Koninklijke Heijmans N.v. · EURONEXT:HEIJM
Koninklijke Heijmans — Heijmans — FY2008 Earnings Presentation
36 slides from Koninklijke Heijmans's earnings presentation, Apr 29, 2009
Slide 1: Full-year figures for 2008
Full-year figures for 2008 Executive Board
Slide 2: Introduction
Section 1 Introduction 29 April 2009 Full-year figures 2008 2
Slide 3: Developments at Heijmans in 2008
Developments at Heijmans in 2008 • Net result € 34 million negative, mostly due to impairments • Depreciation goodwill € 34 million • Losses in Building and Road building in the Netherlands and Belgium • Good results in Technical Services (NL), Germany and United Kingdom • Results for Property Devel
Slide 4: Overview strategic restructuring
Overview strategic restructuring Clear strategic choice for downsizing • Focus on three strong core activities in the Netherlands • Disposal of foreign operations, except for Infrastructure Belgium • Further streamlining and flexibilisation of core activities • Improvement contract, risk- and projec
Slide 5: Overview financial restructuring
Overview financial restructuring Strengthen capital position and new agreements with financiers • Fully underwritten €100 million rights issue • New arrangements with banks and providers of guarantees • Asset disposals to be used to reduce debt • Repurchase of US private placement (USPP notes) • Adj
Slide 6: Full-year figures 2008
Section 2 Full-year figures 2008 29 April 2009 Full-year figures 2008 6
Slide 7: Key figures 2008
Key figures 2008 In € millions 2008 2007 Revenues 3,631 3,732 Operating profit -14 88 Results after tax -34 56 Operating cash flow 80 259 Order book 3,004 3,248 Net debt position (year end) 331 366 29 April 2009 Full-year figures 2008 7
Slide 8: Composition of operating profit
Composition of operating profit Development per sector (amounts in € millions) 2008 2007 Netherlands Property development 52 82 Construction -54 -53 Infra -1 22 Engineering 9 7 6 58 Foreign countries Belgium -29 8 UK 13 13 Germany 14 8 -2 29 Gain on sale of subsidiaries 21 2 Release of profit elimin
Slide 9: Streamlining of activities 2008
Streamlining of activities 2008 • Focus on three core activities in which Heijmans has strong positions in the Netherlands: 1) Property Development and Residential Construction: Property development (area development / project development / housing- plus); 2) Non-residential Construction and Technic
Slide 10: Property Development NL: key figures 2008
Property Development NL: key figures 2008 In € millions 2008 2007 Revenues 875 1,015* EBITA 52 82 Operating profit 37 82 Operating margin 4.2% 8.1% Order book 746 786 * 2007 including € 137 million in revenues from the sale of commercial property from stock with no margin. 29 April 2009 Full-year fi
Slide 11: Property Development NL: results down
Property Development NL: results down • Number of homes sold fell by more than 35% to 2,159 (2007: 3,421); • Margin fell to 4.2% due to rising building costs and erosion of margin due to declining demand in home sales; • Impairment in the amount of € 15 million • Policy aimed at reducing land positi
Slide 12: Building NL: key figures 2008
Building NL: key figures 2008 In € millions 2008 2007 Revenues 797 806 EBITA -54 -53 Operating profit -55 -53 Operating margin -6.9% -6.6% Order book 723 882 29 April 2009 Full-year figures 2008 12
Slide 13: Building NL: heavy losses in 2008 as well
Building NL: heavy losses in 2008 as well • Losses due to inadequate risk, contract- and projectmanagement; • From Q4 onwards, some easing in the costs of materials and hiring subcontractors; • Order book fell to € 723 million as result of selective acceptance policy; • Reduction jobs and locations
Slide 14: Infrastructure NL: key figures 2008
Infrastructure NL: key figures 2008 In € millions 2008 2007 Revenues 926 911 EBITA -1 22 Operating profit -3 22 Operating margin -0.3% 2.4% Order book 765 855 29 April 2009 Full-year figures 2008 14
Slide 15: Infrastructure NL: Measures taken in Road building
Infrastructure NL: Measures taken in Road building • Poor performance by Infrastructure due to losses on large(r) projects, extra depreciation on asphalt plants and cost levels too high; • Measures taken in Road building: jobs eliminated - from six to four plants and reduction in number of locations
Slide 16: Technical services NL: key figures 2008
Technical services NL: key figures 2008 In € millions 2008 2007 Revenues 285 229 EBITA 9 7 Operating profit 7 5 Operating margin 2.5% 2.2% Order book 257 292 29 April 2009 Full-year figures 2008 16
Slide 17: Technical services NL: positive development
Technical services NL: positive development • Higher revenues and improved profitability of installation engineering activities; • Increase in projects and synergy benefits due to cooperation with other parts of Heijmans; • Order book has declined (€ 257 million). 29 April 2009 Full-year figures 200
Slide 18: International: key figures 2008
International: key figures 2008 In € millions 2008 2007 Belgium 265 348 United Kingdom 406 378 Germany 453 412 Revenues 1.124 1.138 Belgium -38 10 United Kingdom 12 12 Germany 10 7 Operating profit -16 29 29 April 2009 Full-year figures 2008 18
Slide 19: Key points International
Key points International • Belgium: heavy losses in building and property development due to depreciation on property positions and construction projects. Good results from infrastructure activities. Order book declined to € 159 million. • United Kingdom: Leadbitter continues to benefit from strong
Slide 20: Development in equity
Development in equity 500 • Decrease in equity to € 371 450 million due to negative net 400 results and payment of 350 dividend (€ 35 million); 300 • Net debt decreased to € 331 250 million; 200 150 • Debt and interest cover ratios 100 achieved. 50 0 2007 2008H1 2008 Equity Net debt 29 April 2009 Fu
Slide 21: Strategic focus and restructuring
Section 3 Strategic focus and restructuring 29 April 2009 Full-year figures 2008 21
Slide 22: Clear strategic choice for downsizing
Clear strategic choice for downsizing • Focus on three strong core activities in the Netherlands • Disposal of foreign operations, except for Infrastructure Belgium • Further streamlining and flexibilization of core activities • Improvement contract, risk- and projectmanagement • Establishing adequa
Slide 23: Focus on three strong Dutch activities
Focus on three strong Dutch activities Focus on the Dutch market via three strong activities: - Property Development & Residential Building – scale down activities - Non-residential Building & Technical Services – focus on selective high grade projects - Infrastructure – improvement on returns from
Slide 24: Further streamlining and flexibilisation core activities (1/2)
Further streamlining and flexibilisation core activities (1/2) Consolidation and scale back Property Development and Residential Building activities will lead to: • Cost savings due to closure of locations and reduction in number of jobs • New projects postponed or redeveloped • Increase synergy eff
Slide 25: Further streamlining and flexibilisation core activities (2/2)
Further streamlining and flexibilisation core activities (2/2) Central management Non-residential Building and Technical Services: • Ensures efficiency • Limits project risks • Focus on high-grade projects • With demand for Non-residential building and Technical Services • Distinctive in health sect
Slide 26: Financial restructuring
Section 4 Financial restructuring 29 April 2009 Full-year figures 2008 26
Slide 27: Underwritten rights issue of €100m
Underwritten claim emission of €100m • Rights issue of €100m underwritten by banks; • Shareholder approval will be requested during the General Meeting of Shareholders on 27 May 2009; • The holders of preference shares have all indicated to vote in favour of the necessary shareholders’ resolutions.
Slide 28: Repurchase US private placement
Repurchase US private placement • Heijmans has reached agreement with the US institutional investors on the repurchase of $125 million private placement. • Banks will provide bridge financing to enable Heijmans to repurchase the USPP notes in the short term. The bridge financing will be repaid using
Slide 29: Adjusted terms and conditions of banks and providers of guarantee facilities
Adjusted terms and conditions of banks and providers of guarantee facilities • Existing bank facility will be continued by all banks with adjustments to a number of conditions: • Interest rate: EURIBOR + 350bps • Term until 24 March 2012 • Reduction in two steps of €50 million to €300 million by 24
Slide 30: Adjusted terms and conditions of €66m preference share capital
Adjusted terms and conditions of €66m preference share capital • Heijmans has reached agreement with the holders of preference shares on the dividend revision as of 1 January 2009; • The dividend has been set at 7.25%; • The dividend revision period has been reduced to 5 years; • The anti-dilution m
Slide 31: Conclusion
Section 5 Conclusion 29 April 2009 Full-year figures 2008 31
Slide 32: Heijmans – clear choice for downsizing
Heijmans – clear choice for downsizing • Transformation into a Dutch building company with a: • Strong position as developer and builder in residential building, • High quality niche market position in non-residential building and technical services • Leading position in infrastructure • Solid (dele
Slide 33: Questions and answers
Questions and answers 29 April 2009 Full-year figures 2008 33
Slide 34: Disclaimer
Disclaimer This announcement is not for release, distribution or publication, whether directly or indirectly and whether in whole or in part, into or in the United States, Australia, Canada or Japan. • This presentation is only provided in the Netherlands to people with a professional background in
Slide 35: Disclaimer
Disclaimer • This presentation will only be distributed to and is only directed at: (i) persons who are outside the United Kingdom; or (ii) to investment professionals falling within Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (the Order); or (iii) h
Slide 36: 29 April 2009 Full-year figures 2008
29 April 2009 Full-year figures 2008 36