Abengoa Sa · OTC:AGOAF
Abengoa Sa — Investor Presentation (February 2015)
28 slides from Abengoa Sa's investor presentation, Feb 9, 2015
Slide 1: Market Update
Market Update ABENGOA February 9, 2015
Slide 2: Financial Information Disclaimer
2 Financial Information Disclaimer The consolidated financial data for the year ended December 31, 2014 presented in the following slides is preliminary, and unaudited, based upon our estimates and is subject to completion of our financial closing procedures, including finalization of our audit proc
Slide 3: Forward-looking Statement
3 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 4: Agenda
4 Agenda Corporate Update FY 2014E Highlights 2015 Outlook
Slide 5: Agenda: Key Highlights
ABENGOA 1) ” Corporate Update Agenda
Slide 6: Key Highlights
6 Key Highlights Strategic actions taken; proving capability & commitment to improve 1 3 Accelerating ROFO sales to ABY for ~700 M$: 312 M$ in Q4’14, 140 M$ in Q1’15 and ~225 M$ in Q2’15E 6 Maintaining a healthy level of liquidity 2 ABY’s Stake Reduced to 51% at $31/share: 328 M$ 4 Solid E&C busines
Slide 7: Reduction of stake in ABY
Reduction of stake in ABY Executing the plan to delever and optimize our investment at ABY Cash inflow of 328 M$ Successful transaction priced at 9% premium over the price on the launching day, and ~x4 over subscribed 1st sale of shares in Jan. 2015 Reduce stake <50% in 2015 Objective to maintain a
Slide 8: Abengoa Projects Warehouse
8 Abengoa Projects Warehouse 1 Commitment letter signed by EIG on February 2, 2015 EIG is one of the largest investment funds with strong focus in energy infrastructure, managing 15 B$ in assets worldwide Successful project by project investment venture over the last 7 years turns now into a long te
Slide 9: APW-1 to bring into operation ~18 B$ assets
9 APW-1 to bring into operation ~18 B$ assets; representing ~17 B$ of E&C works 2.5 B$ Equity EV of initial assets at COD 9.2 B$ EIG-1.4 B$ ABG– 1.1 B$ 6.7 B$ Non-recourse Debt 0.6-0.7 B$ initial payment to ABG 0.7-0.8 B$ to invest in equity in projects until COD Equity Investment (1) Estimated EV o
Slide 10: Significant strategic and financial benefits for Abengoa
10 Significant strategic and financial benefits for Abengoa Strengthen Abengoa’s balance sheet 1 Corporate cash inflow of 450-550 M€ (0.6-0.7 B$) expected in H1 2015 Initial reduction of NR debt of +250 M€ Opportunity to raise bridge loans (“NRDP “) without Abengoa’s corporate guarantee Successful l
Slide 11: Acceleration of ROFO's sales to ABY
Acceleration of ROFO’s sales to ABY +700 M$ of equity recycling through ROFO’s in 2014 and 2015E Original ROFO Plans Current ROFO Plans Near- Term Expected ROFO Assets 2014 2015 None ROFO 1 312 M$ ~300 M$ Equity Book Value ROFO 2 (1) ~140 M$ ROFO 3 +120 M$ ~300 M$ ~700 M$ 11 Acceleration of ABY divi
Slide 12: A business model poised to generate positive free-cash-flow
ABENGOA 12 Project SPV APW-1 ABENGOA YIELD Equity / Debt Bridge LT Equity EPC Margin Technology Margin O&M Margin Equity Principal Recycling A business model poised to generate positive free-cash-flow Equity Recycling Dividends Capital Gains Free Cash Flow Equity Invest. Value for Money Invested Equ
Slide 13: Continued Solid E&C Business
Continued Solid E&C Business Significant booking activity driving the Dec.’14 backlog to +8.0 B€ Excellent Q4’14 and 2015 YTD bookings activity Backlog Conversion(1) ~XX% Backlog Evolution +10% 13 ~34% ~36% ~40% Add. YTD Bookings E&C backlog at a record +8.0 B€ as of Dec.’14; plus ~1.8 B€ worth of p
Slide 14: Sale of Concessions in Operation
Sale of Concessions in Operation Objective to sell operational concessional assets in 2015 for ~510 M 14 5 • Expected Proceeds of ~460 M ; corresponding to the equity needed to be sold to deconsolidate these projects • Additionally, reduction of nonrecourse net debt of ~1,000 M expected • 5 PV Asset
Slide 15: Continued Financing Activity
Continued Financing Activity Actively accessing the financial markets Banking Recovery in stock price, credit spreads and CDS levels Continuing to build up credibility with the capital markets by repaying 244 M€ CB 2017 that has been put on Feb 3 Repayment of 300 M€ of HY 2015, as expected, on Feb 2
Slide 16: In Summary
16 In Summary Significant corporate cash generation expected in 2015 Sale of 13% stake in ABY ~270 M€ ~120 M€ ~550 M€ ROFO 3 ~200 M€ Sale of Concessions in operation ~510 M€ ROFO 2(1) APW-1 EIG Agreement Closing is subject to customary approvals, including approvals from financing institutions and,
Slide 17: Agenda: FY 2014 Highlights
ABENGOA 2) ” FY 2014 Highlights Agenda
Slide 18: Change in Consolidation Perimeter
Change in Consolidation Perimeter Accounting rules require us to change FY 2014 results perimeter P&L Profit classified in a single line FY 2013 P&L is re-expressed Balance Sheet Assets & Liabilities as of Dec. 2014 classified in a single line Dec. 2013 not re-expressed ~225 M€ impact in FY2014 Reve
Slide 19: FY 2014E P&L Highlights
19 FY 2014E P&L Highlights FY 2013 ABY APW-1 € Millions xxxcxxx Revenues EBITDA Corp. EBITDA Net Income FY 2013 re-expressed FY 2014E Previous Perimeter YoY Change ~7,375 ~(225) - ~7,150 ~1,635 ~(225) - ~1,410 ~964 - - ~964 ~125 - - ~125 ABY APW-1 2014E as reported FY 2013 as reported 7,356 (111) -
Slide 20: FY 2014E Net Debt Highlights
20 FY 2014E Net Debt Highlights € Millions xxxxxxxxxxxcxxx Corp. Net Debt Corp Leverage “NRDP” (Bridge Loan) Corp+Bridge Loan ratio Project Net Debt Cons. Net Debt Cons. Leverage Corp FCF after equity recycling The consolidated financial data for the year ended December 31, 2014 presented in these s
Slide 21: Working Capital & Leverage
21 Working Capital & Leverage Flat corporate working capital in Q4 impacting leverage ratio Recovery in WC expected for Q4’14 is happening now in Q1-Q2’15, despite of being historically negative; thanks to: Strong bookings performance driving advance payments Financing facilities signed already and
Slide 22: Corporate Liquidity Protection
22 Corporate Liquidity Protection Reinforcing our liquidity buffer to enhance our financial flexibility ~4.5 B€ Amounts in M€ ~2.9 B€ ~1.2 B€ of cash linked to suppliers payments 300 M€ of additional undrawn working capital lines The consolidated financial data for the year ended December 31, 2014 p
Slide 23: Corporate Debt Maturity Profile
23 Corporate Debt Maturity Profile Dec 31, 2014 Pro-forma Recourse Maturity (€m) Corp. Cash Sources ~4.5 B€ Next significant refinancing through March 2016 Note proforma: Syndicate Loan shown as fully drawn – actual maturity outstanding at December 31, 2014: ~180 M€ due in 2018 – CB 2017 and HY 2015
Slide 24: Agenda: 2015 Outlook
ABENGOA Agenda 3) *” 2015 Outlook
Slide 25: FY2015 Abengoa 3.0 Guidance
25 FY2015 “Abengoa 3.0” Guidance FY 2015 guidance focus on further deleverage Revenues EBITDA Corporate EBITDA Net Income Net Corp. Leverage Net Corp + NRDP Lever. Consol. Net Leverage Corporate FCF FY 2015 Guidance € Millions YoY Change 7,850-7,950 1,400-1,450 920-935 280-320 ~1.2x ~3.2x ~3.9x ~1,4
Slide 26: Main Takeaways (I)
Significantimprovementfornet incomein 2015 26 Solid operating performance in 2014 (revenues, EBITDA, bookings, backlog,) 2015 expected to be a strong operating year supported by record backlog However, uncertainty & price movements last Nov’14 impacting WC in Q4 Creation of APW-1 with EIG, unlocking
Slide 27: Main Takeaways (II)
27 Main Takeways (II) EIG agreement is a game changer Cash payment of 450-550 M€ to Abengoa for equity already invested Secured investment for current projects in backlog through EIG for next 4 years - ~700 M€ Reinvestment of initial equity of 1.4 B$ after 4 years Reduction non-recourse debt (bridge
Slide 28: Thank you
Thank you ABENGOA February 9, 2014