Hochtief Aktiengesellschaft · XETR:HOT
Hochtief Aktiengesellschaft — Non-Deal Roadshow (November 2008)
57 slides from Hochtief Aktiengesellschaft's roadshow presentation, Nov 11, 2008
Slide 1: Roadshow presentation
Roadshow presentation Latest update: 11 November 2008 Turning Vision into Value.
Slide 2: Table of contents
Table of contents 1. Overview p. 2 2. Americas p. 9 3. Asia Pacific p. 13 4. Concessions p. 17 5. Europe p. 23 6. Real Estate p. 27 7. Services p. 31 8. Outlook p. 35 9. Appendix p. 38 WestEnd HearstDuo, Frankfurt Building, New York Budapest Airport Turning Vision into Value. 2
Slide 3: HOCHTIEF – not a typical cyclical
HOCHTIEF – not a typical cyclical • We cover the whole life cycle of infrastructure, real estate and industrial facilities We develop, finance, invest in, design, construct, maintain and operate projects, provide asset management for third parties • We have a very broad international base 89% of Gro
Slide 4: Broad international base - strong business expansion
Broad international base - strong business expansion Group sales Jan-Jun 08: EUR 9,062m; +15% yoy Europe* America 1,71 1,46 19%1) 3,36 3,76 H1 07 H1 08 41%1) H1 07 H1 08 Asia Pacific 3,59 3,09 40%1) H1 07 H1 08 1) = %-age of total Group sales * = of which EUR 1.02bn sales in Germany in H1 08 (i.e. 1
Slide 5: HOCHTIEF structure: Integrated solutions around the world
HOCHTIEF structure Integrated solutions around the world HOCHTIEF HOCHTIEF HOCHTIEF HOCHTIEF HOCHTIEF HOCHTIEF Americas Asia Pacific Concessions Europe Real Estate Services Turner: Building Leighton Holdings: Developer and - Building Services around Comprehensive construction - Civil operator of pub
Slide 6: Networking at HOCHTIEF
Networking at HOCHTIEF Profit centers adding value through group-wide cooperation1) • PPP: – Construction orders for HOCHTIEF Europe approx. EUR 590m Order value for HOCHTIEF FM: EUR 220m – PPP project pipeline (end 07): approx. EUR 6.6bn investment / contract volume -> approx. EUR 1.7bn potential c
Slide 7: Healthy business performance…
Healthy business performance… Sales Sales (EUR (EUR bn) bn) EBT EBT (EUR m) // EBT (EUR m) EBT margin margin (%) (%) 10.53 11.94 13.65 15.47 16.45 9.06 160 187 337 338 501 292 20 600 16 480 3.0% 12 360 1) 2.5% 2) 2.2% 2.1% 3.2% 8 7.90 240 1.6% 2.3% 4 120 1.5% 182 0 0 3) 3) 2003 2004 2005 2006 2007 H
Slide 8: …growth in volume…another record high order backlog…
…growth in volume…another record high order backlog… New New orders orders (EUR (EUR bn) bn) Order Order backlog backlog (EUR (EUR bn) bn) 14.35 15.59 15.60 20.56 23.51 12.33 16.47 18.72 21.10 25.13 29.89 31.91 25 35 30 20 25 15 20 20.32 27.74 18.82 25.99 10 15 22.33 12.17 12.83 13.05 17.77 10.83 10
Slide 9: Table of contents
Table of contents 1. Overview p. 2 2. Americas p. 9 3. Asia Pacific p. 13 4. Concessions p. 17 5. Europe p. 23 6. Real Estate p. 27 7. Services p. 31 8. Outlook p. 35 9. Appendix p. 38 Hearst Building, New York Budapest Airport Turning Vision into Value. 9
Slide 10: HOCHTIEF Americas (1) Key facts
HOCHTIEF Americas (1) Key facts – good H1 08 result and divisional guidance confirmed Essentials Essentials Financials Financials • Turner: #1general builder in the US as well as in the Jan - Jun (EUR m illio n) H1 08 H1 07 % FY 07 segments: commercial offices, education, healthcare and New orders 3
Slide 11: HOCHTIEF Americas (2) Achievements
HOCHTIEF Americas (2) Achievements – strong positioning in key segments General General Building Building (Turner) (Turner) H1 08 / end June 08 split by markets: • Focus on specific market segments (health, education, etc.) New orders (total USD 5.4bn) Order backlog (total USD 11.1bn) and Green buil
Slide 12: HOCHTIEF Americas (3) Opportunities
HOCHTIEF Americas (3) Opportunities – stable business in robust market segments General General Building Building (Turner) (Turner) Market order value1) (in USD bn, overall growth rate in % p.a.) • Concentration on specific market segments 238.1 225.4 223.4 241.3 364.9 275.6 • Combination of segment
Slide 13: Table of contents
Table of contents 1. Overview p. 2 2. Americas p. 9 3. Asia Pacific p. 13 4. Concessions p. 17 5. Europe p. 23 6. Real Estate p. 27 7. Services p. 31 8. Outlook p. 35 9. Appendix p. 38 Mount Keith Mine, ??? Moorvale Coal Mine, Australia Turning Vision into Value. 13
Slide 14: HOCHTIEF Asia Pacific (1) Key facts
HOCHTIEF Asia Pacific (1) Key facts – another excellent result Essentials Essentials Financials Financials • Leighton market leader in Australia, strong position in Asia & Jan - Jun (EUR m illio n) H1 08 H1 07 % FY 07 Gulf New orders 5 ,792.4 3,216.4 80.1 10,415 .7 • Backlog visibility: 1.9 x work d
Slide 15: HOCHTIEF Asia Pacific (2) Achievements
HOCHTIEF Asia Pacific (2) Achievements – very strong positioning in growing markets Activities Activities by by market market Op. revenue1) Work in hand1) • Australia: Strong position in healthy home market FY07/08, AUD 14.5bn end June 08, AUD 30.3bn • Asia: Exposure increased with new markets India
Slide 16: HOCHTIEF Asia Pacific (3) Opportunities
HOCHTIEF Asia Pacific (3) Opportunities – further growth to be captured Infrastructure Infrastructure construction construction Australia Australia Engineering Construction Industry1), (in AUD bn of 05/06) • Infrastructure: AUD 188bn Australian projects in planning 70 – investments to stay at high l
Slide 17: Table of contents
Table of contents 1. Overview p. 2 2. Americas p. 9 3. Asia Pacific p. 13 4. Concessions p. 17 5. Europe p. 23 6. Real Estate p. 27 7. Services p. 31 8. Outlook p. 35 9. Appendix p. 38 Budapest Airport Times Square Tower New York Turning Vision into Value. 17
Slide 18: HOCHTIEF Concessions (1) Key facts
HOCHTIEF Concessions (1) Key facts – increase in recurring earnings Essentials Essentials Financials* Financials* Jan - Jun (EUR m illio n) H1 08 H1 07 % FY 07 • Leading developer and operator of public infrastructure; manager of concessions portfolio Divisional sales 80.2 108.5 -26.1 198.6 • Major
Slide 19: HOCHTIEF Concessions (2) Achievements Airport
HOCHTIEF Concessions (2) Achievements Airport – strong performance of airport assets Portfolio Value1)1) (end Portfolio Value (end June June 08, 08, forecast, forecast, EUR EUR m) m) • Further strong passenger volume growth of HOCHTIEF airports: H1 08; 43.1 (+4.7%) • Ongoing development of airport a
Slide 20: HOCHTIEF Concessions (3) Opportunities Airports
HOCHTIEF Concessions (3) Opportunities Airports – further portfolio growth and airport developments Passenger Passenger vol. vol. 06-2025E 06-2025E • Expected airport privatizations 2008 / 09: In million, growth rates in % p.a.1) – Midway International Airport, Chicago, USA World +3.9% p.a. – Pulkov
Slide 21: HOCHTIEF Concessions (4) Achievements PPP Solutions
HOCHTIEF Concessions (4) Achievements PPP Solutions – portfolio further enhanced Portfolio Value1)1) (end Portfolio Value (end June June 08, 08, forecast, forecast, EUR EUR m) m) Status: Committed Paid-in NPV NPV Difference due to • New projects: Financial Close Capital Capital as of as of Growth of
Slide 22: HOCHTIEF Concessions (5) Opportunities PPP Solutions
HOCHTIEF Concessions (5) Opportunities PPP Solutions – large bidding pipeline for portfolio expansion Toll Toll roads roads • Germany: Germany market: – In addition to projects on map (ca. EUR 1bn invest. vol.), further A- A-Model A1, Model projects expected, starting 09 Lower Saxony F-Model – Total
Slide 23: Table of contents
Table of contents 1. Overview p. 2 2. Americas p. 9 3. Asia Pacific p. 13 4. Concessions p. 17 5. Europe p. 23 6. Real Estate p. 27 7. Services p. 31 8. Outlook p. 35 9. Appendix p. 38 GAP 15, Düsseldorf Turning Vision into Value. 23
Slide 24: HOCHTIEF Europe (1) Key facts
HOCHTIEF Europe (1) Key facts – firm divisional outlook given Essentials Essentials Financials Financials • Building construction, civil engineering, infrastructure Jan - Jun (EUR m illio n) H1 08 H1 07 % FY 07 projects New orders 1,819.1 1,460.1 24.6 3,176.1 • Regional focus: Germany, Austria, CEE
Slide 25: HOCHTIEF Europe (2) Achievements
HOCHTIEF Europe (2) Achievements – restructuring of business defined and well underway Activities Activities by by region region • Turn-around German building business H1 08 / end June 08 split by region New orders (total EUR 1.8bn) Order backlog (total EUR 4.0bn) – Restructuring of German building
Slide 26: HOCHTIEF Europe (3) Opportunities
HOCHTIEF Europe (3) Opportunities – clear way towards sustainable earnings Selected Selected Europ. Europ. constr. constr. markets markets (vol., (vol., exp. exp. growth) growth) • Strict application of new contract standards (in EUR bn 08E; av. growth 2008-10 in % (in real terms))1) – Fair risk bal
Slide 27: Table of contents
Table of contents 1. Overview p. 2 2. Americas p. 9 3. Asia Pacific p. 13 4. Concessions p. 17 5. Europe p. 23 6. Real Estate p. 27 7. Services p. 31 8. Outlook p. 35 9. Appendix p. 38 Trianon, Prague GAP DLZ Stern 15, Düsseldorf Essen Turning Vision into Value. 27
Slide 28: HOCHTIEF Real Estate (1) Key facts
HOCHTIEF Real Estate (1) Key facts – divisional outlook raised Essentials Essentials Financials Financials Jan - Jun (EUR m illio n) H1 08 H1 07 % FY 07 • Comprehensive services around real estate and real estate portfolios: New orders 25 4.1 5 19.0 -5 1.0 965 .0 – Real estate trader developer Order
Slide 29: HOCHTIEF Real Estate (2) Achievements
HOCHTIEF Real Estate (2) Achievements – reliable performance and increasing international coverage Projects Projects under under Construction Construction Split by region / by segment: • Real estate development (# 29, volume end Jun 08: EUR 1.4bn o Increasingly internationalizing: first project in Z
Slide 30: HOCHTIEF Real Estate (3) Opportunities
HOCHTIEF Real Estate (3) Opportunities – profiting from strong positioning and growth initiatives Investment Investment market volume1)1) market volume • Continued growth based on 1,000 Hamburg 1,600 413 St. Petersburg – Proven track record in upper market segments 531 Berlin 3,092 Q1 08 – Continuou
Slide 31: Table of contents
Table of contents 1. Overview p. 2 2. Americas p. 9 3. Asia Pacific p. 13 4. Concessions p. 17 5. Europe p. 23 6. Real Estate p. 27 7. Services p. 31 8. Outlook p. 35 9. Appendix p. 38 WestEnd Duo, Frankfurt Turning Vision into Value. 31
Slide 32: HOCHTIEF Services (1) Key facts
HOCHTIEF Services (1) Key facts – stable H1 08 earnings Essentials Essentials Financials Financials Jan - Jun (EUR m illio n) H1 08 H1 07 % FY 07 • Comprehensive Facility Management services for real estate, industrial facilities and infrastructure New orders 412.1 230.0 79.2 892.6 • Vattenfall Ener
Slide 33: HOCHTIEF Services (2) Achievements
HOCHTIEF Services (2) Achievements – continued business expansion Divisional Divisional sales sales (H1 (H1 08: 08: EUR EUR 330m) 330m) • Integration of Vattenfall Energy Contracting successfully By region: by service type: completed 9% 1% • Selected recent project win example: 20-year PPP Fürst- 14
Slide 34: HOCHTIEF Services (3) Opportunities
HOCHTIEF Services (3) Opportunities – poised for further growth Facility Facility Management Management Market volume and expected growth (EUR bn; % change yoy)1) • Market: Continuing trend of outsourcing non-core business to external FM providers 57.0 60.0 63.3 67.1 71.3 80,0 +6.3% • Focus on techn
Slide 35: Table of contents
Table of contents 1. Overview p. 2 2. Americas p. 9 3. Asia Pacific p. 13 4. Concessions p. 17 5. Europe p. 23 6. Real Estate p. 27 7. Services p. 31 8. Outlook p. 35 9. Appendix p. 38 Vespucio Norte Express, Chile Turning Vision into Value. 35
Slide 36: …due to this development we raise our guidance for 2008
…due to this development we raise our guidance for 2008 2007 2008E EUR bn No longer under but on high previous year's New orders 23.5 level Order EUR bn No longer under but on high previous year's backlog 29.9 level EUR bn Sales Above prior-year level 16.5 EUR m EBT No longer on but above high level
Slide 37: …HOCHTIEF is about…realizing potential: Management priorities
…HOCHTIEF is about…realizing potential Management priorities • Restructuring German building business – Streamline business with focus on margin growth – Restructuring to be finalized in 2008 – Strict application of new contract requirements • Expansion of market segments – Concessions & operations
Slide 38: Table of contents
Table of contents 1. Overview p. 2 2. Americas p. 9 3. Asia Pacific p. 13 4. Concessions p. 17 5. Europe p. 23 6. Real Estate p. 27 7. Services p. 31 8. Outlook p. 35 9. Appendix p. 38 Düsseldorf Airport Turning Vision into Value. 38
Slide 39: Special topic: sustainable solutions – sustainable success
Special topic: sustainable solutions – sustainable success We are on the right track • HOCHTIEF promotes certification for sustainability in construction – We set standards both in Germany and internationally with innovative, sustainable buildings – We have called for the establishment of a binding
Slide 40: HOCHTIEF structure: Integrated solutions around the world
HOCHTIEF structure Integrated solutions around the world HOCHTIEF HOCHTIEF HOCHTIEF HOCHTIEF HOCHTIEF HOCHTIEF Americas Asia Pacific Concessions Europe Real Estate Services Building (Turner) and Civil engin., contract mining, Leading developer & operator Bldg. construction, civil / Comprehensive ser
Slide 41: Consolidated Group P&L…
Consolidated Group P&L… • Sales: – Continuously robust demand in foreign markets and in consequently expanded business fields – 89% of total is non-domestic • Other operating income: – Sale of the Leighton Gulf activities to Al Habtoor Leighton – Payment of contingent purchase price for DUS airport
Slide 42: …consolidated Group balance sheet (assets)…
…consolidated Group balance sheet (assets)… Non-current assets: • At equity and other financial assets: expansion of Leighton’s shareholding portfolio • Other receivables: increase in pension fund balances due to change in discount rate Current assets: • Trade receivables: Increase due to higher ope
Slide 43: …consolidated Group balance sheet (equity and liabilities)…
…consolidated Group balance sheet (equity and liabilities)… Shareholders’ equity: • Earnings after taxes: +EUR 189m • Dividend payments: -EUR 146m • Equity ratio: 25.8% (end 07: 28.2%) Non-current liabilities • Financial liabilities: mainly borrowings from banks to fund Group’s business activities;
Slide 44: …financial basis…
…financial basis… (EUR m) • Gearing ratio (net debt / equity) 3.000 – 1.4% (end H1 08) 2.500 • Basic long-term cash and guarantee facilities 2.000 2,413 – EUR 2.0bn syndicated guarantee facility (successfully refinanced in 2,431 2,453 2,290 1.500 07) 1,967 – USD 4.8bn Turner/Flatiron bonding facilit
Slide 45: …consolidated Group cash flow…
…consolidated Group cash flow… 2,000 H1 07 H1 08 +418 +114 -52 -574 1,500 +311 +133 -450 +5 • 07: Positive 1,506 overall cash flow from operating Mio. EUR business; figures 1,403 nevertheless • 07: Acquisition of 1,199 1,000 65,4 BUD airport; stake negatively affected by loss situation at increase i
Slide 46: …we share the success with our shareholders
…we share the success with our shareholders EUR EUR m 1.40 100 1.30 90 1.20 1.10 80 1.00 70 0.90 0.80 0.75 60 0.65 50 0.60 40 0.40 30 20 0.20 Dividend per share (EUR) 10 Total dividend (EUR m) 0.00 0 1) 91 2003 2004 2005 2006 2007 • Average increase of approx. 19% p.a. over the last five years • Div
Slide 47: Value created RONA
Value created RONA (EUR m) FY 07 FY 06 EBITA 517,4 327,3 Interest income1) 94,3 76,4 Return 611,7 403,7 Shareholders' equity (incl. minorities) 3.000,8 2.345,7 • Return: EUR 611.7m (+ 52%) + Pension provisions 29,0 33,0 • Net assets: EUR 4,107.2m (+23%) + Financial liabilities 1.966,8 1.044,1 • Valu
Slide 48: Value added… Return on net assets (RONA)
Value added… Return on net assets (RONA) HTA HTA WACC WACC // RONA RONA HTD HTD WACC WACC // RONA RONA HTAM HTAM WACC WACC // RONA RONA 15.0% 25.0% 23.6% 25.0% 22.1% 21.8% 13.9% 20.0% 20.0% 17.2% 9.6% 9.6% 9.6% 9.6% 15.9% 10.0% 14.4% 15.0% 15.0% 9.5% 8.2% 14.1% 14.1% 14.1% 14.1% 9.8% 7.7% 10.0% 10.0
Slide 49: HOCHTIEF Concessions: Detailed financial figures
HOCHTIEF Concessions: Detailed financial figures Turning Vision into Value. 49
Slide 50: HOCHTIEF Concessions: AirPort portfolio
HOCHTIEF Concessions: AirPort portfolio Athens Int‘l Budapest Düsseldorf Hamburg Sydney Tirana Int‘l Airport Airport Int‘l Airport Airport Airport 2007 HTA share 26.7% 37.25% 20% 34.8% 8.13% 47% HTAC share 13.3% - 10% 14.2% 5.15% - Total private share 45.0% 75%1) 50% 49% 100% 100% PAX in m 16.5 8.6
Slide 51: HOCHTIEF Concessions: PPP Solutions Asset portfolio
HOCHTIEF Concessions: PPP Solutions Asset portfolio, 30 June 2008 Toll Roads/Transportation (EUR m) Project Name Project value HT-stake HT capital required HT capital provided Project data Herrentunnel, Germany 179 50.0 % 11,0 11,0 2 km length Vespucio Norte Express, Chile 520 33.0 % 65,3 65,3 30 km
Slide 52: PPP Solutions: Principle of Life cycle Valuation
HOCHTIEF Concessions: PPP Solutions Principle of Life cycle Valuation accumulated Cash flows monetary (nominal) units Value of Equity (DCF calculation) Cash flows (nominal) Start of operation t Construction Ramp-up Growth Maturity Risk-premium phase (%) 3 2 + Risk-premium type (%)1) 2-4 2-4 2-4 2-4
Slide 53: PPP Solutions: Projects' life cycle status
HOCHTIEF Concessions: PPP Solutions Projects’ life cycle status accumulated Cash flows monetary (nominal) units Value of Equity (DCF calculation) Cash flows (nominal) Start of operation t as of Jun 08 Construction Ramp-up Growth Maturity • Tunnel San Cristobal • Herrentunnel Lübeck • Vienna Northeas
Slide 54: PPP Solutions: Project pipeline
HOCHTIEF Concessions: PPP Solutions Project pipeline Preferred bidder Tender Phase no. of Contract/investment no. of Contract/investment projects volume1) projects volume1) Public buildings / 1 ca. 260 14 ca. 2,500 social infrastructure Toll roads 1 ca. 450 3 ca. 5,500 Total PPP Solutions pipeline v
Slide 55: Shareholder structure
Shareholder structure Regional distribution (as of March 08) 1) 3.3 3.0 3.9 3) 25.08% 27.8 15.4 North America Spain / Portugal Germany UK / Ireland Scandinavia France Others 74.92% 21.3 ACS 2) 25.3 Freefloat 1) Adjusted for Voting Rights announcements communicated until October 08 2) ACS ACTIVIDADES
Slide 56: Disclaimer
Disclaimer “Certain of the statements contained herein may be statements of future expectations and other forward-looking statements that are based on management’s current views and assumptions and involve known and unknown risks and uncertainties that could cause actual results, performance or even
Slide 57: Financial calendar and IR contact
Financial calendar and IR contact 27/28 Oct 08 Capital Markets Day: HOCHTIEF Real estate 14 Nov 08 Nine month results 2008 and Conference Call with Analysts and Investors 25 Mar 09 Full year results 2008 and Analysts’ and Investors’ Conference 07 May 09 General Shareholders’ Meeting 14 May 09 Q1 res
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