Koninklijke Heijmans N.v. · EURONEXT:HEIJM
Koninklijke Heijmans — Heijmans — Non-Deal Roadshow (June 2009)
28 slides from Koninklijke Heijmans's roadshow presentation, June 2009
Slide 1: Roadshow Presentation June 2009
Roadshow Presentation June 2009
Slide 2: Disclaimer
Disclaimer Not for release, distribution or publication, whether directly or indirectly and whether in whole or in part, into or in the United States, Australia, Canada or Japan or any other jurisdiction in which such release, distribution or publication would be unlawful. This confidential presenta
Slide 3: Agenda
Agenda • Executive Summary • Recent Developments • Adjusted Strategy • Financing Solution • Key Strengths • Q&A • Appendix 3
Slide 4: Executive Summary
Executive Summary Proposed Rights Offering of EUR 101m • Finalisation of total financial restructuring by fully underwritten rights offering • 6 for 1 rights offering of new bearer depositary receipts of ordinary shares • Issue price of EUR 0.70 representing a discount to TERP of 39.8% • Net proceed
Slide 5: Agenda
Agenda • Executive Summary • Recent Developments • Adjusted Strategy • Financing Solution • Key Strengths • Q&A • Appendix 5
Slide 6: Trading Update
Trading Update • Due to the seasonality, the figures are typically lower in the first three months of the year than in the rest of the year • Better performance despite declining revenues due to selective contracting policy in terms of projects, slowdown in residential sales (Property Development NL
Slide 7: Revenue Development Jan - Mar 2009
Revenue Development Jan - Mar 2009 Geographical distribution • Revenue development impacted by - more selective contracting policy - slowdown in residential sales ; and - poor weather conditions • Revenue development in first three months in the UK and Germany in line with last year Jan-Mar Oct-Dec0
Slide 8: Underlying Results of Operations in Jan-Mar 2009
Underlying Results of Operations in Jan-Mar 2009 Geographical distribution • “Underlying results of operations” in the first three EUR millions Jan-Mar 2009 Jan-Mar 2008 months of the year are typically lower than the The Netherlands -16 -32 rest of the year due to seasonal influences Belgium 0 -3 •
Slide 9: Order Book as of end of March 2009
Order Book as of end of March 2009 Geographical distribution • Order book impacted by selective contracting policy and deteriorating market conditions • Order book in the Netherlands impacted most with a decrease of 9.2% • Total order book value decreased with 6.1% compared to 2008 year end • UK ord
Slide 10: Update on Restructuring
Update on Restructuring • Organisational restructuring of the operations is on schedule - Downsizing of operations - Downsizing of Dutch organisation • Up until today, certain key aspects of the organisational restructuring announced in 2008 were implemented • Some 650 jobs will be eliminated, a soc
Slide 11: Agenda
Agenda • Executive Summary • Recent Developments • Adjusted Strategy • Financing Solution • Key Strengths • Q&A • Appendix 11
Slide 12: Fundamental Change in Corporate Strategy
Fundamental Change in Corporate Strategy • Focus on core activities in the Netherlands Revised • Further business rationalisation corporate • Emphasis on process, risk and contract management strategy • Selective contracting policy, margin is top priority • Focus on reduction of cost and capital emp
Slide 13: Reducing operational and financial risk
Reducing operational and financial risk Scaling back activities • Reduce capital employed in Property Development • Reduce size of land bank • Foreign operations lack synergies with Dutch operations • Dispose or discontinue of foreign operations, except for Infra Belgium Transformation into a Dutch
Slide 14: Further Business Rationalisation
Further Business Rationalisation Management Board Group-level Management (Concerndirectie) Ton Hillen Bert van der Els Gerrit Witzel Property Residential Non-Residential Technical Infrastructure International Development Building Building Services • Focus on 5 sectors, by means of 3 strategic busine
Slide 15: Emphasis on Process Management
Emphasis on Process Management • More centralised risk / financial / management function to limit risk and increase efficiency • Risk management - New project & risk management procedures in progress - Centralised organisation and integration of business supports - Projects are centrally registered,
Slide 16: Disposals will be excercised with due care
Disposals will be excercised with due care Belgium Revenue development* • Property Development and Building 379 • Performance in 2008 negatively impacted by loss making projects in residential building and property development UK • Residential and Non-Residential Building through Leadbitter and Denn
Slide 17: Agenda
Agenda • Executive Summary • Recent Developments • Adjusted Strategy • Financing Solution • Key Strengths • Q&A • Appendix 17
Slide 18: Finalising Financial Restructuring
Finalising Financial Restructuring Steps taken • Repurchase of US private placement (USPP notes) USPP • Financed by bridge loan facility of EUR 85.6m • Amendment of the terms of the Syndicated Loan Facility of EUR 400m Loans • Committed bilateral credit facility of EUR 50m Preference • Adjusted cond
Slide 19: Agenda
Agenda • Executive Summary • Recent Developments • Adjusted Strategy • Financing Solution • Key Strengths • Q&A • Appendix 19
Slide 20: Key Strengths Heijmans
Key Strengths Heijmans • Long term drivers for construction market in the Netherlands are positive Fundamentally • Demographic and economic factors suggest that the demand in the residential building attractive sector segment should be strong over the medium to long term • Government expected to boo
Slide 21: Property Development and Residential Building
Property Development and Residential Building • Activities in, amongst others, the areas of development, building and sales of homes • Combining technical knowledge on the building site with the market knowledge of property development • Top 3 position in Dutch residential development market • Requi
Slide 22: Non-Residential Building and Technical Services
Non-Residential Building and Technical Services • Strong position and focus on markets for healthcare, real estate, governmental building and high tech clean industries • Heijmans can add value for our customers and for markets where the company has relevant capabilities and experience • Implement b
Slide 23: Infrastructure
Infrastructure • Infrastructure covers the complete value chain of construction and maintenance activities • Top 3 position in Dutch infrastructure market with a market share of approximately 6% • Heijmans can focus both on larger national projects as well as on smaller regional projects through its
Slide 24: Questions and Answers
Questions and Answers heymans 24
Slide 25: Appendix
Appendix heymans 25
Slide 26: Increased financial flexibility
Increased financial flexibility • Existing bank facility of EUR 400m has been Covenant: Net debt/EBITDA continued by all banks based on adjusted conditions – Covenants set at levels shown in graphs – Interest rate set at EURIBOR + 350bps – Facility matures on 24 March 2012 • Reduction of face value
Slide 27: Proposed Rights Offering
Proposed Rights Offering Rights issue • Rights offering fully underwritten by ING, Rabo Securities and MeesPierson • Total issue size of EUR 101m Issue size • 144,435,504 new bearer depositary receipts • 6 new bearer depositary receipts per 1 rights Terms • Issue price of EUR 0.70 per bearer deposit
Slide 28: Expected Timetable Rights Offering
Expected Timetable Rights Offering • Launch of rights issue 29 June • Record date at 17:40 CET • Start subscription period at 9:00 CET 30 June • Start of rights trading at 9:00 CET • End of rights trading at 13:15 CET 9 July • End of subscription period at 15:30 CET • Start rump offering at 8:00 CET