Investor Relations Company Presentation 9M 2023 results - November 7, 2023
© HOCHTIEF
Juan Santamaría, CEO
Peter Sassenfeld, CFO
Mike Pinkney, Head of Corporate Strategy
Tobias Loskamp, Head of Capital Markets Strategy
Table of contents
Highlights | 3 | |
P&L | 5 | |
Cash flow | 6 | |
Net cash | 7 | |
Order book | 8 | |
Recent project awards | 9 | |
Americas | 11 | |
Asia Pacific | 12 | |
Europe | 13 | |
Abertis | 14 | |
Corporate strategy | 16 | |
Capital allocation and Guidance | 18 | |
ESG | 19 | |
© HOCHTIEF | © HOCHTIEF | |
Appendix | ||
Group financials overview | 21 | |
P&L, Balance sheet, Cash flow | 22 | |
Group financing structure | 26 | |
Group order backlog risk profile | 27 | |
Americas | 28 | |
Asia Pacific | 30 | |
Europe | 34 | |
Abertis | 36 | |
FX rates | 39 | |
HOCHTIEF Group overview | 40 | |
© TWA Hotel/David Mitchell | © CPB Contractors |
2
HOCHTIEF Group - 9M 2023 overview
Operational net profit EUR 403m, +6% yoy; nominal net profit EUR 381m, +7%
- Solid performance with sales up 11% yoy fx-adj. at EUR 20.4bn, driven by all divisions
- Double-digitnet profit growth adjusting for fx-effects
- Robust operational NPAT margin of 2.0%; EBITDA and EBIT margins stable at 4.5% and 3.3%
Strong Q3 2023 cash flow from operating activities pre-factoring* up EUR 135m yoy
Op. net profit | Nom. net profit |
500.0 | +6% | +7% | |||
EURm | |||||
381 | 403 | 381 | |||
400.0 | 355 | ||||
300.0 | |||||
200.0 | |||||
100.0 | |||||
0.0 | |||||
9M 2022 | 9M 2023 | 9M 2022 | 9M 2023 |
Cash flow from operating activities *
EURm
- 9M 2023 cash flow* of EUR 208m substantially up by EUR 87m yoy
- Cash flow from op. activities pre-factoring* of approx. EUR 1.3bn LTM highlights sustained high level of cash conversion when adjusting for seasonality
- Net operating capex increase driven by job-costed tunneling equipment and the initial, one-off development capex for a major renewable project at CIMIC
Net debt reduced by EUR 158m yoy driven by a EUR 478m underlying improvement
EURm
Net cash
- EUR 301m dividend paid to HOCHTIEF shareholders in July 2023
- Seasonally strong operating cash flow expected for Q4 2023
New orders of EUR 27.8bn in 9M 2023, exceptional growth of EUR 7bn yoy (+39% fx-adj)
- Continuation of strong growth trend in Q3 (new orders +51%) driven by strategic focus on high- growth markets which accounted for over 50% of new orders in 9M 2023
- The vast majority of new orders is of lower risk nature
- Order backlog of EUR 56.1bn, up EUR 3.3bn or +14% fx-adjusted yoy
- Proportion of lower-riskorder book has significantly increased over last 5 years to approx. 85%
Guidance FY 2023 confirmed: operational net profit of EUR 510 - 550m
- Strategic focus on rapidly expanding high-tech, energy transition and sustainable infrastructure markets driving strong order book growth, positive profit momentum and further improving risk profile
- Starting to deploy equity in high-tech infrastructure projects (e.g. solar, EV chargers and data centers)
- Dividend of EUR 4.00 / share (vs. EUR 1.91 for 2021) paid in Q3 2023
Net cash | Free cash | Debt | Fx, others | Net cash | HOT | Non-op. | Net cash | |||
9M 2022 | flow pre- | lease | 9M 2023 | dividend | effects | 9M 2023 | ||||
factoring * | repay- | pre non- | payment | |||||||
ment | ops. | |||||||||
New orders | Order backlog | |||||||||
EURbn | ||||||||||
27.8 | 56.1 | |||||||||
2.6 | 52.8 | 5.6 | ||||||||
4.3 | ||||||||||
20.9 | ||||||||||
1.1 | 8.6 | |||||||||
19.4 | ||||||||||
19.6 | ||||||||||
8.2 | ||||||||||
16.5 | 28.8 | 31.1 | ||||||||
11.5 | ||||||||||
9M 2022 | 9M 2023 | 9M 2022 | 9M 2023 |
Op. Net profit guidance
EURm | 522 | 510 - 550 |
FY 2022 | FY 2023 |
* = Cash flow figures pre-factoring, and underlying, i.e. excluding extraordinary payments | 3 |
HOCHTIEF Group - 9M 2023 key figures
9M | |
(EUR million) | 2023 |
Sales | 20,361.9 |
Operational profit before tax/PBT | 571.7 |
Operational PBT margin in % | 2.8 |
Operational net profit | 403.1 |
Operational net profit margin in % | 2.0 |
Operational earnings per share (EUR) | 5.36 |
EBITDA | 907.9 |
EBITDA margin in % | 4.5 |
EBIT | 681.6 |
EBIT margin in % | 3.3 |
Profit before tax / PBT | 536.0 |
Tax rate (taxes / PBT in %) | 25.9 |
Minority interest | -16.3 |
Net profit | 380.9 |
Earnings per share (EUR) | 5.06 |
Cash flow from operating activities pre-factoring * | 208.3 |
Cash flow from operating activities * | 216.1 |
Net operating capital expenditure | 157.4 |
Free cash flow from operating activities pre-factoring * | 50.9 |
Free cash flow from operating activities * | 58.7 |
Free cash flow pre-factoring * | 48.7 |
Net cash / net debt | -68.2 |
New orders | 27,844.0 |
Work done | 22,702.2 |
Order backlog like-for-like | 56,072.4 |
Direct employees (end of period) | 41 058 |
9M 2022
19,123.6
546.1 2.9 380.7 2.0 5.36
863.3 4.5 617.7 3.2 502.2
26.1 -15.9 355.4 5.00
121.7 149.3 108.1 13.6 41.2 -87.4
-225.9
20,874.6 21,159.3 52,791.0
36 800
- 9M in %
6.5%
4.7% -0.1 5.9% 0.0 0.0%
5.2% 0.0 10.3% 0.1 6.7%
-0.2
7.2% 1.2%
71.2% 44.7% 45.6% 274.3% 42.5% 155.7%
69.8%
33.4% 7.3% 6.2%
11.6%
-
9M
in EURm
1,238.3 25.6 22.4 0.00 44.6 63.9 33.8
-0.4 25.5 0.06
86.6 66.8 49.3 37.3 17.5 136.1
157.7
6,969.4 1,542.9 3,281.4
4 258
Q3 2023
7,346.3
179.5 2.4 133.1 1.8 1.77
309.3 4.2 227.2 3.1 164.2
22.8 -7.7 119.0 1.58
194.1 73.5 54.2 139.9 19.3 129.0
-68.2
9,766.6 8,136.7 56,072.4
41 058
Q3 2022
7,179.2
178.4 2.5 131.3 1.8 1.75
308.0 4.3 213.1 3.0 161.7
26.0 -4.7 115.0 1.53
58.7 -4.745.3 13.4 -50.0 -27.5
-225.9
6,476.3 7,825.0 52,791.0
36 800
Δ Q3 | LTM | FY |
in % | 9M 2023 | 2022 |
2.3% | 27,457.6 | 26,219.3 |
0.6% | 758.7 | 733.1 |
-0.1 | 2.8 | 2.8 |
1.4% | 543.9 | 521.5 |
0.0 | 2.0 | 2.0 |
1.1% | 7.24 | |
0.4% | 1,229.1 | 1,184.5 |
-0.1 | 4.5 | 4.5 |
6.6% | 904.6 | 840.7 |
0.1 | 3.3 | 3.2 |
0.0 | 711.0 | 677.2 |
-3.2 | 24.0 | |
-33.2 | ||
3.5% | 507.3 | 481.8 |
3.3% | 6.68 | |
230.7% | 1,298.4 | 1,211.8 |
1,663.8% | 1,354.2 | 1,287.4 |
19.6% | 213.3 | 164.0 |
944.0% | 1,085.1 | 1,047.8 |
138.6% | 1,140.9 | 1,123.4 |
569.1% | 918.4 | 782.3 |
69.8% | 353.6 | |
50.8% | 37,036.0 | 30,066.6 |
4.0% | 30,730.1 | 29,187.2 |
6.2% | 51,404.0 | |
11.6% | 36 858 |
* = Cash flow figures underlying, i.e. excluding one-off payments at CIMIC (for legacy project CCPP) and at HOCHTIEF Europe (final payment for legacy Chilean project) | 4 |
HOCHTIEF Group - P&L
- Strong sales performance with an increase of 7% yoy (+11% fx-adj.), driven by all divisions
- Robust EBITDA and EBIT margins of 4.5% and 3.3%
- Net financial costs 9M increasing yoy due to higher rates environment and fx-effects
- Operational net profit up 6% to EUR 403m and nominal net profit up 7% to EUR 381m, corresponding to an increase of >10% when adjusting for fx
+7%
+11% fx-adj.
HOCHTIEF Group
(EUR million)
Sales
EBITDA
EBITDA margin
Depreciation and amortization
EBIT
EBIT margin
Net interest income and other financial result Net non-operating expenses adjustment
Profit before tax / PBT
PBT margin
Taxes
Tax rate (taxes / PBT in %)
Profit after tax - total
Minority interest
Nominal net profit
Nominal net profit margin
Operational net profit
Operational net profit margin
9M | 9M | ∆ % |
2023 | 2022 | 9M |
20,361.9 | 19,123.6 | 6.5% |
907.9 | 863.3 | 5.2% |
4.5% | 4.5% | 0bp |
-226.3 | -245.6 | |
681.6 | 617.7 | 10.3% |
3.3% | 3.2% | 10bp |
-105.1 | -66.9 | |
-40.5 | -48.6 | |
536.0 | 502.2 | 6.7% |
2.6% | 2.6% | 0bp |
-138.8 | -130.9 | |
25.9 | 26.1 | |
397.2 | 371.3 | |
-16.3 | -15.9 | |
380.9 | 355.4 | 7.2% |
1.9% | 1.9% | 0bp |
403.1 | 380.7 | 5.9% |
2.0% | 2.0% | 0bp |
Q3 | Q3 | ∆ % |
2023 | 2022 | Q3 |
7,346.3 | 7,179.2 | 2.3% |
309.3 | 308.0 | 0.4% |
4.2% | 4.3% | -10bp |
-82.1 | -94.9 | |
227.2 | 213.1 | 6.6% |
3.1% | 3.0% | 10bp |
-28.6 | -33.6 | |
-34.4 | -17.8 | |
164.2 | 161.7 | 1.5% |
2.2% | 2.3% | -10bp |
-37.5 | -42.0 |
- 26.0
- 119.7
-7.7 | -4.7 | |
119.0 | 115.0 | 3.5% |
1.6% | 1.6% | 0bp |
133.1 | 131.3 | 1.4% |
1.8% | 1.8% | 0bp |
FY 2022
26,219.3
1,184.5
4.5%
-343.8
840.7
3.2%
-112.7-50.8
677.2
2.6%
-162.2 24.0
515.0
-33.2
481.8
1.8%
521.5
2.0%
+5%
+9% fx-adj.
+6%
+11% fx-adj.
5
HOCHTIEF Group - Cash flow performance*
- Very strong Q3 2023 cash flow from operating activities pre-factoring* of EUR 194m, up EUR 135m yoy
- Strong 9M 2023 cash flow* of 208m up EUR 87m yoy
- This reflects characteristic seasonality and strong sales growth
- Adjusting for seasonality, cash inflow of approx. EUR 1.3bn LTM highlights sustained high level of cash conversion
- Net operating capex increase driven by job-costed tunneling equipment and the initial, one-off development capex for a major renewable project at CIMIC
- Free cash flow from operating activities pre-factoring*of EUR 140m in Q3 2023, up EUR 127m yoy
9M | 9M | ∆ | Q3 | Q3 | ∆ | LTM | FY | |
(EUR million) | 2023 | 2022 | 9M | 2023 | 2022 | Q3 | 9M 2023 | 2022 |
Cash flow from operating activities * | 216.1 | 149.3 | 66.8 | 73.5 | -4.7 | 78.2 | 1,354 | 1,287 |
Variation in factoring 1) | 7.8 | 27.6 | -19.8 | -120.6 | -63.4 | -57.2 | 56 | 76 |
Cash flow from operating activities pre-factoring * | 208.3 | 121.7 | 86.6 | 194.1 | 58.7 | 135.4 | 1,298 | 1,212 |
Gross operating capital expenditure | -169.0 | -119.3 | -49.7 | -53.3 | -51.3 | -2.0 | -237 | -188 |
Operating assets disposals | 11.6 | 11.2 | 0.4 | -0.9 | 6.0 | -6.9 | 24 | 24 |
Net operating capital expenditure | -157.4 | -108.1 | -49.3 | -54.2 | -45.3 | -8.9 | -213 | -164 |
Free cash flow from operating activities * | 58.7 | 41.2 | 17.5 | 19.3 | -50.0 | 69.3 | 1,141 | 1,123 |
Free cash flow from operating activities pre-factoring * | 50.9 | 13.6 | 37.3 | 139.9 | 13.4 | 126.5 | 1,085 | 1,048 |
+135m
+87m
* = Cash flow figures underlying, i.e. excluding one-off payments at CIMIC (for legacy project CCPP) and at HOCHTIEF Europe (final payment for legacy Chilean project) | 6 |
HOCHTIEF Group - Net cash development
- HOCHTIEF ended 9M 2023 with a net debt position of EUR 68m, which is up by EUR 158m yoy, or up EUR 478m on an underlying basis. This is driven by a strong 9M 2023 free cash flow pre-factoring* of EUR 918. Non-underlying effects are:
- HOCHTIEF's dividend payment of EUR 301m in July 2023,
- EUR 20m non-operational effects, incl.
- CCPP payments (EUR -184m)
- 7.4% stake in Ventia (EUR +109m)
- Variation in factoring (EUR +56m)
- S&P investment grade credit rating of BBB- stable, reaffirmed in June 2023
Net cash (+) / net debt (-) | Net cash 9M 2023 yoy | |||||||||
EURm | ||||||||||
9M | 9M | ∆ | H1 | Q1 | FY | |||||
period end (EUR million) | 2023 | 2022 | yoy | 2023 | 2023 | 2022 | ||||
HOCHTIEF Group | -68 | -226 | 158 | 346 | -390 | 354 | ||||
HOCHTIEF Americas | 1,884 | 1,623 | 262 | 1,641 | 1,216 | 1,909 | ||||
HOCHTIEF Asia Pacific | -599 | -464 | -135 | -227 | -463 | -492 | ||||
HOCHTIEF Europe | 619 | 600 | 18 | 634 | 678 | 749 | ||||
Corp. HQ & consolidation | -1,972 | -1,985 | 13 | -1,701 | -1,821 | -1,813 |
Net cash | Free cash | Debt | Fx, | Net cash | HOT | Non-op. | Net cash |
9M 2022 | flow pre- | lease | others | 9M 2023 | dividend | effects | 9M 2023 |
factoring * | repay- | pre non- | payment | ||||
ment | ops. |
* = Cash flow figures underlying, i.e. excluding one-off payments at CIMIC (for legacy project CCPP) and at HOCHTIEF Europe (final payment for legacy Chilean project) | 7 |
HOCHTIEF Group - Order backlog and new orders
- HOCHTIEF Group
- Very strong new orders of EUR 27.8bn in 9M 2023, up almost EUR 7bn yoy (+39% fx-adj); 1.2x work done LTM
- Expansion driven by strategic focus on high-growthmarkets, which accounted for over 50% of new orders
- The vast majority of new orders is of lower risk nature
- Order backlog of EUR 56.1bn, up EUR 3.3bn or +14% fx-adj. yoy; order backlog visibility 22 months
- Proportion of lower-riskorder book has significantly increased over the last five years to approx. 85%
- HT Americas
- Order backlog EUR 31.1bn, +17% fx-adj.; New orders EUR 16.5bn in 9M 2023 (+47% yoy fx-adj.); 1.3x work done LTM
- HT Asia Pacific
- EUR 19.4bn order backlog, +7% yoy fx-adj.; New orders of EUR 8.6bn, +14% yoy fx-adj., 1.0x work done LTM
- HT Europe
- Order backlog of EUR 5.6bn (+29% yoy); New orders of EUR 2.6bn in 9M 2023, equivalent to 1.7x work done LTM
Order backlog (EUR bn)
% of total
.1 | ||||
52.8 | 100% | |||
51.4 | ||||
19.4 | ||||
35% | ||||
19.6 | 19.4 | |||
5.6 | ||||
10% | ||||
4.3 | 4.2 | |||
28.8 | 27.8 | 31.1 | 55% | |
9M 2022 | FY 2022 | 9M 2023 |
New orders (EUR bn) | ||
27.8 | ||
HT Group | 20.9 | 8.6 |
HT Asia Pacific | 8.2 | 2.6 |
HT Europe | 1.1 | |
16.5 | ||
HT Americas | 11.5 | |
9M | 9M | |
2022 | 2023 |
Book-to-Bill-
Ratio
LTM
9M 2023
1.2
1.0
1.7
1.3
8
HOCHTIEF Group - Selected recent significant project announcements
Green Line Light Rail Transit project, Flatiron (09/2023) JV, development contract for a 18km light rail transit system in Calgary, Canada
University of Pittsburgh, Turner
(08/2023) new building including laboratory and office space together with cleanrooms for cell and gene therapy research, Pennsylvania, USA
One and Two UN Plaza buildings, Turner (08/2023) modernization and renovation of existing buildings from 1975 resp. 1983, New York City, USA
Orlando Health Wiregrass Ranch Hospital, Turner (09/2023) five-story
hospital with 136 inpatient beds including emergency department, cardiac diagnostics, surgical suites, Wesley Chapel, Florida, USA
Data Center, HOCHTIEF | Fast-charging networks | Institute for Federal Real |
(09/2023) as part of a | for electric cars, | Estate, HOCHTIEF (06/2023) |
campus eventually comprising | HOCHTIEF (09/2023) JV, | major PPP project; redevelop, |
four separate data centers with | contract to finance, plan, build | operate and maintain a public admin |
60MW capacity, Warsaw, | and operate a regional EV fast- | office in a sustainable manner for a |
Poland | charging network, Germany | 30-year period, Berlin, Germany |
Defence Department's Woomera
redevelopment program, CPB Contractors (10/2023) JV, design development activities for upgrades to buildings, services and infrastructure; expected to be followed by a AUD 500- 750m delivery phase, South Australia
Suburban Rail Loop East project, CPB Contractors (09/2023) preferred bidder to deliver the first major tunneling package as part of a consortium, Victoria, Australia
PT Halmahera Sukses Mineral, AUD 240m, Thiess (08/2023) contract to deliver world-classnickel mining solutions, Central Halmahera, Indonesia
300 MWdc Hopeland Solar Farm, Pacific Partnerships (08/2023) development rights for second large-scale
Offutt Air Base, USD 389m, Turner
(08/2023) construction of two buildings with a focus on flood protection, Nebraska, USA
EV Battery production, Turner
(02/2023) JV, manufacturing facility and support buildings for Panasonic Energy's USD 4bn investment program, Kansas, USA
Data Centers, USD 1.9bn, Turner
(9M 2023), ten large-scale data center projects in several US states
CopperString 2032, UGL& | Expansion of the Western | Lithium and energy |
CPB Contractors (06/2023) | Downs Battery project, | contracts, UGL, AUD >600m |
early works package, preferred | UGL (07/2023) BESS scope | (08/2023) several contracts with |
contractor for delivery phase, | increased to 270 MW / 540 | energy and minerals processing |
North Queensland, Australia | MWh, Queensland, Australia | clients in Western Australia |
solar project to be owned and developed, 290km west of Brisbane, Australia
Defence Department's fuel network, AUD 500m over six years, UGL (08/2023) contract to provide strategic advice, planning, supply management, operations/maintenance across Australia
New Bundaberg Hospital, AUD 1.2bn, CPB Contractors (08/2023) design, construction of a hospital for acute, medical, surgical & mental health services, Queensland, Australia
Energy | Digital | New sustainable | Social | Reshoring | Sustainable |
transition | infrastructure | mobility | infrastructure | Infrastructure |
9
HOCHTIEF Group - Investment in a fast-charging network for electric vehicles (Deutschlandnetz, September 2023, HOCHTIEF Europe)
- HOCHTIEF and its JV partner EWE Go, a mobility company owned by utility company EWE, have been awarded with a contract to finance, plan, build and operate a fast-chargingnetwork for electric vehicles by the German Federal Ministry of Transport
- As part of the so-called federal government's Deutschlandnetz tender, which targets a Germany-widenear-termroll-out of fast-charging points, the JV has secured 2 regional lots in the West and North-Westregion
- HOCHTIEF and EWE Go will install a total of 852 charging points at 96 locations (see map). Each station will have 4 to 16 charging points each which the JV will build and operate for the long-term
- Total capex amounts to around EUR 250m including a substantial double-digitequity investment
- The investment reflects the group's strategy to invest equity in high-tech growth sectors where we can apply the financing, project management and O&M capabilities built up over many years in the PPP business
- Similar models are expected in various other European countries to meet the increasing demand for EV chargers
10
Attachments
- Original Link
- Original Document
- Permalink
Disclaimer
Hochtief AG published this content on 07 November 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 07 November 2023 13:33:55 UTC.