Hochtief Aktiengesellschaft · XETR:HOT
Hochtief Aktiengesellschaft — FY2002 Earnings Presentation
34 slides from Hochtief Aktiengesellschaft's earnings presentation, April 2003
Slide 1: HOCHTIEF - building value on sound foundations
HOCHTIEF - building value on sound foundations Full year results 2002 Roadshow April 2003 Dr. Hans-Georg Vater, CFO 1
Slide 2: Highlights 2002
Highlights 2002 - New orders up by 1.8% to EUR 14.4bn - Order backlog of more than EUR 14bn (+1.8%) - Operating earnings up by 19% to EUR 156m - Earnings after tax +16% (EUR 90m) - Net income increased by more than 80% to EUR 43m - Dividend increased by 10% to EUR 0.55 (proposal) 22
Slide 3: Highlights 2002 (continued)
Highlights 2002 (continued) - 84% of work done generated on the international markets, up from 81.5% - 29% of work done now generated from services businesses - Airport management position strengthened (now 49% in Hamburg; 15% in Sydney) - Expansion of market position in PPP infrastructure projects
Slide 4: Key drivers in 2002
Key drivers in 2002 Positives: Construction: Significant reduction of losses in Germany Americas: Record earnings at Turner Asia Pacific: Again a strong contribution to the Group Airport: Management fee for successful acquisition of Sydney Airport Development: Sale of real estate company Monachia Ne
Slide 5: Building value on sound foundations
Building value on sound foundations Going forward: - We will continue our international focus. - We will enhance the benefits of our global network. - We will grow our profitable businesses, particularly the services sector. - We will continue to spearhead innovation in our industry. - We expect Con
Slide 6: International focus
International focus - 2nd most international construction group globally - Focus on Group-wide knowledge transfer and innovation - global key account management - risk management techniques (e.g. contract review committee) - PreFair concept for European markets - Continued world-wide co-operation be
Slide 7: HOCHTIEF - an international leader
HOCHTIEF - an international leader 2001 Sales (USD bn) 2002 Work done (EUR m) 14.000 18 16 Top Global Contractors 12.000 Top German Contractors 14 10.000 12 8.000 10 6.000 8 6 4.000 4 2.000 2 0 0 HOCHTIEF Bilfinger Berger Walter Strabag Zueblin Vinci Skanska Bouygues Kajima HOCHTIEF 2001 Sales (USD
Slide 8: Services focus
Services focus Services % contribution to work done Contribution in 2002: 60% 50% Development: 5% 50% Airport: < 1% 40% Telecommunications: 29% 30% 2% 20% Contract Mining: 8% Other: 4% 10% Construction 0% Management at fee: 29% 9% 2002 2007E Service activities steadily increase importance for the ov
Slide 9: Services focus (continued)
Services focus (continued) Public Private Partnership (PPP): - Long term contracts, stable cash flow, high margins - EUR 45bn toll road project tenders expected globally until 2009 - over EUR 5.5bn in German PPP projects alone - HOCHTIEF positioned as one of the leading players in the world - 17 PPP
Slide 10: Outlook 2003
Outlook 2003 - Airport: Slight increase in operating earnings - Development: Slight increase in operating earnings (readjusting for Monachia) - Americas: Stable operating earnings on a high level - Asia Pacific: Stable operating earnings on a high level - Europe: German construction expected to brea
Slide 11: Full year results 2002: Financials
Full year results 2002: Financials 11 11
Slide 12: Full year results 2002
Full year results 2002 (EUR m) Jan-Dec Jan-Dec change 2002 2001 absolute % - Significant reduction of losses at HT New orders 14,430 14,179 +251 +2 Construction Work done 12,782 12,978 -196 -2 - Sale of Monachia Order backlog 14,075 13,828 +247 +2 - Stable earnings at Turner and Leighton External sa
Slide 13: Regional breakdown (work done)
Regional breakdown (work done) Germany 2002 EUR 2,057m (16%) 2001 EUR 2,395m (18%) Rest of Europe 2002 EUR 760m (6%) 2001 EUR 561m (4%) America 2002 EUR 6,727m (53%) 2001 EUR 7,214m (56%) Africa Asia/Pacific 2002 EUR 15m (<1%) 2002 EUR 3,223m (25%) 2001 EUR 25m (<1%) 2001 EUR 2,783m (22%) 13 13
Slide 14: Divisional breakdown
Divisional breakdown New orders (EUR m) Work done (EUR m) 16000 14.000 Airport Airport 14000 12.000 12000 Construction Construction 10.000 10000 Development Development 8.000 8000 Americas Americas 6.000 6000 Asia Pacific Asia Pacific 4000 4.000 International International 2000 2.000 Other Other 0 0
Slide 15: Airport
Airport (EUR m) Jan-Dec Jan-Dec % change Key drivers 2 0 0 2 2001 • New orders: Sydney airport management New orders 22 12 +83 fee contribution Work done 22 12 +83 • CAPEX: investments in Hamburg Airport Sales 21 0.5 +4100 (EUR 107m) and EBITDA 12 11 +9 Sydney Airport (EUR 61m*) EBITDA margin (%) 57
Slide 16: Construction
Construction (EUR m) Jan-Dec Jan-Dec % change Key drivers: 2 0 0 2 2001 • New orders: increased despite tighter risk New orders 2,333 2,159 +8 control (low 2001 basis) Work done 2,004 2,372 -16 • Work done: reduced volume and scaled Order backlog 2,654 2,364 +12 down capacities to the volume of appr
Slide 17: Development
Development (EUR m) Jan-Dec Jan-Dec % change Key drivers: 2 0 0 2 2001 • Work done/sales: major projects completed: Central Park Frankfurt (EUR New orders 700 643 +9 59m), Westsite Munich (EUR 43m) Work done 504 401 +26 Order backlog 827 631 +31 • Operating earnings: EUR 90m net profit Sales 447 310
Slide 18: Americas
Americas (EUR m) Jan-Dec Jan-Dec % change Key drivers: 2 0 0 2 2001 • New orders: Turner in USD with high and steady figures (USD 7bn) New orders 7,436 7,991 -7 Work done 6,724 7,197 -7 • Work done/sales: increased share of Order backlog 5,770 6,091 -5 construction management projects Sales 6,454 6,
Slide 19: Asia Pacific
Asia Pacific (EUR m) Jan-Dec Jan-Dec % change Key drivers: 2 0 0 2 2001 • New orders: strong increase due to several big projects New orders 3,554 2,966 +20 Work done 3,072 2,705 +14 • Order backlog: record high at Leighton Order backlog 4,558 4,385 +4 Holdings Sales 3,138 2,756 +14 • Operating earn
Slide 20: International
International Key drivers: (EUR m) Jan-Dec Jan-Dec % change 2 0 0 2 2001 • New orders: reduced capacities, selective order intake and difficult markets New orders 299 408 -27 • Work done/sales: increase due to several Work done 370 291 +27 big projects (Lesotho Highlands Water Order backlog 266 357
Slide 21: Cash flow
Cash flow Key drivers: Jan-Dec 2002 2 0 0 1 % change • Operating activities: strong (EUR m) increase due to significant cut in losses from German construction Cash flow 374 160 +134 activities, cash inflow from Net cash used in/provided by operating activities 503 233 +116 Monachia sale and changes
Slide 22: Consolidated balance sheet
Consolidated balance sheet Assets Liabilities Key drivers 31 Dec ‘02 31 Dec ‘01 31 Dec ‘02 31 Dec ‘01 • Overall negative impact of EUR/USD exchange rate (in EUR: Turner balance sheet decreased by 14%) Shareholders‘ 1,940 2,175 equity and • Fixed assets: 2,233 2,218 (27%) minority Fixed Assets (25%)
Slide 23: Performance indicators
Performance indicators 2002 2001 % change (% unless stated) EBITDA margin 3.5 3.1 +13 Operating earnings margin 1.3 1.1 +18 EPS (EUR) 0.69 0.38 +82 ROCE 9.2 8.2 +12 HOCHTIEF - returning to former profitability. 23 23
Slide 24: Appendix
- Appendix - 24 24
Slide 25: Breakdown Airport
Breakdown Airport Passengers (mio.) Air traffic movements Sales (EUR m) Aviation Non-Aviation Total Jan - Dec 2 0 0 2 2 0 0 1 % change 2002 2 0 0 1 % change % change % change % change 2002 2001 2002 2001 2002 2001 Düsseldorf* 1 1 4 . 7 5 15.40 -4.2 190,256 193,514 -1.7 2 0 1 . 1 6211.90 -5.1 9 1 . 2
Slide 26: Breakdown Construction
Breakdown Construction (EUR m) New orders Sales EBITDA Op. earnings Jan-Dec 2002 2 0 0 1 % change 2002 2 0 0 1 % change 2002 2 0 0 1 % change 2002 2 0 0 1 % change Building 1,404 1,504 -7 1,197 1,463 -18 -99 -168 +41 -107 -178 +40 Civil 884 600 +47 255 359 -29 -1 15 -103 -3 11 -125 Streif Baulogisti
Slide 27: Breakdown Development
Breakdown Development (EUR m) New orders Sales EBITDA Op. earnings Jan - Dec. 2002 2 0 0 1 % change 2002 2 0 0 1 % change 2002 2 0 0 1% change 2002 2 0 0 1 % change Infrastructure 2 1 +100 2 4 -50 -6 -3 -100 -6 -3 -100 Real estate 458 522 -12 321 249 +29 21 28 -25 18 13 +38 Facility Mgmt. 89 81 +10
Slide 28: Breakdown Americas
Breakdown Americas (EUR m) New orders Sales EBITDA Op. earnings Jan - Dec. 2002 2 0 0 1 % change 2002 2 0 0 1 % change 2002 2 0 0 1% change 2002 2 0 0 1 % change Turner 7,303 7,889 -7 6,399 6,841 -6 126 130 -3 102 106 -4 Aecon - - - - - - 4 3 +33 4 3 +33 Kitchell - - - - - - 3 2 +50 3 2 +50 Argentin
Slide 29: Breakdown International
Breakdown International (EUR m) New orders Sales EBITDA Op. earnings Jan - Dec. 2002 2 0 0 1 % change 2002 2 0 0 1 % change 2002 2 0 0 1% change 2002 2 0 0 1 % change Ballast Nedam - - - - - - -103 1 0 -1,130 -103 10 -1,130 HT Polska 109 232 -53 173 128 +35 <1 -24 n.a. <0 -26 n.a. HT VSB 149 119 +25
Slide 30: Reconciliation earnings from operating activities to EBT
Reconciliation earnings from operating activities to EBT HT Group Airport C o n s t r u c t i oD n e v e l o p m e n tA m e r i c a s Asia P a c i f i cI n t e r n a t i o n H a le a d q u a r t (EUR m) Other Jan-Dec 2 0 0 2 2 0 0 12 0 0 22 0 0 1 2 0 0 2 2 0 0 12 0 0 22 0 0 12 0 0 22 0 0 1 2 0 0 2 2
Slide 31: Profit and loss account for 2002 by division
Profit and loss account for 2002 by division 31 31
Slide 32: Detailed cash flow
Detailed cash flow Jan-Dec 2002 2001 (EUR ’000) Net income 43,312 23,865 Minority shareholders’ interests 46,955 54,151 Earnings after taxes 90,267 78,016 Depreciation/write-ups 352,010 267,657 Changes in long-term provisions -8,744 -5,407 Changes in deferred taxes -90,923 -96,473 Other cash income
Slide 33: HOCHTIEF Group structure 2003
HOCHTIEF Group structure 2003 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 HOCHTI
Slide 34: Financial calendar
Financial calendar 13 May 2003 First quarter results 2003 and conference call 04 June 2003 Annual General Meeting 26 August 2003 Half year results 2003 and analyst and investor conference 19 November 2003 Third quarter results 2003 and conference call 16 February 2004 Preliminary results 2003 31 Mar
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