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Financial Figures/Balance Sheet
Vienna - STRABAG SE, the publicly listed construction group, recorded a decline
in output volume in the 2020 financial year, based on the high order backlog,
however, the company is cautiously optimistic about the future. Earnings before
interest and taxes (EBIT) also increased despite the Covid-19 crisis. With the
simultaneously lower revenue, this results in an EBIT margin at the exceptional
level of 4.3 %.
Thomas Birtel, CEO of STRABAG SE: "A definitive end to the pandemic is not yet
in sight, but from today's perspective we can say that our strategy and our
business model have proven their worth. We therefore expect a slight increase in
output in 2021, although the EBIT margin, our most important financial
indicator, is likely to return to normal - especially given the currently
observable price increases for construction materials."
Output volume, revenue and order backlog
The STRABAG SE Group recorded a slightly smaller decline in output overall in
the 2020 financial year than had been expected after the first six months: At
EUR 15.4 billion, the output volume was 7 % below the record level from 2019.
The consolidated group revenue amounted to EUR 14.7 billion, which corresponds
to a decline of 6 %. The operating segments North + West contributed 51 %, South
+ East 32 % and International + Special Divisions 18 % to the revenue. The order
backlog as at 31 December 2020 increased by 5 % to EUR 18.4 billion compared to
the previous year.
Financial performance
The earnings before interest, taxes, depreciation and amortisation (EBITDA)
again topped the EUR 1.0 billion mark in 2020 with EUR 1,174.45 million. The
EBITDA margin grew from 7.1 % to 8.0 %. The depreciation and amortisation
expense was EUR 33.08 million higher at EUR 543.80 million as a result of the
high investments in previous years.
The earnings before interest and taxes (EBIT) increased by 5 % to EUR 630.65
million, which corresponds to an EBIT margin of 4.3 % after 3.8 % in 2019. This
development can be attributed to a combination of many positive factors,
particularly in the transportation infrastructures business in the core markets,
which outweighed the Covid-19-related burdens on earnings. Earnings growth was
achieved in the North + West and South + East segments.
The net interest income improved by EUR 4.74 million to EUR -20.60 million due
to lower interest expenses for personnel-related provisions, among other things.
The negative exchange rate result of EUR 5.35 million was comparable to that of
the previous year (2019: EUR -5.93 million).
The income tax rate remained stable year-on-year at 34.6 %. The net income
amounted to EUR 399.06 million, an increase of 5 % compared to 2019. The
earnings owed to minority shareholders amounted to EUR 3.84 million after EUR
6.86 million in the previous year. The net income after minorities for 2020 thus
stood at EUR 395.22 million - an increase of 6 %. The earnings per share
amounted to EUR 3.85 (2019: EUR 3.62).
Financial position and cash flows
The total of assets and liabilities, at EUR 12.1 billion, remained almost
unchanged compared to the previous year. Equity reached EUR 4,108.22 million,
exceeding the EUR 4 billion mark for the first time, which was reflected in an
increase in the equity ratio from 31.5 % to 33.9 %. A net cash position was
reported as usual on 31 December 2020. This figure increased significantly to
EUR 1.7 billion in the face of low financial liabilities and increased cash and
cash equivalents.
The cash flow from operating activities improved from EUR 1,075.94 million to
EUR 1,279.66 million as a result of a higher cash flow from earnings and a
higher reduction in working capital compared to the previous year. The
expectation of a significant reduction in advance payments in 2020 and a
concomitant increase in working capital to familiar levels once again failed to
materialise.
The cash flow from investing activities was less negative, mainly due to the
significantly lower investments in intangible assets and property, plant and
equipment. Due to Covid-19, investments were temporarily suspended in spring
2020 as a precautionary measure.
The cash flow from financing activities showed a value ofEUR -495.9 million
after EUR -411.62 million in the previous year. This increase is due to a bond
repayment with a higher volume than in the previous year as well as the payment
of retained dividends to core shareholder MKAO "Rasperia Trading Limited".
Repayments of bank borrowings, by contrast, were down.
Outlook
STRABAG SE expects to achieve an output volume slightly above the previous
year's level in the 2021 financial year. This forecast is supported by the high
order backlog. Following the extraordinary earnings situation in the past
financial year, the situation should return to normal in 2021 with an EBIT
margin of below 4.0 %.
Further inquiry note:
STRABAG SE
Marianne Jakl
Interim. Head of Corporate Communications
Tel: +43 1 22422-1174
marianne.jakl@strabag.com
end of announcement euro adhoc
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Attachments with Announcement:
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http://resources.euroadhoc.com/documents/2246/5/10711204/1/STRABAG_SE_Pressemitteilung_FY2020_April2021_e.pdf
(END) Dow Jones Newswires
April 30, 2021 01:30 ET (05:30 GMT)