Hochtief Aktiengesellschaft · XETR:HOT
Hochtief Aktiengesellschaft — Non-Deal Roadshow (June 2004)
44 slides from Hochtief Aktiengesellschaft's roadshow presentation, Jun 16, 2004
Slide 1: Roadshow London
Roadshow London 16 June 2004 Dr. Hans-Peter Keitel, CEO HOCHTIEF
Slide 2: HOCHTIEF – what it stands for
HOCHTIEF – what it stands for q “International Construction services provider” q Leading position in the most important markets: US, Asia Pacific, Europe § 83% of total work done generated outside Germany q Growing and successful service provider § 31% of HOCHTIEF’s business are services q Proven co
Slide 3: HOCHTIEF – leading international contractor worldwide
HOCHTIEF – leading international contractor worldwide Leading Leading in in 3/4 3/4 of of the the addressable addressable market market segments segments ENR TOP 225 International Contractors December 2003 survey: ## 11 position position ## 22 position position ## 33 position position Commercial Off
Slide 4: Shareholder structure
Shareholder structure Other 9.6% 7% 9.9% UK 35% Free float Germany 80.5% 49% US 9% RWE (Exchangeable) Regional allotment of Treasury stock (HOCHTIEF) Free float (Feb. 04) Total: 70 million shares 3
Slide 5: Major strategic achievements in the last 6 months
Major strategic achievements in the last 6 months AECON acquisition offer and Kitchell stake sale are further proof of consistent and selective implementation of Group strategy Strategy target: Milestone: • Grow services business - Acquisition of Siemens FM Jan 04 - Acquisition of Lufthansa FM May 0
Slide 6: Strategy to create value
Strategy to create value 11 Leverage Leverage global global reach reach 22 Integrate Integrate into into higher higher margin, margin, higher higher growth growth and and lower lower risk risk service service activities activities 33 Return Return to to attractive attractive profit profit levels lev
Slide 7: Strategy to create value: 1. Leverage global reach
Strategy to create value 1. Leverage global reach Germany ü Geographic ü Geographic 2004: EUR 466m (17%) diversification diversification 2003: EUR 436m (16%) ü Broad ü Broad product product portfolio portfolio Other Europe ü Global ü Global client client relationships relationships 2004: EUR 130m (4
Slide 8: Strategy to create value: 2. Integrate into higher margin service activities
Strategy to create value 2. Integrate into higher margin, higher growth, lower risk service activities Services Services as as % % of of work work done done Service Service activities activities 50% 31% 25% Other Activities 18% ... ... ... Airport Services 13% 1% Construction 1999 2001 2003 Target P
Slide 9: Strategy to create value: 3. Return to attractive profit levels
Strategy to create value 3. Return to attractive profit levels of HOCHTIEF Construction Services Europe EBT (EUR m) 20 10.4 0 -20 -40 -60 -80 -100 -105.3 -120 2002 2003 2004E • EBT will significantly improve in 04 vs 03 8
Slide 10: Strategy to create value: 4. Continue innovations in products and processes
Strategy to create value 4. Continue innovations in products and processes PreFair PreFair™– ™– Pioneering Pioneering aa new new model model Recent Recent innovations innovations ü PreFair ü PreFair Degree of control Preconstruction phase Construction phase over costs ‘Decision point’ ü Public-priva
Slide 11: Strategy to create value: 5. Release and redeploy capital
Strategy to create value 5. Release and redeploy capital ROCE ROCE Key Key drivers drivers 13.7% • Shortening of development project 9.2% cycles 8.2% • Launch of “Airport Fund” 1,603 1,699 1,606 • Active portfolio management - Strengthening of FM position (Siemens/Lufthansa FM) - Minority positions
Slide 12: HOCHTIEF Construction Services Europe
HOCHTIEF Construction Services Europe 2003 key figures: • New orders: EUR 2,293bn • Order backlog: EUR 2,784bn • Sales: EUR 1,936bn • EBT: EUR 10m • Capital employed: -EUR 108m • Employees: 9,918 11
Slide 13: HOCHTIEF Construction Services Europe
HOCHTIEF Construction Services Europe Strategy Strategy Recent Recent highlights highlights • Focus on attractive geographic regions, • HT is building high-rise Rondo 1, Warszaw, market segments and repeat customers 194 meter, 40 story office tower • Proven risk management procedures/ • EUR 230m fol
Slide 14: HOCHTIEF Construction Services Americas
HOCHTIEF Construction Services Americas 2003 key figures: • New orders: EUR 6,266bn • Order backlog: EUR 5,488bn • Sales: EUR 5,353bn • EBT: EUR 38m • Capital employed: EUR 264m • Employees: 7,400 13
Slide 15: HOCHTIEF Construction Services Americas
HOCHTIEF Construction Services Americas Strategy Strategy Recent Recent highlights highlights • Further strengthening of differentiated market • Strengthening of Turner’s market presence in position Washington DC by Tompkins Builders acquisition • Selective growth into attractive new market • Turner
Slide 16: HOCHTIEF Construction Services Asia Pacific
HOCHTIEF Construction Services Asia Pacific 2003 key figures: • New orders: EUR 5,240bn • Order backlog: EUR 7,446bn • Sales: EUR 2,647bn • EBT: EUR 127m • Capital employed: EUR 312m • Employees: 15,185 15
Slide 17: HOCHTIEF Construction Services Asia Pacific
HOCHTIEF Construction Services Asia Pacific Strategy Strategy Recent Recent highlights highlights • Diversify and broaden revenue base by • EUR 140, 3 years coalmining contract gained markets, products and geography at Ravensworth mine New South Wales, Australia • Continued expansion of non-construc
Slide 18: Q1's risk provisions effects
QI’s risk provisions effects (EUR m) Leighton risk provisions for - Spencer Street Station - Sydney Hilton Hotel - Southland Colliery Mine Leighton HT Asia Pacific Jul-Dec 03 Jan-Mar 04 Jul-Dec 03 Jan-Mar 04 EBT 70 1 43 18 1 after allowing for: 19 Spencer Street prov. 31 Hilton Hotel prov. 12 Southl
Slide 19: HOCHTIEF Development
HOCHTIEF Development Project Development; Infrastructure Development; Facility Management 2003 key figures: • New orders: EUR 476m • Order backlog: EUR 747m • Sales: EUR 519m • EBT: EUR 38m • Capital employed: EUR 470m • Employees: 1,147 18
Slide 20: HOCHTIEF Development
HOCHTIEF Development Strategy Strategy Recent Recent highlights highlights • Development real estate focus on attractive • HOCHTIEF FM established itself as the market regions; shortening project cycles leader in Germany and a high-end market • Focus on toll road and concession projects leader in Eu
Slide 21: High-end Facility Management
High-end Facility Management Newly formed Group: • HT Facility Management Siemens Gebäudemanagement (as of Jan 04) Lufthansa Gebäudemanagement (as of May 04) • Aggregated sales figures EUR 500m 26 locations 4,500 employees - No. 1 independent FM supplier in Germany - Technology expertise required: •
Slide 22: HOCHTIEF Airport
HOCHTIEF Airport 2003 key figures: • Net income from participations: EUR 55m • EBT: EUR 3m • Capital employed: EUR 654m • Employees: 59 21
Slide 23: HOCHTIEF Airport
HOCHTIEF Airport Strategy Strategy Recent Recent highlights highlights • Migrate business model from airport • HTA now owns 40% of Athens airport ownership to airport management • HTA together with international finance partners • Maximize and realize value of airport named preferred bidders for Tir
Slide 24: HOCHTIEF – Key figures
HOCHTIEF – Key figures (EUR m) 1999 1999 2000 2000 2001 2001 2002 2002 2003 2003 New orders 5,334 9,921 14,179 14,430 14,352 Work done 6,324 10,358 12,978 12,782 11,503 Order backlog 8,419 8,412 13,828 14,075 16,465 Sales 5,085 9,586 12,171 12,007 10,534 EBT 301 205 78 121 160 Net income 204 123 24
Slide 25: Group outlook 2004
Group outlook 2004 Financial results: 2003 2004 change / % • Order backlog (EUR bn) 16.5 again on a record high • Work done / Sales (EUR bn) 11.5 / 10.5 single digit range • EBT (EUR m) 160 upper single digit range • Net income (EUR m) 16 upper double digit range Strategy targets: • Strengthen our c
Slide 26: Key investment highlights
Key investment highlights Unique Unique global global scale scale and and leadership leadership in in key key geographic geographic areas areas Focused Focused diversification diversification into into higher higher margin, margin, higher higher growth growth and and lower lower risk risk service se
Slide 27: Appendix
Appendix Appendix HOCHTIEF
Slide 28: HOCHTIEF Group structure
HOCHTIEF Group structure 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 HOCHTIEF Ai
Slide 29: First quarter figures 2004
First quarter figures 2004 (EUR m) Jan-Mar Jan-Mar % change 2004 2003 Sales: adjusted for currency impact almost on previous year’s level New orders 3,920 3,896 +1 Operating earnings: Work done 2,710 2,826 -4 - Strong increase at HTE Order backlog 18,341 14,983 +22 offset by lower contribution of -
Slide 30: Construction Services Europe
Construction Services Europe (EUR m) Jan-Mar Jan-Mar % change Key drivers: 2004 2003 •New orders: - strong increase New orders 562 418 +34 - focus on key segments, in particular in Work done 504 529 -5 retail segment (e.g. shopping center Order backlog 2,845 2,796 +2 Leipzig), where HT’s following k
Slide 31: Construction Services Americas
Construction Services Americas (EUR m) Jan-Mar Jan-Mar % change Key drivers: 2004 2003 •New orders: Turner ’04 in USD: 2.2bn, +20%; EUR 253m decrease New orders 1,824 1,742 +5 due to currency effects; major projects Work done 1,147 1,411 -19 in particular in health segment Order backlog 6,351 5,833
Slide 32: Construction Services Asia Pacific
Construction Services Asia Pacific Key drivers: (EUR m) Jan-Mar Jan-Mar % change • New orders: returning to a “normal” 2004 2003 level (2003 projects: Western Sydney Orbital, Hong Kong harbor) New orders 1,043 1,658 -37 - but 58% above Q1/02 Work done 907 757 +20 - order backlog again on record high
Slide 33: Development
Development (EUR m) Jan-Mar Jan-Mar % change Key drivers: 2004 2003 •New orders: EUR 279m of increase New orders 472 60 +687 due to first-time consolidation Work done 132 111 +19 Siemens Gebäudetechnik Order backlog 1,213 784 +55 •Sales: increase driven by first-time consolidation Siemens (+EUR 42m)
Slide 34: Airport
Airport (EUR m) Jan-Mar Jan-Mar % change Key drivers: 2004 2003 •New orders/work done/sales: include ongoing consulting fees New orders 0.1 0.3 -67 (Sydney) Work done 0.1 0.3 -67 •Operating earnings: decrease as planned; previous year’s period External sales 0.07 0.33 -79 includes one-time effect (r
Slide 35: Consolidated balance sheet
Consolidated balance sheet Assets Liabilities 31 Mar 04 31 Dec 03 31 Mar 04 31 Dec 03 Key drivers •Reduction of trade payables Shareholders‘ (-EUR 300m) (and correspon- Fixed Assets 1,975 2,040 1,999 equity and 2,100 (27%) ding liquidity positions) offset (28%) (28%) minority (29%) interests the cur
Slide 36: Cash Flow
Cash Flow Key drivers: Jan-Mar 2004 2003 % change (EUR m) •Cash flow: improved contribution of HT Europe more Cash flow 63 67 -6 than offset by decrease at Asia Pacific and HT Development Net cash used in operating activities -267 -35 -663 •Operating activities/free cash Net cash used in investing a
Slide 37: Reconciliation earnings from operating activities to EBITA
Reconciliation earnings from operating activities to EBITA (EUR m) Headquarters/ Jan-Mar HT Group Airport Development Americas Asia Pacific Europe Others 2004 2003 2004 2003 2004 2003 2004 2003 2004 2003 2004 2003 2004 2003 Earnings from operating activities 13,2 34,1 -1,5 -1,3 5,6 13,3 1,6 5,9 18,6
Slide 38: Profit and loss account by division
Profit and loss account by division (EUR m) Headquarters/ Jan-Mar HT Group Airport Development Americas Asia Pacific Europe Others 2004 2003 2004 2003 2004 2003 2004 2003 2004 2003 2004 2003 2004 2003 Sales 2.513,2 2.656,4 0,1 0,3 119,9 113,7 1.176,8 1.379,0 793,0 723,8 435,8 468,0 -12,4 -28,4 Chang
Slide 39: Detailed cash flow
Detailed cash flow Jan-Mar 2004 2003 (EUR m) Earnings after tax 9.717 0.970 Depreciation/write ups 59.576 63.299 Changes in long-term provisions -1.481 -2.772 Changes in deferred taxes 9.353 9.762 Gains/losses from disposals of fixed assets and marketable securities -16.824 -10.706 Other non-cash in
Slide 40: Breakdown Construction Services Europe
Breakdown Construction Services Europe (EUR m) New orders External sales Op. earnings/EBITA EBT Jan-Mar 2004 2003 % change 2004 2003 % change 2004 2003 % change 2004 2003 % change Building 305 275 +11 255 274 -7 -1 -3 +67 -5 -7 +29 Civil 248 126 +97 132 129 +2 -3 -8 +63 -3 -8 +63 Streif Baulogistik
Slide 41: Breakdown Construction Services Americas
Breakdown Construction Services Americas (EUR m) New orders External sales Op. earnings/EBITA EBT Jan-Mar 2004 2003 % change 2004 2003 % change 2004 2003 % change 2004 2003 % change Turner 1,813 1,726 +5 1,166 1,368 -15 8 15 -47 6 11 -45 Aecon - - - - - - 0 1 -100 0 1 -100 Kitchell - - - - - - 1 0 n
Slide 42: Breakdown Development
Breakdown Development (EUR m) New orders External sales Op. earnings/EBITA EBT Jan-Mar 2004 2003 % change 2004 2003 % change 2004 2003 % change 2004 2003 % change Infrastructure 0 0 n.a. 0 0 n.a. -1 -1 n.a. -1 -2 n.a. Real estate 149 27 +452 43 74 -42 -1 6 -117 2 7 -71 Facility Mgmt. 311 19 +1537 60
Slide 43: Valuable portfolio of attractive airport investments
Valuable portfolio of attractive airport investments Passengers (mio.) Sales (EUR m) Aviation Non-Aviation Total Jan-Mar 2004 2003 change change change change 2004 2003 2004 2003 2004 2003 Düsseldorf 2.98 2.90 +2.8% 45.50 43.41 +4.8% 21.50 20.55 +4.6% 67.00 63.96 +4.8% Hamburg 2.14 2.10 +1.9% 29.78
Slide 44: Financial calendar and IR contact
Financial calendar and IR contact 19 Aug 04 Q2 results 2004 and Analysts’ and Investors’ Conference 29 Nov 04 Q3 results 2004 and Conference Call 16 Feb 05 Preliminary report on FY 2004 23 Mar 05 Full year results 2004 and Analysts’ and Investors’ Conference HOCHTIEF Aktiengesellschaft Investor Rela
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