CORPORATE HEADQUARTERS
CORPORATE COMMUNICATIONS
Press Release
Contact:
Martin Bommersheim
FY 2020: HOCHTIEF delivers resilient results despite pandemic // EUR 427 million net profit // Positive outlook based on solid order book
Alfredstraße 236 45133 Essen, Germany Tel.: +49 201 824-2642presse@hochtief.de
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• Nominal net profit of EUR 427 million, notwithstanding Covid-19 effects
o Operational net profit of EUR 477 million; -9,6% pre-Abertis
o Abertis impact of EUR -139 million year on year (yoy) due to negative traffic effects from Covid-19
o Sales of EUR 23.7 billion, yoy -6% f/x-adjusted, robust operational margins
• Underlying net cash from operating activities of EUR 1.1 billion
o Robust underlying free cash flow from operations in Q4 of
EUR 791 million vs EUR 830 million in 2019, notwithstanding Covid-19
• EUR 618 million of net cash; EUR 1.6 billion pre shareholder remuneration (EUR 743 million) and non-operating effects
o Thiess transaction completed; EUR 1.3 billion cash proceeds
• Robust order backlog of EUR 46 billion, stable qoq and yoy, f/x-adjusted; new orders of EUR 23.1 billion
• Guidance for 2021: Operational net profit of EUR 410-460 million
o Guidance represents an increase of 11 to 25% yoy compared with the EUR 368 million of 2020 adjusted for the divestment of 50% of Thiess
o 2020 Dividend proposal of EUR 3.93 per share
Payout ratio of 65% unchanged
o Strong position in core markets, solid tender pipeline of more than EUR 570 billion for 2021 and beyond
HOCHTIEF has delivered a resilient set of results for its continued operations* in 2020 notwithstanding the impact of Covid-19. The Group achieved a nominal net profit of EUR 427 million. "We are actively meeting the many challenges of the pandemic and continue to be successful", said CEO Marcelino Fernández Verdes. "This resilient performance is a consequence of the Group's focus on cash-backed profits and risk management supported by the benefits of the diversification by geography as well as by activity. At the same time HOCHTIEF
HOCHTIEF Aktiengesellschaft Sitz der Gesellschaft: Essen, Registergericht: Essen HRB 279, USt-IdNR. DE 1198 171 25, StNr. 5112/5710/0012, Vorsitzender des Aufsichtsrates: Pedro López Jiménez; Vorstand: Marcelino Fernández Verdes (Vorsitzender),
Nikolaus Graf von Matuschka, José Ignacio Legorburo Escobar, Peter Sassenfeld
companies are actively supporting government efforts to mitigate the impacts of the pandemic".
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The Group achieved an operational net profit of EUR 477 million. The economic impact of Covid-19 and the associated mobility restrictions imposed by governments had a very significant effect on Abertis. Adjusting for the
EUR 139 million year-on-year reduction in the contribution from the Group's 20% stake in the toll road operator, operational net profit declined by 9.6%. Margins remained firm on underlying sales of EUR 23.7 billion which were just 6% lower yoy on an f/x-adjusted basis.
The Group generated net cash from operating activities of EUR 1.1 billion on an underlying basis in 2020 with a solid performance in the seasonally strong fourth quarter which accounted for over 80% of the Group's annual figure.
HOCHTIEF ended the year with a net cash position of EUR 618 million. Adjusting for Group shareholder remuneration (EUR 743 million) and non-operating effects, HOCHTIEF would show a net cash position of EUR 1.6 billion which compares with EUR 1.5 billion at the end of 2019. During the year, HOCHTIEF has paid a dividend to shareholders of EUR 406 million, invested EUR 168 million in buying back its own shares with a further EUR 170 million in buybacks by CIMIC. Furthermore, close to EUR 104 million was invested to acquire 2.8% of CIMIC with the Group's stake standing at 78.6% at the end of the period. In terms of liquidity the Group's position remains strong at
EUR 5.4 billion, with a further EUR 2.1 billion of unused credit facilities.
Notwithstanding the impact of Covid-19, new orders of EUR 23.1 billion were secured with a disciplined bidding approach maintained across all divisions. As a consequence, the Group's order book remained robust at approximately
EUR 46 billion, stable during the last quarter as well as compared with twelve months ago, on an f/x-adjusted basis.
Digital transformation and innovation
Two years ago, HOCHTIEF embarked on a digital transformation with the launch of the innovation company Nexplore. Joining forces with leading tech firms and
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universities, and together with our worldwide operational project teams, Nexplore is developing several hardware and software applications. They support monitoring construction progress on major projects, help to keep continuous track of work quality, pinpoint potential savings, and analyze complex contracts. Nexplore has invented special sensors that warn excavator operators of potential accidents involving people. In the USA, for example, we deployed an inhouse corona app specifically developed for use on construction sites.
"Artificial intelligence, Industry 5.0, and blockchain will continue to transform HOCHTIEF. Our goals are cost efficiency, scheduling, quality control, improved productivity, simpler maintenance, and effortless collaboration with all those involved", said CEO Marcelino Fernández Verdes. At the same time, digitalization helps to massively cut carbon emissions and conserve natural resources far more effectively than in the past. Recently, Nexplore joined the MIT Climate and Sustainability Consortium. It convenes an alliance of leaders from a broad range of industries like Apple, IBM, Boeing, Dow, PepsiCo or Verizon and aims to vastly accelerate largescale, real-world implementation of solutions to address the threat of climate change.
Looking forward, the local teams have identified a project tender pipeline of relevant projects worth over EUR 570 billion for 2021 and beyond supported by EUR 180 billion in PPP projects in addition to the numerous stimulus packages approved by governments.
HOCHTIEF continues to focus on attractive shareholder remuneration. Reflecting the Group's resilient profit and cash generation performance and supported by a positive outlook for core markets, the proposed dividend is EUR 3.93 per share, notwithstanding Covid-19. This corresponds to an unchanged dividend payout ratio of 65% of nominal net profit.
Group Outlook: HOCHTIEF expects to achieve an operational net profit in 2021 in the range of EUR 410-460 million, an increase of 11 to 25% yoy compared with the EUR 368 million of 2020 adjusted for the divestment of 50% of Thiess.
CORPORATE COMMUNICATIONS
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HOCHTIEF Group: Key Figures
(EUR million)
SalesSales adjustedOperational profit before tax/PBT
Operational profit before tax/PBT pre Abertis Operational PBT margin
Operational PBT pre-Abertis margin
Operational net profit
Operational net profit pre-Abertis
Operational earnings per share (EUR)
EBITDA
EBITDA margin
EBIT
EBIT pre-Abertis
EBIT margin
EBIT pre-Abertis margin
Nominal profit before tax/PBT
Nominal profit before tax/PBT pre Abertis
Nominal net profit
Nominal earnings per share (EUR)
Net cash from operating activities
Underlying net cash from op. activities
Net operating capital expenditure
Free cash flow from operations
Net cash/net debt
New orders
Order backlog
Order backlog adjusted
Employees (end of period)FY 2019)
FY Change
22,953.8
23,679.2
802.3
819.4
25,851.9
-11.2%
25,851.9
-8.4%
1,108.1
985.7
-27.6% -16.9%
5,046.1
5,771.5
181.9
194.8
7,100.1
7,100.1
306.4
280.2
Q4 2019
Q4 Change -28.9% -18.7% -40.6% -30.5%
3.4
4.3
(0.9)
3.2
4.3
(1.1)
3.5
3.8
(0.3)
3.4
3.9
(0.5)
476.7
668.9
-28.7%
113.9
493.8
6.87
1,702.7
546.5
-9.6%
1,892.8
9.47
-27.5% -10.0%
126.8
1.67
480.3
191.4
165.2
497.2
2.71
-40.5% -23.2% -38.4% -3.4%
7.2
7.3
-0.1
8.3
7.0
1.3
999.1
1,191.5
-16.1%
290.8
1,016.2
1,069.1
-4.9%
303.7
312.8
286.6
-7.0% 6.0%
4.2
4.6
(0.4)
5.0
4.4
0.6
4.3
4.1
0.2
5.3
4.0
1.3
834.9
(627.5)
254.6
(1,408.4)
852.0
(749.9)
267.5
(1,434.6)
427.2
(206.2)
103.2
(662.5)
6.16
(2.92)
1.51
(9.38)
742.8
1,602.5
(859.7)
660.6
1,098.1
371.1
371.7
617.9
23,069.9
45,840.4
45,840.4
46 644
30,428.8
51,362.1
48,296.7
1,559.4
1,084.4
1,529.0
53 282
518.1
-24.2% -10.8%
-12.5%
(461.3)
(147.0)
(712.7)
(911.1)
-5.1%
890.1
99.4
561.2
617.9
6,206.0
45,840.4
45,840.4
46 644
1,007.9 | (347.3) |
1,006.9 | (116.8) |
176.6 | -77.2 |
831.3 | (270.1) |
1,529.0 | (911.1) |
8,815.4 | -29.6% |
51,362.1 | -10.8% |
48,296.7 | -5.1% |
53 282 | -12.5% |
Note: Numbers reflect continued operations, operational profits are adjusted for non-operational effects
CORPORATE COMMUNICATIONS
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Hochtief AG published this content on 18 February 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 18 February 2021 13:04:04 UTC.