Slide 1: Heijmans – Business Update
Heijmans – Business Update September 2015, based on H1 2015 interim results
Slide 2: Asset Management Schiphol Airport
Asset Management Schiphol Airport 2
Slide 3: Contents
Contents • Company profile • Strategy • H1 2015 Interim results and outlook • Developments per sector • Appendices Ø Financial figures: P&L, Balance Sheet, Land Bank positions, Financial Covenants Ø Procedures: Property development, Risk management Ø Organisation: Organisational chart, resumes Execu
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 the sixties, diversification towards residential building • During the eighties, diversification towards property development • Listing at the Amsterdam Stock Exchange in 1993 •
Slide 6: Company profile: Residential, Non-residential, Infrastructure
Company profile Residential Non-residential Infrastructure Property development Building Road building Residential building Technical Services Civils Engineering Eemskwartier Groningen Lounge 2 Schiphol Airport N23 Westfriciaweg, Province of North Holland 6 6 Meysters’s Buiten, Utrecht Music Center
Slide 7: Heijmans at a glance
Company profile Heijmans at a glance • With around 6,800 employees and approx. € 2 billion in annual revenues, Heijmans combines activities in the fields of property development, residential building, non-residential and infrastructure; • Focus on selective markets, active in the Netherlands, Belgiu
Slide 8: Sustained recovery of Dutch housing market
Company profile Sustained recovery Dutch housing market is visible: Number of homes sold by quarter 800 700 600 500 2012 400 2013 2014 300 2015 200 100 0 Q1 Q2 Q3 Q4 Order book offers perspective: Development order book 2.700 2.500 (€ mln.) 2.300 2.100 1.900 1.700 1.500 Development order book 8
Slide 9: Strategy – Restructuring provides potential
Strategy – Restructuring provides potential • Since 2009, Heijmans has implemented a transformational strategic restructuring: Ø Focus on core activities in the Netherlands and Belgium Ø Disposal of non-core foreign operations Ø Reduction in strategic land bank positions Ø Margin over volume ~ added
Slide 10: A12 Motorway PPP Veenendaal – Ede – Grijsoord
A12 Motorway PPP Veenendaal – Ede – Grijsoord 10
Slide 11: Strategy – Ambition
Strategy – Ambition Strategy “To be the best construction company in the Netherlands” • 2012 Boston Consultancy Group review: Heijmans can become the best Dutch construction company • Overall midterm EBIT goal of 3-4% is realistic • Strategic direction based on “Improvement” & “Renewal/Innovation” “
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: rm) Cc o = > w =
rm) Cc o = > w =
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 • Cooperation with Spark (network for creativity and knowl
Slide 16: Smart Energy, Smart Materials, Smart Highway, Smart Space
Smart Energy: ‘Bright house’ Smart Materials: ‘3D print’ 16 Smart Highway Smart Space: ‘Heijmans One’ portable house
Slide 17: H1 2015 – Interim results
H1 2015 – Interim results Key figures H1 FY Actual Actual Actual “Heijmans benefits from recovering housing market, (amounts in million €) 2015 2014 2014 negative result due to pressure on infra” Revenues 922 823 1.868 Underlying Operating Result -11 -7 -12 Improvement of operating results remains t
Slide 18: Living Lab Solar Noise Barriers 's-Hertogenbosch
Living Lab Solar Noise Barriers ‘s-Hertogenbosch 18
Slide 19: H1 2015 – Interim results
H1 2015 – Interim results To improve and renew: • Safety improved due to internal GO! (No Accidents) programme: Ø Decrease in # accidents and in IF-rate (injuries with non-attendance ≥ 1 day per mln working hours). From 6.1 in 2013 to 5.6 in 2014 to 4.8 mid year 2015 • Good progress of restructuring
Slide 20: MX3D 3D metal print bridge Amsterdam
MX3D 3D metal print bridge Amsterdam 20
Slide 21: H1 2015 - Outlook
H1 2015 - Outlook “Outlook 2015: improvements to become visible in 2nd half of 2015” • Positive trend of housing market continues, Heijmans well positioned with Residential and Property Development; • Gradual improvement of Non-residential and Infra business; • For infra in particular, the key chall
Slide 22: Harener Holt Haren
Harener Holt Haren 22
Slide 23: Developments per sector: Property Development
DEVELOPMENTS PER SECTOR In EUR mln H1 2015 H1 2014 Revenues 126 61 PROPERTY DEVELOPMENT Underlying operating result 4 -1 Underlying operating margin 3,2% -1,6% Order book 280 229 • After several years with historically low activity, market recovery continues: Ø Revised government policies related to
Slide 24: Het Timmerhuis Rotterdam
“Het Timmerhuis” Rotterdam 24
Slide 25: Developments per sector: Residential
DEVELOPMENTS PER SECTOR In EUR mln H1 2015 H1 2014 Revenues 204 140 RESIDENTIAL Underlying operating result 3 -1 Underlying operating margin 1,5% -0,7% Order book 392 361 • Heijmans anticipates on the new reality of Dutch housing market: Ø Standardisation brings high quality at a competitive price Ø
Slide 26: Bèta Campus FWN Leiden University
Bèta Campus FWN Leiden University 26
Slide 27: Developments per sector: Non-Residential
DEVELOPMENTS PER SECTOR In EUR mln H1 2015 H1 2014 Revenues 220 169 NON-RESIDENTIAL Underlying operating result -2 1 Underlying operating margin -0,9% 0,6% Order book 549 682 • Niche profile with margin-over-volume strategy > added value proposition due to strong integration of construction and inst
Slide 28: A4 Delft-Schiedam
A4 Delft-Schiedam 28
Slide 29: Developments per sector: Infra Netherlands
DEVELOPMENTS PER SECTOR In EUR mln H1 2015 H1 2014 Revenues 306 341 INFRA NETHERLANDS Underlying operating result -15 -5 Underlying operating margin -5,0% -1,4% Order book 879 830 • Revenues decreased, poor performance, challenging conditions large projects; • Improvements visible in regional projec
Slide 30: Liefkenshoektunnel Antwerpen
Liefkenshoektunnel Antwerpen 30
Slide 31: Developments per sector: Infra Belgium
DEVELOPMENTS PER SECTOR In EUR mln H1 2015 H1 2014 Revenues 57 65 INFRA BELGIUM Underlying operating result 3 7 Underlying operating margin 5,3% 10,8% Order book 103 98 • Revenues in Belgium and operating result decreased slightly in 2015; • But still healthy profit margins for both Heijmans Infra (
Slide 32: Mercaden Dorsten (Germany)
Mercaden Dorsten (Germany) 32
Slide 33: Developments per sector: Infra Germany
DEVELOPMENTS PER SECTOR In EUR mln H1 2015 H1 2014 Revenues 126 111 INFRA GERMANY Underlying operating result 1 0 Underlying operating margin 0,8% 0,0% Order book 238 206 • German business consists of Franki Grundbau (specialised in foundations) and Oevermann (both roads and non-residential); • Afte
Slide 34: St.-Jan parking garage 's-Hertogenbosch
St.-Jan parking garage ‘s-Hertogenbosch 34
Slide 35: Appendices
Appendices
Slide 36: Smart Highway Heijmans Technology
Smart Highway Heijmans Technology 36
Slide 37: Annex: Profit & Loss account (EBIT per sector)
Annex: Profit & Loss account (EBIT per sector) First half year Full year (in million €) Actual Actual Actual 2015 2014 2014 Revenues EBIT Revenues EBIT Omzet EBIT Property Development 126 4 61 -1 179 4 Residential - Netherlands 158 3 92 -3 210 0 Residential - Belgium 46 0 48 2 90 2 Residential build
Slide 38: Annex: Balance Sheet
Annex: Balance Sheet Balance sheet Q2 Q4 Q2 (in million €) 2015 2014 2014 Property, plant and equipment 87 93 97 Intangible assets 113 114 115 Real estate investments 2 2 6 Participation in Joint Ventures 70 69 54 Debtors - Staff related 34 24 27 Financial assets 63 62 55 Fixed assets 371 364 355 Wo
Slide 39: Annex: Balance Sheet – working capital and net debt
Annex: Balance Sheet Working capital Q2 Q4 Q2 (in million €) 2015 2014 2014 Strategic land bank 185 183 210 Residential building under construction 78 72 72 Residential building 'ready not sold' 6 6 9 Inventories 23 26 27 Work in progress 149 167 147 Receivables 293 311 296 734 767 762 Current and n
Slide 40: Dive coaster 'Baron 1898' 2nd phase Bosrijk Efteling
Dive coaster ‘Baron 1898’ 2nd phase Bosrijk Efteling 40
Slide 41: Annex: Financial covenants
Annex: Financial covenants 12 months rolling Financial covenants Definition Ratio Actual Actual Actual (in million €) 30-jun-14 31-12-2014 30-6-2015 Leverage Ratio Consolidated Total Net Borrowings / Consolidated EBITDA Max 3 1,6 -0,9 2,8 Interest Cover Ratio Consolidated EBITDA / Consolidated Net I
Slide 42: Elisabeth Center Antwerp (Belgium)
Elisabeth Center Antwerp (Belgium) 42
Slide 43: Geographical spread land positions
Strategic positions Geographical spread (in Mln. €) 30-6-2015 31-12-2014 30-6-2014 land positions Brabant & Gelderland 4 4 4 Northern provinces 16 17 21 Randstad 31 30 36 Southern provinces 3 3 4 54 54 65 Land in exploitation (in Mln. €) 30-6-2015 31-12-2014 30-6-2014 Brabant & Gelderland 57 57 66 N
Slide 44: Annex: Property development
Annex: Property development 1. Design contests & selections 2. Fee-developments 3. Land positions Fenix Lofts Rotterdam (1) Overhoeks – Amsterdam (2) Noorderhaven Zutphen (3) 44
Slide 45: 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 46: Annex: Property development – policies and corporate philosophy
Annex: Property development Policies and corporate philosophy gradually developed and implemented as from mid 2008: • Compact set-up with direct reporting to Executive • Direct involvement from Executive board in large management; and complex projects; • Centralised organisation model: Heijmans acts
Slide 47: Annex: Property development – number of projects
Annex: Property development Number of projects Illustrative example 0% Gross project margin Additional attention and control • Aim is not to eliminate all risks. These are and will remain to be, associated with project business; • Objective is to control and manage risks with the purpose of achievin
Slide 48: Kousrelining, Composite bridge, Infrastructure for Electric cars
Kousrelining (renovation of waterpipes) Infrastructure for Electric cars Composite bridge Infra technology & mobility 48
Slide 49: 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, Infra Belgium Mark van den Biggelaar (1968), CFO & member of the Executive Board responsible for: F
Slide 50: We are building the spatial contours of tomorrow
We are building the spatial contours of tomorrow 50
Slide 51: Project images in this handout
Project images in this handout Slide Project Location Segment 2 Asset Management Schiphol Schiphol Airport Infra 6 Eemskwartier Groningen Property Development 6 Meijster’s Buiten Utrecht Property Development 6 Lounge 2 Schiphol Airport Non-residential 6 Music center Vredenburg Utrecht Non-residentia
Slide 52: 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