Slide 1: PORR AG Investor Presentation November 2017
Cover Update PORR AG FYQ3 2016 2016 Intelligent NEW Building... BUILDING 1H 2016 of PORR AG Investor Investor Presentation Presentation April 2017 2016 November Investor Presentation August 2016
Slide 2: Disclaimer
Disclaimer • This presentation was prepared by PORR AG (the "Company") solely for use at investors’ meetings and is provided solely for informational purposes. • This presentation dates from November 2017. The facts and information contained herein might be subject to revision in the future. Neither
Slide 3: Highlights 9M 2017
Highlights 9M 2017 INTELLIGENT GROWTH PRODUCTION GROWTH 20% growth in production Three major acquisitions output • Franki Grundbau TECHNOLOGY • Oevermann First Lean Construction • Hinteregger (LC) project with BMW Group ORDER BACKLOG Strongest order backlog in history with EUR 5,808m in 9M 2017 Inve
Slide 4: Successful Company Transformation
Successful Company Transformation 2018-2020 2017 YIELD 2013 – 2016 • Clear focus on CONSOLIDATE earnings 2011 – 2012 • Focus business • Roadmap 2020 EXPAND operations • Innovation leader • Integration RESET • Technical • Fit for future excellence • Process & cost optimisation Investor Presentation ●
Slide 5: Reasons for Our Active Acquisition Strategy in the Last Six Years
Reasons for Our Active Acquisition Strategy in the Last Six Years Seize Window of Win Specialised Opportunity Employees Benefit from Enable Economies of Scale Margin Uplift Optimise Regional Coverage Investor Presentation ● 29/11/2017 ● Page 5
Slide 6: Overview on our Key Investment Highlights
Overview on our Key Investment Highlights Value Adding Future Favourable Markets Strategy Strong Financial Focus on Performance Core Business Entrepreneurial Mindset Details to be laid out on following pages Investor Presentation ● 29/11/2017 ● Page 6
Slide 7: Continuously Growing Construction Market in Europe
Continuously Growing Construction Market in Europe Development of Total Construction Output Europe CAGR1 2.4% 10.0% 5.0% 4.2% 2.5% 2.9% 2.5% 0.0% 1.0% 1.8% 2.0% 0.0% -2.1% -5.0% -3.4% -10.0% -8.6% 08/09 09/10 10/11 11/12 12/13 13/14 14/15 15/16 16/17 17/18 18/19 General Trends & Drivers Supporting G
Slide 8: PORR's Construction Markets Show Growth Forecasts and High Volumes
PORR’S Construction Markets Show Growth Forecasts and High Volumes 1,449,491 Home Markets (86% Production Share) 470,494 +1.5% 2016 Total Construction CAGR Market1 in EUR m 2016 Total Construction 2016 - 2019 Market in EUR m Project Markets (14% Production Share) 57,352 +6.1% CAGR 2016 Civil Enginee
Slide 9: We Selectively Develop to a General/Total Contractor with Expertise in Lean Construction
We Selectively Develop to a General/Total Contractor with Expertise in Lean Construction • PORR is and will remain a construction company that builds as much as possible itself Operation • We focus on our core competencies alongside the construction value chain (e.g. Lean Construction) Construction
Slide 10: Our Recent M&A Activities are Fully Supporting the Strategy of Intelligent Growth
Our Recent M&A Activities are Fully Supporting the Strategy of Intelligent Growth Expertise Building Regional Expansion Operation Construction G&P Preparation Design Financial Engineering Investor Presentation ● 29/11/2017 ● Page 10
Slide 11: Aligned Interests Resulting in Sustainable Growth and a Consistent Dividend Policy
Aligned Interests Resulting in Sustainable Growth and a Consistent Dividend Policy Ownership Structure Dividends 1.66% 4.00%2 3.37%2 3.58%3 2.83% 46.3% 1.10 1.00 0.75 53.7% 0.50 0.16 2012 2013 2014 2015 2016 Syndicate (Strauss Group, IGO-Ortner Group) Free float Dividends per share1 in EUR Dividend
Slide 12: Growth Track Record
Growth Track Record Historical financial development (in EUR m) Production output Revenue EBT/EBT margin1 -83.1 22.0 59.6 66.1 81.1 91.1 +6.2% CAGR Production output 3,925 3,475 3,524 3,417 3,162 3,009 3,140 2,906 2,891 2,630 2,213 2,315 1.9% 1.9% 2.3% 2.3% 0.8% neg. 2011 2012 2013 2014 2015 2016 1
Slide 13: Consolidated Income Statement
Consolidated Income Statement (EUR m1) FY 2016 9M 2016 9M 2017 Change Production output2 3,925.3 2,787,8 3,343.4 19.9% Revenue 3,417.1 2,483.7 3,015.1 21.4% Share of profit/loss of companies accounted for under 46.3 30.6 31.3 2.4% the equity method Cost of materials and other related production serv
Slide 14: Statement of Financial Position
Statement of Financial Position (EUR m) FY 2016 9M 2016 9M 2017 Non-current assets 801,3 770.7 1,014.1 Assets Current assets 1,560.8 1,508.3 1,806.7 Total assets 2.362,1 2,278.9 2,820.9 Equity1 440.9 399.0 554.0 liabilities Equity & Non-current liabilities 562,7 557.7 678.9 Current liabilities 1,358
Slide 15: Business Units (1/2)
Business Units (1/2) BU 1 BU 2 BU 3 BU 4 AT/CH/CZ ENVIRONMENTAL, GERMANY INTERNATIONAL HEALTHCARE & SERV. Production1 1,710 Share: 51% 536 Share: 16% 911 Share: 27% 163 Share: 5% (in EUR m) • PORR’s largest • PORR’s 2nd biggest • PORR’s unit for • PORR’s unit for business unit market technical leade
Slide 16: Business Units (2/2)
Business Units (2/2) BU 1 BU 2 BU 3 BU 4 ENVIRONMENTAL, AT/CH/CZ GERMANY INTERNATIONAL HEALTHCARE & SERV. +12% +19% 1,710 +69% 1,529 911 +20% 768 536 Output 317 137 163 +12% KPIs 2,066 1,845 +>100% +23% (13%) Intake 952 891 1,092 414 197 171 Employees 7,719 1,899 5,034 1,460 9M 2016 in EUR m Investo
Slide 17: Clear Evidence of Future Production Growth due to High Order Intake
Clear Evidence of Future Production Growth due to High Order Intake Selected Projects General: Office BMW Country: DE Value1: EUR 114.0m +28.2% Schedule: 2017 – 2018 General: Railroad Poznań–Piła +957 EUR m 4,347 Country: PL Value1: EUR 112.5m 3,390 Schedule: 2017 – 2019 General: Subway U5 Europavie
Slide 18: High Order Backlog Underpins Successful Strategy of Intelligent Growth
High Order Backlog Underpins Successful Strategy of Intelligent Growth Selected Projects General: Office Europaallee Zürich1 +12.1% Country: CH Value2: EUR 152.5m 5,808 POC: 42.4% +627 EUR m Schedule: 2015 – 2020 General: Emscher Tunnel 5,181 Country: DE Value2: EUR 144.1m POC: 87.9% Schedule: 2013
Slide 19: After a Strong External Growth Phase, we Look at Potential Targets even more Selectively
After a Strong External Growth Phase, we Look at Potential Targets even more Selectively Portfolio Targeted acquisitions alongside the Bridge Construction core competencies • to selectively become "total contractor" Tunnelling • to acquire unique expertise in specific segments • to maintain a leadin
Slide 20: Roadmap 2020: Selected Examples
Roadmap 2020: Selected Examples Reporting of non- E-Invoicing to financial KPIs customers with E-Commerce & (standard across the automatic booking Webshop group) Standardised plan-/ Digitalization of actuals comparison equipment on line item level maintenance process DIGITAL DIGITAL TRANSFORMATION T
Slide 21: Key Messages
Key Messages Our mid to long term strategy will remain unchanged to ensure a sustainable development for our shareholders We are facing favourable long term market fundamentals in our home markets After a period of strong growth and a subsequent integration phase, we are currently refocusing managem
Slide 22: Your Questions
YOUR QUESTIONS