The recent amendment to the Spanish Securities Market Law, in transposition of Directive (EU) 2017/828 as regards to the encouragement of long-term shareholder engagement, has resulted in the suppression of the obligation to publish quarterly financial statements for public listed companies. Consistent with this amendment and in line with ACCIONA, S.A.'s drive to promote corporate long-termism while maintaining fluid and transparent communication with its stakeholders, ACCIONA, S.A. has decided to publish a Trading Statement instead of quarterly results. This Trading Statement aims at providing the market with an update on the main trends and high-level operational data of the corresponding period.
This Trading Statement has been prepared by ACCIONA, S.A. ("ACCIONA" or the "Company" and, together with its subsidiaries, the "ACCIONA Group") with the purpose of providing the market with an update on the main trends and high-leveloperational data corresponding to the 9M 2021 period. Therefore, it cannot be disclosed or made public by any person or entity for any other purpose without the prior written consent of the Company. The Company does not assume any liability for the content of this document if used for any purposes different from the one outlined above.
The Company does not assume any liability for the content of this document if used for different purposes thereof.
The information and any opinions or statements made in this document do not purport to be comprehensive and have not been verified by independent third parties, nor audited and, in some cases, are based on management information and estimates and are subject to change; therefore, no express or implied warranty is made as to the impartiality, accuracy, completeness or correctness of the information or the opinions or statements expressed herein. Certain financial and statistical information contained in this document may be subject to rounding adjustments.
Neither the Company or its subsidiaries, nor any entity within the ACCIONA Group or its subsidiaries, nor any of its advisors or representatives assume liability of any kind, whether for negligence or any other reason, for any damage or loss arising from any use of this document or its contents.
The information contained in this document on the price at which securities issued by ACCIONA Group have been bought or sold, or on the performance of those securities, may not and should not be used to predict the future performance of securities issued by ACCIONA Group.
Neither this document nor any part thereof constitutes, and may not be relied on in any manner as, legal, tax, investment, accounting, regulatory or any other type of advice on, about or in relation to the Company, nor may it be used or relied upon in connection with, form the basis of, or for incorporation into or construction of, any contract, agreement or investment decision.
This document does not constitute an offer or invitation to purchase or subscribe shares, in accordance with the provisions of the Spanish Securities Market Law ((approved by the Royal Decree 4/2015, 23rd October), and its implementing regulations.
In addition, this document does not constitute an offer of purchase, sale or exchange, nor a request for an offer of purchase, sale or exchange of securities, nor a solicitation for any vote or approval in any other jurisdiction.
Particularly, this document does not constitute an offer to purchase, sell or exchange, or the solicitation of an offer to purchase, sell or exchange any securities.
This document and the information contained herein are not a solicitation of an offer to buy securities or an offer for the sale of securities in the United States (within the meaning of Regulation S under the Securities Act). The ordinary shares of ACCIONA have not been, and will not be, registered under the Securities Act and may not be offered or sold in the United States absent registration under the Securities Act, except pursuant to an exemption from, or in the case of a transaction not subject to, the registration requirements of the Securities Act and in compliance with the relevant state securities laws. There will be no public offering of the ordinary shares in the United States.
This document contains forward-looking information and statements about ACCIONA, including financial projections and estimates and their underlying assumptions, statements regarding plans, objectives and expectations with respect to future operations, capital expenditures, synergies, products and services, and statements regarding future performance. Forward-looking statements are statements that are not historical facts and are generally identified by the words "expects", "anticipates", "believes", "intends", "estimates", "pipeline" and similar expressions.
Although ACCIONA believes that the expectations reflected in such forward-looking statements are reasonable, investors and holders of ACCIONA shares are cautioned that forward-looking information and statements are subject to various risks and uncertainties, many of which are difficult to predict and are generally beyond the control of ACCIONA, which could cause actual results and developments to differ materially from those expressed in, implied, or projected by, the forward-looking information and statements. These risks and uncertainties include those discussed in the documents filed by ACCIONA with the Comisión Nacional del Mercado de Valores, which are accessible to the public.
Forward-looking statements are not guarantees of future performance. They have not been reviewed by ACCIONA's auditors. You are cautioned not to place undue reliance on the forward-looking statements, which contain information only up to the date on which they were made. All subsequent oral or written forward-looking statements attributable to ACCIONA, the ACCIONA Group, or any of its respective members, directors, officers, employees or any persons acting on its behalf are expressly qualified in their entirety by the cautionary statement above. All forward-looking statements included herein are based on information available to ACCIONA on the date hereof. Except as required by applicable law, ACCIONA does not undertake any obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
The document contains certain non-IFRS financial measures of the Company derived from (or based on) its accounting records, and which it regards as alternative performance measures (APMs) for the purposes of Commission Delegated Regulation (EU) 2019/979 of March 14, 2019 and as defined in the European Securities and Market Authority Guidelines on Alternative Performance Measures dated October 5, 2015. This document includes the list and definition of the Alternative Performance Measures (APMs). Other companies may calculate such financial information differently or may use such measures for different purposes than the Company does, limiting the usefulness of such measures as comparative measures. These measures should not be considered as an alternative to measures derived in accordance with IFRS, have limited use as analytical tools, should not be considered in isolation and may not be indicative of the Company's results of operations. Recipients should not place undue reliance on this information. The financial information included herein has not been reviewed for accuracy or completeness and, as such, should not be relied upon.
The definition and classification of the pipeline of the ACCIONA Group's Energy division, headed by Corporación Acciona Energías Renovables, S.A. ("ACCIONA Energía"), which comprises both secured and under construction projects, highly visible projects and advanced development projects, as well as other additional opportunities, may not necessarily be the same as that used by other companies engaged in similar businesses. As a result, the expected capacity of ACCIONA Energía's pipeline may not be comparable to the expected capacity of the pipeline reported by such other companies. In addition, given the dynamic nature of the pipeline, ACCIONA Energía's pipeline is subject to change without notice and certain projects classified under a certain pipeline category as identified above could be reclassified under another pipeline category or could cease to be pursued in the event that unexpected events, which may be beyond the ACCIONA Energía's control, occur.
K E Y H I G H L I G H T S
- The most significant development for the ACCIONA Group during the first nine months of 2021 has been the IPO of ACIONA Energía, which represents a key strategic milestone in the Company's history. ACCIONA has sold a 17.3% stake of ACCIONA Energía, at a valuation of €8.8 billion or €26.73 per share. This transaction generated €1.5 billion gross proceeds for ACCIONA, resulting in a considerable reduction of the Group financial leverage, thus increasing its ability to invest and enhance its growth potential, not only in energy, but in all its sustainable infrastructure activities.
- The operating and financial performance of the ACCIONA Group in Q3 2021 has continued with the overall positive trends seen in H1 2021 despite the ongoing effects of the COVID- 19 pandemic, with significant improvements relative to the heavily hit 9M 2020 results.
- ACCIONA Energía operating performance during the first nine months of the year remains solid, despite generally lower than expected production, and is consistent with the full year outlook provided at its H1 2021 results presentation. Trends and drivers for the period remain broadly unchanged relative to the first half of the year.
- Total Installed capacity at 9M 2021 reached 11,203MW (9,139MW consolidated), versus 10,694MW in FY 2020, having added 508MW YTD. In terms of production, total output as of the 9M 2021 stage increased by 3.2% versus 9M 2020 (consolidated production increased by 4.4% yoy), driven by the new capacity both in wind (mostly in Chile) and in PV (mainly in Mexico).
- On the financing front, in its first three months as an independent listed company, ACCIONA Energía has delivered according to plan. In August, it obtained public investment grade ratings from Fitch and DBRS and in September, ACCIONA Energía issued its first corporate green bond, for a total amount of €500 million and with a 0.375% coupon.
- In Infrastructure, activity continues to show strong recovery relative to the COVID-19 depressed 2020 levels, even accelerating their growth rates versus the first half of the year. Infrastructure backlog (which includes construction, water and other infrastructure activities) reached a new record-high, with €17,830 million orderbook as of 30 September 2021, +19.8% versus 31 December 2020. In addition, the Group has a portfolio of concessions with embedded future revenues of €8,124 million, taking the total backlog to €25,954 million. Out of this figure, €13,062 million correspond to project backlog, which increased by 7.7% compared to 31 December 2020. This provides high visibility to the construction & water businesses going forward.
- In Property Development, the stock of pre-sales as of 30 September 2021 went up to 1,602 units, equivalent to €466 million sales, boosted by the sale to Greystar of 455 Built- to-Rent (BtR) units in Méndez-Álvaro (Madrid). The current 1,602 stock of pre-sales represents 70% of the total units under commercialization. Investments in property development inventories during the first nine months of 2021 reached €219 million, versus €42 million in the same period of 2020.
- Regarding Bestinver, Assets Under Management (AUM) reached €7,202 million at 9M 2021, a net increase of €831 million compared to 31 December 2020. 82% of the AUM are invested in equities. The most important event has been the successful launch of the Bestinver Infra Fund, with €125 million AUM as of 30 September 2021. Bestinver Securities also had a positive performance in the period.
- With regards to Investments, the net investment cash-flow during the first nine months of the year amounted to €1.4 billion. ACCIONA Energía has invested just over €750 million, consistent with the full year expectation of ~€1.0-1.1 billion including the net movement in deferred payments and the cash outlay for an additional 8.33% stake in ACCIONA Energía Internacional from KKR. Out of the €650 million remaining capex carried out by the rest of the businesses, it is important to highlight:
- €219m investments in property development inventories
- €34 million spent in the acquisition of Silence, the electric motorbike manufacturer
- In addition, in July 2021, Nordex carried out a €584 million capital increase and ACCIONA underwrote 100% of its pre-emptive acquisition rights through the conversion into shares of a c.€200 million loan. As a result, ACCIONA maintains a 33.63% stake in Nordex.
- In October 8, 2021 DBRS confirmed ACCIONA's BBB credit rating and removed it from Under Review with Developing Implications, where it was placed on 1 March 2021 following the announcement that the Group had initiated the process for an IPO of its subsidiary ACCIONA Energía.
- In terms of ESG, ACCIONA has obtained a best-in-class ESG Profile and is positioned as leader within its sector by ISS-ESG, S&P Ratings and Vigeo Eiris, in which ACCIONA ranks within the top 3% of all companies evaluated worldwide. Early this year, ACCIONA became the first Spanish electric utility to join "The Climate Pledge" to reach net-zero carbon emissions by 2040, a decade earlier than the Paris Climate Agreement's goal. In terms of sustainable finance, ACCIONA signed an €800 million syndicated loan in May 2021, with an innovative ESG "double impact" scheme and ACCIONA Energía launched its first green bond in September. It links reductions in the cost to the achievement of corporate sustainability goals and -for the first time in an instrument of this type- to generating a positive local impact. The Company, as a partner of the Red River Valley Alliance (RRVA) consortium, has successfully put together the first green finance initiative in the US specifically designed for climate change adaptation with the construction of the Fargo-Moorhead flood channel. Furthermore, the Company is making good progress in rolling out its Sustainability Master Plan 2025 during the third quarter of the year.
- In the light of the operating performance of the Group during the first nine months of the year, ACCIONA reiterates its outlook for 2021, which anticipates Group EBITDA growth of at least 15% versus 2020. Regarding the financial position, the Group expects to finish the year with a Net Debt/EBITDA ratio below 4x. However, ACCIONA notes that the Spanish electricity system is at present going through a period of high regulatory instability that could bear upon its results for the current financial year as well as the next in terms of profitability and cash generation levels.
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Acciona SA published this content on 04 November 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 04 November 2021 18:25:09 UTC.