Porr Ag · VIE:POS
Porr — Non-Deal Roadshow (August 2023)
44 slides from Porr's roadshow presentation, Aug 29, 2023
Slide 1: Investor Presentation August 2023
Investor Presentation August 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 HY 2023
Investor presentation HY 2023 August 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, market position
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 HY 2023
Investor presentation HY 2023 August 2023 8
Slide 9: HY 2023 highlights
Demand for infrastructure as main growth driver 1 Industrial construction supporting stability in building construction Order book at all-time high of EUR 9 bn (+11.7%) 2 Major civil engineering projects acquired EBT at EUR 27.5m (+24.6%) 3 Increase in profitability despite cost inflation Resilient
Slide 10: EU production in construction and cost pressure
High demand in construction Cost pressure remains on high level EU production in construction Cost indices indexed by Dec. 2021 106 130 indexed by Dec. 2021 104 120 102 110 100 98 100 Dez.21 Jun.22 Dez.22 Jun.23 Dez.21 Jun.22 Dez.22 Jun.23 Civil Engineering Building Construction AT: Residential cons
Slide 11: Order backlog and order intake
Order backlog in EUR m Order intake in EUR m +27% 8,995 +26% 7,848 8,049 3,808 7,080 3,271 3,016 3,046 58% 59% 61% 56% 21% 30% 25% 24% 12% 8% 12% 5% 8% 4% 9% 9% HY 2020 HY 2021 HY 2022 HY 2023 HY 2020 HY 2021 HY 2022 HY 2023 Civil engineering Non-residential construction Civil engineering Non-reside
Slide 12: Major projects: railway, audit office, bridge, power plant
Railway reconstruction Supreme Audit Office Research building Bytom, RO Prag, CZ Vienna, AT Salzbachtal Bridge Power plant conversion Bypass road Wiesbaden, DE Forbach, DE Bihor, RO Investor presentation HY 2023 August 2023 12
Slide 13: Production output and EBT
Production output in EUR m EBT in EUR m EBT margin in % of production output +9.1% +24.6% 3,017 2,766 27.5 2,496 22.1 2,273 52% 11.5 49% 0.8% 0.9% 0.5% 15% 20% -1.2% 16% 11% 9% 9% 9% 2% 6% 2% HY 2020 HY 2021 HY 2022 HY 2023 -26.6 Holding Infra CEE PL DE AT / CH HY 2020 HY 2021 HY 2022 HY 2023 • Stro
Slide 14: Equity and net debt
Equity in EUR m Net debt (+) / Net cash (-) in EUR m Equity ratio in % +6.5% 824 224 IFRS 16 index 799 198 adjustment 790 742 20.3% 19.3% 18.4% 18.5% -65 -59 2021 HY 2022 2022 HY 2023 2021 HY 2022 2022 HY 2023 • Decrease due to dividend payments and • Higher leasing liabilities as a result of share
Slide 15: Investing in E-Mobility, HR Update
Investing in E-Mobility • Austria: > 70 charging points for electric vehicles • Serving passenger-cars and machinery fleet • Ongoing pilot projects with equipment manufacturers HR Update • Stronger focus on Diversity & Inclusion • Employer branding: barrier-free applications • Education and developm
Slide 16: Outlook 2023
Strong market position, diversified portfolio and record order book Production output of EUR 6.5 to 6.7 bn Further increase in earnings Investor presentation HY 2023 August 2023 16
Slide 17: Investor presentation HY 2023
Investor presentation HY 2023 August 2023 17
Slide 18: 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 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 & 3,631m 1,878m • Arge T3 South Airport Vienna / Airport Switzerland +9.1% +12.1% • DC Tower 2 / Residential + Office construction • Südschnellweg expressway Hanover/ Road 1,274m 297m Ger
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 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 HY 2023 August 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 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 29: Occupational Safety, Working Worlds, Compliance
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 HY 2023
Investor presentation HY 2023 August 2023 34
Slide 35: Key earnings figures
Key Earnings Figures EUR m HY 2023 %∆ HY 2022 Production output1 3,017.2 9.1% 2,765.8 Revenue 2,891.1 11.4% 2,595.9 EBT 27.5 24.6% 22.1 Net profit for the period 18.6 19.1% 15.6 Key Assets and Financial Figures EUR m 30.06.2023 %∆ 31.12.2022 Total assets 4,279.7 3.2% 4,146.8 Equity 790.0 -1.1% 798.9
Slide 36: Income statement and key ratios
EUR m HY 2023 HY 2022 ∆ HY 23/21 2022 Production output1 3,017.2 2,765.8 9.1% 6,226.4 Revenue 2,891.1 2,595.9 11.4% 5,786.0 EBITDA 136.7 125.8 8.7% 318.9 in % of Production output 4.5% 4.5% 0.0PP 5.1% EBIT 34.1 32.0 6.4% 120.1 in % of Production output 1.1% 1.2% -0.1PP 1.9% EBT 27.5 22.1 24.6% 110.0
Slide 37: Assets
EUR m 30.06.2023 31.12.2022 ∆ 2023 30.06.2022 Intangible assets 191.1 194.1 -1.5% 186.5 Property, plant and equipment 1,127.3 1,055.3 6.8% 1,040.0 Non-current assets Investment property 34.4 33.9 1.5% 24.4 Shareholdings in companies accounted for 76.7 78.4 -2.2% 82.5 under the equity method Other fi
Slide 38: Liabilities and equity
EUR m 30.06.2023 31.12.2022 ∆ 2023 30.06.2022 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 244.1 247.5 -1.4% 246.5 Other reserves 115.0 119.0 -3.3% 63.0 Non-controlling interest 32.8 34.3 -4.5% 34.4 Total equity 790.0 798.
Slide 39: Cash position and maturity profile
Cash and cash equivalents in EUR m Maturity profile in EUR m 438 462 452 93 407 Early 45 14 redemption 122 137 32 17 3 35 94 3 7 6 6 HY/18 HY/19 HY/20 HY/21 HY/22 HY/23 2023 2024 2025 2026 2027 from 2028 Term loans SSD floating SSD fix • High liquidity reserve at EUR ~800m • Early repayment of bonde
Slide 40: Order intake by quarter
2022 2023 Q3 Q4 Q1 Q2 • Highbridge Horb-Neckartal • BMW Production hall • ams-Osram Fabric halls • Arge H53 Brenner DE/94.8m DE/n.a. Premstätten/AT/49.5m Base tunnel AT/479.6m • Office Building PSE • Expressway Hannover • Arge Arlbergtunnel PL/90.1m DE/234.6m AT/47.9m • ElbX SuedLink tunnel Glücksst
Slide 41: Dividend per share and payout ratio
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 HY 2023 August 2023 41
Slide 42: Ownership structure and free float
Ownership Structure Free Float – Geographical Split 24.4% 36.5% 50.4% 49.6%1 5.4% 6.4% 7.9% 6.6% 1.2% 11.6% 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 5.0% PORR Management and PORR AG (treasu
Slide 43: Analyst coverage and price targets
Institution Analysts Price Target Recommendation Last Update Kepler Cheuvreux Patrick Steiner 15.5 Buy 16.06.2023 Warburg Research Philipp Kaiser 24.0 Buy 01.06.2023 Joh. Berenberg, Thomas Junghanns 19.5 Buy 24.05.2023 Gossler & Co. KG Stefan Scharff SRC Research 19.5 Buy 24.05.2023 Christopher Mehl
Slide 44: Share information, events, IR contact
Share Information1 Upcoming Events Share price EUR 11.50 20 Nov 2023 Interest payment Market capitalisation EUR 451.7m Hybrid Bond 2021 Official market Vienna Stock Exchange 23 Nov 2023 Publication Prime Market Interim Report on the 3rd Quarter 2023 Number of shares 39,278,250 outstanding Ticker sym