Keller Group Plc · LSE:KLR
Keller — Investor Presentation (2008)
21 slides from Keller's investor presentation, 2008
Slide 1: Keller in Eastern Europe
Keller Group plc Keller in Eastern Europe Justin Atkinson/Michal Topolnicki
Slide 2: Agenda
Agenda • Introduction • Keller Polska – introduction – current business – performance trends – competition – future prospects • Summary 1
Slide 3: Introduction
Introduction • Total Eastern European construction market over $100bn in 2006* (ex Russia) – Poland comprised $37bn* – total market projected to grow at 11% a year to 2011* – 10% a year from 2011-2016* • Keller present in Eastern Europe for over 10 years – market leading business in Poland – also lo
Slide 4: Keller in Eastern Europe
Keller in Eastern Europe Vienna Poland Croatia Warsaw Varaždin Gdynia Slovakia Kraków Bratislava, Poznań Košice Wrocław Slovenia Ljubljana Ukraine Kiev Czech. Rep. Prague Brno Hungary Budapest Romania Bucharest Serbia Belgrade 3
Slide 5: Growth to 2011 (CAGR %)
East European construction markets 24 Poland Growth to 2011 (CAGR %)* 20 Czech Lower risk, Ukraine 16 higher growth Hungary 12 [Blob chart] Romania Slovakia 8 Higher risk, Croatia lower growth 4 Slovenia Russia 0 20 24 28 32 36 40 Risk score* Size of circle = market size * Source: Global Insight 4
Slide 6: Securing growth in the future
Securing growth in the future • Investing to continue rapid growth in Poland • Product diversification in established businesses in Czech, Slovakia, Hungary and the Balkans – to date, restricted to ground improvement products – recently ordered five rigs to build a piling business – to be managed as
Slide 7: Keller Polska
Keller Group plc Keller Polska Michal Topolnicki
Slide 8: Introduction to Keller Polska
Introduction to Keller Polska • Organic start-up in 1994 in Gdynia – second office opened in Warsaw in 1996 – now five offices in Poland • Began with Keller’s ground improvement techniques – new to Poland, so had to create a market – broadened product range over time – started heavy foundations in 2
Slide 9: Keller in Poland
Ani Keller in Poland Gdynia, 1995 ma l 1 11 Gdynia all 2 3 14 4 5 16 6 10 7 Poznań 2 8 2004 Warsaw 7 1996 9 4 Poznań 10 15 Ożarów 11 Wrocław 12 5 3 2005 13 1 Wrocław 14 8 15 12 13 16 Kraków Kraków 6 9 1999 Population Above Above Above Above Above POLAND 8 Above
Slide 10: Consistent organic growth
Consistent organic growth 200 175 150 125 100 75 50 25 0 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 Number of employees Number of contracts Sales in mPLN £1=4.2PLN 9
Slide 11: Main competitors
Sales mPLN 0 20 40 60 80 100 120 Aarsleff Chrobok Energopol Fundamenty Main competitors Franki 2004 Freyssinet 2005 Inkom* 2006 Keller Soletanche Stabilator Stumph 10
Slide 12: Growth through product diversification
Growth through product diversification 2003 sales 2005 sales Total PLN 42m Total PLN 56m 6 9 3 25 10 26 19 2007 sales Total PLN 154m Vibro 16 32 Other ground improvement 29 Piling 43 Diaphragm walls 35 Other Absolute numbers are sales in million PLN 11
Slide 13: Keller's competitive advantage
Sea Towers Keller’s competitive advantage Gdynia 138 m • Technical excellence – design departments in all offices – 90% of projects are designed internally • Broadest product range • Reputation for innovation – introduced new products in the Polish market – vibro, combined concrete/gravel columns, r
Slide 14: Illustrative project: Royal Palace, Warsaw
Illustrative project: Royal Palace, Warsaw Client: POLNORD Warszawa Palace North Wing Product: Reinforced Deep Soil Royal Castle South Wing Mixing columns and Pre-Stressed Anchors Task: Excavation support 10m Construction site below the courtyard of 18th century palace C astle Royal r t h Wing N o P
Slide 15: Design based on FEM 2D calculation
Design based on FEM 2D calculation E D C B A Strength and stiffness analysis of reinforced DSM column 14
Slide 16: Final stage of excavation
Final stage of excavation 15
Slide 17: Recent awards for Keller Polska
Recent awards for Keller Polska Euro Leader The best Keller Polska company in among Poland The best fastest growing in specialised company in companies in geotechnical Poland Poland works in geotechnical (2007) (2006) engineering (2007) 16
Slide 18: Looking ahead
Looking ahead • Polish construction market to grow at 10% per annum to 2011* – civil engineering fastest growing sector (up >15% per annum)* • Growth driven by: – road building programs (€7bn annually to 2012*), partly EU financed – flood protection schemes – Euro 2012 – rising personal incomes (GDP
Slide 19: Prospects for Keller Polska
Prospects for Keller Polska Sales (€m) • Well positioned to benefit from market 60 development 50 40 – market leader with excellent reputation 30 – successful track record of growth 20 10 – geographically and product diverse 0 • Investing for further growth 2004 2005 2006 2007 2008B • Investment foc
Slide 20: Eastern Europe - Summary
Keller Group plc Eastern Europe - Summary Justin Atkinson
Slide 21: Eastern Europe – Summary
Eastern Europe – Summary • Markets to grow fast over medium term • Keller Polska a successful, market-leading business – full range of products and first class reputation – investing for further growth • Keller established in eight other countries – currently product limited, but investing in heavy