Hochtief Aktiengesellschaft · XETR:HOT
Hochtief Aktiengesellschaft — Leighton Holdings — Investor Presentation (January 2004)
37 slides from Hochtief Aktiengesellschaft's investor presentation, January 2004
Slide 1: Media presentation
media presentation essen, january 2004
Slide 2: Presentation outline
presentation outline - Overview - Group strategy - Australian market outlook - Asian market outlook
Slide 3: Group profile
group profile - Australia’s largest project development and contracting group - Employ more than 15,000 staff - Operate throughout Australia, Asia and the Pacific - Annual revenue in excess of $6.0 billion for 2003/04 - Work in hand of approx $12.5 billion - Strong balance sheet
Slide 4: Financial highlights
financial highlights Jun 03 $m Total revenue 5,620 New contracts, extensions & variations 6,802 Value of work in hand 9,662 Operating profit before tax 209.8 Operating profit after tax 140.0 Earnings per ord share 52¢ Dividends per ord share 44¢
Slide 5: Total operating revenue and operating profit
total operating operating profit revenue $m after tax $m 5620 169.2 5275 156.2 140.0 4356 134.1 121.8 3577 3328 99 00 01 02 03 99 00 01 02 03
Slide 6: Total assets and cash net of borrowings
cash net of total assets $m borrowings $m 2318 524 2163 2050 400 1729 371 1576 271 250 99 00 01 02 03 99 00 01 02 03
Slide 7: Return on average shareholders' funds
return on average return on average shareholders’ funds shareholders’ funds before tax % after tax % 30.7 31.6 30.6 28.9 27.0 22.3 22.1 20.5 21.1 16.8 99 00 01 02 03 99 00 01 02 03
Slide 8: 10 year share price performance
10 year share price performance 600 500 400 Leighton share price 300 200 100 all ordinaries index 93 94 95 96 97 98 99 00 01 02 03 04 performance scaled to 100 January 1994 – January 2004
Slide 9: Work in hand
work in hand A$m at 31 December December at 30 June 12000 10000 8000 6000 4000 2000 93/4 94/5 95/6 96/7 97/8 98/9 99/00 00/1 01/2 02/3 Sept 03
Slide 10: Projects about to be awarded
projects about to be awarded - $280m – Perth-Mandurah rail infrastructure, WA, John Holland - $100m – Perth-Mandurah bridge works, WA, Leighton Contractors - $200m – Perth-Mandurah tunnelling, WA, Leighton Contractors - $130m – Law Courts PPP, WA, Leighton Contractors or John Holland - $650m – coal
Slide 11: Key elements of strategy
key elements of strategy - Diversified revenue base by markets/ products, geography, delivery systems and brand - Competitive structure develops market niches and fosters autonomy, competitive spirit and depth of management - Financial strength to invest in equity stakes, acquisitions, equipment and
Slide 12: Group strategy
group strategy Australia Australia Asia/Pacific Asia/Pacific Geography Hard Hard Dollar Dollar Design Design & & Construction Construction Project Project Management Management Alliancing Alliancing Mining Mining && Resources Resources Negotiated Negotiated Engineering Engineering && Brands Brands D
Slide 13: Structured for growth
structured for growth HOCHTIEF Other (50.1%) (49.9%) Leighton Holdings 100% owned 100% owned 70% owned 100% owned 100% owned 100% owned Leighton Leighton Leighton Asia Asia Leighton Thiess Contractors John Holland* (Northern) (Southern) Properties Roger Trundle Bob Merkenhof Bill Wild Will Hamilton
Slide 14: Areas of operation
areas of operation LAOS TAIWAN HONG KONG THAILAND VIETNAM PHILIPPINES MALAYSIA SRI LANKA SINGAPORE INDONESIA AUSTRALIA NEW ZEALAND
Slide 15: Leighton revenue vs Australian construction market
leighton revenue vs aust construction market A$m A$bn 7000 35 PRL, PRL, WSO, WSO, KENS, KENS, Transfield Transfield acquisition acquisition 6000 Leighton Leighton telco telco projects projects Thiess Thiess Indonesian Indonesian coal coal projects projects 30 5000 John John Holland Holland acquisiti
Slide 16: Competitor analysis
competitor analysis Baulderstone ** Offer Offer O&M O&M && facilities Baulderstone facilities Contractors Contractors Lease management services Lend Lease management services Macmahon McConnell Macmahon McConnell Transfield Transfield across across these these industries Services* Abigroup industrie
Slide 17: Competitors – revenue
A$m 1000 2000 3000 4000 5000 6000 0 Leighton ** Bilfinger Downer EDI Downer EDI Bilfinger Berger Multiplex Multiplex Berger Australia Bilfinger Bilfinger Berger Australia* Berger Australia* Australia reflects Bovis Bovis Lend Lend Lease (Asia-Pacific) Lease (Asia-Pacific) Clough Clough reflects comb
Slide 18: Competitors – profit after tax
0 50 100 150 -50 ** NPBT A$m **** Bilfinger NPBT $67m Leighton Bilfinger Berger $67m –– NPAT Downer EDI Downer EDI Berger Australia NPAT based based on Multiplex* Multiplex* Australia reflects Transfield Services Transfield Services on forecast at 30 June 2002 reflects combined Bovis Bovis Lend Lend
Slide 19: Competitors – work in hand
A$m 2000 4000 6000 8000 10000 0 Leighton ** Bilfinger Multiplex Multiplex Bilfinger Berger Downer EDI Downer EDI Berger Australia Bilfinger Bilfinger Berger Australia* Berger Australia* Australia reflects Transfield Services Transfield Services United Group United Group reflects combined Baulderston
Slide 20: Building and engineering work
building and engineering work Non-Residential Building Engineering Construction A$bn 34 Forecasts Forecasts 30 26 22 18 14 10 6 2 90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 Source: Source: BIS BIS Shrapnel, Shrapnel, ABS ABS Data Data
Slide 21: Major project timing
major project timing Awarded Awarded to to Leighton Leighton Group Group Yet Yet to to be be awarded awarded F3 F3 to to Orbital Orbital Link Link $1.5bn M4 M4 East East $1.0bn Gateway Gateway Bridge Bridge $800m Pakenham Pakenham Bypass Bypass $240m Albury Albury Bypass Bypass $335m Mitcham- Mitcha
Slide 22: Major resource producing deposits
major resource producing deposits Coal Copper/Lead/Zinc Iron Ore Bauxite DARWIN Gold Oil & Gas BRISBANE PERTH SYDNEY ADELAIDE CANBERRA MELBOURNE HOBART
Slide 23: The mining process
the mining process Open Cut Infrastructure Mine Minerals Processing Planning Pre-strip Rehabilitation Set-up Mining & load out • Install Install • Mine Mine • Remove Remove • Operate Operate • Replace Replace • Coal Coal washing washing conveyors conveyors management management overburden overburden
Slide 24: Burton Coal Mine, Qld
Burton Coal Mine, Qld CAT =eye el =s
Slide 25: Role of contractor
role of contractor Traditional Full Service Owner operator Contracting Miner Contracting Contractor • Infrastructure • Pre-strip • Infrastructure set up Activity set-up • Minerals mining • Mine planning • Rehabilitation • Pre-strip • Minerals mining • Rehabilitation • Processing & load out Delivery
Slide 26: Yarrie Nimingarra Iron Ore Mine, WA
Yarrie Nimingarra Iron Ore Mine, WA Leighton Contractors
Slide 27: Australian contract mining industry
australian contract mining industry A$m 4000 Forecasts Forecasts 3500 3000 2500 2000 Annual Annual Turnover Turnover 1500 1000 500 90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 Source: Source: IBIS IBIS World, World, June June 2002 2002
Slide 28: Largest Australian contract miner
largest Australian contract miner - Currently mine coal, iron ore, nickel and gold - Dominant position in coal mining - Forecast to mine 66mtpa of coal and 320mtpa of overburden in 2003/04 - 4th largest Caterpillar customer in the world
Slide 29: Long-term mining contracts
long-term mining contracts In In work work in in hand hand Future Future work work Not Not booked booked Yarrie Yarrie Moorvale Moorvale Mt Mt Keith Keith Sth Sth Walker Walker Westside Westside Liddell Liddell Southland Southland Collinsville Collinsville Burton Burton KPC KPC Senakin Senakin Satui
Slide 30: ABK Loa Janan Coal Mine, Indonesia
ABK Loa Janan Coal Mine, Indonesia Leighton Asia (Southern)
Slide 31: Property projects underway
property projects underway - $630m KENS office tower, Sydney, NSW - $300m rail station development, Melbourne, Vic - $230m hospital redevelopment, Sydney, NSW - $180m resort development, Noosa, Qld - $170m hotel refurbishment, Sydney, NSW - $170m defence development, Townsville, Qld - $140m research
Slide 32: Operations and maintenance market
operations and maintenance market A$bn 1998/99 1998/99 Prices Prices 25 Forecasts Forecasts 20 15 10 01 02 03 04 05 06 Source: Source: BIS BIS Shrapnel Shrapnel ‘Maintenance ‘Maintenance in in Australia Australia 2001’ 2001’
Slide 33: Group O&M revenue
group O&M revenue A$m Telecommunications Engineering & infrastructure 600 Building & property Mining & resources Environmental 529 503 500 400 353 300 221 200 104 100 98/9 99/00 00/1 01/2 02/3
Slide 34: Overview of the Asian region
overview of the asian region - Resources remains focus in Indonesia - Solid civil workload in Hong Kong - Pursuing other opportunities in Malaysia - Philippines has reasonable activity levels - Improving investment climate in Vietnam - Hopeful of further rail work in Taiwan - Select opportunities in
Slide 35: Senakin Coal Mine, Indonesia
Senakin Coal Mine, Indonesia Thiess
Slide 36: Summary
summary - Operating performance remains strong - Work boosted to around $12.5bn with new contracts - Diverse range of major projects in both Australia and Asia - Upswing in Australian construction, property and resources markets - Expect similar underlying profit growth in 2003/04
Slide 37: Media presentation
media presentation essen, january 2004
Leighton Holdings — Investor Presentation (January 2004) on 6ix