Abengoa Sa · OTC:AGOAF
Abengoa Sa — Telvent — FY2005 Earnings Presentation
32 slides from Abengoa Sa's earnings presentation, Mar 2, 2006
Slide 1: Q4 and FY 2005 Earnings Report
TELVENT Q4 and FY 2005 Earnings Report March 2, 2006 1
Slide 2: Forward-Looking Statement
Forward-Looking Statement This presentation This presentation contains contains forward-looking forward-looking statements statements and and information information relating to relating to Telvent Telvent that that are are based based on on the the beliefs beliefs of of its its management managemen
Slide 3: Agenda
Agenda 1. 2005 Highlights 2. 2005 Detailed Financial Analysis 3. Business Outlook and 2006 Guidance 4. Appendices 3
Slide 4: 2005 Highlights
2005 Highlights Met or exceed our key stated goals: Revenues up to €402.4 million, or 28.7% increase over 2004 Pro forma EPS of €0.62 Record Bookings of €480.4 million, or 22.6% increase over 2004 Continued top and bottom line growth, with a good combination of organic and growth from acqu
Slide 5: Three years of continuous growth
€ in Millions Three years of continuous growth 370.7 25.3 18.0 21.0 281.8 13.8 257.7 % 19 .9 GR % CA 12.7 41 .1 R % CA G 7.0 60 .4 GR CA 2003 2004 2005 2003 2004 2005 2003 2004 2005 Revenues Income from Operations Net Income (w/o the JV Consolidation effect) (Pro Forma) (Pro Forma) 5
Slide 6: Diversified Revenue Stream By Sector and by Geography
Diversified Revenue Stream By Sector…. .... and by Geography % 50 60% 40 50 30 40 30 20 20 10 10 0 0 North Latam Europe Asia- Middle Energy Traffic Transport Envirment. Other America Pacific East & Africa • Growth in all sectors • Growth in all geographies • Strong Energy and Traffic, representing •
Slide 7: 2005 R&D Review
2005 R&D Review Completed 36 R&D Programs in our Product and Solution Centers Increased net R&D investment by €3.9 million or 35.4%, in 2005 to €15.0 million, representing 3.7% of our FY2005 revenues (4.0% of our revenues after eliminating the JV´s consolidation effect) Energy Sector: More f
Slide 8: 2005 Acquisitions Review
2005 Acquisitions Review Solid Results from Miner&Miner (12 months) 9 Solid revenue growth delivered (36%), and improved profitability 9 Adding one new customer per week 9 Leveraging M&M brand to strengthen Telvent brand in North America 9 Develop plan for integrated utility solution 9 Corporate i
Slide 9: Good Basis to Believe in the Future
Good Basis to Believe in the Future Strong Backlog Consolidated Management Team Larger than ever Pipeline of opportunities Solid Short Term Forecast Results-oriented organization Strong and stable customer relations Solid Long Term Diversified and consolidated verticals Forecast Continuous investmen
Slide 10: Agenda
Agenda 1. 2005 Highlights 2. 2005 Detailed Financial Analysis 3. Business Outlook and 2006 Guidance 4. Appendices 10
Slide 11: Revenues, Gross Profit, Operating Income, Net Income
€ in Millions Revenues Gross Profit 21.6% 21.4% 20.5% % 28.7 402.4 82.7 312.6 17.6% 67.0 257.7 55.6 219.4 9.4% 38.7 R 1 CAG FY2002 FY2003 FY2004 FY2005 FY2002 FY2003 FY2004 FY2005 Operating Income 5.3% Net Income 5.3% 3.4% 21.1 6% 41. 14.4 16.5 2.4% % 4 6.6 GR 10.1 CA 8.9 5.3 4.7 4.5 FY2002 FY2003 F
Slide 12: Successful Q4 2005
Successful Q4 2005 Revenues of €131.0 million, representing 15.6% year-over-year growth Pro forma Net Income up 43.6% to €6.1 million, or Pro Forma EPS of €0.21 per diluted share Cash Flow from Operating activities of €36.9 million. Net Cash position of €58.1 million at December 31, 2005 Rec
Slide 13: Successful FY05
Successful FY05 Top-line growth exceeds guidance. Revenues grow 28.7% to €402.4 million. Organic growth of 21.9% Gross margin within the guidance range although down year-over- year. Pro forma operating margin of 6.8% Pro forma Net Income up to €18.0 million, or 31.0% year over year Pro form
Slide 14: Revenue Growth Contribution by Sector and Geography
Revenue Growth Contribution by Sector € in Millions and Geography +10.2 +9.1 +8.1 +8.3 +54.2 402.4 312.6 Sector FY2004 Energy Traffic Transport Envirnmt. Other FY2005 +14.6 +14.1 +19.1 +8.1 +33.9 402.4 312.6 Geography FY2004 Europe North Latin Asia- Middle FY2005 America America Pacific East & Afric
Slide 15: Joint Venture consolidation impact in our profitability
Joint Venture consolidation impact in our profitability % 24 22 20 Gross Margin 18 16 14 Q4 2004 Q4 2005 FY 2004 FY 2005 With JV´s Without JV´s partners effect partners effect % 7.0 6.5 6.0 Operating Margin 5.5 5.0 4.5 4.0 Q4 2004 Q4 2005 FY 2004 FY 2005 With JV´s Without JV´s partners effect partne
Slide 16: Business (Revenues) Growth
Business (Revenues) Growth € in Millions 2004 2005 GAAP Revenues 312.6 28.7% 402.4 JV´s (other partners´portion) (30.8) (31.7) Acquisitions (5.3) (30.1) FX impact - (3.6) Revenues (Organic) 276.5 21.9% 337.0 16
Slide 17: Unaudited P&L Account
Unaudited P&L Account € in Millions, except EPS FY Pro Forma 2005 2004 2005 2004 % o/R % o/R % o/R % o/R Revenues € 402.4 € 312.6 € 370.7 € 281.8 Cost of revenues 319.7 79.5% 245.6 78.6% 288.2 77.7% 214.9 76.3% Gross profit 82.7 20.5% 67.0 21.4% 82.5 22.3% 66.9 23.7% General and administrative 25.3
Slide 18: Net Cash Position
Net Cash Position € in Millions • Net cash position of €58.1 million at the end of 2005. Net cash position of €64.5 million at the end of year 2004 As of December 31, As of December 31, 2005 2004 Cash and cash equivalents 83.2 88.5 Due from/to related parties, net 22.7 20.8 Short-Term Debt (32.5) (2
Slide 19: Cash Flow analysis
Cash Flow analysis € in Millions € (10.6) From JV´s Operating activities Adjusted Net Income 24.1 €2.6 Receivables/Payables 4.6 € 13.1 Unbilled revenues (37.0) Other liabilities 21.4 0 € 3.1 Deferred payment on M&M Investing activities € 3.9 CAPEX 0 €(10.6) 0 € 1.8 Almos acquisition € 1.7 Other 19
Slide 20: Revenue Visibility and Stability: Bookings and Backlog
€ in Millions Revenue Visibility and Stability 480.4 392.0 22.6% 160.8 122.6 123.9 Bookings 102.1 104.3 113.2 81.1 64.2 29.8% Q1 2004 Q2 2004 Q3 2004 Q4 2004 FY2004 Q1 2005 Q2 2005 Q3 2005 Q4 2005 FY2005 388.9 277.6 Backlog 40.1% Dec. 2004 Dec. 2005 Strong visibility going forward, based on Backlog,
Slide 21: Backlog Guidance
Backlog Guidance € in Millions As of December 31, 2004 As of December 31, 2005 100% 80% 388.9 60% 211.2 177.6 277.6 29.9% 40% 54.3% 45.7% 20% 0% Dec. 31, 2004 Dec. 31, 2006 2007+ 2005 Revenue Visibility and Stability Note 1: These financial projections update and replace our previous guidance 21
Slide 22: FY2005 Actual vs. Guidance
FY2005 Actual vs. Guidance FY 2005 FY 2005 Guidance Actual Revenues (organic) 12% - 14% 21.9% Gross Margin % (o/R) 22% - 24% 22.3% Income from Operations % (o/R) 6% - 7% 5.7% Pro Forma Net € 16.7 – 17.5 18.0 Income Millions Pro Forma EPS € 0.57 - 0.60 0.62 Shares 29,247,100 29,247,100 Outstanding No
Slide 23: Agenda
Agenda 1. 2005 Highlights 2. 2005 Detailed Financial Analysis 3. Business Outlook and 2006 Guidance 4. Appendices 23
Slide 24: 2006 Business Outlook
2006 Business Outlook Industry Verticals: Diversification through growing sectors 9Energy: Energy consumption growing in every country, thus increasing expected demand for electricity, oil and gas. New infrastructure being built and greater efficiency and security requirements 9Traffic: Increasing
Slide 25: FY2006 Guidance
FY2006 Guidance FY 2006 Guidance Revenues (organic) 10% - 12% Gross Margin % (o/R) 22.5% - 24.5% Income from Operations % (o/R) 6.5% - 7.5% Pro Forma Net € Millions 21.7 – 22.8 Income Pro Forma EPS € 0.74 - 0.78 Shares 29,247,100 Outstanding Note1: These financial projections update and replace our
Slide 26: Appendices
TELVENT Appendices
Slide 27: Energy: Business and FY2005 Review
Percentage of Total Energy ¤ Business: Oil, Gas and Electrical 44.2% Complete solutions that address data acquisition, control and advanced operational and business applications Revenue and Gross Margin Products: A complete family of RTU´s, OASyS DNA IT Infrastructure, ArcFM Enterprise GIS (w/
Slide 28: Traffic: Business and FY2005 Review
Percentage of Total Traffic ¤ Business: Urban Traffic Control Systems 30.9% ITS (Intelligent Transportation Systems) and Electronic Toll Collection Systems Revenue and Gross Margin Complete solutions that address the capture of the field data, control systems, advanced (w/o JV´s consol. effect
Slide 29: Transport: Business and FY2005 Review
Percentage of Total Transport ¤ Business: Infrastructure Management Systems & Fare Collection Systems for Railway, Metro and Bus markets Complete solutions to support transport operators and transportation authorities 7.2% Products: infrastructure management solutions based on our OASyS platfo
Slide 30: Environment: Business and FY2005 Review
Percentage of Total Environment ¤ Business: Complete IT solutions for Weather, Integral Water Cycle, and Environmental Protection 9.0% Road Weather Information Systems (RWIS), Meteorological Applications for Aeronautical needs, National Weather Observation Networks and Weather Nowcasting & Forecas
Slide 31: Other: Business and FY2005 Review
Percentage of Total Other ¤ Business: Healthcare IT (22% of Other) Public Administration: E-Government and Homeland Security (12.3% of Other) Managed Services for a variety of customers (65.5% of Other) 8.7% Revenue and Gross Margin ¤ FY2005 Review (w/o JV´s consol. effect) 32.2% increase in
Slide 32: Q&A
TELVENT Q&A