Cox ABG Group (COXG) Corporate Presentation summary

Business overview and strategy

• Vertically and horizontally integrated utility focused on water and energy, with a full value chain presence in desalination, purification, treatment, and clean energy generation.

• Over 55 years of experience, with a strong international footprint in MENA, Americas, and South Africa, and a diversified technology base in both water and energy.

• Strategy centers on synergistic business divisions: water (long-term concessions), transmission (electric infrastructure), clean energy generation, and engineering/O&M services.

• Build-to-own approach in Americas, mixed asset rotation in EMEA, and a focus on value-added engineering for higher margins.

• Management team combines operational and financial expertise, leveraging Abengoa’s industrial capabilities and Cox Energy’s solar expertise.

Market position and growth opportunities

• Ranked among the top global players in desalination, with 3 out of the 10 largest plants engineered and over 253 project certificates.

• Global desalination market expected to double by 2030 (9.5% CAGR), and water treatment market to triple (14.8% CAGR), supporting strong sector tailwinds.

• Identified €22bn in water and transmission concession opportunities and €70bn in services, with a focus on high-growth regions like Morocco, Middle East, and Latam.

• Recent progress includes new water concessions in Chile and Morocco, two transmission line concessions in Brazil, and a new asset in South Africa.

• Services contract backlog increased to €1.2–1.6bn in mid-2024, with attractive margins and further growth expected.

Financial performance and capital structure

• 2023 revenues of €581m and H1 2024 revenues of €306m, with EBITDA of €103m (18% margin) in 2023 and €81m (27% margin) in H1 2024.

• Over 90% of EBITDA comes from assets and concessions, with strong cash flow conversion (36% in 2023, 63% excluding one-offs).

• Net debt/EBITDA at 1.8x in 2023, with a target of less than 1.0x (with recourse); project finance comprises 78% of gross debt.

• Water concessions deliver €160k EBITDA per €1m CAPEX, while energy generation yields €100k EBITDA per €1m CAPEX.

• No dividend is envisaged in the medium term, with cash generation focused on supporting growth and maintaining a disciplined capital structure.