Strabag Se · VIE:STR
Strabag — Investor Presentation (November 2020)
81 slides from Strabag's investor presentation, November 2020
Slide 1: STRABAG SE Investor Presentation November 2020
STRABAG SE INVESTOR PRESENTATION NOVEMBER 2020
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 3 Investor Presentation November 2020
Slide 4: STRABAG at a Glance
NI STRABAG AT A GLANCE
Slide 5: STRABAG at a Glance
STRABAG AT A GLANCE FACTS & FIGURES MARKETS ● Output volume: € 16.6 billion ● Net income: € 379 million ● 76,919 employees ● >700 locations in more than 80 countries ● Highly innovative: Central Technical Division with over 1,000 engineers, TPA (Quality & Innovation) with about 950 people ● Equity r
Slide 6: Largest Projects in Progress
LARGEST PROJECTS IN PROGRESS NO SPECIFIC EXPOSURE TO ANY LARGE PROJECT AS % OF ORDER TOTAL BACKLOG ORDER COUNTRY PROJECT IN €M BACKLOG United Kingdom North Yorkshire Polyhalite Project 878 5.0 Chile Alto Maipo power plant 387 2.2 Germany New rail line/airport tunnel 379 2.2 Alto Maipo power plant Ge
Slide 7: Flagship Projects – Examples
FLAGSHIP PROJECTS – EXAMPLES TAMINA BRIDGE – TRIIIPLE RESIDENTIAL SWITZERLAND TOWERS – AUSTRIA Building of an arch bridge Building three 100-metre-high residential towers Size: € 22 million (=60% share) Size: € 110 million Project schedule: 2013–2017 Project schedule: 2018–2021 Project scope: 475 m
Slide 8: 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 an tunnel, Ein Karem exit
Slide 9: Business Segment Contribution 2019
BUSINESS SEGMENT CONTRIBUTION 2019 International + North + West South + East Special Divisions 49% of 21% of output output volume volume 29% of output volume Austria, Switzerland, Hungary, International, Tunnelling, Czech Republic, Slovakia, Services, Real Estate Germany, Poland, Benelux, Adriatic,
Slide 10: Key Financials
KEY FINANCIALS (€m) 2019 2018 D% Output volume 16,618 16,323 2 Revenue 15,222 15,669 3 EBITDA 1,113 953 17 EBITDA adjusted 1,113 897 24 EBIT 603 558 8 EBIT adjusted 603 503 20 Net income after minorities 372 354 5 Cash flow from operating activities1 1,076 789 36 Cash flow from investing activities1
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 NETWORK ENABLES STRABAG TO ● make more use of technology and machinery ● follow clients around the world Only co
Slide 12: The Construction Sector within Evolving Global Themes
2 THE CONSTRUCTION SECTOR WITHIN EVOLVING GLOBAL THEMES
Slide 13: Five European Trends: (1) Urbanisation/Demographics
FIVE EUROPEAN TRENDS: (1) URBANISATION/DEMOGRAPHICS GERMANY: DAILY TRAFFIC LOAD 2030F ● By 2050 68% of the global population will live in cities (today: 55%) – an increase of the urban population by 2.5 billion. Higher need for infrastructure ● McKinsey: Germany needs to increase its annual construc
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 2006 2016 Source: Eurostat, Regionalstatistik des Verkehrs (https://ec.Europa.eu/Eurostat/data/database) 14 Investor Presentation
Slide 15: Five European Trends: (2) Energy/Sustainability
FIVE EUROPEAN TRENDS: (2) ENERGY/SUSTAINABILITY ● Investment of USD 48 trillion needed to just meet the world’s energy needs by 2035, according to McKinsey1 ● EU: 2030 climate and energy framework sets 3 targets: − At least 40% cuts in greenhouse gas emissions − At least 32% share of renewable energ
Slide 16: Five European Trends: (3) Financial Environment
FIVE 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 Tanz
Slide 17: Five European Trends: (4) CEE Set for Growth
FIVE EUROPEAN TRENDS: (4) CEE SET FOR GROWTH GROWTH IN KEY MARKETS 2018–2021F CEE SHOULD OUTPERFORM WESTERN EUROPE 30% 15% 0% 2018 2019 2020f 2021f 2022f 0% Western Czech Slovakia Poland Hungary Europe Republic -15% Constr. Western Europe Constr. Eastern Europe GDP Construction market CZECH ● CEE re
Slide 18: Five European Trends: (5) Digitalisation
FIVE EUROPEAN TRENDS: (5) DIGITALISATION CONSTRUCTION SECTOR LAGGING BEHIND REGARDING PRODUCTIVITY GAINS1 4% 27% 34% Construction Producing Manufacturing industry industry industry <6% Less than 6% of 93% of players in the construction construction sector companies use agree that digital instruments
Slide 19: Construction Segments Have Their Own Business Models and Cycles
CONSTRUCTION SEGMENTS HAVE THEIR OWN BUSINESS MODELS AND CYCLES CONSTRUCTION SUBSEGMENTS GERMANY STRABAG CLIENT STRUCTURE 10% Private 39% 0% 2018 2019e 2020e 2021e 2022e Public 61% -10% Residential Other building construction Civil CONSTRUCTION OUTPUT BY COUNTRIES 15% ● Public client: The price is m
Slide 20: 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 20 Investor Presentation November 2020
Slide 21: The STRABAG Strategy & Investment Proposition
3 THE STRABAG STRATEGY & INVESTMENT PROPOSITION
Slide 22: 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 23: Six Strategic Fields
SIX STRATEGIC FIELDS 23 Investor Presentation November 2020
Slide 24: 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) 24 Investor Presentation November 2020
Slide 25: 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 26: (1) Margin Upside: Targets
(1) MARGIN UPSIDE: TARGETS 2020: ≥3.5% EBIT MARGIN1 EXPECTED TOP-LINE GROWTH NOT IN THE FOCUS 5% 15% 12% 12% 12% ≥3.5% 3.8% 8% 3.3% 3.3% 5% 3.2% 2% 2.6% 0% -6% -6% -10% 0% -15% 2015 2016 2017 2018 2019 2020 2015 2016 2017 2018 2019 2020 ● Comprehensive risk management ● For the current 2020 financia
Slide 27: (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 volume ≥€ 70 m) ● Guaranteed maximum price ● Internal Audits ● Lump-sum ●
Slide 28: (2) Resilience in a Volatile Industry
(2) FLEXIBLE BUSINESS MODEL, SELECTIVE DIVERSITY: RESILIENCE IN A VOLATILE INDUSTRY OUTPUT VOLUME (€M) ORDER BACKLOG (€M) 20,000 20000 20,000 20000 16,618 16,900 17,411 16,323 16,592 14,290 13,491 14,621 14,816 13,135 0 0 2015 2016 2017 2018 2019 2015 2016 2017 2018 2019 EBITDA (€M) AND EBITDA MARGI
Slide 29: (2) Subcontracting and Portfolio Mix
(2) FLEXIBLE BUSINESS MODEL, SELECTIVE DIVERSITY: SUBCONTRACTING AND PORTFOLIO MIX SUBCONTR. BUILDING & CIVIL ENGINEERING SUBC. TRANSPORTATION INFRASTRUCTURE Sub- contractors 31% Own 42% Sub- contractors 58% Own Own 69% 69% DIVERSIFIED PORTFOLIO BALANCES CYCLICAL/PROJECT-DRIVEN NATURE OF CONSTRUCTIO
Slide 30: (2) Own Dense Construction Materials Network
(2) FLEXIBLE BUSINESS MODEL, SELECTIVE DIVERSITY: OWN DENSE CONSTRUCTION MATERIALS NETWORK STRABAG FACILITIES1 OWN COVERAGE OF MATERIAL NEEDS (%) ● Asphalt mixing plants 2732 100% 83% 81% ● Concrete mixing plants 1462 ● Quarries and gravel pits 1482 ● Cement mixing plants 53 34% 25% 27% ● Production
Slide 31: (2) Steady Income through Concession Business
(2) FLEXIBLE BUSINESS MODEL, SELECTIVE DIVERSITY: STEADY INCOME THROUGH CONCESSION BUSINESS NUMBER OF STRABAG’S PPP1 PROJECTS SELECTED PPP PROJECTS 50 38 37 34 35 35 0 2015 2016 2017 2018 2019 MAR1, Colombia Motorway A8, Germany TOTAL CONCESSION PPP STRATEGY SELECTED PPP PROJECTS COST (€M) % SHARE C
Slide 32: (2) Property & Facility Services
(2) FLEXIBLE BUSINESS MODEL, SELECTIVE DIVERSITY: PROPERTY & FACILITY SERVICES TARGET MARKETS KEY FACTS 2019 ● Output 2019: € 884 m ● ~ 6,340 employees (FTE) ● Broad range of customers: Airbus, Allianz, Audi, BImA*, BDBOS*, BOS*, Bosch, Colt, Commerzbank, DEKA, Demire, Deutsche Bahn, DFS, dm, ESPRIT
Slide 33: BIM 5D Could Be a Revolution in Construction
(2) OFFERING TECHNOLOGY AND SUSTAINABILITY: BIM 5D® COULD BE A 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 i
Slide 34: Intelligent Process Engineering
(2) OFFERING TECHNOLOGY AND SUSTAINABILITY: INTELLIGENT PROCESS ENGINEERING BIM 5D® ALSO APPLICABLE FOR TRANSPORTATION INFRASTRUCTURE PROJECTS ● 3D visualisation ● Topographic mapping via drones and other innovative hard- & software ● Model-based quantity take-off during tender stage and quantity on
Slide 35: 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 2000 Number of employees ● Central Technical Division – organisation in 950 charge of planning and execution of R&D projects TPA Central Technical Divis
Slide 36: Example on Non Financial Targets – Women
(2) OFFERING TECHNOLOGY AND SUSTAINABILITY: EXAMPLE ON NON FINANCIAL TARGETS – WOMEN TARGET: GROW SHARE OF WOMEN IN TOTAL EMPLOYMENT AND MANAGEMENT EACH YEAR 30% 16.9% 16.9% 14.9% 14.9% 13.9% 9.0% 9.2% 9.3% 8.7% 8.4% 0% 2015 2016 2017 2018 2019 Women as % of management Women as % of staff 36 Investo
Slide 37: (3) 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 October 2020 − Leading market position
Slide 38: (3) Financial Strength: Diversified Financing
(3) FINANCIAL STRENGTH: DIVERSIFIED FINANCING DEBT REPAYMENT PROFILE BONDS (€M) DIVERSIFIED MEANS OF FINANCING 300 ● Cash and surety credit lines (31 December 2019): € 7.9 billion 200 200 − thereof syndicated cash credit line of € 0.4 billion (by 2024) − thereof syndicated surety loan (by 2024) 0 ●
Slide 39: (4) Attractive Dividends: Consistent Payout Ratio
(4) ATTRACTIVE DIVIDENDS: CONSISTENT PAYOUT RATIO NET INCOME A.M. (€M) AND MARGIN (%) DIVIDEND (€) AND PAYOUT RATIO (%) 5% 2.3% €2 100% 400 354 372 -31% 278 279 2.4% 1.30 1.30 2.1% 2.3% 0.95 48% 43% 0.901 156 0.65 2.2% 38% 1.2% 35% 25% 0 €0 0% 2015 2016 2017 2018 2019 2015 2016 2017 2018 2019 EARNIN
Slide 40: (4) Attractive Dividends: Total Shareholder Return 2015–2019
(4) ATTRACTIVE DIVIDENDS: TOTAL SHAREHOLDER RETURN 2015–2019 Dividend policy: 30-50 % of net income after minorities distributed as a dividend 50% 3.4% Ø dividend 3.1% 42.7% yield: 3.4% 3.0% 29.7% 42.7% 20.9% 3.6% 3.9% 1.1% -24.6% -24.6% -20% 2015 2016 2017 2018 2019 Return from share price Return f
Slide 41: Financial Performance
! FINANCIAL fp PERFORMANCE & . | \ SOCIETAS EUROPAEA
Slide 42: Corona Effects on STRABAG
CORONA EFFECTS ON STRABAG STRABAG suspends Austrian construction site STRABAG gradually resumes work on construction activity for the time being and initiates early warning sites in Austria system according to § 45a AMFG as a precaution • Agreement by the social partners enables • Around 1,000 sites
Slide 43: Output Volume Fell by 10% After Six Months 2020, Order Backlog at Record
OUTPUT VOLUME FELL BY 10% AFTER SIX MONTHS 2020, ORDER BACKLOG REACHED NEW RECORD HIGH OUTPUT VOLUME (€M) 20,000 ● Decrease due to three factors 16,618 − Loss of German key account in the property and facility services business mid-2019 -10% 7,507 − Coronavirus: temporary halt to construction 6,720
Slide 44: Slight Growth of EBITDA, but Lower EBIT
SLIGHT GROWTH OF EBITDA, BUT HIGHER DEPRECIATION LEADS TO LOWER EBIT EBITDA (€M) 1,500 ● Small growth in EBITDA of 2% 1,113 2% 300 295 0 6M/20 6M/19 2019 EBIT (€M) ● Depreciation and amortisation up by 9% as a 700 603 result of higher investments in the previous year ● Decline of EBIT attributable t
Slide 45: Net Income After Minorities After Six Months Still Negative
NET INCOME AFTER MINORITIES AFTER SIX MONTHS STILL IN THE NEGATIVE TERRITORY NET INCOME AFTER MINORITIES (€M) EARNINGS PER SHARE (€) 400 372 4 3.62 n.m. n.m. 11 0.10 -1 -0.01 -100 -1 6M/20 6M/19 2019 6M/20 6M/19 2019 ● Net interest income at € -13 million after € -20 million in 6M/19; higher negativ
Slide 46: Strong Balance Sheet with a High Equity Ratio
STRONG BALANCE SHEET WITH A HIGH EQUITY RATIO ASSETS1 EQUITY AND LIABILITIES1 (€m) 6M/2020 2019 (€m) 6M/2020 2019 Intangible assets 489 491 Share capital 110 110 Rights from concession Capital reserves 2,315 2,315 arrangements 521 530 Retained earnings 1,338 1,397 PP&E & investment property 2,554 2,
Slide 47: Lower Working Capital Increase Shifts Operating Cash Flow to Positive
LOWER WORKING CAPITAL INCREASE SHIFTS CASH FLOW FROM OPERATING ACTIVITIES TO POSITIVE (€m) 6M/20 ∆% 6M/19 Cash – beginning of period 2,460 3 2,384 Cash flow from earnings 239 4 229 ∆ Working Capital -206 62 -550 Cash flow from operating activities 33 n.m. -321 Cash flow from investing activities -18
Slide 48: North + West: EBIT Already in Positive Territory
NORTH + WEST: EBIT ALREADY IN POSITIVE TERRITORY KEY INDICATORS COMMENTS (€m) 6M/20 Δ% 6M/19 ● Output volume almost stable, trends mixed Output volume 3,531 -1 3,552 ● EBIT unlike 6M/2019 already positive Revenue 3,256 0 3,265 − Lower negative impact large projects in Poland Order backlog 9,352 1 9,
Slide 49: South + East Impacted by COVID-19 on Output Level
SOUTH + EAST IMPACTED BY COVID-19 ON OUTPUT LEVEL KEY INDICATORS COMMENTS (€m) 6M/20 Δ% 6M/19 ● Output volume fell by 9% as a result of temporary suspension of construction activity in Austria Output volume 1,891 -9 2,068 ● EBIT returned to positive territory – absence of one-time Revenue 1,833 -6 1
Slide 50: International + Special Divisions: COVID-19 Restrictions in Tunnelling in Chile
INTERNATIONAL + SPECIAL DIVISIONS: COVID-19-RESTRICTIONS IN TUNNELLING IN CHILE KEY INDICATORS COMMENTS (€m) 6M/20 Δ% 6M/19 ● Output volume lower by 33% due to loss of a key account in 2019 in property and facility services as well as COVID- Output volume 1,233 -33 1,832 19-related restriction on la
Slide 51: Outlook 2020 Upgraded After First Six Months
OUTLOOK 2020 UPGRADED AFTER FIRST SIX MONTHS ● Output volume 2020 should reach around € 15 billion; previous estimate of € 14.4 billion ● EBIT margin target (EBIT/revenue) 2020 remains at ≥ 3,5% ● CAPEX (cash flow from investing activities) forecast to be below € 450 million 51 Investor Presentation
Slide 52: Appendix
APPENDIX 2 Ont OE SOCIETAS EUROPAEA
Slide 53: Output Volume 2019 at Record Level of 16.6 Billion
OUTPUT VOLUME 2019 AT RECORD LEVEL OF 16.6 BILLION OUTPUT VOLUME (€M) +2% 20000 20,000 16,618 ● Growth in the home market of Austria and in 16,323 transportation infrastructures in Poland, Hungary and Czech Republic ● Loss of a key client in Germany in property & facility services as from 1 July 201
Slide 54: Order Backlog Increase 2019 in Germany, Czech Republic and UK
SIGNIFICANT INCREASE IN ORDER BACKLOG 2019 IN GERMANY, CZECH REPUBLIC AND UK – NEW RECORD AT YEAR’S END ORDER BACKLOG (€M) 20000 20,000 17,411 +3% 16,900 ● Substantial expansion of an existing order in the UK ● Significant increase in the order backlog in Germany and Czech Republic ● Declines in Hun
Slide 55: EBITDA Topping € 1 Billion Mark for the First Time
EBITDA TOPPING € 1 BILLION MARK FOR THE FIRST TIME EBITDA (€M) AND EBITDA MARGIN (%) +17% ● First-time application of IFRS 16 Leases 1200 1,200 1,113 9531 ● Growth of 24 % compared to EBITDA adjusted for non-operating step-up profit in 2018 7.1% 6.3%1 0 2019 2018 EBIT (€M) AND EBIT MARGIN (%) 1,000
Slide 56: Earnings per Share Rose by 5%
EARNINGS PER SHARE ROSE BY 5% NET INCOME A. MINORITIES (€M) & MARGIN (%) EARNINGS PER SHARE (€) 400 +5% 372 4 +5% 3.62 354 3.45 2.4% 2.3% 0 0 2019 2018 2019 2018 ● Net interest income comparable to that of the previous year ● Income tax rate stood slightly higher at 34.4% (2018: 31.7%) ● Earnings ow
Slide 57: Group Income Statement 2019
GROUP INCOME STATEMENT 2019 (€m) 2019 2018 Δ% Output volume 16,617.97 16,322.88 2 Revenue 15,668.57 15,221.83 3 Changes in inventories/own work capitalised 31.36 -33.07 n.a. Other operating income 233.14 222.98 5 Construction materials, consumables and services used -10,111.85 -10,125.77 0 Employee
Slide 58: Group Income Statement 2019 (cont.)
GROUP INCOME STATEMENT 2019 (CONT.) (€m) 2019 2018 Δ% EBITDA 1,113.30 952.601 17 Margin (%) 7.1 6.3 Depreciation and amortisation -510.71 -394.39 29 EBIT 602.58 558.211 8 Margin (%) 3.8 3.7 Net interest income -25.34 -27.43 -8 Income tax expense -198.68 -168.00 -18 Net income 378.56 362.78 4 Attribu
Slide 59: Equity Ratio Remains High at 31%
EQUITY RATIO REMAINS HIGH AT 31% ASSETS1 EQUITY AND LIABILITIES1 (€m) 2019 2018 (€m) 2019 2018 Intangible assets 491 493 Share capital 110 110 Rights from concession Capital reserves 2,315 2,315 arrangements2 530 547 Retained earnings 1,397 1,196 PP&E & investment property 2,632 2,144 Non-controllin
Slide 60: Net Cash Still Extraordinarily High, Equity Ratio Nearly Unchanged
NET CASH STILL EXTRAORDINARILY HIGH, EQUITY RATIO NEARLY UNCHANGED NET DEBT (+)/NET CASH (-) (€M) EQUITY RATIO (%) 1500 1,500 0 40 31.0% 31.5% 30.7% 31.6% 31.5% 0 -449 -1.094 -1,218 -1,144 -1500 -1,500 -1,335 2015 2016 2017 2018 2019 0 2015 2016 2017 2018 2019 ● Equity ratio remained nearly unchange
Slide 61: Cash and Cash Equivalents of € 2.5 Billion
CASH AND CASH EQUIVALENTS OF € 2.5 BILLION (€m) 2019 ∆% 2018 Cash – beginning of period 2,384 -15 2,790 Cash flow from earnings 851 30 654 ∆ Working Capital 225 67 135 Cash flow from operating activities 1,076 36 789 Cash flow from investing activities -593 7 -641 Cash flow from financing activities
Slide 62: Cash at € 2.5 Billion
CASH AT € 2.5 BILLION CASH DEVELOPMENT (€M) COMMENTS 4,000 4000 1,076 ● Another working capital reduction in 2018 ● Higher investments in property, plant and 2,384 -593 2,460 equipment -412 4 1 0 Cash CFO CFI CFF Currency Restricted Cash 1.1.2019 translation cash 31.12.2019 CFO: Cash flow from opera
Slide 63: Again High Cash Inflow in 2HY/2019
AGAIN HIGH CASH INFLOW IN 2HY/2019 WORKING CAPITAL PATTERN: CASH OUTFLOWS IN 1HY; INFLOWS IN 2HY (€M) 1200 1,200 981 775 800 430 322 400 0 -400 -270 -295 -800 -550 -748 -1200 -1,200 1HY 2016 2HY 2016 1HY 2017 2HY 2017 1HY 2018 2HY 2018 1HY 2019 2HY 2019 COMMENTS ● Working capital outflows generally
Slide 64: Another Year of Positive Free Cash Flow
ANOTHER YEAR OF POSITIVE FREE CASH FLOW Δ WORKING CAPITAL (€M) CFO VS. CFI (€M) CFI VS. DEPRECIATION (€M) 1500 1,500 1,345 1,500 1500 800 711 1,076 225 789 135 641 641 593 593 511 0 394 333 333 386 0 0 2017 2018 2019 2017 2018 2019 -800 2017 2018 2019 ● Another positive Free Cash Flow of € 483 milli
Slide 65: North + West: Building Boom in Core Markets
NORTH + WEST: BUILDING BOOM IN CORE MARKETS KEY INDICATORS COMMENTS (€m) 2019 Δ% 2018 ● Output volume +4% over the past year Output volume 8,107 4 7,827 ● EBIT nearly doubled thanks to strong growth in Revenue 7,556 4 7,242 German infrastructure business, among others Order backlog 8,808 0 8,804 ● O
Slide 66: South + East: Growth in Output Volume, Decrease in Earnings
SOUTH + EAST: GROWTH IN OUTPUT VOLUME, DECREASE IN EARNINGS KEY INDICATORS COMMENTS (€m) 2019 Δ% 2018 ● Output volume up by 6%, growth mainly in Austria, Output volume 4,916 6 4,639 Hungary, Czech Republic and Serbia Revenue 4,880 8 4,522 ● EBIT fell by 14% due to provisions and lower Order backlog
Slide 67: International + Special Divisions: Expected Loss of a Large Client
INTERNATIONAL + SPECIAL DIVISIONS: EXPECTED LOSS OF A LARGE CLIENT IN PROPERTY & FACILITY SERVICES KEY INDICATORS COMMENTS ● Output volume down especially due to Italy (€m) 2019 Δ% 2018 ● Output volume fell as expected after loss of major ● EBIT hardly changed in absolute terms – number of contrary
Slide 68: Output Volume by Country
OUTPUT VOLUME BY COUNTRY (€m) 2015 2016 2017 2018 2019 CAGR1 (%) Germany 6,256 6,270 6,960 7,877 7,819 6 Austria 2,003 2,099 2,333 2,542 2,679 8 Poland 941 774 848 975 1,129 5 Hungary 594 448 551 714 848 9 Czech Republic 765 631 629 706 783 1 Slovakia 716 461 528 667 369 -15 Americas 310 348 385 515
Slide 69: STRABAG Market Share Data
STRABAG MARKET SHARE DATA 2018 (€M) CONSTRUCTION OUTPUT STRABAG OUTPUT MARKET SHARE (%) Germany 350,017 7,877 2.3 Austria 42,639 2,542 6.0 Poland 55,357 975 1.8 Czech Republic 21,818 706 3.8 Hungary 13,768 714 5.2 Russia 124,991 77 0.1 Slovakia 5,526 514 9.3 Romania 17,915 197 1.1 Croatia 3,939 163
Slide 70: 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 2018 (€m) Output volume/Revenue 2018 (€m) 1. STRABAG 7,877 1. STRABAG 2,542 2. Vinci 3,002 2. Porr 2,332 3. Goldbeck 2,242 3. Swietelsky 1,541 4. Zech Group 1,544 4. Habau 1,4001 5
Slide 71: Market Leading Position in CEE Countries (cont.)
MARKET LEADING POSITION IN CENTRAL AND EASTERN EUROPEAN COUNTRIES (CONT.) SLOVAKIA CROATIA ROMANIA Output volume/Revenue 2018 (€m) Output volume/Revenue 2018 (€m) Output volume/Revenue 2018 (€m) 1. STRABAG 514 1. Kamgrad 201 1. STRABAG 197 2. YIT 157 2. STRABAG 163 2. Bog'Art 195 3. Eurovia 144 3. G
Slide 72: Own Building Materials Network
OWN BUILDING MATERIALS NETWORK 72 Investor Presentation November 2020
Slide 73: Financing PPP-Projects
FINANCING PPP-PROJECTS TYPICAL FINANCING EQUITY INVESTED IN PPP (€M) ● The SPV1 is financed with equity (10%–30%) and 700 bank debt (70%–90%) 554 515 ● STRABAG – as a shareholder in the SPV – 400 427 370 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 TARGETS FOR 2020 ● Offsets seasonal and cyclicality factors (contracts of 3-5 ● Extend business with new and existing customers years duration) ● Stable output volume of approx. € 600 m ● One integrated provider fo
Slide 76: Stable Shareholder Structure
STABLE SHAREHOLDER STRUCTURE SHAREHOLDER STRUCTURE SINCE 1/2020 COMMENTS ● Core shareholders account for the majority Treasury shares 6.7% >80% stake Haselsteiner Free float Family ● Shareholders’ syndicate extended in June 2017 13.5% 26.4% by five years to end of 2022 ● Flexibility: Strategic decis
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 11 Divisions 3 5 77 Division Manager Subdivisions 34 31 35 1 Subdivision Manager Central Divisions & Central Staff Divisions CFO CEO CDO BRVZ Business Zentra
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 Seven Institutions
STRABAG SHARE IS COVERED BY SEVEN INSTITUTIONS Company Date Title Target Price Rating Commerzbank 17.11.2020 Potholes on the road to recovery € 32.0 Hold Orderbuch profitierte in Q3-20 LBBW 13.11.2020 u.a. von Großaufträgen in Deutschland € 21.0 Sell Auftragsstand im Q3 angewachsen, Erste Group 13.1
Slide 80: Brexit – Implications on STRABAG
BREXIT – IMPLICATIONS ON STRABAG BUDGET EUROPEAN FUNDS1 2014–2020 (€BN) ● STRABAG – little to no direct exposure to UK Poland Italy ● But Brexit has a big indirect influence: Romania UK payments to EU = payments of 20 smallest Germany countries Hungary ● Given the reduced EU budgets as of 2021, fund
Slide 81: Financial Calendar and IR Contact
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