Hochtief Aktiengesellschaft · XETR:HOT
Hochtief Aktiengesellschaft — Investor Presentation (April 2008)
52 slides from Hochtief Aktiengesellschaft's investor presentation, Apr 14, 2008
Slide 1: Company presentation
Company presentation Latest update: 14 April 2008 Turning Vision into Value.
Slide 2: Table of contents
Table of contents 1. Overview p. 2 2. Airports p. 9 3. Development p. 13 4. Americas p. 21 5. Asia Pacific p. 24 6. Europe p. 28 7. Outlook p. 31 8. Appendix p. 34 WestEnd Duo, Frankfurt Turning Vision into Value. 2
Slide 3: HOCHTIEF stands for …
HOCHTIEF stands for … • Comprehensive services for infrastructure, real estate and industrial facilities We develop, finance, invest in, design, construct, maintain and operate projects, provide asset management for third parties • Active portfolio management for further growth o Focus on concession
Slide 4: HOCHTIEF structure: Integrated solutions around the world
HOCHTIEF structure Integrated solutions around the world HOCHTIEF HOCHTIEF HOCHTIEF HOCHTIEF HOCHTIEF Airport Development Construction Construction Services Construction Services Services Americas Asia Pacific Europe Leading independent international Construction-related services for Building (Turne
Slide 5: Regional Group sales
Regional Group sales Jan-Dec: EUR 16,452m (07); EUR 15,466m (06) America FY 07: EUR 7,059m (43%) FY 06: EUR 6,722m (43%) Asia/Pacific, Africa FY 07: EUR 5,999m (37%) FY 06: EUR 5,750m (37%) Germany FY 07: EUR 2,220m (13%) FY 06: EUR 2,127m (14%) Other Europe FY 07: EUR 1,174m (7%) FY 06: EUR 867m (6
Slide 6: Networking at HOCHTIEF
Networking at HOCHTIEF Profit centers adding value through group-wide cooperation • PPP: o Construction orders for HOCHTIEF Europe approx. EUR 590m Order value for HOCHTIEF FM: EUR 220m o PPP project pipeline (end 07): approx. EUR 6.6bn investment / contract volume -> approx. EUR 1.7bn potential con
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 16.45 160 187 337 338 501 20 600 16 500 3.0% 400 12 1) 300 2.5% 2.2% 2) 8 2.1% 200 4 1.6% 100 1.5% 0 0 3) 3) 2003 2004 2005 2006 2007 2003 2004 2005 2006 2007
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 16.47 18.72 21.10 25.13 29.89 (30.92) 25 35 30 1.03 20 25 15 20.32 20 18.82 25.99 10 15 12.17 12.83 13.05 22.33 17.77 10 14.07 15.5
Slide 9: Table of contents
Table of contents 1. Overview p. 2 2. Airports p. 9 3. Development p. 13 4. Americas p. 21 5. Asia Pacific p. 24 6. Europe p. 28 7. Outlook p. 31 8. Appendix p. 34 Hamburg Airport Budapest Airport Turning Vision into Value. 9
Slide 10: HOCHTIEF Airport (1) Market
HOCHTIEF Airport (1) Market Passenger volumes 2006-2025E, Freight volumes 2006-2025E, in million PAX, growth rates in % p.a. in million tons, growth rates in %p.a. World +3.9% p.a. World +5.0% p.a. North America +2.7% p.a. North America +3.7% p.a. Europe +3.4% p.a. 2007 Asia Pacific +6.5% p.a. 2007
Slide 11: HOCHTIEF Airport (2)
HOCHTIEF Airport (2) Essentials Essentials Financials Financials • Strong PAX (HOCHTIEF 07: 88.7m (+7.4%), global +5.6%) Jan-Dec (EUR m) 2007 2006 % drive op. performance of all HOCHTIEF airports External sales 27.4 3.8 621.1 • Focus: Net income from participations 162.8 65.1 150.1 o Increase airpor
Slide 12: HOCHTIEF Airport (3) Asset value
HOCHTIEF Airport (3) Asset value Portfolio Portfolio value value concession concession projects projects (Dec (Dec 07, 07, forecast, forecast, EUR EUR m) 1) m)1) 1) Portfolio value: Status: Committed Paid-in NPV NPV Difference due to Financial Close Capital Capital of anticipated as of Growth of Gro
Slide 13: Table of contents
Table of contents 1. Overview p. 2 2. Airports p. 9 3. Development p. 13 4. Americas p. 21 5. Asia Pacific p. 24 6. Europe p. 28 7. Outlook p. 31 8. Appendix p. 34 GAP 15, Düsseldorf Turning Vision into Value. 13
Slide 14: HOCHTIEF Development
HOCHTIEF Development Essentials Essentials Financials Financials • PPP – operating bldgs. and toll roads – expands Europ. Jan-Dec (EUR m) 2007 2006 % market position; 6 project wins in 07 (Germany, Greece, New orders 2,244.9 1,280.4 75.3 UK); total NPV (end 07): EUR 206m Order backlog 3,336.9 2,062.
Slide 15: HOCHTIEF Development: PPP (1) Market
HOCHTIEF Development: PPP (1) Market Toll Toll roads roads Public Public buildings buildings • Germany: • Germany: (contract volume p.a., EUR bn)1) A-Model A1, 5.0 5.9 7.1 7.8 8 Lower Saxony F-Model Weser X-ing, 6 Bremen 4 7,1 7,8 5,9 K-Model bridges, 5 2 1) Internal estimation Frankfurt a.M. for th
Slide 16: HOCHTIEF Development: PPP (2) Key figures
HOCHTIEF Development: PPP (2) Key figures Portfolio Portfolio value value concession concession projects projects (Dec (Dec 07, 07, forecast, forecast, EUR m)1)1) EUR m) Financials Financials Status: Committed Paid-in NPV NPV Difference due to Jan-Dec (EUR m) 2007 2006 % Financial Close Capital Capi
Slide 17: Development: Real estate development (1) Market
HOCHTIEF Development: Real estate development (1) Market Rental Rental market market Investment Investment market market Office properties stock 07 (sqm m), vacancy rate (%, incl. trend) Market investment volume 07 (EUR m), HOCHTIEF locations 20.0 9.0% 8.8% Hamburg 5,100 6,900 15.0 16.0% 2,300 Berli
Slide 18: Development: Real estate development (2) Key figures
HOCHTIEF Development: Real estate development (2) Key figures Essentials Essentials Financials Financials • HTP – a trader developer for real estates in Germany and Jan-Dec (EUR m) 2007 2006 % CEE with a successful long term track record External sales 470.7 378.4 24.4 • aurelis Real Estate: o Sep 0
Slide 19: Development: Facility Management (1) Market Germany
HOCHTIEF Development: Facility Management (1) Market Germany Facility Facility Management Management Energy Energy Contracting Contracting Market volume and expected growth Market volume and expected growth (EUR bn; % change yoy)1) (EUR bn, % change yoy)2) 1.2 1.4 1.6 1.8 2.0 80.0 57.0 60.0 63.3 67.
Slide 20: Development: Facility Management (2) Key figures
HOCHTIEF Development: Facility Management (2) Key figures Essentials Essentials Financials Financials • HOCHTIEF FM – a leading provider of integrated FM Jan-Dec (EUR m) 2007 2006 % • Major market segments include: Financial services, External sales 565.7 499.7 13.2 PPP, Airports, Health, Chemical /
Slide 21: Table of contents
Table of contents 1. Overview p. 2 2. Airports p. 9 3. Development p. 13 4. Americas p. 21 5. Asia Pacific p. 24 6. Europe p. 28 7. Outlook p. 31 8. Appendix p. 34 Hearst Building, New York Times Square Tower New York Turning Vision into Value. 21
Slide 22: Construction Services Americas (1) Market
HOCHTIEF Construction Services Americas (1) Market General General building building (Turner) (Turner) Civil/Infrastructure Civil/Infrastructure (Flatiron) (Flatiron) Turner new orders FY 2007 split by market (total USD 10.3bn) Flatiron new orders FY 2007 split by market (total USD 681m) Water suppl
Slide 23: Construction Services Americas (2) Key figures
HOCHTIEF Construction Services Americas (2) Key figures Essentials Essentials Financials Financials • Turner: leading general builder in the US, #1 in Jan-Dec (EUR m) 2007 2006 % segments healthcare and commercial office New orders 7,715.7 8,376.4 -7.9 buildings1); increased exposure in green buildi
Slide 24: Table of contents
Table of contents 1. Overview p. 2 2. Airports p. 9 3. Development p. 13 4. Americas p. 21 5. Asia Pacific p. 24 6. Europe p. 28 7. Outlook p. 31 8. Appendix p. 34 Light Rail Transit System, Hong Kong Turning Vision into Value. 24
Slide 25: Construction Services Asia Pacific (1) Market
HOCHTIEF Construction Services Asia Pacific (1) Market Infrastructure Infrastructure Construction Construction Bldg. Bldg. Construction Construction // Development Development Engineering Construction Industry, Value of Work Done total Australian Residential and Non-Residential Building (in AUD bn)
Slide 26: Construction Services Asia Pacific (2) Key Figures
HOCHTIEF Construction Services Asia Pacific (2) Key Figures Leighton Leighton “map” “map” Leighton Leighton op. op. revenue revenue (H1 (H1 FY FY 07/08, 07/08, AUD AUD 6,511m) 6,511m) by region: 6%1% 2% 2% 5% Australia/Pacific EBT (AUD 322 m):1) Indonesia Hong Kong/Macau • Australia/Pacific 92% Indi
Slide 27: Construction Services Asia Pacific (3) Key figures
HOCHTIEF Construction Services Asia Pacific (3) Key figures Essentials Essentials Financials Financials • Leighton market leader in Australia, strong position in Jan-Dec (EUR m) 2007 2006 % Asia New orders 10,415.7 8,362.3 24.6 • Continued growth in infrastructure segment (increased Order backlog 14
Slide 28: Table of contents
Table of contents 1. Overview p. 2 2. Airports p. 9 3. Development p. 13 4. Americas p. 21 5. Asia Pacific p. 24 6. Europe p. 28 7. Outlook p. 31 8. Appendix p. 34 Öresundbrücke GAP DLZ Stern 15, Düsseldorf Essen Turning Vision into Value. 28
Slide 29: Construction Services Europe (1) Market
HOCHTIEF Construction Services Europe (1) Market Selected Selected European European construction construction markets markets Market volume and expected growth (in EUR bn 07E; av. growth 2008-10 in %) 37.5 45.6 23.6 28.3 16.2 7.2 8.1 9.2 10.0 5.1 6.7 4.4 1.6 3.1 3.4 4.7 3.7 1.4 1.8 50.0 2.1% 2.2% N
Slide 30: Construction Services Europe (2) Key figures
HOCHTIEF Construction Services Europe (2) Key figures Essentials Essentials Financials Financials • European building construction, civil engineering, Jan-Dec (EUR m) 2007 2006 % infrastructure projects New orders 3 ,176.1 2,622.5 21. 1 • Difficult market situation in Germany; fundamental Order ba c
Slide 31: Table of contents
Table of contents 1. Overview p. 2 2. Airports p. 9 3. Development p. 13 4. Americas p. 21 5. Asia Pacific p. 24 6. Europe p. 28 7. Outlook p. 31 8. Appendix p. 34 WestEnd Duo, Frankfurt Turning Vision into Value. 31
Slide 32: …leading us to the outlook 2008…
…leading us to the outlook 2008… 2007 2008E EUR bn To steady off at a high level, likely to be New orders 23.5 short of prior-year Order EUR bn To steady off at a high level, likely to be backlog 29.9 short of prior-year EUR bn Sales Above prior-year level 16.5 EUR m EBT On a par with previous year'
Slide 33: …HOCHTIEF is about…realizing potential: Management priorities
…HOCHTIEF is about…realizing potential Management priorities • Well positioned in all major markets • Comprehensive services covering the whole life cycle of infrastructure, real estate and industrial facilities • Working on improving Group profitability • Further acquisitions growth with primary fo
Slide 34: Table of contents
Table of contents 1. Overview p. 2 2. Airports p. 9 3. Development p. 13 4. Americas p. 21 5. Asia Pacific p. 24 6. Europe p. 28 7. Outlook p. 31 8. Appendix p. 34 Vespucio Norte Express, Chile Turning Vision into Value. 34
Slide 35: Value created: RONA
Value created RONA (EUR m) 2007 2006 EBITA 517,3 327,3 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 (+ 50%) + Pension provisions 29,0 33,0 • Net assets: EUR 4,107.2m (+23%) + Financial liabilities 1966,8 1.044,1 • Value c
Slide 36: 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 37: …consolidated Group P&L…
…consolidated Group P&L… Jan-Dec (EUR m) 2007 2006 Change (%) • Sales: Sales 16,451.8 15,465.7 6.4 growth mainly in int’l markets (87% of total is non- Other operating income 230.8 229.1 0.7 domestic), esp. Americas and Asia Pacific Other operating expenses (adj.) -1,090.8 -924.6 -18.0 • Other opera
Slide 38: …consolidated Group balance sheet (assets)…
…consolidated Group balance sheet (assets)… (EUR thousand) 31 Dec 07 31 Dec 06 Non-current assets: Intangible assets 505,145 396,958 • Pp&e: expansion of contract mining PP&E 1,027,641 751,794 • At equity and other financial assets: increase in Investment properties 41,199 46,471 At equity and other
Slide 39: …consolidated Group balance sheet (equity and liabilities)…
…consolidated Group balance sheet (equity and liabilities)… (EUR thousand) 31 Dec 07 31 Dec 06 Shareholders’ equity: • Increased earnings after taxes: EUR 341m Subscribed capital 179,200 179,200 • Sale of own shares: EUR 336m Capital reserves 400,806 400,806 • Dividend payments: EUR 196m Revenue res
Slide 40: …sound financial basis…
…sound financial basis… Finance structure: (EUR m) • Gearing ratio (net debt / equity) 2.500 o HOCHTIEF with positive net cash (= negative net debt) -> negative gearing, 31 Dec 07: -10.8% 2.000 2,431 2,290 • Basic long-term cash- and guarantee-facilities 1.500 1,967 o EUR 2.0bn syndicated guarantee-
Slide 41: …consolidated Group Cash flow…
…consolidated Group Cash flow… 2,500 • 07: high investments at Leighton, BUD airport, 2006 SYD airport, Flatiron, • 07: sale of treasury aurelis stock (EUR 336 2007 million) and take-up 2,000 of loans to finance high investments -421 +609 -147 -84 -3 +907 1,500 -1,554 EUR m 1,403 1,397 1,397 65,4 +1
Slide 42: …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 2) 1) 91 2003 2004 2005 2006 2007 • Average increase of approx. 19% p.a. over the last five years •
Slide 43: HOCHTIEF Airport portfolio
HOCHTIEF Airport portfolio Athens Int‘l Budapest Düsseldorf Hamburg Sydney Tirana Int‘l Airport Airport Int‘l Airport Airport1) 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% 2) 50% 49% 100% 100% PAX in m 16.5 8.6 17.8 12.8
Slide 44: Development: PPP Asset portfolio, December 2007
HOCHTIEF Development: PPP Asset portfolio, 31 December 2007 Toll Roads/Transportation (EUR m) Project Name Investment Volume HT-Stake HT Committed Equity HT Paid-in Equity 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 len
Slide 45: Development: PPP Principle of Life cycle Valuation
HOCHTIEF Development: PPP 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 + Risk fre
Slide 46: Development: PPP portfolio NPV
HOCHTIEF Development: PPP portfolio NPV accumulated Cash flows monetary (nominal) units Value of Equity (DCF calculation) Cash flows (nominal) Start of operation t as of Dec 07 Construction Ramp-up Growth Maturity • Tunnel San Cristobal • Herrentunnel Lübeck Toll roads • Vienna Northeastern Bypass •
Slide 47: Development: PPP Project pipeline
HOCHTIEF Development: PPP Project pipeline Preferred bidder Tender Phase no. of Contract/investment no. of Contract/investment projects volume1) projects volume1) Public buildings / 1 ca. 140 10 ca. 1,660 social infrastructure Toll roads 1 ca. 500 3 ca. 4,150 • Total PPP pipeline volume (Feb 08): ca
Slide 48: New Corporate Structure HOCHTIEF Group as of Jan 1st, 2008
New Corporate Structure HOCHTIEF Group as of Jan 1st, 2008 HOCHTIEF Corporate Headquarters (management holding company) HOCHTIEF HOCHTIEF HOCHTIEF HOCHTIEF HOCHTIEF HOCHTIEF Americas Asia Pacific Concessions Europe Real Estate Services Turner Leighton HOCHTIEF HOCHTIEF HOCHTIEF HOCHTIEF Holdings Air
Slide 49: Sustainability at HOCHTIEF
Sustainability at HOCHTIEF …not just a phrase…but a clear commitment • Only German construction services provider, once again in the Dow Jones Sustainability Indexes • Key focus in 07 on energy efficiency o Entry into the geothermal energy sector: Plan, finance, build and operate first entirely priv
Slide 50: Shareholder structure
Shareholder structure Regional distribution (as of March 08) 3.3% 3.0% 9.99% 3.9% 27.8% 10.0% North America Spain / Portugal 3) UK / Ireland 25.08% Germany 11.4% Russia Scandinavia France / Benelux 64.93% Other Rasperia 1) 15.4% 2) 25.3% ACS Free float 1) Rasperia Trading Ltd., Cyprus 2) ACS ACTIVID
Slide 51: 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 52: Financial calendar and IR contact
Financial calendar and IR contact 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 14 Nov 08 Nine month results 2008 and Conference Call For further information please contact: Investor Rela
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