Abengoa Sa · OTC:AGOAF
Abengoa Sa — FY2013 Earnings Presentation
34 slides from Abengoa Sa's earnings presentation, Feb 20, 2014
Slide 1: Fiscal Year 2013 Earnings Presentation
Innovative Technology Solutions for Sustainability ABENGOA Fiscal Year 2013 Earnings Presentation February 20, 2014
Slide 2: Forward-looking Statement
Forward-looking Statement • This presentation contains forward-looking statements (within the meaning of the U.S. Private Securities Litigation Reform Act of 1995) and information relating to Abengoa that are based on the beliefs of its management as well as assumptions made and information currentl
Slide 3: Agenda
Agenda 1 Strategy & Business Update 2 Financial Overview 3 2014 Outlook & Targets 4 Appendices 3
Slide 4: Agenda: Strategy & Business Update
Agenda 1 Strategy & Business Update 2 Financial Overview 3 2014 Outlook & Targets 4 Appendices 4
Slide 5: FY 2013 Overview
FY 2013 Overview YoY Growth Solid Growth Pipeline +58% 139.0 B€ and Delivery on our Backlog +2% 6.8 B€ commitments Revenues +17% 7,356 M€ EBITDA +44% 1,365 M€ Net Income +84% 101 M€ Corp. Leverage -1.5x 2.2x 5
Slide 6: FY 2013 Executive Summary
FY 2013 Executive Summary 1 Strong Operational Growth 2 Delivering on Corporate Targets Solid performance of E&C Earnings guidance achieved New concessional assets into operation Reduced corporate leverage Continued recovery in Biofuels Reduced corporate CAPEX 3 Reinforced Capital Structure 4 Enhanc
Slide 7: Abengoa's Corporate Structure
Abengoa’s Corporate Structure Strong corporate business with upside from financial investments in concessional assets portfolio Corporate Structure ABENGOA Financial Investment Dividends upstream / Equity recycling Technology Engineering & Industrial Concessions Construction Production Net Debt Net
Slide 8: Financial Investment in Concessions
Financial Investment in Concessions Equity BV in 3.3 B€ concessional 935 M€ 2,053 M€ 199 M€ 127 M€ assets 1 59 concessional assets focused on power (generation & transmission) and water Strong group Assess Average remaining life of ~25 years with +38 B€ of contracted revenues of low risk contracted
Slide 9: Asset Rotation Strategy
Asset Rotation Strategy Crystallizing Value Through Equity …with a solid mechanism that provides a Rotation… sustainable flow for future assets sales Type/Country Transaction Cash Date Funding provided by: USA Equity Sale 300 M$ Q3’13 Develop Project finance senior lenders Long term partner & Build
Slide 10: An "Asset Light" Model
An “Asset Light” Model Transition to an asset light model with Abengoa acting as industry partner retaining minority & providing E&C, O&M and other services New Awards in 2013 already reflects the shift in the trend… Continued Solid ABG Equity Business Customer Country Value Type Project 2014-2017 M
Slide 11: Engineering & Construction Highlights
E&C Highlights 1 • Continued delivery of double-digit growth with attractive margins Engineering & • Significant new bookings in 2013; trend continues in Q1 2014 Construction • Strong pipeline and backlog provides visibility on future business FY 2013 KPI’s FY 2013 Operating Segment Analysis Booking
Slide 12: Concessions Highlights
Concessions Highlights 2 • Delivering significant growth and high EBITDA margins Concessions- • 10 new assets brought into operation, including Solana, the largest CSP type trough plant worldwide, achieving up to 110% production rates in tests Infrastructures • Advanced negotiations with 6 equity pa
Slide 13: Industrial Production Highlights
Industrial Production Highlights 3 • +53% organic EBITDA growth y-o-y; lower revenues due to several plant being closed during Q1’13 Industrial • Hugoton completes phase one start up; complete ramp up of production Production expected for March 2014 • 142 M€ from positive arbitration resolution in B
Slide 14: Geographic Diversification
Geographic Diversification Diversifying our business mix to capture global growth opportunities FY’13 Revenues 7,356 M€ Rest of EU 12% 14% 863 M€ USA Spain 28% 33% 16% 15% ME, Asia & 1,163 M€ Oceania 2,045 M€ 4 % 3% 330 M€ Africa 11% 3% LatAm 29% 32% 837 M€ 2,118 M€ FY FY 2013 2012 Consolidated pres
Slide 15: Technology Update
Technology Update Continued technological program development, investing 107 M€ in R&D programs and 319 M€ in R&D related to projects Cutting Edge Technologies Milestones of the year Khi Solar One first of its kind superheated CSP tower being built in SAF Solar Solana’s molten salt storage system ru
Slide 16: Agenda: Financial Overview
Agenda 1 Strategy & Business Update 2 Financial Overview 3 2014 Outlook & Targets 4 Appendices 16
Slide 17: FY 2013 Financial Performance
FY 2013 Financial Performance Strong Business and Financial Performance 1 2 3 Excellent business … and reinforcing the …achieving deleveraging performance in all our balance sheet targets … segments… 7,356 M€ 517 M€ Revenues Corporate 2,124 M€ Capital +17% YoY Increase To accelerate credit Net Debt
Slide 18: Improved Financial Flexibility
Improved Financial Flexibility A successful year on the capital markets to address our future maturities ~1.8 B€ raised in 2013 to improve our BS …while sensibly extending our closer flexibility… maturities beyond 2018 Jan 13 400 M€ CB 2019 6.250% Jan 13 Feb 13 250 M€ HY Bond 2018 8.875% 1.324 Oct 1
Slide 19: Key Leverage Ratios
Key Leverage Ratios Strong Deleverage at Corporate Level Dec. 2012 Dec. 2013 1 Corporate Business Corporate Net Leverage Ratio 3.7x 2.2x Structure -1.5x De-leverage 2 Concessions Net Financial Leverage Ratio(2) 10.4x 9.4x Investment in Assets(1) (including pre-op. debt) 14.2x 14.4x Consolidated Net
Slide 20: Corporate Debt Maturity
Improved Maturity Profile Reinforcing our share capital while lengthening maturity profile No refinancing needs through 2015 Syndicated Loans Other corp. debt Convertible Bonds Bonds Expected UoP from Capital Increase and HY Notes Corporate Debt Maturity 100 186 676 200 250 505 317 500 550 472 327 4
Slide 21: Cash-flow Overview
Cash-flow Overview Cash generated from operation & ending the year below Corp. Net CAPEX target of 750 M€ FY 2013 FY 2012 • EBITDA 1,365 949 • Working Capital 228 178 • Net Interest Paid (509) (397) • Taxes & Other Financial Cost (223) (174) • Non-monetary Adjust. (156) (39) • Discontinued operation
Slide 22: Agenda: 2014 Outlook & Targets
Agenda 1 Strategy & Business Update 2 Financial Overview 3 2014 Outlook & Targets 4 Appendices 22
Slide 23: FY 2014 Business Guidance & Targets
FY 2014 Business Guidance & Targets Growth, further deleverage, FCF generation expected for 2014 € in Millions YoY Growth 1 Revenues 7,900 – 8,000 7% - 9% FY 2014E Earnings EBITDA* 1,350 – 1,400 10%-14%* Guidance Corporate EBITDA* 860 – 885 3% - 6%* XXX 2 Net Corporate Leverage ~2.0x Key Financial C
Slide 24: Agenda: Appendices
Agenda 1 Strategy & Business Update 2 Financial Overview 3 2014 Outlook & Targets 4 Appendices 24
Slide 25: Results by Activity
Results by Activity € in Millions Revenues EBITDA EBITDA Margin FY 2013 FY 2012 Var (%) FY 2013 FY 2012 Var (%) FY 2013 FY 2012 Engineering and Construction E&C 4,473 3,478 29% 593 476 25% 13.3% 13.7% Technology & Others 336 303 11% 213 148 44% 63.4% 48.8% Total E&C 4,808 3,780 27% 806 624 29% 16.8%
Slide 26: E&C Results Visibility - Pipeline
E&C Results Visibility - Pipeline Our growing pipeline of opportunities spans great visibility on future results Pipeline Evolution (B€) …by Sector …and by Region 8% 13% 9% 2% 139,0 11% 124,5 10% 110,2 13% 22% 17% 99,3 88,1 23% 33% 9% +58% 22% 8% T&D Water Spain Brazil Asia-Pac. Renewable Industrial
Slide 27: E&C Backlog
E&C Backlog Healthy backlog at the end of 2013 while continuing with a strong bookings performance in Q1 2013 Backlog (M€) …by Sector …by Region 6,796 6,8 6,7 1% 14% 7% 25% 12% 10% 35% 10% 18% 32% +2% 14% 22% T&D Water USA Brazil Renewable Europe Industrial Plants Rest Latam Power Dec. 2012 Dec. 201
Slide 28: Net Debt Position
Net Debt Position Liquidity protection & management of corporate leverage: key priorities 1 Dec. 2012 Dec. 2013 E&C Corporate Techno Business -logy Corporate Net Debt 2,486 2,124 Structure Indust. Prod. 2 Financial Conces- Investment sions Concessions Net Debt 4,215 5,850 in Assets(1) Total Net Debt
Slide 29: Additional EBITDA from Concessions Under Construction
Additional EBITDA from Concessions Under Construction… As of December Abengoa Expected Annual Fully 2013 Location Capacity (Equity 2013 2014 2015 2016 Sector EBITDA Start Up Funded? EBITDA Ownership %) Quingdao China 100 ML/day 92% Q1 13 11 Manaus Brazil 586 km 51% Q1 13 35 181 M€ Solaben 1-
Slide 30: Capex under construction by segment (I)
Capex under construction by Amounts based on the company´s best estimate as of Dec. 31, 2013. Actual investments or timing thereof may change. segment (I) Ann. Total EBITDAe Pending (M€) Capacity Abengoa (%) Country Start Up (M€) Investment Capex ABG Equity Partners Debt Solar 2,100 359 58 26 275 Mo
Slide 31: Capex under construction by segment (II)
Capex under construction by Amounts based on the company´s best estimate as of December 31, 2013. Actual investments or timing thereof may change. segment (II) 2014 2015 2016+ Pending ABG Pending ABG Pending ABG (M€) Capex Equity Partners Debt Capex Equity Partners Debt Capex Equity Partners Debt So
Slide 32: Asset Portfolio Capacity
Asset Portfolio Capacity Revenue visibility backed by our solid asset portfolio Extensive concessional asset base once current capex plan completed Solid producing assets Solar(1) (MW) 1,863 Transmissions (km) Biofuels (Ml/year) 210 12,400 3,270 3,175 367 95 430 1.223 9.373 3,175 1.223 2.660 1,631 D
Slide 33: Net Debt Bridge
Net Debt Bridge Consolidated Proforma Net Debt Change in the Period Dec´12 Dec´13 509 1,436 Net 223 Interest Paid Taxes & other 594 financials Operative cash Net Debt EBITDA 1,365 M€ 2,257 Proceeds 6,701 deconsolid WC 228 M€ from Capital ation 263 Incr. in Oct’13 Non-monetary M€ adj. (157) M€ 65 Cas
Slide 34: Thank you
Innovative Technology Solutions for Sustainability ABENGOA Thank you February 20, 2014