Hochtief Aktiengesellschaft · XETR:HOT
Hochtief Aktiengesellschaft — Investor Presentation (March 2008)
49 slides from Hochtief Aktiengesellschaft's investor presentation, Mar 4, 2008
Slide 1: Company Presentation
Company Presentation Latest update: 04 March 2008 TURNING VISION INTO VALUE.
Slide 2: Table of contents
Table of contents 1. Overview 2. Airports All skies clear 3. Development Strong performance in all sub-segments 4. Americas Stable markets with improving margins 5. Asia Pacific Capitalizing on growth opportunities 6. Europe German market still challenging 7. Outlook Full steam ahead! 8. Financials
Slide 3: HOCHTIEF…
HOCHTIEF… • Our focus – Complex buildings and infrastructure facilities. • Our integrated solutions – Offer integrated approach covering the entire life cycle – develop, finance, design, construct, maintain and operate projects • Our innovations and international network – Perform pioneering work wo
Slide 4: HOCHTIEF structure: Integrated solutions around the world
HOCHTIEF structure Integrated solutions around the world HOCHTIEF HOCHTIEF HOCHTIEF HOCHTIEF HOCHTIEF Airport Development Construction Construction Services Construction Services Services Americas Asia Pacific Europe Key figures 2006 Sales (EUR m) 3.8 1,017 6,625 5,734 2,011 EBT (EUR m) 35.1 45.4 58
Slide 5: Group: value added through networking
HOCHTIEF Group: value added through… networking … Profit centers adding value through group-wide cooperation • PPP: o Construction orders for HOCHTIEF Europe 05/06: > EUR 500m o Order value for HOCHTIEF FM: EUR 350m (i.e. >30% of FM order book) o Project pipeline (end 06): >EUR 8bn investment / cont
Slide 6: …overall strong business performance…
…overall strong business performance… Sales Sales (EUR (EUR bn) bn) EBT EBT (EUR m) // EBT (EUR m) EBT margin margin (%) (%) 16 15.51 350 337 338 343 1) 13.65 300 2.1% 2.2% 11.94 2.8% 12 10.53 250 12.3 11.4 200 187 8 160 212 150 1.6% 121 1.9% 100 1.5% 4 50 0 0 2003 2004 2005 2006 9M 2007 2003 2004 2
Slide 7: …growth in volume…another very strong order backlog…
…growth in volume…another very strong order backlog… New New orders orders (EUR (EUR bn) bn) Order Order backlog backlog (EUR (EUR bn) bn) 25 30 27.13 20.57 25.13 20 25 21.10 15.59 15.60 15.91 20 18.72 15 14.35 16.47 22.33 23.62 17.77 15 13.73 15.51 10 14.07 10 5 5 2.40 3.21 3.33 2.80 3.51 0 0 2003
Slide 8: Table of contents
Table of contents 1. Overview 2. Airports All skies clear 3. Development Strong performance in all sub-segments 4. Americas Stable markets with improving margins 5. Asia Pacific Capitalizing on growth opportunities 6. Europe German market still challenging 7. Outlook Full steam ahead! 8. Financials
Slide 9: HOCHTIEF Airport (1): Market
HOCHTIEF Airport (1) Market Passenger volumes 06-2025E, Freight volumes 2006-2025E, in mio. PAX, growth rates in % p.a. in mio. to, growth rates in %p.a. World +3.9% p.a. World +5.0% p.a. North America +2.7% p.a. North America +3.7% p.a. Europe +3.4% p.a. 2006 Asia Pacific +6.5% p.a. 2006 Asia Pacif
Slide 10: HOCHTIEF Airport (2): Essentials and Financials
HOCHTIEF Airport (2) Essentials Essentials Financials Financials • HOCHTIEF airports 9M 07 PAX: 66.9m (+7.1%); above Jan-Sep (EUR m) 2007 2006 % FY 06 average increase esp. in Tirana (+21.1%) and Athens Sales 23.7 2.4 887.5 3.8 (+10.1%) Net income from participations 126.3 32.4 289.8 65.0 • Continue
Slide 11: HOCHTIEF Airport (3): Asset value
HOCHTIEF Airport (3) Asset value HOCHTIEF Concession Projects - Portfolio as of 06/2007 - (EUR m) Status: Committed Paid-in NPV NPV Difference due to Financial Close Capital Capital of anticipated as of Growth of Growth of Cash Flows 31.12.2006 Portfolio Value Airports 747.2 747.2 1,243.7 825.2 416.
Slide 12: Table of contents
Table of contents 1. Overview 2. Airports All skies clear 3. Development Strong performance in all sub-segments 4. Americas Stable markets with improving margins 5. Asia Pacific Capitalizing on growth opportunities 6. Europe German market still challenging 7. Outlook Full steam ahead! 8. Financials
Slide 13: HOCHTIEF Development
HOCHTIEF Development Essentials Essentials Financials Financials • PPP – operating public buildings and toll roads – Jan-Sep (EUR m) 2007 2006 % FY 06 expands market position in UK; five project wins New orders 1,286.6 837.8 53.6 1,265.8 (Germany, Greece, UK) Order backlog 2,368.1 2,061.0 14.9 2,017
Slide 14: Development: overview of sub-segments
HOCHTIEF Development: overview of sub-segments Financials Financials Jan-Sep (EUR m) 2007 2006 % FY 06 PPP External sa les 13 5 .2 103 .8 3 0. 3 13 8 . 6 EBT -14. 8 -11. 2 -3 2.1 -6. 2 Rea l estate development & Asset Mgmt. External sa les 3 40. 5 221.8 53.5 3 78 . 4 EBT 18 . 5 14. 9 24.2 38.0 Facil
Slide 15: Development: PPP (1) Market
HOCHTIEF Development: PPP (1) Market Toll Toll Roads Roads Public Public Buildings Buildings Toll roads, Germany Public buildings, Germany1) (investment volume p.a., EUR m) (contract volume p.a., EUR bn) 7.8 2,000 8 7.1 2.000 5.9 1.500 6 5.0 1,000 4 7,8 1.000 7,1 5,9 400 300 2 5 500 1) Internal esti
Slide 16: Development: PPP (2) Asset value
HOCHTIEF Development: PPP (2) Asset value HOCHTIEF Concession Projects - Portfolio as of 06/2007 - Forecast (EUR m)1) Status: Committed Paid-in NPV NPV Difference due to Financial Close Capital Capital of anticipated as of Growth of Growth of Cash Flows 31.12.2006 Portfolio Value Tollroads 118.1 101
Slide 17: Development: Real estate development
HOCHTIEF Development: Real estate development Key figures 3,936 Hamburg Essentials Essentials 2,453 4,175 Düsseldorf Berlin 4,336 1,446 Warsaw • HTP – a trader developer for real estates in Germany Cologne 4,344 Frankfurt 1,587 and CEE with a successful long term track record 1,489 Prague Stuttgart
Slide 18: Development: Facility Management
HOCHTIEF Development: Facility Management Key figures Essentials Essentials Market growth external Facility HOCHTIEF FM – a leading provider of integrated FM Management Germany in EUR bn; % change yoy Services provided: - Infrastructural FM - Technical FM 70 - Commercial FM 6.7% 6.7% 6.8% 60 M
Slide 19: Table of contents
Table of contents 1. Overview 2. Airports All skies clear 3. Development Strong performance in all sub-segments 4. Americas Stable markets with improving margins 5. Asia Pacific Capitalizing on growth opportunities 6. Europe German market still challenging 7. Outlook Full steam ahead! 8. Financials
Slide 20: Construction Services Americas (1): Market
HOCHTIEF Construction Services Americas (1) Market Turner new orders 9M 07 Relevant market segments Turner Corp., split by market segment: (in USD bn, overall growth rate in % p.a.) 300 5.3% 2.8% Healthcare Commercial/ Retail 6.0% 250 28% 3.5% -2.0% 2.3% 27% 200 Commercial Buildings Manufacturing Tr
Slide 21: Construction Services Americas (2)
HOCHTIEF Construction Services Americas (2) Essentials Essentials Financials Financials • Turner: Jan-Sep (EUR m) 2007 20061) % FY 06 o Leading general builder in the US, #1 in New orders 5,766.9 6,280.2 -8.2 8,376.4 segments healthcare and commercial office Order backlog 7,805.7 8,241.2 -5.3 8,110.
Slide 22: Table of contents
Table of contents 1. Overview 2. Airports All skies clear 3. Development Strong performance in all sub-segments 4. Americas Stable markets with improving margins 5. Asia Pacific Capitalizing on growth opportunities 6. Europe German market still challenging 7. Outlook Full steam ahead! 8. Financials
Slide 23: Construction Services Asia Pacific (1): Market
HOCHTIEF Construction Services Asia Pacific (1) Market Australian Construction Market (in AUD bn) 70 60 50 40 30 20 10 0 05/6 06/7f 07/8f 08/9f 09/10f 10/11f Engineering Construction Non-Residential Building Australian Mining Market Australian Maintenance Market (in AUD bn) (in AUD bn) 20 35 30 15 2
Slide 24: Construction Services Asia Pacific (2): Operational analysis Leighton
HOCHTIEF Construction Services Asia Pacific (2) Operational analysis Leighton (FY 06/07) Operating revenue (AUD 11,891m) by market: by region: EBT (AUD 584 m): 2% 1% 2% <1% • Australia/Pacific 516 (88%) 2% 6% • Asia 65 (11%) 16% Engineering&Infrastructure Australia/Pacific Indonesia • Others 3 (1%)
Slide 25: Construction Services Asia Pacific (3)
HOCHTIEF Construction Services Asia Pacific (3) Essentials Essentials Financials Financials • Continued growth in infrastructure segment Jan-Sep (EUR m) 2007 2006 % FY 06 (increased investment in road building, rail network New orders 6,540.9 4,941.5 32.4 8,362.3 and water utilities) Order backlog 1
Slide 26: Table of contents
Table of contents 1. Overview 2. Airports All skies clear 3. Development Strong performance in all sub-segments 4. Americas Stable markets with improving margins 5. Asia Pacific Capitalizing on growth opportunities 6. Europe German market still challenging 7. Outlook Full steam ahead! 8. Financials
Slide 27: Construction Services Europe (1): Market
HOCHTIEF Construction Services Europe (1) Market Construction Investments in Construction Sector Output, 2007-2009 p.a. Germany (in EUR bn) 70 3.7% 3.4% 60 4.4% 5.6% -2.6% 50 218.17 40 4.5% 4.2% 3.3% 204.86 -3.6% 4.6% 30 35.72 37.29 Ireland 20 Great Britain 214.15 224.99 30.52 38.76 10 Poland 0 2005
Slide 28: Construction Services Europe (2)
HOCHTIEF Construction Services Europe (2) Essentials Essentials Financials Financials • Main focus on European building construction, civil Jan-Sep (EUR m) 2007 2006 % FY 06 engineering, infrastructure projects New orders 2,222.3 1,593.1 39.5 2,443.2 • German market remains structurally difficult Or
Slide 29: Table of contents
Table of contents 1. Overview 2. Airports All skies clear 3. Development Strong performance in all sub-segments 4. Americas Stable markets with improving margins 5. Asia Pacific Capitalizing on growth opportunities 6. Europe German market still challenging 7. Outlook Full steam ahead! 8. Financials
Slide 30: …leading us to confirm the Group outlook 2007
1) …leading us to confirm the Group outlook 2007 2006 2007E EUR bn Sales Above previous year's figure 15.5 EUR m EBT Above previous year's figure 338 1) EUR m Net profit To surpass the EUR 100m mark 89 EUR bn New orders Above previous year's figure 20.6 Order EUR bn Above previous year's figure back
Slide 31: …HOCHTIEF is about…realizing potential
…HOCHTIEF is about…realizing potential Management priorities • Well positioned in all major markets • Broad range of integrated services covering the whole value chain of buildings and infrastructure • Working on improving Group profitability • Further acquisitions growth with primary focus on Conce
Slide 32: Table of contents
Table of contents 1. Overview 2. Airports All skies clear 3. Development Strong performance in all sub-segments 4. Americas Stable markets with improving margins 5. Asia Pacific Capitalizing on growth opportunities 6. Europe German market still challenging 7. Outlook Full steam ahead! 8. Financials
Slide 33: …value added through… Sustainability and innovations
…value added through… Sustainability and innovations Sustainable construction • HOCHTIEF founding member of German Sustainable Building Council under the umbrella of the World Green Building Council • Non-profit organization certifies buildings, focusing not just on construction process but on the e
Slide 34: Regional Group sales
Regional Group sales Jan-Sep: EUR 12,299m (07); EUR 11,397m (06) America 9M 07: EUR 5,277m (43%) 9M 06: EUR 4,829m (42%) Asia/Pacific, Africa 9M 07: EUR 4,595m (37%) 9M 06: EUR 4,455m (39%) Germany 9M 07: EUR 1,560m (13%) 9M 06: EUR 1,467m (13%) Other Europe 9M 07: EUR 867m (7%) 9M 06: EUR 646m (6%)
Slide 35: Value added RONA
Value added RONA (EUR m) 2006 20052) EBITA 327,3 365,6 Interest income1) 76,4 64,0 Return 403,7 429,6 adjusted for HTAC effect 377,8 Shareholders' equity (incl. minorities) 2.345,7 2.202,1 • Return: EUR 403.7m (+6.9%)3) + Pension provisions 33,0 172,6 • Net assets: EUR 3,327.3m (+1.6%) + Financial l
Slide 36: Consolidated Group P&L
Consolidated Group P&L Jan-Sep (EUR m) 2007 20061) Change (%) • Sales: growth in all divisions; particularly strong Sales 12,299.5 11,397.4 7.9 Americas (Turner f/x effect: -EUR 413m) Other operating income 80.8 68.4 18.1 • Net income from part. interests: strong Other operating expenses -739.3 -677
Slide 37: Consolidated Group balance sheet (assets)
Consolidated Group balance sheet (assets) (EUR thousand) 30 Sep 07 31 Dec 06 Non-current assets: Intangible assets 392,013 396,958 • Property, plant & equipment: high Capex at Leighton PP&E 1,007,423 751,794 • Financial assets increased: stake in SYD airport (EUR Investment properties 45,283 46,471
Slide 38: Consolidated Group balance sheet (equity and liabilities)
Consolidated Group balance sheet (equity and liabilities) (EUR thousand) 30 Sep 2007 31 Dec 06 Shareholders’ equity: • Increased earnings after taxes EUR 216m Attributable to the Group 2,144,184 1,807,675 • Sale of own shares EUR 336m Minority interest 608,634 538,028 • Dividend payments EUR 163m Sh
Slide 39: Financials
Financials Finance structure: Gearing: (EUR m) (EUR m) 2.500 3.000 -46.9% -59.1% -23.0% 2.500 2,431 2.000 2,753 2,151 2,121 2.000 2,346 1.500 2,202 1,518 1.500 1,387 1.000 1,387 1.000 1,088 1,044 1) 1,033 1,033 500 633 500 633 0 FY 05 FY 06 9M 07 0 FY 05 FY 06 9M 07 Financial Assets Financial liabil
Slide 40: Consolidated Group Cash flow
Consolidated Group Cash flow Jan-Sep 06 (EUR m) Jan-Sep 07 2,000 +513 1,500 -53 -128 +3 -1,317 -33 +277 1,000 65,4 • 06: Significant +628 positive cash flow from 1,188 1,397 operating • 06: Transfer to 1,160 business. HT pension fund 1,061 (EUR -87m) and • 07: Positive • 06: Leighton negative impact
Slide 41: Dividends
Dividends Dividend Dividend (EUR/share) (EUR/share) 1,15 1.10 1,05 +22.2% 0,95 +37.5% 0.90 1) 0,85 0.75 0,75 0.65 • EPS: EUR 1.37 (+28%) 0,65 0.55 • Dividend: EUR 1.10 (+37.5%1)) 0,55 0,45 2002 2003 2004 2005 2006 • Dividend policy: increased dividend to reflect earnings growth 1) EUR 0.10 bonus div
Slide 42: Airport portfolio
HOCHTIEF Airport portfolio Athens Int‘l Budapest Düsseldorf Hamburg Sydney Tirana Int‘l Airport Airport Int‘l Airport Airport1) Airport 2006 HTA share 26.70% 37.25% 20% 34.80% 8.13% 47% HTAC share 13.30% - 10% 14.20% 5.15% - Total private share 45.00% 75% 2) 50% 49% 100% 100% PAX in m 15.1 8.3 16.6
Slide 43: Development: PPP Asset portfolio
HOCHTIEF Development: PPP Asset portfolio, 30 June 2007 Toll Roads/Transportation (EUR m) Project Name Investment Volume HT-Stake HT Committed Equity HT Paid-in Equity Project Data Herrentunnel, Germany 179 50.0 % 11.0 11.0 2 km length Vespucio Norte Express, Chile 520 45.5% 95.6 90.1 30 km length P
Slide 44: Development: PPP Principle of Life cycle Valuation
HOCHTIEF Development: PPP Principle of Life cycle Valuation accumulated Cash flows monetary (nominal) units Value of Equity (DCF calculation) Cash flows (nominal) Financial Close Start of operation t Construction Ramp-up Growth Maturity Risk-premium phase (%) 3 2 + Risk-premium type (%)1) 2-4 2-4 2-
Slide 45: Development: PPP
HOCHTIEF Development: PPP accumulated Cash flows monetary (nominal) units Value of Equity (DCF calculation) Cash flows (nominal) Financial Close Start of operation t Preferred as of Oct 07 Construction Ramp-up Growth Maturity bidder •A-Modell A1 (Germany) • Tunnel San Cristobal • Herrentunnel Lübeck
Slide 46: Development: PPP Project pipeline
HOCHTIEF Development: PPP Project pipeline Preferred bidder Tender Phase no. of Contract/investment no. of Contract/investment projects volume1) projects volume1) Public buildings / 0 0 11 ca. 2,300 social infrastructure Toll roads 1 ca. 300 3 ca. 4,000 • Total PPP pipeline volume (Oct 07): ca. EUR
Slide 47: Shareholder structure
Shareholder structure Regional distribution (as of June 2007) 1.37% 9.99% 1.73% 5.70% 4.32% 25.15% 9.99% 3) 25.08% Spain/Portugal 14.20% Germany 64.93% UK North America 19.87% Russia Rasperia 1) Scandinavia 2) 17.67% France ACS Benelux Free float Other 1) Rasperia Trading Ltd., Cyprus 2) ACS ACTIVID
Slide 48: Disclaimer
Disclaimer “Certain of the statements contained herein may be statements of future expectations and other forward-looking statements that are based on management’s current views and assumptions and involve known and unknown risks and uncertainties that could cause actual results, performance or even
Slide 49: Financial calendar and IR contact
Financial calendar and IR contact 26 Mar 08 Full year results 2007 and Analysts’ and Investors’ Conference 08 May 08 General Shareholders’ Meeting 15 May 08 Q1 results 2008 and Conference Call 14 Aug 08 Half year results 2008 and Analysts’ and Investors’ Conference 14 Nov 08 Nine month results 2008
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