide 51: The Market
ABENGOA The Market ¾ Spain ¾ Several E.U. Countries, mainly in PV Feed-in tariff ¾ Israel ¾ Several states in the U.S. (solar or renewables) ¾ Several countries in PV Mandates ¾ Certain Asian countries Support to specific ¾ Australia projects ¾ South Africa ¾ World Bank supported projects 51
Slide 52: Demand Drivers
ABENGOA Demand Drivers The main drivers that lead the development of the Worldwide Solar energy industry: Reduction in CO2 and other emissions f 1 MW of Solar energy avoids the emission of 1 ton of CO2 when compared with a coal plant and 0,4 tons when compared with natural gas Reduction of Dependenc
Slide 53: Our Solar Energy Business
ABENGOA Our Solar Energy Business f Production of electricity using the sun’s energy through CSP or Photovoltaic technologies Business f Grid connected solar energy is an emerging market in many geographies f Abengoa is one of the pioneers in C.S.P. worldwide and a significant player in PV in Spain
Slide 54: MW CSP in Sanlucar Solar platform
ABENGOA 300 MW CSP in Sanlucar Solar platform PS-10 first PS-20, under Trough pilot Central receiver construction facility plant Solnova 1 and 3, 50MW trough technology each, start construction in 2007 54
Slide 55: Our first CSP Project: PS-10
ABENGOA Our first CSP Project: PS-10… 55
Slide 56: Now in start up phase
ABENGOA … now in “start up phase” 56
Slide 57: The first Hybrid Plant worldwide
ABENGOA The first Hybrid Plant worldwide 57
Slide 58: PV Plants
ABENGOA PV Plants First low concentration PV plant Several projects of different sizes under developments 58
Slide 59: Our R&D plans
ABENGOA Our R&D plans • Trough: 1) new structure, 2) better mirrors 1. Improve current • Tower: 1) more efficient receiver, 2) technologies high precision heliostats • Storage • Trough: Direct steam generation 2. Develop • Tower: high temperature receiver future technologies • New technologies both
Slide 60: In Summary
ABENGOA In Summary ¾Solar Energy, a desperate need and an emerging market with high growth potential ¾CSP a short term dispatchable clean and efficient solution for certain geographies ¾PV a simple technology with potential to become competitive in the mid term ¾Abengoa, a pioneer in Solar Energy wi
Slide 61: Agenda
ABENGOA Agenda 1. About Us 2. 2006 Highlights 3. 2006 Detailed Financial Analysis 3.1. Consolidated 3.2. Business Unit 4. Solar 5. Q&A 61
Slide 62: Abengoa 2006 Earnings Presentation
ABENGOA 2006 Earnings Presentation February, 27th 2007 Instituto Español de Analistas Financieros With the sun... we produce thermoelectric and photovoltaic electric energy With biomass… we produce ecologic fuels and animal feed With wastes… we produce new materials by recycling, and we also treat a