Strabag Se · VIE:STR
Strabag — Investor Presentation (December 2021)
80 slides from Strabag's investor presentation, December 2021
Slide 1: STRABAG SE Investor Presentation December 2021
STRABAG SE INVESTOR PRESENTATION DECEMBER 2021
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 GLOBAL TRENDS 3 THE STRABAG IMPACTING THE STRATEGY & CONSTRUCTION INVESTMENT INDUSTRY PROPOSITION 4 FINANCIAL 5 APPENDIX PERFORMANCE 3 Investor Presentation December 2021
Slide 4: STRABAG at a Glance
N} } STRABAG AT A GLANCE
Slide 5: STRABAG at a Glance
STRABAG AT A GLANCE FACTS & FIGURES STRONG MARKETS ● Output volume: € 15.4 billion ● Net income: € 399 million ● 74,340 employees ● >700 locations in more than 80 countries ● Highly innovative: Central Technical Division with over 1,000 engineers, TPA (Quality & Innovation) with about 1,000 people a
Slide 6: Our Strategy
OUR STRATEGY “STRABAG is a European-based technology group for construction services, a leader in innovation, resourcefulness and financial strength. Our services span all areas of the construction industry and cover the entire construction value chain. With a special focus on sustainability, innova
Slide 7: Strategic Goals (Selection)
STRATEGIC GOALS (SELECTION) Issue Key figure/Criteria 2019 2020 Targets Capital market appeal Equity ratio 31.5 % 33.9 % ≥25 % S&P rating BBB BBB Maintain investment grade rating Dividend 25 % of net income after 49 % of net income after 30–50 % of net income after minorities minorities minorities E
Slide 8: Strategic Goals (Selection) (cont.)
STRATEGIC GOALS (SELECTION) (CONT.) Issue Key figure/Criteria 2019 2020 Targets Materials1 Recycled input materials used – 34 % (DE) 33 % (DE) Increase the previous year’s Percentage of recycled asphalt used 41 % (PL) 40 % (PL) level in the production of asphalt mixture 13 % (AT) 14 % (AT) Energy1 E
Slide 9: Largest Projects in Progress
LARGEST PROJECTS IN PROGRESS NO SPECIFIC EXPOSURE TO ANY LARGE PROJECT ORDER AS % OF BACKLOG TOTAL ORDER COUNTRY PROJECT IN €M BACKLOG Great Britain HS2 high-speed rail line 1,238 6.7 Great Britain North Yorkshire Polyhalite Project 810 4.4 Germany PPP A49 motorway 357 2.0 Alto Maipo power plant Ger
Slide 10: Flagship Projects – Core Markets
FLAGSHIP PROJECTS – CORE MARKETS FAIR – GERMANY TRIIIPLE RESIDENTIAL TOWERS – AUSTRIA Building of a Facility for Building three 100-metre-high Antiproton and Ion Research residential towers Size: € 220 million Size: € 110 million Project schedule: 2020–2023 Project schedule: 2018–2021 Project scope:
Slide 11: 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 Project scope: Construction of tunnel, exit shaft (22 m d
Slide 12: Business Segment Contribution 2020
BUSINESS SEGMENT CONTRIBUTION 2020 International + North + West South + East Special Divisions 51% 30% 18% of output of output of output volume volume volume Austria, Switzerland, Hungary, Czech Republic, International, Tunnelling, Slovakia, Adriatic, Services, Real Germany, Poland, Rest of Europe,
Slide 13: Key Financials
KEY FINANCIALS (€m) 2020 2019 ∆% Output volume 15,447 16,618 -7 Revenue 14,750 15,669 -6 EBITDA 1,175 1,113 5 EBIT 631 603 5 Net income after minorities 395 372 6 Cash flow from operating activities 1,280 1,076 6 Cash flow from investing activities -350 -593 41 Balance sheet total 12,134 12,251 -1 G
Slide 14: Comprehensive Country Network
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 machine
Slide 15: Global Trends Impacting the Construction Industry
2 GLOBAL TRENDS IMPACTING THE CONSTRUCTION INDUSTRY
Slide 16: Urbanisation/Population Growth – Higher Need for Infrastructure
(1) URBANISATION/POPULATION GROWTH – HIGHER NEED FOR INFRASTRUCTURE ● By 2050 68% of the global population will live in cities CASE STUDY GERMANY: DAILY TRAFFIC LOAD 2030F (today: 55%) – an increase of the urban population by 2.5 billion. ● Nine largest European cities are projected to have a gap of
Slide 17: Urbanisation/Population Growth – Example I
(1) URBANISATION/POPULATION GROWTH – EXAMPLE I MOTORWAY DENSITY IN DIFFERENT MARKETS 45 1999 2009 2019 km motorway / 1,000 km2 0 Germany Croatia Austria Hungary Czech Slovakia Bulgaria Poland Romania Republic Source: Eurostat, Regionalstatistik des Verkehrs (https://ec.Europa.Eu/Eurostat/data/databa
Slide 18: Urbanisation/Population Growth – Example II
(1) URBANISATION/POPULATION GROWTH – EXAMPLE II PROJECTION OF LARGEST RESIDENTIAL CONSTRUCTION NEED 400,000 40,000 Average Annual Construction Demand Cumulative Construction Need 2021–2030 Number of flats Number of flats 0 0 London Warsaw Paris Budapest Berlin Vienna Copenhagen Amsterdam Zurich Sour
Slide 19: Urbanisation/Population Growth – Example III
(1) URBANISATION/POPULATION GROWTH – EXAMPLE III PRESENT UNMET HOUSING NEED/PLANNED USE OF EU FUNDING THROUGH NATIONAL RECOVERY AND RESILIENCE PROGRAMMES UNTIL 2026 According to GdW 1 estimate, the shortfall in the construction of new dwellings over the last 10 years is about 1 million units, German
Slide 20: Climate Change/Energy Efficiency – Overview
(2) CLIMATE CHANGE/ENERGY EFFICIENCY – OVERVIEW • Total annual energy investment surges to USD 5 trillion by 2030, adding an extra 0.4 percentage point a year to annual global GDP growth1 ● EU Green Deal sets 3 targets until 2030 − At least 40% cuts in greenhouse gas emissions − At least 32% share o
Slide 21: Faster Together 2022 – The STRABAG Action Plan
FASTER TOGETHER 2022 – THE STRABAG ACTION PLAN People First teamconcept BIM 5D® Strategic SMART. LEAN. Project Risk Procurement Construction Construction Management Solution (SPS) 21 Investor Presentation December 2021
Slide 22: Technology/Digitalisation – Selected Innovation Project Examples
(3) TECHNOLOGY/DIGITALISATION – SELECTED INNOVATION PROJECT EXAMPLES STRABAG REAL ESTATE DIGITAL TACT CONTROL ALBSTADTWEG NR. 10 Enables a complete overview of Start date: December 2020 the construction progress Occupation planned for Autumn 2022 The digital tact control relates planned deadlines an
Slide 23: Risk Management at STRABAG
(4) RISK MANAGEMENT – RISK MANAGEMENT AT STRABAG RISK MANAGEMENT AS A KEY STRATEGIC DIFFERENTIATOR ● Hightened risk perception of climate change and resource scarcity ● Compliance, cartell and competition, prevention of corruption ● Sharing financial risk and responsibility in construction projects
Slide 24: Risk of Climate Change on STRABAG's Business
(4) RISK MANAGEMENT – RISK OF CLIMATE CHANGE ON STRABAG’S BUSINESS CLIMATE CHANGE ● More frequent and extreme climate events have made environmental risks more significant for STRABAG‘s activities, notably − storms, floods, heat and rockslides or even ground movements can affect buildings and infras
Slide 25: The STRABAG Strategy & Investment Proposition
3 THE STRABAG STRATEGY & INVESTMENT PROPOSITION
Slide 26: The STRABAG Investment Proposition
THE STRABAG INVESTMENT PROPOSITION 1 Sustainable Profit Growth with a Reliable Dividend 2 Resourcefulness, Recyclability, Construction Life Cycle 3 Technology, Innovation and Digitalisation 4 Flexible Business Model Supported by Strong Risk Management 5 Financial Strength as a Competitive Advantage
Slide 27: EBIT and Operating Cash Flow History
(1) SUSTAINABLE PROFIT GROWTH WITH A RELIABLE DIVIDEND – EBIT AND OPERATING CASH FLOW HISTORY EBIT (€M) AND EBIT MARGIN (%) 1,500 5 2021 Outlook: ~4% EBIT margin target 603 631 558 425 448 335 282 341 207 262 0 0 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 OPERATING CASH FLOW (€M) 1,500 1.345
Slide 28: Net Income and Dividend/Payout History
(1) SUSTAINABLE PROFIT GROWTH WITH A RELIABLE DIVIDEND – NET INCOME AND DIVIDEND/PAYOUT HISTORY NET INCOME (€M) 500 379 399 363 282 292 239 182 156 148 110 0 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 DIVIDEND (€) AND PAYOUT RATIO (%) 7.0 50 Payout Ratio 30–50% of Net Income after minorities
Slide 29: Key Points of STRABAG's Digitalisation Objectives
(3) TECHNOLOGY, INNOVATION AND DIGITALISATION – KEY POINTS OF STRABAG’S DIGITALISATION OBJECTIVES Breaking down Data Silos Data is the basis of all digitalisation activities. Therefore, we are consistently breaking down the existing 1. data silos within STRABAG and ensuring better networking with ea
Slide 30: Central Elements of STRABAG's Digital Strategy
(3) TECHNOLOGY, INNOVATION AND DIGITALISATION – THE 5 CENTRAL ELEMENTS OF STRABAG’S DIGITAL STRATEGY STRATEGIC SUCCESS FACTORS Understanding the Requirements Digital Services & Business Models of Internal Customers • Transform existing processes and • Focus on simplicity, speed, innovations into dig
Slide 31: Technology, Innovation and Digitalisation – Headcount
(3) TECHNOLOGY, INNOVATION AND DIGITALISATION – HEADCOUNT CENTRAL TECHNICAL, INNOVATION AND R&D STAFF HEADCOUNT 2,500 Total R&D spending 2020: ~ € 17 million 0 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020* 2021 SID ZT TPA * 122 employees moved to SID ZT = Central Technical Division; SID = STRAB
Slide 32: Central Technical Division/TPA and SID
(3) TECHNOLOGY, INNOVATION AND DIGITALISATION – CENTRAL TECHNICAL DIVISION/TPA AND SID CENTRAL TECHNICAL DIVISION STRABAG INNOVATION & DIGITALISATION (SID) ● Central Technical Division – provides technical services spanning the entire construction process, from the Locations acquisition phase to bid
Slide 33: BIM 5D Offering Technology and Sustainability
(3) TECHNOLOGY, INNOVATION AND DIGITALISATION – BIM 5D® OFFERING TECHNOLOGY AND SUSTAINABILITY 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 compan
Slide 34: Resilience in a Volatile Industry
(4) FLEXIBLE BUSINESS MODEL, STRONG RISK MANAGEMENT – RESILIENCE IN A VOLATILE INDUSTRY OUTPUT VOLUME (€M) ORDER BACKLOG (€M) 5% 20,000 -7% 20,000 18.369 16.618 16.592 16.900 17.411 16.323 15.447 14.621 14.816 13.491 0 0 2016 2017 2018 2019 2020 2016 2017 2018 2019 2020 EBITDA (€M) AND EBITDA MARGIN
Slide 35: Our Subcontracting and Portfolio Mix
(4) FLEXIBLE BUSINESS MODEL, STRONG RISK MANAGEMENT – OUR SUBCONTRACTING AND PORTFOLIO MIX SUBCONTR. BUILDING & CIVIL ENGINEERING SUBC. TRANSPORTATION INFRASTRUCTURE Sub- contractors 32 % Own Sub- 43 % contractors 57 % Own Own 68% 68 % DIVERSIFIED PORTFOLIO BALANCES CYCLICAL/PROJECT-DRIVEN NATURE OF
Slide 36: Own Dense Construction Materials Network
(4) FLEXIBLE BUSINESS MODEL, STRONG RISK MANAGEMENT – OWN DENSE CONSTRUCTION MATERIALS NETWORK STRABAG FACILITIES1 OWN COVERAGE OF MATERIAL NEEDS (%) ● Asphalt mixing plants 2732 100 83% 83% 2020 2019 ● Concrete mixing plants 1392 ● Quarries and gravel pits 1432 ● Cement mixing plants 53 ● Productio
Slide 37: Steady Income Through Concession Business
(4) FLEXIBLE BUSINESS MODEL, STRONG RISK MANAGEMENT – STEADY INCOME THROUGH CONCESSION BUSINESS NUMBER OF STRABAG’S PPP1 PROJECTS SELECTED PPP PROJECTS 50 38 37 36 35 35 0 MAR1, Colombia Motorway A8, Germany 2016 2017 2018 2019 2020 PPP STRATEGY SELECTED PPP PROJECTS TOTAL COUNTRY PROJECT COST (€M)
Slide 38: Property & Facility Services
(4) FLEXIBLE BUSINESS MODEL, STRONG RISK MANAGEMENT – PROPERTY & FACILITY SERVICES TARGET MARKETS & BUSINESS SEGMENTS KEY FACTS 2020 ● Technical Facility services ● Output 2020: € 549 m ● Infrastructural Facility ● ~ 6,099 employees (FTE) services ● Consolidated in the International + Special Divisi
Slide 39: Real Estate Development
(4) FLEXIBLE BUSINESS MODEL, STRONG RISK MANAGEMENT – REAL ESTATE DEVELOPMENT TARGET MARKETS & BUSINESS SEGMENTS KEY FACTS ● Circa 70-year long ● Overall performance1 2020: € 624 m successful presence on the real estate market ● ~ 370 employees ● 2 Brands: Mischek & ● Investment focus on major Europ
Slide 40: Selected Real Estate Development Projects
(4) FLEXIBLE BUSINESS MODEL, STRONG RISK MANAGEMENT – SELECTED REAL ESTATE DEVELOPMENT PROJECTS THE WILD VIENNA KUHLIO FRANKFURT APARTMENT COMPLEX APARTMENT COMPLEX Build time: 2021–2022 Build time: 2019–2021 Gross floor area: 5.000 m² Gross floor area: 15.000 m² Apartments: 109 Apartments: 167 Park
Slide 41: Financial Strength as Competitive Advantage – Overview
(5) FINANCIAL STRENGTH AS COMPETITIVE ADVANTAGE – OVERVIEW ● 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 December 2021 − Leading mar
Slide 42: Diversified Financing
(5) FINANCIAL STRENGTH AS COMPETITIVE ADVANTAGE – DIVERSIFIED FINANCING DEBT REPAYMENT PROFILE BONDS (€M) DIVERSIFIED MEANS OF FINANCING 300 ● Cash and surety credit lines (31 December 2020): € 7.9 billion 200 − thereof syndicated cash credit line of € 0.4 billion (by 2026) − thereof syndicated sure
Slide 43: Increasing Allocations to Infrastructure Investments
(5) FINANCIAL STRENGTH AS COMPETITIVE ADVANTAGE – INCREASING ALLOCATIONS TO INFRASTRUCTURE INVESTMENTS PENSION ASSET ALLOCATION FROM 2000 TO 2020 (%) Pension funds have increased their allocation to alternative investments from 7 % to 7% 26 % in the last 20 years. Alternatives have been attractive f
Slide 44: Financial Performance
4 FINANCIAL PERFORMANCE
Slide 45: Order Backlog Reached Again a New Record High
ORDER BACKLOG REACHED AGAIN A NEW RECORD HIGH, OUTPUT VOLUME UP BY 3% OUTPUT VOLUME (€M) 25,000 ● Growth primarily due to the nearly one-fifth increase in the home market of Austria following 15.447 temporary suspension of construction activity in the wake coronavirus crises last year 3% 6.943 6.720
Slide 46: Strong Growth in Earnings
STRONG GROWTH IN EARNINGS EBITDA (€M) 1,500 ● Growth of more than a third 1.174 35% 406 300 0 6M/21 6M/20 2020 EBIT (€M) 700 631 ● Depreciation and amortisation comparable to six months 2020 ● Strong increase of EBIT attributable to the segments International + Special Divisions and 211% North + Wes
Slide 47: Net Income After Minorities After Six Months
NET INCOME AFTER MINORITIES AFTER SIX MONTHS HIGH IN THE POSITIVE TERRITORY NET INCOME AFTER MINORITIES (€M) EARNINGS PER SHARE (€) 395 3,85 400 4 n.m. n.m. 88 0,86 0 0 -1 -0.01 -100 -1 6M/21 6M/20 2020 6M/21 6M/20 2020 ● Net interest income less negative at € -3 million after € -13 million in 6M/20
Slide 48: Still High Equity Ratio Despite Increased Dividend
STILL HIGH EQUITY RATIO OF MORE THAN 30% DESPITE INCREASED DIVIDEND ASSETS1 EQUITY AND LIABILITIES1 (€m) 6M/2021 2020 (€m) 6M/2021 2020 Intangible assets 483 483 Share capital 110 110 Rights from concession Capital reserves 2,315 2,315 arrangements 502 512 Retained earnings 1,070 1,661 PP&E & invest
Slide 49: Strong Increase in Receivables Shifts CFO to Negative
BUSINESS-RELATED STRONG INCREASE IN RECEIVABLES SHIFTS CFO TO NEGATIVE (€m) 6M/21 ∆% 6M/20 Cash – beginning of period 2,857 16 2,460 Cash flow from earnings 347 45 239 ∆ Working Capital -410 -99 -206 Cash flow from operating activities -63 n.m. 33 Cash flow from investing activities -220 -22 -180 Ca
Slide 50: North + West: Earnings Improvements
NORTH + WEST: EARNINGS IMPROVEMENTS AND HIGH DEMAND IN GERMAN BUILDING CONSTRUCTION KEY INDICATORS COMMENTS (€m) 6M/21 Δ% 6M/20 ● Output volume lower due to exceptionally brisk activity in the previous year in Germany Output volume 3,391 -4 3,531 ● EBIT up almost by one third thanks to earnings Reve
Slide 51: South + East EBIT Moved into Negative Territory
SOUTH + EAST EBIT MOVED INTO NEGATIVE TERRITORY – POSITIVE ONE-OFF EFFECT IN COMPARISON PERIOD KEY INDICATORS COMMENTS (€m) 6M/21 Δ% 6M/20 ● Output volume rose by 10%, Covid-related suspension of construction activity in Austria in the year before Output volume 2,084 10 1,891 ● EBIT entered negative
Slide 52: International + Special Divisions
INTERNATIONAL + SPECIAL DIVISIONS: COVID EFFECTS KEPT IN CHECK KEY INDICATORS COMMENTS (€m) 6M/21 Δ% 6M/20 ● Output volume higher by 15% due to continuous execution of large projects in the international business Output volume 1,417 15 1,233 ● EBIT turned into positive territory: Revenue 1,398 14 1,
Slide 53: Decline in Output Volume 2020 Lower Than Predicted
DECLINE IN OUTPUT VOLUME 2020 LOWER THAN PREDICTED OUTPUT VOLUME (€M) 20,000 -7% ● Loss of a key client in Germany in property & 16.618 15.447 facility services as from 1 July 2019 onwards ● Performance and completion of tunnelling projects ● Temporary suspension of construction activity due to the
Slide 54: Increase in Order Backlog Despite Crisis
INCREASE IN ORDER BACKLOG DESPITE CRISIS ORDER BACKLOG (€M) 20,000 18.369 5% ● Strong growth in Germany, especially in 17.411 transportation infrastructures ● Increases also in other core markets like Czech Republic and Slovakia ● Large-scale projects in Great Britain ● Declines in Austria, Poland a
Slide 55: EBITDA Topping €1 Billion Mark for the Second Time
EBITDA TOPPING € 1 BILLION MARK FOR THE SECOND TIME EBITDA (€M) AND EBITDA MARGIN (%) 1,500 5% ● Improvement of EBITDA margin from 1.174 1.113 7.1 % to 8.0 % 8.0% 7.1% 0 2020 2019 EBIT (€M) AND EBIT MARGIN (%) 1,500 ● Depreciation and amortisation higher as a result of the high investments in previo
Slide 56: Earnings per Share Rose by 6%
EARNINGS PER SHARE ROSE BY 6% NET INCOME A. MINORITIES (€M) & MARGIN (%) EARNINGS PER SHARE (€) 500 6% 5 6% 395 3,85 372 3,62 2.7% 2.4% 0 0 2020 2019 2020 2019 ● Improvement of net interest income due to lower interest expenses for personnel-related provisions, i.a. ● Income tax rate stood stable at
Slide 57: Group Income Statement 2020
GROUP INCOME STATEMENT 2020 (€m) 2020 2019 Δ% Output volume 15,446.61 16,617.97 -7 Revenue 14,749.74 15,668.57 -6 Changes in inventories/own work capitalised 23.46 31.36 -25 Other operating income 205.81 233.14 -12 Construction materials, consumables and services used -9,304.35 -10,111.85 8 Employee
Slide 58: Equity Ratio Increases to 34%
EQUITY RATIO INCREASES TO 34% ASSETS1 EQUITY AND LIABILITIES1 (€m) 2020 2019 (€m) 2020 2019 Intangible assets 483 491 Share capital 110 110 Rights from concession Capital reserves 2,315 2,315 arrangements 512 530 Retained earnings 1,661 1,397 PP&E & investment property 2,571 2,632 Non-controlling in
Slide 59: Net Cash Increased to €1.7 Billion
NET CASH INCREASED TO AN EXCEPTIONAL LEVEL OF € 1.7 BILLION NET DEBT (+)/NET CASH (-) (€M) EQUITY RATIO (%) 2,000 40% 33.9 31.5 30.7 31.6 31.5 0 -449 -1,218 -1,144 -1,335 -2,000 -1,747 0% 2016 2017 2018 2019 2020 2016 2017 2018 2019 2020 ● Equity exceeded the € 4 billion mark for the first time, equ
Slide 60: Cash and Cash Equivalents of €2.9 Billion
CASH AND CASH EQUIVALENTS OF € 2.9 BILLION (€m) 2020 Δ% 2019 Cash – beginning of period 2,460 3 2,384 Cash flow from earnings 930 9 851 ∆ Working Capital 350 55 225 Cash flow from operating activities 1,280 19 1,076 Cash flow from investing activities -350 41 -593 Cash flow from financing activities
Slide 61: Cash at €2.9 Billion
CASH AT € 2.9 BILLION CASH DEVELOPMENT (€M) COMMENTS 4,000 1.280 ● Due to Covid-19, investments were temporarily suspended in spring 2020 as a precautionary 350 1 2.857 2.460 measure. 496 38 0 Cash CFO CFI CFF Currency Restricted Cash translation cash 1.1.2020 31.12.2020 CFO: Cash flow from operatin
Slide 62: Again Cash Inflow in 2HY/2020
AGAIN CASH INFLOW IN 2HY/2020 WORKING CAPITAL PATTERN: CASH OUTFLOWS IN 1HY; INFLOWS IN 2HY (€M) 1,500 989 775 557 322 430 0 -278 -295 -207 -550 -748 -1,500 HY1 2016 HY2 2016 HY1 2017 HY2 2017 HY1 2018 HY2 2018 HY1 2019 HY2 2019 HY1 2020 HY2 2020 COMMENTS ● Working capital outflows generally occur o
Slide 63: Reduced Investments Lead to High Free Cash Flow
REDUCED INVESTMENTS LEAD TO HIGH FREE CASH FLOW Δ WORKING CAPITAL (€M) CFO VS. CFI (€M) CFI VS. DEPRECIATION (€M) 1,500 1,500 1,500 1.280 1.076 789 641 593 641 593 511 544 350 350 394 350 225 135 0 0 0 2018 2019 2020 2018 2019 2020 2018 2019 2020 CFO CFI CFI Depreciation ● Free Cash Flow increased t
Slide 64: North + West: Crisis-Proof Thanks to Stable Core Markets
NORTH + WEST: CRISIS-PROOF THANKS TO STABLE CORE MARKETS KEY INDICATORS COMMENTS (€m) 2020 Δ% 2019 ● Output volume -3 % over the past year Output volume 7,863 -3 8,107 ● EBIT grew by 31 % thanks to strong growth in Revenue 7,462 -1 7,556 German infrastructure business as well as building constructio
Slide 65: South + East: Improved Earnings
SOUTH + EAST: IMPROVED EARNINGS WITH A SIMULTANEOUS DECLINE IN OUTPUT VOLUME KEY INDICATORS COMMENTS (€m) 2020 Δ% 2019 ● Output volume down by 6 %, particularly sharp decline in Austria due to lockdown in March Output volume 4,633 -6 4,916 Revenue 4,603 -6 4,880 ● EBIT grew by 45 %, besides Austria
Slide 66: International + Special Divisions: Sectors Affected Differently
INTERNATIONAL + SPECIAL DIVISIONS: BUSINESS SECTORS AFFECTED VERY DIFFERENTLY BY THE CRISIS KEY INDICATORS COMMENTS (€m) 2020 Δ% 2019 ● Output volume fell by 19 %: Output volume 2,812 -19 3,451 − loss of major property & facility services client in Revenue 2,670 -17 3,217 Germany Order backlog 4,763
Slide 67: Outlook for 2021: Cautiously Optimistic
OUTLOOK FOR 2021: CAUTIOUSLY OPTIMISTIC ● Output volume above 2020 level ● EBIT margin back to normal, ~4.0 % ● Segment outlook: − North + West: stable at high level − South + East: recovery of output volume compared to 2020 − International + Special Divisions: Covid-19 crisis also presents opportun
Slide 68: Appendix
APPENDIX. > ‘\ y Oeowinsiarok SOCIETAS EUROPAEA
Slide 69: Output Volume by Country
OUTPUT VOLUME BY COUNTRY (€m) 2016 2017 2018 2019 2020 CAGR1 (%) Germany 6,270 6,960 7,877 7,819 7,323 4 Austria 2,099 2,333 2,542 2,679 2,460 4 Poland 774 848 975 1,129 1,183 11 Czech Republic 631 629 706 783 826 7 Hungary 448 551 714 848 671 11 Americas 348 385 515 714 494 9 Other European Countri
Slide 70: STRABAG Market Share Data 2019
STRABAG MARKET SHARE DATA 2019 COUNTRY CONSTRUCTION OUTPUT (€m) STRABAG OUTPUT (€m) MARKET SHARE (%) Germany 378,472 7,819 2.1 Austria 45,096 2,679 5.9 Poland 57,007 1,129 2.0 Hungary 17,010 848 5.0 Czech Republic 23,728 783 3.3 Slovakia 5,466 369 6.8 Benelux 133,330 318 0.2 Switzerland 62,918 232 0
Slide 71: Market Leading Position in Central and Eastern European Countries
MARKET LEADING POSITION IN CENTRAL AND EASTERN EUROPEAN COUNTRIES WESTERN EUROPE EASTERN EUROPE Rank GERMANY POLAND CZECH REPUBLIC HUNGARY 1. STRABAG 7,819 Budimax 1,778 Metrostav 1,048 Duna Aszfalt 954 2. Vinci 3,140 STRABAG 1,129 STRABAG 783 STRABAG 848 3. Goldbeck 2,457 Porr 548 Eurovia 485 Mészá
Slide 72: Own Building Materials Network
OWN BUILDING MATERIALS NETWORK 72 Investor Presentation December 2021
Slide 73: Financing PPP-Projects
FINANCING PPP-PROJECTS TYPICAL FINANCING EQUITY INVESTED IN PPP (€M) ● The SPV1 is financed with equity (10%–30%) and bank 700 debt (70%–90%) 556 554 515 ● STRABAG – as a shareholder in the SPV – 427 400 puts in equity ● Other SPV shareholders are e.g. governments, infrastructure funds and developer
Slide 74: 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 75: Property & Facility Services: Strategic Rationale & Targets
PROPERTY & FACILITY SERVICES: STRATEGIC RATIONALE & TARGETS EXTENDING THE VALUE CHAIN BROAD RANGE OF CUSTOMERS (SELECTION) ● Offsets seasonal and cyclicality factors (contracts of 3-5 years Services for all type of real estate and property, as offices, duration) industrial sites and plants, technolo
Slide 76: Stable Shareholder Structure
STABLE SHAREHOLDER STRUCTURE SHAREHOLDER STRUCTURE SINCE 7/2021 MKAO „Rasperia Trading Limited“ 6.7% Retail 27,8% Institutional Continental 2.2% Europe (ex. Austria) 1.9% Other Haselsteiner Family 28,3% 14,4% Free float 1.7% Institutional Austria 1.5% Institutional North America 29,5% 0.4% Instituti
Slide 77: Organisational Structure – Central Units
ORGANISATIONAL STRUCTURE – CENTRAL UNITS CEO Operative Segments North + West South + East International + Special Divisions Board Member 1 1 1 1 Divisions 4 7 3 5 Division Manager Subdivisions 36 30 28 35 34 1 31 Subdivision Manager Central Divisions & Central Staff Divisions CFO CEO CDO BRVZ Busine
Slide 78: The Management Board
THE MANAGEMENT BOARD LONG RECORD OF EXPERIENCE WITHIN STRABAG AND IN THE CONSTRUCTION SECTOR Thomas Birtel, CEO ● Joined STRABAG in 1996 ● Management Board member since 2006 ● Born 1954 Education: Economics Christian Harder, CFO ● Joined STRABAG in 1994 ● Management Board member since 2013 ● Born 19
Slide 79: STRABAG Share Is Covered by Five Institutions
STRABAG SHARE IS COVERED BY FIVE INSTITUTIONS Company Date Title Target Price Rating Cheapest construction play in Europe Erste Group 7.12.2021 (for now)? € 43.6 Buy Auftragsbestand per Q3-21 auf LBBW 26.11.2021 Rekordniveau € 35.0 Hold Confirms guidance after Q3, sees raw Kepler Cheuvreux 16.11.202
Slide 80: Financial Calendar and IR Contact
FINANCIAL CALENDAR AND IR CONTACT • Annual Report 2021 29 April 2022 • Trading Statement January–March 2022 31 May 2022 • Annual General Meeting 2022 10 June 2022 • Semi-Annual Report 2022 31 August 2022 • Trading Statement January–September 2022 16 November 2022 Diana Neumüller-Klein, CFA Head of I