Abengoa Sa · OTC:AGOAF
Abengoa Sa — Q3 2018 Earnings Presentation
24 slides from Abengoa Sa's earnings presentation, Nov 13, 2018
Slide 1: 2018 Q3 Results Presentation
2018 Q3 Results Presentation November 13, 2018
Slide 2: Forward Looking Statements
Forward Looking Statements ▪ 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 current
Slide 3: Agenda
Agenda 1 2018 Q3 Highlights 2 Financial Review 3 Conclusion 3
Slide 4: 2018 Q3 Highlights
‘| | 2018 Q3 Highlights ABENGOA
Slide 5: Abengoa completes third quarter of 2018 with improved profitability and bookings of €1.2 billion
Abengoa completes third quarter of 2018 with improved profitability Highlights of the period and bookings of €1.2 billion ▪ Continued improvements of Health and Safety indicators with a Lost Time Injury Rate (LTIR) of 2.8 (5.1 in Q3 2017) ▪ EBITDA of €135 million registered in the first nine months
Slide 6: Commitment to Health & Safety
Commitment to 970 and 1,207 days without fatal accidents among Abengoa personnel and Health & Safety its subcontractors’ personnel, respectively Working towards the goal of zero accidents Lost Time Injury Rate – Q3 2018 ABENGOA Contractors LTIR Q3 2017: 5.1 970 934 1,207 2.8 Below comparable industr
Slide 7: Financial Review
? | Financial Review ABENGOA
Slide 8: Key Consolidated Figures
Key Consolidated Figures Continued improvement of operating profitability. (€ million) ▪ Revenues of €896 million, lower than the first nine months of 2017 due to completion of projects and delay Q3 2018 Q3 2017 Change Sept’ 17 in the start of more recent projects ▪ EBITDA of €135 million, a large i
Slide 9: Revenues by Segment and Geography; Main projects in execution
Revenues lower than Q3 2017 due to certain projects coming to an Revenues end in South Africa, Latin America, and Middle East Revenue by Segment Revenue by Geography 4% South America 16% 6% Middle East 10% 26% E&C Others 12% Spain Concessions Europe (ex Spain) 23% 84% 19% North America Africa ➢ Main
Slide 10: EBITDA Bridge
EBITDA Bridge Continued improvements in profitability, mainly due to reductions in overhead Figures in € million EBITDA Sept 2018 EBITDA Sept 2017 160 140 140 120 120 100 100 -52 79 72 80 80 135 60 60 40 40 69 56 20 49 20 0 0 E&C Concessions EBITDA Q3 2018 E&C Concessions Restructuring EBITDA Q3 Adv
Slide 11: Reductions in Overhead Costs
Reductions in Continued reductions in overhead costs, with overall target of 3.5% of Overhead Costs sales Overhead Costs (€m) Main Drivers 120,0 100,0 (44%) ▪ Lighter structure: accommodating 80,0 organizational structure to the real level of 60,0 activity 97,5 40,0 ▪ Increased operational efficienc
Slide 12: Financial debt reduced with the sale of Atlantica Yield
Financial debt reduced with the sale of Atlantica Yield with additional Financial Debt Structure paydowns in the short term Financial Debt as of September 30, 2018(1) (€ million) ▪ Gross corporate debt reduced in first nine months due to sale of 25% stake in Atlantica Yield 111 (344) • ~additional $
Slide 13: Summary Cash Flow
Capex and debt amortization financed mostly through Summary Cash Flow divestments Sources & Uses as of September 30, 2018 (€ million) Total Sources: €623m Total Uses: €(623)m 110 90 (487) Operating CF: €(53)m 70 606 50 (55) 65 30 (83) (63) 10 17 -10 Cash Divestments Financing Capex & Other Profit ad
Slide 14: E&C Bookings
Abengoa has been awarded in the first nine months of 2018 new projects for E&C Bookings a total value of €1.2 billion Main projects awarded in Q3 2018 Electromechanical construction and assembly project for the Codelco Humos Negros Chile National Copper Corporation of Chile (Codelco) Centro Comercia
Slide 15: E&C Commercial Opportunities
E&C Commercial Abengoa will leverage on its pipeline to continue building up its Opportunities project backlog Pipeline by Region Pipeline by Project Type 4% 3% Middle East South America 12% 5% 5% 30% Rest of Europe (excl. Spain) E&C ▪ Abengoa currently has a pipeline of 6% Spain identified projects
Slide 16: Update on agreement with Algonquin
Update on agreement Agreement reached with Algonquin for the sale of the remaining 16.5% stake in with Algonquin Atlantica Yield Sale of 16.5% stake AAGES Joint Venture P ▪ Staff: focusing in completing its footprint in key strategic ▪ Agreement reached to sell 16.5% stake in geographies. AY ▪ Agree
Slide 17: Update on Asset Disposal Plan
Update on Asset Significant progress on the completion of A3T and other asset disposals Disposal Plan Other Assets pledged to the new financing Bioenergy USA 1G & 2G bioethanol √ Bioenergy Europe 1G bioethanol √ ▪ Construction of asset virtually completed AB San Roque Biodiesel √ Cogeneration ▪ Over
Slide 18: Conclusion
3 Conclusion ABENGOA
Slide 19: Conclusion: First nine months of 2018 marked by increased profitability
Conclusion First nine months of 2018 marked by increased profitability Recovery of business activity, with approximately €1.2 billion of new projects awarded in first nine months Strong increase in profitability, with EBITDA of €135 million registered in the first three quarters. Revenues reached €8
Slide 20: Appendix
> Appendix 20
Slide 21: Financial Debt: Maturity Profile
Financial Debt: Post restructuring financial debt with improved maturity profile Maturity Profile Figures in € million Q3 2018 Maturity Corporate Financial Debt(1) New Money 1 660 2021(2) New Money 2 267 2021(3) Old Money 1,556 2022 / 2023 Loan - Centro Tecnológico Palmas Altas 77 Short-term. Secure
Slide 22: Results by Segment
Results by Segment Revenues EBITDA (Figures in € million) Q3 2018 Q3 2017 ∆% Q3 2018 Q3 2017 ∆% Engineering and Construction 756 976 (23)% 56 49 14% Concession-type Infrastructure 140 124 13% 79 72 10% Total 896 1,100 (19)% 135 121 12% One off restructuring expenses (advisors) (52) Total 896 1,100 (
Slide 23: Consolidated Cash Flow
Consolidated Cash Flow Figures in €million Q3 2018 Q3 2017 Profit for the period from continuing operations (190) 5,055 Non-monetary adjustments & others 255 (5,106) Profit for the period adjusted by non monetary adjustments 65 (51) Operating Variations in working capital (55) (100) Activities Net i
Slide 24: Thank you
2018 Q3 Results Presentation November 13, 2018 Thank you