Porr Ag · VIE:POS
Porr — Q1-3 2022 Earnings Presentation
45 slides from Porr's earnings presentation, November 2022
Slide 1: Q1-3 Results 2022 Investor Presentation
Q1-3 Results 2022 Part of the solution. Investor Presentation November 2022 Investor Presentation November 2022 1
Slide 2: Disclaimer
Disclaimer This presentation was prepared by PORR AG (the "Company") This presentation contains forward-looking statements relating to solely for use at investors’ meetings and is provided solely for the business, financial performance and results of the Company informational purposes. and/or th
Slide 3: Building Tomorrow's World
Building Tomorrow‘s World 01 PORR today 02 Transformation 03 Financial Peformer Leading One-Stop Shop in Strategic Focus on Holistic PORR 2025 construction Green and Lean unleashes value potential Strong long-term upside for Pioneering the must-win Visible margin upside PORR home markets battl
Slide 4: Riding the Right Wave – One-Stop Shop in Construction
Riding the Right Wave – One-Stop Shop in Construction Design & Engineering Segment split1 Infra 9% NO CEE Demolition Construction 10% PL One-Stop-Shop 13% Full-Service- #4 PL Provider DE AT / CH #3 #6 CZ DE SK #2 53% AT 14% #7 CH #1 RO #7 Service split1 Operation & Refurbishment Management & Renovat
Slide 5: PORR Captures the Megatrends in Construction
PORR Captures the Megatrends in Construction Urbanisation Mobility Sustainability Digitalisation Health +80% -55% EUR 1.8tn EUR 2.1 bn +48% of the European population CO2 emission target in the European BIM People older than 65 in urban areas by 2050 EU by 2030 Green Deal market by 2050 Demand for n
Slide 6: We focus on Intelligent Growth with Green and Lean
We focus on Intelligent Growth with “Green and Lean” Intelligent Growth Green and Lean Company Staff LEAN ESG Best in Class: in construction We live our Design-build contractor – Clear commitment to and technologies PORR Principles one-stop shop for every ecological, environmentally process friendly
Slide 7: PORR 2025 – A Holistic Approach
PORR 2025 – A Holistic Approach 2025 Operational Staff and Markets excellence and Finance organisation digitalisation Unite economy, Innovation leader in LEAN Management – Improve capital employed environment and society construction and flat hierarchies and in construction technology fast d
Slide 8: Key Messages Q1-3 2022
Key Messages Q1-3 2022 No construction slow-down 1 Stable footprint in all sectors Continued high level order book of EUR 7.9 bn 2 Consistent focus on selective acquisition EBT of EUR 57.5m on track (+35%) 3 Proven track record Crisis-proven balance sheet 4 Transformation in full swing Positive outl
Slide 9: Construction Input Prices Stabilising
Construction Input Prices Stabilising Material costs coming down Energy costs on high levels 160 800 700 140 600 Indexed per 31.12.2020 Indexed per 31.12.2021 500 120 400 300 100 200 100 80 0 12/20 03/21 06/21 09/21 12/21 03/22 06/22 09/22 12/21 03/22 06/22 09/22 Steel - Rebar Timber Electricity Gas
Slide 10: Interest Rate Hikes Against Soaring Inflation
Interest Rate Hikes Against Soaring Inflation High interest rates dampen inflation Capital markets under pressure 11% 5% 10% Downward trend in US inflation due to 4% increasing interest rates 9% Inflation Base rates 3% 8% 7% 2% High inflation leads to rise in 6% personnel costs 1% 5% 4% 0% Increasin
Slide 11: Diversified Portfolio as Stabilisation for 2023
Diversified Portfolio as Stabilisation for 2023 Share in Construction Order Book Segment Expectations 2023 Non-Residential Industrial construction showing major new order intakes Construction in 2022 → high visibility for 2023 output 29% Ongoing demand from public clients in health and infrastructur
Slide 12: Order Book Remains On a High Level
Order Book Remains On a High Level +15.5% TOP order intakes in Q1-3 2022 Bridge Highbridge Horb – Neckertal (DE) 7,778 7,863 construction Drammen, Bybrua (NO) 6,808 +1,1% +14,3% 4,833 Industrial Data Center, Jawczyce (PL) construction 4,617 Office Building PSE, Radom (PL) (4.5%) 4,250 +13.7% Road No
Slide 13: Continued Outperformance in Output and Earnings
Continued Outperformance in Output and Earnings Production output EBT in EUR m in EUR m EBT margin in % of production output +19.8% +35% 57.5 4,525 42.5 4,080 3,778 4,135 14.4 1.3% 1.0% 0.4% (1.7%) (62.4) Q1-3/19 Q1-3/20 Q1-3/21 Q1-3/22 Q1-3/19 Q1-3/20 Q1-3/21 Q1-3/22 COVID COVID All operational seg
Slide 14: Crisis-Resistant Balance Sheet
Crisis-Resistant Balance Sheet Equity in EUR m Net debt development Equity ratio in % in EUR m 785 (76%) 769 650 645 574 18.5% 434 17.5% 315 17.1% 15.7% 190 323 297 248 155 Q3/19 Q3/20 Q3/21 Q3/22 Q3/19 Q3/20 Q3/21 Q3/22 Hybrid capital Increase in equity against HY/22 of Ongoing working capital mana
Slide 15: Outlook
Outlook 2022 2023 Production output of EUR ~6.0 bn High order book ensures full capacity utilisation Earnings before tax EUR >100m Cost increases mitigated Further improvement in EBT visible Ongoing market uncertainty Investor Presentation November 2022 15
Slide 16: Strategy
Strategy Investor Presentation November 2022 16
Slide 17: PORR 2025 Execution Well Advanced
PORR 2025 Execution Well Advanced Value Next generation leadership • Focus Green and Lean – Strengthen core differentiation and long-term value creation business Growth • Strengthen leadership as • Focus on fundamentals a total contractor • Achieve market and productivity positions • Deepen value ch
Slide 18: Stringent Execution of PORR 2025 Road Map
Stringent Execution of PORR 2025 Road Map Milestones Q1-3 2022 Measures 2025 • Top output & High order backlog • Promote sustainable construction Markets • Expansion of permanent business in CEE • Extend value chain and permanent business • Focus on sustainable construction and Slab • Optimise portf
Slide 19: Substantial Improvements in 2021
Substantial Improvements in 2021 EBT in EUR m 2020 EBT margins in % of production output 2021 1.6% 2.7% (4.6)% (0.5)% 0.4% 1.9% (4.9)% 1.0% (7.5)% (2.4)% 80.1 44.3 13.3 2.3 5.7 (4.3) (12.9) (24.7) (30.4) (40.7) AT / CH DE PL CEE Infra AT/CH: Output record and strong PL: Significant output increase (
Slide 20: Strong Business in Austria to Guarantee Stable Profits
Strong Business in Austria to Guarantee Stable Profits Output Austria & Switzerland Production Output and EBT margins (in EUR m) 53% Contribution Strong performance due to Historical EBT margin COVID impact to Output CAGR 2020-25: of >3% (2011-20) fade out in 2021 c. 2.5% − High output level − Cos
Slide 21: Realignment in Germany with Focus on Profitable Growth
Realignment in Germany with Focus on Profitable Growth Output Germany Production Output and EBT margins (in EUR m) 14% Contribution Substantial loss reduction due to Reduction of Focus on well- Output CAGR 2020-25: realignment of structural engineering civil engineering performing units c. 4.0%
Slide 22: Sustainable Turnaround in Poland Achieved – Set for Profitable Growth
Sustainable Turnaround in Poland Achieved – Set for Profitable Growth Output Poland Production Output and EBT margins (in EUR m) 13% Contribution Significant output increase (+17.2%) and Strong expansion Selective growth Output CAGR 2020-25: substantial margin improvement due to in the past c. 3.0
Slide 23: CEE: Strengthened Position and Expanded Footprint
CEE: Strengthened Position and Expanded Footprint Output CEE Production Output and EBT margins (in EUR m) 10% Contribution Production output doubled Investments in Smaller scale and Output CAGR 2020-25: from 2016-2021 market position regional expansion c. 1.0% Turnaround achieved due to increase
Slide 24: Infrastructure: Focus on Core Competences in our Project Markets
Infrastructure: Focus on Core Competences in our Project Markets Output Infrastructure Production Output and EBT margins (in EUR m) 9% Contribution Substantial improvement Volatile business in Refocus on technological Output CAGR 2020-25: project markets excellence c. 7.5% − Output and earnings in
Slide 25: Working Capital and Free Cash Flow 2021
Working Capital and Free Cash Flow 2021 Working Capital in EUR m Free Cash Flow Working Capital in % of total assets in EUR m 213 263 202 186 First-time consolidations EUR 55m 147 139 5.8% 118 88 5.3% 5.0% 80 2.8% 2018 2019 2020 2021 2018 2019 2020 2021 Increase in working capital as a result Contri
Slide 26: Green and Lean. PORR's Strategic Evolution
Green and Lean. PORR‘s Strategic Evolution GREEN From best-in-class to best in class in sustainable construction Evolution in technology needs as a must-have AND Setting a partnering standard Evolution in client and stakeholder needs – holistic approach LEAN Lean approach in management and
Slide 27: Green. The New Reality
Green. The New Reality ▪ Design & Engineering – circular engineering via BIM and LEAN Design experts in-house, virtual reality, innovation ▪ Modern energy concepts – climate neutral buildings, city geothermal approaches, energy efficient facades, etc. ▪ Renewable, recyclable, compostable materials –
Slide 28: Lean. PORR's Future of Construction
Lean. PORR´s Future of Construction Lean at management level Lean at operational level Lean in management - LEAN Design – optimise value, less layers of hierarchy minimise waste in the planning Lean in organisation – LEAN Construction – value added processes operational efficiency Investor P
Slide 29: ESG on Track
ESG on Track PORR score Sector average Low High Top 10% of D- D+ C+ Prime A+ sector Second highest CCC BBB AA AAA rating in Leadership Climate D- B A- A segment 1st time Water D- B A rating 40+ High risk 29.5 0 Medium risk Investor Presentation November 2022 29
Slide 30: LEAN – Focus On Customers And Value
LEAN – Focus On Customers And Value LEAN Project LEAN Design LEAN Construction Delivery ✓ Project management system ✓ Coordination ✓ Engaging all designers: ✓ Communication of ✓ Every team and every trade clients, partners, planning teams is integrated from the professionals ✓ Process mapping outset
Slide 31: The New Normal – Building Information Modeling
The New Normal – Building Information Modeling Collaboration Planning Communication Calculation Basic ingredients Responsibilities Construction scheduling Team Identification Processes Quantity calculation Training Site logistics Culture Coordination & support Data management Data formats BIM standa
Slide 32: LEAN & BIM as Parts of PORR's Mindset
LEAN & BIM as Parts of PORR‘s Mindset Project Culture What now? PORR PRINCIPLES Current BIM standards 5D Strategy 24 Number of Example project: current BIM projects Wien Museum LEAN Methods Connecting people: Customers, BIM What’s next? authorities, planners, Processes Connecting data workers & info
Slide 33: Stable Shareholder Structure
Stable Shareholder Structure Ownership Structure Free Float – Geographical Split 20.3% 32.2% 50.4% 5.6% 6.3% 49.6%1 8.3% 18.0% 0.5% 8.8% Syndicate (Strauss Group, IGO-Ortner Group) Free float Austria Germany UK Rest of Europe US Rest of the World Not directly assignable Retail 1 thereof 4.34% Heitka
Slide 34: Dividend
Dividend Dividend per share in EUR 1.10 1.10 1.10 0.50 0.00 0.00 2016 2017 2018 2019 2020 2021 Earnings per share in EUR 2.23 2.09 1.88 0.50 (2.28) 1.18 Commitment to a dividend policy with a payout ratio of 30% to 50% Along the profitability the company distributed EUR 0.50 dividend per share for F
Slide 35: Financial Performance
Financial Performance Investor Presentation November 2022 35
Slide 36: Key Financials
Key Financials Key Earnings Figures (EUR m) Q1-3 2022 %∆ Q1-3 2021 Production output1 4,524.5 9.4% 4,134.8 Revenue 4,150.4 11.5% 3,722.9 EBT 57.5 35.4% 42.5 Net profit for the period 43.4 65.0% 26.3 Key Assets and Financial Figures (EUR m) 30.09.2022 %∆ 31.12.2021 Total assets 4,158.7 2.3% 4.065,0 E
Slide 37: Consolidated Income Statement
Consolidated Income Statement EUR m Q1-3 2022 Q1-3 2021 % Δ Q1-3 22/21 2021 Production output1 4,524.5 4,134.8 9.4% 5,727.3 Revenue 4,150.4 3,722.9 11.5% 5,169.8 EBITDA 212.2 197.8 7.3% 287.5 in % of Production output 4.7% 4.8% (0.1PP) 5.0% EBIT 71.0 55.8 27.1% 95.2 in % of Production output 1.6% 1.
Slide 38: Key Ratios
Key Ratios EUR m Q1-3 2022 Q1-3 2021 % Δ Q1-3 22/21 2021 Production output1 4,524.5 4,134.8 9.4% 5,727.3 Revenue 4,150.4 3,722.9 11.5% 5,169.8 Ratio of profit/loss of companies at equity 1.0% 1.4% (0.4PP) 1.1% Material cost ratio2 (62.8%) (59.3%) (3.5PP) (60.2%) Personnel cost ratio (22.6%) (23.1%)
Slide 39: Balance Sheet Key Figures
Balance Sheet Key Figures EUR m 30.09.2022 31.12.2021 30.09.2021 Non-current assets 1,450.9 1,448.9 1,291.4 Assets Current assets 2,707.8 2.616.1 2,494.3 Total assets 4,158.7 4,065.0 3,785.7 Equity1 768.9 824.4 645.4 Equity & liabilities Non-current liabilities 725.3 826.1 780.4 Current liabilities
Slide 40: Balance Sheet Assets
Balance Sheet Assets EUR m 30.09.2022 31.12.2021 % Δ ‘22 30.09.2021 Intangible assets 187.3 187.5 (0.1%) 154.1 Property, plant and equipment 1,047.9 1,028.7 1.9% 927.7 Non-current assets Investment property 24.0 25.5 (5.7%) 29.4 Shareholdings in comp. acc. f. u. t. equity method 76.3 85.4 (10.7%) 91
Slide 41: Equity and Liabilities
Equity and Liabilities EUR m 30.09.2022 31.12.2021 % Δ ‘22 30.09.2021 Share capital 39.3 39.3 - 29.1 Capital reserve 358.8 358.8 - 251.3 Profit-participation rights/hybrid capital 247.7 300.0 (17.4%) 297.3 Equity Other reserves 87.0 92.5 (5.9%) 47.5 Non-controlling interest 36.1 33.9 6.7% 20.3 Total
Slide 42: Balanced Maturity Profile as of 30.09.2022
Balanced Maturity Profile as of 30.09.2022 Maturity profile in EUR m 11 127 13 55 7 31 12 33 4 9 6 10 9 14 8 13 6 6 3 2022 2023 2024 2025 2026 from 2027 Term loans Leasing Construction Equipment Short-term project related SSD floating SSD fixed Investor Presentation November 2022 42
Slide 43: Top Order Intakes 2021/2022
Top Order Intakes 2021/2022 • Design & Build expressway Sibiu – Pitesti, Sec. 4/ • Waste to Energy plant, Rzeszów/PL/62.4m RO/311.4m • Nova Paka bypass/CZ/52.9m • Office Bldg. Sellerstraße, Berlin/DE/65.7m • Modernisation of Harbour, Constanța/RO/50.1m • Bayer SOL-1, Leverkusen/ DE/46.5m • Public Tr
Slide 44: Coverage
Coverage Institution Analysts Price Target Recommendation Last Update Warburg Research Philipp Kaiser 20.0 Buy 07.10.2022 FMR Research Winfried Becker 17.9 Buy 05.09.2022 Stefan Scharff SRC Research 17.5 Buy 31.08.2022 Christopher Mehl Raiffeisen Bank Markus Remis 17.5 Buy 30.08.2022 International K
Slide 45: Investor Relation Information for PORR AG
Investor Relation Information for PORR AG Share Information Upcoming Events Share price1 EUR 12.00 6 Feb 2023: Interest payment Market capitalisation EUR 471.3m Hybrid bond 2020 Official market Vienna Stock Exchange 30 Mar 2023: Publication Prime Market Annual Financial Report 2022 18 Apr 2023: Reco