Analysts and Investors Conference Nine-month results 2012 November 7, 2012 Peter Sassenfeld, CFO. Turning Vision into Value.

Transcription

1 Analysts and Investors Conference Nine-month results 2012 November 7, 2012 Peter Sassenfeld, CFO

2 Essentials nine-month period 2012 Positive EBT contributions by all divisions Progress on loss making projects: APL: project handed over VDP: operational and ramping up production; full capacity by year-end Elbphi: Negotiations ongoing re reorganization of project structures Value realization & reduction of capital intensity; focus on key competencies Sale of Thiess Waste Mgmt and VNE toll road Leighton exploring potential disposal of telecommunications assets Earnings guidance 2012 confirmed; backlog & sales expectation increased 2

3 HOCHTIEF Americas Essentials Strengthened market position through Clark Builders acquisition (Canada), consolidation as of January 1, 2012 Comments on financials: New orders / order backlog: f/x adjusted +10.1% / +10.0% EBT: f/x adjusted -57.9%; unusually high level 2011 incl. pos. nonrecurring effect from risk provision release that was not longer required; civil segment below expectations (individual project earnings; low capacity utilization) Capex: 2012 figure incl. Clark Builders acquisition Financials Jan-Sep (EUR m) % FY 2011 New orders 6.092, ,1 21, ,5 Order backlog 9.708, ,2 16, ,9 Work done 5.919, ,9 23, ,5 Divisional sales 5.465, ,1 23, ,9 EBITA 58,7 115,0-49,0 148,4 EBT 51,4 111,3-53,8 142,4 EBT margin 0,9% 2,5% -62,5 2,3% Capex 91,6 47,5 92,8 55,2 Net assets 704,5 657,7 7,1 720,3 Outlook Expect continuation of good Q3 development for rest of 2012 EBT 2012E: again, good result expected; but below high level 2011 due to weaker civil segment 3

4 HOCHTIEF Asia Pacific Essentials Successful re strategy to reduce tied-up capital and refocus on core business: Financial close of Thiess Waste Mgmt sale in Q3 12; exploring sale of telco assets Comments on financials: New orders / order backlog: f/x adjusted +47.9% / +3.2%; particularly strong in infrastructure, energy, resources EBT: clear increase vs 2011 but still below normal level due to project burdens (APL/VDP) booked in Q1 12 (approx. EUR 200 m / AUD 254 m) Strong 9M increase in net debt mainly driven by outflows at APL and VDP projects as well as temporary working capital needs Financials Jan-Sep (EUR m) % FY 2011 New orders , ,3 61, ,8 Order backlog , ,4 15, ,1 Work done , ,1 29, ,7 Divisional sales , ,9 23, ,3 EBITA 380,7-222, ,2 EBT 258,2-300, ,4 EBT margin 2,4% -3,4% - -2,1% Capex 1.127, ,6 0, ,7 Net assets 4.537, ,0 27, ,1 Outlook Very high order backlog and strong position in promising markets EBT 2012E: more than EUR 300 m, not incl. nonrecurring items from sales of companies 4

5 HOCHTIEF Europe Essentials Positioned to offer comprehensive solutions: bldg construction & civil, PPP, real estate, services Successful sale of VNE toll road (Chile) Comments on financials: New orders: stronger Q3 but still below 2011 due to delays in property business and foreign markets EBT: positive impact from sale of VNE toll road (Chile); negative impact from provisions for one bldg project (Elbphilharmonie) as well as not fully covered overheads; 2011 incl. positive effects from risk provision releases and one-off gain from offshore resale Net assets: project portfolio of Real Estate Solutions as main component (EUR 1.3 bn) Financials Jan-Sep (EUR m) % FY 2011 New orders 2.031, ,9-13, ,1 Order backlog 6.039, ,5-1, ,4 Work done 2.411, ,7-5, ,3 Divisional sales 2.023, ,7-15, ,7 EBITA 42,2 84,7-50,2 47,1 EBT 3,3 42,0-92,1-9,0 EBT margin 0,2% 1,7% -90,7-0,3% Capex 97,9 51,0 92,0 75,7 Net assets 1.918, ,7-1, ,9 Outlook EBT 2012E: satisfactory result, following the additional expenses booked in Q2 12 5

6 HOCHTIEF AirPort Assets held for sale Essentials Interests in airports in Athens, Budapest, Düsseldorf, Hamburg, Sydney and Tirana With 71.5 m PAX in 9M 12 slight traffic reduction by -0.4% (excl. ATH/BUD +2.5%) Key figures / Financials Jan-Sep (EUR m) % EBITA EBT Comments on financials: Since Sept. 30, 2011 accounted for as noncurrent assets held for sale under IFRS 5, part of Headquarter/Consolidation; Athens since Q3 accounted for at-equity EBT: Airport s EBT on basis comparable to last year s accounting method would have been EUR 48.1 m (vs 9M 11: EUR 93.2; incl. release of risk provisions at DUS and BUD) Outlook Selling airports at attractive price remains clear strategic objective 6

7 Consolidated Group statement of earnings Jan-Sep (EUR m) % FY 2011 Sales 18, , ,282.2 Changes in inventories Materials -12, , ,572.3 Personnel costs -3, , ,863.6 Other operating income Other operating expenses -1, , ,792.9 Non-operating earnings Net income from participating interests EBITDA 1, 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: Increase by 17.5%; 93% of total is nondomestic Net income from participating interests: Americas: EUR 31.8 m (2011: EUR 34.5 m) Asia Pacific: EUR m due to VDP project losses (2011: EUR m) Europe: EUR 19.4 m (2011: EUR -4.7 m) Airports: EUR m (2011: EUR m;) Depreciation: in line with Capex growth Net investment and interest income: decrease due to higher interest expenses from increased borrowing Taxes: positive tax position 2011 mainly reflects project losses at Leighton leading to recognition of deferred tax assets 7

8 Consolidated Group balance sheet (assets) (EUR m) 30 Sep Dec 11 % Intangible assets 734,3 693,3 5,9 PP&E 1.889, ,1-15,4 Investment properties 21,2 21,7-2,3 At equity and other financial assets 1.224, ,2 11,5 Financial/other receivables, other assets 901,9 890,9 1,2 Deferred tax assets 305,2 274,7 11,1 Non-current assets 5.077, ,9-2,6 Inventories 1.417, ,8 10,1 Financial receivables 197,6 150,0 31,7 Trade receiveables 5.486, ,3 17,2 Other receivables and other assets 479,5 226,5 111,7 Current income tax assets 58,6 124,2-52,8 Marketable securities 597,6 392,8 52,1 Cash and cash equivalents 1.540, ,8-32,0 Assets held for sale 1.890, ,8 29,8 Current assets , ,2 10,3 Total assets , ,1 6,0 Non-current assets: Intangible assets: increase mainly reflects acquisition of Clark Builders PP&E: decrease largely due to reclassification of telco PP&E to assets held for sale At equity & other financial assets: increase mainly reflects reclassification of investment in Athens Airport from assets held for sale Current assets: Inventories: growth mainly due to increase in raw materials & work in progress at Asia Pacific and Europe Trade receivables: growth in line with business activities, mainly Asia Pacific Other receivables: increase mainly related to purchase price receivable from VNE sale, paid beg Oct 12 Cash and cash equivalents: decrease mainly at Asia Pacific (cash outflow for APL/VDP projects) and financing of further investments Assets held for sale: airport & telco business 8

9 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 -124 m Equity ratio: 25.1% (end 2011: 26.0%) Non-current liabilities Provisions for pensions: adjustment of discount rate corresponding to decreased market rate Financial liabilities: EUR +500 m bond placement and EUR +216 m leasing liabilities; partly offset by EUR -400 m loan repayment Current liabilities: Financial liabilities: net borrowings to fund business growth Other liabilities: increase relates largely to the VNE sale transaction (EUR m) 30 Sep Dec 11 % 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 Liabilities related to assets held for sale Current liabilities 8, , Liabilities and shareholders's equity 16, ,

10 2,058 2,451 2, ,540 (EUR m) -1, Consolidated Group cash flows 3,500 3,000 11: High investments in PP&E at Leighton. Opposed by higher inflow of funds from HWE-Mining sale and from sale of securities. 11: Repayments of loan liabilities exceed new borrowings. Opposed by inflow of funds from contributions by thirdparty shareholders upon capital increase at Leighton. 9M M ,500 2,000 1,500 1, Cash and cash equivalents at start of year 11: Significantly positive cash flow from operating activities despite losses at Asia Pacific (loss incurred at Leighton not yet cash-effective). 12: Outflow of liquidity in operating business due to marked rise in net current assets (mainly due to increase in trade receivables and reduction in trade payables at Asia Pacific). 12: High investments at Leighton and outflow of funds due to purchase of securities. 12: High volume of borrowings (including bond issue at HOCHTIEF) significantly exceeds repayments (including repayment of cash loan at HOCHTIEF). 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: Negative f/x effects from USD and AUD. 12: Positive f/x effect mainly from AUD. Change in exchange rates and other changes Cash and cash equivalents at end of reporting period 10

11 , , Financial basis (EUR m) end 2011 end 9M 20121) Financial Assets Financial liabilities Net cash/(net debt) 1) Net debt 9M 2012 includes: Pledged securities 24 Not deducted: Pension liabilities 293 Prepayments 421 Key figures (end 9M 2012): Group net debt of EUR 1,990 m includes Leighton net debt of EUR 1,630 m (Leighton net debt end FY 11: EUR 503 m) New financing instruments 1) 2012: ca EUR 1.3 bn (EUR 500 m HOCHTIEF corporate bond; AUD 960 m Leighton lease/debt facilities) Undrawn debt facilities 1) : ca EUR 1.3 bn (EUR 387 m HOCHTIEF corporate; AUD 1.1 bn Leighton) Non-/limited recourse financing: EUR 224 m nonrecourse (Real Estate Europe); EUR 202 m (AUD 250 m) non- /limited recourse Leighton (Real Estate Australia) Details see appendix 1) Excl. ongoing project financing 11

12 Group Guidance 2012 Increased guidance for order backlog and sales Reported Expected ) (EUR bn) New orders On par with high level 2011 Order backlog On par with level 2011 Sales On par with level 2011 (EUR m) EBT Just under 550 Net profit Just under 180 Dividends: HOCHTIEF intends to propose adequate shareholder participation. 1) Guidance does not include any extraordinary items 12

13 APPENDIX 13

14 Capital structure end 9M 12 Net debt calculation: (EUR m) end 9M 2012 FY 2011 Cash and cash equivalents 1, ,264.8 Marketable securities Non-current securities Financial assets: 2, ,657.9 Bonds or notes issued 1, ) Amounts due to banks 2, ) 2,081.4 Other financial liabilites ) Financial liabilities: 4) 4, ,310.9 Net debt: 1, Net debt includes: Pledged securites Not deducted: Pension liabilities Prepayments Debt Maturity: (EUR m) 1, , , ,3 Financial liabilities main components 1) EUR 208 m Leighton US PP, /15/18; EUR 225 m Leighton bond, ; EUR 260 m Leighton US PP, /17/20; EUR 500 m non-rated Bond ) EUR 549 m promissory note loans after early repayments of EUR 81 m (EUR 30 m: ; EUR 194 m: /15; EUR 240 m: ; EUR 85 m ); EUR 300 m syndicated revolving cash facility, EUR 327 m various project financing (incl. EUR 224 m non-recourse project financing ex-lei) 3) EUR 697 m leasing facilities Major long-term guarantee facilities EUR 1.5 bn HOCHTIEF syndicated revolving guarantee facility, , utilization : EUR 1.2 bn EUR 5.0 bn (USD 6.5 bn)turner/flatiron bonding facilities, utilization: EUR 3.3 bn EUR 5.2 bn guarantee facilities, including: EUR 3.3 bn Leighton bonding facilities utilization end 9M 12: EUR 2.7 bn; other bilateral guarantee facilities Bonds or notes issued Amounts due to banks Other financial liabilities 134,5 405, ,1 137,2 134, ,7 148,4 154,4 366, ,1 112,2 88,9 87,0 141,1 0 ufn 5) ) ) > ) Excluding long-term loans to participating interests 5) until further notice, i.e. no specified maturity 6) Amounts due to banks include various ongoing and also revolving project financings 14

15 HOCHTIEF Europe Segmental overview Jan-Sep 12/end Sep 12 (EUR m) Divisional sales EBT EBT margin Order backlog "Construction" Solutions 1) 1, % 3,178.1 Real Estate Solutions 2) % Service Solutions % 1,781.4 PPP Solutions % 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 9M 12, EUR 2.02 bn Order backlog end 9M 12, EUR 6.04 bn Work done 9M 12, EUR 2.41 bn Order backlog end 9M 12, EUR 6.04 bn 2 % 22% 23% 14% 24% 14% 1 1% Int'l Projects Classic Energy & Infra Engineering Service Real Estate PPP 9% 12% 29% 17% 12% 21% 0% 0% (Engineering) Int'l Project Classic Energy & Infra Engineering Service Real Estate PPP 29% 8% 63% Domestic Europe Other 2% 37% 61% Domestic Europe Other 15

16 Financial data by division 9M 2012/2011 and FY 2011 in EUR million HOCHTIEF Americas HOCHTIEF Asia Pacific HOCHTIEF Europe Corporate Headquarters / Consolidation / Others 1) HOCHTIEF Group 9 months YTD 2012 New orders 6, , , ,245.8 Work done 5, , , ,647.2 Order backlog 9, , , ,358.2 Divisional sales 5, , , ,530.0 External sales 5, , , ,515.0 Operating earnings (EBITA) Profit before taxes Capital expenditure , ,324.5 Net assets , , , , months YTD 2011 New orders 5, , , ,124.6 Work done 4, , , ,647.2 Order backlog 8, , , ,518.5 Divisional sales 4, , , ,775.0 External sales 4, , , ,756.9 Operating earnings (EBITA) (222.3) Profit before taxes (300.0) (101.6) Capital expenditure , ,432.4 Net assets , , ,139.6 FY 2011 New orders 7, , , ,368.3 Work done 6, , , ,789.9 Order backlog 8, , , ,668.5 Divisional sales 6, , , ,306.7 External sales 6, , , ,282.2 Operating earnings (EBITA) (168.2) Profit before taxes (285.4) (9.0) 25.0 (127.0) Capital expenditure , ,023.3 Net assets , , , ) incl. non-current assets held for sale (disposal group) Table is available in Excel here: 16

17 Financial data by division Q3 2012/2011 in EUR million HOCHTIEF Americas 1) incl. non-current assets held for sale (disposal group) HOCHTIEF Asia Pacific HOCHTIEF Europe Corporate Headquarters / Consolidation / Others 1) HOCHTIEF Group Q New orders 1, , ,905.9 Work done 2, , ,772.1 Order backlog 9, , , ,358.2 Divisional sales 2, , ,509.8 External sales 2, , ,501.8 Operating earnings (EBITA) Profit before taxes Capital expenditure Net assets , , , ,770.9 Q New orders 1, ,079.5 Work done 1, , ,037.5 Order backlog 8, , , ,518.5 Divisional sales 1, , ,388.0 External sales 1, , ,381.9 Operating earnings (EBITA) Profit before taxes Capital expenditure Net assets , , ,139.6 Table is available in Excel here: 17

18 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. 18

19 Financial calendar and IR contact 28 February 13 Full year results 2012 and Analysts and Investors Conference 07 May 13 Annual General Meeting 08 May 13 First quarter results 2013 and Conference Call with Analysts and Investors 14 August 13 Half-year results 2013 and Conference Call with Analysts and Investors 13 November 13 Nine-month results 2013 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 Ulrike Kröner Ralf Hinricher Nadine Wärmer 19