Slide 1: First Half 2014 Earnings Presentation
First Half 2014 Earnings Presentation ABENGOA August 12, 2014
Slide 2: Forward-looking Statement
2 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: Strategy & Business Update; Financial Overview; Outlook & Targets
Strategy & Business Update Financial Overview Abengoa Yield Highlights Outlook & Targets Appendices
Slide 4: Agenda: Strategy & Business Update
ABENGOA Agenda (1) Strategy & Business Update
Slide 5: H1 2014 at a Glance
3,405 M€ 48.2 B€ 164.6 B€ 695 M€ 69 M€ H1 2014 at a Glance Pipeline Backlog Revenues EBITDA Corp. Leverage 5 Net Income +31% +49% +2% -0.7x 2.5x 0.09 € Pro-forma Diluted EPS(1) (1) Pro-forma diluted EPS excludes the mark-to-market of derivatives (hedging and embedded options in convertible bonds): -
Slide 6: H1 2014 Highlights
6 H1 2014 Highlights Continued Strong Business Performance EBITDA and Net Income Growth delivered Solid H1 2014 New Bookings awards of ~3 B€ (+17% Y-o-Y) Record E&C Backlog of 7.7 B€ provides visibility into rest of 2014 and 2015+ Solid pipeline with tangible opportunities Improved Q-o-Q business pe
Slide 7: Engineering & Construction H1 2014 KPIs
Engineering & Construction 1 H1 2014 KPI’s 2,942 M€ +16% YoY H1 ‘14 Operating Segment Analysis Revenues (M€) -5% EBITDA (M€) Margin (M€) E&C Highlights 16.0% 17.7% 2,182 350 366 +5% 2,068 Bookings 2014E revenues >80% covered by record backlog & H1’14 performance Continued strong margin performance t
Slide 8: Record Pipeline Providing Strong Growth Prospects
164.6 B€ Record Pipeline Providing Strong Growth Prospects for Abengoa and Abengoa Yield E&C Pipeline Pipeline 8 Dec. 2013 Jun. 2014 Mar. 2014 Sep. 2013 Jun. 2013 +49% B€ Strong prospects on thermosolar in North America, Latam, Africa and Middle East Opportunities in Mexico from the new legislation
Slide 9: Abengoa Concessions H1 2014 KPIs
9 Abengoa Concessions 2 H1 2014 KPI’s H1 ’14 Operating Segment Analysis Revenues (M€) +46% EBITDA (M€) +74% Margin (M€) Abengoa Concessions Highlights 57.3% 27 in operation 10 in YieldCo 64.7% 1,223 MW 2,768 Km 743 MW 660 ML/day Growing business and improved margins from assets ramping up and achiev
Slide 10: Abengoa Concessions EBV
10 Abengoa Concessions EBV Significant Value in Abengoa’s Concessions to Provide Recurrent Equity Recycling for Abengoa and Growth for Abengoa Yield ABENGOA ABENGOA YIELD 720 M€ 81 M€ 1,412 M€ 95 M€ Attractive EBV and cash yield in current and remaining portfolio of concessions staying in Abengoa wi
Slide 11: Biofuels H1 2014 Operating Segment Analysis
11 Biofuels 3 H1 ’14 Operating Segment Analysis Revenues (M€) +1% EBITDA (M€) +107% Margin (M€) Biofuels Highlights 8.5% 984 991 H1 2014 KPI’s 1,207 ML vs 964 ML H1 2013 Ethanol Produced ~0.84 $ Vs 0.57 $ H1 2013 4.2% Strong operational performance in all our plants Solid results in the US and Brazi
Slide 12: Geographic Diversification
Geographic Diversification North and South America key geographies, with increased focus in developing business in emerging markets H1 2013 H1 2014 12 39% 442 M€ 13% 81 M€ South America 21% 846 M€ 25% 36% 471 M€ H1’14 Revenues 3,405 M€ Capturing Global Macro-trends in Energy and Environment Sectors
Slide 13: Technology Update
Technology Update 13 Continued Development of Our Technology: Milestones of the Quarter Solar Technology Increased thermal storage capacity with nanoparticles Smart Solar Plant (SSP): CSP + PV + Electrical and Thermal Storage Optimal management of energy supply Fast response in energy delivery Water
Slide 14: Agenda: Financial Overview
ABENGOA hgenda Cm 4x!
Slide 15: H1 2014 Financial Performance
H1 2014 Financial Performance 15 Revenues EBITDA Net Income 3,405 M€ 695 M€ 69 M€ +2% YoY Continued positive operating performance with leverage improving year over year -0% YoY +31% YoY LTM Corporate EBITDA 967 M€ +28% YoY 1 2 Total Backlog E&C Pipeline 48,2 B€ 165 B€ +11% YoY Corporate Leverage 2.
Slide 16: Strong Bookings Performance Increasing E&C Backlog
Strong Bookings Performance Increasing E&C Backlog to ~7.7 B€ June 2014 Backlog 16 by Sector Water Renewable Power Conventional Power T&D Others Industrial Plants Europe Rest of South America North America Brazil Asia by Region +8% Significant awards in Q2 2014 drive backlog to very healthy levels S
Slide 17: Net Debt Position
Net Debt Position 17 Reduced Leverage Through Execution of Strategic Plan Corporate Net Debt Concessions Net Debt(1)(2)(3) 2.5x Adj. Corp. Net Debt 2.5x ~1,450 M€ (1.5x) Abengoa stake in ABY Ethanol Produced Corp. Leverage without considering stake in Abengoa Yield 1.0x On-going net debt /EBITDA: in
Slide 18: Improved Maturity Profile
18 Improved Maturity Profile Reinforced and extended maturity profile, diversified in sources No refinancing needs through 2016 Rest of 2014E 2015E 2016E 2017E 2018E 2019E Syndicated Loans Other corp. debt Convertible Bonds Expected UoP from Capital Increase and HY Notes 2020E Bonds 2021E+ (1) 317 2
Slide 19: Corporate Free Cash Flow
19 H1 2014 Positive Corporate FCF expected by YE 2014 • Corporate EBITDA 211 205 416 • Net Financial Income/(Expense) (98) (142) (240) • Taxes (11) 11 (0) • Dividends from ABENGOA YIELD - - - Funds from Operations 102 74 176 • Change in Working Capital & Others (642) (162) (804) Cash Flow from Opera
Slide 20: Consolidated Cash-flow
20 Consolidated Cash-flow Cash as of June 30, 2014 EBITDA 531 695 Working Capital (69) (738) Net Interest Paid (243) (357) Taxes & Other Financial Cost (93) (44) Non-monetary Adjust. - (86) Discontinued operations 35 0 Cash generated from operations 161 M€ (531) M€ H1 2014 Total CAPEX invested (931)
Slide 21: Agenda: Abengoa Yield Highlights
ABENGOA agenda GB) Abengoa Yield Highlights ae
Slide 22: Abengoa Yield Highlights
EBITDA (M$) Revenues (M$) 22 92% 109% Transfer of assets to Abengoa Yield in mid-June; H1’14 results are mainly attributable to the predecessor Increase mainly due to assets entering into operation in H2 2013 and H1 2014: Solana, ATS, Quadra 1 &2 and recently Palmatir Mojave construction substantial
Slide 23: Abengoa Yield Results by Sector
23 Delivering as Expected by Geography and Business Sector Abengoa Yield - Results by Sector In Millions $ North America Results by Region H1’14 H1’13 % Revenues 96.8 47.6 103% EBITDA 83.7 40.7 106% EBITDA Margin 86.5% 85.5% South America H1’14 H1’13 % 36.3 10.8 236% 29.5 7.4 299% 81.3% 68.5% Europe
Slide 24: Agenda: Outlook & Targets
ABENGOA ngenda (4) Outlook & Targets ©
Slide 25: FY 2014 Business Guidance & Targets
< 2.0x 25 FY 2014E Business Guidance 1 FY 2014 Business Guidance & Targets Confirmed Business Guidance and Targets for 2014 Business Guidance M€ Y-o-Y % Revenues: 7,900 - 8,000 +7%-9% EBITDA: 1,350 - 1,400 +10%-14% Corp. EBITDA: 860 - 885 +3%-6% Higher visibility and business resilience allowing for
Slide 26: Agenda: Appendices
ABENGOA Agenda
Slide 27: Results by Activity
27 Results by Activity € in Millions Revenues EBITDA EBITDA Margin H1 2014 H1 2013 Var (%) H1 2014 H1 2013 Var (%) H1 2014 H1 2013 Engineering and Construction E&C 2,068 2,181 -5.2% 366 350 4.6% 17.8% 16.0% Total E&C 2,068 2,182 -5.2% 366 350 4.6% 17.8% 16.0% Abengoa Concessions Solar 157 112 41.1%
Slide 28: E&C Pipeline Breakdown By Region
E&C Pipeline Breakdown 28 By Region 164.6 B€ Pipeline Spain 2.7 B€ North America 42.9 B€ Rest of EU 13.9 B€ Brazil 16.5 B€ Rest of South America 24.4 B€ Asia & Oceania 50.0 B€ Africa 14.3 B€ By Sector T&D 21.9 B€ Renewable Power 19.4 B€ Conventional Power 60.9 B€ Water 33.7 B€ Industrial Plants 13.4
Slide 29: Capex under construction by segment
29 Capex under construction by segment (I) 1This project falls under the scope of IFRS 10 and is therefore consolidated through equity method until entry into operation Total Equity Capex Amounts based on the company´s best estimate as of Jun. 30, 2014. Actual investments or timing thereof may chang
Slide 30: Concessions capex by year
2014 (M€) 2015 (M€) 2016+ (M€) Consolidated Concessions Capex Pending Capex Corp. Capex Partners Debt Pending Capex Corp. Capex Partners Debt Pending Capex Corp. Capex Partners Debt Mojave1 98 11 0 87 0 0 0 0 0 0 0 0 South Africa 100 MW1 55 5 5 45 28 3 2 23 0 0 0 0 South Africa 50 MW1 45 6 6 33 0 0
Slide 31: Asset Portfolio Capacity
Asset Portfolio Capacity 31 Revenue visibility backed by our solid asset portfolio Solar (MW) Includes 286 MW of capacity of bioethanol plants cogeneration facilities Assumes sale of Qingdao Cogeneration & Others(1) (MW) Desalination (Ml/day) Transmissions (km) Extensive concessional asset base once
Slide 32: Thank you
Thank you ABENGOA August 12, 2014