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Conference Call Presentation: FY Results 2023
March 2024
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- This presentation was prepared by PORR AG (the "Company") solely for use at investors' meetings and is provided solely for informational purposes.
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Investor presentation: FY Results 2023 | 21.03.2024 I 2 |
2023 AT A GLANCE
1
2
3
Positive market outlook
Steady increase in order intake
Strong order book
High demand in infrastructure and industrial construction
Earnings increase at every level
Efficient cost management
4
5
6
Optimised equity
20.8% equity ratio (+1.5 PP)
Enhanced working capital management
Receivables significantly reduced
Positive outlook 2024
Continuous improvements
Investor presentation: FY Results 2023 | 20.03.2024 I 3 |
POSITIVE MARKET OUTLOOK
STEADY INCREASE IN ORDER INTAKE
Rebound in European construction in 2025
2.5% | 2.5% | 2.3% | ||||||||
rates | 1.7% | |||||||||
1.5% | 1.3% 1.4% | 1.6% | ||||||||
0.9% | ||||||||||
Annual growth | 0.0% | |||||||||
-2.1% | ||||||||||
-5.4% | ||||||||||
2024e | 2025e | 2026e |
Residential Non-residential Civil engineering Total
- Civil engineering with continuous growth
- Dip in residential construction overcome in H1/2024
- Turnaround in CEE countries already expected in 2024
Source: Euroconstruct, Dec 2023
PORR's order intake (in EURm)
CAGR: +5.0%
6,414 | 6,659 | 6,835 | ||||||
5,905 | 59% | |||||||
52% | ||||||||
30% | 24% | |||||||
11%7% | ||||||||
6% 12% | ||||||||
2020 | 2021 | 2022 | 2023 | |||||
Miscellaneous | Residential | Non-residential | Civil engineering | |||||
- Order intakes in infrastructure co-financedby EU funds (~EUR 1.3 tn of investments)
- Doubling order intake in Infrastructure International, double-digitincrease in PL
- Strong backlog increase started in Dec. 22
Investor presentation: FY Results 2023 | 21.03.2024 I 4 |
TOP ORDER INTAKES 2023
Civil engineering | Other | |||||
Non-residential construction | Residential construction | |||||
Q1 | Q2 | Q3 | Q4 | |||
ams-Osram fabric halls | Arge H53 Brenner | Pumped storage | Elisabeth-Selbert-Haus | |||
Premstätten / AT / 49.5m | Base Tunnel | power plant | office building | |||
AT / 479.6m | Ebensee / AT / 167.0m | Berlin / DE / 88.7m | ||||
Arge Arlbergtunnel | ElbX SuedLink tunnel | DC Tower 2 | S8 expressway | |||
AT / 47.9m | DE / 215.0m | apartment & office bldg. | Wrocław - Kłodzko | |||
Vienna / AT / 89.5m | PL / 74.1m | |||||
THE FORM | Arge Terminal 3 South | Aixtron Innovation Center | Arge Remediation of | |||
office building | Airport Vienna | Herzogenrath / DE / 82.3m | contaminated site N6 | |||
Warsaw / PL / 41.4m | AT / 205.6m | Wr. Neustadt / AT / 60m | ||||
Modernisation of roads | DCO Clinic | Pomeranian Medical | Q47 | |||
Oradea / RO / 39.3m | Wrocław / PL / 189.8m | University expansion | apartment building | |||
Warsaw / PL / 47.4m | Bochum / DE / 59.8m | |||||
A10 expressway | Power plant conversion | DPW II | Żelazny Most | |||
Reittunnel - AST Eben | Forbach / DE / 98.4m | Harbour modernisation | reservoir modernisation | |||
AT / 34.8m | Constanța / RO / 31.1m | PL / 55.4m |
Investor presentation: FY Results 2023 | 21.03.2024 I 5 |
STRONG ORDER BOOK
Order backlog (in EUR m)
CAGR: +6.1%
7,067 | 7,764 | 8,204 | 8,452 | |||
58% | ||||||
60% | ||||||
24% | 30% | |||||
5% 11% | C+ / Prime 4% 8% | |||||
Top 10 % der Branche | ||||||
2020 | 2021 | 2022 | 2023 | |||
Miscellaneous | Residential | Non-residential | Civil engineering | |||
- Continued positive development in civil engineering and non-residentialconstruction
- Decrease in order gap compared to last year
- Infrastructure International with +63% in backlog coming from big infrastructure projects
Investor presentation: FY Results 2023 | 21.03.2024 I 6 |
EARNINGS INCREASE AT EVERY LEVEL
REVENUE GROWTH AND EFFICIENT COST MANAGEMENT
Production output per segment (in EUR m)
CAGR: +8.2%
5,727 | 6,226 | 6,577 | ||||||||||||
5,185 | ||||||||||||||
51% | ||||||||||||||
52% | ||||||||||||||
17% | 15% | |||||||||||||
15% | ||||||||||||||
12% | ||||||||||||||
10% | ||||||||||||||
10% | ||||||||||||||
8% | 1% | 6% | 3% | |||||||||||
2020 | 2021 | 2022 | 2023 | |||||||||||
Holding | Infra | CEE | PL | DE | AT / CH | |||||||||
- Double-digitincrease in PL, RO and DE
- Strong growth in infrastructure across all markets and segments
EBT & EBIT (in EUR m)
EBT (in % of output), EBIT (in % of revenue)
110.0 | 120.1 | 130.7 | 140.3 | ||||
85.4 | 95.2 | ||||||
2.1% | 2.3% | ||||||
1.5% | 1.8% | 1.8% | 2.0% | ||||
-1.0% | -0.8% | ||||||
-51.0 | -37.2 | ||||||
2020 | 2021 | 2022 | 2023 |
EBT | EBIT | EBT margin × EBIT margin |
- EBIT margin in % of revenue at 2.3% moving towards mid-termtarget
- Margin increase despite challenging market environment and cost increases
- +34.3% in EPS to 2.21: all-timehigh
Investor presentation: FY Results 2023 | 21.03.2024 I 7 |
EFFICIENT COST CONTROL
SUCCESSFULL PROCUREMENT MANAGEMENT
Cost indices stablising on high levels | PORR's cost ratios in % of revenue |
130
120
110
100
90
Dez.21 | Jun.22 | Dez.22 | Jun.23 | Dez.23 | |
AT: Road construction | AT: Residential construction | ||||
DE: (Industrial) Producer prices | |||||
- Cost hikes normalising over the year 2023
- Expected and calculated second-roundinflationary effects in 2023 and 2024
- Downward price development for reinforcing steel (rebar) and timber
Sources: Statistik Austria, Feb 2024 and GENESIS data base, Feb 2024
Investor presentation: FY Results 2023
2021 | 108 | 47% |
per | 100 | 24% |
Indexed | ||
93 | 21% | |
85 |
Dez.21 | Jun.22 | Dez.22 | Jun.23 | Dez.23 |
Own construction cost
Materials | Staff | Related production services | ||
- Absolute reduction in material expenses of 5.8%
- Efficiency increased in personnel costs
- Inflationary effects in salary and wages and related production services (i.e. subcontractors) reflected in orders and contracts
21.03.2024 I 8
BALANCE SHEET STRUCTURE
OPTIMISED EQUITY, REDUCTION IN HYBRID CAPITAL
Equity (in EUR m) | Hybrid capital (nominal value in EUR m) |
824 | 860 | ||
799 | |||
Hybrid share: 29% | |||
651 | |||
20.3% | 20.8% | ||
19.3% | |||
18.0% | |||
2020 | 2021 | 2022 | 2023 |
- Equtiy ratio in target range of 20-25%
- Increase in equity of +7.7% mainly coming from retained revenue
- Refinancing of hybrid capital finalised, pro-formaequity ratio > 20.0%
240
200
154135
2023 | 2024 | 2025 | 2026 |
- Refinancing of hybrid capital enabling sustainable equity ratio >20%
- Transactions of Feb 2024 with marginal impact on EPS 2024
- Decreasing share of hybrid capital of total equity from 2023 to <20%
Investor presentation: FY Results 2023 | 21.03.2024 I 9 |
WORKING CAPITAL MANAGEMENT ON POINT
NET CASH POSITION MAINTAINED
Net debt (-) / Net cash (+) (in EUR m)
6559
40
Net cash position
-135
2020 | 2021 | 2022 | 2023 |
- Stable net cash position of last 3 years
- Decreasing gross debt and high share of debt with fixed interest
- Efficient interest management leading to increase in financial result
Working Capital (in EUR m)
202
91
159
2020 | 2021 | 2022 | 2023 |
- Consequent working capital management
- Decrease in receivables of EUR 152m used to pay off liabilities
Investor presentation: FY Results 2023 | 21.03.2024 I 10 |
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Porr AG published this content on 21 March 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 21 March 2024 05:58:05 UTC.