Koninklijke Heijmans N.v. · EURONEXT:HEIJM
Koninklijke Heijmans — Heijmans — H1 2005 Earnings Presentation
31 slides from Koninklijke Heijmans's earnings presentation, Sep 20, 2005
Slide 1: Heijmans NV Interim results 2005
Heijmans NV Interim results 2005 20 September 2005 1
Slide 2: Innovative entrepreneur in property development, construction and infrastructure
Heijmans NV Innovative entrepreneur in property development, construction and infrastructure 20 September 2005 2
Slide 3: Disclaimer
Disclaimer • This presentation contains forward- looking statements. By their nature these involve risk and uncertainty. Forward- looking statements represent the company’s judgement regarding future events, and are based on currently available information. Consequently the company cannot guarantee
Slide 4: CBS confirms expectations for recovery in building production
CBS confirms expectations for recovery in building production 6 Growth in building production in first six 5 months of 2005 1.8% 4 3 2 1 0 -1 -2 -3 -4 -5 -6 2003 q2 2003 2004 q2 2004 2005 q2 20 September 2005 Source CBS 4
Slide 5: Spread of activities cushions risk profile
Spread of activities cushions risk profile international international property development production property development 17% 2% 6% 26% production 3% infrastructure 23% 42% 23% infrastructure 31% 27% building building Revenues EBIT € 1,446 million* € 66 million* * Before elimination of intercompan
Slide 6: Key points in first half of 2005
Key points in first half of 2005 • No work rather than poor work • Growth in turnover and earnings in almost all core activities • Substantial contribution by major infra projects and additions to order book • Growth in owner-occupied homes • No improvement in offices market • Further organic growth
Slide 7: Developments in first half of 2005 according to expectations
Heijmans: developments in first half of 2005 according to expectations In € mln 2005 2004 difference Revenues 1,272 1,202 6% EBIT 63 50 26% Net profit 35 23 52% Net margin 2.8% 1.9% Order book 2,632 2,439* 8% 20 September 2005 * Position at end of year 7
Slide 8: All core activities performed better
All core activities performed better EBIT in € mln 1st half of 2005 1st half of 2004 2004 Property development 28 27 60 Building 17 13 33 Infrastructure 15 12 28 Production 2 5 4 International 4 1 11 Sector totals 66 58 136 Not allocated -3 -8 -41 EBIT result 63 50 95 20 September 2005 8
Slide 9: Result increase after correction for incidental items: 12%
Result increase after correction for incidental items: 12% EBIT in € mln 1st half of 2005 1st half of 2004 Sector totals 66 58 Including: Reorganisation costs 3 4 Book profit Opstalan -5 0 Winding up of NeHoBo 0 -3 Vacancy costs 2 0 EBIT excl. incidental 66 59 items 20 September 2005 9
Slide 10: Property development: sustained growth
Property development: sustained growth In € mln 2005 2004 difference Revenues 370 341 9% EBIT 28 27 4% Order book 773 730 6% • Sale of homes on track for 10% growth to approx. 3,800 in 2005 • Provisions maintained for risks of unsold commercial property 20 September 2005 10
Slide 11: Unsold and unlet space in commercial property declining very slightly
Unsold and unlet space in commercial property declining very slightly In m2 30 June 2005 End of 2004 30 June 2004 Unsold 59,700 62,750 63,250 Of which let 12,800 14,225 12,625 Of which unlet 46,900 48,525 50,625 20 September 2005 11
Slide 12: Owner-occupied homes: solid basis for Heijmans' growth
Owner-occupied homes: solid basis for Heijmans’ growth • Stable development in demand • Enormous development potential • Growth in tailor-made “Wenswonen®” product • Success with full-service projects 20 September 2005 12
Slide 13: Owner-occupied market: moderate price development
Owner-occupied market: moderate price development (before correction for inflation) 18,00% 16,00% 14,00% 12,00% 10,00% 8,00% 6,00% 4,00% 2,00% 0,00% 1998 1999 2000 2001 2002 2003 2004 1st half of 2005 10 years mortgage interest rate change in prices Ned 20 September 2005 13
Slide 14: Demographic factors keep demand up
Demographic factors keep demand up birth-rate surplus per 1.000 number of people per home 2,7 6 4 2,4 2 2,1 0 1,8 1995 2000 2004 1990 1995 2000 2005 • Number of households increases by approx.20,000 a year • Shortage of homes estimated at 170,000 as of 2005 20 September 2005 14
Slide 15: Development potential increased by 1,000 to 47,000 homes
Development potential increased by 1,000 to 47,000 homes (46,000 at the end of 2004) Number of homes • Target from approximately 3,800 in 2005 to 4,500 in 2008 17,000 • Plan to sell 50 to 60% homes by 2010 at the latest 30,000 • Size approximately 1200 hectares landbank competitions 20 September 200
Slide 16: Full area development Meer en Oever - Amsterdam
Full area development Meer en Oever - Amsterdam • 840 homes • 6,000 m2 commercial and medical and social space: – Creche – Quality of life service point – Health centre – Restaurant • Construction in progress • Completion 2006 20 September 2005 16
Slide 17: Full area development De Tuynen van Breloft - Noordwijk
Full area development De Tuynen van Breloft - Noordwijk • 280 housing units • Multistorey car park • Creche/ after-school programme • Sports facilities • Healthcare facilities • Commercial space In development Completion 2010 20 September 2005 17
Slide 18: Target for 2008: 4,500 homes
Target for 2008: 4,500 homes 5000 4000 3000 2000 1000 0 2002 2003 2004 2005e 2006 2007 2008t landbank competitions 20 September 2005 18
Slide 19: Building: growth in first half of year
Building: growth in first half of year In € mln 2005 2004 difference Revenues 448 406 10% EBIT 17 13 31% Order book 953 990 -4% • Increased demand for more calls for tenders • Market volume for education and healthcare remains up to standard • Market volume for commercial offices stable at low level
Slide 20: House-building and education/healthcare sectors compensate decline in commercial market
House-building and education/healthcare sectors compensate decline in commercial market 2000 1500 Construction needs in healthcare and education 1000 market remain at a high level 500 0 2002 2003 2004 2005e healthcare education House-building Private commercial building 11% Public commercial buildin
Slide 21: Infrastructure: substantial contribution by major projects
Infrastructure: substantial contribution by major projects In € mln 2005 2004 difference Revenues 338 320 6% EBIT 15 12 25% Order book 667 603 11% • Market volume improving, competitive prices • Major projects at completion stage; additions to order book in progress • Many new projects coming onto t
Slide 22: Infrastructure division is a partner for central and local government
Infrastructure division is a partner for central and local government 6% 22% 30% 42% central government local government public preselected tenders one on one companies internal 20 September 2005 22
Slide 23: Production
Production In € mln 2005 2004 difference Revenues 39 53 -26% EBIT 2 5 -60% Order book 28 41 -32% • Divestment of Opstalan (over € 5 million book profit) • Disappointing results from Bestcon 20 September 2005 23
Slide 24: International: Earnings growth
International: Earnings growth In € mln 2005 2004 difference Belgium 125 139 United Kingdom 102 84 Germany 24 24 Revenues 251 247 2% EBIT 4 1 Order book 528 506 4% • Completion of HSL in Belgium • Powerful development in United Kingdom • Germany: break-even 20 September 2005 24
Slide 25: United Kingdom: growth potential for Heijmans
United Kingdom: growth potential for Heijmans 40% 30% 20% 10% 0% -10% social housing non-subsidised infrastructure public property commercial housing property expected growth 2005-2007 20 September 2005 Source: Experian 25
Slide 26: Leadbitter: long-term organic growth
Leadbitter: long-term organic growth € mln 250 200 150 100 50 0 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005e • Leadbitter grew organically from 1987 to 2005 by 20% a year on average • Future growth also through add-on acquisitions 20 September 2005 26
Slide 27: Full service: from construction to service provision
Full service: from construction to service provision • Examples of full service projects in first half of 2005 – Various development competitions total 2000 homes € 400 million – Framework contract for care homes in England € 65 million – Design & build western ring-road Sittard- Geleen € 20 million
Slide 28: Broader financial scope: net debt decreasing; shareholders' equity increasing
Broader financial scope (in € million): net debt decreasing; shareholders’ equity increasing 800 700 600 500 400 300 200 100 0 2003 30-jun-04 2004 30-jun-05 net debt shareholders' equity 20 September 2005 28
Slide 29: Dividend pay out
Dividend pay out eps dividend 4 3,5 3 2,5 2 1,5 1 0,5 0 2000 2001 2002 2003 2004 2005e Pay out ratio 51,5% 71,8% 40% 20 September 2005 29
Slide 30: Prospects for whole of 2005
Prospects for whole of 2005 • Order book +8% (compared to end of 2004) partly due to: – Strong growth in owner-occupied housing (+10%) – Many new infrastructure projects – Continuing steady growth United Kingdom • Net profit approximately € 85 million (increase of 21% compared to 2004 IFRS result of
Slide 31: Contact
Contact • Investor relations Fons van Lith Heijmans NV Graafsebaan 65 5248 JT Rosmalen Tel: +31 73 5435232 Fax: +31 73 5435220 Mobile: +31 651 314952 E- mail: flith@heijmans.nl 20 September 2005 31