Acciona Sa · BME:ANA
Acciona Sa — H1 2014 Earnings Presentation
26 slides from Acciona Sa's earnings presentation, Jul 30, 2014
Slide 1: H1 2014 Results, January - June
H1 2014 JANUARY - JUNE 30¢ July 2014
Slide 2: Disclaimer
Disclaimer This document has been prepared by ACCIONA, S.A. (“ACCIONA” or the “Company”) exclusively for use during the presentation of financial results for the first half of 2014 (H1 2014). Therefore it cannot be disclosed or made public by any person or entity with an aim other than the one expre
Slide 3: 1. H1 2014 key highlights
1. H1 2014 key highlights
Slide 4: H1 2014 key highlights
H1 2014 key highlights H1 2014 key highlights 1 ► Sale of a 1/3rd stake in ACCIONA Energía International Strategic ► Acquisition price of €417m + Earn-out (€50m) + Management fee alliance with • 2.3GW net operating renewable capacity KKR • 55 assets in 14 international markets • c.€120m cash distrib
Slide 5: Strategic alliance with KKR
1 Strategic alliance with KKR Minority partnership KKR acquires a 1/3 stake in AEI for €417m (excluding earn-out) The relationship of the partners will be governed by a Shareholders Agreement CASH 2/3 ACCIONA Energía International 1/3 2.3GW net operating renewable capacity 55 assets in 14 intern
Slide 6: Partnership with KKR
1 Partnership with KKR Consistent with ACCIONA’s strategy asset rotation and incorporation of minority shareholders to core businesses Initial target for the period 2013-2014 of €500m-€1,000m¹ exceeded with this landmark transaction Target: €1,000m €467m ~€850m €50m* €417m ~€385m €500m 150MW wind
Slide 7: H1 2014 key highlights
2 H1 2014 key highlights ► IFRS 11 implementation: New consolidation method Proportionally ► H1 2013 restated to be comparable accounted assets now accounted by equity Accounting method (Since Jan 2014) ► Extension of accounting useful life: ► Impact H1 2014: Extension from 20 to 25 years of the w
Slide 8: H1 2014 key figures
H1 2014 key figures % Chg. vs (€m) H1 2013 Revenues 3,005 -2.5% EBITDA 472 -16.3% EBITDA (ex regulatory impact) 593 +5.1% EBIT 254 +18.2% Ordinary capex 190 -6.4% NFD 5,848 -12.3% H1 2014 8
Slide 9: 2. Group financial information
2. Group financial information
Slide 10: Group: Capex by division
Group: Capex by division Capex breakdown By division Key highlights (€m) Capex Net ordinary capex slightly below H1 2013 Jan-Jun 13 Jan-Jun 14 (-6%) Energy 93 188 Energy captures most of the investment effort: WISE 110 21 - 266MW under construction Infrastructure 95 10 • 100% international Water
Slide 11: Group: Debt breakdown by division and nature
Group: Debt breakdown by division and nature Net debt breakdown Gross debt breakdown By division By nature (€m) Net Debt Net Debt 31-Dec-13 30-Jun-14 Energy 4,810 4,607 Non recourse (65%) WISE 222 437 Recourse (35%) Infrastructure 142 295 Water 54 104 €7,380m Service 26 39 Other Activities 1,008 804
Slide 12: Group: Net debt evolution
Group: Net debt evolution Net debt reconciliation H1 2014 (€m) LTM -12% 6,670 -€630m -€191m 370 308 454 385 5,362 -€318m +€107m +€19m 5,009 Operating CF Investment CF Financing CF Net debt June 2013* Debt associated to work in progress Derivatives *IFRS 11 restated H1 2014 12
Slide 13: Group: Debt amortization schedule
Group: Debt amortization schedule Principal repayment schedule 2014-2018 (€m)¹ 676 56 88 509 44 35 341 326 58 60 531 28 25 430 155 24 21 241 255 110 2014 2015 2016 2017 2018 Energy WISE Other activities Undrawn corporate credit lines of €1.8bn as of 30th June 2014 ¹ Excludes bilateral credit policie
Slide 14: Group: Transforming ACCIONA's corporate debt structure
Group: Transforming ACCIONA’s corporate debt structure Main objectives Diversify access to corporate debt financing, reducing traditional dependence on banking debt, increasing access to capital markets Extend average life of corporate debt Reduce financing costs and optimise liquidity Focus
Slide 15: Energy: Key figures
Energy: Key figures Key figures Latest regulatory changes (Million Euro) Jan-Jun 13 Jan-Jun 14 Chg. Chg. (%) €468m Variation +€17m €363m Revenues 1,047 980 -66 -6.3% -22% -€121m EBITDA 468 363 -104 -22.3% Var. ex reg. changes H1 2013 RD-L Operat. H1 2014 +4% Margin (%) 44.7% 37.0% EBITDA 9/2013 EBIT
Slide 16: Energy: Severe impact of cumulative measures
Energy: Severe impact of cumulative measures Impact of regulatory changes 2012-2013 Law 15/2012¹ RDL 9/2013 Total impact + RDL 2/2013² Revenues -€16m -€131m -€147m EBITDA -€60m -€121m -€181m EBT -€65m -€152m -€216m EBT would have been €216m higher excluding the total impact of regulatory measures in
Slide 17: Energy: Wind drivers by country
Energy: Wind drivers by country Wind prices (€/MWh) and Load factors (%) H1 2014 H1 2013 Chg. (%) Av. price (€/MWh) LF (%) Av. price (€/MWh) LF (%) Av. price (€/MWh) Spain Average 47.9 27.8% 85.6 29.7% -44.0% Spain - Regulated 56.9 - Spain - Not regulated 28.4 - Canada 40.2 35.0% 55.1 38.0% -27.1% U
Slide 18: Energy: Installed capacity and under construction
Energy: Installed capacity and under construction Installed MW + Under construction MW @ H1 2014 Installed MW Under constr. MW Total Attributable Eq accounted Attributable Wind Spain 4,743 3,466 619 0 Wind - Under construction Wind international 2,263 2,021 48 174 Chile 36MW South Africa 138MW C
Slide 19: Energy: Capacity under the equity accounting method
Energy: Capacity under the equity accounting method Detail of capacity via the equity accounting method H1 2014 (proportional figures) 30-Jun-14 MW GWh EBITDA NFD Average COD Wind Spain 619 842 20 262 2005 Wind International 48 63 3 15 2005 Australia 33 43 2 10 2005 Hungary 11 12 1 5 2006 USA 4 8 0
Slide 20: Infrastructure: Key figures and backlog
Infrastructure: Key figures and backlog Key figures Construction backlog H1 2014 (Million Euro) Jan-Jun 13 Jan-Jun 14 Chg. Chg. (%) International 58% Revenues 1,303 1,186 -117 -9.0% EBITDA 56 45 -11 -19.3% Spain 42% Margin (%) 4.3% 3.8% €5,528m International backlog H1 2014 Key highlights By region
Slide 21: Infrastructure: Concessions
Infrastructure: Concessions Road Rail Canal Port Hospital Total # of concessions 12 1 1 1 5 20 Proportional EBITDA H1 2014 (€m) 48 1 1 0 11 58 Consolidated EBITDA H1 2014 (€m) 17 0 0 0 7 20 Average life (yrs) 33 35 30 30 29 31 Average consumed life (yrs) 7 5 8 9 6 7 Equity: €429m Invested capital (€
Slide 22: Water and Service
Water and Service Water: key figures Service: key figures (Million Euro) Jan-Jun 13 Jan-Jun 14 Chg. Chg. (%) (Million Euro) Jan-Jun 13 Jan-Jun 14 Chg. Chg. (%) Revenues 222 214 -8 -3.7% Revenues 289 335 47 16.1% EBITDA 12 11 -1 -9.7% EBITDA 7 9 2 36.4% Margin (%) 5.6% 5.2% Margin (%) 2.3% 2.7% Key h
Slide 23: Other activities
Other activities Other activities: key figures Key highlights (Million Euro) Jan-Jun 13 Jan-Jun 14 Chg. Chg. (%) Trasmediterranea: Trasmediterranea’s EBITDA amounted to -€5m Revenues 279 339 60 21.6% compared to -€7m from previous year EBITDA 21 42 20 96.4% EBITDA increases by €2m due to higher
Slide 24: 3. Closing remarks
3. Closing remarks
Slide 25: Closing remarks
Closing remarks Results severely impacted by new regulation Regulatory impact (RDL 9/2013): -€152m EBT Total impact (Law 15/2012+ RDL 2/2013 + RDL 9/2013): -€216m EBT Improvements at operating level (vs. June 2013) EBITDA up +5% ex regulatory impact (RDL 9/2013) Net debt down by 12% and incr
Slide 26: H1 2014 Results, January - June
H1 2014 JANUARY - JUNE 30¢ July 2014