Koninklijke Heijmans N.v. · EURONEXT:HEIJM
Koninklijke Heijmans — Non-Deal Roadshow (February 2019)
62 slides from Koninklijke Heijmans's roadshow presentation, February 2019
Slide 1: Heijmans Business Update
Heijmans Business Update ROADSHOW BOOKLET, FEBRUARY 2019, BASED ON 2018 FULL YEAR RESULTS
Slide 2: Key figures 2018
2 Key figures 2018 Key figures x 1 € million H2 2018 H2 2017 2018 2017 Revenues 799 756 1.579 1.402 Underlying EBITDA ** 23 21 43 30 Result after tax *** 12 0 20 20 Earnings per share ( in €) *** 0,57 0,00 0,96 0,91 Order book 2.014 1.898 2.014 1.898 Net debt / (net cash) -31 -14 -31 -14 Number of F
Slide 3: Contents
3 Contents • Company profile 4 - 15 • Strategy 16 - 29 • Highlights 2018 annual results / Outlook 30 - 31 • Developments per sector 32 - 41 • Financing arrangements 42 - 47 • Financial statements & Order book 48 - 53 • Annexes 54 - 62 • Resumes Executive Board 55 • Property development process 56 •
Slide 4: Company profile
HEIJMANS ONE Company profile 4
Slide 5: History
5 COMPANY PROFILE History 1923 – founded by Jan Heijmans as Infra company 1945 and beyond - strong growth following WWII 1960’s - diversification towards residential building 1980’s - diversification towards property development 1993 – listing on Amsterdam Stock Exchange 1993/2007 – strong growth th
Slide 6: Organisation chart Heijmans N.V.
Organisation chart Heijmans N.V. Property Development Property Building & Infrastructure Development Technology* * As of 1/1/2018, Residential and Non Residential were brought under central management and the name was changed into Building & Technology
Slide 7: Heijmans at a glance
7 COMPANY PROFILE • Approximately 4,500 employees work on a daily basis from these business segments in the Netherlands. More than 99% of these employees are covered by a collective labour agreement. • Creating added value by offering the client an Heijmans at a glance integrated approach with focus
Slide 8: Fenix Lofts, Rotterdam
FENIX LOFTS, ROTTERDAM
Slide 9: Living: Property Development
9 COMPANY PROFILE Living: Property Development Property Development focuses on area development of both large and smaller-scale projects in urban and out-of-town areas. It fulfills the role of both initiator, developer and seller of (mainly) residential properties. It conducts its activities from fo
Slide 10: One concept, Various applications
One concept, Various applications HEIJMANS HUISMERK (HOME BRAND)
Slide 11: Living: Residential
11 COMPANY PROFILE * As of 1/1/2018, Residential and Non Residential were brought under central management and the name was changed into Building & Technology Living: Residential Residential Building operates from five regional offices under central management. Its prime activity is new-build, but i
Slide 12: Maintenance Ministries
MAINTENANCE MINISTRIES
Slide 13: Working: Non Residential
13 COMPANY PROFILE * As of 1/1/2018, Residential and Non Residential were brought under central management and the name was changed into Building & Technology Working: Non Residential Non-Residential designs, creates and maintains high-quality electro-technical and mechanical installations (‘Service
Slide 14: Beatrix Lock PPP, Asset Management Terneuzen Lock
BEATRIX LOCK PPP - NIEUWEGEIN ASSET MANAGEMENT TERNEUZEN LOCK
Slide 15: Connecting: Infrastructure
15 COMPANY PROFILE Connecting: ASPHALT A1/A27 - UTRECHT Infrastructure Infra focuses on the construction, improvement and maintenance of the Dutch road infrastructure and public spaces, including related installations and on-site objects. This includes roads, viaducts, tunnels, locks, water treatmen
Slide 16: Strategy 2017 – 2018: Focus, discipline, excellence
16 Strategy 2017 – 2018: Focus, discipline, excellence • Transformation to purely Dutch company completed following loss making years • Focus on segments Living, Working and Connecting with approx. € 1.5 billion in revenues; • Sustainable recovery of company and its profitability, a.o. through: › De
Slide 17: Strategy 2019 - 2023
17 Strategy 2019 - 2023 FROM TO VISION: SPACIAL CONTOURS OF STRATEGIC AGENDA BASED 8 STRATEGIC THEMES TRANSLATED TOMORROW ON 3 MAIN THEMES INTO OPERATIONAL KPI’S Developments within Heijmans • To build on ‘Focus, discipline, excellence’ strategy to further enhance risk management, operational kpi’s
Slide 18: Spaarndammerbuurt - Amsterdam
SPAARNDAMMERBUURT - AMSTERDAM
Slide 19: Strategy Property Development
19 Strategy Property Development Long term goal • Growth from solid fundamentals, in margin and volume Property Development: • Turnover mix: stable EBIT- • Suburban areas (mainly via land bank) versus inner-city developments (1 on 1 / tenders): 50/50 Margin of 6-8% • Business to Consumer versus Busi
Slide 20: BeSense Pilot – Aegon Head Office
BESENSE PILOT – AEGON HEAD OFFICE
Slide 21: Strategy Building & Technology
21 Strategy Building & Technology Long term goal: • Asof 1/1/2018 Residential and Non Residential were brought under central management and stable EBIT- merged into “Building & Technology”, with commercial focus based on core competencies: Margin of 3-4% › Services: armed with its installation exper
Slide 22: A9 Gaasperdammerweg
A9 GAASPERDAMMERWEG
Slide 23: Strategy Infra
23 Strategy Infra Long term goal: • 2017 and 2018 were dominated by derisking of loss-making projects acquired in 2011-2015 stable EBIT- Margin of 3-4% • Improving predictability – especially of ‘design & build contracts’ – remains key focus going forward • Changing leadership culture and implementi
Slide 24: Dutch market
Y-o-y production volume per segment 24 Specialised construction COMPANY PROFILE Infrastructure Residential / Non Residential Total Source: CBS, adjusted by Rabobank Real Estate (2017) Dutch market Construction volume (2015 = 100) Confidence indicator construction sector Netherlands Eurozone • Y-o-y
Slide 25: Competitive strengths
Living (Residential and Property Development) 25 • Development of urban and rural areas in both small STRATEGY and large-scale projects • Combining creativity and customer focus with strength on realization • Focus on complex renovations and transformations • Standardization of concepts (e.g. Huisme
Slide 26: New Amsterdam Court House
heiymans ‘iu jHtHN HHUA | Bs Eis : : sl chaa y in event enaban ah oss a; Sel st hy
Slide 27: Restructuring provides potential
Jan-2018 Jul-2009 Apr-2012 Dec-2012 Aug-2013 Dec- 2014 Appointment of Nov-2009 2010 350 FTE Feb-2016 Feb-2017 CRO, and merge € 100 mio 2011 disposal of 250 FTE ‘Sub-10’ disposal disposal of reductions Extension Extension of Residential and rights issue restructuring Telecom activities reduction shar
Slide 28: Innovation examples
VAN GOGH – ROOSEGAARDE BICYCLE PATH COMPOSITE BRIDGE HYDROFIT SEWER RELINING Kousrelining (renovation of waterpipes) SOLAR NOISE BARRIER BIKESCOUT SOLAR GUARD RAIL RECOFLEX ASPHALT
Slide 29: Focus on innovation
29 Examples of innovations sold / ready for market launch: STRATEGY • Heijmans ONE portable house > 135 houses now sold; • Hydrofit sewer relining with DSM > several projects realised; • BikeScout: warning system to improve safety of cyclists, implemented at several locations; Focus on innovation •
Slide 30: 2018 full year results: “positive results across the board”
NATIONAAL MILITAIR MUSEUM - SOESTERBERG 2018 full year results: “positive results across the board” Ton Hillen, chairman executive board Heijmans N.V. 30 February 21, 2019
Slide 31: Highlights annual results
31 Highlights annual results • All business areas contribute to positive result • Increase in revenues by 13% to € 1,579 million • Increase underlying EBITDA by 43% to € 43 million • Net profit 2018 € 20 million (2017: € 9 million negative excl. discontinued operations*) • Order book remains well st
Slide 32: Developments per sector
WINTRACK II - TENNET WIND PARK WIERINGERMEER (DRINKING WATER PIPELINE – LOOSBROEK) Developments per sector (based on 2018 full year results) 32
Slide 33: Property development: sound growth from strong market position
33 Property development: sound growth from strong market position Property development x € 1 million H2 2018 H2 2017 2018 2017 Revenues 258 205 503 391 Underlying EBITDA 15 12 28 20 Underlying EBITDA margin 5,8% 5,9% 5,6% 5,1% Order book 435 420 435 420 • Housing market: potential for positive devel
Slide 34: Level of tension
Level of tension High 34 Medium Low Level of tension Population Households 2017 2018 2015 2015-2019 2015-2024 2015 2015-2019 2015-2024 High 7.470 259 3,5% 446 6,0% 3.432 185 5,4% 322 9,4% Strategic land 38 33 Medium 6.102 156 2,6% 262 4,3% 2.713 120 4,4% 206 7,6% Low 3.329 23 0,7% 8 0,2% 1.519 45 3,
Slide 35: Property Development: Dutch market
Property Development: Dutch market 35 Total number of houses for sale at NVM brokers Fundamentals have improved considerably since 2014 after 7 years of declining market: • Historically low interest rates, increased consumer confidence and government policies (incl. aanpak scheefwonen, capping tax d
Slide 36: Leidsche Rijn Centrum - Utrecht
LEIDSCHE RIJN CENTRUM - UTRECHT
Slide 37: Building & Technology: turnaround non-residential, structural recovery
37 Building & Technology: turnaround non-residential, structural recovery Building & Technology x € 1 million H2 2018 H2 2017 2018 2017 Revenues - Residential 227 158 440 297 Revenues - Non-Residential 150 122 286 240 Revenues - Building & Technology 377 280 726 537 Underlying EBITDA - Residential 5
Slide 38: Maintenance Contract Royal Palace – 't Loo
MAINTENANCE CONTRACT ROYAL PALACE – ‘T LOO
Slide 39: Building & Technology: turnaround non-residential, structural recovery
39 Building & Technology: turnaround non-residential, structural recovery Residential building activities • Good performance residential building activities, production at full speed • High demand for new houses, pressure on availability of subcontractors and procurement prices • Focus on controlled
Slide 40: Construction site New Amsterdam Court House, A1 Apeldoorn
CONSTRUCTION SITE NEW AMSTERDAM COURT HOUSE, EUROPEAN A1 APELDOORN MEDICINES AGENCY AND ZUIDASDOK - BEEKBERGEN – AMSTERDAM ZUIDAS
Slide 41: Infra: focus, predictability and controlled development
41 Infra: focus, predictability and controlled development Infra x € 1 million H2 2018 H2 2017 2018 2017 Revenues 342 379 654 680 Underlying EBITDA 2 15 8 16 Underlying EBITDA margin 0,6% 4,0% 1,2% 2,4% Order book 766 814 766 814 • Infra focuses on the predictability of projects, a tighter focus on
Slide 42: Financing arrangements
A1/A27 PPP Financing arrangements 42
Slide 43: Strenghtened commitment financiers
43 Strenghtened commitment financiers • In H1 syndicated bank loan extended to 1 July 2022: › Improved interest rate margins from 4% to 3%, in 2019 to 2,25%; › Accelerated reduction of total commitment to € 121 million in October, KBC no longer part of the syndicate › Covenants reassessed, new is a
Slide 44: De Schoone Ley, Den Haag
DE SCHOONE LEY, DEN HAAG
Slide 45: Progress debt reduction
45 Progress debt reduction • Net cash situation improved in 2018 by € 17 million • Average net debt (12 months rolling) improved in that same period by € 84 million, adjusted for impact sale foreign businesses in H1 2017 by about € 50 million • Result: adapted credit facility and overall costs of fu
Slide 46: Financial Covenants
Financial Covenants Amounts in € millions 2018 FY 2017 FY Net debt -30,7 -13,7 46 Adjustments: Net debt Joint Ventures 78,1 89,2 FINANCIAL STATEMENTS Net debt non recourse project finance -92,4 -95,0 Cumulative preference shares B -45,1 -45,1 Other 2,1 5,3 Net debt covenants (A) -88,0 -59,3 Financia
Slide 47: Financing in place
47 APPENDIX In addition, several project financings in place in PPP and Financing in place Property Development, both recourse and non recourse, as well as several operational and financial leases Relevant details syndicated loan facility: The most significant financing arrangements include: - € 121
Slide 48: Financial statements
ELASTOCOAST - WADDENZEEDIJK Financial statements 48
Slide 49: P&L x € 1 million H2 2018
x € 1 million H2 2018 H2 2017 2018 2017 Revenues 799 756 1.579 1.402 49 Property development 15 12 28 20 FINANCIAL STATEMENTS Residential 5 3 11 5 Non-residential 5 -5 5 -6 Building & Technology 10 -2 16 -1 Infra 2 15 8 16 Corporate/other -4 -4 -9 -5 Underlying EBITDA 23 21 43 30 P&L Correction oper
Slide 50: European Medicines Agency, Amsterdam
EUROPEAN MEDICINES AGENCY, AMSTERDAM
Slide 51: Balance sheet
Consolidated Balance Sheet (x € 1 million) 31 December 2018 31 December 2017 51 Non-current assets Property, plant and equipment 44 47 FINANCIAL STATEMENTS Intangible assets 78 80 Share in joint ventures and associates 72 66 1 Employee related receivable 0 30 Other fixed assets 59 59 253 282 Balance
Slide 52: Renovation Lefier - Emmen, Carmelflats - Beek
RENOVATION LEFIER - EMMEN CARMELFLATS - BEEK
Slide 53: Order Book
53 FINANCIAL STATEMENTS Order Book Order book (x € 1 million) 31-12-2018 30-06-2018 31-12-2017 Property development 435 451 420 Residential 508 476 435 Non-residential 694 729 589 Building & Technology 1.202 1.205 1.024 Infra 766 953 814 Eliminations -389 -406 -360 Total 2.014 2.203 1.898 OOSTENBURG
Slide 54: Appendices
MAINCONTRACT SCHIPHOL AIRPORT Appendices 54
Slide 55: Board of directors
55 Ton (A.G.J.) Hillen (1961), Member of the APPENDIX Executive Board as of 18 April 2012, Chairman of the Executive Board as of 1 December 2016. responsible for: General Affairs, Infrastructure, Property Development, Building & Technology, Innovation, HR / Management Development, Board of directors
Slide 56: Property development process
56 Property development process Process and timing unsold unsold unsold sold sold sold sold sold sold sold sold sold sold Obtaining Start Start sale Start building Delivery to consumer Land position Property development 70/80% pre-sold 1-6 years 1-2 years 3-6 months 1-2 years Revenues recognition is
Slide 57: Risk management approach
57 ANNEX • ‘Best in class’ project reporting providing good insight on project opportunities as well as risks, specific issues, cash flow and progress; Risk management • Uniform risk classification for all projects into three categories. Direct involvement from Executive Board in large and complex a
Slide 58: Towards one integrated ERP platform (SAP)
58 ANNEX • Successful deployed to all employees and now implemented in all business segments Towards one • Proven project approach and timelines (Initiated in integrated ERP 2011, Blueprint Q4 2012, start roll-out 2013, implementation completed in 2018; platform (SAP) • Generic processes based upon
Slide 59: IFRS % of completion method
59 IFRS % of completion method • Direct costing applied, i.e. the gross margin is recognized on the basis of the percentage of completion method. • In this method, 50% of the gross profit is recognized half way the project, and 100% at completion. • Suppose a EUR 100 mln with 10% gross margin and a
Slide 60: Project images in this handout
60 Project images in this handout Slide Project Locat ion Segment 4 Heijmans One Replaceable Residential 8 Fenix Lofts Rotterdam Katendrecht Property Development / Residential 9 Kanaleneiland Utrecht Property Development / Residential 10 Heijmans Huismerk (own label) Utrecht Residential 11 HAGA Den
Slide 61: Contact details / Disclaimer
61 CONTACT DETAILS HEIJMANS N.V. CONTACT: PO Box 2 Guido Peters 5240 BB Rosmalen, The Netherlands Investor Relations Heijmans www.heijmans.nl +31 73 543 5482 http://twitter.com/HeijmansNL gpeters@heijmans.nl DISCLAIMER This presentation has been prepared by and is the responsibility of Heijmans N.V.
Slide 62: heijmansnl @heijmansnl heijmans
heijmansnl @heijmansnl heijmans heijmansnl
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