MY GOTTHARD OUR PASSION. Analysts and Investors Conference Call; First half results July 2016

Transcription

1 Analysts and Investors Conference Call; First half results July 2016 MY GOTTHARD OUR PASSION HOCHTIEF HOCHTIEF Marcelino Fernández Verdes, CEO Peter Sassenfeld, CFO Mike Pinkney, Head of Capital Markets Strategy Ulrike Kröner, Head of Investor Relations 1

2 Table of contents 2016 pages 3-13 Appendix 2016 pages

3 (EUR m) (EUR bn) (EUR m) (EUR m) (EUR m) HOCHTIEF Group 2016 Highlights % 160 1) Operational net profit of EUR 160m +25% yoy; Q2 EUR 88m +29% yoy Nominal net profit EUR 140m up 30% yoy Operational PBT margin at 3.5%, +60bps yoy; all divisions show an increase Lower operating costs, reduced financial costs and improved project performance 2) Net cash flow from op. activities EUR 312m in Q2, EUR 974m LTM Consistently converting profit into cash; LTM EBITDA cash conversion 90% Further improvement of capex mgmt: net capex reduced by EUR 47m yoy 3) Net cash stands at EUR 113m, up an underlying EUR 675m yoy Improvement of EUR 88m qoq Net cash per 2016 stands at EUR 808m, if adjusted by non-underlying effects LTM 4) New orders EUR 13.2bn +12% yoy; order backlog EUR 38.8bn, +6% YTD Steadily increasing order backlog of EUR 38.8bn, +6% ytd, +3% yoy New orders up by 12% to EUR 13.2bn Revenue trend reversing; Q up 12% vs Q1 '15 ' Q1 '16 Q2 '16 LTM '15 '16 +6% ) FY 2016 op. net profit guidance of EUR m confirmed (+15-35% yoy) Strong tender pipeline in all markets Financial strength provides flexibility to pursue new opportunities by expanding within existing but also complementary markets Dec' 15 Mar' 16 Jun' % Op. net profit FY '15 FY '16E 3

4 1) HOCHTIEF Group 2016 key highlights HOCHTIEF Group: Key figures* (EUR million) 2016 change yoy in % change yoy in EURm Q Q2 FY Sales 9, , % -1, , , ,096.6 Operational profit before tax/pbt 1) % Operational PBT margin in % 1) Operational net profit 1) % Operational earnings per share (EUR) 1) % EBITDA % ,142.5 EBITDA margin in % Profit before tax / PBT % Net profit % Earnings per share (EUR) % Net cash from operating activities % ,135.2 Gross operating capital expenditure % Free cash flow from operations ,271.1% Net cash (+)/net debt (-) % New orders 13, , % 1, , , ,263.4 Order backlog (yoy) 38, , % 1, , , ,717.0 Order backlog (ytd) 38, , % 2, , , ,717.0 Employees (at period end) 2) % * All figures are nominal unless otherwise indicated 1) Operational earnings are adjusted for deconsolidation effects and other one-off impacts 2) Employees per end Q1 2016:

5 2.1) HOCHTIEF Group Cash Flow performance Cash Flow components HOCHTIEF Group (EUR million) 2016 D Q Q2 D Q2 LTM 2016 FY Net cash from operating activities pre net working capital change Net working capital change Net cash from operating activities ,135.2 Gross operating capital expenditure Operating assets disposals Net operating capital expenditure Free cash flow from operations Other investments (-) / divestments (+) Free cash flow (w/o change in current marketable securities) , ,899.9 Net cash flow from op. act. in 2016 down EUR -161m yoy to EUR -57m due to working capital effects in Q2 mainly at CIMIC Significantly improved op. CF pre NWC development in Q (EUR +49m yoy) Seasonal NWC outflow further improved in Q but impacted at CIMIC by large amount of property sales in comparable period and project timing and milestone payment effects in 2016 In LTM, Net Cash flow from ops of EUR 974m generated and NWC cash inflow of EUR 227m Further improvement capex mgt. net op. capex down EUR 47m yoy, driven by CIMIC Other in-/divestments in driven by John Holland and Services divestments at CIMIC 5

6 2.2) Cash seasonality and conversion EURm Net cash from operating activities 1,200 1,135 1, % EBITDA cash conversion 99% 90% % % % approx. -57 FY 0% FY FY LTM 2016 LTM * * = FY 2016 is LTM per EBITDA (in EURm) (1) 1,143 1,082 Net cash from operat. act. (in EURm) (2) 1, EBITDA conversion rate (in %) (2:1) 99% 90% in any given year is impacted by seasonal cash outflow, related to working capital 2016 at EUR -57m net cash flow from op. activities better than prior years boosted by large one-off impacts from prop. development sales and initial effects of new NWC strategy esp. at CIMIC HOCHTIEF well on track to achieve high positive net cash from op. activities in remainder of 2016 HOCHTIEF Group achieving consistently high cash conversion ratios of % in /

7 3) HOCHTIEF Group Strong underlying net cash development Net cash (+) / net debt (-) Underlying net cash improvement yoy 808 period end (EUR million) 2016 Q D qoq FY HOCHTIEF Group HOCHTIEF Americas HOCHTIEF Asia Pacific HOCHTIEF Europe Corporate Headquarters end end 2016 Nominal net cash Non-underlying items Net cash position of HOCHTIEF Group EUR 113m per end an improvement of EUR 88m qoq Underlying net cash at EUR 808m, an improvement of EUR 675m yoy, if adjusted for shareholder remuneration and acquisitions:: Q2 16: HOT and CIM dividend to external shareholders (EUR 159m) Q1 16: CIMIC s acquisitions of Sedgman and Devine (EUR 52m); CIMIC and HOT share buyback programs (CIMIC: EUR 178m; HOT: EUR 80m) Q4 15: CIM dividend, HOT share buyback (EUR 100m) Q3 15: HOT share buyback (EUR 127m) 7

8 1.7.1 HOCHTIEF Group Firm Order Book: Major Project Announcements ytd Tolled Highway, USD 143m Data Center Tray Construction, EUR 34m Tunnel, EUR 128m Hotel, EUR 43m Road Construction, EUR 24m Tunnel, EUR 31m Office Building, EUR 20m Apartment building Control tower, USD 52m Stadium Office tower, USD 91m Office Building, USD 60m Harbor Bridge, USD 402m New Orders: EUR 13.2bn Residential Building Academy, USD 114m 5 Office towers Conf. Center, USD 70m Museum Center, USD 150m Clinic 2 Hospitals Mixed-use Building, AUD 223m Coal Mine, AUD 180m Gold and Copper mine, AUD 130m 1) Boundary Crossing, AUD 123m Garden of Remembrance, AUD 320m Maintenance/Constr. Air Force Base Highway, AUD 160m Light Rail Gold Coast, AUD 200m Light Rail Canberra (PPP), AUD 600m Freight Link Network Services, AUD 350 m 2) 1) JV project, Share Thiess AUD 104m 2) JV project, Share Visionstream/Ventia AUD 175m Level Crossing Removal, AUD 500m Hospital, NZD 300m 8

9 4.2) HOCHTIEF Group Order book New orders (EUR bn) Order backlog (EUR bn) % % M FY Q New orders up strongly in % yoy HTAM increased by 34% yoy, driven by continuation of Turner s new order increase in Q CIMIC s new work won on similar level as prior comparable period* New orders at HT Europe decreased yoy by EUR 0.7bn, but largely stable yoy if adjusted by the large Saudi Arabian Airport project win at Infrastructure in Q1 Order backlog, EUR 38.8bn continues to increase in 2016 (+6% ytd, +3% yoy; f/x-adjusted +7% ytd, +4% yoy) * New orders at HTAP +5% yoy 9

10 Divisions: HOCHTIEF Asia Pacific (incl. CIMIC (AUD m) and associated holding companies) Essentials CIMIC Financials CIMIC CIMIC Results: NPAT up 3.1% yoy, margin up 180bp yoy EPS up 5% yoy boosted by benefits of share buyback EBIT and PBT margins up 120bp and 200bp yoy Revenue down 31%; 6% increase in Q2 vs. Q1, positive trend emerging Net cash: positive at AUD 12m, a AUD 227m improvement yoy and AUD 117m qoq Would have been AUD 355m adj. for cash outflow from share buyback & acquisition Sedgman/Devine Cash flow generation LTM: Op. cash flow: nearly AUD 1.2bn Free cash flow: nearly AUD 830m LTM EBITDA conversion: 97% 14) New orders / order backlog: Steadily improving, up nearly 2% since Dec CIMIC Outlook confirmed 2016E: NPAT of AUD m 13) compared to AUD 520m in (subject to market conditions) 13) subject to market conditions 14) Cash flow from op./ebitda=1,164/1,206 (AUD m) 2016 % change abs. change FY Group revenue 6, , % 16,218.7 Revenue - JV and associates 1, , % 2,848.0 Revenue 4, , % 13,370.7 Interest revenue % Revenue excl. interest 1 4, , % -2, ,280.8 EBIT % EBIT margin 2 7.3% 6.1% 120bp 6.3% Net fnance costs % PBT % PBT margin 2 7.1% 5.1% 200bp 5.5% Income tax % Profit for the period % Non-controlling interests NPAT % NPAT margin 2 5.4% 3.6% 180bp 3.9% Earnings per share 79.8c 76.0c 5.0% 3.8c 153.7c (AUD m) June 2016 March 2016 Dec Sep June March Cash flow from operating activities , Interest, finance, tax & divid. received Net cash from operating activities Gross capex Free operating cash flow (AUD m) 2016 % change abs. change FY Net cash/(debt), excl. op. leases % ,111.5 Operating leases % Net cash/(debt), incl. op. leases Gearing 6-0.3% 5.3% % Net contract debtors 10 1, , % ,499.2 (AUD m) 2016 % change abs. change FY New work 7 6,809 6, % 14,131 (AUD m) June 2016 March 2016 Dec Sep June March Total work in hand 8 29,555 29,085 29,004 29,502 29,267 28,844 10

11 Divisions: HOCHTIEF Americas Essentials Results: Op. PBT EUR 113m +33% yoy driven by improved earnings at Turner and Flatiron; PBT margin up 40bps to 2.1% Op. net profit +42% (EUR 68m) EUR 171m turnaround in Net cash from op. activities to a positive EUR 92m Net cash of EUR 604m strongly improved by EUR +266m yoy and EUR +31m ytd, Turner with strongly improved working capital management in Q New orders / order backlog: New orders +34% yoy, new record level for first half of any year, mainly due to the continuation of very strong Turner Order backlog +14% ytd and +12% yoy, new record level (EUR million) 2016 change yoy in % change yoy in EURm Operational profit before tax/pbt 1) % Operational PBT margin in % 1) Operational net profit 1) % EBITDA % EBIT % Profit before tax / PBT % Net profit % Net cash from operating activities % Gross operating capital expenditure % Net cash (+) / net debt (-) (incl. divestment % Total sales / divisional sales 5, , % , , ,354.4 New orders 7, , % 1, , , ,829.3 Work done 5, , % , , ,874.9 Order backlog (yoy) 14, , % 1, , , ,859.5 Order backlog (ytd) 14, , % 1, , , ,859.5 Employees (at period end) % Outlook confirmed Financials Q Q2 FY 2016E: Operational PBT of EUR m compared to EUR 160m in 11

12 Divisions: HOCHTIEF Europe Essentials Results: Progress continues; EUR 7m increase yoy to EUR 17m in op. PBT; margins 110bps up to 2.4%; in particular improving performance at construction business Net cash from operational activities shows underlying improvement adj. for lower contribution from non-core Real Estate business New orders / Order backlog: New orders stable yoy if adj. for large project win in Saudi Arabia in. Order backlog: EUR 4.3bn solid level, in line end- (EUR million) 2016 Financials change yoy in % change yoy in EURm Operational profit before tax/pbt 1) % Operational PBT margin in % 1) Operational net profit 1) % EBITDA % EBIT % Profit before tax / PBT % Net profit % Net cash from operating activities % Gross operating capital expenditure % Net cash (+) / net debt (-) % Total sales / divisional sales % ,660.2 New orders , % ,677.0 Work done % ,066.4 Order backlog (yoy) 4, , % , , ,390.4 Order backlog (ytd) 4, , % , , ,390.4 Employees (at period end) % Q Q2 FY Outlook confirmed 2016E: Operational PBT of EUR 20-35m compared to EUR 16m in 1) Operational earnings are adjusted for deconsolidation effects and other one-off impacts 12

13 5) HOCHTIEF Group guidance confirmed Op. net profit 1) guidance 2016: Positive outlook: (EUR m) % Op. net profit Transformation of HOCHTIEF is approaching completion Strengthening balance sheet, restructuring and reorganizing businesses Focusing on core activities Developing and embedding a Group-wide culture which is focused on sustainable, cash-backed profits Implementation of a tighter approach to Risk Management HOCHTIEF now well positioned to take advantage of organic and market growth opportunities Strong tender pipeline in all divisions for 2016 and thereafter Global PPP opportunities Strategic growth opportunities, e.g. Sedgman Capital Management HOCHTIEF share buyback: EUR 80m spent in Q CIMIC share buyback: AUD 266m spent in Q HOCHTIEF ordinary dividend of EUR 2.0 / share (+18% yoy) 1) op. net profit excludes non-op. items such as restructuring charges and is adjusted for disposals 13

14 HOCHTIEF CZ Appendix: 2016 Inova Fairfax South Patient Tower Falls Church, VA, USA Turner Construction Company Al Hamra Tower, Kuwait City, Kuwait Turner Construction Company Thiess Metro Alliance wastewater treatment plants, Perth, WA, Australia Metro Prag, Czech Republik 14

15 HOCHTIEF Group Statement of earnings Sales -13% yoy, adjusted for f/x -11%; decline mainly at CIMIC; 95% of total is non-domestic Personnel costs decreased mainly at CIMIC Group (project related reduction and reduced overheads) Net income from participating interests: Americas EUR 31m (/15: EUR 24m) Asia Pacific EUR 42m (/15: EUR 14m) Europe EUR 29m (/15: EUR 48m) Depreciation and amortization: decline in line with reduced capex at CIMIC Net investment, interest and other income: optimization of financing structure and debt reduction with reduced bank loans and bonds leads to lower interest expenses Non-recurring items: mainly subsequent cost related to restructuring at CIMIC HOCHTIEF Group (EUR million) Sales 9, , % Change in inventories % Total Revenues 9, , % Materials -6, , % Non-recurring items (a) n. a. Personnel costs -1, , % Non-recurring items (b) % Other operating income % Adjustment other operating income for EBITDA (g) % Non-recurring items (c) n. a. Other operating expenses % Adjustment other operating expenses for EBITDA (h) % Non-recurring items (d) % Net income from participating interests % Adjustment of income from Assoc. at equity & other inc. from invest. (i) % Non-recurring items (e) n. a. EBITDA % Depreciation and amortization % Non-recurring items (f) n. a. EBITA / EBIT % Net investment and interest income % Non-recurring items (a+b+c+d+e+f) % Other income / expenses (mainly from deconsol. & valuation) (g+h) % Income from Assoc. at equity & other inc. from invest. (i) % Profit before tax / PBT % Taxes % Taxerate (taxes / PBT in %) Profit after tax % thereof: Consolidated net profit % thereof: Minority interest % 2016 D % 15

16 HOCHTIEF Group One-off reconciliation 16

17 HOCHTIEF Group Balance sheet (assets) Non-current assets: Intangible Assets: increase mainly due to first time consolidation of Sedgman PP&E: of which approx. 80% CIMIC; reduction due to reduced capex Equity method investments: decline mainly due to change in Sedgman s consolidation (now fully consolidated) Financial receivables: comprise mainly loans to participations of CIMIC and PPP projects Deferred tax assets: decline mainly due to change of temporary differences at CIMIC Current assets: Financial receivables: mainly due to increase of receivables from participations and Pension Trust Trade receivables: increase mainly at CIMIC Marketable sec.: decline due to sale of securities at Corp. HQ Cash and cash equivalents: Reduction due to seasonality, HOT and CIM share buyback programs, dividends and takeovers of Sedgman and Devine Assets held for sale: related to CIMIC mining assets (Indonesia) HOCHTIEF Group (EUR million) 2016 FY D : FY Assets 12, , Non-current assets 3, , Intangible assets Property, plant and equipment 1, , Investment properties Equity-method investments Other financial assets Financial receivables Other receivables and other assets Income tax assets Deferred tax assets Current assets 8, , Inventories Financial receivables Trade receivables 4, , Other receivables and other assets Income tax assets Marketable securities Cash and cash equivalents 2, , Assets held for sale

18 HOCHTIEF Group Balance sheet (equity and liabilities) Shareholders equity: Profit after taxes: EUR 189m Dividends: EUR -181m Share buyback: EUR -256m (thereof -176m CIMIC and -80m HOCHTIEF Aktiengesellschaft) Changes in fair value of financial instruments and actuarial gains and losses, f/x, others: EUR -255m Equity ratio: declined to 21% (end : 24%) Non-current liabilities: Provisions for pensions: increase due to lower discount factor for calculation of pension obligations Financial liabilities: decrease due to transfer of a EUR 500m HOCHTIEF bond into current liabilities because of maturity in March 2017 Current liabilities: Other provisions: decrease vs. end related mainly to lower personnel related and tax provisions Financial liabilities: increase due to transfer of a EUR 500m HOCHTIEF bond into current liabilities because of maturity in March 2017 HOCHTIEF Group (EUR million) Liabilities and shareholders equity 2016 FY D : FY 12, , Shareholders' equity 2, , Attributable to the group 1, , Minority interest , Non-current liabilities 2, , Provisions for pensions and similar obligations Other provisions Financial liabilities 1, , Other liabilities Deferred tax liabilities Current liabilities 7, , Other provisions Financial liabilities Trade payables 5, , Other liabilities Income tax liabilities Liabilities associated with assets held for sale

19 (EUR m) HOCHTIEF Group capital structure 2016 Net debt calculation: 1,000 Debt Maturity proile: 2) Other financial liabilities Amounts due to banks 1) Bonds or notes issued ) Amounts due to banks incl. various ongoing and also revolving project financings 2) w/o EUR 66m until-further-notice facilities 19

20 HOCHTIEF Group Cash Flow reconciliation Group Cash Flow statement amended Group Cash Flow statement as reported 20

21 Recent Major Project Announcements 2016 ytd (I) Project name & place Segment Division Vol local currency (in million) Volume EUR m Harbor Bridge replacement project, Corpus Christi, Texas, USA Civil/Infrastructure HT Americas USD Level Crossing Removals, Melbourne, Australia Civil/Infrastructure HT Asia Pacific AUD Christchurch Hospital, New Zealand Building HT Asia Pacific NZD 300m 183 Union Terminal Renov. & Rehabilitation, Museum Center, Cincinnati, Ohio, USA Building HT Americas USD Gold Coast light rail (Stage 2), Australia, QLD Civil/Infrastructure HT Asia Pacific AUD C-470 Tolled Highway, Express Lanes, Segment 1, Denver, CO, USA Civil/Infrastructure HT Americas USD Tunnel Stellingen, A7 highway, Hamburg, Germany Civil/Infrastructure HT Europe EUR Bruce Highway Upgrade Sec. C, Australia, QLD Civil/Infrastructure HT Asia Pacific AUD Tollman Hall Seismic Replacement Phase I, office tower, Berkeley, CA, USA Building HT Americas USD Boundary Crossing, Hong Kong Building HT Asia Pacific AUD UC Davis North Addition, office building, Sacramento, CA, USA Building HT Americas USD SFO T2 Air Traffic Control Tower (ATCT) Demo & Imp., San Francisco, CA, USA Building HT Americas USD GWW Ohu - BW 47-3, tray construction, Germany Civil/Infrastructure HT Europe EUR Tunnel Trimberg, road tunnel construction, Germany Civil/Infrastructure HT Europe EUR LOCROS 1S, railway station, UK Civil/Infrastructure HT Europe GBP A5 road construction, Austria Civil/Infrastructure HT Europe EUR Office building Bobrowiecka 8 Warsaw, Poland Building HT Europe PLN Praha - ÚÈOV - Sdruž.monolit.konstrukce, water treatment plant, Czech Republic Civil/Infrastructure HT Europe CZK Hamburg Heights, Germany Building HT Europe EUR Mošnov, MOBIS - Mechanical works & extern. Civil works, production plant, Czech Republic Building HT Europe CZK Bloomberg 919 Third Ave Infrastructure, office building, New York, USA Building HT Americas Bloomberg 919 Third Ave Fitout, office building, New York, USA Building HT Americas Celgene Building J & Fitness Center, office building, Summit, NJ, USA Building HT Americas ONE Citi General Conditions 388/390 Greenwich St., office building,, New York, USA Building HT Americas Fan Pier Parcel D, residential building, Boston, MA, USA Building HT Americas ATN-3 Data Center Phase I, Altoona, IA, USA Building HT Americas confidential confidential confidential confidential confidential confidential Perth Freight Link, Australia Civil/Infrastructure HT Asia Pacific C-17 Maintenance, construction of new facilities at Air Force base, Australia, QLD Building HT Asia Pacific Q1 21

22 Recent Major Project Announcements 2016 ytd (II) Project name & place Segment Division Vol local currency (in million) Volume EUR m Canberra Light Rail Stage One (PPP), D&C and Concession, Australia, Canberra Civil/Infrastructure HT Asia Pacific AUD Telstra Network Integrity and Facilities Management Contract (JV project) Maintenance HT Asia Pacific AUD Construction of a Columbarium and a garden of Remembrance Building HT Asia Pacific AUD Premium retail and hospitality development, Mumbai, India Building HT Asia Pacific AUD Prince George's Conference Centrer Queen Anne, Largo, MD, USA Building HT Americas USD Hamburg Heights, Hamburg, Germany Building HT Europe EUR Proximo Office in Warsaw 2 stage, Warsaw, Poland Building HT Europe PZN RB Campus Maschinenbau Garbsen, university building, Garbsen, Germany Building HT Europe EUR Football Stadium, Los Angeles, CA, USA Building HT Americas ProMedica Patient Tower, Toledo, OH, USA Building HT Americas NYPH Womens Hospital Fit-Out, New York, NY, USA Building HT Americas Greenpoint - Building G1 / 37 Blue Slip, New York, NY, USA Building HT Americas confidential confidential confidential confidential Q2 22

23 HOCHTIEF Asia Pacific Map of CIMIC activities Brisbane Airport Link, Brisbane, QLD, Australia Thiess Queensland Curtis LNG, Surat Basin, NSW, Australia Thiess Leighton Properties King George Office Tower, Brisbane, QLD, Australia 23

24 HOCHTIEF Asia Pacific CIMIC Revenue analysis 2016 / 2016: Revenue by segment (AUD 6.3bn 1) ): Revenue by region: 4% 27% 69% Construction Mining & mineral processing 40% Domestic International Commercial & residential 60% : Revenue by segment (AUD 8.7bn 1) ): Revenue by region: 7% 22% Construction Mining & mineral processing 34% Domestic International 71% Commercial & residential 66% 1) Including revenue from associates and joint ventures 24

25 HOCHTIEF Asia Pacific CIMIC Order backlog analysis 2016 / 2016 by segment (AUD 29.6bn): 2016 by region: 11% 3% 7% 45% 34% 34% 66% by segment (AUD 29.3bn): Construction Mining & mineral processing HLG by region: Domestic International Commercial & residential 11% Corporate 7% 8% 42% 40% 60% 32% 1) 1) Has been restated to include Sedgman, 15: AUD 157m being reclassified from corporate 25

26 HOCHTIEF Asia Pacific CIMIC CIMIC broadly positioned in Gulf through Habtoor Leighton Group (HLG) Habtoor Leighton Group s Gulf presence Manama, Bahrain Kuwait Habtoor Leighton Group (HLG): 2007 Leighton merged its operations in the Arabian Gulf with Al Habtoor Engineering to create one of the largest multi-disciplined contracting groups in the Gulf Riyadh, RSA Doha, Qatar Abu Dhabi, UAE Dubai, UAE Muscat, Oman Shareholder structure: CIMIC stake 45% Al Habtoor Engineering 55% Diversification of client and geographic base through contract wins HLG Key Figures (45% stake) HLG offers long-term growth opportunities in Middle East and North Africa. (AUD m) 2016 Revenues PBT Work in hand 1,968 2,353 Source: CIMIC publications 26

27 HOCHTIEF Asia Pacific Essentials Financials Results: CIMIC in AUD with solid results, further margins improvement and positive revenue trend in Q2 Similar trend at divisional level HOCHTIEF Asia Pacific, although effected by f/x Nominal net profit up 2% to EUR 92m 170bp PBT margin increase (EUR million) 2016 change yoy in % change yoy in EURm Profit before tax / PBT % PBT margin in % Net profit % Net cash (+) / net debt (-) % Total sales / divisional sales 3, , % -1, , , ,946.1 Order backlog (yoy) 19, , % , , ,470.0 Order backlog (ytd) 19, , % , , ,470.0 Employees (at period end) % Q Q2 FY New orders / order backlog: New orders yoy up 5% Solid order book of EUR 19.8bn Outlook confirmed 2016E: NPAT of AUD m 1) compared to AUD 520m in 1) subject to market conditions 27

28 Turner Construction Company David Magnusson HOCHTIEF Americas New Central Library San Diego, CA, USA Santa Margarita River Bridge, CA, USA Inova Fairfax South Patient Tower Falls Church, VA, USA Turner Construction Company Oakland Airport Connector Oakland, CA, USA Flatiron/Duwayne Bahnsen 28

29 HOCHTIEF Americas Segmental overview: Building Segment-specific expertise and nation-wide network provide competitive advantage Work done 2016, EUR 5.0bn Order backlog end 2016, EUR 12.4bn Strong reputation as construction manager provides quality contracts from repeat customers: limited risks, low fixed costs, low capital intensity Market Leader in sustainable construction (Green Building) 1) 6% 5% 2%6% 16% 6% 1% 21% 11% 4% 35% 10% 23% 16% 12% 26% Work done, EUR 4.7bn Order backlog end, EUR 10.6bn 8% 8% 5% 7% 4% 3% 3% 7% 13% 33% 22% 12% 10% Transportation/Misc Commercial/Data/Retail Education/R&D Healthcare Hotel/Residential Industrial Public/Justice Sports/Entertainment 20% 11% 34% 1) Source: latest ENR ranking 29

30 HOCHTIEF Americas Segmental overview: Civil Flatiron: active in Western parts of the US and Canada Additional footprint in Eastern US infra market through E.E. Cruz, New York region Work done 2016, EUR 0.5bn 6% 1% 2% 0% Order backlog end 2016, EUR 2.3bn 4% 2% 3% 8% 25% 41% 25% 58% Transmission Work done, EUR 0.4bn 0% 5% 3% 5% 9% Order backlog 25% end, EUR 2.5bn 0% 1% 1% 6% Highway Bridges Transit Airports Water Others 15% 24% 50% 61% 18% 30

31 HOCHTIEF Europe Deublin Europazentrale, Mainz, Germany HOCHTIEF Claus Graubner Tower 185, Frankfurt am Main, Germany Airport Breslau, Poland HOCHTIEF Wright Robinson College, Manchester, UK 31

32 HOCHTIEF Europe Segmental breakdown New Orders: 2016: EUR 878m : EUR 1,602m % % % 81 5% 1,297 81% Order backlog: 2016: EUR 4,308m *) : EUR 4,383m % % 2,806 65% % % 3,149 72% Sales: 2016: EUR 704m % : EUR 807m % % % % % Infrastructure Building Others Total division figures incl. consolidation 32

33 HOCHTIEF Europe: PPP General market overview PPP Canada: one of the most mature PPP markets in the world; strong pipeline in transportation and social infrastructure, currently greater focus on transport; announcement of a ten-years CAD 120bn infrastructure plan, CAD 60bn for new infrastructure; less closings in 2016 expected, but strong pipeline in 2017/18 expected USA: growing pipeline, but still relative slow and developing market; highways continue to dominate the PPP market; disappointing development in social infrastructure; USD 305bn five-year highway bill signed in Dec ; expected growth in midterm, esp. in transportation Germany: growing infra. market; government program of 11 PPP roads, inv. vol. EUR 14bn (construction + operation & maintenance EUR 7bn each), with 2-3 new roads procurements each year until end of 2019; deal size slightly up in social infra., but still comparably small Netherlands: mature market; stable deal-flow in transport expected to continue, esp. in roads and sea locks; need for new social infrastructure less than need for new transportation UK: largest market in Europe in past years; number of projects planned in 2016, but continuously delays, esp. transportation projects; unknown consequences due to Brexit Ireland: mature market; the Capital Plan for commits EUR 500m to new social infrastructure projects in justice, education and healthcare sector Scandinavia: developing market, esp. Norway; first project to be announced in H2 CEE: developing markets; CZ focus on transport and social infra. sector; 1 road project scheduled in H2 2016; PL PPP sector moving slowly; small social infra. projects; market may grow midterm due to the EU multiannual financial framework; SK limited experience with PPP; 1 project Financial close achieved; consider further major road PPP 33

34 HOCHTIEF Europe: PPP Market opportunities PPP Solutions Transportation North America: total potential investment volume of EUR 13bn for the next two to three years (2/3 Canada and 1/3 US) Germany: total potential investment volume of EUR 6.7bn for the next two to three years Netherlands: two major projects in preparation, EUR 2.0bn until 2018 Belgium: Ring road Brussels in preparation, EUR 0.4bn UK&Ireland: few in short term, but potential investment volume of ~EUR 10bn in the next three years; unknown consequences due to Brexit Scandinavia: developing markets; esp. Norway & Finland; market is being monitored, first project identified in Norway Central Eastern Europe: developing markets, one project in the Czech Republic identified with expected investment volume of EUR 0.3bn Social Infrastructure Germany: potential investment volume of ~EUR 0.7bn in the next two years; this is to increase in the mid-term North America: potential projects identified, currently greater focus on transportation Netherlands: target market; further projects to be identified UK: expected investment volume of ~EUR 1.6bn in the next four years; unknown consequences due to Brexit Poland: target market; further projects to be identified Tender pipeline: Transportation: 4 projects Social Infrastructure: 6 projects Motorway A 7, Hamburg, Germany DEGES/V-KON.media 34

35 HOCHTIEF Europe: PPP PPP Schools, Frankfurt/Main, Germany HOCHTIEF 35

36 HOCHTIEF Europe: PPP Wright Robinson College, Manchester, UK HOCHTIEF HOCHTIEF 36

37 HT Europe Real Estate business line Sale of Real Estate ongoing process Real Estate Solutions HTP formart aurelis HTP trader developer (FY ): Project financing incl. EUR 55m nonrecourse debt 16 projects in realization 68% pre-sold, 65% pre-let Regional split of EUR 436m net assets Domestic: EUR 191m (44%) Int l: EUR 245m (56%) Capital employed (EUR m) Split by type of asset (% of total investment volume): Company Net Assets 1) End End 2014 End % HTP formart sold 297 aurelis sold 185 7% 36% 44% Office Residential Other (Hotel, etc.) Retail 1) Net Assets = equity+debt+pension provisions 37

38 f/x rates and effects End of period: Q1 March 31, March 31, Change June 30, June 30, Change 2016 (%) 2016 (%) EUR/USD % EUR/USD % USD/EUR % USD/EUR % EUR/AUD % EUR/AUD % AUD/EUR % AUD/EUR % Period average: Jan- March 2016 Q1 Jan- March Change (%) Apr-June 2016 Q2 Apr-June Change (%) Jan-June 2016 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 % 38

39 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. 39

40 Financial Calendar and Contacts 3 November 16 Publication Interim Report Jan.-Sep PROVISIONAL 10 May 17 Annual General Meeting 2017 For further information please contact: Investor Relations HOCHTIEF Aktiengesellschaft Opernplatz Essen, Germany Phone: Fax: investor-relations@hochtief.de Mike Pinkney Ulrike Kröner Nadine Wärmer Martina Horst 40