HOCHTIEF : Steady Progress in First Quarter more

Press information

HOCHTIEF: Steady Progress in First

Quarter

Improving cash flow trend

■ Improved trend in cash flow from operations and free cashflow

■ Seasonal working capital outflow reduced

Solid growth in Group operating results

■ EBT: EUR 134.0 m; +17.3% (vs EUR 114.2 m Q1 2013)

■ Net profit: EUR 53.3 m; +22.7% (vs EUR 43.4m)

■ EPS: EUR 0.77; +30.5% (vs EUR 0.59)

■ Improved results in all operational units

Net debt down EUR 1.4bn year-on-year Strong growth in new orders

■ New orders +18.7% vs Q1 2013 (like-for-like)

■ Stable order backlog of EUR 40 bn

Further progress in strategic reorganization during Q1 FY 2014 operational guidance remains unchanged

HOCHTIEF has made a promising start to the year: The Group has shown an improved trend in cash flow from operations and free cash flow. The seasonal working capital outflow has been reduced. Furthermore HOCHTIEF has seen a solid growth in Group operating results: On a comparable basis - i.e. adjusted for one-off and non-operational items such as the effects of restructuring and deconsolidation - earnings before taxes, at EUR 134 million,

CORPORATE COMMUNICATIONS

Christian Gerhardus

Opernplatz 2

45128 Essen, Germany

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page 1

05/07/2014

HOCHTIEF Aktiengesellschaft , Sitz der Gesellschaft: Essen, Registergericht: Essen HRB 279, USt-IdNR. DE 1198 171 25, StNr. 5112/5710/0012,

Vorsitzender des Aufsichtsrates: Thomas Eichelmann; Vorstand: Marcelino Fernández Verdes (Vorsitzender), Peter Sassenfeld

were up 17.3% on the prior-year quarter. Net profit increased by 22.7% to EUR 53.3 million, while earnings per share amounted to EUR 0.77 an increase of 30.5%. The solid increase came from all operational units.
The Group registered a significant year-on-year net debt reduction to under EUR 600 million, i.e. a decrease of approximately EUR 1.4 billion versus the end of Q1 2013. The new order volume of EUR 5.69 billion represents an 18.7% increase on a comparable basis - i.e. adjusted for deconsolidation and f/x-effects - year-on-year to the prior-year period. The order backlog continued to be stable, at roughly EUR 40 billion, slightly higher than at the end of
2013 and is at a similar level to a year ago once adjusted for the impact of exchange rate effects and divestments (EUR 8.9 billion).
This development shows that HOCHTIEF is well on track to bolster its position as a relevant global infrastructure contractor with sustained profitable growth. "It is my clear objective to systematically pursue the path we have embarked upon and to push ahead our Group-wide reorganization. The focus throughout is on sustained cash profitability, an improved approach to risk management and a strong balance sheet. This is the way to enhance the value of HOCHTIEF", states Marcelino Fernández Verdes, CEO of HOCHTIEF.
HOCHTIEF's shareholders continue to participate in the Group's progress, for example via the cancellation of 10% of the treasury shares, the company carried out in the first quarter of
2014. Furthermore the Executive Board and the Supervisory Board will propose an increase in the Group's dividend for fiscal year 2013 to EUR 1.50 per share (+50%) to the shareholders at today's AGM.
Focus on core business
The first quarter of the new year saw HOCHTIEF once again rigorously pursue its chosen strategic path, focusing on the core business of delivering complex infrastructure projects. The Group will increase its shareholding in Leighton, has made changes in the management team and increased its presence on the Board.
HOCHTIEF firmly believes in the growth potential of its Leighton Group company and has, accordingly, increased its stake in Leighton at the beginning of the year. In addition, in March
2014, HOCHTIEF announced its intention to make Leighton's shareholders an offer for three out of every eight shares they hold. The Independent Directors of Leighton, based on an independent experts' report, have recommended that shareholders accept the AUD 22.50 per share offer ex dividend. If all accept, HOCHTIEF will increase its stake in Leighton from nearly 59% to a maximum of approximately 74.2% for a cash consideration of about AUD
1.2 billion (around EUR 800 million). The offer will be funded from excess cash.
HOCHTIEF intends to work with the Leighton Board and management to complete the broad based, general review of Leighton's operating model that is currently being undertaken by

CORPORATE COMMUNICATIONS

Christian Gerhardus

Opernplatz 2

45128 Essen, Germany

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Fax: [phone] [e-mail]

page 2

05/07/2014

HOCHTIEF Aktiengesellschaft , Sitz der Gesellschaft: Essen, Registergericht: Essen HRB 279, USt-IdNR. DE 1198 171 25, StNr. 5112/5710/0012,

Vorsitzender des Aufsichtsrates: Thomas Eichelmann; Vorstand: Marcelino Fernández Verdes (Vorsitzender), Peter Sassenfeld

Leighton management. A particular focus of the review is whether the existing operating businesses of Leighton can be more efficiently structured.
In Europe HOCHTIEF has disposed of further non-core activities: The Group sold its stake (50%) in aurelis Real Estate in mid-March. The remaining European real-estate businesses-HOCHTIEF Projektentwicklung, formart, and HOCHTIEF Property Management-likewise no longer form part of the core business. For these, too, HOCHTIEF is looking at several options to release capital from the business including strategic partners or potential buyers. The proceeds from disposals are used to invest in the Group's core business, for example to increase the stake in Leighton, strengthen the Group's balance sheet and remunerate HOCHTIEF's shareholders.
Operational divisions
In the first three months of 2014, all divisions have won attractive new orders. In the USA, Turner will deliver a number of building construction projects, including the extension of the Anaheim Convention Center in California. In Canada, Flatiron secured a large follow-on contract as part of the Ruskin Dam upgrade. New orders for the HOCHTIEF Asia Pacific division include a contract for tunnel buildings, systems and fitting out works with the Central-Wanchai Bypass tunnel in Hong Kong and a 56-kilometer stretch of freeway to be built by Habtoor Leighton Group near the Qatari capital, Doha. For the HOCHTIEF Europe division HOCHTIEF Infrastructure started dismantling and replacing the 400-meter Langenfeld bridge on the A7 freeway in Hamburg-Stellingen. In Trier, the company is delivering a lock facility for the local waterways and shipping office.
Outlook
The Group guidance remains unchanged. In 2013, the operational net profit was EUR 207.5 million. In 2014, the Group continues to expect further progress with an operational Group net profit in the range of EUR 225-250 million.

CORPORATE COMMUNICATIONS

Christian Gerhardus

Opernplatz 2

45128 Essen, Germany

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page 3

05/07/2014

HOCHTIEF Aktiengesellschaft , Sitz der Gesellschaft: Essen, Registergericht: Essen HRB 279, USt-IdNR. DE 1198 171 25, StNr. 5112/5710/0012,

Vorsitzender des Aufsichtsrates: Thomas Eichelmann; Vorstand: Marcelino Fernández Verdes (Vorsitzender), Peter Sassenfeld

HOCHTIEF

KONZERNZENTRALE

HOCHTIEF Grou111.:Reportedllfigures

(B.JFi mJ b:fll	012014	01 2013 l resta:tdj"	Percentllge cNionge	Full yeer 201:l (resf..!!la:ll"
Newor-deni	5,600.5	5,5413.8	2,;6	26,491.5
WQI!k IIOft1!!	8,174.9	6, .1	· 4.9	29·	,049.2'
Otrder bacldog	40,207.8	50,6'30.	8.	-20..7	:l9.94cl.4
Di.	vi!ioiOni!l.	5,.6IIJ!O.i6	5,788.9	·3.3	2	'7,03MI
E.xtemalsal:es..	5,.599JD	!;;,766.6	-3..01	2'7,022.2'
EBITDA	307.1	-g	-22.0	1,008.1
liBIT..	117'8.1.1	Hl7.!;i	· 4.6	1,112.7
Pront betore tall:eB..	1	1 2M	1 22.6·		001.2
COOIOO iidn•t prgfit-	44..1	435	u	171.2'
Eamlng!t p&r s Me. [EUR)	o,B4	0.59	8.5	2.37
CE!lih fl(M' from operation&...	-488.9	..a)G_g	-19.4	200.8
Fr".;.• nflrnl'	- 6	-1,1 @.1	·OOA	1,S!l7.0
Netdebt	,$74.5)	{2,01 8.	7}	-71.5	(39.6)
lirnpl-	72,506 P1<01	82,196 P1311:	·11.8	00,912 :l l

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a;:u R mlra·)	012014	01 2013 i r()Stai!Jdl'	Percenblge change	Full 'flllit 2013 (r!}SI<.IlOOt'
Ntwwdw"	6,319.1	!;;,3:231:!	1	'8.1	26,062.0
Workdone:r.J	7,000.0	f'i.,2i-9.0	11.9	28.400.8
Otrd«bacl00g11	46,720.5	.297,	6	-3.3	39,940.4
E:t; emal$111M''	8,.360.8	!;i,ffi].!;i	1	'4,4	26,4-89.
IOBIP	1	1 90..8	174.&	ILO	834.5
PrOfit lMfOJ• ta.>.•li"l	1	1 34.0	11 4.2	'1'7.<.1	5ti9.6
Conscl'ldated	omet 1pFofil/(loH)">	53.3	43.4	22.7	178.1
Eaming& per ali!ve [EUR3· "'	o.n	o 59	3&.5	2.47

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HOCHTIEF Aktiengesellschaft, Sitz der Gesellschaft: Essen, Registergericht: Essen HRB 279, USt-ldNR. DE 1198 171 25, StNr. 5112/5710/0012,

Vorsitzender des Aufsichtsrates: Thomas Eichelmann; Vorstand: Marcelino Fernandez Verdes (Vorsitzender), Peter Sassenfeld

CORPORATE COMMUNICATIONS

Christian Gerhardus

Opernplatz 2

45128 Essen, Germany

Tel.: [phone]

Fax: [phone] [e-mail]

page 4

05/07/2014