Porr Ag · VIE:POS
Porr — Investor Presentation (March 2023)
46 slides from Porr's investor presentation, March 2023
Slide 1: Investor Presentation March 2023
Investor Presentation March 2023
Slide 2: Disclaimer
• This presentation was prepared by PORR AG (the "Company") • This presentation contains forward-looking statements solely for use at investors’ meetings and is provided solely relating to the business, financial performance and results of for informational purposes. the Company and/or the industry
Slide 3: Investor presentation FY 2022
Investor presentation FY 2022 March 2023 3
Slide 4: PORR today, Transformation, Financial Performer
01 • Leading One-Stop Shop in construction • Strong long-term upside for PORR home markets PORR today • PORR ideally positioned to address megatrends 02 • Strategic Focus on Green and Lean • Pioneering the must-win battle in digitalisation Transformation • Offering sustainability along the value cha
Slide 5: PORR at a glance: staff, output, EBT, order backlog
Home markets Project markets Design & Market position # Engineering Demolition Construction Full- Service- #3 Provider #3 Operation & Refurbishment #6 Management & Renovation #2 #7 #1 #5 > 20.000 Staff members > EUR 6.2 bn Production output (53% civil engineering, 36% building construction, 11% othe
Slide 6: Megatrends: Demography, Deglobalisation, Decarbonisation, Digitalisation
Demography Deglobalisation Decarbonisation Digitalisation +80% urban population Regional focus for On the way to a Digital Europe Programme until 2050 international resilience green footprint worth EUR 7.5 bn Smart infrastructure, Regional procurement and Circular economy to fulfil Data era, process
Slide 7: Intelligent Growth, Green and Lean
Intelligent Growth Green and Lean Company Staff Lean ESG • Best in Class: in • PORR Principles first • Design-build contractor – • Clear commitment to construction and one-stop shop for every ecological, • Best Place to Work technologies process environmentally friendly • Nurturing talent – construc
Slide 8: Investor presentation FY 2022
Investor presentation FY 2022 March 2023 8
Slide 9: FY 2022 highlights
Order book at all-time high 1 Addressing client’s top challenges Established market leadership in the long run Strong production output of EUR 6.2 bn (+8.7%) 2 Strong revenue stream (+11.9%) EBT at EUR 110.0m (+28.9%) 3 Record delivery on track – EPS of EUR 1.65 (+39.8%) Strong financial delivery 4
Slide 10: Material costs stabilising, ongoing demand in sector
Material costs stabilising Ongoing demand in sector 6% 190 Indexed by 31.12.2021 170 4% Annual growth 150 2% 130 110 0% 90 -2% Dez 21 Mrz 22 Jun 22 Sep 22 Dez 22 2023 2024 2025 AT: Bitumen DE: Reinforcing steel in bars Diesel AT DE CH PL CZ SK • Back to new normal: Material prices • Steady rise afte
Slide 11: Record order backlog and order intake
Order backlog in EUR m Order intake in EUR m +30% 8,204 7,764 +22% 7,067 6,659 6,414 6,298 5,905 53% 5,437 53% 55% 47% 32% 27% 28% 27% 13% 11% 13% 8% 5% 4% 13% 11% 31.12.2019 31.12.2020 31.12.2021 31.12.2022 31.12.2019 31.12.2020 31.12.2021 31.12.2022 Civil engineering Non-residential construction C
Slide 12: Selected projects
Drammen Bybrua Heating power plant Wien Museum NO Siezenheim, AT AT Waste to Energy plant University Hospital DK11 expressway Rzeszow, PL St. Pölten, AT PL Investor presentation FY 2022 March 2023 12
Slide 13: Record production output
Production output in EUR m +12% • Record output resulting from 6,226 increases in most segments (+8.7%) 5,570 5,727 5,185 • AT / CH with +8.2% output as 53% 51% stable backbone • Major projects in infrastructure 14% construction coming into execution 18% phase in CEE (+19.2%) 13% 10% 9% 10% • PL sho
Slide 14: EPS and EBT increase
EPS in EUR EBT in EUR m EBT margins in % of production output +39.8% +28.9% 110.0 1.65 85.4 1.18 37.4 1.5% 1.8% 0.50 0.7% -1.0% -51.0 -2.28 2019 2020 2021 2022 2019 2020 2021 2022 • +40% earnings per share increase • Strong earnings growth despite inflation and cost increases • Bottom-line performan
Slide 15: EBT by segment: AT/CH, DE, PL, CEE, Infra
EBT in EUR m 2021 EBT margins in % of production output 2022 AT / CH DE PL CEE Infra 2.7% 2.6% -0.5% 0.4% 1.9% 2.7% 1.0% 1.8% -2.4% 0.0% 84.7 80.1 21.4 13.3 11.7 3.6 5.7 0.0 -4.3 -12.9 • Record output and • Increased order • Significant • Strong increase in • Turnaround continued strong backlog in h
Slide 16: Stable net cash position
Equity in EUR m Net debt (+) / Net cash (-) in EUR m Equity ratio in % 824 799 651 599 20.3% 19.3% 18.5% 343 Stable net 16.4% cash position 135 -65 -59 2019 2020 2021 2022 2019 2020 2021 2022 • Repayment of EUR 51.1m of hybrid • More than EUR 400m reduction in capital – share of hybrid capital of to
Slide 17: Working capital and free cash flow
Working Capital in EUR m Free Cash Flow in EUR m Working Capital in % of total assets 263 213 202 191 186 5.8% 139 5.3% 5.0% 80 0.4% 15 2019 2020 2021 2022 2019 2020 2021 2022 • Further reduction in operational • High level FCF despite impacts from working capital volatile working capital cash flow
Slide 18: Liquidity reserve and maturity profile
Cash and cash equivalents in EUR m Maturity profile as of February 2023 in EUR m 765 14 656 582 583 359 93 320 63 17 17 10 18 12 9 3 10 6 6 4 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 from 2028 Term loans SSD floating SSD fix • Strong liquidity reserve at EUR ~950m • Redemption of EUR 1
Slide 19: ESG ratings
AA Top segment in Construction & Engineering segment C+ / Prime Status Top 10% of Industry B / Management segment Climate Change & Water Security 99% for PORR Bau GmbH ESG Audit 29.5 / Medium Risk Top 15% in Construction & Engineering Investor presentation FY 2022 March 2023 19
Slide 20: Dividend per share and payout ratio
DPS in EUR Dividend yield in % 1.10 1.10 0.60* 0.50 6.3% 5.3% 4.0% 3.6% - - 2017 2018 2019 2020 2021 2022 • Payout ratio of 36.4%* in line with dividend policy of 30-50% payout ratio • Dividend policy reflects earnings outlook and reliability * Proposal to the AGM Investor presentation FY 2022 March
Slide 21: Outlook 2023
Record order book and good infrastructure environment Production output at least on 2022 level Further increase in earnings Investor presentation FY 2022 March 2023 21
Slide 22: Investor presentation FY 2022
Investor presentation FY 2022 March 2023 22
Slide 23: PORR 2025: Milestones 2022 and measures
Milestones 2022 Measures 2025 • Record output & order backlog • Promote sustainable construction • Expansion of permanent business • Extend value chain and permanent Markets business • Increasing backlog in sustainable construction • Optimise portfolio mix • Improved margin and risk profile of • Rol
Slide 24: Segment overview: order backlog, intake, top orders
Order backlog Order intake Segment in EUR in EUR Current TOP 3 orders • BMW Production hall / Industrial Austria & 3,242m 3,511m • Revitalisation Auenfeld barracks / Government Switzerland +2.8% -0.3% • Provincial hospital Wr. Neustadt / Infrastructure • Südschnellweg expressway Hanover/ Road 1,435m
Slide 25: Austria & Switzerland output and EBT margins
Output Austria & Switzerland Production Output and EBT margins in EUR m Contribution 53% • Strong performance due to Historical EBT margin COVID impact to Output CAGR 2020-25: of > 3% (2011-20) fade out in 2021 ~4.8% • Growth in output level to an all-time high 3,269 • High order backlog: full capac
Slide 26: Germany output and EBT margins
Output Germany Production Output and EBT margins in EUR m Contribution 14% • More than 70% of current business Transformation Focus on well- Output CAGR 2020-25: is well-performing (with EBT margin >3%) in civil engineering performing units ~4.0% • Strong performance in civil engineering and buildin
Slide 27: Poland output and EBT margins
Output Poland Production Output and EBT margins in EUR m Contribution 13% • Output increase (+9.8%) in almost Output CAGR 2020-25: all units Strong growth Selective project acquisition ~9.3% • Margin improvement due to higher contract margins • Increased order backlog in building and industrial cons
Slide 28: CEE output and EBT margins
Output CEE Production Output and EBT margins in EUR m Contribution 10% • Very strong development in terms of Investments in Smaller scale, regional Output CAGR 2020-25: output and EBT market position expansion and major projects ~9.4% • Strong increase in building construction and major projects • L
Slide 29: Infrastructure International output and EBT margins
Output Infrastructure International Production Output and EBT margins in EUR m Contribution 8% • Decrease of output due to completion of Volatile business Refocus on Output CAGR 2020-25: major projects in tunnelling in project markets technological excellence ~4.5% • Profitability turnaround achieve
Slide 30: EU taxonomy: revenue, CAPEX, OPEX
Revenue CAPEX OPEX Aligned 4% 3% 4% 5% 11% Eligible 30% Non- eligible 66% 86% 91% • Infrastructure for rail • High eligible CAPEX coming • OPEX in infrastructure for transport as PORR’s biggest from investments for rail transport and material taxonomy-aligned activity material recovery from recovery
Slide 31: Materiality approach and action fields
Our approach at a glance 4 Action fields Research and analysis of Decarbonisation 1 Better long list based on ESRS drafts Circular economy Environment Habitats Evaluation of double materiality - Inside-out: expert workshops Occupational safety 2 Better - Outside-in: stakeholder survey, Health Societ
Slide 32: Decarbonisation, circular economy, habitats
Decarbonisation Circular Economy Habitats Energy intensity in MWh/EUR Recycled material used in t Total water consumption in m³ 0.134 -5.5% +10% 93,200 380 -37% 84,761 240 0.127 2021 2022 2021 2022 2021 2022 • Smart metering system in • Mobile plants for materials to • On-site water recirculation ro
Slide 33: Occupational safety, working worlds, ethics
Occupational Safety Human Rights, Ethics Working Worlds and Health and Compliance Work-related injuries rate* Training hours in h Anti-corruption training 15,7 -2.9% +36% 103,547 +91% 3,158 76,396 1,655 15,3 2021 2022 2021 2022 2021 2022 • Vision Zero • PORR Campus & Academy: • Whistleblowing hotlin
Slide 34: BIM: team, technology, standards, processes
Team Technology Standards Processes • Collaboration • Data management • BIM standards • Planning • Communication • Data formats • Project guidelines • Calculation • Responsibilities • Data sharing • Management policies • Construction scheduling • Identification • Software • Quantity calculation • Tr
Slide 35: BIM operations, training and spotlight projects
Operations & Training Spotlight on • +95% participants in BIM trainings • 25 pure-play BIM projects 189 PEMA 3 Office and hotel 97 construction, Projektbild Innsbruck, AT 2021 2022 Wien • iTwo Roll-out in full swing Museum • Adaption of Workflows across entire Group Projektbild Museum construction,
Slide 36: LEAN on management and operational level
On management level PORR AG • Less layers of hierachy pde Integrale PORR Equipment PORR Bau GmbH PORR Beteili- Shared Service • Lean in Planung Services gungen & Mgmt. Center organisation – Infrastructure value added AT /CH DE PL CEE International processes • LEAN Design: optimise value, minimise wa
Slide 37: LEAN Masterplan 2023+
LEAN Masterplan 2023+ Goals set Milestones 1 Sustainable increase of earnings in respective units • Pilot projects 2 Use of PORR LEAN Principles, • 3 countries methods and standards in • 6 units operational and preparational processes • Trained staff: 960 3 Application of continuous • Educational pr
Slide 38: Investor presentation FY 2022
Investor presentation FY 2022 March 2023 38
Slide 39: Key earnings figures, assets and share data
Key Earnings Figures EUR m 2022 %∆ 2021 Production output1 6,226 8.7% 5,727 Revenue 5,786.0 11.9% 5,169.8 EBT 110.0 28.9% 85.4 Net profit for the period 82.6 34.6% 61.4 Earnings per share (EUR) 1.65 39.8% 1.18 Key Assets and Financial Figures EUR m 31.12.2022 %∆ 31.12.2021 Total assets 4,146.8 2.0%
Slide 40: Key ratios
EUR m 2022 ∆ 2021 Production output1 6,226 8.7% 5,727 Revenue 5,786.0 11.9% 5,169.8 EBITDA 318.9 10.9% 287.5 in % of Production output 5.1% 0.1PP 5.0% EBIT 120.1 26.1% 95.2 in % of Production output 1.9% 0.3PP 1.7% EBT 110.0 28.9% 85.4 in % of Production output 1.8% 0.3PP 1.5% Profit for the period
Slide 41: Non-current and current assets
EUR m 31.12.2022 Δ 31.12.2021 Intangible assets 194.1 3.5% 187.5 Property, plant and equipment 1,055.7 2.6% 1,028.7 Non-current assets Investment property 33.9 33.3% 25.5 Shareholdings in companies accounted for 78.4 -8.2% 85.4 under the equity method Other financial assets 8.4 -76.0% 34.9 Other non
Slide 42: Equity and liabilities
EUR m 31.12.2022 %Δ 31.12.2021 Share capital 39.3 0.0% 39.3 Capital reserve 358.8 0.0% 358.8 Equity Profit-participation rights/hybrid capital 247.5 -17.5% 300.0 Other reserves 119.0 28.6% 92.5 Non-controlling interest 34.3 1.3% 33.9 Total equity 798.9 -3.1% 824.4 Provisions 415.9 3.3% 402.8 Leasing
Slide 43: Major orders 2022 by quarter
2022 Q1 Q2 Q3 Q4 • Drammen Bybrua • Waste to Energy plant • Highbridge Horb-Neckartal • BMW Production hall NO/79.4m Rzeszów/PL/62.4m DE/94.8m DE/n.a. • ARGE Stadtstraße • Nova Paka bypass • Office Building PSE • Expressway Hannover Vienna/AT/77.6m CZ/52.9m PL/90.1m DE/234.6m • A9 express way genera
Slide 44: Ownership structure and free float split
Ownership Structure Free Float – Geographical Split 21.5% 36.3% 50.4% 49.6%1 5.6% 6.2% 6.4% 14.0% 9.3% 0.8% Austria US Germany Rest of the World Free float UK Not directly assignable Syndicate (Strauss Group, IGO-Ortner Group) Rest of Europe Retail 1) thereof 4.3% Heitkamp Construction AG and 3.6% P
Slide 45: Analyst coverage and price targets
Institution Analysts Price Target Recommendation Last Update Kepler Cheuvreux Patrick Steiner 15.5 Buy 15.03.2023 ERSTE Group Michael Marschallinger 17.2 Buy 09.03.2023 Warburg Research Philipp Kaiser 20.0 Buy 01.03.2023 Stefan Scharff SRC Research 18.5 Buy 28.02.2023 Christopher Mehl Joh. Berenberg
Slide 46: Share information, upcoming events, IR contact
Share Information 1 Upcoming Events Share price EUR 13.54 18 Apr 2023 Record Date for the attendance of the 143rd AGM Market capitalisation EUR 531.8m 28 Apr 2023 143rd Official market Vienna Stock Exchange Annual General Meeting Prime Market 5 May 2023 Trade ex-dividend Number of shares 39,278,250