Cox Abg Group Sa · BME:COXG
Cox Abg Group Sa — Coxgroup — Investor Presentation (July 2024)
120 slides from Cox Abg Group Sa's investor presentation, July 2024
Slide 1: Corporate Presentation July 2024
Corporate Presentation July 2024
Slide 2: Disclaimer
Disclaimer IMPORTANT: Please read the following before continuing. THIS PRESENTATION IS IN SUMMARY FORM AND MUST NOT BE RELIED UPON FOR ANY PURPOSES. This document has been prepared by, and is the sole responsibility of, Cox ABG Group, S.A. (“Cox” or the “Company” and, together with its subsidiaries
Slide 3: Introduction
a : F — —, Introduction
Slide 4: Coxgroup at a Glance
Coxgroup at a Glance Vertically Integrated Utility with Innovative Solutions Around Water and Energy Operating Financial(2) Overview Key Figures • Coxgroup (the “Company”) is a vertically integrated utility of Water and 7 Operating Concessions/Projects(1) c.€581m Revenues 2023A(2) Energy focused on
Slide 5: International Presence Coupled with On-the-Ground Expertise
International Presence Coupled with On-the-Ground Expertise Geographic Footprint MENA, Americas and South Africa as core strategic areas Agadir Core strategic areas linked to: SPP1 (1) water infrastructure demand and (2) fast-growing markets for energy Presence in other countries mainly through Accr
Slide 6: Combination of Cox Energy Expertise with Abengoa Key Assets and Concessions
Coxgroup: Combination of Cox Energy Clean Energy Expertise with Abengoa Key Assets and Concessions Capabilities + = Energy Water (Development and Asset Management) (Development and Asset Management) Vertically Integrated Utility Services Energy (Development and Asset Management) with Innovative Solu
Slide 7: Synergistic Business Divisions at the Core of Environmental Transition
Synergistic Business Divisions at the Core of Environmental Transition Water Clean Energy Transmission Generation International operator Following the integration Synergetic with energy Overview with water desalination with Abengoa, presence division due to water plants’ • Electric transmission & di
Slide 8: Simplified Corporate Structure of the Issuer
Simplified Corporate Structure of the Issuer Entities majority owned by Enrique Riquelme, • Current Coxgroup shareholder structure Executive Chairman of Coxgroup (shareholders) consists of: Enrique Riquelme Vives Zardoya Family HNA • ERV: includes stakes held by Inversiones Riquelme Vives, S.L.: 72.
Slide 9: Strategy Built Around Two Main Pillars of Sustainability
Strategy Built Around Two Main Pillars of Sustainability Water and Clean Energy (Transmission, Generation and Behind the Meter) Sustainability is Coxgroup’s DNA… … reflected in its business model Ensuring availability of water Making cities and human and its sustainable management settlements inclus
Slide 10: Coxgroup Strategic Focus
Coxgroup Strategic Focus Today Strategy 1 Strategy Vertically integrated utility across renewable technologies in Focus on build-to-own strategy across water and energy fast growing markets (except in mature Spanish energy market) 26%(1) 66% (1) 9% (1) €103m 2 EBITDA EBITDA(2) 2023 Water Energy Gene
Slide 11: Key Investment Highlights
Key investment Highlights
Slide 12: Coxgroup Key Investment Highlights
Coxgroup Key Investment Highlights Clean Energy Transition Company, Vertically Integrated with Innovative Solutions Around Water and Energy • Growth potential underpinned by critical population needs and narrow competitive landscape Experienced 1 • Three long-term cash flow generative concessions wi
Slide 13: Experienced Operator in Fast Growing Water Markets
1 Experienced Operator in Fast Growing Water Markets Presence in fast-growing market Experienced Team Attractive Portfolio of Concessions 3 Global Desalination Market Expected >55 years Operating to Double by 2030… of track record Concessions + Expansion rights (€bn) 2030E 30(9) 9.5% c.x2 23A-30E CA
Slide 14: International Transmission & Generation Player with Proven Track Record
2 International Transmission & Generation Player with Proven Track Record Across the Entire Energy Value Chain Generation Transmission 1 Experienced player in asset development, >1GW c.1.3GW 683MW >31k km >330 construction and #PPA signed/ Sold in asset Transmission lines Substations built Brought R
Slide 15: Premium Engineering Capabilities Across Water & Energy Sectors
3 Premium Engineering Capabilities Across Water & Energy Sectors Engineering (track record) O&M (ongoing contracts) Desalination 40 desalination plants-built 535k m3/day 4 contracts (1 for third party) Water of desalination Water Waste >55 years of experience in water, with 282 projects & Treatment
Slide 16: Two Main Sources of Synergies from Combining Water & Energy
4 Two Main Sources of Synergies from Combining Water & Energy Sustainable projects Water & Energy Highly Complementary Sectors Energy as main OpEx item of water concession Energy cost as key driver of water tariff: one water concession may unlock a new generation project (and potentially transmissio
Slide 17: Financial Profile Positioned to Capture Growth
5 Financial Profile Positioned to Capture Growth 2023 Key Financial Highlights Cash Flow Conversion (€m) Capital Structure Gross Debt by Vertical €581m Group Revenues of which 70% from Services EBITDA (1) 103 Corporate Debt(3) 22% €103m/ 31 Change in Working Capital Group EBITDA / €280m 18%(1) 2023A
Slide 18: Highly Experienced Industry Team Across All Verticals
6 Highly Experienced Industry Team Across All Verticals Years of Experience Years at Cox/Abengoa Management Leadership Corporate Functions José Olivé Enrique Riquelme Nacho Moreno CFO Executive Chairman CEO 31 <1 15 15 28 <1 Javier García Head of Corporate Strategy Water Energy 12 8 Pablo Infante He
Slide 19: Water
Water
Slide 20: Water: Key Growth Pilar for Cox Group
Water: Key Growth Pilar for Cox Group Sizeable market opportunity in a highly attractive, sustainable and essential market (“water is the new oil”) Narrow competitive landscape in which Coxgroup is well placed to secure new concessions ▪ Significant number of client certificates from >55 years of ex
Slide 21: Water Market: Fresh Water is an Essential and Scarce Resource
Market Overview EPC Water Operating Portfolio Water Strategy Water Market: Fresh Water is an Essential and Scarce Resource .. with population growth putting further Fresh water is very limited, accounting …and its supply has steadily decreased pressure as more food is needed and farming for only c.
Slide 22: Market Boom in the Past 20 Years
Market Overview EPC Water Operating Portfolio Water Strategy Market Boom in the Past 20 Years Desalination Water Treatment Water Desalination treatment market has has also accelerated been as key growing solution for at an water increasingly scarcity…(1) fast rate…(1) Annual Freshwater Withdrawals 2
Slide 23: Market Expected to Continue Growing on the Back of Strong Government Support
Market Overview EPC Water Operating Portfolio Water Strategy Market Expected to Continue Growing on the Back of Strong Government Support Desalination Water Treatment (€bn) (€bn) Today Global Desalinization Equipment Market Global Water Treatment Systems Market Global Water Global Treatment Desalina
Slide 24: Enhanced Value Creation Opportunity from combining Water & Energy
Market Overview Operating Portfolio Water Strategy Enhanced Value Creation Opportunity from combining Water & Energy Energy cost as key driver of water tariff in desalination Securing 1 water concession unlocks multiple value creation routes Total Water Cost (CapEx + OpEx) 100% Water Project Consuma
Slide 25: Understanding Coxgroup Positioning Within the Full Water Cycle
Market Overview Operating Portfolio Water Strategy Understanding Coxgroup Positioning Within the Full Water Cycle Key Considerations Public Client Private Client • Combination of drinking, Coxgroup targets stable regulatory frameworks irrigation and industrial consumption • Large projects subject •
Slide 26: Understanding the Water Project Life Cycle
Market Overview Operating Portfolio Water Strategy Understanding the Water Project Life Cycle Find local partner is key: High Barriers to Entry • Provides access to local stakeholders • Engages in financing discussions ✓ Track record in lowering cost of capital ✓ Client certificates required to • Pr
Slide 27: Today's Water Concessions
Market Overview Operating Portfolio Water Strategy Today’s Water Concessions: c. €29m EBITDA with State-Owned Counterparties Agadir: largest desalination plant in Africa(1) Accra ( Morocco) ( Ghana) 275,000 m3/day reverse osmosis desalination plant in Agadir, 60,000 m3/day ultrafiltration plus rever
Slide 28: Agadir Expansion & Energy Project Case Study
Market Overview Operating Portfolio Water Strategy Agadir Expansion & Energy Project Case Study Agadir Extension Details Agadir >50k m3/day c.€100m(1) >75k m3/day Drinking Expected Irrigation Water Investment Water Extension brought forward from 2030 to 2024 given 80% AEB: €11.5m(2) June/July urgent
Slide 29: Well Defined Competitive Advantages to Win New Concessions
Market Overview Operating Portfolio Water Strategy Well Defined Competitive Advantages to Win New Concessions Coxgroup Pioneer Track Record in the Track Record Delivering Recognised Client Certificates Posing a Barrier to Vertical Integration In-House Experienced Team Water Sector Concessions (Selec
Slide 30: Significant Market Share Across Selected Key Markets
Market Overview Operating Portfolio Water Strategy Coxgroup Has Significant Market Share Across Selected Key Markets Track Record in Strategic Countries Upcoming Tenders in Strategic Countries Total Country Total Capacity % of total Gov. Committed Total Capacity Tendered Total Project Amount up Pres
Slide 31: Sizeable Identified Opportunities Across Middle East, North Africa and Americas
Market Overview Operating Portfolio Water Strategy Sizeable Identified Opportunities Across Middle East, North Africa and Americas Key Considerations Identified Opportunities(1) Coxgroup’s project selection criteria are mainly i) country, ii) client, iii) technological challenge and iv) Africa compe
Slide 32: Well-Identified Near Term Water Concession Opportunities
Market Overview Operating Portfolio Water Strategy CoxGroup Has Well-Identified Near Term Water Concession Opportunities 2024 2025 SWRO ▪ Set of potential financial partners well identified Nador WWTP ▪ Most suitable partner will be chosen once the launch date Cusco ▪ Meeting with Cuzco authorities
Slide 33: Energy
Energy
Slide 34: Energy: Vertically Integrated Utility in Fast Growing Renewables Markets
Energy: Vertically Integrated Utility in Fast Growing Renewables Markets Vertically integrated utility across renewable technology in fast growing markets Presence across entire energy value chain Transmission Longstanding track-record (>31k kms and 330 substations built) with competitive advantages
Slide 35: Vertically Integrated Utility with Presence in Fast Growing Clean Energy Markets
Coxgroup: Vertically Integrated Utility with Presence in Fast Growing Clean Energy Markets Coxgroup is present across the full energy value chain Transmission Lines & Substations 1 c.8,400 km & c.64 Substations Generation Awarded Transmission Concession Identified opportunities(3) 3.6GW 4 Gross Oper
Slide 36: Transmission Concession: Simple Financial Profile
Transmission Lines & Substations Generation Behind the Meter Transmission Concession: Simple Financial Profile with Limited Operational Complexity Transmission Lines Require Maintenance and Substations Key Aspects of Concessions Require Operation and Maintenance 25-30 years (including Tenor construc
Slide 37: Variety of Barriers to Entry Limit the Competitive Landscape
Transmission Lines & Substations Generation Behind the Meter Variety of Barriers to Entry Limit the Competitive Landscape Barriers to Entry Description Key Performance Indicators • Key variable to participate in new auctions (part of technical requirements) >50 31,000km 330 Client Certificates • Als
Slide 38: Few Transmission Concession Markets Worldwide
Transmission Lines & Substations Generation Behind the Meter There Are Only a Few Transmission Concession Markets Worldwide, and Coxgroup Has Presence Across the Key Ones Key Considerations Identified Opportunities(1) Limited countries permit concession- Australia based transmission; typically, the
Slide 39: Well-Identified Near Term Transmission Concession Opportunities
Transmission Lines & Substations Generation Behind the Meter Coxgroup Has Well-Identified Near Term Transmission Concession Opportunities 2024 2025 Leilao 002.2024 PPP New • Partnering FCC to be included in the consortium led by • 5 lots with a total 990km, including OHL and SS in 230kV and Plenary
Slide 40: Brazil Concession Case Study
Transmission Lines & Substations Generation Behind the Meter Brazil Concession Case Study: Why Coxgroup is Well Placed to Win Concessions Lot 10 in Sao Paulo, Brazil Geographical Overview • Located in Sao Paulo State, Lot 10 of Leilão 01/24 Awarded • Awarded by the Brazilian National Electric Energy
Slide 41: Experienced Operator Across Multiple Clean Energy Technologies
Transmission Lines & Substations Generation Behind the Meter Experienced Operator Across Multiple Clean Energy Technologies Hybridization Solar Bioenergy Thermal Energy Solar Power Sao Joao Plant 1 (SPP1)(1) Capacity: 70MW(6) Capacity: 150MW(4) % Ownership: 100% % Ownership: 51% Solar Thermal Energy
Slide 42: Experienced Project Operator Across Multiple Clean Energy Technologies
Transmission Lines & Substations Generation Behind the Meter Experienced Project Operator Across Multiple Clean Energy Technologies The group currently operates 4 projects (KHI project transaction is currently pending local regulatory approvals) PV Solar Thermal Energy / Hybridization with Solar The
Slide 43: Sizeable Renewable Energy Generation Pipeline with Near Term Visibility
Transmission Lines & Substations Generation Behind the Meter Sizeable Renewable Energy Generation Pipeline with Near Term Visibility: c.38% of Gross Capacity RtB by 2025(1) In operation & Advanced Under construction Backlog Development Development Total Solar PV pipeline Development Pipeline: 3.6GW
Slide 44: Generation Strategy is Predicated in Three Pillars
Transmission Lines & Substations Generation Behind the Meter Coxgroup Generation Strategy is Predicated in Three Pillars 3 main synergies 1.a 1 a Energy follows • Turning water concessions into sustainable projects 906 906 • Energy optimizing water tariff (energy is main OpEx item for water concessi
Slide 45: c.340MW Backlog: Distributed Generation in Chile and Sol de Vallenar
Transmission Lines & Substations Generation Behind the Meter c.340MW Backlog(1) Comprising: (1) Distributed Generation in Chile 1 b a and (2) Sol de Vallenar Project 2 3 El Sol de Vallenar PMGD Gross Attributable Gross Attributable Capacity Capacity Capacity Capacity (MW) (MW) Ownership RtB COD Cons
Slide 46: Advanced Development Pipeline: c.1.0GW
Transmission Lines & Substations Generation Behind the Meter Advanced Development Pipeline: c.1.0GW(1) Gross Pipeline Mainly 1 b a Across Chile, Mexico and Colombia 2 3 Advanced Gross Capacity Attributable Capacity Ownership RtB COD Considerations Development AMERICAS (MW) (MW) 1.a Asset Definition
Slide 47: Development Pipeline (1/2): Located Next to Existing Projects
Transmission Lines & Substations Generation Behind the Meter a Development Pipeline (1/2): c.48% Located Next to Existing Projects… 1 b 2 3 Development Gross Attributable Capacity Capacity Ownership RtB COD Considerations ▪ Captive projects comprising AMERICAS (MW) (MW) two categories: 1.b ▪ Energy
Slide 48: Development Pipeline (2/2): Selective Development and Asset Rotation
Transmission Lines & Substations Generation Behind the Meter Development Pipeline (2/2): …Complemented by Opportunities and 1 b a Asset Rotation Selective 2 3 Gross Attributable Capacity Capacity Ownership RtB COD Considerations Development Guatemala AMERICAS (MW) (MW) Chiquimulilla 50 50 100% 2024
Slide 49: China Three Gorges Agreement: c.335MW of Solar PV Projects to be Sold
Transmission Lines & Substations Generation Behind the Meter China Three Gorges Agreement: c.335MW of Solar PV Projects 1 b a to be Sold up to 2026, De-Risking Exposure to Spain 2 3 Expected Gross Installed Project Installed Capacity (MW) Status Solar PV Projects Locations Project Category RtB CoD C
Slide 50: Profitable Commercialization Business Across 4 Main Geographies
Transmission Lines & Substations Generation Behind the Meter Coxgroup has a Profitable Commercialization Business Across 4 Main Geographies Key KPIs Geographical Footprint Strategy 19 • In 2023, 215GWh were commercialized 300MW 19MW 13 Spain • Intercompany PPAs to capture customer and unlock Equival
Slide 51: Services
Services
Slide 52: Engineering: Ability to Deliver International Projects for Third Parties
Coxgroup Engineering: Ability to Deliver International Projects for Third Parties Across Key Water, Transmission & Generation Technologies Experience in international projects in fast growing water, energy generation and transmission markets Focus on value added engineering solutions with healthier
Slide 53: Full Technological Capabilities Across Water, Transmission & Energy Generation
Full Technological Capabilities Across Water, Transmission & Energy Generation Engineering and Procurement W Water T Energy Transmission G Energy Generation O Other Focus also in construction • Engineering platform with synergistic transfer of technical know-how through Installation and verticals: M
Slide 54: Focus on "E" & "P" with "C" Only for Transmission Projects
Focus on “E” & “P” with “C” Only for Transmission Projects Coxgroup outsources the construction to local partners in water and energy generation to optimize project costs and minimize risks, but retains transmission construction to optimize project timing, costs and reduce execution risk Water Trans
Slide 55: Expertise Across All Key Technologies
Water Transmission Generation O&M Expertise Across All Key Technologies Municipal Water Industrial Water Hydraulic Infrastructures Desalination Power Hydropower Plants Water Treatment Refining Oil & Gas Pipelines & Pumping Stations Waste Water Mining Irrigation Treatment and Reuse Source: Company in
Slide 56: Worldwide Experience in the Construction of Water Infrastructures
Water Transmission Generation O&M Worldwide Experience in the Construction of Water Infrastructures Spain • IWWT: 13 • DES: 10 • HI: 4 Algeria • WT: 10 • HPP: 14 • DES: 3 Libya Key KPIs USA • DES: 1 • UWWT: 10 • IWWT: 1 • DES: 1 • IWWT: 3 Mexico 4.4m 20m • DES: 1 • IWWT: 5 m3/day people Saudi Arabia
Slide 57: Deep Technical Know-How & Capabilities to Support Future Water Platform Growth
Water Transmission Generation O&M Deep Technical Know-How & Capabilities to Support Future Water Platform Growth Leading Desalination Engineering provider Experienced Team Across Technologies Top 20 Plant Suppliers by Awarded Desalination Capacity (2014-2023)(1) Our engineering team, with over 55 ye
Slide 58: Participated in 3 out of Top 10 Desalination Plants
Water Transmission Generation O&M Coxgroup Has Participated in 3 out of Top 10 Desalination Plants Top 10 Global Largest Desalination Operating Plants by Capacity(1) as Engineering provider thousands m3/day Desalination Plant of the Year Taweelah (2023) Currently the world largest World’s largest de
Slide 59: €30.0bn of Third-Party Water Engineering Opportunities
Water Transmission Generation O&M Coxgroup Has Identified Opportunities of €30.0bn of Third-Party Water Engineering Opportunities Key Considerations Identified Opportunities(1) Status of Key Upcoming Projects WWTP Guangarcucho Europe 348 identified Water Engineering Project Value $61m(2) Client ETAP
Slide 60: In-House Engineering Solutions for Transmission
Water Transmission Generation O&M In-House Engineering Solutions for Transmission Transmission Lines & Substations Steel Structures Manufacturing Transmission • Integral projects: engineering, • Manufacturing facilities with supply of materials, complete more than 80,000 m2 of assembly, cable laying
Slide 61: Long Standing Track Record in International Transmission Projects
Water Transmission Generation O&M Long Standing Track Record in International Transmission Projects Spain France Lithuania Portugal • OLE: 732km Ukraine • TL: 700km • TL: 700km • TL: 59km • TP: 14 • TL: 187km • SS: 30 • SS: 20 Key KPIs USA • TL: 70km • SS: 5 Spain France • OLE: 3.700km • OLE: 90km K
Slide 62: €20.2bn Third-Party Transmission Engineering Identified Opportunities
Water Transmission Generation O&M Coxgroup Has €20.2bn Third-Party Transmission Engineering Identified Opportunities Key Considerations Identified Opportunities(1) By Geography >€20bn of identified opportunities 3% 2% for next 12 months now 31% €20.2bn Europe 42% Overall Gross Projects Value 11% Mai
Slide 63: Experience Across All Key Energy Generation Technologies
Water Transmission Generation O&M Experience Across All Key Energy Generation Technologies Focus on projects with high requirements on technological expertise Renewables Conventional Photovoltaic Plants Solar Thermal Energy Cogeneration CCGT Traditional Electrochemical Batteries and Onshore Wind The
Slide 64: Ability to Deliver on International Projects Across Different Technologies
Water Transmission Generation O&M Ability to Deliver on International Projects Across Different Technologies Historical Geographic Footprint Track Record Africa Europe Solar PV 1.0GW Argelia Spain Built or under construction in Spain over the last 2 years Morocco France Storage Netherlands South Afr
Slide 65: €29.7bn of Third-Party Generation Engineering Opportunities
Water Transmission Generation O&M Coxgroup Has Identified Opportunities of €29.7bn of Third-Party Generation Engineering Opportunities Key Considerations Identified Opportunities(1) Status of Key Upcoming Projects Phosphate 3 • Awarded Europe Phase 1 • Signing contract 131 identified international €
Slide 66: O&M: Complementary Offering with Long Term Visibility
Water Transmission Generation O&M O&M: Complementary Offering with Long Term Visibility ✓ O&M as integral part of vertical integration strategy ✓ Coxgroup has capabilities to operate highly complex projects internationally ✓ Technological complexity of projects translate into entry barriers and high
Slide 67: O&M Geographic Footprint Focused in Spain, MENA, South Africa and Chile
Water Transmission Generation O&M O&M Geographic Footprint Focused in Spain, MENA, South Africa and Chile Spain Water Client Certificates(2) 146 Algeria Energy Client Certificates(2) 111 95 Generation 756km Morocco Renewables Conventional Hydraulic Saudi Arabia(1) Networks Ghana 46 111MW 81MW Photov
Slide 68: Diversified O&M Portfolio with Attractive Margins
Water Transmission Generation O&M Diversified O&M Portfolio with Attractive Margins & Cash Flow Visibility Key Considerations TENES CT-RSU-GUADALAJARA AIN BENI MATHAR Capacity: 200k m3/day Capacity: 100ktn/year Capacity: 472MW Technology: RO Technology: USWTP Technology: CCGT Contract 100% Contract
Slide 69: €923m of O&M Identified Opportunities
Water Transmission Generation O&M Coxgroup Has €923m of O&M Identified Opportunities Status of Key Upcoming Projects Key Considerations Identified Opportunities(1) in 2024 O&M capabilities to cover all CSP-PV PV opportunities technologies both internal and Europe 630MW worldwide for CTG, third parti
Slide 70: Financial Performance
Financial Performance
Slide 71: Financially Prepared for Its Concessions Driven Growth Plan
Coxgroup is Financially Prepared for Its Concessions Driven Growth Plan In 2023, with only 9 months since the acquisition of the operating units of Abengoa, Coxgroup has delivered EBITDA of €103m and positive cash flow generation in 2023A Flexible balance sheet (net cash position excluding project f
Slide 72: Background To The Financials
Background To The Financials Basis Of This Presentation Reporting • Reporting structured into 3 segments: • Prepared in accordance with IFRS • Water (concessions) • Fiscal year closes on December 31 • Energy (generation and transmission projects) • Services • Abengoa productive units have only been
Slide 73: Sound Financial Profile Position To Support Growth
Sound Financial Profile Position To Support Growth FY2023(1) Financials At A Glance Revenues EBITDA Operating Cash Flow Capital Structure Other services Other services (Behind the meter, Services (Behind the meter, O&M and Tech) EPC O&M and Tech) c.€37m 1.8x Energy Adjusted Operating Cash Flow (AOCF
Slide 74: Understanding Cox Group's Revenue Generation
Understanding Cox Group’s Revenue Generation Key Considerations Revenues Build up By Vertical By Geography Assets & Concessions Services 7% 0% Only 9 months of Abengoa 10% operations 8.6% 21.5% 54.6% 15.3% 100% 11% Revenue €89m €581m €581m 51% Contribution €318m 21% Not including new energy portfoli
Slide 75: High Visibility EBITDA Profile With Various Actionable Upside Levers
High Visibility EBITDA Profile With Various Actionable Upside Levers Projects EBITDA Contribution Key Considerations 47.9% 24.5% 9.1% 100% (34.2%) 65.8% 18.6% EBITDA margin Only 9 months of operations 58% 60% 12% 16% 27% 18% of Abengoa productive units Assets & Concessions c.90%(1) of EBITDA (c.70%
Slide 76: Central Cost Structure to Support Substantial Revenue Growth
Central Cost Structure to Support of Substantial Revenue Growth 2023 Medium Term Reporting in annual accounts • Central costs Increase Required comprise 4 main to Support Growth Assets & Description Total Engineering Other services categories: external Concessions services, travelling, personnel and
Slide 77: c.€400m Revenue Leads to Breakeven of Central and Corporate Costs
c.€400m Revenue in Engineering and Other Services Lead to Breakeven of 100% Central and Corporate Costs Assets & Concessions Services (EPC & Other Services) (Dec-2023, €m) (Dec-2023, €m) b 175 12 406 0 c (57) 0 104 d e 104 (126) (14) (11) 53 (54) (118) a b c d e (1) (110) Revenues Chg. In Raw Cost o
Slide 78: Working Capital Structure to Support Cash Flow Generation
Working Capital Structure to Support Cash Flow Generation in a Growing Business Shorter average Receivable days vs Payable days across all businesses Assets & Concessions Services (Engineering & Other Services) DSO(1) 30-60 49 39 37 16 21 Energy Water Avg. of Asset & Engineering Other Services Avg.
Slide 79: Flexible Balance Sheet Disciplined Capital Structure Strategy
Flexible Balance Sheet Disciplined Capital Structure Strategy Net Financial Debt Position Gross Debt/EBITDA (2023)(1) 2.7x Net Debt/EBITDA (2023)(3) 1.8x Company Target Adj. Gross Debt/Adj. EBITDA (2023)(2) 1.3x Adj. Net Debt/Adj. EBITDA (2023)(4) (0.2x) <1.0x (Dec-2023, €m) 100% 100% 280 (98) Other
Slide 80: Coxgroup Maturity Profile Offers Capital Allocation Flexibility
Coxgroup Maturity Profile Offers Capital Allocation Flexibility Coxgroup Debt Maturity Profile (Dec-2023, €m) 78.1 ▪ Ghana: Ongoing discussions around strategic alternatives 35.2 40.9 9.0(1) 8.8 8.8 18.9 18.7 18.2 18.9 8.8 13.6 11.0 14.7 9.1 9.1 9.1 9.1 9.1 8.8 8.8 8.8 8.8 2.2 8.8 8.8 8.8 8.8 2.8 2.
Slide 81: Medium Term Outlook
‘é page Medium Term Outlook
Slide 82: Water Concessions Outlook
Water Transmission Generation O&M Water Concessions Outlook Today’s Water Concessions Tangible Growth Opportunities 2024 & 2025 Further Near-Term SEDA(1) AEB(1) Accra SEDA + AEB Expansion Opportunities Opportunities Capacity • 50,000 (drinking) • ~1,407,000 (COD 2026) • Additional growth from • 150,
Slide 83: Water Concessions Addressable Market & Coxgroup Target Share
Water Transmission Generation EPC & O&M Water Concessions Addressable Market & Coxgroup Target Share Key Considerations Agadir Middle Egypt Morocco Tunisia Market Latam Total East Desalination / Desalination / Technology Desalination Desalination Desalination Desalination WT WT • Significant total a
Slide 84: Transmission Lines Concessions Outlook
Water Transmission Generation EPC & O&M Transmission Lines Concessions Outlook Awarded Concessions Growth Opportunities Brazil Chile Additional Opportunities Length • 108 km • 575 km • 8,400 km Availability Tariff • €118(1), indexed to BRL inflation • €90-95(1), indexed to US inflation (€ / km day)
Slide 85: Generation Outlook
Water Transmission Generation EPC & O&M Generation Outlook In Operation Renewable Energy Pipeline SPP1(1) KHI Sao Joao Chilean Solar PV Captive Energy Projects Other Pipeline (Solar PV) • 100 GWh, increasing to • Meseta de los Andes: 385 1a• Energy follows water: 906 2• Selective Development: 1.6 Gr
Slide 86: EP(C), O&M and Corporate Level Medium Term Outlook
Water Transmission Generation EPC & O&M EP(C), O&M and Corporate Level Medium Term Outlook Historicals (2023A) Medium-Term Outlook • Target cumulative revenues of c.€6.0-7.0bn in the medium term, with higher ramp-up in • Revenues: €318m EP(C) the short-term • EBITDA: €38m • No capex expected except
Slide 87: Corporate
Corporate
Slide 88: Coxgroup Company Structure
Coxgroup Company Structure Well structured group to confront the expected strong growth in the coming years structured between: (1) Corporate functions, (2) Business verticals and (3) Geographies Board Committees CRO Alejandro García Audit Committee Internal Audit Appointments and Remuneration Board
Slide 89: Management Team Overview
Management Team Overview Highly-experienced and committed management team with a combined experience of +250 years Enrique Riquelme Founded EXPERIENCE Founder & Coxgroup in Executive 2014 Chairman +14 Joined EXPERIENCE EDUCATION Joined EXPERIENCE EDUCATION Nacho Moreno José Olivé Coxgroup Coxgroup C
Slide 90: Closing Remarks
Closing Remarks
Slide 91: Coxgroup Strategic Focus
Coxgroup Strategic Focus Today Strategy 1 Strategy Vertically integrated utility across renewable technologies in Focus on build-to-own strategy across water and energy fast growing markets (except in mature Spanish energy market) 26%(1) 66% (1) 9% (1) €103m 2 EBITDA EBITDA(2) 2023 Water Energy Gene
Slide 92: Appendix
Appendix
Slide 93: Appendix – Water
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Slide 94: Focused on Desalination, Water and Waste Water Treatment Technologies
Coxgroup is Focused on Desalination, Water and Waste Water Treatment Management Technologies Solutions to Water Scarcity Coxgroup Focused on the Full Water Cycle Conservation Desalination Water Treatment WasteWater Treatment • Leakage reduction • Efficient irrigation • Water-efficient products • Rai
Slide 95: Types of Public-Private Partnership (PPP)
Coxgroup Focused on Securing Long Term Concession Agreements: BOT and BOOT Coxgroup focus Contract Type Definition Ownership Design-Build-Finance- • A constructor is responsible for the design, construction, maintenance, and financing Private Sector Operate (DBFO) • The constructor is compensated by
Slide 96: Understanding the Technology: a Reverse Osmosis Desalination Plant
Understanding the Technology: a Reverse Osmosis Desalination Plant Key Considerations Process engineering is key to achieve efficient operations with optimized costs ¡ of water production Energy Recovery Membrane Outfall Pump Pressure Filters Ultrafiltration (impacting tariff) Device Key Providers O
Slide 97: SEDA Agadir
SEDA Agadir(1) Overview Largest desalination plant in Morocco(2) Type of Use Designed for drinking water 1.5m People Type of Contracts WPA “Take-or-pay”(3) Supplied with Water (2.0m after Type of Concession BOOT expansion) Concession Term 2022-2049 Payment Currency Dirham Technology Reverse Osmosis
Slide 98: AEB Agadir
AEB Agadir(1) Desalination plant providing irrigation water for Overview agricultural purposes 13,600ha Irrigated Land Type of Use Designed for irrigation water Farmers: WPA “Take-or-pay”(2) Type of Contracts SEDA: O&M Service Agreement Awarded by the International Desalination Type of Concession BO
Slide 99: Accra
Accra Overview Desalination Plant in Accra Type of Use Drinking water 0.5m People Type of Contracts WPA “Take-or-pay”(1) Supplied with Water Type of Concession BOOT Concession Term 2015-2040 Payment Currency USD (Guaranteed by MIGA) Ultrafiltration + reverse osmosis Technology Desalination Tariff Pr
Slide 100: Appendix – Energy
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Slide 101: Energy Generation Assets Team
Energy Generation Assets Team: Highly Experienced Team with On- the-Ground Presence Highly Experienced Team Key KPIs Key Takeaways José Antonio Hurtado >1GW Experienced player in asset 1 Brought RtB development and construction CEO 7 Spain 1,205 Mexico Total FTEs 6 3 Algeria Utility Scale 26 Operati
Slide 102: Coxgroup Covers Full Transmission Concessions Development Cycle
Transmission Lines & Substations Generation Behind the Meter Coxgroup Covers Full of Transmission Concessions Development Cycle Tendering Development Engineering - Construction Asset Management Re-transfer 3-6 months 12-24 months 18-24 months 25-30 years O&M extension • Auction held by the governmen
Slide 103: Meseta de Los Andes
Experienced Project Operator Across Multiple Technologies Meseta de Los Andes Asset & Location Overview Key Asset Portfolio Capacity 160MW(1) COD 2023 Production 385GWh/year Project Data OpEx €/MW(2) €7,485/MWp/year Financials (Revenues / EBITDA 23A) €22m/€5m(2,3) Payment Currency USD Ownership 30%
Slide 104: San Javier
Experienced Project Operator Across Multiple Technologies San Javier(1) Asset & Location Overview Key Asset Portfolio Capacity 3.00MW(1) COD 2023 Production (NEH-50) 5,200MWh/yr Project Data Production (NEH-90) 4,903MWh/yr OpEx €/MW(2) €13,099/MW/yr Financials (Revenues / EBITDA 23A) First year oper
Slide 105: Solar Power Plant 1 (SPP1)
Experienced Project Operator Across Multiple Technologies Solar Power Plant 1 (SPP1)(1) Asset & Location Overview Key Asset Portfolio c.680MW when Capacity considering equivalent 150MW solar capacity(4) COD 2011 Production 1,280GWh/year Project Data OpEx $/MW €13,000/MW Financials (Revenues / EBITDA
Slide 106: KHI
Experienced Project Operator Across Multiple Technologies KHI Pending local regulatory approvals Asset & Location Overview Key Asset Portfolio Capacity 50MW(1) COD 2016 Production 100GWh/year Project Data OpEx €/MW(4) €199,433/MW-yr Financials (Revenues / EBITDA 23A)(2,4) €26.2m/€13.9m Payment Curre
Slide 107: Sao Joao
Experienced Project Operator Across Multiple Technologies Sao Joao Asset & Location Overview Key Asset Portfolio Industrial asset located in São Paulo that produces Capacity 70MW(2) c.80MW when considering and sells sugar, bioethanol and energy COD 2009 equivalent solar Production 160GWh(8) capacity
Slide 108: Appendix – Historical Financials
Appendix – Historical Financials
Slide 109: Mapping the Bridge to Net Income Profitability
Mapping the Bridge to Net Income Profitability 103.4 (10.8) (31.5) (27.4) 1.0 1.8 36.5 EBITDA IFRS16 D&A, Impairments Net Financial Result Income/(Loss) from Tax Net Income Reported and Provisions Associated Companies • Energy Asset and • Energy Assets and • Financial income: €6m • Mainly related to
Slide 110: 2023 Key Financial Metrics
2023 Key Financial Metrics P&L (€m) Cash Flow (€m) Leverage (€m) Revenue 580,715 EBITDA 103,382 Corporate Debt 61,477 Change in Inventories 11,530 Other Non-Cash Items(1) (11,598) Project Finance Debt 218,571 Other income 49,424 Changes in Working Capital (30,814) Gross Debt 280,048 Raw Materials (1
Slide 111: Appendix – Financial Outlook
Appendix – Financial Outlook
Slide 112: Potential Targets for the Medium Term – Water Identified Opportunities
Potential Targets for the Medium Term – Water Identified Opportunities Project Country Type Capacity Date A z Zo ur no rth 2&3 Desal 740,000 2024 Desalinatio n pro gramm in Egypt P hase Ia Desal 700,000 2024 Nado r Desal 685,000 2024 Jubail B uraydah P ipeline Water transfer 650,000 2024 Jubail 4&6
Slide 113: Potential Targets for the Medium Term – Water Identified Opportunities (Cont'd)
Potential Targets for the Medium Term – Water Identified Opportunities (Cont’d) Project Country Type Capacity Date Ras A lKhair Desal 120,000 2024 GVM C Vizag P udimadaka P P P Desal 100,000 2024 Co quimbo Desal 100,000 2024 B ahía de B anderas A queduct Water transfer 86,400 2024 ISTP Western Clust
Slide 114: Potential Targets for the Medium Term – Water Identified Opportunities (Cont'd)
Potential Targets for the Medium Term – Water Identified Opportunities (Cont’d) Project Country Type Capacity Date UA E 1 Desal 450,000 2025 EWEC RO2 Desal 450,000 2025 Tabuk 1 Desal 400,000 2025 Oualidia Desal 370,000 2025 Jazan Water transfer 300,000 2025 Jazan 1 Desal 300,000 2025 Trujillo and Ch
Slide 115: Potential Targets for the Medium Term – Water Identified Opportunities (Cont'd)
Potential Targets for the Medium Term – Water Identified Opportunities (Cont’d) Project Country Type Capacity Date A l Samara WWTP 100,000 2025 Guelmim Desal 95,000 2025 Huaura and B arranca WWTP 95,000 2025 Central Cluster WWTP 91,000 2025 Huancayo WWTP 86,000 2025 Cusco WWTP 81,043 2025 Sarabio um
Slide 116: Potential Targets for the Medium Term – Water Identified Opportunities (Cont'd)
Potential Targets for the Medium Term – Water Identified Opportunities (Cont’d) Project Country Type Capacity Date Rabat desalinatio n plant Desal N/A 2025 No rth A sunció n water supply system WTP N/A 2025 Lambayeque WWTP N/A 2025 Rural co mmunities in Lo reto WTP N/A 2025 San Ignacio WWTP N/A 2025
Slide 117: Appendix – Corporate
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Slide 118: Coxgroup: Well Integrated Group
Coxgroup: Well Integrated Group Coxgroup has successfully taken all steps over the last year to be fully integrated and prepared to face its coming growth plan Cox acquires Abengoa and integrates Coxgroup fully prepared to all business units creating Coxgroup confront its strong growth plan April ’2
Slide 119: Glossary (I/II)
Glossary (I/II) Acronym Definition Acronym Definition AEB Agadir-Essaouira Basin EPS Evolved Packet System ADB Asian Development Bank ESCO Energy Service Company AI Artificial Intelligence EU The European Union APAC Asia Pacific Region FCF Free Cash Flow APM Alternative Performance Measure FTEs Full
Slide 120: Glossary (II/II)
Glossary (II/II) Acronym Definition Acronym Definition m3 Cubic Meter QIB Qualified Institutional Buyer MAD Moroccan Dirham RES Renewable Energy Sources MBA Master of Business Administration RMBS Responsible Management Balance Sheet MEA Middle East and Africa RO Reverse Osmosis MENA Middle East and