Hochtief Aktiengesellschaft · XETR:HOT
Hochtief Aktiengesellschaft — Non-Deal Roadshow (May 2003)
68 slides from Hochtief Aktiengesellschaft's roadshow presentation, May 2003
Slide 1: HOCHTIEF - building value on sound foundations
HOCHTIEF - building value on sound foundations Full year 2002 and first quarter results 2003 Dr. Hans-Peter Keitel (CEO) Roadshow May/June/July 2003 Dr. Hans-Georg Vater (CFO) 1
Slide 2: HOCHTIEF excellent position
HOCHTIEF excellent position International construction services provider ->design, financing, building and operating of complex projects Outstanding global network (% of total work done 2002) -> America 53% Asia Pacific 25% Germany 16% Top player in all major markets - sole German Constructor in the
Slide 3: Regional breakdown - work done (as percentage of total)
Regional breakdown - work done (as percentage of total) Germany 2002 EUR 2,057m (16%) 2001 EUR 2,395m (18%) Rest of Europe 2002 EUR 760m (6%) 2001 EUR 561m (4%) America 2002 EUR 6,727m (53%) 2001 EUR 7,214m (56%) Africa Asia/Pacific 2002 EUR 15m (<1%) 2002 EUR 3,223m (25%) 2001 EUR 25m (<1%) 2001 EU
Slide 4: HOCHTIEF Group structure 2003
HOCHTIEF Group structure 2003 HOCHTIEF AG Financial Participations Germany HOCHTIEF HOCHTIEF HOCHTIEF HOCHTIEF HOCHTIEF AIRPORT DEVELOPMENT CONSTRUCTION SERVICES CONSTRUCTION SERVICES CONSTRUCTION SERVICES AMERICAS ASIA PACIFIC EUROPE HOCHTIEF HOCHTIEF Projekt- The Turner Corporation Leighton HOCHTI
Slide 5: Our world: Airport
HOCHTIEF – Our world: Airport HT Airport ->Consulting and management of airports and airport concessions ->Athens, Düsseldorf, Hamburg, Sydney ->almost 60 million passengers in 2002 Top left: Athens airport Top right: Düsseldorf airport Bottom left: Hamburg airport Bottom right: Sydney airport HTA -
Slide 6: Our world: Development
HOCHTIEF – Our world: Development HT Development ->Real estate and infrastructure project development, facility management and asset management ->Germany, Poland, Luxembourg, Hungary, Greece Top left: Office park Gruga, Essen Top right: Prisma building, Frankfurt Bottom left: Herrentunnel, Lübeck Bo
Slide 7: Our world: Construction Services Americas
HOCHTIEF – Our world: Construction Services Americas HT Americas ->General building, construction mgmt., construction related services ->U.S.A., Canada, Brazil ->Turner in the U.S. #1 in Commercial offices, Sports, data centers, web hotels #2 in Pharmaceuticals, multi-unit residential, entertainment
Slide 8: Our world: Construction Services Asia Pacific
HOCHTIEF – Our world: Construction Services Asia Pacific HT Asia Pacific ->Project development, construction, contract mining and infrastructure services ->Australia, Asia Pacific Top left: Gold mine, Australia Top right: Awoonga Dam, Australia Bottom left: Power station Vietnam Bottom right: Inner
Slide 9: Our world: Construction Services Europe
HOCHTIEF – Our world: Construction Services Europe HT Europe ->Construction (civil and building) ->Germany, Luxembourg, Austria, UK, Poland, Czech Republic, Russia Top left: St. Gotthard tunnel Top right: Skyline Frankfurt Bottom left: Great Belt East bridge, Denmark Bottom right: High speed railway
Slide 10: Key strategies for further value enhancement
Key strategies for further value enhancement I) Strengthening of international orientation II) Expansion into service-related activities III) Portfolio optimization t en nc e ha alu em IV) Ongoing generation of Group synergies en V V) German Construction restructuring ROCE medium-term target: >14% 2
Slide 11: Strengthening of international orientation
I) Strengthening of international orientation Strong growth in international markets -> Group work done outside Germany: 1992: 28% 1997: 48% 2002: 84% 2nd most international construction group globally Advantage from global experience -> fast turn-around of German construction business also based on
Slide 12: HOCHTIEF - an international leader
HOCHTIEF - an international leader 2001 Sales (USD bn) 2002 Work done (EUR m) 14.000 18 16 Top Global Contractors 12.000 Top German Contractors 14 10.000 12 8.000 10 6.000 8 6 4.000 4 2.000 2 0 0 HOCHTIEF Bilfinger Berger Walter Strabag Zueblin Vinci Skanska Bouygues Kajima HOCHTIEF 2001 Sales (USD
Slide 13: Expansion into service-related activities
II) Expansion into service-related activities Airport Management -> sound platform with Athens, Düsseldorf, Hamburg and Sydney Public Private Partnership (PPP) -> EUR 45bn toll road project tenders expected globally until 2003 with over EUR 5.5bn in German PPP projects alone -> HOCHTIEF: 17 PPP proj
Slide 14: Services focus
Services focus Services % contribution to work done Contribution in 2002: 60% 50% Development: 5% 50% Airport: < 1% 40% 29% Telecommunications: 30% 2% 20% Contract Mining: 8% 10% Other: 4% 0% Construction 2002 2007E Management at fee: 29% 9% Service activities steadily increase importance for the ov
Slide 15: Portfolio optimization
III) Portfolio optimization M&A 2002 -> acquisition of 15% stake in Sydney airport (EUR 183m) -> increase stake in Hamburg airport to 49% (EUR 101m) -> disposal of Monachia real estate (EUR 200m cash) Restructuring programs -> German construction business -> Ballast Nedam -> HT Polska Redeploy capit
Slide 16: Ongoing generation of Group synergies
IV) Ongoing generation of Group synergies Use synergy effects through strong integration and continues world-wide co-operation -> International Committee, Management Committee -> global key account management -> risk management techniques (e.g. contract review committee) -> PreFair concept for Europ
Slide 17: German Construction restructuring
V) German Construction restructuring 2001: development of 10-point restructuring program -> contract review committee -> efficient branch network -> building in partnership (PreFair concept) 2002: successful implementation of program measures -> significant reduction of capacities -> focus on profit
Slide 18: Key figures 1998 – 2002
Key figures 1998 – 2002 (EUR m) 1998 1999 2000 2001 2002 New orders 6,311 12,708 14,073 14,179 1 4 , 4 3 0 Work done 6,274 8,424 13,025 12,978 1 2 , 7 8 2 Sales 3,304 5,085 9,586 12,171 1 2 , 0 0 7 Earnings after tax 187 205 127 78 90 Total assets 4,444 5,983 6,569 8,016 7,611 Marketable securities/
Slide 19: Outlook 2003
Outlook 2003 Operational level: - Airport: Slight increase in operating earnings - Development: Slight increase in operating earnings (Monachia adjusted) - Americas: Slight decrease in operating earnings (currency impact) - Asia Pacific: Slight increase in operating earnings - Europe: German constru
Slide 20: HOCHTIEF - building value on sound foundations
HOCHTIEF - building value on sound foundations We will strengthen our international orientation. We will grow our profitable businesses, particularly the services sector. We will continue to spearhead innovation in our industry. We will enhance the benefits of our global network. We expect Construct
Slide 21: Full year results 2002
HOCHTIEF Full year results 2002
Slide 22: Highlights 2002
Highlights 2002 - New orders up by 1.8% to EUR 14.4bn - Order backlog of more than EUR 14bn (+1.8%) - Operating earnings up by 19% to EUR 156m - Earnings after tax +16% (EUR 90m) - Net income increased by more than 80% to EUR 43m - Dividend increased by 10% to EUR 0.55 (proposal) 22 22
Slide 23: Key drivers in 2002
Key drivers in 2002 Positives: Construction: Significant reduction of losses in Germany Americas: Record earnings at Turner Asia Pacific: Again a strong contribution to the Group Airport: Management fee for successful acquisition of Sydney Airport Development: Sale of real estate company Monachia Ne
Slide 24: Full year results 2002
Full year results 2002 (EUR m) Jan-Dec Jan-Dec change 2002 2001 absolute % - Significant reduction of losses at HT New orders 14,430 14,179 +251 +2 Construction Work done 12,782 12,978 -196 -2 - Sale of Monachia Order backlog 14,075 13,828 +247 +2 - Stable earnings at Turner and Leighton External sa
Slide 25: Divisional breakdown
Divisional breakdown New orders (EUR m) Work done (EUR m) 16000 14.000 Airport Airport 14000 12.000 12000 Construction Construction 10.000 10000 Development Development 8.000 8000 Americas Americas 6.000 6000 Asia Pacific Asia Pacific 4000 4.000 International International 2000 2.000 Other Other 0 0
Slide 26: Airport
Airport (EUR m) Jan-Dec Jan-Dec % change Key drivers 2 0 0 2 2001 • New orders: Sydney airport management New orders 22 12 +83 fee contribution Work done 22 12 +83 • CAPEX: investments in Hamburg Airport Sales 21 0.5 +4100 (EUR 107m) and EBITDA 12 11 +9 Sydney Airport (EUR 61m*) EBITDA margin (%) 57
Slide 27: Construction
Construction (EUR m) Jan-Dec Jan-Dec % change Key drivers: 2 0 0 2 2001 • New orders: increased despite tighter risk New orders 2,333 2,159 +8 control (low 2001 basis) Work done 2,004 2,372 -16 • Work done: reduced volume and scaled Order backlog 2,654 2,364 +12 down capacities to the volume of appr
Slide 28: Development
Development (EUR m) Jan-Dec Jan-Dec % change Key drivers: 2 0 0 2 2001 • Work done/sales: major projects completed: Central Park Frankfurt (EUR New orders 700 643 +9 59m), Westsite Munich (EUR 43m) Work done 504 401 +26 Order backlog 827 631 +31 • Operating earnings: EUR 90m net profit Sales 447 310
Slide 29: Americas
Americas (EUR m) Jan-Dec Jan-Dec % change Key drivers: 2 0 0 2 2001 • New orders: Turner in USD with high and steady figures (USD 7bn) New orders 7,436 7,991 -7 Work done 6,724 7,197 -7 • Work done/sales: increased share of Order backlog 5,770 6,091 -5 construction management projects Sales 6,454 6,
Slide 30: Asia Pacific
Asia Pacific (EUR m) Jan-Dec Jan-Dec % change Key drivers: 2 0 0 2 2001 • New orders: strong increase due to several big projects New orders 3,554 2,966 +20 Work done 3,072 2,705 +14 • Order backlog: record high at Leighton Order backlog 4,558 4,385 +4 Holdings Sales 3,138 2,756 +14 • Operating earn
Slide 31: International
International Key drivers: (EUR m) Jan-Dec Jan-Dec % change 2 0 0 2 2001 • New orders: reduced capacities, selective order intake and difficult markets New orders 299 408 -27 • Work done/sales: increase due to several Work done 370 291 +27 big projects (Lesotho Highlands Water Order backlog 266 357
Slide 32: Cash flow
Cash flow Key drivers: Jan-Dec 2002 2 0 0 1 % change • Operating activities: strong (EUR m) increase due to significant cut in losses from German construction Cash flow 374 160 +134 activities, cash inflow from Net cash used in/provided by operating activities 503 233 +116 Monachia sale and changes
Slide 33: Consolidated balance sheet
Consolidated balance sheet Assets Liabilities Key drivers 31 Dec ‘02 31 Dec ‘01 31 Dec ‘02 31 Dec ‘01 • Overall negative impact of EUR/USD exchange rate (in EUR: Turner balance sheet decreased by 14%) Shareholders‘ 1,940 2,175 equity and • Fixed assets: 2,233 2,218 (27%) minority Fixed Assets (25%)
Slide 34: Performance indicators
Performance indicators 2002 2001 % change (% unless stated) EBITDA margin 3.5 3.1 +13 Operating earnings margin 1.3 1.1 +18 EPS (EUR) 0.69 0.38 +82 ROCE 9.2 8.2 +12 HOCHTIEF - returning to former profitability. 34 34
Slide 35: First quarter results 2003
First quarter results 2003 35 35
Slide 36: Results first quarter 2003
Results first quarter 2003 - New orders of EUR 3.9bn (-4%) - adjusted for currency impacts: +10% - domestic: -21% (selective order intake) - international: -2% (solely due to currency impacts) - Order backlog of almost EUR 15bn (-1%) - Asia Pacific at record level with EUR 5.6bn - Operating earnings
Slide 37: Key drivers in the first quarter 2003
Key drivers in the first quarter 2003 Operational level: Airport: Participation in airports has developed better than expected Development: Leading position in property development Americas: Negative impact of uncertain markets and currency effects Asia Pacific: High order backlog secures 2003 earni
Slide 38: First quarter figures 2003
First quarter figures 2003 (EUR m) Jan-Mar Jan-Mar% change 2003 2002 Key drivers: Strong decrease in net New orders 3,896 4,071 -4 income (-121%) since 2002 Work done 2,826 3,093 -9 figure included: Order backlog 14,983 15,107 -1 - EUR 57m (EUR 157m ./. EUR Sales 2,656 3,028 -12 100m risk provision)
Slide 39: Regional breakdown - work done first quarter
Regional breakdown - work done first quarter (as percentage of total) Germany 2003 EUR 436m (16%) 2002 EUR 412m (13%) Rest of Europe 2003 EUR 165m (6%) 2002 EUR 134m (5%) America 2003 EUR 1,412m (50%) 2002 EUR 1,742m (56%) Africa Asia/Pacific 2003 EUR 7m (<1%) 2003 EUR 806m (28%) 2002 EUR 2m (<1%) 2
Slide 40: Divisional breakdown
Divisional breakdown New orders % change Work done % change Jan-Mar (EUR m) 2003 2002 Jan-Mar (EUR m) 2003 2002 Airport 0.3 1.5 -80 Airport 0.3 1.5 -80 Development 60 156 -62 Development 111 87 +28 Americas 1,742 2,725 -36 Americas 1,411 1,743 -19 Asia Pacific 1,658 656 +153 Asia Pacific 757 775 -2
Slide 41: Airport
Airport (EUR m) Jan-Mar Jan-Mar % change Key drivers: 2 0 0 3 2002 • New orders/work done: 2002 figures include internal service fees New orders 0.3 1.5 -80 Work done 0.3 1.5 -80 • EBITDA/op. earnings: strong increase Sales 0.3 0.2 +50 since 2003 includes 1Q Sydney dividend EBITDA 9.2 0.5 +1740 (EUR
Slide 42: Development
Development (EUR m) Jan-Mar Jan-Mar % change Key drivers: 2 0 0 3 2002 • New orders: weak real estate and property development market New orders 60 156 -62 Work done 111 87 +28 • Work done/sales: major office projects Order backlog 784 700 +12 started: BMW Center Munich and Sales 110 69 +59 Siemens
Slide 43: Construction Services Americas
Construction Services Americas (EUR m) Jan-Mar Jan-Mar % change Key drivers: 2 0 0 3 2002 • New orders: unstable market and currency impact (Turner in USD 1.9bn, - New orders 1,742 2,725 -36 19%), still several major projects in health Work done 1,411 1,743 -19 care and education segment Order backl
Slide 44: Construction Services Asia Pacific
Construction Services Asia Pacific (EUR m) Jan-Mar Jan-Mar % change Key drivers: 2 0 0 3 2002 • New orders: several big projects already in the first quarter (Western Sydney New orders 1,658 656 +153 Obital EUR 830m (HT stake 50%), Work done 757 775 -2 Sydney office buildings EUR 330m, Order backlog
Slide 45: Construction Services Europe
Construction Services Europe (EUR m) Jan-Mar Jan-Mar % change Key drivers: 2 0 0 3 2002 • New orders: selective order intake but successful in specific market segments New orders 418 533 -22 e.g. retail property sector (EUR 110m Work done 529 487 +9 contracts) Order backlog 2,796 2,756 +1 Sales 420
Slide 46: Cash flow
Cash flow Key drivers: Jan-Mar 2003 2 0 0 2 % change • Cash flow: 2002 figure includes (EUR m) EUR 57m Monachia effect Cash flow 67 123 -46 • Operating activities: decrease Net cash used in/provided by operating activities -35 -3 -1067 due to Monachia (in 2002 Net cash used in investing activities -
Slide 47: Consolidated balance sheet
Consolidated balance sheet Assets Liabilities Key drivers 31 Mar ‘03 31 Dec ‘02 31 Mar ‘03 31 Dec ‘02 • Negative impact of EUR/USD exchange rate leads to a decrease of EUR 70m in total balance volume 1,917 1,940 Shareholders‘ 2,266 2,233 (25%) (25%) equity and • Marketable securities and cash: (30%)
Slide 48: Appendix 1 (Full year results 2002)
- Appendix 1 - (Full year results 2002) 48 48
Slide 49: Breakdown Airport
Breakdown Airport Passengers (mio.) Air traffic movements Sales (EUR m) Aviation Non-Aviation Total Jan - Dec 2 0 0 2 2 0 0 1 % change 2002 2 0 0 1 % change % change % change % change 2002 2001 2002 2001 2002 2001 Düsseldorf* 1 1 4 . 7 5 15.40 -4.2 190,256 193,514 -1.7 2 0 1 . 1 6211.90 -5.1 9 1 . 2
Slide 50: Breakdown Construction
Breakdown Construction (EUR m) New orders Sales EBITDA Op. earnings Jan-Dec 2002 2 0 0 1 % change 2002 2 0 0 1 % change 2002 2 0 0 1 % change 2002 2 0 0 1 % change Building 1,404 1,504 -7 1,197 1,463 -18 -99 -168 +41 -107 -178 +40 Civil 884 600 +47 255 359 -29 -1 15 -103 -3 11 -125 Streif Baulogisti
Slide 51: Breakdown Development
Breakdown Development (EUR m) New orders Sales EBITDA Op. earnings Jan - Dec. 2002 2 0 0 1 % change 2002 2 0 0 1 % change 2002 2 0 0 1% change 2002 2 0 0 1 % change Infrastructure 2 1 +100 2 4 -50 -6 -3 -100 -6 -3 -100 Real estate 458 522 -12 321 249 +29 21 28 -25 18 13 +38 Facility Mgmt. 89 81 +10
Slide 52: Breakdown Americas
Breakdown Americas (EUR m) New orders Sales EBITDA Op. earnings Jan - Dec. 2002 2 0 0 1 % change 2002 2 0 0 1 % change 2002 2 0 0 1% change 2002 2 0 0 1 % change Turner 7,303 7,889 -7 6,399 6,841 -6 126 130 -3 102 106 -4 Aecon - - - - - - 4 3 +33 4 3 +33 Kitchell - - - - - - 3 2 +50 3 2 +50 Argentin
Slide 53: Breakdown International
Breakdown International * Others mainly comprises HT Russia and consolidation effects. 53 53
Slide 54: Reconciliation earnings from operating activities to EBT
Reconciliation earnings from operating activities to EBT 54 54
Slide 55: Profit and loss account for 2002 by division
Profit and loss account for 2002 by division 55 55
Slide 56: Detailed cash flow
Detailed cash flow Jan-Dec 2002 2001 (EUR ’000) Net income 43,312 23,865 Minority shareholders’ interests 46,955 54,151 Earnings after taxes 90,267 78,016 Depreciation/write-ups 352,010 267,657 Changes in long-term provisions -8,744 -5,407 Changes in deferred taxes -90,923 -96,473 Other cash income
Slide 57: Appendix 2 (First quarter results 2003)
- Appendix 2 - (First quarter results 2003) 57 57
Slide 58: Breakdown Airport
Breakdown Airport *1 Fiscal year at Sydney Airport runs from 1 July to 30 June. *2 No goodwill amortization at the airports itself, therefore EBIT=EBITA (op. earnings). *3 Sale and lease back of parking facilities (Volume EUR 60m) in 2003. Airport figures are incorporated in the divisional figures o
Slide 59: Breakdown Development
Breakdown Development * consolidation effect 59 59
Slide 60: Breakdown Construction Services Americas
Breakdown Construction Services Americas 60 60
Slide 61: Breakdown Construction Services Europe
Breakdown Construction Services Europe 61 61
Slide 62: Detailed cash flow
Detailed cash flow Jan-Mar 2003 2002 (EUR ’000) (EUR ’000 Net income -16,140 74,607 Minority shareholders’ interests 17,110 13,840 Earnings after taxes 970 88,447 Depreciation/write-ups 63,299 65,375 Changes in long-term provisions -2,772 0,670 Changes in deferred taxes 9,762 -55,366 Other cash inco
Slide 63: Reconciliation earnings from operating activities to EBT
Reconciliation earnings from operating activities to EBT 63 63
Slide 64: Profit and loss account by division
Profit and loss account by division * Sales figures represent total sales by division (external plus intersegment sales) 64 64
Slide 65: Appendix 3 (General information)
- Appendix 3 - (General information) 65 65
Slide 66: PreFair
PreFair The key advantages: • Firm budgets, time schedules and quality assurance at the earliest possible moment • Optimum planning phase, minimum project duration • Access to the project execution skills of HOCHTIEF Construction at the earliest stages • Reduced risk of contract variations • Custome
Slide 67: Shareholder structure
Shareholder structure RWE <50% >50% Allianz Holding Free float Allianz Leben Münchener Rück Commerzbank Pan <50% >50% ~30% <40% Francommerz <30% HOCHTIEF (70 million shares ./. ~10% treasury stock = ~63 million shares outstanding) 67 67
Slide 68: Financial calendar
Financial calendar 26 August 2003 Half year results 2003 and analyst and investor conference 19 November 2003 Third quarter results 2003 and conference call 16 February 2004 Preliminary results 2003 31 March 2004 Full year results 2003 and analyst and investor conference HOCHTIEF Aktiengesellschaft
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