ONE ROOF

to the emerging challenges of the financial crisis with
suitable action to safeguard financing and liquidity. We
successfully continued this policy in the year under review,
negotiating a so-far unutilized revolving credit facility
for EUR 400 million and issuing four promissory
note loans for a total of EUR 300 million. The cash inflow
from the new promissory note loans was used to
refinance a EUR 200 million promissory note loan from
2004, which was due to expire. This was supplemented
by corporate actions at Leighton, mostly in the form of
bond issuance totaling EUR 165.9 million. The HOCHTIEF
Group took out new borrowing for a total of EUR 1.13
billion in fiscal 2009. This was almost exactly countered
by cash outflows for debt service in the amount of EUR
1.16 billion. Most of this figure related to HOCHTIEF
Aktiengesellschaft and Leighton. In the prior year, use
was made of the low price levels induced by the financial
crisis to make purchases of treasury stock, resulting
in an outflow of funds of EUR 93.5 million. In the
period under review, treasury holdings of HOCHTIEF
Aktiengesellschaft stock remained virtually constant.
Payments into equity by minority shareholders amounted
to EUR 66.4 million in fiscal 2009. These mainly comprised
the participation by minority owners in the shareholders’
contribution at Sydney Airport. In the prior
year, stock issues at Leighton and Sydney Airport generated
cash proceeds of EUR 222.1 million. After payments
of dividends to HOCHTIEF’s and minority shareholders
totaling EUR 224.8 million (2008: EUR 234.6
million), net cash used in financing activities came
to EUR 181 million.
Cash and cash equivalents stood at EUR 1.77 billion as
of December 31, 2009, down EUR 18.1 million on the
prior-year figure of EUR 1.79 billion. EUR 62.2 million of
this figure (2008: minus EUR 25.7 million) is accounted
for by the effect of exchange rate changes.
Free cash flow was strongly positive, at EUR 100.7 mil-
lion. The figure consists of net cash provided by oper-
ating activities (EUR 949.3 million) less net cash used in
investing activities (EUR 848.6 million). Free cash flow
in the prior year was a negative EUR 635.2 million due
❘ Information for our Shareholders ❘ ❘ Management Report ❘ ❘ Financial Statements and Notes ❘
to significantly lower cash flow provided by operating
activities and higher capital expenditure.
Group finances secured despite global capital
and financial market crisis
Although international financial markets continued to
be characterized by severe uncertainty in 2009 and
some forms of financing were impossible to deploy for
part of the year, the HOCHTIEF Group once again secured
its long-term finances during the year under review.
First of all, in the absence of other financing options on
the market, the Group successfully negotiated a revolving
credit facility as a tranche of the existing syndicated
guarantee facility*. This required approval from the entire
banking syndicate as the syndicated guarantee facility
had not initially made provision for cash drawings. Following
successful renegotiation, the package now comprises
a reduced guarantee facility of EUR 1.5 billion
and alongside this a EUR 400 million revolving credit
tranche. HOCHTIEF consented in negotiations to reducing
the total size of the overall facility by five percent
to EUR 1.9 billion.
The documentation remained almost completely un-
changed. Modifications were only necessary regarding
the technical distinction between guarantee facility and
credit facility drawings. The overall term of the original
facility was also retained so that it provides HOCHTIEF
with long-term revolving guarantee and revolving credit
finance through to the end of October 2012.
The terms for the credit facility tranche reflect the
HOCHTIEF Group’s excellent credit standing on international
capital markets despite a minor adjustment
necessitated by widening spreads. The currently still
favorable overall interest rate climate makes up for this
margin expansion, however. The credit facility tranche
remained undrawn as of the balance sheet date. This
therefore remains available in full to finance the longterm
growth of the HOCHTIEF Group. The EUR 400
million facility** consequently ranks alongside the similarly
long-term EUR 600 million syndicated revolving
*See glossary on page 198.
**See glossary on page 197.
Annual Report 2009 69