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Essen,

Strong FY 2017 results, robust order book and a solid tender pipeline pave the way for further sustainable growth

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  • FY 2017: EUR 421 million nominal net profit (+31% year on year)
  • Sales up 14% accompanied by strong cash flow
  • EUR 30.4 billion new orders (+23%)
  • HOCHTIEF is well positioned in attractive and growing markets
    • Strong tender pipeline in our core markets USA, Canada, Asia-Pacific and Europe of close to EUR 500 billion in project work for 2018 and beyond
  • Guidance for 2018 confirmed: Operational net profit of EUR 470–520 million (+4% to 15%)
  • Annual General Meeting in Essen to vote on 30% dividend increase to EUR 3.38 per share
  • Next transformation of the Group is focused on using digital environments
    • Innovation centers planned in North America, Australia and Europe
    • Close cooperation with leading universities

 

HOCHTIEF is well positioned to take advantage of its solid balance sheet and the strong tender pipeline. “For the fifth year in a row, we have continuously improved our results and significantly strengthened our performance. We expect a further sustainable improvement in the coming years”, said CEO Marcelino Fernández Verdes at the Annual General Meeting in Essen.

Highlights of the 2017 results included a strong net profit growth by 31% to EUR 421 million, an increase of sales by 14% accompanied by net cash from operating activities of EUR 1.4 billion. At over EUR 30 billion, new orders in 2017 were EUR 5.6 billion higher, an increase of 23% year on year.

In total, HOCHTIEF has identified a pipeline worth around EUR 500 billion of relevant projects coming to the Group’s key markets in North Ameri¬ca, Asia-Pacific and Europe in 2018 and beyond.

The company confirmed its guidance for 2018: An operational net profit of EUR 470–520 million which is an increase of 4% to 15% compared with 2017.

The Annual General Meeting in Essen will vote on a proposed 30% dividend increase to EUR 3.38 per share.

HOCHTIEF CEO Marcelino Fernández Verdes announced the next transformation of the Group, which will be driven by innovation. The digitalization will be implemented Group-wide across all businesses, operations and systems. HOCHTIEF is in the process of establishing innovation centers in each of its key regions North America, Australia and Europe. “The plan is to leverage our in-house expertise in close cooperation with leading universities worldwide. This will allow us to develop and improve our operational excellence,” he said.

The digital transformation will result in improved levels of competitiveness, productivity and risk management across projects and new career opportunities for HOCHTIEF employees.