Acciona Sa · BME:ANA
Acciona Sa — FY2014 Earnings Presentation
50 slides from Acciona Sa's earnings presentation, Feb 26, 2015
Slide 1: 2014 Results January - December
2014 RESULTS JANUARY - DECEMBER 26% February 2015
Slide 2: Disclaimer
Disclaimer This document has been prepared by ACCIONA, S.A. (“ACCIONA” or the “Company”) exclusively for use during the presentation of financial results for the full year of 2014 (FY 2014). Therefore it cannot be disclosed or made public by any person or entity with an aim other than the one expres
Slide 3: Table of contents
Table of contents 1. 2014 key highlights 2. Group financial information 3. Energy 4. Infrastructure 5. Other activities 6. Q&A session Appendix FY 2014 3
Slide 4: 1. 2014 key highlights
1. 2014 key highlights
Slide 5: 2014 key highlights
2014 key highlights ACCIONA is overcoming the regulatory setback − Back to profits and restored growth potential − Significant reduction in net debt and leverage − Strengthened business as a whole As a result of a two-year comprehensive Action Plan delivered exceeding initial targets − Organizationa
Slide 6: Action Plan: Commitments and delivery (i)
Action Plan: Commitments and delivery (i) Action Target Actual Status 2013 - 2014 Energy capex Energy capex Σ2013-14: Energy capex Σ2013-14: deceleration €550-630m €487m Minority EV Σ2013-2014: partnerships / Asset rotation €500-1,000m €1,000m NFD / EBITDA Deleverage from 5.7x to < 5x 4.9x as of Dec
Slide 7: Action Plan: Commitments and delivery (ii)
Action Plan: Commitments and delivery (ii) Action Target Actual Status 2013 - 2014 Initial target of 20% AWP: COE reduction reduction by end-14 later increased to 25% 28% Infrastructure: Infrastructure division Reorganisation reorganisation improved profitability EBT 2013: -€1m EBT 2014: 90m Bank re
Slide 8: Action Plan: Key financials indicators
Action Plan: Key financials indicators Capex deceleration (€m) Dividend (€m)¹ -67% Leverage ratio NFD/EBITDA NFD (€m) -0.8x ¹ Dividend distributed the following year against the results of the year shown in the table ² 2011-2012 Figures not restated under new IFRS principles in place since 1/01/2014
Slide 9: Outlook - 2015
Outlook - 2015 Moderately optimistic outlook based on stronger ACCIONA and improving business environment ACCIONA will continue to work to improve its balance sheet, profitability, and growth potential 2015 outlook: − Approach 4.5x Net Debt / EBITDA by year end − Strike right balance between leverag
Slide 10: Outlook - 2015
Outlook - 2015 Growth expected at the two core divisions: Energy and Infrastructure EBITDA: Low single digit growth - dampened by Bestinver Capex: ~€350m Flexibility NFD / EBITDA Approach 4.5x Dividend distribution resumed in 2015 - attributable to 2014 results FY 2014 10
Slide 11: 2. Group financial information
2. Group financial information Carlos Arilla Group Chief Financial Officer
Slide 12: FY 2014 key figures
FY 2014 key figures % Chg. vs (€m) FY 2013 Revenues 6,499 +3.6% EBITDA 1,087 +2.4% EBITDA (ex regulatory impact) 1,275 +11.8% Ordinary EBT 233 +8x Ordinary capex 340 +0.2% NFD 5,294 -12.4% FY 2014 12
Slide 13: Group: Capex by division
Group: Capex by division Capex breakdown By division Key highlights (€m) Capex Flat net ordinary capex vs 2013 Jan-Dec 13 Jan-Dec 14 Energy captures most of the investment effort: Energy 205 282 - Under construction: @ Dec 2014 123MW Infrastructure 196 70 wind international Construction 156 39 - Ins
Slide 14: Group: Debt breakdown by division and nature
Group: Debt breakdown by division and nature Group debt breakdown 31-Dec-13 31-Dec-14 Gross debt by nature Non- Debt with Gross Cash + (€m) Net debt recourse Net debt recourse debt C. Equiv. debt Recourse Energy 4,810 1,244 4,145 5,390 -737 4,653 Non-recourse Infrastructure 222 352 574 926 -674 252
Slide 15: Group: Debt with recourse & liquidity
Group: Debt with recourse & liquidity Debt with recourse: €2,036m Debt with recourse amortization schedule (€m) Debt with recourse (€m) 31-Dec-14 Convertible Total bank debt 508 bond¹ Commercial paper programme 433 305 Bonds 229 Convertible bond 305 Others (ECAs, Supranationals) 561 Total non-bank d
Slide 16: Group: Non-recourse debt amortization schedule
Group: Non-recourse debt amortization schedule Group: Debt amortization Principal schedule repayment schedule 2014-2024 (€m) 363 347 333 308 6 305 42 287 10 81 32 29 10 12 31 31 27 115 31 100 84 66 83 77 180 191 199 170 166 171 2015 2016 2017 2018 2019 Average 2020-24 Note: Repayment schedule during
Slide 17: Group: Net debt evolution
Group: Net debt evolution Net debt reconciliation FY 2014 (€m) LTM: -€746m (-12%) 370 308 509 5,362 466 -€810m -€248m +€313m 4,319 Operating CF Investment CF Financing CF Debt associated to work in progress Derivatives *IFRS 11 restated FY 2014 17
Slide 18: 3. Energy
3. Energy Rafael Mateo CEO ACCIONA Energy
Slide 19: Energy: Key figures
Energy: Key figures Key figures EBITDA evolution (Million Euro) Jan-Dec 13 Jan-Dec 14 Chg. Chg. (%) €854m €788m Variation +€75m Revenues 1,972 2,200 228 11.6% -8% -€110m -€31m Var. ex reg. EBITDA 854 788 -66 -7.7% changes FY 2013 Additional Chg in Operational FY 2014 +5% Margin (%) 43.3% 35.8% EBITD
Slide 20: Energy: Installed capacity and under construction
Energy: Installed capacity and under construction Installed MW + Under construction MW @ FY 2014 Installed MW Under constr. MW Total Consolidated Eq accounted Net Consolidated Wind - Under construction Wind Spain 4,743 3,466 619 4,074 0 South Africa 93MW Wind international 2,344 2,102 49 1,409 123 C
Slide 21: Energy: Severe impact of cumulative measures
Energy: Severe impact of cumulative measures Impact of regulatory changes 2012-2014 Law 15/2012¹ RD Total impact + RDL 2/2013² 413/20143 Revenues -€23m -€203m -€226m EBITDA -€104m -€188m -€292m EBT -€115m -€231m -€346m EBT would have been €346m higher excluding the total impact of regulatory measure
Slide 22: Energy: ACCIONA Windpower
Energy: ACCIONA Windpower ACCIONA Windpower Assembly of turbines (MW) Backlog (MW) 1,093 International 100% 762 +557MW 205 AWP installed 762MW in FY 2014 vs 205MW in FY 2013 FY 2014 22
Slide 23: Energy: Global trends
Energy: Global trends 1 RE to represent almost 60% of new installed capacity globally Renewables are Renewable capacity to grow c.200% mainly wind and solar the technologies with the highest 95 emerging economies with active policies in RE in 2014 (vs expected growth 15 in 2005)¹ $7.4tn of expected
Slide 24: Energy: Global trends
Energy: Global trends 3 Wind LCOE cheaper than nuclear and coal, and competitive with CCGT in almost all non-fossil fuel subsidizing countries and many developed economies Almost cost competitive¹ − Global wind LCOE $82/MWh same as CCGT. Coal $91/MWh, nuclear $140/MWh − Expected LCOE reduction in th
Slide 25: Energy: Strategy
Energy: Strategy Focus on Wind fleet COE reduction program in place maximizing – Continuing efforts in O&M efficiency (-25% in the last 3 years) value and cash- – Availability and performance improvement initiatives flow from – Useful life increase action plan (>25 years) operating assets Optimizati
Slide 26: Energy: Strategy
Energy: Strategy Selective growth focused on profitability securing solid debt/EBITDA ratios 93MW under construction (wind) in South Africa as of Dec. 2014 Progressive Started construction of 30MW in Poland (wind) in 2015 recovery of growth with 600GWh/yr PPA for 2018 in Chile ready to build in 2016
Slide 27: Energy: Outlook 2015
Energy: Outlook 2015 EBITDA Capacity additions: ~150MW Capex: ~€170m − Assets under construction + potential development of ready to build MWs AWP: Consolidation of positive EBIT contribution Energy Single digit percentage change approximately Double digit percentage change approximately FY 2014 27
Slide 28: 4. Infrastructure
4. Infrastructure Luis Castilla CEO ACCIONA Infrastructure
Slide 29: Infrastructure: Key highlights
Infrastructure: Key highlights Key figures Reorganization accomplished (Million Euro) Jan-Dec 13 Jan-Dec 14 Chg. Chg. (%) Maximize specialization (3 new civil works Revenues 3,775 3,727 -49 -1.3% business lines and 3 industrial business lines) Overhead costs EBITDA 121 173 52 43.4% Improve the effic
Slide 30: Construction: Key figures and backlog
Construction: Key figures and backlog Key figures Construction backlog FY 2014 (Million Euro) Jan-Dec 13 Jan-Dec 14 Chg. Chg. (%) International 64% Revenues 2,653 2,626 -27 -1.0% Spain EBITDA 60 118 58 97.2% 36% Margin (%) 2.3% 4.5% €5,693m International backlog FY 2014 Key highlights By region EBIT
Slide 31: Water and Service
Water and Service Water: key figures Service: key figures (Million Euro) Jan-Dec 13 Jan-Dec 14 Chg. Chg. (%) (Million Euro) Jan-Dec 13 Jan-Dec 14 Chg. Chg. (%) Revenues 495 409 -85 -17.2% Revenues 628 691 63 10.1% EBITDA 40 35 -6 -14.3% EBITDA 21 21 0 0.1% Margin (%) 8.2% 8.4% Margin (%) 3.3% 3.0% K
Slide 32: Infrastructure: Concessions
Infrastructure: Concessions Road Rail Canal Port Hospital Water TOTAL # of concessions 12 1 1 1 5 56 76 Proportional EBITDA FY 2014 (€m) 62 2 3 0 23 78 162 Consolidated EBITDA FY 2014 (€m) 32 0 0 0 15 24 65 Average life (yrs) 32 35 30 30 28 n.m. n.m. Average consumed life (yrs) 8 5 8 9 6 n.m. n.m. I
Slide 33: Infrastructure: Global trends
Infrastructure: Global trends Rapid population and urbanization growth Estimated global infrastructure needs $57tn by 2030: new transport, urban, energy, water, workplaces, healthcare and educational facilities & infrastructure needed New funding models (PPP are critical, increasing interest from de
Slide 34: Infrastructure: Strategy
Infrastructure: Strategy Focus on core specialized business offer in construction and PPPs development: • Rail & Tunnels • Water I • Roads • Industrial • Ports & Hydraulic works • Services Take advantage of our construction and operational capabilities, attracting capital II partners on the PPPs dev
Slide 35: Infrastructure: 2015 Key Opportunities
Infrastructure: 2015 Key Opportunities Est. pipeline Key opportunities by region (Bn€) Middle East: Transport, hospitals, water, services and industrial UK: High Speed 2 Program EMEA 17.6 Scandinavia: Transport Rest of Europe: Junker plan North Canada: Transport PPPs and mining America 4.2 US: Trans
Slide 36: Infrastructure: Outlook 2015
Infrastructure: Outlook 2015 Construction Water Service Industrial Revenues Revenues Revenues Revenues EBITDA EBITDA EBITDA EBITDA Capex ~€100m Capex ~€25m Capex ~€25m Capex n.m. Backlog = Backlog = Backlog = Backlog International backlog Concessions and O&M International backlog International backl
Slide 37: 5. Other activities
5. Other activities Juan Muro-Lara Chief Corporate Development and IR Officer
Slide 38: Other activities
Other activities Key figures EBITDA breakdown (Million Euro) Jan-Dec 13 Jan-Dec 14 Chg. Chg. (%) (Million Euro) Jan-Dec 13 Jan-Dec 14 Chg. Chg. (%) Revenues 635 692 58 9.1% Trasmediterranea 11 30 19 178.9% Real Estate -2 3 5 n.m. EBITDA 87 126 39 44.4% Bestinver 78 96 17 22.2% Margin (%) 13.7% 18.1%
Slide 39: Trasmediterranea
Trasmediterranea Key figures Key highlights (Million Euro) Jan-Dec 13 Jan-Dec 14 Chg. Chg. (%) Trasmediterranea improved its EBITDA by €19m Growth mainly driven by: Revenues 419 417 -1 -0.3% – Efficiency gains EBITDA 11 30 19 178.9% – Average prices for passengers and vehicles – Increase in cargo vo
Slide 40: Real Estate: 2014 independent asset appraisal
Real Estate: 2014 independent asset appraisal GAV 2014 breakdown By region By asset type 61% Residential 21% Offices 18% Others Development Land Rental Book value Gross capital gain GAV 2014: €1,529m Note: Independent asset appraisal – Savills, Aguirre Newman and Instituto de valoraciones FY 2014 40
Slide 41: Bestinver
Bestinver AUM evolution (€m) AUM: -€2,458m New investment team since Oct. 2014 8,930 6,472 Beltrán Lastra Chief Investment Officer Ricardo Cañete Iberian equity manager Benito Artiñano Fixed income manager Gustavo Trillo Chief marketing officer EBITDA contribution of €96m in FY 2014 FY 2014 41
Slide 42: Bestinver
Bestinver Performance 31/10/2014¹ to date Key highlights +19% AUM Dec. 2014: €6.5bn including €1.1bn² of +17% institutional investment mandate with +13% redemption executed on 2nd January 2015 Outflows stabilized to normalized levels Strong performance of funds since 31/10/2014 AUM outflows (€m) Sic
Slide 43: Action plan 2013 - 2014: Assets rotation
Action plan 2013 - 2014: Assets rotation Plan de acción: Status Financial partners in core Rotation of non-strategic Rationale Deleveraging assets businesses less capital- intensive growth ~€1.0bn Target €0.4bn range: €0.6bn €1.0bn €0.5bn FY 2014
Slide 44: 6. Q&A session
6. Q&A session
Slide 45: Appendix
Appendix
Slide 46: FY 2014 key highlights and disposals
FY 2014 key highlights and disposals ► Conditions precedent completed ► 2.2GW net operating renewable capacity in 11 ► Effective closing in October with cash international markets Strategic proceeds inflow ► Additional announced assets are pending of alliance with ► Acquisition price of €397m some c
Slide 47: FY 2014 key highlights
FY 2014 key highlights ► Disposal of German wind assets ► Impact FY 2014: (150MW) for EV €157m • No P&L contribution for 2014 ► Debt decons. as of Dec 2013: €85m • Capital gain: +€28m / Cash: +€67m +€36m ► Sale of two minority stakes of 12% ► Impact FY 2014: and 13% of two transport concessions • Ca
Slide 48: Energy: Wind drivers by country
Energy: Wind drivers by country Wind prices (€/MWh) and Load factors (%) FY 2014 FY 2013 Chg. (%) Av. price (€/MWh) LF (%) Av. price (€/MWh) LF (%) Av. price (€/MWh) Spain Average 56.5 25.0% 84.4 27.6% -33.0% Spain - Regulated 67.7 Spain - Not regulated 36.1 Canada 55.3 32.5% 59.8 35.1% -7.5% USA ¹
Slide 49: Energy: Capacity under the accounting equity method
Energy: Capacity under the accounting equity method Detail of capacity accounted under the equity method FY 2014 (proportional figures) 31-Dec-14 MW GWh EBITDA NFD Average COD Wind Spain 619 1,493 47 229 2005 Wind International 49 127 6 13 2005 Australia 33 88 4 9 2005 Hungary 12 23 2 5 2006 USA 4 1
Slide 50: 2014 Results January - December
2014 RESULTS JANUARY - DECEMBER 26% February 2015