OUR BUSINESS OUR QUARTER

Transcription

1 Investor Relations Company Presentation results, November 7, OUR BUSINESS OUR QUARTER ONE, Frankfurt CA Immo HOCHTIEF Marcelino Fernández Verdes, CEO Peter Sassenfeld, CFO Mike Pinkney, Head of Corporate Strategy Tobias Loskamp, Head of Capital Markets Strategy 1

2 Table of contents Highlights 3 Cash flow 5 Net cash 6 Recent project awards 7 Order book 8 Asia Pacific 9 Americas 10 Europe 11 Guidance 12 Appendices H1 Group overview & one-offs 14 P&L 15 Balance sheet Capital structure 19 Asia Pacific 21+ Americas 25+ Europe 28+ PPP 30 Real Estate 31 f/x rates 32 Appendices others 33 Domink Reipka Flatiron Turner Construction Company Thiess 2

3 (EURm) (EURbn) (EURm) (EURm) (EURm) HOCHTIEF Group Highlights Nominal net profit +33% yoy to EUR 403m, operational +15% yoy to EUR 369m Op. PBT +12% yoy to EUR 703m in - solid growth at all divisions Sales of EUR 17.4bn, +12% yoy fx-adjusted, +5% nominal Op. net profit and PBT exclude Abertis equity consolidated earnings of EUR 58m Net cash from op. activities +12% yoy to EUR 519m Solid growth in cash-backed profits and improving working capital trend (LTM EUR 283m cash-in) Free cash flow from ops. stable at a high level of over EUR 1.1bn LTM +33% Net profit nominal % +15% 519 '17 '18 Net cash from op. activities 369 Net profit operational Group net cash of EUR 1.3bn, EUR +782m yoy All divisions achieved higher net cash levels qoq and yoy Post Abertis closing in October Group net cash position would stand at over EUR 800m pro-forma +782 Order backlog of EUR 45.3bn, +8% yoy fx-adjusted (+6% nominal) EUR 28.2bn in new orders LTM, +11% fx-adjusted yoy (+4% nominal) Strong visibility with order backlog equivalent to 22 months of work done LTM Fx-adj. +11% Fx-adj. +8% Guidance confirmed: op. net profit FY of EUR m (+4-15% yoy) Strong tender pipeline in our core markets: USA, Canada, Asia Pacific and Europe of around EUR 500bn for and beyond; PPP project pipeline of over EUR 210bn Abertis transaction completed in October; EUR 1.4bn HOCHTIEF investment (EUR 0.9bn cap. increase, EUR 0.5bn fin. resources) for 20% stake in the leading intl. toll road operator HOCHTIEF dividend payout ratio to increase from 50% to 65% of nominal net profit from fiscal year LTM New Orders % Operational net profit Backlog FY FY 3

4 HOCHTIEF Group key figures (EUR million) Δ in % Δ in EURm Δ in % Δ in EURm FY Sales 17, , % , , % ,631.0 Operational profit before tax/pbt % % Operational PBT margin in % Operational net profit % % Operational earnings per share (EUR) % % EBITDA 1, % % ,320.8 EBITDA margin in % EBIT % % EBIT margin in % Profit before tax / PBT % % Tax rate (taxes / PBT in %) Net profit % % Earnings per share (EUR) % % Net cash from operating activities % % ,372.1 Net operating capital expenditure % % Free cash flow from operations % % ,120.3 Net cash / net debt 1, % , % ,265.8 New orders 19, , % -2, , , % -1, ,443.5 New orders LTM 28, , % , , % ,443.5 Work done 18, , % , , % ,518.4 Order backlog 45, , % 2, , , % 2, ,644.2 Employees (end of period) % % EBITDA and EBIT restated Operational profits are adjusted for one-off items Figures not fx-adjusted 4

5 HOCHTIEF Group - Cash Flow performance Cash Flow components HOCHTIEF Group (EUR million) D D LTM FY Net cash from operating activities pre NWC change , ,038.9 NWC change Net cash from operating activities , ,372.1 Gross operating capital expenditure Operating assets disposals Net operating capital expenditure Free cash flow from operations , ,120.3 Group net cash from operating activities of EUR 519m in, a yoy improvement of EUR 56m, driven by strong growth in cash-backed profits and improving trend in working capital ( EUR +41m yoy) LTM net cash from operating activities at EUR 1.43bn; EBITDA-cash conversion rate of 105% LTM remained at a very high level Net op. capex increased yoy based on higher level of mining and tunneling work in at CIMIC and lower equipment disposals yoy Free cash flow from operations at a stable high level of over EUR 1.1bn LTM 5

6 HOCHTIEF Group Strong net cash development EUR 1.29bn net cash position per end-, a yoy improvement of EUR 782m Adjusting for dividend payments, increase of net cash position would be Yoy EUR m (EUR 295m dividend payments LTM), Qoq EUR +197m (dividend payments EUR 259m) All divisions show improvement in the net cash position, qoq and yoy Post Abertis closing in October, Group net cash position would stand at over EUR 800m pro-forma S&P reaffirmed HOCHTIEF s BBB rating in May, after completion of public takeover of Abertis, outlook upgraded to stable period end (EUR million) Net cash (+) / net debt (-) D yoy D qoq H1 Q1 FY FY 2016 Key drivers of net cash (+) / net debt (-) yoy FY 2015 HOCHTIEF Group 1, , , HOCHTIEF Americas 1, , HOCHTIEF Asia Pacific HOCHTIEF Europe HQ / consolid EURm

7 HOCHTIEF Group Selected Recent Significant Project Announcements Headquarters for California Department of Natural Resources, USD 520 m, Turner (03/) JV, designbuild a 20-story office tower in Sacramento, USA The Spiral, Turner (06/) 65-story commercial high-rise building, New York, USA Metro Copenhagen, EUR 460 m, HOCHTIEF (03/) JV, design and build project for dual 4.4-km tunnels with five underground stations, Denmark Motorway Access Road, HOCHTIEF Infrastructure (09/) JV, Hamburg, Germany Building Project, AUD 110 m, Leighton Asia (10/), 38 story tower with 736 studio apartments, hotel in Noida, India North South Transportation Corridor project, AUD 540 m, Leighton Asia (05/) JV, tunnel and transport infrastructure works in Singapore California Market Center, Turner (08/), three 13- story buildings, parking levels, Los Angeles, USA Mining Infrastructure Works, AUD 260 m, CPB Contractors (06/) in Western Australia s Pilbara Region PPP Rail project at LAX Airport, HOCHTIEF PPPS/Flatiron, USD 4.6 bn (01/) JV, planning, financing, construction, 30-year operation of an automated people mover Convention Center District Plan (2nd phase), USD 690 m, Turner (09/) JV, Las Vegas, USA Cincinnati Major League Soccer Stadium, USD 200 m, Turner (07/) design and construction, USA Ronald Reagan Washington National Airport, USD 374 m, Turner (05/) construction of new concourse, USA Hospital Bed Tower Project, Turner (09/), Hackensack, New Jersey, USA Centinela Extension, AUD 420m, Thiess (09/), mining services, Chile Power Contract, AUD 180m, UGL (10/) design, build, commission high voltage substations and transmission lines, South Australia Boikarabelo Coal Handling and Preparation Plant, USD 310 m, Sedgman (08/), design, engineering procurement, construction, operations and maintenance, South Africa Rocky s Reward Nickel Mine, AUD 225 m, Thiess (06/) mining services at Leinster/Kalgoorlie, Western Australia Mount Arthur Coal Operation, AUD 1.2 bn, Thiess (10/) Hunter Valley, Australia Metro Tunnel Works, AUD 1 bn, CPB Contractors (07/) JV, design and construction as part of Rail System Alliance in Melbourne NZ Prison PPP, NZD 750 m (CIM share), Pacific Partnerships & CPB Contractors (06/) JV, design, construction, financing, managing in Waikeria 7

8 HOCHTIEF Group New orders and Order backlog New orders (EUR bn) Order backlog (EUR bn) % of total Fx-adjusted +11% * Fx-adjusted + 8% % 8% 48% % LTM LTM PPP project pipeline of over EUR 210bn FY Q1 H1 HOCHTIEF Group: Order backlog at EUR 45.3bn, +8% yoy fx-adjusted (nom. +6%), qoq stable fx-adjusted, equivalent to 22 months of LTM work done New orders LTM EUR 28.2bn, +11% yoy fx-adj. (nom. +4%), 1.1x work done disciplined bidding approach maintained across the group. Stable new orders development of EUR 6.3bn in - in line with Q1 (EUR 6.8bn) & Q2 (EUR 6.1bn) HT Americas: strong new orders at EUR 10.9bn, +20% yoy fx-adj. (nom. +13%), with strong growth at both Turner and Flatiron, backlog visibility 19 months Asia Pacific: CIMIC s Order backlog with consistently high visibility (25 months). New orders qoq stable, EUR 10.0bn LTM HT Europe: Order backlog stable at EUR 3.6bn, 24 months visibility. New orders of EUR 1.2bn in, prior-year period bolstered by large infrastructure project win Zuidasdok, NL (EUR 421m) Strong pipeline of projects to be tendered and / or awarded in key markets identified in total around EUR 500bn: Asia Pacific (54% of total): CIMIC: AUD 35bn in remainder of, and around AUD 375bn in Americas (32%): Turner: USD 8bn in, USD 90bn beyond that; Flatiron: USD 9bn in, USD 70bn Europe (14%): EUR 5bn in, about EUR 70bn in total * New orders excl. f/x-effects within CIMIC backlog 8

9 HOCHTIEF Asia Pacific, CIMIC (in AUD) results Results / Cash Essentials Net profit after tax (NPAT) of AUD 564m (up 13% yoy) Revenue of AUD 10.7bn (up 11% yoy) with all Operating Companies contributing to growth Stable EBIT, PBT and NPAT margins of 7.7%, 7.2% and 5.3% respectively Cash generation consistently strong, with cash flow from op. activities of AUD 1.1bn up 16% yoy; AUD 1.7bn in LTM. Maintained strong EBITDA cash conversion rate of 101% in LTM Free operating cash flow of AUD 1.1bn in LTM Strong balance sheet, with a net cash position of AUD 1.2bn, up by AUD 595m yoy Work in hand / pipeline New work of AUD 11.8bn awarded, bidding discipline maintained; work in hand of AUD 35.0bn, with OpCo work in hand increasing by 3% or AUD 1.0bn yoy AUD 35bn of tenders relevant to CIMIC to be bid and / or awarded in, and around AUD 375bn of projects coming to the market in 2019 and beyond (incl. about AUD 110bn worth of PPP projects) Outlook CIMIC Guidance confirmed for NPAT of AUD 720m-780m (+3-11% yoy vs. AUD 702m in FY ), subject to market conditions Financials (AUD m) % change FY 17 Revenue 1 10, , % 13,429.5 EBITDA 1, , % 1,513.7 EBITDA margin 11.5% 11.4% % D&A % EBIT % 1,002.4 EBIT margin 7.7% 7.5% 0.2pp 7.5% Net finance costs % PBT % PBT margin 7.2% 7.2% - 7.1% Income tax % Profit after tax % Effective tax rate -28.0% -28.0% 0.0pp -28.0% Non-controlling interests % 11.5 NPAT % NPAT margin 5.3% 5.2% - 5.2% Earnings per share (basic) 173,9c 154,5c 12.6% 216.5c (AUD m) % change LTM Cash flow from operating activities 2 1, % 1,666.1 Interest, finance, tax & divid. received % Net cash from operating activities % 1,494.7 Gross capex % Gross capital proceeds % Net capital expenditure % Free operating cash flow % 1,093.8 (AUD m) Sep 18 Jun 18 Mar 18 Dec 17 Sep 17 Net cash/(debt), excl. op. leases 1, , Operating leases Net cash/(debt), incl. op. leases Net contract debtors 3 1, (AUD m) Sep 18 Sep 17 % change Dec 17 Operating Companies' work in hand 32, , % 32,037.0 Corporate 2, , % 3,973.0 Total work in hand 4 35, , % 36, Revenue excludes revenue from joint ventures and associates of AUD 2,049.9m ( 17: AUD 2,103.5m) 2 Cash flows from operating activities before interest, finance costs, taxes and dividends received 3 Net contract debtors represents the net of amounts due from customers and amounts due to customers. IFRS 15 applied resulting in adjusted Dec figures 4 WIH includes CIMIC s share of work in hand from joint ventures and associates 9

10 HOCHTIEF Americas results Results / Cash Essentials In op. PBT (EUR 224m) and op. net profit (EUR 137m) +16% yoy (fx-adjusted +24% / +25% yoy) with increasing profits from both Turner and Flatiron Sales up 10% yoy (fx-adjusted +17%) Op. PBT margin has risen by 20 bps to 2.4%, with both Turner s and Flatiron s margins expanding Strong level of net cash from op. activities of EUR 185m (EUR +105m yoy); Turner and Flatiron have both made an important contribution to this improvement Net cash ended September at a high level of EUR 1.1bn, up by EUR 381m yoy Orders New orders strongly up in (+13% yoy; +20% fx-adjusted) to EUR 10.9bn driven by numerous project wins at Turner and Flatiron Order backlog at another all-time high of EUR 19.9bn at the end of September (+14% ytd and +30% yoy) (EUR million) Financials change yoy Outlook HOCHTIEF Americas Operational PBT improvement to approx. EUR m (i.e % yoy vs. EUR 258m in ) change yoy Total sales / divisional sales 9, , % 3, , % 11,838.9 Operational profit before tax/pbt % % Operational PBT margin in % Operational net profit % % EBITDA % % EBIT % % Profit before tax / PBT % % Net profit % % Net cash from operating activities % % Gross operating capital expenditure % % 30.4 Net cash / net debt 1, % 1, % New orders 10, , % 3, , % 15,381.5 Work done 9, , % 3, , % 11,630.3 Order backlog 19, , % 19, , % 17,517.1 Employees (end of period) % % EBITDA and EBIT restated Operational profits are adjusted for one-off items FY 10

11 HOCHTIEF Europe results Results / Cash Essentials Op. PBT increased by EUR 11m yoy to EUR 44m Op. Net profit increased by EUR 9m yoy to EUR 34m Sales trend improved, yoy decline driven mainly by reduced real estate revenues and disciplined bidding approach Net cash from op. activities improved by EUR +32m in yoy. yoy comparison impacted by high level of Real Estate divestments in Yoy change in net cash of EUR +91m reflects also divestments LTM Orders New orders: New orders of EUR 1.2bn, in line with work done. bolstered by large project win Zuidasdok, NL (EUR 421m) Order backlog: with EUR 3.6bn at a stable level; visibility of 24 months (EUR million) Financials change yoy change yoy FY Total sales / divisional sales 1, , % % 1,609.0 Operational profit before tax/pbt % % 45.0 Operational PBT margin in % Operational net profit % % 36.2 EBITDA % % 70.4 EBIT % % 53.5 Profit before tax / PBT % % 32.5 Net profit % % 23.7 Net cash from operating activities % % Gross operating capital expenditure % % 18.9 Net cash / net debt ,355.6% ,355.6% New orders 1, , % % 1,962.0 Work done 1, , % % 1,893.9 Order backlog 3, , % 3, , % 3,663.6 Employees (end of period) % % of which Germany % % EBITDA and EBIT restated Operational profits are adjusted for one-off items Outlook HOCHTIEF Europe Operational PBT of approx. EUR 55-65m (i.e. EUR m increase yoy vs. EUR 45m in ) 11

12 Abertis transaction completed on 29 October 98.7% of Abertis shares transferred to the SPV Abertis Participaciones on 29 Oct HOCHTIEF issued 6.35 million new shares (9.87% capital increase) at EUR (EUR 908m) to ACS ACS sold million HOCHTIEF shares, equivalent to 23.86% of total shares outstanding, at the same price to Atlantia ACS remains HOCHTIEF s largest shareholder with a 50.41% stake HOCHTIEF invests EUR 1.4bn for 20% stake in the SPV Abertis Holdco, financed by the capital increase (EUR 0.9bn) and available financial resources (EUR 0.5bn) Abertis Holdco has been capitalized by HOCHTIEF (EUR 1.38bn, 20% stake*), ACS (EUR 2.07bn, 30%) and Atlantia (EUR 3.46bn, 50%*) in total with equity of EUR 6.91bn and bank debt of EUR 9.82bn HOCHTIEF s 20% stake consolidated as equity method associate contributed EUR 58m during June-September to HOCHTIEF s nominal PBT and net profit Post Abertis closing in October Group pro-forma net cash position would stand at over EUR 0.8bn (reported EUR 1.3bn), proforma total shareholder s equity at EUR 2.3bn (reported EUR 1.4bn) * HOCHTIEF minus 1 share, Atlantia plus 1 share Essentials HOCHTIEF ACS Atlantia Treasury Shares 0.05% Abertis shareholder structure 20%* 30% 50%* Abertis Holdco Abertis Participaciones Free float 25.69% Atlantia S.p.A % 100% 98.7% Abertis 1.3% Minorities HOCHTIEF shareholder structure (70.65m shares, was 64.30m) ACS (Actividades de Construcción y Servicios S.A.) 50.41% 12

13 (EURm) HOCHTIEF Group Outlook Op. net profit guidance % Operational net profit FY FY Guidance confirmed Operational net profit EUR m, +4-15% yoy Abertis transaction closed Increased profit and cash flow visibility Highly EPS and DPS accretive EUR 1.4bn of capital deployed (of which EUR 0.9bn capital increase subscribed by ACS) Platform for additional growth in PPP investments Dividend (EUR / HOT share) Increased dividend payout target (based on nom. net profit) Payout ratio to increase to 65% (from FY18) vs 50% previously + 30% + 30% + 18% 0.20* + 13% * % *special * dividend Proposal Organic growth opportunities Strong pipeline of projects to be tendered and / or awarded in key markets in total around EUR 500bn Significant PPP opportunities of over EUR 210bn in key HOCHTIEF markets Balance sheet strength / disciplined capital allocation Robust balance sheet provides flexibility to attractively remunerate shareholders and pursue further growth opportunities in a disciplined manner 13

14 Costas Mitropoulos Appendix: HOCHTIEF/Felix HOCHTIEF Bülow Ben Benschneider Photography Highway Elefsina-Patras-Tsakona, Greece Oli Keinath 14

15 HOCHTIEF Group - overview HOCHTIEF Group (EUR million) Δ % Δ % FY HOCHTIEF Group (EUR million) Δ % Δ % FY Orders (nominal) P&L-key figures (operational) New orders 19, , % 6, , % 30,443.5 HOCHTIEF Americas 10, , % 3, , % 15,381.5 HOCHTIEF Asia Pacific 6, , % 2, , % 12,995.6 HOCHTIEF Europe 1) 1, , % % 1,962.0 HQ/Consolidation % % Work done 18, , % 6, , % 24,518.4 HOCHTIEF Americas 9, , % 3, , % 11,630.3 HOCHTIEF Asia Pacific 8, , % 2, , % 10,889.2 HOCHTIEF Europe 1, , % % 1,893.9 HQ/Consolidation % % Order backlog (yoy) 45, , % 45, , % 44,644.2 HOCHTIEF Americas 19, , % 19, , % 17,517.1 HOCHTIEF Asia Pacific 21, , % 21, , % 23,465.5 HOCHTIEF Europe 3, , % 3, , % 3,663.6 HQ/Consolidation % % -2.0 P&L-key figures (nominal) Sales (nominal) 17, , % 6, , % 22,631.0 HOCHTIEF Americas 9, , % 3, , % 11,838.9 HOCHTIEF Asia Pacific 6, , % 2, , % 9,077.0 HOCHTIEF Europe 1, , % % 1,609.0 HQ/Consolidation % % EBITDA 1, % % 1,320.8 HOCHTIEF Americas % % HOCHTIEF Asia Pacific % % 1,020.3 HOCHTIEF Europe % % 70.4 HQ/Consolidation % % EBIT % % HOCHTIEF Americas % % HOCHTIEF Asia Pacific % % HOCHTIEF Europe % % 53.5 HQ/Consolidation % % Profit before tax (nominal) % % HOCHTIEF Americas % % HOCHTIEF Asia Pacific % % HOCHTIEF Europe % % 32.5 HQ/Consolidation % % PBT-margin on sales (nominal) HOCHTIEF Americas HOCHTIEF Asia Pacific HOCHTIEF Europe HQ/Consolidation Profit before tax (operational) % % PBT-margin on sales (operational) Net profit (operational) % % Cash & Capex Net cash from operating activities % % 1,372.1 HOCHTIEF Americas % % HOCHTIEF Asia Pacific % % HOCHTIEF Europe % % HQ/Consolidation % % Gross operating capex % % HOCHTIEF Americas % % 30.4 HOCHTIEF Asia Pacific % % HOCHTIEF Europe % % 18.9 HQ/Consolidation % % 11.9 Net operating capex % % HOCHTIEF Americas % % 19.8 HOCHTIEF Asia Pacific % % HOCHTIEF Europe % % 4.1 HQ/Consolidation % % 11.9 Net cash / net debt 1, % 1, % 1,265.8 HOCHTIEF Americas 1, % 1, % HOCHTIEF Asia Pacific % % HOCHTIEF Europe ,355.6% ,355.6% HQ/Consolidation % % EBITDA and EBIT restated One-off reconciliation: EUR million PBT Net profit PBT Net profit PBT Net profit PBT Net profit PBT Net profit Operational earnings 1) One-off items Nominal earnings ) Operational profits are adjusted for deconsolidation effects and other one-off impacts H1 Q1 FY Net profit (nominal) % % HOCHTIEF Americas % % HOCHTIEF Asia Pacific % % HOCHTIEF Europe % % 23.7 HQ/Consolidation % %

16 HOCHTIEF Group Statement of earnings Sales: +5% yoy (fx-adjusted +12% yoy); mainly due to strong organic growth in the Americas and at CIMIC. 96% of sales are international Materials and personnel costs: Increased in line with sales growth Net income from Joint Ventures: Increased mainly due to higher contributions from JVs at CIMIC and Flatiron Result from equity accounted associates: Includes HOCHTIEF s share in Abertis net profit (net of financing costs and purchase price allocation) in the amount of EUR 58 million Tax rate: Decline, mainly due to increased profit contribution of equity accounted associates HOCHTIEF Group (EUR million) Sales 17, , % 22,631.0 Change in inventories % Materials -12, , % -16,229.4 Personnel costs -3, , % -4,119.8 Other operating income % Other operating expenses % -1,239.1 Net income from Joint Ventures % Net non-operating expenses adjustment (a) % 49.0 EBITDA 1, % 1,320.8 Depreciation and amortization % EBIT % Net interest income and other financial result % Result from equity accounted associates ,713.9% 4.3 Net non-operating expenses adjustment (a) % Profit before tax / PBT % Taxes % Tax rate (taxes / PBT in %) Profit after tax % D % FY Minority interest % Consolidated net profit % EBITDA and EBIT restated 16

17 HOCHTIEF Group Balance sheet (assets) Non-current assets: Equity method investments: increased mainly due to HOCHTIEF stake in ABERTIS in the amount of EUR 3.4bn partly offset by decrease due to IFRS 15 restatement at joint ventures Financial receivables: application of IFRS 9 led to a decrease mainly related to loans by CIMIC to Group companies Current assets: Trade receivables: application of IFRS 15 largely drove the decrease Cash and cash equivalents: temporarily increased by EUR 537m ytd driven mainly by HOCHTIEF bond issuance (EUR 500m) in July ABERTIS shares to be transferred to ACS/Atlantia classified as Assets held for sale (transfer took place in October ) HOCHTIEF Group (EUR million) FY * Opening balance January 01, reduced by IFRS 9/15 restatement in the amount of EUR 1.4bn Δ FY Assets 29, , , ,407.0 Non-current assets 6, , , ,020.9 Intangible assets 1, , ,214.2 Property, plant and equipment Investment properties Equity-method investments 3, , Other financial assets Financial receivables Other receivables and other assets Income tax assets Deferred tax assets Current assets 23, , , ,386.1 Inventories Financial receivables Trade receivables 4, , ,175.4 Other receivables and other assets Income tax assets Marketable securities Cash and cash equivalents 3, , ,666.2 Assets held for sale 13, ,

18 HOCHTIEF Group Balance sheet (liabilities and equity) Shareholders equity: Adjustment as per January 01, : EUR -1,356m IFRS 9: EUR -401m IFRS 15: EUR -955m Changes in Profit after taxes: EUR 528m Fx-effects: EUR 39m Dividends: EUR -316m Other: EUR 6m Current liabilities: increase mainly due to financial liabilities due to ABERTIS transaction (HT share) in the amount of EUR 3.2bn and liabilities associated with assets held for sale in the amount of EUR 13.2bn (non-hochtief share) increase in financial liabilities mainly due to reclassification of a long-term bond of HOCHTIEF AG maturing in May 2019 from non-current liabilities HOCHTIEF Group (EUR million) increase in trade payables in line with sales growth * Opening balance January 01, reduced by IFRS 9/15 restatement in the amount of EUR 1.4bn FY Liabilities and shareholders equity 29, , , ,407.0 Shareholders' equity 1, , , ,384.8 Attributable to the group , ,684.8 Minority interest Non-current liabilities 3, , ,367.3 Provisions for pensions and similar obligations Other provisions Financial liabilities 2, , ,538.2 Other liabilities Deferred tax liabilities Current liabilities 25, , , ,654.9 Other provisions Financial liabilities Financial liabilities due to Abertis transaction 3, , Trade payables 6, , ,161.9 Other liabilities Income tax liabilities Liabilities associated with assets held for sale 13, , Δ FY 18

19 HOCHTIEF Group Statement of cash flows HOCHTIEF Group (EUR million) D D FY Profit after tax / PAT Non-cash expenses and changes in balance sheet items Net cash from operating activities pre net working capital change ,038.9 Payments for the purchase of ABERTIES (for purpose of transfer) -13, , Proceeds from borrowing for investment in ABERTIS (for purpose of transfer) 13, , Net working capital change Net cash from operating activities ,372.1 Gross operating capital expenditure Operating assets disposals Net operating capital expenditure Free cash flow from operations ,120.3 Payment for investment in ABERTIS (HOCHTIEF share) -3, , Acquisitions and investments in participating interests Proceeds from divestments Changes in cash and cash equivalents due to consolidation changes Changes in non-current holding securities and financial receivables Cash flow from investments (excl. changes in current securities holdings) -3, , Free cash flow (w/o change in current marketable securities) -3, , Changes in current marketable securities Cash flow from investments (total) -3, , Free cash flow (total) -3, , Payments for repurchase of treasury stock Payments received from sale of treasury stock Payments for repurchase of treasury stock CIMIC Payments for the purchase of additional shares in subsidiaries Payments out of equity to non-controlling interests Payments into equity by non-controlling interests Other financing activities Dividends to HOCHTIEF`s and minority shareholders Proceeds from borrowing for investment in ABERTIS (HOCHTIEF share) 3, , Proceeds from other borrowing , ,926.4 Debt repayment , , ,107.2 Cash flow from financing activities 3, , Change in cash & cash equivalents Changes in long-term securities holdings and financial receivables Cash changes of cash (total operating, investing, financing) Effects of exchange rates changes Overall change in cash & cash equivalents (acc. balance sheet) Net cash from operating activities ,372.1 Cash flow from investments (total) -3, , Variations in equity (such as dividends, share purchases in subsidiaries) Other changes (incl. effects of exchange rate changes) 3, , Change in net cash (+) / net debt (-)

20 EUR mm HOCHTIEF Group capital structure Net cash / Net debt calculation: period end (EUR m) end end end FY Cash and cash equivalents 3,632 2,666 3,095 Marketable securities Financial Receivables Correction financial assets from discontinued operations Financial assets 4,472 3,286 3,679 EUR 500m BBB-rated bond issued in Jun : The bond was issued with a yield of 1.82% p.a. (coupon of 1.75%) and has a maturity until July The bond transaction was met by broad interest among investors leading to an oversubscription of the order book of 2.6 times. Bonds or notes issued 2,108 1,601 1,607 Amounts due to banks 1 4,232 1, Lease liabilities Other financial liabilities Correction financial liabilities from -3, discontinued operations Financial liabilities 3,182 2,778 2,413 Net cash (+) / Net debt (-) 1, ,266 Debt Maturity profile: 1,400 1,200 1,000 1, Lease / Other financial liabilities Amounts due to banks 1) Bonds or notes issued ) Amounts due to banks incl. various ongoing and also revolving project financings and promissory loans 20

21 Enhanced Risk Management capabilities: the key driver to improve profitability in a sustainable manner Generic sector risks Lack of experience in new geographical areas Opportunistic project selection Underperformance of partners (JV, subs, suppliers) Insufficient owner-funding for project execution Lack of standardized / common project controls and execution methods Underestimation of risks from complexity and size in projects Inadequate resources (human resources, financial) Improve and standardize project controls and execution methods group-wide (based on lessons learned and best practice exchange) as an early warning system Clearer and stricter criteria for selection of countries, market segments and projects and faster exit if market conditions change Different review and approval process particularly for major projects: More transparency and understanding of risks in all project phases More detailed review and discussion with management during project phases Better project staffing with the right people for the job Market Selection of countries and products Specification of project types and sizes HOCHTIEF approach and focus REFOCUSING on the BASICS Key Items Target Project Selection of Clients Partners Team Subcontractors Timely / sufficient allocation of internal resources Bidding Availability of resources for execution Analysis contractual terms and conditions Evaluation of technical challenges / solutions Analysis financial conditions Delivery Project, cost and cash management Adequate resources Management of changes / client requests Preparation for handover / acceptance Best-in-class risk management to reduce volatility and deliver sustainable earnings! Every avoided / managed risk supports our performance & stabilizes our profitability 21

22 CPB Contractors HOCHTIEF Asia Pacific CityLink Tulla Widening, Melbourne, VIC, Australia Thiess Oli Keinath 22

23 HOCHTIEF Asia Pacific Essentials Results: reflects HOCHTIEF s stake in CIMIC (72.7% Sep, unchanged yoy), associated financing & holding costs, and impact of variations in f/x Nominal PBT up 7% to EUR 444m, PBT margin expanded 30bp yoy to 6.6% Further yoy improvement in cash flow in Net cash of EUR 800m, up by EUR 360m yoy (EUR million) Financials change yoy change yoy Total sales / divisional sales 6, , % 2, , % 9,077.0 Profit before tax / PBT % % PBT margin in % Net profit % % Net cash / net debt % % Order backlog 21, , % 21, , % 23,465.5 Employees (end of period) % % FY New orders / order backlog: Robust order book at EUR 22.0bn, equivalent to over two years sales Extensive project pipeline across all operating companies: Major projects CIM is currently bidding for: e.g. WestConnex Rozelle Interchange, Cross River Rail PPP, Sydney Metro and Melbourne Metro Rail link, Suburban Roads Upgrade PPP Outlook CIMIC Guidance confirmed: NPAT for AUD 720m to AUD 780m (+3-11% yoy vs. AUD 702m in ), subject to market conditions 23

24 HOCHTIEF Asia Pacific CIMIC Revenue analysis HY / HY HY : Revenue by segment (AUD 8.3bn 1) ): Revenue by market: 13% 28% 18% 47% 22% Construction 72% HY : Revenue by segment (AUD 7.7bn 1) ) Mining & mineral processing Services Corporate Revenue by market: Domestic International 15% 36% 18% 46% 21% 64% 1) Including revenue from associates and joint ventures 24

25 HOCHTIEF Asia Pacific CIMIC Order backlog analysis HY / HY HY by segment (AUD 34.8bn): HY by market: 19% 9% 42% 26% 30% HY by segment (AUD 35.2bn): Construction Mining & mineral processing Services Corporate 74% HY by market: Domestic International 16% 14% 43% 32% 27% 68% 25

26 Take it LINXS Media HOCHTIEF Americas California High Speed Rail Authority Wilshire Grand Center, Los Angeles, CA, USA 26

27 HOCHTIEF Americas Segmental overview Building: Turner #1 general builder in US, Market Leader in sustainable construction (Green Building) 1) Segment-specific expertise and nation-wide network provide competitive advantage Strong reputation as construction manager provides quality contracts from repeat customers: limited risks, low fixed costs, low capital intensity 80% private clients, 20% government contracts Civil: Flatiron #6 highways, #9 bridges, #10 US transportation infrastructure contractor 1), active in Western parts of the US, Texas, North & South Carolina, West Virginia & Canada Most contracts are local government contracts; e.g. several contracts with the California Department of Transportation and the Colorado Department of Transportation. Additional footprint in Eastern US infra market through E.E. Cruz, New York region 1) Source: latest ENR ranking 16% H1, EUR 16.3bn 6% 4% 3% 18% 11% 17% 12% Transportation/Misc Education/R&D Hotel/Residential Public/Justice 29% H1, EUR 3.6bn 15% 1% 19% 0% Order backlog 15% 33% H1, EUR 12.6bn 1% 3% 9% 19% 23% 8% 20% 17% Commercial/Data/Retail Healthcare Industrial Sports/Entertainment H1, EUR 2.3bn 25% 4% 2% 3% 0% 25% Transmission Highway Bridges Transit Airports Water Others 41% 27

28 (USD bn) (USD bn) HOCHTIEF Americas Market opportunities US Non-residential building construction 1) Building: Targeted segments continue to grow Steady growth expected in relevant market segments Project opportunities in Canada % +6% +4% +3% +6% +3% Educational Health Care Office Commercial Transportation Manufacturing Others Civil: Obvious need for investment in infrastructure Potential for PPP/concession projects Strong growth in Canadian infrastructure incl. PPP projects e 2019e 2020e 2021e 2022e US Civil market, contract volume 1) % +3% +2% -1% +5% +4% Roads & Highways Other transportation 1) Source: FMI Construction Outlook (based on 1 st Quarter Actuals) 0 e 2019e 2020e 2021e 2022e 28

29 Dominik Reipka HOCHTIEF Europe HOCHTIEF/Felix HOCHTIEF Bülow A7 Langenfelde Bridge, Hamburg, Germany Oli Keinath HOCHTIEF HOCHTIEF 29

30 HOCHTIEF Europe: Growth in HOCHTIEF s regional construction markets In May, HDB 1) increased its full-year turnover forecast for German construction market: Market on stable growth course, expected sales growth in : +6% to EUR 120bn (nominal) equivalent to 2% in realterms; same growth rates expected for 2019 High demand for new buildings and low key rates of the European Central Bank German federal government plans to invest record amount of some EUR 270bn in the period to 2030 in expanding and maintaining transportation network. 2) Good growth opportunities are expected in nearly all of HTE s core European markets in and beyond (with Germany and Poland leading) 3) Construction volume growth (real yoy) 3) ** German constr. market nominal sales growth Total Market value (in USDbn) Building construction (non-residential) Civil engineering incl. Transportation infrastructure Overall Market* Building construction (nonresidential) Civil engineering incl. Transp. infrastructure Overall Market* Building construction (nonresidential) Civil engineering incl. Transp. infrastructure Overall Market* 6.0% 6.0% e Germany % 5.5% 6.9% 4.4% 4.7% 4.7% 3.3% 3.1% 2.6% UK % -1.1% 0.4% -0.6% 0.0% 0.0% 0.5% 1.2% 1.3% Netherlands % 1.9% 5.0% 3.4% 2.2% 3.0% 2.2% 0.1% 1.1% Poland % 12.5% 12.9% 7.5% 7.1% 7.0% 3.0% 3.5% 3.2% Norway % 3.6% 2.4% 0.4% 4.3% 2.5% 1.5% 4.2% 3.0% Austria % 4.1% 3.9% 4.7% 2.6% 3.6% 2.3% 1.7% 1.9% Sweden % 2.1% 5.2% 2.7% 2.6% 3.8% 2.5% 1.6% 1.9% Denmark % 0.8% 3.5% 2.2% 0.3% 1.9% 2.4% 1.5% 1.5% Czech Republic % -5.9% 0.0% 2.9% 3.7% 3.1% 2.1% 3.3% 2.8% Total selected countries 1, % 3.0% 4.4% 2.3% 3.2% 3.0% 1.9% 2.3% 2.1% *Incl. further construction segments **Average annual growth 1) Federation of the German construction industry 2) German federal government, 2030 Transport Infrastructure plan 3) IHS Dec (in 2010 US dollars) 30

31 General market overview PPP Australia: Government s infrastructure plan expected to mobilize AUD 100bn+ investment Canada: one of most mature PPP markets; significant pipeline, esp. in Ontario; P3 market dominated by soc. infrastructure (esp. health sector) & civil projects, Infrastructure Ontario market update shows 15 social infrastructure projects and 17 civil infrastructure projects with a value of CAD 15.8bn. USA: the US P3 market overall is continuing a slow but steady rise; increasing number of PPP opportunities is expected, esp. in transport due to USD 1.5tn infrastructure plan; participation in demand risk projects, significant amount of projects in Texas, Georgia & Alabama; optimistic for Germany: government program of 11 PPP roads, inv. vol. EUR 14bn until end of 2020, A49 procurement started. PPP Pipeline A-Models confirmed in new coalition agreement, first road PPPs in NRW (A1/A30 & A57) expected. Stable pipeline in soc. Infra., mainly on state and community level. UK: limited pipeline of existing PPPs continue to advance (e.g. Silvertown Tunnel), longer-term uncertainties Other key markets: Netherlands, Ireland, Scandinavia (Norway), Czech Rep, Slovakia & Poland Recent PPP awards: Los Angeles Int. Airport Automated People Mover, USD 4.6bn, Financial Close (06/) in JV an elevated 2.25 mile-long guideway with six stations as well as pedestrian bridges to airport terminals, parking garages and fixed facilities; operation and maintenance for ~25 years. AOK Nuremberg (03/) new office building for local public health insurance; O&M for 25 years Waikeria Prison PPP, New Zealand, NZD 750m, Pacific Partnerships & CBP Contractors in JV (06/), design, construction, financing, managing Via Pacific Partnerships, CIMIC is well positioned to take advantage of increasing usage of PPP model having delivered more than 20 PPP projects with a market value of around AUD 32bn PPPs of HOCHTIEF Europe (end ): 31

32 HT Europe Real Estate business line Sale of Real Estate ongoing process Real Estate Solutions HTP formart aurelis HTP trader developer (H1 ): Project financing incl. EUR 31m nonrecourse debt 4 projects in realization 53% pre-sold, 79% pre-let Regional split of EUR 133m net assets Domestic: EUR 52m (39%) Int l: EUR 81m (61%) Capital employed (EUR m) Company Net Assets 1) H1 End End 2016 End 2015 End 2014 End 2013 HTP formart sold 297 aurelis sold 185 Total ,220 Split by type of asset (% of total investment volume): Office 46% 52% Residential Other (Hotel, etc.) 2% 1) Net Assets = equity + debt + pension provisions 32

33 f/x rates and effects End of period: Q1 H1 March March Change June 30, June 30, Change Sept. 30, Sept. 30, Change 31, 31, (%) (%) (%) EUR/USD % EUR/USD % EUR/USD % USD/EUR % USD/EUR % USD/EUR % EUR/AUD % EUR/AUD % EUR/AUD % AUD/EUR % AUD/EUR % AUD/EUR % Period average: Q1 Q2 H1 Jan-Mar Jan-Mar Change Apr-June Apr-June Change Jan-June Jan-June Change (%) (%) (%) EUR/USD % EUR/USD % EUR/USD % USD/EUR % USD/EUR % USD/EUR % EUR/AUD % EUR/AUD % EUR/AUD % AUD/EUR % AUD/EUR % AUD/EUR % Jul-Sep Jul-Sep Change Jan-Sep. Jan-Sep. Change (%) (%) EUR/USD % EUR/USD % USD/EUR % USD/EUR % EUR/AUD % EUR/AUD % AUD/EUR % AUD/EUR % 33

34 Oli Keinath Dominik Reipka CPB Contractors Turner Construction Iain Masterton Company Appendix: other Christchurch Convention Center, Christchurch, New Zealand San Francisco International Airport, CA, USA H O C H T I E F Ruskin Dam, Vancouver, BC, Canada Flood Protection Niederhafen, Hamburg, Germany 34

35 HOCHTIEF global presence with three divisions FY HOCHTIEF Corporate Headquarters Asia Pacific Americas Europe Leighton Contractors Flatiron Oscar Durand Leading position in the Australian & S.E. Asian construction, contract mining and services One of the leading general builders in US & Canada, the largest world construction market Leading German-based builder focused on central and northern European markets Sales Asia Pacific (EUR 9.1bn) Americas (EUR 11.8bn) Europe (EUR 1.6bn) 40% 53% 7% Asia Pacific (EUR 579m) Americas (EUR 254m) Europe (EUR 33m) Total: EUR 23bn Nom. PBT 67% 29% 4% Total: EUR 824m 1) Asia Pacific (EUR 275m) Americas (EUR 163m) Europe (EUR 24m) Nom. Net profit 60% 35% 5% Total: EUR 421m 1) 1) incl. headquarters 35

36 The HOCHTIEF Group Founded in 1873 Present in world s major markets Ranked #2 in ENR Top 250 International Contractors 1) Key figures (FY ): 54,000 employees Op. PBT: EUR 678m (+28%) Op. net profit: EUR 452m (+25%) Nominal Net profit EUR 421m (+31%) 1) Source: ENR The Top 250, Aug. (based on international sales volume) Activity split () Regional split () New Orders: EUR 30.4bn 3%4% 42% 51% Order backlog: EUR 44.6bn 7% 3% 53% 39% Sales: EUR 22.6bn nom. PBT: 824 EUR m 12% 0% Sales: EUR 22.6bn 5% 3% 24% 39% 40% 52% 25% America Australia Asia Germany Rest of Europe 36

37 Shareholder remuneration Strong share price performance since Dec 2012 ordinary dividend: EUR 3.38 per share, +30% yoy vs 2016 EUR 2.60 Total dividend payment for of EUR 217m Dividend policy Payout ratio to increase from 50% to 65% of nominal net profit from fiscal year Treasury Shares 0.05% Shareholder structure (70.65m shares, was 64.30m) Free float 25.69% Atlantia S.p.A % ACS (Actividades de Construcción y Servicios S.A.) 50.41% Dividend (EUR per share) Market cap (year-end in EURm) Share price performance ( YTD) + 30% + 30% + 13% + 18% 0.20* % *special dividend Proposal 37

38 Group transformation: Streamlined, diversified and cash focused model Improving performance In m driven by group transformation 1) Delivering for shareholders Reshaping the portfolio to focus on core competences in Construction, Contract mining, PPP and Services 1) Operational earnings are adjusted for deconsolidation effects and other one-off impacts 38

39 HOCHTIEF Group Performance Summary (I) transformation (EURbn) Total Net cash at end Net cash from op. activities 4.7 Net operating CAPEX -1.6 Strategic investments -1.5 Divestments & related consolidation changes 2.9 Share buybacks -0.9 Dividends (external) -1.0 Others -0.6 Net cash at end of 1.3 Change net cash / net debt 2.0 Free op. Cash flow shareholder remuneration (EURm) FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 FY New Orders 31,488 21,912 22,041 21,554 24,813 30,444 Order Backlog 49,794 35,884 36,255 36,023 43,088 44,644 Net cash from operating activities 1, ,135 1,173 1,372 EBITDA /cash conversion rate (in %p) 58% 15% 40% 99% 118% 106% Free cash flow from operations ,120 Net strategic invest. (-) / divestments (+) 0 1, Net cash (+) / net debt (-) ,266 Net profit (nominal) Net profit (operational) HOT dividend per share for the year 1) HOT dividend payments for the year (total) HOT share price (at year-end) Employees (at year-end) 80,593 75,433 53,247 44,264 51,490 53,890 1) FY 2014 dividend incl. special dividend of 0.20 EUR During the five-year period net cash of EUR 2.0bn generated Strong net cash from operating activities of EUR 4.7bn Free CF from Operations (after capex) of EUR ~3.2bn Shareholder remuneration of EUR 1.9bn Improvement in key variables since start of transformation Order backlog up 24% on 2013 Net profit about 2.6x 2013 level Net cash from op. activities 2016 ~5x 2013 level Dividend reinstated, 28% CAGR since

40 ,135 1, ,372 (EUR m) (EUR m) HOCHTIEF Group Performance Summary (II) 2013 Jun: LEI Telco Sep: Airports Sep: Services 22,499 22,099 Sales Divestments 2014 Mar: Aurelis Oct: formart Dec: John Holland Dec: LEI Services 21,097 19, , Op. net profit/op. PBT margin Net cash from operations 3.8% % 118% 3.4% 102% 106% % 2.8% % 76% 2.1% 2.3% % 1.6% % % % 22% % 0 0.0% Op. Net profit Op. PBT margin Net cash from op. EBITDA conversion rate % Order book Order book visibility (Order book/work done) Solid order book provides visibility EUR 45bn Dec, up 4% yoy, fx adj. +12% yoy Order book level equivalent to close to two years worth of activity 40

41 (EUR m) (EUR m) (EUR m) (EUR m) Strong improvement in Free Cash Flow from Operations 1) driven by: Cash-backed profit expansion Significant improvement in Net Working Capital (NWC) management Substantial capex reduction due to more efficient and streamlined management of investments Important reduction in net financial costs from EUR 267m in 2013 to EUR 118m in Free Cash Flow from Operations Net Cash (+) / Net Debt (-) Cash-in from NWC , ) 704 1, EUR m 1,500 1, Gross Capex 1, ) Free Cash Flow from Operations is after capex, working capital changes, taxes and financial costs, but before divestments, dividends etc. 2) 2016 net cash position is after EUR 402m net investments (M&A) and EUR 367m HOT & CIM share buybacks in

42 CIMIC Summary of strategic review 1. Strengthened balance sheet Focus on working capital management Divestments of John Holland Group, and 50% of services activity Dec Streamlined operating model Similar activities grouped together Cost base reduction at HQ and OpCo s Efficiencies from centralization of capex 3. Improved project delivery Enhanced Risk Management More entrepreneurial approach Reduction in management layers Current structure: Construction CPB / Leighton Asia Mining Thiess / Sedgman Previous structure: CIMIC Group (overview) PPPs Pacific Partnerships Leighton Holdings Engineering EIC Activities 100% 100% 100% 100% 100% Leighton John Holland Thiess Pty. Leighton Leighton Contractors Group Pty. Asia, India & Properties Ltd. Pty. Ltd. Ltd. Offshore Pty. Ltd. Construction Construction Construction Services UGL Construction Mining Mining Mining Mining Services Services Services 42

43 CR Corporate Responsibility Program Focusing on six areas with clearly defined objectives 1. Compliance Set standards with Code of Conduct 2. Attractive working environment Further strengthen position as a sought-after employer and make a name for ourselves among the most attractive employers in the industry 3. Procurement Redouble efforts to ensure fair, transparent procurement processes and further step up purchases of sustainable products and materials 4. Sustainable products and services Develop sustainable products and services, taking an integrated approach and ensuring top quality from end to end 5. Active climate and resource protection Conserve natural resources and enhance protection; save actively carbon emissions ourselves and jointly with our clients 6. Corporate citizenship Get involved wherever our company is at work or can offer added value by virtue of its capabilities 43

44 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 involve risks and uncertainties and do not guarantee future results, performance or events. Actual results, performance or events relating to HOCHTIEF Aktiengesellschaft and the HOCHTIEF Group, including but not limited to possible future divestments, profit before tax, consolidated net profit and dividends, may differ materially from the expectations and assumptions described in such statements due to, among other things, changes in the general economic, sectoral and competitive environment, risks associated with capital markets, currency exchange rate fluctuations, changes in international and national laws and regulations, in particular with respect to tax laws and regulations, the conduct of other shareholders, and other factors. Statements on dividends are additionally subject to the recognition of a corresponding unappropriated net profit in the published separate financial statements of HOCHTIEF Aktiengesellschaft for the fiscal year concerned and the adoption by the competent decision-making bodies of appropriate resolutions taking into account the prevailing situation of the Company. HOCHTIEF Aktiengesellschaft does not assume any obligations to update any forwardlooking statements. 44

45 Financial Calendar and Contacts 21 Feb 19 FY Results (provisional) 07 May 19 Annual General Meeting For further information please contact: Investor Relations HOCHTIEF Aktiengesellschaft Opernplatz Essen, Germany Phone: Fax: investor-relations@hochtief.de Mike Pinkney Tobias Loskamp Nadine Wärmer Martina Horst 45