Quarterly Report • Aug 31, 2010
Quarterly Report
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31 August 2010
| Key Figures | 3 |
|---|---|
| CEO ´S Review |
4 |
| Important Events | 5 |
| Share | 7 |
| Management Report January–June 2010 | 8 |
| Segment Report | 11 |
| Consolidated semi-annual | |
| financial statements | 15 |
| notes | 20 |
| Statement of all legal representatives | 30 |
| € Mln. | Q2/2010 | Q2/2009 | change in % |
6M/2010 | 6M/2009 | change in % |
12M/2009 |
|---|---|---|---|---|---|---|---|
| Output volume | 3,396.82 | 3,420.93 | -1 % | 5,234.20 | 5,611.26 | -7 % | 13,021.01 |
| Revenue | 3,246.52 | 3,264.99 | -1 % | 5,034.97 | 5,347.33 | -6 % | 12,551.93 |
| Order backlog | 15,752.01 | 14,318.85 | 10 % | 13,967.57 | |||
| Employees | 70,734 | 75,040 | -6 % | 75,548 |
| € Mln. | Q2/2010 | Q2/2009 | change in % |
6M/2010 | 6M/2009 | change in % |
12M/2009 |
|---|---|---|---|---|---|---|---|
| EBIT DA |
232.24 | 229.06 | 1 % | 186.22 | 162.75 | 14 % | 684.25 |
| EBIT DA margin |
|||||||
| % of revenue | 7.2 % | 7.0 % | 3.7 % | 3.0 % | 5.5 % | ||
| EBIT | 139.53 | 141.55 | -1 % | -10.36 | -11.13 | -7 % | 282.85 |
| EBIT margin % |
|||||||
| of revenue | 4.3 % | 4.3 % | -0.2 % | -0.2 % | 2.3 % | ||
| Profit | |||||||
| before taxes | 147.29 | 151.34 | -3 % | -17.11 | -27.69 | -38 % | 262.96 |
| Net income | 115.85 | 120.14 | -4 % | -12.80 | -21.80 | -41 % | 184.61 |
| Earnings | |||||||
| per share | 0.93 | 0.93 | 0 % | -0.10 | -0.21 | -51 % | 1.42 |
| Cash-flow | |||||||
| from operating | |||||||
| activities | -290.50 | -18.74 | 1,450 % | -407.85 | -208.65 | 95 % | 1,115.10 |
| RO CE in % |
2.8 % | 2.9 % | 0.6 % | 0.5 % | 5.7 % | ||
| Investments | |||||||
| in fixed assets | 161.58 | 120.71 | 34 % | 264.47 | 179.35 | 47 % | 508.73 |
| change | ||
|---|---|---|
| 30.6.2010 | 31.12.2009 | in % |
| 2,986.19 | 3,099.06 | -4 % |
| 31.3 % | 32.2 % | |
| 134.00 | -596.23 | n.m. |
| 4,5 % | -19.2 % | |
| 4,986.37 | 5,042.87 | -1 % |
| 9,549.03 | 9,613.59 | -1 % |
EBITDA = profit for the period before net interest income, income tax expense and depreciation and amortization EBIT = profit for the period before net interest income and income tax expense
ROCE = net income + interest on debt-interest tax shield (25 %) / (average group equity + interest-bearing debt)
Net Debt = financial liabilities less non-recourse debts + provisions for severance and pension obligations – cash and cash equivalents Gearing Ratio = Net Debt/Group Equity
Capital Employed = group equity + interest-bearing debt
Dr. hans peter haselsteiner Chairman of the Management Board
Once again, we can report a record order backlog. The 10 % increase over the end of June last year to € 15.8 billion this year is due not only to the boom market in Poland. We are also seeing the results of our plans to grow in Northern Europe and in non-European markets. This helps us to diversify the composition of our order backlog and to spread our risk.
The lower first-quarter output volume resulting from the winter weather could not be compensated for in the second quarter – at € 5.2 billion, we are 7 % below the levels after the first six months last year –, but we are well on our way to concluding the current financial year with output volume and results at the previous year's levels. Therefore, our outlook for the full year remains unchanged.
Dr. Hans Peter Haselsteiner
n Again record order backlog: € 15.75 billion
STRABAG was chosen as building contractor for the modernisation of the Kaiserstuhl power plant in the Swiss canton of Obwalden. The order is worth a total of approx. € 17.5 million. Construction began in June 2010 and is to be completed in December 2012. STRABAG's share is 100 %.
On 21 April 2010, the Port Authority of Zadar and STRABAG signed a contract for phase II of the new Gaženica ferry terminal at Zadar, Croatia. The contract is worth € 93 million and covers maritime structures, access roads and basic infrastructure of the new terminal. STRABAG will cooperate with local suppliers – as was the case during phase I of construction, carried out by a STRABAG consortium as well. This phase will be completed within 30 months.
STRABAG SE issued a five-year, € 100 million fixed-interest corporate bond with a coupon of 4.25 %. The issue price has been set at 100.976.
Lafarge, the world leader in building materials, and STRABAG formed a strategic partnership by combining their cement activities in several countries of Central Europe. The two companies signed an agreement on 25 May 2010 creating Lafarge Cement CE Holding GmbH. The new company will have its headquarters in Austria. Lafarge will bring its cement plants at Mannersdorf and Retznei in Austria, Cižkovice in Czech Republic and Trbovlje in Slovenia into the holding, while STRABAG will contribute the plant it is currently building in Pécs in Hungary. Lafarge then will hold a 70 % interest in the new company, while STRABAG will hold 30 %. Lafarge Cement CE Holding GmbH will have a total annual production capacity of 4.8 million tonnes of cement. Pending the approval by the relevant competition authorities, the company would become operational 1 January 2011.
STRABAG signed an agreement for the rehabilitation of national road DN 67B in Romania. The client is Romania's national road construction agency CNADNR SA. In a joint venture with two Romanian road construction companies, STRABAG will modernise 188.2 km of the national road between Scoarţa and Piteşti over a period of 36 months. The total value of the order is € 89 million, with STRABAG's share amounting to € 62 million (70 %).
In Abu Dhabi, STRABAG subsidiary Ed. Züblin AG will build the "non-process buildings" for the Takreer Refinery in Ruwais. The turnkey project, commissioned by the Abu Dhabi Oil Refining company (Takreer), comprises 17 buildings as well as access roads and extensive outdoor facilities on a total space of 205,273 m². Construction is expected to last 38 months. The total value of the order is € 94 million. STRABAG's share amounts to 100 %.
A consortium led by STRABAG Real Estate GmbH was awarded the contract for a public private partnership from the city of Mülheim an der Ruhr, Germany. The company was chosen in a multistage tender process to handle the redevelopment, partial new development and operation of the Karl-Ziegler-Schule, Luisenschule and Willy-Brandt-Schule as well as the operation of the Gemeinschaftsgrundschule Styrum for a period of 25 years. The contract volume amounts to € 160 million, of which € 52 million is for the construction and modernisation of the buildings. Construction should be completed in December 2012.
Due to the termination of the supervisory board terms with the Annual General Meeting (AGM) 2010, supervisory board elections took place on 18 June 2010 during the AGM of STRABAG SE. Alfred Gusenbauer and Kerstin Gelbmann were elected to the supervisory board. Alfred Gusenbauer replaces the former Chairman of the Supervisory Board Waldemar Jud. Gottfried Wanitschek and Siegfried Wolf were reelected to the supervisory board by the AGM. Gerhard Gribkowsky leaves the supervisory board and takes over new duties as a member of the supervisory board of the German subsidiary STRABAG AG, Cologne.
Upon approval of majority shareholder STRABAG SE, Ed. Züblin AG and Züblin minority shareholder Lenz amicably agreed on settling all pending law suits of the minority shareholder against the company.
With the acquisition of the majority interest in Rimex Group as at July 1, STRABAG Property and Facility Services (STRABAG PFS) GmbH continued on its growth course and expanded its service spectrum to include in-house services in the infrastructural facility management segment. Rimex specialises in services in the cleaning and landscaping area. With a staff of about 2,000 employees, Rimex realised a turnover of about € 27 million in 2009. The previous owners will re tain a 30-percent stake in the company and will continue to manage the company.
In Tyrol, Austria, STRABAG has been awarded the contract to plan and build the Brenner rest stop on the A13 including all necessary exterior facilities. STRABAG will operate the rest stop jointly with partners OMV and Rosenberger for a period of 30 years under a public-private partnership (PPP) model. The total investment volume for the project amounts to around € 11 million.
A consortium led by STRABAG will plan and build a cement factory in Devnya near Varna on Bulgaria's Black Sea coast for € 160 million. STRABAG's share amounts to € 90 million. The facility, which will have a daily capacity of 7,000 metric tonnes, will be built for client Devnya Cement AD, a subsi diary of Italcementi S.p. A .
Wolfgang Merkinger (58), the STRABAG SE mem ber of the management board with commercial responsibility for road construction, will resign his management board mandate effective 31 August 2010 for health reasons. Pending a decision in this regard by the supervisory board, Mr Merkinger's management board seat will not be filled and the STRABAG SE management board will be reduced to six members.
120 %
■ STRABAG SE ■ ATX ■ Dow Jones STOXX Construction & Materials
Shares of STRABAG SE closed at € 17.76 on 30 June 2010, a minus of 14 % in the first six months of 2010. The entire first half of the year was characterised by a slightly volatile downwards movement. On 15 January 2010, shares of STRABAG reached their highest level so far at € 21.96, while the year's low was hit on 7 May 2010 with € 17.60. The trade volume in the first six months amounted to € 510 million; the average trade volume per day was 211,760 shares. Both values are below the reference period of the first six months of 2009. The weight in the ATX was 1.6 %.
No clear trend could be seen on the international stock markets in the past half year. While the ATX, Austria's index of leading shares, and the Dow Jones STOXX Construction & Materials, which measures the performance of construction sector shares, registered a decline of 9 % and 11 % respectively, New York's Dow Jones Industrials gained 7 %, Japan's Nikkei Index rose 12 % and the Euro Stoxx 50 was up 15 %.
Shares of STRABAG are currently under observation by analysts from twelve international banks. The analysts calculated an average share price target of € 22.49. Detailed analyses and recommendations are available on the STRABAG SE website at www.strabag.com / Investor Relations / Share / Research & Analysts.
| STRABAG SE share | ||
|---|---|---|
| Market capitalisation on 30.6.2010 | € million | 2,025 |
| Closing price on 30.6.2010 | € | 17.76 |
| Year's maximum on 15.1.2010 | € | 21.96 |
| Year's minimum on 7.5.2010 | € | 17.60 |
| Performance six months 2010 | % | -14 |
| Outstanding bearer shares (absolute) | shares | 113,999,997 |
| Outstanding bearer shares (weighted) in Q2/10 | shares | 113,999,997 |
| Weight in ATX on 30.6.2010 | % | 1.6 % |
| Volume traded six months 2010 | € million* | 510 |
| Average trade volume per day | shares* | 211,760 |
| % of total volume traded on Vienna Stock Exchange | % | 1.3 |
7
The unfavourable weather conditions at the beginning of the year and the completion of several large projects in the Middle East led to a 7 % reduction in the output volume to € 5,234.20 million in the first six months of 2010. Sharp drops were registered in the Building Construction & Civil Engineering and the Special Divisions & Concessions segments, while the output volume remained stable in the Transportation Infrastructures segment. The group output volume remained nearly unchanged in the second quarter of 2010, losing just 1 % to € 3,396.82 million.
The picture was similar with the consolidated group revenue, which fell by 6 % to € 5,034.97 million in the first six months of 2010. In the second quarter of 2010, the revenue – and the output volume – was 1 % below the levels of the same period the year before.
The order backlog reached another record high of € 15,752.01 million. This time, the growth is due not only to newly acquired large-scale projects in the Polish transportations infrastructures segment. In Slovakia, the full consolidation of railway construction subsidiary Viamont in the first quarter of 2010 had a positive effect on the order backlog. STRABAG continues to successfully pursue the strategy of expanding its market presence in the Benelux countries, Scandinavia and the non-European markets to avoid being fully exposed to the margin pressure on the core markets in Europe.
The limited capacity for construction in winter results in significant seasonal effects on the development of earnings and other financial figures of STRABAG SE. The first quarter typically has a negative effect on results, which is not yet fully compensated by the positive results in the second quarter.
Expenses for raw materials, consumables and other services remained stable in the first six months measured in terms of the revenue. The earnings before interest, taxes, depreciation and amortisation (EBITDA) nevertheless gained 14 % over the last year due to the write-up through profit or loss for Czech railway construction company Viamont DSP of € 24.60 million (see Notes page 23). STRABAG increased its share in the company from 50 % to 100 %. A premium for control was considered in the purchase price for the additional 50 % interest. As synergy effects in the group may only be used after organisational measures, these synergies are not yet included in the goodwill. This resulted in a charge for goodwill impairment in the amount of € 14.00 million, which increased the depreciation and amortisation by 13 %. This results in earnings before interest and taxes (EBIT) of € -10.36 million compared to € -11.13 million in the same period last year.
A stable trend could be seen in the second quarter of 2010: while the EBITDA gained 1 % to € 232.24 million, the EBIT fell slightly by 1 % to € 139.53 million.
With € -6.75 million, the interest income in the first six months was less negative than in the same period the previous year (€ -16.57 million). While interests remained more or less unchanged, exchange rate decreases no longer had the same effect. The pre-tax result was € -17.11 million, compared to € -27.69 million in the first half of the year before. The negative earnings after taxes was reduced by 41 % to € -12.80 million. After minorities, the result is a 51 % decrease in consolidated losses to € -11.47 million and a result per share of € -0.10, compared to € -0.21 in the first half last year. Without the special items from the step acquisition of Viamont, the result per share would have been at around the previous year's level.
The balance sheet total changed only slightly from € 9,613.59 million on 31 December 2009 to € 9,549.03 million. Worth mentioning in this respect is a significantly lower level of cash and cash equivalents with simultaneous growth of property, plant and equipment and trade receivables. As a result, the net cash position at the end of 2009 turned into net debt of € 134.00 million at the end of June 2010. The equity ratio remained relatively stable at 31.3 % after 32.2 %.
The cash-flow from profits stood at € 98.00 million, just 5 % below the level after the first half of 2009, but the build-up of the working capital led to a significantly higher negative cash-flow from operating activities of € -407.85 million. Last year, the amount was € -208.64 million.
Several large capital expenditures in property, plant and equipment pushed the cash-flow from investing activities from € -169.40 million to € -241.80 million. The cash-flow from financing activities, by comparison, was only slightly negative at € -13.96 million after € -187.59 million; unlike the same period last year, a corporate bond was issued this year.
In addition to the necessary smaller maintenance expenditures, the first six months of the 2010 financial year saw expenditures in some large machinery for use in the railway sector as well as in construction material mixing facilities in Germany. These investments are included in the € -264.47 million for the purchase of property, plant, equipment and intangible assets. In the first two quarters of 2010, the STRABAG Group generated € 3.00 million with changes in scope of consolidation and spent € -28.99 million for the purchase of financial assets.
STRABAG responded to the economic situation by introducing workforce reductions in several countries – for example in the Czech Republic, Hungary and the Balkan states. This, coupled with the lower output volume in winter during the first quarter and the completion of large-scale projects in the Middle East, resulted in a drop in the average employee numbers in the first half of 2010 by 6 % to 70,734.
During the first six months of the financial year, there were no transactions with related parties which significantly influenced the financial situation or the business result nor were there any changes to transactions with related parties which were presented in the annual financial statements and which significantly influenced the financial situation or business result of the first six months of the current financial year.
In the course of its entrepreneurial activities, the STRABAG Group is exposed to a number of risks, which can be identified and assessed using an active risk management system and dealt with by applying an appropriate risk policy. Among the most important risks are external risks such as cyclical fluctuations in the construction industry, operating risks in the selection and execution of projects, as well as financial, organisational, personnel, and investment risks.
The risks are explained in more detail in the 2009 management report. A review of the current risk situation revealed that in the reporting period there existed no risks which threatened the existence of the company and that for the future no risks are recognizable which constitute a threat to its continued existence.
STRABAG sees good indications that it will be able to meet its forecast of closing the ongoing 2010 financial year at the previous year's levels in terms of both output volume as well as earnings. The high order backlog of € 15.75 billion, the positive development in the German building construction and civil engineering segment and the strong growth in Poland are all reason for optimism. At the same time, however, STRABAG faces strong competitive pressure in the Balkan region. There still has been no improved climate in the core market of Slovakia, and STRABAG expects to see significant weakening in Hungary compared to last year.
| Q2/10 € MLN. |
Q2/09 € MLN. |
change in % |
6M/10 € MLN. |
6M/09 € MLN. |
change in % |
2009 * € MLN. |
|
|---|---|---|---|---|---|---|---|
| Output volume | 1,059.25 | 1,088.04 | -3 % | 1,839.70 | 2,084.35 | -12 % | 4,773.47 |
| Revenue | 1,008.86 | 995.04 | 1 % | 1,747.73 | 1,933.27 | -10 % | 4,368.48 |
| Order backlog | 5,958.29 | 5,460.29 | 9 % | 6,236.52 | |||
| EBIT | 49.67 | 49.12 | 1 % | 42.94 | 39.61 | 8 % | 79.41 |
| EBIT margin as a |
|||||||
| % of revenue | 4.9 % | 4.9 % | 2.5 % | 2.0 % | 1.8 % | ||
| Employees | 17,931 | 19,853 | -10 % | 26,843 |
The Building Construction & Civil Engineering segment in the second quarter made up for some of the first quarter's winter decline in output volume, which, at € 1,839.70 million after the first half of 2010, settled at just 12 % below the previous year's six-month level.
While the revenue also registered a double digit decline to € 1,747.73 million, the earnings before interest and taxes (EBIT) showed a contrary trend, gaining 8 % to € 42.94 million thanks to improvements in nearly all STRABAG core markets.
In the second quarter, the output volume as well as the revenue and the EBIT showed almost stable development.
The order backlog after six months grew by 9 % year on year, as it did in the first quarter, to € 5,958.29 million. Especially noteworthy in this regard is the growth in Germany and the Benelux countries resulting from a number of new large orders.
In addition to previously acquired orders, including a € 170 million high-rise project in the Netherlands or a mini rolling mill for the Balakovo steel works in Russia (€ 150 million), the following projects, among others, were included in the order backlog in the second quarter:
As a result of the unusually long winter break, the average employee numbers fell to 17,931 persons, a 10 % decline compared to the first half of 2009. In several markets, such as Slovakia and the Czech Republic, STRABAG expects the lower workforce to be structural and, as a result, long-lasting.
The high order backlog is expected to secure the output volume and the results for the 2010 financial year at least at the previous year's levels in most countries, despite the fact that new orders from the private sector continue to come in only slowly. The market for building construction & civil engineering projects in Germany is showing positive development, and STRABAG expects to begin the year 2011 with a high order backlog. In Austria, the high order backlog in comparison to the previous year's period also paints a positive picture despite the continued pressure on margins. In Romania, Bulgaria and Croatia, STRABAG's Building Construction & Civil Engineering segment faces intense competitive pressure. The Czech Republic and Slovakia also show no indication of an improved climate.
| Q2/10 € MLN. |
Q2/09 € MLN. |
change in % |
6M/10 € MLN. |
6M/09 € MLN. |
change in % |
2009 * € MLN. |
|
|---|---|---|---|---|---|---|---|
| Output volume | 1,645.28 | 1,600.50 | 3 % | 2,154.97 | 2,141.84 | 1 % | 6,000.51 |
| Revenue | 1,571.69 | 1,524.24 | 3 % | 2,060.71 | 2,033.81 | 1 % | 5,853.18 |
| Order backlog | 5,541.72 | 4,975.41 | 11 % | 4,806.27 | |||
| EBIT | 70.01 | 85.41 | -18 % | -65.76 | -57.43 | -15 % | 163.74 |
| EBIT margin as a |
|||||||
| % of revenue | 4.5 % | 5.6 % | -3.2 % | -2.8 % | 2.8 % | ||
| Employees | 28,687 | 28,940 | -1 % | 33,374 |
The severe winter during the first quarter and the significant output volume growth in the second quarter in Poland balanced each other out, so that the output volume of the Transportation Infrastructures segment in the first half of 2010 increased slightly by 1 % to € 2,154.97 million. In contrast, employee numbers compared to the previous year's period fell by 1 % to 28,687 persons. Strong growth of more than 1,000 employees in Poland was counterbalanced by reductions in Austria, Hungary, Romania and Serbia.
The revenue also remained nearly unchanged, gaining just 1 % to € 2,060.71 million. The earnings before interest and taxes (EBIT) sank to € -65.76 million, 15 % deeper in negative territory than in the first six month of last year, as a result of the lower margins in Hungary and the weak construction materials business.
In the second quarter, slight gains could be seen in both the output volume as well as the revenue. The EBIT, however, fell by 18 %.
The order backlog grew by 11 % to € 5,541.72 million. This increase is due largely to growth in Poland – in the second quarter alone, STRABAG won road construction lots in Poland with a contract value of more than € 300 million – but also in Scandinavia and Romania. In Romania, a STRABAG consortium was awarded the contract for the rehabilitation of national road DN 67B, with STRABAG's share amounting to 70 % or € 62 million.
STRABAG continues to expect to keep both the output volume and the margins in the Transportation Infrastructures segment – and in the group as a whole – at about the previous year's levels in the 2010 financial year. While the Austrian home market is dominated by in part intense ruinous competition and margin pressure, particularly in the individual federal states, large-scale projects in Germany stabilised the output volume and the results there. As a result of the austerity packages announced in Germany, private-sector tenders are again gaining in importance.
In Poland, the output volume is expected to nearly double, with slightly lower margins, over the previous year's levels. At the same time, the still difficult financing environment and the elections in Slovakia and the Czech Republic resulted in a lower tendering volume and a lower number of new orders for STRABAG. The company is currently bidding for railway construction contracts and motorway modernisation projects in these countries.
In the building materials business, prices were down for cement and concrete in particular. This was countered by higher prices for bitumen and polymers, which led to higher costs in mixture production. For the 2010 full year, lower revenues and lower results are to be expected in the building materials business.
| Q2/10 € MLN. |
Q2/09 € MLN. |
change in % |
6M/10 € MLN. |
6M/09 € MLN. |
change in % |
2009 * € MLN. |
|
|---|---|---|---|---|---|---|---|
| Output volume | 644.73 | 669.36 | -4 % | 1,155.58 | 1,282.62 | -10 % | 2,077.58 |
| Revenue | 657.43 | 737.71 | -11 % | 1,209.04 | 1,362.30 | -11 % | 2,293.45 |
| Order backlog | 4,226.68 | 3,859.49 | 10 % | 2,902.99 | |||
| EBIT | 18.02 | 12.87 | 40 % | 9.77 | 4.83 | 102 % | 58.70 |
| EBIT margin as a |
|||||||
| % of revenue | 2.7 % | 1.7 % | 0.8 % | 0.4 % | 2.6 % | ||
| Employees | 18,865 | 20,838 | -9 % | 9,943 |
The output volume in the Special Divisions & Concessions segment in the first six months of the 2010 financial year fell by 10 % on the year to € 1,155.58 million. The lower output volume is due in part to the small number of projects in tunnelling and in part to declines in the Middle East.
The revenue showed a similar picture, sinking by 11 % to € 1,209.04 million. In comparison, the earnings before interest and taxes (EBIT) more than doubled to € 9.77 million, an effect, however, which can be explained primarily by the lower basis of comparison.
In the second quarter, the output volume fell slightly by 4 % to € 644.73 million. The revenue was down 11 % due to the sale of project developments and the settlement of large-scale projects in the comparison period last year which boosted revenue without increasing the output volume. The EBIT, by comparison, grew by 40 % to € 18.02 million, resulting in a significant improvement of the EBIT margin from 1.7 % to 2.7 %.
In line with the lower output volume, employee numbers in the Middle East fell by more than 2,000 persons. This resulted in a 9 % decline in workforce levels throughout the entire segment to 18,865 employees. At the same time, the order backlog at the end of June increased by 10 % to € 4,226.68 million. This positive development was driven by non-European markets.
New large orders outside of the STRABAG core markets in the first quarter include, for example, the construction of a coker unit (€ 23 million) and of two warehouses (€ 18 million) in Jubail, Saudi Arabia. In the second quarter, the STRABAG subsidiary Ed. Züblin AG won a contract worth € 94 million to expand the Takreer Refinery in the emirate of Abu Dhabi and an order with an investment volume of € 220 million to build the Khalifa Port facility 60 km from Abu Dhabi. Ed. Züblin's share of the latter project amounts to 47.5 %.
STRABAG is also working on a new large-scale project on the German home market: a consortium led by STRABAG Real Estate GmbH was awarded the contract for a public-private partnership (PPP) from the city of Mülheim an der Ruhr. STRABAG will build and operate several schools for a period of 25 years. The contract volume amounts to € 160 million, of which € 52 million is for the construction and modernisation of the buildings.
Given the enormous competitive pressure and falling demand for tunnelling services across Europe, STRABAG is shifting its focus – in both tunnelling and transportation infrastructures – onto international large-scale projects both within as well as outside of the core markets. Bids are currently being prepared in Abu Dhabi, Chile and India, among other places. These projects require a high degree of technological know-how. The calculated margins are attractive enough to justify the added risk in non-European countries and the high bidding costs.
Regarding STRABAG Property & Facility Services, the service business, STRABAG is confident of higher earnings on a slightly lower output volume in the 2010 financial year. This will be possible thanks to efficiency gains and savings in terms of structural costs. The challenge consists in acquiring new clients in order to compensate for the lower revenue with the dominant client Deutsche Telekom AG. In July, STRABAG acquired a majority interest in the Rimex Group, helping to expand its spectrum in the infrastructural facility management segment and taking a further step towards increasing its attractiveness as a single-source provider for property & facility management services.
The field of PPP building construction developed downwards as expected in the first half of 2010, as the economic stimulus packages necessitated a trend towards tendering public-sector projects conventionally. Nevertheless, the project pipeline is developing positively. With its project development business, STRABAG continues to focus on commercial properties in the mid-double-digit million Euro range. The company has also expanded its offer in Germany in the area of residential construction for large investors.
SE Semi-annual report 2010
Consolidated semi-annual Financial Statements
strabag
15
| 1.4.-30.6.2010 | 1.4.-30.6.2009 | 1.1.-30.6.2010 | 1.1.-30.6.2009 | |
|---|---|---|---|---|
| T€ | T€ | T€ | T€ | |
| Revenue | 3,246,522 | 3,264,992 | 5,034,970 | 5,347,326 |
| Changes in inventories | 10,073 | -37,480 | 18,688 | -30,333 |
| Own work capitalised | 23,093 | 13,374 | 35,689 | 27,044 |
| Other operating income | 46,636 | 40,405 | 118,166 | 113,242 |
| Raw materials, consumables | ||||
| and services used | -2,117,376 | -2,101,762 | -3,332,632 | -3,580,323 |
| Employee benefits expense | -725,571 | -708,906 | -1,304,468 | -1,312,440 |
| Other operating expenses | -261,698 | -246,807 | -417,527 | -405,929 |
| Share of profit | ||||
| or loss of associates | 1,853 | 632 | 25,071 | -2,373 |
| Net investment income | 8,710 | 4,607 | 8,263 | 6,534 |
| EBITDA | 232,242 | 229,055 | 186,220 | 162,748 |
| Depreciation and | ||||
| amortisation expense | -92,715 | -87,510 | -196,579 | -173,876 |
| EBIT | 139,527 | 141,545 | -10,359 | -11,128 |
| Interest and similar income | 17,770 | 17,383 | 37,288 | 35,137 |
| Interest expense and similar charges | -10,005 | -7,590 | -44,036 | -51,703 |
| Net interest income | 7,765 | 9,793 | -6,748 | -16,566 |
| Profit before tax | 147,292 | 151,338 | -17,107 | -27,694 |
| Income tax expense | -31,441 | -31,201 | 4,310 | 5,896 |
| Net income | 115,851 | 120,137 | -12,797 | -21,798 |
| Attributable to: | ||||
| Non-controlling interests | 9,490 | 14,271 | -1,331 | 1,612 |
| Attributable to: | ||||
| Equity holders of the parent | 106,361 | 105,866 | -11,466 | -23,410 |
| Earnings per share (in €) | 0.93 | 0.93 | -0.10 | -0.21 |
| 1.4.-30.6.2010 T€ |
1.4.-30.6.2009 T€ |
1.1.-30.6.2010 T€ |
1.1.-30.6.2009 T€ |
|
|---|---|---|---|---|
| Net income | 115,851 | 120,137 | -12,797 | -21,798 |
| Differences arising from | ||||
| currency translation | -24,484 | 53,106 | 7,712 | -9,104 |
| Change in hedging reserves | ||||
| including interest rate swaps | -39,627 | 54,704 | -40,193 | -7,765 |
| Deferred taxes on | ||||
| neutral change in equity | 4,247 | -13,016 | 3,281 | 1,723 |
| Total comprehensive income | 55,987 | 214,931 | -41,997 | -36,944 |
| Attributable to: | ||||
| Non-controlling interests | 7,748 | 17,311 | -2,312 | 955 |
| Attributable to: | ||||
| Equity holders of the parent | 48,239 | 197,620 | -39,685 | -37,899 |
| Ass ets |
30.6.2010 T€ |
31.12.2009 T€ |
|---|---|---|
| Non-current assets | ||
| Intangible assets | 551,349 | 496,056 |
| Property, plant and equipment | 2,245,485 | 2,146,440 |
| Investment property | 95,948 | 113,120 |
| Investments in associates | 88,427 | 131,949 |
| Other financial assets | 269,457 | 240,833 |
| Receivables from concession arrangements | 892,429 | 938,532 |
| Trade receivables | 66,917 | 61,410 |
| Non financial assets | 6,264 | 5,398 |
| Other financial assets | 33,551 | 32,730 |
| Deferred taxes | 159,105 | 133,984 |
| 4,408,932 | 4,300,452 | |
| Current assets | ||
| Inventories | 702,733 | 655,703 |
| Receivables from concession arrangements | 18,728 | 18,008 |
| Trade receivables | 2,795,008 | 2,401,589 |
| Non financial assets | 138,549 | 121,126 |
| Other financial assets | 355,446 | 333,761 |
| Cash and cash equivalents | 1,129,631 | 1,782,951 |
| 5,140,095 | 5,313,138 | |
| 9,549,027 | 9,613,590 |
| 30.6.2010 | 31.12.2009 | |
|---|---|---|
| Equity and Liabilities | T€ | T€ |
| Group equity | ||
| Share capital | 114,000 | 114,000 |
| Capital reserves | 2,311,384 | 2,311,384 |
| Retained earnings | 423,274 | 524,803 |
| Non-controlling interests | 137,535 | 148,877 |
| 2,986,193 | 3,099,064 | |
| Non-current liabilities | ||
| Provisions | 878,192 | 867,626 |
| Financial liabilities 1) | 1,251,300 | 1,274,647 |
| Trade payables | 52,669 | 40,011 |
| Non financial liabilities | 1,063 | 1,067 |
| Other financial liabilities | 45,256 | 68,090 |
| Deferred taxes | 22,539 | 53,990 |
| 2,251,019 | 2,305,431 | |
| Current liabilities | ||
| Provisions | 592,997 | 580,407 |
| Financial liabilities 2) | 315,799 | 234,515 |
| Trade payables | 2,674,954 | 2,635,245 |
| Non financial liabilities | 282,638 | 360,363 |
| Other financial liabilities | 445,427 | 398,565 |
| 4,311,815 | 4,209,095 | |
| 9,549,027 | 9,613,590 |
| 1.1.–30.6.2010 T€ |
1.1. –30.6.2009 T€ |
|
|---|---|---|
| Net income | -12,797 | -21,798 |
| Deferred taxes | -56,176 | -36,363 |
| Non-cash effective results from associates | -24,994 | 3,106 |
| Depreciations/write ups | 196,611 | 173,388 |
| Changes in long term provisions | 10,318 | -9,026 |
| Gains/losses on disposal of non-current assets | -14,958 | -5,956 |
| Cash-flow from profits | 98,004 | 103,351 |
| Change in items: Inventories |
-42,304 | 9,988 |
| Trade receivables, construction contracts and consortia |
-394,059 | -236,540 |
| Receivables from subsidiaries and receivables from participation companies |
-10,253 | -24,587 |
| Other assets | -15,833 | -12,813 |
| Trade payables, | ||
| construction contracts and consortia | 13,031 | 59,420 |
| Liabilities from subsidiaries and | ||
| liabilities from participation companies | 5,021 | 17,849 |
| Other liabilities | -66,298 | -111,847 |
| Current provisions | 4,840 | -13,466 |
| Cash-flow from operating activities | -407,851 | -208,645 |
| Purchase of financial assets | -28,988 | -14,235 |
| Purchase of property, plant, equipment and intangible assets | -264,472 | -179,345 |
| Gains/losses on disposal of non-current assets | 14,958 | 5,956 |
| Disposals of non-current assets (carrying value) | 30,180 | 35,538 |
| Change in other cash clearing receivables | 3,517 | -4,944 |
| Change in scope of consolidation | 3,002 | -12,373 |
| Cash-flow from investing activities | -241,803 | -169,403 |
| Change in bank borrowings | 42,331 | -8,654 |
| Change in bonds | 25,000 | -50,000 |
| Change in non-current provisions | 0 | -61,026 |
| Change in liabilities from finance leases | -9,813 | -6,423 |
| Change in other cash clearing liabilities | -605 | 8,389 |
| Change in equity due to capital consolidation | -11,074 | -1,918 |
| Distribution and withdrawals from partnership | -59,800 | -67,960 |
| Cash-flow from financing activities | -13,961 | -187,592 |
| Cash-flow from operating activities | -407,851 | -208,645 |
| Cash-flow from investing activities | -241,803 | -169,403 |
| Cash-flow from financing activities | -13,961 | -187,592 |
| Net change in cash and cash equivalents | -663,615 | -565,640 |
| Cash and cash equivalents at the beginning of the year | 1,782,951 | 1,491,373 |
| Change in cash and cash equivalents due to currency translation | 10,295 | -10,386 |
| Cash and cash equivalents at the end of the period | 1,129,631 | 915,347 |
| Interest paid | 37,128 | 39,625 |
| Interest received | 27,244 | 29,970 |
| Taxes paid | 62,086 | 56,502 |
Consolidated semi-annual Financial Statements
18
| Foreign | Non-con | |||||||
|---|---|---|---|---|---|---|---|---|
| Share | Capital | Retained | Hedging | curr ency |
Gro up |
tro lling |
Total | |
| capital | reserves | earnings | reserve | reserve | equity | interests | equity | |
| T€ | T€ | T€ | T€ | T€ | T€ | T€ | T€ | |
| Balance as | ||||||||
| of 1.1.2010 | 114,000 | 2,311,384 | 617,207 | -65,284 | -27,120 2,950,187 | 148,877 | 3,099,064 | |
| Total | ||||||||
| compre | ||||||||
| hensive | ||||||||
| income | 0 | 0 | -11,466 | -36,015 | 7,796 | -39,685 | -2,312 | -41,997 |
| Change | ||||||||
| due to capi | ||||||||
| tal consoli | ||||||||
| dation | 0 | 0 | -4,844 | 0 | 0 | -4,844 | -6,230 | -11,074 |
| Distribution | ||||||||
| of dividends | 0 | 0 | -57,000 | 0 | 0 | -57,000 | -2,800 | -59,800 |
| Balance as | ||||||||
| of 30.6.2010 | 114,000 | 2,311,384 | 543,897 | -101,299 | -19,324 2,848,658 | 137,535 | 2,986,193 |
| Share capital T€ |
Capital reserves T€ |
Retained earnings T€ |
Hedging reserve T€ |
Foreign curr ency reserve T€ |
Gro up equity T€ |
Non-con tro lling interests T€ |
Total equity T€ |
|
|---|---|---|---|---|---|---|---|---|
| Balance as of 1.1.2009 |
114,000 2,311,384 | 530,342 | -97,755 | -20,414 2,837,557 | 141,424 2,978,981 | |||
| Total compre hensive income |
0 | 0 | -23,410 | -5,830 | -8,659 | -37,899 | 955 | -36,944 |
| Change in non-control ling interest due to capi tal consoli dation |
0 | 0 | 0 | 0 | 0 | 0 | -1,918 | -1,918 |
| Distribution of dividends |
0 | 0 | -62,700 | 0 | 0 | -62,700 | -5,260 | -67,960 |
| Balan ce as of 30.6.2009 |
114,000 2,311,384 | 444,232 | -103,585 | -29,073 2,736,958 | 135,201 2,872,159 |
The consolidated semi-annual financial statements of STRABAG SE, based in Villach, Austria, with reporting date 30 June 2010 were drawn up under application of IAS 34 in accordance with the International Financial Reporting Standards (IFRS) – issued by the International Accounting Standards Board (IASB) in London and recognised by the European Union – including the interpretations of the International Financial Reporting Interpretations Committee (IFRIC) valid on the reporting date. Applied were exclusively those IASB standards and interpretations adopted by the European Commission before the reporting deadline and published in the Official Journal of the European Union.
In accordance with IAS 34, the consolidated semi-annual financial statements do not contain all the information and details required of annual financial statements. The semi-annual statements should therefore be read in conjunction with the annual financial statements of STRABAG SE, Villach, with reporting date 31 December 2009.
The consolidated financial statements of the Group as at and for the year ended 31 December 2009 are available at www.strabag.com.
The following amended or new accounting standards are effective for annual periods beginning on or after 1 January 2010:
| App lication for financial years which begin on or aft er (accord ing to IASB) |
App lication for financial years which begin on or aft er (accord ing to EU endors ement) |
|
|---|---|---|
| IFRS 1 First-time Adoption of IFRS | 1.7.2009 | 1.1.2010 |
| IFRS 1 Amendments to | ||
| Additional Exemptions for First-time Adopters | 1.1.2010 | 1.1.2010 |
| IFRS 2 Amendments for Group | ||
| Cash-settled Share-based Payment Transactions | 1.1.2010 | 1.1.2010 |
| IFRS 3 Business Combinations (adapted 2008) | 1.7.2009 | 1.7.2009 |
| IAS 27 Consolidated and Separate |
||
| Financial Statements under IFRS (amended) | 1.7.2009 | 1.7.2009 |
| IAS 39 Recognition an Measurement |
||
| of Eligible Hedged Items | 1.7.2009 | 1.7.2009 |
| IFRIC 12 Service Concession Arrangements | 1.1.2008 | 30.3.2009 |
| IFRIC 15 Agreements for | ||
| the Construction of Real Estate | 1.1.2009 | 1.1.2010 |
| IFRIC 16 Hedges of a Net Investment | ||
| in a Foreign Operation | 1.10.2008 | 1.7.2009 |
| IFRIC 17 Distributions of Non-cash Assets to Owners | 1.7.2009 | 1.11.2009 |
| IFRIC 18 Transfers of Assets from Customers | 1.7.2009 | 1.11.2009 |
| Amendments to various IFRS under | ||
| the 2009 annual improvement process | 1.1.2009 | 1.1.2010 |
The following changes result in the present semi-annual report in comparison to 31 December 2009:
IFRS 3 and IAS 27: Phase II of the Capital Consolidation project reworked the rules for capital consolidation. The most important changes are that IFRS 3 allows an accounting policy choice to measure non-controlling interest at fair value (full goodwill method), transaction costs must be recognised in profit or loss, no goodwill adjustments are possible with post-acquisition reassessment of the purchase price, and step acquisitions result in a remeasurement of the previously recognised assets and liabilities in profit or loss. Furthermore, all transactions with minority shareholders are recognised directly in equity.
IFRIC 12 Service Concession Arrangements: IFRIC 12 regulates the accounting of rights and duties from service concession agreements. If the company has an unconditional contractual right to receive a payment, a financial asset is recognised (financial asset model). If the company merely has the right to charge users a usage fee, an intangible asset is recognised (intangible asset model). STRABAG already applies IFRIC 12 for the classification of assets. No changes therefore result from mandatory application of this interpretation.
IFRIC 15 Agreements for the Construction of Real Estate: IFRIC 15 puts into concrete terms the concept of construction contracts according to IAS 11 and reconciles revenue recognition according to IAS 18 with agreements for the construction of real estate. IFRIC 15 states that IAS 11 is applicable only if the buyer has the ability to specify the major structural elements of the real estate design – if not, IAS 18 applies.
The first-time application of the remaining IFRS and IFRIC mentioned had secondary consequences on the semi-annual consolidated financial statements for the period ending 30 June 2010.
With exception of the above mentioned changes in the accounting and valuation methods the accounting and valuation are fundamentally based on the same accounting principles and valuation methods underlying the consolidated annual financial statements with reporting date 31 December 2009.
Information regarding the accounting and valuation methods can be found in the annual financial statements with reporting date 31 December 2009.
The establishment of the semi-annual report requires estimations and assumptions to be made which may influence the application of the accounting and valuation methods as well as the figures for the assets, liabilities, expenses and income. The actual results could deviate from these estimates.
The consolidated semi-annual financial statements as of 30 June 2010 include STRABAG SE as well as all major domestic and foreign subsidiaries where STRABAG SE either directly or indirectly holds a majority of the voting rights. Major associated companies are reported in the balance sheet using the equity method.
The number of consolidated companies changed in the 1-6/2010 period as follows:
| consolidation | equity method | |
|---|---|---|
| Situation on 31.12.2009 | 316 | 14 |
| First-time inclusions in the reporting period | 1 | 0 |
| First-time inclusions in the | ||
| reporting period due to demerger | 1 | 0 |
| Exclusions in the reporting period | -1 | -1 |
| Situation on 30.6.2010 | 317 | 13 |
The exclusions concern the Jakob Gärtner GmbH, Friedberg, which fell below significant level as well as the former associated company Viamont DSP a.s., Usti nad Labem, which has been consolidated since 15 February 2010.
The following companies formed part of the scope of consolidation for the first time on the reporting date:
| Comp any |
direct stake % |
Date of acquisition or foundation |
|---|---|---|
| Consolidation: | ||
| Magyar Aszfalt Kft, Budapest | 100.00 | 1.1.2010 1) |
| Viamont DSP a.s., Usti nad Labem | 100.00 | 15.2.2010 |
With the purchase agreement from 21 December 2009, STRABAG SE acquired a further 50 % of the shares in Viamont DSP a.s., Usti nad Labem, Czech Republic. 50 % of the company had already been owned by the STRABAG Group.
Viamont, one of Eastern Europe's leading rail construction companies, generated revenue of CZK 4 billion (about € 150 million) last year.
Approval by the cartel authorities was delivered on 15 February 2010.
The purchase price is preliminary allocated to assets and liabilities as follows:
| T€ | |
|---|---|
| Acquired assets and liabilities: | |
| Goodwill | 65,946 |
| Other non-current assets | 31,755 |
| Current assets | 100,088 |
| Non-current liabilities | -7,773 |
| Current liabilities | -74,798 |
| Purchase price | 115,218 |
| Less non-cash-effective purchase price component | -76,405 |
| Acquired cash and cash equivalents | -41,844 |
| Net cash inflow from the acquisition | -3,031 |
In accordance with the new rule regarding step acquisitions as provided by IFRS 3 and IAS 27, the previous interest in Viamont DSP a.s. is increased through profit or loss at the fair value in the amount of T€ 24,600.
For the acquisition of 100 % of Viamont DSP a.s., a premium for control was considered in the purchase price for the additional 50 % interest. As synergy effects in the group may only be used after organisational measures, these synergies are not yet included in the value-in-use calculation for goodwill. This resulted in a charge for goodwill impairment in the amount of T€ 14,000.
The result of the initial consolidation of Viamont DSP a.s. was a positive earnings effect in the amount of T€ 10,600.
The consolidation of companies included for the first time took place at the date of acquisition or the nearest reporting date provided that this had no significant implications to an inclusion at the date of acquisition.
Assuming a fictitious initial consolidation on 1 January 2010 for all acquisitions in the reporting period, the consolidated revenue would amount to T€ 5,038,680 and consolidated profit would have changed by a total of T€ -541.
All companies which were consolidated for the first time in the reporting period contributed T€ 67,285 to revenue and T€ 1,477 to profit.
Apart from the above mentioned changes concerning transaction with minority shareholders and step acquisitions (see page 21), the same methods of consolidation and principles of currency translation were applied in drawing up the consolidated semi-annual financial statements with reporting date 30 June 2010 as were used for the consolidated annual financial statements with reporting date 31 December 2009. Details regarding the methods of consolidation and principles of currency translation are available in the 2009 annual report.
Due to snow, ice and other adverse weather conditions, revenue is usually lower in the winter months than in the summer. As the largest part of the costs involves fixed costs, noteworthy losses are posted in the first quarter every year. Starting with the second quarter, these losses are compensated for by rising contribution margins. The break-even point is usually not yet reached before the end of the second quarter. The largest portion of the earnings is expected in the third and fourth quarters. Seasonal fluctuations in the Transportation Infrastructures business are greater than they are in Building Construction & Civil Engineering.
The above-described, annually repeating business trend allows a year-on-year comparison of output volume, revenue and results of the respective quarters.
Interest income from concession contracts which is included in other operating income is represented as follows (also see notes on receivables from concession arrangements):
| 1.1.–30.6.2010 T€ |
1.1.–30.6.2009 T€ |
|
|---|---|---|
| Interest income | 36,615 | 36,146 |
| Interest expense | -18,286 | -20,946 |
| Total | 18,329 | 15,200 |
Goodwill assets are subjected to an annual impairment test in accordance with IAS 36. The impairment test is carried out in the last two months of the financial year.
In 1-6/2010, a total goodwill from capital consolidation in the amount of T€ 65,946 was capitalized and T€ 14,000 were impaired (see the information regarding the initial consolidation of Viamont DSP a.s., Usti nad Labem, on page 23).
In 1-6/2010, tangible and intangible assets in the amount of T€ 264,472 (1-6/2009 T€ 179,345) were acquired.
In the same period, tangible and intangible assets, with a book value of T€ 28,267 were sold (1-6/2009 T€ 29,297).
On the reporting date, there were € 134 million (30 June 2009 € 94 million) in contractual commitments for the acquisition of property, plant and equipment which were not considered in the financial statement.
STRABAG has a 100 % interest in the Hungarian M5 Motorway Concession Company AKA Alföld Koncessizios Autopalya Zrt., Budapest (AKA).
In the concession agreement with the Hungarian state, AKA committed to develop, plan, finance and build and operate the M5 motorway. The motorway itself is the property of the state; all vehicles and equipment necessary for motorway operation are to be transferred to the state free of charge following the end of the concession period.
In exchange, AKA will regularly receive an availability fee, independent of transit volume, from the Hungarian state for making the motorway available to the public. AKA bears the operator's risk of motorway closure and non-compliance of contractually agreed roadway criteria.
The route totals 156.5 km and was built in three phases. The concession period runs until 2031. A onetime extension for up to 17.5 years is possible.
All services provided under this concession contract are accounted for under the separate balance sheet item "Receivables from concession arrangements". The receivables are carried at the present value of the payment to be made by the state. The annual accumulation amount is recognised in "Other operating income".
A part of the availability fee consists of interest adjustment payments of the Hungarian state. As a result, the state bears the interest risk from the financing of AKA. These interest adjustment payments represent an embedded hedging transaction which is measured separately in accordance with IAS 39.11. Presentation is made as a cash flow hedge; as a result, changes in the fair value of the interest rate swap are recognised directly in equity.
The market value of the interest rate swap in the amount of T€ -5,116 (31 December 2009 T€ 31,440) is also recognised as long-term receivables from concession arrangements.
Recognisable receivables from concession arrangements are offset by non-recourse financing in the amount of T€ 736,547 (31 December 2009 T€ 757,080), classified either as a current or non-current liability depending on the term. The resulting interest expense is recognised in "Other operating income".
The fully paid share capital amounts to € 114,000,000 and is divided into 113,999,997 no-par bearer shares and 3 registered shares.
The following resolutions were passed at the Annual General Meeting of 18 June 2010:
The existing authorisation to buy back own shares as per resolution by the Annual General Meeting of 19 June 2009 was cancelled.
The management board was authorised to acquire bearer or registered no-par shares of the company on the stock market or over the counter to the extent of up to 10 % of the share capital during a period of 12 months from the day of the resolution at a minimum price per share of EUR 1.00 and a maximum price per share of EUR 34.00. The purpose of the acquisition may not be to trade with own shares. The authorisation can be exercised in full or in part or in several partial amounts for one or several purposes by the company, a subsidiary or third parties acting on behalf of the company.
The management board can decide to acquire shares on the stock exchange but must inform the supervisory board following decision to do so. Over-the-counter purchases require prior approval by the supervisory board.
The management board was further authorised, for a period of five years from this resolution, to sell or assign its own shares, with approval by the supervisory board, in a manner other than on the stock market or through a public tender, to the exclusion of the shareholders' buyback rights (subscription rights), and to determine the conditions of sale. The authorisation can be exercised in full or in part or in several partial amounts for one or several purposes by the company, a subsidiary or third parties acting on behalf of the company.
The changes in equity are shown in the statement of changes in equity.
The company has accepted the following guarantees:
| 30.6.2010 | 31.12.2009 | |
|---|---|---|
| T€ | T€ | |
| Guarantees without financial guarantees | 2,722 | 6,787 |
Furthermore, there is a derived credit risk arising from the financial guarantee contracts (guarantees issued) of T€ 37,285 (31 December 2009 T€ 41,368).
The rules of IFRS 8 Operating Segments apply to the segment reporting. IFRS 8 prescribes defining the segments and reporting the earnings and net assets on the basis of the internal reporting.
Internal reporting at STRABAG is based on the dedicated management board functions Building Construction & Civil Engineering, Transportation Infrastructures and Special Divisions & Concessions, which represent the group's operating segments. In addition, there are the central business units and central staff units, which handle services in the areas of accounting, group financing, technical development, machine management, quality management, logistics, legal affairs, contract management, etc. These services are included in the segment Miscellaneous.
The settlement between the single segments is made at arm's-length prices.
From 1 January 2010, STRABAG is grouping its activities in non-European markets which had previously been handled under the segments Building Construction & Civil Engineering and Transportation Infrastructures in the Special Divisions & Concessions segment. For the purposes of comparison, the previous year's figures were adjusted to the new structure.
| Profit before tax | 49,670 | 70,013 | 18,020 | 7,910 | 1,679 | 147,292 |
|---|---|---|---|---|---|---|
| Interest expense and similar charges |
0 | 0 | 0 | -10,005 | 0 | -10,005 |
| Interest and similar income |
0 | 0 | 0 | 17,770 | 0 | 17,770 |
| EBIT | 49,670 | 70,013 | 18,020 | 145 | 1,679 | 139,527 |
| Intersegment revenue |
28,807 | 97,107 | 0 | 262,699 | ||
| Revenue | 1,008,859 | 1,571,688 | 657,434 | 8,541 | 0 | 3,246,522 |
| Output Volume | 1,059,246 | 1,645,282 | 644,727 | 47,567 | 3,396,822 | |
| Building Constr uc tion and Civil Engineering 1.4. –30.6.2010 T€ |
Transport a tion Infr a str uctures 1.4. –30.6.2010 T€ |
Special Divisi ons & Conces sions 1.4. –30.6.2010 T€ |
Miscellane ous 1.4. –30.6.2010 T€ |
Reconcilia tion to IFRS Financial Statements 1.4. –30.6.2010 T€ |
Total 1.4. –30.6.2010 T€ |
| Building Constr uc tion and Civil Engineering 1.4.–30.6.2009 T€ |
Transport a tion Infr a str uctures 1.4.–30.6.2009 T€ |
Special Divisi ons & Conces sions 1.4.–30.6.2009 T€ |
Miscellane ous 1.4. –30.6.2009 T€ |
Reconcilia tion to IFRS Financial Statements 1.4.–30.6.2009 T€ |
Total 1.4.–30.6.2009 T€ |
|
|---|---|---|---|---|---|---|
| Output Volume | 1,088,040 | 1,600,503 | 669,363 | 63,024 | 3,420,930 | |
| Revenue | 995,041 | 1,524,243 | 737,710 | 7,998 | 0 | 3,264,992 |
| Intersegment revenue |
55,042 | 28,252 | 1,235 | 238,965 | ||
| EBIT | 49,123 | 85,412 | 12,863 | -1,048 | -4,805 | 141,545 |
| Interest and similar income |
0 | 0 | 0 | 17,383 | 0 | 17,383 |
| Interest expense and similar charges |
0 | 0 | 0 | -7,590 | 0 | -7,590 |
| Profit before tax | 49,123 | 85,412 | 12,863 | 8,745 | -4,805 | 151,338 |
| Building | Reconcilia | |||||
|---|---|---|---|---|---|---|
| Constr uc |
Transport a |
Special Divisi | tion to IFRS |
|||
| tion and Civil Engineering |
tion Infr a str uctures |
ons & Conces sions |
Miscellane ous |
Financial Statements |
Total | |
| 1.1.–30.6.2010 | 1.1. –30.6.2010 | 1.1. –30.6.2010 | 1.1.–30.6.2010 | 1.1. –30.6.2010 | 1.1. –30.6.2010 | |
| T€ | T€ | T€ | T€ | T€ | T€ | |
| Output Volume | 1,839,700 | 2,154,971 | 1,155,578 | 83,948 | 5,234,197 | |
| Revenue | 1,747,726 | 2,060,710 | 1,209,043 | 17,491 | 0 | 5,034,970 |
| Intersegment | ||||||
| revenue | 50,302 | 151,718 | 0 | 421,547 | ||
| EBIT | 42,939 | -65,758 | 9,767 | 86 | 2,607 | -10,359 |
| Interest and | ||||||
| similar income | 0 | 0 | 0 | 37,288 | 0 | 37,288 |
| Interest | ||||||
| expense and | ||||||
| similar charges | 0 | 0 | 0 | -44,036 | 0 | -44,036 |
| Profit before tax | 42,939 | -65,758 | 9,767 | -6,662 | 2,607 | -17,107 |
| Building Constr uc tion and Civil Engineering 1.1.–30.6.2009 T€ |
Transport a tion Infr a str uctures 1.1. –30.6.2009 T€ |
Special Divisi ons & Conces sions 1.1. –30.6.2009 T€ |
Miscellane ous 1.1.–30.6.2009 T€ |
Reconcilia tion to IFRS Financial Statements 1.1. –30.6.2009 T€ |
Total 1.1. –30.6.2009 T€ |
|
|---|---|---|---|---|---|---|
| Output Volume | 2,084,350 | 2,141,843 | 1,282,624 | 102,442 | 5,611,259 | |
| Revenue | 1,933,274 | 2,033,812 | 1,362,298 | 17,942 | 0 | 5,347,326 |
| Intersegment | ||||||
| revenue | 66,324 | 65,803 | 2,138 | 396,454 | ||
| EBIT | 39,614 | -57,429 | 4,826 | 89 | 1,772 | -11,128 |
| Interest and | ||||||
| similar income | 0 | 0 | 0 | 35,137 | 0 | 35,137 |
| Interest | ||||||
| expense and | ||||||
| similar charges | 0 | 0 | 0 | -51,703 | 0 | -51,703 |
| Profit before tax | 39,614 | -57,429 | 4,826 | -16,477 | 1,772 | -27,694 |
Income and expense in the internal reporting are shown essentially in accordance with IFRS. An exception is income taxes, including those applicable to deferred tax, which are not considered in the internal reporting.
The basis for the internal reporting is formed by all subsidiaries. In the IFRS financial statements, earnings from companies which were not fully consolidated respectively reported using the equity method are recognised in conformity with dividends, transfer of earnings and/or depreciation and amortisation. For this reason, the internal reporting does not conform 100 % with EBIT respectively net income in the consolidated financial statements in terms of the investment result.
Other minor differences result from the other consolidation entries.
Reconciliation of the internal reporting to IFRS Financial Statements is allocated as follows:
| 1.1. –30.6.2010 T€ |
1.1. –30.6.2009 T€ |
|
|---|---|---|
| Investment income | -1,312 | 3,607 |
| Other consolidations | 3,919 | -1,835 |
| Total | 2,607 | 1,772 |
Notes on related parties may be found in the 2009 consolidated financial statements. Since 31 December 2009, there have been no significant changes in this area. Arm`s-length business relations exist in transactions with related parties.
In July 2010, STRABAG acquired a 70 % majority interest in the Rimex Group. The acquisition of Rimex, a specialist in maintenance services for landscaping and exteriors, helps to expand the service spectrum in the infrastructural facility management segment. The transaction is still pending approval by the cartel authorities.
The present semi-annual financial statements for STRABAG SE were neither audited nor subjected to an audit review.
We confirm to the best of our knowledge that the condensed semi-annual financial statements as of 30 June 2010 give a true and fair view of the assets, liabilities, financial position and profit or loss of the group as required by the applicable accounting standards and that the group management report gives a true and fair view of the of important events that have occurred during the first six months of the financial year and their impact on the condensed semi-annual financial statements, of the principal risks and uncertainties for the remaining six months of the financial year and of the major related party transactions to be disclosed.
Villach, 31 August 2010
Dr. Hans Peter Haselsteiner Chairman of the Management Board Responsibilities for Central Staff Units and BRVZ 02 Central Divison
Ing. Fritz Oberlerchner Vice Chairman Technical Responsibilities for Transportation Infrastructures
DI Roland Jurecka Technical Responsibilities for Special Divisions & Concessions
Mag. Wolfgang Merkinger Commerical Responsibilities for Transportation Infrastructures
Dr. Thomas Birtel Commercial Responsibilities for Building Construction & Civil Engineering
Dr. Peter Krammer Technical Responsibilities for Building Construction & Civil Engineering
Mag. Hannes Truntschnig Commercial Responsibilities for Special Divisions & Concessions, Responsibilities for BMTI 01, TPA 04 and BLT 05 Central Divisions
| Interim report January-September 2010 | Mon, 29 November 2010 |
|---|---|
| Disclosure | 7:30 am |
| Investor and analyst conference call | 2:00 pm |
| Full year results 2010 | Thu, 28 April 2011 |
| Disclosure | 7:30 am |
| Press conference | 10:00 am |
| Investor and analyst conference | 2:00 pm |
| Interim report January-March 2011 | Tue, 31 May 2011 |
| Disclosure | 7:30 am |
| Investor and analyst conference call | 2:00 pm |
| Notice of Annual General Meeting | 13 May 2011 |
| Shareholding confirmation record date | 31 May 2011 |
| Annual General Meeting 2011 | Fri, 10 June 2011 |
| Start | 10:00 am |
| Ort: to be announced | |
| Ex-dividend date | Fri, 17 June 2010 |
| Payment date for dividend | Mon, 20 June 2010 |
| Semi-annual report 2011 | Wed, 31 August 2011 |
| Disclosure | 7:30 am |
| Investor and analyst conference call | 2:00 pm |
| Interim report January-September 2011 | Wed, 30 November 2011 |
| Disclosure | 7:30 am |
| Investor and analyst conference call | 2:00 pm |
| All times are CET/CEST |
Please find the roadshow schedule on the website www.strabag.com -> Investor Relations -> Financial Calendar.
| Maturity | Coupon | Volume | isin | Stock Exchange |
|---|---|---|---|---|
| 2006–2011 | 5,25 % | € 75 Mio. | AT0000A013U3 | Vienna |
| 2007–2012 | 5,75 % | € 75 Mio. | AT0000A05HY9 | Vienna |
| 2008–2013 | 5,75 % | € 75 Mio. | AT0000A09H96 | Vienna |
| 2010–2015 | 4,25 % | € 100 Mio. | AT0000A0DRJ9 | Vienna |
| Standard & Poors BBB - |
Outlook stable |
|---|---|
| Bloomberg: | STR AV |
|---|---|
| Reuters: | STRV.VI |
| Vienna Stock Exchange: | STR |
| ISIN : |
AT000000STR1 |
This semi-annual report is also available in German. In case of discrepancy the German version prevails.
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