Abengoa Sa · OTC:AGOAF
Abengoa Sa — FY2014 Earnings Presentation
49 slides from Abengoa Sa's earnings presentation, Feb 23, 2015
Slide 1: FY 2014 Earnings Presentation
Innovative Technology Solutions for Sustainability ABENGOA FY 2014 Earnings Presentation February 23, 2015
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 FY 2014 Business Review FY 2014 Financial Review Outlook & Targets Appendices 3
Slide 4: FY 2014 Business Review
Agenda FY 2014 Business Review 4
Slide 5: YTD Financial Summary
YTD Financial Summary Delivering a solid operating performance in 2014 P&L Business KPI’s Balance Sheet & CF Revenues €7.2bn (1)% E&C Bookings €5.7bn +16% Corp. Leverage 2.4x +0.2x 5,672 7,151 2.4x Q1 H1 9M FY Q1 H1 9M FY Mar. Jun. Sep. Dec. EBITDA €1.4bn +11% E&C Backlog €8.0bn +17% Corp.+NRDP 4.5x
Slide 6: Highlights of FY 2014
Highlights of FY 2014 Executing on our strategic plan while delivering solid results Positive performance with strong margins, growth in EBITDA & net income • No deviation in figures reported in the market update on Feb 9, 2015 Business • Record E&C backlog of 8.0 B€ driven by excellent new bookings
Slide 7: APW-1 Status Update
APW-1 Status Update On track to meet the expected target Atacama I A3T Brazilian T&D lines Atacama II A4T ATN 3 Ashalim Norte III Portfolio of SAWS Nicefield Projects and Investment • Total equity committed initially of 2.5 B$ • 55% will be held by EIG and 45% by Abengoa. • Reinvest 100% of the init
Slide 8: Geographic Diversification
Geographic Diversification 8% growth in the Americas, which represent 62% of our revenues Revenues by Region Weight (%) Y-o-Y Growth M€ 2,254 North America 32% 37% Solid performance 2,670 in America; +8% expected to 2,177 South America continue in 2015 1,415 30% 20% 893 Rest of EU 863 12% 12% 889 Sp
Slide 9: Business Highlights - E&C
Business Highlights - E&C Strong 2014 E&C margins and record backlog providing visibility Engineering & Construction (M€) Revenues EBITDA & Margin (7)% 0% • Increase EBITDA 2014 of 120 bp due 4,832 4,514 806 806 to vertical integration, technology and O&M 17.9% • Significant bookings in Q4’14 to clo
Slide 10: Vertical Integration
Vertical Integration Vertical integration to secure margins and manage risks Manufacturing Centers Worldwide Locations Power Structures Design, test & manufacturing of steel Spain structures for T&D lines, substations, thermo-solar and PV plants, wind and Mexico India power generation Solar Plants C
Slide 11: Technology
Technology Strong R&D focus and innovation as key differentiator R&D Centers Worldwide Locations R&D Solar USA Spain Development of new capabilities in solar-thermal energy (STE), optical, chemistry, electronics, materials, PV technology, storage capabilities, etc. development and validation stages.
Slide 12: Dec. 2014 E&C Backlog
Dec. 2014 E&C Backlog Increased backlog of +9 B€ after recent awards YTD 2015 Engineering & Construction Backlog Backlog Evolution Conversion to Revenues(1) ~24% ~36% ~XX% 2.3 1.8 8.0 ~40% 3.5 7.3 6.8 4.0 Dec'13 Sep.'14 Dec.'14 Additional YTD 2015 2016 2017+ Bookings Dec. 2014 Backlog by Sector Dec.
Slide 13: Zoom in E&C Pipeline
Zoom in E&C Pipeline ~164 B€ of Pipeline Opportunities Diversified by Sector & Region T&D 11% 12% 6% Pipeline 163.9 B€ By Sector Power Generation Water 20% Indust. Plants 51% Billion € Others +18% 164 15% North America 18% 139 Europe By Region 15% Brazil Rest South America 34% 6% Asia 11% Africa Con
Slide 14: Business Highlights - Concessions
Business Highlights - Concessions Delivering significant growth and high EBITDA margins Abengoa Abengoa Concessions Concessions (M€) Revenues EBITDA & Margin 30% 50% • Continued growth in revenues & 499 331 EBITDA with solid margin 384 220 performance 66.2% • Increased margins due to efficiencies xx
Slide 15: Concessions Equity BV Evolution
Concessions Equity BV Evolution Reduced risk profile as we bring assets in operation Value in Projects in Operation & under Construction 2.0x 0.9x 0.7x 0.3x 3,587 • 1.5 B€ of EBV in operation, 0.9 € millions 3,314 B€ of EBV in projects under 874 23 assets construction and 1.2 B€ market 2,845 value o
Slide 16: Excellent Track Record in Equity Recycling
Excellent Track Record in Equity Recycling ~3.4 B€ of equity recycled in last 5 years with attractive returns Asset Transaction Cash (M€) Year Operation Multiple Telvent Sale of 60% stake 510 2011 Company 4x cash-on-cash Businesses Befesa Business Sale 620 2013 Company ~1.05x BV ETIM – ETEE Asset Sa
Slide 17: Large Pipeline for Future Assets Sales
Large Pipeline for Future Assets Sales First class project pipeline to fuel ABY growth 2014 2015 2016 2017 2018/19 IPO ROFO 2 Future ROFO’s from assets currently under Solana Shams (20%) Mojave Helioenergy 1&2 construction Solaben 2&3 (30%) Khi (2015) Xina (Q3) Ashalim (Q2) APW 1 Palmatir Honain
Slide 18: Enhance Corporate Governance for ABY
Enhance Corporate Governance for ABY Enhanced corporate governance & incentives well aligned for all parties Enhance • Majority of independent directors Corporate • Increase of matters to be decided at board of directors Governance for ABY • Asset price transfer only voted by independent directors s
Slide 19: Business Highlights - Bioenergy
Business Highlights - Bioenergy Strong performance: high margins and increased production Bioenergy (M€) Revenues EBITDA & Margin +5% +13% 2,137 271 2,029 241 • Excellent operating performance in Q4 with a strong margins 12.7% (~19%) due to market dynamics 11.9% and diversification FY'13 FY14 FY'13
Slide 20: Asset Value at the Corporate Level
Asset Value at the Corporate Level 8.1 B€ of assets backing up our corporate+NRDP net debt of 4.3 B€ Figures as of December 31 Total Asset Value 8.1 B€ at Corporate Asset Value in Asset Value in 5.5 B€ Concessions Bioenergy 2.6 B€ BB B€ (@ Book Value) Project Assets Abengoa Yield Operation Construct
Slide 21: FY 2014 Financial Review
Agenda FY 2014 Financial Review 21
Slide 22: Change in Consolidation Perimeter
Change in Consolidation Perimeter Accounting rules require us to change FY 2014 results perimeter 1 P&L ABY • 225 M€ impact in FY2014 Revenues Profit classified in a single line discontinued and EBITDA FY 2013 P&L is re-expressed Abengoa • No impact in FY 2014 Net Income Yield Balance Sheet ROFO 2 A
Slide 23: FY 2014 P&L Highlights
FY 2014 P&L Highlights Confirmation of figures reported on the market update call FY 2013 FY 2014 1 2 1 2 € Millions FY 2013 FY 2013 Previous 2014 YoY xxxcxxx as reported ABY APW-1 re-expressed Perimeter ABY APW-1 as reported Change Revenues 7,356 (111) - 7,245 7,375 (225) - 7,151 (1)% EBITDA 1,365
Slide 24: FY 2014E Net Debt Highlights
FY 2014E Net Debt Highlights Confirmation of figures reported on the market update call € Millions FY’14 Previous 1 2 FY 2014 13% ABY ROFO 2 2014 xxxxxxxxxxxcxxx Perimeter ABY APW-1 Sale Adjusted Corp. Net Debt (2,353) - - (2,353) +270 +120 (1,963) Debt & Leverage Corp Leverage 2.4x - - 2.4x -0.3 -0
Slide 25: FY 2014 P&L Snapshot
FY 2014 P&L Snapshot Exceeding EBITDA and net income guidance for FY 2014 2014 Performance (€ millions) FY 2014 Y-o-Y Change Revenues 7,151 (1)% Flat FY 2014 revenues Raw Materials & Operating Cost (Income) (5,734) (4)% % of Sales 80.2% (220) bp • Achieving the low end of the guidance R&D (9) +33% %
Slide 26: Corporate Free Cash Flow
Corporate Free Cash Flow Achieving Positive Corporate FCF in FY 2014 FY 2013 FY 2014 Corporate EBITDA 821(1) 964 Net Financial Income/(Expense) (468) (546) Taxes (11) 9 Dividends from Abengoa Yield - 11 Funds from Operations 342 438 Change in Working Capital & Others 59 (532) Cash Flow from Operatio
Slide 27: Working Capital & Leverage
Working Capital & Leverage Flat corporate working capital in Q4 impacting corp. leverage ratio FY 2014E Leverage Ratios Corporate+Bridge Loan • Temporary delay on equity partners entry and bridge Delays in Flat corporate ~4.5x financing of ~400 M€ for advance working projects under construction paym
Slide 28: Consolidated Cash-flow
Consolidated Cash-flow FY 2013 FY 2014 EBITDA 1,267 1,408 Working Capital 221 (524) Net Interest Paid (509) (772) Operating Taxes & Other Financial Cost (223) (172) Activities Non-monetary Adjust. (126) (44) Discontinued operations 82 123 A. Cash generated from operations 712 19 Total CAPEX invested
Slide 29: Net Debt Overview
Net Debt Overview Consolidated net debt reduction of ~750 M€ year over year FY 2013 FY 2014 Millions € Corporate Debt 5,531 5,204 Guaranteed by Corporate Corporate Cash, Equiv. & STFI (3,407) (2,851) Corporate Corporate Net Debt 2,124 2,353 Corporate Net Leverage 2.2x 2.4x Non- Non-recourse Debt in
Slide 30: Corp. Net Debt Bridge
Corp. Net Debt Bridge Increase in corp. net debt due to negative WC not recovered in Q4 Amounts in M€ (323) (187) 2,353 2,124 (532) (177) (546) 552 9 11 964 Dec. Dec. 2013 2014 30 (1) Abengoa’s dividend payment in April’14, IPO expenses from ABY and others
Slide 31: Zoom in Bridge Loans (NRDP)
Zoom in Bridge Loans (“NRDP”) 1.9 B€ of Bridge Loans as of Dec. 2014 Bridge Loan Info Long-term N/R Debt Uses & Sources Value Source Guarantee Maturity Expec. closing date C EPC Sponsor / Jul’15 – T&D Brazil 1,047 A B Jul’15 – Sep’17 Sources (€m) Uses (€m) Corp. Sep’19 Hosp. Manaus 35 C EPC Sponsor
Slide 32: Sept-Dec 2014 Corporate Liquidity Bridge
Sept-Dec 2014 Corporate Liquidity Bridge 2.9 B€ of corporate liquidity as of December 2014 December’14 Corp. Liquidity 2,851 M€ • Distributed among 38 institutions, out of which no one represents >10%. 1,754 M€ • 1,226 M€ linked to suppliers payments: 78 M€ • Reduction of 111 M€ vs Dec’13 • Confirmi
Slide 33: Corporate Liquidity Protection in 2015
Corporate Liquidity Protection in 2015 Substantial liquidity sources to face our corporate commitments Amounts in M€ +4,450 510 250 244 200 270 300 500 500 200 120 2,851 Corp. Undrawn FSF Sale of ABY CB 2017 HY 2015 ECP Reduction ROFO 2 (Q1) EIG (Q1) ROFO 3 (2015) Value in ABY Sale of Total Tranche
Slide 34: Corporate Debt Maturity Profile
Corporate Debt Maturity Profile Next significant refinancing through March 2016 Dec 31, 2014 Pro-forma Recourse Maturity (€m) ~4.5 B€(1) 2.9 B€ cash & 1,152 STFI as of 923 Dec’14 752 666 683 480 221 598 308 400 405 500 535 550 500 444 302 370 166 148 122 35 98 2015 Estimated Corp. Liquidity 2015E 20
Slide 35: Outlook & Targets
Agenda Outlook & Targets 35
Slide 36: Strategic Actions in 2015
Strategic Actions in 2015 Significant corporate cash generation expected in 2015 Transaction Value Comments Sale of 13% stake in ABY Cash collected in January 1 270 M€ 2 ROFO 2 agreement 120 M€ Signed in February 3 APW-1 EIG Agreement 550 M€ Expected to close by Mar 31, 2015 4 ROFO 3 agreement 200 M
Slide 37: 2015 Corporate FCF Guidance
2015 Corporate FCF Guidance Strong cash generation expected for 2015 FY 2015E Corporate EBITDA ~930 Net Financial Income/(Expense) & Taxes ~(470) Dividends from Abengoa Yield 40 Funds from Operations ~500 Change in Working Capital & Others - Cash Flow from Operations ~500 Corp. CAPEX (incl. R&D & Ma
Slide 38: FY2015 Abengoa 3.0 Guidance
FY2015 “Abengoa 3.0” Guidance FY 2015 guidance focus on further deleverage FY 2015 Guidance € Millions YoY Change Revenues 7,850-7,950 10-11% EBITDA 1,400-1,450 0-4% P&L Corporate EBITDA 920-935 -5/-3% Net Income 280-320 125-155% Net Corp. Leverage ~1.2x -1.2x Leverage Net Corp + NRDP Lever. ~3.2x -
Slide 39: Value for Money Invested
Value for Money Invested A business model poised to generate positive free-cash-flow Free Cash Flow Equity Recycling Equity Invest. Dividends EIG Equity < E&C Margin Capital Gains ABENGOA Capital Gains EPC Margin Technology Margin O&M Margin APW-1 ABENGOA YIELD Equity Principal LT Recycling Equity P
Slide 40: Main Takeaways (I)
Main Takeways (I) 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 Continued focus on technology to create key Significant improvem
Slide 41: Main Takeaways (II)
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 (b
Slide 42: Save the Date!
ABENGOA Save the Date! New York, April 7th, 2015 London, April 9th, 2015 Come join us in New York on April 7th and in London on April 9th for an in-depth drive into Abengoa’s businesses. Meet Abengoa’s CEO and Senior Management and hear the latest on the company’s objectives and financial targets. *
Slide 43: Appendices
ABENGOA . 4 Appendices
Slide 44: FY 2014 Results by Activity
FY 2014 Results by Activity € in Millions Revenues EBITDA EBITDA Margin FY ’14 FY ‘13 Var (%) FY ’14 FY ‘13 Var (%) FY ’14 FY ‘13 Engineering and Construction E&C 4,514 4,832 (7)% 806 806 -% 17.9% 16.7% Total E&C 4,514 4,832 (7)% 806 806 -% 17.9% 16.7% Abengoa Concessions Solar 335 259 30% 236 157 5
Slide 45: Abengoa Concessions (I)
Abengoa Concessions (I) Concessions in Operation as of Dec. 31, 2014 Sector Asset Country ABG ownership COD Normalized EBITDA Current EBV Chennai India 25% 2010 Equity method Tenes Algeria 51% 2014 14.4 55.0 Skikkda 34% 2009 Equity method Algeria M€ Honaine Algeria 26% 2010 Equity method Inapreu Spa
Slide 46: Abengoa Concessions (II)
Abengoa Concessions (II) Concessions under Construction/Development as of Dec. 31, 2014 Sector Asset Country ABG ownership COD Current EBV Ghana Ghana 56% Q1 2015 Agadir Morocco 51% 2017 27.1 SAWS USA 45% 2019 M€ Zapotillo Mexico 100% 2017 A3T Mexico 45% 278.6 A4T Mexico 45% Hospital Manaus Uruguay
Slide 47: Pending Capex by segment
Pending Capex by segment Pending CAPEX Amounts based on the company´s best estimate as of Dec. 31, 2014. Actual investments or timing thereof may change. Partners Abengoa Entry in Total ABG Equity (incl. EIG initial payment Capacity Country Debt (%) Operation Investment Capex to ABG for CAPEX alread
Slide 48: Asset Portfolio Capacity - Summary
Asset Portfolio Capacity - Summary Solid and well diversified asset portfolio Extensive concessional asset base once current capex plan completed Solid producing assets Solar (MW) Transmissions (km) 2,283 Biofuels (Ml/year) 780 3,175 3,270 1,503 11,528 991 991 6,253 5,143 3,270 3,270 1,611 1,743 512
Slide 49: Thank you
Innovative Technology Solutions for Sustainability ABENGOA Thank you February 23, 2015