Koninklijke Heijmans N.v. · EURONEXT:HEIJM
Koninklijke Heijmans — H1 2006 Earnings Presentation
24 slides from Koninklijke Heijmans's earnings presentation, Sep 14, 2006
Slide 1: 14 september 2006
14 september 2006 1
Slide 2: Heijmans realises half year profit of €36 million; EC fine impacts full year forecast
Heijmans realises half year profit of € 36; EC- fine impacts full year profit forecast Guus Hoefsloot
Slide 3: Heijmans realises half year profit of €36 million; EC fine impacts full year forecast
Heijmans realises half year profit of € 36; EC- fine impacts full year profit forecast Dick van der Kroft
Slide 4: Disclaimer
Disclaimer • This presentation contains forward- looking statements. By their nature these involve risk and uncertainty. Forward- looking statements represent the company’s judgement regarding future events, and are based on currently available information. Consequently the company cannot guarantee
Slide 5: Construction output in the Netherlands is growing, and for years to come too
Construction output in the Netherlands is growing, and for years to come too Forecast for growth in construction 5 output in 2006: 4% construction output 4 GDP 3 2 1 0 -1 -2 -3 -4 2001 2002 2003 2004 2005 2006 f 2007 f 2008 f 14 september 2006 Source EIB 5
Slide 6: Spread of activities cushions risk profile
Spread of activities cushions risk profile First half of 2006 International International Property 14% 23% 26% Infrastructure 15% Property Infrastructure 52% Building Building 23% 28% 19% Revenues (before elimination) Operating profit € 1,451 million € 53 million 14 september 2006 6
Slide 7: Results for first half of 2006: key points
Results for first half of 2006: key points • Growth in results at Property, International and Production compensates for pressure on results at Infrastructure and Building • Property: substantial increase in profit; sale of homes and order intake on schedule; risk of unsold/unlet non- residential pr
Slide 8: Development of results on schedule to achieve forecast for year
Development of results on schedule to achieve forecast for year In € million 2006H01 2005H01* difference Revenues 1,353 1,296 +4% Operating profit 53 56 -5% Profit after tax 36 35 +3% Operational cash flow -58 -64 Order book 2,963 2,632 +13% *adjusted for comparison purposes (see interim report 2006
Slide 9: Heijmans compensates results in market sectors
Heijmans compensates results in market sectors In € million 2006H01 2005H01 Property 27 22 Building 9 17 Infrastructure 8 15 International 7 4 Production 2 -3 Other/not allocated 0 1 Operating profit 53 56 14 september 2006 9
Slide 10: Increase in operating profit after correction for non-recurring items
Increase in operating profit after correction for non- recurring items € million 2006H01 2005H01 Operating profit 53 56 Book profit on sale of 5 5 subsidiary Release of management 0 6 participation plan Operating profit excl. non- 48 45 recurring items 14 september 2006 10
Slide 11: Property: stable revenues with higher margins
Property: stable revenues with higher margins In € million 2006H01 2005H01 Revenues 377 374 Operating profit 27 22 Operational margin 7.1% 5.9% Order book 807 773 14 september 2006 11
Slide 12: Market conditions remain good in housing market; exposure has declined in commercial property
Market conditions remain good in housing market; exposure has declined in commercial property. • Better market conditions : • Sale of 1,570 homes in first half of 2006; 925 from land positions, 645 from competitions • Average price € 247,000 (no legal/transfer costs) • Commercial property on Heijman
Slide 13: Owner-occupied housing market: healthy price development. Landbank source of growth.
Owner-occupied housing market: healthy price development. Landbank source of growth. 20% 18% Source: NVM 16% 14% 12% 10% 8% 6% 4% 2% 0% 1998 1999 2000 2001 2002 2003 2004 2005 1st half 2006 10-year m ortgage price developm ent for ow ner-occupied hom es •Total potential of 47,000 homes; land positio
Slide 14: Building: fall in revenues and lower quality order book put pressure on results
Building: fall in revenues and execution of lower quality order book put pressure on results In € million 2006H01 2005H01 Revenues 405 453 Operating profit 9 17 Operational margin 2.3% 3.8% Order book 977 953 14 september 2006 14
Slide 15: Building: Selective contracting and operational excellence
Building: Selective contracting and operational excellence orderbook ultimo H01 2006 orderbook ultimo 2005 revenues 2005 residential 42% private non-residential 19% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% public non-residential 27% one to one call for tenders service building 12% Operational exc
Slide 16: Infrastructure: end of substantial contribution from mega projects put margins under pressure
Infrastructure: as expected, end of substantial contribution from mega projects put margins under pressure In € million 2006H01 2005H01 Revenues 334 352 Operating profit 8 15 Operational margin 2.4% 4.2% Order book 968 667 14 september 2006 16
Slide 17: Infrastructure: adjust organization to suit market developments
Infrastructure: adjust organization to suit market developments • Increasing demand for large, integrated projects • Business unit for major integrated projects: engineering, contract management, risk management, coordination of work • Lowest price and efficiency are main selection criteria in regul
Slide 18: International: on the right track on a broad front
International: on the right track on a broad front In € million 2006H01 2005H01 Revenues 335 253 United Kingdom 126 102 Belgium 155 126 Germany 54 25 Operating profit 7 4 Operational margin 2.1% 1.5% Order book 583 528 14 september 2006 18
Slide 19: Financial position offers room for investments
Financial position offers room for investments (in € millions) 600 500 400 300 200 100 0 2004 30-June -05 2005 30-June -06 net debt equity 14 september 2006 19
Slide 20: Trends in property, infrastructure and building
Trends in property, infrastructure and building • Continuing housing shortage • Demand for integrated multidisciplinary projects: • Property: area development • Infrastructure: new contract forms • Building: PFI Stimulus for scale • Increasing outsourcing of maintenance and management • Increasing c
Slide 21: Events after 1st September 2006
Events after 1st September 2006 (date of presentation interim results) • Fine by European Comittee € 17,1 million • Heijmans considers to appeal decision • Earlier provisions of € 45 million insufficient • Additional provision of € 9 million against 2006 results affects results forcast 2006 but not
Slide 22: Strategic targets for 2008 upheld; Prospects for 2006
Strategic targets for 2008 upheld Position in Position in Target for 2008 2003* 2005 ROI 10.8% 14.5% 18% ROS 2.3% 2.8% 3% Front of chain 25% ≈35% 35% Back of chain 5% <10% 20% Prosepects for 2006 (barring unforeseen circumstances) •Revenues approx. € 3 billion (2005: € 2.8 billion) •Profit after tax
Slide 23: Contact
Contact • Heijmans NV • Fons van Lith, director Investor relations • +31 73 5435 232 • +31 6 51 31 49 52 (mobile) • flith@heijmans.nl 14 september 2006 23
Slide 24: 14 september 2006
14 september 2006 24