Porr Ag · VIE:POS
Porr — Non-Deal Roadshow (August 2022)
45 slides from Porr's roadshow presentation, Aug 30, 2022
Slide 1: HY Results 2022
HY Results 2022 Part of the solution. Investor Presentation August 2022 Investor Presentation August 2022 1
Slide 2: Disclaimer
Disclaimer This presentation was prepared by PORR AG (the "Company") This presentation contains forward-looking statements relating to solely for use at investors’ meetings and is provided solely for the business, financial performance and results of the Company informational purposes. and/or th
Slide 3: Building Tomorrow's World
Building Tomorrow‘s World 01 PORR today 02 Transformation 03 Financial Peformer Leading One-Stop Shop in Strategic Focus on Holistic PORR 2025 construction Green and Lean unleashes value potential Strong long-term upside for Pioneering the must-win Visible margin upside PORR home markets battl
Slide 4: Riding the Right Wave – One-Stop Shop in Construction
Riding the Right Wave – One-Stop Shop in Construction Design & Engineering Segment split1 Infra 9% NO CEE Demolition Construction 10% PL One-Stop-Shop 13% Full-Service- #4 PL Provider DE AT / CH #3 #6 CZ DE SK #2 53% AT 14% #7 CH #1 RO #7 Service split1 Operation & Refurbishment Management & Renovat
Slide 5: PORR Captures the Megatrends in Construction
PORR Captures the Megatrends in Construction Urbanisation Mobility Sustainability Digitalisation Health +80% -55% EUR 1.8tn EUR 2.1 bn +48% of the European population CO2 emission target in the European BIM People older than 65 in urban areas by 2050 EU by 2030 Green Deal market by 2050 Demand for n
Slide 6: We focus on Intelligent Growth with Green and Lean
We 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 Design-build contractor – Clear commitment to and technologies PORR Principles one-stop shop for every ecological, environmentally process friendly
Slide 7: PORR 2025 – A Holistic Approach
PORR 2025 – A Holistic Approach 2025 Operational Staff and Markets excellence and Finance organisation digitalisation Unite economy, Innovation leader in LEAN Management – Improve capital employed environment and society construction and flat hierarchies and in construction technology fast d
Slide 8: Highlights HY 2022
Highlights HY 2022 High demand due to construction investments 1 Stabilising input costs Order backlog at a top level 2 Continued selective acquisition HY EBT increased by 93% 3 Limited impact of cost pressures Stable balance sheet 4 Net debt improvement. High liquidity reserves. Outlook 2022: Earni
Slide 9: Strong Demand. Stabilisation in Costs.
Strong Demand. Stabilisation in Costs. EU Budget supports construction sector Input cost hikes slowing down 2021 – 2027 EU Budget: EUR 2.0 tn 400 350 EUR 724 bn 300 Investment 250 potential in 200 construction EUR 791 bn 150 EUR 19 bn EUR 48 bn 100 50 12/20 03/21 06/21 09/21 12/21 03/22 06/22 Recove
Slide 10: European Market on the Move
European Market on the Move Building construction BIM: New Courts, DE Residential construction on a high level despite increased interest rates remains Structural change in non-residential construction to retail, storage, co-working and industrial Modernisation and revitalisation of buildings toward
Slide 11: Top Order Book as Strong Basis
Top Order Book as Strong Basis +13.7% Selective growth in order book, focus on the right amount of risks and margins 7,848 8,049 7,080 +2.6% +10.9% Moderate increase with +5% long-standing EBT track record 3,271 (6.9%) 3,046 3,016 Slight decrease, finalisation of major +8.4% -6% projects, ongoing hi
Slide 12: TOP Orders in 2022
TOP Orders in 2022 TOP order backlog TOP order intakes in HY 2022 Specialist civil Waste to Energy plant, Rzeszów (PL) engineering Modernisation Constanța Harbour (RO) Road ARGE Stadtstraße, Vienna (AT) construction A9 Renovation Edlach – Gaishorn (AT) Sibiu - Pitesti Motorway App. Bldg. Podhagskyga
Slide 13: Output and Earnings at Record Levels
Output and Earnings at Record Levels Production output EBT in EUR m in EUR m EBT margin in % of production output 2,766 +93% 22.1 2,497 2,496 2,273 11.5 8.2 0.8% 0.5% 0.3% (1.2%) (26.6) HY/19 HY/20 HY/21 HY/22 HY/19 HY/20 HY/21 HY/22 COVID COVID Price increases as major contributors Cost increases s
Slide 14: Stable Balance Sheet
Stable Balance Sheet Equity in EUR m Net debt development Equity ratio in % in EUR m 470 824 764 IAS 37: 680 654 22m 310 (36%) 20.3% 742 18.4% 198 18.1% 18.8% 18.4% 319 318 300 247 (65) HY/20 HY/21 FY/21 HY/22 HY/20 HY/21 FY/21 HY/22 Hybrid capital High equity despite seasonality of Major decrease i
Slide 15: ESG on Track
ESG on Track PORR score Sector average Low High Top 10% of D- D+ C+ Prime A+ sector Second highest CCC BBB AA AAA rating D- A- in Leadership Climate A segment B Water D- B A 1st time rating 40+ High risk 29.5 0 Medium risk Investor Presentation August 2022 15
Slide 16: Stable Shareholder Structure
Stable Shareholder Structure Ownership Structure Free Float – Geographical Split 20.3% 32.2% 50.4% 5.6% 6.3% 49.6%1 8.3% 18.0% 0.5% 8.8% Syndicate (Strauss Group, IGO-Ortner Group) Free float Austria Germany UK Rest of Europe US Rest of the World Not directly assignable Retail 1 thereof 4.34% Heitka
Slide 17: Dividend
Dividend Dividend per share in EUR 1.10 1.10 1.10 0.50 0.00 0.00 2016 2017 2018 2019 2020 2021 Earnings per share in EUR 2.23 2.09 1.88 0.50 (2.28) 1.18 Commitment to a dividend policy with a payout ratio of 30% to 50% Along the profitability the company distributed EUR 0.50 dividend per share for F
Slide 18: Outlook
Outlook 2022 2025 Production output of EUR 5.7 – 5.9 bn Production output CAGR +3% per year Earnings higher than last year Sustainable EBT margin ~3% Ongoing difficult market conditions Improved balance sheet structure regarding international supply chains, the pandemic and geopolitical conflicts In
Slide 19: Strategy
Strategy Investor Presentation August 2022 19
Slide 20: PORR 2025 Execution Well Advanced
PORR 2025 Execution Well Advanced Value Next generation leadership • Focus Green and Lean – Strengthen core differentiation and long-term value creation business Growth • Strengthen leadership as • Focus on fundamentals a total contractor • Achieve market and productivity positions • Deepen value ch
Slide 21: Stringent Execution of PORR 2025 Road Map
Stringent Execution of PORR 2025 Road Map Milestones HY 2022 Measures 2025 • Top output & Record order backlog • Promote sustainable construction Markets • Expansion of permanent business in CEE • Extend value chain and permanent business • Focus on sustainable construction and Slab • Optimise portf
Slide 22: Substantial Improvements in 2021
Substantial Improvements in 2021 EBT in EUR m 2020 EBT margins in % of production output 2021 1.6% 2.7% (4.6)% (0.5)% 0.4% 1.9% (4.9)% 1.0% (7.5)% (2.4)% 80.1 44.3 13.3 2.3 5.7 (4.3) (12.9) (24.7) (30.4) (40.7) AT / CH DE PL CEE Infra AT/CH: Output record and strong PL: Significant output increase (
Slide 23: Strong Business in Austria to Guarantee Stable Profits
Strong Business in Austria to Guarantee Stable Profits Output Austria & Switzerland Production Output and EBT margins (in EUR m) 53% Contribution Strong performance due to Historical EBT margin COVID impact to Output CAGR 2020-25: of >3% (2011-20) fade out in 2021 c. 2.5% − High output level − Cos
Slide 24: Realignment in Germany with Focus on Profitable Growth
Realignment in Germany with Focus on Profitable Growth Output Germany Production Output and EBT margins (in EUR m) 14% Contribution Substantial loss reduction due to Reduction of Focus on well- Output CAGR 2020-25: realignment of structural engineering civil engineering performing units c. 4.0%
Slide 25: Sustainable Turnaround in Poland Achieved – Set for Profitable Growth
Sustainable Turnaround in Poland Achieved – Set for Profitable Growth Output Poland Production Output and EBT margins (in EUR m) 13% Contribution Significant output increase (+17.2%) and Strong expansion Selective growth Output CAGR 2020-25: substantial margin improvement due to in the past c. 3.0
Slide 26: CEE: Strengthened Position and Expanded Footprint
CEE: Strengthened Position and Expanded Footprint Output CEE Production Output and EBT margins (in EUR m) 10% Contribution Production output doubled Investments in Smaller scale and Output CAGR 2020-25: from 2016-2021 market position regional expansion c. 1.0% Turnaround achieved due to increase
Slide 27: Infrastructure: Focus on Core Competences in our Project Markets
Infrastructure: Focus on Core Competences in our Project Markets Output Infrastructure Production Output and EBT margins (in EUR m) 9% Contribution Substantial improvement Volatile business in Refocus on technological Output CAGR 2020-25: project markets excellence c. 7.5% − Output and earnings in
Slide 28: Working Capital and Free Cash Flow 2021
Working Capital and Free Cash Flow 2021 Working Capital in EUR m Free Cash Flow Working Capital in % of total assets in EUR m 213 263 202 186 First-time consolidations EUR 55m 147 139 5.8% 118 88 5.3% 5.0% 80 2.8% 2018 2019 2020 2021 2018 2019 2020 2021 Increase in working capital as a result Contri
Slide 29: Green and Lean. PORR's Strategic Evolution
Green and Lean. PORR‘s Strategic Evolution GREEN From best-in-class to best in class in sustainable construction Evolution in technology needs as a must-have AND Setting a partnering standard Evolution in client and stakeholder needs – holistic approach LEAN Lean approach in management and
Slide 30: Green. The New Reality
Green. The New Reality ▪ Design & Engineering – circular engineering via BIM and LEAN Design experts in-house, virtual reality, innovation ▪ Modern energy concepts – climate neutral buildings, city geothermal approaches, energy efficient facades, etc. ▪ Renewable, recyclable, compostable materials –
Slide 31: Lean. PORR's Future of Construction
Lean. PORR´s Future of Construction Lean at management level Lean at operational level Lean in management - LEAN Design – optimise value, less layers of hierarchy minimise waste in the planning Lean in organisation – LEAN Construction – value added processes operational efficiency Investor P
Slide 32: LEAN – Focus On Customers And Value
LEAN – Focus On Customers And Value LEAN Project LEAN Design LEAN Construction Delivery ✓ Project management system ✓ Coordination ✓ Engaging all designers: ✓ Communication of ✓ Every team and every trade clients, partners, planning teams is integrated from the professionals ✓ Process mapping outset
Slide 33: The New Normal – Building Information Modeling
The New Normal – Building Information Modeling Collaboration Planning Communication Calculation Basic ingredients Responsibilities Construction scheduling Team Identification Processes Quantity calculation Training Site logistics Culture Coordination & support Data management Data formats BIM standa
Slide 34: LEAN & BIM as Parts of PORR's Mindset
LEAN & BIM as Parts of PORR‘s Mindset Project Culture What now? PORR PRINCIPLES Current BIM standards 5D Strategy 26 Number of Example project: current BIM projects Wien Museum LEAN Methods Connecting people: Customers, BIM What’s next? authorities, planners, Processes Connecting data workers & info
Slide 35: Financial Performance
Financial Performance Investor Presentation August 2022 35
Slide 36: Key Financials
Key Financials Key Earnings Figures (EUR m) HY 2022 %∆ HY 2021 Production output1 2,765.8 10.8% 2,496.1 Revenue 2,595.9 13.4% 2,288.3 EBT 22.1 92.8% 11.5 Net profit for the period 15.6 81.2% 8.6 Key Assets and Financial Figures (EUR m) 30.06.2022 %∆ 31.12.2021 Total assets 4,034.7 (0.7%) 4.065,0 Equ
Slide 37: Consolidated Income Statement
Consolidated Income Statement EUR m HY 2022 HY 2021 % HY 22/21 2021 Production output1 2,765.8 2,496.1 10.8% 5,727.3 Revenue 2,595.9 2,288.3 13.4% 5,169.8 EBITDA 125.8 114.0 10.3% 287.5 in % of Production output 4.5% 4.6% 0.0PP 5.0% EBIT 32.0 21.2 51.2% 95.2 in % of Production output 1.2% 0.8% 0.3PP
Slide 38: Key Ratios
Key Ratios EUR m HY 2022 HY 2021 % HY 22/21 2021 Production output1 2,765.8 2,496.1 10.8% 5,727.3 Revenue 2,595.9 2,288.3 13.4% 5,169.8 Ratio of profit/loss of companies at equity 1.3% 1.1% 0.2PP 1.1% Material cost ratio2 (62.5%) (58.5%) (4.0PP) (60.2%) Personnel cost ratio (24.2%) (24.9%) 0.7PP (22
Slide 39: Balance Sheet Key Figures
Balance Sheet Key Figures EUR m 30.06.2022 31.12.2021 30.06.2021 Non-current assets 1,437.0 1,448.9 1,312.9 Assets Current assets 2,597.6 2.616.1 2,306.9 Total assets 4,034.7 4,065.0 3,619.8 Equity1 742.1 824.4 654.1 Equity & liabilities Non-current liabilities 790.2 826.1 787.6 Current liabilities
Slide 40: Balance Sheet Assets
Balance Sheet Assets EUR m 30.06.2022 31.12.2021 % Δ ‘22 30.06.2021 Intangible assets 186.5 187.5 (0.5%) 154.0 Property, plant and equipment 1,040.0 1,028.7 1.1% 953.1 Non-current assets Investment property 24.4 25.5 (4.2%) 29.4 Shareholdings in comp. acc. f. u. t. equity method 82.5 85.4 (3.4%) 88.
Slide 41: Equity and Liabilities
Equity and Liabilities EUR m 30.06.2022 31.12.2021 % Δ ‘22 30.06.2021 Share capital 39.3 39.3 - 29.1 Capital reserve 358.8 358.8 - 251.3 Profit-participation rights/hybrid capital 246.5 300.0 (17.8%) 318.4 Equity Other reserves 63.0 92.5 (31.9%) 38.9 Non-controlling interest 34.4 33.9 1.7% 16.4 Tota
Slide 42: Balanced Maturity Profile as of 30.06.2022
Balanced Maturity Profile as of 30.06.2022 Maturity profile in EUR m 11 127 13 55 7 31 7 12 33 5 8 14 10 8 12 6 6 12 3 2022 2023 2024 2025 2026 from 2027 Term loans Leasing Construction Equipment Short-term project related SSD floating SSD fixed Investor Presentation August 2022 42
Slide 43: Top Order Intakes 2021/2022
Top Order Intakes 2021/2022 • Alexander Tower, Berlin/DE/240.0m • Drammen Bybrua, Drammen/NO/79.4m • Revitalisation Auenfeld barracks/CH/87.5m • ARGE Stadtstraße, Vienna/AT/77.6m • D1 expressway Višnové/SK/68.2m • A9 express way general renovation, Edlach- Gaishorn/AT/59.1m • Plant extension Daiichi
Slide 44: Coverage
Coverage Institution Analysts Price Target Recommendation Last Update FMR Research Winfried Becker 17.4 Buy 15.06.2022 Raiffeisen Bank Markus Remis 17.5 Buy 07.06.2022 International Warburg Research Jonas Blum 21.0 Buy 01.06.2022 Kepler Cheuvreux Torsten Sauter 13.75 Hold 31.05.2022 Stefan Scharff S
Slide 45: Investor Relation Information for PORR AG
Investor Relation Information for PORR AG Share Information Financial Calendar Share price1 EUR 11.96 18 Nov 2022: Interest payment Hybrid bond 2021 Market capitalisation EUR 469.8m Official market Vienna Stock Exchange 28 Nov 2022: Publication Prime Market Interim Report on the 3rd Quarter 2022 Num