Porr Ag · VIE:POS
Porr — Q1-3 2023 Earnings Presentation
43 slides from Porr's earnings presentation, Nov 23, 2023
Slide 1: Investor Presentation November 2023
Investor Presentation November 2023
Slide 2: Disclaimer
• This presentation was prepared by PORR AG (the "Company") • This presentation contains forward-looking statements solely for use at investors’ meetings and is provided solely relating to the business, financial performance and results of for informational purposes. the Company and/or the industry
Slide 3: Investor presentation Q1-3 2023
Investor presentation Q1-3 2023 November 2023 3
Slide 4: PORR today, Transformation, Financial Performer
01 • Leading One-Stop Shop in construction • Strong long-term upside for PORR home markets PORR today • PORR ideally positioned to address megatrends 02 • Strategic Focus on Green and Lean • Pioneering the must-win battle in digitalisation Transformation • Offering sustainability along the value cha
Slide 5: PORR today: key facts and market positions
NO Home markets Project markets Design & Market position # Engineering UK Demolition Construction PL Full- Service- DE #3 Provider #3 CZ Operation & Refurbishment #6 Management & Renovation SK #2 CH AT #7 #1 FY/2022: RO #5 > 20.000 Staff members > EUR 6.2 bn Production output (53% civil engineering,
Slide 6: Demography, Deglobalisation, Decarbonisation, Digitalisation
Demography Deglobalisation Decarbonisation Digitalisation +80% urban population Regional focus for On the way to a Digital Europe Programme until 2050 international resilience circular economy worth EUR 7.5 bn Smart infrastructure, Regional procurement and Take on environmental Data era, process eff
Slide 7: Intelligent Growth: Green and Lean
Intelligent Growth Green and Lean Company Staff Lean ESG • Best in Class: in • PORR Principles first • Design-build contractor – • Clear commitment to construction and one-stop shop for every ecological, • Best Place to Work technologies process environmentally friendly • Nurturing talent – construc
Slide 8: Investor presentation Q1-3 2023
Investor presentation Q1-3 2023 November 2023 8
Slide 9: Q1-3 2023 highlights
Strong demand in civil engineering continues 1 Focus on cost control still necessary Order book of EUR 8.7 bn (+11%), order intake of EUR 5.3 bn (+15%) 2 Improved margins, higher share of non-residential construction Expansion in output (+6.1%) and EBT (+18.2%) 3 Strategy on track with higher profit
Slide 10: Infrastructure as growth driver; cost management as key factor
Infrastructure as growth driver Cost management as key factor Cost indices indexed by Dec. 2021 2,9% 200 2,2% Growth in % of previous year 1,8% 1,4% 1,1% 1,1% 150 0,7% 0,6% 0,2% 0,0% 2023 2024 2025 100 -1,2% -1,6% 50 Dez.21 Jun.22 Dez.22 Jun.23 Residential Non-residential Civil engineering Total con
Slide 11: Order backlog and order intake
Order backlog in EUR m Order intake in EUR m +11% +15% 8,701 7,778 7,863 6,808 5,298 4,833 4,617 58% 4,250 60% 60% 52% 22% 29% 23% 28% 11% 8% 11% 6% 7% 5% 9% 11% Q1-3 2020 Q1-3 2021 Q1-3 2022 Q1-3 2023 Q1-3 2020 Q1-3 2021 Q1-3 2022 Q1-3 2023 Civil engineering Non-residential construction Civil engin
Slide 12: Major orders won
2022 2023 Q4 Q1 Q2 Q3 • BMW Production hall • ams-Osram Fabric halls • Arge H53 Brenner • Pumped storage DE/n.a. Premstätten/AT/49.5m Base tunnel power plant AT/479.6m Ebensee/AT/167.0m • Expressway Hannover • Arge Arlbergtunnel DE/234.6m AT/47.9m • ElbX SuedLink tunnel • Aixtron Glücksstadt/DE/215.
Slide 13: Project examples
Minnevika Bridge Boehringer Ingelheim Świnoujście Tunnel Minnesund, NO Vienna, AT Świnoujście, PL Emscher Pumping stat. Slab Track Austria Siezenheim II Oberhausen, DE River Argeș, RO Salzburg, AT Investor presentation Q1-3 2023 November 2023 13
Slide 14: Production output and EBT
Production output in EUR m EBT in EUR m EBT margin in % of production output +6.1% +18.2% 4,801 68.0 4,525 57.5 4,135 3,778 42.5 52% 1.3% 1.4% 1.0% 51% 15% 18% 16% 11% 9% 10% 9% 2% 5% 2% -1.7% Q1-3 2020 Q1-3 2021 Q1-3 2022 Q1-3 2023 -62.4 Holding Infra CEE PL DE AT / CH Q1-3 2020 Q1-3 2021 Q1-3 2022
Slide 15: Equity and net debt
Equity in EUR m Net debt (+) / Net cash (-) in EUR m Equity ratio in % +5.3% 237 IFRS 16 index adjustment 190 824 799 810 769 20.3% 19.3% 19.4% 18.5% -65 -59 2021 Q3 2022 2022 Q3 2023 2021 Q3 2022 2022 Q3 2023 • High equity ratio (+0.9PP against Q3/22) • EUR 20.8m of IFRS 16 index • Improved equity
Slide 16: Outlook 2023
Strong order book with visibility of more than one year Production output of EUR 6.5 to 6.7 bn Earnings before tax (EBT) of EUR 125 to 130m Investor presentation Q1-3 2023 November 2023 16
Slide 17: Investor presentation Q1-3 2023
Investor presentation Q1-3 2023 November 2023 17
Slide 18: Segment order backlog and order intake
Order backlog Order intake Segment in EUR in EUR Current TOP 3 orders • BMW Production hall / Industrial Austria & 3,308m 2,476m • Arge T3 South Airport Vienna / Airport Switzerland +5.7% +1.4% • DC Tower 2 / Residential + Office construction • Südschnellweg expressway Hanover/ Road 1,319m 616m Germ
Slide 19: Milestones HY 2023 and Measures 2025
Milestones HY 2023 Measures 2025 • Record output: EUR 3,017m • Promote sustainable construction Markets • Highest order backlog: EUR 8,995m • Extend value chain and permanent • Record order intake in infrastructure, business industrial and other building • Optimise portfolio mix construction • Expan
Slide 20: EBT and margins by segment
EBT in EUR m 2021 EBT margins in % of production output 2022 AT / CH DE PL CEE Infra 2.7% 2.6% -0.5% 0.4% 1.9% 2.7% 1.0% 1.8% -2.4% 0.0% 84.7 80.1 21.4 13.3 11.7 3.6 5.7 0.0 -4.3 -12.9 • Record output and • Increased order • Significant • Strong increase in • Turnaround continued strong backlog in h
Slide 21: Austria & Switzerland
Output Austria & Switzerland Production Output and EBT margins in EUR m Contribution 53% • Strong performance due to Historical EBT margin COVID impact to Output CAGR 2020-25: of > 3% (2011-20) fade out in 2021 ~4.8% • Growth in output level to an all-time high 3,269 • High order backlog: full capac
Slide 22: Germany
Output Germany Production Output and EBT margins in EUR m Contribution 14% • More than 70% of current business Transformation Focus on well- Output CAGR 2020-25: is well-performing (with EBT margin >3%) in civil engineering performing units ~4.0% • Strong performance in civil engineering and buildin
Slide 23: Poland
Output Poland Production Output and EBT margins in EUR m Contribution 13% • Output increase (+9.8%) in almost Output CAGR 2020-25: all units Strong growth Selective project acquisition ~9.3% • Margin improvement due to higher contract margins • Increased order backlog in building and industrial cons
Slide 24: CEE
Output CEE Production Output and EBT margins in EUR m Contribution 10% • Very strong development in terms of Investments in Smaller scale, regional Output CAGR 2020-25: output and EBT market position expansion and major projects ~9.4% • Strong increase in building construction and major projects • L
Slide 25: Infrastructure International
Output Infrastructure International Production Output and EBT margins in EUR m Contribution 8% • Decrease of output due to completion of Volatile business Refocus on Output CAGR 2020-25: major projects in tunnelling in project markets technological excellence ~4.5% • Profitability turnaround achieve
Slide 26: ESG ratings
AA Top segment in Construction & Engineering segment C+ / Prime Status Top 10% of Industry Silver Medal Top 18% in construction industry B / Management segment Climate Change & Water Security 99% for PORR Bau GmbH ESG Audit Investor presentation Q1-3 2023 November 2023 26
Slide 27: EU taxonomy: revenue, CAPEX, OPEX
Aligned Revenue CAPEX OPEX and eligible 4% 3% 4% 5% Eligible, 11% but not aligned 30% Non- 66% eligible 86% 91% • Infrastructure for rail • High eligible CAPEX coming • OPEX in infrastructure for transport as PORR’s biggest from investments for rail transport and material taxonomy-aligned activity m
Slide 28: Decarbonisation, circular economy, habitats
Decarbonisation Circular Economy Habitats Energy intensity in MWh/EUR Recycled material used in t Total water consumption in Tm³ 0.134 -5.5% +10% 93,200 380 -37% 84,761 240 0.127 2021 2022 2021 2022 2021 2022 • Smart metering system in • Mobile plants for materials to • On-site water recirculation r
Slide 29: Occupational safety, working worlds, ethics
Occupational Safety Human Rights, Ethics Working Worlds and Health and Compliance Work-related injuries rate* Training hours in h Anti-corruption training 15,7 -2.9% +36% 103,547 +91% 3,158 76,396 1,655 15,3 2021 2022 2021 2022 2021 2022 • Vision Zero • PORR Campus & Academy: • Whistleblowing hotlin
Slide 30: BIM: team, technology, standards, processes
Team Technology Standards Processes • Collaboration • Data management • BIM standards • Planning • Communication • Data formats • Project guidelines • Calculation • Responsibilities • Data sharing • Management policies • Construction scheduling • Identification • Software • Quantity calculation • Tr
Slide 31: BIM operations, training and spotlight projects
Operations & Training Spotlight on • +95% participants in BIM trainings • 25 pure-play BIM projects 189 PEMA 3 Office and hotel 97 construction, Projektbild Innsbruck, AT 2021 2022 Wien • iTwo Roll-out in full swing Museum • Adaption of Workflows across entire Group Projektbild Museum construction,
Slide 32: LEAN on management and operational level
On management level PORR AG • Less layers of hierachy pde Integrale PORR Equipment PORR Bau GmbH PORR Beteili- Shared Service • Lean in Planung Services gungen & Mgmt. Center organisation – value added Infrastructure processes AT / CH DE PL CEE International • LEAN Design: optimise value, minimise w
Slide 33: LEAN Masterplan 2023+
LEAN Masterplan 2023+ Goals set Milestones 1 Sustainable increase of earnings in respective units • Pilot projects 2 Use of PORR LEAN Principles, • 3 countries methods and standards in • 6 units operational and preparational processes • Trained staff: 960 3 Application of continuous • Educational pr
Slide 34: Investor presentation Q1-3 2023
Investor presentation Q1-3 2023 November 2023 34
Slide 35: Key Earnings Figures
Key Earnings Figures EUR m Q1-3 2023 %∆ Q1-3 2022 Production output1 4,800.8 6.1% 4,524.5 Revenue 4,460.1 7.5% 4,150.4 EBT 68.0 18.2% 57.5 Net profit for the period 49.7 14.5% 43.4 Key Assets and Financial Figures EUR m 30.09.2023 %∆ 31.12.2022 Total assets 4,183.3 0.9% 4,146.8 Equity 809.9 1.4% 798
Slide 36: Income statement and key ratios
EUR m Q1-3 2023 Q1-3 2022 ∆ Q1-3 23/22 2022 Production output1 4,800.8 4,524.5 6.1% 6,226.4 Revenue 4,460.1 4,150.4 7.5% 5,786.0 EBITDA 229.5 212.2 8.1% 318.9 in % of Production output 4.8% 4.7% 0.1PP 5.1% EBIT 78.0 71.0 10.0% 120.1 in % of Production output 1.6% 1.6% 0.1PP 1.9% EBT 68.0 57.5 18.2%
Slide 37: Assets
EUR m 30.09.2023 31.12.2022 ∆ 2023 30.09.2022 Intangible assets 191.2 194.1 -1.5% 187.3 Property, plant and equipment 1,119.9 1,055.3 6.1% 1,047.9 Non-current assets Investment property 34.4 33.9 1.5% 24.0 Shareholdings in companies accounted for 75.0 78.4 -4.3% 76.3 under the equity method Other fi
Slide 38: Equity and liabilities
EUR m 30.09.2023 31.12.2022 ∆ 2023 30.09.2022 Share capital 39.3 39.3 0.0% 39.3 Capital reserve 358.8 358.8 0.0% 358.8 Equity Profit-participation rights/hybrid capital 247.7 247.5 0.1% 247.7 Other reserves 134.5 119.0 13.0% 87.0 Non-controlling interest 29.6 34.3 -13.7% 36.1 Total equity 809.9 798.
Slide 39: Liquidity reserve and maturity profile
Liquidity reserve in EUR m Maturity profile in EUR m 798 737 666 597 293 504 383 93 180 250 317 417 466 14 379 354 32 187 3 35 4 94 3 2 6 6 Q3 19 Q3 20 Q3 21 Q3 22 Q3 23 2023 2024 2025 2026 2027 from 2028 Committed cash facilities Cash & cash equivalents Term loans SSD floating SSD fix Short-term pr
Slide 40: Dividend per share and yield
DPS in EUR Dividend yield in % 1.10 1.10 0.60 0.50 6.3% 5.3% 4.0% 3.6% - - 2017 2018 2019 2020 2021 2022 • Payout ratio of 36.4% in line with dividend policy of 30-50% payout ratio • Dividend policy reflects earnings outlook and reliability Investor presentation Q1-3 2023 November 2023 40
Slide 41: Ownership Structure and Free Float
Ownership Structure Free Float – Geographical Split 24.2% 36.5% 50.4% 49.6%1 6.0% 6.1% 7.4% 6.9% 1.1% 11.8% Austria US Germany Rest of the World Free float UK Not directly assignable Syndicate (Strauss Group, IGO Industries Group) Rest of Europe Retail 1) thereof 5.0% PORR Management and PORR AG (tr
Slide 42: Analyst coverage and price targets
Institution Analysts Price Target Recommendation Last Update Montega Patrick Speck 20.0 Buy 28.09.2023 Stefan Scharff SRC Research 20.5 Buy 29.08.2023 Christopher Mehl Kepler Cheuvreux Patrick Steiner 15.5 Buy 29.08.2023 Warburg Research Philipp Kaiser 24.0 Buy 29.08.2023 ERSTE Group Michael Marscha
Slide 43: Share Information, Upcoming Events, IR Contact
Share Information 1 Upcoming Events Share price EUR 12.40 06 Feb 2024 Interest payment Hybrid bond 2020 Market capitalisation EUR 487.1m 21 Mar 2024 Publication Official market Vienna Stock Exchange Annual and Sustainability Report 2023 Prime Market 20 Apr 2024 Record Date Number of shares for the a