Abengoa Sa · OTC:AGOAF
Abengoa Sa — Debt Investor Presentation (February 2010)
40 slides from Abengoa Sa's debt investor presentation, Feb 3, 2010
Slide 1: Credit Update
ABENGOA With the sun … we produce thermoelectric and photovoltaic electric energy Innovative Solutions for Sustainability Credit Update With biomass … we produce ecological biofuels and animal feed With waste … we produce new materials through recycling, and we treat and desalinate water With inform
Slide 2: Disclaimer
ABENGOA Disclaimer The information contained in this document has been provided by Abengoa, S.A. (“Abengoa”) . The information and any opinions or statements made in this document have not been verified by independent third parties, therefore, no representation or warranty, expressed or implied, is
Slide 3: Recent Developments
ABENGOA Recent Developments Growing with financial discipline and diversifying funding sources – Partnership with EON for 2 x 50 MW CSP Solar Projects (announced in Nov 09) – Partial divestment of Telvent – Access to debt capital markets FY’09 figures strong performance expected – Growth in sale
Slide 4: Contents
ABENGOA Contents 1 Overview of Abengoa 2 Financial Performance 3 Key Credit Highlights 4 Capex Plan 5 Exhibits 4
Slide 5: Overview
ABENGOA Overview Business description Geographical distribution by revenues (H1 2009) Asia Leading global technology company in energy 2.8% Africa – Large operator of power transmission, water concessions, 8.6% Spain renewable energy and recycling assets 28.4% – Develops proprietary technology in
Slide 6: Main Drivers
ABENGOA Main Drivers From global trends… … to concrete business opportunities Solar power global installed capacity will be growing at 13% per year from 2010 to 2050 reaching 3,700 Mw (Greenpeace, “EREC Energy Revolution”) Increased Energy Demand - Demand expected to increase between 40% Biofu
Slide 7: Unique Business Model and Successfully Proven Strategy
Unique Business Model and ABENGOA Successfully Proven strategy 1 Unique Engineering 2 Asset owned operations capabilities …Allows to build Solar CSP (1) Power Transmission lines Scale through constructing Desalination government owned assets Biofuels and third parties Energy Largely regula
Slide 8: Corporate Structure - Committed and Experienced Management Team
Corporate Structure - Committed and ABENGOA Experienced Management Team ABENGOA Felipe Benjumea, Chairman & Amando Sánchez, CFO CEO CFO since 2003 CEO since 1989 Joined in 1998 ABENGOA ABENGOA BEFESA ABEINSA TELVENT SOLAR (100%) BIOENERGY (97%) (97%) (100%) (40%) Santiago Seage, CEO Javier Sal
Slide 9: Contents
ABENGOA Contents 1 Overview of Abengoa 2 Financial Performance 3 Key Credit Highlights 4 Capex Plan 5 Exhibits 9
Slide 10: Financial Performance Highlights
Financial Performance ABENGOA Highlights Sustained historical two-digits growth with increased margins, even in a very tough environment Sales (M€) EBITDA (M€) Net Income (M€) ** ** 5% 7% 1% +3 :1 6% :2 % +2 700 50,00% GR 2% GR 16 CA 17% :2 41% CA 140 + 140 4% GR 45,00% 3,769 + 3,769 600 CA 541 + 54
Slide 11: Income Statement
Financial Performance ABENGOA Income Statement Financial highlights CAGR% M€ 2004 2005 2006 2007 2008* 9M 09 (04-08) Sales 1,746 2,024 2,677 3,214 3,769 2,857 21.2% EBITDA 180 216 288 384 541 463 31.6% EBIT 127 163 219 286 363 310 30.0% Net Interest 60 48 95 152 246 143 42.2% Net Income 52 66 100 12
Slide 12: Key Balance sheet data
Financial Performance ABENGOA Key Balance sheet data M€ 2004 2005 2006 2007 2008* H109 Fixed assets 668 891 1,263 2,097 2,552 3,056 Fixed assets in non-recourse activities 491 682 1,146 1,638 2,292 2,741 Cash and short-term financial investments (mostly public debt repos and deposits) 563 815 1,510
Slide 13: Cash-Flow Statement split by Corporate / Non-Recourse
Financial Performance ABENGOA Cash-Flow Statement split by Corporate / Non - Recourse (€ in millions) (1) 2006 2007 2008 Sales 2677 3214 3769 EBITDA 288 384 541 corporate 228 261 370 non recourse 60 191 257 intra-group eliminations 0 (69) (86) EBITDA margin 10.8% 11.9% 14.4% Net cash flows from inve
Slide 14: Favorable Outlook
ABENGOA Favorable Outlook + 11 % Positive sales performance in 9M’2009 vs 9M’2008 ~20.9 bn€ Order backlog in concession activities (average life of 24 years) (1) ~5.5 bn€ Order backlog from contracting activities (19 months of sales) (1) Not including 2,500 M€ from new awarded CSP plants < 30% Rev
Slide 15: Successful track-record in the banking and debt markets
Successful track-record in the ABENGOA banking and debt markets Excellent track record in capital markets – 200 M€ 6.875% 2014 Convertible Bond issued in June 2009 – 300 M€ 9.625% 2015 Euro Bond issued in November 2009 – 250 M€ 4.5% 2017 Convertible Bond issued in January 2010 Excellent reputati
Slide 16: Financial Model
ABENGOA Financial Model Balance of non-recourse Project Financing and Corporate Debt keeps financial discipline Non-recourse financing (NR) on a project by project basis: used to fund significant investments. Capex commitments are subject to availability of long-term funding Corporate Debt (ex N
Slide 17: Non-recourse Debt
Financial Model ABENGOA Non-recourse Debt Non-Recourse Debt Matched with cash-flow generation profile of projects and investments: - The long-term concession / commercial agreements (15 to 30 years) of project finance are suitable to higher leverage of such projects - Repayment instalments follow
Slide 18: Long Term Corporate Debt
Financial Model ABENGOA Long Term Corporate Debt Long Term Corporate Debt Credit facilities: - 1,800 M€ in three 600 M€ syndicated facilities (average pricing of E+67.5bps) due in 2011 and 2012: Santander, BNP Paribas, Societe Generale, ING, Citigroup, La Caixa, Caja Madrid as some of the MLA’s. -
Slide 19: Long Term Corporate Debt
Financial Model ABENGOA Long Term Corporate Debt Long Term Corporate Debt Committed to maintain our corporate debt ratio below 3x This is the only covenant of our corporate credit facilities, as agreed with our banks since 2002, an also incorporated in the covenant package of the 300 M€ February
Slide 20: Net Debt Analysis & Covenant
Financial Model ABENGOA Net Debt Analysis & Covenant Overall leverage lower when debt associated with assets under construction is taken into account Net Corporate Debt/Ebitda ratio well below 3x contractual limit (1) Major Adj (€ in Million) 30 Jun.09 Jul09.Jan10 Net debt (corporate) + Long-term de
Slide 21: Detailed Debt Structure
Financial Model ABENGOA Detailed Debt Structure Two sources of financing to ensure sufficient funds to growth in an orderly manner: – Non-recourse debt: project finance for new-build constructions used to finance significant investments Capex commitments are subject to availability of long-term fu
Slide 22: Financial Priorities
ABENGOA Financial Priorities Reinforce liquidity - Active in Debt Capital markets to cover new corporate needs maintaining leverage commitments - Keep discipline in financing of new capex Finance capex plan with strong cash generation at corporate level and funding already in place Seek growth
Slide 23: Solid operating policy and tight audit controls
Solid operating policy and tight ABENGOA audit controls Adequate internal control systems in place to: - Monitor and evaluate business risk - Guarantee the accuracy of financial information Policy to hedge interest rates, FX and commodity price risks First European entity to undertake Sarbanes
Slide 24: Contents
ABENGOA Contents 1 Overview of Abengoa 2 Financial Performance 3 Key Credit Highlights 4 Capex Plan 5 Exhibits 24
Slide 25: In summary: Key Credit Highlights
ABENGOA In summary Key Credit Highlights 9 Well balanced, diversified and resilient business 9 Activities supported by solid market trends 9 Unique business model that boosts organic growth 9 Experienced and committed management team 9 Strong financial performance 9 Healthy and predictable backlog 9
Slide 26: Contents
ABENGOA Contents 1 Overview of Abengoa 2 Financial Performance 3 Key Credit Highlights 4 Capex Plan 5 Exhibits 26
Slide 27: Committed Capex Programme
As presented in our October “credit ABENGOA update” presentation Committed Capex Programme: 4,271 M€ - Non-recourse debt and partners: 3,128 M€ - Funds from Abengoa Corporate: 1,143 M€ 100% of non-recourse debt is committed Capex from Abengoa Entry in Total Abengoa M€ Capacity (%) Country Operat
Slide 28: Updated Capex Plan
ABENGOA Updated Capex Plan 10 new CSP projects awarded feed-in tariff in Spain; capex of ~2,500 M€ - Flexibility to build these projects over the next 3 years - Awarded, but not committed. Commitments as financing is secured o/w Capex from Abengoa Total Abengoa M€ Capacity (%) Location Status Cape
Slide 29: Sources & Uses of Capex Programme
ABENGOA Sources & Uses of Capex Programme Funding of the capex programme to be contributed from Abengoa Corporate is covered by existing cash and Corporate Ebitda generation: New Pipeline Awarded M€ Capex horizon 2H09-1H2012 : 4,271 2,500* Financed by : - Committed Non-recourse debt and partners
Slide 30: CSP projects
ABENGOA CSP projects Key highlights - Regulation: predictability in cash flows thanks to feed-in-tariff (Spain) - Proven technology: Parabolic trough solar power plants have been in existence for almost 50 years (Harper Lake Solar Funding Corp. rated BBB- / Baa2) - In-house experienced EPC contrac
Slide 31: CSP projects: Illustrative cash-flow profile
ABENGOA CSP projects Illustrative cash-flow profile for a 50 MW CSP plant EUR in millions year -1 -2 1 2 3 4 5 6 - 34 Construction Business a FCF from construction, development, equipment, technology fees… 20 20 Corporate & Operational Business b FCF from Management Fees and O&M Margins 1 1 1,25 1,3
Slide 32: Contents
ABENGOA Contents 1 Overview of Abengoa 2 Financial Performance 3 Key Credit Highlights 4 Capex Plan 5 Exhibits 32
Slide 33: Engineering Capabilities
1 Engineering Capabilities ABENGOA Engineering, For third procurement and For own assets Experience in the past five years Backlog (M€) parties construction of… CSP solar plants 31MW built; 150MW under 240 9 construction Renewable energy ISCC(2) solar plants 150MW under construction 218
Slide 34: Asset-owned operations
2 Asset-owned operations ABENGOA Concession contracted Remarks Locations Assets revenues (M€)* First two commercial CSP towers Spain 41MW in operation 4,730 (1) Largest CSP plant in the world under US 150MW under Renewable energy development (280MW, Solana) Rest of World construction
Slide 35: Technology development
3 Technology development ABENGOA Technology development as growth generator in the field of sustainability in Energy and Environment 84 M€ invested in R&D in 2008, ca. 2.5% of sales World pioneer in CSP solar technologies >900 people in R&D+i World leader in development of 2nd generation >
Slide 36: Corporate (ex Non-Recourse) Activities: Ebitda Breakdown
Corporate (“ex Non-Recourse”) Activities ABENGOA Brief Description and Ebitda Breakdown Ebitda at Corporate entities (“Corporate Ebitda”) is growing rapidly based on solid drivers and large backlog Based on current backlog, we expect Corporate Ebitda to total 1.8 bn€ in the next 3 years (2H’09 –
Slide 37: Non-Recourse Projects: Nature of Revenues
Non-Recourse Projects ABENGOA Nature of Revenues of Main Project Types Average remaining life of current Total life projects Characteristics Fixed price linked to inflation which is paid based on availability (no demand risk). Transmission The “off-taker” of the concessions is formed by a pool o
Slide 38: Detail of Backlog
Corporate (“ex Non-Recourse”) Activities ABENGOA Detail of Backlog Order Order book book covers covers 19 19 months months of of sales sales in in contracting contracting activities activities Portfolio % over Business Units Sept 09 Dec 08 Industrial Engineering and Construction(*) 4,083 M€ +30% 21
Slide 39: Corporate Debt
ABENGOA Corporate Debt Most of corporate debt is incurred by Abengoa SA: - represents 80% of total corporate debt - benefits from the upstream guarantee of main operating subsidiaries Corporate debt is backed by corporate assets of 3,056M€ and corporate EBITDA of 450 M€ LTM June 09 Additionall
Slide 40: Corporate Debt Refinancing Strategy
ABENGOA Corporate Debt Refinancing Strategy Abengoa Forward Start Facility (FSF) 1,533 M€ financing 2 year extension of July 2010 (266 M€) and July 2011 (1,266 M€) maturing Existing Facilities only; (2012 maturities will remain) Proposed pricing for banks agreeing to the extension: 275 bps until