EQS-News: STRABAG SE posts second-best performance in company history

EQS-News: STRABAG SE / Key word(s): Annual Results
   STRABAG SE posts second-best performance in company history

   27.04.2023 / 07:00 CET/CEST
   The issuer is solely responsible for the content of this announcement.

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   STRABAG SE posts second-best performance in company history

   •    Output volume at new all-time high, order backlog also reaches new
   record level at end of year
   •    EBIT margin of 4.2% fully in line with target
   •    Dividend of € 2.00 per share proposed for 2022 – payout ratio of 43%
   •    Outlook for 2023: EBIT margin to be sustained at ≥ 4%

   STRABAG SE, the publicly listed European technology group for construction
   services, looks back at a challenging twelve months in 2022: Output and
   order backlog reached new record levels at the end of the year. The EBIT
   margin, meanwhile, returned to normal as expected following the
   exceptionally high level of the previous year. At 4.2%, however, it
   clearly remains in line with the set target of generating at least 4% from
   2022 onwards.

   Klemens Haselsteiner, CEO of STRABAG SE: “Behind us lies a challenging
   year in several respects. Following Russia’s invasion of Ukraine, we
   quickly and decisively implemented sweeping measures to prevent any
   possible, even indirect, influence on STRABAG by Oleg Deripaska, who
   controls the shareholder Rasperia. The war in Ukraine led to a significant
   increase of inflation in Europe, which the central banks responded to with
   substantial interest rate hikes. In this challenging environment, STRABAG
   nevertheless posted its second-best result in company history. This is
   once again confirmation of the resilience of our diversified business
   model.”

   Output volume, revenue and order backlog
   The STRABAG Group recorded a 10% higher output of € 17.7 billion in the
   2022 financial year (2021: € 16.1 billion). The consolidated group revenue
   amounted to € 17.0 billion, a plus of 11%. The operating segments North +
   West contributed 47%, South + East 32% and International + Special
   Divisions 21% to the revenue. Despite rising construction costs and the
   accelerated interest rate turnaround, STRABAG succeeded in growing the
   order backlog by 6% year-on-year to achieve a new year-end record of €
   23.7 billion.

   Financial performance
   In 2022, the earnings before interest, taxes, depreciation and
   amortisation (EBITDA) amounted to € 1,257.21 million, exceeding the € 1.0
   billion mark for the fourth year in a row. This corresponds to an EBITDA
   margin of 7.4%. The depreciation and amortisation expense, at € 550.81
   million, was roughly on a par with the previous year’s level (+0.2%).

   Following exceptionally high earnings before interest and taxes (EBIT) in
   the previous year, characterised by numerous positive earnings influences
   in all segments, normalisation set in as expected during 2022.
   Nevertheless, the EBIT of € 706.40 million was the second highest in the
   Group’s history. The EBIT margin amounted to 4.2% (2021: 5.9%), in line
   with the goal of achieving at least 4% on a sustainable basis starting
   from 2022.

   The net interest income was positive, at € 10.67 million, compared to €
   -12.57 million in the previous year, mainly due to the increased interest
   income. The exchange rate result included in this figure also turned
   positive in 2022 at € 3.20 million (2021: € -3.88 million).

   The income tax rate, at 33.0%, was slightly higher than in the previous
   year. The net income amounted to € 480.13 million compared to € 596.40
   million in 2021. The earnings owed to minority shareholders amounted to €
   7.68 million after € 10.69 million in the previous year. The net income
   after minorities – due to the exceptionally positive earnings effects in
   the previous year – was 19.3% lower in 2022, although with € 472.45
   million it still posted the second-highest figure since the establishment
   of STRABAG SE. The earnings per share amounted to € 4.60 (2021: € 5.71).

   Financial position and cash flows
   The total of assets and liabilities increased year-on-year from € 12.2
   billion to € 12.7 billion. An increase in property, plant and equipment –
   in part for the expansion of the corporate location in Stuttgart – and in
   inventories as well as an output-related increase in trade receivables
   were offset by a decrease in cash and cash equivalents.

   The equity declined slightly, although it remained above the € 4 billion
   mark at € 4,025.24 million. As a result, the equity ratio decreased at a
   high level from 33.3% to 31.7% in 2022. This decrease is due in particular
   to a buyback obligation for own shares that existed at the end of the
   year, which had to be deducted from retained earnings in the maximum
   possible amount of 10% (€ 399.52 million) of the share capital. With an
   acceptance rate of 2.7% for the associated mandatory offer, the difference
   of € 291.31 million will be transferred back to increase retained earnings
   in 2023.

   A net cash position was reported as usual on 31 December 2022. At € 1.9
   billion, this figure remained unchanged year-on-year. The lower cash and
   cash equivalents were offset by a reduction in financial liabilities as a
   result of the bond repayment in the amount of € 200 million.

   The cash flow from operating activities decreased as a result of lower
   cash flow from earnings and a noticeable increase in working capital from
   € 1,220.56 million to € 812.86 million compared with the same period of
   the previous year. In view of the rising interest rates, a significant
   reduction in advance payments and an associated increase in working
   capital can be expected in the coming reporting periods.

   The cash flow from investing activities was more negative, as expected, in
   particular due to higher investments in intangible assets and property,
   plant and equipment. The cash flow from financing activities amounted to €
   -503.66 million, compared with €  743.90 million in the previous year. The
   reduction in the dividend payment – following a special dividend in the
   previous year – more than compensated for the repayment of the bond.

   Outlook
   “The situation remains turbulent, the general framework challenging.
   Nevertheless, we do not foresee any major setbacks in 2023. We expect to
   be able to maintain the output volume at a high level, specifically at €
   17.9 billion. Especially in times when individual construction segments
   are experiencing declines, our strategy of diversification is proving its
   worth. Accordingly, we expect to generate an EBIT margin of at least 4% in
   2023 and to sustain this level in the long term,” as Klemens Haselsteiner
   explains.

   STRABAG SE is a European-based technology group for construction services,
   a leader in innovation and financial strength. Our activities span all
   areas of the construction industry and cover the entire construction value
   chain. We create added value for our clients by taking an end-to-end view
   of construction over the entire life cycle – from planning and design to
   construction, operation and facility management to redevelopment or
   demolition. In all of our work, we accept responsibility for people and
   the environment: We are shaping the future of construction and are making
   significant investments in our portfolio of more than 250 innovation and
   400 sustainability projects. Through the hard work and dedication of our
   approximately 79,000 employees, we generate an annual output volume of
   around € 17 billion.

   Our dense network of subsidiaries in various European countries and on
   other continents extends our area of operation far beyond the borders of
   Austria and Germany. Working together with strong partners, we are
   pursuing a clear goal: to design, build and operate construction projects
   in a way that protects the climate and conserves resources. More
   information is available at www.strabag.com.

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   27.04.2023 CET/CEST This Corporate News was distributed by EQS Group AG.
   www.eqs.com

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   Language:    English
   Company:     STRABAG SE
                Donau-City-Straße 9
                1220 Vienna
                Austria
   Phone:       +43 1 22422 - 1174
   Fax:         +43 1 22422 - 1177
   E-mail:      investor.relations@strabag.com
   Internet:    www.strabag.com
   ISIN:        AT000000STR1
   Listed:      Vienna Stock Exchange (Official Market)
   EQS News ID: 1618177


    
   End of News EQS News Service


   1618177  27.04.2023 CET/CEST

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