Porr Ag · VIE:POS
Porr — Q1 2022 Earnings Presentation
44 slides from Porr's earnings presentation, May 2022
Slide 1: Q1 Results 2022
Q1 Results 2022 Part of the solution. Investor Presentation May 2022 Investor Presentation May 2022 1
Slide 2: Disclaimer
Disclaimer This presentation was prepared by PORR AG (the "Company") This presentation contains forward-looking statements relating to solely for use at investors’ meetings and is provided solely for the business, financial performance and results of the Company informational purposes. and/or th
Slide 3: Building Tomorrow's World
Building Tomorrow‘s World 01 PORR today 02 Transformation 03 Financial Peformer Leading One-Stop Shop in Strategic Focus on Holistic PORR 2025 construction Green and Lean unleashes value potential Strong long-term upside for Pioneering the must-win Visible margin upside PORR home markets battl
Slide 4: Riding the Right Wave – One-Stop Shop in Construction
Riding the Right Wave – One-Stop Shop in Construction Design & Engineering Segment split1 Infra 9% NO CEE Demolition Construction 10% PL One-Stop-Shop 13% Full-Service- #4 PL Provider DE AT / CH #3 #6 CZ DE SK #2 53% AT 14% #7 CH #1 RO #7 Service split1 Operation & Refurbishment Management & Renovat
Slide 5: PORR Captures the Megatrends in Construction
PORR Captures the Megatrends in Construction Urbanisation Mobility Sustainability Digitalisation Health +80% -55% EUR 1.8tn EUR 2.1bn +48% of the European population CO2 emission target in the European BIM People older than 65 in urban areas by 2050 EU by 2030 Green Deal market by 2050 Demand for ne
Slide 6: We focus on Intelligent Growth with "Green and Lean"
We focus on Intelligent Growth with “Green and Lean” Intelligent Growth Green and Lean Company Staff LEAN ESG Best in Class: in construction We live our Design-build contractor – Clear commitment to and technologies PORR Principles one-stop shop for every ecological, environmentally process friendly
Slide 7: PORR 2025 – A Holistic Approach
PORR 2025 – A Holistic Approach 2025 Operational Staff and Markets excellence and Finance organisation digitalisation Unite economy, Innovation leader in LEAN Management – Improve capital employed environment and society construction and flat hierarchies and in construction technology fast d
Slide 8: Highlights Q1 2022
Highlights Q1 2022 Stable market position in core markets 1 Turning main challenges into opportunities Top order backlog. High production output 2 Focus on cherry picking Q1 EBT of EUR 0.6m on track 3 Steered impact from global challenges Solid balance sheet 4 Improved net debt. High cash. 2022 Outl
Slide 9: Construction Markets Under Tension
Construction Markets Under Tension 110 Oil +65.7% Global Market 105 100 Lumber +156.5% 95 Steel +35.7% 90 85 AT: Construction 80 cost index +27.4% Road construction 75 70 +25.3% Residential construction 12.2019 06.2020 12.2020 06.2021 12.2021 Volume index of production in construction for European U
Slide 10: Sharpened Profile of Order Book
Sharpened Profile of Order Book +23.1% Selective growth in most segments, focus on the right amount of risks and margins 7,920 8,033 6,527 +1.4% +21.3% Moderate increase with +5% 1,850 long-standing EBT track record (22.7%) 1,429 Slight increase, after de-risking in 1,150 +60.9% +2% structural engin
Slide 11: TOP Orders in 2022
TOP Orders in 2022 TOP order backlog TOP order intakes in Q1 2022 Bridge Construction Drammen Bybrua (NO) Industrial ARGE Aircraft hangar Airbus, Construction Hamburg (DE) Arge ÖBB Ebreichsdorf Thulestraße Building Austria Berlin, DE Construction Alte Akademie, Munich (DE) Civil ARGE Stadtstraße, Vi
Slide 12: Strong Performance in Output and EBT
Strong Performance in Output and EBT Production output EBT in EUR m in EUR m 1,161 1,047 1,002 942 0.6 (9.4) (11.8) (25.5) Q1/19 Q1/20 Q1/21 Q1/22 Q1/19 Q1/20 Q1/21 Q1/22 COVID COVID Growth driven by permanent business in Successfully navigated through AT and DE challenging Q1 market environment Str
Slide 13: Right-sizing of Balance Sheet On Track
Right-sizing of Balance Sheet On Track Equity in EUR m Net debt development Equity ratio in % in EUR m 306 (56%) 824 768 IAS 37: 651 634 22m 135 746 135 20.3% 18.5% 19.5% 18.0% 19.1% (65) FY/20 Q1/21 FY/21 Q1/22 FY/20 Q1/21 FY/21 Q1/22 Solid equity ratio of 19.1% EUR 51m hybrid bond redeemed despite
Slide 14: ESG on Track
ESG on Track PORR score Sector average Low High Top 10% of D- D+ C+ Prime A+ sector Second highest CCC BBB AA AAA rating 2021with No rating Bronze Gold Platin follow-on medal in Leadership Climate D- B A- A segment Water D- B A 1st time rating 40+ High risk 29.5 0 Medium risk Investor Presentation M
Slide 15: Stable Shareholder Structure
Stable Shareholder Structure Ownership Structure Free Float – Geographical Split 20.0% 32.4% 50.4% 6.8% 1.8% 6.5% 49.6%1 18.1% 5.7% 0.5% 8.2% Syndicate (Strauss Group, IGO-Ortner Group) Free float Austria Germany Norway UK Rest of Europe US Rest of the World Not directly assignable Retail 1 thereof
Slide 16: Dividend
Dividend Dividend per share in EUR 1.10 1.10 1.10 0.501 0.00 0.00 2016 2017 2018 2019 2020 2021 Earnings per share in EUR 2.23 2.09 1.88 0.50 (2.28) 1.18 Commitment to a dividend policy with a payout ratio of 30% to 50% Along the profitability the executive board proposes EUR 0.50 dividend per share
Slide 17: Outlook
Outlook 2022 2025 High order book as stable foundation Production output CAGR +3% per year PORR 2025 roadmap on track Sustainable EBT margin ~3% Current volatile market conditions and insecurity due to geopolitical conflicts Improved balance sheet structure Investor Presentation May 2022 17
Slide 18: Strategy
Strategy Investor Presentation May 2022 18
Slide 19: PORR 2025 Execution Well Advanced
PORR 2025 Execution Well Advanced Value Next generation leadership • Focus Green and Lean – Strengthen core differentiation and long-term value creation business Growth • Strengthen leadership as • Focus on fundamentals a total contractor • Achieve market and productivity positions • Deepen value ch
Slide 20: Stringent Execution of PORR 2025 Road Map
Stringent Execution of PORR 2025 Road Map Milestones 2021 Measures 2025 • Record output & Top order backlog • Promote sustainable construction Markets • Attractive infrastructure & • Extend value chain and permanent business sustainable construction projects • Optimise portfolio mix • Expanded produ
Slide 21: Substantial Improvements in 2021
Substantial Improvements in 2021 EBT in EUR m 2020 EBT margins in % of production output 2021 1.6% 2.7% (4.6)% (0.5)% 0.4% 1.9% (4.9)% 1.0% (7.5)% (2.4)% 80.1 44.3 13.3 2.3 5.7 (4.3) (12.9) (24.7) (30.4) (40.7) AT / CH DE PL CEE Infra AT/CH: Output record and strong PL: Significant output increase (
Slide 22: Strong Business in Austria to Guarantee Stable Profits
Strong Business in Austria to Guarantee Stable Profits Output Austria & Switzerland Production Output and EBT margins (in EUR m) 53% Contribution Strong performance due to Historical EBT margin COVID impact to Output CAGR 2020-25: of >3% (2011-20) fade out in 2021 c. 2.5% − High output level − Cos
Slide 23: Realignment in Germany with Focus on Profitable Growth
Realignment in Germany with Focus on Profitable Growth Output Germany Production Output and EBT margins (in EUR m) 14% Contribution Substantial loss reduction due to Reduction of Focus on well- Output CAGR 2020-25: realignment of structural engineering civil engineering performing units c. 4.0%
Slide 24: Sustainable Turnaround in Poland Achieved – Set for Profitable Growth
Sustainable Turnaround in Poland Achieved – Set for Profitable Growth Output Poland Production Output and EBT margins (in EUR m) 13% Contribution Significant output increase (+17.2%) and Strong expansion Selective growth Output CAGR 2020-25: substantial margin improvement due to in the past c. 3.0
Slide 25: CEE: Strengthened Position and Expanded Footprint
CEE: Strengthened Position and Expanded Footprint Output CEE Production Output and EBT margins (in EUR m) 10% Contribution Production output doubled Investments in Smaller scale and Output CAGR 2020-25: from 2016-2021 market position regional expansion c. 1.0% Turnaround achieved due to increase
Slide 26: Infrastructure: Focus on Core Competences in our Project Markets
Infrastructure: Focus on Core Competences in our Project Markets Output Infrastructure Production Output and EBT margins (in EUR m) 9% Contribution Substantial improvement Volatile business in Refocus on technological Output CAGR 2020-25: project markets excellence c. 7.5% − Output and earnings in
Slide 27: Working Capital and Free Cash Flow 2021
Working Capital and Free Cash Flow 2021 Working Capital in EUR m Free Cash Flow Working Capital in % of total assets in EUR m 213 263 202 186 First-time consolidations EUR 55m 147 139 5.8% 118 88 5.3% 5.0% 80 2.8% 2018 2019 2020 2021 2018 2019 2020 2021 Increase in working capital as a result Contri
Slide 28: Green and Lean. PORR's Strategic Evolution
Green and Lean. PORR‘s Strategic Evolution GREEN From best-in-class to best in class in sustainable construction Evolution in technology needs as a must-have AND Setting a partnering standard Evolution in client and stakeholder needs – holistic approach LEAN Lean approach in management and
Slide 29: Green. The New Reality
Green. The New Reality ▪ Design & Engineering – circular engineering via BIM and LEAN Design experts in-house, virtual reality, innovation ▪ Modern energy concepts – climate neutral buildings, city geothermal approaches, energy efficient facades, etc. ▪ Renewable, recyclable, compostable materials –
Slide 30: Lean. PORR's Future of Construction
Lean. PORR´s Future of Construction Lean at management level Lean at operational level Lean in management - LEAN Design – optimise value, less layers of hierarchy minimise waste in the planning Lean in organisation – LEAN Construction – value added processes operational efficiency Investor P
Slide 31: LEAN – Focus On Customers And Value
LEAN – Focus On Customers And Value LEAN Project LEAN Design LEAN Construction Delivery ✓ Project management system ✓ Coordination ✓ Engaging all designers: ✓ Communication of ✓ Every team and every trade clients, partners, planning teams is integrated from the professionals ✓ Process mapping outset
Slide 32: The New Normal – Building Information Modeling
The New Normal – Building Information Modeling Collaboration Planning Communication Calculation Basic ingredients Responsibilities Construction scheduling Team Identification Processes Quantity calculation Training Site logistics Culture Coordination & support Data management Data formats BIM standa
Slide 33: LEAN & BIM as Parts of PORR's Mindset
LEAN & BIM as Parts of PORR‘s Mindset Project Culture What now? PORR PRINCIPLES Current BIM standards 5D Strategy 27 Number of Example project: current BIM projects Wien Museum LEAN Methods Connecting people: Customers, BIM What’s next? authorities, planners, Processes Connecting data workers & info
Slide 34: Financial Performance
Financial Performance Investor Presentation May 2022 34
Slide 35: Key Financials
Key Financials Key Earnings Figures (EUR m) Q1 2022 %∆ Q1 2021 Production output1 1,160.9 15.9% 1,001.9 Revenue 1,110.8 14.7% 968.4 EBT 0.6 < (100.0)% (9.4) Net profit for the period 0.4 < (100.0)% (7.2) Key Assets and Financial Figures (EUR m) 31.03.2022 %∆ 31.12.2021 Total assets 3,914.3 (3.7)% 4,
Slide 36: Consolidated Income Statement
Consolidated Income Statement EUR m Q1 2022 Q1 2021 % Q1 22/21 2021 Production output1 1,160.9 1,001.9 15.9% 5,727.3 Revenue 1,110.8 968.4 14.7% 5,169.8 EBITDA 50.3 38.6 30.4% 287.5 in % of Production output 4.3% 3.9% 0.5PP 5.0% EBIT 6.0 (4.4) < (100.0%) 95.2 in % of Production output 0.5% (0.4)% 0.
Slide 37: Key Ratios
Key Ratios EUR m Q1 2022 Q1 2021 ∆ Q1 22/21 2021 Production output1 1,160.9 1,001.9 15.9% 5,727.3 Revenue 1,110.8 968.4 14.7% 5,169.8 Ratio of profit/loss of companies at equity 1.5% 1.0% 0.5PP 1.1% Material cost ratio2 (62.4)% (60.0)% (2.5)PP (60.2%) Personnel cost ratio (25.5)% (27.8)% 2.3PP (22.3
Slide 38: Balance Sheet Key Figures
Balance Sheet Key Figures EUR m 31.03.2022 31.12.2021 31.12.2020 Non-current assets 1,460.4 1,448.9 1,283.8 Assets Current assets 2,453.9 2.616.1 2,225.6 Total assets 3,914.3 4,065.0 3,509.5 Equity1 745.8 824.4 650.5 Equity & liabilities Non-current liabilites 802.8 826.1 819.3 Current liabilities 2
Slide 39: Balance Sheet Assets
Balance Sheet Assets EUR m 31.03.2022 %Δ 31.12.2021 Intangible assets 187.4 (0.0)% 187.5 Property, plant and equipment 1,040.5 1.2% 1,028.7 Non-current assets Investment property 25.0 (1.7)% 25.5 Shareholdings in comp. acc. for under the equity meth. 83.4 (2.4)% 85.4 Other financial assets 34.0 (2.5
Slide 40: Equity and Liabilities
Equity and Liabilities EUR m 31.03.2022 %Δ 31.12.2021 Share capital 39.3 - 39.3 Capital reserve 358.8 - 358.8 Profit-participation rights/hybrid capital 243.0 (19.0)% 300.0 Equity Other reserves 69.0 (25.4)% 92.5 Non-controlling interest 35.7 5.3% 33.9 Total equity 745.8 (9.5)% 824.4 Bonds and bonde
Slide 41: Balanced Maturity Profile as of 31.03.2022
Balanced Maturity Profile as of 31.03.2022 Maturity profile in EUR m 10 127 13 55 6 11 5 31 12 33 8 21 14 9 8 6 6 12 3 2022 2023 2024 2025 2026 from 2027 Term loans Leasing Construction Equipment Short-term project related SSD floating SSD fixed Investor Presentation May 2022 41
Slide 42: Top Order Intakes 2021/2022
Top Order Intakes 2021/2022 • App. Bldg. Gastgebgasse BPL 3, Vienna/AT/64.1m • Design & Build expressway Sibiu – Pitesti, Sec. 4/ RO/311.4m • App. Bldg. FLT Fischereihafen Travemünde/ DE/52.0m • Office Bldg. Sellerstraße, Berlin/DE/65.7m • App. Bldg. Ferdinand’s Garden, Berlin/DE/48.9m • Bayer SOL-1
Slide 43: Coverage
Coverage Institution Analysts Price Target Recommendation Last Update Kepler Cheuvreux Torsten Sauter 13.75 Hold 03.05.2022 Warburg Research Jonas Blum 20.0 Buy 02.05.2022 FMR Research Winfried Becker 19.5 Hold 29.04.2022 Stefan Scharff SRC Research 17.5 Buy 28.04.2022 Christopher Mehl ERSTE Group M
Slide 44: IR Information for PORR AG
IR Information for PORR AG Share Information Financial Calendar Share price1 EUR 12.50 7 June 2022: Record Date for the attendance of the 142nd AGM Market capitalisation EUR 491.0m Official market Vienna Stock Exchange 17 June 2022: 142nd Annual General Meeting Prime Market 23 June 2022: Trade ex-di