Slide 1: STRABAG SE Investor Presentation December 2019
STRABAG SE INVESTOR PRESENTATION DECEMBER 2019
Slide 2: Disclaimer
DISCLAIMER This presentation is made by STRABAG SE (the "Company") solely for identified by words such as "believes“, "expects”, "predicts”, "intends”, use at investor meetings and is furnished to you solely for your "projects”, "plans”, "estimates”, "aims”, "foresees”, "anticipates”, "targets”, inf
Slide 3: Agenda
1 STRABAG AT A GLANCE 2 THE CONSTRUCTION 3 THE STRABAG SECTOR WITHIN STRATEGY & EVOLVING GLOBAL INVESTMENT THEMES PROPOSITION 4 FINANCIAL 5 APPENDIX PERFORMANCE 3 Investor Presentation December 2019
Slide 4: STRABAG at a Glance
1 STRABAG AT A GLANCE
Slide 5: STRABAG at a Glance
STRABAG AT A GLANCE FACTS & FIGURES MARKETS ● Output volume: € 16.3 billion ● Net income: € 363 million ● 75,460 employees ● >700 locations in more than 80 countries ● Highly innovative: Central Technical Division with over 1,000 engineers, TPA (Quality & Innovation) with about 950 people ● Equity r
Slide 6: Largest Projects in Progress
LARGEST PROJECTS IN PROGRESS NO SPECIFIC EXPOSURE TO ANY LARGE PROJECT AS % OF ORDER TOTAL BACKLOG ORDER COUNTRY PROJECT IN €M BACKLOG Chile Alto Maipo power plant 680 4.0 Singapore Deep Tunnel Sewerage System 279 1.7 United North Yorkshire Polyhalite Project – Kingdom Drive 1 250 1.5 Alto Maipo pow
Slide 7: Flagship Projects – Examples
FLAGSHIP PROJECTS – EXAMPLES TAMINA BRIDGE – TRIIIPLE RESIDENTIAL SWITZERLAND TOWERS – AUSTRIA Building of an arch bridge Building three 100-metre-high residential towers Size: € 22 million (=60% share) Size: € 110 million Project schedule: 2013–2017 Project schedule: 2018–2021 Project scope: 475 m
Slide 8: Flagship Projects – International
FLAGSHIP PROJECTS – INTERNATIONAL ROHTANG PASS HIGHWAY JV 5TH LINE WATER TUNNEL – INDIA SUPPLY – JERUSALEM Size: € 197 million Size: € 165 million (=60% share) Project schedule: 2016–2020 Project schedule: 2008–2020 Project scope: 12.9 km TBM Project scope: Construction of an tunnel, Ein Karem exit
Slide 9: Business Segment Contribution 2018
BUSINESS SEGMENT CONTRIBUTION 2018 International + North + West South + East Special Divisions 48% of 23% of output output volume volume 28% of output volume Austria, Switzerland, Hungary, International, Tunnelling, Czech Republic, Slovakia, Services, Real Estate Germany, Poland, Benelux, Adriatic,
Slide 10: Key Financials
KEY FINANCIALS (€m) 2018 2017 % Output volume 16,323 14,621 12 Revenue 15,222 13,509 13 EBITDA 953 835 14 EBITDA adjusted 897 835 7 EBIT 558 448 25 EBIT adjusted 503 448 12 Net income after minorities 354 279 27 Cash flow from operating activities 736 1,345 -45 Cash flow from investing activities -
Slide 11: Comprehensive Country Network
COMPREHENSIVE COUNTRY NETWORK INTEGRATED MODEL TAKES ADVANTAGE OF ● local management skills ● market knowledge ● cost and efficiency synergies ● risk diversification COMPREHENSIVE COUNTRY NETWORK ENABLES STRABAG TO ● make more use of technology and machinery ● follow clients around the world Only co
Slide 12: The Construction Sector within Evolving Global Themes
2 THE CONSTRUCTION SECTOR WITHIN EVOLVING GLOBAL THEMES
Slide 13: Five European Trends: (1) Urbanisation/Demographics
FIVE EUROPEAN TRENDS: (1) URBANISATION/DEMOGRAPHICS GERMANY: DAILY TRAFFIC LOAD 2030F ● By 2050 68% of the global population will live in cities (today: 55%) – an increase of the urban population by 2.5 billion. Higher need for infrastructure ● McKinsey: USD 57 trillion infrastructure investment nee
Slide 14: Motorway Density in Different Markets
EXAMPLE: MOTORWAY DENSITY IN DIFFERENT MARKETS 45 km motorway / 1,000 km2 0 Slovenia Germany Croatia Austria Hungary Czech Slovakia Bulgaria Poland Romania Republic 1995 2006 2016 Source: Eurostat, Regionalstatistik des Verkehrs (https://ec.Europa.eu/Eurostat/data/database) 14 Investor Presentation
Slide 15: Five European Trends: (2) Energy/Sustainability
FIVE EUROPEAN TRENDS: (2) ENERGY/SUSTAINABILITY ● Investment of USD 48 trillion needed to just meet the world’s energy needs by 2035, according to McKinsey1 ● EU: 2030 climate and energy framework sets 3 targets: At least 40% cuts in greenhouse gas emissions At least 27% share of renewable energ
Slide 16: Five European Trends: (3) Financial Environment
FIVE EUROPEAN TRENDS: (3) FINANCIAL ENVIRONMENT ● Historically low interest rates and highly volatile financial environment make real estate an attractive investment alternative for some investor groups ● Low financing costs facilitate investment into real estate STRABAG Real Estate Development Tanz
Slide 17: Five European Trends: (4) CEE Set for Growth
FIVE EUROPEAN TRENDS: (4) CEE SET FOR GROWTH GROWTH IN KEY MARKETS 2018–2021F CEE SHOULD OUTPERFORM WESTERN EUROPE 30% 15% 0% 2017 2018 2019f 2020f 2021f 0% Western Czech Slovakia Poland Hungary Europe Republic -15% Constr. Western Europe Constr. Eastern Europe GDP Construction market CZECH ● CEE re
Slide 18: Five European Trends: (5) Digitalisation
FIVE EUROPEAN TRENDS: (5) DIGITALISATION CONSTRUCTION SECTOR LAGGING BEHIND REGARDING PRODUCTIVITY GAINS1 4% 27% 34% Construction Producing Manufacturing industry industry industry <6% Less than 6% of 93% of players in the construction construction sector companies use agree that digital instruments
Slide 19: Construction Segments Have Their Own Business Models and Cycles
CONSTRUCTION SEGMENTS HAVE THEIR OWN BUSINESS MODELS AND CYCLES CONSTRUCTION SUBSEGMENTS GERMANY STRABAG CLIENT STRUCTURE 10% Private 38% 0% 2017 2018e 2019e 2020e 2021e Public 62% -10% Residential Other building construction Civil CONSTRUCTION OUTPUT BY COUNTRIES 15% ● Public client: The price is m
Slide 20: Selection Criteria in Construction
SELECTION CRITERIA IN CONSTRUCTION Clients’ selection criteria Technology Price Financial strength & Innovation Experience and Construction References Know-how of employees materials supply 20 Investor Presentation December 2019
Slide 21: The STRABAG Strategy & Investment Proposition
3 THE STRABAG STRATEGY & INVESTMENT PROPOSITION
Slide 22: A European-Based Technology Group for Construction Services
A EUROPEAN-BASED TECHNOLOGY GROUP FOR CONSTRUCTION SERVICES “STRABAG is a European-based technology group for construction services, a leader in innovation and financial strength. We create added value for our clients by integrating the most diverse services and assuming responsibility for them: We
Slide 23: Six Strategic Fields
SIX STRATEGIC FIELDS 23 Investor Presentation December 2019
Slide 24: Faster Together 2022 – The STRABAG Action Plan
FASTER TOGETHER 2022 – THE STRABAG ACTION PLAN 24 Investor Presentation December 2019
Slide 25: The STRABAG Investment Proposition
THE STRABAG INVESTMENT PROPOSITION (1) Margin Upside Strategic priority: Strengthening risk and opportunity management Strategic priority: Implementing efficiency-rising measures proposed by task force (2) Flexible Business Model, Selective Diversity Strategic priority: Showing flexibility S
Slide 26: (1) Margin Upside: Targets
(1) MARGIN UPSIDE: TARGETS TARGET 2018 OF 3.3% EBIT MARGIN1 TOP-LINE GROWTH NOT IN THE FOCUS 4% 12% 12% 12% ≥3.3% 3.2% 3.3% 3.3% 5% 8% 5% 2.6% 0% -3% 0% 2.3% 0% -6% -6% 0% -12% 2014 2015 2016 2017 2018 2019 2014 2015 2016 2017 2018 2019 ● Comprehensive risk management ● For the current 2019 financia
Slide 27: (1) Margin Upside: Risk Management
(1) MARGIN UPSIDE: RISK MANAGEMENT RISK MANAGEMENT INSTRUMENTS TYPES OF CONTRACTS ● Four-eyes-principle ● Joint Venture with the client ● Internal price committees (including a ● Cost + fee STRABAG SE board member when project ● Guaranteed maximum price volume ≥€ 70 m) ● Lump-sum ● Internal Audits ●
Slide 28: Resilience in a Volatile Industry
(2) FLEXIBLE BUSINESS MODEL, SELECTIVE DIVERSITY: RESILIENCE IN A VOLATILE INDUSTRY OUTPUT VOLUME (€M) ORDER BACKLOG (€M) 20000 20,000 20000 20,000 16,323 16,592 16,900 14,621 14,403 14,816 13,566 14,290 13,491 13,135 0 0 2014 2015 2016 2017 2018 2014 2015 2016 2017 2018 EBITDA (€M) AND EBITDA MARGI
Slide 29: Subcontracting and Portfolio Mix
(2) FLEXIBLE BUSINESS MODEL, SELECTIVE DIVERSITY: SUBCONTRACTING AND PORTFOLIO MIX SUBCONTR. BUILDING & CIVIL ENGINEERING SUBC. TRANSPORTATION INFRASTRUCTURE Sub- contractors 30% Own 40% Sub- contractors 60% Own Own 70% 70% DIVERSIFIED PORTFOLIO BALANCES CYCLICAL/PROJECT-DRIVEN NATURE OF CONSTRUCTIO
Slide 30: Own Dense Construction Materials Network
(2) FLEXIBLE BUSINESS MODEL, SELECTIVE DIVERSITY: OWN DENSE CONSTRUCTION MATERIALS NETWORK STRABAG FACILITIES1 OWN COVERAGE OF MATERIAL NEEDS (%) ● Asphalt mixing plants 2692 100% 81% 78% ● Concrete mixing plants 1472 ● Quarries and gravel pits 1502 ● Cement mixing plants 53 27% 28% 25% 28% ● Produc
Slide 31: Steady Income through Concession Business
(2) FLEXIBLE BUSINESS MODEL, SELECTIVE DIVERSITY: STEADY INCOME THROUGH CONCESSION BUSINESS NUMBER OF STRABAG’S PPP1 PROJECTS SELECTED PPP PROJECTS 50 37 38 37 34 35 0 2014 2015 2016 2017 2018 MAR1, Colombia Motorway A8, Germany TOTAL CONCESSION PPP STRATEGY SELECTED PPP PROJECTS COUNTRY PROJECT COS
Slide 32: Property & Facility Services
(2) FLEXIBLE BUSINESS MODEL, SELECTIVE DIVERSITY: PROPERTY & FACILITY SERVICES TARGET MARKETS KEY FACTS 2018 ● Output 2018: € 1.1 billion ● ~ 9,500 employees (FTE) ● Broad range of customers: Airbus, Allianz, Audi, BImA*, BDBOS*, BOS*, Colt, Commerzbank, DEKA, Deutsche Bahn, DFS, Generali, Hahn- Gru
Slide 33: BIM 5D Could Be a Revolution in Construction
(2) OFFERING TECHNOLOGY AND SUSTAINABILITY: BIM 5D® COULD BE A REVOLUTION IN CONSTRUCTION 3D MODEL: DEFINING THE “TO BE BUILT” 4D – TIME: WHEN ARE WORKS EXECUTED? 5D – PROCESS: MATERIALS, ORDERS ADVANTAGES OF BIM 5D® ● Single data pool as an answer to specialisation and growing number of companies i
Slide 34: Intelligent Process Engineering
(2) OFFERING TECHNOLOGY AND SUSTAINABILITY: INTELLIGENT PROCESS ENGINEERING BIM 5D® ALSO APPLICABLE FOR TRANSPORTATION INFRASTRUCTURE PROJECTS ● 3D visualisation ● Topographic mapping via drones and other innovative hard- & software ● Model-based quantity take-off during tender stage and quantity on
Slide 35: Case Study – Central Technical Division/TPA
(2) OFFERING TECHNOLOGY AND SUSTAINABILITY: CASE STUDY – CENTRAL TECHNICAL DIVISION/TPA STRABAG AND PEERS: R&D/TECHNICAL DIVISION STAFF HEADCOUNT1 2000 Number of employees ● Central Technical Division – organisation in 950 charge of planning and execution of R&D projects TPA Central Technical Divisi
Slide 36: Example on Non Financial Targets – Women
(2) OFFERING TECHNOLOGY AND SUSTAINABILITY: EXAMPLE ON NON FINANCIAL TARGETS – WOMEN TARGET: GROW SHARE OF WOMEN IN TOTAL EMPLOYMENT AND MANAGEMENT EACH YEAR 32% 16% 16.9% 14.9% 14.9% 13.8% 13.9% 9.0% 9.2% 8.5% 8.7% 8.4% 0% 2014 2015 2016 2017 2018 Women as % of management Women as % of staff 36 Inv
Slide 37: Financial Strength as Competitive Advantage
(3) FINANCIAL STRENGTH AS COMPETITIVE ADVANTAGE ● STRABAG SE is one of the few European construction companies with an official corporate credit rating. ● S&P raised STRABAG SE investment grade rating from BBB- to BBB, stable outlook, in June 2015; confirmed in September 2019 Leading market positi
Slide 38: Financial Strength: Diversified Financing
(3) FINANCIAL STRENGTH: DIVERSIFIED FINANCING DEBT REPAYMENT PROFILE (€M) DIVERSIFIED MEANS OF FINANCING 300 ● Cash and surety credit lines (31 December 2018): 200 200 € 7.8 billion (thereof cash credit lines of € 0.4 billion) 18.50 ● Last bond issue: € 200 million, 1.625 %, 2015- 100 2022 0 2019 20
Slide 39: Attractive Dividends: Consistent Payout Ratio
(4) ATTRACTIVE DIVIDENDS: CONSISTENT PAYOUT RATIO NET INCOME A.M. (€M) AND MARGIN (%) DIVIDEND (€) AND PAYOUT RATIO (%) 27% €2 100% 400 354 278 279 2.3% 2.2% 2.1% 1.30 1.30 40% 43% 156 0.95 38% 128 48% 1.2% 0.65 35% 1.0% 0.50 0 €0 0% 2014 2015 2016 2017 2018 2014 2015 2016 2017 2018 EARNINGS PER SHA
Slide 40: Attractive Dividends: Total Shareholder Return 2014–2018
(4) ATTRACTIVE DIVIDENDS: TOTAL SHAREHOLDER RETURN 2014–2018 Dividend policy: 30-50 % of net income after minorities distributed as a dividend 50% 3.4% Ø dividend 3.1% yield: 3.3% 42.7% 42.7% 29.7% 3.6% 3.9% 2.5% 1.1% -14.8% -24.6% -20% 2014 2015 2016 2017 2018 2.4% Return from share price Return fr
Slide 41: Financial Performance
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Slide 42: 9M/19: Output Volume Rose by 4%
9M/19: OUTPUT VOLUME ROSE BY 4% OUTPUT VOLUME (€M) 20.000 20,000 ● Development was shaped particularly by growth in 16,323 4% Germany 12,150 11,646 Austria transportation infrastructures in Poland and Hungary but also by the already expected decline resulting from the loss of a key account in
Slide 43: 6M/19: Output Volume Rose by 9%
6M/19: OUTPUT VOLUME ROSE BY 9% OUTPUT VOLUME (€M) 20.000 20,000 ● Driven in particular by 16,323 Germany 9% building construction in Austria 7,507 6,875 high order backlog in Hungary large-scale project in UK 0 6M/19 6M/18 2018 ORDER BACKLOG (€M) -3% 20.000 20,000 18,326 18,874 ● Slight wea
Slide 44: 6M/19: Earnings Growth from International + Special Divisions
6M/19: EARNINGS GROWTH FROM INTERNATIONAL + SPECIAL DIVISIONS SEGMENT EBITDA (€M) 1,000 9531 ● Growth in EBITDA of 47 % 47% 295 200 0 6M/19 6M/18 2018 EBIT (€M) 700 ● Depreciation and amortisation higher by 30 % – 5581 includes opposing effect on EBITDA from IFRS 16 Leases ● Improvement in EBIT deri
Slide 45: 6M/19: Net Income after Minorities into Positive Territory
6M/19: NET INCOME AFTER MINORITIES FROM NEGATIVE INTO POSITIVE TERRITORY NET INCOME AFTER MINORITIES (€M) EARNINGS PER SHARE (€) 400 354 4 3.45 n.m. n.m. 11 0.10 -1 -0.01 -100 -1 6M/19 6M/18 2018 6M/19 6M/18 2018 ● Net interest income at € -20 million after € -7 million in 6M/18; absence of positive
Slide 46: 6M/19: Strong Balance Sheet
6M/19: STRONG BALANCE SHEET ASSETS1 EQUITY AND LIABILITIES1 (€m) 6M/2019 2018 (€m) 6M/2019 2018 Intangible assets 494 493 Share capital 110 110 Rights from concession Capital reserves 2,315 2,315 arrangements 592 601 Retained earnings 1,075 1,195 PP&E & investment property 2,553 2,144 Non-controllin
Slide 47: 6M/19: Higher Working Capital Increase
6M/19: HIGHER WORKING CAPITAL INCREASE (€m) 6M/19 ∆% 6M/18 Cash – beginning of period 2,384 -15 2,790 Cash flow from earnings 229 55 148 ∆ Working Capital -550 -86 -295 Cash flow from operating activities -321 -118 -147 Cash flow from investing activities -299 -8 -277 Cash flow from financing activi
Slide 48: 6M/19: North + West
6M/19: NORTH + WEST: UNBROKEN BOOM IN ALL MARKETS KEY INDICATORS COMMENTS (€m) 6M/19 Δ% 6M/18 ● Output volume increased by 9% Output volume 3,552 9 3,259 ● Seasonally usual negative EBIT somewhat weakened Revenue 3,265 10 2,970 ● Order backlog fell slightly (-2%): Order backlog 9,215 -2 9,403 Exec
Slide 49: 6M/19: South + East
6M/19: SOUTH + EAST: MARGINS APPROACH GROUP LEVEL KEY INDICATORS COMMENTS (€m) 6M/19 Δ% 6M/18 ● Output volume climbs by 8% thanks to Austria, Hungary, Czech Republic and Serbia Output volume 2,068 8 1,916 ● EBIT slid further into negative territory – provisions as well Revenue 1,957 7 1,824 as margi
Slide 50: 6M/19: International + Special Divisions
6M/19: INTERNATIONAL + SPECIAL DIVISIONS: JUMP IN EBIT KEY INDICATORS COMMENTS (€m) 6M/19 Δ% 6M/18 ● Output volume up by 11% due to large-scale projects in tunnelling in the UK, Germany and Chile Output volume 1,832 11 1,653 ● Favourable environment in real estate development, Revenue 1,749 16 1,503
Slide 51: Output Volume at Record Level of 16.3 Billion
OUTPUT VOLUME AT RECORD LEVEL OF 16.3 BILLION OUTPUT VOLUME (€M) 20000 20,000 +12% ● Growth in all of the group’s most important 16,323 14,621 markets ● Unusual good construction weather 2018 ● In the Americas, the output volume grew as a result of the contract extension for the Alto Maipo tunneling
Slide 52: Numerous Orders in the Group's Largest Markets
NUMEROUS ORDERS IN THE GROUP’S LARGEST MARKETS ORDER BACKLOG (€M) 20000 20,000 ● Large orders above all in Germany, Austria and 16,900 +2% 16,592 Poland ● Contract extension for the Alto Maipo tunnelling project in Chile ● With the working-off of large-scale projects, the order backlog fell back in
Slide 53: EBIT Growth in the Double-Digit Area
EBIT GROWTH IN THE DOUBLE-DIGIT AREA – EVEN WHEN ADJUSTED EBITDA (€M) AND EBITDA MARGIN (%) 1200 1,200 ● EBITDA 2018 adjusted for a non-operating step-up +14% 9531 profit regarding the consolidation of PANSUEVIA, 835 the BAB A8 concession company: € 897 million (+8%) 6.3%1 6.2% ● Property and Facili
Slide 54: Earnings per Share Rose Significantly
EARNINGS PER SHARE ROSE SIGNIFICANTLY NET INCOME A. MINORITIES (€M) & MARGIN (%) EARNINGS PER SHARE (€) 400 +27% 354 4 +27% 3.45 279 2.72 2.3% 2.1% 0 0 2018 2017 2018 2017 ● Net interest income comparable to that of the previous year ● Income tax rate stood slightly higher at 31.7% (2017: 30.6%) ● E
Slide 55: Group Income Statement 2018
GROUP INCOME STATEMENT 2018 (€m) 2018 2017 Δ% Output volume 16,322.88 14,620.89 12 Revenue 15,221.83 13,508.72 13 Changes in inventories/own work capitalised -33.07 -48.09 31 Other operating income 222.98 282.99 -21 Construction materials, consumables and services used -10,125.77 -8,839.87 -15 Emplo
Slide 56: Group Income Statement 2018 (cont.)
GROUP INCOME STATEMENT 2018 (CONT.) (€m) 2018 2017 Δ% EBITDA 952.60 834.58 14 Margin (%) 6.3 6.2 Depreciation and amortisation -394.39 -386.22 -2 EBIT 558.211 448.36 25 Margin (%) 3.7 3.3 Net interest income -27.43 -27.15 -1 Income tax expense -168.00 -128.85 -30 Net income 362.78 292.36 24 Attribut
Slide 57: Unchanged High Dividend of € 1.30 per Share
UNCHANGED HIGH DIVIDEND OF € 1.30 PER SHARE DIVIDEND (€) AND PAYOUT RATIO (%) €2 100% ● Payout ratio 2018 of 38% within predetermined payout range of 30–50% of net income after 1.30 1.30 minorities 43% 0.95 48% 40% 38% ● STRABAG has distributed a dividend within the 0.65 predetermined payout range e
Slide 58: Equity Ratio Remains High at 31%
EQUITY RATIO REMAINS HIGH AT 31% ASSETS1 EQUITY AND LIABILITIES1 (€m) 2018 2017 (€m) 2018 2017 Intangible assets 493 499 Share capital 110 110 Rights from concession Capital reserves 2,315 2,315 arrangements 601 0 Retained earnings 1,195 945 PP&E & investment property 2,144 1,942 Non-controlling int
Slide 59: Net Cash Still Extraordinarily High, Equity Ratio Increased
NET CASH STILL EXTRAORDINARILY HIGH, EQUITY RATIO INCREASED NET DEBT (+)/NET CASH (-) (€M) EQUITY RATIO (%) 1500 1,500 0 40 30.6% 31.0% 31.5% 30.7% 31.4% 0 -249 -449 -1,094 -1,218 -1500 -1,500 -1,335 2014 2015 2016 2017 2018 0 2014 2015 2016 2017 2018 ● Equity ratio increased despite balance sheet g
Slide 60: Cash and Cash Equivalents of € 2.4 Billion
CASH AND CASH EQUIVALENTS OF € 2.4 BILLION (€m) 2018 ∆% 2017 Cash – beginning of period 2,790 40 1,998 Cash flow from earnings 654 3 634 ∆ Working Capital 82 -88 711 Cash flow from operating activities 736 -45 1,345 Cash flow from investing activities -588 -76 -333 Cash flow from financing activitie
Slide 61: Cash at € 2.4 Billion
CASH AT € 2.4 BILLION CASH DEVELOPMENT (€M) COMMENTS 4,000 4000 736 ● Another working capital reduction in 2018 2,790 ● Higher investments in property, plant and -588 2,384 equipment -534 -19 -1 0 Cash CFO CFI CFF Currency Restricted Cash 1.1.2018 translation cash 31.12.2018 CFO: Cash flow from oper
Slide 62: Again High Cash Inflow in Q4
AGAIN HIGH CASH INFLOW IN Q4 WORKING CAPITAL PATTERN: CASH OUTFLOWS IN Q1–3; INFLOWS IN Q4 (€M) 1,300 1300 1,001 1,112 494 604 0 -107 -49 -69 -123 -65 -263 -172 -209 -230 -227 -418 -330 -1300 -1,300 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2015 2016 2017 2018 COMMENTS ● Working capital outflo
Slide 63: Another Year of Positive Free Cash Flow
ANOTHER YEAR OF POSITIVE FREE CASH FLOW Δ WORKING CAPITAL (€M) CFO VS. CFI (€M) CFI VS. DEPRECIATION (€M) 800 711 1500 1,500 1,345 1,500 1500 82 736 588 588 0 434 434 430 394 264 333 333 386 -426 0 0 2016 2017 2018 2016 2017 2018 -800 2016 2017 2018 ● Another positive Free Cash Flow in 2018 despite
Slide 64: North + West: High Order Backlog and Provisions
NORTH + WEST CHARACTERISED BY HIGH ORDER BACKLOG AND PROVISIONS FOR LARGE-SCALE PROJECTS KEY INDICATORS COMMENTS (€m) 2018 Δ% 2017 ● Output volume +14% over the past year Output volume 7,827 14 6,843 ● EBIT declined by 19% – Provisions for individual Revenue 7,242 14 6,378 large-scale projects in se
Slide 65: South + East: Intensified Competition
SOUTH + EAST: INTENSIFIED COMPETITION KEY INDICATORS COMMENTS (€m) 2018 Δ% 2017 ● Output volume up by 9% due to Austria, Hungary Output volume 4,639 9 4,242 and Czech Republic Revenue 4,522 11 4,073 ● EBIT margin normalised from an exceptionally Order backlog 4,311 -4 4,505 high level to a lower lev
Slide 66: International + Special Divisions: Absence of Prior-Year Earnings Burdens
INTERNATIONAL + SPECIAL DIVISIONS: ABSENCE OF PRIOR-YEAR EARNINGS BURDENS KEY INDICATORS COMMENTS ● Output volume down especially due to Italy (€m) 2018 Δ% 2017 ● Output volume rose by 10%, attributable especially ● EBIT hardly changed in absolute terms – number of contrary effects related Output to
Slide 67: Appendix
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Slide 68: Output Volume by Country
OUTPUT VOLUME BY COUNTRY (€m) 2014 2015 2016 2017 2018 CAGR1 (%) Germany 6,080 6,256 6,270 6,960 7,877 7 Austria 2,058 2,003 2,099 2,333 2,542 5 Poland 817 941 774 848 975 5 Hungary 544 594 448 551 714 7 Czech Republic 620 765 631 629 706 3 Slovakia 427 716 461 528 667 12 Americas 255 310 348 385 51
Slide 69: STRABAG Market Share Data
STRABAG MARKET SHARE DATA 2017 (€M) CONSTRUCTION OUTPUT STRABAG OUTPUT MARKET SHARE (%) Germany 327.817 6,960 2.1 Austria 40,068 2,333 5.8 Poland 49,185 848 1.7 Czech Republic 17,684 629 3.6 Hungary 10,827 551 5.1 Russia 133,673 158 0.1 Slovakia 4,948 528 10.7 Romania 16,498 183 1.1 Croatia 3,355 12
Slide 70: Market Leading Positions in Central and Eastern European Countries
MARKET LEADING POSITIONS IN CENTRAL AND EASTERN EUROPEAN COUNTRIES WESTERN EUROPE GERMANY AUSTRIA Output volume/Revenue 2017 (€m) Output volume/Revenue 2017 (€m) 1. STRABAG 6,960 1. STRABAG 2,333 2. Vinci 2,726 2. Porr 2,198 3. Goldbeck 2,052 3. Swietelsky 1,435 4. Zech Group 1,709 4. Habau 1,3541 5
Slide 71: Market Leading Position in CEE Countries (cont.)
MARKET LEADING POSITION IN CENTRAL AND EASTERN EUROPEAN COUNTRIES (CONT.) SLOVAKIA CROATIA ROMANIA Output volume/Revenue 2017 (€m) Output volume/Revenue 2017 (€m) Output volume/Revenue 2017 (€m) 1. STRABAG 528 1. STRABAG 120 1. STRABAG 183 2. Doprastav 291 2. GP Krk 91 2. Bog'Art 118 3. Eurovia 168
Slide 72: Own Building Materials Network
OWN BUILDING MATERIALS NETWORK 72 Investor Presentation December 2019
Slide 73: Financing PPP-Projects
FINANCING PPP-PROJECTS TYPICAL FINANCING EQUITY INVESTED IN PPP (€M) ● The SPV1 is financed with equity (10%–30%) and 700 bank debt (70%–90%) 515 ● STRABAG – as a shareholder in the SPV – 400 427 378 370 puts in equity ● Other SPV shareholders are e.g. governments, infrastructure funds and developer
Slide 74: Illustrative PPP Project Structure
ILLUSTRATIVE PPP PROJECT STRUCTURE DEBT Grantor Independent Engineer Independent Lenders Engineer Project/Concession Agreement Contract STRABAG EQUITY Funding Agreements SPC / Project Shareholders Consortium / Company [Public Entity] Agreement Insurance Contracts Partner(s) Turnkey Design and Insura
Slide 75: Property & Facility Services: Strategic Rationale & Targets
PROPERTY & FACILITY SERVICES: STRATEGIC RATIONALE & TARGETS EXTENDING THE VALUE CHAIN TARGETS FOR 2019 ● Offsets seasonal and cyclicality factors (contracts of 3-5 ● Extend business with new and existing customers years duration) ● Stable output volume of approx. € 850 m ● One integrated provider fo
Slide 76: Stable Shareholder Structure
STABLE SHAREHOLDER STRUCTURE SHAREHOLDER STRUCTURE SINCE 7/2016 COMMENTS ● Core shareholders account for the majority Treasury shares 6.7% >80% stake Free float Haselsteiner Family ● Shareholders’ syndicate extended in June 2017 13.5% 26.4% by five years to end of 2022 ● Flexibility: Strategic decis
Slide 77: Organisation – Central Units
ORGANISATION – CENTRAL UNITS ORGANISATIONAL STRUCTURE CEO CFO Central Divisions & Central Staff Divisions BRVZ Accounting, Financing, Taxes, IT, Human BMTI1 TPA2 CML3 Zentrale Technik Resources, Real Estate, Insurance, Project- Related Risk Management System (PRMS)/ Organisational Development, Inter
Slide 78: The Management Board
THE MANAGEMENT BOARD LONG RECORD OF EXPERIENCE WITHIN STRABAG AND IN THE CONSTRUCTION SECTOR Thomas Birtel, CEO (centre) ● Joined STRABAG in 1996 ● Management Board member since 2006 ● Born 1954 Education: Economics Christian Harder, CFO (left) ● Joined STRABAG in 1994 ● Management Board member sinc
Slide 79: STRABAG Share Is Covered by Seven Institutions
STRABAG SHARE IS COVERED BY SEVEN INSTITUTIONS Company Date Title Target Price Rating Erste Group 15.11.2019 Leicht höhere Leistung für 2019 erwartet € 42.9 Buy Konzern erhöht das Leistungsziel für LBBW 13.11.2019 2019 auf mindestens 16,3 Mrd. EUR € 30.0 Hold Well on track to deliver on FY 19 RCB 24
Slide 80: Germany: Strong Growth in Home Market
GERMANY: STRONG GROWTH IN HOME MARKET GROWTH IN CONSTRUCTION SEGMENTS COMMENTS 5% ● STRABAG is the German market leader with 2.0% market share, 9.1% in road construction ● Persistently good economic activity due to strong increase in private consumption and public investment 0% 2018 2019F 2020F ● Ge
Slide 81: Brexit – Implications on STRABAG
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