Strategie der HOCHTIEFGruppe

1
THE INTERNATIONAL ECONOMIC FORUM OF THE
AMERICAS CONFERENCE OF MONTRÉALGROWING THROUGH
PARTNERSHIP From Risk to RewardInvestments in
InfrastructuresHilton Montréal BonaventureJune
7, 2006
Dr. Peter Noé, CFO HOCHTIEF
Aktiengesellschaft
2
Content

• Profile of HOCHTIEF
• Investment partnership
• - The partners
• - Objectives
• - Corporate Governance
• - Holding structure
• - Experience to date
• Further steps and impact on HOCHTIEF AG

3

• Profile of HOCHTIEF

4
Divisional structure
HOCHTIEF CONSTRUCTION SERVICES AMERICAS
HOCHTIEF CONSTRUCTION SERVICES ASIA PACIFIC
HOCHTIEF CONSTRUCTION SERVICES EUROPE
HOCHTIEFAIRPORT
HOCHTIEFDEVELOPMENT
Sales FY 04 n.a. 724 5,605 3,446 2,087EUR
million
5
Key figures for 2005
0,1
13.3
14,3
12,7
75,7
52,4
6
An holistic solution for our clients

• HOCHTIEF is designed to meet the full range of
  client needs maximizing profit potential
• Development
• Construction
• Services
• Concessions and Operation

7
Range of ServicesModule 4 Concessions and
operation

• Activities aimed at managing business processes
• Airport
• Concessions business(toll roads/traffic
  infrastructure)
• Public-private partnerships (public
  buildings/social infrastructure)
• Contract mining with a focus on operation

8
Systematic development of airport competence

• Investment partnership
• Asset Management for third parties

HTAC
HTAC
Tirana Sydney

• Transaction management
• Investor and financier
• Airport consulting

Hamburg Düsseldorf

• Investor
• Airport management
• Optimization and integration

• Construction management
• Shareholder (BOOT)
• Airport management

Athens

• System leadership in construction
• Project financing
• New contractual models

Warsaw Okeçie
King Abdulaziz International Jeddah Airport

• Complex contracting
• Value engineering
• Turnkey construction

Construction of airports worldwide

• General contracting
• Engineering services

• General construction services

9
Overview of HOCHTIEF AirPort GmbH (HTA)

• Founded in 1997
• Wholly owned subsidiary of the international
  construction services group HOCHTIEF
• HTA has shareholdings in the airports of Athens,
  Düsseldorf,
• Hamburg and Sydney
• HTA operates Tirana International Airport within
  the framework
• of a concession
• Core business
• Airport management
• Management of its own and third-party portfolios
• Transaction management for third parties
• Services for airports and related enterprises

10
Investment partnership

• - The partners
• - Objectives
• - Corporate Governance
• - Holding structure
• - Experience to date

11
The partners
Caisse de dépôt et placement du Québec (CDP) is a
financial institution that primarily manages
public and private pension and insurance funds.
As at December 31, 2005, it held CAD 122.2
billion (EUR 81.3 billion) of net assets. CDP
invests in the main financial markets as well as
in private equity and real estate. Hastings Funds
Management Ltd (HFM), a subsidiary of the third
biggest Australian bank Westpac, is one of the
largest infrastructure asset managers in
Australia. HFM currently manages a diversified
portfolio of Australian and international
infrastructure investments, with a total volume
of AUD 3.6 billion (EUR 2.1 billion). KfW
IPEX-Bank (KfW) is part of the KfW Bankengruppe
(KfW banking group), which was founded in 1948
and is owned by the Federal Republic of Germany
(80) and the German federal states (20). KfW
IPEX-Bank offers a broad range of financing
products in Germany and abroad, covering trade
and export financing, corporate loans and complex
project financings. New commitments entered into
by KfW IPEX-Bank in 2005 totalled approx. EUR
12.1 billion.
12

• Objectives of investment partnership
• (from Hochtiefs perspective)
• Committing financially strong and experienced
  partners to ensure further portfolio growth
• Preserving HOCHTIEF AirPort as a unit
• Confirming the communicated portfolio value of
  EUR 1 billion through capital market
  transaction
• Release EUR 350 million of cash to redeploy in
  other infrastructure investments
• Generating a steady flow of management fees
• Agreement on appropriate Corporate Governance
  structure

13

• Corporate Governance
• Fair balance of different interests of partners
  involved
• (roles, and therefore interests, of partners
  can vary clients,
• service provider, partner, investor, buyer,
  seller )
• Joint representation towards public
  co-shareholders
• - Day-to-day management
• - Material decisions
• Establishment of Investor Committee
• Preferential offer/purchase rights,
  tag-along/drag-along regime
• Agreement on investment criteria

14

• Corporate Governance (contd)
• Representation in Boards of Seed Assets
• Reporting requirements
• Participation in future acquisitions at
  partners own discretion /
• non-competition clause
• Right to assess exit options after 8 years
• Mix of fixed and performance-related fees,
  service fees, success
• fees

15
Holdings structure of HTA and HTAC
HOCHTIEF AirPort GmbH
HOCHTIEF AirPort Capital KGaA (Hastings Funds
Management Ltd. 50, Caisse de dépôt et placement
du Québec 40, KfW IPEX-Bank 10)
HOCHTIEF AirPort Capital Verwaltungs GmbH Co KG
Athens International Airport S.A.
(Greek state 55, private investor
5)
26.7
13,3
Flughafen Düsseldorf GmbH(City of Düsseldorf
50, Aer Rianta Int. plc 20)

10,0
20.0
Flughafen Hamburg GmbH
(City of Hamburg 51,
Aer Rianta Int. plc 9,8)
26.1
13,1
Sydney Airport Corporation Ltd.
(Macquarie Airports 63.64,
Ferrovial 20.9, Ontario Teachers Pension Plan
Board 4.96)
5,1
5.4
Tirana Airport Partners sh.p.k.
(DEG 31.7, Albanian-American Enterprise Fund
21.3)
47.0
Aer Rianta Int. plc. is a subsidiary of
Dublin Airport Authority plc.
Transport Logistics Consultancy Ltd.(TLC
Management 49, private investor 2)
49.0
16
Experience to date

• Challenges
• Reconciliation of different objectives
• (e.g. cash yield vs. reported earnings)
• Different mentalities
• Different legal and tax systems
• Different time zones

• Achievements
• Close/trustful relationship established
• Financial objectives clearly exceeded
• Exchange of best practices
• Proximity to local opportunities /
• excellent network
• Ensuring best financing conditions
• based on AAA-Rating of partners

17
Further steps and impact at HOCHTIEF AG
18
Valuation of Concessions

• Discount factors
• - Airports 13
• - Toll roads Public Buildings 11.9
  Blended rate

19
Share price development
47.70
24.40
20
(No Transcript)