Slide 1: STRABAG SE Investor Presentation December 2017
STRABAG SE INVESTOR PRESENTATION DECEMBER 2017
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 Investor Presentation December 2017
Slide 4: STRABAG at a Glance
STRABAG | SOCIETAS EUROPAEA
Slide 5: STRABAG at a Glance
STRABAG AT A GLANCE FACTS & FIGURES MARKETS ● Output volume 2016: € 13.5 billion ● Net income 2016: € 282 million ● 72,000 employees ● > 700 locations in more than 80 countries ● Highly innovative: Central Technical Division with 921 engineers, TPA (Quality & Innovation) with 824 people ● Equity rat
Slide 6: Largest Projects in Progress
LARGEST PROJECTS IN PROGRESS NO SPECIFIC EXPOSURE TO ANY LARGE PROJECT As % of Order total Country Project backlog order in €m backlog Chile Chuquicamata, underground mine 347 2.2 Chile Alto Maipo hydropower complex 316 2.0 Stuttgart 21, underground railway Germany station 276 1.7 Alto Maipo hydropo
Slide 7: Flagship Projects – Examples
FLAGSHIP PROJECTS – EXAMPLES TAMINA BRIDGE – PPP-MOTORWAY N17/N18 SWITZERLAND – IRELAND Building of an arch bridge Financing, planning, building and operating Size: € 22 million (=60% share) Size: € 330 million Project schedule: 2013–2017 Project schedule: 2014–2017 Project scope: 475 m long arch br
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 tunnel, Ein Karem exit shaft Project scope: Construction
Slide 9: Business Segment Contribution 2016
BUSINESS SEGMENT CONTRIBUTION 2016 International + North + West South + East Special Divisions 23% of 46% of output output volume volume 30% of output volume Austria, Switzerland, Hungary, International, Tunnelling, Czech Republic, Slovakia, Property & Facility Services, Germany, Poland, Benelux, Ad
Slide 10: Key Financials
KEY FINANCIALS (€m) 2016 2015 % Output volume 13,491 14,290 -6 Revenue 12,400 13,123 -6 EBITDA 855 816 5 EBITDA adjusted 8271) EBIT 425 341 25 EBIT adjusted 3971) Net income after minorities 278 156 78 Cash flow from operating activities 264 1,240 -79 Cash flow from investing activities -434 -320 -
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: Four European Trends: (1) Urbanisation / Demographics
FOUR EUROPEAN TRENDS: (1) URBANISATION / DEMOGRAPHICS GERMANY: DAILY TRAFFIC LOAD 2030F ● By 2050 66% of the global population will live in cities (today: 54%) – an increase of the urban population by 2.5 billion. Higher need for infrastructure ● McKinsey: USD 57 trillion infrastructure investment n
Slide 14: Example: 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 2005 2012 Source: Eurostat, Wikipedia 14 Investor Presentation December 2017
Slide 15: Four European Trends: (2) Energy / Sustainability
FOUR EUROPEAN TRENDS: (2) ENERGY / SUSTAINABILITY ● Investment of USD 48 trillion needed to just meet the world’s energy needs by 2035, according to McKinsey1) ● Kyoto Protocol: Current commitment period 2013– 2020; 37 countries with binding emissions reduction targets (mostly in Europe) ● EU: Green
Slide 16: Four European Trends: (3) Financial Environment
FOUR 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: Four European Trends: (4) CEE Set for Growth Again
FOUR EUROPEAN TRENDS: (4) CEE SET FOR GROWTH AGAIN GROWTH IN KEY MARKETS 2016–2019F CEE TO OUTPERFORM WESTERN EUROPE 35% 10% 0% 2015 2016 2017f 2018f 2019f 0% Western Czech Slovakia Poland Hungary Europe Republic -10% Constr. Western Europe Constr. Eastern Europe GDP Construction market Czech ● CEE
Slide 18: 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 33% 0% 2013 2014 2015 2016e 2017f Public 67% -10% Residential Other building construction Civil CONSTRUCTION OUTPUT BY COUNTRIES ● Public client: 10% The price is mos
Slide 19: 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 19 Investor Presentation December 2017
Slide 20: The STRABAG Strategy & Investment Proposition
3 THE STRABAG STRATEGY & INVESTMENT PROPOSITION
Slide 21: 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 22: Six Strategic Fields
SIX STRATEGIC FIELDS 22 Investor Presentation December 2017
Slide 23: 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 24: (1) Margin Upside: Targets
(1) MARGIN UPSIDE: TARGETS MID-TERM TARGET OF 3% EBIT MARGIN1) FOCUS ON MARGIN, NOT ON TOP LINE 7% 7% 5% 4% ≥3% 3.2% 0% 2.6% -2% -3% 2.3% 2.1% 1.6% -6% 0% -6% 2012 2013 2014 2015 2016 2017 2012 2013 2014 2015 2016 2017 ● Task Force successfully finished its work in ● Forecast for output volume 2017
Slide 25: (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 26: (2) Flexible Business Model: Resilience in a Volatile Industry
(2) FLEXIBLE BUSINESS MODEL, SELECTIVE DIVERSITY: RESILIENCE IN A VOLATILE INDUSTRY OUTPUT VOLUME (€M) ORDER BACKLOG (€M) 20000 20000 14,043 14,290 13,491 14,403 14,816 13,573 13,566 13,203 13,470 13,135 0 0 2012 2013 2014 2015 2016 2012 2013 2014 2015 2016 EBITDA (€M) AND EBITDA MARGIN (%) EBIT (€M
Slide 27: (2) 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 45% Sub- contractors 55% Own 70% DIVERSIFIED PORTFOLIO BALANCES CYCLICAL/PROJECT-DRIVEN NATURE OF CONSTRUCTION ● Dive
Slide 28: (2) 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 2662) 100% 78% 81% ● Concrete mixing plants 1432) ● Total quarries and gravel pits 1642) ● Cement mixing plants 53) 26% 27% 24% 2
Slide 29: (2) 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 36 36 37 35 34 0 2012 2013 2014 2015 2016 Vocational schools, Germany Motorway A8, Germany TOTAL CONCESSION PPP STRATEGY COUNTRY PROJECT COST (€M) %
Slide 30: (2) Property & Facility Services
(2) FLEXIBLE BUSINESS MODEL, SELECTIVE DIVERSITY: PROPERTY & FACILITY SERVICES TARGET MARKETS KEY FACTS 2016 ● Output 2016: € 1.1 billion ● ~ 10,000 employees (FTE) ● Acquisition of DFS Deutsche Flugsicherung GmbH Portfolio ● Active in 12 countries ● “Top Arbeitgeber in Deutschland” (Top Employer in
Slide 31: (2) BIM.5D Could Be Revolution in Construction
(2) OFFERING TECHNOLOGY AND SUSTAINABILITY: BIM.5D® COULD BE 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 inv
Slide 32: (2) Intelligent Process Engineering
(2) OFFERING TECHNOLOGY AND SUSTAINABILITY: INTELLIGENT PROCESS ENGINEERING ● BIM.5D® also applicable for road construction projects ● Targets: Intelligent and autonomous construction equipment Collection and analysis of all relevant data in one cloud Optimal coordination of all interfaces ● P
Slide 33: (2) 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) 1600 ● Central Technical Division – organisation in Number of employees charge of planning and execution of R&D projects 800 TPA ● Focus on building c
Slide 34: (2) Example on Non Financial Targets – Women
(2) OFFERING TECHNOLOGY AND SUSTAINABILITY: EXAMPLE ON NON FINANCIAL TARGETS – WOMEN GROW SHARE OF WOMEN IN TOTAL EMPLOYMENT AND MANAGEMENT POSITIONS EACH YEAR 16% 14.9% 13.9% 8.4% 8.7% 0% 2016 2015 Women as % of staff Women as % of management 34 Investor Presentation December 2017
Slide 35: (3) 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 July 2017 stable margins in an other
Slide 36: (3) Financial Strength: Diversified Financing
(3) FINANCIAL STRENGTH: DIVERSIFIED FINANCING DEBT REPAYMENT PROFILE1) (€M) DIVERSIFIED MEANS OF FINANCING 400 ● Cash and surety credit lines (31 December 2016): € 7.1 billion (thereof cash credit lines of 200 200 € 0.4 billion) 175 122 19 ● Bond issue: € 200 million, 1.625%, 2015-2022 100 ● € 2.0 b
Slide 37: (4) Attractive Dividends: Consistent Payout Ratio
(4) ATTRACTIVE DIVIDENDS: CONSISTENT PAYOUT RATIO NET INCOME A.M. (€M) AND MARGIN (%) DIVIDEND (€) AND PAYOUT RATIO (%) 300 78% € 2.0 100% 278 156 2.2% 43% 35% 128 41% 40% 114 34% 0.95 61 1.2% 0.65 1.0% 0.50 0.9% 0.45 0.5% 0.20 0 € .0 0% 2012 2013 2014 2015 2016 2012 2013 2014 2015 2016 EARNINGS PER
Slide 38: (4) Attractive Dividends: Total Shareholder Return 2012–2016
(4) ATTRACTIVE DIVIDENDS: TOTAL SHAREHOLDER RETURN 2012–2016 Dividend policy: 30-50% of net income after 50% minorities distributed as a dividend 2.8% Ø dividend yield: 2.7% 2.8% 42.7% 2.9% 2.1% 29.7% 3.0% -2.1% 3.0% 2.8% 7.9% -7.6% -14.7% -14.7% -20% 2012 2013 2014 2015 2016 Return from share price
Slide 39: Financial Performance
; | | | _ @ FINANCIAL , _ PERFORMANCE " Sas ~ SSS | ~s Aa 7 = ~ se . ; ~. a a ft Pal *s _s > = ’ : 1 | Le ' > ce | ; +" iy , ~ 2 Se \ ~ aS | = 7 = {= ‘ 3 : os ™ STRABAG SOCIETAS EUROPAEA
Slide 40: Output Volume Rose by 9%
OUTPUT VOLUME ROSE BY 9% OUTPUT VOLUME (€M) 20000 ● Driven especially by 9% 13,491 German transportation infrastructure business 10,383 9,561 building construction and civil engineering in Austria growth in CEE core markets 0 9M/17 9M/16 2016 ORDER BACKLOG (€M) 7% 20000 ● Large orders from the
Slide 41: Operating Earnings Stable Despite Positive One-Off Last Year
OPERATING EARNINGS STABLE DESPITE POSITIVE ONE- OFF LAST YEAR EBITDA (€M) 1000 8551) ● EBITDA unchanged despite non-operating profit of € 27.81 million which had positively impacted 0% EBITDA and EBIT in 2016 448 4501) ● 6% increase in EBITDA compared to adjusted 9M/16 figure 0 9M/17 9M/16 2016 EBIT
Slide 42: Much More Negative Exchange Rate Differences
MUCH MORE NEGATIVE EXCHANGE RATE DIFFERENCES NET INCOME AFTER MINORITIES (€M) EARNINGS PER SHARE (€) 500 5 278 2.71 -29% -29% 104 1.02 74 0.72 0 0 9M/17 9M/16 2016 9M/17 9M/16 2016 ● Net interest income at € -43 million (after € -13 million in 9M/16), due to negative FX differences ● Effective incom
Slide 43: High Equity Ratio and Net Cash Position
HIGH EQUITY RATIO AND NET CASH POSITION ASSETS(1) LIABILITIES AND EQUITY(1) (€m) 9M/17 2016 (€m) 9M/17 2016 Intangible assets 497 496 Share capital 110 110 PP&E & investment property 1,950 1,936 Capital reserves 2,315 2,315 Associated companies 352 348 Retained earnings 761 761 Other financial asset
Slide 44: All Cash Flows Improved
ALL CASH FLOWS IMPROVED (€m) 9M/17 ∆% 9M/16 Cash – beginning of period 1,998 -27 2,727 Cash flow from earnings 307 -12 350 ∆ Working Capital -392 57 -920 Cash flow from operating activities -85 85 -570 Cash flow from investing activities -242 0 -243 Cash flow from financing activities -199 53 -422 N
Slide 45: North + West Moved into Positive Territory
NORTH + WEST MOVED INTO POSITIVE TERRITORY KEY INDICATORS COMMENTS (€m) 9M/17 Δ% 9M/16 ● Output volume increased by 10% 4,387 Output volume 4,814 10 ● EBIT moved from negative into positive territory, Revenue 4,517 8 4,168 among others thanks to improved project earnings Order backlog 7,697 9 7,083
Slide 46: South + East with High Order Backlog and Earnings Growth
SOUTH + EAST WITH HIGH ORDER BACKLOG AND EARNINGS GROWTH KEY INDICATORS COMMENTS (€m) 9M/17 Δ% 9M/16 ● Output volume climbs by 5% thanks to Austria, Output volume 3,044 5 2,886 Hungary and Slovakia Revenue 2,769 0 2,778 ● EBIT continued to improve due to Hungary and Order backlog 4,238 19 3,548 Russ
Slide 47: International + Special Divisions Affected by Real Estate Development and Chile
INTERNATIONAL + SPECIAL DIVISIONS AFFECTED BY REAL ESTATE DEVELOPMENT AND CHILE KEY INDICATORS COMMENTS (€m) 9M/17 Δ% 9M/16 ● Output volume up by 10% due to large projects in Output volume 2,419 10 2,196 core markets Austria, Germany and the Americas Revenue 2,051 4 1,973 ● EBIT -54%; sale of a real
Slide 48: Highly Seasonal Business
HIGHLY SEASONAL BUSINESS QUARTERLY DEVELOPMENT OF OUTPUT VOLUME AND EBIT (€M) 4,500 4,051 4,129 3,966 3,964 4,034 3,932 3,854 3,884 3,930 3,828 3,736 7.2% 3,436 3,420 6.2% 6.1% 5.4% 5.5% EBIT margin1) 2,468 2,427 2,344 4.9% 4.9% 4.4% 2,257 3.9% 3.2% 3.2% 2.6% 1.7% -6.5% -6.8% -7.6% -7.0% 162 223 172
Slide 49: Output Volume Shrank by 6%
OUTPUT VOLUME SHRANK BY 6% OUTPUT VOLUME (€M) 20000 -6% ● Output volume shrank by 6% to € 13.5 billion 13,491 14,290 ● EU Cohesion Fund regime had ended in 2015, which is why Slovakia, Poland and Czech Republic had posted an exceptionally positive development ● Germany strengthens status as the larg
Slide 50: Order Backlog at Record High
ORDER BACKLOG AT RECORD HIGH ORDER BACKLOG (€M) 20000 ● Record high in Germany as well as on group level 13% 14,816 13,135 ● Growth in Chile, Slovakia, Hungary, Austria ● Declines in Denmark, Russia, Romania 0 2016 2015 ORDER BACKLOG 2016 BY REGION Rest of World 9% Rest of Europe Germany 16% 44% CEE
Slide 51: EBIT Margin at >3%
EBIT MARGIN AT >3% EBITDA (€M) AND EBITDA MARGIN (%) 1) 1000 1% ● EBITDA clean of non-operating non-recurring item: 827 816 € 827.37 million, EBITDA margin 6.7% ● Lower burdens related to large projects 6.7% 6.2% ● Earnings improvements in Austria and Germany 0 2016 2015 EBIT (€M) AND EBIT MARGIN (%
Slide 52: Earnings per Share Significantly Higher
EARNINGS PER SHARE SIGNIFICANTLY HIGHER: ACQUISITION OF ED. ZÜBLIN AG MINORITY INTEREST NET INCOME A. MINORITIES (€M) & MARGIN (%) EARNINGS PER SHARE (€) 300 278 78% 78% 3 2.71 156 1.52 2.2% 1.2% 0 0 2016 2015 2016 2015 ● Negative net interest income greatly reduced thanks to positive foreign curren
Slide 53: Group Income Statement 2016
GROUP INCOME STATEMENT 2016 (€m) 2016 2015 Δ% Output volume 13,491.03 14,289.76 -6 Revenue 12,400.46 13,123.48 -6 Changes in inventories/own work capitalised 55.55 -20.43 n.m. Other operating income 235.83 221.46 6 Construction materials, consumables and services used -7,980.01 -8,619.03 7 Personnel
Slide 54: Group Income Statement 2016 (cont.)
GROUP INCOME STATEMENT 2016 (CONT.) (€m) 2016 2015 Δ% EBITDA 855.18 816.10 5 Margin (%) 6.9 6.2 Margin adjusted (%) 6.71) Depreciation and amortisation -430.27 -475.06 9 EBIT 424.91 341.04 25 EBIT adjusted 397.101) Margin (%) 3.4 2.6 Margin adjusted (%) 3.21) Net interest income -3.78 -24.42 85 Inco
Slide 55: Highest Dividend since IPO: €0.95 per Share
HIGHEST DIVIDEND SINCE IPO: € 0.95 PER SHARE DIVIDEND (€) AND PAYOUT RATIO (%) € ,2 100% ● Dividend per share of € 0.95 proposed (+46%) ● Payout ratio of 35% within predetermined payout range of 30–50% of net income after minorities 41% 40% 43% 35% ● STRABAG has distributed a dividend within the 34%
Slide 56: Equity Ratio Remains High at 31%
EQUITY RATIO REMAINS HIGH AT 31% ASSETS LIABILITIES AND EQUITY (€m) 2016 2015 (€m) 2016 2015 Intangible assets 496 511 Share capital 110 114 PP&E & investment property 1,936 1,895 Capital reserves 2,315 2,311 Associated companies 348 373 Retained earnings 761 614 Other financial assets 167 173 Non-c
Slide 57: Net Cash Position and High Equity Ratio Maintained
NET CASH POSITION AND HIGH EQUITY RATIO MAINTAINED NET DEBT (+)/NET CASH (-) (€M) EQUITY RATIO (%) 1300 0 40 31.2% 30.7% 30.6% 31.0% 31.5% 155 0 -74 -249 -449 -1300 -1,094 0 2012 2013 2014 2015 2016 2012 2013 2014 2015 2016 ● Equity ratio at 31%; target: ≥ 25% ● Still high net cash position: Uncha
Slide 58: Cash and Cash Equivalents of €2.0 Billion
CASH AND CASH EQUIVALENTS OF € 2.0 BILLION (€m) 2016 ∆% 2015 Cash – beginning of period 2,727 43 1,906 Cash flow from earnings 690 5 658 ∆ Working Capital -426 n.m. 582 Cash flow from operating activities 264 -79 1,240 Cash flow from investing activities -434 -36 -320 Cash flow from financing activi
Slide 59: Cash at €2.7 Billion
CASH AT € 2.7 BILLION CASH DEVELOPMENT (€M) COMMENTS 4000 ● Strong working capital reduction of the previous 264 years reversed as expected 2,727 -434 5 0 1,998 ● Higher investments in property, plant and equipment -564 ● Acquisition of Tech Gate Vienna property and Raiffeisen evolution group (now S
Slide 60: Successful Working Capital Management
SUCCESSFUL WORKING CAPITAL MANAGEMENT WORKING CAPITAL PATTERN: CASH OUTFLOWS IN Q1–3; INFLOWS IN Q4 (€M) 1200 1,001 552 494 0 -19 -107 -49 -64 -209 -139 -172 -206 -122 -263 -330 -418 -1200 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2014 2015 2016 2017 COMMENTS ● Working capital outflows generally
Slide 61: CFI Exceeds CFO in 2016
CFI EXCEEDS CFO IN 2016 Δ WORKING CAPITAL (€M) CFO VS. CFI (€M) CFI VS. DEPRECIATION (€M) 700 1500 1000 582 1240 185 805 435 438 475 434 430 0 320 435 434 320 264 -426 0 0 2014 2015 2016 2014 2015 2016 -700 2014 2015 2016 ● Exceptionally high FCF in 2015, situation reversed in 2016 ● Purchase of PP&
Slide 62: North + West Benefits from Germany
NORTH + WEST BENEFITS FROM GERMANY KEY INDICATORS COMMENTS (€m) 2016 Δ% 2015 ● Output volume slightly lower 6,175 Output volume -3 6,368 ● EBIT gained 62%: Improvements in Germany, Revenue 5,802 -2 5,895 absence of past burdens related to a large project in Order backlog 7,030 30 5,397 the Netherlan
Slide 63: South + East: Stable at a High Level
SOUTH + EAST: STABLE AT A HIGH LEVEL KEY INDICATORS COMMENTS (€m) 2016 Δ% 2015 ● Output volume lower by 12%: Decrease especially Output volume 4,001 -12 4,535 pronounced in Slovakia, Hungary and Czech 3,889 Republic Revenue -12 4,412 Order backlog 3,483 0 3,477 ● EBIT down, but segment still contrib
Slide 64: International + Special Divisions: Earnings Plus
INTERNATIONAL + SPECIAL DIVISIONS: EARNINGS PLUS AFTER NUMBER OF CONTRARY EFFECTS KEY INDICATORS COMMENTS (€m) 2016 Δ% 2015 ● Output volume down especially due to Italy Output volume 3,155 -3 3,250 ● EBIT hardly changed in absolute terms – number Revenue 2,681 -4 2,791 of contrary effects related to
Slide 65: Appendix
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Slide 66: Output Volume by Country
OUTPUT VOLUME BY COUNTRY (€m) 2012 2013 2014 2015 2016 CAGR1) (%) Germany 5,779 5,789 6,080 6,256 6,270 2 Austria 1,888 1,982 2,058 2,003 2,099 3 Poland 1,139 787 817 941 774 -9 Czech Republic 646 645 620 765 631 -1 Hungary 393 496 544 594 448 3 Russia 527 561 302 230 139 -28 Slovakia 400 340 427 71
Slide 67: STRABAG Market Share Data
STRABAG MARKET SHARE DATA 2016 (€M) CONSTRUCTION OUTPUT STRABAG OUTPUT MARKET SHARE (%) Germany 310,809 6,270 2.0 Austria 34,948 2,097 6.0 Poland 44,936 774 1.7 Czech Republic 16,450 631 3.8 Hungary 7,480 448 6.0 Russia 113,567 139 0.1 Slovakia 4,615 461 10.0 Romania 46,970 254 0.5 Croatia 2,977 78
Slide 68: 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 2015 (€m) Output volume/Revenue 2015 (€m) 1. STRABAG 6,256 1. STRABAG 2,003 2. Vinci 2,703 2. Porr 1,871 3. Goldbeck 1,8811) 3. Swietelsky 1,247 4. Max Bögl 1,6001) 4. Habau 1,112
Slide 69: Market Leading Position in Central and Eastern European Countries (cont.)
MARKET LEADING POSITION IN CENTRAL AND EASTERN EUROPEAN COUNTRIES (CONT.) SLOVENIA SLOVAKIA Output volume/Revenue 2015 (€m) Output volume/Revenue 2015 (€m) 1. SGP Pomgrad 124 1. STRABAG 716 2. STRABAG 97 2. Doprastav 312 3. GH Holding 92 3. Vahostav 194 4. Gorenjska gradbena druzba 79 4. Eurovia 190
Slide 70: Own Building Materials Network
OWN BUILDING MATERIALS NETWORK 70 Investor Presentation December 2017
Slide 71: 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%) ● STRABAG – as a shareholder in the SPV – 386 410 400 378 370 puts in equity ● Other SPV shareholders are e.g. governments, infrastructure funds and develope
Slide 72: 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 73: Property & Facility Services: Strategic Rationale & Targets
PROPERTY & FACILITY SERVICES: STRATEGIC RATIONALE & TARGETS EXTENDING THE VALUE CHAIN TARGETS FOR 2017 ● Offsets seasonal and cyclicality factors (contracts of 3-5 ● Extend business with new and existing customers years duration) ● Stable output volume of approx. € 1 billion (Deutsche ● One integrat
Slide 74: Stable Shareholder Structure
STABLE SHAREHOLDER STRUCTURE SHAREHOLDER STRUCTURE SINCE 7/2016 COMMENTS ● Core shareholders account for the majority > 80% Treasury shares stake 6.7% Free float Haselsteiner ● Shareholders’ syndicate extended in June 2017 13.5% Family by five years to end of 2022 26.4% ● Flexibility: Strategic deci
Slide 75: Organisation – Central Units
ORGANISATION – CENTRAL UNITS ORGANISATIONAL STRUCTURE CEO CFO Central Divisions & Central Staff Divisions BRVZ1) Zentrale Legal, Contract Accounting, Financing, Taxes, IT, Human BMTI2) TPA3) Resources, Real Estate, Insurance, Project- Technik4) Management Related Risk Management System (RMS)/Organis
Slide 76: The Management Board
THE MANAGEMENT BOARD LONG RECORD OF EXPERIENCE WITHIN STRABAG AND IN THE CONSTRUCTION SECTOR Thomas Birtel, CEO (second left) ● Joined STRABAG in 1996 ● Management Board member since 2006 ● Born 1954 Education: Economics Christian Harder, CFO (second right) ● Joined STRABAG in 1994 ● Management Boar
Slide 77: STRABAG Share Is Covered by Eight Institutions
STRABAG SHARE IS COVERED BY EIGHT INSTITUTIONS COMPANY DATE TITLE TARGET PRICE RATING EBIT-Margenziel von zumindest 3% erscheint gut LBBW 6.12.2017 abgesichert € 36.0 Hold 3Q17: Hoher Rekordauftragsbestand, Ausblick Erste Group 1.12.2017 angehoben € 42.9 Buy Strong fundamentals prevail, TP cut on lo
Slide 78: Germany: Strong Growth in Home Market
GERMANY: STRONG GROWTH IN HOME MARKET GROWTH IN CONSTRUCTION SEGMENTS COMMENTS 10% ● STRABAG is the German market leader with 2.1% market share, 9.1% in road construction ● Persistently good economic activity due to strong increase in private consumption and public investment ● Germany should be abl
Slide 79: Brexit – Implications on STRABAG
BREXIT – IMPLICATIONS ON STRABAG BUDGET EUROPEAN FUNDS1) 2014–2020 (€BN) ● STRABAG – little to no direct exposure to UK ● But Brexit has a big indirect influence: Poland UK payments to EU = payments of 20 smallest Italy countries Romania Germany ● Given the reduced EU budgets as of 2021, funds Hunga
Slide 80: Financial Calendar and IR Contact
FINANCIAL CALENDAR AND IR CONTACT ● Annual Report 2017 27 April 2018 ● Interim Report January-March 2018 30 May 2017 Diana Neumüller-Klein, CFA Head of Investor Relations & Corporate Communications +43 1 22422-1116 diana.klein@strabag.com www.strabag.com 80 Investor Presentation December 2017