HOCHTIEF : 9M 2023 results presentation

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

1. 26.0

1. 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