HOCHTIEF A Success Story 1
Committed to our legacy... 2
... highly modern, innovative and forward-thinking 3
Construction Volume in Germany 1994-2005 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 4
Jobs in the German Construction Industry 1994-2005 (in thousands) 1500 1200 900 600 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 5
Insolvency Proceedings in the German Construction Industry 1994-2005 10000 9000 8000 7000 6000 5000 4000 3000 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 6
Construction Corporations Traded in Frankfurt 1995 HOCHTIEF Bilfinger Berger Dywidag Heilit & Woerner Philipp Holzmann Strabag Walter Bau Wayss & Freytag 2006 HOCHTIEF Bilfinger Berger 7
1991: Formation of HOCHTIEF Projektentwicklung 8
1996: Formation of HOCHTIEF Facility Management 9
1997: Formation of HOCHTIEF AirPort 10
1999: Integration of Turner 11
2005: Formation of HOCHTIEF PPP Solutions 12
HOCHTIEF Unternehmensentwicklung Strategy End-to-end range of products and services Integrated service packages 13
Strategic Milestones in 2005 14
Strategic Milestones in 2005 Further growth in operating business generated Concessions business continues to gain in importance HOCHTIEF AirPort Capital investment partnership founded Public-private partnership portfolio expanded For the first time, we published the value of our concessions portfolio Net present value as of December 31, 2005 of over EUR 873 million 15
Successful operation Successful partners 16
Maintaining and Creating Value Success: Operation over decades HOCHTIEF s top team sets us apart from the competition longterm Success: Genuine partnership HOCHTIEF as transparent, reliable and constant partner to the public sector soundly based on trust 17
Orders and Work Done (EUR billion) 24.0 24,0 20.0 20,0 16.0 16,0 15.58 15.60 18.72 21.10 13.11 14.85 12.0 12,0 8.0 8,0 4.0 4,0 0.0 0,0 2004 2005 2004 2005 2004 2005 New orders Order backlog Work done 18
Sales (EUR billion) 15 14 13 13.65 12 11 11.94 2004 2005 19
Key Performance Indicators (EUR million) 330 329 290 250 187 210 151 170 130 81 90 50 2004 2005 2004 2005 Profit before taxes Profit after taxes 20
Consolidated Net Profit (EUR million) 80 63 60 41 40 20 0 2004 2005 21
Shareholders Equity and RONA Equity ratio 30% 26.1% 20% 28.3% Return on Net Assets (RONA) 15% 10% 8.7% 13.0% 10% 5% 0% 2004 2005 0% 2004 2005 22
HOCHTIEF Stock Performance 240% 220% 200% 180% 160% 140% 120% 100% 80% RWE exit GSM 2005 GSM 2006 60% 23
Dividends Dividend per share (EUR) 0.90 0,90 Dividends have increased by 80 percent over the last five years 0.60 0,60 0.30 0,30 0.50 0.55 0.65 0.75 0.90 0.00 0,00 2001 2002 2003 2004 2005* * Dividend proposal includes EUR 0.10 bonus for exceptional gain from airport investment partnership 24
Development 25
Project Development 18 projects with an investment volume of EUR 735 million in the construction phase 2005 most successful sales year to date Focus on office and hotel properties as well as developments revitalizing entire urban quarters Future prospects: Logistics market Healthcare and nursing 26
Construction 27
Construction Germany Reversal in the trend on the German construction market emerging HOCHTIEF Construction: Successfully bucked the overall negative trend Clear focus on profitable segments Healthy order situation 28
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Construction Europe Positive trend in the infrastructure segment Energy market a promising segment Strong impetus from markets in Central and Eastern Europe Growth rates of up to 8 percent forecast Growing demand in infrastructure, retail, logistics and office real estate 30
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Construction USA Consolidation phase initiated at Turner Strategy of selective, margin-based new business acquisition continued Growth rates of up to 9 percent forecast in the public buildings segment and industrial structures Top-notch positions in healthcare, education and office properties Construction manager on the world s tallest building 32
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Construction Asia-Pacific Continuing favorable trend in the infrastructure market once again, growth of 12 percent forecast for 2006 Growth market India 34
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Services 36
Services HOCHTIEF Facility Management integrierte Gebäudedienstleistungen Ziel: bis 2010 Europas führender Anbieter im integrierten Facility-Management beim Outsourcing von Gebäudedienstleistungen jährliche Wachstumsraten von etwa zehn Prozent besonderes Potenzial bei Gesundheitsimmobilien 37
Concessions and Operation 38
Concessions and Operation Contract mining Flourishing coal-mining business expanded through activities in highly promising iron-ore mining segment Leighton Group today the world s biggest contract miner Prospects remain outstanding 39
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Concessions and Operation Public-private partnership Strategic entry into the attractive UK and Irish PPP markets: investment level of around EUR 6 billion per year German public buildings segment: PPP projects worth between EUR 20 and 30 billion by 2010 Federal German freeways (A models): taking part in bidding processes for the A8, A4, A1 and A5 projects 41
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Concessions and Operation Airport Airport management successes continued Investment partnership HOCHTIEF AirPort Capital ensures entrepreneurial freedom for further growth Airport portfolio to be further expanded 43
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Strategy and Outlook Emphasis on: Promising service portfolio Promising markets Promising segments Networking Dovetailing 45
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HOCHTIEF Stands for Quality 1. We have the best people. 2. We offer our clients tailor-made end-to-end solutions. 3. We shape markets and set new standards. 4. We always act responsibly. 49
Fostering Young, Up-and-coming Talent Lack of experienced technical experts and management personnel Specialized young, up-and-coming engineers becoming thin on the ground Tremendous training efforts required Actively fostering young talent Scholarships and internships Training HOCHTIEF Academy 50
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Konzern-Ausblick 2006 New orders Order backlog Group sales Profit before taxes Consolidated net profit of the same order as the 2004 and 2005 records of the same order as the 2005 record of between EUR 13 and 14 billion continued improvement in operating earnings power; profit before taxes above the previous year s pretax profit adjusted for effects of the investment partnership medium-term goal of EUR 100 million, toward which we will make substantial progress in 2006 52
The HOCHTIEF 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. 53