HOCHTIEF Aktiengesellschaft · XETR:HOT
HOCHTIEF Aktiengesellschaft — Investor Presentation (March 2009)
57 slides from HOCHTIEF Aktiengesellschaft's investor presentation, Mar 2, 2009
Slide 1: Company presentation
Company presentation Latest update: 02 March 2009 Turning Vision into Value.
Slide 2: Table of contents
Table of contents 1. Overview p. 2 2. Americas p. 9 3. Asia Pacific p. 13 4. Concessions p. 17 5. Europe p. 23 6. Real Estate p. 27 7. Services p. 31 8. Outlook p. 35 9. Appendix p. 38 WestEnd HearstDuo, Frankfurt Building, New York Budapest Airport Turning Vision into Value. 2
Slide 3: HOCHTIEF – not a typical cyclical
HOCHTIEF – not a typical cyclical • We cover the whole life cycle of infrastructure, real estate and industrial facilities We develop, finance, invest in, design, construct, maintain and operate projects, provide asset management for third parties • We have a very broad international base 88% of Gro
Slide 4: Broad international base – strong business expansion
Broad international base – strong business expansion Group sales Jan-Sep 08: EUR 14,011m; +15% yoy 2.72 2.43 Europe2 5.89 5 .28 America 19%1) 42%1) 9M 07 9M 08 Asia Pacific 9M 07 9M 08 5.40 4.5 2 39%1) 9M 07 9M 08 1) %-age of total Group sales 2) of which EUR 1.62bn sales in Germany in 9M 08 (i.e. 1
Slide 5: HOCHTIEF structure: Integrated solutions around the world
HOCHTIEF structure Integrated solutions around the world HOCHTIEF HOCHTIEF HOCHTIEF HOCHTIEF HOCHTIEF HOCHTIEF Americas Asia Pacific Concessions Europe Real Estate Services Turner: Building Leighton Holdings: Industrial investor, - Building Services around Comprehensive construction - Civil develope
Slide 6: Networking at HOCHTIEF
Networking at HOCHTIEF Profit centers adding value through group-wide cooperation1) • PPP: – Construction orders for HOCHTIEF Europe approx. EUR 590m Order value for HOCHTIEF FM: EUR 220m – PPP project pipeline (end 07): approx. EUR 6.6bn investment / contract volume -> approx. EUR 1.7bn potential c
Slide 7: Healthy business performance…
Healthy business performance… Sales Sales (EUR (EUR bn) bn) EBT EBT (EUR m) // EBT (EUR m) EBT margin margin (%) (%) 10.53 11.94 13.65 15.47 16.45 14.01 160 187 337 338 501 415 20 600 16 480 3.0% 12 360 1) 3.0% 12.23 2.5% 2) 2.2% 2.8% 8 240 2.1% 343 1.6% 4 120 1.5% 0 0 3) 3) 2003 2004 2005 2006 2007
Slide 8: …growth in volume…another record high order backlog…
…growth in volume…another record high order backlog… New New orders orders (EUR (EUR bn) bn) Order Order backlog backlog (EUR (EUR bn) bn) 14.35 15.59 15.60 20.56 23.51 19.51 16.47 18.72 21.10 25.13 29.89 32.73 25 35 30 20 25 15 20 20.32 29.03 18.82 25.99 10 17.59 15 12.83 13.05 22.33 12.17 17.77 10
Slide 9: Table of contents
Table of contents 1. Overview p. 2 2. Americas p. 9 3. Asia Pacific p. 13 4. Concessions p. 17 5. Europe p. 23 6. Real Estate p. 27 7. Services p. 31 8. Outlook p. 35 9. Appendix p. 38 Hearst Building, New York Budapest Airport Turning Vision into Value. 9
Slide 10: HOCHTIEF Americas (1) Key facts
HOCHTIEF Americas (1) Key facts – good 9M 08 results and divisional guidance confirmed Essentials Essentials Financials Financials • Turbulences in financial markets and general weakness of Jan-Sep (EUR m) 2008 2007 % FY 07 US economy without major effects to date New orders 6,268.4 5,766.9 8.7 7,71
Slide 11: HOCHTIEF Americas (2) Achievements
HOCHTIEF Americas (2) Achievements – strong positioning in key segments General General Building Building (Turner) (Turner) 9M 08 / end Sep 08 split by markets: • Focus on specific market segments (health, education, etc.) New orders (total USD 8.0bn) Order backlog (total USD 11.0bn) and Green build
Slide 12: HOCHTIEF Americas (3) Opportunities
HOCHTIEF Americas (3) Opportunities – stable business model in high volume markets General General Building Building (Turner) (Turner) Market order value1) (in USD bn, overall growth rate in % p.a.) • Concentration on specific market segments 242.1 231.7 215.4 228.1 257.7 281.8 292.2 300 3.7% • Comb
Slide 13: Table of contents
Table of contents 1. Overview p. 2 2. Americas p. 9 3. Asia Pacific p. 13 4. Concessions p. 17 5. Europe p. 23 6. Real Estate p. 27 7. Services p. 31 8. Outlook p. 35 9. Appendix p. 38 Mount Keith Mine, ??? Moorvale Coal Mine, Australia Turning Vision into Value. 13
Slide 14: HOCHTIEF Asia Pacific (1) Key facts
HOCHTIEF Asia Pacific (1) Key facts – strong operating performance Essentials Essentials Financials Financials • Leighton market leader in Australia, strong position in Asia & Jan-Sep (EUR m) 2008 2007 % FY 07 Gulf New orders 9, 622. 7 6, 5 40. 9 47. 1 10, 415 . 7 • Backlog visibility: 2.0 x work do
Slide 15: HOCHTIEF Asia Pacific (2) Achievements
HOCHTIEF Asia Pacific (2) Achievements – very strong positioning in key markets Activities Activities by by market market Op. revenue1) Work in hand1) HY 07-12/08, AUD 9.1bn end Dec 08, AUD 37.5bn • Australia: Strong position in healthy home market • Asia: Exposure increased with new markets India &
Slide 16: HOCHTIEF Asia Pacific (3) Opportunities
HOCHTIEF Asia Pacific (3) Opportunities – further growth to be captured Infrastructure Infrastructure construction construction Australia Australia Engineering Construction Industry1), (in AUD bn of 05/06) 70 • Infrastructure: 60 – investments to stay at high levels; Mining & Heavy Industry – transp
Slide 17: Table of contents
Table of contents 1. Overview p. 2 2. Americas p. 9 3. Asia Pacific p. 13 4. Concessions p. 17 5. Europe p. 23 6. Real Estate p. 27 7. Services p. 31 8. Outlook p. 35 9. Appendix p. 38 Budapest Airport Times Square Tower New York Turning Vision into Value. 17
Slide 18: HOCHTIEF Concessions (1) Key facts
HOCHTIEF Concessions (1) Key facts – increase in recurring earnings Essentials Essentials Financials1)1) Financials • Leading industrial investor, developer and operator of Jan-Sep (EUR m) 2008 2007 % FY 07 public infrastructure; manager of concessions portfolio New orders 18 6. 6 274. 1 -3 1.9 415
Slide 19: HOCHTIEF Concessions (2) Achievements Airports
HOCHTIEF Concessions (2) Achievements Airports – good performance of airport assets Portfolio Value1)1) (end Portfolio Value (end June June 08, 08, forecast, forecast, EUR EUR m) m) • Further passenger volume growth of HOCHTIEF airports: Status: Committed Paid-in NPV NPV Difference due to 9M 08: 68.
Slide 20: HOCHTIEF Concessions (3) Opportunities Airports
HOCHTIEF Concessions (3) Opportunities Airports – further portfolio growth and airport developments Passenger Passenger vol. vol. 06-2025E 06-2025E In million, growth rates in % p.a.1) • Expected airport privatizations / trade sales: Worl d +3.9% p.a. – Pulkovo Airport, St Petersburg, Russia North A
Slide 21: HOCHTIEF Concessions (4) Achievements PPP Solutions
HOCHTIEF Concessions (4) Achievements PPP Solutions – portfolio further enhanced Portfolio Value1)1) (end Portfolio Value (end June June 08, 08, forecast, forecast, EUR EUR m) m) Status: Committed Paid-in NPV NPV Difference due to Financial Close Capital Capital as of as of Growth of Growth of • New
Slide 22: HOCHTIEF Concessions (5) Opportunities PPP Solutions
HOCHTIEF Concessions (5) Opportunities PPP Solutions – large bidding pipeline for portfolio expansion Toll • Germany: Toll roads roads – In addition to projects on map, further A-Model projects expected, Germany market: starting 09 – Total invest. vol. 2008-10/11: ca. EUR 3 bn • Netherlands: several
Slide 23: Table of contents
Table of contents 1. Overview p. 2 2. Americas p. 9 3. Asia Pacific p. 13 4. Concessions p. 17 5. Europe p. 23 6. Real Estate p. 27 7. Services p. 31 8. Outlook p. 35 9. Appendix p. 38 GAP 15, Düsseldorf Turning Vision into Value. 23
Slide 24: HOCHTIEF Europe (1) Key facts
HOCHTIEF Europe (1) Key facts – divisional outlook confirmed Essentials Essentials Financials Financials • European building construction, civil engineering, Jan-Sep (EUR m) 2008 2007 % FY 07 infrastructure projects New orders 2, 48 2. 2 2, 3 5 3 . 6 5.5 3 , 176. 1 • Regional focus: Germany, Austria
Slide 25: HOCHTIEF Europe (2) Achievements
HOCHTIEF Europe (2) Achievements – restructuring of business defined and well underway Activities Activities by by region region 9M 08 / end Sep 08 split by region: • Turn-around German building business New orders (total EUR 2.5 bn) Order backlog (total EUR 3.8 bn) – Restructuring of German buildin
Slide 26: HOCHTIEF Europe (3) Opportunities
HOCHTIEF Europe (3) Opportunities – clear way towards sustainable earnings Selected Selected Europ. Europ. constr. constr. markets markets (vol., (vol., exp. exp. growth) growth) (in EUR bn 09E; av. growth 2010-11 in % (in real terms))1) • Strict application of new contract standards 120 73.7 49.6 2
Slide 27: Table of contents
Table of contents 1. Overview p. 2 2. Americas p. 9 3. Asia Pacific p. 13 4. Concessions p. 17 5. Europe p. 23 6. Real Estate p. 27 7. Services p. 31 8. Outlook p. 35 9. Appendix p. 38 Trianon, Prague GAP DLZ Stern 15, Düsseldorf Essen Turning Vision into Value. 27
Slide 28: HOCHTIEF Real Estate (1) Key facts
HOCHTIEF Real Estate (1) Key facts – divisional outlook confirmed Essentials Essentials Financials Financials • Comprehensive services around real estate and real estate Jan-Sep (EUR m) 2008 2007 % FY 07 portfolios: New orders 397.3 619.2 -35.8 965.0 – Real estate trader developer Order backlog 831.
Slide 29: HOCHTIEF Real Estate (2) Achievements
HOCHTIEF Real Estate (2) Achievements – reliable performance and increasing international coverage Projects Projects under under Construction Construction Split by region / by segment (% of total investment volume): • Real estate development (# 29, volume end Sep 08: EUR 1.3 bn) – New projects in Dü
Slide 30: HOCHTIEF Real Estate (3) Opportunities
HOCHTIEF Real Estate (3) Opportunities – profiting from strong positioning and growth initiatives Investment Investment market volume1)1) market volume Hamburg 1,405 1,834 St. Petersburg • Continued growth based on 413 822 Berlin 805* 1Q 08 – Proven track record in upper market segments Düsseldorf C
Slide 31: Table of contents
Table of contents 1. Overview p. 2 2. Americas p. 9 3. Asia Pacific p. 13 4. Concessions p. 17 5. Europe p. 23 6. Real Estate p. 27 7. Services p. 31 8. Outlook p. 35 9. Appendix p. 38 WestEnd Duo, Frankfurt Turning Vision into Value. 31
Slide 32: HOCHTIEF Services (1) Key facts
HOCHTIEF Services (1) Key facts – stable 9M 08 earnings Essentials Essentials Financials Financials • Comprehensive facility management services for real estate, Jan-Sep (EUR m) 2008 2007 % FY 07 industrial facilities and infrastructure New orders 5 3 8 .9 425 . 1 26. 8 8 92. 6 • Major market segmen
Slide 33: HOCHTIEF Services (2) Achievements
HOCHTIEF Services (2) Achievements – continued business expansion Divisional Divisional sales sales (9M (9M 08: 08: EUR EUR 509 509 m) m) By region: by service type: • Selected recent project win example 8% 14% 1% - Prolongation of Siemens contract (6 years, nearly EUR 200 m: 7% successful continuat
Slide 34: HOCHTIEF Services (3) Opportunities
HOCHTIEF Services (3) Opportunities – poised for further growth Facility Facility Management Management Market volume and expected growth (EUR bn; % change yoy)1) • Market: Continuing trend of outsourcing non-core business to 57.0 60.0 63.3 67.1 71.3 external FM providers 80,0 +6.3% +5.5% +5.9% • Fo
Slide 35: Table of contents
Table of contents 1. Overview p. 2 2. Americas p. 9 3. Asia Pacific p. 13 4. Concessions p. 17 5. Europe p. 23 6. Real Estate p. 27 7. Services p. 31 8. Outlook p. 35 9. Appendix p. 38 Vespucio Norte Express, Chile Turning Vision into Value. 35
Slide 36: …we have raised our guidance for 2008
…due to this development we have raised our guidance for 2008 2007 2008E EUR bn No longer on but above high previous year's New orders 23.5 level Order EUR bn No longer on but above high previous year's backlog 29.9 level EUR bn Sales Above prior-year level 16.5 EUR m EBT Above high level of 2007 50
Slide 37: Management priorities
…HOCHTIEF is about…realizing potential Management priorities • Restructuring German building business – Streamline business with focus on margin growth – Restructuring to be finalized in 2008 – Strict application of new contract requirements • Expansion of market segments – Concessions & operations
Slide 38: Table of contents
Table of contents 1. Overview p. 2 2. Americas p. 9 3. Asia Pacific p. 13 4. Concessions p. 17 5. Europe p. 23 6. Real Estate p. 27 7. Services p. 31 8. Outlook p. 35 9. Appendix p. 38 Düsseldorf Airport Turning Vision into Value. 38
Slide 39: Special topic: sustainable solutions – sustainable success
Special topic: sustainable solutions – sustainable success We are on the right track • HOCHTIEF promotes certification for sustainability in construction – We set standards both in Germany and internationally with innovative, sustainable buildings – We have called for the establishment of a binding
Slide 40: HOCHTIEF structure: Integrated solutions around the world
HOCHTIEF structure Integrated solutions around the world HOCHTIEF HOCHTIEF HOCHTIEF HOCHTIEF HOCHTIEF HOCHTIEF Americas Asia Pacific Concessions Europe Real Estate Services Building (Turner) and Civil engineering construction, Leading industrial investor, Building construction, civil and Comprehensi
Slide 41: Consolidated Statement of Earnings…
Consolidated Statement of Earnings… Jan-Sep (EUR m) 2008 2007 Change (%) Sales: Sales 14,010.9 12,228.9 14.6 Other operating income 226.4 80.8 180.2 • Growth mainly due to non-domestic business, esp. Asia Other operating expenses (adj.) -865.9 -738.1 17.3 Pacific and Americas, also HOCHTIEF Europe i
Slide 42: Consolidated Balance Sheet (Assets)
…Consolidated Balance Sheet (Assets)… ( E U R t ho us a nd ) 30 Sep 08 31 Dec 07 Non-current assets: • PP&E: expansion of contract mining Intangible assets 506,328 505,145 PP&E 1,225,590 1,027,641 • At equity and other financial assets: strengthening of Investment properties 57,376 41,199 business p
Slide 43: Consolidated Balance Sheet (Equity and Liabilities)
…Consolidated Balance Sheet (Equity and Liabilities)… Shareholders’ equity: ( EU R t ho usand ) 30 Sep 08 31 Dec 07 • Earnings after taxes: +EUR 268 m Attributable to the Group 2,180,109 2,297,720 • Capital increase at Leighton: +EUR 188 m Minority interest 851,891 703,100 • Dividend payments: -EUR
Slide 44: …sound financial basis…
…sound financial basis… Finance structure: (EUR m) Key figures (end Sep 08): 3.000 • Low gearing ratio (net debt / equity): 4.6% 2.5 00 • Healthy gross cash position (marketable securities, cash and cash equivalents): EUR 2.36 bn 2,506 2.000 2,645 • Strong client basis, high prepayments: EUR 796 m 2
Slide 45: Consolidated Statement of Cash Flows
…Consolidated Statement of Cash Flows… Jan-Sep 07 Jan-Sep 08 2,000 +513 +22 -1,317 +297 1,500 -836 -33 • 07: Positive cash +704 flow from operating 1,590 business at all divisions except (EUR m) Europe. 1,403 1,188 1,000 65.4 • 08: Cash flow from +628 • 07: Negative impact operating business remains
Slide 46: …we share the success with our shareholders
…we share the success with our shareholders EUR EUR m 1.40 100 1.30 90 1.20 1.10 80 1.00 70 0.90 0.80 0.75 60 0.65 50 0.60 40 0.40 30 20 0.20 Dividend per share (EUR) 10 Total dividend (EUR m) 0.00 0 1) 91 2003 2004 2005 2006 2007 • Average increase of approx. 19% p.a. over the last five years • Div
Slide 47: Value created RONA
Value created RONA (EUR m) FY 07 FY 06 EBITA 517,4 327,3 Interest income1) 94,3 76,4 Return 611,7 403,7 Shareholders' equity (incl. minorities) 3.000,8 2.345,7 • Return: EUR 611.7m (+ 52%) + Pension provisions 29,0 33,0 • Net assets: EUR 4,107.2m (+23%) + Financial liabilities 1.966,8 1.044,1 • Valu
Slide 48: Value added… Return on net assets (RONA)
Value added… Return on net assets (RONA) HTA HTA WACC WACC // RONA RONA HTD HTD WACC WACC // RONA RONA HTAM HTAM WACC WACC // RONA RONA 15.0% 25.0% 23.6% 25.0% 22.1% 21.8% 13.9% 20.0% 20.0% 17.2% 9.6% 9.6% 9.6% 9.6% 15.9% 10.0% 14.4% 15.0% 15.0% 9.5% 8.2% 14.1% 14.1% 14.1% 14.1% 9.8% 7.7% 10.0% 10.0
Slide 49: HOCHTIEF Concessions: Detailed financial figures
HOCHTIEF Concessions: Detailed financial figures Turning Vision into Value. 49
Slide 50: HOCHTIEF Concessions: Airport portfolio
HOCHTIEF Concessions: Airport portfolio Athens Int‘l Budapest Düsseldorf Hamburg Sydney Tirana Int‘l Airport Airport Int‘l Airport Airport Airport 2007 HTA share 26.7% 37.25% 20% 34.8% 8.13% 47% HTAC share 13.3% - 10% 14.2% 5.15% - Total private share 45.0% 75%1) 50% 49% 100% 100% PAX in m 16.5 8.6
Slide 51: HOCHTIEF Concessions: PPP Solutions Asset portfolio
HOCHTIEF Concessions: PPP Solutions Asset portfolio, 30 June 2008 Toll Roads/Transportation (EUR m) Project Name Project value HT-stake HT capital required HT capital provided Project data Herrentunnel, Germany 179 50.0 % 11.0 11.0 2 km length Vespucio Norte Express, Chile 520 33.0 % 65.3 65.3 30 km
Slide 52: PPP Solutions: Principle of Life cycle Valuation
HOCHTIEF Concessions: PPP Solutions Principle of Life cycle Valuation accumulated Cash flows monetary (nominal) units Value of Equity (DCF calculation) Cash flows (nominal) Start of operation t Construction Ramp-up Growth Maturity Risk-premium phase (%) 3 2 + Risk-premium type (%)1) 2-4 2-4 2-4 2-4
Slide 53: PPP Solutions: Projects' life cycle status
HOCHTIEF Concessions: PPP Solutions Projects’ life cycle status accumulated Cash flows monetary (nominal) units Value of Equity (DCF calculation) Cash flows (nominal) Start of operation t as of Sept 08 Construction Ramp-up Growth Maturity • Vienna Northeastern Bypass • Herrentunnel Lübeck • A-Modell
Slide 54: PPP Solutions: Project pipeline
HOCHTIEF Concessions: PPP Solutions Project pipeline Preferred bidder Tender Phase no. of Contract/investment no. of Contract/investment projects volume1) projects volume1) Public buildings / 1 ca. 260 15 ca. 2,600 social infrastructure Toll roads 3 ca. 2,750 Total PPP Solutions pipeline volume: ca.
Slide 55: Shareholder structure
Shareholder structure Structure (as of Feb 09)1) Regional allocation (as of Dec 08)1) 3.4% 0.9% 0.5% 6.9% 2) 25.2% 29.98% Germany 18.0% Spain / Portugal North America UK / Ireland Scandinavia France / Benelux Other Europe 65.0204% 4.9996% Other ACS 2) 19.6% 25.5% Treasury stock 3) Free float 1) Exec
Slide 56: Disclaimer
Disclaimer “Certain of the statements contained herein may be statements of future expectations and other forward-looking statements that are based on management’s current views and assumptions and involve known and unknown risks and uncertainties that could cause actual results, performance or even
Slide 57: Financial calendar and IR contact
Financial calendar and IR contact 25 Mar 09 Full year results 2008 and Analysts’ and Investors’ Conference 07 May 09 General Shareholders’ Meeting 14 May 09 Q1 results 2009 and Conference Call with Analysts and Investors 14 Aug 09 Half year results 2009 and Analysts’ and Investors’ Conference For fu
HOCHTIEF Aktiengesellschaft — Investor Presentation (March 2009) on 6ix