Strabag Se · VIE:STR
Strabag — Investor Presentation (December 2023)
62 slides from Strabag's investor presentation, December 2023
Slide 1: Investor Presentation – Work on Progress
INVESTOR PRESENTATION WORK ON PROGRESS STRABAG WORK ON PROGRESS
Slide 2: Disclaimer
Disclaimer This presentation is made by STRABAG SE (the "Company") solely for use at This presentation contains forward-looking statements relating to the investor meetings and is furnished to you solely for your information. business, financial performance and results of the Company and/or the indu
Slide 3: Agenda
Agenda 1 2 3 4 5 6 7 STRABAG Trading Financial Operational Strategy & Outlook 2023 Annex at a Glance Statement Review Review Investment & Share 9M 2023 H1 2023 H1 2023 Proposition 3
Slide 4: STRABAG at a Glance
1 | STRABAG at a Glance
Slide 5: A European key player in construction, innovation & financial strength
FY 2022 | STRABAG at a glance A European key player in construction, innovation & financial strength 17.7 23.7 Output volume (€ bn) Order backlog (€ bn) #2 #1 #1 4.2% ~ 79,000 Market leading positions #1 #1 EBIT margin Employees in core markets #3 #3 #2 31.7% > 2,400 Equity ratio Locations BBB, stab
Slide 6: Consistent execution of strategy drives results
Group strategy „ Consistent execution of strategy drives results Investment Proposition Sustainable Profit Growth 1 with a Reliable Dividend STRABAG SE is a European-based technology group for construction services, Resourcefulness, a leader in innovation and financial strength. Our activities span
Slide 7: Compelling performance in volatile times
FY 2022 | STRABAG at a glance Compelling performance in volatile times (€ mn) 2022 2021 Δ% Output volume Order backlog Contribution by region Output volume 17,735 16,129 10 Germany 47% 47% Order backlog 23,739 22,501 6 EBIT 706 896 -21 Austria 17% 13% EBIT margin (% of revenue) 4.2 5.9 CEE 23% 21% N
Slide 8: Our business spans the entire construction value chain
FY 2022 | Business segments Our business spans the entire construction value chain Share of Share of Germany, Switzerland, Regions/ North + West Group output volume (%) 49 Group order backlog (%) 50 Areas Benelux, Scandinavia, Ground Engineering Austria, Poland, Share of Share of Czech Republic, Slo
Slide 9: Higher order intake in 2022
FY 2022 | Key order intakes Higher order intake in 2022 Headquarters Grünblick Upgrading Volksbank residential Berlin- Raiffeisenbank project Köpenick rail Bayern Mitte station Vienna Ingolstadt Austria Germany Germany € 110 mn € 154 mn € 70 mn 2022-2025 2022-2027 2022-2024 Tunneling Construction Mo
Slide 10: No specific exposure to any large project
Largest projects in progress No specific exposure to any large project 1 Order backlog As % of total Country Project in (€ mn) order backlog United Kingdom HS2 high-speed rail line 1,420 6.0 United Kingdom Woodsmith Project 723 3.1 Germany US hospital, Weilerbach 1 703 3.0 2 Germany Central Business
Slide 11: Trading Statement 9M 2023
2 | Trading Statement 9M 2023
Slide 12: Mixed trends in underlying markets
9M 2023 | Executive summary Mixed trends in underlying markets Infrastructure Building construction Public vs. private customers • Solid business activity • Partly declining trends • Further shift from private to public contracts • Particularly in transportation • Especially in residential infrastru
Slide 13: Strong performance as basis for raised guidance
9M 2023 | Executive summary Strong performance as basis for raised guidance Output volume of € 13.6 bn | +8% vs. 9M 2022 Growth in output was recorded in all operating segments Order backlog of € 24.4 bn | +4% vs. 9M 2022 1.3 times of expected annual output, comfortable basis for 2024 Successful pro
Slide 14: Continued high order backlog of > € 24 bn
9M 2023 | Results Continued high order backlog of > € 24 bn Output volume (€ mn) Contribution by segment (%) Contribution by region (%) 1 5 +8 % 16 North + West 8 Germany 13,642 South + East Austria 11,519 12,645 9M 43 23 9M 48 International + CEE 2023 Special Divisions 2023 Rest of Europe 40 Other
Slide 15: Financial Review H1 2023
3 | Financial Review H1 2023
Slide 16: Strong top line growth continued in Q2
H1 2023 | Results Strong top line growth continued in Q2 Output volume (€ mn) Output volume by region (%) New record for output volume 5 • Ongoing execution of high order backlog 8 17,735 Germany • Largest increases in Germany, Austria, +9% Romania, the United Kingdom and Poland 22 48 Austria 7,588
Slide 17: Earnings plus in a challenging environment
H1 2023 | Results Earnings plus in a challenging environment EBITDA (€ mn) EBIT (€ mn) Net income after minorities (€ mn) 1,257 +8% +37% 706 +83% 472 325 351 87 74 64 40 H1 2022 H1 2023 2022 H1 2022 H1 2023 2022 H1 2022 H1 2023 2022 • Increase of 8% compared to H1 2022 • Depreciation and amortisatio
Slide 18: Financial position remained robust
H1 2023 | Results Financial position remained robust Net debt (+) / Net cash (-) in (€ mn) High net cash position • Net cash position lower vs. year-end due to seasonality effect +29% • Still solid level of customer prepayments, but expected to decrease due to interest -814 rate turnaround -1,147 -1
Slide 19: Cash and cash equivalents of € 2.3 bn
H1 2023 | Results Cash and cash equivalents of € 2.3 bn (€ mn) H1 2023 H1 2022 Δ% Cash – beginning of period 2,702 2,963 -9 Cash flow from earnings 297 252 18 ∆ Working Capital -122 -858 86 Cash flow from operating activities 175 -606 n.m. Cash flow from investing activities -345 -289 -19 Cash flow
Slide 20: Consolidated statement of profit or loss (excerpt)
H1 2023 | Results Consolidated statement of profit or loss (excerpt) (€ mn) H1 2023 H1 2022 Δ% Output volume 8,258.62 7,587.72 9 Revenue 7,684.37 7,246.35 6 Changes in inventories/own work capitalised 66.44 46.07 44 Other operating income 106.06 98.12 8 Construction materials, consumables and servic
Slide 21: Consolidated statement of financial position
H1 2023 | Results Consolidated statement of financial position Assets Equity and liabilities (€ mn) 30.6.2023 31.12.2022 (€ mn) 30.6.2023 31.12.2022 Intangible assets 519 467 Share capital 103 103 Rights from concession arrangements 463 473 Capital reserves 2,086 2,086 Retained earnings and other re
Slide 22: Operational Review H1 2023
4 | Operational Review H1 2023 22 Investor Conference - Zürs 2023
Slide 23: Strong output growth across all segments
H1 2023 | Operating segments Strong output growth across all segments 3,628 63 Share of Output volume (€ mn) EBIT (€ mn) Germany, Switzerland, North + West Group output 44 Benelux, Scandinavia, volume (%) 10,530 21,787 Ground engineering Order backlog (€ mn) Employees (FTE) Regions/Areas 2,786 -16 A
Slide 24: North + West: Substantial earnings improvement
H1 2023 | Operating segments North + West: Substantial earnings improvement Key Indicators Performance H1 2023 (€ mn) H1 2023 H1 2022 Δ% • Output volume up by 7%, by a strong performance in building construction and civil engineering as well as transportation Output volume 3,628 3,394 7 infrastructu
Slide 25: South + East: Order backlog above Group average
H1 2023 | Operating segments South + East: Order backlog above Group average Key Indicators Performance H1 2023 (€ mn) H1 2023 H1 2022 Δ% • Increase of 7% in output volume. Growth was recorded primarily in Austria, Romania and Poland Output volume 2,786 2,612 7 • EBIT was again in negative territory
Slide 26: International + Special Divisions: Strong output growth
H1 2023 | Operating segments International + Special Divisions: Strong output growth Key Indicators Performance H1 2023 (€ mn) H1 2023 H1 2022 Δ% • Output volume +13% due to an acquisition in Germany and completion of major projects in the United Kingdom and Chile Output volume 1,731 1,525 13 • EBIT
Slide 27: Strategy & Investment Proposition
5 | Strategy & Investment Proposition
Slide 28: Consistent execution of strategy drives results
Group strategy „ Consistent execution of strategy drives results Investment Proposition Sustainable Profit Growth 1 with a Reliable Dividend STRABAG SE is a European-based technology group for construction services, Resourcefulness, a leader in innovation and financial strength. Our activities span
Slide 29: Strong track record of sustainable profit growth
1 2 3 4 5 Investment proposition Strong track record of sustainable profit growth EBIT (€ mn) and EBIT margin (%) Sustainable profit growth… • EBIT margin 2022 at 4.2% CAGR +12% EBIT in 2013-22 896 • Fully in line with target: 706 ≥ 4% from 2022 onwards 603 631 558 425 448 • Exceptionally high level
Slide 30: We strive for technology leadership
1 2 3 4 5 Investment proposition We strive for technology leadership Standardisation Digital processes Automation Rethinking construction Examples Examples Examples processes, site operations, and the construction ecosystem… …to transform existing processes and innovations into digital services & bu
Slide 31: Flexible business model proves its worth in volatile times
1 2 3 4 5 Investment proposition Flexible business model proves its worth in volatile times Diversified portfolio balances Subcontracting mix (%) Portfolio mix (%) cyclical/project-driven nature Transportation 51 of construction 7 Infrastructure 9 Building Construction & • Diversified business model
Slide 32: Financial strength as a competitive advantage
1 2 3 4 5 Investment proposition Financial strength as a competitive advantage Net debt (+) / Net cash (-) in (€ mn) Stable net cash position • Substantially increased since 2013 • High advance payments in the past • Working capital expected to increase – -74 -249 due to rising interest rates -449 -
Slide 33: Outlook 2023 & Share
6 | Outlook 2023 & Share Deutsch 33 Investor Conference - Zürs 2023
Slide 34: Guidance for FY 2023 raised
Outlook 2023 Guidance for FY 2023 raised Output volume of ~ € 18.9 bn | before: € 18.6 bn output growth is expected in all operating segments EBIT margin of ≥ 4% confirmed for FY 2023; despite challenging environment Net investments of ≤ € 700 mn Cash flow from investing activities 34
Slide 35: The STRABAG share
STRABAG SE The STRABAG share Shareholder structure Developments following Russia’s invasion of Ukraine (1/2) • Mar. 2022: Core shareholder Haselsteiner family foundation terminates syndicate agreement – 29.5% UNIQA/Raiffeisen with UNIQA Group, Raiffeisen Group and MKAO “Rasperia Trading Limited” – a
Slide 36: Update on sanctioned shareholder Rasperia
STRABAG SE The STRABAG share Update on sanctioned shareholder Rasperia (2/2) • June 2023: The capital measures to reduce the share of MKAO “Rasperia Trading Limited” (Rasperia) – a company controlled by the sanctioned Russian citizen Oleg Deripaska – to below 25% were unanimously adopted by the 19th
Slide 37: STRABAG coverage
STRABAG SE STRABAG coverage Analyst recommendations Consensus Institution Date of research Target Price Recommendation 2023 2024 2025 Erste Group 11 December 2023 € 55.0 Buy Revenue (€ mn) 17,656 17,826 18,820 RBI 16 November 2023 € 51.5 Buy Clean EBIT incl. 745 748 794 Kepler Cheuvreux 16 November
Slide 38: Financial calendar & IR contact
STRABAG SE Financial calendar & IR contact Financial calendar 2024 IR contact Date Event Marco Reiter Head of Investor Relations Thu, 15 February 2024 FY 2023 figures: output volume, order backlog, +43 1 22422-1089 employees and outlook 2024 marco.reiter@strabag.com Thu, 25 April 2024 Annual Report
Slide 39: Annex
7 | Annex
Slide 40: Resilience through diversification and innovation
FY 2022 | Executive summary Resilience through diversification and innovation Excellent performance in 2022 despite softening market dynamics New record output of € 17.7 bn significantly above pre-crisis level and previous record in 2019 Continued high order backlog 6% year-on-year increase – in spi
Slide 41: STRABAG copes well with challenging environment
FY 2022 | Market environment STRABAG copes well with challenging environment Inflation Interest rates Geopolitical tensions STRABAG response STRABAG response STRABAG response • Adjustment of pricing models • Further diversification of business model • Winding-up all activities in Russia by segment
Slide 42: Strategy of vertical integration pays off
FY 2022 | Market environment Strategy of vertical integration pays off Own coverage of material needs STRABAG facilities1 Own dense construction materials network 88% 86% Asphalt mixing plants 277 • Secures availability – especially in times of constrained supply chains Asphalt Cement Concrete mixin
Slide 43: New record for output volume
FY 2022 | Results New record for output volume Output volume (€ mn) Output volume by region (€ mn) New record for output volume • Pre-crisis level surpassed +10% 6 7 • Increase across all operating segments 17,735 15,447 16,129 Germany 47 Austria • Largest increase in Germany, Austria, 23 United Kin
Slide 44: EBIT margin fully in line with target
FY 2022 | Results EBIT margin fully in line with target EBIT (€ mn) and EBIT margin (%) Second-highest EBIT in history • EBIT margin 2022 at 4.2% 896 • Fully in line with target: 706 ≥ 4% from 2022 onwards 603 631 558 425 448 • Exceptionally high level in 2021 – 341 5.9 262 282 positive earnings eff
Slide 45: Solid cash flow development
FY 2022 | Results Solid cash flow development Δ Working capital (€ mn) CFO vs. CFI (€ mn) CFI vs. depreciation (€ mn) 1,280 1,221 813 350 560 544 550 560 551 350 378 350 378 5 -272 2020 2021 2022 2020 2021 2022 2020 2021 2022 CFO CFI CFI Depreciation • Uncharacteristically high advance payments unti
Slide 46: Our business spans the entire construction value chain
FY 2022 | Operating segments Our business spans the entire construction value chain 8,691 6.1 Share of Output volume (€ mn) EBIT margin (%) Germany, Switzerland, North + West Group output 49 Benelux, Scandinavia, volume (%) 11,842 25,693 Ground Engineering Order backlog (€ mn) Employees (FTE) Region
Slide 47: North + West: High EBIT margin maintained
FY 2022 | Operating segments North + West: High EBIT margin maintained Key Indicators Performance 2022 (€ mn) 2022 2021 Δ% • Output volume +10% above prior year Output volume 8,691 7,902 10 • EBIT grew by 11%, maintaining the very good EBIT margin of 6.1%, earnings improvements were seen in the Germ
Slide 48: South + East: Order backlog above Group average
FY 2022 | Operating segments South + East: Order backlog above Group average Key Indicators Performance 2022 (€ mn) 2022 2021 Δ% • Output volume increased significantly by 11% in 2022 Output volume 5,462 4,930 11 • Due to provisions and as a result of strong cost inflation in Southern and Eastern Eu
Slide 49: International + Special Divisions: Fluctuations in project business
FY 2022 | Operating segments International + Special Divisions: Fluctuations in project business Key Indicators Performance 2022 (€ mn) 2022 2021 Δ% • Output volume (+9% vs. 2021), mainly attributable to the ongoing fulfilment of orders in United Kingdom, Chile and the Middle East Output volume 3,44
Slide 50: Consolidated statement of profit or loss (excerpt)
FY 2022 | Results Consolidated statement of profit or loss (excerpt) (€ mn) 2022 2021 Δ% Output volume 17,735.47 16,128.92 10 Revenue 17,025.85 15,298,54 11 Changes in inventories/own work capitalised 11.01 -109.81 n.m. Other operating income 236.76 211.26 12 Construction materials, consumables and
Slide 51: Consolidated statement of financial position
FY 2022 | Results Consolidated statement of financial position Assets Equity and liabilities (€ mn) 2022 2021 (€ mn) 2022 2021 Intangible assets 467 476 Share capital 103 103 Rights from concession arrangements 473 493 Capital reserves 2,086 2,086 Retained earnings and other reserves 1,814 1,859 Pro
Slide 52: Cash and cash equivalents of € 2.7 bn
FY 2022 | Results Cash and cash equivalents of € 2.7 bn (€ mn) 2022 2021 Δ% Cash – beginning of period 2,963 2,857 4 Cash flow from earnings 1,085 1,216 -11 ∆ Working Capital -272 5 n.m. Cash flow from operating activities 813 1.221 -33 Cash flow from investing activities -560 -378 -48 Cash flow fro
Slide 53: Experienced Management Board
Organisation Experienced Management Board Klemens Haselsteiner, CEO • Joined STRABAG in 2011 • Management Board member since 2020 • Born 1980, Education: Economics Christian Harder, CFO • Joined STRABAG in 1994 • Management Board member since 2013 • Born 1968, Education: Business Administration Jörg
Slide 54: Organisational structure – central units
Organisation Organisational structure – central units Chief Executive Officer Operative Segments Central Divisions & Central Staff Divisions Board Divisions Sub-divisions Chief Executive Chief Financial Member Division Subdivision Officer (CEO) Officer (CFO) Manager Manager North Business developmen
Slide 55: Comprehensive country network
Markets Comprehensive country network Integrated model takes advantage of • local management skills • market knowledge • cost and efficiency synergies • risk diversification • data, digital and IT infrastructure Comprehensive country network enables STRABAG to • make more use of technology, data and
Slide 56: Output volume by country
Markets Output volume by country (€ mn) 2018 2019 2020 2021 2022 CAGR1 (%) Germany 7,877 7,819 7,323 7,462 8,347 1 Austria 2,542 2,679 2,460 2,694 2,935 4 Poland 975 1,129 1,183 1,152 1,126 4 Czech Republic 706 783 826 948 1,093 12 Hungary 714 848 671 652 688 -1 United Kingdom2 - 126 226 390 578 66
Slide 57: Market leading positions in core markets
Markets Market leading positions in core markets Germany Poland Slovakia STRABAG 7,462 Budimex 1,720 STRABAG 289 Vinci 3,459 STRABAG 1,152 Doprastav 225 Zech Group 3,306 Porr 760 D4R7 128 Goldbeck 2,961 Erbud 674 Skanska 109 Max Bögl 2,070 Mirbud 545 Eurovia 104 #2 Czech Republic #1 Hungary STRABAG
Slide 58: Market share data 2022
Markets Market share data 2022 Country Construction output (€ mn) STRABAG output (€ mn) Market share (%) Germany 418,691 8,347 2.0 Austria 51,216 2,935 5.7 Poland 57,947 1,126 1.9 Czech Republic 26,268 688 4.2 Hungary 18,274 59 3.8 Slovakia 4,882 315 7.2 Romania 27,251 238 1.2 Croatia 5,190 81 4.6 S
Slide 59: Property and facility services
International + Special Divisions segment > Services Property and facility services Key facts 2022 Strategic rationale: Extending the value chain • € 641 mn Output volume • Offsets seasonal and cyclical factors – contracts of 3-5 years duration • + 10% annual growth rate • Growth opportunities – PL
Slide 60: Real estate development
International + Special Divisions segment > Project development Real estate development Key facts Strategic rationale: 2022 Extending the value chain € 576 mn • Vertical integration of pre- overall construction activities Cologne performance1 H3ö, Germany • Supports core business 650+ construction c
Slide 61: Selected real estate development projects
International + Special Divisions segment > Project development Selected real estate development projects Austria Germany Poland Slovakia DC Waterline, Vienna Alea offices, Dusseldorf Upper one, Warsaw Dúbravke, Bratislava office, living, retail, hotel etc. office building office building apartment
Slide 62: Public-Private Partnerships
International + Special Divisions segment > Concessions Public-Private Partnerships PPP strategy Selected PPP projects Focus • Infrastructure • Large public buildings 566 Country Project Total cost (€ mn) % Share Concession until Status Equity invested A2 in PPP (€ mn) Poland 1,543 10 2037 Operation