Hochtief Aktiengesellschaft · XETR:HOT
Hochtief Aktiengesellschaft — FY2001 Earnings Presentation
28 slides from Hochtief Aktiengesellschaft's earnings presentation, April 2002
Slide 1: Successful with a Unique International Network
SUCCESSFUL WITH A UNIQUE INTERNATIONAL NETWORK COMPREHENSIVE ANALYSIS OF HOCHTIEF April 2002
Slide 2: HOCHTIEF
HOCHTIEF contractor based in Germany - but not a German contractor ¾ Most international contractor worldwide ¾ Expanding service activities ¾ Leanest construction organization among all listed competitors within the German market ¾ Leading Project Developer and Facility Manager, ¾ One of the largest
Slide 3: An International Leader
AN INTERNATIONAL LEADER 1. INTERNATIONAL CONSTRUCTION MARKETS AND ITS MAJOR PLAYERS (Global Work Done) RANK FIRM 1 Vinci, France 2 Taisei Corp., Japan 3 Bouygues, France 4 Bechtel, U.S.A. 5 HOCHTIEF 2. WORLD’s MOST INTERNATIONAL CONSTRUCTION GROUPS (International Work Done) 2000 REVENUE NEW RANK FIR
Slide 4: HOCHTIEF Group
HOCHTIEF GROUP GERMANY: €2.03bn REST OF EUROPE: €0.43bn Asia-Pacific: AMERICA: €2.75bn €6.95bn AFRICA: €0.01bn Sales by Regions 2001 4
Slide 5: HOCHTIEF AG (Holding)
HOCHTIEF AG (Holding) Construction AG Americas Asia HTI Airport Develop- Pacific ment Building HOCHTIEF UK Turner Leighton Ballast Nedam Athens HOCHTIEF Germany United Kingdom USA Holding Netherlands International Project Australia Airport Development Civil HOCHTIEF Lux. Kitchell Leighton HOCHTIEF A
Slide 6: 2001 Highlights: Positioned for Further Growth
2001 Highlights: Positioned for Further Growth ¾ Restructuring of loss making domestic construction business ¾ Focus on profitable regions and service businesses continues ¾ Position in North America strengthens ¾ Full consolidation of Leighton Holdings ¾ HT Airport one of the world’s leading airpor
Slide 7: Action Taken Against the Downward Trend in Germany
ACTION TAKEN AGAINST THE DOWNWARD TREND IN GERMANY SHIFT TOWARDS MORE RESTRUCTURE GERMAN BUSINESS: INTERNATIONALISATION PROFITABLE BUSINESSES: Focus on ... Focus on ... Focus on ... ¾ core competencies ¾ Building global presence ¾ Airport Management ¾ capacity cuts ¾ Unifying processes/systems ¾ Rea
Slide 8: Strategic Outlook
STRATEGIC OUTLOOK ¾ Consolidation of HT Construction business Reorganising European ¾ Integration of European units into HT Construction AG construction activities ¾ Strict risk management processes ¾ New contract structures ¾ Organic growth of Turner (U.S.A.) and Leighton (Australia/Asia Pacific) E
Slide 9: 2002 Developments to Date
2002 DEVELOPMENTS TO DATE ¾ RWE re-organised its direct and indirect stake in HOCHTIEF → deconsolidation beginning FY 2002 ¾ Sale of Monachia Grundstücks AG realising profits of €157 million ¾ Increase Hamburg airport stake by 4% up to 40% ¾ HOCHTIEF Facility Management moved into the Hungarian mark
Slide 10: Financial Highlights: HOCHTIEF Key Figures of FY 2001
FINANCIAL HIGHLIGHTS: HOCHTIEF KEY FIGURES OF FY 2001 € millions 2001 2000 Change% New Orders New Orders 14,660 13,790 +6.3 International €12.12m (+ 6.1%) Domestic €2.54m (+ 7.3%) Work done 13,390 12,730 +5.2 Sales 12,171 9,586 +27 Work Done Operating earnings 131 199 -34.2 International €10.94m (+1
Slide 11: Work Done Mix
WORK DONE MIX 2001 HT AIRPORT HT 2000 HT AIRPORT (€12 million) HT Services HT HT Services Construction (€21 million) (€40 million) Construction (€54 million) (€2.3 billion) (€2.9 billion) HT Development HT (€449 million) Development (€342 million) HT North America (€7.6 billion) HT International HT
Slide 12: Consolidated Statement of Earnings
CONSOLIDATED STATEMENT OF EARNINGS € millions 2001 2000 Change% Sales 12,171 9,586 +27 Leighton effects positive on: Materials -9,890 -8,125 +22 - Sales - Materials Personnel costs -1,639 -1,175 +39 - Personnel costs Depreciation and amortisation -266 -125 +113 - Depreciation/Amortisation Earnings f
Slide 13: Operating Earnings by Divisions 2001
OPERATING EARNINGS BY DIVISIONS 2001 EUR m a ic t n en al o er n ti m m io uc s p A at ce rt o tr rn h o el ns vi rt p ev te er o o ir In A C D N S 150 111 106100 100 81 68 59 50 34 11 13 6 0 2001 -50 -30 2000 -100 -150 -151 -200 Development: Down due to fewer sales and more investments North Americ
Slide 14: Consolidated Balance Sheet
CONSOLIDATED BALANCE SHEET Equity Ratio: Assets Liabilities 2001 2000 2001 2000 2001: 27.1 % 2000: 29.0 % Shareholders‘ equity and 2.218 2.175 1.902 minority Fixed Assets 2.372 Key Leighton effects: interests - Total Assets up 1.228 Provisions >21% Inventories, 1.034 receivables and 2.960 - Liabilit
Slide 15: Capex in 2001: €556 m, up from €493 m in 2000
CAPEX IN 2001: €556 m, up from €493 m in 2000 • €491 million used to acquire HQ/Consolidation property, plant and equipment (€6 million) HT AIRPORT (up 239%) HT Services (€7 million) (€26 million) HT Construction • Largely from first time HT North America (€45 million) (€25 million) consolidation of
Slide 16: Cash Flow Analysis
CASH FLOW ANALYSIS (€ millions) 2001 2000 Cash flow 160 220 Cash flow remains positive with €160m in spite of Net cash used in/provided by operating activities 233 -33 lower earnings Net cash used in investing activities -316 -267 Decline to previous year Net cash provided by financing activities 18
Slide 17: HT Airport: A Turbulent Year for the Industry
HT AIRPORT: A TURBULENT YEAR FOR THE INDUSTRY (€millions) 2001 2000 Change% ¾ Improved results in all airports in which HTA has a stake despite September 11 Work done 12 21 -42.9 ¾ Lower work done due to postponement of acquisition projects Operating earnings 10.8 13.1 -17.6 ¾ Athens significantly e
Slide 18: HT Construction: Negative results - the worst is over
HT CONSTRUCTION: Negative results - the worst is over (€ millions) 2001 2000 Change% ¾ Capacity reduction 1,540 in 2001 Work done 2,269 2,948 -23 ¾ Ongoing German capacity reductions of approx.1,100 in 2002 (provisions in 2001 accounts) Operating earnings -151 -30 -400 ¾ €100 million annual cost sav
Slide 19: HT Development: Managing the Property and Infrastructure Lifecycle
HT DEVELOPMENT: Managing the Property and Infrastructure Lifecycle (€millions) 2001 2000 Change% ¾ Significant increase in sales from HTD ¾ Amongst leading German project developers for office buildings, Work done 449 342 31.3 hotels and shopping malls Operating earnings 67.6 81.1 -16.6 ¾ Successful
Slide 20: HT North America: Once again excellent results
HT NORTH AMERICA: Once again excellent results (€millions) 2001 2000 Change% ¾ Exceeded our expectations with continued growth in both, sales and profitability Work done 7,588 6,476 +17.2 ¾ Turner number 1 in general building in the U.S. Operating earnings 106 100 +6.0 ¾ Turner’s success has its rea
Slide 21: HT International: Leighton leading contractor in high growth region
HT INTERNATIONAL: Leighton leading contractor in high growth region (€millions) 2001 2000 Change% ¾ Leighton figures fully consolidated from FY 2001 on Work done 3,021 2,903 +4.1 ¾ Continued growth in Asia Pacific -- by far #1 in Australia and in the southeast Asian region Operating earnings 110.7 5
Slide 22: HT Services: Major steps forward within 2001
HT SERVICES: Major steps forward within 2001 (€millions) 2001 2000 Change% ¾ HT Services now encompases two different companies: Work done 54 40 +35 ¾ Streif Baulogistik (construction logistics) ¾ Verbau (insurance broker) Operating earnings 34.2 5.6 >500 ¾ Streif Baulogistik is successfully positio
Slide 23: HOCHTIEF City
HOCHTIEF City For further information please contact: Rudolf Bräunig Carl E. Hoestermann Investor Relations Opernplatz 2 D - 45128 Essen Phone: +49-(0)201-824-1832 Fax: +49-(0)201-824-2750 E-Mail: [email protected] 23
Slide 24: Back up
HOCHTIEF Back up 24
Slide 25: Group Objectives Targets
GROUP OBJECTIVES TARGETS ¾ Become a Top 3 global construction Group by work done ¾ Maintain position as “most international” construction/services company ¾ Continuing focus on profitable services businesses ¾ Returning the German building construction business to profitability in 2002/3 -- and keep
Slide 26: HT Construction: Consolidation in a Still Difficult Environment
HT CONSTRUCTION: CONSOLIDATION IN A STILL DIFFICULT ENVIRONMENT ¾ The German construction sector is cyclical, still has overcapacities, has low growth prospects and low margins -- typically up to 4% ¾ The German building business has seen a steady decline in output, and is expected to continue shrin
Slide 27: Construction: Comprehensive Restructuring Programme in 2001
CONSTRUCTION: COMPREHENSIVE RESTRUCTURING PROGRAMME IN 2001 ¾ Foundation of HOCHTIEF Construction AG Radical restructuring ¾ Cut workforce by 1,540 personnel in 2001 programme established ¾ Cost reduction of €100 million per year from 2002 ¾ Overhead reduction of 20% by 2001 ¾ Significantly improved
Slide 28: Risk Reduction: Tighter Controls
RISK REDUCTION: TIGHTER CONTROLS ¾ Within the construction sector there are major risks associated with projects ¾ Calculation risks ¾ Financial risks ¾ Legal risks ¾ Project management risks ¾ HOCHTIEF Construction has therefore created a central Contract Review Committee ¾ pre-committee prepares e
HOCHTIEF Aktiengesellschaft — FY2001 Earnings Presentation on 6ix