Abengoa Sa · OTC:AGOAF
Abengoa Sa — Q3 2013 Earnings Presentation
35 slides from Abengoa Sa's earnings presentation, Nov 11, 2013
Slide 1: Third Quarter 2013 Earnings Presentation
Innovative Technology Solutions for Sustainability ABENGOA Third Quarter 2013 Earnings Presentation November 11, 2013
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 Business Outlook & Targets 4 Appendices 3
Slide 4: Agenda: Strategy & Business Update
Agenda 1 Strategy & Business Update 2 Financial Overview 3 Business Outlook & Targets 4 Appendices 4
Slide 5: Continued Delivery on Growth: 2013 YTD Overview
2013 YTD Overview Pipeline +13% 125 B€ Continued Delivery on Growth Backlog +0% 7,069 M€ Strategy Revenues +17% 5,233 M€ EBITDA +29% 860 M€ Net Income +13% 73 M€ Corp. Leverage(1) 2.5x (1) Corporate Leverage proforma for the 517 M€ capital increase completed in October 2013 5
Slide 6: Q3 2013 Executive Summary
Q3 2013 Executive Summary 1 Continued Strong Business Momentum Solid performance of E&C; backlog above 7.0 B€ Continued recovery in Biofuels Bringing assets into operation as scheduled 2 Delivering on Corporate Strategy Reduced corporate leverage Executing on asset rotation plan Reducing corporate C
Slide 7: Geographic Diversification
Geographic Diversification Growing our international footprint & diversification with low business dependence on a single region YTD’13 Revenues 5,233 M€ Rest of EU 12% 12% USA +19% 629 M€ 28% Spain 30% 23% 18% +23% 1,546 M€ -6% 965 M€ ME, Asia & Oceania 4 % 3% +46% 206 M€ Africa 8% 2% LatAm +45% 44
Slide 8: Engineering & Construction YTD Operating Segment Analysis
E&C Highlights 1 • Strong momentum both in execution and booking activity Engineering • Pipeline allows for excellent visibility on future flows & Backlog maintained at healthy level of +7 B€, with lower equity Construction • investments YTD 2013 KPI’s YTD Operating Segment Analysis Bookings 3,564 M
Slide 9: E&C visibility
E&C visibility Great visibility on future growth with lower equity investments 2013: Higher E&C execution & less …and a sustainable future ahead… equity investment in concessions… YTD 2013Equity Equity Investments < EPC Margin 418 M€ investment in concessions Q4 2013E Equity Investment ~110 M€ 10-12
Slide 10: E&C Results Visibility - Pipeline
E&C Results Visibility - Pipeline Growing our pipeline of opportunities to drive future revenues Pipeline (B€) 124.5 Split by sector Split by geography 110.2 1% 7% 10% 14% 9% 17% 16% 13% 18% 21% 23% 35% 9% +13% 7% T&D Water Spain Brazil Renewable Power US Rest of Europe Conventional Power Mexico Lat
Slide 11: Concession-type Infrastructures
Concessions Highlights 2 • Solana, the largest CSP trough plant worldwide, and Solaben 1 & 6 plants in in Concessions- operation on-time & budget type • 1,916 MW in operation (693 MW conventional & 1,223 MW renewable) Infrastructures • 6 new assets brought into operation in 2013 YTD • ~420 M€ of cas
Slide 12: Industrial Production
Industrial Production Highlights 3 • Recovery in bioethanol sector factored-in in segment economics Industrial • +93% production capacity of our plants into operation as of today Production • Waiting for EPA confirmation on RFS targets for 2014 YTD 2013 KPI’s YTD Operating Segment Analysis Ethanol 1
Slide 13: Technology Update
Technology Update R&D plans continue to advance quarter to quarter Cutting Edge Technologies Quarterly Update Molten Salt Plant (MSP) ready to start commercial phase Solar Higher thermal efficiency reached by our pilot plants: 565 ºC and +13% Technologies incremental efficiency for MSP, air tower op
Slide 14: 2G Ethanol Enzyme Project
2G Ethanol Enzyme Project Our competences and R&D Achievements and Targets capabilities Abengoa’s Abzym enzymes EtOH Cost Molecular & Biochemical Lab in Seville Contribution 4 W2B Demo Plant in Salamanca 3.5 3 Fermentation & Down Stream Process (DSP) Lab (USD/gal of EtOH) Cost Contribution 2.5 in Sa
Slide 15: Agenda: Financial Overview
Agenda 1 Strategy & Business Update 2 Financial Overview 3 Business Outlook & Targets 4 Appendices 15
Slide 16: Financial Highlights
Financial Highlights Continued growth achieved… …while delivering on financial strategy 5,233 M€ 2.5x Revenues through September Pro-forma* Corporate Leverage 2013, an increase of 17% Y-o-Y ratio as of Sep. 2013, a 1.1x reduction from 2012 YE level 860 M€ 517 M€ EBITDA through September 2013, Capita
Slide 17: E&C Backlog
E&C Backlog Solid backlog, well diversified, provides revenue visibility Backlog (M€) By Geography 21% 29% 7,131 7,069 USA Brazil 6,679 12% Europe Mexico 10% 15% RoW LatAm 13% By Sector Solar 16% 17% T&D 2% Water Conventional Power 20% Industrial Plants 34% 11% Others Dec 2012 Jun 2013 Sep 2013 Ba
Slide 18: Reinforced Capital Structure
Reinforced Capital Structure Liquidity protection & management of corporate leverage: key priorities Sep. 2013 Dec. 2012 Proforma* Corporate Debt 4,757 4,595 Net Corporate Corporate Cash, Equiv. & STFI (2,271) (2,638) Debt Corporate Net Debt 2,486 1,957 Non-recourse Debt 5,257 5,545 Non- Recourse No
Slide 19: Key Leverage Ratios
Key Leverage Ratios Reduction of Corporate Leverage a Key Priority Sep. 2013 Dec. 2012 Proforma* Corporate 3.7x 2.5x Non-Recourse 14.2x 13.2x Consolidated 7.1x 6.1x (excl. pre-op. debt) 3.9x 3.3x * Proforma for the application of net proceeds from the 517 M€ capital increase completed in October 201
Slide 20: Improved Maturity Profile: Corporate Debt Maturity
Improved Maturity Profile No refinancing needs in the next 18 months Pro-forma Corporate Debt Maturity after Recent Transactions Syndicated Loans Other corp. debt Expected UoP from Capital Increase Bonds Convertible Bonds Expected UoP from 2018 HY Notes Corporate Debt Maturity 12 447 676 300 505 250
Slide 21: Cash-flow Overview
Cash-flow Overview On track to achieve corporate CAPEX target of 750 M€ for full year 2013' Cash generated from • EBITDA: 860M€ operations • Working Capital: (117) M€ • Net Interested Paid: (340) M€ (153) M€ 285 M€ • Taxes and other financial costs: • Discontinued operations: 35 M€ Net Investment •
Slide 22: Agenda: Business Outlook & Targets
Agenda 1 Strategy & Business Update 2 Financial Overview 3 Business Outlook & Targets 4 Appendices 22
Slide 23: Key Financial Targets
Key Financial Targets A detailed plan for a sustainable financial structure going further 1 Revenues EBITDA Corp. EBITDA 2013 Business 7,250 – 7,350 1,180 – 1,230 800 – 825 Guidance 16% vs 6,312 M€ 27% vs 949 M€ 23% vs 663 M€ 2 FY 2013E FY 2014E onwards Net Corporate Leverage ~2.5x ~2.0x Key Financi
Slide 24: Agenda: Appendices
Agenda 1 Strategy & Business Update 2 Financial Overview 3 Business Outlook & Targets 4 Appendices 24
Slide 25: Going Forward
Going Forward A clear path going forward... ABENGOA New Plan In 6 months in 12 months in 18 months Announced (August ‘13) Sale of Befesa Improve biofuels Mojave & Hugoton in +500 M€ of additional performance from operation annualized EBITDAe Resilient E&C lowest ever from new concessions Repay remai
Slide 26: Results by Activity
Results by Activity € in Millions Revenues EBITDA EBITDA Margin 9M 2013 9M 2012 Var (%) 9M 2013 9M 2012 Var (%) 9M 2013 9M 2012 Engineering and Construction E&C 3,007 2,352 28% 377 331 14% 12.6% 14.1% Technology & Others 247 237 4% 147 111 32% 59.7% 46.9% Total E&C 3,254 2,589 26% 524 442 19% 16.1%
Slide 27: Excellent Revenue Visibility
Excellent Revenue Visibility Focus on execution, increase of backlog and expand recurrent business Estimated Conversion to Revenues Rest of 2014e 2015e+ 2013e M€ Sep. 2013 Backlog E&C 16% 52% 32% Backlog 7,069 M€ 3,645 1,158 2,266 Sep. 13 Contracted 35,197 Concession- Revenues type 36,156 M€ 835 124
Slide 28: Additional EBITDA from Concessions Under Construction
Additional EBITDA from Concessions Under Construction… As of September 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 29: Capex under construction by segment (I)
Capex under construction by Amounts based on the company´s best estimate as of Sep. 30, 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 3,539 593 116 32 445 S
Slide 30: Capex under construction by segment (II)
Capex under construction by Amounts based on the company´s best estimate as of September 30, 2013. Actual investments or timing thereof may change. segment (II) Q4 2013 2014 2015+ Pending ABG Pending ABG Pending ABG (M€) Capex Equity Partners Debt Capex Equity Partners Debt Capex Equity Partners Deb
Slide 31: Concessional Projects under IFRS 10
Concessional Projects under IFRS 10 Visibility on consolidation of concessional assets currently under construction falling under IFRS 10 FY 2013 FY 2014 FY 2015 Q4 2013 Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015 Solana Mojave Khi (Tower) Kaxu (Trough) Ann ~65 M€ ~55 M€ Impact EBITDA ~55 M€ ~81 M€ at C
Slide 32: Balanced Asset Portfolio
Balanced Asset Portfolio Under Total Non As of Sep. 30, 2013 Operating Construction/ Gross Net ABG Recourse (M€) (Gross) Development Assets Assets* Equity Net Debt Partners Transmission 1,233 1,425 2,658 2,608 921 1,341 346 CSP 3,488 - 3,488 3,246 1,133 2,008 105 Cogeneration 710 223 933 901 185 714
Slide 33: 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 12,033 3,270 3,175 95 710 943 5,771 3,175 943 4,631 1,631 1,631 Sep
Slide 34: Proforma Net Debt Bridge
Proforma Net Debt Bridge Consolidated Proforma Net Debt Change in the Period Dec´12 Sep´13 340 743 Net Interest 153 Paid Taxes & other 270 Operative cash financials 1,397 Net Proceeds from Capital EBITDA 860M€ Incr. in Oct’13 6,700 De- WC (117) M€ consolidation of net debt 499 6,985 264 171 Total Ot
Slide 35: Thank you
Innovative Technology Solutions for Sustainability ABENGOA Thank you November 11, 2013