HOCHTIEF Aktiengesellschaft · XETR:HOT
HOCHTIEF Aktiengesellschaft — Non-Deal Roadshow (March 2006)
36 slides from HOCHTIEF Aktiengesellschaft's roadshow presentation, Mar 23, 2006
Slide 1: Cologne / Düsseldorf Roadshow
Cologne / Düsseldorf Roadshow 23 March 2006 Dr Peter Noé, CFO TURNING VISION INTO VALUE.
Slide 2: 2005…a year of strategic progression
2005…a year of strategic progression • Creating value - HTA EBT break-even - Leighton performance further improved - HTE profitability improved - UK/Ireland PPP market entrance; progress in German PPP • Demonstrating value - HTAC – creation of airport investment partnership - Concession portfolio NP
Slide 3: HOCHTIEF is about…quality of service
HOCHTIEF is about…quality of service • Structure designed to identify client needs across a wide geographical area • Better service/order quality means better margins • Holistic service model ideally suited to PPP client TURNING VISION INTO VALUE. 3
Slide 4: …leading to margin improvement…
…leading to margin improvement… Sales Sales (EUR (EUR bn) bn) EBT EBT (EUR m) // EBT (EUR m) EBT margin margin 14 13.65 350 329 12.00 11.94 1) 12 300 10.53 10 250 8 11.38 200 187 2.4% 10.19 8.62 9.72 159 6 150 121 1.6% 4 100 1.5% 1.0% 2 50 1.81 1.91 2.22 2.27 0 0 2002 2003 2004 2005 2002 2003 2004 2
Slide 5: …and bottom line earnings increase…
…and bottom line earnings increase… Net Net profit profit (EUR (EUR m) m) 70 63 60 50 43 41 40 30 20 16 10 0 2002 2003 2004 2005 • Net profit: - EUR 60m precautionary impairment charge on deferred tax assets - Increased minorities due to healthy business in Asia Pacific and Airport divisions TURNING
Slide 6: …to reward shareholders
…to reward shareholders Dividend Dividend (EUR/share) (EUR/share) 0,95 0.90 1) 0,90 Dividend yield (%): 0,85 2) 0,80 2002: 4.23 0.75 0,75 0,70 2003: 2.83 0.65 0,65 2004: 3.13 0,60 0.55 0,55 2005: 2.38 0,50 0,45 2002 2003 2004 2005 • Dividend policy: increased dividend to reflect earnings growth 1) P
Slide 7: A focus on quality orders…
A focus on quality orders… New New orders orders (EUR (EUR bn) bn) • Major new orders: - Numerous shopping malls, EUR 250m total 18 16 15.59 15.60 (e. g. Hamburg, Braunschweig, Wiesbaden, 14.43 14.35 14 Erlangen) 12 - Hospital Hamburg-Eppendorf, EUR 113m 10 12.21 12.17 12.83 13.05 8 - Sacred Heart H
Slide 8: …resulting in an impressive order backlog and excellent visibility…
…resulting in an impressive order backlog and excellent visibility… Order Order backlog backlog (in (in EUR EUR bn) bn) Order Order backlog backlog 05 05 (by (by division) division) 25 21.10 Europe Development 20 18.72 (1.4 x sales) (2.1 x sales) 16.47 15 14.07 17.77 14 % 9 % Asia Pacific 14.07 15.5
Slide 9: …supported by signs of recovery in Germany…
…supported by signs of recovery in Germany… German construction market 10 in % to prev. year 5 • Growth in order intake 0 -5 J 05 F 05 M 05 A 05 M 05 J 05 J 05 A 05 S 05 O 05 N 05 D 05 -> bottoming out in mid 05 -10 -> resulting in increasing sales figures -15 -20 in 1-2 years -25 % 110 • Increase i
Slide 10: ...and future growth: concessions and operation…
...and future growth: concessions and operation… HOCHTIEF - Concession Projects - Portfolio as of 12/2005 - Forecast (EUR m) Status: Committed Paid-in NPV NPV Difference due to Financial Close Capital Capital of anticipated as of Growth of Growth of Cash Flows 31.12.2004 Portfolio Value Airports 410
Slide 11: …with financial soundness and hard working assets
…with financial soundness and hard working assets Net Net cash cash (EURm) (EURm) Equity Equity ratio ratio (%) (%) 1.600 30 28.3 1.400 25.5 26.7 26.1 1.200 1,124.0 1,153.4 25 1.000 1,033.5 20 800 676.4 15 600 10 400 5 200 0 0 2002 2003 2004 2005 2002 2003 2004 2005 RONA RONA (%) (%) 14 13.0 12 10 8
Slide 12: HOCHTIEF is about…quality of earnings...
HOCHTIEF is about…quality of earnings... • Profitability of PreFair expansion • Consolidation of US business for future margin improvement • Project development market continues to recover • FM continues to optimize integrated market approach, increasing profitability • Further PPP progress TURNING
Slide 13: …Construction PreFair - leading the competition from price to quality
…Construction PreFair - leading the competition from price to quality Influence Construction Phase on costs • Quality competition 100 % boosts quality earnings • Improvement of reliability and Time visibility of earnings • Increases likelihood of repeat business Traditional Design Tender Constructio
Slide 14: …Construction PreFair targets
…Construction PreFair targets Portion of PreFair projects (%) 86.7% target 90 81.1% 78.2% 85% 85% 85% HTE 80 (of total building activities) 70 60% HT Americas 60 (non-lump sum contracts 50 average 84%) 40% 40 30% 30 20.5% 20 10 0 2000 2002 2004 2006 2008 2010 PreFair: Target EBT margin: 4.0 % TURNIN
Slide 15: …Construction Consolidation of US business
…Construction Consolidation of US business • Consolidation on high level of order intake Turner new orders 05 split • Greater selectivity in marketing and booking of by market segment: new orders to enhance future margin growth Transportation/ Misc. 3.7% Commercial/ • Healthy balance in market segme
Slide 16: …Development Selected projects yield strong returns
…Development Selected projects yield strong returns Success factors: • Strict IRR target > 14% 1.673 1.745 • Stringent risk control of the Hamburg Berlin entire development process 901 Düsseldorf 970 • Expansion into CEE 3.167 Warsaw ¾ expected market volume of Cologne Frankfurt 640 EUR 6 - 8bn unti
Slide 17: …Services FM - strong growth in market opportunity
…Services FM - strong growth in market opportunity Market growth integrated Facility Management Germany (EUR bn)1): 9 7.90 • Growth of German market 7.04 for integrated FM services 6.29 6 5.62 >10% p.a. 5.02 4.48 • HT FM target: EBT margin of 3 c. 4% by 2006 0 2004 2005E 2006E 2007E 2008E 2009E 1) S
Slide 18: …Concessions and operation PPP
…Concessions and operation PPP Building/Social Infrastructure (EUR bn) Toll Roads (EUR bn) Public buildings, Germany:1) Germany: (contract volume p. a.) (investment volume p. a.) 5.9 4 6 5.0 3 2.1 3.9 4 2.9 5,9 2 5 0.4 1.0 2 3,9 2,9 1 0 0 2006E 2007E 2008E 2009E 2005/06E 2007/08E 2008/09E ff + UK PF
Slide 19: …leading to a positive outlook 2006
…leading to a positive outlook 2006 Net profit mid-term target of EUR 100m 2005 2006E as reported adjusted1) EUR bn Sales Min. on previous year‘s level 13.65 EBT EUR m EUR m + Above previous year’s level 329 277 (referring to adjusted 05 figure) EUR m Significant step towards Net profit + mid-term t
Slide 20: HOCHTIEF is about…quality
HOCHTIEF is about…quality • We have the best people • We offer our clients the best individual, integrated solutions • We shape markets and set new standards • We always act responsible • AND WE’RE WORKING TO GET BETTER TURNING VISION INTO VALUE. 20
Slide 21: APPENDIX
APPENDIX TURNING VISION INTO VALUE. 21
Slide 22: HOCHTIEF divisional structure
HOCHTIEF divisional structure Solutions around the world throughout the construction value chain HOCHTIEF HOCHTIEF HOCHTIEF HOCHTIEF HOCHTIEF CONSTRUCTION SERVICES CONSTRUCTION SERVICES CONSTRUCTION SERVICES AIRPORT DEVELOPMENT AMERICAS ASIA PACIFIC EUROPE Sales 05: (EUR m) n.a. 925 5,934 4,578 2,11
Slide 23: Split by regional sales
Split by regional sales Jan-Dec 2005: EUR 13,653m; Jan-Dec 2004: EUR 11,944m Germany 2005: EUR 2,271m (17%) 2004: EUR 2,223m (19%) Other Europe America 2005: EUR 693m (5%) 2005: EUR 5,998m (44%) 2004: EUR 545m (5%) 2004: EUR 5,654m (47%) Asia/Pacific, Africa 2005: EUR 4,691m (34%) 2004: EUR 3,522m (
Slide 24: HOCHTIEF Airport
HOCHTIEF Airport Essentials Essentials Financials Financials (EUR (EUR m) m) • EBITA more than doubled (w/o HTAC effect) Jan-Dec (EUR m) 2005 2004 % change • EBT break-even achieved Net income from participations 54.3 27.0 101.1 • NPV end 05: EUR 665.7m based on EBITA 87.0 14.7 491.8 parameters from
Slide 25: HOCHTIEF Development
HOCHTIEF Development Essentials Essentials Financials Financials (EUR (EUR m) m) Jan-Dec (EUR m) 2005 2004 % change • Marginally lower EBT due to start up costs associated with key PPP contracts New orders 1,156.5 1,297.4 -10.9 • FM integration finalized Order backlog 1,934.0 1,741.5 11.1 • Real Est
Slide 26: HOCHTIEF Construction Services Americas
HOCHTIEF Construction Services Americas Essentials Essentials Financials Financials (EUR (EUR m) m) • Consolidation on high level of order Jan-Dec (EUR m) 2005 2004 % change intake New orders 6,308.6 6,396.1 -1.4 • Greater selectivity in marketing and Order backlog 6,901.7 5,746.1 20.1 booking of ne
Slide 27: HOCHTIEF Construction Services Asia Pacific
HOCHTIEF Construction Services Asia Pacific Essentials Essentials Financials Financials (EUR (EUR m) m) • Sound EBT increase reflects strong Jan-Dec (EUR m) 2005 2004 % change performance of infrastructure and 5,248.0 New orders 5,521.7 -5.0 contracts mining business Order backlog 9,274.9 8,602.4 7.
Slide 28: HOCHTIEF Construction Services Europe
HOCHTIEF Construction Services Europe Essentials Essentials Financials Financials (EUR (EUR m) m) Jan-Dec (EUR m) 2005 • 2005 margin target exceeded 2004 % change • Continued success with PreFair New orders 2,780.6 2,295.1 21.2 • Order situation better than anticipated Order backlog 2,985.0 2,625.3
Slide 29: Consolidated Group balance sheet (assets)
Consolidated Group balance sheet (assets) (EUR m) 31 Dec 05 31 Dec 04 Non-current assets: Intangible assets 330,298 296,879 • Intangible assets and pp&e: currency PP&E 682,220 665,995 Investment properties 206,631 234,621 effects and expansion in contract Equity-method investments 718,167 716,071 mi
Slide 30: Consolidated Group balance sheet (equity and liabilities)
Consolidated Group balance sheet (equity and liabilities) (EUR m) 31 Dec 05 31 Dec 04 Shareholders’ equity: Subscribed capital 179,200 179,200 Capital reserves 400,806 400,806 • Increased earnings after taxes Revenue reserves 1,175,241 1,100,843 • EUR 143m effect due to Accumulated other compr. inco
Slide 31: Consolidated Group figures
Consolidated Group figures Jan-Dec (EUR m) 2005 2004 Change (%) • Sales: all divisions contribute to Sales 13,653.2 11,943.7 14.3 growth, mainly Asia Pacific Other operating income 274.4 169.8 61.6 • Other operating income: increase Other operating expenses -777.7 -707.5 -9.9 mainly due to HTAC Net
Slide 32: Group EBT -> Net profit
Group EBT -> Net profit Tax 7 329 52 56 141) Def. taxes HTE/ 31 others Def. taxes Asia 66 ~235 HTAC Pacific write downs 151) 60 reserve Minorities 401) 151 88 251) 63 EBT as EBT as EAT as Net profit as guided reported reported guided/reported 1) Effects from difference EBT “reported – guided” TURNIN
Slide 33: Consolidated Group Cash flow
Consolidated Group Cash flow (EUR m) -132 2004 -300 +311 2005 -154 +636 -111 +66 • 04: pro- ceeds from • 05: Refinan- -318 sale of cing (mainly marketable at HTA), • 05: HTAC securities higher bor- • 04: CTA proceeds (-EUR 286m) • 05: expan- rowing but (+EUR also higher • 05: mainly 1,061 sion of 29
Slide 34: Special topic: from ROCE to RONA
Special topic: from ROCE to RONA ROCE RONA EBITA EBITA + Interest income1) = 365.7+ 64.0 = 13.0% Ø capital employed Ø net assets 3,313.1 • Return expectations limited to • Based on net assets (i.e. total assets w/o operational field (capital employed) non-interest bearing liabilities) • Complex calc
Slide 35: 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 36: Financial calendar and IR contact
Financial calendar and IR contact 10 May 06 General Shareholders’ Meeting 15 May 06 Q1 results 2006 and Conference Call 14 Aug 06 Half year results 2006 and Analysts’ and Investors’ Conference 14 Nov 06 Q3 results 2006 and Conference Call 22 Mar 07 Full year results 2006 and Analysts’ and Investors’
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