Porr Ag · VIE:POS
Porr — Q1 2023 Earnings Presentation
45 slides from Porr's earnings presentation, May 24, 2023
Slide 1: Investor Presentation May 2023
Investor Presentation May 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 2023
Investor presentation Q1 2023 May 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 at a glance: staff, output, EBT, order backlog
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 RO #5 > 20.000 Staff members > EUR 6.2 bn Production output (53% civil engineering, 36% buil
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 green footprint worth EUR 7.5 bn Smart infrastructure, Regional procurement and Circular economy to fulfil Data era, process
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 2023
Investor presentation Q1 2023 May 2023 8
Slide 9: Strong start into the year
Strong start into the year 1 Maintaining stability and building value Record order backlog at EUR 8.2 bn (+2.2%) 2 Major new order to come in Q2 EBT at EUR 4.5m (EUR +3.9m) 3 Positive bottom line despite seasonality in construction Stable balance sheet 4 Net debt reduction, strong liquidity Outlook
Slide 10: EU production in construction and Austrian order intake
High-level output in construction Recovering order intakes 106 140 EU production in construction Order intakes in Austria indexed by Dec. 2022 120 indexed by Dec. 2021 104 100 102 80 100 60 98 40 Dez 21 Mrz 22 Jun 22 Sep 22 Dez 22 Mrz 23 Dez 22 Jan 23 Feb 23 Mrz 23 Civil Engineering Building Constru
Slide 11: Order backlog and order intake
Order backlog in EUR m Order intake in EUR m +26% +11% 7,920 8,033 8,211 1,850 6,527 55% 1,429 1,278 1,150 58% 50% 58% 30% 21% 25% 22% 12% 10% 12% 5% 9% 5% 13% 15% Q1 2020 Q1 2021 Q1 2022 Q1 2023 Q1 2020 Q1 2021 Q1 2022 Q1 2023 Civil engineering Non-residential construction Civil engineering Non-res
Slide 12: Selected projects
Heat and power plant Supreme Audit Office Q-Tower Siezenheim, AT Prag, CZ Vienna, AT Habour extension PEMA 3 Railway modernisation Constanța, RO Innsbruck, AT Grădiștea, RO Investor presentation Q1 2023 May 2023 12
Slide 13: Production output and EBT
Production output in EUR m EBT in EUR m EBT margins in % of production output +9.5% 1,271 1,161 >7.0x 1,002 942 50% 4.5 0.6 0.4% 46% -0.9% 0.0% 15% -2.7% 22% 16% -9.4 10% 8% 9% 12% 2% 8% 2% Q1 2020 Q1 2021 Q1 2022 Q1 2023 -25.5 Holding Infra CEE PL DE AT / CH Q1 2020 Q1 2021 Q1 2022 Q1 2023 • Higher
Slide 14: Equity and net debt
Equity in EUR m Net debt (+) / Net cash (-) in EUR m Equity ratio in % +6.6% 824 799 795 -26% 746 135 20.3% 100 19.3% 19.2% 19.1% -65 -59 2021 Q1/22 2022 Q1/23 2021 Q1/22 2022 Q1/23 • Seasonal reduction as a result of interest • Further y-o-y net debt reduction payment on hybrid capital of EUR 35m •
Slide 15: Photovoltaic rollout and EcoVadis silver medal
Start of photovoltaic rollout • PV systems to be installed on roofs of around 30 sites and 5 former landfills • Potential of up to 22 GWh/year to be used for own operations • One third of electricity in AT to be generated Silver Medal from Eco Vadis • Among Top 18% in construction industry • Improve
Slide 16: Outlook 2023
Resilient construction industry and record order book Production output at least on 2022 level Further increase in earnings Investor presentation Q1 2023 May 2023 16
Slide 17: Investor presentation Q1 2023
Investor presentation Q1 2023 May 2023 17
Slide 18: Milestones 2022 and Measures 2025
Milestones 2022 Measures 2025 • Record output & order backlog • Promote sustainable construction • Expansion of permanent business • Extend value chain and permanent Markets business • Increasing backlog in sustainable construction • Optimise portfolio mix • Improved margin and risk profile of • Rol
Slide 19: Order backlog and intake by segment
Order backlog Order intake Segment in EUR in EUR Current TOP 3 orders • BMW Production hall / Industrial Austria & 3,524m 848m • Revitalisation Auenfeld barracks / Government Switzerland +4.5% +3.9% • Provincial hospital Wr. Neustadt / Infrastructure • Südschnellweg expressway Hanover/ Road 1,372m 1
Slide 20: EBT 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 and EBT margins
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 and EBT margins
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 and EBT margins
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 and EBT margins
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 and EBT margins
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 2023 May 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: Materiality approach and action fields
Our approach at a glance 4 Action fields Research and analysis of Decarbonisation 1 Better long list based on ESRS drafts Circular economy Environment Habitats Evaluation of double materiality - Inside-out: expert workshops Occupational safety 2 Better - Outside-in: stakeholder survey, Health Societ
Slide 29: Decarbonisation, circular economy, habitats
Decarbonisation Circular Economy Habitats Energy intensity in MWh/EUR Recycled material used in t Total water consumption in m³ 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 ro
Slide 30: 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 31: 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 32: 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 33: 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 – Infrastructure value added AT /CH DE PL CEE International processes • LEAN Design: optimise value, minimise wa
Slide 34: 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 35: Investor presentation Q1 2023
Investor presentation Q1 2023 May 2023 35
Slide 36: Key earnings figures
Key Earnings Figures EUR m Q1 2023 %∆ Q1 2022 Production output1 1,270.7 9.5% 1,160.9 Revenue 1,266.3 14.0% 1,110.8 EBT 4.5 > 100.0% 0.6 Net profit for the period 2.6 > 100.0% 0.4 Key Assets and Financial Figures EUR m 31.03.2023 %∆ 31.12.2022 Total assets 4,138.5 -0.2% 4,146.8 Equity 795.1 -0.5% 79
Slide 37: Income statement and key ratios
EUR m Q1 2023 ∆ Q1 2022 Production output1 1,270.7 9.5% 1,160.9 Revenue 1,266.3 14.0% 1,110.8 EBITDA 54.0 7.3% 50.3 in % of Production output 4.3% -0.1PP 4.3% EBIT 9.9 63.7% 6.0 in % of Production output 0.8% 0.3PP 0.5% EBT 4.5 > 100.0% 0.6 in % of Production output 0.4% 0.3PP 0.0% Profit for the pe
Slide 38: Non-current and current assets
EUR m 31.03.2023 ∆ 31.12.2022 Intangible assets 194.0 -0.1% 194.1 Property, plant and equipment 1,083.4 2.7% 1,055.7 Non-current assets Investment property 34.4 1.5% 33.9 Shareholdings in companies accounted for 76.4 -2.5% 78.4 under the equity method Other financial assets 8.4 0.6% 8.4 Other non-cu
Slide 39: Equity and liabilities
EUR m 31.03.2023 ∆ 31.12.2022 Share capital 39.3 0.0% 39.3 Capital reserve 358.8 0.0% 358.8 Equity Profit-participation rights/hybrid capital 243.0 -1.8% 247.5 Other reserves 119.2 0.2% 119.0 Non-controlling interest 34.8 1.4% 34.3 Total equity 795.1 -0.5% 798.9 Provisions 411.8 -1.0% 415.9 Leasing
Slide 40: Cash and maturity profile
Cash and cash equivalents in EUR m Maturity profile in EUR m 578 539 93 436 406 226 249 63 14 17 5 17 18 35 94 3 4 7 6 Q1/18 Q1/19 Q1/20 Q1/21 Q1/22 Q1/23 2023 2024 2025 2026 2027 from 2028 Term loans SSD floating SSD fix Project-related • Stable liquidity reserve at EUR ~900m • Early repayment of b
Slide 41: Major orders by quarter
2022 2023 Q2 Q3 Q4 Q1 • Waste to Energy plant • Highbridge Horb-Neckartal • BMW Production hall • ams-Osram Fabric halls Rzeszów/PL/62.4m DE/94.8m DE/n.a. Premstätten/AT/49.5m • Nova Paka bypass • Office Building PSE • Expressway Hannover • Arge Arlbergtunnel CZ/52.9m PL/90.1m DE/234.6m AT/47.9m • M
Slide 42: 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 2023 May 2023 42
Slide 43: Ownership structure and free float split
Ownership Structure Free Float – Geographical Split 22.9% 36.3% 50.4% 49.6%1 5.5% 6.2% 7.7% 9.0% 1.2% 11.1% Austria US Germany Rest of the World Free float UK Not directly assignable Syndicate (Strauss Group, IGO-Ortner Group) Rest of Europe Retail 1) thereof 4.5% PORR Management and PORR AG (treasu
Slide 44: Analyst coverage and price targets
Institution Analysts Price Target Recommendation Last Update Warburg Research Philipp Kaiser 24.0 Buy 09.05.2023 Raiffeisen Bank Markus Remis 18.0 Buy 07.04.2023 International Joh. Berenberg, Thomas Junghanns 19.5 Buy 06.04.2023 Gossler & Co. KG Stefan Scharff SRC Research 18.5 Buy 31.03.2023 Christ
Slide 45: Share information, IR contact, upcoming events
Share Information 1 Upcoming Events Share price EUR 14.80 29 Aug 2023 Publication Market capitalisation EUR 581.3m Half-Year Financial Report 2023 Official market Vienna Stock Exchange 20 Nov 2023 Interest payment Prime Market Hybrid Bond 2021 Number of shares 23 Nov 2023 Publication 39,278,250 outs