Abengoa Sa · OTC:AGOAF
Abengoa Sa — Q3 2013 Earnings Presentation
39 slides from Abengoa Sa's earnings presentation, Nov 12, 2013
Slide 1: Evolution of Business Third Quarter 2013
Evolution of Business Third Quarter 2013 (January-September)
Slide 2: Assets in operation and construction
BIN LBL As of September Fein Fully | Annual 213 cation analy ne in) ean auingdao Chins 100MUday 92% yan @ von Manaus fraal —586km— 1% yan @ vos Solaben 16 Spain SOMW32 100% van @ v » Solana Usk 280M 100% a Yau ey Quecre! chile 79km 100% an @vo7 Quadra chile Som = 100%) en3 voo4 ats Feru—900km 100% =
Slide 3: Significant events reported to the CNMV; Evolution of the Stock price
(1) Uncommitted project (financing and partner’s contribution still pending to be secured) (2) This project falls under the scope of IFRS 10 and will therefore be consolidated through equity method until entry into operation 8. Significant events reported to the CNMV Details of the Relevant Event co
Slide 4: Azaogoa petoteie
Azaogoa petoteie
Slide 5: Innovative Technology Solutions for Sustainability Third Quarter 2013
Innovative Technology Solutions for Sustainability Third Quarter 2013 Earnings Presentation ABENGOA November 11, 2013
Slide 6: Forward-looking Statement
2 Forward-looking Statement This presentation contains forward-looking statements (within the meaning of the U.S. Private Securities Litigation Reform Act of 1995) and information relating to Abengoa that are based on the beliefs of its management as well as assumptions made and information currentl
Slide 7: Agenda
3 Agenda Financial Overview Strategy & Business Update 1 2 Business Outlook & Targets 3 Appendices 4
Slide 8: Financial Overview
4 Agenda Financial Overview Strategy & Business Update 1 2 Business Outlook & Targets 3 Appendices 4 Financial Overview Appendices Business Outlook & Targets
Slide 9: 2013 YTD Overview
2013 YTD Overview 5,233 M 7,069 M 125 B Pipeline Backlog +29% Revenues +0% 73 M 860 M EBITDA Net Income +13% Corp. Leverage(1) 2.5x +17% Continued Delivery on Growth Strategy 5 +13% (1) Corporate Leverage proforma for the 517 M capital increase completed in October 2013
Slide 10: Q3 2013 Executive Summary
Q3 2013 Executive Summary 6 1 Continued Strong Business Momentum Solid performance of E&C; backlog above 7.0 B Continued recovery in Biofuels Bringing assets into operation as scheduled 2 Reduced corporate leverage Executing on asset rotation plan Reducing corporate CAPEX 3 517 M equity increase & N
Slide 11: Geographic Diversification
Geographic Diversification The US as Largest Contributor in the Mix while increasing presence in Asia & Africa Sep. 2012 Sep. 2013 7 1,546 M USA 30% +23% 12% 629 M +19% 12% 3% 206 M +46% 4 % Africa 8% 2% +45% 440 M LatAm 32% 1,447 M 28% +0.3% 28% 23% Spain 18% 965 M -6% 5,233 M Growing our internati
Slide 12: Engineering & Construction
8 Engineering & Construction 1 Strong momentum both in execution and booking activity Pipeline allows for excellent visibility on future flows Backlog maintained at healthy level of +7 B, with lower equity investments Bookings 3,564 M +57% YoY 7,069 M -% QoQ Backlog 125 B +13% QoQ Pipeline YTD Opera
Slide 13: Great visibility on future growth with lower equity investments
9 Great visibility on future growth with lower equity investments E&C visibility Proven technology and track record of building & operating assets allowing to minimize future equity contribution and secure growth Additional returns from technology fees and O&M Equity Investments < EPC Margin 9.1% eq
Slide 14: E&C Results Visibility - Pipeline
Jun'13 Sep'13 Split by geography Split by sector Growing our pipeline of opportunities to drive future revenues Others 14% 13% 35% 21% 10% 7% Water 1% 17% 18% 9% 7% 23% 16% 9% Brazil Spain Rest of Europe US Asia & Oceania Africa LatAm 10 E&C Results Visibility - Pipeline Mexico Pipeline (B) 124.5 11
Slide 15: Concession-type Infrastructures
11 Concessionstype Infrastructures 2 YTD Operating Segment Analysis Revenues (M) 317 412 Sep.'12 Sep.'13 +30% EBITDA (M) 199 255 Sep.'12 Sep.'13 +28% Margin (M) Sep.'12 Sep.'13 Solana, the largest CSP trough plant worldwide, and Solaben 1 & 6 plants in in operation on-time & budget 1,916 MW in opera
Slide 16: Industrial Production
12 Industrial Production 3 1,627 ML vs 1,696 ML 9m 2013 Ethanol Produced ~0.75 $ Vs 0.40 $ avg. 2012 Crush Spread YTD Operating Segment Analysis Revenues (M) Sep.'12 Sep.'13 -1% EBITDA (M) 26 81 Sep.'12 Sep.'13 +213% Margin (M) Sep.'12 Sep.'13 Recovery in bioethanol sector factored-in in segment eco
Slide 17: Technology Update
Technology Update Cutting Edge Technologies 13 R&D plans continue to advance quarter to quarter Quarterly Update Butanol Waste to biofuel (W2B) Water Desalination 374 tons of municipal solid waste treated 1,565 l ethanol 100% purity produced Developing alternative technology configuration to adapt t
Slide 18: Enzyme Project Achievements and Targets
ABENGOA ABZYM 84% Cost Contribution 2G Ethanol 14 0 0.5 1 1.5 2 2.5 3 3.5 4 2009 2010 2011 2012 2013 2014 Cost Contribution (USD/gal of EtOH) Molecular & Biochemical Lab in Seville W2B Demo Plant in Salamanca Fermentation & Down Stream Process (DSP) Lab in Salamanca Enzyme testing Lab in York Enzyme
Slide 19: Strategy & Business Update
15 Agenda Strategy & Business Update 1 Business Outlook & Targets 3 Appendices 4 Strategy & Business Update Business Outlook & Targets Appendices Financial Overview 2
Slide 20: Financial Highlights
Financial Highlights 16 EBITDA through September 2013, an increase of 29% Y-o-Y 5,233 M 860 M 73 M Net Income through September 2013, an increase of 12% Y-o-Y financial strategy Pro-forma* Corporate Leverage ratio as of Sep. 2013, a 1.1x reduction from 2012 YE level 2.5x Revenues through September 2
Slide 21: E&C Backlog
17% 34% 11% 20% 2% 16% Solid backlog, well diversified, provides revenue visibility Backlog (M€) By Geography By Sector RoW E&C Backlog 17 USA Backlog at Sep.13 represents 19 months of E&C revenues +75% of backlog from emerging markets Europe T&D Industrial Plants Solar Conventional Power Water Othe
Slide 22: Reinforced Capital Structure
Liquidity protection & management of corporate leverage: key priorities Reinforced Capital Structure 18 Net Corporate Debt Non- Recourse Debt Dec. 2012 Sep. 2013 Proforma* Total Corporate Debt Corporate Cash, Equiv. & STFI Corporate Net Debt Non-recourse Debt Non-recourse Cash Equiv. & STFI Net Non-
Slide 23: Reduction of Corporate Leverage a Key Priority
Reduction of Corporate Leverage a Key Priority Key Leverage Ratios 19 Consolidated Corporate Non-Recourse Sep. 2013 Proforma* 6.1x 13.2x 2.5x (excl. pre-op. debt) 3.3x 7.1x 14.2x 3.7x 3.9x Dec. 2012 * Proforma for the application of net proceeds from the 517 M€ capital increase completed in October
Slide 24: Corporate Debt Maturity
20 0 174 152 105 106 164 300 500 481 550 8 505 676 100 250 400 Corporate Debt Maturity Rest 2013E 2014E 2015E 2016E 2017E 2018E 2019E+ Bonds Syndicated Loans Other corp. debt Convertible Bonds Synd. Pro-forma Corporate Debt Maturity after Recent Transactions 21 47 Expected UoP from 2018 HY Notes Exp
Slide 25: Cash-flow Overview
2,088 M 21 On track to achieve corporate CAPEX target of 750 M for full year 2013' Cash-flow Overview Net Cash Flow from financing activities Cash generated from operations 285 M Total capex invested: 1,397 M Other net investments: (264) M Discontinued operations: 28 M Net Investment 1,161 M 618 M C
Slide 26: Business Outlook & Targets
Strategy & Business Update 1 22 Agenda Appendices 4 Financial Overview 2 Strategy & Business Update Appendices Financial Overview Business Outlook & Targets 3
Slide 27: Key Financial Targets and 2013 Business Guidance
23 (1) Positive Corporate FCF: corporate EBITDA - corporate CAPEX - interest expense on net corporate debt - income tax paid ± change in working capital A detailed plan for a sustainable financial structure going further Key Financial Targets 2013 Business Guidance 7,250 7,350 1,180 1,230 800 825 16
Slide 28: Appendices
Strategy & Business Update 1 Agenda Financial Overview 2 Business Outlook & Targets 3 Strategy & Business Update Financial Overview Business Outlook & Targets 24 Appendices 4
Slide 29: Going Forward
ABENGOA Going Forward 25 A clear path going forward New Plan Announced In 6 months in 12 months in 18 months Improve biofuels performance from lowest ever Solana in operation Additional Equity recycling for ~560 M€: 420 M€ done already 517 M€ US equity offering 2014 Capex Reduction Repay remaining o
Slide 30: Results by Activity
26 Results by Activity € in Millions Revenues EBITDA EBITDA Margin 9M 2013 9M 2012 Var (%) 9M 2013 9M 2012 Var (%) 9M 2013 9M 2012 Engineering and Construction E&C 3,007 2,352 28% 377 331 14% 12.6% 14.1% Technology & Others 247 237 4% 147 111 32% 59.7% 46.9% Total E&C 3,254 2,589 26% 524 442 19% 16.
Slide 31: Excellent Revenue Visibility
Excellent Revenue Visibility Focus on execution, increase of backlog and expand recurrent business E&C Backlog 7,069 M€ Concession-type Biofuels Sep. 2013 Backlog 36,156 M€ Sep. 13 Contracted Revenues 2,100 M€ Yearly Run-rate* *Illustrative calculation according to estimated 12 months of revenues Re
Slide 32: Additional EBITDA from projects entering operation
Additional EBITDA from Note: Blue colour indicates change from previously reported date of entry in operation Projects shown in light grey indicate contracts that have been awarded but where financing is being closed 28 Location Capacity Abengoa (Equity Ownership %) 2013 2014 2015 2016 Expected Star
Slide 33: Capex under construction by segment (I)
29 Capex under construction by segment (I) 2This project falls under the scope of IFRS 10 and is therefore consolidated through equity method until entry into operation 1- Ashalim CSP Plant1 110 MW 50% Israel Q2 17 n/a 742 n/a 62 n/a n/a Uruguay Wind (Palomas) 1 70 MW 20% Uruguay Q3 15 n/a 126 n/a 4
Slide 34: Capex under construction by segment (II)
30 Capex under construction by segment (II) Q4 2013 2014 2015+ (M) Pending Capex ABG Equity Partners Debt Pending Capex ABG Equity Partners Debt Pending Capex ABG Equity Partners Debt Solar 250 67 8 175 248 43 18 187 95 6 6 83 Solana2 92 37 0 55 0 0 0 0 0 0 0 0 Mojave2 74 22 0 52 79 24 0 55 0 0 0 0
Slide 35: Concessional Projects under IFRS
Concessional Projects under IFRS 10 31 Visibility on consolidation of concessional assets currently under construction falling under IFRS 10 Impact at COD(1) Solana Q4 2013 Q1 2014 Q2 2014 Q3 2014 Q4 2014 Mojave Khi (Tower) Kaxu (Trough) Q1 2015 FY 2013 FY 2014 FY 2015 ~720 M Amount net of ITC Grant
Slide 36: Balanced Asset Portfolio
(M) Operating (Gross) Under Construction/ Development Total Gross Assets Net Assets* ABG Equity Non Recourse Net Debt Partners Transmission 1,233 1,425 2,658 2,608 921 1,341 346 CSP 3,488 - 3,488 3,246 1,133 2,008 105 Cogeneration 710 223 933 901 185 714 2 Water 232 165 397 377 95 243 39 Concession-
Slide 37: Asset Portfolio Capacity
Solar(1) (MW) 1,631 4,631 5,771 1,631 Sep. 2013 2017E 660 260 660 920 June 2013 2015E Asset Portfolio Capacity 33 Revenue visibility backed by our solid asset portfolio (2) Includes 286 MW of capacity of bioethanol plants cogeneration facilities Cogeneration & Others(2) (MW) Desalination (Ml/day) Tr
Slide 38: Consolidated Proforma Net Debt Change in the Period
Consolidated Proforma Net Debt Change in the Period Figures in M Dec´12 Sep´13 Proforma Net Debt Bridge 6,985 6,700 Operations Taxes & other financials Others 743 153 340 Befesa Transac. 270 Deconsolidation of net debt Others: Dividends, Treasury Stock, FX & others Investment 264 Total Capex Operati
Slide 39: Thank you
Innovative Technology Solutions for Sustainability Thank you ABENGOA November 11, 2013 Signatures Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. ABENGOA, S.A. By