Abengoa SA · OTC:AGOAF
Abengoa SA — FY2008 Earnings Presentation
37 slides from Abengoa SA's earnings presentation, Feb 24, 2009
Slide 1: 2008 Earnings Presentation
2008 Earnings Presentation 24 February, 2009
Slide 2: Forward-Looking Statement
ABENGOA Forward-Looking Statement This presentation contains forward-looking statements and information relating to Abengoa that are based on the beliefs of its management as well as assumptions made and information currently available to Abengoa. Such statements reflect the current views of Abe
Slide 3: Agenda
ABENGOA Agenda 1. 2008 Highlights 2. 2008 Detailed Financial Analysis 3. Abengoa: Our Business Plan 4. Q&A 3
Slide 4: Highlights
ABENGOA Highlights 2008: Profitable Growth continues 11 Growth Growth in in Sales, Sales, Operating Operating cash-flow, cash-flow, Ebitda Ebitda and and Net Net Profit Profit 22 Well Well balanced balanced and and diversified diversified portfolio… portfolio… …and …and well well diversified diversi
Slide 5: Agenda
ABENGOA Agenda 1. 2008 Highlights 2. 2008 Detailed Financial Analysis 3. Abengoa: Our Business Plan 4. Q&A 5
Slide 6: 2008: Profitable Growth continues
ABENGOA 2008: Profitable Growth continues 11 Growth Growth in in Sales, Sales, Operating Operating cash-flow, cash-flow, Ebitda Ebitda and and Net Net Profit Profit 22 Well Well balanced balanced and and diversified diversified portfolio… portfolio… …and …and well well diversified diversified by by
Slide 7: 2008: Main Figures
ABENGOA 2008: Main Figures Profitable growth in P&L Main Figures (€ in Million) 2008 YoY % 2007 Sales 3,115 + 17.3 2,656 Sales pro forma (*) 3,769 + 17.3 3,214 Operating Cash Flow 545 + 39.3 392 Operating Cash Flow pro forma (*) 627 + 38.7 452 Ebitda 459 + 42.2 323 Ebitda pro forma (*) 541 + 4
Slide 8: 2008: Main Figures - Balance Sheet
ABENGOA 2008: Main Figures Balance Sheet (€ in Million) 2008 2007 Investments 1,746 1,301 Net Debt ex Non-Recourse 486 234 (*) Net Debt pro forma 285 Non-Recourse Debt 2,133 1,689 (*) Non-Recourse Debt pro forma 1,672 Total Net Debt 2,619 1,923 (*) Total Net Debt pro forma 1,957 (*) In accor
Slide 9: 2008: Main Figures - P&L Account
ABENGOA 2008: Main Figures P&L Account (€ in Million) 2008 2007 Var (%) Revenue 3,114.5 2,655.8 + 17.3% Operating Cash Flow (*) 545.3 391.5 + 39.3% Ebitda 459.3 322.9 + 42.2% Depreciation and amortization expense (163.2) (89.6) + 82.2% Net operating profit 296.1 233.4 + 26.9% Interest expense (246.6
Slide 10: Profit before Tax: a brief explanation
ABENGOA Profit before Tax: a brief explanation In order to understand pretax profit evolution, the following cash/non-cash items must be considerated: (€ in Million) 2008 2007 Var (%) Profit before income tax 11.7 109.9 - 89.4% Cash effect Non-cash provision for risks (58.1) (48.7) non-cash Stock
Slide 11: Intragroup activities fully eliminated at Consolidated P&L
ABENGOA Intragroup activities fully eliminated at Consolidated P&L… …but relevant for cash-flow generation perspective. Eliminated Net Profit is recovered over the life of the project as a lower depreciation charge. Elimination of 689.7 M€ of sales and 33.8 M€ of Ebitda in Engineering for work
Slide 12: Balance Sheet
ABENGOA Balance Sheet (€ in Million) 2008 2007 Var (%) Intangible assets 1,056.9 1,227.0 - 13.9% Fixed assets in projects 2,249.8 1,638.1 + 37.3% Equity 627.5 797.5 - 21.3% Non-recourse financing 2,132.7 1,689.2 + 26.3% Total Assets = Total Equity & Liabilities 9,794.6 8,110.2 + 20.8% Net debt ex no
Slide 13: Cash-Flow Statement
ABENGOA Cash-Flow Statement (€ in Million) 2008 2007 Var (%) Cash generated by operations 229.9 313.1 Variations in working capital 475.2 148.1 A. Net cash flow from operating activities 705.1 461.2 + 52.9% Investments (1,745.8) (1,300.6) Disinvestments 167.8 136.2 B. Net cash flow from investment a
Slide 14: 2008: Profitable Growth continues
ABENGOA 2008: Profitable Growth continues 11 Growth Growth in in Sales, Sales, Operating Operating cash-flow, cash-flow, Ebitda Ebitda and and Net Net Profit Profit 22 Well Well balanced balanced and and diversified diversified portfolio… portfolio portfolio portfolio… …and …and well well diversifie
Slide 15: Profile of growth and cash flow generation with low volatility
ABENGOA Abengoa maintains its profile of growth and cash flow generation with a low level of volatility: A highly diversified portfolio enables us to maintain a profile of growth and cash flow generation with a low level of volatility: 9 49% of gross cash flow coming from recurrent, low-risk busin
Slide 16: International Activity
ABENGOA International Activity International Activity represents 65.4% of total Sales Total Abroad 2,036.9 M€ (65.4%) (+ 24%) Europe (ex Spain) 501.4 M€ (16.1%) United States (- 4%) 348.8 M€ (11.2%) Total Spain (+ 7%) 1,077.6 M€ (34.6%) Asia (+ 7%) 87.2 M€ (2.8%) (+ 15%) Africa 311.5 M€ (10.0%) (+ 9
Slide 17: 2008: Profitable Growth continues
ABENGOA 2008: Profitable Growth continues 11 Growth Growth in in Sales, Sales, Operating Operating cash-flow, cash-flow, Ebitda Ebitda and and Net Net Profit Profit 22 Well Well balanced balanced and and diversified diversified portfolio… portfolio… …and …and well well diversified diversified by by
Slide 18: Main Projects in execution: Projects timeline
ABENGOA Main Main Projects Projects in in execution execution Projects timeline 2008 2009 2010 Q1 08 Q2 08 Q3 08 Q4 08 Q1 09 Q2 09 Q3 09 Q4 09 Q1 10 Q2 10 Q3 10 Q4 10 PS 20 Start-up Q1 09 Solnova 1 Start-up Q4 09 Solnova 3 Start-up Q2 10 Solar Algeria Q3 10 Start-up Solnova 4 Q4 10 APS Investment Ta
Slide 19: Main Projects in execution: Capex and financing
ABENGOA Main Main Projects Projects in in execution execution Projects timeline Capex (All figures in M€) Solar 1.198 PS 20 20 MW Financed Solnova 1 50 MW Financed Solnova 3 50 MW Financed Algeria(51%) 150 MW Financed Financed Solnova 4 50 MW Project pipeline execution ensured Bioenergy 1.167 (2008-
Slide 20: Financial Priorities for 2009
ABENGOA Financial Priorities for 2009 Protect liquidity in a very tough financial environment: Reduce to minimum non-committed/non-funded capex Cost reduction plan in place (general expenses, etc.) Analyze potential partial divestments and partnerships Seek growth without new capital Pro
Slide 21: Financial Priorities for 2009: Debt maturities
ABENGOA Financial Priorities for 2009 Extend, whenever possible, Corporate Debt maturities. No significant refinancing needs until 2011. 9 Expected Amortization Calendar: 1.400 1.200 1.000 € in Million 800 600 400 200 0 2009 2010 2011 2012 2013-17 Synd. loans EIB loan ICO loan 21
Slide 22: Agenda
ABENGOA Agenda 1. 2008 Highlights 2. 2008 Detailed Financial Analysis 3. Abengoa: Our Business Plan 4. Q&A 22
Slide 23: Abengoa: Our Business Plan
ABENGOA Abengoa: Our Business Plan
Slide 24: Our Vision: Sustainable Development Globally
ABENGOA Our Vision: Sustainable Development Globally Environment Solar Bioenergy (Water, Recycling) Industrial Engineering and Construction including concessions (transmission) 24
Slide 25: Focused on sustainable development
ABENGOA Focused on sustainable development … Estimated percentage of Gross Cash Flow[1] FY 2008 Mid Term ¾ Solar 7% 15% ¾ Bioenergy 21% 30% ¾ Environmental 29% 20% ¾ Industrial Engineering 43% 35% Transmission Concessions 24% 20% Projects 19% 15% Total 100% 100% [1] Gross Cash Flows: Earnings be
Slide 26: ... global ...
ABENGOA … global … Estimated percentage of Revenues FY 2008 Mid Term ¾ Spain 35% 25% ¾ Rest of Europe 16% 20% ¾ U.S.A. 11% 30% ¾ Latin America 25% 15% ¾ Africa and Asia 13% 10% Total 100% 100% 26
Slide 27: ... and with a diversified risk profile
ABENGOA … and with a diversified risk profile Gross Cash Flows[1] 2008 Commodity risk; 27% Construction projects; 24% Concessions and Recurrent Businesses; 49% [1] Gross Cash Flows: Earnings before interest, tax, depreciation and amortization, adjusted by the works flows done for own fixed assets. 2
Slide 28: Strong competitive position
ABENGOA Strong competitive position High growth markets supported by clear drivers and 1.- strong regulation Leading global position in our key markets with 2.- clear competitive advantages Strong growth through projects already financed 3.- and under execution; strong projects pipeline to be execut
Slide 29: High growth markets
ABENGOA 1.- High growth markets ¾ Next big thing in renewables Solar ¾ Regulation in place in many geographies ¾ Costs decreasing steadily ¾ Strong demand for clean and local sources of fuel Bioenergy ¾ Strong regulatory support in key markets ¾ 2nd generation ¾ Need for clean water in many geograph
Slide 30: Solar regulation
ABENGOA Solar regulation ¾ European directive approved by Parliament (2020 20%) E.U. ¾ Feed-in tariffs in many European markets for PV and CSP ¾ RPS in most states. Potential FRS in 2009 U.S.A. ¾ ITC until 2016 ¾ Initiatives in several markets Other ¾ Feed-in tariff in some geographies 30
Slide 31: Leading position in our key markets
ABENGOA 2.- Leading position in our key markets ¾ Only company building with the three key CSP technologies Solar (trough, tower, hybrid) ¾ Leader in R&D for second generation technologies ¾ Only company with leading position in terms of volume, commercial reach and operational expertise in three ke
Slide 32: Technology is key in Solar
ABENGOA Technology is key in Solar … Cenit, Spain Five DoE projects, U.S.A. 32
Slide 33: ... as well as in Bioenergy
ABENGOA … as well as in Bioenergy Cenit, Spain DoE project, U.S.A. 33
Slide 34: Construction and Operational skills in main markets
ABENGOA Construction and Operational skills in main markets Own construction and operational capabilities (solar, bioenergy, transmission and desalination) 34
Slide 35: Strong growth
ABENGOA 3.- Strong growth Operation Construction Development 170 MW + 150 MW ¾ Solar 23 MW 900 MW hybrid ¾ Bioenergy 1,600 ML/year 1,050 ML/year 800 ML/year ¾ Water 550 m3/day 650 m3/day 100 m3/day (desalination) ¾ Transmission lines 4,450 km 1,000 km 3,050 km ¾Priority today: cash ¾Start projects o
Slide 36: Agenda
ABENGOA Agenda 1. 2008 Highlights 2. 2008 Detailed Financial Analysis 3. Abengoa: Our Business Plan 4. Q&A 36
Slide 37: 2008 Earnings Presentation
2008 Earnings Presentation 24 February, 2009