Koninklijke Heijmans N.v. · EURONEXT:HEIJM
Koninklijke Heijmans — Heijmans — Non-Deal Roadshow (September 2016)
60 slides from Koninklijke Heijmans's roadshow presentation, September 2016
Slide 1: Heijmans – Business Update
Heijmans – Business Update September 2016, based on 2016 interim results
Slide 2: A4 Delft-Schiedam
hetjmans Aa Delft- Schiédg ~~
Slide 3: Contents
Contents • Company profile 4- 8 • Strategy 9 - 15 • Highlights 2016 Interim results 16 - 21 • Developments per sector 22 - 39 • Outlook 40 - 41 • Financial statements 42 - 45 • Annexes 46 - 60 Ø Resumes Executive Board 47 Ø Financial Covenants 49 Ø Procedures Property development 51 - 54 Ø Risk Mana
Slide 4: Company profile
Company profile Founded in 1923 by Jan Heijmans Highway Tilburg - Den Bosch (anno 1928) 4
Slide 5: Heijmans History
Company profile Heijmans History • Since 1923 active in road building • Strong growth following second world war • During sixties, diversification towards residential building • During eighties, diversification towards property development • Listing at the Amsterdam Stock Exchange in 1993 • Strong r
Slide 6: Residential, Non-residential, Infrastructure
Company profile Residential Non-residential Infrastructure Property development Building Road building Residential building Technical Services Civils Engineering Eemskwartier Groningen Luggage hall Eindhoven Airport N23 Westfrisiaweg, Province of North Holland 6 6 Meysters’ Buiten, Utrecht Technical
Slide 7: Heijmans at a glance
Company profile Heijmans at a glance • With almost 6,500 employees and approx. € 2 billion in annual revenues, Heijmans is active in property development, residential building, non-residential and infrastructure; • Focus on selective markets, active in the Netherlands, Belgium and Germany; • Create
Slide 8: Key figures
Company profile Key figures x 1 € million H1 2016 H1 2015 2015 Revenues 946 922 1.979 Underlying operating result1 -7 -11 -5 Operating Result afterresult tax -15 -12 -16 -15 -29 -27 Earnings per share ( in €) -0,57 -0,76 -1,32 Order book 2.375 2.190 2.094 Net debt 77 108 10 Number of FTE 6.409 6.816
Slide 9: Strategy – Restructuring provides potential
Strategy – Restructuring provides potential Since 2009, Heijmans has implemented a transformational strategic restructuring: • Focus on core activities in the Netherlands and Belgium • Disposal of non-core foreign operations • Reduction in strategic land bank positions • Margin over volume ~ added v
Slide 10: A27 / A1 PPP Utrecht - Eemnes
A27 / A1 PPP Utrecht - Eemnes 10
Slide 11: Strategy – Ambition
Strategy – Ambition Strategy “To be the best construction company in the Netherlands” • 2012 BCG review: Heijmans can become the best Dutch construction company • Overall midterm EBIT goal of 3-4% is realistic • Strategic direction based on “To improve and to renew” To improve: “Improve the core” pr
Slide 12: National Military Museum (PPP) Soesterberg
National Military Museum (PPP) Soesterberg 12
Slide 13: Strategy – Competitive strengths
Strategy – Competitive strengths Residential • Development of urban and rural areas in both small and large-scale projects • Combining creativity and customer focus with strength on realization • Increasing focus on renovations and transformations • Improving processes including procurement, 3D BIM
Slide 14: Kousrelining, composite bridge, infrastructure for electric cars
Kousrelining (renovation of waterpipes) Infrastructure for Electric cars Composite bridge Infra technology & mobility 14
Slide 15: Strategy – Innovation
Strategy – Innovation Invest in smart technological concepts / sustainable solutions: • Create competitive advantage towards clients; • Improve future margin potential because of increased added value; • Appointment of Chief Technology Officer / focus on marketability; • Cooperation with Spark (netw
Slide 16: Timmerhuis, Rotterdam
Timmerhuis, Rotterdam 16
Slide 17: H1 2016 – highlights
H1 2016 – highlights “Heijmans first half results: improved results in most sectors, completion loss-making projects Infra still strongly affects results” • H1 revenues increased to € 946 mln (2015: € 922 mln); • Homes sold H1: 1,069 (2015: 746). Higher sales to investors for rental segment; • Under
Slide 18: Plein van Leiden
heijmans rel iid Ht IW
Slide 19: H1 2016 – highlights
H1 2016 –highlights “Heijmans first half results: improved results in most sectors, completion loss-making projects Infra still strongly affects results” • Order book increased due to contract wins for (a.o.) New Amsterdam Court House, Hart van Zuid and RWZI Utrecht; • Solvency ratio 25%; • Net debt
Slide 20: Smart Energy, Smart Materials, Smart Highway, Smart Space
Smart Energy: ‘Bright house’ Smart Materials: ‘3D print’ 20 Smart Highway Smart Space: ‘Heijmans One’ portable house
Slide 21: Implementation new ERP Platform
Implementation new ERP Platform Objectives Key changes: Integrated system 1. Strengthen Control centralized data management Data entry at source (orders,hours) 2. Integrate Procurement Three way match, digital invoicing AP 3. Improve efficiency in back office processes 1 project structure, also for
Slide 22: Hart van Zuid PPP Rotterdam
Hart van Zuid PPP Rotterdam 22
Slide 23: Developments per sector – Property Development
DEVELOPMENTS PER SECTOR x € 1 million H1 2016 H1 2015 2015 PROPERTY DEVELOPMENT Revenues 170 126 278 Underlying operating result 6 4 9 Underlying operating margin 3,5% 3,2% 3,2% Order book 275 280 284 • Strong increase in revenues (34%) with small growth in operating margin; • Homes sold to 1,069 (2
Slide 24: Herbestemming Grootlab / Kanaleneiland
Herbestemming Grootlab Kanaleneiland Amsterdamse Hogeschool Utrecht voor de Kunsten 24
Slide 25: Dutch Real estate market
Dutch Real estate market Fundamentals have improved considerably since 2014 after 7 years of declining market: • In 2007, appr 80K houses were built, a figure that more than halved in 2013/2014 • The Netherlands: appr. 17 mln inhabitants with 7,5 mln households; • CBS: # households to increase to 8,
Slide 26: Transformation Grootlab Amsterdam School of Arts
Transformation Grootlab Amsterdam School of Arts 26
Slide 27: Developments per sector – Residential
DEVELOPMENTS PER SECTOR x € 1 million H1 2016 H1 2015 2015 Revenues 208 204 387 Underlying operating result 2 3 6 RESIDENTIAL Underlying operating margin 1,0% 1,5% 1,6% Order book 386 392 421 • Delay in start up of new projects has resulted in declining growth rate; • Revenues divided over the Nethe
Slide 28: Ministries maintenance, Lounge 2 Schiphol
Onderhoud en beheer ministeries Lounge 2 Veiligheid en Schiphol Amsterdam Justitie, Binnenlandse Zaken en Koninkrijksrelaties 28
Slide 29: Developments per sector – Non-Residential
DEVELOPMENTS PER SECTOR x € 1 million H1 2016 H1 2015 2015 NON RESIDENTIAL Revenues Underlying operating result 162 0 220 -2 421 0 Underlying operating margin 0,0% -0,9% 0,0% Order book 825 549 517 • Revenues lower as expected, selective acquisition approach maintained; • Positive trend of Services
Slide 30: A9 Gaasperdammerweg / A12 Veenendaal–Ede–Grijsoord
A12 A9 Gaasperdammerweg Veenendaal – Ede - Grijsoord Amsterdam 30
Slide 31: Developments per sector – Infra Netherlands
DEVELOPMENTS PER SECTOR x € 1 million H1 2016 H1 2015 2015 INFRA NETHERLANDS Revenues Underlying operating result 329 -15 306 -15 690 -26 Underlying operating margin -4,6% -4,9% -3,8% Order book 787 879 834 • Approximately € 700 mln turnover, divided over: Ø Regional projects & Asset management ~40%
Slide 32: A12 Veenendaal – Ede - Grijsoord
A12 Veenendaal – Ede - Grijsoord 32
Slide 33: Improving control of large projects
Improving control of large projects Market Tendering More risks to contractors / / Acquisition many competitors Risk and cost price assessment Background of issues Execution & Contract Organisation Management Focus Tender management Suitable Partnerships Design costs Improvement measures Market visi
Slide 34: Wilhelminakanaal, Tilburg
Wilhelminakanaal, Tilburg 34
Slide 35: Strategy plan Infra Netherlands 2016 - 2019
Strategy plan Infra Netherlands 2016 - 2019 • New board member appointed early 2016 with specific focus on Infra • Strategy Dutch infrastructure redefined mid 2016 • Plan consists of 5 key elements for 2016 -2019: 1) Intensively managing and completing of current loss making projects 2) Improving ri
Slide 36: Elisabeth Center Antwerpen (B)
Elisabeth Center Antwerpen (B) 36
Slide 37: Developments per sector – Infra Belgium
DEVELOPMENTS PER SECTOR x € 1 million H1 2016 H1 2015 2015 Revenues 58 57 116 INFRA BELGIUM Underlying operating result 4 3 7 Underlying operating margin 6,9% 5,3% 6,0% Order book 142 103 135 • Revenues at similar level as last year; • Operating margin increased slightly, at very healthy level; • Sl
Slide 38: Oevermann Erpho-Bogen Münster (D)
Oevermann Erpho-Bogen Münster (D) 38
Slide 39: Developments per sector – Infra Germany
DEVELOPMENTS PER SECTOR x € 1 million H1 2016 H1 2015 2015 Revenues 126 126 319 INFRA GERMANY Underlying operating result 3 1 7 Underlying operating margin 2,4% 0,8% 2,2% Order book 178 238 155 • German infrastructure market is improving; • Revenues in line with last year; • Operating result has gro
Slide 40: Wijnhavenkwartier, Den Haag
Wijnhavenkwartier, Den Haag 40
Slide 41: Outlook
Outlook • Positive trend residential market continues, filling housing showroom crucial to meet high demand; • Gradual improvements expected within Non Residential and Infra, supported by good order intake; • Germany and Belgium record a solid and good performance; • Managing and completing loss mak
Slide 42: H1 Profit and loss account
H1 Full Year Profit and loss account Actual Actual Actual (in million €) 2016 2015 2015 Revenues EBIT Revenues EBIT Revenues EBIT Property Development 170 6 126 4 278 9 Residential - Netherlands 152 2 158 3 295 5 Residential - Belgium 56 1 46 0 92 1 Residential building 208 2 204 3 387 6 Non-Residen
Slide 43: Cash flow statement
CASH FLOW STATEMENT (x € 1 million) YTD June 2016 YTD June 2015 FY 2015 Operating result -15 -16 -29 Adjustments for: Depreciation of property, plant and equipment 9 9 18 Amortisation of intangible assets 1 1 2 Adjustment of valuation of property investments and land portfolios, 1 1 11 excluding joi
Slide 44: Balance sheet and Financing
Balance sheet and Financing • Solvency solid at 25% (FY 2015: 26%) • Fixed (non current) assets base stable • Control net debt through strong focus on working capital (“Fit for cash”) • Reported net debt as per 30/6 of € 77 mln: Ø € 80 mln drawn under Revolving Credit facility Ø € 45mln in cumulativ
Slide 45: Condensed consolidated statement of financial position
Condensed consolidated statement of financial position x € 1 million Assets 30 June 2016 31 December 2015 30 June 2015 Non-current assets Property, plant and equipment 87 90 90 Intangible assets 112 112 113 Joint ventures and associates 77 77 74 Other fixed assets 98 101 93 374 380 370 Current asset
Slide 46: Appendices
Appendices
Slide 47: Annex: Executive Board
Annex: Executive Board Bert van der Els (1954), CEO and chairman of the Executive Board responsible for: General Affairs, Management Development and Diversity, HR, Commerce, Communication, Innovation Mark van den Biggelaar (1968), CFO & member of the Executive Board responsible for: Finance, Investo
Slide 48: Services and maintenance Ministry of Defense
Services and maintenance Ministry of Defense 48
Slide 49: Annex: Financial covenants
Annex: Financial covenants Financial Covenants 2016 MY 2015 FY 2015 MY • Financial covenants were met MY ‘16: Amounts x € 1 million Interest bearing debt 155,5 135,1 173,4 Ø Interest Cover: 3.6 (>3) Minus: cash and cash equivalents Net debt 78,1 77,5 125,4 9,7 65,5 107,9 Ø Leverage Ratio: 2.2 (<3) A
Slide 50: Heijmans One, first houses sold and placed in Limburg
Heijmans One, First houses sold and placed in Limburg 50
Slide 51: Annex: Property development
Annex: Property development 1. Process and timing 2. Land positions Bananenstraat Rotterdam Overhoeks – Amsterdam Noorderhaven Zutphen 51
Slide 52: Annex: Property development – Process and timing
Annex: Property development Process and timing unsold unsold unsold sold PROJECT sold sold sold sold sold sold sold sold sold PROCESS 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 re
Slide 53: Geographical spread land positions
Geographical spread land positions (In millions, FY 2015) Strategic positions 31-12-2015 30-6-2015 31-12-2014 30-6-2014 (in millions euro) Brabant & Gelderland 3 4 4 4 Northern provinces 14 16 17 21 Randstad area 25 31 30 36 Southern provinces 3 3 3 4 Totals 45 54 54 65 Land in exploitation 31-12-20
Slide 54: Fenix Lofts Rotterdam Katendrecht
Fenix Lofts Rotterdam Katendrecht 54
Slide 55: Annex: Risk Management
Annex: Risk Management Policies and corporate philosophy gradually developed and implemented as from mid 2008: • Compact set-up with direct reporting to Executive • Uniform risk classification for all projects into three management; categories. Direct involvement from Executive board • Centralised o
Slide 56: Franki Hammer Strasse, Hamburg (D)
Franki Hammer Strasse, Hamburg (D) 56
Slide 57: Annex: IFRS % of completion method
Annex: IFRS % of completion method Progress production 100% • 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 50% 100% at completion. • Suppose a EUR 100
Slide 58: We are building the spatial contours of tomorrow
We are building the spatial contours of tomorrow 58
Slide 59: Project images in this handout
Project images in this handout Slide Project Location Segment Front New Amsterdam Court House PPP Amsterdam Non Residential 2 A4 Motorway Delft-Schiedam Infra 6 Eemskwartier Groningen Property Development 6 Meijster’s Buiten Utrecht Property Development 6 Luggage Hall Eindhoven Airport Non-residenti
Slide 60: Disclaimer
Disclaimer This presentation has been prepared by and is the responsibility of Heijmans N.V. This presentation is being supplied to you solely for your information and use. The information may not be further distributed or passed on to other people or published or reproduced in whole or in part. The