Hochtief Aktiengesellschaft · XETR:HOT
Hochtief Aktiengesellschaft — Non-Deal Roadshow (July 2002)
29 slides from Hochtief Aktiengesellschaft's roadshow presentation, Jul 9, 2002
Slide 1: London Sell-Side Roadshow
London Sell-Side Roadshow 9 July 2002
Slide 2: HOCHTIEF: contractor based in Germany - but not a German contractor
HOCHTIEF contractor based in Germany - but not a German contractor • Most international contractor world-wide • Expanding service activities • Leanest construction organization among all listed competitors within the German market • Leading Project Developer and Facility Manager • One of the largest
Slide 3: An international leader
An international leader 1. INTERNATIONAL CONSTRUCTION MARKETS AND ITS MAJOR PLAYERS (Global Work Done) RANK FIRM 1 Vinci, France 2 Taisei Corp., Japan 3 Bouygues, France 4 Bechtel, U.S.A. 5 HOCHTIEF 2. WORLD’s MOST INTERNATIONAL CONSTRUCTION GROUPS (International Work Done) 2000 REVENUE NEW RANK FIR
Slide 4: HOCHTIEF Group: Sales by Regions 2001
HOCHTIEF Group GERMANY: EUR 2.03bn REST OF EUROPE: EUR 0.43bn Asia-Pacific: AMERICA: EUR 2.75bn EUR 6.95bn AFRICA: EUR 0.01bn Sales by Regions 2001 4
Slide 5: HOCHTIEF AG (Holding)
HOCHTIEF AG (Holding) Construction AG Americas Asia HTI Airport Develop- Pacific ment Building HOCHTIEF UK Turner Leighton Ballast Nedam Athens HOCHTIEF Germany United USA Holding Netherlands International Project Kingdom Australia Airport Development Civil HOCHTIEF Lux. Kitchell Leighton HOCHTIEF A
Slide 6: 2001 Highlights: Positioned for Further Growth
2001 Highlights: Positioned for Further Growth • Restructuring of loss making domestic construction business • Focus on profitable regions and service businesses continues – Position in North America strengthens – Full consolidation of Leighton Holdings – HT Airport one of the world’s leading airpor
Slide 7: Action taken for future profitability
Action taken for future profitability RESTRUCTURE GERMAN SHIFT TOWARDS MORE INTERNATIONALISATION BUSINESS: PROFITABLE BUSINESSES: Focus on ... Focus on ... Focus on ... z core competencies z Building global presence z Airport Management z capacity cuts z Unifying processes/systems z Real Estate Deve
Slide 8: Strategic outlook
Strategic outlook z Consolidation of HT Construction business Reorganizing European z Integration of European units into HT Construction AG construction activities z Strict risk management processes z New contract structures z Organic growth of Turner (U.S.A.) and Leighton (Australia/Asia Pacific) E
Slide 9: 2002 developments to date
2002 developments to date • RWE re-organized its direct and indirect stake in HOCHTIEF → deconsolidation beginning FY 2002 • Sale of Monachia Grundstücks AG realizing profits of EUR 157m • Increase Hamburg airport stake by 4% up to 40% • HOCHTIEF Facility Management moved into the Hungarian market m
Slide 10: Promising start in the first quarter
Promising start in the first quarter • New orders up 20.8 percent • Order backlog up 14.5 percent • Sales top EUR 3 billion • Strong increase in Group operating earnings and net income First quarter gives optimistic outlook for fiscal year 2002 10
Slide 11: Positive results across the Group
Positive results across the Group (EUR m) Q1 2001 Q1 2002 Change % • New orders increase mainly due to strong business at Turner (+ EUR New Orders 3,588 4,334 +21 611m) and Leighton (+ EUR 305m) Work done 3,026 3,119 +3 • Growth in sales for all divisions Sales 2,738 3,028 +11 except Construction Op
Slide 12: New orders and work done by region
New orders and work done by region (EUR m) Q1 2001* (EUR 3,588 m) Q1 2002 (EUR 4,334 m) New orders 513 494 14% 11% 86% 89% 3,840 3,075 Q1 2001* (EUR 3,026 m) Q1 2002 (EUR 3,119 m) Work done 418 624 21% 13% 79% 87% 2,402 2,701 domestic * figures adjusted to new group structure international • Strong
Slide 13: Sales by division
Sales by division (EUR m) Q1 2001* (EUR 2,738 m) Q1 2002 (EUR 3,028 m) Development Development 53 (2%) Others and Airport International Airport 69 (2%) Others and International consolidation 0.2 (<1%) consolidtion 0.1 (<1%) 84 (3%) 57 (2%) 5.9 (<1%) 21.8 (1%) Construction Asia Pacific Construction A
Slide 14: CAPEX by division
CAPEX by division (EUR m) Q1 2001* (EUR 99.1 m) Q1 2002 (EUR 113.7 m) Others and consolidation Construction Others and Construction Development Development 3.2 (3%) 13.9 (14%) consolidation 5.6 (5%) 1.9 (2%) 28.6 (29%) Americas 1.2 (1%) Americas 8.5 (9%) Airport 5.3 (5%) 31.9 (28%) Airport 1.4 (1%)
Slide 15: HOCHTIEF Construction: Major improvements in Q1 2002
HOCHTIEF Construction: Major improvements in Q1 2002 (EUR m) Q1 2001 Q1 2002 Change% • Work done and sales down as planned New Orders 429 510 +19 • Restructuring showing first results – cut workforce Work done 616 409 -34 – scale down capacity Sales 471 326 -31 – losses 46 percent down compared to l
Slide 16: HOCHTIEF Americas: Excellent start in Q1 2002
HOCHTIEF Americas: Excellent start in Q1 2002 (EUR m) Q1 2001 Q1 2002 Change% • Division now incorporates U.S., Canadian, Brazilian, and Argentinean businesses New Orders 2,287 2,919 +28 • Healthy new orders being placed within all Work done 1,706 1,847 +8 U.S. American operations Sales 1,563 1,722
Slide 17: HOCHTIEF Asia Pacific: Growth region continued high earnings
HOCHTIEF Asia Pacific: Growth region continued high earnings (EUR m) Q1 2001 Q1 2002 Change% • New orders, strong increase – Leighton Asia (EUR 140m) New Orders 148 454 +206 – John Holland Group railtrack extension Work done 277 388 +40 (EUR 90m) Sales 589 805 +37 • Operating earnings more than doub
Slide 18: HOCHTIEF International: Organizational changes
HOCHTIEF International: Organizational changes (EUR m) Q1 2001 Q1 2002 Change% • New orders down because of weak New orders 512 294 -43 construction business in Poland • Operating earnings influenced by negative Work done 343 383 +12 results of Ballast Nedam in 2001 of EUR 25m Sales 57 84 +47 (HOCHT
Slide 19: HOCHTIEF Airport: Solid platform for future growth
HOCHTIEF Airport: Solid platform for future growth (EUR m) Q1 2001 Q1 2002 Change% • Athens International Airport already a success story New orders 6 2 -67 • “D-Check” cost optimization program at Work done 6 2 -67 Düsseldorf Airport Sales 0.1 0.2 +100 • HOCHTIEF Airport increases stake to 40 perce
Slide 20: HOCHTIEF Development: Upward trend continues
HOCHTIEF Development: Upward trend continues (EUR m) Q1 2001 Q1 2002 Change% • Growth continues despite weaker German New orders 206 156 -24 market trends Work done 78 91 +17 • At present 37 projects in Germany, Prague and Warsaw (EUR 2bn investment volume) Sales 53 69 +30 • Division makes significa
Slide 21: Consolidated balance sheet
Consolidated balance sheet • HOCHTIEF still has a Assets Liabilities Q1 2001 Q1 2002 Q1 2001 Q1 2002 healthy cash and cash equivalents position Shareholders‘ equity and • With 29 percent - we Fixed Assets 2.258 2.101 2.276 minority have a consistently 2.494 (29%) (29%) interests (30%) (35%) solid eq
Slide 22: Cash flow analysis
Cash flow analysis (EUR m) Q1 2001 Q1 2002 • Cash flow increase driven by Cash flow 14 123 – Monachia (EUR 57m) Net cash used in/provided by operating activities -134 -3 – Leighton (EUR 69m) Net cash used in investing activities 38 -3 • Financing activities Net cash provided by financing activities
Slide 23: Expectations for 2002 - looking ahead in confidence
Expectations for 2002 - looking ahead in confidence • Given early stage of the year we are expecting – further improvements in work done – overall result to show improvements on last year • Construction losses will be significantly down on last year, break-even targeted for 2003 • We are excellently
Slide 24: Back up
HOCHTIEF Back up 24
Slide 25: Group objectives targets
Group objectives targets • Become a Top 3 global construction Group by work done • Maintain position as “most international” construction/services company • Continuing focus on profitable services businesses • Returning the German building construction business to profitability in 2002/3 -- and keep
Slide 26: HT Construction: Consolidation in a still difficult environment
HT Construction: Consolidation in a still difficult environment • The German construction sector is cyclical, still has overcapacities, has low growth prospects and low margins -- typically up to 4% • The German building business has seen a steady decline in output, and is expected to continue shrin
Slide 27: Construction: Comprehensive restructuring programme
Construction: Comprehensive restructuring programme z Foundation of HOCHTIEF Construction AG Radical restructuring programme z Cut workforce by 1,540 personnel in 2001, established Cut workforce expected by 300 personnel in 2002 z Cost reduction of EUR 100 million per year from 2002 z Overhead reduc
Slide 28: Risk reduction: tighter controls
Risk reduction: tighter controls z Within the construction sector there are major risks associated with projects -- Calculation risks -- Financial risks -- Legal risks -- Project management risks z HOCHTIEF Construction has therefore created a central Contract Review Committee -- pre-committee prepa
Slide 29: For further information, please contact: Investor Relations
For further information, please contact: HOCHTIEF Aktiengesellschaft Investor Relations Opernplatz 2 45128 Essen Germany Tel.: +49 201 824-1833 Fax: +49 201 824-2750 [email protected] 29
HOCHTIEF Aktiengesellschaft — Non-Deal Roadshow (July 2002) on 6ix