Post on 24-Sep-2020
ABENGOA YIELD
ABENGOA YIELD
Second Quarter 2015 Earnings Presentation July 30, 2015
ABENGOA YIELD
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Many factors could cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements that may be expressed or implied by such forward-looking statements, including, among others: changes in general economic, political, governmental and business conditions globally and in the countries in which the Company does business; decreases in government expenditure budgets, reductions in government subsidies or adverse changes in laws affecting the Company’s businesses and growth plan; challenges in achieving growth and making acquisitions; inability to identify and/or consummate future acquisitions; legal challenges to regulations, subsidies and incentives that support renewable energy sources; extensive governmental regulation in a number of different jurisdictions; changes in prices, including increases in the cost of energy, natural gas, oil and other operating costs; counterparty credit risk and failure of counterparties to the Company’s offtake agreements to fulfill their obligations; inability to replace expiring or terminated offtake agreements with similar agreements; new technology or changes in industry standards; inability to manage exposure to credit, interest rate, exchange rate, supply and commodity price risks; reliance on third-party contractors and suppliers; failure to maintain safe work environments; insufficient insurance coverage and increases in insurance cost; litigation and other legal proceedings; reputational risk; revocation or termination of the Company’s concession agreements; variations in market electricity prices; unexpected loss of senior management and key personnel; changes to our relationship with Abengoa, S.A.; weather conditions; failure of newly constructed assets to perform as expected; failure to receive dividends from assets; changes in our tax position; unanticipated outages at our generation facilities; the condition of capital markets generally and our ability to access capital markets; adverse results in current and future litigation and our ability to maintain and grow our quarterly dividends. Furthermore, any dividends are subject to available capital, market conditions, and compliance with associated laws and regulations. These factors should be considered in conjuction with information regarding risks and uncertainties that may affect the Company’s results included in the Company’s filings with the U.S. Securities and Exchange Commission at www.sec.gov.
Abengoa Yield undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or developments or otherwise. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described herein as anticipated, believed, estimated,
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Disclaimer
ABENGOA YIELD
3
Executive Overview
Strong EBITDA and CAFD for the period
All assets performing according to expectations
+18% dividend over Q2 guidance ($0.40 vs $0.34 per share)
Closed acquisitions of Helios, Solnovas, Helioenergy and Kaxu
Obtained rating from S&P (BB+) and Moodys (Ba3)
Solid execution
Fourth acquisition agreed for $370.6 M generating $31.4 M CAFD
• Acquisition of Solaben 1/6 agreed
• ATN2 deal improved and closed, including purchase of a third party stake
• Acquisition of a 13% stake in Solacor agreed with a third party
Revolving Credit Facility extended in $290 M
Continuous growth
3
ABENGOA YIELD Agenda
Q2 2015 Results 1
Q&A 4
Acquisitions and growth 2
Guidance 3
4
ABENGOA YIELD Agenda
Q2 2015 Results 1
Q&A 4
Acquisitions and growth 2
Guidance 3
5
ABENGOA YIELD Highlights
Consistent results driving CAFD for the six month period to $83M
(Amounts in $M) 3 months June 15
6 months June 15
6 months June 14
% Variation 6m vs 6m
Revenue 190.3 308.6 169.8 81.7%
Further Adjusted EBITDA inc. unconsolidated affiliates
(*) 159.6 264.8 137.2 93.0%
CAFD 44.6 83.1 - n/a
(*) Further Adjusted EBITDA includes dividend from preferred equity investment in Brazil and our share in EBITDA of unconsolidated affiliates.
6
ABENGOA YIELD Segment information
Good results across our geographies and business segments
(Amounts in $M) North America South America EMEA
6 months June 15
6 months June14
∆ 6 months June 15
6 months June 14
∆ 6 months June 15
6 months June 14
∆
Revenue 150.2 96.8 55.1% 50.6 36.3 39.7% 107.8 36.7 193.4%
Further Adjusted EBITDA inc. unconsolidated affiliates
137.3 83.7 64.1% 51.6 29.5 75.2% 75.9 24.0 215.9%
(Amounts in $M) Renewables Conventional Transmission Water
6 months June 15
6 months June 14
∆ 6
months June 15
6 months June 14
∆ 6
months June 15
6 months June 14
∆ 6
months June 15
6 months June 14
∆
Revenue 193.4 78.3 147.1% 65.3 57.1 14.4% 39.2 34.4 14.1% 10.6 - n.m.
Further Adjusted EBITDA inc. unconsol. affiliates
159.2 60.6 162.8% 53.3 48.6 9.8% 41.9 28.0 49.2% 10.4 - n.m.
7
ABENGOA YIELD Key operational metrics
6 months June 15
6 months June 14
Renewable GWh
Produced 1,083 418
Conventional
GWh Produced 1,223 1,205
Electric Availability 101.8% 101.1%
Transmission Availability 99.9% 100.0%
Water Availability 100.7% -
Operational performance in line with expectations
8
ABENGOA YIELD Cash Flow
Strong operating cash flow for the period
Further Adjusted EBITDA inc. unconsolidated affiliates 264.8
Share in EBITDA of unconsolidated affiliates (7.1)
Interest paid (131.4)
Variations in working capital 0.4
Non monetary adjustments and other (47.4)
Operating Cash Flow 79.3
Investing Cash Flow (571.9)
Financing Cash Flow (*) 675.0
Net change in Cash 182.4
(Amounts in $M)
H1 2015
9 (*) Includes ABY dividend payment.
ABENGOA YIELD
Conservative leverage at holding level
(1) Based on debt as of June 30, 2015, based on 2016 CAFD pre corporate debt service.
As of June 15
Corporate Cash at Holding level ($M) 154.8
Net Corporate Debt at Holding level ($M) 222.2
Net project finance debt of operating subsidiaries ($M)
4,867.9
Net Corporate Debt / CAFD pre corporate debt service (1) 1.3
Net Corporate Debt / CAFD pre corporate debt service Target
<3
Financing
10
ABENGOA YIELD
$ Million
Net Debt Bridge
(1) Operating cash flow before interest paid
Acquisitions Operations Other Jun ‘15 Dec ‘14
3,847
5,090
664
1,266
694
55 211 131
29
Other Dividend paid Interest
paid
Acquisitions
payments
Acquisitions Project Debt
Operations(1)
Capital increase
11
Financing
ABENGOA YIELD Q2 dividend
Q2 dividend of $0.40 per share approved, 18% increase vs guidance for the quarter
0.2592
0.34
Dollars per share
(1) Approved by the Board of Directors on July 29, 2015. Dividend per share guidance for the year 2015 remains unchanged at $1.60, consisting of $0.34 per share for Q1, $0.40 per share for Q2 and $0.43 for Q3 and Q4.
0.40 (1)
2015 Dividend guidance of $1.60 per share maintained
+25% Quarterly
Q4 2014
Q1 2015
Q2 2015
12
+18% vs guidance for the quarter
ABENGOA YIELD Agenda
Q2 2015 Results 1
Q&A 4
Acquisitions and growth 2
Guidance 3
13
ABENGOA YIELD
Honaine (26%)
Skikda (34%)
100 MW Helioenergy (30%)
100 MW Shams (20%)
ATN2 (100%)
ATN 2 renegotiated as part of a ROFO 4 in new improved terms
Honaine, Skikda and Helioenergy already acquired in Q1 for 94 MUSD
9.4 MUSD of incremental cash flow from the acquired assets at a 10% yield
ATN 2 purchased 100% as part of ROFO 4, including stake owned by a financial investor, not previously considered
Not all waivers secured for Shams, acquisition on hold. No impact on guidance
Update on ROFO 2
(ROFO 4)
14
ABENGOA YIELD
ROFO 3 of 450 MW renewable energy assets closed
100 MW Helioenergy (Remaining 70%)
100 MW Helios (100%)
150 MW Solnovas (100%)
100 MW Kaxu (51%)
All acquisitions closed since May for a total amount of $682 M
Run-rate CAFD of $64 M, acquisition yield of 9.4%
Currency swap agreement signed with Abengoa for all Euro denominated assets(1)
Financed with the proceeds from capital increased pursuant to a private placement
Update on ROFO 3
(1) Average exchange rate for the acquisitions of €1.00 = $1.13 15
ABENGOA YIELD New ROFO 4
Equity purchase price of $370.6 M
Run-rate CAFD of $31.4 M, acquisition yield of 8.5%
Solaben 1/6 acquisition to be financed with recently expanded RCF (1) . CAFD from Solaben 1/6 to be covered by the currency swap agreement signed with Abengoa
13% stake in Solacor and preferred equity in ATN2 acquired to third parties
2016 DPS guidance to be updated once the RCF is repaid through long-term financing
New acquisition announced from Abengoa and third parties for $371M
100 MW Solaben 1/6 (100%) co-located with Solaben 2/3
13% stake in Solacor 1/2 to be acquired to partner JGC
100% stake in ATN2, larger than expected:
– Higher revenues negotiated with offtaker
– Acquisition of equity owned by Sigma, a financial investor
Note: Assuming a € - US$ exchange rate of €1.00=$1.09 (1) RCF Tranche B cost is Libor + 250 bp
16
ABENGOA YIELD Build up on CAFD growth for 2016
$1.5 Bn in equity value in acquisitions from Abengoa since IPO driving CAFD before corporate interest to $287 M
0
50
100
150
200
250
300
350
CAFD before corporate interest $ Million
CAFD 2016 IPO
CAFD 2016 Pro forma
ROFO 1
ROFO 2
ROFO 4
9
287
155
31
27
+85%
9% Average
Acquisition Yield
ROFO 3
65
8.6%
8.5%
10.0% 9.4%
% Acquisition yield
17
ABENGOA YIELD
Sector In Operation 2016 2017 2018/19/ 20 Estimated CAFD
run rate (M$)
Khi (51%)
Leasing
Nicefield (100%)
Xina (40%)
Atacama I (100%)
Ashalim (50%)
Atacama II (100%) ~ 90-110
ATN 3 (40%) ATE XVI-XXI (100%) ATE XXII-XXIV (100%)
Delaney- Colorado River TL
~ 85-95
SPP1 (51%) A3T (100%) A4T (100%) Norte 3 (100%)
Salina Cruz (49%) ~ 110-125
Nungua (56%)
Tenes (51%)
Agadir (51%)
Zapotillo (100%) SAWS (100%) ~ 25-30
Total ~ 310-360
Pipeline for growth
Abengoa’s portfolio is progressively “replenished” as we complete acquisitions
Expected COD
18
ABENGOA YIELD Agenda
Q2 2015 Results 1
Q&A 4
Acquisitions and growth 2
Guidance 3
19
ABENGOA YIELD
Guidance confirmed, to be updated with ROFO 4 final long-term financing
$1.60
$2.10 - $2.15
+20% CAGR DPS growth
since IPO
+X% +30-34%
YoY growth
+X% +12-15%
CAGR
Dividend per share
2015 2016 2020
IPO $1.36
IPO $1.70 +18 %
+25 %
20
Guidance reiterated
ABENGOA YIELD
21
Non-recourse project finance together with reasonable leverage at the corporate level.
Good geographic and business segments diversification with limited exposure to wind and significant share of availability-based contracts.
$ 1.5 bn in assets already acquired with an average 9% yield above industry
Proprietary pipeline of assets with Abengoa will nurture high growth without exposure to overheated markets
Investments Highlights
Portfolio of assets performing as expected, driving an increase on DPS due to good EBITDA and CAFD for the period.
Long-term contract with credit-worthy customers mostly denominated in USD provides a very stable risk profile.
Solid Results 1
Resilient Portfolio
2
Proven Track Record
5
Strong Risk Management Culture
6
Visible Growth
4
International Presence
3
ABENGOA YIELD Agenda
Q2 2015 Results 1
Q&A 4
Acquisitions and growth 2
Guidance 3
22
ABENGOA YIELD Appendix
23
ABENGOA YIELD
Portfolio including ROFO 4 assets
(1) Based on Moody’s rating. Offtakers for Quadra 1&2, Honaine and Skikda are unrated. Offtaker for ATN and ATS is the Ministry of Energy of the Government of Peru and for Spanish assets is the Government of Spain.
(2) Weighted by 2016 CAFD pro forma of ROFO 4
High Quality Offtakers(1)
Investment grade counterparties
# of assets by offtaker rating
Weighted(2) average
remaining life: 23 years
Long-Term Contracts
Remaining Contract Terms (years) as of December 31, 2014
Assets with unrated off-takers represent less than
4% of the CAFD
Low dependence on natural resources
64% Availability-
based
36% Production-
based
64% of total expected CAFD
expected to come from assets with
contracts based on availability
and not on production
A3: 5
Baa2: 11 N/A: 4
17 18 18 19 19 19 20 20 20 20 21 21
22 22 22 23 23 23 23 23 24 25 26
29 29
PS 10ACT
ATN2Skikda
PS 20Palmatir
KaxuQuadra 1&2
Solnova 1Solnova 3
CadonalSolnova 4
Solacor 1/2Helios 1
Solaben 3HonaineHelios 2
Solaben 2Helioenergy 1/2
PalmuchoSolaben 1/6
MojaveATN
SolanaATS
24
Sizeable and Diversified Asset Portfolio (including ROFO 4)
ABENGOA YIELD
Portfolio including ROFO 4 assets
>90% of long term interest rate exposure fixed or covered
<1% commodity exposure
RoW
North America
South America
Europe
Water
Transmission
Conventional
Renewable
66% 16%
15% 3%
93% US$
7%
Other
41%
30%
20%
9%
Geography Currency 1
Sector
(1) Including the effect of the swap agreement signed with Abengoa Note: All amounts based on 2016 CAFD pro forma of ROFO 4 25
Sizeable and Diversified Asset Portfolio (including ROFO 4)
ABENGOA YIELD Sizeable and Diversified Asset Portfolio (including ROFO 4)
(1) Liberty Interactive Corporation holds $300M in Class A membership interests in exchange for a share of the dividends and the taxable loss generated by Solana. (2) Reflects the counterparty’s issuer credit ratings issued by Standard & Poor’s Ratings Services, or S&P, Moody’s Investors Service Inc., or Moody’s, and Fitch Ratings Ltd, or Fitch, respectively. (3) USD denominated but payable in local currency. (4) Refers to the credit rating of Uruguay, as UTE is unrated. (5) During the initial 5-year period, we have the right to receive, in four quarterly installments, a preferred dividend of $18.4 million per year. (6) Gross cash in Euros dollarized through a currency swap contract with Abengoa
Asset Type Gross Capacity Offtaker Rating(2)
Renewable Energy
Years Contract
Left
Solana
Mojave
Solaben 2/3
APS A-/A3/BBB+
PG&E BBB/A3/BBB+
Kingdom of Spain BBB/Baa2/BBB+
Palmucho
Quadra 1&2 Sierra Gorda Not rated
Endesa Chile BBB+/Baa2/BBB+
Peru BBB+/A3/BBB+
Palmatir UTE BBB-/Baa2/BBB- (4)
Status
Operation
Operation
Operation
Operation
Operation
Operation
Electric Transmission
Conventional Power
ATS
Economic Stake
100%(1)
100%
100%
100%
100%
100%
Location
USA (Arizona)
USA (California)
Spain
Chile
Chile
Peru
Uruguay
Currency
USD
USD
USD (6)
USD
USD
USD
USD
ACT Pemex BBB+/A3/BBB+ Operation 100% Mexico USD (3)
Preferred Instrument -
N/A; cash account & dividend
subordination Brazil USD
Exchangeable Preferred Equity in ACBH
Operation
(3)
280 MW
280 MW
2x50 MW
81 miles
6 miles
569 miles
50 MW
300 MW
$18.4M p.a.(5)
29
25
23
20
23
29
19
18
-
Cadonal 50 MW UTE BBB-/Baa2/BBB- (4) 20 Uruguay USD Operation 100%
Solacor 1/2 BBB/Baa2/BBB+ 74% Spain
PS 10/20 Spain BBB/Baa2/BBB+ 100%
2x50 MW
31 MW
22
19
Operation
Operation
Kingdom of Spain
Kingdom of Spain
Water Skikda Sonatrach & ADE Not rated Operation 34% Algeria USD (3) 3.5 Mft3/day 20
Honaine Sonatrach & ADE Not rated Operation 26% Algeria USD (3) 7 Mft3/day 23
ATN Peru BBB+/A3/BBB+ Operation 100% Peru USD (3)
362 miles 26
(3)
(3)
Helioenergy 1/2 Spain BBB/Baa2/BBB+ 100% 2x50 MW 23 Operation Kingdom of Spain
70%
Helios 1/2 BBB/Baa2/BBB+ 100% Spain
Solnova 1/3/4 Spain BBB/Baa2/BBB+ 100%
2x50 MW
3x50 MW
22
20
Operation
Operation
Kingdom of Spain
Kingdom of Spain
Kaxu ZAR South Africa BBB-/Baa2/BBB 51% 100 MW 20 Operation Eskom Holdings
USD (6)
USD (6)
USD (6)
USD (6)
USD (6)
Spain BBB/Baa2/BBB+ 100% 2x50 MW 24 Operation Kingdom of Spain USD (6) Solaben 1/6
Las Bambas Not rated Operation ATN 2 100% Peru USD (3)
81 miles 18
26