Porr Ag · VIE:POS
Porr — Q1-3 2024 Earnings Presentation
42 slides from Porr's earnings presentation, Nov 21, 2024
Slide 1: Home of Construction – Investor Presentation Q1-3 Results 2024
HOME OF CONSTRUCTION Investor Presentation: Q1-3 Results 2024 November 2024
Slide 2: Disclaimer
DISCLAIMER • This presentation was prepared by PORR AG (the "Company") solely for • This presentation contains forward-looking statements relating to the use at investors’ meetings and is provided solely for informational business, financial performance and results of the Company and/or the purposes
Slide 3: PORR at a Glance
1 PORR at a Glance Investor presentation: Q1-3 Results 2024 27.11.2024 I 3
Slide 4: PORR in Brief
PORR IN BRIEF ONE-STOP SHOP BU SIGN ILD E D OUR USP #3 VAT E D E MOL #3 Full-Service #6 Provider NO IS H RE #2 OPERATE #1 #7 Data as per 31.12.2023 #5 ~21,000 Staff members EUR 8.5 bn Order backlog EUR 6.6 bn Production output EUR 130.7m Earnings before tax (EBT) Home markets Project markets 2.3% EB
Slide 5: The 4 D's of PORR
THE 4 D‘S OF PORR DEMAND IN INFRASTRUCTURE AND BUILDINGS Deglobalisation Decarbonisation Digitalisation Demographic change Resilience & +1.5°C max. & Artificial intelligence & Urbanisation & regionalisation climate neutrality digital twins ageing society Nearshoring and reshoring to Energy transform
Slide 6: Focus on Intelligent Growth with Green and Lean
FOCUS ON INTELLIGENT GROWTH WITH GREEN AND LEAN Intelligent Growth Green and Lean Company Staff LEAN ESG Best in Class: In construction We live our PORR Principles Design-build contractor – one- Clear commitment to and technologies stop shop for every process ecological, environmentally- friendly co
Slide 7: Facts & Figures Q1-3 Results 2024
2 Facts & Figures Q1-3 Results 2024 Investor presentation: Q1-3 Results 2024 27.11.2024 I 7
Slide 8: Q1-3/24 at a Glance
Q1-3/24 AT A GLANCE 1 Surpassing the dip Running on full capacity 4 Stable balance sheet Equity ratio at 19.5% 2 Selective acquisition Heavy pipeline in PL & CEE 5 Solid net debt development Operational reduction of -8.2% 3 Performance further improved +17.8% in EBIT to EUR 91.9m 6 Outlook confirmed
Slide 9: Construction at Turning Point
CONSTRUCTION AT TURNING POINT FURTHER MOMENTUM COMING FROM INTEREST CUTS Re-start of industry with major public support Long-term drivers of demand across all major markets 5.7% ▪ EUR 2.5 bn residential construction Annual growth rates in Annual growth rates in 3.8% stimulus programme Euroconstruct-
Slide 10: Strong Order Book
STRONG ORDER BOOK VISIBILITY FOR >1 YEAR Order backlog (in EUR m) 8,701 8,198 7,778 7,863 40% 39% 15% 15% 19% 18% 9% 9% 3% 13% 1% 17% C+ / Prime Segment Q1-3/21 Q1-3/22 Q1-3/23 Q1-3/24 Top 10 % der Branche Holding Infra CEE PL DE AT / CH ▪ Focus on working-off existing major orders with high capacit
Slide 11: Solid Order Intakes
SOLID ORDER INTAKES SELECTIVE ACQUISITION Order intake (in EUR m) 5,298 4,833 4,617 4,773 55% 55% 13% 12% 8% 1,023m 151m 18% 10% INFRA 4% 10% INFRA 3% 11% 1% C+ / Prime Segment Q1-3/21 Q1-3/22 Q1-3/23 Q1-3/24 Top 10 % der Branche Holding Infra CEE PL DE AT / CH ▪ +3.7% order intake in Q3/24 vs. Q3/2
Slide 12: Top Order Intakes 2023/24
TOP ORDER INTAKES 2023/24 Civil engineering Other Non-residential construction Residential construction Q4/23 Q1/24 Q2/24 Q3/24 Elisabeth-Selbert-Haus Waste to Energy plant Data center TB1 - Tramvay Bucuresti office building Gorlice / PL / 95.8m DE / n.a. Lot 1 Berlin / DE / 88.7m Bukarest / RO / 14
Slide 13: Performance Improved Further
PERFORMANCE IMPROVED FURTHER SOLID INCREASE ON TOP-LINE Production output per segment (in EUR m) EBIT (in EUR m) EBIT (in % of revenue) CAGR: +6.7% 4,801 5,020 91.9 4,525 4,134 78.0 71.0 51% 2.0% 55.8 52% 1.7% 1.7% 14% 14% 15% 1.5% 13% 9% 12% 2% 9% 1% 7% Q1-3/21 Q1-3/22 Q1-3/23 Q1-3/24 Q1-3/21 Q1-3/
Slide 14: Input Costs Remaining Stable
INPUT COSTS REMAINING STABLE ABSOLUTE DECREASE IN MATERIAL EXPENSES Stagnating cost levels PORR‘s cost ratios in % of revenue 140 115 Indexed by Dec.22 130 Indexed per Q4/22 110 120 24% 105 110 47% 100 100 90 95 80 21% 90 70 Dez.22 Jun.23 Dez.23 Jun.24 Dez.22 Jun.23 Dez.23 Jun.24 AT: Road constructi
Slide 15: Stable Equity
STABLE EQUITY HYBRID REDUCTION Equity (in EUR m) and equity ratio (in %) 860 836 799 810 29% Hybrid share: 25% 31% 31% 20.8% 19.3% 19.4% 19.5% C+ / Prime Segment Top 10 % der Branche 2022 Q1-3/23 2023 Q1-3/24 ▪ 3.3% y-o-y increase in equity, despite redemption of profit participation capital of EUR
Slide 16: Continued Gross Debt Reduction
CONTINUED GROSS DEBT REDUCTION SOLID NET DEBT DEVELOPMENT Gross debt (in EUR m) Net debt (in EUR m) 734 695 336 168 One-offs: 590 585 237 118.8m 257 255 238 567 217 438 335 347 Q3/21 Q3/22 Q3/23 Q3/24 -59 -40 IFRS 16 - long-term office rentals 2022 2023 Q1-3/23 Q1-3/24 ▪ Gross debt further optimised
Slide 17: Comfortable Liquidity Cushion
COMFORTABLE LIQUIDITY CUSHION NO FURTHER NEED FOR REFINANCE Liquidity (in EUR m) Maturity profile of fiancial liabilities1 (in EUR m) 759 722 716 680 5 293 337 368 83 431 9 32 10 466 28 11 379 354 1 6 4 3 8 249 2024 2025 2026 2027 2028 >2028 Q1-3/21 Q1-3/22 Q1-3/23 Q1-3/24 Σ 1 6 45 3 115 28 Cash and
Slide 18: Outlook 2024
OUTLOOK 2024 IN DETAIL Stable order backlog Output: EUR 6.7-6.8 bn Revenue: EUR 6,150-6,250m EBIT: EUR 150-160m Investor presentation: Q1-3 Results 2024 27.11.2024 I 18
Slide 19: Strategy: Intelligent Growth with Green and Lean
3 Strategy Intelligent Growth with Green and Lean Investor presentation: Q1-3 Results 2024 27.11.2024 I 19
Slide 20: PORR 2025 on Track
PORR 2025 ON TRACK IMPORTANT MILESTONES IN FUTURE PROGRAMME REACHED Milestones in the first half of 2024 Measures 2025 Markets ▪ Promote sustainable construction ▪ Record output: EUR 3,116m ▪ Extend value chain and permanent business ▪ Selective acquisitions for targeted increase ▪ Optimise portfoli
Slide 21: Minor and Selective Acquisitions
MINOR AND SELECTIVE ACQUISITIONS DEEPEN VALUE CHAIN AND ENHANCE PERMANENT BUSINESS Gravel Ressources: Pannonia Group Local Footprint: Waggershauser Group Parndorf / Kirchheim Markgrafneusiedl unter Teck Germany Austria ▪ About 11m tonnes of gravel ressources secure ▪ 140 employees, EUR 25m of output
Slide 22: Green: Holistically Sustainable
GREEN HOLISTICALLY SUSTAINABLE Taking responsibility. Becoming market leader in circular construction. Focus Added value ▪ Decarbonisation ▪ Saving energy & resources ▪ Circular economy & habitats ▪ Life-cycle thinking in ▪ Occupational health & safety project management ▪ Working worlds ▪ Best Plac
Slide 23: ESG Ratings
ESG RATINGS BEST IN CLASS B C+ AA Bronze Climate Change & Water Prime Segment Best in industry Top 17 % of construction industry Investor presentation: Q1-3 Results 2024 27.11.2024 I 23
Slide 24: Insights into ESG@PORR
INSIGHTS INTO ESG@PORR SELECTED KPIS PART 1 Decarbonisation Occupational Safety Compliance Intensity of GHG emissions Work-related injuries* Anti-corruption training (Scope 1+2 in t CO2e) (per 1 million hours worked) (number of employees) 0.034 15.3 15.7 15.3 3,965 0.032 0.033 3,158 0.028 13.5 1,921
Slide 25: Insights into ESG@PORR
INSIGHTS INTO ESG@PORR SELECTED KPIS PART 2 Circular Economy Habitats Working Worlds Recycled materials used Total water consumption Share of female staff (tonnes) (Tm³) (in %) 109,515 380 104,841 93,200 16.1% 84,761 15.8% 15.8% 240 15.1% 218 171 2020 2021 2022 2023 2020 2021 2022 2023 2020 2021 202
Slide 26: PV Rollout
PV ROLLOUT KICK-OFF IN 2023 Hard facts for PORR … ▪ >30 rooftop systems until 2025 ▪ 5 free area locations on land and water until 2026 ▪ Power output potential: 21,800 kwP C+ / Prime Segment Top 10 % der Branche … strong opportunities for the environment. ▪ Combined utilisation of different renewab
Slide 27: Building Information Modeling and Working Partnerships
AND WORKING PARTNERSHIPS Team: Collaboration, communication, identification, training, culture Standards: Technology: Building BIM standards, project guidlines, Information data management/ formats/ sharing, management Modeling soft- & hardware policies Processes: Planning, calculation, construction
Slide 28: LEAN for Maximum Efficiency
LEAN FOR MAXIMUM EFFICIENCY LEAN LEAN Management Design & Engineering … understand the value … efficient project chain, streamline the planning in coordination process with contractors LEAN@PORR: Mindset Planning Reliability >66 Certified LEAN leaders Rollout completion C+ / Prime Segment >19 LEAN e
Slide 29: Financial Performance
4 Financial Performance The figures have been rounded off using the compensated summation method. Absolute changes are calculated using the rounded values, relative changes (in percent) are derived from the non-rounded values. Investor presentation: Q1-3 Results 2024 27.11.2024 I 29
Slide 30: Earnings and Revenue HY/24 per Segment
EARNINGS AND REVENUE HY/24 PER SEGMENT IN EUR M PL DE INFRA Revenue EBIT Revenue EBIT Revenue EBIT 463 8.3 158 -2.2 457 2.7 Poland -6.0% +23% -12% <-100% -5.1% >+100% Germany Czech Republic Slovakia CEE* Revenue EBIT Austria AT / CH 388 11.4 Switzerland Revenue EBIT +41% >+100% 1,388 34.0 Romania -0
Slide 31: Segment Reporting: Resilient Order Book Q1-3/2024
SEGMENT REPORTING RESILIENT ORDER BOOK IN Q1-3/2024 AT /CH DE PL CEE INFRA Order backlog Change in % in EUR m 3,220 1,203 1,514 759 1,413 -2.6% -8.8% +17.9% -20.1% -18.5% Order intake Change in % in EUR m 2,608 567 869 530 151 5.3% -7.9% +54.3% -3.9% -85.2% ▪ BMW production hall ▪ Data Center Raunhe
Slide 32: Project Portfolio in Regions and Sizes Q1-3/2024
PROJECT PORFOLIO IN REGIONS AND SIZES Q1-3/2024 DIVERSIFICATION AS SUCCESS FACTOR Production output per country (EURm in %) Number of projects per Share of production output project volume (#)1 per volume class (in %) 8% 2% >100m 43 25% RO Project & other markets 50-100m 86 18% 6% CZ & SK 20-50m 192
Slide 33: Key Financials at a Glance
KEY FINANCIALS AT A GLANCE Operating data in EUR m Q1-3/2024 Change Q1-3/2023 2023 Production output1 5,020.3 4.6% 4,800.8 6,577.2 Revenue 4,608.9 3.3% 4,460.1 6,048.5 EBIT 91.9 17.8% 78.0 140.3 EBT 78.6 15.6% 68.0 130.7 Net profit for the period 60.8 22.5% 49.7 95.0 Earnings per share (in EUR) 1.18
Slide 34: Consolidated Income Statement
CONSOLIDATED INCOME STATEMENT In EUR m Q1-3/2024 Change Q1-3/2023 2023 Production output1 5,020.3 4.6% 4,800.8 6,577.2 Revenue 4,608.9 3.3% 4,460.1 6,048.5 EBITDA 249.7 8.8% 229.5 344.3 in % of production output 5.0% 0.2 PP 4.8% 5.2% in % of revenue 5.4% 0.3 PP 5.1% 5.7% EBIT 91.9 17.8% 78.0 140.3 i
Slide 35: Consolidated Key Ratios
CONSOLIDATED KEY RATIOS In relation to production output Q1-3/2024 Change Q1-3/2023 2023 Income from companies accounted for 0.7% -0.4 PP 1.1% 1.5% using the equity method Material cost -18.6% 1.3 PP -19.9% -19.6% Cost of other related production services -42.7% 0.8 PP -43.5% -43.4% Personnel cost -
Slide 36: Consolidated Statement of Financial Position – Assets
CONSOLIDATED STATEMENT OF FINANCIAL POSITION Assets in EUR m 30.09.2024 Change vs. YE 31.12.2023 Change vs. 30.9.23 30.09.2023 Intangible assets 217.6 17.4% 185.4 13.8% 191.2 Property, plant and equipment 1,266.4 8.6% 1,166.4 13.1% 1,119.9 Investment property 35.0 0.0% 35.0 1.5% 34.4 Shareholdings i
Slide 37: Consolidated Statement of Financial Position – Equity and Liabilities
CONSOLIDATED STATEMENT OF FINANCIAL POSITION Equity and Liabilities in EUR m 30.09.2024 Change vs. YE 31.12.2023 Change vs. 30.9.23 30.09.2023 Share capital 39.3 - 39.3 - 39.3 Capital reserve 358.8 - 358.8 - 358.8 Profit-participation rights/hybrid 209.0 -15.6% 247.5 -15.6% 247.7 capital Other reser
Slide 38: International Shareholder Base
INTERNATIONAL SHAREHOLDER BASE STABLE CORE SHAREHOLDER Shareholder Distribution of structure free float 50.4% 12.3% 24.8% Not directly Syndicate* Austria assignable 49.6% 1.8% Free float** UK 6.8% 33.5% Germany Retail 6.7% Rest of Europe 1.4% 12.7% Rest of the world USA *Syndicate (Strauss Group, IG
Slide 39: Dividend
DIVIDEND SHARPENED PROFILE Dividend per share (in EUR), Dividend yield (in %) 0.75 0.60 0.50 5.9% 5.1% 3.6% 0.0% 0.00 2020 2021 2022 2023 ▪ +25% dividend payment ▪ Payout ratio at 33.9% ▪ Continuous dividend policy of 30-50% payout ratio ▪ Total shareholder return (TSR) at 13.9%* * Calculation: Divi
Slide 40: All-Time High in Earnings per Share
ALL-TIME HIGH IN EARNINGS PER SHARE CHANGING TIMES Share price Earnings per share 20.2.2017 3 40 EUR 38.99* Oct. 2021 capital increase Earnings per share in EUR EUR 12.00 Share price in EUR 1,5 30 0 20 -1,5 10 20.11.2024 1.1.2014 EUR 15.42 EUR 9.98* YTD: +21.1% -3 0 2014 2015 2016 2017 2018 2019 202
Slide 41: Broker Coverage
BROKER COVERAGE ANALYSTS‘S RECOMMENDATIONS Institution Analysts Price Target Recommendation Last Update Montega Patrick Speck 20.0 Buy 21.11.2024 Joh. Berenberg, Gossler & Co. KG Jenna Xu 19.5 Buy 21.11.2024 ERSTE Group Michael Marschallinger 18.8 Buy 21.11.2024 Raiffeisen Bank International Markus
Slide 42: Service: Investor Relations
SERVICE INVESTOR RELATIONS Share information Next events ISIN AT0000609607 06-Feb-25 Interest payment Ticker POS VI Hybrid bond 2020&2024 No. of shares 39,278,250 Market Vienna Stock 27-Mar-25 Publication Annual Exch. / prime and Sustainability Report 2024 C+ / Prime Segment Top 10 % der Branche IR