Slide 1: STRABAG SE Investor Presentation December 2016
STRABAG SE INVESTOR PRESENTATION DECEMBER 2016
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 THE CONSTRUCTION 3 THE STRABAG SECTOR WITHIN STRATEGY & EVOLVING GLOBAL INVESTMENT THEMES PROPOSITION 4 FINANCIAL 5 APPENDIX PERFORMANCE Investor Presentation December 2016 Page 3
Slide 4: STRABAG at a Glance
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Slide 5: STRABAG at a Glance
STRABAG AT A GLANCE FACTS & FIGURES MARKETS ● Output volume 2015: € 14.3 bn ● Net income 2015: € 182 m ● 73,000 employees ● > 700 locations in more than 80 countries ● Highly innovative: Central Technical Division with over 885 engineers ● Equity ratio: > 30% ● Strong brands: STRABAG & Züblin #1 #2
Slide 6: Largest Projects in Progress
LARGEST PROJECTS IN PROGRESS NO SPECIFIC EXPOSURE TO ANY LARGE PROJECT (FEB. 2016) As % of Order total Country Project backlog order in €m backlog ltaly Pedemontana motorway 815 6.2 Stuttgart 21, underground Germany railway station 285 2.2 Chile Alto Maipo hydropower complex 267 2.0 Alto Maipo hydro
Slide 7: Flagship Projects – Examples
FLAGSHIP PROJECTS – EXAMPLES TAMINA BRIDGE – PPP-MOTORWAY N17/N18 SWITZERLAND – IRELAND Building of an arch bridge Financing, planning, building and operating Size: € 18 m Size: € 330 m Project schedule: 2013–2017 Project schedule: 2014–2017 Project scope: 475 m long arch bridge with a span of 260 m
Slide 8: Flagship Projects – International
FLAGSHIP PROJECTS – INTERNATIONAL HYDROELECTRIC POWER CONTAINER PORT – PLANT – CHILE MAURITIUS Size: € 366 m Size: € 45 m (=50% share) Project schedule: 2014–2017 Project schedule: 2014–2016 Project scope: all earth and Project scope: new berthing concrete works for the intake quay, quay facilities,
Slide 9: Business Segment Contribution 2015
BUSINESS SEGMENT CONTRIBUTION 2015 International + North + West South + East Special Divisions 23% of 44% of output output volume volume 32% of output volume Austria, Switzerland, Hungary, Czech Republic, Slovakia, International, Tunnelling, Adriatic, Rest of Europe, Services, Real Estate Germany, P
Slide 10: Key Financials
KEY FINANCIALS (€m) 2015 2014 % Output volume 14,290 13,566 5 Revenue 13,123 12,476 5 EBITDA 816 720 13 EBIT 341 282 21 Net income after minorities 156 128 22 Cash flow from operating activities 1,240 805 54 Cash flow from investing activities -320 -435 26 Balance sheet total 10,729 10,276 4 Group
Slide 11: Comprehensive Country Network
COMPREHENSIVE COUNTRY NETWORK INTEGRATED MODEL TAKES ADVANTAGE OF ● local management skills ● market knowledge ● cost and efficiency synergies ● risk diversification COMPREHENSIVE COUNTRY NET WORK ENABLES STRABAG TO ● make more use of technology and machinery ● follow clients around the world Only c
Slide 12: The Construction Sector within Evolving Global Themes
2 THE CONSTRUCTION SECTOR WITHIN EVOLVING GLOBAL THEMES
Slide 13: Three European Trends: (1) Urbanisation / Demographics
THREE EUROPEAN TRENDS: (1) URBANISATION / DEMOGRAPHICS GERMANY: DAILY TRAFFIC LOAD 2025F ● By 2050 66% of the global population will live in cities (today: 54%) – an increase of the urban population by 2.5 billion. Higher need for infrastructure ● Significant need for rehabilitation and extension of
Slide 14: Example: Motorway Density in Different Markets
EXAMPLE: MOTORWAY DENSITY IN DIFFERENT MARKETS 45 km motorway / 1,000 km2 0 Slovenia Germany Croatia Austria Hungary Czech Slovakia Bulgaria Poland Romania Republic 1995 2005 2012 Source: Eurostat, Wikipedia Investor Presentation December 2016 2 Page 14
Slide 15: Three European Trends: (2) Energy / Sustainability
THREE EUROPEAN TRENDS: (2) ENERGY / SUSTAINABILITY ● Kyoto Protocol: Current commitment period 2013–2020; 37 countries with binding emissions reduction targets (mostly in Europe) ● EU: Greenhouse gas emissions to be cut by 20% until 2020 (vs. 1990), planned reduction of 80–95% by 2050 ● Construction
Slide 16: Three European Trends: (3) Financial Environment
THREE EUROPEAN TRENDS: (3) FINANCIAL ENVIRONMENT ● Historically low interest rates and highly volatile financial environment make real estate an attractive investment alternative for some investor groups ● Low financing costs facilitate investment into real estate STRABAG Real Estate Development Tan
Slide 17: Construction Segments with Own Business Models and Cycles
CONSTRUCTION SEGMENTS WITH OWN BUSINESS MODELS AND CYCLES CONSTRUCTION SUBSEGMENTS GERMANY STRABAG CLIENT STRUCTURE 10% Private 33% 0% 2012 2013 2014 2015e 2016e Public 67% -10% Residential Other building construction Civil CONSTRUCTION OUTPUT BY COUNTRIES ● Public client: 10% The price is mostly th
Slide 18: Selection Criteria in Construction
SELECTION CRITERIA IN CONSTRUCTION Clients’ selection criteria Technology Price Financial strength & Innovation Experience and Construction References Know-how of employees materials supply Investor Presentation December 2016 2 Page 18
Slide 19: The STRABAG Strategy & Investment Proposition
3 THE STRABAG STRATEGY & INVESTMENT PROPOSITION
Slide 20: A European-Based Technology Group for Construction Services
A EUROPEAN-BASED TECHNOLOGY GROUP FOR CONSTRUCTION SERVICES “STRABAG is a European-based technology group for construction services, a leader in innovation and financial strength. We create added value for our clients by integrating the most diverse services and assuming responsibility for them: We
Slide 21: Six Strategic Fields
SIX STRATEGIC FIELDS Investor Presentation December 2016 3 Page 21
Slide 22: The STRABAG Investment Proposition
THE STRABAG INVESTMENT PROPOSITION (1) Margin Upside Strategic priority: Strengthening risk and opportunity management Strategic priority: Implementing efficiency-rising measures proposed by task force (2) Flexible Business Model, Selective Diversity Strategic priority: Showing flexibility S
Slide 23: (1) Margin Upside: Targets
(1) MARGIN UPSIDE: TARGETS MID-TERM TARGET OF 3% EBIT MARGIN FOCUS ON MARGIN, NOT ON TOP LINE 12% 4% 12% 5% 3.0% 2.6% 0% 2.4% 2.3% 2.1% -2% -3% 1.6% 0% -5% 2011 2012 2013 2014 2015 2016 2011 2012 2013 2014 2015 ● Task Force ● Output volume 2015: € 14.3 bn (up 5% vs. 2014) Streamline overhead costs
Slide 24: (1) Margin Upside: Risk Management
(1) MARGIN UPSIDE: RISK MANAGEMENT RISK MANAGEMENT INSTRUMENTS TYPES OF CONTRACTS ● Four-eyes-principle ● Joint Venture with the client ● Internal price committees (including a ● Cost + fee STRABAG SE board member when project ● Guaranteed maximum price volume ≥ € 70 m) ● Lump-sum ● Internal Audits
Slide 25: Resilience over a Volatile Period
(2) FLEXIBLE BUSINESS MODEL, SELECTIVE DIVERSITY: RESILIENCE OVER A VOLATILE PERIOD OUTPUT VOLUME (€M) ORDER BACKLOG (€M) 20,000 20,000 14,326 14,043 13,566 14,290 13,470 14,403 13,573 13,354 13,203 13,135 0 0 2011 2012 2013 2014 2015 2011 2012 2013 2014 2015 EBITDA (€M) AND EBITDA MARGIN (%) EBIT (
Slide 26: Subcontracting and Portfolio Mix
(2) FLEXIBLE BUSINESS MODEL, SELECTIVE DIVERSITY: SUBCONTRACTING AND PORTFOLIO MIX SUBCONTR. BUILDING & CIVIL ENGINEERING SUBC. TRANSPORTATION INFRASTRUCTURE Sub- contractors 30% Own 40% Sub- contractors 60% Own 70% DIVERSIFIED PORTFOLIO BALANCES CYCLICAL/PROJECT-DRIVEN NATURE OF CONSTRUCTION Projec
Slide 27: Own Dense Construction Materials Network
(2) FLEXIBLE BUSINESS MODEL, SELECTIVE DIVERSITY: OWN DENSE CONSTRUCTION MATERIALS NETWORK STRABAG FACILITIES(1) OWN COVERAGE OF MATERIAL NEEDS (%) ● Asphalt mixing plants 275(2) 100% 81% 82% ● Concrete mixing plants 146(2) ● Total quarries and gravel pits 167(2) ● Cement mixing plants 5(3) 27% 28%
Slide 28: Steady Income through Concession Business
(2) FLEXIBLE BUSINESS MODEL, SELECTIVE DIVERSITY: STEADY INCOME THROUGH CONCESSION BUSINESS NUMBER OF STRABAG’S PPP(1) PROJECTS SELECTED PPP PROJECTS 50 35 36 36 37 34 0 2011 2012 2013 2014 2015 Vocational schools, Germany Motorway A8, Germany TOTAL CONCESSION PPP STRATEGY COUNTRY PROJECT COST (€M)
Slide 29: Property & Facility Services
(2) FLEXIBLE BUSINESS MODEL, SELECTIVE DIVERSITY: PROPERTY & FACILITY SERVICES TARGET MARKETS KEY FACTS 2015 ● Output 2015: € 1.116 m ● ~ 14,500 employees ● Acquisition of Vodafone portfolio ● Active in 12 countries ● “Top Arbeitgeber in Deutschland” (Top Employer in Germany) ● #2 market position in
Slide 30: BIM.5D Could Be Revolution in Construction
(2) OFFERING TECHNOLOGY AND SUSTAINABILITY: BIM.5D® COULD BE REVOLUTION IN CONSTRUCTION 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 companies in
Slide 31: Intelligent Process Engineering
(2) OFFERING TECHNOLOGY AND SUSTAINABILITY: INTELLIGENT PROCESS ENGINEERING ● BIM.5D® also applicable for road construction projects ● Targets: Intelligent and autonomous construction equipment Collection and analysis of all relevant data in one cloud Optimal coordination of all interfaces ● P
Slide 32: Case Study – Central Technical Division / TPA
(2) OFFERING TECHNOLOGY AND SUSTAINABILITY: CASE STUDY – CENTRAL TECHNICAL DIVISION / TPA STRABAG AND PEERS: R&D/TECHNICAL DIVISION STAFF HEADCOUNT(1) 1600 ● Central Technical Division – organisation in Number of employees charge of planning and execution of R&D projects 800 Central Technical Divisi
Slide 33: Example on Non Financial Targets – Women
(2) OFFERING TECHNOLOGY AND SUSTAINABILITY: EXAMPLE ON NON FINANCIAL TARGETS – WOMEN GROW SHARE OF WOMEN IN TOTAL EMPLOYMENT AND MANAGEMENT POSITIONS EACH YEAR 16% 13.9% 13.8% 8.7% 8.5% 0% 2015 2014 Women as % of staff Women as % of management Investor Presentation December 2016 3 Page 33
Slide 34: Financial Strength as Competitive Advantage
(3) FINANCIAL STRENGTH AS COMPETITIVE ADVANTAGE ● 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 July 2016 stable margins in an other
Slide 35: Financial Strength: Diversified Financing
(3) FINANCIAL STRENGTH: DIVERSIFIED FINANCING DEBT REPAYMENT PROFILE (€M) DIVERSIFIED MEANS OF FINANCING 400 ● Cash and surety credit lines (31 December 2015): € 7.1 bn (thereof cash credit lines of 175.00 200.00 200.0 € 0.4 bn) 18.50 108.50 ● Bond issue: € 200 m, 1.625%, 2015-2022 13.00 100.00 ● €
Slide 36: Attractive Dividends: Consistent Payout Ratio
(4) ATTRACTIVE DIVIDENDS: CONSISTENT PAYOUT RATIO NET INCOME A.M. (€M) AND MARGIN (%) DIVIDEND (€) AND PAYOUT RATIO (%) 300 €2 100% 22% 195 156 128 41% 40% 43% 114 34% 34% 1.4% 1.2% 61 0.65 1.0% 0.60 0.9% 0.45 0.50 0.5% 0.20 0 €0 0% 2011 2012 2013 2014 2015 2011 2012 2013 2014 2015 EARNINGS PER SHAR
Slide 37: Attractive Dividends: Total Shareholder Return 2011–2015
(4) ATTRACTIVE DIVIDENDS: TOTAL SHAREHOLDER RETURN 2011–2015 Dividend policy: 30-50% of net income after 30% minorities distributed as a dividend 2.8% Ø dividend -14.7% yield: 2.7% 2.9% 2.9% 2.1% 7.9% 4.1% 25.0% 3.0% 2.8% 2.7% -7.6% -14.7% -14.7% -20% 2011 2012 2013 2014 2015 Return from share price
Slide 38: Financial Performance
| lead | | | . _ @ FINANCIAL , _ PERFORMANCE " Los Ss . Ss — So - ke ~~ s Soo . : \ ~ hk > IY af ss a . oa _y - 1 — a ~ = ; SS z sf 4 SS 1 \ ies ate : - . ‘ ‘ . i 4 > P > ‘ ° STRABAG SOCIETAS EUROPAEA
Slide 39: Output Volume Down, Order Backlog Up
OUTPUT VOLUME DOWN, ORDER BACKLOG UP OUTPUT VOLUME (€M) 20,000 ● High level last year -7% 14,290 ● Lower output primarily in CEE 9,561 10,256 0 9M/16 9M/15 2015 ORDER BACKLOG (€M) 20,000 +9% ● Plus of 30 % in Germany 14,991 13,761 ● Russia, Romania and Denmark declined 13,135 0 9M/16 9M/15 2015 Inve
Slide 40: EBITDA and EBIT Positively Impacted by One-Off
EBITDA AND EBIT POSITIVELY IMPACTED BY ONE-OFF, UNDERLYING EARNINGS HIGHER AS WELL EBITDA (€M) 850 816 ● Non-operating profit of € 27.81 million impacted 12% EBITDA (+12 %) and EBIT (+52 %) 450 404 ● Large-scale projects no longer a burden, improved earnings from South-East European markets ● EBITDA
Slide 41: Earnings per Share Nearly Doubled
EARNINGS PER SHARE NEARLY DOUBLED NET INCOME AFTER MINORITIES (€M) EARNINGS PER SHARE (€) 200 79% 2 79% 156 1.52 104 1.02 58 0.57 9M/16 9M/15 2015 9M/16 9M/15 2015 -200 -2 ● Little change in net interest income ● Tax rate 35.5 % ● Remaining minority interest after acquisition of minorities of Ed. Zü
Slide 42: Reduction of Minority Interests and Corresponding Decrease in Cash
REDUCTION OF MINORITY INTERESTS AND CORRESPONDING DECREASE IN CASH ASSETS(1) LIABILITIES AND EQUITY(1) (€m) 9M/16 2015 (€m) 9M/16 2015 Intangible assets 505 511 Share capital 110 114 PP&E & investment property 1,979 1,895 Capital reserves 2,232 2,311 Associated companies 362 373 Retained earnings 65
Slide 43: Increased Cash Flow from Earnings, Higher Working Capital Needs
INCREASED CASH FLOW FROM EARNINGS, BUT SIGNIFICANTLY HIGHER WORKING CAPITAL NEEDS (€m) 9M/16 ∆% 9M/15 Cash – beginning of period 2,727 43 1,906 Cash flow from earnings 350 20 311 ∆ Working Capital -920 -119 -419 Cash flow from operating activities -570 -427 -108 Cash flow from investing activities -
Slide 44: North + West: Losses Contained Significantly
NORTH + WEST: LOSSES CONTAINED SIGNIFICANTLY KEY INDICATORS COMMENTS (€m) 9M/16 ∆% 9M/15 ● Output volume -4%: relatively high last year 4,387 4,569 Output volume -4 ● Hydraulic engineering projects no longer a burden Revenue 4,168 -2 4,257 and project in the Netherlands – loss in EBIT Order backlog
Slide 45: South + East: EBIT Lower as Last Year Included Aperiodic Income
SOUTH + EAST: EBIT LOWER AS LAST YEAR INCLUDED APERIODIC INCOME KEY INDICATORS COMMENTS (€m) 9M/16 ∆% 9M/15 ● Output volume down by 11%, mostly in CEE Output volume 2,886 -11 3,256 ● EBIT 11% lower than last year, when aperiodic income 2,778 had been registered Revenue -11 3,119 3,548 ● Order backlo
Slide 46: International + Special Divisions: Hampered by Low Oil Price
INTERNATIONAL + SPECIAL DIVISIONS: BUSINESS OUTSIDE OF EUROPE HAMPERED BY LOW OIL PRICE KEY INDICATORS COMMENTS (€m) 9M/16 ∆% 9M/15 ● Output volume shrank by 6%, especially in Italy and 2,196 2,332 non-European markets Output volume -6 Revenue 1,973 -5 2,085 ● EBIT more or less unchanged Order backl
Slide 47: Highly Seasonal Business
HIGHLY SEASONAL BUSINESS QUARTERLY DEVELOPMENT OF OUTPUT VOLUME AND EBIT (€M) 4500 4,075 4,051 4,020 3,932 3,966 3,964 3,932 3,884 3,854 3,736 3,508 3,436 3,420 6.2% 6.1% 5.6% EBIT margin(1) 2,468 5.4% 2,344 2,257 2,135 4.9% 4.9% 4.7% 4.4% 3.2% 3.9% 2.6% 1.7% 1.6% 205 -7.0% -6.8% 168 162 223 -7.6% 1
Slide 48: Output Volume 2015 Rose by 5%
OUTPUT VOLUME 2015 ROSE BY 5% OUTPUT VOLUME (€M) 20,000 5% ● Output volume rose by 5% to € 14.3 bn 14,290 13,566 ● Germany and Austria still the two largest single markets ● Slovakia, Czech Republic, Poland and Hungary stood out with especially high gains 0 2015 2014 OUTPUT VOLUME 2015 BY REGION Res
Slide 49: Order Backlog Down – Put Profitability before Revenue
ORDER BACKLOG DOWN – “PUT PROFITABILITY BEFORE REVENUE” ORDER BACKLOG (€M) 20,000 ● Completion of large projects in Hungary, Italy and -9% 14,403 Slovakia 13,135 ● Adverse economic environment in the RANC region (Russia and Neighbouring Countries) ● “Put profitability before revenue” means opting ag
Slide 50: Further Step towards 3% EBIT Margin
FURTHER STEP TOWARDS 3% EBIT MARGIN EBITDA (€M) AND EBITDA MARGIN (%) 900 13% 816 ● Higher earnings compared to previous year in 720 Poland, Czech Republic and Slovakia amongst others ● Increases despite burdening tunnelling project in 6.2% 5.8% Chile 0 2015 2014 EBIT (€M) AND EBIT MARGIN (%) 900 ●
Slide 51: Earnings per Share: € 1.52
EARNINGS PER SHARE: € 1.52 NET INCOME A. MINORITIES (€M) & MARGIN (%) EARNINGS PER SHARE (€) 200 2 22% 22% 1.52 156 128 1.25 1.2% 1.0% 0 0 2015 2014 2015 2014 ● Net interest income at about the same level of the previous year: € -24 m versus € -26 m ● Again high income tax rate of 42.4% due to the l
Slide 52: Group Income Statement 2015
GROUP INCOME STATEMENT 2015 (€m) 2015 2014 ∆% Output volume 14,289.76 13,566.00 5 Revenue 13,123.48 12,475.67 5 Changes in inventories/own work capitalised -20.43 -25.66 20 Other operating income 221.46 225.21 -2 Construction materials, consumables and services used -8,619.03 -8,163.25 -6 Personnel
Slide 53: Group Income Statement 2015 (cont.)
GROUP INCOME STATEMENT 2015 (CONT.) (€m) 2015 2014 ∆% EBITDA 816.10 719.94 13 Margin (%) 6.2 5.8 Depreciation and amortisation -475.06 -437.98 -8 EBIT 341.04 281.96 21 Margin (%) 2.6 2.3 Net interest income -24.42 -26.20 7 Income tax expense -134.13 -108.26 -24 Net income 182.49 147.50 24 Attributab
Slide 54: Equity Ratio Remains High at 31%
EQUITY RATIO REMAINS HIGH AT 31% ASSETS(1) LIABILITIES AND EQUITY(1) (€m) 2015 2014 (€m) 2015 2014 Intangible assets 511 536 Share capital 114 114 PP&E & investment property 1,895 2,048 Capital reserves 2,311 2,311 Associated companies 373 402 Retained earnings 614 459 Other financial assets 202 233
Slide 55: Net Cash Increased, High Equity Ratio
NET CASH INCREASED, HIGH EQUITY RATIO NET DEBT (+)/NET CASH (-) (€M) EQUITY RATIO (%) 1,300 0 40 30.3 31.2 30.7 30.6 31.0 155 0 -74 -268 -249 -1,300 -1,094 0 2011 2012 2013 2014 2015 2011 2012 2013 2014 2015 ● Equity ratio at 31%; target: ≥ 25% ● Net cash position increased – uncharacteristically hi
Slide 56: Cash and Cash Equivalents Raised from € 1.9 bn to € 2.7 bn
CASH AND CASH EQUIVALENTS RAISED FROM € 1.9 BN TO € 2.7 BN (€m) 2015 ∆% 2014 Cash – beginning of period 1,906 13 1,685 Cash flow from earnings 658 6 620 ∆ Working Capital 582 215 185 Cash flow from operating activities 1,240 54 805 Cash flow from investing activities -320 26 -435 Cash flow from fina
Slide 57: Cash at € 2.7 Billion
CASH AT € 2.7 BILLION CASH DEVELOPMENT (€M) COMMENTS 4,000 ● Working capital improvement influenced by 1,240 uncharacteristically high project-related advance 12 2,727 payments -320 -117 1,906 -6 ● Higher investments in property, plant and equipment ● No larger acquisitions in 2015 0 Cash CFO CFI CF
Slide 58: Successful Working Capital Management
SUCCESSFUL WORKING CAPITAL MANAGEMENT WORKING CAPITAL PATTERN: CASH OUTFLOWS IN Q1–3; INFLOWS IN Q4 (€M) 1,200 1,001 546 552 0 -19 -49 -114 -127 -124 -209 -139 -107 -172 -263 -330 -418 -1,200 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2013 2014 2015 2016 COMMENTS ● Working capital outflows general
Slide 59: Free Cash Flow of € 920 m
FREE CASH FLOW OF € 920 M ∆ WORKING CAPITAL (€M) CFO VS. CFI (€M) CFI VS. DEPRECIATION (€M) 700 582 1,500 1,000 1,240 181 185 805 694 433 435 438 475 0 332 320 435 332 320 0 0 2013 2014 2015 2013 2014 2015 -700 2013 2014 2015 ● FCF positive (CFO-CFI) ● Purchase of PP&E at € 396 million (2014: € 346
Slide 60: North + West: Earnings Significantly Better Following a Weak 2014
NORTH + WEST: EARNINGS SIGNIFICANTLY BETTER FOLLOWING A WEAK YEAR 2014 KEY INDICATORS COMMENTS (€m) 2015 ∆% 2014 ● Output volume nearly unchanged yoy: growth in Output volume 6,368 1 6,292 Poland, Germany stable, declines in Sweden and 5,895 Benelux Revenue 3 5,719 Order backlog 5,397 -5 5,682 ● EBI
Slide 61: South + East: Positive Earnings, Lower Volume of New Orders
SOUTH + EAST: POSITIVE EARNINGS, BUT LOWER VOLUME OF NEW ORDERS KEY INDICATORS COMMENTS (€m) 2015 ∆% 2014 ● Output volume increased significantly: large Output volume 4,535 9 4,171 projects in Slovakia and Czech Republic Revenue 4,412 10 3,997 ● Strong market positions: No. 1 in home market Order ba
Slide 62: International + Special Divisions: Volatile Project Business
INTERNATIONAL + SPECIAL DIVISIONS: VOLATILE PROJECT BUSINESS KEY INDICATORS COMMENTS (€m) 2015 ∆% 2014 ● Output volume up 9% due to acquisition of DIW 3,250 and increases in the non-European markets Output volume 9 2,970 Revenue 2,791 2 2,738 ● Volatile project business results in fluctuating EBIT;
Slide 63: Appendix
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Slide 64: Output Volume by Country
OUTPUT VOLUME BY COUNTRY (€m) 2011 2012 2013 2014 2015 CAGR(1) (%) Germany 5,609 5,779 5,789 6,080 6,256 3 Austria 1,985 1,888 1,982 2,058 2,003 0 Poland 1,719 1,139 787 817 941 -14 Czech Republic 769 646 645 620 765 0 Slovakia 441 400 340 427 716 13 Hungary 436 393 496 544 594 8 Scandinavia 512 579
Slide 65: STRABAG Market Share Data
STRABAG MARKET SHARE DATA 2014 (€M) CONSTRUCTION OUTPUT STRABAG OUTPUT MARKET SHARE (%) Germany 292,485 6,080 2.1 Austria 32,845 2,058 6.3 Poland 43,102 817 1.9 Czech Republic 16,012 620 3.9 Hungary 8,520 544 6.4 Slovakia 4,262 427 10.0 Switzerland 55,653 359 0.6 Benelux 103,076 324 0.3 RANC 160,645
Slide 66: Market Leading Positions in Central and Eastern European Countries
MARKET LEADING POSITIONS IN CENTRAL AND EASTERN EUROPEAN COUNTRIES WESTERN EUROPE GERMANY AUSTRIA Output volume/Revenue 2014 (€m) Output volume/Revenue 2014 (€m) 1. STRABAG 6,080 1. Porr 2,114 2. Vinci 2,505 2. STRABAG 2,058 3. Goldbeck 1,8811) 3. Swietelsky 1,270 4. Max Bögl 1,6001) 4. Habau 990 5.
Slide 67: Market Leading Positions in CEE Countries (cont.)
MARKET LEADING POSITION IN CENTRAL AND EASTERN EUROPEAN COUNTRIES (CONT.) CROATIA SLOVAKIA Output volume/Revenue 2014 (€m) Output volume/Revenue 2014 (€m) 1. STRABAG 120 1. STRABAG 405 2. Viadukt 107 2. Doprastav 167 3. Osijek-Koteks 95 3. Inzinierske stavby 125 4. Tehnika 84 4. Vahostav 115 5. Kamg
Slide 68: Own Building Materials Network
OWN BUILDING MATERIALS NETWORK Investor Presentation December 2016 5 Page 68
Slide 69: Financing PPP-Projects
FINANCING PPP-PROJECTS TYPICAL FINANCING EQUITY INVESTED IN PPP (€M) ● The SPV(1) is financed with equity (10%–30%) and 700 bank debt (70%–90%) ● STRABAG – as a shareholder in the SPV – 382 386 410 378 370 puts in equity ● Other SPV shareholders are e.g. governments, infrastructure funds and develop
Slide 70: 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 71: Property & Facility Services: Strategic Rationale & Targets
PROPERTY & FACILITY SERVICES: STRATEGIC RATIONALE & TARGETS EXTENDING THE VALUE CHAIN TARGETS FOR 2016 ● Offsets seasonal and cyclicality factors (contracts of 3-5 ● Extend business with new and existing customers years duration) ● Stable output volume of approx. € 1 bn (Deutsche Telekom ● One integ
Slide 72: Stable Shareholder Structure
STABLE SHAREHOLDER STRUCTURE SHAREHOLDER STRUCTURE SINCE 7/2016 COMMENTS Treasury ● Core shareholders account for the majority > 80% shares stake 6.7% Free float Haselsteiner ● Shareholders’ syndicate until end of 2017 13.5% Family 26.4% ● Flexibility: Strategic decisions can be taken and implemente
Slide 73: Organisation – Central Units
ORGANISATION – CENTRAL UNITS ORGANISATIONAL STRUCTURE CEO CFO Central Divisions & Central Staff Divisions BRVZ(1) Zentrale Accounting, Financing, Taxes, IT, Human BMTI(2) TPA(3) Legal Resources, Real Estate, Insurance, Project- Technik(4) Related Risk Management System (RMS)/Organisational Developme
Slide 74: The Management Board
THE MANAGEMENT BOARD LONG RECORD OF EXPERIENCE WITHIN STRABAG AND IN THE CONSTRUCTION SECTOR Thomas Birtel, CEO (second left) ● Joined STRABAG in 1996 ● Management Board member since 2006 ● Born 1954 Education: Economics Christian Harder, CFO (second right) ● Joined STRABAG in 1994 ● Management Boar
Slide 75: STRABAG Share Is Covered by Eight Institutions
STRABAG SHARE IS COVERED BY EIGHT INSTITUTIONS COMPANY DATE TITLE TARGET PRICE RATING Upgrading estimates, target price and RCB 7.12.2016 recommendation € 39.0 Buy Upgrade to Buy: Further re-rating expected as growth HSBC 2.12.2016 returns € 37.0 Buy Kursziel auf 33 EUR (28) angehoben, Rating bleibt
Slide 76: Financial Calendar and IR Contact
FINANCIAL CALENDAR AND IR CONTACT ● Annual Report 2016 27 April 2017 ● Interim Report January–March 2017 31 May 2017 Diana Neumüller-Klein, CFA Head of Investor Relations & Corporate Communications +43 1 22422-1116 diana.klein@strabag.com www.strabag.com Investor Presentation December 2016 5 Page 76