MY PROFIT OUR SUSTAINABILITY. Business Results Press Conference February 26, 2015 Marcelino Fernández Verdes, Peter Sassenfeld

Transcription

1 Oli Keinath 1 MY PROFIT OUR SUSTAINABILITY Johnny Greig Business Results Press Conference February 26, 2015 Marcelino Fernández Verdes, Peter Sassenfeld

2 Turner Construction 2 Key developments in 2014 Balance sheet significantly strengthened Cash flow generation improved Operating profit steadily enhanced Net cash achieved Stable order book Reorganization in Europe and Australia well advanced Successful divestments of non-core-business Positive outlook for the next year Thiess DB AG

3 Business Results 2014 Key Figures Net profit operational Cash Flow from Operations Net cash/net debt EUR million EUR million EUR million % % (39.6) 420.8* * Adjusted for cash-in to come in 2015 from 2014 asset disposals 3

4 HOCHTIEF Group: Key Figures for 2014 Change yoy Operational EBT* EUR m +16% Operational net profit* EUR m +46% Net profit EUR m +47% Cash flow from operations EUR m +169% New orders EUR 21.5 bn -2% Order backlog EUR 35.7 bn -1% Work done EUR 24.3 bn -1% Net cash EUR 421 m** +1162% Employees (year-end-figure) 53,247-29% David Magnusson Leighton Asia * Operational figures excluding one-off impacts and adjusted for sold assets ** Net cash 2014 including Leighton divestment proceeds Michael Claushallmann 4

5 HOCHTIEF Group Cash Flow performance Cash Flow components HOCHTIEF Group (EUR million) FY 2014 FY ) D FY Operating cash flow pre NWC change , Net Working Capital Change ,191.6 Cash Flow from Ops (nominal/reported) Gross operating Capex (investments in pp&e) Assets disposals (pp&e) Net operating capex (net investments in pp&e) Free operational Cash Flow Payments for the purchase of add. shares in subs. (esp. LEI) Free operational Cash Flow improved by nearly EUR 540m yoy Strong improvement of Cash flow from operations, driven by working capital management All divisions contributed to improvement and generated positive Free op. Cash Flow in 2014 Working capital generated cash in-flow of over EUR 300m; a turnaround of approx. EUR 1.2bn Europe improved by > EUR 300m in FY 2014 yoy to EUR +88m Asia Pacific generated EUR 280m in FY 2014 a yoy turnaround of EUR 765m Gross operating capex further reduced (by EUR 337m in FY 2014 yoy), driven by Leighton Op. cash flow pre NWC change affected by tax timing issues, restr. costs and Telco contribution 1) restated 5

6 HOCHTIEF Group statement of earnings Sales adjusted for f/x and changes in consolidation +1%; 94% of total is non-domestic Other operating income: 2013: positive impact from sale of non-core assets (LEI Telco, Service, Airports) Other operating expenses: 2014: incl. EUR 458m contract debtors provision Net income from participating interests: Americas EUR 31m (FY 2013: EUR 46m) Asia Pacific EUR 37m (FY 2013: EUR -1m) Europe EUR 51m (FY 2013: EUR 69m) Airports sold (FY 2013: EUR 96m) Net investment and interest income: clear improvement related to optimized financing measures (improved terms for renegotiated and renewed credit and guarantee facility; redemption of LEI notes; HOT corp. bond placement with 2.625% coupon) Non-recurring items: 2014 mainly related to restructuring and Leighton contract debtors provision; 2013 restructuring Europe and Asia Pacific Taxes: 2014 higher taxable income at Leighton; higher deferred taxes at Leighton (contract debtors provision) Minority interest: 2014: higher stake in LEI, thus lower minorities; 2013: incl. minority owners in SYD airport sale HOCHTIEF Group (EUR million) Sales , ,7-1,8% Change in inventories -30,5-77,9 60,8% Total Revenues , ,8-1,6% Materials , ,7-1,3% Non-recurring items (a) 0,8 0,2 300,0% Personnel costs , ,0 6,7% Non-recurring items (b) 43,5 37,3 16,6% Other operating income 225,4 454,4-50,4% Other operating expenses , ,2-32,8% Non-recurring items (c) 471,3 67,2 601,3% Net income from participating interests 118,5 210,4-43,7% EBITDA 999, ,4-37,1% Depreciation and amortization -440,4-686,4 35,8% Non-recurring items (d) 0,0 0,3-100,0% EBITA / EBIT 558,8 901,3-38,0% Net investment and interest income -220,3-266,5 17,3% Non-recurring items (a+b+c+d) -515,6-105,0-391,0% EBT -177,1 529,8-133,4% Current income taxes -163,6-21,5-660,9% Deferred taxes 208,9-136,6 252,9% Profit after taxes - continuing operations -131,8 371,7-135,5% Profit after taxes - discontinued operations 537,6 173,7 209,5% Profit after taxes - total 405,8 545,4-25,6% thereof: Consolidated net profit 251,7 171,2 47,0% thereof: Minority interest 154,1 374,2-58,8% 1) restated FY 2014 FY D % ) FY 6

7 HOCHTIEF Group balance sheet (assets) Non-current assets: Intangible assets: increase mainly related to f/x PP&E: of which approx. 84% LEI Equity investments: 2014 reflects new Services partnership at Leighton (50% stake Leighton) Financial receivables: comprise mainly loans to participations of LEI and PPP projects Deferred tax assets: increase mainly due to tax asset on Leighton contract debtors provision Current assets: Inventories: decrease mainly related to divestments Trade receivables: increase due to f/x countered by decrease related to Leighton asset sale and Leighton contract debtors provision Receivables from sale of disc. ops.: related to sale of Leighton assets (John Holland & Services) Marketable securities: sale at Corporate Headquarters and Turner Assets held for sale: 2014: LEI mining assets; 2013: aurelis and LEI mining assets (Indonesia) HOCHTIEF Group (EUR million) FY 2014 FY D % ) FY Total assets , ,1 1,8% Non-current assets 4.210, ,0 10,8% Intangible assets 866,3 830,1 4,4% Property, plant and equipment 1.304, ,4-5,4% Investment properties 15,2 16,0-5,0% Equity method investments 898,5 698,5 28,6% Other financial assets 129,4 75,3 71,8% Financial receivables 631,5 526,7 19,9% Other receivables and other assets 74,8 93,8-20,3% Non-current income tax assets 24,9 57,0-56,3% Deferred tax assets 265,5 125,2 112,1% Current assets , ,1-1,3% Inventories 919, ,3-20,7% Financial receivables 77,5 126,9-38,9% Trade receivables 5.066, ,1-15,3% Other receivables and other assets 199,0 198,7 0,2% Receivables from the sale of discontinued operations 1.108,1 0,0 n. a. Current income tax assets 139,9 34,9 300,9% Marketable securities 741, ,3-34,0% Cash and cash equivalents 2.585, ,1 18,0% Assets held for sale 171,5 333,8-48,6% 1) restated 7

8 8 HOCHTIEF Group balance sheet (equity and liabilities) Shareholders equity: Changes in fair value of financial instruments and actuarial gains and loses, f/x, others: EUR -376m Earnings after taxes: EUR 406m Dividend payments: EUR -212m (HOCHTIEF and minority shareholders) Minority interest: decrease relates to stake increase in LEI Equity ratio: 20% (end 2013: 22%) Non-current liabilities: Provisions for pensions: increase reflects change in discount rate from 3.5% to 2.0% Financial liabilities: mainly issue of EUR 500m corp. bond Current liabilities: Financial liabilities: increase relates to reclassification from non-current and f/x effects Trade payables and other liabilities: increase due to f/x countered by decrease related to Leighton asset sale Assets held for sale: LEI mining assets (Indonesia) HOCHTIEF Group (EUR million) Total liabilities and shareholders equity FY 2014 FY ) , ,1 1,8% Shareholders' equity 3.111, ,7-5,5% Attributable to the Group 2.178, ,6-3,9% Minority Interest 933, ,1-9,2% Non-current Liabilities 3.982, ,7 10,1% Provisions for pensions & similar obligations 378,7 242,5 56,2% Other provisions 449,9 505,3-11,0% Financial liabilities 3.073, ,2 13,8% Other liabilities 33,2 42,6-22,1% Deferred tax liabilities 47,1 126,1-62,6% Current Liabilities 8.125, ,7 1,1% Other provisions 1.156,1 921,2 25,5% Financial liabilities 982,4 726,8 35,2% Trade payables 5.513, ,4-5,7% Other liabilities 399,6 460,8-13,3% Current income tax liabilities 10,7 15,4-30,5% Liabilities associated with assets hold for sale 63,3 68,1-7,0% 1) restated D % FY

9 Achievements Work in progress : Further delivery of strategy, improved performance Closing sale of aurelis Sale of Streif Project Services New structure in Europe 69,6% stake in Leighton (May) Implementing new Leighton structure Sale of HTPM Start HOT share buyback Sale of formart Sale of Offshore March 14 June 14 Oct 14 Dec 14 Improved operational profitability Positive trend in all divisions Change of structure Leighton JV for Services in Australia Sale of John Holland Delivering for all shareholders HOCHTIEF further improved structure and performance Focus on cash drivers Risk Management Further net debt reduction Improved cash and working capital management Ongoing optimization Best-in-class RM to reduce earnings volatility

10 Special topic Leighton strategic review Strategic objectives Streamline operating model Group similar activities Review support functions and corporate structure Pursue additional cost savings Achievements Operating model transformed 4 focussed companies Leighton Holdings Construction Mining PPPs Engineering Strengthen balance sheet Better working capital management on projects Maintain focus on recovery of existing receivables Analyze options for divestments or partnerships Improve project delivery Focus on risk management Further development of entrepreneurial approach Overheads and bureaucracy reduced Balance sheet deleveraging with gearing slightly below zero after divestments Balance sheet de-risked with $1.6 billion reduction in receivables after divestments since December 2013 Engineering business harnessing Group s expertise Stricter risk criteria for onboarding work Outlook: Constant optimization of structure and processes 10

11 11 San Diego International Airport Volume EUR 800 Mio. Duration MarbleStreeetStudio.com

12 HOCHTIEF Americas Very successful results Outstanding building construction development Margin improvement at Turner New orders reached peak (tripled at Flatiron) Work done on record level Outlook 2015: Assuming a stable US dollar exchange rate in 2015, we target an operational pre-tax profit of 130 million to 160 million euro compared to 118 million euro in (EUR m) 2013* (EUR m) Change yoy Operational EBIT 1) % EBIT % Operational Net profit 1) % Net profit % Cash flow from Operations % New orders 10, , % Work done 9, , % Order backlog 11, , % * Restated for IFRS 11 1) Operational figures excluding one-off impacts and adjusted for f/x-effects 12

13 13 SR 16 causeway, New Zealand Volume EUR 141 Mio. Duration Greg Kempthorne

14 HOCHTIEF Asia Pacific Significant progress on restructuring initiatives Divestments deleveraged and de-risked balance sheet Net cash position Strong pipeline of tenders Outlook 2015: For 2015 Leighton expects a net profit of AUD m which is an increase of 10-25% like-for-like 2014 (EUR m) 2013* (EUR m) Change yoy Operational EBIT 1) % EBIT % Operational Net profit 1) % Net profit % Cash flow from operations % New orders 8, , % Work done 12, , % Order backlog 20, , % * Restated for IFRS 11 1) Operational figures excluding one-off impacts and adjusted for f/x-effects 14

15 15 Reading Station Volume EUR 47 Mio. Duration Network Rail

16 HOCHTIEF Europe Firm improvement at Cash flow (Euro 325 million) and at operational result (Euro 38 million) New orders +18% like-for-like Outlook 2015: We expect the current positive trend in operating results to continue in (EUR m) 2013* (EUR m) Change Operational EBIT 1) % EBIT % Operational net profit 1) % Net profit % Cash flow from operations % New orders 2, , % Work done 2, , % Order backlog 3, , % * Restated for IFRS 11 1) Operational figures excluding one-off impacts and adjusted for f/x-effects 16

17 Shareholders Participation Free float; 27,9% incl. 1.2% treasury stock as of December 31, 2014 Dividend per share in EUR , , , % * 0.20* 1.70* Special dividend Qatar Holding; 11,1% ACS (Actividades de Construcción y Servicios S.A., Madrid); 61,0% 0, , Dividends paid in EUR m * * Proposal 17

18 Group Outlook In 2015, HOCHTIEF expects to achieve further progress with an operational net profit in the range of EUR million. This means an like-for-like increase by 15-35%. We anticipate that this will be achieved with improved profit margins in all our divisions despite lower revenues due to divestments in Europe and Asia- Pacific. Divested earnings (Leighton asset disposals) ~ % Op. net profit EUR m De-risked balance sheet Improved earnings quality E 18

19 Oli Keinath 19 MY PROFIT OUR SUSTAINABILITY Johnny Greig Business Results Press Conference 2015

20 Oli Keinath 20 MY PROFIT OUR SUSTAINABILITY Johnny Greig See you again at the General Shareholders Meeting on May 6, 2015!