Koninklijke Heijmans N.v. · EURONEXT:HEIJM
Koninklijke Heijmans — Heijmans — Non-Deal Roadshow (February 2018)
62 slides from Koninklijke Heijmans's roadshow presentation, February 2018
Slide 1: Heijmans Business Update
Heijmans Business Update ROADSHOW BOOKLET, FEBRUARY 2018, BASED ON 2017 ANNUAL RESULTS
Slide 2: Key figures
2 Key figures Key figures * x 1 € million H2 2017 H2 2016 2017 2016 Revenues Netherlands 756 665 1.402 1.370 Underlying EBITDA Netherlands ** 21 -64 30 -73 Result after tax 0 -98 20 -110 Earnings per share ( in €) 0,00 -4,59 0,91 -5,16 Order book Netherlands 1.898 1.863 1.898 1.863 Net debt -14 100
Slide 3: Contents
3 Contents • Company profile 4 - 15 • Strategy 16 - 29 • Highlights 2017 annual results / Outlook 30 - 33 • Developments per sector 34 - 43 • Divestments & Financing 44 - 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: Heijmans at a glance
6 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. • In 1H 2017, Franki, Oevermann (to PORR) and Heijmans Heijmans at a glance Belgium (to Besix) were
Slide 7: Organisation Chart
heijmans Organisation Finance Facility Management Chart lity M: ent & Safety Information Technology Legal Affairs Fray Residential * Non Residential * Development * As of 1/1/2018, the management of Residential and Non Residential will be centralised and merged into “Building & Technology”
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
Slide 11: Living: Residential
11 COMPANY PROFILE Living: Residential Residential Building operates from three regional offices under central management. Its prime activity is new-build, but it also includes the restoration, redevelopment and renovation of existing housing, and, at an increasing level, maintenance and services. B
Slide 12: Maintenance Ministries
MAINTENANCE MINISTRIES
Slide 13: Working: Non Residential
13 COMPANY PROFILE Working: Non Residential Non-Residential designs, creates and maintains high-quality electro-technical and mechanical installations. It also realises large-scale and complex construction contracts in the customer and market segments of health care, government and semi- government
Slide 14: Beatrix Lock - Nieuwegein
BEATRIX LOCK - NIEUWEGEIN
Slide 15: Connecting: Infrastructure
15 COMPANY PROFILE Connecting: 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 treatment plants and work related
Slide 16: Strategy 2017 – 2019: Focus, discipline, excellence
16 Strategy 2017 – 2019: Focus, discipline, excellence • Transformation to purely Dutch company completed • Focus on segments Living, Working and Connecting with approx. € 1.5 billion in revenues; • Sustainable recovery of company and its profitability, a.o. through: › Derisking Infra business / lar
Slide 17: Strategy towards 2023
17 Strategy towards 2023 Setting our sights on the future – making Heijmans future-proof: development of a strategic agenda towards 2023 • ‘Core company in order’ remains priority: following up on ‘Focus, Discipline, Excellence’ strategy as the foundation of the company – process management, quality
Slide 18: Spaarndammerbuurt - Amsterdam
SPAARNDAMMERBUURT - AMSTERDAM
Slide 19: Strategy Property Development & Residential
19 Strategy Property Development & Residential Long term goal • Growth from solid fundamentals, in margin and volume Residential: stable EBIT- • Accelerating property developments where land is owned to further realise debt reduction Margin of 3-4% • Combination: suburban areas and inner-city develo
Slide 20: BeSense Pilot – Aegon Head Office
BESENSE PILOT – AEGON HEAD OFFICE
Slide 21: Strategy Non-Residential
21 Strategy Non-Residential Long term goal: • Commercial focus and selective acquisition based on core competencies stable EBIT- Margin of 3-4% • Armed with its installation expertise, Non-Residential is looking to forge more multi-year client relationships through the acquisition of long-term servi
Slide 22: A9 Gaasperdammerweg
A9 GAASPERDAMMERWEG
Slide 23: Strategy Infra
Public spending relatively stable, also in crisis years… ….but focus areas can shift from year to year 23 Strategy Infra Long term goal: Strategy redefined to improve profitability and stable EBIT- to derisk: Margin of 3-4% • Strong progress on ringfencing / completing loss-making projects acquired
Slide 24: Dutch market
24 • Growth strongly driven by booming housing market COMPANY PROFILE • Pressure on procurement & availability of subcontractors • Heijmans Top 5 player in a relatively fragmented market • Public spending relatively stable with prominent role for centralised Rijkswaterstaat and Rijksvastgoedbedrijf
Slide 25: Competitive strengths
25 Living (Residential and Property Development) • Development of urban and rural areas in both small STRATEGY and large-scale projects • Combining creativity and customer focus with strength on realization Competitive • Focus on complex renovations and transformations • Standardization of concepts
Slide 26: New Amsterdam Court House
heymans rin mutt epee . mi ‘ ae | LAEELLLDRLLLLL i
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 bicycle path, composite bridge, Hydrofit
VAN GOGH – ROOSEGAARDE BICYCLE PATH COMPOSITE BRIDGE HYDROFIT KOUSRELINING Kousrelining (renovation of waterpipes) BIKESCOUT SOLAR NOISE BARRIER RECOFLEX ASPHALT
Slide 29: Focus on innovation
29 STRATEGY Examples of innovations already sold / ready for market launch: • The ‘Heijmans ONE’ portable house > 135 houses now sold; • Hydrofit ‘kousrelining’ with DSM > several projects Focus on innovation • realised; BikeScout: warning system to improve safety of cyclists; • ‘Smart living concep
Slide 30: Heijmans annual results 2017: Sound basis for continued recovery
NATIONAAL MILITAIR MUSEUM - SOESTERBERG Heijmans annual results 2017: “Sound basis for continued recovery” Ton Hillen, chairman executive board Heijmans N.V. 30 February 23, 2018
Slide 31: Highlights annual results
31 Highlights annual results • In 2017, Heijmans was transformed into a purely Dutch company with a focus on its core competencies in property development, residential building, non-residential and infrastructure • Underlying ebitda Netherlands €30 mln (2016: €73 mln negative) • Total number of home
Slide 32: Progress high-risk projects
32 Progress high-risk projects • Completing / Ringfencing problem projects acquired in 2011-2014 is progressing; • Total impact 2016 nearly € 90 mln: Infra approx. € 75 mln / Non-Residential approx. € 15 mln; • N23: work on schedule, opening December 2018, official delivery March 2019 • Drachtsterwe
Slide 33: Outlook
33 Outlook • 2017 transitional year, repositioning of the Dutch core business: › Solid progress on all fronts: profit recovery, debt reduction, derisking › Reduction impact of specific high-risk projects progressing well, withdrawal from RIVM-project is major step • Order book year-end 2017 at simil
Slide 34: Developments per sector
HET FUNEN - AMSTERDAM Developments per sector (based on 2017 annual results) 34
Slide 35: Property development: excellent performance, driver for growth
35 Property development: excellent performance, driver for growth Property development x € 1 million H2 2017 H1 2017 2017 2016 Revenues 205 186 391 332 Underlying EBITDA 12 8 20 15 Underlying EBITDA margin 5,9% 4,3% 5,1% 4,5% Order book 420 305 420 311 • Strong growth revenue and performance continu
Slide 36: Level of tension / land bank
Level of tension Geographical spread 36 High land bank positions Medium FY 2016 (in € mln) Low Level of tension Population Households 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% Medium 6.102 156 2,6% 262 4,3% 2.713 120 4,4% 206 7,6% Low Voet
Slide 37: Property Development: Dutch market
Property Development: Dutch market Total 37 # permits rising again…. Fundamentals have improved considerably since 2014 after 7 years of declining market: Other private sectór • Historically low interest rates, increased consumer confidence and government policies (incl. Private sector aanpak scheef
Slide 38: Leidsche Rijn Centrum - Utrecht
LEIDSCHE RIJN CENTRUM - UTRECHT
Slide 39: Residential: controlled development
39 Residential: controlled development Residential x € 1 million H2 2017 H1 2017 2017 2016 Revenues 158 139 297 296 Underlying EBITDA 3 2 5 4 Underlying EBITDA margin 1,9% 1,4% 1,7% 1,4% Order book 435 342 435 327 • Revenue and underlying ebitda at comparable level • Strong turnaround in the market,
Slide 40: Maintenance Contract PGGM
TH MAINTENANCE CONTRACT PGGM
Slide 41: Non-residential: lagging results
41 Non-residential: lagging results Non-residential x € 1 million H2 2017 H1 2017 2017 2016 Revenues 122 118 240 315 Underlying EBITDA -5 -1 -6 -14 Underlying EBITDA margin -4,1% -0,8% -2,5% -4,4% Order book 589 756 589 758 • Revenue further declined in 2017, underlying ebitda negative • Selective a
Slide 42: A1 Apeldoorn - Beekbergen
A1 APELDOORN - BEEKBERGEN
Slide 43: Infra: strong recovery
43 Infra: strong recovery Infra x € 1 million H2 2017 H1 2017 2017 2016 Revenues 379 301 680 621 Underlying EBITDA 15 1 16 -73 Underlying EBITDA margin 4,0% 0,3% 2,4% -11,8% Order book 814 987 814 730 • Revenue increased, strong improvement underlying ebitda • Measures taken have proved to be effect
Slide 44: Cash flow and financing
A1/A27 PPP Cash flow and financing 44
Slide 45: Recovery according to plan
45 Recovery according to plan • Divestments foreign operations resulting in net debt impact of €97 mln, total net debt improved with €114 mln to €14 mln ‘net cash’ • Improved capital ratios: balance sheet downsized, capital base strengthened, improved debt position • Steady working capital developme
Slide 46: Financing in place
46 APPENDIX In addition, several project financings in place in PPP and Property Development, both recourse and non recourse, as well as several operational and financial leases Financing in place Relevant details syndicated loan facility: • Commitment to be reduced gradually to € 122 mln per 30 Jun
Slide 47: Financial covenants
Amounts x € 1 million 2017 FY 2016 FY Net debt -13,7 100,1 47 Adjustments: Net debt Joint Ventures 89,2 84,7 Net debt non recourse project finance -95,0 -92,6 Cumulative preference shares B -45,1 -45,1 Other 5,3 2,0 Net debt covenants (A) -59,3 49,0 Reported EBITDA 59,0 -75,4 Extraordinary items -14
Slide 48: Financial statements
ELASTOCOAST - WADDENZEEDIJK Financial statements 48
Slide 49: Balance sheet
(x € 1 million) 31 December 2017 31 December 2016 49 Non-current assets Property, plant and equipment 47 55 Intangible assets 80 82 FINANCIAL STATEMENTS Share in joint ventures and associates 66 66 Other fixed assets 89 88 282 291 Current assets Strategic land portfolio 150 147 Balance Other invento
Slide 50: RIVM / CBG - Utrecht
RIVM / CBG - UTRECHT Asset Management lock of Terneuzen
Slide 51: P&L
x € 1 million H2 2017 H2 2016 2017 2016 Revenues Netherlands 756 665 1.402 1.370 51 Property development 12 9 20 15 FINANCIAL STATEMENTS Residential 3 2 5 4 Non-residential -5 -15 -6 -14 Construction & Technology -2 -13 -1 -10 Infra 15 -60 16 -73 Corporate/other -4 0 -5 -5 P&L Underlying EBITDA Neth
Slide 52: Cash flow
indirect method 2017 2016 (x € 1 million) 52 Operating result - including discontinued operations 45 -94 FINANCIAL STATEMENTS Loss on sale of assets held for sale 0 6 Gain on sale of subsidiaries -31 0 Gain on sale of non-current assets and property investments -1 -1 Depreciation and impairment of p
Slide 53: Order Book
53 FINANCIAL STATEMENTS Order Book Order book (x € 1 million) 31-12-2017 30-6-2017 31-12-2016 Property development 420 305 311 Residential 435 342 327 Non-residential 589 756 758 Infra 814 987 730 Eliminations -360 -269 -263 Netherlands 1.898 2.121 1.863 Bananenstraat – Rotterdam
Slide 54: Appendices
TIMMERHUIS ROTTERDAM 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, Residential Building*, Non-Residential*, Innovation, HR / Management Board of dire
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. Further improve uniformity; Risk management • Uniform risk classification for all projects into three categories. Direct involvement from Executive
Slide 58: Towards one integrated ERP platform (SAP)
58 ANNEX • Successful deployed to +/- 4,400 employees; • Implemented at Infra, Holding, Residential, and Non Towards one Residential); integrated ERP • To go: Property Development (2017); • Proven project approach and timelines (Initiated in platform (SAP) 2011, Blueprint Q4 2012, start roll-out 201
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 6 New Amsterdam Court House PPP Amsterdam Non Residential 8 Fenix Lofts Rotterdam Katendrecht Property Development / Residential 9 Kanaleneiland Utrecht Property Development / Residential 10 Heij
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: Social media handles
heijmansnl @heijmansnl heijmans heijmansnl