Koninklijke Heijmans N.v. · EURONEXT:HEIJM
Koninklijke Heijmans — Corporate Update (June 2006)
31 slides from Koninklijke Heijmans's corporate update, Jun 19, 2006
Slide 1: 19-6-2006
19-6-2006 1
Slide 2: Strategy and update Heijmans
Strategy and update Heijmans Dick van der Kroft, CFO
Slide 3: Strategy and update Heijmans
Strategy and update Heijmans Guus Hoefsloot, CEO
Slide 4: Disclaimer
Disclaimer • This presentation contains forward- looking statements. By their nature these involve risk and uncertainty. Forward- looking statements represent the company’s judgement regarding future events, and are based on currently available information. Consequently the company cannot guarantee
Slide 5: Construction output in the Netherlands is growing
Construction output in the Netherlands is growing % 6 Forecast Construction output 2006 3.5% 4 2 0 -2 -4 -6 2003 q2 2003 2004 q2 2004 2005 q2 2005 2006 f 19-6-2006 Source EIB/CBS 5
Slide 6: Spreading activities reduces risk profile and increases margins
Spreading activities reduces risk profile and increases margins property international international 8% property 19% development production 27% 1% development 40% production 2% infra- structure 26% infra- structure 25% building 27% building 25% Revenues 2005 Profit after tax 2005 € 2,835 million € 8
Slide 7: Full service strategy by organic growth and acquisitions
Full service strategy by organic growth and acquisitions Engineering services Property Building Infrastructure Service and maintenance Consulting/ design > (Risky) development > Completion > Maintenance > Exploitation/ management Examples: Design and construct Highway A2 Eindhoven € 294 million Fram
Slide 8: Results 2005
Results 2005 2005 Property Building Infra International Group In € millions Revenues 889 889 776 545 2,835 Operating 66 30 34 13 129 profit* Profit after tax 37 23 24 7 87 Profitmargin 4.1% 2.6% 3.1% 1.4% 3.1% Orderbook 798 1,031 588 433 2,559 * Including non- recurring items 19-6-2006 8
Slide 9: Forecast 2006; development in operating profit compared to previous year
Forecast 2006; development in operating profit compared to the previous year (excluding non- recurring items) In € millions 2006 forecast 2005 Property + 66 Building ≈ 30 Infra - 34 International + 13 Group + 118 19-6-2006 9
Slide 10: Property: decrease in (commercial) real estate
Property: decrease in (commercial) real estate • Tendency for increase in demand for office space • Heijmans has up to date announced sales of 5,400 m² and leases of 15,500 m² m² End of May 2005 2004 2006 Unsold 45,000 51,400 57,300 Of which let 30,000 15,000 11,400 Unlet 15,000 36,400 45,900 19-6-2
Slide 11: Property: Dynamics of the Dutch owner occupied housing market
Property: Dynamics of the Dutch owner occupied housing market • Shortage of approximately 170,000 houses • Government plans for catching up on shortage: 450,000 houses in the next 5 years • Mortgage interest 100% tax deductible • Lack of private investors in the housing market results in low volatil
Slide 12: Property: Increasing market share
Property: Increasing market share 4500 80000 • Heijmans sales forcast 4000 70000 to approx 4,000 in 2006 3500 60000 • Price increase first quarter + 0.7% 3000 compared to the end of 2005 50000 (source:NVM) 2500 40000 2000 30000 1500 20000 1000 500 10000 0 0 2001 2002 2003 2004 2005 2006 f sale Heijm
Slide 13: Property: Development potential is source of growth
Property: Development potential is source of growth Heijmans’ potential 46,000 houses Housing requirements in Dutch cities 350,000 houses Fewer than 10,000 Land position 10,000 to 20,000 Development claim 20,000 to 30,000 from land position 30,000 or more 19-6-2006 13
Slide 14: Property: Development potential is source of growth
Property: Development potential is source of growth • Total potential 46,000 houses • At least 50% realisation before 2010 • Potential for commercial real estate 675,000 m² (35% realisation before 2010) 19-6-2006 14
Slide 15: Tailor housing at De Landen Pijnacker
Tailor housing® at De Landen Pijnacker • 59 houses • 2 and 3 semi-detached houses • Terrace houses from € 250,000 • Corner houses € 300.000 19-6-2006 15
Slide 16: Katwijk – 2nd phase Harbour Area
Katwijk – 2nd phase Harbour Area • Transformation of harbour area to a high quality housing estate. • Renovation of various historical and attractive buildings. • Proper-Stok as coordinating developer • Approx. 400 houses and apartments • Approx. 450 parking spaces • 18 Boat houses • Day-care centre
Slide 17: Area development Zwijndrecht
Area development Zwijndrecht 19-6-2006 17
Slide 18: Building: Operational excellence and full service
Building: Increasing market- volumes at modest price- improvements. Market remains competitive. 2005 50% 40% 30% 20% 10% residential 54% 0% non residential private 17% negotiated work public tender property non residential public 18% development buildingservices 11% revenues orderbook Operational ex
Slide 19: Technical facility management Schiphol Airport
Technical facility management Schiphol Airport 19-6-2006 19
Slide 20: Technical facility management Schiphol Airport
Technical facility management Schiphol Airport • Long-term maintenance of terminals, piers, electronic and mechanical engineering installations, and fire protection • In joint venture with M&E provider • Minimalisation of risks and inconvenience to passengers and air traffic 19-6-2006 20
Slide 21: Oegstgeest, Care-appartements Rustenborch
Oegstgeest, Care- appartements Rustenborch - € 23 mln contract - Planned transformation to starter homes - 223 sale- and lease - Including sublevel parking garage appartments 19-6-2006 21
Slide 22: Infra: growth in market volume and modest price improvements
Infra: growth in market volume and modest price improvements • Selective contracting policy is maintained • Large tenders in 2006 for subsequent completion • Large D&C contract € 294 million A2 Eindhoven starts end of 2006 2005 central government 17% local government 34% companies 32% one on one 25%
Slide 23: Infra: managing for profitability
Infra: managing for profitability road construction 44% engineering 3% 2005 concrete construction 19% environmental 4% sports&cultural technique traffic- and special techniques 10% technical infra 11% industrial services 6% Large projects Regular infrastructure Tender costs Strong asphalt position N
Slide 24: Infrastructure: total development industrial sites
Infrastructure: total development industrial sites Borchwerf Roosendaal • Contract sum to make ready for construction and housing € 45 million • PPS contract • Size of project 140 hectares • Development of industrial site 19-6-2006 24
Slide 25: Heitkamp Rail, integration on track
Heitkamp Rail, integration on track Airport connection Birgltunnel: ICE-Halle: Cologne/Bonn • Construction of 2- • New station Dortmund- • Connection between way high speed line Spähenfelde airport and existing • Length 3 km HSL, total 15 km railway • 5.5 km tunnel 19-6-2006 25
Slide 26: Sufficient room for strategic investments
Sufficient room for strategic investments • Operational cash flow € 109 600 million in 2005 500 • Return on average invested 400 capital from 11.1% to 14.5% 300 • Net debt from € 515 million to € 403 million 200 100 0 2004 2005 shareholder's equity net debt 19-6-2006 26
Slide 27: Strategic objectives for 2008 within reach
Strategic objectives for 2008 within reach Actual 2003* Actual 2005 Objective 2008 ROI 10.8% 14.5% 18% ROS 2.3% 2.8% 3% Upstream 25% ≈35% 35% Downstream 5% <10% 20% 2003 based on Dutch GAAP: ROI = EBIT:average invested capital 19-6-2006 27
Slide 28: Good prospects for Heijmans’ markets
Good prospects for Heijmans’ markets • The Netherlands: growth 2006 in all segments (3.5%) • Sound development in residential market • Volume and modest price- improvements in building and infra • Belgium: growth in all segments (4.2%) in 2006 • Germany: possible growth in roadbuilding and rail. • U
Slide 29: Forecast 2006
Forecast 2006 • Based on present orderbook and market situation Heijmans expects an increase in operating profit excluding non- recurring items • And net profit to come out at € 87 million including an exceptional gain on the upcomming sale of Vebo • Resulting in € 3.62 profit per share • Proposal t
Slide 30: Contact details
Contact details •Guus Hoefsloot • Fons van Lith •Chief Executive Officer Heijmans NV • Investor Relations Heijmans NV •Graafsebaan 13 • Graafsebaan 13 •5248 JR Rosmalen • 5248 JR Rosmalen •+31 73 543 52 18 • +31 73 543 52 32 • +31 6 51 31 49 52 • flith@heijmans.nl 19-6-2006 30
Slide 31: Contact details
Contact details • Dick van der Kroft • Fons van Lith • Chief Financial Officer Heijmans NV • Investor Relations Heijmans NV • Graafsebaan 13 • Graafsebaan 13 • 5248 JR Rosmalen • 5248 JR Rosmalen • +31 73 543 53 21 • +31 73 543 52 32 • +31 6 51 31 49 52 • flith@heijmans.nl 19-6-2006 31