Hochtief Aktiengesellschaft · XETR:HOT

Hochtief Aktiengesellschaft — Hochtief — FY 2023 Earnings Presentation

43 slides from Hochtief Aktiengesellschaft's earnings presentation, Feb 22, 2024

  1. Slide 1: Investor Relations Company Presentation FY 2023 results

    Investor Relations Company Presentation FY 2023 results – February 22, 2024 © Vladimir Caribb Juan Santamaría, CEO Peter Sassenfeld, CFO Mike Pinkney, Head of Corporate Strategy Tobias Loskamp, Head of Capital Markets Strategy 1

  2. Slide 2: Table of contents

    Table of contents  Highlights 3  P&L 5  Cash flow 6  Net cash 7  Order book 8  Recent project awards 9  Americas 10  Asia Pacific 11  Europe 12  Abertis 13  Corporate strategy 14  Capital allocation and Guidance 17  ESG 18 © HOCHTIEF © HOCHTIEF Appendix  Group financials overview 20 

  3. Slide 3: HOCHTIEF Group – FY 2023 overview

    Op. net profit Nom. net profit HOCHTIEF Group – FY 2023 overview EURm Operational net profit EUR 553m, at the top end of the guidance range, +11% fx-adj. yoy  Operational net profit growth yoy of 6% (11% fx-adj.), at top end of the guidance range (EUR 510-550m)  Nominal net profit growth of 8%, or

  4. Slide 4: Group – FY 2023 key figures

    HOCHTIEF Group – FY 2023 key figures FY FY Δ FY Δ FY Q4 Q4 Δ Q4 Δ Q4 2023 2022 in % in EURm 2023 2022 in % in EURm (EUR million) Sales 27,756.0 26,219.3 5.9% 1,536.7 7,394.1 7,095.7 4.2% 298.4 Operational profit before tax/PBT 774.1 733.1 5.6% 41.0 202.4 187.0 8.2% 15.4 Operational PBT margin in % 2

  5. Slide 5: Group – P&L

    HOCHTIEF Group – P&L • Strong sales performance with an increase of 6% yoy (+10% fx-adj.), driven by all divisions • Robust EBITDA and EBIT margins of 4.4% and 3.3% +6% • Net financial costs variation yoy in 2023 reflects higher interest rates environment and fx-effects +10% fx-adj. • Operational ne

  6. Slide 6: Group – Cash flow performance

    HOCHTIEF Group – Cash flow performance* • Outstanding 2023 performance with cash flow from op. activities pre-factoring* of EUR 1.45bn, up EUR 236m yoy  Very strong Q4 2023 cash flow* of over 1.2bn up EUR 149m yoy  Sustained high level of cash conversion with strong working capital management • Ne

  7. Slide 7: Group – Net cash development

    HOCHTIEF Group – Net cash development • HOCHTIEF ended FY 2023 with a net cash position of EUR 872m, which is an increase of EUR 519m yoy, or EUR 811m on an underlying basis. This is driven by a strong FY 2023 cash flow performance. Additional effects in 2023 are:  HOCHTIEF’s dividend payment of EU

  8. Slide 8: Group – Order backlog and new orders

    HOCHTIEF Group – Order backlog and new orders • HOCHTIEF Group  Very strong new orders of EUR 36.7bn in FY 2023, up EUR 6.6bn yoy (+27% fx-adj.); 1.2x work done  Expansion driven by strategic focus on high-growth markets, which accounted for approx. 50% of new orders  The vast majority of new ord

  9. Slide 9: Selected recent significant project announcements

    HOCHTIEF Group – Selected recent significant project announcements Major climate resiliency contracts, Frankfurt judiciary center, Data Center, HOCHTIEF Fast-charging networks for Burnett River replacement dam Flatiron, USD 350 m (02/2024) to combat HOCHTIEF (12/2023) PPP (09/2023) as part of a elec

  10. Slide 10: Americas – FY 2023 results

    HOCHTIEF Americas – FY 2023 results Essentials Financials (EUR million) FY FY FY Q4 Q4 Q4 Results / Cash 2023 2022 change yoy 2023 2022 change yoy Total sales / divisional sales 18,111.0 17,460.0 3.7% 4,758.7 4,670.0 1.9% • Solid sales growth of 7% fx-adj to EUR 18.1bn Operational profit before tax/

  11. Slide 11: Asia Pacific, CIMIC (in AUD) – FY 2023 results

    HOCHTIEF Asia Pacific, CIMIC (in AUD) – FY 2023 results Essentials Financials Results / Cash FY 2023 (AUD m) Operational1 FY 2022 Δ% • Revenue growth of 19.8% to AUD 13.3bn from all Australian Revenue 13,279.3 11,086.9 19.8% EBITDA 1,006.3 1,010.8 -0.4% operating companies, reflecting a strong order

  12. Slide 12: Europe – FY 2023 results

    HOCHTIEF Europe – FY 2023 results Essentials Financials (EUR million) FY FY FY Q4 Q4 Q4 Results / Cash 2023 2022 change yoy 2023 2022 change yoy Total sales / divisional sales 1,339.4 1,270.8 5.4% 338.0 344.2 -1.8% • Sales of EUR 1.3bn increased by 5% yoy Operational profit before tax/PBT 64.0 63.4

  13. Slide 13: Abertis – FY 2023 results

    Abertis – FY 2023 results Essentials Abertis - Key figures (100%) (EUR million) FY FY Q4 Q4 Q4 • Average daily traffic (ADT) up +3% yoy: France (total ADT change change 2023 2022 2023 2022 +3%), Spain (+2%), Italy (+3%), Brazil (+5%), Chile (-3%), yoy yoy Mexico (+3%) and USA (+4%) Operating revenue

  14. Slide 14: Corporate Strategy

    Corporate Strategy Group objectivess Key elements of Strategy • Sustainable cash-backed profits  Consolidate core market positions and develop presence in the structural growth areas of high-tech, energy transition and sustainable infrastructure • Attractive shareholder remuneration • Harness stron

  15. Slide 15: Reaffirming existing strengths whilst expanding high-tech infrastructure presence

    Reaffirming existing strengths whilst expanding high-tech infrastructure presence Further develop HOCHTIEF’s presence in the value chain of rapidly expanding high-tech infrastructure and secular growth markets Energy Digital New sustainable Social Sustainable Reshoring transition infrastructure mobi

  16. Slide 16: 2023 strategic high-growth markets: Equity investments

    2023 strategic high-growth markets: Equity investments (cEUR 150m committed) Energy Digital New sustainable transition infrastructure mobility Glenrowan solar farm, Australia Data centers, Germany EV fast-charging network, Germany • Pacific Partnerships with UGL undertaking • HOCHTIEF and Palladio P

  17. Slide 17: Group – Capital allocation & Guidance

    HOCHTIEF Group – Capital allocation & Guidance Op. net profit guidance 2024 (EURm) Capital allocation  Shareholder remuneration 560-610  FY 2023 dividend proposal of EUR 4.40/share, unchanged 65% payout ratio (EUR 342m) 553  Shareholder remuneration remains a priority  Active evaluation of capit

  18. Slide 18: Group – Accelerating ESG drive

    HOCHTIEF Group – Accelerating ESG drive • Significant progress in implementation of ambitious Sustainability Plan 2025 (60+ Commitments/ 100+ Measures) • Group wide Working Groups to align activities and benefit from worldwide expertise • HOCHTIEF has been included for the 18th year running in the D

  19. Slide 19: Appendix: FY 2023

    Appendix: FY 2023 © HOCHTIEF Frankfurt University of Applied Sciences, Frankfurt, Germany 19

  20. Slide 20: Group – overview

    HOCHTIEF Group – overview HOCHTIEF Group FY FY Δ Q4 Q4 Δ HOCHTIEF Group FY FY Δ Q4 Q4 Δ 2023 2022 FY 2023 2022 Q4 2023 2022 FY 2023 2022 Q4 (EUR million) (EUR million) Orders (nominal) P&L-key figures (operational) New orders 36,676.9 30,066.6 22.0% 8,832.9 9,192.0 -3.9% Profit before tax (operation

  21. Slide 21: Group – Statement of earnings

    HOCHTIEF Group – Statement of earnings • Sales: +6% yoy (fx-adjusted +11%); 97% of sales HOCHTIEF Group FY FY ∆% are international (EUR million) 2023 2022 FY • Materials, personnel costs and other operating Sales 27,756.0 26,219.3 5.9% income/expenses: Development broadly in line with Change in inve

  22. Slide 22: Group – Balance sheet (assets)

    HOCHTIEF Group – Balance sheet (assets) Non-current assets: HOCHTIEF Group FY FY Δ • Equity-method investments: Net increase due (EUR million) 2023 2022 FY to planned capital increase at Abertis HoldCo Assets 19,006.2 18,299.7 706.5 (EUR 260m) partly offset by fx, dividends Non-current assets 5,661.

  23. Slide 23: Group – Balance sheet (liabilities and equity)

    HOCHTIEF Group – Balance sheet (liabilities and equity) Shareholders’ equity: HOCHTIEF Group FY FY Δ Changes in 2023 (EUR million) 2023 2022 FY • Profit after taxes: EUR 544m Liabilities and shareholders’ equity 19,006.2 18,299.7 706.5 • Fx-effects: EUR -28m • Dividends: EUR -383m Shareholders' equi

  24. Slide 24: Group – Statement of cash flows (statutory)

    HOCHTIEF Group – Statement of cash flows (statutory) HOCHTIEF Group FY FY ∆ Q4 Q4 ∆ 2023 2022 FY 2023 2022 Q4 (EUR million) Profit after tax / PAT 544.0 515.0 29.0 146.8 143.7 3.1 Depreciation, amortization, impairments and impairment reversals 289.8 344.0 -54.2 94.0 97.7 -3.7 Changes in provisions

  25. Slide 25: Group financing structure FY 2023

    HOCHTIEF Group financing structure FY 2023 Net cash / Net debt calculation: end FY 2023 end FY 2022 • Strong liquidity position of EUR 5.8bn per end FY 2023 period end (EUR m) (cash, cash equivalents and marketable securities) Cash and cash equivalents 5,150 4,806 Marketable securties (incl. those h

  26. Slide 26: Group order backlog risk profile

    HOCHTIEF Group order backlog risk profile Order backlog by contract type – development 2017 vs. 2023, in EUR bn 55.3  HOCHTIEF has reduced the risk profile of its order book 56.0 substantially over the last five years 44.6 46.0 • The amount of Construction Management, Services and Construction- Con

  27. Slide 27: Americas

    HOCHTIEF Americas ©RICK RADELL Bow River Bridge, Calgary, Canada 27

  28. Slide 28: HOCHTIEF Americas Segmental overview

    HOCHTIEF Americas Segmental overview Construction Management: Order backlog FY 2023 • Turner #1 US building construction management company, Market leader in general building, health care, commercial offices, telecommunications and data centers 2% 4% 2% Healthcare Data Center segments1) 6% 20% Comme

  29. Slide 29: Asia Pacific

    HOCHTIEF Asia Pacific ©SydneyMetro-RustyGoatMedia Sydney Metro, Sydney, NSW, Australia 29

  30. Slide 30: HOCHTIEF Asia Pacific

    HOCHTIEF Asia Pacific Results: Financials • Reflects HOCHTIEF’s shareholding in CIMIC (100% since (EUR million) FY FY FY Q4 Q4 Q4 June 2022) as well as financing and holding company costs, 2023 2022 change yoy 2023 2022 change yoy Total sales / divisional sales 8,099.6 7,299.6 11.0% 2,207.5 2,007.4

  31. Slide 31: Asia Pacific – CIMIC Order backlog breakdown FY 2023

    HOCHTIEF Asia Pacific – CIMIC Order backlog (AUD 31.7bn) breakdown FY 2023 By segment: By market: 16% 13% Construction 52% Services Domestic JV Investments 32% International 87% 31

  32. Slide 32: Australian major transport infrastructure projects – market opportunities

    Australian major transport infrastructure projects – market opportunities (AUDbn) 32

  33. Slide 33: Europe

    HOCHTIEF Europe © HOCHTIEF I/D Cologne (Hangar), Cologne, Germany 33

  34. Slide 34: General market overview PPP

    General market overview PPP • Australia: the coalition of governments continue to support the National PPP Policy Framework which established that projects valued over AUD 50m should be considered for PPP procurement • Germany: government program of 11 PPP roads (one to two A-Model projects per year

  35. Slide 35: Abertis Investment

    Abertis Investment © Abertis © Miquel Gonzalez/Abertis Red de Carreteras de Occidente (RCO), Mexico 35

  36. Slide 36: Abertis – SH-288 acquisition (October 2023)

    Abertis – SH-288 acquisition (October 2023) • Abertis has agreed to buy a 56.76% stake in the Blueridge Transportation Group (BTG) operating the SH-288 in Houston until March 2068 (45 years) for USD 1.53bn from ACS Group (closing expected before year- end) • The SH-288 concession is a high-quality t

  37. Slide 37: Abertis – Puerto Rico acquisition (October 2023)

    Abertis – Puerto Rico acquisition (October 2023) • Abertis has been awarded the concession right to operate PR-20, PR-52, PR-53 and PR-66 in Puerto Rico for a period of 40 years (expiry 2063) after a competitive privatization process for USD 2.85bn (closing expected before year-end) • 192km of toll

  38. Slide 38: FX rates

    FX rates End of period: Q1 H1 9M FY March March Change June 30, June 30, Change Sept. 30, Sept. 30, Change Dec. 31, Dec. 31, Change 31, 2023 31, 2022 (%) 2023 2022 (%) 2023 2022 (%) 2023 2022 (%) EUR/USD 1.09 1.11 -2% EUR/USD 1.09 1.04 5% EUR/USD 1.06 0.97 9% EUR/USD 1.11 1.07 4% USD/EUR 0.92 0.90 2

  39. Slide 39: Appendix: HOCHTIEF Group overview

    Appendix: HOCHTIEF Group overview ©Sedgman Eskay Creek Revitalization, BC, Canada 39

  40. Slide 40: The HOCHTIEF Group

    The HOCHTIEF Group • HOCHTIEF is an engineering-led global infrastructure solutions provider with leading positions in North America, Australia and Europe and a rapidly expanding presence in high-tech, energy transition and sustainable infrastructure markets. • Founded in 1873 • Ranked #2 in ENR Top

  41. Slide 41: Leading positions in developed markets – FY 2023

    HOCHTIEF, leading positions in developed markets – FY 2023 ©BigAcorn-Studios ©UdoGoerisch ©Abertis © UGL HOCHTIEF Americas HOCHTIEF Asia Pacific HOCHTIEF Europe Abertis Infraestructuras Largest US building construction Leading position in Australian Leading German-based contractor 20% equity investm

  42. Slide 42: Disclaimer

    Disclaimer This presentation and the report contain forward-looking statements. These statements reflect the current views, expectations and assumptions of the Executive Board of HOCHTIEF Aktiengesellschaft and are based on information currently available to the Executive Board. Such statements invo

  43. Slide 43: Investor Relations contacts and calendar

    Investor Relations contacts and calendar 25 April 2024 Annual General Meeting May 2024 First quarter results 2024 24 July 2024 Half-year results 2024 For further information please contact: Investor Relations HOCHTIEF Aktiengesellschaft Alfredstr. 236 45133 Essen, Germany Phone: +49 201 824 1870 Fax

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