HOCHTIEF Aktiengesellschaft · XETR:HOT
HOCHTIEF Aktiengesellschaft — Investor Day (November 2006)
44 slides from HOCHTIEF Aktiengesellschaft's investor day presentation, Nov 17, 2006
Slide 1: HOCHTIEF AirPort: Portfolio management and growth strategy
HOCHTIEF AirPort: Portfolio management and growth strategy Reiner Schränkler CFO HOCHTIEF AirPort CEO HOCHTIEF AirPort Capital HOCHTIEF Capital Markets Day - Concessions and operation Frankfurt, November 17, 2006
Slide 2: Content
Content The HOCHTIEF AirPort: Portfolio management and growth strategy 1. The HTA portfolio and its development 2. Portfolio valuation 3. HTA in the HOCHTIEF group 4. Quo vadis HTA? Strategy and outlook Page 2
Slide 3: The HTA portfolio
The HTA portfolio Athens Int. Düsseldorf Hamburg Sydney Tirana Int. 2005 Airport International Airport Airport (FY 2006) Airport HTA share 26.7% 20% 26.1% 5.4% 47% HTAC share 13.3% 10% 13.1% 5.1% --- PAX in m 14.3 15.5 10.7 29.1 0.8 Cargo in t 181,000 57,458 24,245 n. a. 15,382 ATM 116,000 200,619 1
Slide 4: Athens International Airport
Athens International Airport Page 4
Slide 5: Athens International Airport: Facts and figures
Athens International Airport Facts and figures Shareholders In 2005: 55.0% Greek State Passengers 14.3m Aircraft movements 181,000 26.7% HTA Cargo 116,000t 13.3% HTAC Employees c. 700 5.0% ABB Revenues in m. 331.4 € Aviation in m. 201.6 € Investment criteria Non-Aviation in m. 129.8 € EBITDA in m. 2
Slide 6: Athens International Airport: Realizing Potential
Athens International Airport Realizing Potential • Break-even in second year of operation • Optimized service for passengers (3rd place in the category Best Domestic Airport worldwide, AETRA Global Service Excellence Award 2005) Turnover in EUR million* Passenger figures (total passenger volume in m
Slide 7: Outlook Athens International Airport 2006
Outlook Athens International Airport 2006 Traffic • PAX growth Q3 2006 + 4.2 percent Non-Aviation • First development phase of the business park at Athens Airport completed; the final tenants due to move into their premises early 2007 (D.I.Y. store, factory outlet) • Start of marketing for the secon
Slide 8: Düsseldorf International
Düsseldorf International Page 8
Slide 9: Düsseldorf International: Facts and figures
Düsseldorf International Facts and figures Shareholders In 2005:* 50% City of Düsseldorf Passengers 15.5m Aircraft movements 200,691 20% Aer Rianta Int. cpt Cargo** 57,458 t 20% HTA Employees c. 1,213 10% HTAC Revenues in m. l 276.1€ Aviation in m. l175.1 € Non-Aviation in m. l101.0 € Investment cri
Slide 10: Düsseldorf International: Realizing Potential
Düsseldorf International Realizing Potential • New “Airport City“ in progress, three anchor projects already defined: underground garage (completed), hotel and convention center, office building for German engineers‘ association • Expansion of non-aviation business • Attracting larger aircraft sizes
Slide 11: Outlook Düsseldorf International 2006
Outlook Düsseldorf International 2006 Traffic • PAX growth Q3 2006 + 6.7 percent • Traffic in 2006 expected to rise by about 1 million passengers • Rise triggered by permit extension • Strongly growing carriers: Lufthansa, Air Berlin and dba • Non-European traffic growing by 12.5 % • World Cup effec
Slide 12: Hamburg Airport
HOCHTIEF AirPort me Bey ill =a fe: - ae
Slide 13: Hamburg Airport: Facts and figures
Hamburg Airport Facts and figures Shareholders In 2005*: 51.0% City of Hamburg Passengers 10.7m 26.1% HTA Aircraft movements 156,128 Cargo** 24,245 t 13.1% HTAC Employees ca. 650 9.8% Aer Rianta Int. Revenues in m. b203.4 € Deutschland GmbH Aviation in m. B 133.9 € Investment criteria Non-Aviation i
Slide 14: Hamburg Airport: Realizing Potential
Hamburg Airport Realizing Potential • Expansion and modernization program HAM 21 • Opening of new terminal in May 2005 • A new Shopping Plaza between the terminals is under construction Turnover Passenger figures (in EUR m) (passenger volume total in m) 183.8 186.8 198.6 203.4 8.9 9.5 9.9 10.7 200 1
Slide 15: Outlook Hamburg Airport 2006
Outlook Hamburg Airport 2006 Traffic • PAX growth Q3 2006 + 10.7 percent • More than 11 million passengers expected in 2006 • Successful expansion of low-cost carrier business (share of total traffic up from 23 to 28 percent in the past 12 months) • Route promotion program implemented successfully •
Slide 16: Sydney Airport
HOCHTIEF AirPort Sydney Airport
Slide 17: Sydney Airport: Facts and figures
Sydney Airport Facts and figures Shareholders In 2006*: 63.6% var. Macquarie funds Passengers 29.1m 20.9% Ferrovial 5.4% HTA Employees c. 290 5.1% HTAC Revenues in m. 659.3 A$ Aviation in m. 316.4 A$ 4.9% Ontario Teachers‘ Non-Aviation in m. 327.5 A$ Pension Plan Board Investment criteria EBITDA in
Slide 18: Sydney Airport: Realizing Potential
Sydney Airport Realizing Potential • EBITDA increased by 6.2 percent in 2005/2006 • Reorganization of corporate structures and work sequences • Preparation of a long-term master plan • Refinancing and extraordinary dividends Turnover Passenger figures (in EUR m) (passenger volume total in millions)
Slide 19: Outlook Sydney Airport Q3 2006
Outlook Sydney Airport Q3 2006 Traffic • PAX growth Q3 2006 +3.1 percent • FY 2006: more than 29 million Pax for the first time • Positive development of low-cost traffic: now 30% of traffic • Inclusion of low-cost flights in the medium- and long-haul segment (Jetstar) growth opportunities Non-Aviat
Slide 20: Tirana International Airport
Tirana International Airport Page 20
Slide 21: Tirana International Airport: Facts and Figures
Tirana International Airport Facts and Figures Shareholders In 2005: 47.0% HTA Passengers 0.8 m 31.7% DEG Aircraft movements 15,382 21.3% AAEF Cargo 2,000 t Employees 203 Art of privatization: Investment criteria BOOT Concession Duration: 20 years i • Albania‘s only international airport HTA entry:
Slide 22: Tirana International Airport – Realizing Potential
Tirana International Airport – Realizing Potential • Expansion program (2005-2007): - New passenger terminal (opening Spring 2007) - Access road, bridge, cargo terminal - Perimeter road, parking areas and other buildings - Conversion of existing terminal into an office building • HTA develops and op
Slide 23: Outlook Tirana International Airport 2006
Outlook Tirana International Airport 2006 Traffic • PAX growth Q3 2006 +13.6 percent • Positive development of low-cost traffic: already more than 20% of total traffic (April-December 2005: 5%) • Successful airline marketing: Three new airlines on flight schedule Non-Aviation • HTA, as master conces
Slide 24: Active airport management by HTA
Active airport management by HTA All assets have developed strongly since entry of HTA despite traffic shock in 2001/2002. 35 40 +37% 30 35 25 30 25 20 +20% 20 15 +13% 15 10 10 5 5 +5% 0 0 in m ATH DUS * HAM SYD FY 06 % ATH DUS HAM SYD Entry HTA 2005 average growth of NA revenues per pax since entry
Slide 25: Low-cost carrier development in the HTA portfolio
Low-cost carrier development in the HTA portfolio • Worldwide growth in low-cost traffic • HTA has significantly increased the LCC proportion at its airports, without offering special terms to low-cost carriers. • HTA airports are not dependent on LCC traffic. 21% 25 20 15% Growth of LCC proportion
Slide 26: Development of non-aviation business in HTA portfolio
Development of non-aviation business in HTA portfolio • Stepped-up expansion of offers outside the actual aviation sector (retail, duty-free, duty-paid, food & beverage), parking, advertising, new business developments) and optimization of existing offers • More than 40 percent of the revenues of th
Slide 27: Recent projects in the non-aviation sector
Recent projects in the non-aviation sector Projects up to 2008: Athens: Business Park, Exhibition and Conference Center (planned) Düsseldorf: Business Park Airport City (Hotel- and convention center, office premises), extension of parking areas Hamburg: Shopping Plaza between terminals, airport hote
Slide 28: Contribution of HTA airport network
Contribution of HTA airport network • Exchange of technical, commercial and legal expertise • Synergy effects in respect of customer-orientation and efficiency • Services in aviation and non-aviation areas • Extended workbench: Airports could support HTA in all fields (if necessary) Examples: • Olym
Slide 29: Benchmarking airports
Benchmarking airports Airports are difficult to compare with one another: • The level of attractiveness for the owner depends on his objectives (e.g. acquisition costs and risk structure are not depicted in the key ratios). Current figures give no information on this. • Comparing airports is difficu
Slide 30: HTA airports in international comparison
HTA airports in international comparison • HTA’s airport holdings are among the 12 best worldwide (Tirana < 10 million Pax would be in 13th position). • The other 10 airports (excluding HTA participations) generate an EBIT margin of 24 percent on average. This acts as the benchmark for the level of
Slide 31: The HTA portfolio: portfolio value appraisal
The HTA portfolio Determining and appraising the airport portfolio value carried out on the basis: • DCF calculations • Discount rate: 13 percent (a rate shown to be market-conformant during the placement of the investment partnership) HOCHTIEF AirPort - Portfolio as of 06/2006 - Forecast (EUR m) St
Slide 32: Current value of portfolio
Current value of portfolio Net present value of the airport projects in EUR millions 760 Reason: 740 • HTA is half a period closer to + 10.8 % 720 the high cash return flows. + EUR 71m 700 • Good development of 680 airports 660 The positive development of 640 the value of the portfolio is 620 contin
Slide 33: Portfolio valuation – value sensitivities
Portfolio valuation – value sensitivities HOCHTIEF AirPort – Portfolio value in EUR m as of 06/2006 Portfolio valuation as of 06/2006 NPV of anticipated cash flows 737.4 Ø Discount rate 13.0% Scenarios discount rate 12.0% 12.5% NPV of anticipated cash flows 813.4 774.1 Page 33
Slide 34: Outlook for portfolio valuation
Outlook for portfolio valuation • HTA expects to see the value of its portfolio continue to climb steadily. • The value is driven first and foremost by the growth in traffic and the related rise in revenues from both aviation and non-aviation business. • Alongside the constant improvement of the pre
Slide 35: HOCHTIEF AirPort within the Group
HOCHTIEF AirPort within the Group EBT HTA in EURm 2003 2004 2005 3.2 -14.3 65.0 • The division is making an increasing contribution to consolidated results • Break-even achieved on a sustained basis even without the sale to HTAC in 2005. • All airports are making higher contributions to earnings. •
Slide 36: Cooperation and synergy within the Group
Cooperation and synergy within the Group In connection with acquisitions, HTA regularly draws on HOCHTIEF know- how and/or the corporate network in the relevant area or region • HTC: Construction costs estimation HTAC (regularly) • HTC: Construction consulting, procurement (e.g. in Tirana, Amman) •
Slide 37: Quo vadis HTA?
Quo vadis HTA? HTA intends to go on expanding its airport portfolio steadily but prudently: • The priority is a balanced mix of assets in different growth regions • HTA only participates in bidding procedures which have transparent, firmly defined tendering conditions • Interesting acquisition proje
Slide 38: HOCHTIEF AirPort Capital (HTAC)
HOCHTIEF AirPort Capital (HTAC) Securing growth by founding the first Manager: Investment partnership in the airport sector: HOCHTIEF AirPort Capital (HTAC) • Founded March 2005 Investors: • Unique combination of operational + expertise and financial know-how • Portfolio: Athens International Airpor
Slide 39: Structure and existing portfolio
Structure and existing portfolio Shareholders Caisse de Hastings KfW IPEX- dépôt et Funds Bank HOCHTIEF AirPort placement Manage- (Germany) GmbH du Québec ment Ltd. (Canada) (Australia) 100% 50% 10% 40% HOCHTIEF AirPort 0% HOCHTIEF AirPort Capital Verwaltung General Partner Capital GmbH & Co. GmbH &
Slide 40: HTA benefits from HTAC
HTA benefits from HTAC With the foundation of HTAC, HOCHTIEF AirPort • has demonstrated the value of its airports portfolio • has reduced equity by selling stakes (while retaining management control) • has teamed up with strong, experienced partners • has identified co-investors and partners for fur
Slide 41: The new acquisition structure of HTA with HTAC
The new acquisition structure of HTA with HTAC Hubs Smaller airports > 5 Mio PAX/year < 5 m PAX/year HTA-know-how for bidding procedures HTA know-how Transaction management Asset management/ Asset management/ optimization optimization For financial investors with HTA Equity high investment needs and
Slide 42: What investments are interesting for HTA/HTAC?
What investments are interesting for HTA/HTAC? Segment Interest InteresseHTA HTA Interest HTAC/ HTA National/regional gateways CEE, Middle East, Asia E.g. Western Europe, North > 5m PAX (including hubs and America, Australia, East Europe, tourist originating traffic) Southeastern Asia, Central Ameri
Slide 43: Current acquisition projects: Budapest, Hungary
Current acquisition projects: Budapest, Hungary • HTA is fundamentally interested in Budapest Airport (bidding procedure 2005) • An MoU was signed on October 20, 2006 • Due diligence is being conducted • Ferrovial/BAA intend to sell their entire holding of 75 percent minus one share • Budapest Airpo
Slide 44: Current acquisition projects: Amman, Jordan
Current acquisition projects: Amman, Jordan • HTA plans to participate in the bidding procedure for Queen Alia International Airport • Deadline for submitting offer: January 29, 2007 • BOT concession, duration of 20-25 years • Planned HTA share in the consortium: 25 percent Page 44
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