Slide 1: STRABAG SE FY 2016 Results
STRABAG SE FY 2016 RESULTS 27 APRIL 2017
Slide 2: Disclaimer
DISCLAIMER This presentation is made by STRABAG SE (the "Company") solely for This presentation contains forward-looking statements relating to the use at investor meetings and is furnished to you solely for your business, financial performance and results of the Company and/or the information. indu
Slide 3: 2016: Mid-term margin target reached
2016: MID-TERM MARGIN TARGET REACHED Target 2016 Output volume € 14.0 billion € 13.5 billion ≥ € 390 million € 425 million/ EBIT (2015: € 341 million) € 397 million1) 3% until 2016 EBIT margin 3.4%/3.2%1) (2015: 2.6%) Equity ratio ≥ 25% 31.5% 30–50% of net income 35%, € 0.95 Dividend after minoritie
Slide 4: Output volume shrank by 6%
OUTPUT VOLUME SHRANK BY 6% OUTPUT VOLUME (€M) 20,000 -6% ● Output volume shrank by 6% to € 13.5 billion 14,290 ● EU Cohesion Fund regime had ended in 2015, 13,491 which is why Slovakia, Poland and Czech Republic had posted an exceptionally positive development ● Germany strengthens status as the lar
Slide 5: Order backlog at record high
ORDER BACKLOG AT RECORD HIGH ORDER BACKLOG (€M) 20,000 ● 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% CE
Slide 6: EBIT margin at >3%
EBIT MARGIN AT >3% EBITDA (€M) AND EBITDA MARGIN (%) 1,000 5% 855 ● EBITDA clean of non-operating non-recurring item: 816 € 827.37 million, EBITDA margin 6.7% ● Lower burdens related to large projects 6.9% 6.2% ● Earnings improvements in Austria and Germany 0 2016 2015 EBIT (€M) AND EBIT MARGIN (%)
Slide 7: Earnings per share significantly higher: acquisition of Ed. Züblin AG minority interest
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 8: 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% 34% ● STRABAG has distributed a dividend within the 0
Slide 9: Net cash position and high equity ratio maintained
NET CASH POSITION AND HIGH EQUITY RATIO MAINTAINED NET DEBT (+)/NET CASH (-) (€M) EQUITY RATIO (%) 1,300 0 40 31.2% 30.7% 30.6% 31.0% 31.5% 155 0 -74 -249 -449 -1,300 -1,094 0 2012 2013 2014 2015 2016 2012 2013 2014 2015 2016 ● Equity ratio at 31%; target: ≥ 25% ● Still high net cash position: − Unc
Slide 10: 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 11: CFI exceeds CFO this time
CFI EXCEEDS CFO THIS TIME ∆ WORKING CAPITAL (€M) CFO VS. CFI (€M) CFI VS. DEPRECIATION (€M) 700 1,500 1,000 582 1,240 185 805 435 438 475 434 430 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 o
Slide 12: North + West benefits from Germany
NORTH + WEST BENEFITS FROM GERMANY KEY INDICATORS COMMENTS (€m) 2016 ∆% 2015 ● Output volume slightly lower Output volume 6,175 -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 13: South + East: stable at a high level
SOUTH + EAST: STABLE AT A HIGH LEVEL KEY INDICATORS COMMENTS (€m) 2016 ∆% 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 14: International + Special Divisions: earnings plus after number of contrary effects
INTERNATIONAL + SPECIAL DIVISIONS: EARNINGS PLUS AFTER NUMBER OF CONTRARY EFFECTS KEY INDICATORS COMMENTS (€m) 2016 ∆% 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 15: 2016: Earnings improved – dividend strongly increased
2016: EARNINGS IMPROVED – DIVIDEND STRONGLY INCREASED ● Output volume down by 6% ● Order backlog on a record high of € 14.8 billion ● Margin target of 3% surpassed ● Dividend: Increase of 46% to € 0.95 per share proposed ● Financially strong group − Still net cash position − Equity ratio maintained
Slide 16: 2017: Output volume somewhat higher, focus kept on margin
2017: WHILE OUTPUT VOLUME SHOULD BE SOMEWHAT HIGHER, FOCUS KEPT ON MARGIN ● Output volume 2017 of ≥ 14.0 billion forecasted (≥ +4%) ● EBIT margin 2017 targeted at ≥ 3% ● Squeeze-out STRABAG AG, Cologne ● Push digitalisation of the construction process: e.g. BIM.5D® FY 2016, April 2017 Page 16
Slide 17: Appendix
e | A \ APPENDIX N —_, > STRABAG SOCIETAS EUROPAEA
Slide 18: Flexible business model, selective diversity: resilience in a volatile industry
FLEXIBLE BUSINESS MODEL, SELECTIVE DIVERSITY: RESILIENCE IN A VOLATILE INDUSTRY OUTPUT VOLUME (€M) ORDER BACKLOG (€M) 20,000 20,000 14,043 14,290 14,403 14,816 13,573 13,566 13,491 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 19: Equity ratio remains high at 31%
EQUITY RATIO REMAINS HIGH AT 31% ASSETS(1) LIABILITIES AND EQUITY(1) (€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
Slide 20: Group income statement 2016
GROUP INCOME STATEMENT 2016 (€m) 2016 2015 ∆% 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 21: Group income statement 2016 (cont.)
GROUP INCOME STATEMENT 2016 (CONT.) (€m) 2016 2015 ∆% EBITDA 855.181) 816.10 5 Margin (%) 6.9 6.2 Depreciation and amortisation -430.27 -475.06 9 EBIT 424.911) 341.04 25 Margin (%) 3.4 2.6 Net interest income -3.78 -24.42 85 Income tax expense -139.13 -134.13 -4 Net income 282.00 182.49 55 Attributa
Slide 22: STRABAG SE FY 2016 Results – Your questions, please
STRABAG SE FY 2016 RESULTS YOUR QUESTIONS, PLEASE 27 APRIL 2017