Hochtief Aktiengesellschaft · XETR:HOT
Hochtief Aktiengesellschaft — Investor Presentation (December 2003)
30 slides from Hochtief Aktiengesellschaft's investor presentation, Dec 4, 2003
Slide 1: HOCHTIEF Europe Infrastructure Division
HOCHTIEF Europe Infrastructure Division “To become the best and most innovative construction company in Europe.” Vision of the Helfmann brothers (Founders of HOCHTIEF in Frankfurt, 1875) Dr.-Ing. Martin Rohr 1
Slide 2: Content
Content 1. Corporate Structure 2. Performance and Highlights 2002/2003 3. Strategy Elements 4. Business Units: Market Segments, Facts and Figures 5. Target Markets: United Kingdom, Central & Eastern Europe 6. Outlook 2
Slide 3: Infrastructure Division
Infrastructure Division Development from regional all-rounder to global segment specialist 1993 - 1998 1999 Structuring program HOCHTIEF 2000+ 2000 – 2002 Structuring program HT Civil HT Civil (Global) Civil Engineering Tunneling Energy Water & Energy Airport Construction Transport ConstructionEnvir
Slide 4: Current Structure and Business Units
Current Structure and Business Units Infrastructure Division Work done: EUR 563.4m* Infrastructure InfrastructureEurope Europe Infrastructure Infrastructure&&Tunneling Tunneling Infrastructure InfrastructureInternational International Work done: EUR 130.9m* Work done: EUR 201.1m* Work done: EUR 231.
Slide 5: Locations of Branches
Locations of Branches Civil CivilEngineering EngineeringMarine Marine Berlin BerlinCivil/Infrastructure Civil/Infrastructure Works Works Russia Russia HOCHTIEF HOCHTIEF(UK) (UK) Civil CivilEngineering Engineering&&Water Water Polska Polska Civil CivilEngineering Engineering&&Airports, Airports, Powe
Slide 6: Opportunities in Regions and/or Segments
Opportunities in Regions and/or Segments North America: Entry into the US market and Europe: Focus on infrastructure (tunneling, ports, Canada water/wastewater, transport) in Eastern and Southeastern Europe and PPP projects Asia/ Pacific Expansion in contract mining, BOT projects Australia: Tunnelin
Slide 7: Highlights 2002/2003
Highlights 2002/2003 • Systematic progress in internationalization by merging foreign business with national civil engineering business (global market opportunities) • Expansion of know-how lead and competitive edge through creation of centers of excellence (specialization not regionality) • Cost re
Slide 8: Projects 2002/2003
Projects 2002/2003 R Herren Tunnel Lübeck, Germany R Gotthard Base Tunnel, Switzerland Contract volume: EUR 81m, BOT Contract volume: EUR 288m, work contract R Parramatta Rail Link Project, Sydney, Australia R New ICE Section Nuremberg – Ingolstadt, Germany Contract volume: EUR 238m, Design&Build co
Slide 9: Five Elements for Success
Five Elements for Success Networks/strategic alliances Networks/strategic alliances Specialization/know-how/skills Specialization/know-how/skills Risk management Risk management Innovations/integrated Innovations/integrated solutions/business models solutions/business models Market focus Market focu
Slide 10: I. Networks/Strategic Alliances
I. Networks/Strategic Alliances Networks/strategic alliances • Cross-selling with HOCHTIEF companies Networks/strategic alliances • Combine foreign direct business with national civil Specialization/know-how/skills engineering business Specialization/know-how/skills • Cooperation and experience exch
Slide 11: II. Specialization/Know-how/Skills
II. Specialization/Know-how/Skills Networks/strategic alliances • Technical expertise, e.g. tunneling, fire protection Networks/strategic alliances • Project management for complex large-scale projects Specialization/know-how/skills Specialization/know-how/skills • Design Build Finance Operate proje
Slide 12: III. Risk Management
III. Risk Management Networks/strategic alliances • Deal breaker (critical project selection according to set Networks/strategic alliances criteria): Specialization/know-how/skills - Project type and award procedure Specialization/know-how/skills - Competitiveness (potential analysis) Risk managemen
Slide 13: IV. Innovations/Integrated Solutions/Business Models
IV. Innovations/Integrated Solutions/Business Models Networks/strategic alliances Innovations/integrated solutions/business models Networks/strategic alliances Specialization/know-how/skills • Tunnel as system solution Specialization/know-how/skills • Develop the Public-Private Partnership (PPP) mar
Slide 14: V. Market Focus
V. Market Focus Networks/strategic alliances • Occupy lucrative international markets while continuing to Networks/strategic alliances tap the home (national) market Specialization/know-how/skills • Consistent development of lucrative niche markets Specialization/know-how/skills • Expansion of syste
Slide 15: Overview of Business Units
Overview of Business Units Infrastructure Europe • Not wait for market recovery but act through shift in marketing efforts • Center of excellence (tunnels, bridges, water management) Infrastructure and Tunneling • Exploit traffic growth • Expansion strategy: entry into US market Infrastructure Inter
Slide 16: Infrastructure Europe
Infrastructure Europe • Target markets Germany and Europe • Leadership in Germany in civil engineering and infrastructure • Growth in integrated rail solutions Work done by region 2002 Center of Excellence - Specialized civil Center of Excellence - Rail engineering and rail (turnkey) 33% 21% Center
Slide 17: Infrastructure Europe (Market drivers)
Infrastructure Europe (Market drivers) Cologne Rhine/Main New lines Nuremberg-Ingolstadt Passenger transport performance Europe 1998 - 2015 Traffic increase in Europe 2000 to 2015: 6.000 pkm [in billion] • Passenger sector + 20% 5.500 • Freight sector + 42% 5.000 4.500 4.000 1998 2003 2008 2013 year
Slide 18: Infrastructure and Tunneling
Infrastructure and Tunneling • Leading position worldwide in tunneling • Work done 34% higher than prior year • Innovation – new tunnel products - Tunnel as system solution - R&D - InTun (Innovative Modules for Tunneling) Work done by region 2002 Germany 23.1% Australia 3.7% Europe (w/o D) Africa 70
Slide 19: Infrastructure and Tunneling (Market drivers)
Infrastructure and Tunneling (Market drivers) Elbtunnel Gotthard Base Tunnel Metro Athens • Boom through traffic growth Planed tunnel projects in Europe, status 2003 - Total length of planned tunnel projects in Europe: 1,500 km km 700 - Target markets: Alpine countries, Eastern Europe, North 600 Ame
Slide 20: Infrastructure International
Infrastructure International Marine Works è Global port construction expertise Power and Water è Decades of experience in the utility and waste disposal sectors Airports è Construction and operation of major international airports International mega-projects è Taiwan High Speed Rail (EUR 818m) Outpu
Slide 21: Infrastructure International (Market drivers power)
Infrastructure International (Market drivers power) Power plant construction Power Worldwide primary energy consumption (in 1,000 TWh) § Power plant replacement demand in 200 Europe*: 2010 to 2020 200 000 MW 150 § Trading of CO2 emission rights in Europe 100 from 2005 50 - Modernization and new buil
Slide 22: Infrastructure International (Market drivers mobility)
Infrastructure International (Market drivers mobility) Taiwan High Speed Rail Airports Passengers/Freight growth in % Airports +127% § Main markets: Europe, Asia Pacific, North America 200 +89% § Capital expenditure up to 2020: 2001 USD 267.5bn (global) 2020 100 § Growth rate: - Passengers: +3.4% p.
Slide 23: Infrastructure International (Market drivers water/wastewater)
Infrastructure International (Market drivers water/wastewater) Katse Dam Mohale Dam Lesotho Highlands Water Project Water/wastewater market Europe 2% 11% North America Asia Global investment requirement up to 2010: 87% EUR 600bn, of which approx. 50 percent 87% 2000 total water supply modernization
Slide 24: Target Markets - HOCHTIEF UK
Target Markets - HOCHTIEF UK Paddington Bridge Channel Tunnel Rail Link Established in 1990 Headquarters § Very wide expertise and experience in civil engineering Swindon, Wiltshire § Track record in operating in all industry sectors § Innovative approach to both small and large projects 24
Slide 25: Target Markets - HOCHTIEF UK
Target Markets - HOCHTIEF UK • Structuring for further growth • Entry and establishment in PFI market • Focus on upcoming major infrastructure projects in London region • HOCHTIEF UK work done 2002: EUR 79m • Key areas: Transport infrastructure, water and wastewater facilities, industrial constructi
Slide 26: Target Markets - HOCHTIEF UK (Market drivers)
Target Markets - HOCHTIEF UK (Market drivers) Guernsey Airport CCGT Power Station Output Infrastructure UK (bn GBP) 8 • UK civil engineering market 2003 EUR 9.3bn Forecast 2004 +5% 7 Forecast 2005 +7% 6 • Upcoming large-scale projects in infrastructure sector (rail transport, Terminal 5 Heathrow Air
Slide 27: Target Markets - Central & Eastern Europe
Target Markets - Central & Eastern Europe Central Central & & Eastern Eastern Europe Europe HOCHTIEF HOCHTIEF Polska Polska HOCHTIEF HOCHTIEF VSB VSB Major Major International International Warsaw Warsaw Prague Prague Projects, Projects, Moscow Moscow •• Successful Successful early early market mark
Slide 28: Target Markets - Central & Eastern Europe (Market drivers)
Target Markets - Central & Eastern Europe (Market drivers) International Airport Prague, Finger C Terminal 2 Temelin Nuclear Power Plant Civil construction output 2002 8 • Large pent-up demand in infrastructure segment EUR bn. Annual growth rates 2003-2005 • Opportunities for PPP expertise between 3
Slide 29: Outlook (1)
Outlook (1) • Systematically continue our international expansion. Key areas: Entry into Eastern European and North American infrastructure markets (regional growth markets). Cement our position in the UK (PFI market) • Expand our expertise in construction management, offer end-to-end and complex so
Slide 30: Outlook (2)
Outlook (2) • (Global) entry into privately financed motorway construction (A and F models) and the PPP market (future models) • Further develop and strengthen our skills in specialized civil and rail engineering (specialization, preference-based competition) • Contract Mining (growth market) 30
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