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.

══════════════════════════════════════════════════════════════════════════

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.

══════════════════════════════════════════════════════════════════════════

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

══════════════════════════════════════════════════════════════════════════

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

OTS-ORIGINALTEXT PRESSEAUSSENDUNG UNTER AUSSCHLIESSLICHER INHALTLICHER VERANTWORTUNG DES AUSSENDERS. www.ots.at
© Copyright APA-OTS Originaltext-Service GmbH und der jeweilige Aussender