HOCHTIEF Aktiengesellschaft · XETR:HOT
HOCHTIEF Aktiengesellschaft — Investor Day (December 2007)
101 slides from HOCHTIEF Aktiengesellschaft's investor day presentation, Dec 4, 2007
Slide 1: HOCHTIEF Capital Markets Day: Construction Services Americas: North America
HOCHTIEF Capital Markets Day Construction Services Americas: North America New York, 4 December 2007 TURNING VISION INTO VALUE.
Slide 2: Dr. Herbert Lütkestratkötter, CEO
Dr. Herbert Lütkestratkötter CEO HOCHTIEF Aktiengesellschaft TURNING VISION INTO VALUE.
Slide 3: Agenda
Agenda 08:30 – 08:35 Welcome from Dr Herbert Lütkestratkötter, CEO HOCHTIEF 08:35 – 08:45 Brief welcome from the Hearst Corporation 08:45 – 09:30 Turner: Overview and Market Approach Peter Davoren, CEO Turner 9:30 – 10:15 Turner: Activities and Operations Nick Makes, Senior Vice President Turner 10:
Slide 4: HOCHTIEF Construction Services Americas General overview
HOCHTIEF Construction Services Americas General overview HOCHTIEF Construction Services Americas HOCHTIEF USA HOCHTIEF Participacoes Turner Construction Company HOCHTIEF do Brasil Turner Surety and Insurance Brokerage HOCHTIEF FM do Brasil DCN USA Inc. (Excend) Flatiron Construction Corporation* *=
Slide 5: Turner Overview and Market Approach
Turner Overview and Market Approach Introduction and Background Organizational Structure Market Overview Peter Davoren President and CEO Turner Construction Company 5 Turner: A HOCHTIEF Company
Slide 6: Turner Background
Turner Background ■ Founded 1902 Turner Values ■ 2006 Sales $10.3 billion Highest Ethical Standards ■ Geographic and Segment INTEGRITY Diversification People Oriented ■ 6,100 Employees ■ 1,700 Active Projects TEAMWORK ■ More than 60% Repeat Client Focused Clients based on new COMMITMENT orders ■ Lea
Slide 7: Notable Historic Projects
Notable Historic Projects J.B. King & Company, Cooper’s Shop NY City Subway Stairs Staten Island, NY - 1902 New York, NY - 1902 - 1904 United Nations Madison Square Garden New York, NY - 1949 New York, NY – 1965 7 Turner: A HOCHTIEF Company
Slide 8: Recent Notable Projects
Recent Notable Projects Winter Garden Reconstruction Taipei 101 New York, NY - 2002 Taipei, Taiwan -- 2004 WW II Memorial Lincoln Center Washington, DC -- 2004 New York, NY – 1965 & 2007 8 Turner: A HOCHTIEF Company
Slide 9: Turner Construction Management
Turner Construction “Management” Risk Conscious Approach Lump Sum Contracting Method Negotiated Turner Predominantly Negotiated Self Perform Delivery Method Subcontract Turner Minimal Self Perform 9 Turner: A HOCHTIEF Company
Slide 10: Turner Construction Company
Turner Construction Company Peter Davoren President & CEO Stu Robinson John DiCiurcio Ken Leach Rod Michalka Pat Di Filippo Bill Brennan Nick Billotti Wilfried Eckert EVP EVP EVP EVP EVP EVP EVP EVP, CFO Strategic Resources Chicago Atlanta Nashville New Jersey Washington International Controlling Mi
Slide 11: Office Network and Segment Groups
Office Network and Segment Groups Pharmaceutical Green Building Education Pharmaceutical Green Building Justice Sports Transportation Healthcare Local Turner Office Local Turner Office and Market Segment National Office ■ National Office Network Provides Local Market Knowledge ■ National Resources ■
Slide 12: Competitor Market Position
Competitor Market Position Mid- North South Northern Northeast Atlantic Southeast Central Central Northwest California Southwest Skanska Bovis Clark Gilbane Balfour Beatty DPR Strong Market Position Weak Market Position 12 Turner: A HOCHTIEF Company
Slide 13: U.S. Construction Market
U.S. Construction Market $ Billions Turner Market Non-Building/Civil $131.3 Non-Residential Building $230.1 Residential $265.4 Total Market Size 2007 $626.8 Billion Source: McGraw- McGraw-Hill Construction 13 Turner: A HOCHTIEF Company
Slide 14: Turner Available Market by Segment
Turner Available Market by Segment $ Billions $264.9 $272.3 2.8% $251.5 5.3% $236.9 $237.3 6.0% ■ Overall Market Growth $250 $228.8 3.5% $232.0 2.3% 2007 – 2012 15.0% 14.1% -2.1% ■ Slowdown Projected for 2008 $200 ■ Commercial Remains Largest Single Market. $150 Projected ‘07 – ‘12 to grow 6.0% $100
Slide 15: Turner Rankings
Turner Rankings 2006 2006 Available Category Ranking* Market** Commercial 1 $72.3 Healthcare 1 $21.9 Justice 1 $7.2 Education 2 $45.5 Airports 2 $2.4 Sports 2 ***$15.4 * Engineering News- News-Record Ranking of US Construction Managers ** McGraw-Hill Available Market; $ Billions *** Includes Amuseme
Slide 16: Market Conditions
Market Conditions ■ Commercial Market U.S. Office Vacancy Rates Low Vacancy Rates Source: CB Richard Ellis 25 Suburban Government Demand Strong 20 Corporate Build-to-Suit Strong 15 Military Base Realignment 10 Downtown ■ Healthcare 5 Aging Population 0 86 88 90 92 94 96 98 00 02 04 06 08 Outdated Fa
Slide 17: Market Conditions
Market Conditions Industry Issue Turner Response Market Activity Find the “Good Work” Commodity Price Escalation Early Manufacturer and Subcontractor Pricing Turner Logistics Technology Building Information Modeling ViCon* Sustainability/Green Building Leading Builder of Green Buildings Staff Traini
Slide 18: Growing Market, Slowing Graduations
Growing Market 1993 – 2007 Slowing Graduations Building Market +169% $250 Market Graduates $ billion 108,000 8.5% Engineering and $200 Architecture Graduates 103,000 98,000 Sources $150 US Non-residential 93,000 Building Market $100 McGraw-Hill 88,000 Construction $50 83,000 US Department of Educati
Slide 19: Turner Activities and Operations
Turner Activities and Operations Portfolio Overview Project Delivery Method Business Development Process Risk Management Nick Makes Senior Vice President Portfolio Manager Turner Construction Company 19 Turner: A HOCHTIEF Company
Slide 20: Sales – New Orders by Market Segment
Sales – New Orders By Market Segment Thru Third Quarter 2007 $7.6 Billion Transport ation/ Misc. Pharmaceutical/ 2% ■ Diversity Provides Manufacturing Healthcare Stability 4% 28% ■ National Market Segment Groups Provide Local Sports/ Ent ert ainment 5% Support ■ Renovation Comprises Residential/ Hot
Slide 21: Project Portfolio 2006
Project Portfolio 2006 Active Projects Interior Fit-out/ Construction Special Projects Overall No. Average No. Average No. Average Projects Volume* Projects Volume* Projects Volume* 835 $28.2 904 $2.6 1,739 $14.9 Average Duration Average Duration 20 months 3 months During 2006 Turner had 70 active p
Slide 22: Commercial Projects
Commercial Projects Burj Dubai Hearst Headquarters 1180 Peachtree Dubai, UAE - 2009 New York, NY - 2006 Atlanta, GA - 2005 Genzyme Center Tallest Building in the First Diagrid in the U.S. Hines, Repeat Client Boston, MA - 2003 World LEED Gold LEED Gold LEED Platinum 22 Turner: A HOCHTIEF Company
Slide 23: Education Projects
Education Projects Harvard University, First Science Robert H. Lurie Medical Research Center of Allston, MA - 2012 Northwestern University 1,000,000 sf Mixed Use “Satellite” Campus Chicago, IL - 2005, Repeat Client Yale University School of Forestry UCSD North Campus Housing New Haven, CT - 2008 La
Slide 24: Healthcare Projects
Healthcare Projects Eisenhower Medical Center – Annenberg Pavilion Children’s Hospital of Philadelphia Phase II Rancho Mirage, CA - 2010 Philadelphia, PA - 2009 Repeat Client Client since 1930’s Yale New Haven Hospital University of Kentucky Albert B. Chandler Hospital New Haven, CT - 2010 Lexington
Slide 25: Mission Critical Projects
Mission Critical Projects Cleveland / Cincinnati Data Centers MSN Data Centers Ohio - 2008 Quincy, WA and San Antonio, TX – 2009 Serving Same Client in Multiple Locations National program with MSN UBS Trading Floor CheckFree Data Processing Center Stamford, CT - 2007 Norcross, GA -2007 Part of a $58
Slide 26: Research & Development Projects
Research & Development Projects Centers For Disease Control Memorial Sloan Kettering Mortimer B. Zuckerman Multiple Lab Projects Cancer Research Facility Atlanta, GA – 2006, Repeat Client New York, NY – 2006, Repeat Client Boston University Medical Center National Emerging Howard Hughes Medical Inst
Slide 27: Government Projects
Government Projects Aberdeen Center of Excellence Proving Ground Army Human Resources Campus Aberdeen, MD - 2011 Ft. Knox, Kentucky - 2010 BRAC Program 880,000 sf Complex on 100 Acre Site Fort Belvoir Community Hospital TSA National Baggage Screening Program Fort Belvoir, Belvoir, VA – 2011 447 Airp
Slide 28: Hotel / Residential Projects
Hotel / Residential Projects The Breakers Hotel Hard Rock Hotel Palm Beach, FL - 1926 San Diego, CA - 2007 412 Room Hotel The Solaire Great Wolf Lodge Battery Park City, NY - 2005 Grapevine, TX; Cincinnati, OH - 2007 1st Green Residential High Rise in US, Repeat Client 471,000 sf Resort, Repeat Clie
Slide 29: Sports Projects
Sports Projects Yankee Stadium Princeton University, Palmer Stadium Bronx, NY - 2009 Princeton, NJ - 1998 Repeat Client Repeat Client Orlando Events Center Seattle Seahawks Stadium Orlando, FL - 2009 Seattle, WA - 2002 “Agency” Construction Management 68,000 Seat Stadium 29 Turner: A HOCHTIEF Compan
Slide 30: Turner Negotiated Approach to Construction Management At Risk
Turner Negotiated Approach to Construction Management At Risk Subcontractor Design Commitment to Price Bid and Award Turner Commitment to Price GMP* Build Preconstruction Construction Management Cost Plus “At Risk” ■ Comprehensive Pre-construction Period ■ Scope, Budget and Schedule Developed in a T
Slide 31: Sales – New Orders by Contract Type
Sales – New Orders By Contract Type Thru Third Quarter 2007 $7.6 Billion Consult ing/ Const ruct ion Management " Agency" 2% Cost Plus 10% Const ruct ion Management At Risk 76% Lump Sum 12% 31 Turner: A HOCHTIEF Company
Slide 32: Risk Management: Finding the Good Work
Risk Management Finding the “Good Work” Available Market The “Good Work” Qualifications-Based Selection Client with a Defined Vision Reasonable Costs & Fees Complex Jobs Turner Target Market “Filter” Reasonable Contract Terms Fair Risk Allocation Fully Reimburse Preconstruction Values Turner Service
Slide 33: Risk Management: Proposal Authorization Process
Risk Management Proposal Authorization Process Business Unit Contract Proposal Identify Opportunities Prepare Review Review Submitted to Relationship Building Proposal and Committee Client Approvals Review & Approval ■ Key Staff Within Business Unit Are Involved General Manager Manager of Business D
Slide 34: Risk Management: Contract Authorization Process
Risk Management Contract Authorization Process Prepare Contract Contract Construction “Contract Authority” Review Preparation Budget Construction Business Unit Committee Negotiation Development Leadership Approvals Review & Approval Benefits of Contract Review Committee ■ Portfolio Management Balanc
Slide 35: Risk Management: Turner Building Cost Index
Risk Management Turner Building Cost Index ■ Turner’s Building Cost Index Has Been Published for 70 years ■ Forecasts Construction Price for the Upcoming Quarter ■ The Cost Index is determined by several factors considered on a nationwide basis—labor rates and productivity, material prices and the c
Slide 36: Turner Logistics: Traditional Supply Chain
Turner Logistics Traditional Supply Chain A/E Manufacturing 1 Distributor/Rep SUB 1 Manufacturing 2 Distributor/Rep SUB 2 TURNER CLIENT Manufacturing 3 Distributor/Rep SUB 3 Manufacturing 4 Distributor/Rep SUB 4 Process does not Optimize Procurement Results 36 Turner: A HOCHTIEF Company
Slide 37: Turner Logistics: Transforming the Supply Chain
Turner Logistics Transforming the Traditional Supply Chain Direct Manufacturer Relationships A/E Manufacturer 1 Manufacturer 2 TURNER TURNER CLIENT LOGISTICS Manufacturer 3 Subcontractors Manufacturer 4 37 Turner: A HOCHTIEF Company
Slide 38: Turner Logistics
Turner Logistics ■ Turner’s National Buying Power Enables Master Agreements with Manufacturers Construction ■ Turner Transforms the Supply Expertise Chain to Reduce Mark-ups ■ Benefit to Client Better Pricing Turner Direct Interface with Logistics Manufacturer Equipment and ■ Benefit to Manufacturer
Slide 39: Risk Management: Turner Casualty and Surety
Risk Management Turner Casualty and Surety Managing Turner’s Insurance Coverage, Claims, Safety and Loss Control ■ Contractor Controlled Insurance Program (CCIP) CCIP is a Wrap-up Program For All On-site Worker’s Compensation and General Liability Coverage for Turner and Our Subcontractors ■ Compreh
Slide 40: Risk Management: Surety and Insurance Brokerage
Risk Management Turner Surety and Insurance Brokerage Managing Turner’s and Subcontractors’ Use of Bonding and Subguard ■ Turner’s Surety Program Travelers, Chubb, Zurich and AIG Surety Due Diligence Constant Communications ■ Subcontractor Guarantees Turner Bonding Policy Subcontractor Default Insur
Slide 41: Risk Management
Risk Management Risk Management Blend of Contract and Building Contract Review Committee Type in Portfolio Contract Terms & Conditions Legal Review Commodity Price Escalation Early Subcontractor Pricing Turner Logistics Safety Site Specific Safety Program Full-time Safety Managers Subcontractor Defa
Slide 42: Securing and Delivering the Good Work
Risk Management Securing and Delivering the “Good Work” 42 Turner: A HOCHTIEF Company
Slide 43: Financial Review
Financial Review Financial Results Risk Management System Wilfried Eckert Executive Vice President Chief Financial Officer Turner Construction Company 43 Turner: A HOCHTIEF Company
Slide 44: HOCHTIEF Construction Services Americas Division
HOCHTIEF Construction Services Americas Division $ Million Thru 9/30/06 Thru 9/30/07 EOY 06 New Orders (Sales) $7,849.8 $7,794.1 $10,579.3 Order Backlog $10,433.3 $11,067.6 $10,682.1 Revenue $5,929.6 $7,030.8 $8,367.8 Earnings Before Tax $49.7 $86.0 $74.2 EBT-Margin 0.8% 1.2% 0.9% RONA (%) 23.6 CAPE
Slide 45: Turner Revenue and Earnings Before Taxes
Turner Earnings Turner Revenue Before Taxes $ Billions $ Millions $8.3 Full Year ■ EBT margin target 2007: >1% ■ EBT margin target 2008: 1.5% 3rd Qtr. Full Year $70.0 0.9% $6.9 3rd Qtr. $5.9 $75.5 1.1% $48.3 0.8% 2006 Sep-07 2006 Sep-07 45 Turner: A HOCHTIEF Company
Slide 46: Turner Sales – New Orders and Backlog Volume
Turner Sales – Turner New Orders Backlog Volume $ Billions $10.8 $10.3 $10.2 Full Year 3rd Qtr. $7.7 $7.6 2006 Sep-07 EOY 2006 Sep-07 46 Turner: A HOCHTIEF Company
Slide 47: Turner Backlog Volume Burn-off
Turner Backlog Volume Burn-off As of September 30, 2007 2007: $2,346 2008: $5,421 2009: $2,350 Beyond: $700 22% 50% 22% 6% $Millions $2,346 $1,702 $1,484 $1,279 $956 $745 $700 $636 $552 $417 4Q-07 1Q-08 2Q-08 3Q-08 4Q-08 1Q-09 2Q-09 3Q-09 4Q-09 Beyond 47 Turner: A HOCHTIEF Company
Slide 48: Process Related Risk Management
Process Related Risk Management Four Key Principles ■ Transparency Standardization of Reporting Layout and Processes Balanced Risk factors ■ Monthly Update Comprehensive Financial and Operational Reviews and Risk Assessment of all Business Units Review Assumptions in Forecast and Advise on Potential
Slide 49: Independent Risk Assessment Up to the Top
Process Related Risk Management Independent Risk Assessment Up to the Top Regional Regional Chief Chief Financial Financial Officer Officer Executive Executive Vice Vice President President General General Manager Manager Regional Regional Controller Controller Manager, Manager, Financial Chief Chie
Slide 50: Project Related Risk Management
Project Related Risk Management Bid Controlling Project Controlling Proposal Negotiation Implementation Involvement Involvement Review Meetings Local + Indicated Out- Out- of all “chairs” of all “chairs” come reports Internal Executive Agreement of Agreement of Continuous Project Core Team Core Team
Slide 51: Project Controlling: Continuous Monitoring
Project Related Risk Management Project Controlling Continuous Monitoring and Forecasting ■ Monthly Operational Review Meetings Regarding Project Risks and Reserves by the Project Team ■ Quarterly Preparation of Indicated Outcome Reports Independent Review Of The Project In Regards Of Scopes Of Work
Slide 52: Project Controlling: Internal Review
Project Related Risk Management Project Controlling Internal Review As An Additional Check ■ Identifies High Risk Projects Risk Indicators − Design Build, Joint Ventures, Remote Jobsites Solicit input from EVP Group and from CRC for focus projects ■ All Business Units Are Reviewed ■ Eight Audit - Sp
Slide 53: Project Controlling: Continuous Improvement
Project Related Risk Management Project Controlling Internal Review as Continuous Improvement Chance ■ Clarifies/Updates Policies and Procedures With Management ■ Recommendations and Tools for Business Unit to Learn From The Best in Class ■ Issues Reports Including Action Plan ■ Follow-up Reviews to
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This page intentionally left blank 54 Turner: A HOCHTIEF Company
Slide 55: Growth Opportunities and Outlook
Growth Opportunities and Outlook ViCon Excend/Ducon Sustainability/Green Buildings International Public Private Partnerships Peter Davoren President and CEO Turner Construction Company 55 Turner: A HOCHTIEF Company
Slide 56: Reducing Risk & Increasing Success: Building Information Modeling (ViCon)
Reducing Risk & Increasing Success Building Information Modeling (ViCon) ■ ViCon Developed by HOCHTIEF ■ ViCon is a Technology That Leads to More Effective Collaboration and Improved Communication Collaboration in turn can lead to more successful projects ■ ViCon Reduces the Level of Project Risk Pe
Slide 57: ViCon at Turner – The iRoom
Vicon at Turner – The “iRoom” HOCHTIEF Tool Implemented at Turner Mechanical Engineer Plumbing Coordinator Fire Sprinkler Coordinator Mechanical Pipe Coordinator Electrical Coordinator Turner MEP Manager Ductwork Coordinator Turner Model Coordinator 57 Turner: A HOCHTIEF Company
Slide 58: Virtual Design and Construction ViCon At Turner
Virtual Design and Construction ViCon At Turner ■ Since 2006 ■ 40 Projects ■ $6 Billion Construction Volume ■ Projects that most benefit from Virtual Design and Construction are Complex Projects Requiring Significant Coordination Between Design Disciplines and Trades Hospitals Pharmaceutical Data Ce
Slide 59: Turner Green Building Experience
Turner Green Building Experience ■ Since 1995 ■ Over 200 Projects with Green Building Elements Completed or Under Construction ■ Construction value: over $12 Billion ■ 56 Projects LEED Certified or Better ■ 70 LEED Registered Projects ■ Over 300 LEED Accredited Professionals and counting… ■ HOCHTIEF
Slide 60: Turner's Commitment to Green
Turner’s Commitment to Green ■ New Turner Offices will be LEED Certified ■ As an EPA Climate Leader Turner is Committed to Identify Our Carbon Footprint and to Take Steps to Reduce It ■ LEED AP Assigned to Every Green Job ■ Subcontractor Training in Green Building Practices ■ Green Construction Oper
Slide 61: Excend/Ducon
Excend/Ducon DUCON® (DUctile CONcrete) Micro-Reinforcement + High-Strength Concrete ■ Leverage Strengths of Turner Organization ■ Opportunity With Expanding Security and Seismic Markets ■ Exclusive Position with Unique Product ■ Successfully Passed Blast Testing 61 Turner: A HOCHTIEF Company
Slide 62: DUCON Applications
DUCON Applications Blast Column Enclosure Blast Facade Fragmentation Slab RFC 12 inches DUCON 0.6 inches DUCON DUCON Impervious Overlay Blast Wall Seismic Column Confinement DUCON DUCON DUCON MicroMat DUCON 62 Turner: A HOCHTIEF Company
Slide 63: Turner International
Turner International ■ Founded in 1965 ■ Low Risk Approach ■ Currently Managing Construction Totaling 20.3 Million Square Meters and Valued at US$19.7 Billion ■ Services include: Preconstruction Consulting, Program Management, Project Management and Construction Management Advisory Services ■ Recogn
Slide 64: Turner International Experience
Turner International Experience Turner Has Built Or Managed the Construction Of 13 Of the World’s Tallest 100 Buildings 64 Turner: A HOCHTIEF Company
Slide 65: Turner International Experience: Presence in Countries
Turner International Experience Presence in 26 Countries 65 Turner: A HOCHTIEF Company
Slide 66: International Opportunities
International Opportunities ■ Leverage U.S. and Turner International Operations Organic Growth Targeted Countries Client Oriented ■ Work with HOCHTIEF affiliated companies to expand in growing markets Asia Eastern Europe Latin America & the Caribbean Bitexco Financial Tower Ho Chi Minh City, Vietnam
Slide 67: PPP Opportunities
PPP Opportunities ■ Limited Immediate Opportunities d ine in the Building Market HT r mb e rn E D HT Co Tu ■ Greatest Potential Opportunity Design (Lead) In the Education, Healthcare Build and Municipality Markets Finance ■ Leverage Turner Experience Operate/Maintain Leading Design/Build Team on Loc
Slide 68: Turner: A HOCHTIEF Company
68 Turner: A HOCHTIEF Company
Slide 69: Flatiron Construction Corp.
HOCHTIEF Capital Markets Day Construction Services Americas: North America December 4, 2007 Flatiron Construction Corp. Tom Rademacher, CEO Build the Best. Be the Best. 69
Slide 70: Table of Contents
Table of Contents • History and Growth • Market Profile • Capabilities / Projects • Competition • Strengths / Core Competencies • Risk Sharing / Partnering • Historic Performance • Market Overview Build the Best. Be the Best. 70
Slide 71: Company History and Profile
Company History • Founded 1947 – local Colorado business • Aggregates/Materials based until late 1980’s • 1980’s – I-70 Glenwood Canyon – first major signature civil projects (over $180M of work) • Expanded Southern California 1991 • European ownership since 1993 • Expanded into further US national
Slide 72: Divisional Offices & 2006 Revenue
Divisional Offices & 2006 Revenue Flatiron Construction Corp. Longmont, CO (Corporate Headquarters) Flatiron Constructors, Inc. Longmont, CO $179 million Flatiron Constructors, Inc. Intermountain Longmont, CO $9 million Flatiron Constructors, Inc. Canada Limited Vancouver, B.C. $53 million FCI Const
Slide 73: Table of Contents
Table of Contents • History and Growth • Market Profile • Capabilities / Projects • Competition • Strengths / Core Competencies • Risk Sharing / Partnering • Historic Performance • Market Overview Build the Best. Be the Best. 73
Slide 74: Market Profile
2006 Sales per region (%): Market Profile 1.5% 1.4% 5.9% Transportation Focus 8.4% California Florida • Highways & Interchanges W estern Canada • Bridges – all types Others – Segmental 16.5% Colorado The Carolinas – Cable Stayed – Suspension 66.3% – Cast-in-place concrete • Commuter & Light Rail 200
Slide 75: Table of Contents
Table of Contents • History and Growth • Market Profile • Capabilities / Projects • Competition • Strengths / Core Competencies • Risk Sharing / Partnering • Historic Performance • Market Overview Build the Best. Be the Best. 75
Slide 76: Capabilities: Highways & Interchanges
Capabilities Highways & Interchanges Carolina Bays Parkway – Myrtle Beach, SC • $254 million • 21 miles new divided highway/38 bridges • Utilized “top down” construction to protect environment Eastern Transportation Corridor – Orange County, CA • $803 million • 25.4 miles – toll road • 69 bridges/67
Slide 77: Capabilities: Bridges
Capabilities Bridges San Francisco-Oakland Bay Bridge – Oakland, CA • $1.2 billion • 452 segments • Largest precast segments in the world (480-800 tons) John James Audubon Bridge – New Roads, LA • $348 million • 1,600-foot-long main span • When completed, will be the longest cable stayed span in Nor
Slide 78: Capabilities: Rail
Capabilities Rail Mission Valley Light Rail Transit – San Diego, CA • $62 million • Carries between 5,500 and 9,000 riders a day • 2.5 miles of bridges and aerial track structures University of Utah and Medical Center Light Rail Transit – Salt Lake City, UT • $125 million (2 projects) • Completed on
Slide 79: Capabilities: Airports (Runways & Taxiways)
Capabilities Airports (Runways & Taxiways) San Diego Intl. Airport Runway Rehabilitation – 2 projects • $14 million – Runway and taxiway repair • $10 million – Slab replacements • Rapid-strength concrete placed with Volumetric Mixers Other Airport paving projects • Sacramento Airport – aprons paving
Slide 80: Capabilities: Other
Capabilities Other Paving: Interstate 5 Slab Replacement – Burbank, CA • $44 million • 32,000 cubic meters of Portland Cement Concrete (PCC) replaced with Rapid Strength Concrete • Night work during 4-hour restricted work window Other PCC Paving • Currently paving on 12 different projects throughout
Slide 81: Table of Contents
Table of Contents • History and Growth • Market Profile • Capabilities / Projects • Competition • Strengths / Core Competencies • Risk Sharing / Partnering • Historic Performance • Market Overview Build the Best. Be the Best. 81
Slide 82: Competition
Competition • National – Kiewit – Skanska – Fluor – Granite – Balfour Beatty – PCL • Regional – Fragmented market – local competitors Build the Best. Be the Best. 82
Slide 83: Table of Contents
Table of Contents • History and Growth • Market Profile • Capabilities / Projects • Competition • Strengths / Core Competencies • Risk Sharing / Partnering • Historic Performance • Market Overview Build the Best. Be the Best. 83
Slide 84: Strengths / Core Competencies
Strengths / Core Competencies • Delivery methods • In-house construction engineering – General Contracting – Bid/Build group – Design-Build • Growing Electrical business unit – Canadian/US PPP • Excellent relationships with strong joint venture partners • Self-perform capability – Structural Concret
Slide 85: Table of Contents
Table of Contents • History and Growth • Market Profile • Capabilities / Projects • Competition • Strengths / Core Competencies • Risk Sharing / Partnering • Historic Performance • Market Overview Build the Best. Be the Best. 85
Slide 86: Risk Sharing / Partnering
Risk Sharing / Partnering * Current contract – Phase 1 ** In development Peter Kiewit SFOBB Skyway $1.2BN (our share 27%) E2/T1 Foundations $265M (our share 27%) Skanska-Tidewater Ravenel Bridge $550M (our share 40%) I-10 Escambia Bay $242M (our share 40%) Tampa SR 60 $200M (our share 60%) Fluor Spr
Slide 87: Table of Contents
Table of Contents • History and Growth • Market Profile • Capabilities / Projects • Competition • Strengths / Core Competencies • Risk Sharing / Partnering • Historic Performance • Market Overview Build the Best. Be the Best. 87
Slide 88: Historic Performance
Historic Performance • Internal growth while maintaining profitability • Stable order backlog • Increased orders Q4 2007 New New orders orders // Order Order backlog backlog (in (in USD M)1)1):: USD M) Sales Sales (in (in USD USD M) M) // EBT margins2)2):: EBT margins 700 1,400 626 559 1149 600 1,20
Slide 89: Table of Contents
Table of Contents • History and Growth • Market Profile • Capabilities / Projects • Competition • Strengths / Core Competencies • Risk Sharing / Partnering • Historic Performance • Market Overview Build the Best. Be the Best. 89
Slide 90: Market Overview: Federal
Market Overview Federal • Long-term transportation funding bill in place - SAFETEA-LU (2005-09): – $285 billion = 38% higher predecessor TEA-21 – Beneficiary: mass transit, roads, bridges – Post-Hurricane rebuilding: $2.5 billion for roads and bridges • Very large transportation infrastructure spend
Slide 91: Market Overview: State
Market Overview State California • 53% increase in transportation spending in 20071) • Proposition 1A and 1B for Transportation approved 2006 – Streamlines use of tax revenue for transportation projects (1A) – $20 billion in general obligation bonds, for state and local transportation improvement pr
Slide 92: Market Overview: State (continued)
Market Overview State (continued) Other regions • Carolinas – Favorable labor conditions and local laws – High population growth (immigration) – Open market • Pacific Northwest – High population growth – Open market • Western Canada – Already established – Management know-how Build the Best. Be the
Slide 93: Market Overview: PPP projects
Market Overview PPP projects • Two existing PPP design/build projects under way ($600M) HOCHTIEF PPP Synergy • Potential for growth in USA and Canada d ine Co n HT ) er 5) – >$25 billion in PPP highway projects planned or already approved across iro D4 mb rn E t the US1) HT Fla Tu – >20 US states ha
Slide 94: The Winning Formula
The Winning Formula PPP - DESIGN/BUILD - HOCHTIEF SYNERGIES DESIGN-BUILD - HEAVY CIVIL - LARGE SCALE - JV PARTNERS ✦✬✡✴✩✲✯✮ BID-BUILD - DISTRICT/CORE BUSINESS - TRAINING GROUND BALANCE OF BUSINESS DELIVERY METHODS Build the Best. Be the Best. 94
Slide 95: Questions?
Questions? Build the Best. Be the Best. 95
Slide 96: FCI South Projects
FCI South Projects Sprinter Rail North Torrey Pines Build the Best. Be the Best. 96
Slide 97: FCI North Projects
FCI North Projects I-680 Toll Plaza Approach Benicia Wetlands Mitigation Build the Best. Be the Best. 97
Slide 98: Flatiron Intermountain Projects
Flatiron Intermountain Projects Genesee Dam - Colorado I-25 Widening - Colorado Build the Best. Be the Best. 98
Slide 99: Flatiron Constructors Projects
Flatiron Constructors Projects Cooper River Bridge – South Carolina San Francisco/Oakland Bay Bridge - California Build the Best. Be the Best. 99
Slide 100: 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 101: Financial calendar and IR contact
Financial calendar and IR contact 26 Mar 08 Full year results 2007 and Analysts’ and Investors’ Conference 08 May 08 General Shareholders’ Meeting 15 May 08 Q1 results 2008 and Conference Call 14 Aug 08 Half year results 2008 and Analysts’ and Investors’ Conference For further information please con
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