Analysts and Investors Conference Full year results 2011 February 29, 2012 Dr Frank Stieler, CEO Peter Sassenfeld, CFO. Turning Vision into Value.

Transcription

1 Analysts and Investors Conference Full year results 2011 February 29, 2012 Dr Frank Stieler, CEO Peter Sassenfeld, CFO

2 2011: a year of transition and challenges Earnings problems at Leighton Changes in Executive and Supervisory Board Airport activities not yet sold Special effects toll roads in Greece and Chile ACS strengthens position as largest shareholder; stake now 49.17% (53.6% incl. HOCHTIEF treasury stock) 2

3 Positive developments in 2011 (I) Strong earnings increase at Americas Earnings increase at Europe Order backlog: forward order book of more than 22 months Success in strategic growth areas Creating modern energy infrastructure Shaping major cities Building state-of-the-art transportation infrastructure Successful acquisition in growth market Canada 3

4 Positive developments in 2011 (II) Added-value through internal collaboration Attractive early refinancing of core facilities Reduced complexity, leaner structures in Holding and Europe activities Sound foundation for a successful year 2012 and beyond 4

5 HOCHTIEF Americas Essentials Already strong position; activities retain top positions in US construction market Turner, leading general builder in US and #1 in segments healthcare, education, hotels, convention centers, and correctional facilities. Further strengthening of Canadian activities via Clark Builders acquisition in Canada Backlog visibility: 1.33x work done, i.e months Comments on financials: New orders / order backlog: f/x adjusted +6.7% / +6.2% EBT: f/x adjusted +19.8%; strong increase reflects good project quality and positive impact from final sale of Brazil business Capex: 2010 figure includes E.E. Cruz acquisition Financials Jan-Dec (EUR m) % New orders 7, , Order backlog 8, , Work done 6, , Divisional sales 6, , EBITA EBT EBT margin 2.3% 2.0% 15.0 Capex Net assets (31.12.) RONA Outlook Large order backlog, strong position plus recent acquisition in Canada EBT 2012E: due to weak infrastructure market slightly below very strong 2011; assuming stable f/x development 5

6 HOCHTIEF Asia Pacific Essentials Solidly back in profit in 2H 2011 after losses in 1H 2011 Recycling capital and unlocking value with sale of part of Australian iron ore business Well positioned in the world s fastest growing markets: Australia, Asia, the Middle East and Southern Africa Backlog visibility: 2.15x work done, i.e months Comments on financials: New orders / order backlog: f/x adjusted -27.1% / -2.3%; adjusted for sale of HWE business (EUR 0.9 bn), order backlog would be on previous year s level EBT: heavily impacted by losses on two infrastructure projects (EUR 1 bn); HLG write-down of outstanding receivables and impairment (EUR 347 m); positive impact from sale of HWE iron ore projects (EUR 171 m) Capex: increase mainly due to new contract mining projects, but also incl. EUR 110 m positive f/x effect Financials Jan-Dec (EUR m) % New orders 14, , Order backlog 33, , Work done 15, , Divisional sales 13, , EBITA EBT EBT margin - 5.0% - Capex 1, Net assets (31.12.) 4, , RONA Outlook Initiated measures, incl. overhaul of risk mgmt system, already gained traction in 2H 2011; systematically continuation and fine-tuning in 2012 Sustained positive performance of core business, ongoing favorable economic environment EBT 2012E: on about same level as

7 HOCHTIEF Concessions Portfolio comprises: Essentials 6 airports: 94.7 m PAX in FY 2011 (+2.2%) Roads: 8 roads, incl. 2 tunnels, in total >800km Social infrastructure: 18 projects (comprising: 98 schools, 18 police facilities, one community center, one barracks) Infrastructure ventures: 2 geothermal power plants Key figures / Financials Jan-Dec (EUR m) % Divisional sales EBT Capex Net assets (31.12.) 1, , RONA Comments on financials: EBT: mostly strong op. improvements at airports; success fee from HTAC for strong portfolio value increase; release of provisions at DUS & BUD; reduction of Greek tax on dividends; success fees for PPP project wins. But: risk provisioning for toll roads in Greece and Chile (EUR 90 m) Net assets: payment of 2 nd purchase price installment for BUD airport (EUR 254 m); Hungarian government exercises 25%-put option (EUR 68 m) Outlook Selling airports remains clear strategic objective 2012: anticipate another positive performance from airports overall 7

8 HOCHTIEF Europe Essentials New Europe division pools services (Classic bldg and Engineering, Energy and Infrastructure, Services and Real Estate) and reduces costs Success in all strategic growth segments International business expands further Backlog visibility: 1.71x work done, i.e months Comments on financials: New orders: strong int l, but 7.7% increase in int l could not make up the 13.7 decrease in Germany EBT: strong contribution from int l activities (74% of total) and positive impact from resale of 50% stake in offshore business; neg. non-operating earnings in connection with further organizational measures in Classic business line (German bldg); details on business lines see appendix Net assets: dominated by project portfolio of Real Estate Solutions (EUR 1.3 bn) Financials Jan-Dec (EUR m) % New orders 3, , Order backlog 5, , Work done 3, , Divisional sales 3, , EBITA EBT EBT margin 2.8% 2.5% 12.0 Capex Net assets (31.12.) 1, , RONA Outlook PPP business now integrated as separate business within division; to be supplemented with energy activities EBT 2012E: above 2011 level 8

9 Consolidated Group statement of earnings Jan-Dec (EUR m) % Sales 23, , Changes in inventories Materials -15, , Personnel costs -4, , Other operating income Other operating expenses -1, , Non-operating earnings Net income from participating interests EBITDA , Depreciation EBITA/EBIT Net investment and interest income Non-operating earnings EBT Income taxes Deferred taxes EAT of which: Consolidated net profit of which: Minority interest Sales: 91% of total is non-domestic Other operating expenses: includes increased expenses for technical and business/consulting and severance benefits Non-operating earnings: restructuring expenses at Europe division Net income from participating interests: Americas: EUR 64.6 m (2010: EUR 43.1 m) Asia Pacific: EUR m (2010: EUR 40.7 m) due to HLG (impairment and equity value adjustment) and VDP project losses Concessions: EUR m (2010: EUR m) Europe: EUR 30.3 m (2010: EUR 37.1 m) EBT: large hit in H1 2011, turnaround in operating earnings achieved in second half-year Taxes: lower expenses mainly due to project losses at Leighton 9

10 Consolidated Group balance sheet (assets) (EUR m) 31 Dec Dec 10 % Intangible assets PP&E 2, , Investment properties At equity and other financial assets 1, , Financial/other receivables, other assets Deferred tax assets Non-current assets 5, , Inventories 1, , Financial receivables Trade receiveables 4, , Other receivables and other assets Current income tax assets Marketable securities Cash and cash equivalents 2, , Assets held for sale 1, Current assets 10, , Total assets 15, , Non-current assets: PP&E: increase mostly reflects high level of capital expenditure at Asia Pacific contract mining business At equity and other financial assets: decrease reflects re-classification of airports as Assets held for sale (IFRS 5) Financial/other receivables, other assets: Decrease from reclassification (IFRS 5) opposed by increase due to loans from Leighton to HLG Current assets: Trade receivables: growth in line with expansion of business activities Marketable securities: streamlining of securities portfolio, further improvement of Group funding structure Assets held for sale: reclassification of airport assets from non-current to current assets (incl. minority interests) f/x effect on total balance sheet vol.: +EUR 300 m 10

11 Consolidated Group balance sheet (equity and liabilities) Shareholders equity: Earnings after taxes: EUR m Changes in fair value of financial instruments and actuarial gains and losses, f/x differences, other: EUR m Dividend payments: EUR m Equity ratio: 26.0% (end 2010: 28.5%) Non-current liabilities Financial liabilities: decrease reflects service of debt and shifts to current liabilities Current liabilities: Financial liabilities: shifts from non-current liabilities and new short term borrowings to optimize and secure Group s finances Trade payables: reflects ongoing growth in operating business (EUR m) 31 Dec Dec 10 % Attributable to the Group 2, , Minority interest 1, , Shareholders' equity 4, , Provisions for pensions and similar obligations Other provisions Financial liabilities 2, , Other liabilities Deferred tax liabilities Non-current liabilities 3, , Other provisions Financial liabilities 1, Trade payables 5, , Other liabilities Current income tax liabilities Debt related to assets held for sale Current liabilities 8, , Liabilities and shareholders's equity 15, ,

12 1,770 2,451 2,265 2,451 (EUR m) +1, , ,026 Consolidated Group cash flows 3,500 FY 2010 FY ,000 2,500 2,000 1,500 1, ,4 Cash and cash equivalents at start of year 11: Positive inflow of liquidity from operating business despite significantly lower earnings at Asia Pacific and in PPP segment (losses largely due to not yet non-cash items). 10: Strong positive cash flow from operating business (mainly Asia Pacific and Americas). 11: High investments in PP&E at HTAP and increase in investments in financial assets. Counteracted by high inflow of funds from HWE mining sale and sale of securities. 10: High investments in PP&E at HTAP. Furthermore, outflow of funds for security purchases and Leighton loans to participating interests. 11: Borrowing and repayments virtually in balance. Dividend payment (-EUR 290 m) slightly exceeds inflow of funds from equity contribution from minorities (EUR 271 m; mainly capital increase at Leighton) 10: New borrowings exceed repayments. Inflow of funds (EUR 400 m) due to equity increase at HOCHTIEF AG. Opposed by dividend payments (-EUR 312 m). C h a n g e i n c a s h f l o w f r o m operating activities investment activities financing activities 11: Neutral changes include inflow of funds of EUR 50 m from transfer from pension fund. F/x items mainly at HTAP (EUR 43 m) and HTAM (EUR 9 m). 10: High positive USD and AUD f/x effects Changes in exchange rates and neutral changes Cash and cash equivalents at end of reporting period 12

13 ,658 3,431 3,023 3,311 Financial basis (EUR m) Key figures (end FY 2011): Group net debt incl. Leighton net debt of EUR 503 m Gearing ratio (net debt / equity): 15.9% Unused non-current cash facilities: 800 approx. EUR 100 m end 2010 end ) Non-recourse project financing: EUR 269 m Limited recourse Leighton: EUR 153 m (AUD 195 m) Financial Assets Financial liabilities Net cash/(net debt) 1) Net debt FY 2011 includes: Pledged securities 29 Not deducted: Pension liabilities 189 Prepayments 403 Low goodwill: EUR 480 m Well-funded pension liabilities Details see appendix 13

14 Toward the future. With solutions from HOCHTIEF Creating modern energy infrastructure (I) Expansion of offshore wind energy activities Special jack-up vessels Innovation and Vidar Development of wind parks: acquisition of up to six wind farms planned Development of innovative technologies Energy infrastructure/network expansion Leighton: Wheatstone LNG Thiess: Power tunnel Sydney Flatiron: Transmission line in Canada Foundation of HOCHTIEF COBRA Grid Solutions 14

15 Toward the future. With solutions from HOCHTIEF Creating modern energy infrastructure (II) Resources/contract mining World market leader Leighton: ongoing project flow Example: Coal mining in Australia; new contracts worth around EUR 250 m in December 2011 alone Efficient use of energy in property asset mgmt 130 projects in progress in Germany alone 115,000 tons carbon savings for clients Sustainability concept and bluefm quality seal Work done 2011 in energy activities: EUR 4.9 bn Expected to grow by 40% to EUR 6.8 bn until

16 Toward the future. With solutions from HOCHTIEF Shaping major cities (I) HOCHTIEF market leader in Germany WaterHouses, Hamburg Quartier le flair, Düsseldorf Turner, #1 general builder in US Examples: Whitney Museum of America Art, New York; Mercy Westside Hospital, Cincinnati Green Building as success criteria Expansion in India: Foundation of Sahara Turner Construction 16

17 Toward the future. With solutions from HOCHTIEF Shaping major cities (II) Leighton projects in health market Examples: Royal Adelaide Hospital and Al-Mafraq-Hospital, Abu Dhabi PPP projects in social infrastructure Schools and child daycare facilities in Germany and UK 17

18 Toward the future. With solutions from HOCHTIEF Building state-of-the-art transportation infrastructure (I) Infrastructure projects for society s globally rising mobility needs Germany: PPP project A8 UK: Firth of Forth bridge and Thames tunnel USA: Highway Route 5 and PPP project San Francisco Canada: Drayton Valley Bridge and Steinhauer Bridge 18

19 Toward the future. With solutions from HOCHTIEF Building state-of-the-art transportation infrastructure (II) Australia/Asia: expansion of rail network in Victoria Asia: Guangzhou-Shenzhen-Hong Kong Express Rail Link Middle East: Bidbid-Sur highway, Oman Participation in research projects and product innovations Work done 2011 in transportation infrastructure: EUR 5.2 bn Expected to grow by 30% to EUR 6.8 bn until

20 Special topic: aurelis real estate Renting of existing property portfolio Development of a broad range of properties Strong brand, image and management Several options for value crystallization No time pressure: strong operative development 2011 successful refinancing Details on aurelis see appendix 20

21 Special topic: sale of airport activities remains strategic target Difficult economic climate impacted sale in 2011 Sale at attractive price remains clear strategic target Discussions with investors continue; no time pressure Airports remain attractive profitable asset: strong earnings contribution in million PAX (+2.2% vs 2010) 21

22 Special topic: Budapest airport after Malév insolvency on good track 3 February 2012, Hungarian airline Malév ceased operating Situation normalized already after few days Currently, approx. 80% of Malév O&D capacities taken over by other airlines HOCHTIEF in close discussion with Hungarian state 22

23 Special topic: Athens airport holds its ground despite crisis PAX 2011 about 6% below 2010 Ongoing good earnings contribution despite difficult environment European Airport of the Year

24 HOCHTIEF Group Guidance Reported Expected ) (EUR bn) New orders Normalize below FY 2011 Order backlog Normalize below record FY 2011 Sales Normalize below FY 2011 (EUR m) EBT Slightly below record level 2010 Net profit Slightly below record level 2010 Dividends: HOCHTIEF intends to propose adequate shareholder participation. 1) Key figures are subject to f/x trends; guidance does not include any extraordinary effects from sale of aurelis or airports. 24

25 HOCHTIEF Group Strategy: The way forward Core competencies: Development, Build and Operate Focus on growth areas Creating modern energy infrastructure Shaping major cities Building state-of-the-art transportation infrastructure Optimization of financial basis and risk mgmt Airports and aurelis sale remains strategic target Lower capital intensity, increase of capital turnover at property development and PPP projects 25

26 APPENDIX 26

27 Capital structure end FY 11 Net debt calculation: (EUR m) FY 2011 FY 2010 Cash and cash equivalents 2, ,451.1 Marketable securities Non-current securities Financial assets: 2, ,431.2 Bonds or notes issued ) Amounts due to banks 2, ) 2,009.7 Other financial liabilites ) Financial liabilities: 4) 3, ,023.2 Net debt: Net debt includes: Pledged securites Not deducted: Pension liabilities Prepayments Debt Maturity: (EUR m) 1,200 Financial basis: Financial liabilities main components 1) EUR 216 m Leighton US PP, /15/18; EUR 220 m Leighton bond, ; EUR 270 m Leighton US PP, /17/20 2) EUR 738 m promissory note loans after early repayments of EUR 21 m (EUR 160 m: /14; EUR 236 m: /15; EUR 240 m: ; EUR 102 m ); EUR 400 utilized syndicated revolving cash facility, 2016 (total: EUR 500 m); EUR 241 m Leighton, ; EUR 351 m various project financing (incl. EUR 269 m non-recourse project financing ex-lei) 3) EUR 460 m leasing facilities Major long-term guarantee facilities EUR 1.5 bn HOCHTIEF syndicated revolving guarantee facility, , utilization : EUR 1.1 bn EUR 4.4 bn Turner/Flatiron bonding facilities, utilization: EUR 3.4 bn EUR 5.7 bn guarantee facilities, including: EUR 3.0 bn Leighton bonding facilities utilization end 12M 2011: EUR 2.8 bn; other bilateral guarantee facilities 1, Bonds or notes issued Amounts due to banks Other financial liabilities ufn 5) > ) Excluding long-term loans to participating interests 5) until further notice, i.e. no specified maturity 27

28 HOCHTIEF Europe: Detailed financial figures Jan-Dec 11/end Dec 11 (EUR m) Divisional sales EBT EBT margin Order backlog "Construction" Solutions 1) 1, % 3,086.0 Real Estate Solutions 2) % 1,074.1 Service Solutions % 1,869.0 Figures do not add up to total division figures due to consolidation, etc. 1) Construction Solutions comprises the four Solutions activities: Energy & Infrastructure, International Project, Classic and Engineering 2) Real Estate Solutions: EUR 1.3 bn net assets acc. to RONA definition Business lines Regions Divisional sales FY 11, EUR 3.35 bn Order backlog end 11, EUR 5.89 bn Work done FY 11, EUR 3.44 bn Order backlog end 11, EUR 5.89 bn 26% 26% 20% 17% 11% 0% 0% (Engineering) Int'l Projects Classic Energy & Infra Engineering Service Real Estate 18% 16% 13% 31% 22% 0% 0% (Engineering) Int'l Project Classic Energy & Infra Engineering Service Real Estate 27% 15% 58% Domestic Europe Other 4% 35% 61% Domestic Europe Other 28

29 HOCHTIEF Europe Real Estate Solutions business line Factsheet aurelis (100%) Portfolio composition Split portfolio BV 2) Proceeds from Key financials 2011 (2010): EBT: EUR 61.4 m (EUR 62.3 m) EAT: EUR 51.4 m (EUR 55.5 m) To further increase asset value, now major focus on Pushing ahead obtaining development right for large-scale projects Securing long-term rentals and carrying out refurbishments Outlook 2012: AM 1) & Lessor Proceeds from rental income: around EUR 80 m EBT: > EUR 50 m Asset sqm Asset # Land Developer Total AM & Lessor Land Developer AM & Lessor Land Developer Total (%) (%) Asset sales Rental income (EUR m) (EUR m) end / FY ) ,445 67% 34% end / FY ,333 69% 31% end / FY ,221 69% 31% end / FY ,055 61% 39% end / FY % 37% Total 1, ) Asset Manager 2) Book Value 3) Proceeds 07 refer to FY, although consolidation date was Dec 1, 07 29

30 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. 30

31 Financial calendar and IR contact 03 May 12 General Shareholders Meeting 08 May 12 First quarter results 2012 results and Conference Call with Analysts and Investors 14 August 12 Half-year results 2012 and Analysts and Investors Conference 07 November 12 Nine-month results 2012 and Conference Call with Analysts and Investors For further information please contact: Investor Relations HOCHTIEF Aktiengesellschaft Opernplatz Essen, Germany Phone: Fax: investor-relations@hochtief.de Dr. Lars Petzold Ulrike Kröner Nadine Wärmer Ralf Hinricher 31