Interim / Quarterly Report • Aug 29, 2018
Interim / Quarterly Report
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together . growing . together . growing . together . growing . together . growing . together . growing . together . growing . together . growing . together . growing . together . growing . together . growing . together . growing . together . growing . together . growing . together . growing . together . growing . together . growing . together . growing . together . growing . together . growing . together . growing . together . growing . together . growing . together . growing . together . growing . together . growing . together . growing . together . growing . together . growing . together . growing . together . growing . together . growing . together . growing . together . growing . together . growing . together . growing . together . growing . together . growing . together . growing . together . growing . together . growing . together . growing . together . growing . together . growing . together . growing . together . growing . together . growing . together . growing . together . growing . together . growing . together . growing . together . growing . together . growing . together . growing . together . growing . together . growing . together . growing . together . growing . together . growing . together . growing . together . growing . together . growing . together . growing . together . growing . together . growing . together . growing . together . growing . together . growing . together . growing . together . growing . together . growing . together . growing . together . growing . together . growing . together . growing . together . growing . together . growing . together . growing . together . growing . together . growing . together . growing . together . growing . together . growing . together . growing . together . growing . together . growing . together . growing . together . growing . together . growing . together . growing . together . growing . together . growing . together . growing . together . growing . together . growing . together . growing . together . growing . together . growing . together . growing . together . growing . to-
| in EUR m | 1–6/2018 | 1–6/2017 | Change2 |
|---|---|---|---|
| Operating data | |||
| Production output1 | 2,458 | 2,015 | 22.0% |
| Foreign share | 59.9% | 54.6% | 5.3PP |
| Order backlog | 6,530 | 5,700 | 14.6% |
| Order intake | 2,621 | 2,911 | -9.9% |
| Staffing level (average) | 18,428 | 16,589 | 11.1% |
| 1–6/2018 | 1–6/2017 | Change2 | |
|---|---|---|---|
| Earnings indicators | |||
| Revenue | 2,223.2 | 1,771.2 | 25.5% |
| EBITDA | 72.4 | 56.9 | 27.2% |
| EBIT | 14.7 | 8.4 | 74.1% |
| EBT | 6.6 | 4.0 | 66.4% |
| Profit for the period | 5.6 | 2.9 | 88.4% |
| 30.6.2018 | 31.12.2017 | Change2 | |
|---|---|---|---|
| Financial position indicators | |||
| Total assets | 2,997 | 2,885 | 3.9% |
| Equity (incl. non-controlling interests) | 559 | 597 | -6.4% |
| Equity ratio | 18.6% | 20.7% | -2.1PP |
| Net debt | -414 | -147 | 180.6% |
| 1–6/2018 | 1–6/2017 | Change2 | |
|---|---|---|---|
| Cash flow and investments | |||
| Cash flow from operating activities | -181 | -339 | -46.6% |
| Cash flow from investing activities | -18 | -168 | -89.6% |
| Cash flow from financing activities | -34 | 172 | -120.0% |
| CAPEX3 | 75 | 68 | 10.4% |
| Depreciation/amortisation/impairment | -58 | -49 | 19.1% |
| 1–6/2018 | 1–6/2017 | Change2 | |
|---|---|---|---|
| Key data regarding shares | |||
| Number of shares (weighted average) | 29,095,000 | 29,095,000 | - |
| Market capitalisation as of 30.6. (in EUR m) | 837.9 | 803.9 | 4.2% |
1 The production output corresponds to the output of all companies and consortiums (fully consolidated, equity method, proportional or those of minor
significance) in line with the interest held by PORR AG.
2 The figures have been rounded off using the compensated summation method. Relative changes are derived from the non-rounded values.
3 Investments in property, plant and equipment and intangible assets
growing . together . growing . together . growing . together . growing . together . growing . together . growing . zusammen .
in everything we do we want to surpass ourselves and to grow . together – this spurs us on to become even better than before and think even further ahead. We are doing it our way and we want to build the future today. That is something we are very good at. Together with a strong forward-looking team, with motivated colleagues who work together and who are headed in the same direction. One thing is certain, growing . together is something we want to and will achieve.
For us growing . together means bringing together existing units and newly acquired companies even more closely. This shoulder-to-shoulder alliance yields invaluable synergies. It not only expands our spectrum – in terms of both region and output – but also secures our future in entrepreneurial terms.
growing . together also forms the DNA we show to the outside world. Strong team spirit and embracing diversity is a cornerstone of our philosophy and is evident in every PORR project. Ultimately, we are all connected by our passion for construction and the way we identify with our company. This is a powerful factor on the market and makes us a reliable partner for customers, suppliers, employees and investors.
In the first half of 2018 PORR continued the positive momentum of 2017 and further expanded its market position. Our EBT totalled EUR 6.6m, marking an improvement of around 66% against last year. The order backlog stood at EUR 6,530m – an exceptional basis to only take on new projects very selectively. We increased production output to EUR 2,458m, representing a plus of 22% in a challenging environment. We are continuing to strive for well-balanced growth – the order intake of EUR 2,621m is almost 10% below the level of the previous year. The clear focus on operational excellence and consolidation remains in place unchanged. All of this also reflects our corporate value. Our markets offer clear growth prospects. PORR is well positioned to exploit this potential and to shape the future.
Vienna, August 2018 The Executive Board
Andreas Sauer Executive Board Member
Karl-Heinz Strauss Chief Executive Officer
J. Johannes Wenkenbach Executive Board Member
arbeiten . together . working . together . working . together . working . together . working . together . working . together .
In the first half of 2018 the political uncertainty in the USA and in Europe had a tangible impact on the volatility of the international financial markets. After significant price losses in the first quarter, both European and US shares were once again in the black in April. Sustained bright economic prospects played a key part in this development. zusammen . arbeiten . zusammen . arbeiten . zusammen . arbeiten . zusammen . arbeiten . zusammen . arbeiten . zusammen . arbeiten . zusammen . arbeiten . zusammen . arbeiten . zusammen . arbeiten . zusammen . arbeiten . zusammen . arbeiten . zusammen . arbeiten . zusammen . arbeiten . zusammen . arbeiten . zusammen . arbeiten . zusammen . arbeiten .
Concerns about Italy and the stability of the eurozone increased in May and in June. An interest rate rise by the US Federal Reserve put additional pressure on the markets. While the USA benefited from a strong reporting season and remained relatively stable, European stock exchanges in particular had to accept losses in the first half of the year. zusammen . arbeiten . zusammen . arbeiten . zusammen . arbeiten . zusammen . arbeiten . zusammen . arbeiten . zusammen . arbeiten . zusammen . arbeiten . zusammen . arbeiten . zusammen . arbeiten . zusammen . arbeiten . zusammen . ar-
In the USA the leading Dow Jones index closed down with a moderate loss of 1.8% for the first six months of 2018. To put this into context, the leading eurozone index EURO STOXX 50 lost 3.1% of its value and in Germany the DAX closed the first half of 2018 down by as much as 4.7%. On the Vienna Stock Exchange sharp price corrections around the end of the second quarter interrupted the upward trend. Austria's leading beiten . zusammen . arbeiten . zusammen . arbeiten . zusammen . arbeiten . zusammen . arbeiten . zusammen . arbeiten . zusammen . arbeiten . zusammen . arbeiten . zusammen . arbeiten . zusammen . arbeiten . zusammen . arbeiten . zusammen . arbeiten . zusammen . arbeiten . zusammen . arbeiten . zusammen . arbeiten . zusammen . arbeiten . zusammen .
ATX index ended the first half year down by 4.8% against year-end 2017.
Over the course of the year the PORR share has outperformed the market. In the first quarter – mirroring the development of the European capital markets – the PORR share reached its year low of EUR 26.00 on 6 February 2018. It then picked up and hit its year high of EUR 34.50 in May, following the publication of the 2017 Annual Report. On 29 June 2018 the share closed the first half at EUR 28.80. Achieving a price increase of 3.4%, the PORR share significantly outperformed the ATX, which decreased over the same period. At the end of the first half, PORR's market capitalisation stood at EUR 837.9m.
The syndicate (Strauss Group, IGO-Ortner Group) holds the largest percentage of outstanding shares, totalling 53.7%. The latest analysis shows that the free float of 46.3% is primarily split among Austria (30.2%) and the UK (15.3%). In addition, US investors held 12.0%, with 11.4% of the free-float shares held by investors in Germany.
■ PORR share ■ ATX – Austrian Traded Index ■ Trading volume PORR share
6 | PORR Bericht zum 1. Halbjahr 2018
Building construction Innsbruck I Austria Formwork installed: 60,000m² Construction period: 2016–2018
General refurbishment and extension of the heritageprotected building Vienna | Austria Construction period: 2018–2021
Bridge construction Concrete used: 42,000m3 Construction period: 2014–2017
E18 Rugtvedt-Dørdal
Road construction Rugtvedt-Dørdal I Norway Total length: 18km Construction period: 2017–2019
11 | PORR Bericht zum 1. Halbjahr 2018 11
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The global economy had a weaker than expected start to 2018. While the International Monetary Fund (IMF) did confirm its forecast of 3.9% growth for both 2018 and 2019, it nevertheless warned of possible risks related to the trade dispute between the USA and China as well as of an economic slowdown. gether . interact . together . interact . together . interact . together . interact . together . interact . together . interact . together . interact . together . interact . together . interact . together . interact . together . interact . together . interact . to-
In the second quarter of 2018 the US economy experienced a powerful upswing; it also recorded the strongest growth since 2014 at an annualised rate of 4.1%, with tax cuts, consumer spending and a sharp rise in exports serving as the main contributors. The US Federal Reserve once again increased the interest rate to a target range of 1.75% to 2.00%. together . interact . together . interact . together . interact . together . interact . together . interact . together . interact . together . interact . together . interact . together . interact . together . interact . together . interact . together . interact .
This contrasted with the picture in Europe, with growth in the eurozone slowing in the second quarter of 2018. GDP rose by just 0.3% compared to the preceding quarter, the weakest growth rate since the second quarter of 2016. This led the IMF to a slight downward revision of its eurozone GDP forecast for 2018, reducing it to 2.2%. The European Central Bank continued its expansive monetary policy, although it did announce a gradual withdrawal from its bond-buying programme. Most recently the trade conflict with the USA and higher oil prices concerned both companies and consumers. together . interact . together . interact . together . interact . together . interact . together . interact . together . interact . together . interact . together . interact . together . interact . together . interact . together . interact . together . interact . together . interact . together . interact . together . interact . together . interacting . together . interacting . together . interact
The German economy maintained its momentum in the second quarter, even if it was unable to repeat the high levels of the previous year. GDP was up by 0.5% on the preceding period. The IMF increased its forecast for 2018 to 2.5%, although it described medium-term growth prospects as subdued. . together . interact . together . interact . together . interact . together . interact . together . interact . together . interact . together . interact . together . interact . together . interact . together . interact . together . interact . together . interact . together . interact . together . interact . together . interact . together . interact . together . interact . together . interact .
The economic boom in Austria continued apace. GDP rose by 0.7% in the second quarter of 2018 against the preceding period. On an annual basis, the IMF expects a plus of 2.6%, while Austria's central bank, the OeNB, pushed its forecast to as much as 3.1%. This means that the momentum of the preceding quarters is continuing with a slight decline in pace. The growth continues from a broad base – with impetus coming from markets both at home and abroad. While growth in consumption accelerated slightly against the second half of 2017, growth in exports underwent a marginal decrease over the course of the year. together . interact . together . interact . together . interact . together . interact . together . interact . together . interact . together . interact . together . interact . together . interact . together . interact . together . interact . together . interact . together . interact . together . interact . together . interact . together . interact . together . interact . together . interact . together . interact . together . interact . together . interact . together . interact . together . interact . together . interact . to-
While the construction industry in Europe still finds itself in a growth phase, it has nonetheless experienced a slight loss of momentum. Euroconstruct has forecast growth of 2.7% for 2018 with a cumulative increase of 6.0% by 2020. This performance is mostly due to the high levels of capacity utilisation in the construction sector, the price rises in the property industry and the civil engineering investments in Europe.
In building construction, experts expect less pronounced growth rates with new housing construction remaining the key driver. In contrast, civil engineering is set to gain momentum rapidly in 2018 and 2019, whereby annual growth of around 4.5% is forecast for each of these years. This development is supported by comprehensive investment in traffic and transport construction as well as railway engineering.
The Euroconstruct experts forecast construction output in Austria to rise by 1.6% in 2018.1 The strongest driver here is residential construction, which also remains a pillar of the domestic economy. A slower increase of 0.8% has been predicted for Germany. A shortage of skilled labour combined with high construction costs has dampened expectations. Eastern Europe is set to undergo above-average growth at 10.4%, while estimates for Poland and the Czech Republic are at around 10.0% and 5.0% respectively. An important factor here is the planned investments by the EU Cohesion Fund.
In the second quarter of 2018 PORR managed to build on the year's positive start and increased production output to EUR 2,458m by the end of the first half. This represents a rise of 22.0% or EUR 443m against the previous year. The main factor behind this development was the growth in Germany – both in industrial engineering and in transport and traffic construction by PORR Oevermann. Another major part of the growth in output came from the home markets Austria and Poland. Overall, every business unit contributed to the increase in production output.
BU 1 – Austria, Switzerland, Czech Republic generated production output of EUR 1,144m, an increase of 17.6%. The strongest growth in Austria at Group-level came from the branch offices in Vienna, Salzburg and Upper Austria. The primary drivers of this upward trend were the numerous large-scale projects in building construction. Switzerland remained steady, while the Czech Republic experienced a sharp rise.
With output of EUR 427m, BU 2 – Germany achieved an increase of 14.4%. Industrial engineering as well as transport and traffic construction underwent the most rapid rises in the first half of 2018 – already starting out from a very high level – boosted by the acquisitions concluded in the previous year.
BU 3 – International generated production output of EUR 748m. The 36.2% growth rate was primarily caused by Poland, Romania and the Tunnelling sector.
BU 4 – Environmental Engineering, Healthcare & Services managed to achieve a growth rate of 7.1%, leading to production output of EUR 112m. PORR Umwelttechnik contributed a large part of this.
While around 40% of total production output was attributable to Austria, Germany generated around 30% followed by Poland with a share of just over 11%. Switzerland and the Czech Republic each contributed about 3% to the Group's total output. Overall, the home markets were responsible for around 87% of total output.
The order backlog again set a new record. In the first half of 2018 it stood at EUR 6,530m and was thereby up by 14.6% against the previous year's figure. Similar to the first quarter of 2018, the order intake in the first six months totalled EUR 2,621m and was almost 10.0% below the level of the previous year. This decrease is due to a more selective and disciplined approach to acquiring projects.
PORR won the largest individual new order in the first half of the year in Germany – the FAIR accelerator complex in Darmstadt. This was accompanied by major projects in residential construction. In industrial construction PORR was charged with the new capacity upgrade of the semiconductor factory for BOSCH in Dresden and with building the production plant for DeBeukelaer/Griesson in Kahla. In traffic and transport construction in Poland PORR acquired two major construction phases: the S6 expressway Bożepole–Luzino and the bypass for Nowe Miasto Lubawskie. In Austria the road construction orders such as the A2-Südautobahn near Grimmenstein and the extension of the S3 between Hollabrunn and Guntersdorf were among the largest tenders in the first six months together with the renovation of the parliament building. On top of this, numerous office and residential construction projects were acquired. Furthermore, after the end of the reporting period, the PORR consortium was awarded the largest tunnelling tender in the history of Austria – the Brenner Base Tunnel. The lot has a length of around 18km corresponding to a proportionate order value of EUR 483m.
In the first half of 2018 the Group achieved a significant increase in revenue to EUR 2,223.2m. This corresponds to revenue growth of 25.5% or EUR 452.0m against the same period of the previous year. Total costs for materials and staff rose more slowly than revenue at a rate of 24.5%. Expenses for purchased services also saw a disproportionately low rise of 24.4% against the previous year. Overall, the share of revenue accounted for by expenses for materials and purchased production services climbed by 0.6%. The most significant proportionate improvements in the spending structure related to staff expense; while this was EUR 88.4m higher than the previous year in absolute terms at EUR 556.0m, the share of revenue it accounted for fell by 1.4PP to 25.0%. This proportionate reduction in expenses led to EBITDA that was EUR 15.5m higher and totalled EUR 72.4m (+27.2% against the comparable period of the previous year). Despite the increase in depreciation, amortisation and impairment (EUR +9.2m to EUR 57.8m), EBIT rose to EUR 14.7m in the first half of 2018 and was thereby EUR 6.2m or 74.1% higher than in the first half of 2017.
Financing expenses totalled EUR 12.9m and were thereby slightly (EUR +1.4m) higher than in the first half of 2017 (EUR 11.4m). Lower interest income, predominantly because of the repayment of a financial investment, led to a EUR 2.2m decrease in the income from financial assets to EUR 4.8m. Overall, the financial result decreased by EUR 3.6m to EUR -8.0m. Despite this development, it was possible to achieve a EUR 2.6m improvement in EBT, which totalled EUR 6.6m.
At 30 June 2018 the Group's total assets stood at EUR 2,997.3m and thereby increased by EUR 112.5m against the comparable closing date, 31 December 2017.
Non-current assets rose primarily as a result of ongoing investments in property, plant and equipment (EUR +18.6m) as well as through an acquisition in an equity interest, whereby the value of the interests held in companies accounted for under the equity method was EUR 16.8m higher than at 31 December 2017. The repayment of a financial investment (UBM mezzanine capital) of EUR 51.3m from the item other financial assets led to a corresponding reduction in this asset. Current assets rose by a total of EUR 120.0m due to the seasonally required decrease in the high liquidity from 31 December 2017 and the contrasting growth in trade receivables, necessitated by the increase in revenue and the expansion of business activities.
Equity decreased in the first half year because of the dividend payout to shareholders and holders of mezzanine capital (EUR -41.9m), as well as a limited impact from the firsttime application of IFRS 15 (EUR -2.6m). At 30 June 2018 the equity ratio was 18.6%.
While non-current liabilities remained broadly unchanged at EUR 594.9m (+EUR 7.9m against year-end 2017), current liabilities climbed by EUR 142.8m due to the expansion of business activities. The largest individual item in current liabilities was trade payables, which rose by EUR 114.4m to EUR 1,146.5m.
Net debt increased by EUR 266.3m as the result of the expansion in business activities and seasonal factors to stand at EUR 413.8m (31 December 2017: EUR 147.4m).
The EUR 22.2m higher operating cash flow totalling EUR 50.2m mainly resulted from the higher profit for the period in the first half of 2018 as well as the higher non-cash items in net interest income and the share of profit/loss of companies accounted for under the equity method.
Cash flow from operating activities outperformed the same period of the previous year and totalled EUR -181.0m, making it EUR 157.7m higher than in the same period in 2017. This improvement resulted both from the higher operating cash flow as well as the increase in liabilities as of 30 June 2018, primarily because of the rise in trade payables.
In addition there was a significant improvement in cash flow from investing activities, which amounted to EUR -17.5m in the first half of 2018 (previous year: EUR -167.8m). The cash flow for the first half of 2017 was heavily influenced by oneoff effects due to higher cash outflows for acquiring subsidiaries and for short-term financial investments. Furthermore, the repayment of the UBM mezzanine capital totalling EUR 50m had a positive impact in the first half of 2018.
The cash flow from financing activities shows the inflows from obtaining credit financing (EUR +189.7m) and the outflows from repaying loans and borrowings (EUR -182.2m) and dividend payouts (EUR -41.9m). Cash and cash equivalents amounted to EUR 122.1m at 30 June 2018 (previous year: EUR 143.9m).
In the first half of 2018 no significant investments were made in tangible assets aside from the usual high investments to replace machinery and construction site equipment and to buy new equipment. The strict cost controls in the entire Group are thereby continuing to be upheld.
Risk management focuses on the areas of project management, lending and borrowing, procurement, personnel, currency and interest rate management, as well as the consistent monitoring of risks related to markets and the general economy. The main task of the PORR Group's opportunity and risk management is to implement and monitor processes in order to identify opportunities and risks early, so that the requisite countermeasures can be taken swiftly.
Since the 2017 Annual Report there have been no significant changes to the Group's opportunity and risk profile that would result in new or amended risks for PORR. The description in the "Risk Report" of the 2017 Annual Report thereby remains valid.
In the first half of 2018 PORR employed 18,428 staff members on average – an increase of 1,839 people or 11.1%. This rise was primarily caused by the acquisition of multiple companies in the previous year. The high order backlog and increases in production output across every business unit also contributed to this development.
PORR proactively promotes sustainable HR development. One of its stated goals is to recruit qualified and motivated employees, nurture them and retain them in the company long-term. With the "PORR Academy", PORR offers a Groupwide platform with broad access to e-learning courses, internal and external trainings and further education opportunities. In addition to the three-way educational system "Construction Site, School, Building Academy", the newly founded "PORR Education Campus" at Vienna Simmering also provides unique offers for skilled workers and apprentices in Austria.
The European construction sector continues to experience dynamic growth, as reflected in the high order backlogs in the construction industry and the consistent rise in employment figures. That said, more moderate growth rates are expected in Europe for year-end 2018 compared to previous years. The shortage of skilled labour, bottlenecks at subcontractor level, as well as rising prices for construction and wages are dampening expectations – this is especially true for all of PORR's home markets. Euroconstruct has forecast cumulative overall growth in European countries of 6% by 2020.
In Germany the 2030 Federal Transport Infrastructure Plan should provide further impetus in the coming years through investment in transport and traffic infrastructure. What's more, high activity levels in new housing construction are expected to be maintained. In Austria experts assume that the positive market situation will continue to prevail in 2018. While moderate growth has been forecast for Switzerland, the economies in CEE continue to experience rapid growth. The sharpest growth trends in Eastern Europe have been observed in Poland, where difficulties have been exacerbated by both the shortfall of skilled labour and the scarcity of construction materials.
PORR's strategy of "intelligent growth" remains unchanged – with a clear focus on the five home markets of Austria, Germany, Switzerland, Poland and the Czech Republic. In economic terms, the company is well positioned with the order backlog comfortably exceeding the annual production output. This allows the Group to apply a highly selective approach to new projects. PORR will continue to focus on operational excellence and the consistent consolidation of the acquisitions concluded last year.
Assuming a stable economic environment and on the basis of the record order backlog, the Executive Board forecasts production output of at least EUR 5 bn in 2018. This represents an increase of around 5.5% against 2017. This forecast is, however, subject to a significant fluctuation range typical to the industry in light of the highly dynamic nature of the construction market and seasonal factors.
| Key data | |||
|---|---|---|---|
| in EUR m | 1–6/2018 | 1–6/2017 | Change |
| Production output | 1,144 | 973 | 17.6% |
| EBT | 7.7 | 16.3 | -53.1% |
| Order backlog | 2,405 | 1,949 | 23.4% |
| Order intake | 1,453 | 1,257 | 15.6% |
| Average staffing levels | 7,886 | 7,333 | 7.5% |
Business Unit 1 – Austria, Switzerland, Czech Republic (BU 1) includes the activities on the home markets of Austria, Switzerland and the Czech Republic. It covers building construction, civil engineering, structural engineering, foundation engineering, the raw materials business on these markets and various holdings. The focus is on the fields of residential construction, office building, industrial construction and road construction. This segment additionally covers large-scale building construction projects – also those on international markets.
Production output of BU 1 reached EUR 1,144m in the first half of 2018, an increase of EUR 171m or 17.6%. The majority of this came from large-scale building construction projects. In Austria there was particularly strong growth in Vienna, Salzburg and Upper Austria. Output in the Czech Republic also saw a significant rise compared to the previous year. In addition, BU 1's order situation kept up its high level in the second quarter. At EUR 2,405m, the order backlog increased significantly year-on-year, by 23.4% or EUR 456m. The order intake of EUR 1,453m marked a rise of EUR 196m or 15.6% year-on-year. The largest new orders in the second quarter included the general contractor tender for the office building QBC 1+2 in Vienna, a flood prevention project in Lower Austria, as well as extending the S3 between Hollabrunn and Guntersdorf.
Based on the good order situation in the three home markets of Austria, Switzerland and the Czech Republic, BU 1 is optimistic about 2018. Nevertheless, the situation remains challenging in the construction sector. The high order backlog and strong market presence allow PORR to increase its focus on more selective project acquisition as well as on targeted working capital management.
| Key data | |||
|---|---|---|---|
| in EUR m | 1–6/2018 | 1–6/2017 | Change |
| Production output | 427 | 373 | 14.4% |
| EBT | -8.1 | -11.1 | 26.5% |
| Order backlog | 1,592 | 1,234 | 29.0% |
| Order intake | 520 | 868 | -40.1% |
| Average staffing levels | 2,385 | 1,726 | 38.2% |
Business Unit 2 – Germany (BU 2) encompasses PORR's activities on the home market of Germany – from building construction and civil engineering to foundation and structural engineering. Germany is PORR's second largest market. In 2017 PORR strengthened its presence in the Central and Northern German infrastructure market through acquisitions and can now meet the needs of large-scale projects with its own qualified staff.
The production output reached EUR 427m in the first half of 2018, a rise of EUR 54m or 14.4%. In addition, the order backlog grew by 29.0% to EUR 1,592m, an increase of EUR 358m. At the same time, the high order backlog and corresponding output allows a more selective approach to acquiring projects. The order intake totalled EUR 520m and was thereby EUR 348m or 40.1% below the high level of the preceding year. This decrease relates to acquisitions undertaken in the comparative quarter of the previous year.
The majority of the projects acquired in the second quarter by BU 2 involved residential construction – with the largest projects in Berlin and Erfurt. Low interest rates and the property boom are playing a significant part in driving new business. Both private and institutional investors are currently investing more heavily in property. Yet the German construction industry remains challenging. Rising prices for land and construction, subcontractor shortfalls, the lack of skilled labour and the new tariff rises are having a severe impact on the market players.
PORR's focus in Germany is on ongoing project management, consolidating the companies acquired in 2017 and making the requisite organisational adjustments in order to achieve a sustainable balance in profitability. The first strategic measures for the new approach were already implemented in May. Activities in building construction have been bundled based on the principle of regions. Four strong regional centres will manage PORR's German building construction in the future: East (via Berlin), South (via Munich), North (via Hamburg), and West (covered by PORR Oevermann). The concentration on regions allows markets to be cultivated far more efficiently in addition to securing more streamlined management structures, avoiding duplication, transferring knowhow and synergies.
| in EUR m | 1–6/2018 | 1–6/2017 | Change |
|---|---|---|---|
| Production output | 748 | 549 | 36.2% |
| EBT | 4.1 | -5.2 | >100.0% |
| Order backlog | 2,329 | 2,314 | 0.6% |
| Order intake | 516 | 636 | -18.8% |
| Average staffing levels | 5,400 | 4,922 | 9.7% |
Business Unit 3 – International (BU 3) comprises the following markets: Poland, the Nordic region, Qatar, Slovakia, Romania, Bulgaria, the UK and projects in other future target countries. These stand beside the competencies in tunnelling, railway and bridge construction. In Poland and Romania BU 3 is also responsible for building construction and civil engineering, while in Poland PORR is additionally active in foundation engineering.
BU 3 managed to achieve a significant increase in production output in the first half of 2018. It reached EUR 748m, a rise of EUR 199m or 36.2%. Especially strong growth in output was generated by the sectors Poland and Tunnelling. The order backlog grew to EUR 2,329m, an increase of EUR 15m or 0.6%. The order intake totalled EUR 516m and was thereby EUR 120m below the previous year's value.
In Poland PORR acquired the S6 high-speed line between Bożepole and Luzino with a tender volume of EUR 63.8m in the second quarter. The increasing shortage of skilled labour in Poland and the severe price pressure remain the greatest challenges. The boom created by the EU cohesion policy, the constant flow of investment and the low unemployment rate is additionally leading to steady rises in wages and construction costs. This also holds true for the fast-growing CEE region. That said, PORR's high order backlog allows it to operate against this trend and only bid for projects on a selective basis. PORR remains dedicated in Qatar and is cautiously monitoring emerging opportunities on the market.
| Key data | |||
|---|---|---|---|
| in EUR m | 1–6/2018 | 1–6/2017 | Change |
| Production output | 112 | 104 | 7.1% |
| EBT | 0.8 | 1.9 | -59.8% |
| Order backlog | 139 | 104 | 33.9% |
| Order intake | 126 | 92 | 37.9% |
| Average staffing levels | 1,464 | 1,467 | -0.2% |
Business Unit 4 – Environmental Engineering, Healthcare & Services (BU 4) is home to PORR Umwelttechnik as well as the equity interests Prajo, TKDZ and PWW, hospitals, PORREAL and STRAUSS PROPERTY MANAGEMENT, Thorn, ALU-SOMMER as well as activities related to PPP.
BU 4 managed to expand its production output slightly in the first half of 2018 to EUR 112m and achieved an increase of 7.1% or EUR 8m. The order backlog and order intake also increased in the first half. The order backlog stood at EUR 139m, a rise of EUR 35m or 33.9% year-on-year. The order intake climbed by EUR 34m or 37.9%. One of the largest new orders of BU 4 in the first half of the year was the environmental measures relating to the Semmering Base Tunnel in Lower Austria.
With BU 4, PORR has expanded its value chain beyond the classic construction business. It is defined as the Groupwide specialist in niches such as environmental engineering, project development or add-on services such as facades or sewage technology. This enables the Group to optimally exploit opportunities, especially in the general contractor and design-build sectors.
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| in EUR thousand | 1–6/2018 | 1–6/2017 | 4–6/2018 | 4–6/2017 |
|---|---|---|---|---|
| Revenue | 2,223,238 | 1,771,215 | 1,315,663 | 1,107,920 |
| Own work capitalised in non-current assets | 815 | 1,379 | -208 | 397 |
| Share of profit/loss of companies accounted for under the equity method | 24,718 | 18,618 | 16,761 | 12,977 |
| Other operating income | 95,404 | 77,087 | 48,703 | 41,219 |
| Cost of materials and other related production services | -1,498,906 | -1,183,637 | -890,174 | -767,747 |
| Staff expense | -556,052 | -467,631 | -317,870 | -274,556 |
| Other operating expenses | -216,804 | -160,098 | -120,454 | -78,346 |
| EBITDA | 72,413 | 56,933 | 52,421 | 41,864 |
| Depreciation, amortisation and impairment expense | -57,762 | -48,517 | -29,548 | -25,252 |
| EBIT | 14,651 | 8,416 | 22,873 | 16,612 |
| Income from financial investments and other current financial assets | 4,828 | 7,001 | 2,977 | 4,922 |
| Finance costs | -12,874 | -11,447 | -6,202 | -6,543 |
| EBT | 6,605 | 3,970 | 19,648 | 14,991 |
| Income tax expense | -1,045 | -1,019 | -4,321 | -3,905 |
| Loss for the period | 5,560 | 2,951 | 15,327 | 11,086 |
| of which attributable to shareholders of the parent | 3,904 | 1,561 | 14,396 | 10,312 |
| of which attributable to holders of profit-participation rights | 1,332 | 1,332 | 666 | 666 |
| of which attributable to non-controlling interests | 324 | 58 | 265 | 108 |
| Basic (diluted) earnings per share, total (in EUR) | 0.14 | 0.05 | 0.50 | 0.35 |
| in EUR thousand | 1–6/2018 | 1–6/2017 | 4–6/2018 | 4–6/2017 |
|---|---|---|---|---|
| Profit for the period | 5,560 | 2,951 | 15,327 | 11,086 |
| Other comprehensive income | ||||
| Gains/losses from revaluation of property, plant and equipment | - | -454 | - | -454 |
| Remeasurement from benefit obligations | - | 4,660 | - | 4,660 |
| Measurement of equity instruments | -1,365 | - | -1,289 | - |
| Income tax expense (income) on other comprehensive income | 341 | -1,160 | 322 | -1,160 |
| Other comprehensive income which cannot be reclassified to profit or loss (non-recyclable) |
-1,024 | 3,046 | -967 | 3,046 |
| Exchange differences Losses from fair value measurement of securities |
-380 - |
-452 -101 |
659 - |
-1,840 -98 |
| Gains/losses from cash flow hedges | ||||
| in the year under review | -181 | 174 | -197 | 17 |
| reclassified into profit or loss | - | - | - | - |
| Income tax expense (income) on other comprehensive income | 45 | -18 | 49 | 20 |
| Other comprehensive income which can subsequently be reclassified to profit or loss (recyclable) |
-516 | -397 | 511 | -1,901 |
| Other comprehensive income | -1,540 | 2,649 | -456 | 1,145 |
| Total comprehensive income | 4,020 | 5,600 | 14,871 | 12,231 |
| of which: attributable to non-controlling interests | 292 | -53 | 241 | -37 |
| Share attributable to shareholders of the parent and holders of profit-participation rights |
3,728 | 5,653 | 14,630 | 12,268 |
| of which: attributable to holders of profit-participation rights | 1,332 | 1,332 | 666 | 666 |
| Share attributable to shareholders of the parent | 2,396 | 4,321 | 13,964 | 11,602 |
| in EUR thousand | 30.6.2018 | 31.12.2017 |
|---|---|---|
| Assets | ||
| Non-current assets | ||
| Intangible assets | 138,151 | 139,916 |
| Property, plant and equipment | 631,359 | 612,760 |
| Investment property | 70,301 | 70,259 |
| Shareholdings in companies accounted for under the equity method | 78,601 | 61,818 |
| Loans | 26,299 | 23,792 |
| Other financial assets | 41,827 | 94,557 |
| Other non-current financial assets | 27,444 | 24,555 |
| Deferred tax assets | 15,615 | 9,487 |
| 1,029,597 | 1,037,144 | |
| Current assets | ||
| Inventories | 95,077 | 74,739 |
| Trade receivables | 1,629,499 | 1,301,576 |
| Other financial assets | 106,349 | 97,924 |
| Other receivables and current assets | 9,037 | 9,136 |
| Cash and cash equivalents | 122,146 | 358,707 |
| Assets held for sale | 5,562 | 5,564 |
| 1,967,670 | 1,847,646 | |
| Total assets | 2,997,267 | 2,884,790 |
| Equity and liabilities | ||
| Equity | ||
| Share capital | 29,095 | 29,095 |
| Capital reserves | 251,287 | 251,287 |
| Hybrid capital | 152,661 | 155,318 |
| Other reserves | 80,468 | 115,466 |
| Equity attributable to shareholders of parent | 513,511 | 551,166 |
| Equity from profit-participation rights | 41,292 | 42,624 |
| Non-controlling interests | 4,026 | 3,248 |
| 558,829 | 597,038 | |
| Non-current liabilities | ||
| Bonds and Schuldscheindarlehen | 233,773 | 233,639 |
| Provisions | 145,973 | 146,410 |
| Non-current financial liabilities | 164,326 | 147,096 |
| Other non-current financial liabilities | 1,744 | 4,433 |
| Deferred tax liabilities | 49,121 | 55,486 |
| 594,937 | 587,064 | |
| Current liabilities | ||
| Bonds and Schuldscheindarlehen | 67,866 | 67,663 |
| Provisions | 131,936 | 130,339 |
| Current financial liabilities | 69,938 | 57,738 |
| Trade payables | 1,146,485 | 1,032,040 |
| Other current financial liabilities | 40,705 | 21,372 |
| Other current liabilities | 353,076 | 367,572 |
| Tax payables | 33,495 | 23,964 |
| 1,843,501 | 1,700,688 | |
| Total equity and liabilities | 2,997,267 | 2,884,790 |
| in EUR thousand | 1–6/2018 | 1–6/2017 |
|---|---|---|
| Profit for the period | 5,560 | 2,951 |
| Depreciation, impairment and reversals of impairment on fixed assets and financial assets | 58,009 | 48,529 |
| Interest income/expense | 9,326 | 3,756 |
| Income from companies accounted for under the equity method | -2,650 | -7,681 |
| Dividends from companies accounted for under the equity method | 1,976 | 1,146 |
| Losses/profits from the disposal of fixed assets | -6,955 | -5,835 |
| Decrease in long-term provisions | -3,576 | -2,166 |
| Deferred income tax | -11,446 | -12,617 |
| Operating cash flow | 50,244 | 28,083 |
| Increase/decrease in short-term provisions | 1,498 | -25,464 |
| Increase in tax provisions | 10,902 | 12,790 |
| Increase in inventories | -20,375 | -9,663 |
| Increase in receivables | -348,512 | -303,649 |
| Increase/decrease in payables (excluding banks) | 118,662 | -40,866 |
| Interest received | 7,538 | 9,478 |
| Interest paid | -5,905 | -4,930 |
| Other non-cash transactions | 4,917 | -4,505 |
| Cash flow from operating activities | -181,031 | -338,726 |
| Proceeds from the disposal of intangible assets | 34 | 27 |
| Proceeds from sale of property, plant and equipment and disposal of investment property | 11,012 | 13,738 |
| Proceeds from the sale of financial assets | 2,012 | 2 |
| Proceeds from repayment of loans | 789 | 66 |
| Investments in intangible assets | -961 | -5,588 |
| Investments in property, plant and equipment and investment property | -61,809 | -70,723 |
| Investments in financial assets | -16,659 | -129 |
| Investments in loans | -3,297 | -382 |
| Payouts for financial investments | - | -45,000 |
| Proceeds from financial investments | 50,000 | - |
| Proceeds from the sale of consolidated companies | 1,392 | - |
| Payouts for the purchase of subsidiaries less cash and cash equivalents | 30 | -59,827 |
| Cash flow from investing activities | -17,457 | -167,816 |
| Dividends | -41,305 | -34,430 |
| Payouts to non-controlling interests | -630 | -293 |
| Obtaining loans and other financing | 189,747 | 98,342 |
| Redeeming loans and other financing | -182,176 | -15,123 |
| Hybrid capital | - | 123,412 |
| Acquisition of non-controlling interests | -115 | - |
| Cash flow from financing activities | -34,479 | 171,908 |
| Cash flow from operating activities | -181,031 | -338,726 |
| Cash flow from investing activities | -17,457 | -167,816 |
| Cash flow from financing activities | -34,479 | 171,908 |
| Change to cash and cash equivalents | -232,967 | -334,634 |
| Cash and cash equivalents at 1 Jan | 358,707 | 476,430 |
| Currency differences | -3,594 | 2,127 |
| Cash and cash equivalents at 30 Jun | 122,146 | 143,923 |
| Tax paid | 1,535 | 783 |
| in EUR thousand | BU 1 – Austria, Switzerland, Czech Republic |
BU 2 – Germany |
BU 3 – International |
BU 4 – Environmental Engineering, Healthcare & Services |
Holding | Group |
|---|---|---|---|---|---|---|
| 1–6/2018 | ||||||
| Production output (Group) |
1,143,937 | 426,900 | 748,332 | 111,725 | 26,890 | 2,457,784 |
| Segment revenue (revenue, own work capitalised in non-current assets and other operating income) |
1,117,030 | 446,687 | 643,742 | 94,396 | 17,602 | 2,319,457 |
| Intersegmental revenue | 37,171 | 6,642 | 9,753 | 7,130 | 78,035 | |
| EBT (Segment earnings before tax) |
7,664 | -8,138 | 4,072 | 755 | 2,252 | 6,605 |
Part of the notes
| in EUR thousand | Share capital | Capital reserves | Revaluation reserve |
Remeasurement from defined benefit obligations |
Measurement of equity instruments |
Foreign currency translation reserves |
|---|---|---|---|---|---|---|
| Balance at 1 Jan 2017 | 29,095 | 251,287 | 12,767 | -30,767 | - | 2,156 |
| Total profit/loss for the period | - | - | - | - | - | - |
| Other comprehensive income | - | - | -336 | 3,499 | - | -642 |
| Total comprehensive income | - | - | -336 | 3,499 | - | -642 |
| Dividend payout | - | - | - | - | - | - |
| Income tax on interest for holders of hybrid/mezzanine capital |
- | - | - | - | - | - |
| Hybrid capital | - | - | - | - | - | - |
| Changes to the consolidated group/ acquisition of non-controlling interests |
- | - | - | - | - | - |
| Balance at 30 June 2017 | 29,095 | 251,287 | 12,431 | -27,268 | - | 1,514 |
| Balance at 31 Dec 2017 | 29,095 | 251,287 | 7,723 | -27,286 | - | 1,240 |
| Restatement from the first-time application of IFRS 9 |
- | - | - | - | - | - |
| Restatement from the first-time application of IFRS 15 |
- | - | - | - | - | - |
| Balance at 1 Jan 2018 | 29,095 | 251,287 | 7,723 | -27,286 | - | 1,240 |
| Total profit/loss for the period | - | - | - | - | - | - |
| Other comprehensive income | - | - | - | - | -32 | -633 |
| Total comprehensive income for the period |
- | - | - | - | -32 | -633 |
| Dividend payout | - | - | - | - | - | - |
| Income tax on interest for holders of hybrid/mezzanine capital |
- | - | - | - | - | - |
| Capital increase | - | - | - | - | - | - |
| Changes to the consolidated group/ acquisition of non-controlling interests |
- | - | - | - | - | - |
| Balance at 30 June 2018 | 29,095 | 251,287 | 7,723 | -27,286 | -32 | 607 |
| BU 4 – Environmental |
||||||
|---|---|---|---|---|---|---|
| in EUR thousand | BU 1 – Austria, Switzerland, Czech Republic |
BU 2 – Germany |
BU 3 – International |
Engineering, Healthcare & Services |
Holding | Group |
| 1–6/2017 | ||||||
| Production output (Group) |
972,527 | 373,013 | 549,474 | 104,304 | 15,519 | 2,014,837 |
| Segment revenue (revenue, own work capitalised in non-current assets and other operating income) |
924,546 | 355,154 | 477,515 | 78,574 | 13,892 | 1,849,681 |
| Intersegmental revenue | 14,848 | 5,453 | 7,973 | 5,472 | 63,355 | |
| EBT (Segment earnings before tax) |
16,328 | -11,074 | -5,238 | 1,880 | 2,074 | 3,970 |
| Non-controlling interests |
Profit participation rights |
Equity attributable to equity holders of the parent |
Retained earnings and retained profit |
Hybrid capital | Reserve for cash flow hedges |
Debt securities available for sale – fair value reserve |
|
|---|---|---|---|---|---|---|---|
| 3,228 440,872 |
42,624 | 395,020 | 106,106 | 25,303 | -655 | -272 | |
| 58 | 1,332 | 1,561 | -2,052 | 3,613 | - | - | |
| -111 2,649 |
- | 2,760 | 184 | - | 131 | -76 | |
| -53 5,600 |
1,332 | 4,321 | -1,868 | 3,613 | 131 | -76 | |
| -293 -34,723 |
-2,639 | -31,791 | -31,791 | - | - | - | |
| - | - | 333 | 333 | - | - | - | |
| - 123,809 |
- | 123,809 | - | 123,809 | - | - | |
| 1,182 | - | 45 | 45 | - | - | - | |
| 537,118 | 4,064 | 41,317 | 491,737 | 72,825 | 152,725 | -524 | -348 |
| 3,248 597,038 |
42,624 | 551,166 | 132,681 | 155,318 | -629 | 1,737 | |
| - | - | - | 1,737 | - | - | -1,737 | |
| - -2,613 |
- | -2,613 | -2,613 | - | - | - | |
| 3,248 594,425 |
42,624 | 548,553 | 131,805 | 155,318 | -629 | - | |
| 324 5,560 |
1,332 | 3,904 | -314 | 4,218 | - | - | |
| -32 -1,540 |
- | -1,508 | -707 | - | -136 | - | |
| 292 4,020 |
1,332 | 2,396 | -1,021 | 4,218 | -136 | - | |
| -630 -41,935 |
-2,664 | -38,641 | -31,766 | -6,875 | - | - | |
| - | - | 1,387 | 1,387 | - | - | - | |
| 1,194 | - | - | - | - | - | - | |
| -78 | - | -184 | -184 | - | - | - |
The PORR Group consists of PORR AG and its subsidiaries. PORR AG is a public limited company according to Austrian law and has its registered head office at Absberggasse 47, 1100 Vienna. The company is registered with the commercial court of Vienna under reference number FN 34853f. The Group deals mainly with the planning and execution of all kinds of building and construction work, as well as the management and operations of buildings constructed for the Group's own account.
These interim consolidated financial statements of the PORR Group have been published according to IAS 34 Interim Financial Reporting, using the standards of the International Accounting Standards Board (IASB), the International Financial Reporting Standards (IFRSs) adopted by the European Union, as well as the interpretations of the International Financial Reporting Interpretations Committee (IFRIC) in addition to standards applicable for the first time as of 1 January 2018, especially IFRS 15 and IFRS 9. The impact of the first-time application of the new standards is described in item 3.
In accordance with IAS 34, these interim consolidated financial statements do not contain every comprehensive entry which is obligatory in the annual financial statements and therefore this interim report should be read in conjunction with the Annual Report of the PORR Group as of 31 December 2017. As per IAS 34, the consolidated results of the interim consolidated financial statements are not necessarily indicative of the annual results.
The reporting currency is the euro, which is also the functional currency of PORR AG and of the majority of the subsidiaries included in these interim consolidated financial statements.
The following six companies were consolidated in full for the first time in these interim financial statements:
| Due to acquisitions | Date of initial consolidation |
|---|---|
| PORR Infra GmbH (formerly Tunnel- & Traffic Consulting GmbH) | 31.1.2018 |
| Due to new foundations | |
| ISHAP Software Solutions GmbH | 15.2.2018 |
| SAM03 Beteiligungs GmbH | 3.4.2018 |
| ASCI Logistik GmbH | 24.4.2018 |
| CIS Beton GmbH | 24.4.2018 |
| PORR Recycling GmbH | 7.6.2018 |
For two companies the number of shares sold meant that only significant influence remains and these were accounted for under the equity method. Two companies were eliminated through intra-Group mergers, while one company was sold off in full. The assets and liabilities where control was lost break down as follows:
| in EUR thousand | 2018 |
|---|---|
| Non-current assets | |
| Property, plant and equipment | 33 |
| Deferred tax assets | 253 |
| Current assets | |
| Inventories | 37 |
| Trade receivables | 1,579 |
| Other current financial assets | 132 |
| Other receivables and assets | 396 |
| Cash and cash equivalents | 69 |
| Non-current liabilities | |
| Provisions | -117 |
| Deferred tax liabilities | -81 |
| Current liabilities | |
| Provisions | -9 |
| Financial liabilities | -1 |
| Trade payables | -1,271 |
| Other current financial liabilities | -967 |
| Other current liabilities | -243 |
| Tax payables | -38 |
Gains on sale amounting to TEUR 1,346 were recognised in income/expenses from financial assets. The fair value measurement of the remaining equity stake led to a gain of TEUR 1,250 and is recognised in companies accounted for under the equity method.
TEUR 36 was used to purchase a 100% stake in PORR Infra GmbH. The purchase price was provisionally allocated to the Group's liabilities and assets as follows:
| in EUR thousand | 2018 |
|---|---|
| Non-current assets | |
| Intangible assets | 14 |
| Property, plant and equipment | 128 |
| Current assets | |
| Trade receivables | 207 |
| Other current financial assets | 14 |
| Cash and cash equivalents | 66 |
| Current liabilities | |
| Provisions | -108 |
| Trade payables | -47 |
| Other current liabilities | -238 |
| Purchase price | 36 |
The initial consolidation of the company contributed TEUR -1,780 to earnings before taxes for the period and TEUR 1,674 to revenue.
Regarding the acquisition of the Hinteregger Group concluded in the 2017 business year, the purchase price allocation was finalised in the current business year, whereby the fair value of property, plant and equipment (TEUR 2,322), deferred taxes (TEUR -581) and goodwill were adjusted in the amount of TEUR 1,742.
Furthermore, 46 (previous year: 45) domestic and 31 (previous year: 27) foreign associates and joint ventures were valued using the equity method.
The accounting and valuation methods applied in the consolidated financial statements of 31 December 2017, which are presented in the notes to the consolidated annual financial statements, have been used, unmodified, in the interim report with the exception of the following standards and interpretations applied for the first time. Here it is only the first-time application of IFRS 15 Revenue from Contracts with Customers and IFRS 9 Financial Instruments that has had a significant impact:
| New standard or amendment | Date published by IASB |
Date adopted into EU law |
Effective date (first-time application) |
|---|---|---|---|
| IFRS 9 Financial Instruments | 24.7.2014 | 22.11.2016 | 1.1.2018 |
| IFRS 15 Revenue from Contracts with Customers | 28.5.2014 | 22.9.2016 | 1.1.2018 |
| Amendments to IFRS 4: Applying IFRS 9 Financial Instruments with IFRS 4 Insurance Contracts |
12.9.2016 | 3.11.2017 | 1.1.2018 |
| Clarifications to IFRS 15 Revenue from Contracts with Customers |
12.4.2016 | 31.10.2017 | 1.1.2018 |
| Annual Improvements to IFRS Standards 2014–2016 Cycle, Clarifications to IAS 28 and IFRS 1 |
8.12.2016 | 7.2.2018 | 1.1.2018 |
| Amendments to IFRS 2: Classification and Measurement of Share-based Payment Transactions |
20.6.2016 | 26.2.2018 | 1.1.2018 |
| Amendments to IAS 40: Transfers of Investment Property |
8.12.2016 | 14.3.2018 | 1.1.2018 |
| IFRIC 22 Foreign Currency Transactions and Advance Consideration |
8.12.2016 | 28.3.2018 | 1.1.2018 |
The impacts of the first-time application of IFRS 15 and IFRS 9 mainly relate to:
– Bundling contracts
– Disclosures related to the measurement of securities at fair value
The following standards and interpretations have been published after the preparation of the consolidated financial statements as of 31 December 2017 and are not yet mandatory for reporting periods and/or have not yet been adopted into EU law:
| New standard or amendment | Date published by IASB |
Date adopted into EU law |
Effective date (first-time application) |
|---|---|---|---|
| Amendment to IAS 19: Plan Amendment, Curtailment or Settlement |
7.2.2018 | - | - |
| Amendments to IFRS 2, IFRS 3, IFRS 6, IFRS 14, IAS 1, IAS 8, IAS 34, IAS 37, IAS 38, IFRIC 12, IFRIC 19, IFRIC 20, IFRIC 22 and SIC-32 updating or clarifying which version of the conceptual framework they |
|||
| relate to | 29.3.2018 | - | 1.1.2020 |
The objective of IFRS 15 is to bring together a range of requirements that were previously contained in different standards and interpretations. The core principle of IFRS 15 is that an entity recognises revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. This core principle is delivered in a five-step model framework. The model specifies that revenue is recognised as control is passed (control approach), either over time or at a point in time and thereby replaces the previously applied risk and reward model (transfer of risks and rewards). Furthermore, the scope of the requisite disclosures in the notes has been expanded.
For its initial application, PORR has chosen the cumulative adjustment approach IFRS 15.C3(b). This means that the effects for the first-time application as of 1 January 2018 are recognised directly in equity and do not therefore require any retrospective adjustments to the comparative figures for 2017. Therefore the standards valid up until this point in time, IAS 18 and IAS 11, continue to apply to the comparative period.
The following table shows the net impacts on retained earnings as of 1 January 2018 from the first-time application of IFRS 15:
| Income tax expense Impact as of 1 Jan 2018 |
870 -2,613 |
|---|---|
| Bundling contracts | -3,483 |
| Other reserves | |
| in EUR thousand | Adjustments through first-time application of IFRS 15 as of 1.1.2018 |
The following table shows a reconciliation of the impacts from the first-time application of IFRS 15 on the items of the statement of financial position as of 30 June 2018 as well as on the consolidated income statement and the statement of comprehensive income for the period 1 January 2018 to 30 June 2018.
| in EUR thousand | Consolidated statement of financial position as of 30.6.2018 |
Adjustments | Consolidated statement of financial position as of 30.6.2018 without IFRS 15 adjustments |
|---|---|---|---|
| Assets | |||
| Trade receivables | 1,629,499 | 96 | 1,629,595 |
| Current assets | 1,967,670 | 96 | 1,967,766 |
| Total assets | 2,997,267 | 96 | 2,997,363 |
| Equity and liabilities | |||
| Other reserves | 80,468 | 72 | 80,540 |
| Non-controlling interests | - | - | - |
| Equity | 558,829 | 72 | 558,901 |
| Deferred tax liabilities | 49,121 | 24 | 49,145 |
| Non-current liabilities | 594,937 | 96 | 595,033 |
| Total equity and liabilities | 2,997,267 | 96 | 2,997,363 |
| in EUR thousand | Consolidated income statement 1–6/2018 |
Adjustments | Consolidated income statement 1–6/2018 without IFRS 15 adjustments |
|---|---|---|---|
| Revenue | 2,223,238 | -2,744 | 2,220,494 |
| Share of profit/loss of companies accounted for under the equity method |
24,718 | -644 | 24,074 |
| EBITDA | 72,413 | -3,388 | 69,025 |
| EBIT | 14,651 | -3,388 | 11,263 |
| EBT | 6,605 | -3,388 | 3,217 |
| Income taxes | -1,045 | 847 | -198 |
| Surplus for the period | 5,560 | -2,541 | 3,019 |
| of which attributable to shareholders of the parent | 5,560 | -2,541 | 3,019 |
| of which attributable to non-controlling interests | - | - | - |
The following shows the impacts of the first-time application compared to the previously applied accounting and measurement methods on the different types of revenue at PORR:
In general, revenue continues to be realised over the period of the service rendered. Should appropriate conditions be met, multiple contracts are aggregated and measured together from across the Group with the aid of project benchmarks. Invoices for advance payments are provided in line with a predefined payment plan that broadly corresponds to progress made on the construction project. In individual cases, the payment plans include a financing component that is recognised separately in the financing result as interest income.
Projects with different margins are aggregated and this can result in minimal time lags in recognising revenue. No changes resulted from the recognition of advance payments; there were no financing components.
Revenues from landfill operations are realised at a point in time. No significant changes to the previously applied accounting and valuation methods have resulted from the first-time application.
Revenues from the sale of raw materials are realised at a point in time. No significant changes to the previously applied accounting and valuation methods have resulted from the first-time application.
Service revenues from property management are realised over a period of time. No significant changes to the previously applied accounting and valuation methods have resulted from the first-time application.
The standard includes requirements for the recognition, measurement and derecognition of financial instruments as well as for hedge accounting and replaces the previously applicable standard IAS 39. The transitional provisions of IFRS 9 only permit a retrospective adjustment in accordance with IAS 8 in exceptional cases (hedges). What this means for PORR is that the effects of the first-time application as of 1 January 2018 are recognised directly in equity and do not therefore require any retrospective adjustments to the comparative figures for 2017. Therefore the standard valid up until this point in time, IAS 39, continues to apply to the comparative period. The first-time application of IFRS 9 has had no impact on retained earnings.
The following table shows a reconciliation of the impacts from the first-time application of IFRS 9 on the consolidated income statement and the statement of comprehensive income for the period 1 January 2018 to 30 June 2018.
| Consolidated income | |||
|---|---|---|---|
| Consolidated income | statement 1–6/2018 | ||
| in EUR thousand | statement 1–6/2018 | Adjustments | without IFRS 9 adjustments |
| Financing income | 4,828 | 221 | 5,049 |
| Income taxes | -1,045 | -55 | -1,100 |
| Consolidated income | |||
|---|---|---|---|
| Consolidated income | statement 1–6/2018 | ||
| in EUR thousand | statement 1–6/2018 | Adjustments | without IFRS 9 adjustments |
| Fair value measurement of securities | - | 221 | 221 |
| Income tax expense/income on OCI | - | -55 | -55 |
As of 1 January 2018 the Group has evaluated the business model for each financial instrument and subsequently assigned them to the appropriate categories in accordance with IFRS 9. The reclassifications can be clearly seen in the following table:
| Old measurement categories (IAS 39) |
New measurement categories (IFRS 9) |
Old carrying amount (IAS 39) |
New carrying amount (IFRS 9) |
|
|---|---|---|---|---|
| Assets | ||||
| Loans | Loans and Receivables | Amortised Cost (AC) | 26,386 | 26,386 |
| Other financial assets | Available for Sale Financial Assets (at cost) |
Fair Value through OCI (FVTOCI) |
3,814 | 3,814 |
| Other financial assets | Available for Sale Financial Assets (at cost) |
Fair Value through Profit & Loss (FVTPL) |
1,088 | 1,088 |
| Other financial assets | Available for Sale Financial Assets |
Fair Value through Profit & Loss (FVTPL) |
11,094 | 11,094 |
| Other financial assets | Available for Sale Financial Assets |
Fair Value through OCI (FVTOCI) |
25,831 | 25,831 |
| Trade receivables | Loans and Receivables | Amortised Cost (AC) | 1,629,499 | 1,629,499 |
| Financial assets | Loans and Receivables | Amortised Cost (AC) | 131,312 | 131,312 |
| Financial assets | Financial Assets Held for Trading |
Fair Value through Profit & Loss (FVTPL) |
102 | 102 |
| Derivatives (without hedges) | Financial Assets Held for Trading |
Fair Value through Profit & Loss (FVTPL) |
2,292 | 2,292 |
| Cash and cash equivalents | - | - | 122,146 | 122,146 |
| Liabilities | ||||
| Bonds | Financial Liabilities Measured at Amortised Cost |
Amortised Cost (AC) | 102,113 | 102,113 |
| Schuldscheindarlehen | Financial Liabilities Measured at Amortised Cost |
Amortised Cost (AC) | 199,526 | 199,526 |
| Bank loans and overdrafts | Financial Liabilities Measured at Amortised Cost |
Amortised Cost (AC) | 143,599 | 143,599 |
| Other financial liabilities | Financial Liabilities Measured at Amortised Cost |
Amortised Cost (AC) | 45 | 45 |
| Lease obligations | - | - | 86,817 | 86,817 |
| Trade payables | Financial Liabilities Measured at Amortised Cost |
Amortised Cost (AC) | 1,146,485 | 1,146,485 |
| Other financial liabilities | Financial Liabilities Measured at Amortised Cost |
Amortised Cost (AC) | 42,449 | 42,449 |
| Financial Liabilities | Fair Value through | |||
| Derivatives (without hedges) | Measured at Amortised Cost | Profit & Loss (FVTPL) | 2,411 | 2,411 |
| Derivatives (with hedges) | - | - | 1,391 | 1,391 |
IFRS 9 replaces the incurred loss model with the expected credit loss model. The new model is applicable for financial instruments recognised at amortised cost, for contract assets (IFRS 15) and debt instruments recognised at fair value directly in equity, as well as lease receivables (IAS 17/IFRS 16).
Financial instruments recognised at amortised cost relate to project financing. Financial instruments recognised at fair value through profit and loss comprise nonconsolidated interests in subsidiaries and miscellaneous financial assets.
The impairment model of IFRS 9 calls for the formation of a risk provision in the amount of the 12-month expected credit loss (stage 1). Should a significant increase in the credit risk occur, then the lifetime expected credit loss is recognised (stage 2). If there is objective evidence of actual impairment, then stage 3 applies. This does not necessarily result in the recognition of additional impairment, although an adjustment of cash flows to the net present value is required for financial instruments recognised under application of the effective interest method.
In the course of the first-time application, PORR decided to apply the simplified approach allowed by IFRS 9.5.5.15 for trade receivables, contract assets and lease receivables. This means that impairment at least in the amount of the lifetime expected credit loss model is recognised (stage 2). The general impairment model is applied to all of the other aforementioned financial instruments.
The Group draws on all available information when evaluating the significant increase in the credit risk after the initial measurement and when estimating the expected credit loss. This includes historic data and future-oriented information. As a general rule, no external creditworthiness assessments are available for financial instruments.
The significant financial instruments to be valued in accordance with the general impairment model relate to project financing for companies accounted for under the equity method. The financing of project companies is secured through equity stakes and project financing by the owner as well as financing taken out directly by the project company. Actual losses caused by negative project developments can also generally be covered by PORR through shareholder contributions that fall within the scope of IAS 28 and IFRS 11. The loss of project financing is therefore of secondary importance.
The expected credit loss is calculated on the basis of the product from the expected net of the financial instrument, the probability of default for the period and the amount lost in the case of an actual loss.
At the end of every reporting period an assessment is made as to whether impairment has occurred. Impairment is judged to have occurred if there is substantial evidence indicating impairment and the present value of the expected payments are below the carrying amount of the asset.
Impairment of assets recognised at amortised cost is deducted directly from the asset. Impairment is recognised in equity for financial instruments at fair value directly in equity.
Impairment expenses related to trade receivables and contract assets are disclosed separately in the income statement. No impairment was recognised in the first half of 2018.
Impairment expenses in relation to other financial instruments are shown under the financing result as was previously the case with IAS 39.
It is expected that impairment will have to be applied earlier to assets that fall within the scope of the impairment regulations of IFRS 9. Impairment on receivables is recognised on the basis of decreases in output and does not relate to any impairment resulting from changes in creditworthiness, therefore the first-time application of IFRS 9 did not have any impact on impairment as of 1 January 2018.
The general impairment model is used for project financing. An assessment of whether there has been a significant increase in the credit risk is made on the basis of the period overdue. If the credit risk has been assessed as low at the time IFRS 9 is first applied, PORR also assumes no significant increase has occurred since the initial recognition.
PORR has not exercised the option of continuing to apply the rules of IAS 39 for its hedge accounting. Exercising this option would not have had a significant impact on hedge accounting.
The interim consolidated financial statements at 30 June 2018 use the same consolidation methods and basis for currency exchange as were used in the annual financial statements at 31 December 2017.
Producing interim consolidated financial statements in accordance with IFRSs requires management to make estimates and assumptions which affect the amount and disclosure of assets and liabilities in the statement of financial position, income and expense, as well as entries regarding contingent liabilities in the interim report. Actual results may deviate from these estimates.
In comparison to other industry sectors, the construction industry experiences seasonal variations with regard to revenue and profit due to weather-related factors. Revenue and profit are, as a rule, lower in the winter months than in the summer months. As a result of the fixed costs which exist, earnings are lower in the first two quarters than in the final two quarters. These seasonal fluctuations are less pronounced in building construction than in civil engineering and road construction.
| BU 1 – Austria, | BU 4 – Environ mental Engineer |
|||||
|---|---|---|---|---|---|---|
| in EUR thousand | Switzerland, Czech Republic |
BU 2 – Germany | BU 3 – International |
ing, Healthcare & Services |
Holding | Group |
| Revenue | ||||||
| Building construction | ||||||
| Commercial/office construction | 88,403 | 64,155 | 60,331 | - | - | 212,889 |
| Industrial engineering | 78,362 | 9,165 | 7,368 | - | - | 94,895 |
| Miscellaneous building construction | 170,037 | 61,740 | 23,256 | - | 9,448 | 264,481 |
| Residential construction | 265,172 | 34,369 | 5,039 | - | - | 304,580 |
| Civil engineering | ||||||
| Railway construction | 20,459 | - | 127,361 | - | - | 147,820 |
| Bridge/overpass construction | 49,174 | 36,660 | 79,460 | - | - | 165,294 |
| Miscellaneous civil engineering | 180,922 | 113,367 | 43,485 | 5,704 | - | 343,478 |
| Road construction | 172,022 | 69,308 | 120,016 | - | - | 361,346 |
| Tunnelling | - | 21,865 | 146,687 | - | - | 168,552 |
| Other sectors | 92,479 | 36,058 | 30,739 | 88,692 | 8,154 | 256,122 |
| Revenue | 1,117,030 | 446,687 | 643,742 | 94,396 | 17,602 | 2,319,457 |
| Revenue recognised over time | 1,095,151 | 442,075 | 643,742 | 48,583 | 17,602 | 2,247,153 |
| Revenue recognised at a point in time |
21,879 | 4,612 | - | 45,813 | - | 72,304 |
| in EUR thousand | 1–6/2018 | 1–6/2017 |
|---|---|---|
| Proportion of deficit/surplus for the period relating to shareholders of the parent | 3,904 | 1,561 |
| Weighted average number of issued shares | 28,878,505 | 28,878,505 |
| Basic earnings per share = diluted earnings per share, in EUR | 0.14 | 0.05 |
| Share capital | No. 2018 | EUR 2018 | No. 2017 | EUR 2017 |
|---|---|---|---|---|
| Ordinary bearer shares | 29,095,000 | 29,095,000 | 29,095,000 | 29,095,000 |
| Total share capital | 29,095,000 | 29,095,000 | 29,095,000 | 29,095,000 |
As proposed by the Executive Board and the Supervisory Board, the Annual General Meeting of PORR AG passed a resolution on 29 May 2018 to pay out a dividend of EUR 1.10 per share entitled to dividends as a result of the earnings for the business year 2017.
At the end of the reporting period, there were 216,495 treasury shares; this corresponds to 0.74% of the share capital.
The carrying amount of the financial instruments as per IFRS 9 corresponds to the fair value, with the exception of bonds subject to fixed interest rates (fair value hierarchy level 1), deposits from banks subject to fixed interest rates (fair value hierarchy level 3), and other financial liabilities subject to fixed interest rates (fair value hierarchy level 3).
| Fair Value | |||||||
|---|---|---|---|---|---|---|---|
| Carrying | (Continuing) | other com | Fair Value | ||||
| in EUR thousand | Measurement category |
amount as of 30.6.2018 |
Acquisition costs |
prehensive income |
affecting net income |
Fair value hierarchy |
Fair value as of 30.6.2018 |
| Assets | |||||||
| Loans | AC | 26,386 | 26,386 | ||||
| Other financial assets | FVTOCI | 3,814 | 3,814 | ||||
| Other financial assets | FVTPL | 1,088 | 1,088 | ||||
| Other financial assets | FVTPL | 11,094 | 11,094 | Level 1 | 11,094 | ||
| Other financial assets | FVTOCI | 25,831 | 25,831 | Level 3 | 25,831 | ||
| Trade receivables | AC | 1,629,499 | 1,629,499 | ||||
| Other financial assets | AC | 131,312 | 131,312 | ||||
| Other financial assets | FVTPL | 102 | 102 | Level 1 | 102 | ||
| Derivatives (without hedges) | FVTPL | 2,292 | 2,292 | Level 2 | 2,292 | ||
| Cash and cash equivalents | 122,146 | 122,146 | |||||
| Liabilities | |||||||
| Bonds | |||||||
| at fixed interest rates | AC | 102,113 | 102,113 | Level 1 | 105,249 | ||
| Schuldscheindarlehen | |||||||
| at fixed interest rates | AC | 74,846 | 74,846 | Level 3 | 76,406 | ||
| at variable interest rates | AC | 124,680 | 124,680 | ||||
| Bank loans and overdrafts | |||||||
| at fixed interest rates | AC | 24,145 | 24,145 | Level 3 | 24,340 | ||
| at variable interest rates | AC | 119,454 | 119,454 | ||||
| Lease obligations2 | 86,817 | 86,817 | |||||
| Other financial liabilities | |||||||
| at fixed interest rates | AC | 45 | 45 | Level 3 | 44 | ||
| Trade payables | AC | 1,146,485 | 1,146,485 | ||||
| Other financial liabilities | AC | 42,449 | 42,449 | ||||
| Derivatives (without hedges) | FVTPL | 2,411 | 2,411 | Level 2 | 2,411 | ||
| Derivatives (with hedges) | 1,391 | 1,391 | Level 2 | 1,391 | |||
| by category | |||||||
| Financial assets at amortised cost | AC | 1,787,197 | 1,787,197 | ||||
| Cash and cash equivalents | 122,146 | 122,146 | |||||
| Fair value through profit & loss | FVTPL | 12,165 | 12,165 | ||||
| Fair value through OCI | FVTOCI | 29,645 | 29,645 | ||||
| Financial liabilities at amortised cost | AC | 1,634,172 | 1,634,217 | ||||
| in EUR thousand | Measurement category |
Carrying amount as of 31.12.2017 |
(Continuing) Acquisition costs |
Fair Value other com prehensive income |
Fair Value affecting net income |
Fair value hierarchy |
Fair value as of 31.12.2017 |
|---|---|---|---|---|---|---|---|
| Assets | |||||||
| Loans | LaR | 23,886 | 23,886 | ||||
| Other financial assets1 | AfS (at cost) | 4,895 | 4,895 | ||||
| Other financial assets | AfS | 12,466 | 12,466 | Level 1 | 12,466 | ||
| Other financial assets | AfS | 77,196 | 77,196 | Level 3 | 77,196 | ||
| Trade receivables | LaR | 1,301,576 | 1,301,576 | ||||
| Other financial assets | LaR | 118,040 | 118,040 | ||||
| Other financial assets | FAHfT | 100 | 100 | Level 1 | 100 | ||
| Derivatives (without hedges) | FAHfT | 4,243 | 4,243 | Level 2 | 4,243 | ||
| Cash and cash equivalents | 358,707 | 358,707 | |||||
| Liabilities | |||||||
| Bonds | |||||||
| at fixed interest rates | FLAC | 101,889 | 101,889 | Level 1 | 107,552 | ||
| Schuldscheindarlehen | |||||||
| at fixed interest rates | FLAC | 74,797 | 74,797 | Level 3 | 75,624 | ||
| at variable interest rates | FLAC | 124,616 | 124,616 | ||||
| Bank loans and overdrafts | |||||||
| at fixed interest rates | FLAC | 21,307 | 21,307 | Level 3 | 23,685 | ||
| at variable interest rates | FLAC | 95,834 | 95,834 | ||||
| Lease obligations2 | 85,120 | 85,120 | |||||
| Other financial liabilities | |||||||
| at fixed interest rates | FLAC | 751 | 751 | Level 3 | 710 | ||
| Trade payables | FLAC | 1,032,040 | 1,032,040 | ||||
| Other financial liabilities | FLAC | 25,805 | 25,805 | ||||
| Derivatives (without hedges) | FLHfT | 612 | 612 | Level 2 | 612 | ||
| Derivatives (with hedges) | 1,210 | 1,210 | Level 2 | 1,210 | |||
| by category | |||||||
| Loans and receivables | LaR | 1,443,502 | 1,443,502 | ||||
| Cash and cash equivalents | 358,707 | 358,707 | |||||
| Available-for-sale financial assets1 | AfS (at cost) | 4,895 | 4,895 | ||||
| Available-for-sale financial assets | AfS | 89,662 | 89,662 | ||||
| Financial assets held for trading | FAHfT | 4,343 | 4,343 | ||||
| Financial liabilities held for trading | FLHfT | 612 | 612 | ||||
| Derivative liabilities (with hedges) | 1,210 | 1,210 | |||||
| Financial liabilities measured at amortised cost |
FLAC | 1,477,039 | 1,477,039 |
1 These are related to Group shareholdings, predominantly shares in GmbHs, whose fair value cannot be reliably measured and for which there is no active market so that they are measured at acquisition cost less possible impairment. There are currently no concrete plans to sell.
2 Lease obligations fall under the application of IAS 17 and IFRS 7.
For the valuation of the mezzanine capital of TEUR 50,000 and the hybrid capital of TEUR 25,330 for UBM Development AG, the following input factors (pricing criteria) were applied:
– Mid Swap
– Credit spread UBM bond (Z-spread)
– Hybrid spread
The sum of these factors corresponds to the current pricing of the hybrid bond.
As a second step, the current pricing and contractually agreed coupon were compared, thereby determining the necessary surcharges/discounts.
| Mid swap | Credit spread | Hybrid spread | Hybrid coupon in % | |
|---|---|---|---|---|
| Balance at 30 June 2018 | 11.65 | 239.59 | 151 | 4.0224 |
| Balance at 31 Dec 2018 | 31.3 | 203.13 | 151 | 3.854 |
| Mezzanine capital | Hybrid capital | |||
| Total 1 Jan 2018 | 51,323 | 25,873 | ||
| Disposals | -51,323 | - |
Surcharges/discounts - -42 Total 30 June 2018 - 25,831
UBM Development AG paid back the mezzanine capital of TEUR 50,000 to PORR AG, effective 3 April 2018.
The valuation methods applied are subject to fluctuation of the three input factors. Any change in a single factor results in a respective change in value (e.g. if the mid swap increases by 1 BP, the receivable decreases in value by 1 BP).
Possible interdependencies have not been considered as it is not possible to assume either a significant negative or a significant positive correlation; therefore any individual change would increase the overall valuation in the respective amount.
There have been no significant changes in relationships between related companies, or any resultant obligations or guarantees, since 31 December 2017.
Transactions in the business year between companies included in the PORR Group's consolidated financial statements and the UBM Group companies primarily relate to construction services. Furthermore, interest for the mezzanine capital and hybrid capital of TEUR 5,589 has been paid to PORR AG in the business year 2018 along with a repayment totalling TEUR 50,000.
The sale of a 50% interest in H + E Haustechnik und Elektro GmbH represents a related party transaction.
In addition to subsidiaries and associates, related parties include the companies of the IGO-Ortner Group as they or their controlling entity has a significant influence over PORR AG through the shares which they hold, as well as the Strauss Group, as a member of the Executive Board of PORR AG has significant influence over it, as well as the Kapsch Group, as a member of the Executive Board of PORR AG holds a key position at the same time as having significant influence over PORR AG. In addition to people who have a significant influence over PORR AG, related parties also include the members of the Executive and Supervisory Boards of PORR AG as well as their close family members.
These interim financial statements of the PORR Group have neither been audited nor subjected to an audit opinion.
No events subject to disclosure occurred after the end of the reporting period.
Vienna, 29 August 2018
Karl-Heinz Strauss Andreas Sauer J. Johannes Wenkenbach
To the best of our knowledge, and in accordance with the applicable reporting principles for interim financial reporting, we confirm that the condensed interim consolidated financial statements give a true and fair view of the assets, liabilities, financial position and profit or loss of the Group. We furthermore confirm that the interim management report of the Group gives a true and fair view of the assets, liabilities, financial position and profit or loss of the Group with regard to any important developments over the first six months of the fiscal year, along with their impact on the condensed interim consolidated financial statements, together with a description of the principal risks and uncertainties for the remaining six months of the fiscal year and with regard to related party disclosures.
Vienna, 29 August 2018
Karl-Heinz Strauss Chief Executive Officer
Andreas Sauer Executive Board Member
J. Johannes Wenkenbach Executive Board Member
| 29.10.2018 | Interest payment PORR Corporate Bond 2014/1 (senior bond), Vienna |
|---|---|
| 29.10.2018 | Interest payment PORR Corporate Bond 2014/2 (hybrid bond), Vienna |
| 26.11.2018 | Interest payment and redemption PORR Corporate Bond 2013, Vienna |
| 29.11.2018 | Publication report on the 3rd quarter 2018, Vienna |
Investor Relations and Strategy [email protected] Corporate Communications [email protected]
The Half-Year Report can be obtained free of charge from the company at 1100 Vienna, Absberggasse 47, and may be downloaded from the website, www.porr-group.com/group-reports.
PORR AG 1100 Wien, Absberggasse 47 T +43 50 626-0 [email protected] porr-group.com
PORR AG Investor Relations and Strategy Corporate Communications be.public Corporate & Financial Communications, Vienna Tobias Sckaer
PORR (Executive Board photo), PORR/Astrid Knie (Austrian Parliament), PORR AG (PEMA II, Deep Tunnel Stormwater System, Opoczno Południe, Farris Bridge, E18 Rugtvedt-Dørdal), Basler Versicherung (Baloise Park), Linus Lintner (Zalando headquarters), Anke Müllerklein (Futura Campus), Tomas Maly (Budweiser warehouse)
This Half-Year Report also contains statements relating to the future which are based on estimates and assumptions which are made by managerial staff to the best of their current knowledge. Future-related statements may be identified as such by expressions such as "expected", "target" or similar constructions. Forecasts related to the future development of the Group take the form of estimates based on information available at the time of the interim report going to press. Actual results may differ from the forecast if they are shown to be based on inaccurate assumptions or are subject to unforeseen risks.
Every care has been taken to ensure that all information contained in every part of this Half-Year Report is accurate and complete. The figures have been rounded off using the compensated summation method. We regret that we cannot rule out possible round-off, typesetting and printing errors.
This report is a translation into English of the Half-Year Report issued in the German language and is provided solely for the convenience of English-speaking users. In the event of a discrepancy or translation error, the German-language version prevails.
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