Strabag Se · VIE:STR
Strabag — Investor Presentation (November 2024)
49 slides from Strabag's investor presentation, November 2024
Slide 1: Investor Presentation
INVESTOR PRESENTATION OUR FAVOURITE PROJECTS: CHALLENGES We're driving progress and rethinking construction in over 250 innovative projects. STRABAG WORK ON PROGRESS
Slide 2: Disclaimer
Disclaimer This presentation is made by STRABAG SE (the "Company") solely for use at This presentation contains forward-looking statements relating to the investor meetings and is furnished to you solely for your information. business, financial performance and results of the Company and/or the indu
Slide 3: Agenda
Agenda 1 2 3 4 5 6 STRABAG Financial Operational Strategy & Share & Annex at a Glance Review Review Investment Outlook 2023 2023 Proposition 2024 3
Slide 4: STRABAG at a Glance
1 | STRABAG at a Glance
Slide 5: A European key player in construction, innovation & financial strength
FY 2023 | STRABAG at a glance A European key player in construction, innovation & financial strength 19.1 23.5 Output volume (€ bn) Order backlog (€ bn) #2 #1 #1 5.0% ~ 86,000 Market leading positions #1 #1 EBIT margin Employees (Heads) in core markets #4 #4 #1 32.2% > 2,400 Equity ratio Locations B
Slide 6: Consistent execution of strategy drives results
Group strategy „ Consistent execution of strategy drives results Investment Proposition Sustainable Profit Growth 1 with a Reliable Dividend STRABAG SE is a European-based technology group for construction services, Resourcefulness, a leader in innovation and financial strength. Our activities span
Slide 7: Compelling performance in volatile times
FY 2023 | STRABAG at a glance Compelling performance in volatile times Output volume Order backlog (€ mn) 2023 2022 Δ% Contribution by region Output volume 19,139 17,735 8 Order backlog 23,466 23,739 -1 Germany 47% 53% EBIT 880 706 25 Austria 16% 10% EBIT margin (% of revenue) 5.0 4.2 CEE 24% 19% Ne
Slide 8: Our business spans the entire construction value chain
FY 2023 | Business segments Our business spans the entire construction value chain Share of Share of Germany, Switzerland, Regions/ North + West Group output volume (%) 43 Group order backlog (%) 48 Areas Benelux, Scandinavia, Ground Engineering Austria, Poland, Share of Share of Czech Republic, Slo
Slide 9: Landmark projects acquired in 2023
FY 2023 | Order intake Landmark projects acquired in 2023 Construction of Construction of Extension of replacement medical U5 underground building for Ruhr rehabilitation line University centre Hamburg Bochum Vienna Germany Germany Austria ~ € 582 mn ~ € 270 mn ~ € 138 mn until 2033 until 2027 until
Slide 10: No specific exposure to any large project
Largest projects in progress No specific exposure to any large project 1 Order backlog As % of total Country Project in (€ mn) order backlog United Kingdom HS2 high-speed rail line 1,176 5.0 © ZÜBLIN, Rendering: HDR Germany 1 US hospital, Weilerbach 627 2.7 Germany Bayerische Versorgungskammer 595 2
Slide 11: Progress in sustainability management
FY 2023 | Sustainability Progress in sustainability management Our ESG ratings & ESG committment Positive results in 2023 ESG ratings • CDP upgrade to B in 2023 (climate change) • Sustainalytics 33.8/100 points (last evaluation: 2022) • MSCI BBB (first time participation in 2023) • Ecovadis 67/100 p
Slide 12: Financial Review 2023
2 | Financial Review 2023
Slide 13: Strong performance despite cooldown in the construction industry
FY 2023 | Executive summary Strong performance despite cooldown in the construction industry New record for output volume € 19.1 bn Growth in almost all of the Group’s core markets +8% vs. 2022 Order backlog largely unchanged € 23.5 bn Ongoing high level despite sharp declines on residential constru
Slide 14: Strong performance despite cooldown in the construction industry
FY 2023 | Executive summary Strong performance despite cooldown in the construction industry € 3.5 bn Balance sheet further strengthened Cash and cash Net cash position and equity ratio increased on a very high level ON TRACK FOR equivalents ANOTHER STRONG Strategic investments in 2023 M&A in 2023 t
Slide 15: Mixed trends in underlying markets
FY 2023 | Executive summary Mixed trends in underlying markets Infrastructure Building construction Public vs. private customers • Solid business activity • Sharp declines on residential • Noticeable shift from private to construction market public customers visible in • Positive trends, especially
Slide 16: New record for output, backlog already extends into 2025
FY 2023 | Results New record for output, backlog already extends into 2025 Output volume (€ mn) High dynamics of output growth +8% • Growth in almost all key markets 17,735 19,139 • Largest increases in Germany, Romania and 16,323 16,618 15,447 16,129 Poland 13,566 14,290 13,491 14,621 • Declines in
Slide 17: EBIT margin fully in line with target
FY 2023 | Results EBIT margin fully in line with target EBIT (€ mn) and EBIT margin (%) EBIT margin higher than expected • EBIT significantly up; EBIT margin at 5.0% (2022: 4.2%) 896 880 706 • Positive earnings effects from the 603 631 North + West segment 558 425 448 341 5.9 282 5.0 3.7 3.8 4.3 4.2
Slide 18: Solid cash flow development
FY 2023 | Results Solid cash flow development Δ Working capital (€ mn) CFO vs. CFI (€ mn) CFI vs. depreciation (€ mn) 1,817 1,221 512 813 655 655 550 560 551 538 560 378 378 5 -249 2021 2022 2023 2021 2022 2023 2021 2022 2023 CFO CFI CFI Depreciation • Unexpected reduction in working capital: foreca
Slide 19: Operational Review 2023
3 | Operational Review 2023 19 Investor Conference - Zürs 2023
Slide 20: Our business spans the entire construction value chain
FY 2023 | Operating segments Our business spans the entire construction value chain 8,217 8.9 Share of Output volume (€ mn) EBIT margin (%) Germany, Switzerland, North + West1) Group output volume (%) 43 Benelux, Scandinavia, 11,207 22,136 Ground Engineering Order backlog (€ mn) Employees (FTE) Regi
Slide 21: North + West: Significant increase in earnings
FY 2023 | Operating segments North + West: Significant increase in earnings Key Indicators Performance 2023 (€ mn) 2023 2022 Δ% • Output volume: growth primarily in Germany, to a lesser extent in the Benelux countries and in Switzerland Output volume 8,217 7,865 4 • EBIT: absence of negative earning
Slide 22: South + East: EBIT margin above Group average
FY 2023 | Operating segments South + East: EBIT margin above Group average Key Indicators Performance 2023 (€ mn) 2023 2022 Δ% • Output volume: largest growth in Romania, Poland and Hungary Output volume 7,742 7,087 9 • EBIT: earnings improvements in Eastern and South-East Europe Revenue 7,344 6,789
Slide 23: International + Special Divisions: Fluctuations in project business
FY 2023 | Operating segments International + Special Divisions: Fluctuations in project business Key Indicators Performance 2023 (€ mn) 2023 2022 Δ% • Output volume: strongest growth in Germany, the UK and Italy Output volume 2,957 2,645 12 • EBIT: higher contributions in Property & Facility service
Slide 24: Strategy & Investment Proposition
4 | Strategy & Investment Proposition
Slide 25: Consistent execution of strategy drives results
Group strategy „ Consistent execution of strategy drives results Investment Proposition Sustainable Profit Growth 1 with a Reliable Dividend STRABAG SE is a European-based technology group for construction services, Resourcefulness, a leader in innovation and financial strength. Our activities span
Slide 26: Strong track record of sustainable profit growth
1 2 3 4 5 Investment proposition Strong track record of sustainable profit growth EBIT (€ mn) and EBIT margin (%) Sustainable profit growth… • EBIT margin 2023 at 5.0% CAGR +13% EBIT in 2014-23 896 880 • Fully in line with target: 706 ≥ 4% from 2022 onwards 603 631 558 425 448 • Positive earnings ef
Slide 27: We strive for technology leadership
1 2 3 4 5 Investment proposition We strive for technology leadership Standardisation Digital processes Automation Rethinking construction Examples Examples Examples processes, site operations, and the construction ecosystem… …to transform existing processes and innovations into digital services & bu
Slide 28: Flexible business model proves its worth in volatile times
1 2 3 4 5 Investment proposition Flexible business model proves its worth in volatile times Diversified portfolio balances Subcontracting mix (%) Portfolio mix (%) cyclical/project-driven nature 5 1 of construction 5 Transportation Infrastructures 6 Building Construction 34 • Diversified business mo
Slide 29: Financial strength as a competitive advantage
1 2 3 4 5 Investment proposition Financial strength as a competitive advantage Net debt (+) / Net cash (-) in (€ mn) Stable net cash position • Substantially increased since 2013 • High advance payments in the past • Working capital expected to increase – -249 -449 due to rising interest rates -1,09
Slide 30: Share & Outlook 2024
5 | Share & Outlook 2024 Deutsch 31 Investor Conference - Zürs 2023
Slide 31: Capital measures to reduce the stake held by Rasperia completed
Share Capital measures1) to reduce the stake held by Rasperia completed Share capital increased to € 118,221,982 Ordinary non-cash capital increase as a final step registered in the commercial register as planned on 21 Mar. 2024 Stake held by Rasperia reduced to below 25% Rasperia’s shareholding
Slide 32: The STRABAG shares
Share The STRABAG shares Shareholder structure1) Update on shareholder MKAO “Rasperia Trading Limited” (Rasperia) • Action brought by Rasperia against: 31.9% UNIQA/Raiffeisen • resolutions of 18th AGM 2022 and Extraordinary General Meeting 2022 – 30.7% Haselsteiner Family dismissed by Regional Court
Slide 33: STRABAG coverage
STRABAG SE STRABAG coverage Analyst recommendations Consensus Institution Date of research Target Price Recommendation 2024 2025 2026 RBI 25 October 2024 € 53.5 Buy Revenue (€ mn) 18,005 18,293 18,468 LBBW 20 September 2024 € 41.0 Hold Clean EBIT incl. 804 818 802 Erste Group 6 September 2024 € 50.2
Slide 34: STRABAG on track for another strong performance in 2024
Outlook 2024 STRABAG on track for another strong performance in 2024 „ Output volume With last year’s strong performance ~ € 19.4 bn Slight increase expected, based on continuing high order backlog behind us, we expect to be able to confirm our record output in 2024. With our strategy of People. Pla
Slide 35: Financial calendar & IR contact
STRABAG SE Financial calendar & IR contact Financial calendar 2024/2025 IR contact Date Event Marco Reiter Head of Investor Relations Thu, 14 November 2024 Trading Statement January–September 2024 Disclosure 7:00 a.m CET marco.reiter@strabag.com Thu, 13 February 2025 Initial Figures 2024: output vol
Slide 36: Annex
6 | Annex
Slide 37: Experienced Management Board
Organisation Experienced Management Board Klemens Haselsteiner, CEO • Joined STRABAG in 2011 • Management Board member since 2020 • Born 1980, Education: Economics Christian Harder, CFO • Joined STRABAG in 1994 • Management Board member since 2013 • Born 1968, Education: Business Administration Jörg
Slide 38: Organisational structure – central units
Organisation Organisational structure – central units Chief Executive Officer Operative Segments Central Divisions & Central Staff Divisions Board Divisions Sub-divisions Chief Executive Chief Financial Member Division Subdivision Officer (CEO) Officer (CFO) Manager Manager North 1 2 30 Business Dev
Slide 39: Consolidated statement of profit or loss (excerpt)
Annex Consolidated statement of profit or loss (excerpt) (€ mn) 2023 2022 Δ% Output volume 19,139.14 17,735.47 8 Revenue 17,666.54 17,025.85 4 Changes in inventories/own work capitalised 161.69 11.01 >100 Other operating income 302.31 236.76 28 Construction materials, consumables and services used -
Slide 40: Consolidated statement of financial position (excerpt)
Annex Consolidated statement of financial position (excerpt) Assets Equity and liabilities (€ mn) 31.12.2023 31.12.2022 (€ mn) 31.12.2023 31.12.2022 Goodwill and other intangible assets 524 467 Share capital 103 103 Rights from concession arrangements 453 473 Capital reserves 1,748 2,086 Retained ea
Slide 41: Cash and cash equivalents increased to € 3.5 bn
FY 2023 | Results Cash and cash equivalents increased to € 3.5 bn (€ mn) 2023 2022 Δ% Cash and cash equivalents at the beginning of the period 2,702 2,963 -9 Cash flow from earnings 1,305 1,062 23 ∆ Working Capital 512 -249 n.m. Cash flow from operating activities1) 1,817 813 >100 Cash flow from inv
Slide 42: Comprehensive country network
Markets Comprehensive country network Integrated model takes advantage of • local management skills • market knowledge • cost and efficiency synergies • risk diversification • data, digital and IT infrastructure Comprehensive country network enables STRABAG to • make more use of technology, data and
Slide 43: Output volume by country
Markets Output volume by country (€ mn) 2019 2020 2021 2022 2023 CAGR1 (%) Germany 7,819 7,323 7,462 8,347 9,045 4 Austria 2,679 2,460 2,694 2,935 3,070 3 Poland 1,129 1,183 1,152 1,126 1,329 4 Czech Republic 783 826 948 1,093 999 6 Hungary 848 671 652 688 808 -1 United Kingdom 126 226 390 578 672 5
Slide 44: Market leading positions in core markets
Markets Market leading positions in core markets Germany Poland Slovakia STRABAG 8,347 Budimex 1,838 STRABAG 351 Vinci 4,068 STRABAG 1,126 Doprastav 222 Zech Group 3,870 Porr 836 Skanska SK 158 Goldbeck 3,478 Erbud 822 Goldbeck 136 Max Bögl 2,184 Polimex- Eurovia 127 807 #2 Mostostal Czech Republic
Slide 45: Market share data 2023
Markets Market share data 2023 Country Construction output (€ mn) STRABAG output (€ mn) Market share (%) Germany 461,415 9,046 2.0 Austria 53,116 3,070 5.8 Poland 66,684 1,329 2.0 Czech Republic 32,432 999 3.1 Hungary 19,303 808 4.2 Slovakia 8,788 410 4.7 Romania 32,498 519 1.6 Croatia 6,665 242 3.6
Slide 46: Strategy of vertical integration pays off
International + Special Divisions segment > Construction materials Strategy of vertical integration pays off Own coverage of material needs STRABAG facilities1 Own dense construction materials network 86% 85% Asphalt mixing plants 276 • Secures availability – especially in times of constrained suppl
Slide 47: Property and facility services
International + Special Divisions segment > Services Property and facility services Key facts 2023 Strategic rationale: Extending expertise in the energy sector • € 809 mn Output volume • Offsets seasonal and cyclical factors – contracts of 3-5 years duration • + 26% annual growth rate • Growth oppo
Slide 48: Real estate development
International + Special Divisions segment > Project development Real estate development Key facts Strategic rationale: 2023 Extending the value chain € 533 mn • Vertical integration of pre- construction activities output Cologne volume © Haeusler, Vienna • Supports core business construction 650+ co
Slide 49: Public-Private Partnerships
International + Special Divisions segment > Concessions Public-Private Partnerships PPP strategy Selected PPP projects Focus • Infrastructure • Large public buildings 547 Country Project Total cost (€ mn) % Share Concession until Status Equity invested A2 in PPP (€ mn) Poland 1,543 10 2037 Operation