Abengoa Sa · OTC:AGOAF
Abengoa Sa — Q3 2012 Earnings Presentation
42 slides from Abengoa Sa's earnings presentation, Nov 12, 2012
Slide 1: Third Quarter 2012 Earnings Presentation
Innovative Technology Solutions for Sustainability ABENGOA Third Quarter 2012 Earnings Presentation November 12th, 2012
Slide 2: Forward-looking Statement
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 Abengoa wit
Slide 3: Agenda
Agenda 1 Q3 & 9M 2012 Business Highlights 2 Q3 & 9M 2012 Financial Highlights 3 Conclusions 4 Appendix 3
Slide 4: Q3 & 9M 2012 Business Highlights
Agenda 1 Q3 & 9M 2012 Business Highlights 2 Q3 & 9M 2012 Financial Highlights 3 Conclusions 4 Appendix 4
Slide 5: 9M 2012 Key Highlights
9M 2012 Key Highlights Continued growth despite a very challenging environment Revenues EBITDA 5,612 M€ 897 M€ 17% (4,784 M€ 9M 2011) 21% (744 M€ 9M 2011) Net Income Corp. Leverage 117 M€ 3.4x 45% (211 M€ 9M 2011) 1.7x excluding pre-operational debt B shares distribution approved by 99%* of minority
Slide 6: Executive Summary
Executive Summary Financials Business Double digit growth at Excellent execution performance from E&C division Revenues and EBITDA level 6 new concessional assets brought into operation in the Bookings of 2,273 M€ and 9M period Backlog of 6,639 M€ Very challenging conditions for ethanol ma
Slide 7: E&C: Excellent performance, great visibility
E&C Excellent performance, great visibility 2,781 M€ Revenues in 9M 2012, an increase of 29% Y-o-Y 359 M€ EBITDA achieved in 9M 2012, with margins of 12.9% 2,273 M€ Bookings recorded for the first nine months 2012 6,639 M€ Backlog at September 30, 2012 of which 86% outside of Spain 77.2 B€ Pipeline
Slide 8: E&C – Insight
E&C – Insight Pipeline allows great visibility on E&C division M€ By Sector T&D 77,158 3% 10% 20% Power 72,537 18% Water Solar 16,697 9,802 49% Industrial Plants Others 2,273 By Size 19% win rate over resolved bids 73% of bookings is for external < 100 M€ customers without equity contribution 31
Slide 9: E&C – Insight
E&C – Insight Consolidating as a strong EPC player for energy projects in developing countries Pipeline 9M 2012 Spain 4% T&D Power Brazil 12% 8% 7% 9% 5% US 15% 12% 25% 8% 22% 20% 27% Rest of Europe 8% 30% Rest of Latin America 30% 22% 25% Asia & Oceania 6% 5% Africa 15,685 M€ 37,565 M€ 77,158 M€ Wa
Slide 10: Concession-type Infrastructures
Concession-type Infrastructures Steady execution of our capex plan 389 M€ Revenues in 9M 2012, an increase of 21% Y-o-Y 264 M€ EBITDA o-Y achieved in 9M 2012 , an increase of 14% Y- 649 M€ Equity investment by Abengoa during 9M’12 from a total capex of 2,304 M€ 6 new assets commenced operation durin
Slide 11: Timeline: Main Projects in Execution
Timeline: Main Projects in Execution As of Sep. 30 ‘12 Abengoa Ann. Expected Fully Location Capacity (Equity 2012 2013 2014 2015 EBITDAe Start Up Funded? Ownership %) (M€) Solacor 1-2 Spain 50 MW x2 74% Q1 12 46 Solaben 2-3 Spain 50 MW x2 70% Q3/Q2 12 41 Helios 1-2 Spain 50 MW x2 100% Q2
Slide 12: Capex Plan – Financing secured
Capex Plan – Financing secured Committed Capex fully financed through a balanced mix M€ (as of Sep’ 12) Diversified by Financing Source Committed to invest equity only when financing is secured Abengoa limits in most cases its 652 equity investment to the margin Track record of successful obta
Slide 13: Industrial Production
Industrial Production Industrial Production: lights and shadows Biofuels: Production (ML) 1,585 M€ of revenues for the period, a 3% decrease Y-o-Y 2,019 1,801 26 M€ EBITDA achieved in 9M 2012, a 77% decrease Y-o-Y due to low crush margins in the period 3 plants temporarily shut down in US 9M'11 9M'1
Slide 14: Ethanol Business - Insight
Ethanol Business - Insight Bioenergy: reasons behind a tough 2012 Highlights USD/g Crush Spread 2012 0.65 Most severe drought in US in 0.55 50 years 0.45 0.35 0.25 Decrease in gasoline 0.15 Jan-12 Mar-12 May-12 Jul-12 Sep-12 consumption in US: -4.0% over Sep-11 EUR/m3 Crush Spread 2012 230 Decrease
Slide 15: Recycling Business - Insight
Recycling Business - Insight By 2014, industrial recycling international business will represent approx. 80% of its EBITDA Turkey EAF Steel Production: Sep YTD 2012 (Top-10) Total = 305.1 million tons EAF steel market EU - 27 59.3 4th largest EAF steel producer 20-30 % Zinc in EAF dust Izmir US
Slide 16: Technology Update
Technology Update Cutting edge technologies as the engine of growth From Municipal Solid Waste N-Butanol production at Air Tower (MSW) to Biofuels commercial scale An innovative solution for transformation of Development and implementation of a A revolutionary concept of solar-gas MSW in
Slide 17: Technology – Key Figures for FY 2012e
Technology Update Technology – Key Figures for FY 2012e Patents 2012 Relevant Figures (E): 300 250 726 people dedicated to R&D 200 221 cumulated patents, between 150 applied and awarded 100 100 M€ R&D+i investment 50 0 2010 2011 2012e (Cumulated, applied for and awarded) R&D+i investment People empl
Slide 18: Q3 & 9M 2012 Financial Highlights
Agenda 1 Q3 & 9M 2012 Business Highlights 2 Q3 & 9M 2012 Financial Highlights 3 Conclusions 4 Appendix 18
Slide 19: Key Financial Highlights
Key Financial Highlights Building strength in a challenging environment Consolidated Segment diversification Balance Sheet Strength E&C Consolidated Cash Revenues 2,781 M€ +29% 5,612 M€ Concessions 2,493 M€ 389 M€ +21% 17% (4,784 M€ 9M 2011) Industrial Production Q3 Working Capital Cash 2,442 M€ +6%
Slide 20: High Revenue Visibility
High Revenue Visibility Estimated Conversion to Revenues Sep.12 backlog (M€) Rest of 2012e 2013e 2014e+ E&C Order Book 3,545 6,639 1,183 1,911 35,812 Concession-type Asset based, recurring revenues 36,507 101 594 Industrial Production 11,200 14,785 * 785 2,800 20 *Illustrative calculation according
Slide 21: Abengoa Equity Capex Plan
Abengoa Equity Capex Plan Committed to reduce equity investments Diversified by Asset Type Invested Equity Evolution* M€ (as of Sep’ 12) Solar 394 Power 121 1,106 406 Transmission 1,061 11 Biofuels 104 82 Cogeneration 7 817 Water 26 77 652 620 175 9 7 22 44 236 71 6 93 65 Q4 2012e 2013e 2014+e 2010
Slide 22: Reinforced Capital Structure
Reinforced Capital Structure Continue to monitor leverage on track M€ Sep 2011 Dec 2011 Sep 2012 Corporate Debt 4,778 4,830 5,073 Corporate Cash, Equiv. & STFI (2,493) (3,346) (2,250) Total net corporate debt 2,285 1,484 2,823 N/R Debt 4,910 5,390 6,277 N/R Cash Equiv. & STFI (1,381) (1,406) (957) T
Slide 23: Key Leverage Ratios
Key Leverage Ratios Continue to monitor leverage on track Q3 2011 FY 2011 Q3 2012 Corporate 4.0x 2.1x 3.4x (excl. pre-op. debt) 2.2x 0.3x 1.7x Non-Recourse 7.7x 8.7x 12.1x (excl. pre-op. debt) 4.3x 4.5x 6.4x Consolidated 5.6x 5.0x 6.5x (excl. pre-op. debt) 3.1x 2.1x 3.4x Note: Corp. Net Debt ratio a
Slide 24: Net Debt Bridge
Net Debt Bridge Net cash generated from operating activities Consolidated 161 M€ 295 (443) 378 2,555 (271) 8,143 5,468 Net Debt Cash Capex Disposals, Net Net Interest Uses of Cash Dividends, FX Net debt Dec´11 Generated Paid and Taxes of Deposits and other Sep´12 from (STFI) for Consolidation Operat
Slide 25: Cash-flow Statement
Cash-flow Statement Operating cash flow affected by slow working capital evolution M€ Sep 2011 Sep 2012 Consolidated after-tax profit 134 152 Non-monetary adjustments to profit 579 398 Variation in working capital 614 (279) Discontinued activities (72) - Cash generated by operations 1,255 271 Net in
Slide 26: Debt Maturity Profile
Debt Maturity Profile Improved maturity profile and liquidity position at September 30, 2012 Corporate Debt (M€) Highlights 2,250 No refinancing needs at corporate level through 2014 1,357 977 945 682 834 520 466 516 250 Proactive management of 103 208 200 675 213 maturities: extension process 4
Slide 27: Conclusions
Agenda 1 Q3 & 9M 2012 Business Highlights 2 Q3 & 9M 2012 Financial Highlights 3 Conclusions 4 Appendix 27
Slide 28: 2012 Guidance
2012 Guidance On the path to achieve our targets Guidance Highlights Guidance Great visibility from E&C Backlog Revenue 7,550 – 7,750 M€ Revenue growth 8% Excellent operating performance from our concessional assets EBITDA 1,175 - 1,225 M€ EBITDA growth 9% Great recycling business performance
Slide 29: Appendix
Agenda 1 Q3 & 9M 2012 Business Highlights 2 Q3 & 9M 2012 Financial Highlights 3 Conclusions 4 Appendix 29
Slide 30: Business Diversification
Business Diversification Robust growth from diversified source of revenues 9M 2012 Revenues (M€) Q3’11 Q3’12 Var% 9M’11 9M’12 Var% E&C 587 809 38% 2,156 2,781 29% Concession-type 43% 130 146 12% 322 389 21% Infrastructure 50% Industrial Production 924 966 5% 2,306 2,442 6% Total 1,641 1,921 17% 4,78
Slide 31: Results by Activity
Results by Activity M€ Revenues EBITDA Margin 9M 2011 9M 2012 Var (%) 9M 2011 9M 2012 Var (%) 9M 2011 9M 2012 Engineering and Construction E&C 2,156 2,781 29.0% 264 359 36.0% 12.2% 12.9% Total 2,156 2,781 29.0% 264 359 36.0% 12.2% 12.9% Concession-type Infrastructure Transmission 184 72 -60.9% 144 5
Slide 32: Geographic Diversification
Geographic Diversification A truly global business Revenues 9M 2012 4% 2% 13% E&C Geographies 13% 5% Concessions Spain Rest of Latin America 11% Industrial Production 29% 14% Brazil Asia & Oceania 17% US Africa 21% Rest of Europe E&C Concessions Industrial Production 2% 1% 2% 5% 15% 3% 22% 21% 9% 14
Slide 33: E&C Backlog
E&C Backlog Solid backlog, well diversified, provides revenue visibility Backlog (M€) By Geography By Type* LatAm External 25% 32% USA 41% External 59% with Equity Europe 7,535 19% 7,259 7,092 23% RoW 6,639 By Sector By Size 6% Solar < 100 M€ 13% 12% T&D 1% Environment 33% 16% 40% 100-500 M€ Convent
Slide 34: Concessional Asset Portfolio
Concessional Asset Portfolio Significant capacity increase when completing capex plan Concession-type infrastructures Solar (MW) Transmission (km) 1,653 6,988 50 910 5,167 743 1,771 743 1,771 Sep 2012 E2013/14 Sep 2012 E2013/14 Cogeneration & Others (MW) Desalination (Ml/day) 920 807* 114 360 560 39
Slide 35: Concession-type Infrastructure Balanced Asset Portfolio
Concession-type Infrastructure Balanced Asset Portfolio Under Total Non Capex Operating Construction/ Gross Recourse Invested at (M€) (Gross) Development Assets Net Assets1 ABG Equity Net Debt Partners Sep. 2012 Trasmission 560 1,706 2,266 2,205 813 1,056 336 585 CSP 3,164 1,269 4,433 4,289 1,379 2,
Slide 36: Capex Plan
Capex Plan Focused investment strategy to diversify business profile Diversified by Asset Type Diversified by Geography M€ (as of Sep’ 12) Solar 2,070 1,753 Power 449 1,035 227 1,262 74 Transmission 185 Biofuels 227 Cogeneration 43 295 308 Water 193 762 2,982 43 141 184 72 43 32 1,199 467 154 47 10
Slide 37: Capex Committed by segment (I)
Capex Committed by segment (I) Amounts based on the company´s best estimate as of September 30, 2012. Actual investments or timing thereof may change. Total Total Entry in ABG Committed (M€) Capacity Abengoa (%) Country Operation Investment Pending Corporate Partners Debt Capex Solar 4,860 2,070 394
Slide 38: Capex Committed by segment (II)
Capex Committed by segment (II) Amounts based on the company´s best estimate as of September 30, 2012. Actual investments or timing thereof may change. Q4 2012 2013 2014 Total ABG Total ABG Total ABG Committed (M€) Capex Corporate Partners Debt Capex Corporate Partners Debt Capex Corporate Partners
Slide 39: Non-Committed Capex Plan
Non-Committed Capex Plan Focused investment strategy to diversify business profile Diversified by Asset Type Diversified by Geography M€ (as of Sep’ 12) Solar 407 Power 33 Transmission Cogeneration 99 407 667 Water 279 83 Recycling 142 96 960 78 33 99 279 411 23 228 387 58 65 170 142 13 1 10 21 20 Q
Slide 40: Capex Non-Committed by segment (I)
Capex Non-Committed by segment (I) Amounts based on the company´s best estimate as of September 30, 2012. Actual investments or timing thereof may change. Total Total Entry in ABG Non-Committed (M€) Capacity Abengoa (%) Country Operation Investment Pending Corporate Partners Debt Capex Solar 538 407
Slide 41: Capex Non-Committed by segment (II)
Capex Non-Committed by segment (II) Amounts based on the company´s best estimate as of September 30, 2012. Actual investments or timing thereof may change. Q4 2012 2013 2014+ Total ABG Total ABG Total ABG Non-Committed (M€) Capex Corporate Partners Debt Capex Corporate Partners Debt Capex Corporate
Slide 42: Thank you
Innovative Technology Solutions for Sustainability ABENGOA Thank you November 12th, 2012