Abengoa Sa · OTC:AGOAF
Abengoa Sa — Investor Presentation (February 2012)
67 slides from Abengoa Sa's investor presentation, February 2012
Slide 1: Innovative Technology Solutions for Sustainability
Innovative Technology Solutions for Sustainability ABENGOA Corporate Presentation February 2012
Slide 2: Forward looking statements
Forward looking statements 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 wi
Slide 3: Agenda
Agenda 1 Company Overview 2 Capex Plan 3 Financial Profile 4 Appendix 3
Slide 4: Agenda: Company Overview
Agenda 1 Company Overview 2 Capex Plan 3 Financial Profile 4 Appendix 4
Slide 5: At a Glance
At a Glance Innovative solutions for sustainability Energy Environment 76% 24% 20 MW CSP Tower (Spain) 100,000 m3/day desalination plant (India) Solar CSP Biofuels Industrial waste recycling Cogeneration Desalination Power Transmission 5 Note: % 2010 revenues
Slide 6: Successful Business Model
Successful Business Model 1 E&C (Engineering and Construction) 70 years of experience in building critical energy infrastructures Proprietary know-how #1 int’l contractor in T&D* 2 Concession-Type Infrastructures Solar, Power Transmission, Desalination, Cogeneration Limited demand/price ri
Slide 7: E&C Business Model: Value creation and requirements
E&C Business Model Description Value creation and requirements Projects Projects promoted promoted by by EPC EPC Margin Margin External customers, customers, won won through through Positive Positive working working capital capital competitive competitive process process O&M Margin Projects Projects
Slide 8: Integrated Business Model
Integrated Business Model Integrated business model allows for strong returns… Opportunistic Returns in an integrated business model asset rotation Equity IRR 10 -15% Concession Concession EPC EPC O&M O&M* Asset Asset Rotation Rotation Total Total Return Return Standalone Know-how Increasingly
Slide 9: Asset rotation
Asset rotation Ability to generate cash flow at corporate level from successful asset rotation strategy Recent examples of asset rotation November 2009 Information Sale of 20% of Telvent in public offering in two tranches Technology Cash proceeds (and reduction of corporate net debt): 119 M€ IRR:
Slide 10: Business Diversification
Business Diversification Growth in all segments for both Q3 and 9M Revenues* 9M 2011 EBITDA* 9M 2011 E&C Concession-Type Infrastructures 48% 45% Industrial Production 7% (M€) FY’09 FY’10 9M’10 9M’11 Var% FY’09 FY’10 9M’10 9M’11 Var% E&C 1,683 2,302 1,639 2,156 +32% 227 259 172 264 +53% Concession-ty
Slide 11: Geographic Diversification
Geographic Diversification A truly global business Revenues 9M 2011 Geographies 17% E&C Brazil Rest of Latin America 4% Concessions Spain Asia & Oceania 3% Industrial Production Rest of Europe Africa 8% E&C US 2% Concessions 14% Industrial Production E&C Concessions Industrial Production 11
Slide 12: EBITDA growth target
EBITDA growth target Solid foundation to improve operating and cash flow profile 2013 Engineering and Construction Concession-Type Infrastructures Industrial Production 2010* ~28% ~34% EBITDA (M€) 2000 29% ~38% 45% 22% E 1,400 M€ 26% 8% 70% 812 M€ 126 M€ 12 *Excl. Telvent
Slide 13: High Revenue Visibility
High Revenue Visibility Estimated Conversion to Revenues (M€) Q4 2011e 2012e 2013e ≥ 2014e Sep. 2011 E&C Backlog at Sep 11 represents 2.6x 12M of E&C revenues 7,529* 46% of backlog from emerging markets E&C Backlog (1) 270 7,259 35,665 34,225 Concession-type Asset based, recurring revenues Indus
Slide 14: Agenda: Capex Plan
Agenda 1 Company Overview 2 Capex Plan 3 Financial Profile 4 Appendix 14
Slide 15: Timeline: Main Projects in Execution
Timeline: Main Projects in Execution As of Sep. 30 ‘11 Expected Fully 2011 2012 2013 2014 Location Capacity Start Up Funded? SPP1 Hassi R'Mel - Algeria 150 MW 51% Q2 11 Helioenergy 1 Écija - Spain 50 MW 50% Q3 11 Helioenergy 2 Écija - Spain 50 MW 50% Q1 12 Solacor 1-2 Cordoba - Spain 50 MW
Slide 16: Capex Plan
Capex Plan Commitment to invest only when financing is in place Capex Breakdown by Asset Type Capex Breakdown by Financing Source M€ 2,888 M€ 1,249 2,413 921 2,413 360 327 103 2,892 136 60 4,468 1,193 4,468 1,193 730 730 132 132 Our 4.5 B€ capex plan is identified and Capex plan financing and commit
Slide 17: Capex Plan: financing secured
Capex Plan: financing secured Capex Plan financing fully secured through a balanced mix of sources Date of Financial Project Finance Facility Size and Projects Financial Institution Close Maturity Currency Solar Helioenergy 1 Commercial Banks May 2010 20 Years 158 M€ Helioenergy 2 Commercial Banks 2
Slide 18: Asset Portfolio
Asset Portfolio Significant capacity increase when completing capex plan Concession type infrastructures Industrial Production Solar (MW) Transmission (km) Biofuels (Ml/year) 1,503 3,215 8,831 4,928 3,903 3,903 Sep 2011 E2013/14 Cogeneration (MW) Desalination (Ml/day) Recycling (Mt/year) 970 693* *
Slide 19: Agenda: Financial Profile
Agenda 1 Company Overview 2 Capex Plan 3 Financial Profile 4 Appendix 19
Slide 20: Reinforced Capital Structure
Reinforced Capital Structure Improving capital structure from corporate transactions Sep Sep Sep 2011 M€ 2010 (1) 2011 Pro forma(3) Corporate Debt 4,524 4,778 4,778 Corporate Cash, Equiv. & STFI (1,914) (2,493) (3,249) Total net corporate debt 2,610 2,285 1,529 N/R Debt 3,440 4,910 4,910 N/R Cash Eq
Slide 21: Debt Maturity Profile
Debt Maturity Profile Sound maturity profile and liquidity position Corporate Debt Maturity September 30, 2011 pro-forma (M€) Reinforced balance sheet structure and 3,249 strong liquidity level Capex needs Convertible Bonds Highly diversified funding sources and Corporate Debt limited interest e
Slide 22: Detail of corporate debt Q3 2011
Detail of corporate debt Q3 2011 Outstanding amount (M€) Ranking Maturity Spread / Coupon as of 30/09/2011 Corporate Recourse Debt: Bank Debt Syndicated Loan 2005 Senior Unsecured July 12 Euribor + 67.5 bps 167 Syndicated Loan 2006 Senior Unsecured July 12 Euribor + 67.5 bps 100 Syndicated Loan 2007
Slide 23: Financial Priorities
Financial Priorities 1 Disciplined capex plans – only invest once long-term funding and off-take contracts are secured Balanced financing sources – bank debt, bonds, project Reinforce financial finance, partners and share capital increase structure Raise equity at project level to re
Slide 24: Financial Objectives
Financial Objectives 2011 Guidance 1 Guidance for 2011 Revenues to 6,800 M€ - 6,900 M€ Guidance for 2011 EBITDA to 1,040 M€ - 1,060 M€ 1 2013 EBITDA Target of 1,400 M€ Mid-term Increase recurrency of revenues and cash flows Objectives Positive free cash flow generation (pre interest) at
Slide 25: Agenda: Appendix
Agenda 1 Company Overview 2 Capex Plan 3 Financial Profile 4 Appendix 25
Slide 26: Business Overview
1 Business Overview 2 Other 26
Slide 27: Engineering and Construction
Agenda Engineering and Construction 27
Slide 28: Highlights
Highlights 70 years of experience in carrying out turnkey projects, covering the full life cycle (EPC & Maintenance) Local presence in 32 countries with an extensive customer base Landmark projects in power and environment Opportunity to grow in current and new geographies and leverage on capabiliti
Slide 29: Capabilities
Capabilities 70 years of experience in carrying out turnkey projects Energy Environment Other Power transmission lines Water infrastructures and Industrial plants Conventional generation desalination plants plants (combined cycle, co- generation, repowering) Electrical and mechanical insta
Slide 30: Risk Management
Risk Management Obsessive risk management procedures resulting in margin stability At bidding phase At execution phase Effective monitoring to guarantee: Skills Contract terms On Schedule Technology Suppliers On Budget Processes Customer Performance Requirements Margins have remained healthy across
Slide 31: E&C model
E&C model Our E&C model consists of a virtuous cycle combining external and internal projects E&C know-how gained in …allows us to reduce risks in external projects… internal projects Step 1 Step 2 HV transmission line Cogeneration plant HV transmission line Bioethanol plant Step 3 Internal referenc
Slide 32: Growth Opportunities
Growth Opportunities Opportunity to grow in current and new geographies Impressive GDP growth expected at +5% for the next years Large investment plan associated with Olympic Games and World Cup Abengoa’s strong local position (16% of total Abengoa revenues) GDP growth expected at 4-5% for t
Slide 33: Concession-Type Infrastructures
Agenda Concession – Type Infrastructures 33
Slide 34: Transmission Lines
Agenda Transmission Lines 34
Slide 35: Highlights
Highlights Transmission is a key element in the electric system and in some regions is open to private investors Low risk business with attractive and stable returns Abengoa posseses a differentiated business model with potential for value creation Current leadership position in Latam Clear opportun
Slide 36: Transmission Concession Features
Transmission Concession Features Transmission concessions offer low risk business with attractive and stable returns Profitability Limited & Controlled Risk Target equity IRR 10% - 15% on Economic terms of the concession agreed concessions at tender and protected by regulatory regime Recurrent
Slide 37: Abengoa's Footprint in Latam
Abengoa’s Footprint in Latam 7000 6000 9,388 km of transmission concessions in Brazil, Chile and Peru, with an average remaining life of 23 years 5000 4000 Peru Brazil Greenfield (*) 3000 2,001 km 7,082 km Under construction 7000 108 In operation 2000 900 (*) Concession has been awarded. 6000 1000 W
Slide 38: Solar
ABENGOA sont Solar 38
Slide 39: Highlights
Highlights CSP market is growing The CSP advantage is based on dispatchability, cost reduction potential and choice of preference for utilities Abengoa´s leadership lies on integrated business model of Technology & Project Developer + Asset Operation Asset portfolio of 3.5 GW 39
Slide 40: What is CSP?
What is CSP? Solar Tower Solar Trough 40
Slide 41: CSP advantages
CSP CSP has fundamental advantages over other renewable alternatives 1 Mature & commercially viable technologies 2 High cost reduction potential 3 Dispatchable renewable energy source 4 Hybridation with conventional power 5 Utility-scale power generation 41
Slide 42: Market Growth
Market Growth CSP demand is growing rapidly from a low base… 20 - 30 GW 2010-2020 Potential Phase 1 Spain is a pioneer in the 4-5 GW CSP sector CAGR 30-40% Phase 2 US will contribute 10-15 GW 12 GW to consolidate CSP Mainly in the US and Spain Phase 3 CSP will become 10-15 GW global 0.3 GW 0.4 GW 1.
Slide 43: Market Growth: regulatory frameworks
Market Growth ..supported by regulatory frameworks Feed in tariff Special regime for CSP, reconfirmed in February 2012 Right to sell all the energy produced at any time and at a certain tariff or premium over the pool price Renewable Portfolio Standard (RPS): Obligation for utilities to produc
Slide 44: Business Model (I)
Business Model (I) Technology & Project Developer + Asset Operation Develop technology and key components for internal and third-party use Technology development is key to be competitive in the mid-term in an emergent industry like CSP Key to secure good partners Incremental value creation by
Slide 45: Water
ABENGOA sont Water 45
Slide 46: Business Overview
Business Overview Maintaining world leadership in the desalination business (E&C, Concessions, and O&M), Managing our assets in property and expanding our activity within the water sector to treatment (W&WW) & Reuse & Industrial & Distribution Developing water projects in Concession Strong investmen
Slide 47: Business Overview: Expertise in Operation
Business Overview Expertise in Operation: Abengoa Water is also operating a total capacity of 375,000m3/day Desalination: Bajo Cartagena Almeria Skikda Chennai Almanzora 65,000 m3/d 50,000 m3/d 100,000 m3/d 100,000 m3/d 60,000 m3/d SWRO SWRO SWRO SWRO SWRO Spain Spain Algeria India Spain 47
Slide 48: Geographically Diversified Water Business
Business Overview Abengoa’s Water Business is Highly Geographically Diversified Presence in 17 countries North America with normal operation through representative & MEA & North Africa comercial offices developing water projects Spain United Arab for EPC or BOOT. USA Morocco Algeria Emirat
Slide 49: Industrial Production
Agenda Industrial Production 49
Slide 50: Bioenergy
ABENGOA sont Bioenergy 50
Slide 51: Highlights
Highlights Biofuels demand is growing worldwide and supply-demand unbalance is shifting Abengoa posses a unique 1G ethanol platform that has yield stable margins over time Abengoa plans on leveraging its 1G platform and 2G proprietary technology to become one of the leaders in 2G 51
Slide 52: Ethanol market
Ethanol market Expected +10% CAGR ethanol demand in all markets though 2020, supported by energy security and sustainability Ethanol demand (BGY) 36 17 4 4 13 6 1 1 2010 2022 2010 2020 2010 2020 2010 2020 Drivers Legislation: Legislation: Population RED (10% renewable RFS (36 BGY in 2022) En
Slide 53: Global footprint
Global footprint Strong position through diversification Biofuel capacity = 380 MGY Biofuel capacity = 395 MGY Feed capacity = 980 KTY Feed capacity = 885 KTY York, NE Colwich, KS Evansville, IN Cartagena, Sp Coruña, Sp San Roque, Sp Europe Ravenna, NE Portales, NM Granite city, IL Salamanca, Sp Lac
Slide 54: 1G and 2G synergies
1G and 2G synergies Synergies of merging 1G & 2G result in significant cost savings (10-15 $cent/gal) 54
Slide 55: Recycling
ABENGOA sont Recycling 55
Slide 56: Highlights
Highlights Market leaders in niche recycling markets Resilient business with proved track record Unique business model sustains high profitability Clear and sound growth strategy: existing markets recovery and new markets 56
Slide 57: Business Description
Business Description European leader in niche recycling markets +47% market share in European steel dust recycling Recycling Revenues (2010) 9% Total recycling capacity: 550,000 tons of steel dust Total market in Europe: approx. 1.1 million tons 36% 55% +60% market share in European aluminium sa
Slide 58: Business Model
Business Model Integral service for collection, treatment and recycling of steel dust Steel Dust Steel Sale (€) Waelz Zinc Industry – Dust Abengoa Oxide Producers Mini Mills Residues Collection / Service fee Sale of Waelz oxide (with high concentration of zinc) to Zinc Producers ~20% of Steel Du
Slide 59: Hedging Policy
Hedging Policy As a result of existing hedging contracts and collection fees, Abengoa’s recycling activities have visibility of near term revenues The price of WOX is linked to the zinc price in the LME market Abengoa’s policy consists on hedging c.70% of volume for 24-36 months Zinc Contained i
Slide 60: Aluminium and Salt Slag Recycling
Aluminium and Salt Slag Recycling Present in secondary aluminium production / recycling as well as salt slag recycling focused in the European Market ABENGOA Aluminium Scrap Secondary Aluminium Aluminium Products Production / Recycling Salt Slag Hazardous Waste Recovered Aluminium ABENGOA Salt Slag
Slide 61: Business Overview
1 Business Overview 2 Other 61
Slide 62: Concession-type Infrastructure: Balanced Asset Portfolio
Concession-type Infrastructure Balanced Asset Portfolio(1) Asset Portfolio (September 2011) Under Total Non Operating Construction Gross Net ABG Recourse (M€) (Gross) /Developmet Assets Assets(2) Equity Net Debt Partners Transmission 1,010 977 1,987 1,909 816 987 106 CSP 1,502 1,155 2,657 2,546 863
Slide 63: E&C Backlog
E&C Backlog Solid backlog, well diversified, provides revenue visibility Backlog (M€) By Internal / External client EPC work awarded by third party External customers in competitive processes 28% External As above, with equity contribution with Equity generally limited to EPC margin 4% 7,808 7,529 6
Slide 64: Capex Committed by segment (I)
Capex Committed by segment* (I) Total Q4 2011 Total Total ABG ABG Abengoa Entry in Investment Pending Partners Debt Pending Partners Debt Corporate Corporate Committed (M€) Capacity (%) Country Operation Capex Capex Solar 5,256 2,888 615 34 2,239 638 109 18 511 Algeria 150 MW 51% Algeria Q2 11 318 H
Slide 65: Capex Committed by segment (II)
Capex Committed by segment* (II) 2012 2013 2014 Total Total Total ABG ABG ABG Pending Partners Debt Pending Partners Debt Pending Partners Debt Corporate Corporate Corporate Committed (M€) Capex Capex Capex Solar 1,541 372 16 1,153 577 90 487 132 44 88 Algeria Helioenergy 1 and 2 Solacor 1 and 2 36
Slide 66: Comparables
Comparables Engineering and Construction Concession-type Infrastructures Industrial Production 66
Slide 67: Thank you
Innovative Technology Solutions for Sustainability ABENGOA Thank you