Porr Ag · VIE:POS
Porr — FY2023 Earnings Presentation
39 slides from Porr's earnings presentation, Mar 21, 2024
Slide 1: Home of Construction – Investor Presentation FY Results 2023
HOME OF CONSTRUCTION Investor Presentation: FY Results 2023 March 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: FY Results 2023 21.03.2024 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 MO L #3 Full-Service #6 Provider NO IS H RE #2 OPERATE #1 #7 #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% EBIT margin to sales Ma
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 Desing-build contractor – one- Clear commitment to and technologies stop shop for every process ecological, environmentally- friendly co
Slide 7: Facts & Figures FY Results 2023
2 Facts & Figures FY Results 2023 Investor presentation: FY Results 2023 21.03.2024 I 7
Slide 8: 2023 at a Glance
2023 AT A GLANCE 1 Positive market outlook Steady increase in order intake 4 Optimised equity 20.8% equity ratio (+1.5 PP) 2 5 Strong order book Enhanced working High demand in infrastructure and capital management industrial construction Receivables significantly reduced 3 Earnings increase at ever
Slide 9: Positive Market Outlook – Steady Increase in Order Intake
POSITIVE MARKET OUTLOOK STEADY INCREASE IN ORDER INTAKE Rebound in European construction in 2025 PORR‘s order intake (in EURm) 2.5% 2.5% CAGR: +5.0% 2.3% 1.7% 1.6% 6,414 6,659 6,835 Annual growth rates 1.5% 1.3% 1.4% 0.9% 5,905 0.0% 59% 52% 30% 24% -2.1% 7% 6% 12% 11% -5.4% 2024e 2025e 2026e 2020 20
Slide 10: Top Order Intakes 2023
TOP ORDER INTAKES 2023 Civil engineering Other Non-residential construction Residential construction Q1 Q2 Q3 Q4 ams-Osram fabric halls Arge H53 Brenner Pumped storage Elisabeth-Selbert-Haus Premstätten / AT / 49.5m Base Tunnel power plant office building AT / 479.6m Ebensee / AT / 167.0m Berlin / D
Slide 11: Strong Order Book
STRONG ORDER BOOK Order backlog (in EUR m) CAGR: +6.1% 8,204 8,452 7,764 7,067 58% 60% 24% 30% 5% 11% 4% 8% C+ / Prime Segment 2020 2021 Top 10 % der Branche 2022 2023 Miscellaneous Residential Non-residential Civil engineering ▪ Continued positive development in civil engineering and non-residentia
Slide 12: Earnings Increase at Every Level
EARNINGS INCREASE AT EVERY LEVEL REVENUE GROWTH AND EFFICIENT COST MANAGEMENT Production output per segment (in EUR m) EBT & EBIT (in EUR m) EBT (in % of output), EBIT (in % of revenue) CAGR: +8.2% 6,577 130.7 140.3 6,226 110.0 120.1 5,727 85.4 95.2 5,185 2.0% 2.3% 51% 1.5% 1.8% 1.8% 2.1% 52% 15% -1
Slide 13: Efficient Cost Control
EFFICIENT COST CONTROL SUCCESSFULL PROCUREMENT MANAGEMENT Cost indices stablising on high levels PORR‘s cost ratios in % of revenue 108 Indexed per 2021 130 47% 120 100 24% 110 21% 93 100 90 85 Dez.21 Jun.22 Dez.22 Jun.23 Dez.23 Dez.21 Jun.22 Dez.22 Jun.23 Dez.23 AT: Road construction AT: Residentia
Slide 14: Balance Sheet Structure
BALANCE SHEET STRUCTURE OPTIMISED EQUITY, REDUCTION IN HYBRID CAPITAL Equity (in EUR m) Hybrid capital (nominal value in EUR m) 860 824 799 240 Hybrid share: 29% 200 651 154 20.8% 135 20.3% 19.3% 18.0% 2020 2021 2022 2023 2023 2024 2025 2026 ▪ Equtiy ratio in target range of 20-25% ▪ Refinancing of
Slide 15: Working Capital Management on Point
WORKING CAPITAL MANAGEMENT ON POINT NET CASH POSITION MAINTAINED Net debt (-) / Net cash (+) (in EUR m) Working Capital (in EUR m) 65 59 40 202 Net cash position 91 15 9 -135 2020 2021 2022 2023 2020 2021 2022 2023 ▪ Stable net cash position of last 3 years ▪ Consequent working capital management ▪
Slide 16: High Liquidity Cushion
HIGH LIQUIDITY CUSHION PROVIDING SECURITY IN VOLATILE MARKET ENVIRONMENT Liquidity (in EUR m) Maturity profile (in EUR m) 1,008 1,037 5 949 862 203 293 405 240 83 9 805 32 10 622 656 632 4 3 28 11 6 6 4 4 7 2024 2025 2026 2027 2028 >2029 2020 2021 2022 2023 Σ 13 6 45 3 116 28 Cash and cash equivalen
Slide 17: All-Time High in Earnings per Share
ALL-TIME HIGH IN EARNINGS PER SHARE UPLIFT POTENTIAL FOR SHARE PRICE Share price Earnings per share 20.2.2017 40 EUR 38.99* Analyst‘s recommendation: 3,00 7x BUY Earnings per share in EUR 30 1,50 Share price in EUR 20 0,00 10 -1,50 1.1.2014 18.3.2024 EUR 9.98* EUR 13.10 0 -3,00 2014 2015 2016 2017 2
Slide 18: Dividend Proposal
DIVIDEND PROPOSAL 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 * Proposal to the AGM Investor presentation: FY Resu
Slide 19: Outlook 2024
OUTLOOK 2024 RESILIENCE. Strong oder book Moderate increase in output Improvement in earnings Investor presentation: FY Results 2023 20.03.2024 I 19 21.03.2024
Slide 20: Strategy: Intelligent Growth with Green and Lean
3 Strategy Intelligent Growth with Green and Lean Investor presentation: FY Results 2023 21.03.2024 I 20
Slide 21: PORR 2025 on Track
PORR 2025 ON TRACK IMPORTANT MILESTONES IN FUTURE PROGRAMME REACHED Milestones 2023 Measures 2025 Markets ▪ Promote sustainable construction ▪ Selective M&A: Pannonia Group, Sanitär Elementbau ▪ Extend value chain and permanent business ▪ 10% of projects from energy transition ▪ Optimise portfolio m
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: FY Results 2023 21.03.2024 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: 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: FY Results 2023 21.03.2024 I 29
Slide 30: Earnings and Output 2023 per Segment
EARNINGS AND OUTPUT 2023 PER SEGMENT IN EUR M PL DE INFRA Output EBT Output EBT Output EBT 1,012 18.5 392 18.1 1,009 8.2 Poland +28% -13% -24% >+100% +17% >+100% Germany Czech Republic Slovakia CEE* Output EBT Austria AT / CH 678 19.7 Switzerland Output EBT +3.8% +68% 3,380 92.0 Romania +3.4% +8.6%
Slide 31: Segment Reporting – Resilient Order Book
SEGMENT REPORTING RESILIENT ORDER BOOK AT /CH DE PL CEE INFRA Order intake Order backlog Change in % in EUR m 3,159 1,337 1,384 849 1,630 -2.5% -6.8% -5.5% -1.9% +62.6% 3,225 911 931 652 1,040 Change in % in EUR m -8.1% -15.1% +18.3% -14.1% >+100% Cancellation of Strong intake in Major intakes in St
Slide 32: Key Financials at a Glance
KEY FINANCIALS AT A GLANCE Operating data in EUR m 2023 Change 2022 2021 2020 Production output1 6,577 5.6% 6,226 5,727 5,185 Revenue 6,048.5 4.5% 5,786.0 5,169.8 4,651.8 EBIT 140.3 16.8% 120.1 95.2 -37.2 EBT 130.7 18.8% 110.0 85.4 -51.0 Net profit 95.0 15.0% 82.6 61.4 -42.4 EPS 2.21 34.3% 1.65 1.18
Slide 33: Consolidated Income Statement
CONSOLIDATED INCOME STATEMENT in EUR m 2023 Change 2022 2021 2020 Production output1 6,577 5.6% 6,226 5,727 5,185 Revenue 6,048.5 4.5% 5,786.0 5,169.8 4,651.8 EBITDA 344.3 8.0% 318.9 287.5 131.4 in % of production output 5.2% 0.1 PP 5.1% 5.0% 2.5% in % of revenue 5.7% 0.2 PP 5.5% 5.6% 2.8% EBIT 140.
Slide 34: Consolidated Key Ratios
CONSOLIDATED KEY RATIOS In relation to production output 2023 Change 2022 2021 2020 Income from companies accounted for 1.5% 0.6 PP 0.9% 1.1% 0.7% using the equity method Material cost -19.6% 2.4 PP -22.0% -19.9% -19.0% Cost of other related production services -43.4% -1.0 PP -42.4% -40.3% -41.1% Pe
Slide 35: Consolidated Statement of Financial Position
CONSOLIDATED STATEMENT OF FINANCIAL POSITION Assets in EUR m 31.12.2023 Change 31.12.2022 31.12.2021 31.12.2020 Intangible assets 185.4 -4.5% 194.1 187.5 147.9 Property, plant and equipment 1,166.4 10.5% 1,055.3 1,028.7 926.8 Investment property 35.0 3.0% 33.9 25.5 31.4 Shareholdings in companies ac
Slide 36: Consolidated Statement of Financial Position
CONSOLIDATED STATEMENT OF FINANCIAL POSITION Equity and Liabilities in EUR m 31.12.2023 Change 31.12.2022 31.12.2021 31.12.2020 Share capital 39.3 - 39.3 39.3 29.1 Capital reserve 358.8 - 358.8 358.8 251.3 Profit-participation rights/hybrid capital 247.5 -0.0% 247.5 300.0 325.9 Other reserves 189.3
Slide 37: International Shareholder Base
INTERNATIONAL SHAREHOLDER BASE STABLE CORE SHAREHOLDER Shareholder Distribution of structure free float 50.4% 13.4% 24.7% Syndicate* Not directly Austria assignable 49.6% Free float** 6.5% Germany 33.8% 8.3% Retail Rest of Europe 0.9% 9.3 % Rest of the world USA *Syndicate (Strauss Group, IGO Indust
Slide 38: Broker Coverage
BROKER COVERAGE ANALYSTS‘S RECOMMENDATIONS Institution Analysts Price Target Recommendation Last Update Montega Patrick Speck 20.0 Buy 16.02.2024 ERSTE Group Michael Marschallinger 18.7 Buy 15.02.2024 Raiffeisen Bank International Markus Remis 19.0 Buy 08.02.2024 Warburg Research Philipp Kaiser 27.0
Slide 39: Service – Investor Relations
SERVICE INVESTOR RELATIONS Share information Next events 30-Apr-24 144 Annual General th ISIN AT0000609607 Ticker POS VI Meeting No. of shares 39,278,250 22-May-24 Ex-dividend Market Vienna Stock 07-May-24 Publication of report Exch. / prime on 1st quarter C+ / Prime Segment Top 10 % der Branche IR