Slide 1: STRABAG SE Investor Presentation December 2015
STRABAG SE INVESTOR PRESENTATION DECEMBER 2015
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 Investor Presentation December 2015 Page 3
Slide 4: STRABAG at a Glance
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Slide 5: STRABAG at a Glance
STRABAG AT A GLANCE FACTS & FIGURES MARKETS ● Output volume 2014: € 13.6 bn ● Net income 2014: € 148 m ● 73,000 employees ● > 500 locations in more than 80 countries ● Highly innovative: Central Technical Division with over 850 engineers ● Equity ratio: > 30% ● Strong brands: STRABAG & Züblin #1 #2
Slide 6: Largest Projects in Progress
LARGEST PROJECTS IN PROGRESS NO SPECIFIC EXPOSURE TO ANY LARGE PROJECT (FEB. 2015) As % of Order total Country Project backlog order in €m backlog ltaly Pedemontana motorway 979 6.5 Chile Alto Maipo hydropower complex 366 2.4 Stuttgart 21,underground Germany railway station 284 1.9 Austria Koralm Tu
Slide 7: Flagship Projects – Examples
FLAGSHIP PROJECTS – EXAMPLES PPP-MOTORWAY A8 – JÓZEF PIŁSUDSKI- GERMANY MUSEUM – POLAND Upgrading and operation of Building of a museum in A8 from Ulm to Augsburg Warsaw, 5-D planning Size: € 205 m (=50% share) Size: € 32 m Project schedule: 2011–2016 Project schedule: 2015–2017 Project scope: Upgra
Slide 8: Flagship Projects – International
FLAGSHIP PROJECTS – INTERNATIONAL HYDROELECTRIC POWER CONTAINER PORT – PLANT – CHILE MAURITIUS Size: € 366 m Size: € 45 m (=50% share) Project schedule: 2014–2017 Project schedule: 2014–2016 Project scope: all earth and Project scope: new berthing concrete works for the intake quay, quay facilities,
Slide 9: Business Segment Contribution 2014
BUSINESS SEGMENT CONTRIBUTION 2014 International + North + West South + East Special Divisions 22% of 46% of output output volume volume 31% of output volume Austria, Switzerland, Hungary, International, Tunnelling, Czech Republic, Slovakia, Construction Materials (except Germany, Poland, Benelux, A
Slide 10: Key Financials
KEY FINANCIALS (€m) 2014 2013 % Output volume 13,566 13,573 0 Revenue 12,476 12,394 1 EBITDA 720 695 4 EBIT 282 262 8 Net income after minorities 128 114 13 Cash flow from operating activities 805 694 16 Cash flow from investing activities -435 -332 -31 Balance sheet total 10,276 10,561 -3 Group eq
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 Region-
Slide 12: The Construction Sector within Evolving Global Themes
2 THE CONSTRUCTION SECTOR WITHIN EVOLVING GLOBAL THEMES
Slide 13: Three European Trends: (1) Urbanisation / Demographics
THREE EUROPEAN TRENDS: (1) URBANISATION / DEMOGRAPHICS GERMANY: DAILY TRAFFIC LOAD 2025F ● By 2050 66% of the global population will live in cities (today: 54%) – an increase of the urban population by 2.5 billion. Higher need for infrastructure ● Example: Significant need for rehabilitation and ext
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 2005 2012 Source: Eurostat, Wikipedia Investor Presentation December 2015 2 Page 14
Slide 15: Three European Trends: (2) Energy / Sustainability
THREE EUROPEAN TRENDS: (2) ENERGY / SUSTAINABILITY ● Kyoto Protocol: Current commitment period 2013–2020; 37 countries with binding emissions reduction targets (mostly in Europe) ● EU: Greenhouse gas emissions to be cut by 20% until 2020 (vs. 1990), planned reduction of 80–95% by 2050 ● Construction
Slide 16: Three European Trends: (3) Financial Environment
THREE 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 Tan
Slide 17: Construction Segments with Own Business Models and Cycles
CONSTRUCTION SEGMENTS WITH OWN BUSINESS MODELS AND CYCLES CONSTRUCTION SUBSEGMENTS GERMANY STRABAG CLIENT STRUCTURE 10% Private 34% 0% 2011 2012 2013 2014e 2015e Public 66% -10% Residential Other building construction Civil CONSTRUCTION OUTPUT BY COUNTRIES ● Public clients: 10% The price is mostly t
Slide 18: 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 Investor Presentation December 2015 2 Page 18
Slide 19: The STRABAG Strategy & Investment Proposition
3 THE STRABAG STRATEGY & INVESTMENT PROPOSITION
Slide 20: 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 21: Six Strategic Fields
SIX STRATEGIC FIELDS Investor Presentation December 2015 3 Page 21
Slide 22: The STRABAG Investment Proposition
THE STRABAG INVESTMENT PROPOSITION (1) Growth and 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 flex
Slide 23: (1) Growth and Margin Upside: Targets
(1) GROWTH AND MARGIN UPSIDE: TARGETS MID-TERM TARGET OF 3% EBIT MARGIN TOP-LINE GROWTH AS OF 2015 EXPECTED 12% 4% 12% 0% 2.4% 2.4% 3.0% 2.1% 2.3% -2% -2% -3% 1.6% 0% -5% 2010 2011 2012 2013 2014 2016 2010 2011 2012 2013 2014 ● Task Force ● Output volume 2014: € 13.6 bn (stable vs. 2013) Streamlin
Slide 24: (1) Growth and Margin Upside: Risk Management
(1) GROWTH AND MARGIN UPSIDE: RISK MANAGEMENT RISK MANAGEMENT INSTRUMENTS TYPES OF CONTRACTS ● Four-eyes-principle ● Joint Venture with the client ● Internal price committees (including a STRABAG ● Cost + fee SE board member when project volume ≥ € 70 m) ● Guaranteed maximum price ● Internal Audits
Slide 25: (2) Resilience over a Volatile Period
(2) FLEXIBLE BUSINESS MODEL, SELECTIVE DIVERSITY: RESILIENCE OVER A VOLATILE PERIOD OUTPUT VOLUME (€M) ORDER BACKLOG (€M) 20000 20000 14,326 14,043 13,573 14,739 14,403 12,777 13,566 13,354 13,203 13,470 0 0 2010 2011 2012 2013 2014 2010 2011 2012 2013 2014 EBITDA (€M) AND EBITDA MARGIN (%) EBIT (€M
Slide 26: (2) Subcontracting and Portfolio Mix
(2) FLEXIBLE BUSINESS MODEL, SELECTIVE DIVERSITY: SUBCONTRACTING AND PORTFOLIO MIX SUBCONTR. BUILDING & CIVIL ENGINEERING SUBC. TRANSPORTATION INFRASTRUCTURE Sub- Own contractors 30% 30% Sub- Own contractors 70% 70% DIVERSIFIED PORTFOLIO BALANCES CYCLICAL/PROJECT-DRIVEN NATURE OF CONSTRUCTION Projec
Slide 27: (2) Own Dense Construction Materials Network
(2) FLEXIBLE BUSINESS MODEL, SELECTIVE DIVERSITY: OWN DENSE CONSTRUCTION MATERIALS NETWORK STRABAG FACILITIES(1) OWN COVERAGE OF MATERIAL NEEDS (%) ● Asphalt mixing plants 288(2) 100% 82% 84% ● Concrete mixing plants 149(2) ● Total quarries and gravel pits 171(2) ● Cement mixing plants 5(3) 28% 29%
Slide 28: (2) Steady Income through Concession Business
(2) FLEXIBLE BUSINESS MODEL, SELECTIVE DIVERSITY: STEADY INCOME THROUGH CONCESSION BUSINESS NUMBER OF STRABAG’S PPP(1) PROJECTS SELECTED PPP PROJECTS 50 35 36 36 37 33 0 2010 2011 2012 2013 2014 Vocational schools, Germany Motorway A8, Germany TOTAL CONCESSION PPP STRATEGY COUNTRY PROJECT COST (€M)
Slide 29: (2) Property & Facility Services
(2) FLEXIBLE BUSINESS MODEL, SELECTIVE DIVERSITY: PROPERTY & FACILITY SERVICES TARGET MARKETS KEY FACTS 2014 ● Output 2014: € 985 m ● ~ 14,250 employees ● ~ 57,100 objects in portfolio(1) ● Active in 12 countries ● „Top Arbeitgeber in Deutschland“ (Top Employer in Germany) ● September 2014: Acquisit
Slide 30: (2) BIM/5D Could Be Revolution in Construction
(2) OFFERING TECHNOLOGY AND SUSTAINABILITY: BIM/5D® COULD BE 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 in
Slide 31: (2) 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 1600 1600 ● Central Technical Division – organisation in Number of employees charge of planning and execution of R&D projects 800 ● Focus on building co
Slide 32: (2) Example on Non Financial Targets – Women
(2) OFFERING TECHNOLOGY AND SUSTAINABILITY: EXAMPLE ON NON FINANCIAL TARGETS – WOMEN GROW SHARE OF WOMEN IN TOTAL EMPLOYMENT AND MANAGEMENT POSITIONS EACH YEAR 16% 13.8% 13.6% 8.5% 8.6% 0% 2014 2013 Women as % of staff Women as % of management Investor Presentation December 2015 3 Page 32
Slide 33: (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 August 2015 stable margins in an oth
Slide 34: (3) Financial Strength: Diversified Financing
(3) FINANCIAL STRENGTH: DIVERSIFIED FINANCING DEBT REPAYMENT PROFILE (€M) DIVERSIFIED MEANS OF FINANCING 400 ● Cash and surety credit lines (31 Dec. 2014): € 6.8 bn (thereof cash credit lines of 200.00 € 0.6 bn) 175.00 100.00 116.50 23.50 ● Bond issue: € 200 m, 1.625%, 2015-2022 100.00 ● € 2.0 bn sy
Slide 35: (4) Attractive Dividends: Consistent Payout Ratio
(4) ATTRACTIVE DIVIDENDS: CONSISTENT PAYOUT RATIO NET INCOME A.M. (€M) AND MARGIN (%) DIVIDEND (€) AND PAYOUT RATIO (%) 300 €2 100% 195 13% 175 128 41% 40% 114 36% 34% 34% 1.4% 1.4% 61 1.0% 0.9% 0.60 0.5% 0.55 0.50 0.45 0.20 0 €0 0% 2010 2011 2012 2013 2014 2010 2011 2012 2013 2014 EARNINGS PER SHAR
Slide 36: (4) Total Shareholder Return 2010–2014
(4) ATTRACTIVE DIVIDENDS: TOTAL SHAREHOLDER RETURN 2010–2014 30% Dividend policy: 30-50 % of net income after minorities distributed as a dividend Ø dividend yield: 2.7% 2.9% 7.9% 2.1% 4.1% 2.7% 3.0% 2.8% -1.0% -7.6% -14.7% -20% 2010 2011 2012 2013 2014 Return from share price Return from dividends
Slide 37: Financial Performance
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Slide 38: Output Volume Grows by 6%, Order Backlog Decreases by 11%
OUTPUT VOLUME GROWS BY 6 %, ORDER BACKLOG DECREASES BY 11 % OUTPUT VOLUME (€M) 20000 ● Growth driven primarily by the markets of Slovakia, Germany, the Czech Republic and 6% 13,566 Poland 10,256 9,712 0 9M/15 9M/14 2014 ORDER BACKLOG (€M) 20000 -11% ● Different trends in the backlog: 15,400 13,761 1
Slide 39: EBITDA and EBIT Improvement in the Double-Digit Area
EBITDA AND EBIT IMPROVEMENT IN THE DOUBLE-DIGIT AREA EBITDA (€M) 750 720 ● Higher revenue leads to higher EBITDA 15% 404 350 9M/15 9M/14 2014 -150 EBIT (€M) 450 ● Depreciation and amortisation at about last year’s 282 80% level 116 64 ● Improvement in EBIT due to segments South + 0 East and Internat
Slide 40: Earnings per Share at € 0.57 after € 0.14
EARNINGS PER SHARE AT € 0.57 AFTER € 0.14 NET INCOME AFTER MINORITIES (€M) EARNINGS PER SHARE (€) 200 2 305% 128 305% 1.25 58 0.57 14 0.14 9M/15 9M/14 2014 9M/15 9M/14 2014 -200 -2 ● Positive FX gains in Swiss franc and lower interest rate for staff-related provisions lead to less negative interest
Slide 41: Equity Ratio Still at Nearly 30%, Net Debt Significantly Reduced
EQUITY RATIO STILL AT NEARLY 30 %, NET DEBT SIGNIFICANTLY REDUCED ASSETS(1) LIABILITIES AND EQUITY(1) (€m) 9M/15 2014 (€m) 9M/15 2014 Intangible assets 534 536 Share capital 114 114 PP&E & investment property 1,982 2,048 Capital reserves 2,311 2,311 Associated companies 390 402 Retained earnings 488
Slide 42: Increased Cash Flow from Earnings, but Higher WC
INCREASED CASH FLOW FROM EARNINGS, BUT PROJECT DEVELOPMENT RESULTS IN HIGHER WC (€m) 9M/15 ∆% 9M/14 Cash – beginning of period 1,906 13 1,685 Cash flow from earnings 311 20 258 ∆ Working Capital -419 -14 -367 Cash flow from operating activities -108 1 -109 Cash flow from investing activities -179 53
Slide 43: North + West: Losses Comparable to Last Year
NORTH + WEST: LOSSES COMPARABLE TO LAST YEAR KEY INDICATORS COMMENTS (€m) 9M/15 ∆% 9M/14 ● Output volume nearly unchanged: up in Poland, Output volume 4,569 0 4,587 down in Sweden and Benelux Revenue 4,257 1 4,234 ● EBIT impacted by higher winter losses in Order backlog 5,697 -6 6,054 transportation
Slide 44: South + East: EBIT Rose by a Third
SOUTH + EAST: EBIT ROSE BY A THIRD KEY INDICATORS COMMENTS (€m) 9M/15 ∆% 9M/14 ● Output volume grew by 10%: Significant increases 3,256 in Slovakia and Czech Republic, other markets Output volume 10 2,967 mixed Revenue 3,119 13 2,768 ● EBIT +32%: agreements reached on projects after Order backlog 3,
Slide 45: International + Special Divisions: Earnings Benefit from Raw Materials
INTERNATIONAL + SPECIAL DIVISIONS: EARNINGS BENEFIT FROM IMPROVEMENT IN RAW MATERIALS KEY INDICATORS COMMENTS (€m) 9M/15 ∆% 9M/14 ● Growth in output volume (+13%) due to acquisition of 2,332 2,072 DIW Group last year as well as increases in non- Output volume 13 European markets Revenue 2,085 11 1,8
Slide 46: Highly Seasonal Business
HIGHLY SEASONAL BUSINESS QUARTERLY DEVELOPMENT OF OUTPUT VOLUME AND EBIT (€M) 4500 4.169 4.020 4.075 4.051 3.932 3.966 3.964 3.932 3.774 3.854 3.736 3.508 3.436 6.2% 6.1% 5.6% EBIT margin(1) 2.468 2.263 2.344 2.135 5.0% 4.9% 4.9% 4.7% 4.4% 3.2% 2.6% -0.1% 1.6% 1.7% 191 205 222 -7.0% 127 168 172 218
Slide 47: Output Volume 2014 Stable at a High Level
OUTPUT VOLUME 2014 STABLE AT A HIGH LEVEL OUTPUT VOLUME (€M) 20000 0% ● Output volume unchanged at a high € 13.6 bn 13,566 13,573 ● Increases in Germany and Austria offset with declines in the RANC region and Romania ● Germany and Austria still the two largest single markets 0 2014 2013 OUTPUT VOLUM
Slide 48: High Order Backlog of € 14.4 bn
HIGH ORDER BACKLOG OF € 14.4 BN COVERS MORE THAN ONE YEAR‘S OUTPUT VOLUME ORDER BACKLOG (€M) 20000 7% ● Growth of the order backlog especially in Central and Eastern Europe 14,403 13,470 ● Already high level in Germany 0 2014 2013 ORDER BACKLOG 2014 BY REGION Rest of World 10% Germany Rest of 34% Eu
Slide 49: EBITDA and EBIT Increased
EBITDA AND EBIT INCREASED EBITDA (€M) AND EBITDA MARGIN (%) 800 4% 720 695 ● Improved earnings in Poland and reduction of burdens in connection with a hydraulic engineering project in Sweden ● Hydraulic engineering in Germany, a Dutch 5.8% 5.6% transportation infrastructures project and the business
Slide 50: Earnings per Share Rose by 13% to € 1.25
EARNINGS PER SHARE ROSE BY 13% TO € 1.25 NET INCOME A. MINORITIES (€M) & MARGIN (%) EARNINGS PER SHARE (€) 200 2 13% 13% 128 114 1.25 1.11 1.0% 0.9% 0 0 2014 2013 2014 2013 ● Net interest income improved from € -32 m to € -26 m ● Unusually high income tax rate of 42.3% due to the lack of tax savings
Slide 51: Group Income Statement 2014
GROUP INCOME STATEMENT 2014 (€m) 2014 2013 ∆% Output volume 13,566.00 13,573.07 0 Revenue 12,475.67 12,394.15 1 Changes in inventories/own work capitalised -25.66 42.49 n.m. Other operating income 225.22 232.24 -3 Construction materials, consumables and services used -8,163.26 -8,204.35 1 Personnel
Slide 52: Group Income Statement 2014 (cont.)
GROUP INCOME STATEMENT 2014 (CONT.) (€m) 2014 2013 ∆% EBITDA 719.94 694.91 4 Margin (%) 5.8 5.6 Depreciation and amortisation -437.98 -433.33 -1 EBIT 281.96 261.58 8 Margin (%) 2.3 2.1 Net interest income -26.20 -31.54 17 Income tax expense -108.26 -73.78 -47 Net income 147.50 156.26 -6 Attributable
Slide 53: Equity Ratio Remains High at 31%
EQUITY RATIO REMAINS HIGH AT 31% ASSETS(1) LIABILITIES AND EQUITY(1) (€m) 2014 2013 (€m) 2014 2013 Intangible assets 536 502 Share capital 114 114 PP&E & investment property 2,048 2,183 Capital reserves 2,311 2,311 Associated companies 402 372 Retained earnings 459 492 Other financial assets2) 233 2
Slide 54: Net Cash Increased, High Equity Ratio
NET CASH INCREASED, HIGH EQUITY RATIO NET DEBT (+)/NET CASH (-) (€M) EQUITY RATIO (%) 1000 0 40 31.1 31.2 30.7 30.3 30.6 155 0 -74 -268 -249 -669 -1000 0 2010 2011 2012 2013 2014 2010 2011 2012 2013 2014 ● Equity ratio stable at a high level over the medium term at approx. 30% ● Net cash position in
Slide 55: Cash and Cash Equivalents Raised from € 1.7 bn to € 1.9 bn
CASH AND CASH EQUIVALENTS RAISED FROM € 1.7 BN TO € 1.9 BN (€m) 2014 ∆% 2013 Cash – beginning of period 1,685 25 1,351 Cash flow from earnings 620 21 513 ∆ Working Capital 185 2 181 Cash flow from operating activities 805 16 694 Cash flow from investing activities -435 -31 -332 Cash flow from financ
Slide 56: Cash at € 1.9 Billion
CASH AT € 1.9 BILLION CASH DEVELOPMENT (€M) COMMENTS 3000 ● Unusually high decrease of working capital due to 805 uncharacteristically high project-related 9 1,906 prepayments; likely to reverse in 2015 1,685 -435 -142 -16 ● Purchase of specialty equipment for the international ● Enterprise acquisit
Slide 57: Successful Working Capital Management
SUCCESSFUL WORKING CAPITAL MANAGEMENT WORKING CAPITAL PATTERN: CASH OUTFLOWS IN Q1–3; INFLOWS IN Q4 (€M) 800 546 552 332 226 83 -19 -88 -114 -127 -124 -166 -209 -231 -383 -367 -800 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2011 2012 2013 2014 COMMENTS ● Working capital outflows generally occur ov
Slide 58: 2014: Free Cash Flow of € 370 m
2014: FREE CASH FLOW OF € 370 M ∆ WORKING CAPITAL (€M) CFO VS. CFI (€M) CFI VS. DEPRECIATION (€M) 500 1000 1000 805 181 185 694 447 435 447 401 433 435 438 0 332 332 269 -240 0 0 2012 2013 2014 2012 2013 2014 -500 2012 2013 2014 CFO CFI CFI Depreciation ● FCF positive (CFO-CFI) ● Purchase of PP&E at
Slide 59: North + West: Pressure from Large Projects
NORTH + WEST: PRESSURE FROM LARGE PROJECTS KEY INDICATORS COMMENTS (€m) 2014 ∆% 2013 ● Output volume grew despite the very restrained tender award policy on the part of the public authorities in Output volume 6,292 5 6,021 transportation infrastructures in Germany Revenue 5,719 4 5,501 ● EBIT lower
Slide 60: South + East: Reorganisations Prove Successful
SOUTH + EAST: REORGANISATIONS PROVE SUCCESSFUL, BUT HIGH PRICE PRESSURE KEY INDICATORS COMMENTS (€m) 2014 ∆% 2013 ● Output volume decreased due completion of large Output volume 4,171 -9 4,593 projects in Romania and Russia – new orders in 3,997 the pipleine Revenue -10 4,422 Order backlog 4,142 9 3
Slide 61: International + Special Divisions: Satisfactory Business
INTERNATIONAL + SPECIAL DIVISIONS: SATISFACTORY BUSINESS KEY INDICATORS COMMENTS (€m) 2014 ∆% 2013 ● EBIT characterised especially by positive effects 2,970 stemming from the sale of an own real estate Output volume 5 2,822 development project, but also write-offs on raw Revenue 2,738 12 2,445 mater
Slide 62: Appendix
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Slide 63: Output Volume by Country
OUTPUT VOLUME BY COUNTRY (€m) 2010 2011 2012 2013 2014 CAGR(1) (%) Germany 5,051 5,609 5,779 5,789 6,080 5 Austria 1,907 1,985 1,888 1,982 2,058 2 Poland 1,352 1,719 1,139 787 817 -12 Czech Republic 867 769 646 645 620 -8 Hungary 580 436 393 496 544 -2 Scandinavia 248 512 579 510 468 17 Slovakia 427
Slide 64: STRABAG Market Share Data
STRABAG MARKET SHARE DATA 2013 (€M) CONSTRUCTION OUTPUT STRABAG OUTPUT MARKET SHARE (%) Germany 278,761 5,789 2.1 Austria 31,654 1,982 6.3 Poland 42,021 787 1.9 Czech Republic 15,786 645 4.1 RANC 177,197 561 0.3 Hungary 7,840 496 6.3 Benelux 98,336 400 0.4 Switzerland 52,447 386 0.7 Slovakia 4,382 3
Slide 65: 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 2013 (€m) Output volume/Revenue 2013 (€m) 1. STRABAG 5,789 1. Porr 2,158 2. Vinci 2,583 2. STRABAG 1,982 3. Hochtief 2,130 3. Swietelsky 1,150 4. Max Bögl 1,6001) 4. Habau 693 5. G
Slide 66: Market Leading Position in CEE Countries (cont.)
MARKET LEADING POSITION IN CENTRAL AND EASTERN EUROPEAN COUNTRIES (CONT.) CROATIA SLOVAKIA Output volume/Revenue 2013 (€m) Output volume/Revenue 2013 (€m) 1. STRABAG 134 1. STRABAG 340 2. Viadukt 118 2. Doprastav 208 3. Tehnika 109 3. Vahostav 141 4. GP Krk 89 4. Inzinierske stavby 78 5. Swietelsky
Slide 67: Own Building Materials Network
OWN BUILDING MATERIALS NETWORK Investor Presentation December 2015 5 Page 67
Slide 68: Financing PPP-Projects
FINANCING PPP-PROJECTS TYPICAL FINANCING EQUITY INVESTED IN PPP (€M) ● The SPV(1) is financed with equity (10%–30%) and 700 bank debt (70%–90%) ● STRABAG – as a shareholder in the SPV – 375 382 386 410 378 puts in equity ● Other SPV shareholders are e.g. governments, infrastructure funds and develop
Slide 69: 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 70: Property & Facility Services: Strategic Rationale & Targets
PROPERTY & FACILITY SERVICES: STRATEGIC RATIONALE & TARGETS EXTENDING THE VALUE CHAIN TARGETS FOR 2015 ● Offsets seasonal and cyclicality factors (contracts of 3-5 ● Extend business with new and existing customers years duration) ● Stable output volume of approx. € 1 bn (Deutsche Telekom ● One integ
Slide 71: Stable Shareholder Structure
STABLE SHAREHOLDER STRUCTURE SHAREHOLDER STRUCTURE SINCE 7/2014 COMMENTS Treasury ● Core shareholders account for the majority 77% shares Haselsteiner 10.0% Family stake 25.5% ● Shareholders’ syndicate until end of 2017 Free float 13.0% ● Flexibility: Strategic decisions can be taken and implemented
Slide 72: Organisation – Central Units
ORGANISATION – CENTRAL UNITS ORGANISATIONAL STRUCTURE CEO CFO Central Divisions & Central Staff Divisions BRVZ(1) Zentrale BMTI(2) TPA(3) Legal Accounting, Financing, Taxes, IT, Human Technik(4) Resources, Real Estate, Insurance, Risk Management/Organisational Development, International Coordination
Slide 73: The Management Board
THE MANAGEMENT BOARD LONG RECORD OF EXPERIENCE WITHIN STRABAG AND IN THE CONSTRUCTION SECTOR Thomas Birtel, CEO (second left) ● Joined STRABAG in 1996 ● Management Board member since 2006 ● Born 1954 Education: Economics Christian Harder, CFO (second right) ● Joined STRABAG in 1994 ● Management Boar
Slide 74: STRABAG Share Is Covered by Nine Institutions
STRABAG SHARE IS COVERED BY NINE INSTITUTIONS COMPANY DATE TITLE TARGET PRICE RATING Margin progress – updating estimates and Deutsche Bank 3.12.2015 PT € 22.0 Hold Q3-15 zeigt deutlichen Rückgang im LBBW 2.12.2015 Auftragsbestand € 21.0 Hold Commerzbank 30.11.2015 On track for 2015 - and for 3% mar
Slide 75: Financial Calendar and IR Contact
FINANCIAL CALENDAR AND IR CONTACT ● Annual Report 2015 29 April 2016 ● Interim Report January–March 2016 31 May 2016 Diana Neumüller-Klein, CFA Head of Investor Relations & Corporate Communications +43 1 22422-1116 diana.klein@strabag.com www.strabag.com Investor Presentation December 2015 5 Page 75