Hochtief Aktiengesellschaft · XETR:HOT

Hochtief Aktiengesellschaft — Hochtief — Q3 2023 Earnings Presentation

44 slides from Hochtief Aktiengesellschaft's earnings presentation, Nov 7, 2023

  1. Slide 1: Investor Relations Company Presentation 9M 2023 results

    Investor Relations Company Presentation 9M 2023 results – November 7, 2023 © HOCHTIEF 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 11  Asia Pacific 12  Europe 13  Abertis 14  Corporate strategy 16  Capital allocation and Guidance 18  ESG 19 © HOCHTIEF © HOCHTIEF Appendix  Group financials overview 21 

  3. Slide 3: HOCHTIEF Group – 9M 2023 overview

    Op. net profit Nom. net profit HOCHTIEF Group – 9M 2023 overview EURm 500.0 +6% +7% 381 403 381 400.0 355 300.0 Operational net profit EUR 403m, +6% yoy; nominal net profit EUR 381m, +7% 200.0 100.0  Solid performance with sales up 11% yoy fx-adj. at EUR 20.4bn, driven by all divisions 0.0 9M 2022

  4. Slide 4: HOCHTIEF Group – 9M 2023 key figures

    HOCHTIEF Group – 9M 2023 key figures 9M 9M Δ 9M Δ 9M Q3 Q3 Δ Q3 LTM FY 2023 2022 in % in EURm 2023 2022 in % 9M 2023 2022 (EUR million) Sales 20,361.9 19,123.6 6.5% 1,238.3 7,346.3 7,179.2 2.3% 27,457.6 26,219.3 Operational profit before tax/PBT 571.7 546.1 4.7% 25.6 179.5 178.4 0.6% 758.7 733.1 Ope

  5. Slide 5: HOCHTIEF Group – P&L

    HOCHTIEF Group – P&L • Strong sales performance with an increase of 7% yoy (+11% fx-adj.), driven by all divisions • Robust EBITDA and EBIT margins of 4.5% and 3.3% +7% • Net financial costs 9M increasing yoy due to higher rates environment and fx-effects +11% fx-adj. • Operational net profit up 6%

  6. Slide 6: HOCHTIEF Group – Cash flow performance

    HOCHTIEF Group – Cash flow performance* • Very strong Q3 2023 cash flow from operating activities pre-factoring* of EUR 194m, up EUR 135m yoy  Strong 9M 2023 cash flow* of 208m up EUR 87m yoy  This reflects characteristic seasonality and strong sales growth +135m  Adjusting for seasonality, cash

  7. Slide 7: HOCHTIEF Group – Net cash development

    HOCHTIEF Group – Net cash development • HOCHTIEF ended 9M 2023 with a net debt position of EUR 68m, which is up by EUR 158m yoy, or up EUR 478m on an underlying basis. This is driven by a strong 9M 2023 free cash flow pre-factoring* of EUR 918. Non-underlying effects are:  HOCHTIEF’s dividend payme

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

    HOCHTIEF Group – Order backlog and new orders • HOCHTIEF Group  Very strong new orders of EUR 27.8bn in 9M 2023, up almost EUR 7bn yoy (+39% fx-adj); 1.2x work done LTM  Expansion driven by strategic focus on high-growth markets, which accounted for over 50% of new orders  The vast majority of ne

  9. Slide 9: Selected recent significant project announcements

    HOCHTIEF Group – Selected recent significant project announcements Green Line Light Rail Transit Data Center, HOCHTIEF Fast-charging networks Institute for Federal Real Defence Department’s Woomera project, Flatiron (09/2023) JV, (09/2023) as part of a for electric cars, Estate, HOCHTIEF (06/2023) r

  10. Slide 10: Investment in a fast-charging network for electric vehicles

    HOCHTIEF Group – Investment in a fast-charging network for electric vehicles (Deutschlandnetz, September 2023, HOCHTIEF Europe) • HOCHTIEF and its JV partner EWE Go, a mobility company owned by utility company EWE, have been awarded with a contract to finance, plan, build and operate a fast-charging

  11. Slide 11: Americas – 9M 2023 results

    HOCHTIEF Americas – 9M 2023 results Essentials Financials (EUR million) 9M 9M 9M Q3 Q3 Q3 FY Results / Cash 2023 2022 change yoy 2023 2022 change yoy 2022 Total sales / divisional sales 13,352.3 12,790.0 4.4% 4,838.3 4,849.2 -0.2% 17,460.0 • Solid sales growth of 7% fx-adjusted (in both 9M and Q3 20

  12. Slide 12: Asia Pacific, CIMIC (in AUD) – 9M 2023 results

    HOCHTIEF Asia Pacific, CIMIC (in AUD) – 9M 2023 results Essentials Financials Results / Cash (AUD m) Revenue 9M 2023 9,637.6 9M 2022 7,975.1 Δ% 20.8% • Revenue up 20.8% to AUD 9.6bn reflecting a strong order EBITDA 748.6 718.1 4.2% EBITDA margin 7.8% 9.0% -1.2pp book across all segments D&A -214.7 -

  13. Slide 13: Europe – 9M 2023 results

    HOCHTIEF Europe – 9M 2023 results Essentials Financials (EUR million) 9M 9M 9M Q3 Q3 Q3 FY Results / Cash 2023 2022 change yoy 2023 2022 change yoy 2022 Total sales / divisional sales 1,001.4 926.6 8.1% 339.1 322.8 5.0% 1,270.8 • Sales of EUR 1bn increased by 8% yoy Operational profit before tax/PBT

  14. Slide 14: Abertis – 9M 2023 results

    Abertis – 9M 2023 results Essentials Abertis – Key figures (100%) • Average daily traffic (ADT) up +3% yoy: France (total ADT (EUR million) 9M 9M 9M change Q3 Q3 Q3 change FY 2023 2022 2023 2022 2022 +3%), Spain (+1%), Italy (+4%), Brazil (+4%), Chile (-3%), yoy yoy Mexico (+3%) and USA (+4%) Operat

  15. Slide 15: Abertis – Update on shareholder agreement, strategy and capital increase

    Abertis – Update on shareholder agreement, strategy and capital increase • In July 2023, HOCHTIEF/ACS and Mundys (formerly Atlantia) reached a new strategic collaboration agreement for Abertis with the objective of strengthening Abertis‘ global leadership in transport infrastructure concessions • Al

  16. Slide 16: 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

  17. Slide 17: 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

  18. Slide 18: HOCHTIEF Group – Capital allocation & Guidance

    HOCHTIEF Group – Capital allocation & Guidance Op. net profit guidance 2023 (EURm) Capital allocation  Shareholder remuneration  FY 2022 dividend of EUR 4.00/share approved at AGM 510-550 and paid in Q3, unchanged 65% payout ratio (EUR 300m) 522  Shareholder remuneration remains a priority  Acti

  19. Slide 19: HOCHTIEF Group – Accelerating ESG drive

    HOCHTIEF Group – Accelerating ESG drive • Significant progress in implementation of ambitious Sustainability Plan 2025 (60+ commitments / goals) • HOCHTIEF received the highest sustainability score worldwide in the "Construction & Engineering" sector of the Dow Jones Sustainability World Index (DJSI

  20. Slide 20: Appendix: 9M 2023

    Appendix: 9M 2023 © CPBContractors M80, Sydney to Edgars, Australia 20

  21. Slide 21: HOCHTIEF Group – overview

    HOCHTIEF Group – overview HOCHTIEF Group 9M 9M Δ Q3 Q3 Δ FY HOCHTIEF Group 9M 9M Δ Q3 Q3 Δ FY 2023 2022 9M 2023 2022 Q3 2022 2023 2022 9M 2023 2022 Q3 2022 (EUR million) (EUR million) Orders (nominal) P&L-key figures (operational) New orders 27,844.0 20,874.6 33.4% 9,766.6 6,476.3 50.8% 30,066.6 Pro

  22. Slide 22: HOCHTIEF Group – Statement of earnings

    HOCHTIEF Group – Statement of earnings • Sales: +7% yoy (fx-adjusted +11%); 97% of sales are HOCHTIEF Group 9M 9M ∆% FY international (EUR million) 2023 2022 9M 2022 • Materials, personnel costs and other operating Sales 20,361.9 19,123.6 6.5% 26,219.3 income/expenses: growing at a similar rate to s

  23. Slide 23: HOCHTIEF Group – Balance sheet (assets)

    HOCHTIEF Group – Balance sheet (assets) Non-current assets: HOCHTIEF Group 9M FY Δ • Other financial assets: Reclassification of the Ventia 2023 2022 FY investment to assets held for sale after expiration of post (EUR million) IPO escrow period and sale of 25% of Ventia shares by Assets 18,710.0 18,

  24. Slide 24: HOCHTIEF Group – Balance sheet (liabilities and equity)

    HOCHTIEF Group – Balance sheet (liabilities and equity) Shareholders’ equity: HOCHTIEF Group 9M FY Δ Changes in 9M 2023 2023 2022 FY (EUR million) • Profit after taxes: EUR 397m • Fx-effects: EUR 79m Liabilities and shareholders’ equity 18,710.0 18,299.7 410.3 • Dividends: EUR -346m Shareholders' eq

  25. Slide 25: HOCHTIEF Group – Statement of cash flows (statutory)

    HOCHTIEF Group – Statement of cash flows (statutory) HOCHTIEF Group 9M 9M ∆ Q3 Q3 ∆ FY 2023 2022 9M 2023 2022 Q3 2022 (EUR million) Profit after tax / PAT 397.2 371.3 25.9 126.7 119.7 7.0 515.0 Depreciation, amortization, impairments and impairment reversals 195.8 246.3 -50.5 72.6 93.7 -21.1 344.0 C

  26. Slide 26: HOCHTIEF Group financing structure 9M 2023

    HOCHTIEF Group financing structure 9M 2023 Net cash / Net debt calculation: end 9M 2023 end 9M 2022 end FY 2022 • Strong liquidity position of EUR 5.0bn per end 9M 2023 period end (EUR m) (cash, cash equivalents and marketable securities) Cash and cash equivalents 4,276 4,419 4,806 Marketable securt

  27. Slide 27: HOCHTIEF Group order backlog risk profile

    HOCHTIEF Group order backlog risk profile Order backlog by contract type – development 2017 vs. 2023, in EUR bn 56.1  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

  28. Slide 28: Americas

    HOCHTIEF Americas © Connie Zhou The Assembly, Pittsburgh, PA, USA 28

  29. Slide 29: HOCHTIEF Americas Segmental overview

    HOCHTIEF Americas Segmental overview Construction Management: Order backlog HY 2023 • Turner #1 US building construction management company, Market Leader in General Building, Education, Health Care, Commercial Offices and Entertainment / Healthcare 5% 5% Casinos segments1) 5% 20% Commercial/Retail

  30. Slide 30: Asia Pacific

    HOCHTIEF Asia Pacific ©CIMIC Intelligent Earthworks 30

  31. Slide 31: HOCHTIEF Asia Pacific

    HOCHTIEF Asia Pacific Results: Financials • Reflects HOCHTIEF’s shareholding in CIMIC (100% since (EUR million) 9M 9M 9M Q3 Q3 Q3 FY 2023 2022 change yoy 2023 2022 change yoy 2022 June 2022) as well as financing and holding company costs, Total sales / divisional sales 5,892.1 5,292.2 11.3% 2,129.0

  32. Slide 32: Asia Pacific – CIMIC Order backlog (AUD 30.8bn) breakdown HY 2023

    HOCHTIEF Asia Pacific – CIMIC Order backlog (AUD 30.8bn) breakdown HY 2023 By segment: By market: 16% 14% Construction 52% Services Domestic JV Investments 32% International 86% 32

  33. Slide 33: Australian major transport infrastructure projects – market opportunities

    Australian major transport infrastructure projects – market opportunities (AUDbn) 33

  34. Slide 34: Europe

    HOCHTIEF Europe © HOCHTIEF Landeslabor Berlin-Brandenburg, Berlin, Germany 34

  35. Slide 35: 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

  36. Slide 36: Abertis Investment

    Abertis Investment © Abertis © Miquel Gonzalez/Abertis Red de Carreteras de Occidente (RCO), Mexico 36

  37. Slide 37: 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

  38. Slide 38: 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

  39. Slide 39: FX rates

    FX rates End of period: Q1 H1 9M March March Change June 30, June 30, Change Sept. 30, Sept. 30, Change 31, 2023 31, 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% USD/EUR 0.92 0.90 2% USD/EUR 0.92 0.96 -4% USD/EUR 0.94 1.03 -8% EUR/AUD 1.63 1.48

  40. Slide 40: Appendix: HOCHTIEF Group overview

    Appendix: HOCHTIEF Group overview © Flatiron I-105 Project Area, California, USA 40

  41. Slide 41: The HOCHTIEF Group

    The HOCHTIEF Group • HOCHTIEF is an engineering-led global infrastructure group with leading positions across its core activities of construction, services and concessions/public-private partnerships (PPP) focused on North America, Australia and Europe. • Founded in 1873 • Ranked #2 in ENR Top 250 I

  42. Slide 42: Leading positions in developed markets – FY 2022

    HOCHTIEF, leading positions in developed markets – FY 2022 ©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

  43. Slide 43: 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

  44. Slide 44: Investor Relations contacts

    Investor Relations contacts For further information please contact: Investor Relations HOCHTIEF Aktiengesellschaft Alfredstr. 236 45133 Essen, Germany Phone: +49 201 824 1870 Fax: +49 201 824 9 1870 investor-relations@hochtief.de Mike Pinkney Tobias Loskamp Nadine Wärmer Martina Horst 44

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