Hochtief Aktiengesellschaft · XETR:HOT
Hochtief Aktiengesellschaft — Non-Deal Roadshow (July 2008)
51 slides from Hochtief Aktiengesellschaft's roadshow presentation, Jul 16, 2008
Slide 1: Roadshow presentation
Roadshow presentation latest update: 16 July 2008 Turning Vision into Value.
Slide 2: Table of contents
Table of contents 1. Overview p. 2 2. Americas p. 9 3. Asia Pacific p. 12 4. Concessions p. 16 5. Europe p. 22 6. Real Estate p. 25 7. Services p. 28 8. Outlook p. 31 9. Appendix p. 34 WestEnd Duo, Frankfurt Turning Vision into Value. 2
Slide 3: HOCHTIEF stands for …
HOCHTIEF stands for … • Comprehensive services for infrastructure, real estate and industrial facilities We develop, finance, invest in, design, construct, maintain and operate projects, provide asset management for third parties • Active portfolio management for further growth o Focus on concession
Slide 4: HOCHTIEF structure: Integrated solutions around the world
HOCHTIEF structure Integrated solutions around the world HOCHTIEF HOCHTIEF HOCHTIEF HOCHTIEF HOCHTIEF HOCHTIEF Americas Asia Pacific Concessions Europe Real Estate Services Building (Turner) and Civil engin., contract mining, Leading developer & operator Bldg. construction, civil / Comprehensive ser
Slide 5: Regional Group sales
Regional Group sales Jan-Mar: EUR 3,801m (08); EUR 3,685m (07) America Q1 08: EUR 1,730m (46%) Q1 07: EUR 1,486m (40%) Asia/Pacific, Africa Q1 08: EUR 1,245m (33%) Q1 07: EUR 1,488m (40%) Germany Q1 08: EUR 499m (13%) Q1 07: EUR 470m (13%) Other Europe Q1 08: EUR 327m (8%) Q1 07: EUR 241m (7%) Turni
Slide 6: Networking at HOCHTIEF
Networking at HOCHTIEF Profit centers adding value through group-wide cooperation • PPP: o Construction orders for HOCHTIEF Europe approx. EUR 590m Order value for HOCHTIEF FM: EUR 220m o PPP project pipeline (end 07): approx. EUR 6.6bn investment / contract volume -> approx. EUR 1.7bn potential con
Slide 7: …healthy business performance…
…healthy business performance… Sales Sales (EUR (EUR bn) bn) EBT EBT (EUR m) // EBT (EUR m) EBT margin margin (%) (%) 10.53 11.94 13.65 15.47 16.45 3.80 160 187 337 338 501 103 20 600 16 480 3.0% 12 360 1) 2.5% 2.2% 2) 8 240 2.1% 1.6% 4 120 1.5% 3.68 2.7% 1.8% 0 0 3) 2003 2004 2005 2006 2007 Q1 2003
Slide 8: …growth in volume…another record high order backlog…
…growth in volume…another record high order backlog… New New orders orders (EUR (EUR bn) bn) Order Order backlog backlog (EUR (EUR bn) bn) 14.35 15.59 15.60 20.56 23.51 5.27 16.47 18.72 21.10 25.13 29.89 29.15 25 35 30 20 25 15 20 20.32 18.82 25.99 25.05 10 15 22.33 12.17 12.83 13.05 17.77 10 14.07
Slide 9: Table of contents
Table of contents 1. Overview p. 2 2. Americas p. 9 3. Asia Pacific p. 12 4. Concessions p. 16 5. Europe p. 22 6. Real Estate p. 25 7. Services p. 38 8. Outlook p. 31 9. Appendix p. 34 Hearst Building, New York Budapest Airport Turning Vision into Value. 9
Slide 10: HOCHTIEF Americas (1): Market
HOCHTIEF Americas (1) Market General General building building (Turner) (Turner) Civil/Infrastructure Civil/Infrastructure (Flatiron) (Flatiron) Turner new orders Q1 2008 split by market (total USD 1.5bn) Flatiron new orders Q1 2008 split by market (total USD 92,9m) Sports/ Other Entertainment Pharm
Slide 11: HOCHTIEF Americas (2): Key figures
HOCHTIEF Americas (2) Key figures Essentials Essentials Financials Financials • Turner: leading general builder in the US, #1 in segments Jan-M ar (EUR m) 2008 2007 % FY 07 healthcare and commercial office buildings1); increased New orders 1,805.8 2,071.2 -12.8 7,715.7 exposure in green building; Or
Slide 12: Table of contents
Table of contents 1. Overview p. 2 2. Americas p. 9 3. Asia Pacific p. 12 4. Concessions p. 16 5. Europe p. 22 6. Real Estate p. 25 7. Services p. 28 8. Outlook p. 31 9. Appendix p. 34 Light Rail Transit System, Hong Kong Turning Vision into Value. 12
Slide 13: HOCHTIEF Asia Pacific (1): Australian Market
HOCHTIEF Asia Pacific (1) Australian Market Infrastructure Infrastructure Construction Construction Building Building Construction Construction // Development Development Engineering Construction Industry, Value of Work Done total Residential and Non-Residential Building Construction (in AUD bn) (in
Slide 14: HOCHTIEF Asia Pacific (2): Key Figures
HOCHTIEF Asia Pacific (2) Key Figures Leighton Leighton “map” “map” Leighton Leighton op. op. revenue revenue (H1 (H1 FY FY 07/08, 07/08, AUD AUD 6,511m) 6,511m) by region: 6%1% 2% 2% 5% Australia/Pacific Indonesia Hong Kong/Macau India Gulf Other 84% Average Average visibility visibility by by mark
Slide 15: HOCHTIEF Asia Pacific (3): Key figures
HOCHTIEF Asia Pacific (3) Key figures Essentials Essentials Financials Financials • Leighton market leader in Australia, strong position in Asia Jan-M ar (EUR m) 2008 2007 % FY 07 • Continued growth in infrastructure segment (increased New orders 2,000.0 626. 5 219.2 10, 415 . 7 investment in road b
Slide 16: Table of contents
Table of contents 1. Overview p. 2 2. Americas p. 9 3. Asia Pacific p. 12 4. Concessions p. 16 5. Europe p. 22 6. Real Estate p. 25 7. Services p. 28 8. Outlook p. 31 9. Appendix p. 34 Hamburg Airport Times Square Tower New York Turning Vision into Value. 16
Slide 17: HOCHTIEF Concessions
HOCHTIEF Concessions Essentials Essentials Financials Financials • Leading developer and operator of public infrastructure; Jan-M ar (EUR m) 2008 2007 % FY 07 manager of concessions portfolio New orders 11.5 2. 0 475 .0 415 .3 • NPV end 07: EUR 1,544m (end 06: EUR 1,068m) Order backlog 665 . 1 43 7.
Slide 18: HOCHTIEF Concessions: AirPort (1): Market
HOCHTIEF Concessions: AirPort (1) Market Passenger volumes 06-2025E, Freight volumes 2006-2025E, PAX in million, growth rates in % p.a. in million tons, 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. 2007 Asia Pacific +6.5%
Slide 19: HOCHTIEF Concessions: AirPort (2): Asset value
HOCHTIEF Concessions: AirPort (2) Asset value Portfolio Portfolio value value concession concession projects projects (Dec (Dec 07, 07, forecast, forecast, EUR EUR m) 1) m)1) Financials Financials Status: Committed Paid-in NPV NPV Difference due to Jan-M ar (EUR m) 2008 2007 % FY 07 Financial Close
Slide 20: HOCHTIEF Concessions: PPP (1): Market
HOCHTIEF Concessions: PPP (1) Market Toll Toll roads roads Public Public buildings buildings • Germany: • Germany: (contract volume p.a., EUR bn)1) A-Model A1, 5.0 5.9 7.1 7.8 8 Lower Saxony F-Model Weser X-ing, 6 Bremen 4 7,1 7,8 5,9 K-Model bridges, 5 2 1) Internal estimation Frankfurt a.M. for th
Slide 21: HOCHTIEF Concessions: PPP (2): Key figures
HOCHTIEF Concessions: PPP (2) Key figures Portfolio Portfolio value value concession concession projects projects (Dec (Dec 07, 07, forecast, forecast, EUR EUR m) 1) m)1) Financials Financials Status: Committed Paid-in NPV NPV Difference due to Jan-M ar (EUR m) 2008 2007 % FY 07 Financial Close Capi
Slide 22: Table of contents
Table of contents 1. Overview p. 2 2. Americas p. 9 3. Asia Pacific p. 12 4. Concessions p. 16 5. Europe p. 22 6. Real Estate p. 25 7. Services p. 28 8. Outlook p. 31 9. Appendix p. 34 GAP 15, Düsseldorf Turning Vision into Value. 22
Slide 23: HOCHTIEF Europe (1): Market
HOCHTIEF Europe (1) Market Selected Selected European European construction construction markets markets Market volume and expected growth (in EUR bn 08E; av. growth 2008-10 in % (in real terms)) 72.6 49.9 101.8 25.8 28.3 16.2 10.9 8.4 15.5 14.6 8.6 7.8 4.4 1.6 4.2 3.2 4.7 3.7 1.4 1.8 0.1% 6.1% 105.
Slide 24: HOCHTIEF Europe (2): Key figures
HOCHTIEF Europe (2) Key figures Essentials Essentials Financials Financials • European building construction, civil engineering, Jan-M ar (EUR m) 2008 2007 % FY 07 infrastructure projects New orders 1, 206. 7 8 5 3 .0 41.5 3 , 176. 1 • German building activities: order intake requirements Order back
Slide 25: Table of contents
Table of contents 1. Overview p. 2 2. Americas p. 9 3. Asia Pacific p. 12 4. Concessions p. 16 5. Europe p. 22 6. Real Estate p. 25 7. Services p. 28 8. Outlook p. 31 9. Appendix p. 34 Öresundbrücke GAP DLZ Stern 15, Düsseldorf Essen Turning Vision into Value. 25
Slide 26: HOCHTIEF Real Estate (1): Market / business key figures
HOCHTIEF Real Estate (1) Market / business key figures Rental Rental market: market: real real estate estate clock clock (Dec (Dec 07) 07) Investment Investment market market volume volume 07 07 (EUR (EUR m) m) Düsseldorf, Frankfurt, Hamburg Budapest 5,100 6,900 decelerated accelerated 2,300 Berlin
Slide 27: HOCHTIEF Real Estate (2)
HOCHTIEF Real Estate (2) Essentials Essentials Financials Financials • Comprehensive services around real estate and real estate Jan-M ar (EUR m) 2008 2007 % FY 07 portfolios New orders 15 3 . 5 274. 4 -44. 1 965 . 0 • Germany’s leading trader developer (offices, hotel, retail); further Order backlo
Slide 28: Table of contents
Table of contents 1. Overview p. 2 2. Americas p. 9 3. Asia Pacific p. 12 4. Concessions p. 16 5. Europe p. 22 6. Real Estate p. 25 7. Services p. 28 8. Outlook p. 31 9. Appendix p. 34 WestEnd Duo, Frankfurt Turning Vision into Value. 28
Slide 29: HOCHTIEF Services (1): Market Germany
HOCHTIEF Services (1) Market Germany Facility Facility Management Management Energy Energy Contracting Contracting Market volume and expected growth Market volume and expected growth (EUR bn; % change yoy)1) (EUR bn, % change yoy)2) 1.2 1.4 1.6 1.8 2.0 80.0 57.0 60.0 63.3 67.1 71.3 2,5 +6.3% +5.9% a
Slide 30: HOCHTIEF Services (2): Key figures
HOCHTIEF Services (2) Key figures Essentials Essentials Financials Financials Jan-M ar (EUR m) 2008 2007 % FY 07 • HOCHTIEF FM – a leading provider of integrated FM New orders 13 7.2 126.5 8 .5 8 92. 6 • Major market segments include: Financial services, O rder ba cklog 1,5 28 .6 1,016.5 5 0.4 1,602
Slide 31: Table of contents
Table of contents 1. Overview p. 2 2. Americas p. 9 3. Asia Pacific p. 12 4. Concessions p. 16 5. Europe p. 22 6. Real Estate p. 25 7. Services p. 28 8. Outlook p. 31 9. Appendix p. 34 Vespucio Norte Express, Chile Turning Vision into Value. 31
Slide 32: …leading us to confirm the outlook for 2008
…leading us to confirm the outlook for 2008 2007 2008E EUR bn To steady off at a high level, likely to be New orders 23.5 short of prior-year Order EUR bn To steady off at a high level, likely to be backlog 29.9 short of prior-year EUR bn Sales Above prior-year level 16.5 EUR m EBT On a par with pre
Slide 33: …HOCHTIEF is about…realizing potential
…HOCHTIEF is about…realizing potential Management priorities • Well positioned in all major markets • Comprehensive services covering the whole life cycle of infrastructure, real estate and industrial facilities • Working on improving Group profitability • Further acquisitions growth with primary fo
Slide 34: Table of contents
Table of contents 1. Overview p. 2 2. Americas p. 9 3. Asia Pacific p. 12 4. Concessions p. 16 5. Europe p. 22 6. Real Estate p. 25 7. Services p. 28 8. Outlook p. 31 9. Appendix p. 34 Vespucio Norte Express, Chile Turning Vision into Value. 34
Slide 35: Value created: RONA
Value created RONA (EUR m) FY 07 FY 06 EBITA 517,3 327,3 Interest income1) 94,3 76,4 Return 611,7 403,7 Shareholders' equity (incl. minorities) 3.000,8 2.345,7 • Return: EUR 611.7m (+ 50%) + Pension provisions 29,0 33,0 • Net assets: EUR 4,107.2m (+23%) + Financial liabilities 1966,8 1.044,1 • Value
Slide 36: Value added… Return on net assets (RONA)
Value added… Return on net assets (RONA) HTA HTA WACC WACC // RONA RONA HTD HTD WACC WACC // RONA RONA HTAM HTAM WACC WACC // RONA RONA 15.0% 25.0% 23.6% 25.0% 22.1% 21.8% 13.9% 20.0% 20.0% 17.2% 9.6% 9.6% 9.6% 9.6% 15.9% 10.0% 14.4% 15.0% 15.0% 9.5% 8.2% 14.1% 14.1% 14.1% 14.1% 9.8% 7.7% 10.0% 10.0
Slide 37: Consolidated Group P&L…
Consolidated Group P&L… Jan-Mar (EUR m) 2008 2007 Change (%) • Sales: Sales 3,801.1 3,684.6 3.2 redoubled efforts to open up new and expand existing Other operating income 37.7 21.6 74.5 Other operating expenses (adj.) -256.7 -208.9 22.9 growth areas; 87% of total is non-domestic Net income from par
Slide 38: …consolidated Group balance sheet (assets)…
…consolidated Group balance sheet (assets)… ( EU R t ho usand ) 31 Mar 08 31 Dec 07 Non-current assets: Intangible assets 483,688 505,145 • Pp&e: expansion of contract mining PP&E 1,039,082 1,027,641 • At equity and other financial assets: strengthening of Investment properties 41,124 41,199 busines
Slide 39: …consolidated Group balance sheet (equity and liabilities)…
…consolidated Group balance sheet (equity and liabilities)… Shareholders’ equity: ( EU R t ho usand ) 31 Mar 08 31 Dec 07 • Earnings after taxes: +EUR 69m Attributable to the Group 2,268,432 2,297,720 • Dividend payments to minority shareholders: Minority interest 676,903 703,100 -EUR 45m Shareholde
Slide 40: …sound financial basis…
…sound financial basis… Finance structure: (EUR m) • Gearing ratio (net debt / equity) 3.000 o 8.8% (end Q1 08) 2.5 00 • Basic long-term cash and guarantee facilities 2.000 o EUR 2.0bn syndicated guarantee facility (successfully refinanced in 2,431 2,252 2,512 2,290 1.5 00 07) 1,967 o USD 4.8bn Turn
Slide 41: …consolidated Group cash flow…
…consolidated Group cash flow… 2,500 • 07: New borrow- Q1 07 ings (EUR 134m) and in the opposite Q1 08 • 07: Substantial direction debt reduction of • 07:Investments repayment (EUR - 2,000 trade payables in property, plant 12m) and dividend and equipment • 07: Negative f/X by HTAM and payments (EUR
Slide 42: …we share the success with our shareholders…
…we share the success with our shareholders… EUR EUR m 1.40 100 1.30 90 1.20 1.10 80 1.00 70 0.90 0.80 0.75 60 0.65 50 0.60 40 0.40 30 20 0.20 Dividend per share (EUR) 10 Total dividend (EUR m) 0.00 0 2) 1) 91 2003 2004 2005 2006 2007 • Average increase of approx. 19% p.a. over the last five years •
Slide 43: HOCHTIEF Concessions: AirPort portfolio
HOCHTIEF Concessions: AirPort portfolio Athens Int‘l Budapest Düsseldorf Hamburg Sydney Tirana Int‘l Airport Airport Int‘l Airport Airport Airport 2007 HTA share 26.7% 37.25% 20% 34.8% 8.13% 47% HTAC share 13.3% - 10% 14.2% 5.15% - Total private share 45.0% 75%1) 50% 49% 100% 100% PAX in m 16.5 8.6
Slide 44: HOCHTIEF Concessions: PPP Solutions Asset portfolio
HOCHTIEF Concessions: PPP Solutions Asset portfolio, 31 December 2007 Toll Roads/Transportation (EUR m) Project Name Project value HT-stake HT capital required HT capital provided Project data Herrentunnel, Germany 179 50.0 % 11.0 11.0 2 km length Vespucio Norte Express, Chile 520 33.0 % 65.3 65.3 3
Slide 45: HOCHTIEF Concessions: PPP Solutions Principle of life cycle valuation
HOCHTIEF Concessions: PPP Solutions Principle of life cycle valuation accumulated Cash flows monetary (nominal) units Value of Equity (DCF calculation) Cash flows (nominal) Start of operation t Construction Ramp-up Growth Maturity Risk-premium phase (%) 3 2 + Risk-premium type (%)1) 2-4 2-4 2-4 2-4
Slide 46: HOCHTIEF Concessions: PPP Solutions Projects' life cycle status
HOCHTIEF Concessions: PPP Solutions Projects’ life cycle status accumulated Cash flows monetary (nominal) units Value of Equity (DCF calculation) Cash flows (nominal) Start of operation t as of Mar 08 Construction Ramp-up Growth Maturity • Tunnel San Cristobal • Herrentunnel Lübeck Toll roads • Vien
Slide 47: HOCHTIEF Concessions: PPP Solutions Project pipeline
HOCHTIEF Concessions: PPP Solutions Project pipeline Preferred bidder Tender Phase no. of Contract/investment no. of Contract/investment projects volume1) projects volume1) Public buildings / 1 ca. 260 12 ca. 2,100 social infrastructure Toll roads 1 ca. 500 3 ca. 5,950 Total PPP Solutions pipeline v
Slide 48: Sustainability at HOCHTIEF
Sustainability at HOCHTIEF …not just a phrase…but a clear commitment • Only German construction services provider, once again in the Dow Jones Sustainability Indexes • Key focus in 07 on energy efficiency o Entry into the geothermal energy sector: Plan, finance, build and operate first entirely priv
Slide 49: Shareholder structure
Shareholder structure Regional distribution (as of March 08) 3.3% 3.0% 9.99% 3.9% 27.8% 10.0% North America Spain / Portugal 3) UK / Ireland 25.08% Germany 11.4% Russia Scandinavia France / Benelux 64.93% Other Rasperia 1) 15.4% 2) 25.3% ACS Free float 1) Rasperia Trading Ltd., Cyprus; according to
Slide 50: 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 51: Financial calendar and IR contact
Financial calendar and IR contact 14 Aug 08 Half year results 2008 and Analysts’ and Investors’ Conference 27/28 Oct 08 Capital Markets Day: HOCHTIEF Real estate 14 Nov 08 Nine month results 2008 and Conference Call 25 Mar 09 Full year results 2008 and Analysts’ and Investors’ Conference For further
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