Acciona Sa · BME:ANA
Acciona Sa — FY2015 Earnings Presentation
52 slides from Acciona Sa's earnings presentation, Mar 1, 2016
Slide 1: 2015 Results January - December
2015 RESULTS JANUARY - DECEMBER #ACCIONAFY15 1st March 2016
Slide 2: Disclaimer
Disclaimer This document has been prepared by ACCIONA, S.A. (“ACCIONA” or the “Company”) exclusively for use during the presentation of financial results for the full year of 2015 (FY 2015). Therefore it cannot be disclosed or made public by any person or entity with an aim other than the one expres
Slide 3: Table of contents
Table of contents 1. 2015 key highlights 2. Group financial information 3. Energy 4. Infrastructure 5. Other activities and 2016 Outlook 6. Q&A session Appendix FY 2015 3
Slide 4: 1. 2015 key highlights
1. 2015 key highlights José Manuel Entrecanales Chairman & CEO Juan Muro-Lara Chief Corporate Development & IR Officer
Slide 5: 2015 key highlights
2015 key highlights A year of stability and back to ordinary course of business, with focus on: − The operational improvement of our businesses − Setting the basis for future growth − Reinforcing the financial de-risking of the company Solid FY 2015 financial results: EBITDA up +8% and Ordinary EBT
Slide 6: 2015 key highlights
2015 key highlights A year of intense strategic activity − Combination of AWP and Nordex to create a global leader in on-shore WTG sector − Agreement to acquire BTG’s Pactual stake in ATLL, the upstream water concession in the Barcelona region (transaction closed in January 2016) − Relaunch of Besti
Slide 7: Outlook - 2016
Outlook - 2016 Outlook moderately optimistic expected improvement in core and non- core businesses − With potential downside risks in energy generation Spain due to low pool prices, partially mitigated by regulatory banding and potentially by higher volumes Significant capex ramp-up started construc
Slide 8: Outlook - 2016
Outlook - 2016 EBITDA to remain relatively flat Like-for-like growth impacted by low pool prices in Spain Changes in 2016 perimeter: deconsolidation of AWP and full consolidation of water concession ATLL Net capex: ~€600m investment timing to be managed in the context of business performance and cre
Slide 9: 2. Group financial information
2. Group financial information Carlos Arilla Group Chief Financial Officer
Slide 10: FY 2015 key figures
FY 2015 key figures % Chg. vs (€m) FY 2014 Revenues 6,544 +0.7% EBITDA 1,174 +8.0% EBIT 627 +9.6% Ordinary EBT 330 +41.5% Ordinary capex 223 -34.5% NFD 5,159 -2.5% NFD/EBITDA 4.39 vs. 4.87x (@ Dec 2014) FY 2015 10
Slide 11: Group: Capex by division
Group: Capex by division Capex breakdown By division Key highlights (€m) Capex Historically low capex levels Jan-Dec 14 Jan-Dec 15 Energy captures most of the investment effort: Energy 282 130 - Installed in 2015: 128MW (all wind) Infrastructure 70 80 o 93MW in South Africa, 30MW in Poland, Construc
Slide 12: Group: Debt breakdown by division and nature
Group: Debt breakdown by division and nature Group debt breakdown 31-Dec-14 31-Dec-15 Gross debt by nature Non- Recourse Gross Cash + (€m) Net debt recourse Net debt debt debt C. Equiv. debt Recourse Energy 4,653 1,174 3,872 5,046 -750 4,295 Non-recourse Infrastructure 253 392 488 880 -718 162 Const
Slide 13: Group: Recourse debt & liquidity
Group: Recourse debt & liquidity Debt with recourse: €2,403m Average cost of Averg. matur. Debt with recourse (€m) 31-Dec-15 Average maturity debt Undrawn credit (years) lines (years) Bank debt 952 Commercial paper programme 296 Bonds 306 Convertible bond 313 Other (ECAs, Supranationals) 536 Capital
Slide 14: Group: Recourse debt €1.8bn syndicated facility
Group: Recourse debt €1.8bn syndicated facility New financing contract of €1.8bn ACCIONA signed in March a 5 year syndicated financing facility for €1.8bn divided in two tranches: Tranche A Tranche B Loan for a maximum €1,800m Credit lines €1,440m amount of €360m To refinance part of the corporate d
Slide 15: Group: Recourse debt & liquidity
Group: Recourse debt & liquidity Maturity profile of debt with recourse (€2,403m) 6 Undrawn credit lines cover all corporate maturities for the next three years FY 2015 15
Slide 16: Group: Non-recourse debt amortization schedule
Group: Non-recourse debt amortization schedule Group: Debt amortization Principal schedule repayment schedule 2016-2025 (€m) Note: Repayment schedule during the period to December 2025 Accrued interest and mark to market of derivatives as of 31st December 2015 not included in repayment schedule FY 2
Slide 17: Group: Net debt evolution
Group: Net debt evolution Net debt reconciliation FY 2015 (€m) LTM: -€135m (-3%) 5,294 5,159 509 466 151 377 4,319 4,631 -€683m +€167m +€381m Operating CF Investment CF Financing CF Debt associated to work in progress Derivatives FY 2015 17
Slide 18: 3. Energy
3. Energy Rafael Mateo CEO ACCIONA Energy
Slide 19: Energy: Key figures
Energy: Key figures Key figures EBITDA evolution (€m) (Million Euro) Jan-Dec 14 Jan-Dec 15 Chg. Chg. (%) Revenues 2,200 2,719 519 23.6% EBITDA 788 897 109 13.8% Margin (%) 35.8% 33.0% Capacity Production Non generation Consolidated installed capacity exceeds Consolidated production slightly below, N
Slide 20: Energy: Installed capacity
Energy: Installed capacity Installed MW MW Total Consolidated Eq accounted Net Spain 5,950 4,673 619 5,248 Wind 4,747 3,470 619 4,079 Hydro 888 888 0 888 Solar Thermoelectric 250 250 0 220 Solar PV 3 3 0 3 Biomass 61 61 0 59 Internacional 2,669 2,383 78 1,557 Wind 2,465 2,225 48 1,462 Solar Thermoel
Slide 21: Energy: 2015 installations and WIP
Energy: 2015 installations and WIP MW installed in 2015 Tecnology Country Asset name MW Installation date Details Green certificates (1 Green certif. = 1MWh) Wind Poland Poniec II 30 Q3 2015 + Electricy price annualy set by the ERO (Energy Regulatory Office) 138MW wind farm completed in 2015 with th
Slide 22: Energy: ACCIONA Windpower
Energy: ACCIONA Windpower Key figures Backlog evolution (MW) (Million Euro) Jan-Dec 14 Jan-Dec 15 Chg. Chg. (%) Revenues 705 950 245 34.7% EBITDA 39 84 46 119.4% Margin (%) 5.5% 8.9% Key highlights AWP Backlog by region Revenues increase close to 35% EBITDA improves +€46m AWP installs 931MW in FY 20
Slide 23: Energy: Global trends
Energy: Global trends Installation of renewable new capacity exceeds that of fossil sources 1 at global levels (1) since 2013 2015: Renewables are − US: renewables represented 68% of new installed capacity (2) already the fastest growing − Europe: renewables represented 73% of new installed capacity
Slide 24: Energy: Global trends
Energy: Global trends 3 187 countries representing 98.6% of global emissions presented COP 21: Global INDCs (1) commitment against climate Not enough to avoid exceeding 2ºC target (2) change Investment in renewable energy must be increased 4 Mature renewable technologies lower risk Investment Stable
Slide 25: Energy: Strategy
Energy: Strategy Wind fleet COE reduction program in place target -25% − Continuing efforts in O&M cost reductions New focus: − Initiatives in place to increase availability and performance maximise operating − Action Plan to extend useful life efficiency Progress in Big Data management to improve a
Slide 26: Energy: Strategy
Energy: Strategy Focused on growth in attractive markets: − Strategic markets: Chile, Mexico, India, US and Australia − First mover strategy in new markets Profitable growth Greater capacity and bigger solar PV portfolio is the priority 2016 Growth: ~300MW incremental capacity − San Roman (US) 93MW
Slide 27: 4. Infrastructure
4. Infrastructure Luis Castilla CEO ACCIONA Infrastructure
Slide 28: Infrastructure: Key highlights
Infrastructure: Key highlights Key figures 2015 highlights (Million Euro) Jan-Dec 14 Jan-Dec 15 Chg. Chg. (%) Profitability resilience and improved margin Revenues 3,727 3,336 -391 -10.5% as a result of new strategy being implemented: EBITDA 173 167 -6 -3.5% − Project selectivity − Risk control Marg
Slide 29: Infrastructure: New contracts awarded in 2015
Infrastructure: New contracts awarded in 2015 New awards Relevant projects awarded in 2015 Construction (Million Euro) Jan-Dec 14 Jan-Dec 15 Chg. Chg. (%) Site C large-scale hydroelectric dam (Canada) Construction 2,620 3,565 945 36.1% Total project €1.2bn (o/w ACCIONA’s share 37.5%) Metro Quito (Ec
Slide 30: Construction: Key figures and backlog
Construction: Key figures and backlog Key figures FY2015 Backlog (Million Euro) Jan-Dec 14 Jan-Dec 15 Chg. Chg. (%) Spain (27%) Revenues 2,626 2,170 -456 -17.4% International (73%) EBITDA 118 102 -16 -13.8% Margin (%) 4.5% 4.7% €6,722m International backlog FY 2015 Key highlights By region EBITDA ma
Slide 31: Water: Key figures and backlog
Water: Key figures and backlog Key figures Key highlights (Million Euro) Jan-Dec 14 Jan-Dec 15 Chg. Chg. (%) New sea water reverse osmosis (SWRO) Revenues 409 451 41 10.0% contracts in Qatar totaling €476m New BOT contract in Canada sets the return EBITDA 35 35 0 n.m. to the North American market Ma
Slide 32: Industrial and Service
Industrial and Service Industrial Service: key figures New Industrial EPC contracts are gaining weight (Million Euro) Jan-Dec 14 Jan-Dec 15 Chg. Chg. (%) ACCIONA will start to report Industrial as a new Revenues 691 716 24 3.5% business within the Infrastructure division from Q1 2016 EBITDA 21 31 10
Slide 33: Infrastructure: Concessions
Infrastructure: Concessions Road Rail Canal Port Hospital Water TOTAL # of concessions 13 2 1 1 6 56 79 Proportional EBITDA FY 2015 (€m) 72 3 3 0 27 75 175 Consolidated EBITDA FY 2015 (€m) 39 0 0 0 15 20 70 Average life (yrs) 29 35 30 30 30 n.m. n.m. Average consumed life (yrs) 6 6 9 10 9 n.m. n.m.
Slide 34: Infrastructure: Global Trends
Infrastructure: Global Trends Development Growth Drivers Opportunities for ACCIONA Regions Connectivity projects LatAm Rapid population and Tunneling South East Asia urbanization growth Social facilities & services Middle East Australia New resources / desalination Middle East Resources and water sc
Slide 35: Infrastructure: Business priorities and transformation
Infrastructure: Business priorities and transformation Business priorities for 2016 Construction Concessions Water Industrial Service I. New markets: I. New markets: I. New markets: I. New businesses: I. New businesses: Middle East USA (TX, FL, VA y Sub-Saharan Transmission & Transmission & CO) Afri
Slide 36: 5. Other activities and 2016 Outlook
5. Other activities and 2016 Outlook Juan Muro-Lara Chief Corporate Development & IR Officer
Slide 37: Other activities
Other activities Key figures EBITDA breakdown (Million Euro) Jan-Dec 14 Jan-Dec 15 Chg. Chg. (%) (Million Euro) Jan-Dec 14 Jan-Dec 15 Chg. Chg. (%) Revenues 692 613 -79 -11.4% Trasmediterranea 30 41 11 37.6% Real Estate 3 6 4 144.9% EBITDA 126 113 -13 -10.2% Bestinver 96 67 -29 -30.2% Margin (%) 18.
Slide 38: Trasmediterránea
Trasmediterránea Key figures Key highlights Trasmediterránea improved its EBITDA 37.6% (Million Euro) Jan-Dec 14 Jan-Dec 15 Chg. Chg. (%) up to €41m Revenues 417 424 7 1.7% Growth mainly driven by: – Efficiency gains EBITDA 30 41 11 37.6% – Average prices for passengers and vehicles Margin (%) 7.1%
Slide 39: Bestinver
Bestinver Key figures Key highlights EBITDA contribution €67m In 2015 Bestinver has captured upside and protected the downside AUM Dec. 2015: €5.1bn All funds in top decile1 (Bestinfond, International, Significant gross inflows €325m Bolsa and Hedge) 1,500 new clients Bestinver Hedge # 1 in absolute
Slide 40: Real Estate: 2015 independent asset appraisal
Real Estate: 2015 independent asset appraisal GAV 2015 breakdown By region By asset type 75% Residential 7% Offices 18% Others Development Land Rental Book value Gross capital gain GAV 2015: €1,271m Note: Independent asset appraisal – Savills, Aguirre Newman, CBRE and Instituto de Valoraciones FY 20
Slide 41: Real Estate Update: Creation of ACCIONA Real Estate
Real Estate Update Creation of ACCIONA Real Estate (“ARE”)in 2015 ACCIONA Inmobiliaria (“AI”) has segregated its assets according to two lines of business: Rental and Development for Sale AI has created ACCIONA Real Estate (“ARE”) as a new subsidiary to which it has transferred certain assets and li
Slide 42: Combination of AWP – Nordex: Process update
Combination of AWP – Nordex Process update Fulfillment of CPs¹ progressing according to plan Regulatory approvals process just completed Completion expected early April 2015 2016 Signing Fulfillment of CPs Closing (April) AGM 2016 - 4 Oct 15 (key: merger clearance) - Cash payment + 16.1m - Appointme
Slide 43: 2016 Outlook: Group
2016 Outlook: Group Good prospects for most businesses, except for Energy generation in Spain if current low power price environment persists Group EBITDA 2016E = “Flattish” Net capex ~€600m ~2/3 Energy Within targeted range of NFD / EBITDA ~4.0x - 4.5x FY 2015 43
Slide 44: 2016 Outlook: By division
2016 Outlook: By division Energy Infrastructure Other Businesses Like-for-like EBITDA (ex- Like-for-like EBITDA EBITDA = AWP effect) (pre-ATLL) Improvement in ‒ New capacity not sufficient Reported EBITDA growth Trasmediterránea offset by to compensate for lower amplified by full consolidation lower
Slide 45: 6. Q&A session
6. Q&A session
Slide 46: Appendix
Appendix
Slide 47: Real Estate Update: Overview of ACCIONA Real Estate
Real Estate Update Overview of ACCIONA Real Estate ARE’s asset base GAV breakdown by Asset Class As of Dec-15 Mainly Spanish non-subsidized residential rental Land for assets Development Residential 15% Internally managed 63% Commercial RE Capabilities across full value chain sourcing, 22% developme
Slide 48: Combination of AWP - Nordex
Combination of AWP - Nordex Transaction structure €335m in Cash 16.1m new Nx shares + 12.9m existing Nx SKion/ €366m in cash (EV) shares Momentum 100% Contribution 100% 1. Combination 2. Shareholder reorganization Simultaneously, ACCIONA will acquire ACCIONA contributes AWP to Nx 12.9m existing Nx s
Slide 49: Combination of AWP - Nordex
Combination of AWP - Nordex 1. Combination: Valuation of AWP 2. Reorganization of shareholders Step 1: Acquisition of Step 2: Skion sells part Nx to pay ACCIONA with shares + cash consideration of its shares to ACCIONA AWP by Nx 16.1m shares (authorized capital) Skion/ ACCIONA Momentum Free Float Nx
Slide 50: Energy: Wind drivers by country
Energy: Wind drivers by country Wind prices (€/MWh) and Load factors (%) FY 2015 FY 2014 Chg. (%) Av. price (€/MWh) LF (%) Av. price (€/MWh) LF (%) Av. price (€/MWh) Spain Average 66.2 24.5% 56.5 25.0% 17.2% Spain - Regulated 77.9 66.3 Spain - Not regulated 45.3 36.0 Canada 58.2 30.1% 55.3 32.5% 5.3
Slide 51: Energy: Capacity accounted under the equity method
Energy: Capacity accounted under the equity method Detail of capacity accounted under the equity method FY 2015 (proportional figures) 31-Dec-15 MW GWh EBITDA NFD Average COD Wind Spain 619 1,419 61 240 2005 Wind International 48 120 5 12 2005 Australia 32 84 3 7 2005 Hungary 12 24 2 4 2006 USA 4 13
Slide 52: 2015 Results January - December
2015 RESULTS JANUARY - DECEMBER 1st March 2016