STRABAG SE FY 2013 RESULTS 30 APRIL 2014 DISCLAIMER This - - PowerPoint PPT Presentation

▶
strabag se fy 2013 results
SMART_READER_LITE
LIVE PREVIEW

STRABAG SE FY 2013 RESULTS 30 APRIL 2014 DISCLAIMER This - - PowerPoint PPT Presentation

Dec 04, 2023 332 likes •628 views

STRABAG SE FY 2013 RESULTS 30 APRIL 2014 DISCLAIMER This presentation is made by STRABAG SE (the "Company") solely for This presentation contains forward/looking statements relating to the use at investor meetings and is furnished to

slide-1
SLIDE 1

STRABAG SE FY 2013 RESULTS

30 APRIL 2014

slide-2
SLIDE 2

DISCLAIMER

This presentation is made by STRABAG SE (the "Company") solely for use at investor meetings and is furnished to you solely for your information. This presentation speaks as of April 2014. The facts and information contained herein might be subject to revision in the future. Neither the delivery of this presentation nor any further discussions of the Company with any of the recipients shall, under any circumstances, create any implication that there has been no change in the affairs of the Company since such date. None of the Company or any of its parents or subsidiaries

  • r any of such person's directors, officers, employees or advisors nor any
  • ther person makes any representation or warranty, express or implied as

to, and no reliance should be placed on, the accuracy or completeness of the information contained in this presentation. None of the Company or any of its parents or subsidiaries or any of their directors, officers, employees and advisors nor any other person shall have any liability whatsoever for any loss howsoever arising, directly or indirectly, from any use of this presentation. The same applies to information contained in

  • ther material made available at the meeting.

This document is selective in nature and is intended to provide an introduction to, and overview of, the business of the Company. Where any information and statistics are quoted from any external source, such information or statistics should not be interpreted as having been adopted

  • r endorsed by the Company as being accurate.

This presentation contains forward/looking statements relating to the business, financial performance and results of the Company and/or the industry in which the Company operates. These statements generally are identified by words such as "believes“, "expects”, "predicts”, "intends”, "projects”, "plans”, "estimates”, "aims”, "foresees”, "anticipates”, "targets”, and similar expressions. The forward/looking statements, including but not limited to assumptions, opinions and views of the Company or information from third party sources, contained in this presentation are based on current plans, estimates, assumptions and projections and involve uncertainties and risks. Various factors could cause actual future results, performance or events to differ materially from those described in these

  • statements. The Company does not represent or guarantee that the

assumptions underlying such forward/looking statements are free from errors nor do they accept any responsibility for the future accuracy of the

  • pinions expressed in this presentation. No obligation is assumed to

update any forward/looking statements. By accepting this presentation you acknowledge that you will be solely responsible for your own assessment of the market and of the market position of the Company and that you will conduct your own analysis and be solely responsible for forming your own view of the potential future performance of the Company's business.

FY 2013, April 2014 Page 2

slide-3
SLIDE 3

2 3 1 FULLYEAR FIGURES 2013 THE STRABAG STRATEGY AND INVESTMENT PROPOSITION APPENDIX

FY 2013, April 2014 Page 3

slide-4
SLIDE 4

FULLYEAR FIGURES 2013

1

slide-5
SLIDE 5

OUTPUT VOLUME DECLINES DUE TO WEATHER

OUTPUT VOLUME (€M) OUTPUT VOLUME 2013 BY REGION

1 13,573 14,043 20000 2013 2012

  • Weather/related declines not fully compensated
  • STRABAG broadly diversified: declines in Poland,

Canada, Benelux and Romania nearly balanced

  • ut by increases in Hungary, Austria and Africa

FY 2013, April 2014 Page 5

/3% Germany 43% Austria 15% CEE 25% Rest of Europe 11% Rest of World 6%

slide-6
SLIDE 6

13,470 13,203 20000 2013 2012

FULL ORDER BOOKS

ORDER BACKLOG (€M) ORDER BACKLOG 2013 BY REGION

1

  • Completion of large projects in Russia and

Benelux

  • Several new building construction orders in

Germany

FY 2013, April 2014 Page 6

2% Germany 38% Austria 11% CEE 21% Rest of Europe 19% Rest of World 11%

slide-7
SLIDE 7

695 608 750 2013 2012

EBITDA AND EBIT SHOW DOUBLEDIGIT GROWTH

EBITDA (€M) EBIT (€M)

1

  • Previous year’s EBITDA had been distorted by

damage compensation payments (€ 43 m)

  • Still a burden: cost development in projects in

hydraulic engineering, the Netherlands and Sweden as well as competitive pressure in railway construction

  • Depreciation and amortisation increased by

8% –> specialty equipment for international business depreciated over just a few years of construction

  • Relatively high depreciation in the fields of railway

construction and hydraulic engineering

14%

FY 2013, April 2014 Page 7

262 207 750 2013 2012 26%

5.6% 4.7% 2.1% 1.6%

slide-8
SLIDE 8

EARNINGS PER SHARE +90%

NET INCOME AFTER MINORITIES (€M)

  • Positive FX effects of € 13 m (2012: € /12 m)
  • Tax rate of 32.1%
  • Minority shareholders account for a result of € 43 m (2012: € 49 m)
  • Number of weighted outstanding shares down to 102,716,850

1.11 0.58 2 2013 2012

EARNINGS PER SHARE (€)

1 90%

FY 2013, April 2014 Page 8

114 61 200 2013 2012 87%

0.9% 0.5%

slide-9
SLIDE 9

ATTRACTIVE DIVIDENDS: CONSISTENT PAYOUT RATIO

1

Page 9

0.50 0.55 0.60 0.20 0.45 35% 36% 34% 34% 41% 0% 100% € 0 € 2 2009 2010 2011 2012 2013

  • Dividend per share of € 0.45 proposed (+125%)
  • Payout ratio at 41% within predetermined payout

range of 30–50 % of net income after minorities DIVIDEND (€) AND PAYOUT RATIO (%)

FY 2013, April 2014

slide-10
SLIDE 10

NET CASH AND HIGH EQUITY RATIO

1 /596 /669 /268 155 /74 /1000 1000 2009 2010 2011 2012 2013

NET DEBT/NET CASH () (€M)

32.2 31.1 30.3 31.2 30.7 2009 2010 2011 2012 2013

EQUITY RATIO (%)

  • Net cash position in 2013 again – uncharacteristically high project/related prepayments at year/end
  • Cash and cash equivalents end of 2013 at € 1.7 bn (2012: € 1.4 bn)
  • Equity ratio stable over the medium term at approx. 30% vs. current sector average of 19%(1)

(1) Weighted average includes ACS, Balfour Beatty, BAM, Bilfinger, Bouygues, Budimex, Eiffage, Ferroval, Hochtief, Porr, Skanska, Vinci, YIT; last reported balance sheet date

FY 2013, April 2014 Page 10

40

slide-11
SLIDE 11

(€m) 2013 ∆% 2012 Cash – beginning of period 1,351 /20 1,689 Cash flow from profits 513 1 509 ∆ Working Capital 181 n.m. /240 Cash flow from operating activities 694 158 269 Cash flow from investing activities 332 26 /447 Cash flow from financing activities 6 96 /176 Net change in cash 355 n.m. /355 FX changes 18 n.m. 29 Change restricted cash 3 76 /13 Cash – end of period 1,685 25 1,351

ALL CASH FLOWS IMPROVED

1 Rounding differences might occur.

FY 2013, April 2014 Page 11

slide-12
SLIDE 12

2013: POSITIVE FCF AGAIN

387 11 23 800 PP&E Acquisitions Financial assets

GROSS CAPEX 2013 (€M)

  • FCF positive, after having been negative for two years
  • ~ € 250 m maintenance CAPEX in PP&E
  • Expansion CAPEX due to tunnelling and international business – special equipment needed
  • Lower PP&E: Purchase of specialty equipment needed for certain projects shifted in part to 2014
  • 2013 depreciation includes goodwill impairment of € 4 m (2012: € 10 m)
  • Depreciation higher than CFI for the first time

501 269 694 616 447 332 800 2011 2012 2013 CFO CFI

CFO VS. CFI (€M)

616 447 332 412 401 433 800 2011 2012 2013 CFI Depreciation

CFI VS. DEPRECIATION (€M)

1

FY 2013, April 2014 Page 12

slide-13
SLIDE 13

44% of group

  • utput volume

NORTH + WEST: EBIT TURNS INTO CLEARLY POSITIVE TERRITORY

1

KEY INDICATORS

  • Market/ and weather/related declines in Poland
  • Positive contribution to EBIT from building

construction in Germany; results improved in Poland and in the German transportation infrastructures market

  • Hydraulic engineering projects and large/scale

projects in the Netherlands and Sweden still a burden

  • Growth in order backlog in Germany, among others:

− Thuringia’s new university clinic − Office building at Stuttgart airport − Cultural quarter in Dresden

  • Outlook:

− Expected 2014 output volume € 6.0 bn − Stable construction materials prices vs. rising subcontractor prices − Slight optimism for Poland as of 2014

COMMENTS SHARE OF GROUP OUTPUT VOLUME

(€m)

2013 ∆% 2012

Output volume 6,021 /3 6,237 Revenue 5,524 5,510 Order backlog 5,451 13 4,827 EBIT 73 n.m. /51

  • Employees

22,695 /10 25,108

FY 2013, April 2014 Page 13

slide-14
SLIDE 14

34% of group

  • utput volume

(€m)

2013 ∆% 2012

Output volume 4,593 /3 4,756 Revenue 4,466 /7 4,792 Order backlog 3,805 /12 4,326 EBIT 138 /7 149

  • Employees

21,089 /7 22,699

SOUTH + EAST: EBIT MARGIN STABLE ON A HIGH LEVEL

1

KEY INDICATORS

  • Output volume decreased due to an internal shift
  • f the Polish building construction unit; growth in

Hungary and Czech Republic

  • EBIT /7%: Result improvement programme in

environmental technology, but continued competitive pressure in railway construction

  • Completion of large projects in RANC(1), recovery
  • f order situation in Slovakia and Hungary
  • Outlook:

− Output volume at € 4.7 bn expected in 2014 − Austria: no reduction of margin pressure in transportation infrastructures expected − Continued price pressure in transportation infrastructures in CEE COMMENTS SHARE OF GROUP OUTPUT VOLUME

(1) Russia and neighbouring countries

FY 2013, April 2014 Page 14

slide-15
SLIDE 15

21% of group

  • utput volume

INTERNATIONAL + SPECIAL DIVISIONS: VOLATILE AS USUAL

1

KEY INDICATORS

  • Volatile international and tunnelling business

influences EBIT

  • Order backlog grew by 4%: New orders in

Germany, Chile and Canada

  • Outlook:

− Output volume unchanged at € 2.8 bn expected − Extremely low price levels in tunnelling core markets − Market for concession projects remains challenging in Europe − Construction materials business will continue to put pressure on margins − Significant positive earnings contributions from real estate development − STRABAG to diversify more broadly internationally COMMENTS SHARE OF GROUP OUTPUT VOLUME

(€m)

2013 ∆% 2012

Output volume 2,822 /4 2,925 Revenue 2,459 /8 2,661 Order backlog 4,202 4 4,038 EBIT 70 /45 127

  • Employees

23,575 15 20,426

FY 2013, April 2014 Page 15

slide-16
SLIDE 16

THE STRABAG STRATEGY AND INVESTMENT PROPOSITION

2

slide-17
SLIDE 17

A EUROPEANBASED TECHNOLOGY GROUP FOR CONSTRUCTION SERVICES

!"#$%&"!"! '"($ '! &"$!!#)"! '$&"$!%!!!#! ''" $!%&!#)!!#$(!$ "#%!!##!$" !!##!! !$ '!#!"$*"!"!+"!, "# $(&!# ##!-$!% !!#!".

2

FY 2013, April 2014 Page 17

slide-18
SLIDE 18

OUR FIVE STRATEGIC PRIORITIES

2

Staying diversified Strengthening risk and opportunity management Maintaining financial strength Offering technology and sustainability Showing flexibility Strategic priorities

FY 2013, April 2014 Page 18

slide-19
SLIDE 19

THE STRABAG INVESTMENT PROPOSITION

(1) Growth and Margin Upside (2) Flexible Business Model, Selective Diversity (3) Financial Strength (4) Attractive Dividends

2

FY 2013, April 2014 Page 19

slide-20
SLIDE 20

(1) GROWTH AND MARGIN UPSIDE: TARGETS

2

MIDTERM TARGET OF 3% EBIT MARGIN

  • 2014e: € ≥ 260 m EBIT
  • Task Force

− Streamline overhead costs − Organisational development − Measures currently and continuously being implemented

  • Comprehensive risk management

TOPLINE GROWTH AS OF 2016 EXPECTED

  • Output volume 2014e: € 13.6 bn (stable vs.

2013)

  • Grow share of nonEuropean operations to

10% by 2016 − Americas, Middle East, Asia, Africa − 2013: 6%

/5% /2% 12% /2% /3% /5% 12% 2009 2010 2011 2012 2013 2.3% 2,4% 2.4% 1.6% 2.1% 0% 4% 2009 2010 2011 2012 2013

FY 2013, April 2014 Page 20

slide-21
SLIDE 21

(1) GROWTH AND MARGIN UPSIDE: RISK MANAGEMENT

2

  • Four/eyes/principle
  • Contract Management (most risks occur prior to

the signature of the contract)

  • Internal price committees (including a STRABAG

SE board member when project volume ≥ € 70 m)

  • Internal Audits
  • Organisational structure with central divisions
  • Management information system:

)#' '$ !&! %!!#!#$!!#!!# ! $%$$/# "!'#0"$"!&!# !&/+"!(! "&!#& "!$ %!'&$!!' $ +"!.

Thomas Birtel, CEO

RISK MANAGEMENT INSTRUMENTS

  • Joint Venture with the client
  • Cost + fee
  • Guaranteed maximum price
  • Lump/sum
  • Unit pricing

TYPES OF CONTRACTS COMPOSITION OF THE ORDER BACKLOG

22 %

Total of the ten largest projects in the order backlog

15,315

Construction sites per year

FY 2013, April 2014 Page 21

slide-22
SLIDE 22

ORDER BACKLOG (€M)

(2) FLEXIBLE BUSINESS MODEL, SELECTIVE DIVERSITY: RESILIENCE OVER A VOLATILE PERIOD

2 13,021 12,777 14,326 14,043 13,573 20000 2009 2010 2011 2012 2013

OUTPUT VOLUME (€M) EBITDA (€M) AND EBITDA MARGIN (%) EBIT (€M) AND EBIT MARGIN (%)

2010 EBITDA and EBIT figures include a positive one/off of € 24.6 m and € 10.6 m, respectively. 14% /3% 684 735 746 608 695 1000 2009 2010 2011 2012 2013 5.5% 5.9% 5.4% 4.7% 5.6% 283 299 335 207 262 1000 2009 2010 2011 2012 2013 2.3% 2.4% 2.4% 1.6% 2.1% 26%

FY 2013, April 2014 Page 22

13,968 14,739 13,354 13,203 13,470 20000 2009 2010 2011 2012 2013 2%

slide-23
SLIDE 23

(3) FINANCIAL STRENGTH AS COMPETITIVE ADVANTAGE

2 (1) According to S&P definition

RATING

  • STRABAG SE is one of the few European construction companies

with an official corporate credit rating.

  • S&P confirmed investment grade rating BBB/, stable outlook, in

June 2013 − access to resources offers a significant competitive advantage − solid capital structure and efficient cost management − sufficient headroom under main credit measures for BBB/ rating (Adj. Debt(1)/EBITDA < 2.5x)

  • Rating as a competitive advantage: bond issued with a coupon of

3.00%, 2013–2020

  • Target: maintain investment grade credit rating at least

EQUITY RATIO NET CASH

  • High equity ratio of 31% despite share buyback
  • Target: maintain equity ratio of ≥ 25%
  • Net cash of € 74 m end of 2013

FY 2013, April 2014 Page 23

slide-24
SLIDE 24

161 175 195 61 114 1.3% 1.4% 1.4% 0.5% 0.9% 300 2009 2010 2011 2012 2013

(4) ATTRACTIVE DIVIDENDS: CONSISTENT PAYOUT RATIO

2

NET INCOME A.M. (€M) AND MARGIN (%) DIVIDEND (€) AND PAYOUT RATIO (%) EARNINGS PER SHARE (€)

87%

FY 2013, April 2014

0.50 0.55 0.60 0.20 0.45 35% 36% 34% 34% 41% 0% 100% € 0 € 2 2009 2010 2011 2012 2013

Page 24

1.42 1.53 1.75 0.58 1.11 2 2009 2010 2011 2012 2013 90%

slide-25
SLIDE 25

APPENDIX

3

slide-26
SLIDE 26

GROUP INCOME STATEMENT 2013

(€m) 2013 2012 ∆% Output volume 13,573.07 14,042.60 3 Revenue 12,475.65 12,983.23 4 Changes in inventories/own work capitalised 42.49 53.96 /21 Other operating income 232.24 221.07 5 Construction materials, consumables and services used /8,204.35 /8,655.10 5 Personnel cost /2,998.65 /3,051.78 2 Other operating expenses /857.29 /938,16 9 Share of profit or loss of associates 5.78 /9.22 n.m. Net income from investments /0.96 4.35 n.m. EBITDA 694.91 608.35 14

3 ∆% was calculated with original, not rounded figures therefore, rounding differences may occur.

Investor Presentation May 2014 Page 26

slide-27
SLIDE 27

GROUP INCOME STATEMENT 2013 (CONT.)

(€m) 2013 2012 ∆% EBITDA 694.91 608.35 14 123 45 6 Depreciation and amortisation /433.34 /401.17 /8 EBIT 261.58 207.19 26 1 23 7 5 Net interest income /31.54 /50.73 38 Income tax expense /73.78 /46.42 /59 Net income 156.26 110.04 42 Attributable to minority interest 42.70 49.41 /14 Attributable to equity holders of the parent 113.56 60.63 87 Earnings per share (€) 1.11 0.58 90

3 ∆% was calculated with original, not rounded figures therefore, rounding differences may occur.

Investor Presentation May 2014 Page 27

slide-28
SLIDE 28

(€m) 2013 2012 Share capital 114 114 Capital reserves 2,311 2,311 Retained earnings 492 437 Non/controlling interests 322 301 Equity 3,239 3,163 Provisions 995 1,026 Financial liabilities 1,354 1,266 Trade payables & other liab. 78 96 Deferred taxes 39 44 Noncurrent liabilities 2,466 2,432 Provisions 696 665 Financial liabilities 369 384 Trade payables 2,936 2,724 Other current liabilities 856 770 Current liabilities 4,856 4,543 Liabilities & equity 10,561 10,138 (€m) 2013 2012 Intangible assets 502 530 PP&E & investment property 2,183 2,268 Associated companies 372 379 Other financial assets 253 250 Concession receivables 780 783 Trade and other receivables 109 139 Deferred taxes 217 198 Noncurrent assets 4,416 4,547 Inventories 1.105 1,032 Trade and other receivables 3,303 3,161 Concession receivables 25 23 Cash and cash equivalents 1,712 1,375 Current assets 6,145 5,591 Total assets 10,561 10,138

EQUITY RATIO REMAINS HIGH AT 31%

ASSETS(1) LIABILITIES AND EQUITY(1)

3 (1) Rounding differences might occur.

FY 2013, April 2014 Page 28

slide-29
SLIDE 29

STRABAG SE FY 2013 RESULTS

30 APRIL 2014