Acciona Sa · BME:ANA

Acciona Sa — FY2019 Earnings Presentation

34 slides from Acciona Sa's earnings presentation, Feb 28, 2020

  1. Slide 1: FY 2019 Results presentation

    FY 2019 - January-December Results presentation 28 th February 2020

  2. Slide 2: Disclaimer

    ACCIONA FY 2019 Results 2 Disclaimer This document has been prepared by ACCIONA, S.A. (“ACCIONA” or the “Company”) exclusively for use during the presentation of financial results. Therefore it cannot be disclosed or made public by any person or entity with an aim other than the one expressed above,

  3. Slide 3: FY 2019 highlights & outlook 2020

    1. FY 2019 highlights & outlook 2020 José Manuel Entrecanales Chairman & CEO

  4. Slide 4: Exceeding 2019 guidance

    ACCIONA FY 2019 Results 4 Exceeding 2019 guidance 2019 Guidance 2019 Actual Headline EBITDA – flat/mid-single digit growth  €1,357m (+9% headline) EBITDA Like-for-like EBITDA – high-single digit growth  €1,255m (+13% LfL) Ordinary Net Profit Double-digit growth  €352m (+60%) 2019 Dividend (1) Dou

  5. Slide 5: Key 2019 landmarks

    ACCIONA FY 2019 Results 5 Ke y 2 0 1 9 l a n d m a r k s Australia to become largest Renewable pipeline reaching International market – LLE 13GW (+4GW) S.M.A.R.T. infrastructure gathering momentum (1) 10.1GW €1.2bn Consolidated global leadership €8.0bn (2) Spanish energy visibility & in water desali

  6. Slide 6: Renewable energy: Doubling up our pace of growth

    ACCIONA FY 2019 Results 6 Renewable energy: Doubling up our pace of growth Medium to long-term visibility – major step up in additions 2020-24 ~5GW additional capacity by 2024 ~1GW per annum ~0.4GW per annum Aggregate Investment ~€4bn +~5GW Required return: ~ risk-adjusted WACC + >200bps ~50:50 spli

  7. Slide 7: EPC backlog: A strong base for growth

    ACCIONA FY 2019 Results 7 EPC backlog: A strong base for growth Construction & Water EPC Backlog ~€11.2 bn ~36 months (1) L6 São Paulo ~€2.1 bn Higher revenue (1) ~€1.1 bn visibility LLE ~24 months Greenfield Focus on Competitive development as S.M.A.R.T. environment but Australia to core skill – in

  8. Slide 8: Accelerating investment and capital recycling

    ACCIONA FY 2019 Results 8 Accelerating investment and capital recycling ∼€1,500m Concessions Mature Leandlease Engineering yielding Mobility assets Real Estate ∼€1,000m ∼€500m Renewable Energy Enhancing returns and maintaining prudent leverage by rotating de-risked assets

  9. Slide 9: At the heart of the Low Carbon Transition

    ACCIONA FY 2019 Results 9 A t t h e h e a r t o f t h e L o w C a r b o n Tr a n s i t i o n 5% 2% 1% 2% 24% 14% 83% 93% ANNUAL EBITDA 62% aligned with CAPEX aligned with EU Taxonomy 8% 59% EU Taxonomy activities activities 17% 7% The majority of ACCIONA’s businesses and capex contribute to a world

  10. Slide 10: Market increasingly recognising ACCIONA's strategy

    ACCIONA FY 2019 Results 10 M a r k e t i n c r e a s i n g l y r e c o g n i s i n g A C C I O N A’s s t r a t e g y 5-year Total Shareholder Return – ACCIONA vs. IBEX 35 (1) ACCIONA: 139% (CAGR 18%) IBEX-35: 11% (CAGR 2%) 5-year TSR – Compound annual growth rate 5-year TSR – €100 investment illustr

  11. Slide 11: 2020 outlook

    ACCIONA FY 2019 Results 11 2020 outlook Flat to low-single digit growth EBITDA LfL Energy ↑; Infrastructure ↓ Ordinary Net Profit High-single digit growth 2020 Dividend Moderate sustainable growth Net Investment ~€1bn (net of divestments) NFD / EBITDA Stay below 4.0x

  12. Slide 12: Group financial information

    2. Group financial information José Ángel Tejero Group Chief Financial Officer

  13. Slide 13: ACCIONA: Key figures

    ACCIONA FY 2019 Results 13 A C C I O N A : Ke y f i g u r e s FY 2019 % Chg. (€m) vs FY 2018 Revenues 7,191 -4.2% EBITDA 1,357 +9.0% EBITDA like-for-like 1,255 +13.2% EBT 545 +7.1% Attributable net profit 352 +7.2% Attributable net profit – ex. corp. transactions 352 +60.3% FY 2019 FY 2018 (€m) (€m)

  14. Slide 14: ACCIONA: Stable, predictable & growing business

    ACCIONA FY 2019 Results 14 ACCIONA: Stable, predictable & growing business EBITDA & Capital Employed by type of activity (1) 7,997 7,312 LT CONTRACTED ASSETS 59% & 67% INFRA MANAGEMENT CONTRACTS (2) Non LT (12%) Contracted (12%) Generation EBITDA (€m) CAPITAL EMPLOYED (€m) (3) Long-term Asset Busine

  15. Slide 15: Group: Investment by division

    ACCIONA FY 2019 Results 15 Group: Investment by division Total Investment breakdown Key highlights  Vast majority of capex represents discretionary growth (Million Euro) Jan-Dec 19 Jan-Dec 18 investments. Operation & maintenance expenditure of Energy 608 554 renewable energy fleet is expensed (refl

  16. Slide 16: Group: Net debt evolution

    ACCIONA FY 2019 Results 16 Group: Net debt evolution Net debt reconciliation FY 2019 (€m) Operating Financing/ Net Investment CF: €899m Others CF: CF: -€1,241m -€241m 402 902 596 94 126 3.643 3.887 Debt associated to work in progress Derivatives IFRS16 adjustment Operating cashflow covers c.60% of n

  17. Slide 17: Group: Net financial debt

    ACCIONA FY 2019 Results 17 Group: Net financial debt Net financial debt breakdown by nature (€m) Net debt & cash interest evolution (€m) 1,304 7,262 (1,639) 5,958 708 402 5,317 (708) 4,915 (2,347) 5,250 Corporate Project Gross Debt Cash + Net Debt IFRS 16 Net Debt Debt Debt FY 2019 C. Equiv. FY 2019

  18. Slide 18: Group: Debt & liquidity metrics

    ACCIONA FY 2019 Results 18 Group: Debt & liquidity metrics Debt breakdown by nature (1) Average cost of debt Average debt maturity (years) Av. maturity undrawn C.Lines (years) Total Liquidity (€m) 3.25% 3.55% Available 6.92% Project debt 6.79% credit lines 3.92 4.25 Corporate 3.35 3.20 2.31% 2.51% d

  19. Slide 19: Energy

    ACCIONA FY 2019 Results 19 Energy Key figures EBITDA evolution (€m) Output -1 (Million Euro) Jan-Dec 19 Jan-Dec 18 Chg. Chg. (%) Output -33 Price +7 Spain +4 Price -1 Forex +11 Generation Spain 766 854 -88 -10.3% International +32 Opex/IFRS16 +52 Opex /IFRS16 +5 Generation International 670 588 82 1

  20. Slide 20: Energy: New capacity & MWs under construction

    ACCIONA FY 2019 Results 20 E n e r g y : N e w c a p a c i t y 2 0 1 9 & M Ws u n d e r c o n s t r u c t i o n 1,136MW approved investments - CoD 2020-2021 (1) (1) Big 4 countries: US, Mexico, Chile, Australia

  21. Slide 21: Infrastructure

    ACCIONA FY 2019 Results 21 Infrastructure Key figures by business line EBITDA evolution (€m) (Million Euro) Jan-Dec 19 Jan-Dec 18 Chg. Chg. (%) 61 419 13 431 Construction (16) Revenues 3,430 3,545 -115 -3.2% (47) EBITDA 289 227 61 26.8% Margin (%) 8.4% 6.4% +2.9% Concessions Revenues 78 108 -30 -27.

  22. Slide 22: Infrastructure: Backlog overview

    ACCIONA FY 2019 Results 22 I n f r a s t r u c t u r e : B a c k l o g o v e r v i e w Backlog by activity (€m) New contracts awarded (€m) 10,846 11,391 2,433 Water O&M 5,747 2,668 5,007 5,200 5,033 911 Services 4,703 21% Water 1,052 13% Services 8,047 EPC (Construction & Water) 66% Construction 7,1

  23. Slide 23: Property Development

    ACCIONA FY 2019 Results 23 P r o p e r t y D e v e l o p m e n t Key figures Key highlights (Million Euro) Jan-Dec 19 Jan-Dec 18 Chg. Chg. (%)  Revenues increase due to the delivery of 512 residential Revenues 141 84 57 67.6% units during the year (430 units in 2018) EBITDA 20 9 12 136.7%  During

  24. Slide 24: Bestinver

    ACCIONA FY 2019 Results 24 B e s t i n v e r Key figures Key Highlights (Million Euro) Jan-Dec 19 Jan-Dec 18 Chg. Chg. (%) Revenues 99 102 -4 -3.6%  Acquisition of Fidentiis completed in Q4 2019 EBITDA 62 72 -10 -14.2%  Lower EBITDA contribution from Bestinver on Margin (%) 63.0% 70.7% slightly lo

  25. Slide 25: Appendix

    Appendix

  26. Slide 26: ACCIONA: Perimeter and IFRS effects

    ACCIONA FY 2019 Results 26 A C C I O N A : P e r i m e t e r a n d I F R S 1 6 e f f e c t s Total Group (€m) FY 2019 FY 2018 Chg. (€m) Revenues 7,191 7,510 -319 CSP 0 -43 43 Rodovia do Aço 0 -24 24 ATLL -22 -161 139 Trasmediterránea 0 -160 160 Total perimeter variations -22 -388 366 IFRS16 0 0 0 Re

  27. Slide 27: ACCIONA: Debt maturity breakdown

    ACCIONA FY 2019 Results 27 A C C I O N A : D e b t m a t u r i t y b r e a k d o w n Gross debt maturities (€m) ECP programme (€898m as of 31 December 19) Stable local investor base Very cost efficient Rolled over continuously Backed by LT revolving credit facilities 1,962 1,843 784 688 654 479 144

  28. Slide 28: Energy: Installed capacity

    ACCIONA FY 2019 Results 28 E n e r g y : I n s t a l l e d c a p a c i t y Installed MW 31-Dec-19 Total Consolidated Eq accounted Net Spain 5,678 4,453 593 5,015 Wind 4,740 3,516 593 4,080 Hydro 873 873 0 873 Solar PV 3 3 0 3 Biomass 61 61 0 59 Internacional 4,439 3,600 358 3,047 Wind 3,236 3,034 48

  29. Slide 29: Energy: Equity-accounted generation capacity

    ACCIONA FY 2019 Results 29 E n e r g y : E q u i t y - a c c o u n t e d g e n e r a t i o n c a p a c i t y FY 2019 (proportional figures) (1) 31-Dec-19 MW GWh EBITDA NFD Average COD Wind Spain 593 1,417 61 111 2005 Wind International 48 113 7 -3 2005 Australia 32 75 5 -2 2005 Hungary 12 25 2 -1 20

  30. Slide 30: Energy: FY installations and WIP

    ACCIONA FY 2019 Results 30 E n e r g y : F Y 2 0 1 9 i n s t a l l a t i o n s a n d W I P % ANA Total Consol. Net MW added MW const. MW start Expected Technology Country Asset name Details stake MW MW MW 2019 Dec 2019 const. 2020 COD PV Egypt Benban 42% 186 0 78 21 - - Q1 2019 FIT - Egyptian Electr

  31. Slide 31: Energy: Wind drivers by country

    ACCIONA FY 2019 Results 31 Energy: Wind drivers by country (1) Wind prices (€/MWh) and Load factors (%) FY 2019 FY 2018 Chg. (%) Av. price (€/MWh) LF (%) Av. price (€/MWh) LF (%) Av. price (€/MWh) Spain Average 71.8 25.6% 74.9 24.6% -4.1% Spain - Regulated 82.7 91.3 Spain - Not regulated 50.5 43.0 C

  32. Slide 32: Energy: Other technologies drivers by country

    ACCIONA FY 2019 Results 32 E n e r g y : O t h e r t e c h n o l o g i e s d r i v e r s b y c o u n t r y Other technologies (€/MWh) and Load factors (%) FY 2019 FY 2018 Chg. (%) Av. price (€/MWh) LF (%) Av. price (€/MWh) LF (%) Av. price (€/MWh) Hydro Spain 57.1 22.5% 56.0 33.6% 2.0% Biomass Spain

  33. Slide 33: Infrastructure: Concessions

    ACCIONA FY 2019 Results 33 I n f r a s t r u c t u r e : C o n c e s s i o n s Road Rail Canal Port Hospital Water TOTAL # of concessions 6 2 1 1 5 53 68 Proportional EBITDA FY 2019 (€m) 47 6 4 0 33 54 128 Consolidated EBITDA FY 2019 (€m) 34 0 0 0 14 28 61 Average life (yrs) 31 21 30 30 28 26 27 Ave

  34. Slide 34: FY 2019 Results presentation

    FY 2019 - January-December Results presentation 28 th February 2020

Acciona — FY2019 Earnings Presentation on 6ix