Hochtief Aktiengesellschaft · XETR:HOT
Hochtief Aktiengesellschaft — Leighton Holdings — Investor Day (March 2003)
38 slides from Hochtief Aktiengesellschaft's investor day presentation, March 2003
Slide 1: HOCHTIEF Investor Relations Welcomes You to the Capital Markets Day
HOCHTIEF INVESTOR RELATIONS WELCOMES YOU TO THE CAPITAL MARKETS DAY 1
Slide 2: HOCHTIEF Capital Markets Day
HOCHTIEF CAPITAL MARKETS DAY WAL KING, CEO MARCH 2003 2
Slide 3: Group Overview
GROUP OVERVIEW 3
Slide 4: Group Profile and Structure
GROUP PROFILE AND STRUCTURE 4
Slide 5: Group Profile
GROUP PROFILE § Largest contracting and project development group in Australia § Employs over 15,000 people throughout Australia, Asia and Pacific § Annual revenue this year expected to be around $5.7 billion § $10 billion work in hand § Strong balance sheet with total assets of $2.1 billion and net
Slide 6: Corporate Mission
CORPORATE MISSION § Leighton Holdings’ purpose is to maintain and further develop a diversified contracting and project development business which is profitable, financially sound and creates wealth for shareholders § Its geographic limits are Australia and the Asia Pacific region 6
Slide 7: Core Values
CORE VALUES Our core values are that we: § Act with integrity and fairness § Recognise the needs of the community § Are commercially competitive § Foster a performance-driven culture § Create a safe, challenging and fun workplace § Encourage innovation and technological leadership 7
Slide 8: Key Markets
KEY MARKETS § Engineering and infrastructure § Mining and resources § Building and property § Telecommunications § Environmental services § Operations and maintenance 8
Slide 9: Group Structure
GROUP STRUCTURE HOCHTIEF Other (50.3%) (49.7%) Leighton Holdings Leighton Leighton Asia Asia Leighton Leighton Thiess (Northern) (Southern) Contractors Properties John Holland (100% owned) (100% owned) (100% owned) (100% owned) (100% owned) (70% owned) §§PT PT Thiess Thiess §§Vytel Vytel Asia Asia §
Slide 10: History
HISTORY 1949 - Leighton founded by Stanley Leighton 1962 - Listed on ASX 1972 - Leighton Contractors established as principal operating subsidiary - Started operating in Asia 1975 - Established regional HQ in Hong Kong 1983 - Acquired Queensland based Thiess Contractors - HOCHTIEF became major share
Slide 11: History Continued
HISTORY CONTINUED 1988 - Thiess re-established presence in Indonesia 1989 - Leighton Asia established office in Thailand 1993 - Sold 20% of Leighton Asia to HOCHTIEF 1995 - Leighton Asia establised offices in Malaysia and Vietnam 1996 - Leighton Asia established office in the Philippines - Leighton
Slide 12: History Continued
HISTORY CONTINUED 1998 - Thiess established a presence in South America 2000 - Acquired 70% John Holland Group - Bought back HOCHTIEF’s 20% of Leighton Asia 2002 - Restructured Leighton Asia into Northern and Southern regions 2003 - John Holland acquired Transfield Construction - Thiess closes South
Slide 13: Competitors - Profit After Tax
$m $m 120 150 180 -60 -30 30 60 90 00 120 150 180 -60 -30 30 60 90 ## Doesn’t Leighton Doesn’t include Downer EDI Downer EDI at Bovis Bovis Lend Lend Lease (Asia-Pacific) Lease (Asia-Pacific) at 31 include Transfield Multiplex Multiplex 31 Dec Clough Clough Transfield Services Dec 2001 2001 United G
Slide 14: Competitors - Operating Revenue
$m $m 1000 2000 3000 4000 5000 6000 1000 2000 3000 4000 5000 6000 ## Doesn’t Leighton Doesn’t include Downer EDI Downer EDI at Multiplex Multiplex at 31 include Transfield Bovis Bovis Lend Lend Lease (Asia-Pacific) Lease (Asia-Pacific) 31 Dec Transfield Services Henry Walker Henry Walker Dec 2001 20
Slide 15: Competitors - Work in Hand
$m $m 1000 2000 3000 4000 5000 6000 7000 8000 9000 1000 2000 3000 4000 5000 6000 7000 8000 Leighton 9000 Downer EDI Downer EDI at Multiplex Multiplex at 31 Henry Walker Henry Walker 31 Dec Clough Clough Dec 2001 2001 United Group United Group Walter Walter at Baulderstone Hornibrook Baulderstone Hor
Slide 16: Strategy
STRATEGY 16
Slide 17: Strategy Delivering Results
STRATEGY DELIVERING RESULTS Geography Brands Markets/ Delivery Products Systems 17
Slide 18: Areas of Operation
AREAS OF OPERATION LAOS HONG KONG THAILAND VIETNAM PHILIPPINES MALAYSIA SINGAPORE INDONESIA AUSTRALIA NEW ZEALAND 18
Slide 19: Work in Hand by Geography
WORK IN HAND BY GEOGRAPHY at at 31 31 Dec Dec 2002 2002 Geography Work in hand – Australia $6,591m – Asia $1,994m – South America $4m 19
Slide 20: Work in Hand by Market
WORK IN HAND BY MARKET at at 31 31 Dec Dec 2002 2002 Work in hand – Engineering & infrastructure $2,541m – Mining & resources $4,210m – Building & property $1,083m – Telecommunications $341m – Environmental $414m Markets/ Products 20
Slide 21: Work in Hand by Company
WORK IN HAND BY COMPANY at at 31 31 Dec Dec 2002 2002 Work in hand – Thiess $4,462m – Leighton Contractors $2,064m – Leighton Asia $1,228m – John Holland $835m – Leighton Properties - Brands 21
Slide 22: Delivery Systems
DELIVERY SYSTEMS § Offer full range of delivery systems § Balance risk and reward § Trend towards alliancing § Use balance sheet to secure major developments/BOOT projects § Hard dollar tender work important to remain competitive 22
Slide 23: Work in Hand by Delivery Systems
WORK IN HAND BY DELIVERY SYSTEMS at at 31 31 Dec Dec 2002 2002 Work in hand – Competitive $4,154m – Negotiated $2,355m – Project development $2,080m Delivery Systems 23
Slide 24: Financial Strength
FINANCIAL STRENGTH § Fundamental part of our strategy § Facilitates development projects § Allows opportunistic acquisitions § Attracts the best business partners § Supports $1 billion bonds and guarantees § Supports large investment in plant and equipment 24
Slide 25: Our People
OUR PEOPLE § Over 15,000 people across the Group § Provide quality of service for clients’ § Performance driven culture § Reward performance against objectives 25
Slide 26: Operating Principles
OPERATING PRINCIPLES § Decentralised corporate structure § Individual market position for companies § Financial strength, controls and risk mgmt § Management leadership, results orientation and flexibility § Remuneration and incentives to attract and retain staff § Core values include ethics, commun
Slide 27: Financial Performance
FINANCIAL PERFORMANCE 27
Slide 28: Half Year Highlights
HALF YEAR HIGHLIGHTS Dec 02 Dec 01 % $m $m change Total revenue 2,622 2,438 8 New contracts, extensions & variations 2,692 2,325 16 Value of work in hand 8,589 7,793 10 Operating profit before tax 107.8 94.7 14 Operating profit after tax 71.0 67.3 6 Dividends per ord share 17¢ 16¢ 6 28
Slide 29: Profit After Tax
PROFIT AFTER TAX $m $m at at 30 30 June June at at 31 31 December December 200 200 150 150 100 100 50 50 93/4 94/5 93/4 94/5 95/6 95/6 96/7 96/7 97/8 98/9 99/00 97/8 98/9 00/1 01/2 99/00 00/1 01/2 02/3 02/3 29
Slide 30: Total Revenue
TOTAL REVENUE $m $m at at 30 30 June June at at 31 31 December December 6000 6000 5000 5000 4000 4000 3000 3000 2000 2000 1000 1000 93/4 94/5 95/6 93/4 94/5 95/6 96/7 96/7 97/8 97/8 98/9 99/00 00/1 98/9 99/00 00/1 01/2 01/2 02/3 02/3 30
Slide 31: Performance Indicators
PERFORMANCE INDICATORS Dec 02 Dec 01 Ratios - profit before tax/ Sales revenue 4.6% 4.0% - EPS 26.3¢ 25.2¢ - NTA $3.13 $2.76 Depreciation $169.9m $147.2 31
Slide 32: Geographic Split
GEOGRAPHIC SPLIT Dec 02 Dec 01 $m $m Total revenue - Australia/Pacific 1,949 1,725 - Asia 489 630 - Americas 42 43 Profit before tax - Australia/Pacific 81.9 59.5 - Asia 28.3 25.9 - Americas (15.6) 12.0 32
Slide 33: Work in Hand
WORK IN HAND $m $m at at 30 30 June June at at 31 31 December December 9000 9000 8000 8000 7000 7000 6000 6000 5000 5000 4000 4000 3000 3000 2000 2000 1000 1000 93/4 94/5 93/4 94/5 95/6 95/6 96/7 96/7 97/8 98/9 99/00 97/8 98/9 00/1 01/2 99/00 00/1 01/2 02/3 02/3 33
Slide 34: Balance Sheet – Assets
BALANCE SHEET – ASSETS Dec 02 Dec 01 $m $m Cash 270 445 Receivables 819 595 Inventories 66 162 Other financial assets 111 77 Investments 77 16 Property, plant & equip 618 588 Other 141 125 Total Assets 2,102 2,008 34
Slide 35: Balance Sheet – Liabilities
BALANCE SHEET – LIABILITIES Dec 02 Dec 01 $m $m Payables 946 920 Provisions 218 175 Interest bearing liabilities 48 96 Other 11 39 Total Liabilities 1,223 1,230 Net Assets 879 778 35
Slide 36: Overview of Financial Position
OVERVIEW OF FINANCIAL POSITION Dec 02 Dec 01 Cash ($m) 270 445 Total assets ($m) 2,102 2,008 Gross debt ($m) 48 96 Net cash ($m) 222 349 Members equity ($m) 869 776 Return on equity* (%) 8.2 8.7 Return on assets* (%) 3.4 3.3 *Return *Return for for six six month month period period only only 36
Slide 37: Comparison with Peers
COMPARISON WITH PEERS Leighton Peers Total equity to total assets 34.3% 23.6% Total liabilities to total equity 191.2% 324.4% Gross borrowing to total equity 7.2% 98.2% Net borrowings to total equity (11.7%) 56.7% Interest times covered 35 3 Source: Source: ABN-AMRO ABN-AMRO Rothschild Rothschild da
Slide 38: 10 Year Share Price Performance
10 YEAR SHARE PRICE PERFORMANCE Scale* Scale* Leighton Leighton All All Ords Ords 99 88 77 66 55 44 33 22 11 0 Jan Jan Jan Jan Jan Jan Jan Jan Jan Jan Jan Jan Jan Jan Jan Jan Jan Jan Jan Jan Mar Mar 93 93 94 94 95 95 96 96 97 97 98 98 99 99 00 00 01 01 02 02 03 03 ** All All measures measures scaled