Acciona Sa · BME:ANA
Acciona Sa — Investor Presentation (May 2010)
60 slides from Acciona Sa's investor presentation, May 2010
Slide 1: Pioneers in development and sustainability
acciona Pioneers in development and sustainability May 2010
Slide 2: Table of contents
Table of contents 1. ACCIONA overview 2. Core businesses 3. ACCIONA’s Business Plan 2010E-2013E 4. Conclusions Appendix: ACCIONA Energy Operating Portfolio
Slide 3: 1. ACCIONA overview
1. ACCIONA overview
Slide 4: ACCIONA's current portfolio of services
ACCIONA’s current portfolio of services ACCIONA’s ACCIONA’s business business model model rests rests on on three three pillars: pillars: Energy, Energy, Infrastructures Infrastructures and and Water Water Energy Infrastructures Water Services Energy Infrastructures Water Urban and Environmental Ren
Slide 5: Business Plan 2010E – 2013E
Business Plan 2010E – 2013E Core businesses ~98% Capex Financial ratios de-gearing as key objective Significant investment effort (€6,500m) Self-financing of ~50% Internationalization strategy Disposal of non-core assets not contemplated in Business Plan - Rotation of mature concessions
Slide 6: Priority countries
Priority countries 11 countries of strategic interest CANADA POLAND USA ITALY INDIA COLOMBIA MEXICO UAE BRAZIL CHILE AUSTRALIA 5
Slide 7: FY2009 results
FY2009 results P&L main figures ACCIONA’s ACCIONA’s solid solid business business model model resulted resulted in in very very positive positive results results for for the the year year 2009 2009 in in the the current current challenging challenging environment environment Key Figures EBITDA Break
Slide 8: 2. Core businesses
2. Core businesses
Slide 9: Energy
Energy Hydro Concentrated Photovoltaic Conventional Wind Biomass WTG Biofuels special regime Solar Power Solar Hydro 8
Slide 10: The world at an energy crossroads
The world at an energy crossroads Outlook Outlook for for global global energy energy demand demand isis being being challenged challenged by by multiple multiple factors factors fuelling fuelling aa trend trend towards towards renewable renewable energy energy Dependence on fossil fuels Increasing
Slide 11: Over 20 years of experience
Over 20 years of experience Leader in the renewable energy market Evolution of ACCIONA's total installed capacity (MW) 7,437 CAGR 37% 4,871 4,090 3,337 2,647 2,204 1,791 1,308 1,094 396 602 833 19 23 33 36 45 89 150 247 Note: Data as of 31.12.2009 10
Slide 12: In key technologies
In key technologies The only company with leadership in all viable renewables HORIZONTAL INTEGRATION ELECTRICITY BIOFUELS Wind Hydro Biomass SPV CSP Biodiesel Bioethanol 6,230 911 33 49 114 270,000 t. 26,000 t. Total Total renewables: renewables: 7,437MW 7,437MW 11
Slide 13: In key growth markets
In key growth markets Geographical hedge Note: Data as of 31.12.2009 12
Slide 14: Across the entire value chain
Across the entire value chain Vertical integration Value chain Project Wind turbine Energy Engineering Construction Finance O&M Ownership develop. manufacture trading Operation, sale of energy and Development Industrial services Activities 13
Slide 15: ACCIONA Energía today
ACCIONA Energía today 11 22 33 O&M, O&M, energy energy Development Development management management and and Industrial Industrial services services 14
Slide 16: Pipeline
1 Pipeline Phase 1: >50% advanced Phase 2: 25%-50% advanced 29% 29% Spain Spain Phase 3: <25% advanced 71% 71% International International Under Phase 1 Phase 2 Phase 3 TOTAL Construction MW 284 2,631 9,605 11,661 24,181 % 1 11 40 48 100 15
Slide 17: Capacity expansion
2 Capacity expansion 685MW 685MW of of average average annual annual growth growth ~€985m ~€985m average average annual annual Capex Capex 0.3GW 32MW 10.2GW 2.4GW 39% 39% 7.4GW International International 24% 24% International International Capacity Expansion Σ2010E-2013E: 2.7GW 76% Wind “equivalent
Slide 18: Capacity & production
2 Capacity & production 2009 2013E Total Installed 84% Wind 85% Capacity 12% Hydro 9% 0.7% Solar PV 0.5% 2% Solar Thermoelectric 4% 0.4% Biomass 0.6% 1.3% Cogeneration 0.8% TOTAL 7.4GW 1.4x 1.4x TOTAL 10.2GW 85% Wind 83% Production 8% Hydro 10% Total 0.7% Solar PV 0.3% 0.9% Solar Thermoelectric 3% 1
Slide 19: ACCIONA Windpower: Overview
3 ACCIONA Windpower: Overview World’s #8 turbine manufacturer No. Plants: 3 (2 in Spain, 1 in USA) and production capacity of 1,350 units / year Product: Currently producing the AW-1500 and the AW-3000 turbines Strategic activity: – Enables cost control (>70% of investment) – Leverage on mor
Slide 20: ACCIONA Windpower: Order Backlog Σ2010E-2013E
3 ACCIONA Windpower: Order Backlog Σ2010E-2013E 2.0GW 5.2GW 0.9GW 2.3GW(1) ACCIONA Contracted Non Contracted Σ2010E-2013E (1): Including EPC 19
Slide 21: Infrastructure
Infrastructure Construction Concessions 20
Slide 22: Global Infrastructure Gap
Global Infrastructure Gap Global Drivers Increasing global infrastructure needs Global Global economic Private capital drivers crisis Governments’ commitment 21
Slide 23: Differentiating factors of ACCIONA
Differentiating factors of ACCIONA Our DNA Track record & Technology Integrated ACCIONA Offer Versatility Business Model Global Reach 22
Slide 24: Integrated business model
Integrated business model Concessions/PPP Sponsor Sponsor and and Design Design Hands on management Operation Operation & & throughout Finance Finance Maintenance Maintenance the life of the project Build Build 23
Slide 25: ACCIONA's current portfolio of concessions/PPP
ACCIONA's current portfolio of concessions/PPP Road Rail Canal Port Univers. Hospital TOTAL Number of 9 3 1 1 1 5 20 concessions Capital Employed: 550 55 37 6 23 187 858 Equity + ND (€m) Countries Rotation Rotation of of mature concessions Σ2010E-2013E: mature concessions Σ2010E-2013E: €450m €450m 2
Slide 26: Offer versatility
Offer versatility Buildings, transport infrastructure, marine works, dams Transport Flagship Buildings Dams Infrastructure Projects “Ciudad “Ciudaddedelas lasArtes Artesyylas las “Estación “EstaciónNorte”, Norte”,Madrid Madrid Petronas PetronasTwin TwinTowers, Towers, Guavio Guaviodam, dam,Colombia
Slide 27: Global reach
Global reach Qacciona 26
Slide 28: Recent award: Calgary highway in Canada
Recent award: Calgary highway in Canada ACCIONA ACCIONA awarded awarded second second highway highway contract contract in in Canada Canada to to build build and and operate operate the the expressway expressway and and act act as as concessionaire concessionaire for for aa period period of of more
Slide 29: Water
Water Water {acciona 28
Slide 30: A market of the future
A market of the future Global drivers - “Water crisis” Demographic changes Global Ageing Climate change drivers infrastructure Higher water standards 29
Slide 31: The water challenge
The water challenge Water needs 2025 > MIND THE GAP 5,200 4,890 Km3/yr Km3/yr 5% Reservoirs 10% 510Km3/yr 15% Domestic 7% “More” Conventional Resources “NEW WATER” 25% Industrial 82% Conventional FILLS THE GAP resources 55% Agricultural 1% Desalination USES SOURCES 30
Slide 32: The water market
The water market Desalination cost Desalination costs versus other sources of water 31
Slide 33: ACCIONA Agua
ACCIONA Agua Business overview Designer, Designer, builder builder and and operator operator of of water water facilities facilities Leader Leader in in wastewater wastewater && drinking drinking water water Global Global leader leader in in RO RO desalination desalination treatment and integrated w
Slide 34: ACCIONA Agua Three Pillars for Growth
ACCIONA Agua Key competitive advantage Three Pillars for Growth Total Solution International Technology Provider Footprint Leadership 33
Slide 35: Total Solution Provider
Total Solution Provider Design R&D Construction Our Offer Regulated Commissioning Business O&M Ability to tender every type of project Benefits and Wrap up guarantees in front of client Advantages Facilitates project financing 34
Slide 36: Total Solution Provider
Total Solution Provider SWRO Adelaide (Australia) 9 9 9 9 9 WWTP Atotonilco (Mexico DF) 9 9 9 9 9 9 35
Slide 37: International footprint and scale
International footprint and scale Presence in key growth markets Current Offices Short Term Target Current Presence New Permanent Offices Venezuela Mexico Spain Egypt Dominican Brazil Italy Colombia Rep. Chile Portugal India Algeria Peru USA Australia Egypt UK UAE 36
Slide 38: Technology leadership
Technology leadership Landmark projects Thames Tampa Bay Gateway Thames Gateway desalination plant Tampa Bay Seawater desalination London (150,000 m³/day) plant, Florida (108,000 m³/day) Very complex water treatment: Contract to fix and operate: 18 years Thames River & Sea Water 37
Slide 39: 3. ACCIONA's Business Plan 2010E-2013E
3. ACCIONA’s Business Plan 2010E-2013E
Slide 40: Key financial targets 2013E: Revenue, EBITDA, PBT
Key financial targets 2013E Revenue, EBITDA, PBT 11,000 CAGR 14% Revenue 6,512 (€m) 2,300 CAGR 22% EBITDA (€m) 1,043 21% 16% 950¹ CAGR 45% (€m) PBT 9% 215 3% margin ¹ Includes €50m capital gain from concession disposals in 2013 39 Note: Includes consolidation adjustments
Slide 41: Key financial targets: Capex, ND/EBITDA
Key financial targets Capex, ND/EBITDA 6,500 (€m) Capex Investment effort 1,625 ∑2010E-2013E Annual Avg 2010E-2013E 2.6x 6.4x EBITDA¹ (X) Net Debt/ Financial de-gearing 3.8x 1 2009 proforma multiple including full year contribution from Endesa acquired assets 40
Slide 42: Key financial targets: EPS, DPS
Key financial targets EPS, DPS 8.81 (€/share) CAGR 40% EPS¹ (€/share) 2.27 Minimum Target: 3.4 DPS2 ¹ Excluding capital gains 41 ² Dividend accrued in 2013E
Slide 43: Key financial targets 2013E: International contribution
Key financial targets 2013E International contribution 2009 2013E Int Int Revenue 24% International 37% (€m) Spain 76% CAGR 26% Spain 63% €1.6bn x2.5 €4.0bn Int International Int EBITDA 22% CAGR 39% 37% (€m) Spain 63% Spain 78% €227m x3.7 €844m International Spain 42
Slide 44: Core business growth & contribution
Core business growth & contribution 2009A CAGR 2013E €m % % €m % Energy 1,248 18% 30% 3,500 32% Revenue Infrastructure 3,613 53% 8% 5,000 45% (€m) Water & Envir. Services 509 8% 17% 950 9% Contribution (%) 79% 86% 2009A CAGR 2013E €m % % €m % Energy 629 59% 26% 1,600 71% EBITDA (€m) Infrastructure 2
Slide 45: Key financial targets: Breakdown by division
Key financial targets Breakdown by division: Other business 20% 10% 7% Revenue 2013E 14% 5% Logistics 58% Real Estate €11.0bn Multiservices €1.6bn Bestinver Other 6% 18% 29% EBITDA 2013E 11% 3% 44% €2.3bn €271m Proactive management to maximise value during economic cycle 44
Slide 46: Key financial targets: Real Estate
Key financial targets Real Estate Housing Housing Stock Stock (units) (units) 2009 2013E 1,743 61 Capex Σ2010E-2013 Capex Σ2010E-2013 (€m) (€m) 336 68 -268 Gross Capex Rental Asset Net Capex Divestment 45
Slide 47: Key financial targets: Capex
Key financial targets Capex 98% 98% of of investment investment effort effort concentrated concentrated on on core core strategic strategic business: business: Energy, Energy, Infrastructure Infrastructure and and Water Water Σ2010E - 2013E 6% Water & Environmental 2% Other Business¹ Services 31% In
Slide 48: Financing of the business plan
Financing of the business plan €m + Gross Capex Σ2010E-2013E +6,500 - FFO Σ2010E-2013E¹ -2,258 - Concessions disposals -450 - Minority Shareholders -420 = Net Funding Required +3,372 Investments pending financing 52% Liquidity Analysis as of 31.12.2009 + Undrawn Credit Lines +1,384 + Cash +1,451 = L
Slide 49: Deleveraging
Deleveraging 2009 2013E NFD/ EBITDA 6.4x1 3.8x NFD with Recourse/ Recourse 4.0x1 1.1x EBITDA Non-Recourse Non-Recourse debt debt weight weight increased increased (86% (86% in in 2013E) 2013E) 1 2009 proforma multiple including full year contribution from Endesa acquired assets 48
Slide 50: Deleveraging
Deleveraging Capital Capital Intensive Intensive Business: Business: Energy Energy and and Concessions Concessions Project Project Finance: Finance: Maximizes Maximizes growth growth rate rate and and returns returns Dec 2009: Debt not generating EBITDA → €1,508m Adjusted Adjusted Ratio Ratio 2009 2
Slide 51: Case Study: Wind Farm in Spain
Case Study Wind Farm in Spain Evolution of Gearing Ratios EBITDA (€m) Net Debt (€m) Construction period Net Debt 30 EBITDA 250 25 200 20 150 15 100 10 Becomes 5 Operational 50 2007 0 0 2006 2010 2014 2018 2022 ND/EBITDA Average 3.4x 7.9x 5.5x 4.4x 2.1x 0x 50
Slide 52: Case Study: CSP Plants in Spain
Case Study 3 CSP Plants in Spain Evolution of Gearing Ratios EBITDA (€m) Net Debt (€m) Construction Net Debt period 120 EBITDA 600 100 500 80 400 60 300 40 200 Becomes 20 Operational 100 2011 0 0 2009 2012 2015 2018 2021 2024 2027 2030 2033 2036 2039 2042 ND/EBITDA Average 1.4x n.s. 5.7x 3.3x 1.6x 0
Slide 53: Case Study: A30 Concession Canada
Case Study A30 Concession Canada Evolution of Gearing Ratios EBITDA (€m) Net Debt (€m) Construction Net Debt period EBITDA 70 350 60 300 50 250 40 200 30 Becomes 150 Operational 20 2013 100 10 50 0 0 2009 2013 2017 2021 2025 2029 2033 2037 2041 ND/EBITDA Average 3.5x n.s. 6.7x 6.1x 5.6x 5.9x 3.7x 2.
Slide 54: Key terms
Key terms Wind Wind CSP CSP A30 A30 Concession Concession (Spain) (Spain) (Spain) (Spain) (Canada) (Canada) 2.9%/ 3.65% All All In In Cost Cost 3.4% 3.9% scaled Gearing Gearing 80% 70% 89% 7 Miniperm Debt Debt Life Life 18 years years underlying 30 years 19.5 years 53
Slide 55: Refinancing
Refinancing The alternatives for refinancing assets acquired from Endesa are currently being reviewed by a widen group of financial institutions The status of these negotiations and interest from the market lead us to believe that it will be completed before maturity date (July 2011) Option Opti
Slide 56: 4. Conclusions
4. Conclusions
Slide 57: Conclusions
Conclusions ACCIONA’s ACCIONA’s future future business business strategy strategy relies relies on on three three pillars pillars under under the the sustainability sustainability umbrella: umbrella: Infrastructure, Infrastructure, Energy Energy and and Water Water In In the the current current chal
Slide 58: Appendix
Appendix
Slide 59: Appendix: ACCIONA Energy operating portfolio
Appendix: ACCIONA Energy operating portfolio Main Operating Portfolio main characteristics Assets Gross MW Net MW Average COD Load Factor Wind Spain 4,591 3,922 Jan - 2005 25.8% Transtory regime 3.698 3.069 Feb - 2004 26.0% RD 661/2007 893 853 Feb - 2009 25.0% Wind USA 490 415 Aug - 2008 37.6% Wind
Slide 60: Pioneers in development and sustainability
acciona Pioneers in development and sustainability May 2010