Koninklijke Heijmans N.v. · EURONEXT:HEIJM
Koninklijke Heijmans — Heijmans — H1 2009 Earnings Presentation
19 slides from Koninklijke Heijmans's earnings presentation, Aug 21, 2009
Slide 1: 2009 Semi-annual Report
2009 Semi-annual Report Executive Board 21.08.2009
Slide 2: Impact of measures is becoming evident
Impact of measures is becoming evident • Improvement in underlying operating result* in first half of 2009; • Strong decrease in the underlying operating result of Property Development NL due to a stagnating housing market; • Major losses incurred by Building Activities NL and in Belgium transformed
Slide 3: Update on organization restructuring
Update on organization restructuring • Restructuring with the following objectives: • Streamlined organization: shorter lines, more cost effective and responsive; • Adjustment to operations due to lower volumes. • The restructuring is on track (reduction of 689 FTEs since 30 September 2008); • The c
Slide 4: Strategic decision to adopt a smaller profile
Strategic decision to adopt a smaller profile • Focus on activities in the Netherlands in which Heijmans has a leadership position: • Housing developer and builder (area development/project development); • High grade niche position in Non-residential Building and Technical Services; • Infrastructure
Slide 5: Financial restructuring completed
Financial restructuring completed • Adjusted conditions for the €400 million bank facilities (28 April 2009); • Early redemption of US$ 125 million USPP loan using bridge financing; • Bridge financing repaid with net proceeds of rights issue; • Financial restructuring fully completed; • Balance shee
Slide 6: Key figures in first half of 2009
Key figures in first half of 2009 In € millions 2009 H1 2008H1 Revenues 1,488 1,722 Underlying operating result 5 2 Operating result -19 13 Result after taxes -43 2 Operating cash flow -126 7 Order book 2,525 3,261 Net debt position (end of period)* 470 391 * These figures do not account for the red
Slide 7: Composition of the underlying operating result
Composition of the underlying operating result Sector Revenues Underlying Operating Result In € millions 2009 H1 2008 H1 2009 H1 2008 H1 Property Development 226 349 4 31 Residential Building 279 321 7 -7 Non-residential 99 176 1 -2 Building Technical Services 140 132 7 3 Infrastructure 342 416 -1 -
Slide 8: Composition of operating result after taxes
Composition of operating result after taxes In € millions 2009 H1 2008 H1 Underlying operating result 5 2 Reorganization costs 24 0 Incidental gains 0 11 Operating result -19 13 On balance financial expenses -35 -5 Operating result before taxes -54 8 Income taxes 11 -6 Operating result after taxes -
Slide 9: Composition of order book
Composition of order book In € millions 2009 H1 2008 Property Development 414 636 Residential Building 510 640 Non-residential Building 195 192 Technical Services 192 257 Infrastructure 718 765 Foreign Operations 728 775 Other/Eliminations -232 -261 Total 2,525 3,004 9
Slide 10: Property Development NL: difficult market conditions
Property Development NL: difficult market conditions • Organizational restructuring largely complete: number of business units reduced and number of FTEs drastically reduced; • Strong decrease in the underlying operating result of Property Development NL due to a stagnating housing market; • Number
Slide 11: Residential Building NL: significantly improved performance
Residential Building NL: significantly improved performance • Revenues and order book declined due to selective contracting policy and deteriorating economic conditions; • Major losses halted due to organizational streamlining and fine tuning and lower costs of raw and other materials and for hiring
Slide 12: Non-residential Building NL: losses halted
Non-residential Building NL: losses halted • Revenues declined primarily due to selective contracting policy; • Underlying operating results significantly improved due to factors such as fine tuning of organization, nationally controlled production, centralized purchasing, improved risk management a
Slide 13: Technical Services NL: strong first half
Technical Services NL: strong first half • Underlying operating result improved due to: • Increase in revenues; • Improved profitability particularly due to a decrease in hired workers. • Increase in project and synergy benefits due to collaboration with other divisions; • Order book declined due to
Slide 14: Infrastructure NL: results in first half significantly improved
Infrastructure NL: results in first half significantly improved • Revenues declined due to poor weather conditions and decline in private sector demand; • Price levels in public tendering market still under pressure; • Underlying operating result improved due to reduced losses related to Road Buildi
Slide 15: Foreign operations: key points - significant recovery in Belgium
Foreign operations: key points - significant recovery in Belgium • Belgium: Losses halted for Property Development and Building; operating result around break-even. Heijmans Infrastructure results are satisfactory. Acquired two major contracts (European Council and Brabo). • United Kingdom: Leadbitt
Slide 16: Shareholders' Equity strengthened, solvency 23%
Shareholders’ Equity strengthened, solvency 23% • Shareholders’ equity* strengthened due to rights issue and amounts to €424 million; 450 • Solvency (based on guarantee capital) to 400 23.5%; • Net working capital remained stable in 350 relation to the first half of 2008, but increased 300 in compar
Slide 17: Outlook
Outlook • No pronouncements concerning all of 2009; • Order book declined; but gross margin improved; • Persistent uncertainties concerning housing market trends for the second half of 2009; • Well on track to a downsized, more flexible and resilient Heijmans. 17
Slide 18: Questions and Answers
OOOO “nn Questions and Answers 18
Slide 19: Disclaimer
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 at the presentation which will be or was held 21 August 2009. The information may not be further distributed or pas