Q1 2022: HOCHTIEF increased operational net profit by 19% to EUR 118 million // Guidance confirmed // CIMIC squeeze-out initiated

• Nominal net profit EUR 106 million, +23% year on year (yoy); operational net profit EUR 118 million, +19% yoy
  • Firm performance with sales up 8% yoy at EUR 5.3 billion, driven by Americas and Asia Pacific
  • Robust operational PBT margin of 3.3% (pre-Abertis)
  • Abertis earnings contribution recovery continuing up EUR 8 million yoy; average daily traffic above pre-Covid level of Q1 2019
• Free cash flow from operations pre-factoring of EUR 648 million last twelve months, up EUR 79 million yoy
• Net debt of EUR 351 million, underlying improvement yoy of EUR 242 million post EUR 311 million in dividends; Q1 2022 includes EUR 364 million CIMIC investment
• Order backlog of EUR 50.2 billion up EUR 2.6 billion, or 6%, yoy
  • New orders in Q1 2022 of EUR 6.5 billion, a 10% increase yoy; EUR 30.8 billion of work secured last twelve months equivalent to 1.2x work done
  • Proportion of lower-risk projects has significantly increased over last 4 years to more than 80% of order book
• Guidance FY 2022 confirmed: operational net profit EUR 475–520 million (+5 to15% yoy)
• Offer for CIMIC minorities well advanced; squeeze-out initiated and completion expected in Q2 2022

“HOCHTIEF delivered a strong profit performance in the first quarter of 2022 and further order book growth, notwithstanding the significant challenges that the start of the year has brought with it”, said CEO Marcelino Fernández Verdes. “We have also made excellent progress with our offer to buy out the minorities of CIMIC. We expect to achieve 100% ownership of our Australian business in the second quarter”.

Nominal net profit rose by 23% year on year or EUR 20 million to EUR 106 million in Q1 2022 on sales up 8% at EUR 5.3 billion. Operational net profit increased by EUR 19 million to EUR 118 million, 19% higher year on year.

Operational PBT increased by EUR 22 million, or 14%, to over EUR 179 million driven mainly by the Asia Pacific division and Abertis. Margins remained robust across the Group with HOCHTIEF’s operational PBT margin steady at 3.3% pre-Abertis. The profit contribution from the toll road operator investment increased by EUR 8 million year on year to EUR 5 million with Q1 2022 traffic volumes above pre-Covid level of Q1 2019.

The net operating cash outflow reflects the characteristic seasonality of the first quarter of the year as well as a significant impact from forex movements. Looking at the last twelve months, to eliminate seasonality, HOCHTlEF achieved a solid performance with free cash flow from operations of EUR 648 million, pre-factoring, a EUR 79 million year-on-year increase.

At the end of March 2022, HOCHTIEF had a net debt position of EUR 351 million. Adjusting for the variation in factoring during the last twelve months as well as the EUR 364 million investment in CIMIC shares, the Group would show a net cash position of EUR 249 million; the underlying year-on-year change on this comparable basis shows an increase in net cash of EUR 242 million. And this is after shareholder remuneration of EUR 311 million in the last twelve months. The Group ended the quarter with a strong liquidity position of EUR 4.5 billion.

New orders increased by 10%, year on year to over EUR 6.5 billion. Over the last twelve months order intake has remained strong across all divisions amounting to 1.2x work done. As a consequence, the Group’s order book stands at over EUR 50 billion and is up by EUR 2.6 billion, or 6%, since March 2021. The proportion of lower-risk projects has substantially increased over the last 4 years to currently more than 80% of our order book.

CIMIC takeover offer
An active evaluation of capital allocation opportunities is a key element of the Group’s strategy. On the February 23, HOCHTIEF submitted an unconditional and final off-market takeover offer for the 21.4% free-float shares of CIMIC at 22 AUD/share. As of early May 2022, HOCHTIEF attained over 96% of CIMIC Group Limited as a result of the takeover offer. HOCHTIEF has initiated a compulsory acquisition (squeeze-out) of all the shares in CIMIC which HOCHTIEF does not already own which is expected to be completed during Q2 2022. On May 6, 2022, CIMIC shares ceased trading on the Australian stock exchange.

Group Outlook
HOCHTIEF is well positioned for the future based on solid, long-standing positions in its key local markets, a de-risked and growing order book and the identified tender pipeline of relevant projects worth over EUR 600 billion for 2022 and beyond, including PPP projects. The numerous stimulus packages approved by governments and the heightened focus on environmentally friendly projects provide additional opportunities. During 2022 HOCHTIEF will continue advancing the global implementation phase of the Sustainability Plan 2025.

For 2022, HOCHTIEF expects to achieve an operational net profit in the range of EUR 475−520 million, an increase of between 5% and 15% year on year, subject to market conditions.

HOCHTIEF Group: Key Figures

Note: Operational profits are adjusted for non-operational effects;