CHARLES UNIVERSITY TEAM CFA INSTITUTE RESEARCH CHALLENGE EMEA REGIONAL ROUND

Transcription

1 CHARLES UNIVERSITY TEAM CFA INSTITUTE RESEARCH CHALLENGE EMEA REGIONAL ROUND

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5 Other, 6% Rest of Europe, 31% Germany, 47% Austria, 16%

6 78% 81% 26% 27% 24% 22% 18% 17%

7 REVENUE STREAM MARGIN & PRODUCTIVITY BIM.5D

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13 Probability LOW MEDIUM HIGH Lack of qualified labour Reputational risk Loss of competitive advantages Market risks Business risks New competitors in the market Economic slowdown in Europe Decrease in European funds LOW MEDIUM HIGH Impact

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20 Deep Tunnel Sewerage System (2017) : 309M East Side Mall shopping centre in Berlin (2016) : 84M Sonnenhöfe im Sternenviertel (2018) : 85M Unity Tower in central Cracow (2017) : 89M

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31 SHAREHOLDER STRUCTURE No investor owns a majority share, but the company is controlled by a syndicate of three largest shareholders. Raiffeisen/UNIQA is the largest shareholder with 26.5% of shares, founder s family holds 25.5%, while Rasperia trading owns 25% of shares. None of the above indicated any intention to leave the company. 13.5% of capital stock is free float, half of which is owned by retail investors. In July 2016, 4 million own shares were repurchased, reducing their share on total from 10% to 6.7%. The new share buyback program authorized in 2016 has recently expired without being used CORPORATE MANAGEMENT The management board has 5 members. All of them have been with STRABAG for about 20 years. Thomas Birtel, the Company s CEO since 2013, has been with the Company since Mr. Birtel sits on boards of several other companies, including Deutsche Bank. Once concern is that all board members have been with the Company for majority of their careers and might lack exposure to other businesses and industries. Christian Harder and Hannes Truntschnig both sit on the supervisory board of Syrena Immobilien Holding AG. Current mandate of all members ends on 31st December CORPORATE GOVERNANCE The supervisory board has 12 members and 3 committees: 1) Executive committee dealing with matters affecting the relations between the company and members of the management board, 2) Presidential and Nomination committee proposing new Management Board fillings, 3) Audit committee. All supervisory board members are independent as classified under Rule 53 ÖCGK. We are not aware of any further links between members of management board and supervisory board which might have negative impact on the company s governance

32 Noncompliance with Austrian Code of Corporate governance: C-Rule 2: Two special shares with a right to nominate one member of Supervisory Board each C-Rule 27: Non-financial criteria are not used in compensation of members of the management Board Committee Members Description Executive Presidential and Nomination Audit Dr. Alfred Gusenbauer (Chairman) Mag. Erwin Hameseder Andrei Elinson1)/Dr. Gulzhan Moldazhanova Dr. Alfred Gusenbauer (Chairman) Mag. Erwin Hameseder Andrei Elinson1)/Dr. Gulzhan Moldazhanova Georg Hinterschuster Wolfgang Kreis Dr. Alfred Gusenbauer (Chairman) Mag. Erwin Hameseder Mag. Hannes Bogner Andrei Elinson1)/Dr. Gulzhan Moldazhanova Dipl.-Ing. Andreas Batke Georg Hinterschuster Wolfgang Kreis The Executive Committee deals with all matters affecting the relations between the company and the members of the Management Board, especially matters relating to the remuneration of Management Board members, but excluding decisions regarding the appointment or removal of a Management Board member or regarding the granting of stock options. The Presidential and Nomination Committee submits proposals to the Supervisory Board for filling new mandates or ones that become free on the Management Board, deals with issues relating to successor planning and remuneration policy, and makes decisions in urgent cases. The Audit Committee is responsible for the audit and preparation of the approval of the financial statements, the proposal for the appropriation of net income and the management report, as well as the audit of the consolidated financial statements and the consolidated corporate governance report. The committee also deals with the management letter written by the financial auditor as well as with the auditor s report as to the efficiency of the risk management. The Audit Committee makes a proposal for the selection of the auditor and prepares the proposal of the Supervisory Board to the Annual General Meeting for voting. Pursuant to C-Rule 81a of the Code, the Audit Committee must meet with the auditor to define a mode of communication between the auditor and the Audit Committee.

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34 Company p-value R2 correlation Actively traded Adjusted beta Unlevered beta Relevered beta Skanska AB (publ) 0.00% 28% yes NCC AB 3.44% 5% yes Veidekke ASA 0.23% 15% yes HOCHTIEF Aktiengesellschaft 0.01% 22% no PORR AG 88.89% 0% yes Implenia AG 0.01% 23% yes Lemminkäinen Oyj 33.22% 2% yes ACS, Actividades de Construcción y Servicios, S.A. 0.00% 26% yes Vinci SA 1.41% 1% yes Final beta

35 2.5% 2.0% 1.5% 1.0% 0.5% 0.0% % AU 10y yield GER 10y yield

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37 Terminal period WACC Terminal period EBIT margin Long term growth Long term growth % 1.5% 2.0% 2.5% 3.0% % 1.5% 2.0% 2.5% 3.0% 8.1% % % % % % % % % %

38 EV/Revenues EV/EBITDA EV/EBIT Peer Group Strabag Strabag Implied

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40 7%

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42 Source: EUROCONSTRUCT, Company annual reports, European Commission

43 Source: EUROCONSTRUCT, Company annual reports, European Commission

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46 6 SOURCE IMF IMF IMF IMF IMF IMF IMF Czech republic Hungary Poland Slovakia CEE TIME EU28 Germany Austria E E E E E E E 2018E 2019E 2020E 2021E 2022E EU28 Germany Austria Czech republic Hungary Poland Slovakia CEE

47 TIME DE AT PL CZ SK HU CH Belgian Netherla nd Romania Denmark Sweden Russia Serbia Italy Croatia Slovenia Bulgaria E E E E Source: EUROCONSTRUCT, EECFA - Eastern European Construction Forecasting Association E 2018E 2019E 2020E DE AT PL CZ SK HU CH Belgian Netherland Romania Denmark Sweden Russia Serbia Italy Croatia Slovenia Bulgaria

48 TIME Total construction output Non-residential construction Residential construction Civil engineering % 0.5% 2.1% 2.5% % 1.5% 5.4% -2.0% 2017E 3.6% 2.8% 5.0% 2.3% 2018E 2.7% 2.2% 2.9% 4.2% 2019E 2.6% 1.3% 1.9% 4.5% 2020E 1.2% 0.9% 1.2% 1.9% 2014=100 Source: EUROCONSTRUCT

49 14 12 Austria Czech Republic Germany Hungary Poland Slovak Republic Austria Czech Republic Germany Hungary Poland Slovak Republic Source: IMF

50 Austria Czech Republic Germany Hungary Poland Slovak Republic Europe Source: IMF Austria Czech Republic Germany Hungary Poland Slovak Republic Europe Source: EUROSTAT Source: IMF

51 7 6 Germany Austria Czech Republic Slovak Republic Hungary Poland Germany Austria Czech Republic Slovak Republic Hungary Poland Source: OECD