Slide 1: PORR AG Investor Presentation November 2017
Cover Update PORR AG FYQ3 2016 2016 Intelligent NEW Building... BUILDING 1H 2016 of PORR AG Investor Investor Presentation Presentation April 2017 2016 November Investor Presentation August 2016
Slide 2: Disclaimer
Disclaimer • This presentation was prepared by PORR AG (the "Company") solely for use at investors’ meetings and is provided solely for informational purposes. • This presentation dates from November 2017. The facts and information contained herein might be subject to revision in the future. Neither
Slide 3: PORR – At a Glance
PORR – At a Glance Investor Presentation ● 12/09/2017 ● Page ‹#›
Slide 4: PORR – At a Glance
PORR – At a Glance Business Units Key Facts1 Markets Permanent Production Employees 1 market AT/CH/CZ EUR 3.9bn ~15.300 Permanent 2 market DE Backlog EBT EUR 4.8bn EUR 91.1m International 3 project market PORR, a leading full service Environmental, provider in the construction 4 Home markets QA heal
Slide 5: Successful Company Transformation
Successful Company Transformation 2018-2020 2017 YIELD 2013 – 2016 • Clear focus on CONSOLIDATE earnings 2011 – 2012 • Focus business • Roadmap 2020 EXPAND operations • Innovation leader • Integration RESET • Technical • Fit for future excellence • Process & cost optimisation Investor Presentation ●
Slide 6: Reasons for Our Active Acquisition Strategy in the Last Six Years
Reasons for Our Active Acquisition Strategy in the Last Six Years Seize Window of Win Specialised Opportunity Employees Benefit from Enable Economies of Scale Margin Uplift Optimise Regional Coverage Investor Presentation ● 29/11/2017 ● Page 6
Slide 7: Highlights 9M 2017
Highlights 9M 2017 INTELLIGENT GROWTH PRODUCTION GROWTH 20% growth in production Three major acquisitions output • Franki Grundbau TECHNOLOGY • Oevermann First Lean Construction • Hinteregger (LC) project with BMW Group ORDER BACKLOG Strongest order backlog in history with EUR 5,808m in 9M 2017 Inve
Slide 8: Why to Own Our Shares?
Why to Own Our Shares? Investor Presentation ● 12/09/2017 ● Page ‹#›
Slide 9: Overview on our Key Investment Highlights
Overview on our Key Investment Highlights Value Adding Future Favourable Markets Strategy Strong Financial Focus on Performance Core Business Entrepreneurial Mindset Details to be laid out on following pages Investor Presentation ● 29/11/2017 ● Page 9
Slide 10: Our Markets are Driven by Favourable Long-Term Effects
Our Markets are Driven by Favourable Long- Term Effects
Slide 11: Continuously Growing Construction Market in Europe
Continuously Growing Construction Market in Europe Development of Total Construction Output Europe CAGR1 2.4% 10.0% 5.0% 4.2% 2.5% 2.9% 2.5% 0.0% 1.0% 1.8% 2.0% 0.0% -2.1% -5.0% -3.4% -10.0% -8.6% 08/09 09/10 10/11 11/12 12/13 13/14 14/15 15/16 16/17 17/18 18/19 General Trends & Drivers Supporting G
Slide 12: PORR's Construction Markets Show Growth Forecasts and High Volumes
PORR’S Construction Markets Show Growth Forecasts and High Volumes 1,449,491 Home Markets (86% Production Share) 470,494 +1.5% 2016 Total Construction CAGR Market1 in EUR m 2016 Total Construction 2016 - 2019 Market in EUR m Project Markets (14% Production Share) 57,352 +6.1% CAGR 2016 Civil Enginee
Slide 13: We Focus on Our Core Business: Construction from A-Z
We Focus on Our Core Business: Construction from A-Z
Slide 14: We Selectively Develop to a General/Total Contractor
We Selectively Develop to a General/Total Contractor with Expertise in Lean Construction • PORR is and will remain a construction company that builds as much as possible itself Operation • We focus on our core competencies alongside the construction value chain (e.g. Lean Construction) Construction
Slide 15: Our Recent M&A Activities Support the Strategy of Intelligent Growth
Our Recent M&A Activities are Fully Supporting the Strategy of Intelligent Growth Expertise Building Regional Expansion Operation Construction G&P Preparation Design Financial Engineering Investor Presentation ● 29/11/2017 ● Page 15
Slide 16: We Incorporate an Entrepreneurial Mindset
We Incorporate an Entrepreneurial Mindset
Slide 17: Aligned Interests and a Consistent Dividend Policy
Aligned Interests Resulting in Sustainable Growth and a Consistent Dividend Policy Ownership Structure Dividends 1.66% 4.00%2 3.37%2 3.58%3 2.83% 46.3% 1.10 1.00 0.75 53.7% 0.50 0.16 2012 2013 2014 2015 2016 Syndicate (Strauss Group, IGO-Ortner Group) Free float Dividends per share1 in EUR Dividend
Slide 18: PORR is often Partner of Choice due to its Handshake Mentality
PORR is often Partner of Choice due to its Handshake Mentality Quality Technology Responsibility Mindset Eye level Not the biggest but the best Innovation Intelligent Building Owner-managed Performance Entrepreneur Trustworthiness Focus Leader Sustainability Mutual trust Operational excellence Commi
Slide 19: We Have a Strong Financial Performance
We Have a Strong Financial Performance
Slide 20: Growth Track Record
Growth Track Record Historical financial development (in EUR m) Production output Revenue EBT/EBT margin1 -83.1 22.0 59.6 66.1 81.1 91.1 +6.2% CAGR Production output 3,925 3,475 3,524 3,417 3,162 3,009 3,140 2,906 2,891 2,630 2,213 2,315 1.9% 1.9% 2.3% 2.3% 0.8% neg. 2011 2012 2013 2014 2015 2016 1
Slide 21: Consolidated Income Statement
Consolidated Income Statement (EUR m1) FY 2016 9M 2016 9M 2017 Change Production output2 3,925.3 2,787,8 3,343.4 19.9% Revenue 3,417.1 2,483.7 3,015.1 21.4% Share of profit/loss of companies accounted for under 46.3 30.6 31.3 2.4% the equity method Cost of materials and other related production serv
Slide 22: Statement of Financial Position
Statement of Financial Position (EUR m) FY 2016 9M 2016 9M 2017 Non-current assets 801,3 770.7 1,014.1 Assets Current assets 1,560.8 1,508.3 1,806.7 Total assets 2.362,1 2,278.9 2,820.9 Equity1 440.9 399.0 554.0 liabilities Equity & Non-current liabilities 562,7 557.7 678.9 Current liabilities 1,358
Slide 23: Business Units (1/2)
Business Units (1/2) BU 1 BU 2 BU 3 BU 4 AT/CH/CZ ENVIRONMENTAL, GERMANY INTERNATIONAL HEALTHCARE & SERV. Production1 1,710 Share: 51% 536 Share: 16% 911 Share: 27% 163 Share: 5% (in EUR m) • PORR’s largest • PORR’s 2nd biggest • PORR’s unit for • PORR’s unit for business unit market technical leade
Slide 24: Business Units (2/2)
Business Units (2/2) BU 1 BU 2 BU 3 BU 4 ENVIRONMENTAL, AT/CH/CZ GERMANY INTERNATIONAL HEALTHCARE & SERV. +12% +19% 1,710 +69% 1,529 911 +20% 768 536 Output 317 137 163 +12% KPIs 2,066 1,845 +>100% +23% (13%) Intake 952 891 1,092 414 197 171 Employees 7,719 1,899 5,034 1,460 9M 2016 in EUR m Investo
Slide 25: We Have a Clear Vision for a Value Adding Future
We Have a Clear Vision for a Value Adding Future Development
Slide 26: Clear Evidence of Future Production Growth due to High Order Intake
Clear Evidence of Future Production Growth due to High Order Intake Selected Projects General: Office BMW Country: DE Value1: EUR 114.0m +28.2% Schedule: 2017 – 2018 General: Railroad Poznań–Piła +957 EUR m 4,347 Country: PL Value1: EUR 112.5m 3,390 Schedule: 2017 – 2019 General: Subway U5 Europavie
Slide 27: High Order Backlog Underpins Successful Strategy
High Order Backlog Underpins Successful Strategy of Intelligent Growth Selected Projects General: Office Europaallee Zürich1 +12.1% Country: CH Value2: EUR 152.5m 5,808 POC: 42.4% +627 EUR m Schedule: 2015 – 2020 General: Emscher Tunnel 5,181 Country: DE Value2: EUR 144.1m POC: 87.9% Schedule: 2013
Slide 28: Selected Future Trends in Construction
Selected Future Trends in Construction high BIM Portfolio related impacts Improved materials War for talent Organisational Smart home In-house utilities impacts Apps Energy efficiency Green building Regional Relevance 3D printing impacts Urban mining Focus on core business Technological impacts Serv
Slide 29: PORT Framework as Pillars for Our Strategy
PORT Framework as Pillars for Our Strategy Intelligent Growth Portfolio Organisation Regions Technology Focus on CORE BEST PLACE TO Continuous ROADMAP 2020 COMPETENCIES WORK - initiative implementation of LEAN SELECTIVE CONSOLIDATION REGIONAL market CONSTRUCTION - portfolio expansion program 2017 ST
Slide 30: Look at Potential Targets even more Selectively
After a Strong External Growth Phase, we Look at Potential Targets even more Selectively Portfolio Targeted acquisitions alongside the Bridge Construction core competencies • to selectively become "total contractor" Tunnelling • to acquire unique expertise in specific segments • to maintain a leadin
Slide 31: We will Further Expand our Key Markets
On the Basis of our Today’s Footprint, we will Further Expand our Key Markets Regions Home Markets: Project Markets: • Leverage excellent • Focus on infrastructure projects network, market with export knowledge e.g. knowledge and tunnelling, railway construction client relations • Cooperation with l
Slide 32: Best Place to Work Concept
To Remain Successful in the War for Talent, we Developed our Best Place to Work - Concept WAR FOR TALENT OUR ANSWER: BEST PLACE TO WORK - Concept • Employees and Work&Life@PORR clients require • Flexible models of working hours and leave highly flexible • Nursing and health support programs organisa
Slide 33: Roadmap 2020 as a New Organisational Framework far Beyond BIM
Roadmap 2020 as a New Organisational Framework far Beyond BIM ORGANISATION TECHNOLOGY INTERNAL DIGITALISATION (e-billing, e- BIM (Building Information Modelling) commerce, standardised workflows) • 5D = 3D + time and cost/quality • Utilize key information efficiently • Increase transparency and effi
Slide 34: Roadmap 2020: Selected Examples
Roadmap 2020: Selected Examples Reporting of non- E-Invoicing to financial KPIs customers with E-Commerce & (standard across the automatic booking Webshop group) Standardised plan-/ Digitalization of actuals comparison equipment on line item level maintenance process DIGITAL DIGITAL TRANSFORMATION T
Slide 35: Key Messages and IR Information
Key Messages and IR Information
Slide 36: Key Messages
Key Messages Our mid to long term strategy will remain unchanged to ensure a sustainable development for our shareholders We are facing favourable long term market fundamentals in our home markets After a period of strong growth and a subsequent integration phase, we are currently refocusing managem
Slide 37: IR Information for PORR AG
IR Information for PORR AG Share Information Financial Calendar 2018 Share price1 EUR 25.00 26.04.2018 Annual Financial Report 2017 26.04.2018 Press conference Market capitalisation EUR 727.4m 28.05.2018 Q1 2018 Official market Vienna Stock Exchange 29.05.2018 138th Annual General Meeting Prime Mark