HOCHTIEF Aktiengesellschaft · XETR:HOT
HOCHTIEF Aktiengesellschaft — Investor Day (November 2006)
19 slides from HOCHTIEF Aktiengesellschaft's investor day presentation, Nov 16, 2006
Slide 1: PPP – People, Projects and Perspectives
PPP – People, Projects and Perspectives HOCHTIEF Capital Markets Day November 16, 2006 Bernward Kulle HOCHTIEF PPP Solutions GmbH 1
Slide 2: Content
Content • Public Private Partnerships • Overview of PPP at HOCHTIEF • Return/Risk Profile 2
Slide 3: Public Private Partnerships - A “Win-Win” Approach
Public Private Partnerships - A “Win-Win” Approach 3
Slide 4: What are Public Private Partnerships?
What are Public Private Partnerships? • Modern procurement method of the public sector for real estate and infrastructure services (“buy instead of make”) • Integrated completion of tasks over the whole life-cycle of real estate and infrastructure • Absorption of investment and operational risks by
Slide 5: Advantages of Public Private Partnerships for Public Sectors
Advantages of Public Private Partnerships for Public Sectors Efficiency Efficiency Gains Gains >> 10 10 percent percent Sustainable Sustainable Relief Relief of of Public Public Budgets Budgets Planning Planning Reliability Reliability for for Public Public Budgets Budgets Quality-Oriented Quality-O
Slide 6: Advantages of Public Private Partnerships for HOCHTIEF
Advantages of Public Private Partnerships for HOCHTIEF Value-Creation Value-Creation by by Portfolio Portfolio Management Management Attractive Attractive Returns Returns on on Investment Investment More More Constant Constant Cash Cash Flows Flows == Lower Lower Cyclicity Cyclicity Resistance Resis
Slide 7: Overview of PPP at HOCHTIEF
Overview of PPP at HOCHTIEF HOCHTIEF AG HOCHTIEF HOCHTIEF HOCHTIEF HOCHTIEF Airport HOCHTIEF Construction Construction Construction Development Services Americas Services Asia Pacific Services Europe Real Estate Infrastructure Facilities Asset Refurbishment Development Development Management Managem
Slide 8: HOCHTIEF PPP Solutions provides a holistic solution to its clients
HOCHTIEF PPP Solutions provides a holistic solution to its clients and integrates the value added of several corporate divisions Turner Construction Our construction partner in the USA HOCHTIEF Construction AG Our construction partner in Europe and South America HOCHTIEF Facility Management Maintena
Slide 9: How does HOCHTIEF earn money with PPP projects?
How does HOCHTIEF earn money with PPP projects? HOCHTIEF • Fees: PPP Solutions - Developer fees - Success fees - Management fees • Operational earnings: - Interest rates on shareholder’s loan - Dividends from operational profits of project parties • Sales revenues: - Development earnings from sales
Slide 10: HOCHTIEF PPP Solutions’ structure: two segments and four business units
HOCHTIEF PPP Solutions’ structure is based on two product market segments and four business units CEO COO CFO Management Bernward Kulle Wilfried Rammler Dr. Ulrich Stucke Transportation Infrastructure Public Buildings/Social Infrastructure Europe Latin America Germany United Kingdom/Ireland Wilfried
Slide 11: PPP – public infrastructure is operated today that way
PPP – public infrastructure is operated today that way HOCHTIEF Milestones • Consolidation of market position Market entrance public • Analysis of further buildings Germany markets/segments First transportation Closing of first PPP • Overview: public buildings project at – About 80 experts in four B
Slide 12: HOCHTIEF PPP Solutions’ Project Portfolio
HOCHTIEF PPP Solutions’ Project Portfolio consists of 4 Transportation and 10 Public Building Projects Toll Roads/Transportation Project Name Investment Volume HT-Stake Project Data Herren Tunnel, Germany EUR 179m 50.0 % 2 km length Vespucio Norte Express, Chile EUR 520m 45.0 % 30 km length Puentes
Slide 13: PPP’s change the profile of income streams and client relationships
PPP’s change the profile of income streams and client relationships at HOCHTIEF Our customers trust our infrastructure, each day After the scheduled beginning of operations in 2005/2006/2007, … almost 40m vehicles 78,000 citizens circa 45,000 pupils in Rosario, Santiago in Gladbeck in Germany, the U
Slide 14: Return/Risk Profile
Return/Risk Profile 14
Slide 15: Our two product market segments have differing earnings and risk profiles
Our two product market segments have differing earnings and risk profiles Toll Toll Roads/ Roads/ Public Public Buildings/ Buildings/ Transportation Transportation Infrastructure Infrastructure Social Social Infrastructure Infrastructure • Toll road SPVs are indexed asset types: • Smaller risks and
Slide 16: Characteristics of PFI and PPP (Public Buildings)
Characteristics of PFI and PPP (Public Buildings) PFI PFI in in UK UK PPP PPP in in Germany Germany (approx. (approx. 15 15 years years in in existence) existence) (1st (1st HOCHTIEF HOCHTIEF project project in in 2004) 2004) • Overall unitary charge • Separate revenues / unitary charges for constru
Slide 17: PPP Solutions pursues Stringent Market and Project Selection
PPP Solutions pursues Stringent Market and Project Selection Example: Project selection criteria for toll road projects Country Country Evaluation Evaluation Project Project Evaluation Evaluation • Controllable (preferably: no) • Solid traffic forecast by selecting currency risks the extension of ro
Slide 18: Transparent Risk Management Structures (I): Investment Committee
HOCHTIEF has Transparent Risk Management Structures (I) HOCHTIEF’s Investment Committee (IC)* Process Decision Criteria Pre-Qualification - Strategic alignment - Know-how, project structure, partners * Investment Committee Approval P3S - Legal framework • Two holding executive board Tender Phase Exa
Slide 19: Transparent Risk Management Structures (II): Project Controlling
HOCHTIEF has Transparent Risk Management Structures (II) Project Controlling • Monthly reporting of SPV to PPP Solutions • Quarterly risk management reporting to HOCHTIEF corporate headquarters • Status report of HOCHTIEF PPP Solutions to investment committee at milestones • Ad-hoc reports to manage
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