Oli Keinath MY INFRASTRUCTURE OUR SOLUTIONS istockphoto: Global Stock 1
Our Vision HOCHTIEF is building the future. Along with our partners, we expand horizons, link people and organizations, create new ways to think and act, and continually enhance the values entrusted to our care. 2
FlatironAlvarez-Rea Oscar Durand The HOCHTIEF Group Founded in 1873 Represented in all the world s major markets 80,000 employees worldwide Integrated portfolio: Develop, build, operate Focus on core competency of construction, notably in infrastructure projects Transportation infrastructure Energy infrastructure Social and urban infrastructure Contract mining Gerber Architekten, Dortmund Thiess 3
Our worldwide presence 4
Strategic focus of the HOCHTIEF Group HOCHTIEF aims to become the world s most relevant infrastructure construction group driven by sustainable, profitable growth. Use our core competencies Development Construction Operation Financial strength Increased profitability Higher positive cash flow Increase balance sheet strength Improved risk management approach Focus on infrastructure Transportation infrastructure Energy infrastructure Social and urban infrastructure Contract mining Basis: high level of innovation qualified employees Strategic initiatives of the HOCHTIEF Group Value creation for our shareholders 5
Transportation infrastructure Leading international provider of complex transportation infrastructure projects Development, construction, and operation of infrastructure for globally growing mobility demands Roads, bridges, tunnels Railroads Seaports, airports, train stations Participation in research projects and product innovation HOCHTIEF/Mike Christian Leighton Contractors 6
Energy infrastructure A leading player in offshore wind energy, strong partner in the construction of wind farms Offshore wind energy activities: Special-purpose jack-up vessels Construction and operation of wind farms Development of innovative technologies Energy storage and network expansion Energy efficiency in operating buildings and facilities Forging ahead with upgrade and transformation of energy infrastructure because of national and international climate targets HOCHTIEF Flatiron/Larry Gill 7
HOCHTIEF Social and urban infrastructure Shaping modern cities and large metropolitan areas Expanded social infrastructure in partnership with public agencies Schools and educational institutions Administrative buildings High-value real estate in all areas of urban life Age-appropriate housing Office and commercial real estate Healthcare facilities Pioneers of green construction and sustainable facility management Turner 8
Contract mining Leighton Group: Biggest contract miner worldwide Mining of coal, iron ore, copper, gold and other resources Contracts with large volumes and long timeframes Huge appetite worldwide for natural resources as production inputs Thiess Thiess 9
Sustainability as a philosophy Objective: Promote interaction of economy, ecology and social commitment Part of corporate strategy Tradition of sustainability at HOCHTIEF Active environmental and sustainability management since the early 1990s HOCHTIEF is listed in renowned sustainability indices: Dow Jones Sustainability Index Europe and Ethibel Sustainability Index Excellence Europe istockphoto/shapecharge MY LIFE OUR GUARD Oli Keinath 10
CR program at HOCHTIEF Our goals: Corporate responsibility Sustainable products and services Climate protection Resources conservation Attractive employment at HOCHTIEF Social commitment Compliance HOCHTIEF/Jennifer Siebert MY COMMUNITY OUR CONTRIBUTION HOCHTIEF/Jennifer Siebert 11
Shareholder structure Free float; 27.9% Qatar Holding; 11.1% ACS (Actividades de Construcción y Servicios S.A., Madrid); 61.0% 12
Corporate structure Three divisions with major subsidiaries HOCHTIEF Corporate Headquarters (management holding company) Flatiron Leighton Contractors Oscar Durand HOCHTIEF Americas HOCHTIEF Asia Pacific HOCHTIEF Europe Turner Clark Builders Flatiron E.E. Cruz Leighton Holdings Thiess Leighton Contractors John Holland Leighton Properties Leighton Asia, India and Offshore Habtoor Leighton Group HOCHTIEF Solutions HOCHTIEF Building HOCHTIEF Infrastructure HOCHTIEF Engineering HOCHTIEF PPP Solutions Subsidiaries 13
Key figures 2013 Change Profit before taxes/ebt EUR 799.8 m +48% EBITDA EUR 1.91 bn +11% Operational Net Profit EUR 207.5 m +123% New Orders EUR 26.49 bn -8%* Order Backlog EUR 39.94 bn -3%* Work Done EUR 29.05 bn +7%* Net Debt EUR 194.4 m -79% Employees (average for year) 80,912 Flatiron Leighton Contractors * adjusted for exchange rate and deconsolidation effects Oscar Durand 14
Division HOCHTIEF Americas Overview HOCHTIEF subsidiaries are active in the U.S. and Canadian construction business Strong performance: Companies hold top positions in U.S. market Synergy potential due to cooperation of HOCHTIEF companies in North America National network of branch offices More than 60% repeat customers Key Figures 2013 (EUR million) 2013 2012 New orders 7,457.3 9,577.7 Work done 8,546.3 8,037.6 Order backlog 9,278.8 10,900.1 External sales 7,943.8 7,374.6 Operational earnings/ebita Profit before taxes/ebt Employees (average for year) 115.1 74.3 94.0 57.1 9,295 8,397 15
Division HOCHTIEF Americas Competencies Focus in building construction (Turner, Clark Builders) Education/science Healthcare Event real estate Pharmaceutical industry Public buildings Focus in civil engineering (Flatiron, E.E. Cruz) Roads Bridges Energy infrastructure Water supply Turner Flatiron/Duwayne Bahnsen 16
Division HOCHTIEF Asia Pacific Overview HOCHTIEF majority stake in the Leighton Group (69,62%*) Leighton is active in the Asia-Pacific region and in the Gulf states Broad spectrum of services for private customers and public projects Leighton is number 1 in Australia, and a key provider in the Gulf states Good perspectives based on global resource demand Key Figures 2013 (EUR million) 2013 2012 New orders 16,044.1 18,414.5 Work done 17,159.3 18,223.5 Order backlog 26,524.9 32,486.4 External sales 14,767.0 15,179.8 Operational earnings/ebita Profit before taxes/ebt Employees (average for year) 744.7 593.6 499.8 411.1 58,715 55,959 * As of May 9, 2014 17
Division HOCHTIEF Asia Pacific Competencies Construction (infrastructure, buildings, roads) Water and energy industry projects Operation and maintenance as well as services in the infrastructure, raw materials, and real estate market Contract mining: Operation of surface and underground mines on behalf of mining companies Thiess Thiess 18
Division HOCHTIEF Europe Overview Subsidiary HOCHTIEF Solutions AG is the management company of the Division Active in Europe and in selected worldwide regions, focus on profitable growth markets Four operating companies HOCHTIEF Building HOCHTIEF Infrastructure HOCHTIEF Engineering HOCHTIEF PPP Solutions Subsidiaries Key Figures 2013 (EUR million) 2013 2012 New orders 2,879.0 3,393.9 Work done 3,235.1 3,332.0 Order backlog 4,138.1 6,419.7 External sales 2,864.6 2,845.3 Operational earnings/ebita Profit before taxes/ebt Employees (average for year) 152.5 92.2 62.8 28.7 12,662 15,320 19
Division HOCHTIEF Europe Competencies Integrated, intelligent and innovative solutions for PPP projects from a single source Engineering, primarily in the growth areas of energy and transportation infrastructure Building projects Project and area development Consulting services Planning, optimization, and construction of real estate and industrial systems HOCHTIEF/Mike Christian HOCHTIEF 20
Group outlook In 2014, HOCHTIEF expects to achieve further progress with an operating Group net profit in the range of EUR 225-250 million, compared with EUR 207.5 million in 2013. We anticipate that this will be achieved with improved profit margins in all our divisions. With our continued focus on cash, we also aim to further strengthen the balance sheet and end the year with a net cash position. The Group s new orders and work done are likely to normalize at a lower level in 2014, due partly to exchange rate effects, but we expect to end the year with our order backlog close to the high levels of December 2013. 21
Oli Keinath MY INFRASTRUCTURE OUR SOLUTIONS istockphoto: Global Stock 22