Slide 1: First Nine Months of 2014 Earnings Presentation
First Nine Months of 2014 Earnings Presentation ABENGOA November 12, 2014
Slide 2: 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 3: Agenda
(1) Strategy & Business Update (4) Appendices ABENGOA agenda
Slide 4: Strategy & Business Update
ABENGOA Agenda (1) Strategy & Business Update
Slide 5: Sept. YTD 2014 at a Glance
Sept. YTD 2014 at a Glance 5 (1) Proforma diluted EPS excludes the M-t-M of derivatives (hedging & embedded options in convertible bonds): -15M€ and +55 M€ in the first 9 months of 2014 and 2013, respectively (2) Proforma Corporate Net Debt and Leverage Ratio adjusted by the 250 M€ of cash to be col
Slide 6: Sept. 2014 YTD Highlights
Sept. 2014 YTD Highlights Business Performance 6 Continued growth in EBITDA & Net Income Positive performance of Biofuels Concessions delivering as expected Execution of Strategic Plan First sale of ROFO asset to ABY Refinancing of syndicated loan at a lower cost Cash generated from working capital
Slide 7: Geographic Diversification
Geographic Diversification 7 North and South America Key Regions, with Increased Focus in Developing Business in Emerging Markets Sept YTD 2014 Sept YTD 2013 Core Geographies 37% Revenues by Region Weight (%) 36% 25% M€ Y-o-Y Growth +6% Trend expected to continue in key regions Increased focus in em
Slide 8: Engineering & Construction
Engineering & Construction 1 3,595 M€ +1% YoY Revenues (M€) -5% EBITDA (M€) Margin (M€) E&C Highlights 16.1% 16.3% 3,253 524 504 3,090 Bookings (YTD’14) Delivering solid margins in all our end products Commencement of E&C works for Chile CSP, T&D Brazil, Ashalim CSP, etc. with slower ramp-up than an
Slide 9: +165 B€ of Pipeline Opportunities Diversified by Sector & Region
+165 B€ of Pipeline Opportunities Diversified by Sector & Region E&C Pipeline 9 Opportunities Type Size 22.1 B€ 31.9 B€ 14.7 B€ 19.7 B€ 62.5 B€ 14.7 B€ Thermal energy storage leading significant increase in opportunities. Acceleration of Electric sector privatization process in Mexico 165.6 B€ 80% >
Slide 10: Considerable Award Processes to Be Resolved in the Next 4 Months
Solar T&D Conventional Industrial Plants Water Others Considerable Award Processes to Be Resolved in the Next 4 Months(1) Zoom in E&C Pipeline 10 Represents management’s best estimate of the value of commercial opportunities expected to be resolved over the next four months for which Abengoa has sub
Slide 11: Abengoa Concessions
Abengoa Concessions 2 Abengoa Concessions Highlights 60.6% 64.6% 1,223 MW 5,143 Km 743 MW 660 ML/day Growing business and margins from new assets brought in operation and efficiencies achieved in our assets Reduced equity investment in projects as planned; on target for 2014E Concessions contracted
Slide 12: Successful Closing of the First Sale of Assets to ABY after IPO
755 M€ 119 M€ 1,184 M€ 65 M€ Successful Closing of the First Sale of Assets to ABY after IPO Still Significant Value in Abengoa’s Concessions for Future Sales ABY equity BV numbers above include the 207 M€ value of the preferred equity in ACBH. Abengoa owns 64% of the 1,689 M€ ABY’s equity BV 12 Fir
Slide 13: Biofuels
Biofuels 3 Biofuels Highlights 10.4% 1,567 1,578 5.2% Hugoton in operation Excellent operational performance in all our plants Increasing the diversification of products produced Strong margin during Q3 in all geographies 13 Revenues (M€) EBITDA (M€) Margin (M€) +1% +103% Revenue Breakdown 1,861 ML
Slide 14: Hugoton inaugurated on Oct.
Hugoton inaugurated on Oct. 17 14 25 Mgal Cellulosic Ethanol Plant Biomass-to-ethanol Biorefinery Located in Hugoton, KS Main Highlights ~25 Mgal per year First of a kind commercial scale biorefinery facility Proprietary Enzymes produced as expected Continuing the process of smooth and safe ramp up
Slide 15: Financial Review
ABENGOA agenda Cm a
Slide 16: Sept. YTD 2014 Financial Highlights
Sept. YTD 2014 Financial Highlights 16 YTD Sept 2014 revenues €5.2bn +0.1% YoY ebitda €1.1bn +24.4% YoY net income €100mn +37.9% YoY P&L Balance Sheet/CF Q3 corp fcf €164mn vs -€239 mn in Jun’14 equity recycled(1) €861mn 2014 YTD Other KPI’s €7,305 mn +3.3% YoY concessions backlog €40.3bn As of Sep.
Slide 17: Maintaining a Solid Total Backlog of ~47.6 B€
Maintaining a Solid Total Backlog of ~47.6 B€... Sept. 2014 Total Backlog 17 +40 B€ of contracted revenues; 25 years average remaining life Long-term agreements: feed-in & ad hoc tariffs, take-or-pay contracts, power/water purchase agreements €7,305mn +3.3% YoY E&C Backlog Estimated Conversion to Re
Slide 18: Net Debt Position Reduced
Net Debt Position 18 Reduced Leverage Through Execution of Strategic Plan Proforma Corp. Net Debt(1) Concessions Net Debt(2)(3)(4) 2.1x Adj. Corp. Net Debt 2.1x ~1,300 M€ (1.3x) Abengoa stake in ABY(5) Corp. Leverage without considering stake in Abengoa Yield 0.8x (1) Proforma Corporate Net Debt and
Slide 19: Improved Maturity Profile
Improved Maturity Profile 19 Reinforced and extended maturity profile, diversified in sources Successful refinancing of syndicated loan leaves no significant refinancing needs through 2016 Rest of 2014E 2015E 2016E 2017E 2018E 2019E Syndicated Loan (Tranche A) Other corp. debt Convertible Bonds Expe
Slide 20: Positive Corporate FCF expected by YE 2014
9m 2014 Positive Corporate FCF expected by YE 2014 • Corporate EBITDA 211 205 183 599 • Net Financial Income/(Expense) (98) (142) (153) (393) • Taxes (11) 11 3 3 • Dividends from ABENGOA YIELD - - - - Funds from Operations 102 74 33 209 • Change in Working Capital & Others (642) (162) 257 (547) Cash
Slide 21: Outlook & Targets
ABENGOA agenda (3) Outlook & Targets oO
Slide 22: FY 2014 Business Guidance & Targets
22 FY 2014 Business Guidance & Targets Raised Corp. EBITDA Guidance, Reaffirmed 2014E EBITDA and Financial Targets. Revised Revenue Guidance Corporate EBITDA Guidance Raised for 2014 Revenues (B€) EBITDA (M€) Corp EBITDA (M€) Confirmed Confirmed Previous 2014 Financial Targets Net Corp. Leverage Cor
Slide 23: Appendices
ABENGOA Agenda (4) Appendices 1)
Slide 24: YTD Sept. 2014 Results by Activity
24 YTD Sept. 2014 Results by Activity € in Millions Revenues EBITDA EBITDA Margin YTD ‘14 YTD ‘13 Var (%) YTD ‘14 YTD ‘13 Var (%) YTD ‘14 YTD ‘13 Engineering and Construction E&C 3,090 3,253 -5.0% 504 524 -3.9% 16.3% 16.1% Total E&C 3,090 3,253 -5.0% 504 524 -3.9% 16.3% 16.1% Abengoa Concessions Sol
Slide 25: Pending Capex by segment
Pending Capex by segment Total ABG Equity Capex Amounts based on the company´s best estimate as of Sep. 30, 2014. Actual investments or timing thereof may change. Capacity Abengoa (%) Country COD Total Investment Corfo CSP Plant 110 MW 30% Chile Q1 17 1,157 Ashalim 110 MW 50% Israel Q2 17 823 Xina 1
Slide 26: Asset Portfolio Capacity
Asset Portfolio Capacity 26 Revenue visibility backed by our solid asset portfolio Solar (MW) Includes 286 MW of capacity of bioethanol plants cogeneration facilities Assumes sale of Qingdao Cogeneration & Others(1) (MW) Desalination (Ml/day) Transmissions (km) Extensive concessional asset base once
Slide 27: Thank you
Thank you ABENGOA November 12, 2014 Innovative Technology Solutions for Sustainability