Strabag Se · VIE:STR
Strabag — Debt Investor Presentation (January 2015)
37 slides from Strabag's debt investor presentation, January 2015
Slide 1: STRABAG SE Bond Issue 2015 Investor Presentation
STRABAG SE BOND ISSUE 2015 INVESTOR PRESENTATION JANUARY 2015
Slide 2: Disclaimer
DISCLAIMER This presentation is made by STRABAG SE (the "Company") solely for use at underlying such forward-looking statements are free from errors nor do they investor meetings and is furnished to you solely for your information. accept any responsibility for the future accuracy of the opinions ex
Slide 3: Agenda
1 STRABAG AT A GLANCE 2 THE STRABAG 3 FINANCIAL STRATEGY PERFORMANCE 4 APPENDIX Bond Investor Presentation January 2015 Page 3
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 2013: € 13.6 bn ● EBITDA 2013: € 695 m ● Net income after minorities 2013: € 114 m ● 72,000 employees ● Equity ratio: > 30% ● Net cash 2013: € 74 m #1 #2 ● Strong brands: STRABAG & Züblin #2 #1 #4 #2 #1 OUTPUT VOLUME BY REGION (2013) #3 #1
Slide 6: Largest Projects in Progress
LARGEST PROJECTS IN PROGRESS NO SPECIFIC EXPOSURE TO ANY LARGE PROJECT (DEC. 2013) As % of Order total Country Project backlog order in €m backlog ltaly Pedemontana motorway 1,015 7.5 Chile Hydro power plant Alto Maipo 372 2.8 Austria Koralm Tunnel, lot 2 324 2.4 Stuttgart 21,under-ground STEP waste
Slide 7: Flagship Projects – Examples
FLAGSHIP PROJECTS – EXAMPLES PPP-MOTORWAY A8 – EXPRESSWAY S8 – GERMANY POLAND Upgrade and operation of A8 Construction of S8 between from Ulm to Augsburg Walichnowy and Sieradz Południe Size: € 205 m (=50% share) Size: € 254 m Project schedule: 2011–2016 Project schedule: 2012–2014 Project scope: up
Slide 8: Flagship Projects – International
FLAGSHIP PROJECTS – INTERNATIONAL HYDROELECTRIC POWER CONTAINER PORT – PLANT – CHILE MAURITIUS Size: € 36 m Size: € 45 m (=50% share) Project schedule: 2014–2017 Project schedule: 2014–2016 Project scope: all earth and Project scope: new berthing concrete works for the intake quay, quay facilities,
Slide 9: Business Segment Contribution 2013
BUSINESS SEGMENT CONTRIBUTION 2013 International + North + West South + East Special Divisions 21% of 44% of output output volume volume 34% of output volume Austria, Switzerland, Hungary, International / Tunnelling, Czech Republic, Slovakia, Construction Materials (except Germany, Poland, Benelux,
Slide 10: Key Financials
KEY FINANCIALS (€m) 9M/2014 9M/2013 ∆% 2013 2012 ∆% Output volume 9,712 9,609 1 13,573 14,043 -3 Revenue 8,892 8,806 1 12,476 12,983 -4 EBITDA 350 329 6 695 608 14 EBIT 64 40 62 262 207 26 Net income after minorities 14 -2 n.m. 114 61 87 Cash flow from operating activities -109 -117 7 694 269 158 Ca
Slide 11: Stable Shareholder Structure
STABLE SHAREHOLDER STRUCTURE SHAREHOLDER STRUCTURE 7/2014 COMMENTS Treasury ● Core shareholders account for the majority 77% shares Haselsteiner 10.0% Family stake 25.5% ● Flexibility: Strategic decisions can be taken and Free float 13.0% implemented very fast. ● Share buyback programme July 2011–Ma
Slide 12: The STRABAG Strategy
2 THE STRABAG STRATEGY
Slide 13: 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 14: The STRABAG Strategy
THE STRABAG STRATEGY (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 − Strategic prior
Slide 15: (1) Margin Upside: Targets
(1) MARGIN UPSIDE: TARGETS MID-TERM TARGET OF 3% EBIT MARGIN TOP-LINE GROWTH AS OF 2016 EXPECTED 12% 4% 12% 3.0% 2.3% 2.4% 2.4% 2.1% -2% -2% -3% 1.6% -5% 0% -5% 2009 2010 2011 2012 2013 2016 2009 2010 2011 2012 2013 ● Task Force ● Output volume 2014e: € 13.6 bn (stable vs. 2013) − Streamline overhea
Slide 16: (1) Margin Upside: Risk Management
(1) MARGIN UPSIDE: RISK MANAGEMENT RISK MANAGEMENT INSTRUMENTS TYPES OF CONTRACTS ● Four-eyes-principle ● Joint Venture with the client ● Contract Management (most risks occur prior to ● Cost + fee the signature of the contract) ● Guaranteed maximum price ● Internal price committees (including a STR
Slide 17: (2) Flexible Business Model: Resilience Over a Volatile Period
(2) FLEXIBLE BUSINESS MODEL, SELECTIVE DIVERSITY: RESILIENCE OVER A VOLATILE PERIOD OUTPUT VOLUME (€M) ORDER BACKLOG (€M) 20000 -3% 20000 2% 14,326 14,043 14,739 13,573 13,968 13,354 13,203 13,470 13,021 12,777 0 0 2009 2010 2011 2012 2013 2009 2010 2011 2012 2013 EBITDA (€M) AND EBITDA MARGIN (%) E
Slide 18: (2) Subcontracting and Portfolio Mix
(2) FLEXIBLE BUSINESS MODEL, SELECTIVE DIVERSITY: SUBCONTRACTING AND PORTFOLIO MIX SUBCONTR. BUILDING & CIVIL ENGINEERING SUBC. TRANSPORTATION INFRASTRUCTURE Sub- Own contractors 30% 30% Sub- Own contractors 70% 70% DIVERSIFIED PORTFOLIO BALANCES CYCLICAL/PROJECT-DRIVEN NATURE OF CONSTRUCTION ● Dive
Slide 19: (2) Own Dense Construction Materials Network
(2) FLEXIBLE BUSINESS MODEL, SELECTIVE DIVERSITY: OWN DENSE CONSTRUCTION MATERIALS NETWORK STRABAG FACILITIES(1) OWN COVERAGE OF MATERIAL NEEDS (%) ● Asphalt mixing plants 301(2) 100% 84% 83% ● Concrete mixing plants 165(2) ● Total quarries and gravel pits 178(2) ● Cement mixing plants 6(3) 29% 28%
Slide 20: (2) Steady Income Through Concession Business
(2) FLEXIBLE BUSINESS MODEL, SELECTIVE DIVERSITY: STEADY INCOME THROUGH CONCESSION BUSINESS NUMBER OF STRABAG’S PPP(1) PROJECTS SELECTED PPP PROJECTS 40 35 36 36 33 29 0 2009 2010 2011 2012 2013 Vocational schools, Germany Motorway A8, Germany TOTAL CONCESSION PPP STRATEGY COUNTRY PROJECT COST (€M)
Slide 21: (2) Property & Facility Services
(2) FLEXIBLE BUSINESS MODEL, SELECTIVE DIVERSITY: PROPERTY & FACILITY SERVICES TARGET MARKETS KEY FACTS 2013 ● Output 2013: € 955 m ● ~ 10,700 employees ● ~ 30 m m² managed area ● ~ 56,800 objects in portfolio(1) ● Active in 12 countries ● „Top Arbeitgeber in Deutschland 2014“ (Top Employer in Germa
Slide 22: (2) Offering Technology and Sustainability: Central Technical Division / TPA
(2) OFFERING TECHNOLOGY AND SUSTAINABILITY: CASE STUDY – CENTRAL TECHNICAL DIVISION / TPA STRABAG AND PEERS: R&D/TECHNICAL DIVISION STAFF HEADCOUNT 1600 1700 ● Central Technical Division – organisation in Number of employees charge of planning and execution of R&D projects 900 ● Focus on building co
Slide 23: (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 confirmed investment grade rating BBB-, stable outlook, in August 2014 RATING − vertical integration and strategic access to construction mat
Slide 24: (3) Financial Strength: Diversified Financing
(3) FINANCIAL STRENGTH: DIVERSIFIED FINANCING DEBT REPAYMENT PROFILE (€M) DIVERSIFIED MEANS OF FINANCING 400 ● Cash and surety credit lines (31 Dec. 2013): € 6.7 bn (thereof cash credit lines of 200.0 € 0.6 bn) 175.0 100.0 116.5 23.5 ● Bond issues outstanding: 7.5 100.0 − € 200 m, 3.00%, 2013–2020 0
Slide 25: Financial Performance
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Slide 26: Seasonal Business
SEASONAL BUSINESS QUARTERLY DEVELOPMENT OF OUTPUT VOLUME AND EBIT (€M) 4500 4,169 4,020 4,075 3,932 3,966 3,964 3,932 3,863 3,827 3,774 3,680 3,508 3,436 6.2% EBIT margin(1) 5.6% 5.3% 2,309 2,263 2,344 2,135 5.0% 4.9% 4.7% 4.4% 4.4% 3.2% 2.9% 1.6% 1.7% -0.1% 203 191 -7.5% -7.6% 205 -8.6% 162 222 172
Slide 27: Order Backlog +10%, Stable Output Volume
ORDER BACKLOG + 10 %, STABLE OUTPUT VOLUME OUTPUT VOLUME (€M) 20000 ● Favourable weather conditions in Germany 1% 13,573 ● Several other markets down slightly 9,712 9,609 0 9M/14 9M/13 2013 ORDER BACKLOG (€M) 20000 10% ● New industrial construction projects in Russia 15,400 13,999 13,470 ● Large ord
Slide 28: Double-Digit Growth in EBIT
DOUBLE-DIGIT GROWTH IN EBIT EBITDA (€M) 750 695 ● Efficiency gains, among others, resulted in an 6% increase in EBITDA by 6 % 350 329 9M/14 9M/13 2013 -150 EBIT (€M) 450 ● Depreciation and amortisation at about last year’s 62% 262 level 64 40 0 9M/14 9M/13 2013 -450 Bond Investor Presentation Januar
Slide 29: Equity Ratio Remains High at More Than 30%
EQUITY RATIO REMAINS HIGH AT MORE THAN 30% ASSETS(1) LIABILITIES AND EQUITY(1) (€m) 9M/14 2013 (€m) 9M/14 2013 Intangible assets 500 502 Share capital 114 114 PP&E & investment property 2,098 2,183 Capital reserves 2,311 2,311 Associated companies 365 372 Retained earnings 429 492 Other financial as
Slide 30: Higher CFI Due to Acquisition of DIW and Purchase of Financial Assets
HIGHER CFI DUE TO ACQUISITION OF DIW AND PURCHASE OF FINANCIAL ASSETS (€m) 9M/14 ∆% 9M/13 Cash – beginning of period 1,685 25 1,351 Cash flow from earnings 258 4 248 ∆ Working Capital -367 -1 -365 Cash flow from operating activities -109 7 -117 Cash flow from investing activities -381 -48 -257 Cash
Slide 31: Appendix
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Slide 32: Output Volume by Country
OUTPUT VOLUME BY COUNTRY (€m) 2009 2010 2011 2012 2013 CAGR(1) (%) Germany 5,380 5,051 5,609 5,779 5,789 2 Austria 1,981 1,907 1,985 1,888 1,982 0 Poland 993 1,352 1,719 1,139 787 -6 Czech Republic 786 867 769 646 645 -5 RANC(2) 282 351 487 527 561 19 Scandinavia 199 248 512 579 510 26 Hungary 832 5
Slide 33: Earnings per Share Moved into Positive Territory
EARNINGS PER SHARE MOVED INTO POSITIVE TERRITORY NET INCOME AFTER MINORITIES (€M) EARNINGS PER SHARE (€) 200 2 114 1.11 n.m. n.m. 14 0.14 -2 -0.02 9M/14 9M/13 2013 9M/14 9M/13 2013 -200 -2 ● Net interest income slipped from € -19 million to € -25 million ● Profit of € 6 million attributable to third
Slide 34: STRABAG Market Share Data
STRABAG MARKET SHARE DATA 2012 (€M) CONSTRUCTION OUTPUT STRABAG OUTPUT MARKET SHARE (%) Germany 275,506 5,779 2.1 Austria 32,586 1,888 5.8 Hungary 7,410 393 5.3 Czech Republic 17,448 646 3.7 Poland 45,980 1,139 2.5 Slovakia 4,595 400 8.7 Switzerland 52,384 425 0.8 Benelux 101,377 456 0.4 Romania 17,
Slide 35: 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 36: Financial Calendar and IR Contact
FINANCIAL CALENDAR AND IR CONTACT ● Full-year results 2014 29 April 2015 ● Interim Report January–March 2015 29 May 2015 ● Semi-Annual Report 2015 31 August 2015 ● Interim Report January–September 2015 30 November 2015 Diana Neumüller-Klein, CFA Head of Investor Relations & Corporate Communications
Slide 37: STRABAG SE Bond Issue 2015 Investor Presentation
STRABAG SE BOND ISSUE 2015 INVESTOR PRESENTATION JANUARY 2015