Strabag Se · VIE:STR

Strabag — Investor Presentation (December 2022)

77 slides from Strabag's investor presentation, December 2022

  1. Slide 1: STRABAG SE Investor Presentation December 2022

    STRABAG SE INVESTOR PRESENTATION DECEMBER 2022

  2. 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

  3. Slide 3: Agenda

    1 STRABAG AT A GLANCE 2 GLOBAL TRENDS 3 THE STRABAG IMPACTING THE STRATEGY & CONSTRUCTION INVESTMENT INDUSTRY PROPOSITION 4 FINANCIAL 5 APPENDIX PERFORMANCE 3 Investor Presentation December 2022

  4. Slide 4: STRABAG at a Glance

    N} } STRABAG AT A GLANCE

  5. Slide 5: STRABAG at a Glance

    STRABAG AT A GLANCE FACTS & FIGURES STRONG MARKETS ● Output volume 2021: € 16.1 billion ● Net income 2021: € 596 million ● 73,606 employees ● >700 locations in more than 80 countries ● Highly innovative: Central Technical Division with over 1,000 engineers, TPA (Quality & Innovation) with about 1,00

  6. Slide 6: Our Strategy

    OUR STRATEGY “STRABAG is a European-based technology group for construction services, a leader in innovation, resourcefulness and financial strength. Our services span all areas of the construction industry and cover the entire construction value chain. With a special focus on sustainability, innova

  7. Slide 7: Largest Projects in Progress

    LARGEST PROJECTS IN PROGRESS NO SPECIFIC EXPOSURE TO ANY LARGE PROJECT ORDER AS % OF BACKLOG TOTAL ORDER COUNTRY PROJECT IN €M BACKLOG United Kingdom HS2 high-speed rail line 1,367 6.1 United Kingdom Woodsmith Project 799 3.6 Germany US hospital, Weilerbach 645 2.9 Alto Maipo power plant Germany Cen

  8. Slide 8: Flagship Projects – Core Markets

    FLAGSHIP PROJECTS – CORE MARKETS FAIR – GERMANY TRIIIPLE RESIDENTIAL TOWERS – AUSTRIA Building of a Facility for Building three 100-metre-high Antiproton and Ion Research residential towers Size: € 220 million Size: € 110 million Project schedule: 2020–2023 Project schedule: 2018–2021 Project scope:

  9. Slide 9: 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 tunnel, exit shaft (22 m d

  10. Slide 10: Business Segment Contribution 2021

    BUSINESS SEGMENT CONTRIBUTION 2021 International + North + West South + East Special Divisions 49% 30% 20% of output of output of output volume volume volume Austria, Switzerland, International, Tunnelling, Hungary, Czech Republic, Services, Real Germany, Poland, Slovakia, Adriatic, Estate Developme

  11. Slide 11: Key Financials

    KEY FINANCIALS (€m) 2021 2020 ∆% Output volume 16,129 15,447 4 Revenue 15,299 14,750 4 EBITDA 1,446 1,175 23 EBIT 896 631 42 Net income after minorities 586 395 48 Cash flow from operating activities 1,221 1,280 -5 Cash flow from investing activities -378 -350 -8 Balance sheet total 12,226 12,134 1

  12. Slide 12: Comprehensive Country Network

    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 machine

  13. Slide 13: Global Trends Impacting the Construction Industry

    2 GLOBAL TRENDS IMPACTING THE CONSTRUCTION INDUSTRY

  14. Slide 14: Urbanisation/Population Growth – Higher Need for Infrastructure

    (1) URBANISATION/POPULATION GROWTH – HIGHER NEED FOR INFRASTRUCTURE ● By 2050 68% of the global population will live in cities CASE STUDY GERMANY: DAILY TRAFFIC LOAD 2030F (today: 55%) – an increase of the urban population by 2.5 billion. ● Nine largest European cities are projected to have a gap of

  15. Slide 15: Urbanisation/Population Growth – Example I: Motorway Density

    (1) URBANISATION/POPULATION GROWTH – EXAMPLE I MOTORWAY DENSITY IN DIFFERENT MARKETS 45 1999 2009 2019 km motorway / 1,000 km2 0 Germany Croatia Austria Hungary Czech Slovakia Bulgaria Poland Romania Republic Source: Eurostat, Regionalstatistik des Verkehrs (https://ec.Europa.Eu/Eurostat/data/databa

  16. Slide 16: Urbanisation/Population Growth – Example II: Residential Construction Need

    (1) URBANISATION/POPULATION GROWTH – EXAMPLE II PROJECTION OF LARGEST RESIDENTIAL CONSTRUCTION NEED 400,000 40,000 Average Annual Construction Demand Cumulative Construction Need 2021–2030 Number of flats Number of flats 0 0 London Warsaw Paris Budapest Berlin Vienna Copenhagen Amsterdam Zurich Sour

  17. Slide 17: Urbanisation/Population Growth – Example III

    (1) URBANISATION/POPULATION GROWTH – EXAMPLE III PRESENT UNMET HOUSING NEED/PLANNED USE OF EU FUNDING THROUGH NATIONAL RECOVERY AND RESILIENCE PROGRAMMES UNTIL 2026 According to GdW 1 estimate, the shortfall in the construction of new dwellings over the last 10 years is about 1 million units, German

  18. Slide 18: Climate Change/Energy Efficiency – Overview

    (2) CLIMATE CHANGE/ENERGY EFFICIENCY – OVERVIEW • Total annual energy investment surges to USD 5 trillion by 2030, adding an extra 0.4 percentage point a year to annual global GDP growth1 ● EU Green Deal sets 3 targets until 2030 − At least 40% cuts in greenhouse gas emissions − At least 32% share o

  19. Slide 19: 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) 19 Investor Presentation December 2022

  20. Slide 20: Technology/Digitalisation – Selected Innovation Project Examples

    (3) TECHNOLOGY/DIGITALISATION – SELECTED INNOVATION PROJECT EXAMPLES STRABAG REAL ESTATE DIGITAL TACT CONTROL ALBSTADTWEG NR. 10 Enables a complete overview of Start date: December 2020 the construction progress Occupation planned for Autumn 2022 The digital tact control relates planned deadlines an

  21. Slide 21: Risk Management at STRABAG

    (4) RISK MANAGEMENT – RISK MANAGEMENT AT STRABAG RISK MANAGEMENT AS A KEY STRATEGIC DIFFERENTIATOR ● Hightened risk perception of climate change and resource scarcity ● Compliance, cartell and competition, prevention of corruption ● Sharing financial risk and responsibility in construction projects

  22. Slide 22: Risk of Climate Change on STRABAG's Business

    (4) RISK MANAGEMENT – RISK OF CLIMATE CHANGE ON STRABAG’S BUSINESS CLIMATE CHANGE ● More frequent and extreme climate events have made environmental risks more significant for STRABAG‘s activities, notably − storms, floods, heat and rockslides or even ground movements can affect buildings and infras

  23. Slide 23: The STRABAG Strategy & Investment Proposition

    3 THE STRABAG STRATEGY & INVESTMENT PROPOSITION

  24. Slide 24: The STRABAG Investment Proposition

    THE STRABAG INVESTMENT PROPOSITION 1 Sustainable Profit Growth with a Reliable Dividend 2 Resourcefulness, Recyclability, Construction Life Cycle 3 Technology, Innovation and Digitalisation 4 Flexible Business Model Supported by Strong Risk Management 5 Financial Strength as a Competitive Advantage

  25. Slide 25: EBIT and Operating Cash Flow History

    (1) SUSTAINABLE PROFIT GROWTH WITH A RELIABLE DIVIDEND – EBIT AND OPERATING CASH FLOW HISTORY EBIT (€M) AND EBIT MARGIN (%) 1,500 7 2022 Outlook: 5.9% Exceptionally high level is 4.3% 896 not expected to be repeated 3.7% 3.8% 3.4% 3.3% in 2022 2.6% 603 631 2.4% 2.3% 558 2.1% 425 448 Target of an EBI

  26. Slide 26: Net Income and Dividend/Payout History

    (1) SUSTAINABLE PROFIT GROWTH WITH A RELIABLE DIVIDEND – NET INCOME AND DIVIDEND/PAYOUT HISTORY NET INCOME (€M) 1,000 596 363 379 399 282 292 239 156 148 182 110 0 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 DIVIDEND (€) AND PAYOUT RATIO (%) 7.0 179 50 Payout Ratio 30–50% of 43 48 41 40 N

  27. Slide 27: Key Points of STRABAG's Digitalisation Objectives

    (3) TECHNOLOGY, INNOVATION AND DIGITALISATION – KEY POINTS OF STRABAG’S DIGITALISATION OBJECTIVES Breaking down Data Silos Data is the basis of all digitalisation activities. Therefore, we are consistently breaking down the existing 1. data silos within STRABAG and ensuring better networking with ea

  28. Slide 28: Central Elements of STRABAG's Digital Strategy

    (3) TECHNOLOGY, INNOVATION AND DIGITALISATION – THE 5 CENTRAL ELEMENTS OF STRABAG’S DIGITAL STRATEGY STRATEGIC SUCCESS FACTORS Understanding the Requirements Digital Services & Business Models of Internal Customers • Transform existing processes and • Focus on simplicity, speed, innovations into dig

  29. Slide 29: Technology, Innovation and Digitalisation – Headcount

    (3) TECHNOLOGY, INNOVATION AND DIGITALISATION – HEADCOUNT CENTRAL TECHNICAL, INNOVATION AND R&D STAFF HEADCOUNT 2,500 Total R&D spending 2021: ~ € 16 million 0 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020* 2021 SID ZT TPA * 122 employees moved to SID ZT = Central Technical Division; SID = STRAB

  30. Slide 30: Central Technical Division/TPA and SID

    (3) TECHNOLOGY, INNOVATION AND DIGITALISATION – CENTRAL TECHNICAL DIVISION/TPA AND SID CENTRAL TECHNICAL DIVISION STRABAG INNOVATION & DIGITALISATION (SID) ● Central Technical Division – provides technical services spanning the entire construction process, from the Locations acquisition phase to bid

  31. Slide 31: BIM 5D Offering Technology and Sustainability

    (3) TECHNOLOGY, INNOVATION AND DIGITALISATION – BIM 5D® OFFERING TECHNOLOGY AND SUSTAINABILITY 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 compan

  32. Slide 32: Resilience in a Volatile Industry

    (4) FLEXIBLE BUSINESS MODEL, STRONG RISK MANAGEMENT – RESILIENCE IN A VOLATILE INDUSTRY OUTPUT VOLUME (€M) ORDER BACKLOG (€M) 22% 25,000 4% 25,000 22,501 17,411 18,369 16,323 16,618 16,129 16,592 16,900 14,621 15,447 0 0 2017 2018 2019 2020 2021 2017 2018 2019 2020 2021 EBITDA (€M) AND EBITDA MARGIN

  33. Slide 33: Our Client Structure

    (4) FLEXIBLE BUSINESS MODEL, STRONG RISK MANAGEMENT – OUR CLIENT STRUCTURE 100% 64 61 62 62 61 61 63 public 65 66 67 67 36 39 38 38 39 39 37 private 35 34 33 33 0% 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 33 Investor Presentation December 2022

  34. Slide 34: Our Subcontracting and Portfolio Mix

    (4) FLEXIBLE BUSINESS MODEL, STRONG RISK MANAGEMENT – OUR SUBCONTRACTING AND PORTFOLIO MIX SUBCONTR. BUILDING & CIVIL ENGINEERING SUBC. TRANSPORTATION INFRASTRUCTURE Sub- contractors 32 % Own Sub- 45 % contractors 55 % Own Own 68% 68 % DIVERSIFIED PORTFOLIO BALANCES CYCLICAL/PROJECT-DRIVEN NATURE OF

  35. Slide 35: Own Dense Construction Materials Network

    (4) FLEXIBLE BUSINESS MODEL, STRONG RISK MANAGEMENT – OWN DENSE CONSTRUCTION MATERIALS NETWORK STRABAG FACILITIES1 OWN COVERAGE OF MATERIAL NEEDS (%) ● Asphalt mixing plants 2722 100 88% 2021 2020 83% ● Concrete mixing plants 1332 ● Quarries and gravel pits 1422 ● Cement mixing plants 53 ● Productio

  36. Slide 36: Steady Income Through Concession Business

    (4) FLEXIBLE BUSINESS MODEL, STRONG RISK MANAGEMENT – STEADY INCOME THROUGH CONCESSION BUSINESS NUMBER OF STRABAG’S PPP1 PROJECTS SELECTED PPP PROJECTS 50 38 37 36 37 35 0 MAR1, Colombia Motorway A8, Germany 2017 2018 2019 2020 2021 PPP STRATEGY SELECTED PPP PROJECTS TOTAL COUNTRY PROJECT COST (€M)

  37. Slide 37: Property & Facility Services

    (4) FLEXIBLE BUSINESS MODEL, STRONG RISK MANAGEMENT – PROPERTY & FACILITY SERVICES TARGET MARKETS & BUSINESS SEGMENTS KEY FACTS 2021 ● Technical Facility services ● Output 2021: € 582 m ● Infrastructural Facility ● ~ 6,088 employees (FTE) services ● Strong focus on digitized services based on one Di

  38. Slide 38: Real Estate Development

    (4) FLEXIBLE BUSINESS MODEL, STRONG RISK MANAGEMENT – REAL ESTATE DEVELOPMENT TARGET MARKETS & BUSINESS SEGMENTS KEY FACTS ● Circa 70-year long ● Overall performance1 2020: € 624 m successful presence on the real estate market ● ~ 370 employees ● 2 Brands: Mischek & ● Investment focus on major Europ

  39. Slide 39: Selected Real Estate Development Projects

    (4) FLEXIBLE BUSINESS MODEL, STRONG RISK MANAGEMENT – SELECTED REAL ESTATE DEVELOPMENT PROJECTS THE WILD VIENNA KUHLIO FRANKFURT APARTMENT COMPLEX APARTMENT COMPLEX Build time: 2021–2022 Build time: 2019–2021 Gross floor area: 5.000 m² Gross floor area: 15.000 m² Apartments: 109 Apartments: 167 Park

  40. Slide 40: Financial Strength as Competitive Advantage – Overview

    (5) FINANCIAL STRENGTH AS COMPETITIVE ADVANTAGE – OVERVIEW ● 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 August 2022 − Leading marke

  41. Slide 41: Financial Performance

    4 FINANCIAL PERFORMANCE

  42. Slide 42: Order Backlog at All-Time High, Output Volume Up 9%

    ORDER BACKLOG REACHED AN ALL-TIME HIGH, OUTPUT VOLUME UP BY 9 % OUTPUT VOLUME (€M) 25,000 ● Besides the core markets of Germany, Austria and the Czech Republic, the increased output volume 16,129 in the United Kingdom is of particular note 9% 7,588 6,943 0 6M/22 6M/21 2021 ORDER BACKLOG (€M) 14% 23,

  43. Slide 43: Earnings Down Compared to Previous Year's Exceptional Levels

    EARNINGS DOWN COMPARED TO PREVISOUS YEAR‘S EXCEPTIONAL LEVELS EBITDA (€M) 1,500 1,446 ● EBITDA decreased by 20 % -20% 406 325 0 6M/22 6M/21 2021 EBIT (€M) 1,500 ● Depreciation and amortisation comparable to six months 2021 896 ● EBIT declined by 55 % compared to the exceptionally good figure in the

  44. Slide 44: Positive Net Income After Minorities After Six Months

    POSITIVE NET INCOME AFTER MINORITIES AFTER SIX MONTHS NET INCOME AFTER MINORITIES (€M) EARNINGS PER SHARE (€) 1,000 6 5.71 586 -54% -54% 0.86 88 0.39 40 0 0 6M/22 6M/21 2021 6M/22 6M/21 2021 ● Net interest income was positive at € 6 million after € -3 million in 6M/21; positive exchange rate differe

  45. Slide 45: High Equity Ratio of More Than 30%

    HIGH EQUITY RATIO OF MORE THAN 30 % ASSETS1 EQUITY AND LIABILITIES1 (€m) 6M/2022 2021 (€m) 6M/2022 2021 Intangible assets 473 476 Share capital 103 103 Rights from concession Capital reserves 2,086 2,086 arrangements 483 493 Retained earnings 1,806 1,859 PP&E & investment property 2,638 2,533 Non-co

  46. Slide 46: CFO More Negative Due to Increased Inventories and Contract Assets

    CFO MORE NEGATIVE DUE TO INCREASED INVENTORIES AND CONTRACT ASSETS (€m) 6M/22 ∆% 6M/21 Cash – beginning of period 2,963 4 2,857 Cash flow from earnings 252 -27 347 ∆ Working Capital -858 -109 -410 Cash flow from operating activities -606 -869 -63 Cash flow from investing activities -289 -31 -220 Cas

  47. Slide 47: North + West: Order Backlog Again Higher, Earnings Down

    NORTH + WEST: ORDER BACKLOG AGAIN HIGHER, EARNINGS DOWN KEY INDICATORS COMMENTS (€m) 6M/22 Δ% 6M/21 ● Output volume up in Germany, slight declines in Poland, Denmark and the Benelux countries Output volume 3,703 9 3,391 ● EBIT decreased noticeably as 2021 was an exceptional Revenue 3,465 13 3,079 st

  48. Slide 48: South + East: Typical Seasonal Earnings Effects

    SOUTH + EAST: TYPICAL SEASONAL EARNINGS EFFECTS KEY INDICATORS COMMENTS (€m) 6M/22 Δ% 6M/21 ● Output volume rose by 11 %, primarily in Austria, Czech Republic an Hungary Output volume 2,303 11 2,084 ● EBIT, as usual, still in the negative terrain Revenue 2,274 11 2,049 ● Order backlog increased by 1

  49. Slide 49: International + Special Divisions: Successful Large-Scale Projects

    INTERNATIONAL + SPECIAL DIVISIONS: SUCCESSFUL LARGE- SCALE PROJECTS KEY INDICATORS COMMENTS (€m) 6M/22 Δ% 6M/21 ● Output volume higher by 8 % due to large-scale projects in the UK and the Middle East Output volume 1,525 8 1,417 ● EBIT up by 33 %: Revenue 1,500 7 1,398 − Earnings contribution from UK

  50. Slide 50: Outlook 2022 Confirmed

    OUTLOOK 2022 CONFIRMED ● Output volume 2022 should reach € 16.6 billion ● EBIT margin (EBIT/revenue) of at least 4 % for the 2022 financial year as a whole ● CAPEX (cash flow from investing activities) forecast to not exceed € 550 million SECOND BEST HALF-YEAR RESULT AFTER 2021 RECORD YEAR 200 10,00

  51. Slide 51: Appendix

    APPENDIX. > ‘\ y Oeowinsiarok SOCIETAS EUROPAEA

  52. Slide 52: Output Volume Slightly Below the Record Level of 2019

    OUTPUT VOLUME SLIGHTLY BELOW THE RECORD LEVEL OF 2019 OUTPUT VOLUME (€M) 25,000 4% ● Output volume growth in all three operating Segments of the group 16,129 15,447 ● Upturn in the home market of Austria following the negative business development as a result of the temporary suspension of construct

  53. Slide 53: Order Backlog at an All Time High of €22.5 Billion

    ORDER BACKLOG AT AN ALL TIME HIGH OF € 22.5 BILLION ORDER BACKLOG (€M) 25,000 22,501 22% ● Major contracts in the home markets of Germany 18,369 and Austria ● Order backlog increased in core markets such as Poland and Hungary, thanks to numerous new projects in a wide range of sectors ● Declines in

  54. Slide 54: Combination of Numerous Positive Earnings Effects in All Segments

    COMBINATION OF NUMEROUS POSITIVE EARNINGS EFFECTS IN ALL SEGMENTS EBITDA (€M) AND EBITDA MARGIN (%) 2,000 23% ● Improvement of EBITDA margin from 8.0 % to 9.5 % 1,446 1,174 9.5% 8.0% 0 2021 2020 EBIT (€M) AND EBIT MARGIN (%) 2,000 ● Exceptionally high level is not expected to be 42% repeated in 2022

  55. Slide 55: Earnings Per Share Significantly Increased

    EARNINGS PER SHARE SIGNIFICANTLY INCREASED NET INCOME A. MINORITIES (€M) & MARGIN (%) EARNINGS PER SHARE (€) 1,000 48% 10 48% 586 5.71 395 3.85 3.8% 2.7% 0 0 2021 2020 2021 2020 ● Absence of interest expenses lead to improved net interest income ● The income tax rate stood at 32.5 %, and was slightl

  56. Slide 56: Group Income Statement 2021

    GROUP INCOME STATEMENT 2021 (€m) 2021 2020 Δ% Output volume 16,128.92 15,446.61 4.4 Revenue 15,298.54 14,749.74 3.7 Changes in inventories/own work capitalised -109.81 23.46 n.m. Other operating income 211.26 205.81 2.6 Construction materials, consumables and services used -9,415.08 -9,304.35 -1.2 E

  57. Slide 57: Equity Ratio at 33%

    EQUITY RATIO AT 33% ASSETS1 EQUITY AND LIABILITIES1 (€m) 2021 2020 (€m) 2021 2020 Intangible assets 476 483 Share capital 103 110 Rights from concession Capital reserves 2,086 2,315 arrangements 493 512 Retained earnings 1,859 1,661 PP&E & investment property 2,533 2,571 Non-controlling interests 24

  58. Slide 58: Net Cash Position Still Exceptionally High, Equity Ratio Almost Unchanged

    NET CASH POSITION STILL EXCEPTIONALLY HIGH, EQUITY RATIO ALMOST UNCHANGED NET DEBT (+)/NET CASH (-) (€M) EQUITY RATIO (%) 2,000 40 33.9 33.3 30.7 31.6 31.5 0 -1,218 -1,144 -1,335 -2,000 -1,747 -1,937 0 2017 2018 2019 2020 2021 2017 2018 2019 2020 2021 ● Equity ratio almost unchanged despite the incr

  59. Slide 59: Cash and Cash Equivalents of €3.0 Billion

    CASH AND CASH EQUIVALENTS OF € 3.0 BILLION (€m) 2021 Δ% 2020 Cash – beginning of period 2,857 16 2,460 Cash flow from earnings 1,216 31 930 ∆ Working Capital 5 -99 350 Cash flow from operating activities 1,221 -5 1,280 Cash flow from investing activities -378 -8 -350 Cash flow from financing activit

  60. Slide 60: Cash at €3.0 Billion

    CASH AT € 3.0 BILLION CASH DEVELOPMENT (€M) COMMENTS 5,000 ● Slight increase in cash and cash equivalents, 1,221 despite the distribution of the higher dividend for 378 0 2,963 the year 2020. 2,857 744 7 0 Cash CFO CFI CFF Currency Restricted Cash translation cash 1.1.2021 31.12.2021 CFO: Cash flow

  61. Slide 61: Again Cash Inflow in 2HY/2021

    AGAIN CASH INFLOW IN 2HY/2021 WORKING CAPITAL PATTERN: CASH OUTFLOWS IN 1HY; INFLOWS IN 2HY (€M) 1,500 989 775 557 430 415 0 -278 -295 -207 -410 -550 -1,500 HY1 2017 HY2 2017 HY1 2018 HY2 2018 HY1 2019 HY2 2019 HY1 2020 HY2 2020 HY1 2021 HY2 2021 COMMENTS ● Working capital outflows generally occur o

  62. Slide 62: Positive Free Cash Flow on a High Level

    POSITIVE FREE CASH FLOW ON A HIGH LEVEL Δ WORKING CAPITAL (€M) CFO VS. CFI (€M) CFI VS. DEPRECIATION (€M) 1,500 1,500 1,500 1,280 1,221 1,076 593 593 544 550 511 350 350 378 350 378 225 5 0 0 0 2019 2020 2021 2019 2020 2021 2019 2020 2021 CFO CFI CFI Depreciation ● Free Cash Flow decreased to € 843

  63. Slide 63: North + West: Crisis-Proof Thanks to Stable Core Markets

    NORTH + WEST: CRISIS-PROOF THANKS TO STABLE CORE MARKETS KEY INDICATORS COMMENTS (€m) 2021 Δ% 2020 ● Output volume with +1 % largely stable compared to the previous year Output volume 7,902 1 7,863 Revenue 7,318 -2 7,462 ● EBIT grew by 9 % thanks to positive contributions to earnings achieved in the

  64. Slide 64: Segment South + East Expects Return to Pre-Crisis Level

    SEGMENT SOUTH + EAST EXPECTS RETURN TO PRE-CRISIS LEVEL KEY INDICATORS COMMENTS (€m) 2021 Δ% 2020 ● Output volume up by 6 %, primarily due to post- crisis recovery in Austria Output volume 4,930 6 4,633 Revenue 4,925 7 4,603 ● EBIT increased by 11 % due to improvements in almost all countries in thi

  65. Slide 65: International + Special Divisions: Improvements in All Major Business Areas

    INTERNATIONAL + SPECIAL DIVISIONS: IMPROVEMENTS IN ALL MAJOR BUSINESS AREAS KEY INDICATORS COMMENTS (€m) 2021 Δ% 2020 ● Output volume 12 % above previous year’s level: large projects in the international business Output volume 3,161 12 2,812 Revenue 3,039 14 2,670 ● Extraordinarily strong growth of

  66. Slide 66: Output Volume by Country

    OUTPUT VOLUME BY COUNTRY (€m) 2017 2018 2019 2020 2021 CAGR1 (%) Germany 6,960 7,877 7,819 7,323 7,462 2 Austria 2,333 2,542 2,679 2,460 2,694 4 Poland 848 975 1,129 1,183 1,152 8 Czech Republic 629 706 783 826 948 11 Hungary 551 714 848 671 652 4 Americas 385 515 714 494 482 6 United Kingdom2 - - 1

  67. Slide 67: STRABAG Market Share Data 2020

    STRABAG MARKET SHARE DATA 2020 COUNTRY CONSTRUCTION OUTPUT (€m) STRABAG OUTPUT (€m) MARKET SHARE (%) Germany 396,571 7,323 1.8 Austria 45,811 2,460 5.4 Poland 54,904 1,183 2.2 Czech Republic 23,728 826 3.5 Hungary 15,927 671 4.2 Russia 121,042 52 0.0 Slovakia 4,899 297 6.1 Romania 23,440 250 1.1 Cro

  68. Slide 68: Market Leading Position in Central and Eastern European Countries

    MARKET LEADING POSITION IN CENTRAL AND EASTERN EUROPEAN COUNTRIES WESTERN EUROPE EASTERN EUROPE Rank GERMANY POLAND CZECH REPUBLIC HUNGARY 1. STRABAG 7,323 Budimax 1,816 Metrostav 978 Mészáros 697 2. Vinci 3,213 STRABAG 1,183 STRABAG 826 Duna Aszfalt 675 3. Goldbeck 2,636 Porr 561 Eurovia 606 STRABA

  69. Slide 69: Own Building Materials Network

    OWN BUILDING MATERIALS NETWORK 69 Investor Presentation December 2022

  70. Slide 70: Financing PPP-Projects

    FINANCING PPP-PROJECTS TYPICAL FINANCING EQUITY INVESTED IN PPP (€M) ● The SPV1 is financed with equity (10%–30%) and bank 700 debt (70%–90%) 427 515 554 556 ● STRABAG – as a shareholder in the SPV – 400 puts in equity ● Other SPV shareholders are e.g. governments, infrastructure funds and developer

  71. Slide 71: 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

  72. Slide 72: Property & Facility Services: Strategic Rationale & Targets

    PROPERTY & FACILITY SERVICES: STRATEGIC RATIONALE & TARGETS BROAD RANGE OF CUSTOMERS – SELECTION Services for all types of real estate and property, as offices, logistics, industrial sites and plants, technology buildings, data centres) CA Immo, One Frankfurt, Stanica Nivy, Bratislava, Allianz, Münc

  73. Slide 73: Stable Shareholder Structure

    STABLE SHAREHOLDER STRUCTURE SHAREHOLDER STRUCTURE SINCE 1/2022 MKAO „Rasperia Trading Limited“ 6.7% Retail 27.8% Institutional Continental 2.2% Europe (ex. Austria) 1.9% Other Haselsteiner Family 28.3% 14.4% Free float 1.7% Institutional Austria 1.5% Institutional North America 29.5% 0.4% Instituti

  74. Slide 74: Organisational Structure – Central Units

    ORGANISATIONAL STRUCTURE – CENTRAL UNITS CEO Operative Segments North + West South + East International + Special Divisions Board Member 1 1 1 1 Divisions 4 67 3 5 Division Manager Subdivisions 36 30 24 35 34 1 31 Subdivision Manager Central Divisions & Central Staff Divisions CFO CEO CDO BRVZ Busin

  75. Slide 75: 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

  76. Slide 76: STRABAG Share Is Covered by Five Institutions

    STRABAG SHARE IS COVERED BY FIVE INSTITUTIONS Company Date Title Target Price Rating Erste Group 2.12.2022 Company Report € 52.5 Buy Kepler Cheuvreux 17.11.2022 Key takeaways from the CMD € 45.0 Buy RBI 31.8.2022 FY 22 financial targets reiterated € 51.5 Buy Baukonzern bestätigte mit Blick auf ein R

  77. Slide 77: Financial Calendar and IR Contact

    FINANCIAL CALENDAR AND IR CONTACT • Annual Report 2022 27 April 2023 • Trading Statement January-March 2023 31 May 2023 • Annual General Meeting 2023 16 June 2023 • Semi-Annual Report 2023 31 August 2023 • Trading Statement January-March 2023 16 November 2023 Marianne Jakl Head of Investor Relations

Strabag — Investor Presentation (December 2022) on 6ix