Strabag Se · VIE:STR
Strabag — Investor Day (October 2008)
37 slides from Strabag's investor day presentation, Oct 24, 2008
Slide 1: STRABAG SE – Capital Markets Day
STRABAG SE – 24 October 2008 Capital Markets Day
Slide 2: Disclaimer
Disclaimer This presentation is made by STRABAG SE (the "Company") solely for use at investor meetings and is furnished to you solely for your information. This presentation speaks as of October 2008. The facts and information contained herein might be subject to revision in the future. Neither the
Slide 3: Today's Schedule
Today’s Schedule 11:00 a.m. – 11:45 a.m. Reception and breakfast 11:45 a.m. – 12.30 a.m. Presentation by Roland Jurecka, STRABAG SE Management Board “Update on Tunnelling Technology – Introduction to the Project Perschling” 12:30 a.m. – 2.30 p.m. Lunch Presentation by Christian Ebner, STRABAG SE Sec
Slide 4: Update on Tunnelling Technology – Introduction to the Project Perschling
Update on Tunnelling Technology – Introduction to the Project Perschling Mr. Roland Jurecka Member of the Management Board of STRABAG SE Technical Head Special Divisions & Concessions 4
Slide 5: Tunnelling technology
Tunnelling technology Tunnels for Caverns Water power plants infrastructure projects Motorways Electricity Galleries Railways Storages 5
Slide 6: Tunnelling technology (cont.)
Tunnelling technology (cont.) Tunnelling methods NATM TBM Shields New Austrian Tunnelling Method Tunnel Boring Maschines Drill and Blast 6
Slide 7: NATM
NATM Geological conditions – Hard rock to soft rock – Solid soil Excavation method – Drill and blast – Excavation – Rod header Support system – Rock bolts – Lattice girders – Shot crete Source: The Austrian Art of Tunnelling, ITA Austria 7
Slide 8: TBM
TBM Geological conditions – Hard rock Excavation method – Cutter head Support system – Rock bolts – Shot crete 8
Slide 9: Shield
Shield Geological conditions – Soil to soft soil – Ground water Excavation method – Cutter head in excavation chamber Support system – Segmental precast lining 9
Slide 10: STRABAG's tunnelling business
STRABAG’s tunnelling business Key facts Output volume in 2007 Output volume in 2007: € 368 million €m Output volume in 2008e: € 610 million Germany 55.6 Order backlog, Aug. 08: € 1,650 million Austria 104.2 Very volatile business field Switzerland 98.2 Responsible management board members: Canada 48
Slide 11: STRABAG's tunnelling strategy
STRABAG’s tunnelling strategy Objective: Market leader in tunnelling Strategy: – Europe as core market – World markets: to achieve full capacity utilisation (e.g. Niagara) – STRABAG’s added value – STRABAG’s own workforce – STRABAG’s resources – concrete, quarries, aggregates – Joint Ventures only i
Slide 12: STRABAG's tunnelling value added along the value chain
STRABAG’s tunnelling value added along the value chain Design Design department Züblin Road- / Earthworks STRABAG Transportation Infrastructures Underground works STRABAG / Züblin (Special ground engineering) NATM, TBM, Own equipment (BMTI) Shield Own staff Water proofing Own workforce systems Reinf
Slide 13: Risks and chances in tunnelling
Risks and chances in tunnelling Risks Chances Contractual risks Soil risks / changed underground conditions Competitors Variation offers / orders Soil risk / underground risk Design and construction improvements and Currency risk savings Escalation In-house know-how – own workforce STRABAG added val
Slide 14: STRABAG's major tunnelling projects
STRABAG’s major tunnelling projects Railway Tunnel Brixlegg Railway Tunnel Jenbach Construction of railway Construction of the main tunnel section Vomp-Terfens contract section H8 Volume: € 204m (32% share) Volume: € 110m (67% share) Project schedule: 2003-2008 Project schedule: 2006-2011 Challenge:
Slide 15: Major projects under construction
Major projects under construction Project name Order backlog* Country STRABAG share Railway Tunnel Jenbach € 27 million Austria 67% Railway Tunnel Vomp - Austria 67% Railway Tunnel Wienerwald € 8 million Austria 14% Prague Ring Road € 90 million Czech Republic 33% Niagara Power € 232 million Canada
Slide 16: Focus on future major projects
Focus on future major projects Project name Estimated Volume Country Gotthard base tunnel / Monte Cenery CHF 1.5 billion Switzerland Brenner base tunnel € 6 billion Austria Koralmtunnel € 5.0 billion Austria Stuttgart 21 € 2.8 billion Germany Linth-Limmern water power CHF 1.5 billion Switzerland Met
Slide 17: Impression of the Brenner base tunnel
Impression of the Brenner base tunnel 17
Slide 18: Introduction to the Perschling tunnel project – Lot 3
Introduction to the Perschling tunnel project – Lot 3 18
Slide 19: The Perschling chain of tunnels
The Perschling chain of tunnels Austria, part of the Trans European Network The new railway line between Vienna and St. Pölten, with a distance of 42.3km Project name: Railway line from Vienna - St. Pölten Tunnel use: Railway Project owner: ÖBB Infrastruktur Bau AG Construction: STRABAG AG Length: 3
Slide 20: Total length of lot 3 is 13km
Total length of lot 3 is 13km Wien Reiserbergtunnel Stierschweiffeldtunnel Raingrubentunnel St. Pölten 20
Slide 21: Three tunnels
Three tunnels Reiserberg tunnel – TBM driven section 1,307m – Open cut section 23m Stierschweiffeld tunnel – Open cut section East 396m – TBM driven section 2,857m Raingruben tunnel – Cover method between bored piles 408m – TBM driven section 2,120m – Open cut section West 204m TOTAL 7,315m 21
Slide 22: Perschling tunnel boring machine
Perschling tunnel boring machine Technical data of the TBM Cutter head Diameter cutterhead: 13.03m Length of shield: 10.00m Backup system: 80.00m Weight of cutterhead + shield: 1,520to Installed power: 6,200kW Torque: 13,500kNm Segment lining: 5+1 segments 22
Slide 23: Breakthrough at the Westbahn (Stierschweiffeld tunnel)
Breakthrough at the Westbahn (Stierschweiffeld tunnel) 23
Slide 24: STRABAG SE – Update on Strategy
STRABAG SE – Update on Strategy Dr. Christian Ebner Secretary General of STRABAG SE 24
Slide 25: 4.4% guaranteed. Asset resistant to crisis since 1842.
* * 4.4% guaranteed. Asset resistant to crisis since 1842. Source: FT, 20 October 2008 25
Slide 26: Highlights
Highlights Record level of approx. € 15 billion Order 53% public clients, 47% private clients backlog Still full employment in all markets Output volume 2008 + 24 %, 2009: +20 % Guidance +28% EBIT in 2008 -> € 400 million – stable EBIT in 2009 Positive Free Cash Flow in 2009 expected Margin increase
Slide 27: What we promised in the prospectus
What we promised in the prospectus Driving market consolidation through selective acquisitions – Bolt-on acquisitions in CEE-markets to expand market leadership – Acquisitions in road construction in Western European markets – Acquisitions in specialized growth segments (e.g. environmental technolog
Slide 28: What we delivered
What we delivered 2007 2008 Total Output volume / ~25(1) 160(2) ~27(2) 350(3) 121(2) 276(3) ~28(2) 70(2) 1,000(4) 2,057 revenue (in € mln) Employees 270 370 280 1,600 400 1,500 168 700 6,240 11,528 Germany, Czech Germany, Austria, Country Croatia Italy Germany Sweden Switzerland Czech Rep., Republic
Slide 29: Russia – Robust growth
Russia – Robust growth Russian key indicators 25% 20% 15% % change YoY 10% 5% 0% 2000 2001 2002 2003 2004 2005 2006 2007 2008E 2009E 2010E -5% Investment Private Consumption Real GDP Industrial Production Government Consumption Strong investment and private consumption expected Very low level of pri
Slide 30: Russia – Construction output
Russia – Construction output Russian construction output growth % Euroconstruct revised Russian growth figures 25 downwards in September 2008 20 Expected growth still in the double-digit area 15 All segments > 10 % 10 2008-2010 annual GDP growth 5 7.6 % on average expected 0 2006 2007 2008 2009e 201
Slide 31: Stable Russian budget and high reserves
Stable Russian budget and high reserves Revenues / Expenditures / Balance Debt / Forex reserves / Stabilisation fund 25 500 20 400 15 300 10 200 5 100 0 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 0 -5 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 -10 YTD Revenues (% of GDP) Expenditu
Slide 32: Development of oil price
Development of oil price USD / barrel 140 132.4 133.2 122.7 120 113 109 103.7 100 95 98.1 92.6 91 92 82.5 80 76.9 75.9 60 40 20 0 Sep.07 Oct.07 Nov.07 Dec.07 Jan.08 Feb.08 Mar.08 Apr.08 May.08 Jun.08 Jul.08 Aug.08 Sep.08 Oct.08 Source: Statista.org, October 2008 32
Slide 33: Very low public debt
Very low public debt 120% 107% In % of BIP 2007 100% 91% 76% 80% 66% 58% 57% 54% 60% 45% 45% 45% 41% 38% 38% 40% 30% 17% 13% 12% 20% 7% 0% Czech Republic Euro Area Romania Germany Lithuania Hungary Ukraine Turkey Poland France Japan China Serbia Russia India Italy US UK The Russian government is nea
Slide 34: Private households nearly debt-free
Private households nearly debt-free 100% 90% 80% 70% 60% % of GDP 50% 40% 30% 20% 10% 0% USA UK Brazil Hungary Germany Romania India Kazakhstan Ukraine Czech Rep Turkey Russia Slovenia Bulgaria Poland Slovakia China Croatia Estonia Mortgage Loans (end of 2007) Retail Loans (end of 2007) Source: Merr
Slide 35: Russia – Largest projects of order backlog
Russia – Largest projects of order backlog Company Project name Location Order backlog* Project start Project end Project description share in % Residential building incl. Zareschje Moscow 100 € 420 million 09/2008 09/2013 infrastructure Steelworks Wyksa Wyska 100 € 293 million 11/2007 10/2010 Steel
Slide 36: Millipede pays off
Millipede pays off Output % of total IMF GDP** Construction IMF GDP** Construction IMF GDP** Construction Country in HY 08 output growth 2008e growth* 2008e growth 2009e growth* 2009e growth 2010e growth* 2010e Germany 1,822 34.4 1.9 1.2 0.0 1.5 1.0 1.5 Austria 955 18.0 2.0 2.3 0.8 2.3 2.1 2.9 Polan
Slide 37: Q&A session
Q&A session Dr. Hans Peter Haselsteiner CEO of STRABAG SE 37