Annual Report • Apr 25, 2017
Annual Report
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PORR has been pursuing this strategy for years. Whether it's concentrating on our fast-growing home markets of Austria, Germany, Switzerland, Poland and the Czech Republic or spinning off the real estate business in order to focus on construction – our core competency. This is also why we are presenting the 2016 business year in a more concise form, distilled down to the essentials. And that's why we are focusing on the values that combine to make up intelligent building.
EUR 4,804m Order backlog at record level
EUR 3,925m Production output higher than ever before
| in EUR m | 2016 | Change | 2015 | 2014 | 2013 |
|---|---|---|---|---|---|
| Operating data | |||||
| Production output | 3,925 | 11.4% | 3,524 | 3,475 | 3,162 |
| Foreign share | 47.6% | 0.7PP | 46.9% | 39.2% | 35.9% |
| Revenue | 3,417 | 8.8% | 3,140 | 3,009 | 2,630 |
| Order backlog | 4,804 | 4.9% | 4,579 | 4,058 | 4,398 |
| Order intake | 4,150 | 2.6% | 4,045 | 3,135 | 4,377 |
| Average staffing levels | 15,328 | 10.4% | 13,878 | 12,834 | 11,920 |
| EBITDA | 187.3 | 12.9% | 165.9 | 156.4 | 146.6 |
|---|---|---|---|---|---|
| EBIT | 100.1 | 14.0% | 87.8 | 81.7 | 80.9 |
| EBT | 91.1 | 12.3% | 81.1 | 66.1 | 59.6 |
| Profit | 66.8 | 9.5% | 61.0 | 48.6 | 52.5 |
| Earnings per share1 (in EUR) |
2.23 | 10.4% | 2.02 | 1.61 | 1.94 |
| Dividends per share (in EUR) | 1.102 | 10.0% | 1.003 | 0.75 | 0.50 |
| Total assets | 2,360 | 2.5% | 2,304 | 2,146 | 2,296 |
|---|---|---|---|---|---|
| Equity (incl. non-controlling interests) | 440.9 | 7.0% | 412.1 | 385.2 | 347.7 |
| Equity ratio | 18.7% | 0.8PP | 17.9% | 18.0% | 15.1% |
| Cash and cash equivalents | 476 | -26.4% | 647 | 466 | 333 |
| Net cash/net debt | 53 | -71.7% | 187 | 65 | -357 |
| Gearing ratio | -0.12 | -73.9% | -0.46 | -0.17 | 1.03 |
| Capital employed | 331 | 92.4% | 172 | 265 | 645 |
| Operating cash flow | 156 | 7.2% | 145 | 151 | 122 |
|---|---|---|---|---|---|
| Cash flow from operating activities | 56 | -71.0% | 193 | 154 | 182 |
| Cash flow from investing activities | -109 | - | -21 | 91 | 37 |
| Cash flow from financing activities | -116 | - | 9 | -112 | 5 |
| Investments | 169 | -1.2% | 171 | 224 | 74 |
| Depreciation/amortisation/impairment | 87 | 11.5% | 78 | 75 | 66 |
| Key data regarding shares | 2016 | 2015 | 2014 | 2013 | 2012 |
|---|---|---|---|---|---|
| Number of shares | 29,095,000 | 29,095,000 | 14,547,500 | 11,902,500 | 2,045,927 |
| Market capitalisation at year-end (in EUR m) | 1,132.4 | 813.2 | 648.4 | 297.2 | 152.4 |
1 adjusted to the number of shares in 2016 to facilitate comparisons
proposal to the AGM
3 dividend of EUR 1.00 plus special dividend of EUR 0.50
The figures have been rounded off using the compensated summation method. Absolute changes are calculated from the rounded values, relative changes (in percent) are derived from the non-rounded values.
■ BU 3 – International ■ BU 4 – Environmental Engineering, Healthcare & Services
■ Other
Financial Calendar/Contact
For sure, as a good strategy prioritises the selection of the right markets. We have been developing and successfully implementing the intelligent growth strategy since 2011. The decisive factor is that this strategy remains unchanged to this day and has thereby been fundamentally anchored in the company. The three-pronged strategic breakdown of our markets remains in place: we want to succeed as a leading construction company on our home markets of Austria, Germany, Switzerland, Poland and the Czech Republic. In our project markets we want to be a sought-after project partner with our export products and on our highly promising target markets we want to tap in to the future potential. One thing that is unchanged here is our principle of "earnings over output". After all, our goal is not to be one of the biggest, but one of the best. This strategy is secured through strict cost management and efficient risk management.
Digitalisation will completely transform the construction world in the coming years. That's why it's important to dynamically advance this issue in our company. That's the only way that technological excellence can remain at the core of our Group. This is why the "Roadmap 2020" is our most important instrument, at the same time as being the most ambitious project that PORR has ever undertaken. There is a sustainable change underway in our company towards digitalisation. A key element here is the "paperless construction site", which offers every project participant a highly efficient network. Real-time data is permanently available to our customers and us and forms the basis for making the right decisions on the construction site.
We need the best staff and their 100% commitment. In addition, we have to establish PORR as the best place to work. The new "working world" has already made us faster and more transparent. We are continuing to focus on staff training and development along with team building. The aspect of
diversity also plays a role here: diverse teams lead to different approaches and a broader set of solutions. We want to exploit this diversity and in this way to continue to strengthen our corporate culture. The goal is to support our hierarchies through fast, flexible project teams.
Without question. In 2016 our colleagues have once again delivered a sensational performance. We can look back on an exceptional year and the direction for 2017 is also correct. Strong motivation and the entrepreneurship of every individual are decisive if we want to be one of the best. We have already put in place other foundations in recent years: modern infrastructure and powerful IT. And yet the "Roadmap 2020" shows that we are still at the start line in many areas. Another important point here is our capital basis, which is currently stronger than ever before. Equity and liquidity mean security – with this foundation we can take a proactive approach to shaping the future.
We are optimistic about the future. What we need to do is continue to protect and expand what we have already achieved. We intend to write the next chapter in our success story in 2017. By 2020 we want to grow in all of our home markets and become one of the top companies in the industry. Numerous vocational aspects – such as the issue of health and safety – should contribute to making the company even more attractive and continuing to enhance efficiency and quality.
The PORR Executive Board team, from left: J. Johannes Wenkenbach, Karl-Heinz Strauss and Christian B. Maier
PORR continued with its successful course in 2016. In addition to increasing production output and achieving significant growth in EBT, our highly dedicated team managed to acquire numerous large-scale tenders in a challenging environment, thereby setting another new record in the order backlog. This is even more pleasing given the fact that consolidation on the construction market is continuing at an undiminished pace and that the pressure on margins is growing steadily.
We managed to increase our production output by 11.4% to EUR 3,925m, thereby meeting all of our targets. The growth drivers once again were our home markets – particularly Business Unit 1 with the markets Austria, Switzerland and the Czech Republic. Business Unit 2 – Germany also recorded strong growth, advancing its expansion strategy with an output increase of EUR 82m. Business Unit 3 – International matched the level of the previous year in terms of output, while Business Unit 4 – Environmental Engineering, Healthcare & Services achieved a sharp increase in both the order backlog and production output, expanding the PORR service portfolio in specialist and niche areas.
The order situation once again developed well. The cushion of orders continued to expand with growth of 4.9% in the order backlog and 2.9% in the order intake. The largest new tenders since the start of the year included the D4/R7 motorway section, the Bratislava Bypass in Bratislava, the Al Wakrah football stadium in Qatar and the office building Europaallee Zurich, lot F, for the Swiss Federal Railways. The largest new project in the third quarter was the first tunnelling order in Norway. PORR was awarded the tender to build a 5.5km-long section of County Road 17 in the Nordland Province by Nordland Fylkeskommune/Statens vegvesen.
The most important yardstick of a company's success is the earnings it generates. And these were significantly increased once again last year. EBT reached EUR 91.1m, a rise of 12.3%. The net cash position as of 31 December remained again clearly positive at EUR 53m.
The PORR strategy of intelligent growth paid off yet again in 2016. Our goal remains not to be among the biggest, but among the best, and to secure top market positions on all of our home markets. In our project markets we succeed through our selected export products and we are expanding on our target markets – the current focus is on Sweden and Denmark – with strong local partners. The strict strategic approach of "earnings over output" is the top priority here.
Additional milestones defined the year 2016, all of which combined to facilitate the continuous implementation of our strategic approach:
In the period under review we succeeded in entering the British market. With the construction of the Humber Pipeline we are realising the first tender on this attractive market as part of a joint venture for the National Grid.
An important step was taken towards a unified brand with the incorporation of TEERAG-ASDAG AG into PORR Bau GmbH. It had already been a wholly owned PORR subsidiary since 2012. Through the merger we are showing that together we are a strong team and that our full service provision encompasses all construction services with complete regional coverage.
Internally we are preparing for the future challenges that come with digitalisation and BIM (Building Information Modeling). With this in mind, in 2016 we accorded the highest priority to implementing our "Roadmap 2020". In the course of this project we are concentrating on process optimisation throughout the entire Group along with another milestone in digitalising construction sites. We want to realise the paperless construction site by 2020 using four work streams – E-Business, Integrated Construction Site Management, E-Support and Group Management Information.
At the same time, our diversity initiative Work&Life@PORR got fully underway in the year under review. We view the diversity of our organisation as a valuable resource and differences are seen as opportunities to achieve something new together. Under this initiative, we also intend to do justice to the increasing demands of family-oriented, flexible personnel policy. In the long term this should increase the appeal of our jobs and thereby sustainably establish PORR as a "best place to work". The interior redesign of all of the company's work spaces in the course of its new world of work was completed, enhancing both communication and transparency in the company.
There is a common goal behind all of the measures that we have implemented in the past year: we want to be among the best. This common goal is what drives PORR – across every country, every hierarchy and every culture. Customers and the high quality and performance demands are at the heart of everything we do.
We are confident that we are ideally placed to continue our success in the future. The strategic focus on our home markets has proven its value and facilitates earnings-driven growth at the same time as minimising risks. Our products have also proven their value – as confirmed by the steadily growing order backlog, the high quality standards and the enormous loyalty of our customers. But what's really proven its value is the motivation, the enthusiasm and the dedication of our employees. After all, our success comes from the hard work of our staff members, who fulfil customer requests and realise projects in a first-class manner despite a difficult environment. This is why we want to create a workplace that strengthens the performance and innovation of every individual and enhances his or her ability to make decisions. At the same time we are making further investments in the field of occupational health and safety – in the coming year we will once again focus on realising our committed objectives in this area.
Last but not least, our thanks go to our shareholders, who have stood by our side for many years and placed their trust in our approach. This trust certainly paid off in the year under review. With an increase in the share price of more than 40%, PORR can look back on one of the strongest performances on the Vienna stock market. Thank you very much for your trust!
Yours sincerely, the Executive Board
Karl-Heinz Strauss Chief Executive Officer
Christian B. Maier Executive Board Member
J. Johannes Wenkenbach Executive Board Member
8 | PORR Annual Report 2016
Residential and commercial building Berlin | Germany Gross floor area: 8,000m2 Construction period: 2014–2016
Prager Carrée Residential and office building Dresden | Germany Gross floor area: 44,005m2 Construction period: 2014–2016
Refurbishment and plastering Vienna | Austria Refurbished space: 12,000m2 Construction period: 2017
Tunnelling Carinthia–Styria | Austria Tunnel driven: 23km Construction period: 2013–2020
14 | PORR Annual Report 2016
Expanding the bridge over the River Chrudimka Czech Republic Construction period: 2013–2016
Specialist civil engineering Concrete construction Vienna | Austria Construction period: 2017
The home markets include Austria, Germany, Switzerland, Poland and the Czech Republic. PORR offers its entire range of services in these countries.
UK
CZ
PL
SE
AT CH
DE
NO
DK
RO
On selected international project markets the range is focused on services in tunnelling, rail construction and civil engineering. PORR currently operates in certain markets in the CEE/SEE region, and in Norway, the UK and Qatar.
In parallel, the Group is constantly evaluating attractive new target markets; at present these include Sweden and Denmark.
PORR is a leading construction company in Austria and is also one of the industry's key players in its other home markets of Germany, Switzerland, Poland and the Czech Republic. With its strategy of intelligent growth, involving a focus on the stable home markets with secure margins, PORR is positioned as a profitable company with strong, sustainable growth potential. It strives for a leading industry position on its home markets with its comprehensive product portfolio. Every other country is defined as a project market, in which large-scale infrastructure projects are primarily offered on a project-specific basis.
As a full service provider, PORR offers comprehensive services covering the entire value chain in construction – from building construction and civil engineering to energy construction, traffic construction and tunnelling through to environmental engineering. Here the company is committed to its core competency – construction – and strives to realise as many construction services as possible itself. Optimal solutions for clients are achieved through outstanding commitment, an entrepreneurial approach and the ongoing expansion of expertise.
The PORR business is divided into four business units that first and foremost reflect the market strategy. The segment with the highest output by a considerable margin is Business Unit 1 – Austria, Switzerland, Czech Republic. Around 54% of production output comes from this segment, which bundles
| Production output | +11.4% | EUR 3,925m |
|---|---|---|
| Order backlog | +4.9% | EUR 4,804m |
| Order intake | +2.6% | EUR 4,150m |
| Staff | +10.4% | 15,328 |
the permanent business and large-scale building construction projects. The strong commitment to Germany is recognised in the establishment of Business Unit 2 – Germany. Business Unit 3 – International contains the activities in Poland as well as other CEE/SEE countries, the UK, Qatar and Norway. Business Unit 4 covers the fields of Environmental Engineering, Healthcare and Services and is home to numerous PORR subsidiaries.
Streamlined, flexible project teams, cutting-edge infrastructure and transparent management are the PORR success factors. More than 15,300 staff in 19 countries provide the best service to customers with their dedication and commitment. The constructive cooperation across every sector, along with the extensive experience and skills in every business area, gives the company a decisive competitive advantage, with which the existing market potential can be consistently exploited. The working environment promotes innovation in the Group – a decisive factor for positive future growth.
The successful PORR corporate strategy remains in place unchanged. PORR is committed to a sustainable, long-term rise in production output and earnings through intelligent growth, whereby earnings always take priority over output.
The PORR Group remains committed to its core competency – construction. The Group embraces its role as a construction company and thereby strives to realise as many construction services as possible with in-house expertise. PORR has addressed the different needs of permanent versus project business through its organisational structure – this is divided into business units with the appropriate focal points. Austria, the Czech Republic and parts of Switzerland have been identified as permanent markets, while PORR pursues a project-driven approach on all other markets. The focus on "Concessions" underlines PORR's priority on cooperation with the public and private sector for the mutual benefit of all parties.
PORR distinguishes between home markets, project markets and target markets.
Home markets: In 2016 PORR generated 87.4% of its production output on the home markets. The PORR Group intends to secure its leading market position in Austria and to grow in niche areas, while pursuing a clear growth strategy in Germany. PORR has defined Germany as its most important foreign market and offers its entire portfolio of construction services here. Furthermore, PORR is positioned as a reliable partner to German industry, known for its trustworthiness and adherence to deadlines and costs. A selective expansion policy is planned for Switzerland, Poland and the Czech Republic, where PORR generally offers its full portfolio – the goal in the Czech Republic in particular is to provide complete coverage. The existing knowhow from the base in Poland should be used to cultivate the Scandinavian market.
Project-based and international markets: PORR operates selectively in Slovakia, Romania, Bulgaria, Norway, the UK and Qatar through its export products – primarily in tunnelling, rail construction and civil engineering (specialised and large-scale projects). Moreover, PORR realises projects for longstanding industrial clients on a follow-your-customer principle. Internationally, PORR is pursuing further expansion in the infrastructure sector.
The target markets at present are Sweden and Denmark. Here PORR is committed to cooperation with local partners, as these partnerships offer the opportunity of combining PORR's knowhow and technical expertise with specific knowledge of local markets and the skills and staff of local partners. PORR has already embraced this approach on the existing markets of Norway, the UK and Qatar.
PORR is committed to continuously improving performance in order to secure profitable growth and increase profitability. The basis for this involves the risk-based approach to new tender processes – "earnings over output"; proactive management of its cost base; comprehensive risk management extending from project calculation to realisation, with the goal of minimising the number and impact of loss-making construction projects; disciplined capital expenditure; a clear division of responsibilities within optimised, flexible structures; cutting-edge information management systems and the implementation of transparent leadership throughout the Group.
Digitalisation and BIM (Building Information Modeling) will completely transform the construction world in the coming years. That's why it's important to embed this issue deeply in our company. PORR founded the project "Roadmap 2020" in order to be prepared for the challenge of digitalisation. The Roadmap is the strategic implementation plan for digitalising PORR and is being realised through the cross-sector teams from the departments Corporate Development, IT & Business Processes, PORR Design & Engineering, PORR Equipment Services and, first and foremost, the operating staff from every unit. The Roadmap covers every business unit, regional unit and the corporate headquarters.
In order to be one of the best, a key factor is developing existing technology and initiating new research projects. Employees who are encouraged to launch and realise new projects are the true innovation drivers. PORR pursues an integrated approach to research, whereby every unit has access to centrally managed research resources such as laboratories.
We have a responsibility to pass on this Earth in the same state it was passed on to us. This is why it is obvious for PORR that we have to embrace responsibility to society and the environment, conserve resources, and design and build in a sustainable manner. We are setting standards with forward-looking building concepts (Green & Blue Buildings) and reducing dust and exhaust emissions, energy consumption and noise pollution with our innovative energy and equipment management.
Investment Highlights
2016 was a year characterised by major political changes. Brexit and the surprising election results in the USA affected the capital markets, as did the rejection of the Italian constitutional changes. This meant that the year 2016 on the stock exchanges was also highly volatile, although it did result in significant growth by year-end – the global index MSCI World was up by 5.3% against year-end 2015.
Price performance varied greatly across the individual international markets. In general there was a price rally following the surprising victory of Donald Trump, a rally that continued until the end of the year. The US index Dow Jones Industrial (DJI) grew by an impressive 13.4%. The most important US stock indices experienced weaker growth in percentage terms, the broad market index S&P 500 was up by 9.5% and the technology-based Nasdaq Composite Index grew by 7.5%. The leading Japanese index Nikkei 225 managed to surpass the level of year-end 2015 by 0.4% only thanks to its excellent performance in the final weeks of the year. Overall, the prices on the emerging markets exchanges were positive in 2016 – the MSCI Emerging Markets Index rose by 8.9%. Staring out from a relatively low baseline and buoyed by the favourable economic data, the exchanges in CEE were positive overall. Here the CECE Index, calculated in euros, rose by 5.8% overall thanks to an exceptionally good performance in December. The weaker growth prospects and a range of political uncertainties on the largest European economies stifled stock market performance in Europe. Following an exceptionally volatile year, the eurozone index EURO STOXX 50 rose by a modest 0.7%. The market performance of the individual European exchanges proved to be highly disparate.
In line with the international price performance, the Vienna Stock Exchange also had a negative start to the year 2016. The leading index ATX initially fell below 2,000 points and had lost 18.4% of its value against year-end 2015 by mid-February. Following a temporary recovery and a renewed slump resulting from the Brexit turbulence, a sharp upwards trend set in from the middle of the year, triggered by the fundamentally favourable corporate data and positive economic growth in the expanded home market of Central and Eastern Europe. At 2,618.43 points, the ATX was up by 9.2% against the end of the previous year at year-end 2016 and thereby classified as one of the best-performing stock exchanges in Europe.
■ PORR share ■ ATX – Austrian Traded Index ■ Trading volume PORR share
| 2016 | 2015 | ||
|---|---|---|---|
| Price at 30 December | EUR | 38.92 | 27.95 |
| Year high | EUR | 39.36 | 30.33 |
| Year low | EUR | 22.24 | 20.43 |
| Earnings per share1 | EUR | 2.23 | 2.02 |
| Cash flow per share | EUR | 2.94 | 6.65 |
| Dividends per share | EUR | 1.102 | 1.50 |
| Dividend yield, cash dividend | % | 2.83 | 3.58 |
| Dividend yield, cash and special dividend | % | - | 5.37 |
| Payout ratio on cash dividends3 | % | 49.73 | 49.38 |
| Book value per share | EUR | 13.58 | 14.16 |
| Market value/book value | 2.87 | 1.97 | |
| Market capitalisation at 30 December | EUR m | 1.132.4 | 813.2 |
| P/E ratio at 30 December | 17.49 | 13.83 | |
| Number of shares in issue at 30 December | No. | 29,095,000 | 29,095,000 |
1 based on the weighted average of shares in acc. with IAS 33 2
proposal to the Annual General Meeting 3 based on the number of shares at year-end, less treasury shares
Despite the pronounced volatility at the start of the year, the PORR share performed exceptionally well and closed the year with an impressive plus of 42.2% against year-end 2015. It thereby significantly outperformed both the Austrian and the European stock markets. Uncertainty was only reflected in the first quarter of 2016 – when the PORR share reached its year-low of EUR 22.24. Following a volatile period, it experienced an upsurge at the end of the first half, which led to a final rally with the year-high of the PORR share of EUR 39.36 achieved on 29 December 2016. This also meant that the market capitalisation reached a record level of EUR 1,132.4m as of 30 December 2016. In the reporting period the average daily trading volume was 30,227 shares.
The Executive Board and the Supervisory Board will propose to the Annual General Meeting an increase in dividends to EUR 1.10, thereby enabling shareholders to participate in the positive performance of the business in 2016.
An analysis of the shareholder structure gives an indication of the international distribution of the share capital. The largest percentage of shares in issue – 53.7% at year-end – was held by the syndicate consisting of the Strauss Group and the IGO-Ortner Group. An analysis conducted at the start of 2017 showed that the other shares have a broad international dispersion. The majority are held by institutional investors; in terms of region the focus is on Austria (38.3%), UK (13.7%), Germany (9.5%) and the USA (2.4%).
The Executive Board welcomes the broad broker coverage in order to continuously increase the visibility and appeal of the shares. At the start of 2017 PORR AG was covered by eight brokers: HSBC, ERSTE Group, Berenberg Bank, Hauck & Aufhäuser, HELVEA Baader Bank, Raiffeisen Centrobank, Kepler Chevreux and SRC Research. In their latest analyses, four analysts confirmed their Buy recommendations for the
| Institution | Analyst | Price target (in EUR) | Recommendation | Date |
|---|---|---|---|---|
| Kepler Chevreux | Stephan Trubrich | 35.00 | Hold | 6.4.2017 |
| Raiffeisen Centrobank | Markus Remis | 37.50 | Hold | 17.3.2017 |
| ERSTE Group | Daniel Lion | 36.90 | Reduce | 27.2.2017 |
| HSBC | Tobias Loskamp | 35.50 | Hold | 2.12.2016 |
| Hauck & Aufhäuser | Nils-Peter Gehrmann | 49.00 | Buy | 29.11.2016 |
| SRC Research | Stefan Scharff, Thilo Gorlt | 40.00 | Buy | 29.11.2016 |
| HELVEA Baader Bank | Jan-Hauke Jendrny | 34.00 | Buy | 29.11.2016 |
| Berenberg Bank | Olivia Peters | 37.00 | Buy | 12.10.2016 |
PORR share, three analysts classified the share as Hold, and ERSTE Group recommended Reduce.
The goal of investor relations is transparent, timely information that allows every stakeholder to make a true and faithful evaluation of the company. Together with the investor relations team, the management held numerous one-on-one talks with investors and analysts in Europe's largest financial centres throughout the year and took part in international investment conferences. In addition to these activities and in the interests of transparency, PORR gave regular and comprehensive reports on its business performance as part of the quarterly teleconferences for analysts, institutional investors and banks, as well as at the press conferences held twice a year.
Selective, targeted growth focused on earnings is the overriding principle of PORR's strategic business model. The economically stable home markets are the foundation on which we can build. This facilitated our good growth in operating output once again in the 2016 business year, as well as a high order intake and a record order backlog.
PORR views Corporate Governance as a key concept for responsible and transparent company management and the comprehensive auditing that accompanies this. The Executive Board and Supervisory Board work closely together in the interests of the company and its staff and continuously approve the strategic direction of the PORR Group. Constant dialogue with all relevant interest groups builds trust, also in corporate activities, and provides the basis for sustainable corporate growth in the future.
In December 2014 the PORR Group made a joint formal declaration by the Executive Board and the Supervisory Board committing itself to observance of the Austrian Code of Corporate Governance. A top priority for PORR AG is continuously implementing the standards of responsible and sustainable corporate management.
With reference to the deviations listed below in the Comply or Explain catalogue, PORR is committed to upholding the rules of the Austrian Code of Corporate Governance and sees this as a key precondition for responsible corporate management.
In accordance with Rule 62 of the Austrian Code of Corporate Governance, an external evaluation of adherence to the C Rules took place in 2015. BDO Austria GmbH Wirtschaftsprüfungs- und Steuerberatungsgesellschaft was hired to conduct the assessment and confirmed PORR's adherence to the C Rules in its report of 22 January 2016.
In accordance with Rule 36 of the Austrian Code of Corporate Governance, in 2016 the Supervisory Board once again conducted a self-evaluation in the form of a survey which primarily addressed the efficiency of the Supervisory Board, its organisation and its working practices. The findings were then evaluated and discussed in the Supervisory Board.
Rule 21: The provisions of the Compliance Decree are upheld by PORR, a listed company, and by the management of its direct subsidiaries. Owing to the high number of subsidiaries, as is common to the industry, the application cannot, however, be implemented across every subsidiary, as this would result in an unmanageable administrative burden across more than 100 fully consolidated companies. Therefore, after seeking comprehensive advice and incorporating all internal PORR staff units, the PORR Executive Board has decided to refrain from the implementation of the rule in every subsidiary.
Rules 27/30: A core issue for PORR is to ensure that Executive Board remuneration is objectively as measurable and transparent as possible. The Executive Board remuneration contains fixed and variable components which conform to the directives of Rule 27 to the greatest possible extent. The variable component is based on parameters including personal performance, personal dedication, PORR's economic situation and the respective sphere of responsibility, as well as non-financial parameters. The non-financial parameters primarily relate to implementing steps for the further development of PORR's sustainable profitability, which are, however, difficult to subject to objective measurement. The existing remuneration system has proven its value in practice. For these reasons, PORR does not see a need for new regulations.
Publishing every detail related to Executive Board remuneration, in particular the individual performance criteria of the variable component, will not be undertaken as, in PORR's opinion, this information will not be of any particular relevance to the capital markets for PORR shareholders and other parties.
Rule 49: The conclusion of contracts with members of the Supervisory Board in which such members are committed to the performance of a service outside of their activities on the Supervisory Board for the company or a subsidiary for a remuneration not of minor value is subject to approval by the Supervisory Board in line with the law. The company will, however, refrain from publishing these details due to related operational and business confidentiality issues. In any case, the notes to the consolidated financial statements show PORR disclosures on related party transactions, which contain the remuneration for services of members of the Supervisory Board outside of their activities on the Supervisory Board.
The latest version of the "Austrian Code of Corporate Governance" as laid out by the Austrian Working Group for Corporate Governance is available to the public on the homepage of the Austrian Working Group for Corporate Governance at www.corporate-governance.at. The website also includes an English translation of the Code and the interpretations developed by the working group. Furthermore, the latest Corporate Governance Code is available on the PORR homepage at porr-group.com/CG-Kodex.
The Executive Board consists of between two and six people appointed by the Supervisory Board. The Supervisory Board also has the right to appoint deputies to the Executive Board. The Executive Board currently consists of three members. The Supervisory Board can name a member of the Executive Board as Chairman and name one member as the Deputy Chairman.
The members of the Executive Board are appointed by the Supervisory Board for a maximum term of five years. The renewed appointment or an extension of this period (each for a maximum of five years) is permitted. The Supervisory Board can dismiss a member of the Executive Board before the end of his/her term in office if there is an important reason to do so, for example if there is a serious breach of duty or if the Annual General Meeting passes a vote of no confidence in the Executive Board member.
The Executive Board must conduct its business in line with the specifications of the Austrian Stock Corporation Act, the statutes, other laws and the rules of procedure. The Executive Board must report regularly to the Supervisory Board on its activities. The Supervisory Board rules on the division of responsibilities in the Executive Board in line with maintaining the overall responsibility of the Executive Board as a whole. The Executive Board requires Supervisory Board approval in order to undertake any business dealings specified in the relevant version of Section 95 Paragraph 5 Stock Corporation Act. In as far as legally permitted by Section 95 Paragraph 5 Stock Corporation Act, the Supervisory Board lays down limits on amounts up to which its approval is not required. Furthermore, the Supervisory Board is entitled to determine types of business which require its approval in addition to the legally stipulated (Section 95 Paragraph 5 Stock Corporation Act) cases. The Supervisory Board has issued appropriate rules of procedure for the Executive Board.
The Executive Board passes resolutions by simple majority of the votes cast. If an Executive Board member has been appointed as Chairman of the Executive Board, he has a casting vote in the case of a tie.
The Executive Board members must fulfil their responsibilities as their main employment and manage the company's business with the care of a proper and conscientious manager. They must manage the business in a way which satisfies the interests of the shareholders, the staff members and of the public. The Executive Board members may not take on any other employment without the approval of the Supervisory Board and may not take on an executive function in any companies which are not within the consolidated group.
The Group is represented by two Executive Board members, or by one Executive Board member with one authorised signatory. With legal restrictions, the Group can also be represented by two authorised signatories. Any Deputy Executive Board members are considered equal to regular Executive Board members with regard to rights of representation.
The table above shows the Executive Board members, their date of birth, their position, the date of their first appointment as well as the probable end of their time in office. In 2015 the following people sat on the Executive Board:
| Board member | Date of birth | Position and responsibilities | Member since Appointed until | |
|---|---|---|---|---|
| Karl-Heinz Strauss | 27.11.1960 | Chairman of the Executive Board and CEO | 13.9.2010 | 31.12.2019 |
| Christian B. Maier | 9.1.1966 | Executive Board member and CFO | 1.2.2012 | 31.1.2020 |
| J. Johannes Wenkenbach | 26.2.1957 | Executive Board member and COO | 1.2.2012 | 31.1.2020 |
Ing. Karl-Heinz Strauss, MBA, was born on 27 November 1960 in Klagenfurt, Austria. After graduating from the technical college of civil engineering, he completed international study programmes in Harvard, St. Gallen and Fontainebleau. He received his MBA from IMADEC. From 1980 to 1984 he worked as an independent entrepreneur in the civil engineering sector. In 1987 he started his career at Raiffeisen Zentralbank Österreich Aktiengesellschaft (RZB) in the corporate customers sector. From 1992 he worked in various positions as a Managing Director and member of the Supervisory Board in various RZB real estate companies and was head of Concorde Projektentwicklungsgesellschaft m.b.H., which he played a large role in founding and building up. In 1994 he was appointed to the Executive Board of Raiffeisen Wohnbaubank AG. In 2000 he took over the management of STRAUSS & PARTNER IMMOBILIEN GmbH.
Karl-Heinz Strauss has been Chairman of the Executive Board and CEO at PORR AG since 13 September 2010. On the Executive Board he is currently responsible for Risk Management/ Compliance, the Office of the Executive Board and Strategy, Business Unit 1 – A/CH/CZ, Business Unit 2 – Germany, Business Unit 4 – Environmental Engineering, Healthcare & Services, along with Internal Audit, Corporate Communications, Legal Affairs, Human Resources, Quality Management, PORR Design & Engineering and Corporate Development.
MMag. Christian B. Maier was born on 9 January 1966 in Judenburg, Austria. He graduated in mechanical engineering from HTBL Kapfenberg, a secondary industrial college, before going on to study geology and business administration in Vienna. His career led him to Creditanstalt and Bank Austria AG, where he was part of the team responsible for incorporating Creditanstalt into Bank Austria in 1997/1998. From 1998 to 2003 Christian B. Maier was an Executive Board member and CFO of the listed company UnternehmensInvest AG. In 2003 he moved to Constantia Industries as Executive Board member and CFO, where he played a key role in the company's success.
Christian B. Maier was appointed to the PORR AG Executive Board on 1 February 2012 and is the PORR CFO. On the Executive Board he is currently responsible for Risk Management/ Compliance, Financial management of the operating units, Group Management, Accounting, Controlling/ICS, Financial Management/Treasury/Insurance, Tax, IT & Business Processes.
Dipl.-Ing. J. Johannes Wenkenbach was born on 26 February 1957 in The Hague, Netherlands. He began his career at the Dutch construction company "Ballast Nedam Groep" after graduating from Delft University of Technology. During his career at various international construction companies, such as Strukton Groep NV and the Royal BAM Group subsidiary, Wayss & Freitag Ingenieurbau AG, he fulfilled various roles on Executive Boards and was able to extend his international expertise in the operating construction business. J. Johannes Wenkenbach has many years of experience in civil engineering, project planning, project management and in project financing. In terms of geography, his experience is focused on the Middle East, South East Asia and Germany.
J. Johannes Wenkenbach was appointed as a regular Executive Board member and COO of PORR AG on 1 February 2012. On the PORR Executive Board he is currently responsible for Risk Management/Compliance, Business Unit 2 – Germany and Business Unit 4 – International, as well as for Purchasing and PORR Equipment Services GmbH.
The members of the Group's Executive Board each fulfil the following additional functions on Supervisory Boards or comparable positions in (non-consolidated) domestic and foreign companies:
| Executive Board member | Company | Position |
|---|---|---|
| Karl-Heinz Strauss | DATAX HandelsgmbH | Supervisory Board member |
| KAPSCH-Group Beteiligungs GmbH | Supervisory Board member | |
| Kapsch Aktiengesellschaft |
Supervisory Board member | |
| UBM Development AG1 | Supervisory Board Chair | |
| Christian B. Maier | Rath Aktiengesellschaft1 | Supervisory Board member |
| Raiffeisenbank Knittelfeld eGen | Supervisory Board member | |
| UBM Development AG1 | Supervisory Board member | |
The Executive Board members of the parent company also realise management and supervisory functions in companies included in the consolidated financial statements.
| Executive Board member | Company | Position | |
|---|---|---|---|
| Karl-Heinz Strauss | PORR AG1 | Chairman of the Executive Board | |
| PORR Bau GmbH | Chairman of the Supervisory Board | ||
| PORR Bauindustrie GmbH | Managing Director | ||
| PORR Construction Holding GmbH | Managing Director | ||
| Porr Deutschland GmbH |
Chairman of the Supervisory Board | ||
| PORR SUISSE AG | President of the Administrative Board | ||
| TEERAG-ASDAG Aktiengesellschaft | Chairman of the Supervisory Board | ||
| Christian B. Maier | PORR AG1 | Executive Board Member | |
| PORR Bau GmbH | Deputy Chairman of the Supervisory Board | ||
| PORR Bauindustrie GmbH | Managing Director | ||
| PORR Construction Holding GmbH | Managing Director | ||
| PORR Financial Services GmbH | Managing Director | ||
| TEERAG-ASDAG Aktiengesellschaft | Deputy Chairman of the Supervisory Board | ||
| J. Johannes Wenkenbach | PORR AG1 | Executive Board member | |
| PORR Bau GmbH | Supervisory Board member | ||
| Porr Deutschland GmbH |
Supervisory Board member | ||
| PORR Polska Construction Spólka Akcyjna | Supervisory Board member | ||
| PORR Polska Infrastructure Spólka Akcyjna | Chairman of the Supervisory Board | ||
| TEERAG-ASDAG Aktiengesellschaft | Supervisory Board member |
1 listed on the stock exchange
The Supervisory Board is composed of at least three and not more than twelve members appointed by the Annual General Meeting (AGM). In line with Section 110 Paragraph 1 of the Labour Constitutional Act, certain members are also appointed by the Works Council. As of 31 December 2016 the Group's Supervisory Board consisted of nine members appointed by the AGM and four further members appointed by the Works Council. As long as the AGM has not specified a shorter term when appointing one or all members, the Supervisory Board members are appointed until the end of the Annual General Meeting which rules on the approval of the Supervisory Board for the fourth business year after the initial election; the business year in which the Supervisory Board member was appointed does not count towards this four-year term. The reappointment of a Supervisory Board member – also an outgoing member – is permitted.
The appointment of a member of the Supervisory Board can be rescinded before the end of his/her time in office by AGM resolution. The resolution requires a simple majority of votes cast. Every member of the Supervisory Board can resign from his/her post following a 21-day notice period upon a written declaration to the Chairman of the Supervisory Board, without stating an important reason. The Chairman of the Supervisory Board, or his/her Deputy in the case of his/her resignation, can decide to shorten the notice period.
Should certain members leave the Board before the end of their term in office, a vote to replace them is not required until the next AGM. However, a replacement vote is required at an extraordinary general meeting, to be held within six weeks, if the number of Supervisory Board members falls below three. Members appointed as a replacement only serve for the remainder of the term which the previous member would have served, unless otherwise determined by the AGM at the time of the appointment.
A replacement member can be appointed at the same time as the appointment of a Supervisory Board member, in which case the replacement member would take up his/her seat on the Supervisory Board effective immediately if the Supervisory Board member steps down before the end of his/her time in office. If multiple replacement members are appointed, the order in which they are to replace a Supervisory Board member who steps down must be determined. A replacement member can also be appointed as a replacement for multiple Supervisory Board members, so that he/ she takes a seat on the Supervisory Board if any one of these members steps down prematurely.
The term of office of a replacement member who joins the Supervisory Board is terminated as soon as a successor to the former Supervisory Board member has been appointed, or at the latest when the remainder of the former Supervisory Board member's time in office comes to an end. Should the term of office of a replacement member who joins the Supervisory Board be terminated because a successor to the former Supervisory Board member has been appointed, the replacement member still serves as a replacement for the additional Supervisory Board members he/she has been chosen to represent.
In a meeting held once a year following the AGM, which does not require any special invitation, the Supervisory Board elects a Chairman and one or more Deputies from among its members. If two Deputies are appointed, then the order in which they are to take up the post shall be determined. The term in office runs until the end of the next AGM. If the Chairman or one of the elected Deputies withdraws from his/her post, the Supervisory Board must appoint a replacement for the rest of the term in office, whereby re-election is permitted.
Should no candidate win a simple majority vote, then a runoff election is held between the people who have received the most votes. Should the runoff election result in a tie, lots shall be drawn to decide the election. If the Chairman or one of the elected Deputies withdraws from his/her post, the Supervisory Board must immediately hold a new election to appoint a successor. The Chairman and the Deputies can resign their post at any time following a 14-day notice period upon a written declaration to the Supervisory Board; this does not require them to step down from the Supervisory Board at the same time.
Every Deputy Chairman has the same rights and responsibilities as the Chairman when he/she is standing in for him. This also applies to holding a casting vote in elections and passing resolutions. Should the Chairman and his deputies be prevented from realising their obligations, this obligation passes to the oldest Supervisory Board member (in terms of age) for the duration of the incapacity. Declarations of intent by the Supervisory Board and its committees shall be submitted to the Chairman of the Supervisory Board, or to his Deputy should he be incapacitated.
In line with its legal responsibilities and those arising from the statutes, the Supervisory Board produces rules of procedure. Resolutions of the Supervisory Board on its rules of procedure require a simple majority of the members appointed by the AGM in addition to the general requirements on resolutions.
The Supervisory Board can form committees made up of its members. Their responsibilities and powers as well as their general rules of procedure are specified by the Supervisory Board. The committees can also take on the authority to make decisions. The committees can be convened long-term or for individual tasks. The Employee Representatives on the Supervisory Board have the right to nominate members with voting rights to the committees in the ratio specified by Section 110 Paragraph 1 of the Labour Constitutional Act. This does not apply to meetings and votes which relate to relationships between the company and the Executive Board members, except resolutions on the appointment or revocation of an Executive Board member as well as resolutions granting options in company shares.
The Supervisory Board passes resolutions in its regular meetings. The Supervisory Board shall hold meetings as often as the interests of the company require, at least once per quarter. In 2016 the Supervisory Board held five regular Supervisory Board meetings. The Chairman determines the form of the meeting, the way in which resolutions may be passed outside of meetings and the method of counting votes. The Executive Board members attend all meetings of the Supervisory Board and its committees, as long as the Chairman of the meeting does not determine otherwise.
A Supervisory Board member can nominate another member in writing to represent him/her at a meeting. A member represented in this way shall not be included in the count determining if the meeting is quorate. The right to chair the meeting cannot be deputised. A Supervisory Board member, who is unable to attend a meeting of the Supervisory Board or its committees, is entitled to submit his/her written vote on individual agenda items via another member of the respective Board or committee.
The Supervisory Board is quorate when all members of the Supervisory Board have been properly invited to attend and when at least three Supervisory Board members, including one Chairman or Deputy, participates in the resolution. A topic of negotiation which is not on the agenda can only be ruled on by the Supervisory Board if all Supervisory Board members are present or represented and no member participating in the resolution objects.
Resolutions are passed by simple majority of votes cast. Abstentions are not counted as votes cast. In the case of a tie – also in elections – the Chairman has the casting vote. Every Deputy Chairman acting in the capacity of the Chairman's representative has a casting vote in resolutions and elections; this also applies to committee Chairmen.
The Chairman can also decide that the votes of individual members not in attendance can be cast in written, oral or comparable form (especially fax, email) for resolutions of the Supervisory Board or its committees. Resolutions can also be passed by votes cast in written form (fax, email), without the Supervisory Board coming together for a meeting in cases where the Chairman (or his Deputy if he is incapacitated) so rules; this is conditional on no Supervisory Board member explicitly objecting to this procedure in written form (fax, email) within a period of three working days. Representation by another Supervisory Board member is not permitted when votes are cast in written form. A resolution is considered binding when all Supervisory Board members have been asked for their vote in written form (fax, email) and at least three members, including the Chairman or Deputy, have submitted their votes within a period of seven working days.
Resolutions can also be passed by votes cast in the form of a teleconference, internet conference or video conference, without the Supervisory Board coming together in a meeting in cases where the Chairman (or his Deputy if he is incapacitated) so rules; this is conditional on no Supervisory Board member explicitly objecting to this procedure in written form (fax, email) within a period of three working days. Representation by another Supervisory Board member is not permitted. A resolution is considered binding when all Supervisory Board members have been invited to the conference in written form (fax, email) and at least three members, including the Chairman or Deputy, have submitted their votes at the conference.
Under the conditions defined in the statutes, meetings of the Supervisory Board can also be held using electronic communication, without the physical attendance of Supervisory Board members at a meeting in a single venue. The Chairman can make use of the option to hold a video conference instead of a physical meeting of all members at one location, in particular when the urgency of convening a meeting, the frequency of meetings or the absence of Supervisory Board members from the location suggest this would be in the interests of the company.
The following table shows the current members of the Supervisory Board in 2016, their date of birth, their position, the date of their first appointment to the Supervisory Board as well as the probable end of their time in office:
| Name | Date of birth | Function | Member since Appointed until | |
|---|---|---|---|---|
| Karl Pistotnik5 | 12.8.1944 | Chairman of the Supervisory Board 2 | 6.12.2012 | AGM 20191 |
| Klaus Ortner | 26.6.1944 | Deputy Chairman2 | 30.7.1998 | AGM 20191 |
| Michael Diederich5, 6, 7 | 28.8.1965 | Member | 22.5.2014 | AGM 20191 |
| Robert Grüneis5, 6 | 22.5.1968 | Member | 22.5.2014 | AGM 20191 |
| Walter Knirsch5, 6 | 8.2.1945 | Member | 6.12.2012 | AGM 20191 |
| Iris Ortner | 31.8.1974 | Member | 27.5.2010 | AGM 20191 |
| Bernhard Vanas5 | 10.7.1954 | Member | 6.12.2012 | AGM 20191 |
| Susanne Weiss 5, 6 | 15.4.1961 | Member | 6.12.2012 | AGM 20191 |
| Thomas Winischhofer, LL.M., MBA | 26.5.1970 | Member | 29.5.2008 | AGM 20191 |
| Peter Grandits9 | 9.12.1959 | Member | 13.9.2001 | n/a |
| Walter Huber9 | 7.6.1955 | Member | 1.7.2010 | 5.12.20163, 8 |
| Walter Jenny9 | 12.12.1954 | Member | 1.9.2005 | n/a4 |
| Michael Kaincz9 | 31.1.1960 | Member | 9.6.2011 | n/a |
| Michael Tomitz9 | 4.1.1961 | Member | 9.6.2011 | n/a |
1 The Supervisory Board members are appointed by the Annual General Meeting until the end of Annual General Meeting which will rule on the fiscal year 2018
2 Since 6 December 2012 Karl Pistotnik has been the Chairman of the Supervisory Board and Klaus Ortner has been the Deputy Chairman.
3 Walter Huber was previously a member of the Supervisory Board from 13 September 2001 to 20 May 2009.
4 Walter Jenny was not a member of the Supervisory Board from 6 November 2012 to 6 December 2012.
5 has declared him/herself independent in line with C Rule 53 of the Austrian Code of Corporate Governance
6 is not a shareholder with an interest of more than 10% or representing the interests of any such investor in line with C Rule 54 of the Austrian Code of Corporate Governance.
7 has not participated in person in more than half of the meetings of the Supervisory Board in line with C Rule 58 of the Austrian Code of Corporate Governance
8 date of leaving the Board
9 appointed by the Works Council
The members of the Group's Supervisory Board each fulfil the following additional functions on Supervisory Boards or comparable positions in (non-consolidated) domestic and foreign companies:
| Name | Company | Function | |
|---|---|---|---|
| Karl Pistotnik | SDN Beteiligungs GmbH | Chairman of the Supervisory Board | |
| Stumpf AG | Supervisory Board member | ||
| Klaus Ortner | ELIN GmbH | Chairman of the Supervisory Board | |
| UBM Development AG1 | Supervisory Board member | ||
| Robert Grüneis | Philips Austria GmbH | Supervisory Board member | |
| Energie Burgenland AG | Supervisory Board member | ||
| Michael Diederich | Bayerische Börse AG | Deputy Chairman of the Supervisory Board | |
| ESMT – European School of Management & Technology GmbH |
Supervisory Board member | ||
| Walter Knirsch | Finanzmarktaufsicht (FMA) 2 | Supervisory Board member | |
| Iris Ortner | TKT Engineering Sp. z o.o. | Deputy Chair of the Supervisory Board | |
| ELIN GmbH | Deputy Chair of the Supervisory Board | ||
| UBM Development AG1 | Deputy Chair of the Supervisory Board | ||
| Bernhard Vanas | SDN Beteiligungs GmbH | Supervisory Board member | |
| UBM Development AG1 | Supervisory Board member | ||
| Susanne Weiss | Wacker Chemie AG1 | Supervisory Board member | |
| ROFA AG | Chair of the Supervisory Board | ||
| Schattdecor AG | Supervisory Board member | ||
| UBM Development AG1 | Supervisory Board member | ||
| Thomas Winischhofer | TKT Engineering Sp. z o.o. | Supervisory Board member | |
1 listed on the stock exchange
co-opted
C Rule 53 of the Austrian Code of Corporate Governance specifies that the majority of the members of the Supervisory Board elected by the Annual General Meeting or appointed by shareholders in line with the statutes shall be independent of the company and its Executive Board. A Supervisory Board member shall be considered independent if he/she does not have any business or personal relationship with the company or its Executive Board which constitutes a material conflict of interests and could therefore influence the behaviour of the member. The following criteria serve to define the independence of a Supervisory Board member:
In accordance with these criteria, the Supervisory Board members Michael Diederich, Robert Grüneis, Walter Knirsch, Karl Pistotnik, Bernhard Vanas and Susanne Weiss have declared themselves to be independent. The Supervisory Board members Iris Ortner, Klaus Ortner and Thomas Winischhofer have not submitted a declaration.
C Rule 54 of the Austrian Code of Corporate Governance specifies that companies in which free float accounts for more than 20% of shares must have at least one independent member as defined by C Rule 53 on the Supervisory Board, as elected by the general meeting or appointed under the statutes, who does not hold more than 10% of shares or represent the interests of such a shareholder. The Supervisory Board members Michael Diederich, Robert Grüneis, Walter Knirsch and Susanne Weiss have declared that they meet these criteria.
In the business year 2016 the following committees were formed by the Supervisory Board in order to support and deal efficiently with complex issues:
The audit committee was composed of the following Supervisory Board members in 2016:
The responsibilities of the audit committee include (i) monitoring the financial reporting process as well as issuing recommendations or suggestions to ensure its reliability; (ii) monitoring the effectiveness of the internal control system, the internal audit system, where appropriate, and the Group's risk management system; (iii) monitoring the auditing of the individual and consolidated financial statements under consideration of the findings and conclusions in the reports published by the Regulatory Authority on Auditors in accordance with Section 4 Paragraph 2 Line 12 of the Supervision of Auditors Act (APAG); (iv) assessing and monitoring the independence of the chartered auditors, in particular as regards any additional services they may have provided to the company (Article 5 of EU Regulation Nr. 537/2014 and Section 271a Paragraph 6 of the Austrian Commercial Code apply); (v) producing the report on the results of the audit to the Supervisory Board and a statement on how the audit has contributed to the reliability of financial reporting and the role of the audit committee; (vi) assessing the annual financial statements and preparing for their approval, assessing the proposal for appropriation of profits, the Management Report and the Corporate Governance Report, as well as reporting on the audit findings to the Supervisory Board; (vii) assessing the consolidated financial statements and the Group Management Report, the consolidated Corporate Governance Report, as well as reporting back to the Supervisory Board of the parent on the audit findings; and (viii) preparing the Supervisory Board's recommendation on carrying out the process for selecting the auditor under consideration of the appropriateness of his/her fee and preparing the Supervisory Board's recommendation on the choice of auditor. Article 16 of EU Regulation Nr. 537/2014 applies. On 20 April 2016 a meeting of the audit committee was held in the presence of the auditors for the purpose of auditing and preparing the approval of the 2015 consolidated financial statements. At the same meeting, the Supervisory Board selected the auditor for the individual and consolidated financial statements as at 31 December 2016. In a meeting on 21 September 2016 the audit committee dealt with the reform to the EU Audit Act, monitoring the financial reporting process, evaluating the effectiveness of the internal control system, the internal audit system and risk management within the Group. An additional meeting of the audit committee was held on 28 November 2016 in accordance with Rule 81a of the Austrian Code of Corporate Governance, in which the monitoring of the audit was discussed. This meeting also gave the audit committee and the (Group) auditor the chance to communicate without the presence of the Executive Board. In a meeting on 12 December 2016, the audit committee addressed the report of the (Group) auditor on the functioning of risk management in accordance with Rule 83 of the Austrian Code of Corporate Governance and the internal audit report, including discussions on the audit plan and the material findings, in accordance with Rule 18 of the Austrian Code of Corporate Governance.
The nomination committee was composed of the following Supervisory Board members in 2016:
The nomination committee has the following responsibilities: (i) preparing Executive Board appointments including successor planning: before appointing Executive Board members, the nomination committee shall define the profile for the Executive Board member taking into account the corporate strategy and state of the company and prepare the decision by the full Supervisory Board on the basis of a specific appointment process and taking into account the successor planning; (ii) proposing possible candidates to the Supervisory Board: the nomination committee is involved with planning the allocation of Supervisory Board mandates. The nomination committee shall submit appointment proposals to the entire Supervisory Board, which shall be proposed on the basis of a resolution of the entire Supervisory Board to the General Meeting for their approval. When proposing appointments, attention must be paid to the qualifications and personal skills of the Supervisory Board members, as well as the balanced composition of the Supervisory Board in light of the structure and business area of PORR AG. Furthermore, the aspects of diversity in the Supervisory Board with regard to representation of gender, age and internationality shall be considered appropriately. Attention shall be paid to the fact that no-one shall be put forward as a member of the Supervisory Board who has been convicted of a crime which calls his/her professional reliability into question.
The nomination committee did not meet in 2016.
The remuneration committee consisted of the following members in 2016:
The remuneration committee has the following responsibilities: (i) handling matters related to remuneration of the Executive Board members and the content of the employment agreements with Executive Board members, particularly specifying the underlying principles of Executive Board member remuneration and determining the criteria for variable remuneration components in line with Rules 27, 27a and 28 of the Austrian Code of Corporate Governance; (ii) evaluating the remuneration policy for Executive Board members at regular intervals; (iii) approving additional duties of Executive Board members.
A meeting of the remuneration committee was held on 20 April 2016 which dealt with determining the 2015 annual bonus for the members of the Executive Board of PORR AG.
Female managers at various levels of the organisation, division heads, female authorised signatories and two female members of the Supervisory Board are active in the PORR Group.
Positive action for women at every level of the hierarchy poses a particular challenge for the PORR AG and its consolidated companies. The fact that very few women choose a technical career has led to a traditionally low ratio of women in the construction industry. It is also seen as the main barrier to the future appointment of female managers in top positions. The primary goal is therefore to encourage girls and women to take up technical professions and those in the construction industry. Targeted employer branding measures such as participating in the "Vienna Daughters' Day" and "Apprentice Day", as well as the "PORR@HAK" road show, give an insight into apprenticeships, technical and commercial vocations and graduate positions, thereby making the male-dominated construction sector more attractive to women.
With regard to recruiting managers, PORR's focus lies in finding appropriate female candidates. The first signs of this strategy's success can already be seen in the continuous increase in the percentage of women at management level. Another measure is the increased focus on female students at graduate jobs fairs in order to highlight the attractive opportunities in the construction industry. The increase in the share of women in operational units should lead to a reservoir of qualified women which can also supply the upper management levels in the medium term.
In addition to the employer branding activities to attract new female employees, it is essential to give existing female staff the chance to forge their careers within the PORR Group itself. One priority here is ensuring greater compatibility between professional and private life. This is why the PORR Group started the PORR Diversity Initiative in 2015. The catalogue of measures includes more flexible working-hours models, a proactive management concept for parental leave and an enhanced range of offers for family and nursing care support.
A further focal point is the company's women's network "Women@PORR". The goal is promoting a stronger network and more intensive exchange of experiences among female colleagues. This is why best-practice examples and role models are regularly presented, reporting on their professional life and giving tips. Furthermore, since autumn 2016 there has been special training for women, dedicated in particular to developing skills, focusing on strengthening and promoting personal initiative.
Another measure for female staff is the pilot project "Mentoring for women", introduced in December 2016.
The total remuneration of the Executive Board consists of a fixed salary, a variable bonus and other compensation.
The maximum value of the variable performance bonus for the Chairman of the Executive Board amounts to EUR 700,000.00 gross per year. The maximum value of the bonus for the Executive Board members Christian B. Maier and J. Johannes Wenkenbach amounts to EUR 500,000.00 gross per year. The precondition for granting this bonus for all members is fulfilling the quantitative and qualitative elements of a set of criteria which are determined by the Supervisory Board's staff committee.
An annual contribution of around EUR 40,000.00 is paid into a pension scheme for Executive Board members Christian B. Maier and J. Johannes Wenkenbach.
D&O liability insurance covers the members of the Executive Board, the cost of which is borne by the company.
The remuneration corresponds to market rates. Furthermore, there is a bonus model for the entire Group that specifies agreed targets for management staff, as well as a bonus pool for other employees.
The targets agreed for management staff are based on consolidated earnings, divisional earnings and individual targets.
The additional bonus pool applies to all staff members who do not have agreed targets. The amount of the bonus pool is determined annually by the Executive Board.
In the 2016 business year there were no share option programmes in the company.
In addition to reimbursement of expenses and an attendance fee for every meeting, all Supervisory Board members receive an annual payment for their services. The amount of the attendance fee and the annual payment are determined by a resolution by the Annual General Meeting (AGM). The AGM can also rule on a total amount of remuneration for the Supervisory Board and leave the Chairman of the Supervisory Board to decide how it is distributed. If the Supervisory Board mandate begins or ends during a business year, the respective Supervisory Board member is paid pro-rata compensation for the duration of his/her time on the Supervisory Board.
If members of the Supervisory Board take on special activities in this function and in the interests of the company, extra compensation for this can be approved by AGM resolution.
In the interests of the company, Supervisory Board members are covered by an appropriate level of D&O liability insurance, the costs of which are borne by the company.
The resolution of the AGM on 11 July 2013 determined the following remuneration for members of the Supervisory Board: the resolution states that the Chairman of the Super-
| in EUR | Salary | Variable bonus | Pension scheme |
|---|---|---|---|
| Karl-Heinz Strauss | 750,000.00 | 700,000.00 | - |
| Christian B. Maier | 500,000.00 | 500,000.00 | 40,000.00 |
| J. Johannes Wenkenbach | 500,000.00 | 500,000.00 | 40,000.00 |
| in EUR | Fixed remuneration1 | Attendance fee for meetings2 |
|---|---|---|
| Michael Diederich | 15,000.00 | 2,000.00 |
| Robert Grüneis | 15,000.00 | 4,000.00 |
| Walter Knirsch | 15,000.00 | 4,000.00 |
| Iris Ortner | 15,000.00 | 5,000.00 |
| Klaus Ortner | 20,000.00 | 6,000.00 |
| Karl Pistotnik | 25,000.00 | 5,000.00 |
| Bernhard Vanas | 15,000.00 | 5,000.00 |
| Susanne Weiss | 15,000.00 | 5,000.00 |
| Thomas Winischhofer | 15,000.00 | 5,000.00 |
Payout four weeks after the AGM
2 The attendance fee for meetings is EUR 1,000.00 per session
visory Board shall receive fixed remuneration of EUR 25,000 per year, the Deputy Chairman of the Supervisory Board shall receive fixed remuneration of EUR 20,000 per year and the other members shall receive fixed remuneration of EUR 15,000 per year. The attendance fee for meetings was set at EUR 1,000 per meeting of the Supervisory Board or one of its committees. Members of the Supervisory Board who do not reside in Austria receive an additional reimbursement of tax at source settled by the company. The fixed remuneration is due in arrears once a year, within four weeks of the AGM. The attendance fee for meetings is due within the four weeks following the respective Supervisory Board meeting.
Furthermore, the Supervisory Board members appointed by the AGM have no claim whatsoever to pension or redundancy payments or any similar compensation upon conclusion of their mandates.
The Corporate Governance Report and the consolidated Corporate Governance Report have been brought together in a single report. This Corporate Governance Report is published as part of the Annual Report and is available on the Group's website at porr-group.com.
In 2016 payments in a minor amount were made to government entities by Group subsidiaries operating in the extractive industries. As a result of the inclusion in the Group tax group and the profit-and-loss transfer agreements concluded, no corporation tax was paid. Reference is made to the application of the simplified option pursuant to Section 243c Paragraph 5 of the Commercial Code.
The Supervisory Board considers PORR to have continued seamlessly on in 2016 from the successful business performance of the previous years. Employees and managers successfully implemented the intelligent growth strategy of the Executive Board and made significant achievements in production output, earnings, and with regard to the order backlog. The Supervisory Board particularly welcomes the improvement in earnings and the developments in equity.
In close cooperation with the Supervisory Board, the Executive Board undertook targeted strengthening of the Group's core competencies through M&A activities. The German specialist civil engineering company Franki Grundbau GmbH was acquired at the turn of the year and further purchases were under evaluation. Some of these transactions, such as the purchase of the medium-sized German traffic construction specialists Heijmans Oevermann GmbH, were concluded after the end of the reporting period 2016.
TEERAG-ASDAG AG, already a wholly owned subsidiary of PORR AG since 2012, merged with PORR Bau GmbH as of 3 September 2016 and now operates as PORR Bau GmbH, with the supplement "Civil engineering". The Supervisory Board would like to highlight the exceptionally professional way the integration was carried out, as this was a particular challenge for everyone involved due to the size of the company.
The Supervisory Board has been kept constantly informed of the details related to significant developments in M&A transactions and the merger of TEERAG-ASDAG AG and PORR Bau GmbH and thanks the Executive Board Members J. Johannes Wenkenbach (COO) and Christian B. Maier (CFO), under the leadership of CEO Karl-Heinz Strauss, for their successful and productive cooperation.
The Supervisory Board confirms that the combination of the proven Executive Board team, the exceptional work of the staff and the highly promising order intake leads to the expectation of continued positive growth in the 2017 business year.
The Supervisory Board has actively encouraged and supported the company's development in keeping with the responsibilities assigned to it. In line with Section 81 of the Stock Corporation Act, the Executive Board has kept the Supervisory Board constantly informed of full details of the development of the business and financial position of the Group and its shareholdings, of staff and planning matters and of investment and acquisition projects through spoken and written reports, and the latter has discussed strategy, business development and risk management with the Supervisory Board. In a total of five meetings, the Supervisory Board passed the relevant resolutions that were required. The necessary approval for the transactions for which consent is required under Section 95 Paragraph 5 of the Stock Corporation Act and pursuant to the rules of procedure for the Executive Board was obtained; in urgent cases, written voting was used for authorisation of this nature. The average level of attendance at Supervisory Board meetings on the part of the members that had been elected by the AGM was 84%.
In 2016 the Supervisory Board formed the following committees made up of its members in order to support and deal efficiently with complex issues:
On 20 April 2016 a meeting of the audit committee was held in the presence of the auditors for the purpose of auditing and preparing the approval of the 2015 consolidated financial statements. At the same meeting, the Supervisory Board selected the auditor for the individual and consolidated financial statements as at 31 December 2016. In a meeting on 21 September 2016 the audit committee dealt with the EU Audit Reform, monitoring the financial reporting process, evaluating the effectiveness of the internal control system, the internal audit system and risk management within the Group. Another meeting of the audit committee was held on 28 November 2016 in accordance with Rule 81a of the Austrian Code of Corporate Governance, in which the monitoring of the audit was discussed. This meeting also gave the audit committee and the (Group) auditor the chance to communicate without the presence of the Executive Board. In a meeting on 12 December 2016, the audit committee addressed the report of the (Group) auditor on the functioning of risk management in accordance with Rule 83 of the Austrian Code of Corporate Governance and the internal audit report, including discussions on the audit plan and the material findings, in accordance with Rule 18 of the Austrian Code of Corporate Governance.
The nomination committee did not meet in 2016.
A meeting of the remuneration committee was held on 20 April 2016 which dealt with determining the 2015 annual bonus for the members of the Executive Board of PORR AG.
The annual financial statements of PORR AG as per 31 December 2016, including the notes to the consolidated financial statements and the management report, and the consolidated financial statements that had been prepared as of 31 December 2016 in accordance with International Financial Reporting Standards (IFRS, as applied in the EU) and the Group management report, were audited by BDO Austria GmbH Wirtschaftsprüfungs- und Steuerberatungsgesellschaft, Vienna. The audit, based on the bookkeeping and documentation of the company as well as the explanations and documentation provided by the Executive Board, revealed that the bookkeeping records and the annual financial statements and consolidated accounts complied with the legal requirements and provided no cause for complaint. The management report and Group management report accord with the annual and consolidated financial statements. The aforementioned audit company has therefore issued an unqualified audit opinion for the annual and consolidated financial statements.
The audit report prepared by the auditor, the Corporate Governance report, the report on payments to government entities and the Executive Board's proposal on the appropriation of net profit were dealt with in detail with the auditors on 24 April 2017 in the audit committee and submitted to the Supervisory Board. The Executive Board proposes to pay out a dividend of EUR 1.10 per share entitled to dividends from the net retained profits of EUR 32,153,802.42, with the rest of the balance carried forward to new account. The audit committee and the Supervisory Board have approved the annual financial statements as of 31 December 2016 and the Group management report, the Corporate Governance Report, the report on payments to government entities and the proposal of the Executive Board regarding the appropriation of net profits following intensive discussion and auditing. The annual financial statements as of 31 December 2016 have thus been adopted. The audit committee and the Supervisory Board also approved the consolidated accounts for 2016 that had been prepared in accordance with IFRS and the Group management report. The Supervisory Board agreed with the proposal of the Executive Board regarding the appropriation of earnings.
The Supervisory Board thanks customers and shareholders for the confidence they have placed in PORR and their commitment to the company, as well as the Executive Board and staff for the dedication they have demonstrated over the past year and the constructive collaboration it has enjoyed with them.
April 2017, Vienna
Karl Pistotnik m.p. Chairman of the Supervisory Board
With an increase of 3.1%, global economic growth matched the level of the previous year in 2016. Geopolitical crises continued to impact on the performance of the global economy. In the USA economic growth accelerated due to the stronger foreign demand over the course of the year. The dominating factors at year-end were the uncertainties related to future economic policy – in particular the risk of increased trade restrictions – as well as a tightening of monetary policy in the USA. The economy in Asia rose significantly. Commodityexporting countries, particularly the emerging markets, continued to profit from the stabilisation of commodities prices.1
In contrast, the pace of economic growth in the eurozone was unchanged – the European economy continued along its moderate growth course. Great Britain's vote to leave the EU was not yet reflected in the eurozone growth rates. Private consumer demand was once again the growth driver in the majority of EU countries. While the economy in the 19 Euroconstruct countries grew by 1.8% in 2016, this growth was far short of the level of the previous year. A weak appetite for investment stifled the pace of growth and foreign trade also slowed down still further. In contrast the fiscal policy of the central banks had a positive effect on growth.2
Driven by strong domestic demand, real GDP in Germany increased by 1.8% in 2016 according to the initial calculations of the Federal Statistical Office.3 The growth prospects in Central and Eastern Europe (CEE) also improved in light of the recession in Russia, which was only moderate contrary to expectations, and was set to be just under 3.0%. As in previous years, the economy in Poland achieved growth of 3.2% and was further boosted by increased consumer spending and a good job market situation. With growth of 2.3%, the Czech economy lagged significantly below the record year 2015.4
The Austrian economy is currently in a recovery phase that is being buoyed by domestic demand. Real GDP growth accelerated – following on from less than 1.0% for four years in a row – to 1.4% in 2016. This development was driven by investments and private consumption, which benefited from the income tax reform implemented in January 2016. Annual growth of 1.5% has been forecast for the years 2017 to 2019.5
Analysts' expectations were high following the original optimistic forecasts that 2016 would be the first year of robust economic growth after a long crisis. However, disenchantment set in after the Brexit vote and the surprising relapse of certain countries into a downturn: Euroconstruct forecast subdued growth of 2.0% in construction output for the 19 member states in 2016. Eastern Europe also failed to overcome the crisis and was confronted with decreases – although in individual countries such as Poland this started out from a high baseline. The only sector that outperformed the forecasts was residential construction, while investments in building construction and infrastructure construction were lower than in the previous year. Growth rates of 2.1% and 2.2% have been forecast for Europe in 2017 and 2018 – with significantly more robust growth in Eastern Europe.6
There are multiple reasons for the slowdown. In addition to the negative impacts expected from the Brexit vote and the likelihood of weaker economic growth in China and Germany, there is an array of structural problems. The ongoing weakness in the banking sector in Europe and the expected hike in interest rates are having a stifling effect on the construction business.
With a plus of 2.5%, Germany's construction output achieved robust growth in 2016. That said, the growth was almost exclusively driven by the increased demand for residential construction caused by migration. The petering out of this trend after 2018 is likely to lead to stagnation in German construction.
In Austria the three segments residential construction, building construction and infrastructure construction achieved slight growth. While Euroconstruct does not see any notable weak-
1 Wifo press release, 8.11.2016, http://www.wifo.ac.at/jart/prj3/wifo/resources/person_dokument/person_dokument.jart?publikationsid=59098&mime_type=application/pdf
2 Euroconstruct: 2016_82_Country-Report Barcelona http://www.finanzen.net/nachricht/zertifikate/IKB-Kapitalmarkt-News-Deutsche-Konjunktur-Robuster-Ausblick-5293684
4 Euroconstruct: 2016_82_Country-Report Barcelona
5 https://www.oenb.at/Presse/Pressearchiv/2016/20161212.html
6 EC Nov2016: Seite 8-22
nesses in Austria's construction output, it also sees hardly any particular strengths. In 2016 growth stood at 1.6% and it is expected to remain at a similar level in the next three years.
PORR's production output is determined from the proportional construction output of all companies in which PORR has a direct or indirect interest, as well as from the proportional output of consortiums involving any one of the PORR Group companies, reconciled pursuant to commercial criteria. As opposed to the gross revenues reported in the consolidated income statement, the output of consortiums on the one hand and the output of all Group companies on the other hand – regardless of their form of inclusion in the consolidated accounts (fully consolidated, equity method, proportionate or those of minor significance) – are included proportionately in the calculation of production output.
PORR continued its successful course in 2016. At year-end production output stood at EUR 3,925m and thereby grew by EUR 401m or 11.4%. The growth was therefore significantly higher than that of the European construction industry (2.0%). PORR generated 87.4% of its total production output on the five home markets.
Austria remains the most important market and the foundation of the Group's success with production output of EUR 2,055m – an increase of EUR 185m or 9.9%. The strongest growth in percentage terms was achieved in Germany; with EUR 802m, a rise of EUR 167m or 26.4%, the announced expansion in the most important foreign market continued.7 The performance in Poland (1.0%), the Czech Republic (4.7%) and Switzerland (24.3%) rounded off the pronounced growth on the home markets. The development in output was also positive when broken down by segment. All four business units achieved increases, albeit to different degrees. Business Unit 1 – Austria, Switzerland, Czech Republic (BU 1) generated production output of EUR 2,125m, an increase of EUR 218m or 11.4%. Every single federal province managed to increase its output.
Production output
Business Unit 2 – Germany (BU 2) increased its output to EUR 456m – this corresponds to a rise of EUR 82m or 21.7%. At 31 December Business Unit 3 – International (BU 3) had generated output of EUR 1,082m, a slight increase of EUR 5m or 0.5%. The reason for this slight growth was several projects being pushed back to 2017. Business Unit 4 – Environmental Engineering, Healthcare & Services (BU 4) managed to expand its output significantly; it totalled EUR 219m, a rise of EUR 66m or 42.7%. As usual, the largest share of output was generated by PORR Umwelttechnik.
The development in orders was once again pleasing in 2016. Despite the high increase in output, it was possible to increase the order backlog and it totalled EUR 4,804m – a rise of EUR 225m or 4.9% – setting a new record. The cushion of orders is significantly higher than one year of production output.
As with production output, it was possible to increase the order backlog in every segment. In BU 1 it reached EUR 1,664m, a rise of EUR 99m or 6.3%. The performance in Germany was also positive: the order backlog of BU 2 totalled EUR 739m, an increase of EUR 49m or 7.1%. The order backlog also grew in BU 3 and stood at EUR 2,227m at 31 December 2016, an increase of EUR 30m or 1.4%. BU 4 benefited from the good order books of PORR Umwelttechnik. The order backlog grew to EUR 117m, a rise of EUR 36m or 43.9%.
The order intake also managed to surpass that of the previous year and reached EUR 4,150m, an increase of EUR 105m or 2.6%, whereby the division among business units was more mixed. The order intake rose in BU 2 and BU 4, while it slipped back in BU 1 and BU 3. The reason for the decline in BU 1 was the practically full utilisation of all capacity in Switzerland, where tenders are only being acquired very selectively with a view to the margins. In BU 3 the decrease was almost exclusively caused by the non-inclusion of the large-scale acquisition in Qatar in 2015.
This country analysis of Germany includes the share of output from both BU 2 and BU 3.
Production output, commonly used in the construction industry as an indicator of size, is determined from the proportional construction output of all companies in which PORR has a direct or indirect interest, as well as from the proportional output of consortiums in which a PORR Group company participates, reconciled pursuant to commercial criteria. In contrast to the gross revenues reported in the consolidated income statement, the output of consortiums on the one hand and the output of all Group companies on the other hand – regardless of their form of inclusion in the consolidated accounts (fully consolidated, accounted for under the equity method, proportional or those of minor significance) – are included proportionately in the calculation of production output.
The PORR Group increased its production output yet again in 2016, with an increase of EUR 401.6m or 11.4% to EUR 3,925.3m.
The PORR Group's consolidated revenue rose by EUR 277.4m in 2016 to EUR 3,417.1m. The growth in revenue was slightly below production output, by 8.8%, as there was a disproportionately high rise in revenue from companies accounted for under the equity method and those of minor significance. At the same time, the proportional output of consortiums was only slightly above the levels of the previous year.
The income from companies accounted for under the equity method include results from associates and joint ventures, as well as the income from interests in consortiums. The contribution from consortiums held steady in 2016, as did the income from associates and joint ventures, contributing EUR 46.3m (2015: EUR 46.2m) to annual earnings, whereby the largest share was generated by the inclusion of income from consortiums (EUR 33.5m).
The PORR Group's other operating income increased more slowly than revenue, rising by 3.7% to EUR 105.5m.
In terms of expenses, cost of materials and other related production services represent the highest cost factor, as is common to the industry. The amount of these costs is dependent on how many of the services on construction projects are carried out by the Group itself and how many by subcontractors. This cost item increased by 9.3%, practically proportionate in relation to revenue. Here the individual components showed contrasting developments: expenditure on purchased services increased disproportionately sharply compared to revenue by 14.1% against the previous year (from EUR 1,409.4m to EUR 1,607.5m), while expenditure on materials fell by 1.2% against the previous year to EUR 643.9m. However, material expenses in relation to revenue were reduced by 1.9PP to 18.8%.
In 2016 staff expense rose by 8.2% to EUR 874.1m, which was lower than the growth in revenue, and also lower than the change in staffing levels, which were up by 7.6% against 2015.
Other operating expenses increased slightly against the previous year by 1.2%. This item includes legal and consultancy services, office running costs, travel expenses, buildings and land, taxes and duties, commission on syndicated guaranteed loans, advertising and shares of losses linked to orders processed through consortiums, as well as provisions for losses and penalties.
On the basis of the growth in revenue and the savings on other operating expenses, it was possible to increase EBITDA by 12.9% or EUR 21.4m to EUR 187.3m.
Depreciation, amortisation and impairment increased by 11.7% to EUR 87.3m because of higher investments and the expansion and conversion of operating sites.
EBIT thereby stood at EUR 100.1m, an increase of 14.0% against the previous year.
The slight fall in interest income from financial investments led to a slight decline in the financial result, slipping back by EUR 2.3m to EUR -9.0m.
Improvements in the operating cost structure allowed for an increase in EBT in the period under review to EUR 91.1m (2015: EUR 81.1m). With growth of 12.3% or EUR 10.0m, EBT saw a disproportionately sharp rise compared to revenue. The slight year-on-year increase in tax expense of EUR 24.2m (2015: EUR 20.1m) led to a EUR 5.8m rise in the consolidated profit to EUR 66.8m.
At 31 December 2016 the PORR Group's total assets stood at EUR 2,360.5m and were thereby just EUR 56.5m or 2.5% below the value of the previous year despite corporate acquisitions and the increase in revenue. This was because the growth in the assets related to expanding business activities compensated for the reduction in cash and cash equivalents.
Under non-current assets, there was a rise in property, plant and equipment due to investments in construction equipment and structural measures in company buildings of EUR 53.7m to EUR 521.1m, with investment property increasing by EUR 9.9m to EUR 43.5m, primarily because of acquiring an equity interest with a property asset. In addition, interests in companies accounted for under the equity method rose by EUR 4.9m to EUR 43.3m and loans increased by EUR 22.1m to EUR 23.2m. Other financial assets held steady at EUR 89.9m, whereby total non-current assets increased from EUR 715.9m to EUR 799.7m.
Current assets as at 31 December 2016 were reduced by a total of EUR 27.4m, whereby the increase in trade receivables necessitated by the significant expansion in revenue was compensated for by the high liquidity position from the previous year, which declined from EUR 647.2m to EUR 476.4m.
At 31 December 2016 the equity ratio rose by 0.8 PP to 18.7%, despite the increase in total assets. Equity grew, primarily because of the good annual earnings (EUR 61.6m), while the dividends paid out in the amount of EUR 37.8m had a contrasting effect. Overall, equity rose by EUR 28.8m to EUR 440.9m.
While the high liquidity was used to redeem a bond and settle other financial liabilities, trade payables climbed by EUR 153.9m to EUR 785.6m, whereby most of the increase in trade receivables could be offset. Other liabilities decreased due to the reduction in advance payments for projects included in this item; they fell by EUR 58.9m to EUR 193.1m. Overall, current liabilities grew by EUR 18.3m to EUR 1,358.5m.
Non-current liabilities grew because of increasing a Schuldscheindarlehen and declined because of settling financial liabilities.
At 31 December 2016 the PORR Group had a net cash position (balance from bonds and financial liabilities less cash and cash equivalents and securities in current assets) of EUR 53.3m.
While operating cash flow of EUR 155.8m was up against the previous year (2015: EUR 145.3m), cash flow from operating activities declined against 2015 by EUR 137.4m to EUR 56.1m. This was because while the increase in trade receivables was broadly offset by the rise in trade payables as of the reporting date, nevertheless, the POC advance payments received for projects not yet completed declined by EUR 58.9m. This reduction in advance payments corresponds with the output and payment plans of the projects.
Under cash flow from investing activities, the payments for investments in property, plant and equipment and financial assets, as well as the acquisition of multiple subsidiaries, were partly offset by the proceeds from selling property, plant and equipment. Cash flow from investing activities of EUR -108.6m was significantly lower than the comparable period, as the investments in 2015 contrasted with high amounts for redeeming loans and the investment activity in 2016 was adjusted to reflect the expansion in the business in 2016.
Cash flow from financing activities of EUR -116.0m shows the outflow of funds for paying dividends (EUR -47.6m), payout to non-controlling interests (EUR -0.4m), repayment of Schuldscheindarlehen (EUR -27m), the redemption of a bond (EUR -50.8m) and settling loans and borrowings (EUR -57.2m). This was slightly compensated for by the decrease in cash and cash equivalents from taking out loans and borrowings (EUR 15.6m), increasing a Schuldscheindarlehen (EUR 41.1m) and the payout of a scrip dividend (EUR 10.2m).
At 31 December 2016 cash and cash equivalents totalled EUR 476.4m.
In 2016 the PORR Group employed 15,328 people on average, which breaks down into 8,603 waged workers and 6,725 salaried employees. This represents a 10.4% increase against the previous year. While the increase in Austria of 2.9% was comparatively low, the staffing level in the foreign subsidiaries grew sharply by 22.3%. This was partly caused by the expansion strategy in Germany. The 8.2% increase in staff expenses to EUR 874.1m was lower than the growth in staff and below the rise in production output.
PORR is committed to ongoing HR development and employees have the opportunity to improve their performance and skills through a wide range of training and development measures. Diversity plays a major role and is an important part of the corporate culture. In 2016 the average training days per staff member stood at 1.49 (data based on Austria and Germany); the number of training sessions totalled 2,307. Overall PORR invested EUR 2.95m in the year under review, 2016, in training and development for its staff.
Sustainability is an integral component of the PORR corporate philosophy. The company is committed to upholding sustainability criteria at every stage of the value chain. This applies to several areas including the social sector – such as staff development, all aspects of accident prevention and preventative healthcare – as well as securing diversity and equal opportunities throughout the entire Group. Environmental issues are addressed in the action field of preserving value and focus on energy efficiency in particular. Adherence to environmental regulations is also systematically recorded and the requisite improvements implemented.
The PORR Sustainable Value Report is published once every two years and the most recent publication covers the years 2014/2015. Detailed information is available at porr-group. com/konzern/verantwortung/csr/, where the Sustainable Value Report 2014/2015 can also be downloaded. The next report will be published in 2018 for the years 2016/2017.
In early summer 2016 PORR conducted a materiality analysis in order to adapt its sustainability strategy to meet the requirements of the GRI G4 guidelines. The materiality analysis forms the basis for focusing on the issues that are central to the company and the enhanced focus on the core business of PORR – construction. The material CSR topics were defined in the course of a comprehensive analytical process, consisting of workshops on general topic identification, defining the stakeholder groups and online surveys. The results showed that "long-term economic success" and "customer satisfaction" were the most relevant issues by a considerable margin, both from the company's viewpoint and from that of the stakeholders. For staff members the top priorities were "safety and prevention" as well as "further education and training".
A central topic in the period under review was realising the Diversity Initiative. As an international company, PORR is committed to diversity and equal opportunities in its HR strategy. The expectations of a job and working environment are changing: employees are looking for an atmosphere at work that not only values their contribution, but also offers varied tasks and individual responsibility. Additional potential comes from increasing migration and cooperation in heterogeneous teams. At the same time, targeted diversity measures can increase both the potential for innovation and creativity. With this in mind, the PORR Diversity Initiative started in autumn 2015 in order to improve the work-life balance and promote equal opportunities among staff. Here the first steps involved targeted measures such as those related to models of working hours and leave, childcare, a Parent-Child Office for childcare emergencies, support when relatives require nursing care, as well as special training sessions and implementing corporate networks.
One of the focal points in the field of education was on further development for the managers of the future, as well as training for team and group leaders and foremen. The commercial trainee programme and the buddy system also continued. A priority for management staff in the year under review was compliance training on the topics "Anti-corruption" and "Preventing anti-competitive practices". One of the focal points in 2016 was developing e-learning for soft skills and specialist competencies, including communication skills, occupational health and safety and labour law.
In addition to the Group's internal women's network, Women@ PORR, the first training sessions as part of the Diversity Initiative on the issue of "Empowerment for women in construction" were successfully realised and a mentoring programme, which will enter its pilot phase in 2017, was conceived.
Once again PORR took part in numerous events in order to attract talent to the company early on. These included PORR@HAK, the Vienna Daughters' Day, fair.versity Austria and other renowned careers fairs in Austria and abroad.
In the year under review PORR came a step closer to its goal – Zero Accidents – with a renewed decrease in accidents at work. The specialist competencies of the safety experts were bundled in the business units, brought together from across the Group in an occupational health and safety team, and boosted by the addition of five new safety officers. The focal points in 2016 involved the issues of personal safety gear (work wear), fastening loads and a safe approach to pressurised lines. Mandatory minimum training on employee safety was introduced to increase the health and safety performance across the Group, part of which consists of e-learning modules. The "Safety Walk" on the construction sites also continued, as it has proven to be a good instrument for preventing accidents.
Innovation comes from visionaries and bright sparks. People are at the heart of PORR's sustainable business growth and the company encourages every staff member and sees diversity as a major opportunity for the Group. We are committed to skilled workers for creative, interactive and complex tasks and we support teamwork as well as flexibility. As a matter of course this is complemented by promoting women and young talent, fair and transparent remuneration, and prioritising occupational health and safety.
PORR is striving for technological leadership in many areas. In order to do justice to this goal even more effectively, the PORR innovation initiative has been strengthened by the implementation of the "Knowledge factory". As part of the online forum for technological issues, the company is promoting optimal staff networking, regardless of hierarchies. At the same time, the entire Group thereby has access to individual knowhow and any possible need for innovation can be identified.
PORR cooperates with competitors and major clients in a variety of research projects. Different university institutes are involved in industry and innovation projects and form the scientific basis in interdisciplinary consortiums. Current examples include a project to optimise the strengthening and reinforcement of bridges and one for the further reduction in resource consumption of construction machinery.
In total PORR employs 45 people in the field of Research, Development and Innovation. Employees from other European PORR locations are also involved in certain projects. The PORR department of Technology Management and Innovation (PTI) serves as a contact point offering comprehensive consulting and support for every innovation question. Other departments and operating units support innovation projects – the organisation is handled by knowledge management. The key importance of the issue is also reflected in the investments in research and development – investment in 2016 was 20% higher than in the previous year.
A central issue of the work in innovation at PORR is the digitalisation of design and construction processes. There are 30 employees in PORR Design & Engineering working on the further development and application of Building Information Modeling (BIM). Step-by-step, various processes related to design and execution are being integrated into this model, including Architecture, Statics, Calculation and Construction Site Progress.
In addition, the further development of 3D FEM statics programmes is being promoted in a multi-year project. The core of the project involves measurements of the loads actually incurred on three towers currently under construction. There have been multiple PORR developments and patents realised for projects in Germany and Austria in the field of tunnelling – a focal point of innovation in recent years. These include bonded steel/concrete lining for extremely high loads, lining with non-corrosive reinforcement, and materials for annular gap backfilling in case of high mountain-water pressure. A further development of the Slab Track system was also realised on the construction of the metro in Doha. Furthermore, a heavy-duty system for axle loads of up to 32 tonnes was developed; this can be used in the railway network of the Middle East and in heavy industry.
The strategy of intelligent growth has developed into a PORR success factor in recent years and will continue to be implemented consistently. In addition to a commitment to the core competency of construction, PORR understands this to mean focusing on the markets that are classified as home markets. The majority of the Group's output is generated in Austria, Germany, Switzerland, Poland and the Czech Republic. This is complemented by large-scale, high-margin projects in the project and target markets, predominantly in the infrastructure sector. With its focus on private industrial clients, PORR is also positioned in building construction as a skilled partner whose word is its bond.
Even though the share of output generated outside the five home markets has increased in recent years, more than 87% of construction output is still generated in the stable countries in the DACH region with strong credit standing, as well as in Poland and the Czech Republic. This strategy will be maintained and in the future PORR will continue to concentrate primarily on this region, in line with the principle "know your market, know your customers". Internationally, PORR has successfully established itself as an expert, premium provider and infrastructure specialist from its hub in Qatar with export products in tunnelling, rail construction and foundation engineering.
In order to selectively strengthen its core competencies and niches, PORR constantly evaluates corporate acquisitions and realises them if they are judged to be positive and fit for the future. Here the growth market of Germany is particularly in focus, although acquisitions in Austria and individual options in other markets are also assessed.
The "Roadmap 2020" has been implemented in order to accelerate the digitalisation process and position PORR as a leading construction company in this field. The Roadmap is the strategic implementation plan to digitalise PORR and is being realised by cross-departmental teams from Corporate Development, IT & Business Processes, PORR Design & Engineering, PORR Equipment Services and especially by the operating employees from every unit.
In addition to promoting digitalisation, PORR's primary goal is to sustainably secure its positioning as the 'best place to work'. The programme "Work & Life @ PORR" has been successfully introduced in the competition for the best talent, offering staff comprehensive additional services relating to healthcare, nursing care, childcare and equal opportunities. PORR benefits from above-average staff retention, which is being strengthened still further by this programme, and receives a high number of applications for salaried and waged positions despite the prevailing lack of skilled labour.
Even though the good performance of the business has led to annual increases in production output, the cushion of orders has also continued to grow. With an order backlog of around EUR 4.8bn, today it stands at almost EUR 0.9bn above annual production output. This is complemented by very strong earnings last year, with an EBT increase of 12.3% and liquidity which is above the industry average, with a net cash position totalling EUR 53m.
The combination of high profitability and a very good order situation allows the Executive Board to assume a further increase in output and earnings for the current year 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.
The qualified approach to risks and opportunities has long been one of the PORR Group's most important principles when carrying out any economic activity and secures its competitive ability. Risks should also be targeted as opportunities where possible. The aim of risk management is to identify risks and then minimise them while still maintaining the company's earnings potential. The goal of risk management within the PORR Group lies in developing and implementing the required organisational processes which help to pinpoint risks early on as well as developing or implementing any appropriate measures to counter those risks. The following lists the most significant risks known to the PORR Group, which can have a lasting influence on the financial position, cash flows and financial performance of the Group.
Market risks result from changes to economic environments and frameworks in the important PORR markets. Furthermore, disparities between national economies cause a variation in demand across the PORR Group's markets. PORR reacts to fluctuations in national markets and business segments and to the current budget restrictions in the public sector of many countries by concentrating on the home markets where margins are secure, namely Austria, Germany, Switzerland, Poland and the Czech Republic. On the project markets of Qatar, UK, Slovakia, Romania and Norway and in future on the target markets of Sweden and Denmark, PORR only offers export products for selected projects in the fields of tunnelling, rail construction (Slab Track system) and specialised foundation engineering.
These apply to all operating units of the PORR Group and can be qualified in terms of calculation and execution risks. From the tender stage to the conclusion of a contract, all projects are assessed for specific technical, commercial and legal risks. This is carried out in close collaboration between the parties responsible for operations and the risk managers with the aid of risk checklists. Ongoing target/performance comparisons are carried out during the project execution stage of all projects. If the project is outside the target parameters, then appropriate control measures are initiated, monitored by the risk managers as part of a regular process, and assessed with regard to results.
Successful management of risks related to human resources is crucial to the development of the PORR Group. Staff risks arise from employee fluctuations and loss of expertise, as well as shortages of skilled labour, management and young talent. This is why PORR's activities are targeted towards steadily developing staff skills through efficient training measures and increasing the PORR Group's appeal as an employer through career opportunities and incentive schemes. PORR deals with the increasingly fierce competition for highly qualified specialists and managers by optimising recruitment measures and through targeted employer branding.
Managing financial risks, in particular liquidity risks, interest rate risks and currency risks is carried out by the Treasury division and governed by standard Group guidelines. To minimise the risks as far as possible, certain derivative and non-derivative hedging instruments are used in line with evaluations. In general only operational risks are hedged, speculative transactions are forbidden. All hedge transactions are performed centrally by the Group financial management. An internal control system (ICS) designed around current requirements has been implemented to monitor and control risks linked to money market and foreign exchange trading. The cornerstone of managing these risks is the complete functional separation of commerce, processing and accounting. The most important risks for the PORR Group in terms of finance – liquidity risks, interest rate risks and currency risks – are described below in more detail.
The liquidity risk is defined as the risk that liabilities cannot be paid upon maturity. Managing the liquidity risk is based on a financial plan updated once a quarter, which originates at operational level. For all projects a designated commercial employee conducts individual and monthly planning for the current year and for the subsequent years. The operational component involves planning all cash-related financial issues such as due dates for financing, M&A and capital market transactions, interest and dividends; this is performed centrally at holding level with the person holding Group responsibility.
At year-end 2016 the Group had a high liquidity level of TEUR 476,430; this liquidity is used on the one hand for the seasonal peak liquidity demand from April to November (typical to the construction industry), as well as for corporate acquisitions and settling loans due. Should additional liquidity demand arise, this could provisionally be covered by drawing on existing lines of credit.
At 31 December 2016 the net cash position, defined as the balance from cash and cash equivalents, bonds and current and non-current financial liabilities, amounted to TEUR 53,312 (previous year: TEUR 186,526).
Current financial liabilities, defined as the current portion of bonds and de facto current financial liabilities, amount to TEUR 43,993 (previous year: TEUR 94,899) and are covered by cash and cash equivalents and assets held for sale of TEUR 480,454 (previous year: TEUR 651,160). Bonds and Schuldscheindarlehen worth TEUR 300,662 were part of non-current financial liabilities of TEUR 379,125. At 31 December 2016 there was TEUR 204,734 (previous year: TEUR 211,947), available in bank lines for cash loans, which could be drawn on for the immediate refinancing of current financial liabilities. With regard to the syndicated guaranteed credit line which was granted and used, see note 40. The Group has access to European credit lines totalling TEUR 2,336,869 (previous year: TEUR 1,621,100). Of these credit lines, TEUR 961,000 (previous year: TEUR 641,200) was concluded with a three-year term. The remainder of TEUR 1,375,869 (previous year: TEUR 979,900) generally run for a one-year term. Furthermore, there were credit lines in several Arabic countries of TEUR 583,647 (previous year: TEUR 539,400). As of 31 December 2016, around 49% (previous year: 59%) of the European credit lines had been drawn on and around 33% (previous year: 37%) of the lines in Arabic countries.
The Group's interest rate risk is defined as the risk from rising interest cost or falling interest income in connection with financial items. For PORR this risk results primarily from the scenario of rises in interest rates, especially in the short term. Any future hedge transactions that are required will be concluded by the Group's financial management. At the end of the reporting period, the management of this risk was conducted with non-derivative instruments as well as two interest rate swaps totalling TEUR 125,000 and three interest rate swaps with start dates in the future totalling TEUR 67,000. All derivative hedges are designated as cash-flow hedges. All interest rate swaps relate to swapping variable interest flows for fixed interest flows. As of 31 December 2016 the market value of the interest rate swaps had a fair value of TEUR -1,244.
The management emphasis with regard to foreign currency risks relates to hedging exchange rate risks of future incoming or outgoing payments conducted in a foreign currency and which either relate to payments by clients or suppliers, or convert intragroup financing into the respective national currency of the borrower.
The PORR Group had concluded forward exchange contracts of TEUR 59,337 (previous year: TEUR 90,727) at 31 December 2016; of these, TEUR 49,112 were forward purchases and TEUR 10,224 were forward sales. Around TEUR 13,776 (previous year: TEUR 43,293) are used as hedges for project cash flows and the remainder of TEUR 45,561 (previous year: TEUR 47,434) for hedging intragroup financing.
At 31 December 2016 the market valuation of open forward exchange contracts resulted in a negative fair value of TEUR 440. In the fiscal year 2016 total expense of TEUR 1,106 which resulted from changes in the fair value of forward contracts was recognised in profit or loss.
The strategic decision to position the PORR Group as a full service provider means that PORR offers a comprehensive service portfolio. Capacity restrictions mean that some work must also be carried out by subcontractors. The risks connected with this concern quality, delivery times and expenses and can lead to supply difficulties in times of increased demand. Partner management in the form of cooperation agreements with the supply industry and trade takes a longterm approach and contributes to minimising supply risks in subcontractor purchasing, whereby steel, cement, formwork and diesel are important commodities for the PORR Group. For these and other materials, there are lead buyers in place as product specialists, who are integrated in the tender process from the very beginning. Using an IT-supported purchasing platform allows the Group to monitor the amounts purchased and facilitates the purchase of larger volumes. The price risk of other key materials purchases can only be hedged through long-term price fixing in the form of frame agreements, owing to the lack of functioning derivative markets for these materials. The increasing challenges for the operational areas in recent years have been the price increases in the energy and commodities sectors. As long as it is not possible to transfer these costs to the customer, they may have a negative effect on the Group's financial performance. Building up stable, long-term relationships with suppliers and subcontractors is therefore seen as an urgent priority and enables the Group to minimise these risks by means of long-term frame agreements.
Specific to the industry, construction contracts require an advance payment by the general contractor which will not be covered by payments until a later date. To reduce the default risk an extensive creditworthiness check is carried out and adequate sureties are agreed as far as possible. The default risk related to other primary financial instruments recorded as assets is also considered marginal, as the contract partners are financial institutes and other debtors with good credit standing. The carrying amount of all financial assets represents the maximum default risk. In as far as default risks on financial assets are possible to determine, these risks are addressed by applying impairment. There are high unsettled receivables for infrastructure projects from governmentrelated companies in Austria and Germany. Apart from these, there are no other operative risk concentrations arising from high outstanding amounts from individual debtors.
The fundamental aim of the Group's capital management is to substantially increase equity and to keep debt low.
In the year under review PORR succeeded in increasing equity by around TEUR 28,754. It was thereby possible to increase the equity ratio by 0.79% to 18.7% despite the growth in total assets. Non-current liabilities subject to interest of TEUR 379,125 remained at practically the same level as the previous year. As the result of the repayment of a bond in November 2016, the Group succeeded in reducing current financial liabilities by 54% from TEUR 94,899 to TEUR 43,993.
At 31 December 2016 the net cash position, defined as the balance of cash and cash equivalents, bonds and current and non-current financial liabilities, totalled TEUR 53,312 (previous year: TEUR 186,526). This is primarily due to the increase in revenue as well as working off the high prepayments in the large-scale project business. The net gearing ratio, defined as net financial debt divided by equity, is applied for the control of capital management. The net gearing remained negative and declined due to the lower net cash position from -0.4 to -0.12.
The PORR Group's internal control system (ICS) is oriented towards the EU standards which have been compulsory since 2009 and whose aim is to produce comparable evaluations of the efficacy of the ICS. Furthermore, PORR is dedicated to securing the company's assets, guaranteeing the actual effects and efficiency of operational processes and ensuring the reliability of financial reporting. The responsibility for implementing and adhering to legal stipulations for the accounting-related internal control system lies with the Executive Board, which has in turn charged the Group audit department with internal auditing and the accounting department with external reporting tasks. The internal control system involves assessing operational risks as well as the appropriate implementation of organisational standards and processes across all areas of accounting and reporting within the PORR Group. The internal control system in the PORR Group ensures that the recording, preparation and accounting of business transactions are standardised across the Group and incorporated correctly into Group accounting. Measures such as clear, Group-internal guidelines, predefined process directives and system-supported processes for recording accounting data all support a uniform and orderly accounting practice. The reporting of subsidiaries included in the consolidated accounts as well as their consolidation is carried out using integrated IT systems supported by databases. The relevant requirements for guaranteeing correct accounting practices are laid out in uniform Group methods of accounting and valuation and disseminated regularly. The clear functional separation and various control and monitoring methods such as plausibility checks, regular auditing activities at various reporting levels and the dual-control principle mean that proper and reliable accounting is assured. The systematic controls ensure that accounting in the PORR Group conforms to international accounting standards and internal guidelines and guarantees the proper and uniform execution of all accounting-related processes. Within the internal control system, the audit committee takes on the Supervisory Board's task of monitoring accounting processes and financial reporting. The compliance management system and the internal audit team also carry out an independent assessment of the effectiveness of the ICS with the aim of improving business processes.
The internal audit of the PORR Group was most recently externally certified on 26 November 2013 by Taxand Austria according to IIA (Institute of Internal Auditors) standards, thereby conforming to internationally recognised stipulations. The internal auditors have comprehensive audit powers, including both preventative and exploratory controls, at their disposal to enable them to realise their duties. The audit activities of the internal auditors are carried out to a yearly audit plan on direct behalf of the Group Executive Board. In addition, ad-hoc audits can be initiated at any time at the request of the Executive Board should events occur that may yield risks. The aim of the PORR Group is to continue developing the internal control system and to keep it constantly updated to conform to changing frame conditions and new Group guidelines.
PORR Bau GmbH has branch offices in the Austrian provinces of Vienna, Lower Austria, Burgenland, Salzburg, Styria, Tyrol, Carinthia and Upper Austria, as well as representations in Hungary, Croatia, Montenegro, Romania, Albania, Slovakia, Bulgaria, Serbia, Turkey, the United Arab Emirates, Qatar and Saudi Arabia. Please see the list of shareholdings with regard to the subsidiaries.
The same legally standardised rights and obligations apply to all ordinary shares. In particular, ordinary shares confer voting rights exercised according to the number of shares and participate equally in profit and, in the event of winding up, in the remaining liquidation proceeds. The share capital of the company is fully paid in. As at 31 December 2016 the company directly and indirectly held a total of 216,495 treasury shares or 0.74% of the share capital. In accordance with Section 95 Paragraph 5 of the Stock Exchange Act, the company does not have any rights, particularly voting rights, from the treasury shares.
In line with Section 5 Paragraph 2 of the company statues, shares from future capital increases can be bearer shares or registered shares. If the resolution authorising the capital increase does not specify whether the shares are to be bearer shares or registered shares, they will be bearer shares. In accordance with Section 5 Paragraph 3 of the company statues and Section 10 Paragraph 2 of the Stock Corporation Act, shares are to be issued in one, or where necessary multiple, global certificate(s) and deposited at a securities clearing or deposit bank in accordance with Section 1 Paragraph 3 of the Austrian Act on Securities Deposits, or at an equivalent facility abroad. The company has met this obligation. All of the share certificates previously in circulation were declared invalid, in line with the respective legal regulations.
A syndicate agreement is in place between the Strauss Group and the IGO-Ortner Group. The Chairman of the Executive Board is aware of this syndicate agreement, as the Strauss Group, which is led by the Prospero Privatstiftung, is under his control. The Executive Board as a whole has no knowledge of the content of the syndicate agreement from his function as a Board Member. Resolutions passed by the syndicate oblige the syndicate members to exercise their voting rights. There is a reciprocal acquisition right.
The following shareholders have a direct or indirect holding in the capital of at least 10% in the form of ordinary shares as at 31 December 2016:
| % of share capital | of which syndicated | |
|---|---|---|
| IGO-Ortner Group | 39.14% | 39.03% |
| Strauss Group | 16.73% | 15.68% |
The Strauss Group is made up of SuP Beteiligungs GmbH and AIM Industrieholding und Unternehmensbeteiligungen GmbH, both of which are wholly and directly attributed to the Prospero Privatstiftung, which is under the control of Karl Heinz Strauss, Chairman of the Executive Board. Regarding the shares of the IGO-Ortner Group, the majority are directly and indirectly held by Klaus Ortner.
The company has no shares with special rights of control.
The company has no employee share ownership plans under which employees do not exercise voting rights directly.
In accordance with Section 6 Paragraph 1 of the company statues, the Executive Board consists of between two and six people. In line with Section 6 Paragraph 2 of the company statutes, the Supervisory Board can appoint deputies to the Executive Board. In line with Section 6 Paragraph 3 of the company statutes, the Supervisory Board can name one member as the Chairman and one member as the Deputy Chairman. Any deputy Executive Board members have the same powers of representation as the regular Executive Board members.
In line with Section 9 Paragraph 1 of the company statutes, the Supervisory Board is composed of at least three and not more than twelve Members appointed by the Annual General Meeting (AGM). In line with Section 9 Paragraph 8 of the statutes, a replacement Member can be appointed at the same time as the appointment of a Supervisory Board Member, in which case the replacement Member would take up his seat on the Supervisory Board effective immediately if the Supervisory Board Member steps down before the end of his time in office. If multiple replacement Members are appointed, the order in which they are to replace a Supervisory Board Member who steps down must be determined. A replacement Member can also be appointed as a replacement for multiple Supervisory Board Members, so that he takes a seat on the Supervisory Board if any one of these Members steps down prematurely. The term of office of a replacement Member who joins the Supervisory Board is terminated as soon as a successor to the former Supervisory Board Member has been appointed, or at the latest when the remainder of the former Supervisory Board Member's time in office comes to an end. Should the term of office of a replacement Member who joins the Supervisory Board be terminated because a successor to the former Supervisory Board Member has been appointed, the replacement Member still serves as a replacement for the additional Supervisory Board Members he has been chosen to represent. In line with Section 9 Paragraph 2 of the statutes, the AGM can determine a shorter period in office than legally stipulated for individual Supervisory Board Members or all of the Members it appoints. Should certain Members leave the Board before the end of their term in office, in line with Section 9 Paragraph 6 of the statutes, a vote to replace them is not required until the next AGM. However, a replacement vote is required at an extraordinary general meeting, to be held within six weeks, if the number of Supervisory Board Members falls below three. In line with Section 9 Paragraph 4 of the statutes, the appointment of a Member of the Supervisory Board can be rescinded before the end of his time in office by AGM resolution requiring a simple majority of votes cast. In accordance with Section 19 Paragraph 1 of the company statues, resolutions of the Annual General Meeting are passed by simple majority of the votes present, unless another type of majority is proscribed by law; in cases where a capital majority is required, a simple majority of the share capital representatives is required for resolutions. From the legal viewpoint of the Executive Board, this statutory regulation has reduced the necessary majority of at least three quarters of the share capital represented in voting as required by the Stock Corporation Act, also for changes to the statutes, to a simple capital majority (except in the case of changes to the business purpose).
i) through issuing shares in exchange for contribution in kind, or
ii) through issuing shares to staff members, leading employees and Members of the Executive Board of the Group or an associate up to a total level of 10% of share capital.
The Supervisory Board is authorised to rule on changes to the statutes which result from the Executive Board exercising this entitlement.
Effective as of 31 December 2016, a resolution was passed at the extraordinary general meeting of 24 May 2016 authorising the Executive Board to acquire treasury shares over a 30-month period from 24 May 2016, in line with Section 65 Paragraph 1 Line 8 and Paragraph 1 a and 1b Stock Corporation Act, up to the legally permitted amount of 10% of share capital including treasury shares already purchased. The equivalent amount to be paid in the buyback may not be less than EUR 1.00 or higher than a maximum of 10% over the average, unweighted share price at closing on the stock exchange on the ten stock exchange days preceding the buyback. The purchase can be conducted on the stock exchange or through a public offering or in another legally permitted way, particularly over-the-counter, especially also from individual shareholders who are willing to sell (negotiated purchase) and also under the exclusion of the pro rata sales rights that can be attached to this type of purchase (reverse exclusion of pre-emptive rights). Furthermore, the Executive Board is authorised to determine the buyback conditions, whereby the Executive Board is obliged to publish the Executive Board resolution and the related buyback plan including its term, in line with legal stipulations. The authorisation can be exercised in full or in stages and also in multiple tranches for one or more purposes, by the Group, by a subsidiary (Section 189a Austrian Commercial Code) or by third parties acting for the company. Trading treasury shares is not permitted as a purpose for the buyback.
The Executive Board is authorised, with the approval of the Supervisory Board, to sell or use treasury shares for a fiveyear period starting from the resolution of the extraordinary general meeting on 24 May 2016, using a method different from sale on the stock exchange or public offering. The authorisation can be exercised in whole or in part, also in multiple amounts and for one or more purposes. The pro rata purchase right of shareholders upon sale or use of a different kind on the stock exchange or public offering is excluded (exclusion of pre-emptive rights). On the basis of this authorisation, in the reporting year the company issued 378,917 treasury shares, respectively around 1.3% of the share capital, as a scrip dividend in the course of the reinvestment by shareholders.
In 2015 the company issued Schuldscheindarlehen (SSD) in four tranches with a maturity term of three and five years and totalling EUR 185.5m. These Schuldscheindarlehen were partially paid back and partially extended until 2023 in 2016 and 2017. The SSD contracts include the following agreement: where a change of control takes place (as defined in the SSD contracts), every creditor shall be entitled to call due an amount corresponding to his/her stake in the SSD and demand immediate repayment of this capital contribution at the nominal value, plus interest accrued up to the date of repayment.
The company also has three framework guarantee credit contracts for EUR 295,000,000 (valid until 22 December 2018), EUR 180,000,000 (valid until 29 June 2019) and EUR 180,000,000 (valid until 27 September 2019), which contain the following agreements: should one or more people, who at the time of signing the relevant contract do not hold a share or a controlling share, attain a controlling share, as defined in Section 22 of the Austrian Takeover Act, in the beneficiary or a significant Group company (as defined in the contracts), then the agent and the individual lenders are entitled to immediately rescind the respective shares (with regard to their respective shares in the guarantee credit contract) of the framework tranches.
There were no other significant agreements under the terms of Section 243a Paragraph 1 Line 8 of the Commercial Code.
On 24 May 2106 the Annual General Meeting passed a resolution to pay out a special dividend to shareholders of EUR 0.50 per share in addition to the dividend of EUR 1.00 per share; this was to reflect the successful spin off of the real estate business and would be paid out in cash or in the form of PORR shares (scrip dividend). During the subscription period from 1 June 2016 to 15 June 2016, shareholders had the option of taking the special dividend of EUR 0.50 per dividend-bearing share in cash or as PORR shares in the course of reinvestment. On 16 June 2016 the Executive Board of PORR AG determined the subscription ratio as 54:1 and the reinvestment price as EUR 27.00, in line with the AGM resolution of 24 May 2016. Rights were exercised for a total of around 20.5m shares, corresponding to a take-up rate of around 71.8% of the shares entitled to subscribe.
Furthermore, EPS Absberggasse 47 Projektmanagement GmbH, a wholly owned subsidiary, holds ordinary shares in PORR AG. This results in the following stake held in treasury shares:
| Nominal value | ||||
|---|---|---|---|---|
| PORR AG | No. of shares | per share in EUR | Nominal value in EUR | % of share capital |
| Interest held on 31.12.2015 | 572,864 | 1.00 | 572,864 | 1.969% |
| Special dividend | -378,917 | 1.00 | -378,917 | -1.302% |
| Interest held on 31.12.2016 | 193,947 | 1.00 | 193,947 | 0.667% |
| EPS Absberggasse 47 | Nominal value | |||
|---|---|---|---|---|
| Projektmanagement GmbH | No. of shares | per share in EUR | Nominal value in EUR | % of share capital |
| Interest held on 31.12.2015 | 22,548 | 1.00 | 22,548 | 0.077% |
| Interest held on 31.12.2016 | 22,548 | 1.00 | 22,548 | 0.077% |
Experience, knowhow and trust are the pillars of PORR's economic success and also influence our approach to the capital market. A clear capital market strategy, the ongoing evaluation of our own opportunities, and consistent risk management have increased the company's position and value yet again. With proactive capital market communication and targeted investor relations, PORR is committed to great transparency also on the prime market of the Vienna Stock Exchange.
| Key data | |||
|---|---|---|---|
| in EUR m | 2016 | 2015 | Change |
| Production output | 2,125 | 1,907 | 11.4% |
| Foreign share | 19.0% | 15.6% | 3.4PP |
| EBT | 69.4 | 61.7 | 12.6% |
| Order backlog at year-end | 1,664 | 1,565 | 6.3% |
| Order intake | 2,224 | 2,250 | -1.1% |
| Average staffing levels | 7,634 | 7,476 | 2.1% |
The activities on the permanent markets of Austria, Switzerland and the Czech Republic are included in the segment Business Unit 1 – A/CH/CZ (BU 1). The segment covers building construction and civil engineering, structural engineering, foundation engineering, the raw materials business on these markets and various shareholdings (incl. IAT, BOMA and ÖBA). 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. In Austria BU 1 has complete coverage across every federal province and has established itself as a market leader in recent years. PORR views Switzerland and the Czech Republic as growth markets.
At 31 December 2016 had generated production output of EUR 2,125m, an increase of EUR 218m or 11.4%. EBT grew to EUR 69.4m, a rise of EUR 7.7m or 12.6%. BU 1 thereby cemented its role as the foundation of PORR's corporate success. Every Austrian province surpassed the output of the comparable period, 2015, some of them by a significant margin. This was coupled with strong growth in output in Switzerland and stable growth in the Czech Republic. The large-scale building construction projects unit, which also supports other business units with its expertise, grew sharply – particularly in Germany.
The rise in production output was even more pleasing as the order backlog meant that the order pipeline has been increased for the following years. The order backlog reached EUR 1,664m and was thereby EUR 99m or 6.3% higher than the end of the previous reporting period. In contrast, the order intake was slightly below the comparable period and totalled EUR 2,224m, a decrease of EUR 26m or 1.1%. The main reason for this decline was the full utilisation of all capacity in Switzerland due to the successful orders acquired in the previous year, which meant that tenders were only acquired very selectively with a view to the margins.
The most important new orders in 2016 were the Al Wakrah football stadium in Qatar, being developed together with BU 3, the Swiss project Europaallee Zurich, lot F, and the Muçon Hotel in Munich, being executed with BU 2. The residential complexes Triester Straße 40, Am Rosenhügel and Erdberger Lände in Vienna meant that large-scale projects were once again acquired on the important Vienna housing construction market. In industrial construction PORR acquired the tender to build a new office for Haribo and is realising a clean room expansion in Regensburg for Osram. In Austrian civil engineering, PORR will realise the flood barriers at Sankt Georgener Bay, while in the Czech Republic it is overhauling the D7 motorway, Prague-Knovíz, section 3.
BU 1 has retained its optimistic outlook for the current business year, even though the backdrop remains challenging. The reason for this optimism is the good market position and the high cushion of orders, as well as the client structure. In building construction PORR has built up a very good relationship, primarily with private customers, over many years and they have come to appreciate the company's trustworthiness, proximity to customers and – in particular – its adherence to deadlines. The impact of the tight public budgets has been felt in civil engineering in particular – a situation that is expected to continue in the coming years. PORR, however, has established an excellent position on the market thanks to its complete coverage in every Austrian district.
In future Switzerland will continue to offer lucrative opportunities, especially in building construction. In the coming years the Czech Republic will provide a positive backdrop for expanding business activities – due to the planned comprehensive investments in infrastructure, as well as private investment in building construction.
| Key data | |||
|---|---|---|---|
| in EUR m | 2016 | 2015 | Change |
| Production output | 456 | 374 | 21.7% |
| EBT | 3.7 | 2.4 | 55.0% |
| Order backlog at year-end | 739 | 690 | 7.1% |
| Order intake | 505 | 448 | 12.7% |
| Average staffing levels | 1,050 | 933 | 12.5% |
The segment Business Unit 2 – Germany (BU 2) encompasses all of PORR's activities on the home market of Germany, from building construction and civil engineering to foundation and structural engineering and does justice to the importance of PORR's second largest market. Particular focal points include private building construction, where PORR has established itself as a reliable partner to German industry. Foundation engineering, which will be further strengthened in the coming years, will also profit from the growth in building construction. The market position has been consistently consolidated in recent years, also beyond the established presence in the major urban areas of Munich, Berlin, Düsseldorf and Frankfurt. Further attractive areas such as the Greater Hamburg Region are currently being cultivated. BU 2 implements demanding large-scale projects in building construction together with BU 1 – A/CH/CZ and major infrastructure projects with BU 3 – International.
Highly satisfactory progress has been made on the expansion strategy of BU 2. Here PORR is playing to its strengths, such as direct contact with customers, trustworthiness and a strong focus on solutions. Numerous projects were realised in the core competencies of residential, office, hotel and industrial construction in the past year. At 31 December 2016 production output reached EUR 456m, a rise of EUR 82m or 21.7%. The good EBT performance underlined the fact that growth is being realised with a clear view to the margins. EBT amounted to EUR 3.7m, an increase of EUR 1.3m or 55.0%.
Despite the consistent expansion in production output, it was also possible to significantly improve the order situation. The order backlog climbed to EUR 739m, a rise of EUR 49m or 7.1%. The growth in the order intake was even more pronounced; it reached EUR 505m, an increase of EUR 57m or 12.7%. The largest new orders included the Zalando Campus in Berlin, the Muçon Hotel in Munich, together with BU 1, the La Tête office project in Düsseldorf and the Schlossquartier Kiel residential project. In industrial construction the tender to build an administrative headquarters for Haribo was acquired.
PORR has defined Germany as its most important foreign market. The entire portfolio of construction services is offered here and activities are being constantly expanded. The expansion is based on utilising competitive advantages and the withdrawal of competitors. The market itself is highly attractive thanks to the strong credit standing of its clients, even though a successful construction company does face challenges that vary from region to region. PORR consistently explores interesting corporate takeovers in order to do justice to the expansion and strengthen specific niches. A key component of expanding the business is always the acquisition of the best staff – this holds true for both salaried employees and waged workers.
PORR concentrates on the areas in which it has a clear competitive advantage. In Germany the company already has a strong presence in complex infrastructure and civil engineering projects. Medium-volume activities should be advanced in the building construction sector. PORR is increasingly positioning itself as a reliable partner to German industry. In the coming years PORR will continue along its growth path in Germany and continuously consolidate its position. Following the withdrawal of several major competitors, the prevailing conditions are good. The annual market growth may be lower today than in the pre-crisis years, nonetheless, it is starting out from a very high baseline and remains stable despite the difficult economic environment.
| Key data | |||
|---|---|---|---|
| in EUR m | 2016 | 2015 | Change |
| Production output | 1,082 | 1,077 | 0.5% |
| Foreign share | 87.2% | 87.2% | - |
| EBT | 17.1 | 20.0 | -14.5% |
| Order backlog at year-end | 2,227 | 2,197 | 1.4% |
| Order intake | 1,112 | 1,131 | -1.6% |
| Average staffing levels | 4,146 | 3,352 | 23.7% |
The segment Business Unit 3 – International (BU 3) is home to the project-based business activities in Poland, the Nordic region, Qatar, Slovakia, Romania, Bulgaria, the UK and other future target countries. This business unit also includes the competencies in tunnelling, railway construction and bridge construction. In Poland and Romania BU 3 is also responsible for building construction and civil engineering, while PORR is additionally active in foundation engineering in Poland.
PORR is one of Europe's leading companies in many areas such as underground construction, conventional tunnelling with shotcrete right through to high-tech mechanical boring. In railway construction PORR developed the Slab Track system in cooperation with ÖBB, the Austrian Federal Railways. More and more clients rely on this system and it has led to numerous acquisitions in Austria, Germany and Qatar in recent years.
At 31 December 2016 the production output of BU 3 totalled EUR 1,082m, an increase of EUR 5m or 0.5%. This lower growth compared to the other business units was due to the postponements in output on individual infrastructure projects and is a common fluctuation for BU 3, a business driven by large-scale projects. In addition, the large-scale project Septemvri–Plovdiv in Bulgaria was completed as planned. These fluctuations are also reflected in earnings, which fell as planned to EUR 17.1m – a decrease of EUR 2.9m or 14.5%.
The situation with orders differed among markets, but was at a very high level overall. The order backlog reached EUR 2,227m, an increase of EUR 30m or 1.4%. The order backlog thereby stood at around two years of the annual construction output of BU 3 and the capacities for the coming years are also very well utilised. The order intake was slightly below the level of the previous year and totalled EUR 1,112m, a small decline of EUR 19m or 1.6%. This performance reflects the high order backlog, which allows a focus on purely margin-driven acquisitions.
The most important new orders in the business year 2016 were the PPP project D4-R7 Bratislava Bypass, PORR's largest new order in the past year – the Al Wakrah football stadium in Qatar, being developed together with BU 1 – the S6 Koszalin–Sianów motorway, the expansion of the S8 Poreba– Ostrów motorway and the S8 Paszków expansion, all three in Poland. In building construction the projects Business Garden Bucharest and Orhideea Tower were acquired in Romania, with the Business Garden Poznan II in Poland. Another positive development was the acquisition of PORR's first project in Great Britain, the Humber Pipeline north of London, and the first tunnelling project in Norway, the project Fv. 17 Liafjellet-Olvikvannet.
BU 3 has a very strong order pipeline and is in the comfortable position of not having to get involved in every cut-throat competition. The business unit will concentrate on its core competencies from this position of strength. PORR has strong technological expertise in many sectors such as tunnelling and railway construction, as well as large-scale bridge construction through the Polish unit, which should also open up excellent market opportunities in the future and strengthen the positioning on the PORR markets. With the entry into Great Britain, PORR has taken its first step on a highly promising market, which will invest billions in infrastructure in the coming years regardless of any possible exit from the European Union. A significant expansion of business activities is expected in Polish civil engineering in particular in the coming years.
| Key data | |||
|---|---|---|---|
| in EUR m | 2016 | 2015 | Change |
| Production output | 219 | 153 | 42.7% |
| Foreign share | 17.9% | 20.2% | -2.3PP |
| EBT | 0.7 | -4.2 | - |
| Order backlog at year-end | 117 | 81 | 43.9% |
| Order intake | 254 | 162 | 56.6% |
| Average staffing levels | 1,424 | 1,201 | 18.6% |
Business Unit 4 – Environmental Engineering, Healthcare & Services (BU 4) is home to PORR Umwelttechnik GmbH, the equity interests Prajo, TKDZ and PWW, hospitals, PORREAL and StraussPropertyManagement, Thorn, ALUSOMMER, as well as activities related to PPP.
PORR Umwelttechnik develops, builds and operates landfills, waste treatment and sorting facilities in Austria, Germany and Serbia. The centre of these activities is in Austria. In addition, PORR Umwelttechnik is responsible for the activities of Prajo & Co. GmbH, a Vienna-based firm specialised in recycling demolition and construction waste.
At 31 December 2016 the production output of BU 4 rose to EUR 219m, an increase of EUR 66m or 42.7%. In addition to environmental engineering, the most important output drivers were the acquisitions of 'hospitals' and Langes Feld, as well as the services of PORR Beteiligungs- und Management GmbH, including those on the PPP motorway project Bratislava Bypass. In addition, PORREAL achieved a significant increase in output. The successful business performance last year also had a very positive impact on EBT. It totalled EUR 0.7m, an increase against the comparable period of EUR 4.9m.
Parallel to the significant growth in production output, BU 4 also achieved strong improvements in its cushion of orders. The order backlog reached EUR 117m, a rise of EUR 36m or 43.9%. The order intake climbed to EUR 254m, an increase of EUR 92m or 56.6%. In addition to environmental engineering, the greatest contribution came from the facade builder ALU-SOMMER and PORR Beteiligungen und Management GmbH, especially "hospitals".
BU 4 is defined as the Group-wide specialist for expanding PORR's internal value chain in niches such as environmental engineering, project development or add-on services such as facades or sewage technology; it also strengthens PORR beyond its core competencies. In the last year the individual companies in BU 4 managed to establish a very good market position through the high order intake. This cushion of orders combined with the recognised competency in niche sectors allows BU 4 an optimistic outlook for 2017. In additional to municipal orders, the main focus of risk management for BU 4 is on the recoverability of receivables, especially those beyond the home markets of Austria and Germany. These efforts have proven successful, particularly in Serbia last year.
Today's world is digital. This also holds true for the construction business. Analogue technologies are being replaced by tablet and cloud computing, while the entire value chain – from order intake to production and execution – is being digitalised with multifunctional, complete solutions. With Building Information Modeling (BiM), PORR has set the course for the future. Our specialists today are developing 5D solutions and have integrated the dimensions of time and construction site logistics. The result: a conclusive optimisation of all previously commonplace processes.
| in EUR thousand Notes |
2016 | 2015 |
|---|---|---|
| Revenue (7) |
3,417,100 | 3,139,687 |
| Own work capitalised in non-current assets | 727 | 539 |
| Share of profit/loss of companies accounted for under the equity method (20) |
46,252 | 46,233 |
| Other operating income (8) |
105,548 | 101,818 |
| Cost of materials and other related production services (9) |
-2,251,409 | -2,060,827 |
| Staff expense (10) |
-874,068 | -807,638 |
| Other operating expenses (12) |
-256,812 | -253,870 |
| EBITDA | 187,338 | 165,942 |
| Depreciation, amortisation and impairment expense (11) |
-87,283 | -78,172 |
| EBIT | 100,055 | 87,770 |
| Income from financial investments and other current financial assets (13) |
15,320 | 18,968 |
| Finance costs (14) |
-24,307 | -25,625 |
| EBT | 91,068 | 81,113 |
| Income tax expense (15) |
-24,242 | -20,069 |
| Profit for the period, total | 66,826 | 61,044 |
| of which attributable to shareholders of the parent | 63,880 | 57,711 |
| of which attributable to holders of profit-participation rights | 2,664 | 3,200 |
| of which attributable to non-controlling interests | 282 | 133 |
| Basic (diluted) earnings per share, total (in EUR) (16) |
2.23 | 2.02 |
| in EUR thousand | Notes | 2016 | 2015 |
|---|---|---|---|
| Profit for the period | 66,826 | 61,044 | |
| Other comprehensive income: | |||
| Gains/losses from revaluation of property, plant and equipment | (18) | 492 | - |
| Remeasurement from benefit obligations | (34) | -6,987 | -1,437 |
| Income tax expense (income) on other comprehensive income | 1,603 | 374 | |
| Other comprehensive income which cannot be reclassified to profit or loss (non-recyclable) | -4,892 | -1,063 | |
| Exchange differences | -832 | -20 | |
| Losses/gains from fair value measurement of securities | 497 | -1,292 | |
| Losses/gains from cash flow hedges | |||
| in the year under review | -169 | -1,075 | |
| reclassified into profit or loss | 371 | - | |
| Income tax expense (income) on other comprehensive income | -175 | 592 | |
| Other comprehensive income which can subsequently be reclassified to profit or loss | |||
| (recyclable) | -308 | -1,795 | |
| Other comprehensive income | -5,200 | -2,858 | |
| Total comprehensive income | 61,626 | 58,186 | |
| of which: attributable to non-controlling interests | 276 | 146 | |
| Share attributable to shareholders of the parent and holders of profit-participation rights | 61,350 | 58,040 | |
| of which: attributable to holders of profit-participation rights | 2,664 | 3,200 | |
| Share attributable to shareholders of the parent | 58,686 | 54,840 |
| in EUR thousand Notes (42) |
2016 | 2015 |
|---|---|---|
| Profit for the period | 66,826 | 61,044 |
| Depreciation, impairment and reversals of impairment on fixed assets and financial | ||
| assets | 88,485 | 82,149 |
| Interest income/expense | 11,718 | 9,347 |
| Income from companies accounted for under the equity method | -12,735 | -14,161 |
| Dividends from companies accounted for under the equity method | 6,483 | 7,661 |
| Losses/profits from the disposal of fixed assets | -15,485 | 48 |
| Decrease in long-term provisions | -2,951 | -11,914 |
| Deferred income tax | 13,447 | 11,166 |
| Operating cash flow | 155,788 | 145,340 |
| Decrease in short-term provisions | -2,444 | -10,393 |
| Increase in tax provisions | 5,056 | 4,507 |
| Increase/decrease in inventories | -206 | 3,254 |
| Increase/decrease in receivables | -138,542 | 79,749 |
| Increase/decrease in payables (excluding banks) | 41,987 | -15,920 |
| Interest received | 12,119 | 11,356 |
| Interest paid | -20,810 | -22,279 |
| Other non-cash transactions | 3,155 | -2,123 |
| Cash flow from operating activities Proceeds from the disposal of intangible assets |
56,103 | 193,491 |
| Proceeds from sale of property, plant and equipment and | 76 | 61 |
| disposal of investment property | 29,541 | 23,875 |
| Proceeds from financial investments | 49,832 | - |
| Proceeds from sale of financial assets | 2,500 | 22,034 |
| Proceeds from repayment of loans | 155 | 109,701 |
| Investments in intangible assets | -5,833 | -5,942 |
| Investments in property, plant and equipment and investment property | -100,775 | -87,098 |
| Investments in financial assets | -15,482 | -3,201 |
| Investments in loans | -22,251 | -385 |
| Payouts for financial investments | -24,832 | -74,578 |
| Proceeds from the sale of consolidated companies | 181 | 9,464 |
| Payouts for the purchase of subsidiaries less cash and cash equivalents | -21,753 | -15,350 |
| Cash flow from investing activities | -108,641 | -21,419 |
| Dividends | -47,637 | -23,063 |
| Payouts to non-controlling interests | -354 | -5,359 |
| Proceeds from scrip dividend | 10,230 | - |
| Proceeds from Schuldscheindarlehen | 41,065 | 185,500 |
| Repayment of Schuldscheindarlehen | -27,000 | - |
| Repayment of loans | -50,767 | -82,569 |
| Payouts for the purchase of treasury shares | - | -12,010 |
| Obtaining loans and other financing | 15,630 | 17,390 |
| Redeeming loans and other financing | -57,173 | -79,681 |
| Hybrid capital | - | 8,298 |
| Cash flow from financing activities | -116,006 | 8,506 |
| Cash flow from operating activities | 56,103 | 193,491 |
| Cash flow from investing activities | -108,641 | -21,419 |
| Cash flow from financing activities | -116,006 | 8,506 |
| Change to cash and cash equivalents | -168,544 | 180,578 |
| Cash and cash equivalents at 1 Jan | 647,243 | 465,617 |
| Currency differences | -2,269 | 1,048 |
| Changes to cash and cash equivalents resulting from | ||
| changes to the consolidated group | - | - |
| Cash and cash equivalents at 31 Dec | 476,430 | 647,243 |
| Tax paid | 4,958 | 4,385 |
| in EUR thousand | Notes | 31.12.2016 | 31.12.2015 |
|---|---|---|---|
| Assets | |||
| Non-current assets | |||
| Intangible assets | (17) | 62,597 | 63,535 |
| Property, plant and equipment | (18) | 521,118 | 467,452 |
| Investment property | (19) | 43,453 | 33,574 |
| Shareholdings in companies accounted for under the equity method | (20) | 43,286 | 38,365 |
| Loans | (21) | 23,157 | 1,061 |
| Other financial assets | (22) | 89,912 | 89,617 |
| Other non-current financial assets | (25) | 7,638 | 13,308 |
| Deferred tax assets | (29) | 8,528 | 8,959 |
| 799,689 | 715,871 | ||
| Current assets | |||
| Inventories | (23) | 73,274 | 71,505 |
| Trade receivables | (24) | 930,029 | 751,855 |
| Other financial assets | (25) | 70,999 | 105,614 |
| Other receivables and current assets | (26) | 6,019 | 7,992 |
| Cash and cash equivalents | (27) | 476,430 | 647,243 |
| Assets held for sale | (28) | 4,024 | 3,917 |
| 1,560,775 | 1,588,126 | ||
| Total assets | 2,360,464 | 2,303,997 | |
| Equity and liabilities | |||
| Equity | |||
| Share capital | (30) | 29,095 | 29,095 |
| Capital reserves | (31) | 251,287 | 249,014 |
| Hybrid capital | (32) | 25,303 | 25,303 |
| Other reserves | (31) | 89,335 | 65,696 |
| Equity attributable to shareholders of parent | 395,020 | 369,108 | |
| Equity from profit-participation rights | (32) | 42,624 | 43,160 |
| Non-controlling interests | (33) | 3,228 | -150 |
| 440,872 | 412,118 | ||
| Non-current liabilities | |||
| Bonds and Schuldscheindarlehen | (35) | 300,662 | 290,848 |
| Provisions | (34) | 132,864 | 124,685 |
| Non-current financial liabilities | (36) | 78,463 | 101,923 |
| Other non-current financial liabilities | (38) | 3,176 | 1,890 |
| Deferred tax liabilities | (29) | 45,947 | 32,309 |
| 561,112 | 551,655 | ||
| Current liabilities | |||
| Bonds | (35) | - | 45,852 |
| Provisions | (34) | 120,058 | 121,646 |
| Current financial liabilities | (36) | 43,993 | 49,047 |
| Trade payables | (37) | 785,630 | 631,713 |
| Other current financial liabilities | (38) | 19,232 | 34,970 |
| Other current liabilities | (39) | 368,933 | 441,017 |
| Tax payables | 20,634 | 15,979 | |
| 1,358,480 | 1,340,224 | ||
| Total equity and liabilities | 2,360,464 | 2,303,997 | |
| in EUR thousand | Notes (30–33) | Share capital | Capital reserves | Revaluation reserve |
from benefit obligations |
translation reserves |
|---|---|---|---|---|---|---|
| Balance at 1 Jan 2015 | 29,095 | 249,014 | 14,425 | -24,477 | 3,517 | |
| Total profit/loss for the period | - | - | - | - | - | |
| Other comprehensive income | - | - | -1,008 | -1,063 | -327 | |
| Total comprehensive income | - | - | -1,008 | -1,063 | -327 | |
| Dividend payout | - | - | - | - | - | |
| Hybrid capital | - | - | - | - | - | |
| Income tax on interest for holders of mezzanine capital |
- | - | - | - | - | |
| Treasury shares purchased | - | - | - | - | - | |
| Changes to the consolidated group/ acquisition of non-controlling interests |
- | - | - | - | - | |
| Balance at 31 Dec 2015 | 29,095 | 249,014 | 13,417 | -25,540 | 3,190 | |
| Total profit/loss for the period | - | - | - | - | - | |
| Other comprehensive income | - | - | -650 | -5,227 | -1,034 | |
| Total comprehensive income | - | - | -650 | -5,227 | -1,034 | |
| Dividend payout | - | - | - | - | - | |
| Income tax on interest for holders of hybrid/mezzanine capital |
- | - | - | - | - | |
| Proceeds from treasury shares in the course of scrip dividend |
2,273 | - | - | - | ||
| Changes to the consolidated group/ acquisition of non-controlling interests |
- | - | - | - | - | |
| Balance at 31 Dec 2016 | 29,095 | 251,287 | 12,767 | -30,767 | 2,156 |
| Non-controlling interests |
Profit-partici pation rights |
Equity attributable to equity holders of the parent |
Retained earnings and non-retained profit |
Hybrid capital | Reserve for cash flow hedges |
Total debt securi ties available for sale - fair value reserve |
|---|---|---|---|---|---|---|
| 871 385,171 |
44,160 | 340,140 | 51,092 | 17,150 | - | 324 |
| 133 61,044 |
3,200 | 57,711 | 56,168 | 1,543 | - | - |
| 13 -2,858 |
- | -2,871 | 1,302 | - | -806 | -969 |
| 146 58,186 |
3,200 | 54,840 | 57,470 | 1,543 | -806 | -969 |
| -1,159 -28,422 |
-4,200 | -23,063 | -21,375 | -1,688 | - | - |
| - | - | 8,298 | - | 8,298 | - | - |
| - | - | 875 | 875 | - | - | - |
| - -12,010 |
- | -12,010 | -12,010 | - | - | - |
| -8 | - | 28 | 28 | - | - | - |
| -150 412,118 |
43,160 | 369,108 | 76,080 | 25,303 | -806 | -645 |
| 282 66,826 |
2,664 | 63,880 | 62,192 | 1,688 | - | - |
| -6 -5,200 |
- | -5,194 | 1,193 | - | 151 | 373 |
| 276 61,626 |
2,664 | 58,686 | 63,385 | 1,688 | 151 | 373 |
| -354 -47,991 |
-3,200 | -44,437 | -42,749 | -1,688 | - | - |
| - | - | 1,088 | 1,088 | - | - | - |
| - 10,230 |
- | 10,230 | 7,957 | - | - | - |
| 3,456 | - | 345 | 345 | - | - | - |
| 3,228 440,872 |
42,624 | 395,020 | 106,106 | 25,303 | -655 | -272 |
The PORR Group consists of PORR AG and its subsidiaries, hereafter referred to as the "Group". 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 a whole range of building construction activities.
The consolidated financial statements have been prepared pursuant to Section 245a of the Austrian Commercial Code in accordance with the International Financial Reporting Standards (IFRS) issued by the International Accounting Standards Board (IASB) and endorsed by the European Union and in accordance with the interpretations issued by the International Financial Reporting Interpretations Committee (IFRIC).
The reporting currency is the Euro, which is also the functional currency of PORR AG and of the majority of the subsidiaries included in the consolidated financial statements. Results preceded by the abbreviation TEUR are in euro thousand.
The consolidated financial statements were prepared with the closing date of 31 December and relate to the fiscal year from 1 January to 31 December. The majority of numerical entries are rounded up or down to the nearest thousand (TEUR) and may result in rounding differences.
In addition to PORR AG, 64 (previous year: 56) domestic subsidiaries and 57 (previous year: 55) foreign subsidiaries are included in the consolidated financial statements. For one company the Group only holds 49% of the shares, however, the remainder of the shares are held in trust for PORR and the company is therefore included in the consolidated group. Seven (previous year: two) companies are no longer included in the consolidated group, whereby two companies were eliminated through intragroup mergers.
Two companies were liquidated and three companies were sold. The purchase price of TEUR 500 was settled in cash.
The assets and liabilities where control was lost break down as follows:
| in EUR thousand | 2016 |
|---|---|
| Non-current assets | |
| Intangible assets | 4 |
| Property, plant and equipment | 2,864 |
| Other financial assets | 162 |
| Deferred tax assets | 222 |
| Current assets | |
| Trade receivables | 965 |
| Other current financial assets | 3 |
| Other current receivables and assets | 53 |
| Cash and cash equivalents | 319 |
| Non-current liabilities | |
| Provisions | -48 |
| Other financial liabilities | -2,156 |
| Deferred tax payables | -62 |
| Current liabilities | |
| Provisions | -794 |
| Trade payables | -327 |
| Other current financial liabilities | -1,756 |
| Other current liabilities | -58 |
Gains on sale amounting to TEUR 617 were recognised in income/expenses from financial assets.
In these consolidated financial statements the following eight companies were consolidated for the first time:
| Because of new foundations and first-time consolidation | Date of initial consolidation |
|---|---|
| PNC Sverige AB | 4.4.2016 |
| Loftesnesbrui PORR – AURSTAD ANS | 1.1.2016 |
| ÖBA Betondecken Ausbau Deutschland GmbH | 11.8.2016 |
| Porr Umwelttechnik Deutschland GmbH | 5.8.2016 |
| PORR SLOVAKIA LTD. | 3.5.2016 |
No significant assets and liabilities were included as a result of these consolidations.
| Because of acquisitions | Date of initial consolidation |
|---|---|
| PORREAL Polska Spolka z ograniczona odpowiedzialnoscia | 31.3.2016 |
| PORREAL Česko s.r.o. (formerly FMB Facility Management Bohemia, s.r.o.) | 31.3.2016 |
| PORR Bauindustrie GmbH (formerly Zenit Bauplanungs- und Errichtungsgesellschaft m.b.H.) | 9.6.2016 |
| BPP Beteiligungs GmbH | 11.4.2016 |
| bpp Bautechnik GmbH | 11.4.2016 |
| Altlastensanierung und Abraumdeponie Langes Feld Gesellschaft m.b.H. | 21.11.2016 |
| PKM – Muldenzentrale GmbH | 22.11.2016 |
| ABW Abbruch, Boden- und Wasserreinigungs-Gesellschaft m.b.H. | 22.11.2016 |
| KOLLER TRANSPORTE–KIES–ERDBAU GMBH | 22.11.2016 |
| Johann Koller Deponiebetriebsges.m.b.H. | 22.11.2016 |
| GETINA Versicherungsvermittlung GmbH | 22.11.2016 |
| GHS Umwelltechnik-GmbH | 28.10.2016 |
A total of TEUR 985 was used to purchase a 100% stake in Spolka z ograniczona odpowiedzialnoscia. The purchase price was settled in cash. Furthermore, there is an earn-out clause that is dependent on adhering to the budget. In the course of determining the purchase price, this was valued at TUR 0, as the Group assumes that the budget will be adhered to. The earn-out has no maximum cap and has a floor of TEUR 0. The company operates in the business areas of Property Management, Facility Management and Real Estate Consulting. The purchase price was provisionally allocated to the Group's liabilities and assets as follows in accordance with IFRS 3.45:
| in EUR thousand | 2016 |
|---|---|
| Non-current assets | |
| Intangible assets | 41 |
| Property, plant and equipment | 23 |
| Deferred tax assets | 11 |
| Current assets | |
| Inventories | 2 |
| Trade receivables | 623 |
| Other current financial assets | 2 |
| Cash and cash equivalents | 627 |
| Non-current liabilities | |
| Provisions | -5 |
| Current liabilities | |
| Trade payables | -238 |
| Other current financial liabilities | -66 |
| Other current liabilities | -35 |
| Purchase price | 985 |
A total of TEUR 356 was used to purchase a 100% stake in PORREAL Česko s.r.o. The purchase price was settled in cash. The company operates in the business areas of Property Management, Facility Management and Real Estate Consulting. The purchase price was provisionally allocated to the Group's liabilities and assets as follows in accordance with IFRS 3.45:
| in EUR thousand | 2016 |
|---|---|
| Non-current assets | |
| Intangible assets | 191 |
| Deferred tax assets | 8 |
| Current assets | |
| Trade receivables | 135 |
| Other current financial assets | 5 |
| Other receivables and current assets | 46 |
| Cash and cash equivalents | 235 |
| Current liabilities | |
| Provisions | -23 |
| Trade payables | -143 |
| Other current financial liabilities | -31 |
| Other current liabilities | -49 |
| Tax payables | -18 |
| Purchase price | 356 |
The purchase of PORREAL Polska Spolka z ograniczona odpowiedzialnoscia and PORREAL Česko s.r.o. represented related party transactions.
A total of TEUR 50 was used to purchase a 100% stake in PORR Bauindustrie GmbH. The purchase price was settled in cash and provisionally allocated to the Group's liabilities and assets as follows in accordance with IFRS 3.45:
| in EUR thousand | 2016 |
|---|---|
| Non-current assets | |
| Intangible assets | 22 |
| Other non-current financial assets | 3,384 |
| Current assets | |
| Other receivables and current assets | 2 |
| Cash and cash equivalents | 13 |
| Current liabilities | |
| Trade payables | -2 |
| Other current financial liabilities | -3,369 |
| Purchase price | 50 |
A total of TEUR 3,805 was used to purchase a 100% stake in BPP Beteiligungs GmbH and bpp Bautechnik GmbH. TEUR 2,205 of the purchase price was settled in cash. The company operates as a construction company, carrying out construction work of every kind in building construction and civil engineering in the fields of concrete repair and refurbishment, coating, injection, and insulation for heat, cold, sound and fire. The purchase price was provisionally allocated to the Group's liabilities and assets as follows in accordance with IFRS 3.45:
| in EUR thousand | 2016 |
|---|---|
| Non-current assets | |
| Intangible assets | 2,047 |
| Property, plant and equipment | 1,342 |
| Deferred tax assets | 105 |
| Current assets | |
| Inventories | 328 |
| Trade receivables | 1,662 |
| Other current financial assets | 160 |
| Cash and cash equivalents | 120 |
| Non-current liabilities | |
| Provisions | -159 |
| Other financial liabilities | -530 |
| Deferred tax payables | -148 |
| Current liabilities | |
| Financial liabilities | -92 |
| Trade payables | -312 |
| Other current financial liabilities | -352 |
| Other current liabilities | -347 |
| Tax payables | -19 |
| Purchase price | 3,805 |
A total of TEUR 8,224 was used to purchase a further 63.78% in ABW Abbruch, Boden- und Wasserreinigungs-Ges.m.b.H and its subisidaries PKM Muldenzentrale GmbH, KOLLER TRANSPORT–KIES–ERDBAU GMBH, Johann Koller Deponiebetriebsges.m.b.H. and GETINA Versicherungsvermittlung GmbH. The purchase price was settled in cash. The corporate group operates on the one hand in the clean-up of contaminated demolition and soil materials through chemical-physical treatment, as well as in sorting waste and the fields of earthworks, gravel extraction, landfill and transport. The purchase price was provisionally allocated to the Group's liabilities and assets as follows in accordance with IFRS 3.45:
| in EUR thousand | 2016 |
|---|---|
| Non-current assets | |
| Intangible assets | 789 |
| Property, plant and equipment | 17,760 |
| Other non-current financial assets | 10 |
| Deferred tax assets | 2,096 |
| Current assets | |
| Inventories | 1,233 |
| Trade receivables | 7,939 |
| Other current financial assets | 6,386 |
| Other receivables and current assets | 177 |
| Cash and cash equivalents | 385 |
| Non-current liabilities | |
| Provisions | -957 |
| Deferred tax payables | -2,032 |
| Current liabilities | |
| Trade payables | -8,295 |
| Other current financial liabilities | -11,685 |
| Other current liabilities | -793 |
| Fair value of the equity interest already held | -4,669 |
| Non-controlling interests | -120 |
| Purchase price | 8,224 |
The acquisitions led to the recognition of goodwill as the purchase prices include the benefits from synergic effects.
A total of TEUR 11,209 was used to purchase an additional 44.89% stake in Altlastensanierung und Abraumdeponie Langes Feld Gesellschaft m.b.H. The purchase price was settled in cash. The company operates in the design, construction, refurbishment, operation and recultivation of the Langes Feld landfill, as well as the development and recovery of landfill sites and waste recycling in Austria. The purchase price was provisionally allocated to the Group's liabilities and assets as follows in accordance with IFRS 3.45:
| in EUR thousand | 2016 |
|---|---|
| Non-current assets | |
| Property, plant and equipment | 19,752 |
| Investment property | 9,000 |
| Deferred tax assets | 786 |
| Current assets | |
| Trade receivables | 2,631 |
| Other current financial assets | 3,249 |
| Cash and cash equivalents | 187 |
| Non-current liabilities | |
| Financial liabilities | -670 |
| Deferred tax payables | -2,480 |
| Current liabilities | |
| Provisions | -1,627 |
| Trade payables | -2,132 |
| Other current financial liabilities | -2,554 |
| Other current liabilities | -595 |
| Tax payables | -577 |
| Fair value of the equity interest already held | -10,362 |
| Non-controlling interests | -3,399 |
| Purchase price | 11,209 |
The initial consolidation of the companies contributed TEUR 2,881 to earnings before taxes for the period and TEUR 13,104 to revenue. The fair value measurement of the equity interest already held led to earnings of TEUR 3,245 and is recognised in earnings from companies accounted for under the equity method.
Assuming a notional date of first-time consolidation of 1 January 2016, Group revenue would increase by TEUR 65,704 and earnings before taxes by TEUR 11,942.
Furthermore, 43 (previous year: 41) domestic and 23 (previous year: 13) foreign associates and joint ventures were valued using the equity method. The consolidated subsidiaries and companies accounted for under the equity method are shown in the list of shareholdings (see appendix). Companies which are of minor significance for the consolidated financial statements are not included. 13 (previous year: 18) subsidiaries and 27 (previous year: 29) shareholdings in associates and joint ventures were therefore not included in the consolidation or accounted for under the equity method; this primarily relates to general partner companies.
IFRS 14 "Regulatory Deferral Accounts" permits an entity which is a first-time adopter of IFRSs to continue to account, with some limited changes, for regulatory deferral account balances in accordance with its previous GAAP, both on initial adoption of IFRS and in subsequent financial statements. Regulatory deferral account balances, and movements in them, are presented separately in the statement of financial position and statement of profit or loss and other comprehensive income, and specific disclosures are required. IFRS 14 was issued in January 2014 and applies to reporting periods beginning on or after 1 January 2016; however, the EU endorsement is still pending and therefore the standard is not yet applied in the EU.
The amendment clarifies how contributions from employees or third parties which are linked to service should be attributed to periods of service and also permits a practical expedient if the amount of the contributions is independent of the number of years of service. The amendment applies to fiscal years beginning on or after 1 February 2015.
The Annual Improvements to IFRSs 2010–2012 Cycle contains a number of minor amendments to different standards. The amendments apply to fiscal years beginning on or after 1 February 2015. The standards affected by these amendments include: IFRS 2 Share-based Payment; IFRS 3 Business Combinations; IFRS 8 Operating Segments; IFRS 13 Fair Value Measurement; IAS 16 Property, Plant and Equipment; IAS 24 Related Party Disclosures; and IAS 38 Intangible Assets.
The amendments relate to accounting for interests in joint ventures and joint operations. This amendment will involve the inclusion of new guidance in IFRS 11 on accounting for acquisitions on interests in joint operations which constitute a business. The amendments apply to fiscal years beginning on or after 1 January 2016.
The amendments to IAS 16 "Property, Plant and Equipment" and IAS 38 "Intangible Assets" clarify that a depreciation method that is based on revenue that is generated by an activity that includes the use of an asset is not appropriate because such methods reflect factors other than the pattern of consumption of an asset's expected future economic benefits. The amendments also specify that a revenue-based amortisation method for determining the future economic benefits of intangible assets is generally inappropriate, whereby this presumption can be overcome under specific limited circumstances. The amendments apply to fiscal years beginning on or after 1 January 2016.
The amendments to IAS 16 "Property, Plant and Equipment" and IAS 41 "Agriculture" relate to the financial reporting for bearer plants. Bearer plants, which are used solely to grow produce, have been brought into the scope of IAS 16. This means that they can be accounted for in the same way as property, plant and equipment. The amendments apply to fiscal years beginning on or after 1 January 2016.
The minor amendments to IAS 27 "Separate Financial Statements" allow entities to use the equity method as an accounting option for investments in subsidiaries, joint ventures and companies accounted for under the equity method in an entity's separate financial statements. The amendments apply to fiscal years beginning on or after 1 January 2016.
The Annual Improvements to IFRSs 2012–2014 Cycle involves a range of small amendments to various standards. Some of the amendments relate to:
All of the amendments apply to fiscal years beginning on or after 1 January 2016.
In December 2014 the IASB issued amendments to IAS 1 "Presentation of Financial Statements". The amendments primarily relate to the following points:
The amendments apply to reporting periods beginning on or after 1 January 2016.
The IASB issued amendments to IFRS 10 "Consolidated Financial Statements", IFRS 12 "Disclosure of Interests in Other Entities" and IAS 28 "Investments in Companies accounted for under the equity method and Joint Ventures" with regard to applying the consolidation exception for investment entities. The amendments serve to clarify three issues related to the consolidation exception for investment entities whose subsidiaries are measured at fair value.
The amendments apply to reporting periods beginning on or after 1 January 2016.
The first-time application of the standards and interpretations and the amendments to the standards did not have any impact on the consolidated financial statements.
The following standards and interpretations had already been published at the time that these consolidated financial statements were being prepared; they were not mandatory in the current fiscal year and the option to apply them early was not applied.
The IASB published the final version of the standard on 24 July 2014 in the course of completing the various phases of its comprehensive financial instruments project. This means that IAS 39 Financial Instruments and Recognition can now be fully replaced with the application of IFRS 9. The most recently published version of IFRS 9 replaces all earlier versions of the standard. The amendment applies to reporting periods beginning on or after 1 January 2018. In future the Group will probably use the simplified model pursuant to IFRS 9.5.5.15 et seq. to determine impairment of specific financial instruments. This model provides for the exclusive use of Levels 2 and 3. This means that a risk provision in the amount of the expected loss over the remaining term – lifetime expected loss – will be formed for the financial instrument upon inception. Loans to associates or joint ventures, issued in the course of project development, shall in future be valued pursuant to the 12-month Expected Loss Model or transferred to the Lifetime Expected Loss Model should there be a significant worsening in the credit risk. The Group is currently evaluating the impact of the amendment on the consolidated financial statements.
IFRS 15 specifies how and when an IFRS reporter will recognise revenue as well as requiring such entities to provide users of financial statements with more informative, relevant disclosures. The standard provides a single, principles-based, five-step model to be applied to all contracts with customers. IFRS 15 was issued in May 2014 and applies to reporting periods beginning on or after 1 January 2018.
The Group expects only limited impacts overall on revenue realisation and the statement of financial position from the firsttime application of IFRS 15. Analyses carried out to date show that the majority of construction contracts can be recognised in line with period-based realisation of revenue and that this will therefore not lead to a discrepancy in revenue realisation. In individual cases an assessment will need to be made as to whether contracts contain separable performance obligations and/ or whether multiple contracts need to be brought together. Changes in disclosures in the statement of financial position could result from the application of down-payment requirements and costs for acquiring the contract. No changes in relation to revenue realisation are expected from other services. Furthermore, additional disclosures in the notes will be required.
The standard specifies how to recognise, measure, present and disclose leases. IFRS 16 replaces the previous standard IAS 17 and three interpretations related to leases. The standard provides a single lessee accounting model, requiring lessees to recognise assets and liabilities for all leases unless the lease term is 12 months or less or the underlying asset has a low value (option to choose). The standard was published in January 2016 and its application will be obligatory for reporting periods beginning on or after 1 January 2019. The Group is currently evaluating the impact of the standard on the consolidated financial statements.
The goal of this interpretation is to clarify the accounting for transactions that include the receipt or payment of advance consideration in a foreign currency. The amendments apply to reporting periods beginning on or after 1 January 2018.
The amendments address an inconsistency between the requirements of IFRS 10 and IAS 28. They clarify how to deal with gains and losses resulting from a transaction between an investor and its associate or joint venture. Gains or losses from downstream transactions involving assets that constitute a business must be recognised in full by the investor. Transactions involving assets which do not constitute a business require only partial recognition of the gain or loss. The application of the amendments has been postponed for an indefinite period. The Group is currently evaluating the impact of the amendments on the consolidated financial statements.
The amendments to IAS 12 aim in particular to clarify how to account for deferred tax assets for unrealised losses from assets measured at fair value in order to address diversity in practice. The amendments apply to reporting periods beginning on or after 1 January 2017. The application is not likely to have any impact on the consolidated financial statements.
The amendments come with the objective that an entity shall provide disclosures that enable users of financial statements to evaluate changes in liabilities arising from financing activities. The amendments apply to reporting periods beginning on or after 1 January 2017.
The Annual Improvements to IFRSs 2014–2016 Cycle involves a range of small amendments to various standards. Some of the amendments relate to:
The amendments address three of the five topics identified (identifying performance obligations, principal versus agent considerations, and licensing) and aim to provide some transition relief for modified contracts and completed contracts.
The amendments apply to reporting periods beginning on or after 1 January 2018.
The amendments address individual questions related to accounting for cash-settled share-based payment transactions. The most important amendment or addition is that IFRS 2 now contains specifications relating to determining the fair value of liabilities resulting from share-based payment transactions. The amendments apply to reporting periods beginning on or after 1 January 2018.
The amendments aim to limit the impacts from the different effective dates of IFRS 9 and the follow-up standard to IFRS 4, particularly for entities with comprehensive insurance activities. Two options were introduced that can be used by entities that issue insurance contracts as long as specific conditions are fulfilled: the overlay approach and the deferral approach. The amendments apply to reporting periods beginning on or after 1 January 2018.
The amendments serve to clarify the guidance on transfers to, or from, investment properties. More specifically, the question was whether a property under construction or development that was previously classified as inventory could be transferred to investment property when there was an evident change in use. The amendments apply to reporting periods beginning on or after 1 January 2018.
Business combinations are accounted for in accordance with the acquisition method. According to this method, the assets acquired and liabilities assumed as well as contingent liabilities are measured on the acquisition date at their fair values attributable at this date. Where the difference between the acquisition costs and the attributable proportion of net assets valued at fair value shows an excess, this item is shown as goodwill, which is not written off or amortised in regular amounts but is subjected to an annual test for impairment. Where any difference relates to a bargain purchase, its effect on net income is recognised immediately and shown in other operating income.
All accounts receivable and payable between consolidated companies are eliminated during debt consolidation. Intragroup income and expense is offset within the framework of consolidation of income and expense. Intragroup profits or losses from intragroup deliveries are eliminated if these relate to significant amounts and the relevant assets are still recognised in the consolidated financial statements.
Shares in net assets of subsidiaries not attributable to PORR AG are shown separately as part of equity capital under the item "non-controlling interests".
The annual financial statements of all companies included in the consolidated financial statements are prepared according to standard accounting and measurement methods.
Historic acquisition costs form the basis for the measurement of intangible assets and property, plant and equipment (except for real estate) and for loans, inventories, accounts receivable from billed orders and liabilities.
The fair value at the end of the reporting period is the basis for the measurement in respect of securities available for sale, derivative financial instruments and investment property; the fair value at the date of revaluation is the basis for measurement for real estate used by the Group.
Accounts receivable for construction contracts which have not been completed, which are included under trade receivables, reflect the respective proportion of revenue corresponding to the percentage of completion at the end of the reporting period less any payments already made by the customer.
Currency translation: The companies included in the consolidated financial statements prepare their annual financial statements in their respective functional currencies, whereby the functional currency is the relevant currency for the commercial activities of the company concerned. The functional currency for all of the companies included is the currency of the country in which the company concerned is domiciled.
Items in the consolidated statement of financial position are translated at the mean rate of exchange at the end of the reporting period and income statement items are translated at the annual mean rate of exchange for the fiscal year (as an arithmetic mean of all end-of-month quotations). Differences resulting from the currency translation are reported in other comprehensive income. These translation differences are recognised in the income statement at the date of disposal of the business activities.
In the event of company acquisitions, adjustments of the carrying amounts of the acquired assets and assumed liabilities to the fair value at the date of acquisition or, if applicable, goodwill, are treated as assets or liabilities of the acquired subsidiary and are, accordingly, subject to currency translation.
Exchange gains or losses on transactions undertaken by companies included in the consolidation in a currency other than the functional currency are recognised in profit or loss for the period. Monetary items not denominated in the functional currency held by companies included in the consolidation are translated at the mean rate ruling at the end of the reporting period. Exchange gains or losses resulting from this translation are also recognised in profit or loss.
Intangible assets are capitalised at acquisition cost and amortisation is recognised on a straight-line basis over the probable useful life.
| in % | Rates of amortisation 2016/2015 |
|---|---|
| Rental rights | 2.0 to 50.0 |
| Licences, software | 1.0 to 50.0 |
| Concessions | 5.0 to 50.0 |
| Mining rights | Depends on assets |
| Customer relations | 14.3 |
The amortisation apportionable to the fiscal year is shown in the income statement under the item "Depreciation, amortisation and impairment expense".
If impairment is established, the relevant intangible assets are recognised at the recoverable amount, which is the fair value less costs of sale or the value in use, if higher. If the impairment ceases to apply, a reversal of the impairment is performed equivalent to the carrying amount, which would have been determined had the impairment loss not been accrued.
Goodwill is recorded as an asset. In order to assess any impairment demand, goodwill of the cash-generating unit or groups of cash-generating units will be assigned, which benefit from the synergies of the Group amalgamation. This cash-generating unit or groups of cash-generating units are tested once a year for impairment, as well as at any other time where circumstances exist that indicate there may be possible impairment.
Property, plant and equipment, with the exception of real estate, is valued at cost, including incidental costs less reductions in the acquisition costs, or at manufacturing cost, and is subject to the previously accumulated and regularly applied straight-line depreciation during the year under review, whereby the following rates of depreciation are applied:
| in % | Rates of depreciation 2016/2015 |
|---|---|
| Technical plants and machinery | 10.0 to 50.0 |
| Other plants, factory and business equipment | 10.0 to 50.0 |
The depreciation rates are based on the probable useful life of the facilities. If impairment is established, the relevant tangible assets are impaired to the recoverable amount, which is the fair value less costs of sale or the value in use, if higher. If the impairment ceases to apply, an impairment reversal is recognised equivalent to the carrying amount, which would have been determined had the impairment expense not been accrued. Fundamental rebuilding work is recognised in the statement of financial position, while ongoing maintenance work, repairs and minor rebuilding work are recognised in profit or loss at the time they arose.
Real estate used for operational purposes is valued according to the revaluation method pursuant to IAS 16.31. External opinions or assessments from internal experts are used as the basis for determining fair values. The external assessments are held at periodic intervals of maximum five years; in the interim period assessments from internal experts are used to update the expert opinions. Revaluations are performed so regularly that the carrying amounts do not deviate significantly from the fair values attributable at the end of the reporting period. The date for the revaluation for the end of the reporting period generally falls in the fourth quarter of the reporting year. The carrying amount is adjusted to the respective fair value by using a revaluation reserve in other comprehensive income. The revaluation reserve is reduced by the applicable deferred tax liability. Regular depreciation of revalued buildings is carried out according to the straight-line method, where the depreciation rates lie essentially between 1.0% and 4.0% (previous year: between 1.0% and 4.0%), and is recognised in the income statement. On a subsequent sale or decommissioning of revalued land or buildings, the amount recorded in the revaluation reserve in respect of the relevant plot of land or building is transferred to retained earnings.
Plants under construction, including buildings under construction, which are to be used for operational purposes or whose type of use has not yet been established, are accounted for at acquisition cost or manufacturing cost less impairment. Depreciation or impairment of these assets commences upon their completion or attainment of operational status.
Investment property is real estate that is held for the purpose of obtaining rental income and/or for the purpose of its rise in value. This includes office and commercial premises, residential buildings and unimproved land. These are recognised at their fair values. Gains or losses from changes in value are reflected in profit or loss for the period in which the change in value occurred.
Fair value is determined using recognised valuation methods, namely as derived from the current market price, as derived from a price recently paid in a transaction with similar property, or – usually in cases where there is a lack of suitable market data – as derived from discounting estimated future cash flows, which are commonly generated on the market by this type of property under a rental agreement.
Leases are classified as finance leases when, according to the lease contract, essentially all the risks and rewards relating to the ownership are transferred to the lessee. All other leases are classified as operating leases.
Where the Group is the lessor, the only lease contracts applicable are operating leases. The rental income from these contracts is recognised in net income on a straight-line basis over the term of the corresponding lease.
Assets held under finance leases are recorded as Group assets at their fair values or at the present value of the minimum lease payments if this is lower, at the beginning of the lease. The minimum lease payments are those amounts payable during the non-terminable term of the lease, including a guaranteed residual value. The corresponding liability owed to the lessor is recorded in the statement of financial position as obligations under finance leases. The lease payments are apportioned between interest paid and the reduction of the lease obligation in such a way as to achieve a constant rate of interest on the remaining liability. Interest expense is recognised in the income statement.
Rental payments on operating leases are recognised in profit or loss for the period on a straight-line basis over the term of the corresponding lease.
Shares in associates and in joint companies are accounted for at acquisition cost, which is apportioned between the pro rata net assets acquired at fair value and, if applicable, goodwill. The carrying amount is increased or decreased annually by the proportionate annual profit or loss, dividends received and other changes to equity capital. Goodwill is not subject to planned amortisation, rather it is assessed for impairment as a part of the relevant shareholding when circumstances exist that indicate there may be possible impairment.
Shares in consortiums (joint ventures): Group shares in profits and losses from consortiums classified as joint ventures are shown in the consolidated income statement under as profit/loss from companies accounted for under the equity method. Group revenues from goods and services to consortiums are shown in the consolidated income statement under revenue. Capital paid into a consortium is entered under trade receivables (see note 24), together with profit shares and trade receivables for the relevant consortium and after deductions for withdrawals and general losses. If there is on balance a passive entry, this is included under trade payables (see note 37).
Shares in joint operations: The consolidated financial statements recognise the proportionate assets and liabilities and the proportionate expenses and income attributable to the PORR Group.
Loans are measured at amortised cost according to the effective interest method, less general allowances (value adjustments) due to impairment.
Shares in non-consolidated companies and other shareholdings shown under other financial assets are valued at acquisition cost, as with regard to these stakes and shareholdings, in the absence of listings, there is no stock exchange rate available and reliable fair values cannot be determined for these. If impairment is established, they are written down to the recoverable amount.
Securities available for sale are measured at fair value. Gains or losses from changes to the fair value, with the exception of revaluations due to impairment and gains and losses arising from securities denominated in foreign currencies, are entered into other comprehensive income. In the case of derecognition of these kinds of securities, or if impairment is indicated, the cumulative gain or loss in equity capital will be entered into profit or loss for the period. Interest is calculated by the effective interest method and is recognised in consolidated profit or loss.
The securities classified as held for trading are measured at their fair value. Gains or losses from changes in fair value are recognised in profit or loss.
Impairment of financial assets: At the end of each reporting period an assessment is carried out as to whether there are any indicators that a financial asset has been impaired. An impairment loss is recognised if there is evidence that the expected future cash flows from the asset in question will be reduced because of an event occurring after the initial recognition of that asset. If the impairment loss has decreased in a subsequent period because of an event occurring following its recognition, the impairment loss is reversed by increasing the carrying amount of the asset. In the case of financial assets measured at amortised cost, the maximum amount of any reversal is the amount that would have been recognised as the amortised cost of the financial asset in question if no impairment loss had been recognised.
Raw materials and supplies are valued at the lower of acquisition cost and net realisable value.
Recorded under inventories, land intended for sale is valued at the lower of acquisition cost, manufacturing cost and net realisable value.
Construction contracts are recognised according to the percentage of completion of the contract (POC method). The anticipated revenues from the contracts are shown under revenue according to the respective percentage of completion. The percentage of completion, which is the basis for the amount of the contract revenues shown, is, as a rule, determined according to the ratio of the services supplied compared to the estimated total services at the end of the reporting period. Claims are only recognised when it is likely that the customer will accept them and when they can be reliably measured. Where the result of a construction contract cannot be reliably estimated, the amount of the accumulated contract costs alone shall represent the amount recorded for contract revenues. If it is probable that the total contract costs will exceed the total contract revenues, the expected loss is recognised immediately and in full.
The revenues attributable to the services supplied so far according to the percentage of completion method are, to the extent that they exceed the payments on account made by the customer, shown in the statement of financial position under trade receivables. Amounts by which the payments on account received exceed the revenues attributable to the services supplied so far are shown under other liabilities.
Where construction contracts are executed in consortiums, profits are also recognised using the percentage of completion method.
Receivables are fundamentally recognised using the effective interest method, whereby the carrying amount generally corresponds to the nominal value. Should there be substantial evidence of risks regarding recovery, allowances are set up. Objective indicators suggesting the need for impairment include, for example, a decline in the creditworthiness of the debtor and related payment delays or impending insolvency. The necessary allowances are based on the actual risk of default.
Acquisitions and sales of financial assets common to the market (spot transactions) are shown in the statement of financial position on the settlement date.
Deferred tax items are recognised where there are temporary differences between the values of assets and liabilities in the consolidated financial statements on the one hand and the values for tax purposes on the other hand in the amount of the anticipated future tax expense or tax relief. In addition, a deferred tax asset for future asset advantage resulting from tax loss carryforwards is recognised if there is sufficient certainty of realisation. Temporary differences arising from the first recognition of goodwill constitute exceptions to this comprehensive tax deferral.
The calculation of the deferred tax amount is based on the rate of income tax valid in the country concerned; for Austrian companies this is a tax rate of 25%.
If a Group company purchases treasury shares in PORR AG, the value of the consideration paid, including directly attributable additional costs (net of income tax), will be deducted from the equity of PORR AG until the shares are retired or re-issued. If these shares are subsequently re-issued, the consideration paid (net of deductions for directly attributable additional costs and related income taxes) will be recognised in the equity of PORR AG.
The provisions for severance payments, pensions and anniversary bonuses are determined by the projected unit credit method in accordance with IAS 19, which involves an actuarial assessment being performed by a recognised actuary on each reference date. In the valuation of these provisions for Austria and Germany, an interest rate for accounting purposes of 1.65% p.a. (previous year: 2.25%) was applied with salary increases of 2.5% (previous year: 2.5%). When determining provisions for severance payments and anniversary bonuses for Austria, deductions are made for fluctuations based on statistical data within a range of 0.04% to 10.5% (previous year: 1.1% to 14.2%) and for anniversary bonuses in Germany a range of 0.0% to 10.6% (previous year: 0.0% to 25.0%) was applied When determining provisions for pensions, a pension increase of 2.0% p.a. (previous year: 2.0% p.a.) was applied in Austria and Germany. For Austrian companies the assumed retirement age is the earliest possible retirement age permitted by law following the 2004 pension reform (corridor pension), taking into account all transitional arrangements; for German companies the legal retirement age is used. The life table AVÖ 2008-P – Pagler & Pagler is used for calculating provisions in Austria, while for Germany the life table Richttafeln 2005 G by Klaus Heubeck is applied.
Actuarial gains and losses for severance payments and pensions are recognised in full in other comprehensive income, while anniversary bonuses are under profit or loss for the period. Service costs are under staff expense. Interest paid is recorded under finance costs.
Other provisions take account of all currently discernible risks and contingent liabilities from past events whereby an outflow of resources is judged to be probable. They are recognised with the best estimate of the expenditure required to settle the present obligation if a reliable estimate exists. Provisions related to impending losses and damages and penalties from contracts are recorded in other provisions, in as far as the respective proportional contract values according to the percentage of completion are exceeded.
Financial liabilities are measured at fair value less direct transaction costs when they are initially recognised. If the amount of the repayment is lower or higher, this is written down or up in accordance with the effective interest method.
Derivative financial instruments are recognised at fair value. Gains and losses from changes in market value of forward contracts designated as hedging instruments which should hedge the risk in variability of the cash flow in the functional currency from planned transactions in the foreign currency ("cash flow hedges"), along with other derivative financial instruments which are designated as cash flow hedges, are entered into other comprehensive income, as long as they are allotted to the effective part of the hedge transaction.
Revenue is measured at the fair value of the consideration. Discounts and other subsequent reductions in revenue are deducted from this amount. Sales taxes and other taxes related to the sale are not part of the consideration or revenue. Revenue from the sale of assets is recognised on delivery and transfer of ownership. Revenue from construction contracts is recognised according to the percentage of completion allocated over the period of the contract.
Interest income is defined in accordance with the effective interest method. The effective interest rate is any interest rate where the present value of future cash flow from the financial asset value corresponds to the carrying amount of the asset. Dividend income from financial investments is recognised when legal title arises.
Borrowing costs resulting directly from acquisition or production of qualifying assets, even those whose acquisition or manufacture takes up a considerable time period until the intended use or sale, form part of the cost of the asset and are therefore capitalised. Other borrowing costs are recorded as an expense in the period in which they were incurred.
The following presents significant assumptions related to the future and other key sources of estimation uncertainty which could lead to significant adjustments in the consolidated financial statements for the following fiscal year of results reported:
Provisions for severance and pensions: the valuation of existing pension and severance obligations relies on assumptions and estimates which could have a significant impact on the amounts recognised.
For pension provisions, the following actuarial assumptions were deemed relevant and the following margins were applied: Discount rate +/-0.25%, Pension trend +/-0.25%, Life expectancy +/-1 year.
The sensitivity analysis of life expectancy was carried out on the basis of a shift in life expectancy for the total candidates of the respective plan.
The differences to the values disclosed in the statement of financial position are shown in the tables below as relative deviations:
| Interest +0.25% | Interest -0.25% | |||||||
|---|---|---|---|---|---|---|---|---|
| active | vested | liquid | total | active | vested | liquid | total | |
| Pension DBO | -4.20% | -3.70% | -2.20% | -2.50% | 4.50% | 3.90% | 2.30% | 2.60% |
| Pension trend +0.25% | Pension trend -0.25% | |||||||
| active | vested | liquid | total | active | vested | liquid | total | |
| Pension DBO | 4.50% | 3.90% | 2.30% | 2.60% | -4.20% | -3.70% | -2.20% | -2.50% |
| Life expectancy +1 year | Life expectancy -1 year | |||||||
| active | vested | liquid | total | active | vested | liquid | total | |
| Pension DBO | 3.50% | 3.90% | 6.20% | 5.80% | -3.10% | -3.50% | -5.30% | -5.00% |
For provisions for severance payments, the following actuarial assumptions were deemed relevant and the following margins were applied:
Discount rate +/-0.25%, Salary trend +/-0.25%, Fluctuation +/-0.5% up to 25th year of work, Life expectancy +/-1 year.
The sensitivity analysis of life expectancy was carried out on the basis of a shift in average life expectancy for the total candidates of the respective plan.
The difference to the values disclosed in the statement of financial position is shown in the tables below as relative deviations:
| Interest +0.25% | Interest -0.25% | Salary trend +0.25% | Salary trend -0.25% | |
|---|---|---|---|---|
| Severance DBO | -2.08% | 2.16% | 2.10% | -2.03% |
| Fluctuation +0.5% up to 25th year of work |
Fluctuation -0.5% up to 25th year of work |
Life expectancy + 1 year |
Life expectancy – 1 year |
|
| Severance DBO | -0.24% | 0.24% | 0.16% | -0.16% |
Construction contracts: Evaluation of construction contracts until project completion, in particular with a view to the accounting of claims, the contract revenue using the percentage of completion method, and the estimate of the probable operating profit from the contract, based on expectations of the future development of the relevant construction contracts. A change in these estimates, particularly as regards contract costs to complete the contract, percentage of completion, the estimated operating profit and the finally accepted claims accepted can have a significant effect on the Group's financial position and financial performance (see note 24). The following sensitivity analysis shows the impact of changes to the key parameters on the carrying amounts:
| Carrying amount 31.12.2016 |
Significant valuation assumptions |
Change | Effect on carrying amounts |
|---|---|---|---|
| 2,935,012 | EBT margin | +/-0.5% | +/-28,030 |
| 11,434 | Provision/order value | +/-0.5% | +/-277 |
| 41,751 | Provision/order value | +/-0.5% | +/-10,747 |
| 56,181 | Provision/order value | +/-0.5% | +/-22,752 |
| Carrying amount 31.12.2015 |
Significant valuation assumptions |
Change | Effect on carrying amounts |
| 2,251,078 | EBT margin | +/-0.5% | +/-20,476 |
| 15,746 | Provision/order value | +/-0.5% | +/-1,234 |
| 44,215 | Provision/order value | +/-0.5% | +/-12,417 |
| 53,151 | Provision/order value | +/-0.5% | +/-17,565 |
Impairment: Impairment tests on goodwill, other intangible assets, property, plant and equipment are primarily based on estimated future cash flows which are expected from the continuous use of an asset and its disposal at the end of its useful life. Factors such as lower revenues or rising expenditure and the resulting lower cash flows as well as changes to the discount factors used can lead to impairment due to a reduction in value or, as far as allowed, to a reversal of impairment due to an increase in value. The carrying amounts and the valuation assumptions applied to key impairment tests on goodwill are as follows:
| 2016 | Goodwill in EUR thousand |
Fair value hierarchy |
Method used | Business plan assumptions |
Growth rate % |
Discount rate after taxes % |
Effective date |
|---|---|---|---|---|---|---|---|
| Road construction | 7,704 | - | Value in use | Revenue p.a. 1.5–21.1% |
1 | 6.35 | 31.12. |
| Building | Fair value less | Revenue p.a. | |||||
| management | 1,471 | Level 3 | cost to sell | -5.9–5.0% | 1 | 5.18 | 31.12. |
| PPI | 11,049 | - | Value in use | Revenue p.a. -8.8–135.2% |
1 | 6.65 | 31.12. |
| 2015 | Goodwill in EUR thousand |
Fair value hierarchy |
Method used | Business plan assumptions |
Growth rate % |
Discount rate after taxes % |
Effective date |
|---|---|---|---|---|---|---|---|
| Road construction | 7,704 | - | Value in use | Revenue p.a. -1.6–4.1% |
1 | 7.04 | 31.12. |
| Building management |
2,971 | Level 3 | Fair value less cost to sell |
Revenue p.a. -2.8–10.2% |
1 | 6.89 | 31.12. |
| PPI | 11,049 | - | Value in use | Revenue p.a. 20–100% |
- | 10.93 | 31.12. |
The following shows the changes to the key parameters which can lead to impairment in the cash-generating unit of building management:
| in EUR thousand | Discount rate +0.5% | EBITDA margin -10% |
|---|---|---|
| Building management | -491 | -519 |
| in EUR thousand | Discount rate +0.5% | EBITDA margin -10% |
|---|---|---|
| Building management | -853 | -1,225 |
Management assumes that there will not be any significant changes which could lead to impairment for the cash-generating unit of road construction and Porr Polska Infrastructure.
The gross revenues of TEUR 3,417,100 (previous year: TEUR 3,139,687) include the invoiced construction work of own construction sites, goods and services to consortiums, and other revenues from ordinary activities.
The following table shows total Group output by business area, in which the output from contracts carried out by consortiums is also recognised together with the proportion attributable to a company included in the consolidated financial statements, and then transferred to revenue.
| in EUR thousand | 2016 | 2015 |
|---|---|---|
| Business areas | ||
| BU 1 – Austria, Switzerland, Czech Republic | 2,124,767 | 1,906,639 |
| BU 2 – Germany | 455,813 | 374,435 |
| BU 3 – International | 1,082,407 | 1,076,796 |
| BU 4 – Environmental Engineering, Healthcare & Services | 218,540 | 153,118 |
| Holding | 43,812 | 12,764 |
| Total Group output | 3,925,339 | 3,523,752 |
| of which proportional output from companies accounted for under the equity method and subsidiaries and shareholdings of minor significance |
-508,239 | -384,065 |
| Revenue | 3,417,100 | 3,139,687 |
Revenue can be subdivided as follows:
| in EUR thousand | 2016 | 2015 |
|---|---|---|
| Revenues from construction contracts | 3,180,295 | 2,954,206 |
| Revenues from sales of raw materials and other services | 236,805 | 185,481 |
| Total | 3,417,100 | 3,139,687 |
| in EUR thousand | 2016 | 2015 |
|---|---|---|
| Income from the release of provisions | 20,336 | 26,503 |
| Income from the sale of property, plant and equipment | 14,004 | 8,631 |
| Revenue from the provision of staff | 11,816 | 6,339 |
| Insurance payments | 3,199 | 5,682 |
| Exchange gains | 10,025 | 10,935 |
| Revenue from charging materials | 3,782 | 2,811 |
| Rent from space and land | 3,784 | 3,358 |
| Valuation of real estate | 6,250 | 5,746 |
| Other | 32,352 | 31,813 |
| Total | 105,548 | 101,818 |
Other operating income largely comprises amounts invoiced to shareholdings and income from the sale of materials.
| in EUR thousand | 2016 | 2015 |
|---|---|---|
| Expenditure on raw materials and supplies and for purchased goods | -643,878 | -651,443 |
| Expenditure on purchased services | -1,607,531 | -1,409,384 |
| Total | -2,251,409 | -2,060,827 |
| in EUR thousand | 2016 | 2015 |
|---|---|---|
| Wages and salaries | -706,613 | -654,424 |
| Social welfare expenses | -158,414 | -142,252 |
| Expenditure on severance payments and pensions | -9,041 | -10,962 |
| Total | -874,068 | -807,638 |
Expenditure on severance payments and pensions includes the prior service costs and contributions to the staff provision fund for employees who commenced employment with an Austrian group company after 31 December 2002 and voluntary severance payments. The interest expense arising from severance payments and pension obligations is shown under the item finance costs.
Amortisation of TEUR 10,121 (previous year: TEUR 10,384) was applied to intangible assets and depreciation of TEUR 77,161 (previous year: TEUR 67,788) to property, plant and equipment, of which TEUR 1,500 (previous year: TEUR 3,303) relates to impairment. For more detailed information please refer to notes 17 and 18.
| in EUR thousand | 2016 | 2015 |
|---|---|---|
| Legal and consultancy services, insurance | -42,438 | -41,406 |
| Buildings and land | -48,756 | -42,025 |
| Exchange losses | -10,564 | -12,477 |
| Fleet | -21,961 | -19,150 |
| Advertising | -9,944 | -10,459 |
| Office operations | -23,755 | -25,380 |
| Commission on bank guarantees (Avalprovisionen) | -12,771 | -13,621 |
| Other taxes | -6,380 | -4,788 |
| Contributions and fees | -6,883 | -8,084 |
| Training | -2,634 | -2,238 |
| Travel expenses | -28,742 | -26,898 |
| Other | -41,984 | -47,344 |
| Total | -256,812 | -253,870 |
Other operating expenses essentially comprise taxes and duties, third party services and general administrative costs. This item also includes rental payments from rental and leasing contracts of TEUR 16,305 (previous year: TEUR 9,858).
| in EUR thousand | 2016 | 2015 |
|---|---|---|
| Income from shareholdings | 2,373 | 2,828 |
| of which from affiliated companies | (-) | (-) |
| Expenditure from shareholdings | -2,561 | -2,284 |
| of which from affiliated companies | (-1,591) | (-1,037) |
| Income/expenditure from current financial assets | 2,919 | 2,046 |
| Interest | 12,589 | 16,378 |
| of which from affiliated companies | (141) | (144) |
| Total | 15,320 | 18,968 |
Under the item Interest, interest of TEUR 4,770 (previous year: 8,002) (see note 45) to the UBM Group is included. Interest does not relate to financial assets measured at fair value in profit or loss.
| in EUR thousand | 2016 | 2015 |
|---|---|---|
| Interest and similar expenditure relating to bonds | -13,316 | -13,074 |
| Other interest and similar expenses | -10,991 | -12,551 |
| of which from affiliated companies | (-7) | (-16) |
| of which interest expenditure from social overhead capital provisions | (-2,691) | (-2,712) |
| Total | -24,307 | -25,625 |
As in the previous year, no borrowing costs were capitalised in the year under review. The capitalisation rate was between 0.25% and 6.25% (previous year: 0.75% and 6.25%).
Income tax is the taxes on income and earnings and deferred taxes paid or owed in the individual countries for the year under review.
The calculation is based on tax rates that will be applicable pursuant to the prevailing tax laws or according to tax laws whose entry into force is essentially finalised, at the probable date of realisation.
| in EUR thousand | 2016 | 2015 |
|---|---|---|
| Actual tax expense | 10,795 | 8,903 |
| Deferred tax expense (+)/income (-) | 13,447 | 11,166 |
| Tax expense (+)/income (-) | 24,242 | 20,069 |
The tax expense resulting from the application of the Austrian Corporation Tax rate of 25% can be reconciled to the actual expense as follows:
| in EUR thousand | 2016 | 2015 |
|---|---|---|
| Profit before income tax | 91,068 | 81,113 |
| Theoretical tax expense (+)/income (-) | 22,767 | 20,278 |
| Differences in rates of taxation | 383 | -389 |
| Tax effect of non-deductible expenditure and tax-exempt income | 6,406 | 284 |
| Income/expenditure from companies accounted for under the equity method | -1,563 | 3,183 |
| Changes in deferred tax assets not applied in relation to loss carryforwards | -2,341 | -3,845 |
| Effect from taxation changes | 56 | - |
| Tax expense (+)/income (-) related to other periods | -916 | 1,509 |
| Other | -550 | -951 |
| Taxes on income and earnings | 24,242 | 20,069 |
In addition to the tax expense recognised in the consolidated income statement, the tax effect of expenses and income set off to other comprehensive income was also recognised in other comprehensive income. The income recognised in other comprehensive income amounted to TEUR 1,428 (previous year: TEUR 966). Payouts from capital from hybrid capital, profit-participation rights and the costs of the capital increase classified as equity capital are tax deductible. The resulting tax of TEUR 1,088 (previous year: TEUR 877) was recognised directly in equity.
Summary of tax effects in other comprehensive income:
| in EUR thousand | 2016 | 2015 |
|---|---|---|
| Revaluation reserve | -152 | - |
| Remeasurement from benefit obligations | 1,754 | 374 |
| Total debt securities available for sale – fair value reserve | -124 | 323 |
| Reserve for cash flow hedges | -50 | 269 |
| Equity attributable to shareholders of the parent | 1,428 | 966 |
| Equity attributable to non-controlling interests | 1 | - |
| Total | 1,429 | 966 |
Earnings per share and per capital share certificate are calculated by dividing the proportion of the annual profit relating to the shareholders of the parent company by the weighted average number of shares in issue.
| in EUR thousand | 2016 | 2015 |
|---|---|---|
| Proportion of annual deficit/surplus relating to shareholders of parent | 63,880 | 57,711 |
| Weighted average number of issued shares and capital share certificates | 28,699,399 | 28,532,547 |
| Basic earnings per share = diluted earnings per share, in EUR | 2.23 | 2.02 |
As there were no potential diluted transactions for the fiscal years 2015 and 2016, the diluted earnings per share correspond to the basic earnings per share.
Reconciliation statement for the weighted number of shares:
| 2016 | 2015 | |
|---|---|---|
| Shares in issue at 1 Jan | 29,095,000 | 29,095,000 |
| less treasury shares | -595,412 | -22,548 |
| Shares in issue less treasury shares at 1 Jan | 28,499,588 | 29,072,452 |
| Impact of purchase/dividend-in-kind of treasury shares | 199,811 | -539,905 |
| Weighted average of ordinary shares at 31 Dec | 28,699,399 | 28,532,547 |
| Concessions, licences and |
Other intangible | ||||
|---|---|---|---|---|---|
| in EUR thousand | similar rights | Software | Goodwill | assets | Total |
| Acquisition and manufacturing costs | |||||
| Balance at 1 Jan 2015 | 54,587 | 33,906 | 39,612 | 12,928 | 141,033 |
| Additions/disposals due to changes in the consolidated group |
- | 1,597 | 11,048 | - | 12,645 |
| Additions | 1,051 | 4,891 | - | - | 5,942 |
| Disposals | -9,597 | -2,928 | -594 | -1,113 | -14,232 |
| Currency adjustments | 9 | 3 | - | - | 12 |
| Balance at 31 Dec 2015 | 46,050 | 37,469 | 50,066 | 11,815 | 145,400 |
| Additions/disposals due to changes in the consolidated group |
524 | 404 | 3,725 | - | 4,653 |
| Additions | 1,117 | 4,716 | - | - | 5,833 |
| Disposals | -1,324 | -72 | -16,830 | - | -18,226 |
| Reclassifications | - | 1,809 | -2,501 | 1,113 | 421 |
| Currency adjustments | -51 | -56 | - | - | -107 |
| Balance at 31 Dec 2016 | 46,316 | 44,270 | 34,460 | 12,928 | 137,974 |
| Accumulated amortisation and impairment | |||||
| Balance at 1 January 2015 | 34,955 | 22,676 | 21,018 | 6,074 | 84,723 |
| Additions/disposals due to changes in the consolidated group |
- | 870 | - | - | 870 |
| Additions (planned amortisation) | 1,978 | 3,460 | - | 1,643 | 7,081 |
| Additions (impairment) | - | - | 3,303 | - | 3,303 |
| Disposals | -9,596 | -2,868 | -594 | -1,113 | -14,171 |
| Reclassifications | - | 52 | - | - | 52 |
| Currency adjustments | 4 | 4 | -1 | - | 7 |
| Balance at 31 Dec 2015 | 27,341 | 24,194 | 23,726 | 6,604 | 81,865 |
| Additions/disposals due to changes in the consolidated group |
237 | 398 | 931 | - | 1,566 |
| Additions (planned amortisation) | 2,238 | 4,741 | - | 1,642 | 8,621 |
| Additions (impairment) | - | - | 1,500 | - | 1,500 |
| Disposals | -1,266 | -53 | -16,830 | - | -18,149 |
| Reclassifications | - | 1,388 | -2,501 | 1,113 | - |
| Currency adjustments | 7 | -33 | - | - | -26 |
| Balance at 31 Dec 2016 | 28,557 | 30,635 | 6,826 | 9,359 | 75,377 |
| Carrying amounts – balance at 31 Dec 2015 | 18,709 | 13,275 | 26,340 | 5,211 | 63,535 |
| Carrying amounts – balance at 31 Dec 2016 | 17,759 | 13,635 | 27,634 | 3,569 | 62,597 |
Goodwill resulting from the acquisition of companies is tested for impairment at the level of the cash-generating unit or groups of cash-generating units to which it belongs in each particular case.
This applies to the segments as shown below:
| In EUR thousand | Balance at 1 Jan 2016 |
Currency adjustments |
Newly acquired goodwill |
Disposal of goodwill |
Impairment | Balance at 31 Dec 2016 |
|---|---|---|---|---|---|---|
| BU 1 – Austria, Switzerland, Czech Republic | 10,515 | - | - | - | - | 10,515 |
| BU 2 – Germany | - | - | - | - | - | - |
| BU 3 – International | 11,787 | - | - | - | - | 11,787 |
| BU 4 – Environmental Engineering, Healthcare & Services |
3,729 | - | 2,772 | - | -1,500 | 5,001 |
| Holding | 309 | - | 22 | - | - | 331 |
| Total | 26,340 | - | 2,794 | - | -1,500 | 27,634 |
| In EUR thousand | Balance at 1 Jan 2015 |
Currency adjustments |
Newly acquired goodwill |
Disposal of goodwill |
Impairment | Balance at 31 Dec 2015 |
|---|---|---|---|---|---|---|
| BU 1 – Austria, Switzerland, Czech Republic | 10,515 | - | - | - | - | 10,515 |
| BU 2 – Germany | - | - | - | - | - | - |
| BU 3 – International | 738 | 1 | 11,048 | - | - | 11,787 |
| BU 4 – Environmental Engineering, Healthcare & Services |
7,032 | - | - | - | -3,303 | 3,729 |
| Holding | 309 | - | - | - | - | 309 |
| Total | 18,594 | 1 | 11,048 | - | -3,303 | 26,340 |
In Segment Business Unit 1 – Austria, Switzerland, Czech Republic, goodwill of TEUR 7,704 is allocated to the cash-generating unit of road construction. In the BU 4 – Environmental Engineering, Healthcare & Services segment goodwill of TEUR 2,971 is allocated to the cash-generating unit of building management. Impairment totalling TEUR 1,500 was applied to this goodwill. In the segment Business Unit 3 – International goodwill of TEUR 11,048 is allocated to the cash-generating unit Porr Polska Infrastructure.
The impairment test involves comparing the total of the carrying amounts of the assets of the cash-generating unit to which goodwill was allocated, in addition to the carrying amount of the goodwill allocated to this cash-generating unit, with the recoverable amount of the same assets. The recoverable amount of the cash-generating unit corresponds to the fair value less sale costs or the value in use, if this is higher. The fair value is determined on the basis of a DCF calculation. In cases where no fair value can be determined, the value in use, i.e. the present value of probable future cash flows generated by the segment, is laid down as the recoverable amount. The cash flows were derived from budgets for three to five years approved by the Executive Board and current as at the time of the implementation of the impairment tests. More details on the parameters and sensitivity analyses used in impairment tests are given in note 6.1.
The comments shown under accounting and measurement methods explain the useful lives and methods of amortisation, depreciation and impairment.
The consolidated income statement contains impairment related to goodwill of TEUR 1,500 (previous year: TEUR 3,303), shown under the item "Depreciation, amortisation and impairment expense", as well as amortisation on other intangible assets.
| Land, land rights and buil | Technical | Other plant, factory and |
Payments on account and |
||
|---|---|---|---|---|---|
| dings including buildings on | equipment and | business | assets under | ||
| in EUR thousand | land owned by others | machinery | equipment | construction | Total |
| Acquisition costs, manufacturing costs and revaluations |
|||||
| Balance at 1 Jan 2015 | 335,746 | 364,492 | 101,695 | 7,509 | 809,442 |
| Additions/disposals due to changes in the | |||||
| consolidated group | 7,107 | 19,437 | 3,792 | 15 | 30,351 |
| Additions | 21,737 | 75,743 | 33,098 | 443 | 131,021 |
| Disposals | -8,003 | -25,496 | -25,346 | -6,768 | -65,613 |
| Reclassifications | -929 | 18 | 302 | -310 | -919 |
| Currency adjustments | 1,120 | 1,069 | 653 | 1 | 2,843 |
| Balance at 31 Dec 2015 | 356,778 | 435,263 | 114,194 | 890 | 907,125 |
| Additions/disposals due to changes in the | |||||
| consolidated group | 127,792 | 1,143 | 6,136 | - | 135,071 |
| Additions | 13,636 | 55,660 | 39,136 | 4,401 | 112,833 |
| Disposals | -14,235 | -28,670 | -25,227 | -7 | -68,139 |
| Reclassifications | -1,270 | -1,597 | 3,447 | -2,125 | -1,545 |
| Currency adjustments | -719 | -996 | -310 | 15 | -2,010 |
| Revision arising from revaluation | 492 | - | - | - | 492 |
| Balance at 31 Dec 2016 | 482,474 | 460,803 | 137,376 | 3,174 | 1,083,827 |
| Accumulated depreciation and impairment | |||||
| Balance at 1 January 2015 | 118,344 | 218,082 | 59,984 | 177 | 396,587 |
| Additions/disposals due to changes in the consolidated group |
1,412 | 12,220 | 3,084 | - | 16,716 |
| Additions (planned depreciation) | 10,087 | 37,027 | 20,674 | - | 67,788 |
| Disposals | -2,949 | -19,791 | -20,172 | - | -42,912 |
| Reclassifications | -152 | -89 | -70 | - | -311 |
| Currency adjustments | 440 | 895 | 470 | - | 1,805 |
| Balance at 31 Dec 2015 | 127,182 | 248,344 | 63,970 | 177 | 439,673 |
| Additions/disposals due to changes in the consolidated group |
94,075 | 525 | 4,458 | - | 99,058 |
| Additions (planned depreciation) | 10,343 | 43,293 | 23,526 | - | 77,162 |
| Disposals | -5,567 | -24,606 | -21,684 | - | -51,857 |
| Reclassifications | 310 | -1,630 | 1,010 | - | -310 |
| Currency adjustments | -130 | -702 | -185 | - | -1,017 |
| Balance at 31 Dec 2016 | 226,213 | 265,224 | 71,095 | 177 | 562,709 |
| Carrying amounts – balance at 31 Dec 2015 | 229,596 | 186,919 | 50,224 | 713 | 467,452 |
| Carrying amounts – balance at 31 Dec 2016 | 256,261 | 195,579 | 66,281 | 2,997 | 521,118 |
Land, land rights and buildings, including buildings on land owned by others includes reserves for raw materials amounting to TEUR 57,406 (previous year: TEUR 58,774), which is written off based on performance.
Scheduled depreciation is shown under "Depreciation, amortisation and impairment expense".
The value of property under property, plant and equipment which was valued by an external expert at the end of the reporting period amounts to TEUR 6,600 (previous year: TEUR 51,365).
The carrying amount for property, plant and equipment pledged for security at the end of the reporting period is TEUR 36,683 (previous year: TEUR 50,618).
The carrying amount for land, land rights and buildings, including buildings on land owned by others would have amounted to TEUR 238,907 (previous year: TEUR 208,236) on application of the cost model as at 31 December 2016.
Determining the fair value of properties is carried out by way of a revolving cycle. Fair value is determined using recognised valuation methods, namely as derived from the current market price, as derived from a price recently paid in a transaction with similar property, or – usually in cases where there is a lack of suitable market data – as derived from discounting estimated future cash flows, which are commonly generated on the market by this type of property under a rental agreement. An internal valuation team determines the market value of any property which has not undergone an external valuation. Discussions related to the parameters which need to be applied to determine fair value (Level 3) are led by operational project developers, the Executive Board and the valuation team.
The various levels are defined as follows:
| in EUR thousand | Fair value as at 31 Dec 2016 | ||||
|---|---|---|---|---|---|
| Type of property | Prices quoted in active markets for identical assets Level 1 |
Other key observable inputs Level 2 |
Other key unobservable inputs Level 3 |
||
| Operating premises/storage | - | - | 135,417 | ||
| Gravel pit/stone quarry | - | - | 65,742 | ||
| Mix plant | - | - | 10,605 | ||
| Landfill | - | - | 44,497 |
| in EUR thousand | Fair value as at 31 Dec 2015 | ||||
|---|---|---|---|---|---|
| Type of property | Prices quoted in active markets for identical assets Level 1 |
Other key observable inputs Level 2 |
Other key unobservable inputs Level 3 |
||
| Operating premises/storage | - | - | 135,126 | ||
| Gravel pit/stone quarry | - | - | 67,441 | ||
| Mix plant | - | - | 11,756 | ||
| Landfill | - | - | 15,272 |
| Type of Property | ||||
|---|---|---|---|---|
| Operating premises/ storage |
Gravel pit/ stone quarry |
Landfills | Mix plants | |
| CE, CV | CE, CV | CE | CV | |
| 6.00–7.50 | 4.00–7.00 | 10.93 | ||
| 2.50–12.50 | ||||
| 6.00–18.00 | ||||
| 2.00–6.00 | ||||
| 8.02–10.12 | 17.98–40.44 | |||
| 6.07–6.58 | ||||
| 25.00–35.00 | ||||
| 1,400.00–1,600.00 | ||||
| Type of Property | ||||
|---|---|---|---|---|
| Operating premises/ storage |
Gravel pit/ stone quarry |
Landfills | Mix plants | |
| Valuation method | CE, CV | CE, CV | CE | CV |
| Capitalisation rate in % | 5.50–7.50 | 4.00–7.00 | 10.93 | |
| Rent per m2 | 4.32–8.63 | |||
| Maintenance in % | 5.00–18.00 | |||
| Vacancy rate in % | 1.00–6.00 | |||
| Income in EUR/t | 8.02–10.12 | 17.98–40.44 | ||
| Expenses in EUR/t | 6.07–6.58 | |||
| Basic value per m2 | 25.00–35.00 | |||
| Fair value of construction in EUR/m2 | 1,400.00–1,600.00 | |||
CE = capitalised earnings, CV = comparative value
Fair value is determined using internationally recognised valuation methods, namely as derived from the current market price, as derived from a price recently paid in a transaction with similar property, or – in cases where there is a lack of suitable market data – as derived from discounting estimated future cash flows, which are commonly generated on the market by this type of property under a rental agreement.
Reconciliation of Level 3 valuations:
| Type of Property | ||||
|---|---|---|---|---|
| in EUR thousand | Operating premises/ storage |
Gravel pit/ stone quarry |
Mix plants | Landfill |
| Balance at 1 Jan 2016 | 135,127 | 67,441 | 11,756 | 15,272 |
| Additions/disposals due to changes in the consolidated group |
6,221 | -1,254 | -6 | 28,756 |
| Additions | 8,302 | 3,689 | 8 | 1,635 |
| Disposals | -6,682 | -988 | -994 | -4 |
| Reclassifications | -882 | -771 | 76 | - |
| Currency adjustments | -449 | 5 | 1 | -147 |
| Revision arising from revaluation | - | 492 | - | - |
| Planned amortisation | -6,220 | -2,872 | -236 | -1,015 |
| Balance at 31 Dec 2016 | 135,417 | 65,742 | 10,605 | 44,497 |
| Type of Property | ||||
|---|---|---|---|---|
| in EUR thousand | Operating premises/ storage |
Gravel pit/ stone quarry |
Mix plants | Landfill |
| Balance at 1 Jan 2015 | 123,844 | 67,082 | 11,027 | 15,449 |
| Additions/disposals due to changes in the consolidated group |
5,570 | - | 125 | - |
| Additions | 15,381 | 5,080 | 680 | 596 |
| Disposals | -4,252 | -802 | - | - |
| Reclassifications | -806 | -8 | 37 | - |
| Currency adjustments | 594 | 7 | 134 | -55 |
| Planned amortisation | -5,204 | -3,918 | -247 | -718 |
| Balance at 31 Dec 2015 | 135,127 | 67,441 | 11,756 | 15,272 |
The carrying amounts of property, plant and equipment and investment property held under finance leasing agreements amounted to:
| in EUR thousand | 2016 | 2015 |
|---|---|---|
| Real estate leasing | 18,366 | 19,838 |
| Equipment leasing | 85,759 | 94,285 |
| Total | 104,125 | 114,123 |
These carrying amounts are balanced by corresponding liabilities represented by the present value of the minimum lease payments, i.e. of TEUR 81,851 (previous year: TEUR 95,304).
The terms of the finance leases for real estate are between 18 and 25 years, leasing fees are generally tied to the 6-month EURIBOR from the Austrian National Bank and adjusted every six months. The terms of the finance leases for equipment are between three and 15 years, leasing fees are generally tied to the 3-month EURIBOR from the Austrian National Bank and adjusted every quarter. The equipment leasing contracts include extension options, but they do not contain sales option or clauses for adjusting the price.
The Group essentially leases cars and individual items of real estate under operating leases, in most cases pre-agreed extension options are not exercised. The average term of car leasing agreements is five years and the term of real estate leasing agreements is 15 to 20 years.
The following summary shows the future minimum lease payments during the non-terminable period of the operating leases:
| in EUR thousand | 2016 | 2015 |
|---|---|---|
| Due within 1 year | 18,041 | 10,953 |
| Due between 1 and 5 years | 53,697 | 31,064 |
| Due after 5 years | 51,748 | 13,097 |
| in EUR thousand | |
|---|---|
| Balance at 1 Jan 2015 | 46,767 |
| Additions/disposals due to changes in the consolidated group | - |
| Additions for manufacturing costs | 185 |
| Disposals | -886 |
| Reclassifications | -9,537 |
| Currency adjustments | -11 |
| Adjustments to fair value | -2,944 |
| Balance at 31 Dec 2015 | 33,574 |
| Additions/disposals due to changes in the consolidated group | 9,000 |
| Additions for manufacturing costs | 180 |
| Disposals | -27 |
| Reclassifications | 862 |
| Currency adjustments | -15 |
| Adjustment to fair value | -121 |
| Balance at 31 Dec 2016 | 43,453 |
The value of investment property, which was assessed by an external expert as of the reporting date, amounted to TEUR 9,000 (previous year: TEUR 10,219).
The rental income from investment property amounted to TEUR 1,172 in the year under review (previous year: TEUR 1,928). Operating expenses related to investment property for which there was no rental income in the year under review amounted to TEUR 34 (previous year: TEUR 79).
Investment property with a carrying amount of TEUR 2,863 (previous year: TEUR 2,882) is pledged as collateral for liabilities.
Reclassifications of TEUR 582 (previous year: TEUR 10,145) relate to the reclassification of properties to non-current assets held for sale; in addition a property worth TEUR 1,444 (previous year: TEUR 608) was reclassified from property, plant and equipment.
The fair value is determined according to recognised measurement methods, namely by being inferred from a current market price, by being inferred from a price attained in a transaction with similar items of real estate in the recent past – in the absence of suitable market data – by discounting estimated future cash flows that are usually generated in the market by this type of real estate in the course of letting.
| in EUR thousand | Fair value as at 31 Dec 2016 | ||
|---|---|---|---|
| Prices quoted in active markets for identical assets |
Other key observable inputs | Other key unobservable inputs | |
| Type of Property | Level 1 | Level 2 | Level 3 |
| Office/commercial | - | - | 9,048 |
| Undeveloped properties | - | 32,113 | - |
| Other | - | - | 2,292 |
| in EUR thousand | Fair value as at 31 Dec 2015 | |||
|---|---|---|---|---|
| Prices quoted in active markets for identical assets |
Other key observable inputs | Other key unobservable inputs | ||
| Type of Property | Level 1 | Level 2 | Level 3 | |
| Office/commercial | - | - | 9,645 | |
| Undeveloped properties | - | 22,454 | - | |
| Other | - | - | 1,475 |
| Type of Property | Valuation method | Basic value 1 EUR/m2 |
|---|---|---|
| Undeveloped properties | CV | 10.00–123.00 |
| Type of Property | Valuation method | Basic value 1 EUR/m2 |
|---|---|---|
| Undeveloped properties | CV | 10.00–120.00 |
| Valuation | Capitalisation | ||||
|---|---|---|---|---|---|
| Type of Property | method | rate % | Rent EUR/m2 | Maintenance % | Vacancy rate % |
| Office/commercial | CE, CV | 5.50–8.00 | 5.05–20.89 | 7.00–40.00 | 2.00–10.00 |
| Valuation | Capitalisation | ||||
|---|---|---|---|---|---|
| Type of Property | method | rate % | Rent EUR/m2 | Maintenance % | Vacancy rate % |
| Office/commercial | CE, CV | 5.50–8.00 | 5.05–20.89 | 7.00–40.00 | 2.00–10.00 |
RV = residual value, CV = comparative value, CE = capitalised earnings
without construction preparation
Reconciliation of Level 3 valuations:
| Office/commercial | Other |
|---|---|
| 9,645 | 1,475 |
| - | - |
| -582 | 841 |
| -15 | - |
| - | -24 |
| 9,048 | 2,292 |
| Type of Property |
| Type of Property | ||
|---|---|---|
| in EUR thousand | Office/commercial | Other |
| Balance at Jan 1 2015 | 22,579 | 1,576 |
| Disposals | -810 | -76 |
| Reclassifications | -9,537 | - |
| Currency adjustments | -11 | - |
| Adjustment to fair value | -2,576 | -25 |
| Balance at 31 Dec 2015 | 9,645 | 1,475 |
The requisite disclosures pursuant to IFRS 12 have been made for associates and joint ventures which are classed as significant by the UBM Group for reasons of quality or quantity. For five companies the Group holds the majority of shares, however owing to shareholder agreements there is no control and so the companies are recognised under the equity method.
The following associate is ALU-SOMMER GmbH, in which the PORR Group holds 49.54% (previous year: 49.54%). The company's business purpose is designing, manufacturing and installing aluminium-glass facades.
| in EUR thousand | 2016 | 2015 |
|---|---|---|
| Revenue | 34,479 | 26,791 |
| Profit for the year | 516 | 626 |
| Other comprehensive income | - | - |
| Total comprehensive income | 516 | 626 |
| Non-current assets | 8,991 | 8,313 |
| Current assets | 12,624 | 11,566 |
| Non-current liabilities | -4,822 | -3,477 |
| Current liabilities | -7,165 | -6,990 |
| Net assets | 9,628 | 9,412 |
| Group share of net assets at 1 Jan | 4,659 | 4,449 |
| Group share of total comprehensive income | 255 | 310 |
| Dividends received | -149 | -100 |
| Group share of net assets at 31 Dec | 4,765 | 4,659 |
| Non-transferred losses | - | - |
| Carrying amount of companies accounted for under the equity method at 31 Dec | 4,765 | 4,659 |
Disclosures on companies of minor significance:
| in EUR thousand | 2016 | 2015 |
|---|---|---|
| Carrying amount of companies accounted for under the equity method at 31 Dec | 13,686 | 22,556 |
| Group share of | ||
| Profit for the year | 4,153 | 1,567 |
| Other comprehensive income | 14 | 24 |
| Total comprehensive income | 4,167 | 1,591 |
The accumulated amount of non-recognised shares of losses of associates as of 31 December 2016 is TEUR 407 (previous year: TEUR 407).
The following joint venture is "hospitals" Projektentwicklungsges.m.b.H., in which the PORR Group holds 62.9% (previous year: 0%), however, owing to shareholder agreement there is no control. The company operates in the field of developing and preparing healthcare projects.
| in EUR thousand | 2016 | 2015 |
|---|---|---|
| Revenue | 1,003 | 856 |
| Depreciation, amortisation and impairment expense | -4 | -4 |
| Interest expense | -136 | -96 |
| Tax payables | - | -30 |
| Profit for the year | 2,189 | 5,071 |
| Other comprehensive income | - | - |
| Total comprehensive income | 2,189 | 5,071 |
| Non-current assets | 15,763 | 14,882 |
| Current assets | 1,520 | 684 |
| of which cash and cash equivalents | (621) | (78) |
| Non-current liabilities | -3,425 | -3,352 |
| of which non-current financial liabilities | (-3,425) | (-3,352) |
| Current liabilities | -835 | -1,380 |
| of which current financial liabilities | (-) | (-) |
| Net assets | 13,023 | 10,834 |
| Group share of net assets at 1 Jan | - | - |
| Net assets acquired | 6,814 | - |
| Goodwill from the acquisition | 4,701 | - |
| Group share of total comprehensive income | 1,377 | - |
| Dividends received | - | - |
| Group share of net assets at 31 Dec | 12,892 | - |
| Non-transferred losses | - | - |
| Carrying amount of companies accounted for under the equity method at 31 Dec | 12,892 | - |
Disclosures on joint ventures of minor significance:
| in EUR thousand | 2016 | 2015 |
|---|---|---|
| Carrying amount of companies accounted for under the equity method at 31 Dec | 11,941 | 11,150 |
| Group share of | ||
| Profit for the year | 24,699 | 30,069 |
| Other comprehensive income | -138 | 8 |
| Total comprehensive income | 24,561 | 30,077 |
The share of the Group in the annual profit from the previous year also includes the pro-rata profit from non-significant consortiums amounting to TEUR 20,546 (previous year: TEUR 24,508), which is recognised under trade receivables.
The accumulated amount of non-recognised shares of losses of joint ventures as of 31 December 2016 is TEUR 1,633 (previous year: TEUR 407).
The joint ventures listed below represent the ten largest consortiums measured by proportionate annual revenue; the disclosures on financial information represent 100%:
| Share of consortium in % | ||||
|---|---|---|---|---|
| CONSORTIUM | 2016 | 2015 Activity | Location | |
| Upgrading Prater hub | 50 | 50 Upgrading Prater hub | Austria | |
| Albaufstieg Tunnel | 37 | 37 Tunnelling lots 1, 2 and 3 | Germany | |
| ATCOST21 | 37 | 37 Building Filder Tunnel, Ober- and Untertürkheim Tunnel | Germany | |
| PTS Boßler Tunnel | 50 | 50 Lining segments for the Albaufstieg project – Boßler Tunnel lots 1 and 2 | Germany | |
| BAU OVW II | 30 | 30 Building Obervermuntwerk II pumped power storage plant | Austria | |
| New construction Albula | ||||
| Tunnel II | 40 | 40 Building a 6 km-long replacement tunnel from Albulatal to Engadin | Switzerland | |
| Südgürtel Graz | 60 | 60 Gap closure between Puntigamer Bridge and Liebenauer Gürtel | Austria | |
| U4 West | 50 | - Modernising the western stretch of the metro line U4 Vienna | Austria | |
| Consorzio Mosconi | ||||
| Gunimperm | 50 | 50 Sealing NEAT base tunnel Ceneri, lot 852 | Switzerland | |
| EBG 71 | 50 | 50 Building an apartment block/student halls of residence in Graz | Austria |
| 2016 | Upgrading | Albauf | PTS | New construc |
Consorzio Mosconi |
|||||
|---|---|---|---|---|---|---|---|---|---|---|
| Prater | stieg | Boßler | BAU | tion Albula | Südgürtel | Gunim | ||||
| in EUR thousand | hub | Tunnel | ATCOST21 | Tunnel | OVW II | Tunnel II | Graz | U4 West | perm | EBG 71 |
| Revenue | 12,982 | 145,066 | 127,218 | 24,437 | 55,548 | 35,882 | 18,763 | 24,090 | 16,463 | 12,634 |
| Depreciation, amortisation and impairment |
-29 | -2,389 | -4,838 | -2,661 | -826 | -1,025 | -168 | - | -101 | -1 |
| Interest expense | - | - | -232 | - | -18 | -60 | - | - | -30 | - |
| Non-current assets | - | 2,467 | 12,525 | 2,539 | 897 | 2,961 | 579 | - | 37 | 5 |
| Current assets | 5,977 | 29,413 | 36,565 | 8,728 | 25,881 | 16,049 | 9,653 | 6,351 | 9,399 | 2,847 |
| of which cash and cash equivalents |
(3,025) | (12,111) | (23,094) | (795) | (2,407) | (2,288) | (478) | (3,204) | (2,513) | (2,172) |
| Non-current liabilities | ||||||||||
| of which non-current financial liabilities |
||||||||||
| Current liabilities | -5,977 | -31,880 | -49,090 | -11,267 | -26,778 | -19,010 | -10,232 | -6,351 | -9,436 | -2,852 |
| of which current financial liabilities |
||||||||||
| Net assets | - | - | - | - | - | - | - | - | - | - |
| 2015 | Upgrading Prater |
Albauf stieg |
PTS Boßler |
BAU | New construc tion Albula |
Südgürtel | Consorzio Mosconi Gunim |
|||
|---|---|---|---|---|---|---|---|---|---|---|
| in EUR thousand | hub | Tunnel | ATCOST21 | Tunnel | OVW II | Tunnel II | Graz | U4 West | perm | EBG 71 |
| Revenue | 17,369 | 107,198 | 113,167 | 28,612 | 58,520 | 18,947 | 18,919 | - | 12,336 | - |
| Depreciation, amortisation and impairment |
-16 | -3,367 | -2,426 | -2,770 | -1,340 | -224 | -190 | - | -92 | - |
| Interest expense | -7 | -180 | -230 | -2 | -45 | - | -13 | - | -31 | - |
| Non-current assets | 65 | 4,484 | 6,852 | 4,897 | 1,504 | 2,215 | 564 | - | 138 | 6 |
| Current assets | 5,160 | 31,915 | 162,579 | 1,387 | 19,716 | 17,134 | 11,527 | - | 6,658 | 5,115 |
| of which cash and cash equivalents |
(2,037) | (4,863) | (13,220) | (272) | (5,608) | (3,258) | (378) | (-) | (1,385) | (2,672) |
| Non-current liabilities | ||||||||||
| of which non-current financial liabilities |
||||||||||
| Current liabilities | -5,225 | -36,399 | -169,431 | -6,284 | -21,220 | -19,349 | -12,091 | - | -6,796 | -5,121 |
| of which current financial liabilities |
||||||||||
| Net assets | - | - | - | - | - | - | - | - | - | - |
The share of the Group in the profit for the period of the most important consortiums amounts to TEUR 12,971 (previous year: TEUR 7,564) and is shown under trade receivables.
| in EUR thousand | 2016 | 2015 |
|---|---|---|
| Loans to companies accounted for under the equity method | 13,294 | 351 |
| Loans to companies in which an equity interest is held | 8,685 | - |
| Other loans | 1,178 | 710 |
| Total | 23,157 | 1,061 |
| in EUR thousand | 2016 | 2015 |
|---|---|---|
| Shareholdings in non-consolidated subsidiaries | 327 | 384 |
| Other shareholdings | 4,168 | 4,310 |
| Financial assets available for sale | 85,417 | 84,923 |
| Total | 89,912 | 89,617 |
As regards the other shareholdings and shareholdings in non-consolidated subsidiaries, the fair value cannot be determined reliably, meaning that they are recognised at their acquisition costs less any impairment.
The total debt securities available for sale relate on the one hand to granting a perpetual mezzanine loan of TEUR 50,000 (previous year: TEUR 50,000) with an interest rate of 6.5% and perpetual hybrid capital of TEUR 25,330 with an interest rate of 6% to UBM Development AG. Ordinary termination by PORR AG is excluded for both instruments. Interest payments are dependent on whether UBM Development AG resolves to pay out a dividend from the annual surplus. If there is a year in which no payout of dividends from the annual surplus is resolved by UBM Development AG, then UBM Development AG is not obliged to pay any interest in the same year, whereby in this instance the interest is not cancelled but remains due. The carrying amount stood at TEUR 74,727 at the reporting date (previous year: TEUR 74,142).
The remaining financial assets available for sale of TEUR 10,690 (previous year: TEUR 10,781) mainly comprise fixed-interest instruments. They are not subject to any restrictions on disposal.
Inventories comprise the following:
| in EUR thousand | 2016 | 2015 |
|---|---|---|
| Land intended for sale | - | 1,318 |
| Finished and unfinished products and merchandise | 6,632 | 5,268 |
| Raw materials and supplies | 46,266 | 42,677 |
| Payments on account | 20,376 | 22,242 |
| Total | 73,274 | 71,505 |
Allowances of TEUR -608 (previous year: TEUR -248) were recognised on products and merchandise in the year under review. Inventories with a carrying amount of TEUR 0 (previous year: TEUR 0) were pledged as collateral for liabilities.
The construction contracts valued by the POC method at the end of the reporting period but not yet finally settled, are stated as follows:
| in EUR thousand | 2016 | recorded as a receivable | recorded as a liability |
|---|---|---|---|
| Contract values defined according to POC method | 2,935,012 | 2,395,649 | 539,363 |
| of which unrealised partial gains | (148,650) | (137,709) | (10,941) |
| Less attributable payments on account | -2,684,071 | -1,951,634 | -732,437 |
| Net | 250,941 | 444,015 | -193,074 |
| in EUR thousand | 2015 | recorded as a receivable | recorded as a liability |
|---|---|---|---|
| Contract values defined according to POC method | 2,251,078 | 1,706,630 | 544,449 |
| of which unrealised partial gains | (98,192) | (87,908) | (10,284) |
| Less attributable payments on account | -2,231,586 | -1,435,143 | -796,443 |
| Net | 19,492 | 271,487 | -251,994 |
Proportional contract values capitalised according to the percentage of completion of the contract as at 31 December 2016 are balanced by contract costs valued at TEUR 2,786,362 (previous year: TEUR 2,152,886), so that the recognised profit for these contracts amounts to TEUR 148,650 (previous year: TEUR 98,192).
Shares of the profits from consortiums are shown under receivables from consortiums. Advances received, including preliminary payments on invoices for partial delivery, are shown under liabilities, where these exceed proportional contract values capitalised according to the percentage of completion of the contract. Impending losses and damages and penalties from contracts are recorded in provisions, in as far as the respective proportional contract values according to the percentage of completion are exceeded.
Composition and maturity terms of trade receivables:
| Remaining term | Remaining term | |||
|---|---|---|---|---|
| in EUR thousand | 31.12.2016 | > 1 year | 31.12.2015 | > 1 year |
| Trade receivables | 392,704 | 30,600 | 385,806 | 26,091 |
| Receivables from construction contracts | 444,015 | - | 271,487 | - |
| Receivables from consortiums | 93,310 | 10,947 | 94,562 | 9,172 |
| Total | 930,029 | 41,547 | 751,855 | 35,263 |
Trade receivables are classified as current in accordance with IAS 1 as they are to be settled within the entity's normal operating cycle.
Trade receivables include contractual retentions of TEUR 40,036 (previous year: TEUR 34,596).
| in EUR thousand | 2016 | 2015 |
|---|---|---|
| Trade receivables before allowances | 467,947 | 467,905 |
| Impairment allowances at 1 Jan | 82,099 | 52,363 |
| Additions | 24,407 | 50,145 |
| Appropriation | -26,669 | -17,411 |
| Liquidation | -4,594 | -2,998 |
| Balance at 31 Dec | 75,243 | 82,099 |
| Carrying amount of trade receivables | 392,704 | 385,806 |
| in EUR thousand | 2016 | 2015 |
|---|---|---|
| Carrying amount at 31 Dec | 392,704 | 385,806 |
| of which not overdue at closing date | 266,421 | 277,908 |
| of which overdue at closing date in the following time periods | ||
| less than 30 days | 28,261 | 20,155 |
| between 30 and 60 days | 11,906 | 10,177 |
| between 60 and 180 days | 10,763 | 7,582 |
| between 180 and 360 days | 18,072 | 12,207 |
| more than 360 days | 57,281 | 57,777 |
In the above-mentioned overdues, amounts of ongoing invoice checks are also included, which could take up to 120 days to settle. Allowances for impairment were included at reasonable amounts.
| Remaining term | Remaining term | |||
|---|---|---|---|---|
| in EUR thousand | 31.12.2016 | > 1 year | 31.12.2015 | > 1 year |
| Loans | 97 | - | 97 | - |
| Securities | - | - | 26,953 | - |
| Receivables from non-consolidated subsidiaries | 2,136 | - | 3,203 | - |
| Receivables from companies accounted for under the equity method |
17,336 | 174 | 17,249 | - |
| Receivables from other shareholdings | 7,460 | - | 2,216 | - |
| Receivables from insurance | 1,088 | - | 636 | - |
| Other | 50,520 | 7,464 | 68,568 | 13,308 |
| Total | 78,637 | 7,638 | 118,922 | 13,308 |
Securities of TEUR 0 (previous year: TEUR 25,000) relate to bonds and TEUR 0 (previous year: TEUR 1,953) relate to shares in the UBM Group. Forward contracts at fair value amounting to TEUR 23 (previous year: TEUR 668) are included under other financial assets (see note 43). In addition this item contains TEUR 5,448 (previous year: TEUR 5,385) of receivables from deposits, TEUR 4,219 (previous year: TEUR 3,306) of receivables from down payments relating to rent and leases, as well as receivables to the UBM Group totalling TEUR 21,173 (previous year: TEUR 22,826) (see note 45).
Receivables from non-consolidated subsidiaries, companies accounted for under the equity method and other shareholdings include contractual retentions amounting to TEUR 686 (previous year: TEUR 783).
| Remaining term | ||||
|---|---|---|---|---|
| in EUR thousand | 31.12.2016 | Remaining term > 1 year |
31.12.2015 | > 1 year |
| Tax assets | 5,561 | - | 7,157 | - |
| Other | 458 | - | 835 | - |
| Total | 6,019 | - | 7,992 | - |
The cash and cash equivalents include cash at banks amounting to TEUR 476,067 (previous year: TEUR 646,514) and cash in hand of TEUR 363 (previous year: TEUR 729).
The non-current assets held for sale related to one property in the segment Business Unit 3 – International and a property in the segment Business Unit 4 – Environmental Engineering, Healthcare & Services for which the Group has received Supervisory Board approval to sell and is actively looking for a buyer. The Group assumes that the sale will be concluded in the 2017 business year. For the property in the segment Business Unit 4 – Environmental Engineering, Healthcare & Services a notarial deed has already been concluded, although closing is still subject to a condition precedent.
The following tax deferments stated on the statement of financial position arise from temporary differences between the valuations in the IFRS consolidated financial statements and the respective valuations for tax purposes as well as from realisable loss carryforwards:
| in EUR thousand | 2016 | 2015 | ||
|---|---|---|---|---|
| Assets | Liabilities | Assets | Liabilities | |
| Non-current assets, liabilities from finance leasing | 48,801 | 53,661 | 50,334 | 54,480 |
| POC method | - | 70,411 | - | 54,109 |
| Untaxed reserves | - | 3,341 | - | 2,598 |
| Provisions | 22,894 | 7,195 | 17,950 | 1,313 |
| Tax loss carryforwards | 25,494 | - | 20,866 | - |
| Off-setting | -88,661 | -88,661 | -80,191 | -80,191 |
| Deferred taxes | 8,528 | 45,947 | 8,959 | 32,309 |
| Net deferred taxes | 37,419 | 23,350 |
| in EUR thousand | 2016 | 2015 |
|---|---|---|
| Net deferred taxes (liabilities) | 37,419 | 23,350 |
| Change | -14,069 | -6,063 |
| of which related to exchange differences | -183 | -8 |
| of which related to expense (-)/income (+) as per income statement | -13,447 | -11,166 |
| of which related to regrouping from current tax liabilities | - | - |
| of which related to changes to the consolidated group | -1,868 | 4,145 |
| of which related to expense (-)/income (+) entered into other comprehensive income | 1,429 | 966 |
Deferred tax assets based on loss carryforwards are recognised to the extent that these can probably be offset against future taxable profits.
The loss carryforwards for which no deferred tax assets were recognised amount to TEUR 129,336 (previous year: TEUR 180,584) and TEUR 113,389 of this can be carried forward essentially without restriction, while TEUR 15,947 of this can be carried forward for the next five years.
| Share capital | No. 2016 | EUR 2016 | No. 2015 | EUR 2015 |
|---|---|---|---|---|
| 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 |
The shares are ordinary bearer shares. Each ordinary share has a pro-rata interest of EUR 1.00 in the share capital of EUR 29,095,000 and participates in profits to the same extent and each share entitles the bearer to one vote at the Annual General Meeting. The shares are no-par value bearer shares.
In the reporting year the company issued 378,917 treasury shares, respectively around 1.3% of the share capital, as a scrip dividend in the course of the reinvestment by shareholders. At 31 December 2016 the company directly and indirectly held a total of 216,495 treasury shares, respectively 0.74% of the share capital. In accordance with Section 65 Paragraph 5 of the Stock Exchange Act, the company does not have any rights, particularly voting rights, from the treasury shares.
Within five years following the entry into the Commercial Register of the resolution by the extraordinary general meeting on 11 July 2013, the Executive Board is authorised to increase the share capital of the company with the approval of the Supervisory Board, in multiple tranches if so wished, to EUR 6,612,500 by issuing up to 6,612,500 no-par value shares in exchange for cash or contribution in kind (authorised capital), whereby the issue price, the conditions of issue, the subscription ratio, and other details are to be determined by the Executive Board with the approval of the Supervisory Board. The pre-emptive rights of shareholders to these new shares issued from the authorised capital are excluded when and if this authorisation (authorised capital) is exercised by issuing new shares in exchange for contribution in kind, up to a total of 10% of share capital, with overallotment options in the course of issuing new shares in the company. Furthermore, the Executive Board is authorised, with the approval of the Supervisory Board, to exclude shareholders' pre-emptive rights, when and if this authorisation (authorised capital) is exercised:
i) through issuing shares in exchange for contribution in kind, or
ii) through issuing shares to staff members, leading employees and members of the Executive Board of the Group or an associate up to a total level of 10% of share capital.
The Supervisory Board is authorised to rule on changes to the statutes which result from the Executive Board exercising this entitlement.
The capital reserves result largely from the capital increases, adjustments and statute-barred dividend claims arising from previous years and the current year, less the costs for the capital increase. The capital reserves include an amount of TEUR 192,764 (previous year: TEUR 190,491) which is restricted. It may only be released to compensate for an accumulated loss which would otherwise be shown in the annual financial statements of PORR AG, to the extent that free reserves are not available to cover this.
The other reserves comprise the revaluation reserves in accordance with IAS 16, the reserves from revaluation of the annual financial statements of subsidiaries in foreign currencies, the reserves for cash flow hedges, reserves for remeasurement from benefit obligations and debt securities held for sale, retained earnings of PORR AG including the statutory reserve and the untaxed reserves after deducting deferred tax items, retained profits from subsidiaries since their acquisition and the effects of adjusting the annual financial statements of companies included in the consolidated financial statements to the accounting and measurement methods used in the consolidated financial statements. Treasury shares as at 31 December 2016 were deducted from reserves and decreased through the scrip dividend issued in the business year 2016 (issuing dividend shares in the course of reinvestment) by 378,917 shares to 216,495 shares as of the reporting date.
In the reporting year a dividend of EUR 1.00 per dividend-bearing share was paid out to the shareholders of PORR AG along with an additional special dividend of EUR 0.50 per dividend-bearing share, thereby totalling EUR 42,783,204 for the business year 2015. The remainder was carried forward to new account. On 24 May 2106 the Annual General Meeting of PORR AG passed a resolution to pay out a special dividend in the form of a scrip dividend. The shareholders were thereby given the option of receiving the special dividend of EUR 0.50 per dividend-bearing share either in cash or in the form of dividend shares in the course of reinvestment. In accordance with the Annual General Meeting resolution, after the end of the subscription period on 15 June 2016, the Executive Board determined the subscription ratio as 54:1 and the reinvestment price as EUR 27.00, thereby at a 1.2% discount to the weighted average share price of PORR AG as of 15 June 2016. Rights were exercised for a total of 20,461,518 shares, corresponding to a take-up rate of around 71.8% of the shares entitled to subscribe. The special dividend of EUR 0.50 per dividend-bearing share was thereby exercised for a total of 378,917 PORR shares. The settlement of the dividend shares was concluded on 21 June 2016.
Net earnings amounting to TEUR 32,154 are available for distribution to shareholders in PORR AG. The unrestricted retained earnings of PORR AG, which come to TEUR 108,426 as of 31 December 2016 may be released and distributed to the shareholders of PORR AG. The statutory reserve of PORR AG of TEUR 458 (previous year: TEUR 458) may only be released to compensate for an accumulated loss which would otherwise be shown, whereby the release to cover the loss is not impeded by free reserves being available to compensate for the loss. From the net retained profits recognised in the statement of financial position of EUR 32,153,802.42, the Executive Board proposes to pay a dividend of EUR 1.10 per share entitled to dividends, with the remaining balance to be carried forward to new account.
As part of a PORR AG bond emission programme, a bond exchange was carried out in October 2014, in which holders of bonds issued by PORR AG in the years 2009 and 2010 were publicly invited to exchange these bonds in bonds about to be newly issued. Included here was the issue of a subordinated hybrid bond with a total nominal value of EUR 17,054,500. The hybrid bond was increased in the business year 2015 to EUR 25,000,000 in the course of a private placement. The partial debentures of this hybrid bond were issued with a denomination of EUR 500.00 and are fixed at 6.75% p.a. until 27 October 2021 during an unlimited term, after which they are subject to variable interest as of 28 October 2021 (3-month EURIBOR plus a premium of 8.5% p.a.). As payments of interest and capital redemption are only compulsory when the conditions are activated, where their activation can be authorised or prevented by PORR AG, and the Group therefore has the option of avoiding payment on the mezzanine and hybrid capital permanently, this mezzanine and hybrid capital is categorised as equity instruments. Interest of TEUR 1,688, which is paid, less any tax effect such as profit payouts, is recorded directly in equity as a deduction.
The profit-participation rights were issued by PORR Construction Holding GmbH (formerly ABAP Beteiligungs Holding GmbH), a subsidiary 100% of whose nominal capital is held by PORR AG. The outstanding profit-participation rights with a total nominal value of TEUR 40,000, whose issuance conditions are in accordance with debentures, are issued for an unspecified length of time.
The interest amounts to 8.0% p.a. of the nominal capital of the profit-participation rights at 31 December 2015. From 1 January 2016 up to and including 31 December 2020 the interest amounts to 6.66% of the nominal capital of the profit-participation rights. From 1 January 2021 the annual interest will be 13.0% of the nominal capital of the profit-participation rights.
The issuer is only obliged to pay interest if they or PORR AG decide to pay holdings or shareholders a dividend from the annual surplus. The issuer is not obliged to pay the due interest for one year in the absence of a profit payout, and if the issuer utilises their right not to pay, then this unpaid interest is kept in arrears which must be paid as soon as the issuer or PORR AG decides that a dividend from the annual surplus is payable to their holdings or shareholders. In the case of dismissal by the issuer or the extraordinary notice of dismissal by the bearers of profit-participation rights, the capital from profit-participation rights becomes due to the bearers, in addition to the valid interest accrued by this date and outstanding interest.
As payments on the profit-participation rights – interest as well as capital redemption – are only compulsory when the conditions are activated, where their activation can be authorised or prevented by PORR AG, and the Group therefore has the option of avoiding payment on this part of the profit participation rights permanently, these profit-participation rights are categorised as equity instruments. Interest in the amount of TEUR 3,200, which is paid on these profit-participation rights, less any tax, is recorded directly in equity as a deduction.
The shares in equity of subsidiaries which are not owned by PORR AG or a shareholder of the Group are entered in equity under non-controlling interests. The share of non-controlling interests in subsidiaries is of minor significance.
| in EUR thousand | Severance | Pensions | Anniversary bonuses |
Indemnities | Construc tions |
Recultivation | Other | Total |
|---|---|---|---|---|---|---|---|---|
| Balance at 1 Jan 2016 | 65,674 | 31,791 | 14,067 | 3,859 | 113,112 | 9,294 | 8,534 | 246,331 |
| Additions/disposals from changes to the consolidated group |
920 | 5 | 103 | - | 1,075 | 917 | 23 | 3,043 |
| Transfer | 3,854 | 747 | 3,617 | 365 | 50,350 | 796 | 4,959 | 64,688 |
| OCI changes | ||||||||
| from changes to demographic assumptions |
102 | - | - | - | - | - | - | 102 |
| from changes to financial assumptions |
3,331 | 2,538 | - | - | - | - | - | 5,869 |
| from changes to experience based adjustments |
303 | 713 | - | - | - | - | - | 1,016 |
| Appropriation | -4,103 | -2,414 | -1,160 | -724 | -36,382 | -1,122 | -1,850 | -47,755 |
| Liquidation | - | -36 | - | - | -18,789 | -573 | -974 | -20,372 |
| Balance at 31 Dec 2016 | 70,081 | 33,344 | 16,627 | 3,500 | 109,366 | 9,312 | 10,692 | 252,922 |
| of which non-current | 70,081 | 33,344 | 16,627 | 3,500 | - | 9,312 | - | 132,864 |
| of which current | - | - | - | - | 109,366 | - | 10,692 | 120,058 |
PORR AG and its subsidiaries must pay their employees in Austria and Germany anniversary bonuses on certain anniversaries in accordance with collective agreements. The provision for anniversary bonuses was determined in accordance with the provisions of IAS 19 on other long-term benefits. Please refer to the notes under the accounting and measurement methods with regard to the actuarial assumptions underlying the calculation.
At TEUR 11,434 (previous year: TEUR 15,746), provisions for constructions represent provisions for impending losses arising from the order backlog and, at TEUR 56,181 (previous year: TEUR 53,151), provisions for guarantees and TEUR 41,751 (previous year: TEUR 44,216) for provisions for damages and penalties. Provisions for impending losses are based on current contract calculations. Provisions for guarantees and other contract risks are determined on the basis of an individual assessment of the risks. Claims arising against the Group from these risks are deemed to be probable; the recognised amount corresponds to the best possible estimate of the amount of the claim. As construction contracts can take several years to be carried out, and any claim possibly precedes a long ongoing legal dispute, the time of the claim is uncertain but will as a rule lie within the relevant operating cycle. Provisions for rehabilitation that also contain aftercare obligations are mainly formed for the landfill business of BU 4 – Environmental Engineering, Healthcare & Services. The provisions are formed on the basis of the amounts of landfill over the operating life in instalments and are used across the term of the rehabilitation and/or the aftercare on the basis of the area rehabilitated.
Provisions for severance pay were created for employees (on wages and salaries) who have claims to severance payments pursuant to the Employee Act, the Wage Earners' Severance Pay Act or works agreements. Employees whose employment is subject to Austrian law, if the relevant employment began prior to 1 January 2003 and has been ongoing for at least ten years without interruption, have a claim to severance pay where the employment is terminated upon the employee's reaching the statutory age of retirement, even if the employment is terminated by the employee. The amount of the severance pay depends on the amount of the pay at the time of termination and of the length of employment. These employee claims should therefore be treated as claims under defined benefit pension plans, in which case plan assets do not exist to cover these claims. Similar considerations apply to employees to whom severance pay is due pursuant to the Wage Earners' Severance Pay Act and for severance pay payable pursuant to works agreements.
The Construction Workers' Leave and Severance Pay Act 1987 applies to the majority of waged workers, according to which their claims are directed towards the holiday pay and severance pay fund to be financed by employer's contributions. This is a state plan, for which a severance pay provision does not need to be created.
Pension commitments are as a rule defined individual benefit commitments for senior staff which are not covered by plan assets. The amount of the pension claim depends on the number of years' service in each case.
Changes within provisions for severance pay were as follows:
| in EUR thousand | 2016 | 2015 |
|---|---|---|
| Present value of severance obligations (DBO) at 1 Jan | 65,674 | 63,170 |
| Changes to the consolidated group | 920 | - |
| Prior service cost | 2,496 | 3,685 |
| Interest paid | 1,358 | 1,329 |
| Severance payments | -4,103 | -2,980 |
| Actuarial profits (-)/losses (+) | 3,736 | 470 |
| Present value of severance obligations (DBO) at 31 Dec | 70,081 | 65,674 |
| in EUR thousand | 2016 | 2015 |
|---|---|---|
| Prior service cost (entitlements) | 2,496 | 3,685 |
| Net interest expense | 1,358 | 1,329 |
| Severance costs (recognised in profit and loss for the period) | 3,854 | 5,014 |
For the year 2017, an interest expense of TEUR 1,089 and a current service cost of TEUR 3,873 are planned. Please refer to the notes on the accounting and measurement methods with regard to the actuarial assumptions underlying the calculation.
Pension provisions:
| in EUR thousand | 2016 | 2015 |
|---|---|---|
| Present value of obligations covered by plan assets | 21,038 | 20,438 |
| Fair value of the plan assets | -12,460 | -12,909 |
| Net value of the obligations covered by plan assets | 8,578 | 7,529 |
| Present value of the obligations not covered by plan assets | 24,766 | 24,262 |
| Carrying amount of provisions at 31 Dec | 33,344 | 31,791 |
| in EUR thousand | 2016 | 2015 |
|---|---|---|
| Service cost (entitlement) | 91 | 109 |
| Settlement | -36 | -512 |
| Interest expense | 956 | 1,033 |
| Interest income | -300 | -152 |
| Pension costs (recognised in profit and loss for the period) | 711 | 478 |
Description of pension plans:
Claims – Austria: as part of the defined benefit plans relating to pensions, the company is obliged to grant the promised benefits both to current and former employees.
The employee claims to defined benefit pension plans are defined as follows:
Group A (service contract dated 1 July 1991):
The pension allowance involves an agreed percentage of the basis of assessment (salary and overtime rate) for cases of retirement after reaching the age of 63 and is reduced by a defined percentage for every full year of retirement before reaching the age of 63.
Group B (service contract dated 5 August 1991) and Group C/D (service contract dated 6 August 1991): The pension allowance is determined as an agreed amount due upon retirement after reaching the age of 63 and is reduced by a defined amount for every full year of retirement before reaching the age of 63.
The pension allowance involves an agreed amount for retirement upon reaching the age of 60; this amount increases by a fixed annual amount for every year up to 63, whereby the maximum contribution is reached after reaching the age of 63.
Claims – Germany: there are multiple pension plans with defined benefits for current and former employees.
Employee claims to these defined benefit pension plans are tied to the number of eligible calendar years and the class of pension which were determined for the pension candidate when the claim was agreed.
In addition, there are individual commitments involving defined benefit obligations.
| 2016 | 2015 |
|---|---|
| 44,700 | 47,496 |
| 5 | 418 |
| 91 | 109 |
| 956 | 1,033 |
| -3,277 | -4,298 |
| -36 | -512 |
| 3,364 | 454 |
| 45,803 | 44,700 |
The obligations from the direct pension benefits in Austria are covered by insurance contracts concluded with WIENER STÄDTISCHE VERSICHERUNG AG Vienna Insurance Group. In Germany the obligations from direct pension benefits are covered by insurance contracts concluded with Nürnberger Lebensversicherung AG, Condor Lebensversicherung AG, Generali Lebensversicherung AG and Essener Verband. In order to secure the pension rights of the employees insured from the corporate pension benefits, the rights from the insurance agreements are pledged in favour of the employees insured. The insurance of the old-age pension is entitled to share in profits in line with Section 16 of the General Terms and Conditions Governing Endowment and Pension Insurance. The insurance for the disability pension and widows pension is also entitled to share in profits. To this end, a cash accounting statement is produced at the end of every insurance year. In the case of a profit, 50% of the balance of income and expenditure is refunded to the insurance policyholder. In the case of a loss, this is carried forward to the next insurance year. Profits can only be paid out again once the loss carryforward has been settled. The amount of the annual insurance premiums is determined by the insurance company's rates and is stated in the registry of members. The premiums must be paid annually in advance. The final annual premium must be paid in the year in which the policyholder reaches retirement age. The pension plan reinsurance is held in an independent department of the cover pool for life insurance as laid down in Section 20 Paragraph 2 Line 1 in connection with Section 2 of the Insurance Supervision Law.
Endowment life insurance policies have been concluded, e.g. with Nürnberger Lebensversicherung AG, for the pension benefits of the German companies. The insurance involves individual endowment policies which are ring-fenced. The policyholder is the employer, while the insured party/beneficiary is the employee who can choose between a lump sum or an annuity of equal value. The amount of the annuity is determined by the rates valid at the time of choosing and the corresponding insurance conditions. The contributions must be paid until the end of the insurance year in which the claim becomes valid (death or retirement). At the end of every insurance year the current profit participation (risk and interest surplus) is credited and converted into a bonus.
| in EUR thousand | 2016 | 2015 |
|---|---|---|
| Fair value of the plan assets at 1 Jan | 12,909 | 6,762 |
| Contribution payments | 78 | 6,537 |
| Interest income | 300 | 152 |
| Payouts (benefit payments) | -941 | -29 |
| Actuarial gains (-)/losses (+) | 114 | -513 |
| Fair value of the plan assets at 31 Dec | 12,460 | 12,909 |
For the year 2017, an interest payment of TEUR 718 and a current service cost of TEUR 97 are planned. Please refer to the notes on the accounting and measurement methods with regard to the actuarial assumptions underlying the calculation.
A part of the plan assets amounting to TEUR 11,487 has been assessed as follows by WIENER STÄDTISCHE VERSICHERUNG AG Vienna Insurance Group according to information from WIENER STÄDTISCHE VERSICHERUNG AG Vienna Insurance Group:
| in % | 2016 | 2015 |
|---|---|---|
| Fixed-income securities | 38.42 | 39.10 |
| Shares, supplementary capital, profit-participation rights, non-ownership capital |
4.48 | 4.85 |
| Investment funds | 34.64 | 32.30 |
| Affiliates and shareholdings | 6.18 | 6.22 |
| Loans | 10.80 | 10.88 |
| Property | 3.96 | 3.20 |
| Cash in bank | 1.52 | 3.45 |
| Total | 100.00 | 100.00 |
The following table shows the average duration of the respective obligations:
| Maturity profile – DBO | DBO | Maturity profile – Cash | Cash | |||||
|---|---|---|---|---|---|---|---|---|
| 1–5 years | 6–10 years | 10+ years | Duration | 1–5 years | 6–10 years | 10+ years | Duration | |
| Pensions | 14,641 | 11,185 | 19,355 | 10,58 | 15,273 | 12,679 | 27,387 | 12,25 |
| Severance | 26,663 | 17,462 | 25,637 | 8,61 | 29,948 | 26,575 | 92,705 | 14,36 |
Employees whose employment is subject to Austrian law and who commenced employment after 31 December 2002, and workers to whose employment the Construction Workers' Leave and Severance Pay Act is applicable, do not acquire any severance pay claims in respect of their respective employer. For these employees, except for those to whose employment the Construction Workers' Leave and Severance Pay Act is applicable, contributions of 1.53% of the wage or salary must be paid to an employee welfare fund; this amounted to TEUR 2,090 (previous year: TEUR 1,812) in 2016, of which TEUR 53 (previous year: TEUR 46) related to managers in key positions.
Contributions are payable by the employer to the holiday pay and severance pay fund in respect of those employees whose employment is covered by the Construction Workers' Leave and Severance Pay Act. At the present time, around 37% of the wage of relevant employees is payable to the holiday pay fund for 2016, amounting to TEUR 44,926 (previous year: TEUR 43,434) and 4.6% of the wage of relevant employees is payable to the severance pay fund, amounting to TEUR 6,500 in 2016 (previous year: TEUR 6,350). This contribution covers employee severance pay claims and other benefits, in particular the holiday pay and holiday allowance payable by the holiday pay and severance pay fund to the relevant employees. This state plan covers all the companies in the building sector. The benefits are financed on a pay-as-you-earn basis, i.e. the benefits falling due in a particular period are to be financed by the contributions of this same period, while the future benefits earned in the period under review will be funded by future contributions. The companies are not legally or actually obliged to pay these future benefits. The companies are only obliged to pay the prescribed contributions as long as they employ workers whose employment is covered by the Construction Workers' Leave and Severance Pay Act.
Payments to external employee provision funds are recognised under the item staff expense.
The employees of the PORR Group also belong to their country-specific, state pension plans, which are usually funded on a pay-as-you-earn basis. The Group is only obliged to pay the contributions when they become due. There is no legal or actual obligation to provide future benefits.
As of the value date 28 October 2014, PORR AG made an exchange offer to the bondholders of the bonds issued in 2009 and 2010. The bondholders could choose between the instrument recognised as equity (hybrid bond 6.75% 2014–2021, see note 31) and a senior bond. The senior bond was issued under the following conditions:
| Nominal amount | EUR 56,262,000.00 |
|---|---|
| Tenor | 2014–2019 |
| Denomination | EUR 500.00 |
| Nominal interest rate | 3.875% p.a. |
| Coupon | 28 October annually |
| Redemption | 28 October 2019 at 100% |
| Closing rate 31 Dec 2016 | 106.28 |
| ISIN | AT0000A19Y28 |
| Book value (less treasury shares) | EUR 55,108,509.03 |
As of the value date 26 November 2013, one bond with the following conditions was issued by PORR AG:
| Nominal amount | EUR 50,000,000.00 |
|---|---|
| Tenor | 2013–2018 |
| Denomination | EUR 1,000.00 |
| Nominal interest rate | 6.25% p.a. |
| Coupon | 26 November annually |
| Redemption | 26 November 2018 at 100% |
| Closing rate 31 Dec 2016 | 108.25 |
| ISIN/WKN | DE000A1HSNV2/A1HSNV |
| Book value (less treasury shares) | EUR 46,352,071.23 |
The bond was issued for subscription on the Austrian and German capital markets.
On 12 August 2015 PORR AG placed a Schuldscheindarlehen (SSD) totalling TEUR 185,500. The issue consists of four tranches with terms of three and five years and with a choice of interest at fixed or variable rates.
In August 2016 investors were offered the option of a premature extension of the terms for three, five and seven years. In addition, the volume was increased from TEUR 185,500 to a total of TEUR 200,000.
| in EUR | Nominal amount | Tenor | Interest | Interest rate |
|---|---|---|---|---|
| Tranche 1 | 21,000,000.00 | 13.8.2018 | fixed | 1.764% |
| Tranche 2 | 38,000,000.00 | 13.8.2018 | variable | 6-month EURIBOR + 1.6% |
| Tranche 3 | 1,000,000.00 | 12.8.2019 | fixed | 1.15% |
| Tranche 4 | 30,000,000.00 | 12.8.2019 | variable | 6-month EURIBOR + 1.15% |
| Tranche 5 | 11,000,000.00 | 12.8.2020 | fixed | 2.249% |
| Tranche 6 | 20,000,000.00 | 12.8.2020 | variable | 6-month EURIBOR + 1.85% |
| Tranche 7 | 37,000,000.00 | 12.8.2021 | fixed | 1.55% |
| Tranche 8 | 27,000,000.00 | 12.8.2021 | variable | 6-month EURIBOR + 1.55% |
| Tranche 9 | 5,000,000.00 | 12.8.2023 | fixed | 1.917% |
| Tranche 10 | 10,000,000.00 | 12.8.2023 | variable | 6-month EURIBOR + 1.9% |
| Carrying amount at 31 Dec 2016 |
199,200,670.50 |
All tranches subject to variable interest have been hedged using interest rate swaps (swapping variable rate for fixed rate), classified as a cash flow hedge.
| in EUR thousand | 2016 | 2015 |
|---|---|---|
| Deposits from banks | ||
| subject to interest at variable rates | 21,648 | 34,802 |
| subject to interest at fixed rates | 17,250 | 19,787 |
| Lease obligations | ||
| subject to interest at variable rates | 81,851 | 95,304 |
| Derivative financial instruments | 1,707 | 1,077 |
| Total | 122,456 | 150,970 |
Deposits from banks subject to variable rates of interest are mainly charged interest at the 3-month EURIBOR rate or the 6-month EURIBOR rate plus differing margins. During the year under review the 3-month EURIBOR rate averaged out at 0.26% and the 6-month EURIBOR rate at an average -0.17%. The margins for newly acquired funds with a maximum 3-month term averaged 1.71PP in 2016.
Some items of real estate and equipment used by the Group itself are held under finance leases (see note 18). The interest rates for the lease obligations are between 1.28% and 2.9%. The interest component of the lease payments is usually continuously adjusted to the market interest rate. With the exception of these leasing rate adjustments to reference interest rates, no agreements on conditional rental payments are included.
Derivative financial instruments include forward contracts and interest rate hedges, which are measured at fair value at the end of the reporting period (see note 43).
| in EUR thousand | 31.12.2016 | Remaining term < 1 year |
Remaining term 1–5 years |
Remaining term > 5 years |
of which secured by collateral |
|---|---|---|---|---|---|
| Deposits from banks | 38,898 | 14,537 | 20,482 | 3,879 | 597 |
| Lease obligations | 81,851 | 27,749 | 47,453 | 6,649 | 81,851 |
| Derivative financial instruments | 1,707 | 1,707 | - | - | - |
| Total | 122,456 | 43,993 | 67,935 | 10,528 | 82,448 |
| in EUR thousand | 31.12.2015 | Remaining term < 1 year |
Remaining term 1–5 years |
Remaining term > 5 years |
of which secured by collateral |
|---|---|---|---|---|---|
| Deposits from banks | 54,589 | 25,035 | 18,978 | 10,576 | 22,842 |
| Lease obligations | 95,304 | 22,935 | 63,041 | 9,328 | 95,304 |
| Derivative financial instruments | 1,077 | 1,077 | - | - | - |
| Total | 150,970 | 49,047 | 82,019 | 19,904 | 118,146 |
Deposits from banks which are secured by collateral relate to real estate. Group obligations under finance leases are secured by the leased assets totalling a carrying amount of TEUR 104,125 (previous year: TEUR 114,123) which are the property of the lessor under civil law.
| in EUR thousand | 31.12.2016 | 31.12.2015 |
|---|---|---|
| With a remaining period up to one year | 29,317 | 24,925 |
| With a remaining period of more than one year and less than five years | 49,535 | 66,238 |
| With a remaining period of more than five years | 6,990 | 9,892 |
| Total | 85,842 | 101,055 |
| Future financing costs | -3,991 | -5,751 |
| Present value of minimum leasing payments | 81,851 | 95,304 |
| Remaining term | Remaining term | Remaining term | of which secured | ||
|---|---|---|---|---|---|
| in EUR thousand | 31.12.2016 | < 1 year | 1–5 years | > 5 years | by collateral |
| Trade payables | 754,282 | 719,301 | 28,365 | 6,616 | - |
| Payables to consortiums | 31,348 | 31,348 | - | - | - |
| Total | 785,630 | 750,649 | 28,365 | 6,616 | - |
| In EUR thousand | 31.12.2015 | Remaining term < 1 year |
Remaining term 1–5 years |
Remaining term > 5 years |
of which secured by collateral |
|---|---|---|---|---|---|
| Trade payables | 597,440 | 541,226 | 50,897 | 5,317 | - |
| Payables to consortiums | 34,273 | 34,273 | - | - | - |
| Total | 631,713 | 575,499 | 50,897 | 5,317 | - |
Trade payables are classified as current as they are to be settled within the entity's normal operating cycle.
| in EUR thousand | 31.12.2016 | Remaining term < 1 year |
Remaining term 1–5 years |
Remaining term > 5 years |
of which secured by collateral |
|---|---|---|---|---|---|
| Payables to non-consolidated subsidiaries | 243 | 243 | - | - | - |
| Payables to companies accounted for under the equity method |
7,769 | 7,766 | 3 | - | - |
| Payables to other shareholdings | 455 | 455 | - | - | - |
| Other | 13,941 | 10,768 | 3,132 | 41 | - |
| Total | 22,408 | 19,232 | 3,135 | 41 | - |
| in EUR thousand | 31.12.2015 | Remaining term < 1 year |
Remaining term 1–5 years |
Remaining term > 5 years |
of which secured by collateral |
|---|---|---|---|---|---|
| Payables to non-consolidated subsidiaries | 391 | 391 | - | - | - |
| Payables to companies accounted for under the equity method |
4,917 | 4,711 | 138 | 68 | - |
| Payables to other shareholdings | 1,162 | 1,162 | - | - | - |
| Other | 30,390 | 28,706 | 855 | 829 | - |
| Total | 36,860 | 34,970 | 993 | 897 | - |
| in EUR thousand | 31.12.2016 | Remaining term < 1 year |
Remaining term 1–5 years |
Remaining term > 5 years |
of which secured by collateral |
|---|---|---|---|---|---|
| Tax liabilities | 55,016 | 55,016 | - | - | - |
| Social security liabilities | 16,408 | 16,408 | - | - | - |
| Advances received POC | 193,074 | 193,074 | - | - | - |
| Payables to staff | 102,280 | 102,280 | - | - | - |
| Other | 2,155 | 2,155 | - | - | - |
| Total | 368,933 | 368,933 | - | - | - |
| Remaining term | Remaining term | Remaining term | of which secured | ||
|---|---|---|---|---|---|
| in EUR thousand | 31.12.2015 | < 1 year | 1–5 years | > 5 years | by collateral |
| Tax liabilities | 76,467 | 76,467 | - | - | - |
| Social security liabilities | 15,425 | 15,425 | - | - | - |
| Advances received POC | 251,995 | 251,995 | - | - | - |
| Payables to staff | 93,680 | 93,680 | - | - | - |
| Other | 3,450 | 3,450 | - | - | - |
| Total | 441,017 | 441,017 | - | - | - |
| in EUR thousand | 2016 | 2015 |
|---|---|---|
| Guarantees, guarantee bonds and other contingent liabilities | 4,584 | 5,085 |
| of which for companies accounted for under the equity method | (119) | (988) |
The guarantees primarily relate to securing bank loans of non-consolidated subsidiaries, companies accounted for under the equity method and other companies in which the Group holds a stake, as well as other liabilities from the operational business whose availment is theoretically possible, but considered highly improbable.
The operational construction business requires various types of guarantees in order to safeguard contractual obligations. This generally relates to guarantees for tenders, contract fulfilment, advance payment and warranty. Apart from that the Group is jointly and severally liable for all consortiums in which it participates. Claims arising from these liabilities are not likely.
The Group has access to European credit lines totalling TEUR 2,336,869 (previous year: TEUR 1,621,100). Of these credit lines, TEUR 961,000 (previous year: TEUR 641,200) was concluded with a three-year term. The remainder of TEUR 1,375,869 (previous year: TEUR 979,900) generally run for a one-year term. Furthermore, there were credit lines in several Arabic countries of TEUR 583,647 (previous year: TEUR 539,400). As at 31 December 2016, around 49% (previous year: 59%) of the European credit lines had been drawn on and around 33% (previous year: 37%) of the lines in Arabic countries.
The three-year credit lines of TEUR 961,000 (previous year: TEUR 641,200) include harmonised financial covenants. The majority of these relate to the ratio between net debt and EBITDA or to the equity ratio.
All triggers had been met as of 31 December 2016. On the basis of the planned development, it is assumed that they will be met again on the next effective date, 31 December 2017.
Segment reporting has been adapted in line with the new internal reporting and controlling structure of the PORR Group. The comparative figures have been retrospectively adjusted to the new structure; a comparison with the segment information as of 31 December 2015 is only possible to a limited extent. IFRS are the standards used for all business transactions between segments. The following segments are presented:
Segment Business Unit 1 – Austria, Switzerland, Czech Republic: This segment covers the PORR Group's operating business on the home markets of Austria, Switzerland and the Czech Republic. A full range of products and services is offered.
Segment Business Unit 2 – Germany: This segment covers the PORR Group's operating business on the home market of Germany. A full range of products and services is offered.
Segment Business Unit 3 – International: This segment contains the project-driven business activities in Poland, the Nordic region, Qatar, Slovakia, Romania, Bulgaria, UK and other future target countries. It also includes the competencies in tunnelling, railway construction and bridge building.
Segment Business Unit 4 – Environmental Engineering, Healthcare & Services: This segment contains PORR Umwelttechnik GmbH as well as the equity interests PRAJO, TKDZ und PWW, hospitals, PORREAL and STRAUSS Property Management, Thorn, ALU-SOMMER and the activities in PPP.
Holding: This segment consists of Group services, PORR Design & Engineering GmbH and PORR Design & Engineering Deutschland GmbH.
| Group | |||||
|---|---|---|---|---|---|
| 2,124,767 | 455,813 | 1,082,407 | 218,540 | 43,812 | 3,925,339 |
| 1,900,192 | 543,588 | 938,421 | 109,849 | 31,325 | 3,523,375 |
| 25,943 | 14,391 | 10,037 | 16,893 | 124,185 | |
| 69,432 | 3,719 | 17,084 | 673 | 160 | 91,068 |
| 25,881 | 14,965 | 323 | 5,054 | 29 | 46,252 |
| -53,320 | -11,480 | -5,326 | -8,447 | -8,710 | -87,283 |
| - | - | - | -1,500 | - | -1,500 |
| 2,414 | 206 | 1,022 | 1,245 | 7,702 | 12,589 |
| -5,001 | -629 | -1,026 | -580 | -17,071 | -24,307 |
| BU 1 – Austria, Switzerland, Czech Republic |
BU 2 – Germany | BU 3 – Inter national |
BU 4 – Environ mental Enginee ring, Healthcare & Services |
Holding |
| BU 4 – Environ | ||||||
|---|---|---|---|---|---|---|
| BU 1 – Austria, Switzerland, |
BU 3 – Inter | mental Enginee ring, Healthcare & |
||||
| in EUR thousand | Czech Republic | BU 2 – Germany | national | Services | Holding | Group |
| Production output (Group) | 1,906,639 | 374,435 | 1,076,796 | 153,118 | 12,764 | 3,523,752 |
| Segment revenue (revenue, own work capitalised and other operating income) |
1,744,322 | 456,158 | 925,841 | 99,078 | 16,645 | 3,242,044 |
| Intersegment revenue | 23,492 | 12,897 | 5,487 | 21,238 | 130,577 | |
| EBT (Earnings before tax = segment earnings) |
61,653 | 2,400 | 19,975 | -4,180 | 1,265 | 81,113 |
| Share of profit/loss of companies ac counted for under the equity method |
22,163 | 6,323 | 11,916 | 7,906 | -2,075 | 46,233 |
| Depreciation, amortisation and impairment expense |
-42,621 | -10,714 | -5,827 | -12,810 | -6,200 | -78,172 |
| of which impairment | - | - | - | -3,303 | - | -3,303 |
| Interest income | 2,074 | 155 | 1,147 | 454 | 12,548 | 16,378 |
| Interest expense | -5,080 | -1,062 | -1,106 | -573 | -17,804 | -25,625 |
The following information relates to geographic business areas in which the Group is active.
| in EUR thousand | Production output by customer base 2016 |
Non-current assets by company base 2016 |
Production output by customer base 2015 |
Non-current assets by company base 2015 |
|---|---|---|---|---|
| Domestic | 2,055,235 | 445,915 | 1,870,600 | 398,839 |
| Germany | 801,646 | 88,827 | 634,201 | 79,008 |
| Poland | 253,969 | 36,289 | 251,397 | 37,767 |
| Czech Republic | 164,137 | 10,354 | 156,727 | 13,564 |
| Qatar | 317,492 | 10,495 | 278,175 | 194 |
| Hungary | 4,945 | 84 | 4,077 | 1,731 |
| Romania | 88,170 | 4,094 | 96,217 | 3,098 |
| Bulgaria | 7,171 | 1,601 | 51,734 | 2,136 |
| Switzerland | 155,708 | 7,100 | 125,238 | 6,427 |
| Serbia | 10,223 | 16,760 | 11,685 | 16,599 |
| Albania | 1,300 | - | 2,263 | - |
| Slovakia | 17,994 | 1,659 | 10,012 | 1,689 |
| Norway | 33,279 | 1,477 | 8,969 | - |
| Croatia | 1,890 | 2,385 | 3,212 | 3,256 |
| Other foreign | 12,180 | 129 | 19,245 | 253 |
| Total foreign | 1,870,104 | 181,254 | 1,653,152 | 165,722 |
| Segment total | 3,925,339 | 627,169 | 3,523,752 | 564,561 |
The cash flow statement is broken down into separate cash flows from operating, investing and financing activities, in which the cash flow from operating activities is derived according to the indirect method. The financial fund exclusively comprises cash on hand/at bank and corresponds to the value shown in the statement of financial position for cash and cash equivalents.
The fundamental aim of the Group's capital management is to substantially increase equity and to keep debt low.
In the year under review PORR succeeded in increasing equity by around TEUR 28,754. It was thereby possible to increase the equity ratio by 0.79PP to 18.7% despite the growth in total assets. Non-current liabilities subject to interest of TEUR 379,125 remained at practically the same level as the previous year. As the result of the repayment of a bond in November 2016, the Group succeeded in reducing current liabilities from TEUR 94,899 to TEUR 43,993, a decrease of 54%.
At 31 December 2016 the net cash position, defined as the balance of cash and cash equivalents, bonds and current and non-current financial liabilities, totalled TEUR 53,312 (previous year: TEUR 186,526).
The net gearing ratio, defined as net financial debt divided by equity, is applied for the control of capital management. The net gearing remained negative and fell due to the lower net cash position from -0.5 to -0.12.
| Fair value | |||||||
|---|---|---|---|---|---|---|---|
| Carrying | (Continuing) | other com | Fair value | ||||
| Measurement | amount at | acquisition | prehensive | affecting net | Fair value | Fair value at | |
| in EUR thousand | category | 31 Dec 2016 | costs | income | income | hierarchy | 31 Dec 2016 |
| Assets | |||||||
| Loans | LaR | 23,254 | 23,254 | ||||
| Other financial assets1 | AfS (at cost) | 4,495 | 4,495 | ||||
| Other financial assets | AfS | 10,690 | 10,690 | Level 1 | 10,690 | ||
| Other financial assets | AfS | 74,727 | 74,727 | Level 3 | 74,727 | ||
| Trade receivables | LaR | 930,029 | 930,029 | ||||
| Other financial assets | LaR | 78,517 | 78,517 | ||||
| Derivatives (without hedges) | FAHfT | 23 | 23 | Level 2 | 23 | ||
| Cash and cash equivalents | 476,430 | 476,430 | |||||
| Liabilities | |||||||
| Bonds | |||||||
| at fixed interest rates | FLAC | 101,461 | 101,461 | Level 1 | 109,648 | ||
| Schuldscheindarlehen | |||||||
| at fixed interest rates | FLAC | 74,697 | 74,697 | Level 3 | 75,915 | ||
| at variable interest rates | FLAC | 124,504 | 124,504 | ||||
| Deposits from banks | |||||||
| at fixed interest rates | FLAC | 17,250 | 17,250 | Level 3 | 17,611 | ||
| at variable interest rates | FLAC | 21,648 | 21,648 | ||||
| Lease obligations2 | 81,851 | 81,851 | |||||
| Trade payables | FLAC | 785,630 | 785,630 | ||||
| Other financial liabilities | FLAC | 22,408 | 22,408 | ||||
| Derivatives (without hedges) | FLHfT | 463 | 463 | Level 2 | 463 | ||
| Derivatives (with hedges) | 1,244 | 1,244 | Level 2 | 1,244 | |||
| by category: | |||||||
| Loans and receivables | LaR | 1,031,800 | 1,031,800 | ||||
| Cash and cash equivalents | 476,430 | 476,430 | |||||
| Available-for-sale financial assets1 | AfS (at cost) | 4,495 | 4,495 | ||||
| Available-for-sale financial assets | AfS | 85,417 | 85,417 | ||||
| Financial assets held for trading | FAHfT | 23 | 23 | ||||
| Financial liabilities held for trading | FLHfT | 463 | 463 | ||||
| Derivative liabilities (with hedges) | 1,244 | 1,244 | |||||
| Financial liabilities measured at | |||||||
| amortised cost | FLAC | 1,147,598 | 1,147,598 |
The carrying amount of the financial instruments not measured at fair value corresponds to an appropriate approximation of the fair value in accordance with IFRS 7.29. The exception is 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).
The fair value valuation for derivatives is determined in accordance with market data from information service provider Reuters. Liabilities from bank loans and overdrafts are valued under the discounted cash flow valuation method, whereby the zero coupon yield curve published by REUTERS as of 31 December 2016 was used for the discounting of the cash flow.
| Fair value | |||||||
|---|---|---|---|---|---|---|---|
| Carrying | (Continuing) | other com | Fair value | ||||
| in EUR thousand | Measurement category |
amount at 31 Dec 2015 |
acquisition costs |
prehensive income |
affecting net income |
Fair value hierarchy |
Fair value at 31 Dec 2015 |
| Assets | |||||||
| Loans | LaR | 1,158 | 1,158 | ||||
| Other financial assets1 | AfS (at cost) | 4,694 | 4,694 | ||||
| Other financial assets | AfS | 10,781 | 10,781 | Level 1 | 10,781 | ||
| Other financial assets | AfS | 74,142 | 74,142 | Level 3 | 74,142 | ||
| Trade receivables | LaR | 751,855 | 751,855 | ||||
| Other financial assets | LaR | 91,204 | 91,204 | ||||
| Other financial assets | FAHfT | 1,953 | 1,953 | Level 1 | 1,953 | ||
| Other financial assets | AfS | 25,000 | 25,000 | Level 1 | 25,000 | ||
| Derivatives (without hedges) | FAHfT | 668 | 668 | Level 2 | 668 | ||
| Cash and cash equivalents | 647,243 | 647,243 | |||||
| Liabilities | |||||||
| Bonds | |||||||
| at fixed interest rates | FLAC | 151,743 | 151,743 | Level 1 | 166,244 | ||
| Schuldscheindarlehen | |||||||
| at fixed interest rates | FLAC | 32,000 | 32,000 | Level 3 | 32,290 | ||
| at variable interest rates | FLAC | 152,957 | 152,957 | ||||
| Deposits from banks | |||||||
| at fixed interest rates | FLAC | 19,787 | 19,787 | Level 3 | 19,701 | ||
| at variable interest rates | FLAC | 34,802 | 34,802 | ||||
| Lease obligations2 | 95,304 | 95,304 | |||||
| Trade payables | FLAC | 631,713 | 631,713 | ||||
| Other financial liabilities | FLAC | 36,860 | 36,860 | ||||
| Derivatives (without hedges) | FLHfT | 2 | 2 | Level 2 | 2 | ||
| Derivatives (with hedges) | 1,075 | 1,075 | Level 2 | 1,075 | |||
| by category: | |||||||
| Loans and receivables | LaR | 844,217 | 844,217 | ||||
| Cash and cash equivalents | 647,243 | 647,243 | |||||
| Available-for-sale financial assets1 | AfS (at cost) | 4,694 | 4,694 | ||||
| Available-for-sale financial assets | AfS | 109,923 | 109,923 | ||||
| Financial assets held for trading | FAHfT | 2,621 | 2,621 | ||||
| Financial liabilities held for trading | FLHfT | 2 | 2 | ||||
| Derivative liabilities (with hedges) | 1,075 | 1,075 | |||||
| Financial liabilities measured at amor | |||||||
| tised cost | FLAC | 1,059,862 | 1,059,862 |
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 it is 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.
Details on fair value financial instruments Level 3:
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:
– 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.
– If the current market pricing is higher than the contractually agreed coupon, then a discount is applied to the nominal amount.
– If the current market pricing is lower than the contractually agreed coupon, then a surcharge is applied to the nominal amount.
Balance at 31 December 2016
| Mid swap | Credit spread | Hybrid spread | Hybrid coupon in % | ||||
|---|---|---|---|---|---|---|---|
| 8.2 | 375 | 330 | 7.132 | ||||
| in EUR thousand | Hybrid coupon in % | Nominal amount | Change in value | Faiv value | |||
| Mezzanine capital | 6.5 | 50,000 | -316 | 49,684 | |||
| Hybrid capital | 6.0 | 25,330 | -287 | 25,043 |
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.
| in EUR thousand | from interest/ income |
at fair value | Allowances | from disposal | Net income 2016 | |
|---|---|---|---|---|---|---|
| Loans and receivables | LaR | 7,486 | - | - | - | 7,486 |
| Available-for-sale financial assets | AfS (at cost) | 2,324 | - | -318 | 987 | 2,993 |
| Available-for-sale financial assets | AfS | 5,103 | 497 | - | -261 | 5,339 |
| Derivatives (without hedges) | FAHfT/ FLHfT |
- | -1,275 | - | - | -1,275 |
| Financial liabilities measured at amortised cost |
FLAC | -19,031 | - | - | - | -19,031 |
| from subsequent measurement | ||||||
|---|---|---|---|---|---|---|
| in EUR thousand | from interest/ income |
at fair value | Allowances | from disposal | Net income 2015 | |
| Loans and receivables | LaR | 8,276 | - | - | - | 8,276 |
| Available-for-sale financial assets | AfS (at cost) | 2,779 | - | -2,043 | 1,237 | 1,973 |
| Available-for-sale financial assets | AfS | 8,103 | -1,292 | 749 | - | 7,560 |
| Derivatives (without hedges) | FAHfT/ FLHfT |
- | -415 | - | - | -415 |
| Financial liabilities measured at amortised cost |
FLAC | -20,987 | - | - | - | -20,987 |
Managing financial risks, in particular liquidity risks and interest rate/currency risks are governed by standard Group guidelines. The management's aim is to minimise the risks as far as possible. Hence, derivative and non-derivative hedging instruments are used in line with evaluations. Nevertheless, in general the only risks which are anticipated are those which have consequences on the Group's cash flow. Derivative financial instruments are used exclusively as hedging instruments, i.e. they are not used for trade or other speculative purposes.
All hedge transactions are performed centrally by the Group treasury, unless in specific cases other Group companies are authorised to conclude transactions outside the Group treasury. An internal control system designed around current requirements has been implemented to monitor and control risks linked to money market and foreign exchange trading. All Group treasury activities are subject to strict risk/processing control, the cornerstone of which is the functional separation of commerce, processing and accounting.
The liquidity risk is defined as the risk that liabilities cannot be paid upon maturity.
Managing the liquidity risk is based on a financial plan updated once a quarter, which originates at operational level. For all projects a designated commercial employee conducts individual and monthly planning for the current year and for the subsequent years. The operational component involves planning all cash-related financial issues such as due dates for financing, M&A and capital market transactions, interest and dividends; this is performed centrally at holding level with the person holding Group responsibility.
At year-end 2016 the Group had a high liquidity level of TEUR 476,430; this liquidity is used on the one hand for the seasonal peak liquidity demand from April to November (typical to the construction industry), as well as for settling loans due and loans which could be paid back earlier in order to optimise interest rate payments, and for corporate acquisitions. Should additional liquidity demand arise, this could provisionally be covered by drawing on existing lines of credit.
At 31 December 2016 the net cash position, defined as the balance from cash and cash equivalents, debt securities in current assets, bonds and current and non-current financial liabilities, amounted to TEUR 53,312 (previous year: TEUR 186,526).
Current financial liabilities, defined as the current portion of bonds and de facto current financial liabilities, amount to TEUR 43,993 (previous year: TEUR 94,899) and are covered by cash and cash equivalents and assets held for sale of TEUR 480,454 (previous year: TEUR 651,160).
Bonds and Schuldscheindarlehen worth TEUR 300,666 were part of non-current financial liabilities of TEUR 379,125.
At 31 December 2016 there was TEUR 204,734 (previous year: TEUR 211,947), available in bank lines for cash loans, which could be drawn on for immediate refinancing of current financial liabilities. With regard to the syndicated guaranteed credit line which was granted and used, see note 40.
| Non-discounted payment flow | ||||||
|---|---|---|---|---|---|---|
| in EUR thousand | Average interest rate |
until March 2017 | April to Dec 2017 | 2018 to 2021 | from 2022 | |
| Bonds | ||||||
| at fixed interest rates | 4.99% | - | 5,305 | 113,747 | - | |
| Schuldscheindarlehen | ||||||
| at fixed interest rates | 1.73% | - | 1,300 | 73,810 | 5,191 | |
| at variable interest rates | 1.55% | 991 | 973 | 119,904 | 10,385 | |
| Deposits from banks | ||||||
| at fixed interest rates | 2.05% | 88 | 285 | 15,567 | 2,701 | |
| at variable interest rates | 1.24% | 13,825 | 828 | 6,183 | 1,251 | |
| Lease obligations | 2.59% | 7,499 | 21,818 | 49,535 | 6,990 | |
| Trade payables | interest-free | 699,834 | 19,467 | 34,981 | - |
| Non-discounted payment flow | ||||||
|---|---|---|---|---|---|---|
| in EUR thousand | Average interest rate |
until March 2016 | April to Dec 2016 | 2017 to 2020 | from 2021 | |
| Bonds | ||||||
| at fixed interest rates | 5.39% | - | 58,430 | 119,052 | - | |
| Schuldscheindarlehen | ||||||
| at fixed interest rates | 1.93% | - | 620 | 33,730 | - | |
| at variable interest rates | 1.72% | 1,392 | 1,333 | 166,119 | - | |
| Deposits from banks | ||||||
| at fixed interest rates | 2.12% | 991 | 352 | 11,204 | 9,523 | |
| at variable interest rates | 2.25% | 22,564 | 1,768 | 9,523 | 1,661 | |
| Lease obligations | 2.87% | 7,517 | 17,408 | 66,238 | 9,892 | |
| Trade payables | interest-free | 526,999 | 14,227 | 56,214 | - |
Payables to consortiums and other financial liabilities largely lead to cash outflows at the carrying amounts upon maturity.
The Group's interest rate risk is defined as the risk from rising interest cost or falling interest income in connection with financial items. For PORR this risk results primarily from the scenario of rises in interest rates, especially in the short term. Any future hedge transactions that are required will be concluded by the Group's financial management. At the end of the reporting period, the management of this risk was conducted with non-derivative instruments as well as two interest rate swaps totalling TEUR 125,000 and three interest rate swaps with start dates in the future totalling TEUR 67,000. All derivative hedges are designated as cash-flow hedges. All interest rate swaps relate to swapping variable interest flows for fixed interest flows. As of 31 December 2016 the market value of the interest rate swaps had a fair value of TEUR –1,244.
An analysis of the floating interest rate position at 31 December 2016 amounting to around TEUR 71,889 showed the following sensitivities which would occur under the scenarios of an interest rate decrease of 0.01 PP and 0.02 PP. The extent of the interest rate decrease is based on the average volatility of the 3-month and 6-month EURIBOR in 2016. An interest rate bandwidth of 1 BPS therefore falls statistically within a probability band of 67% and the probability of an interest rate bandwidth of 2 BPS is respectively 99%. The simulated impact on interest rates is as follows:
| in EUR thousand | lower payable interest for the year 2017 | lower payable interest (p.a.) with straight-line extrapolation from 2018 |
|---|---|---|
| at interest rate rise of 0.01PP | 9 | 7 |
| at interest rate rise of 0.02PP | 18 | 15 |
The foreign currency risk is treated within the PORR Group as transaction-oriented and results either from construction contracts or from financing in connection with such contracts. Group policy is to hedge the operational foreign currency risks completely. In accordance with the respective functional currency of the Group unit which is processing the order, we aim to conduct local orders in the corresponding national currencies. This happens in every instance in which the services to be rendered are locally generated. If this does not succeed, or if services must be provided in other currencies, the resulting risk is secured by hedging. With regard to derivative financial instruments, the Group financial management exclusively use forward contracts and first generation currency options (see note 43.8.).
As of 31 December 2016, currency risks, which primarily result from intragroup financing transactions, were subject to a simulation, in order to be able to estimate possible risks from changes to foreign exchange rates:
| FX position in local currency | |||
|---|---|---|---|
| FX position in EUR thousand | Local currency | in thousand | VAR1 in EUR thousand |
| -20,760 | QAR | 79,614 | 802 |
| 23,397 | CZK | -632,216 | 501 |
| 6,581 | CHF | -7,068 | 236 |
| -13,037 | RON | 59,176 | 155 |
| 4,194 | HUF | -1,299,330 | 129 |
| -3,598 | various | various currencies | 239 |
1 VAR = Value At Risk at a one-sided 99% confidence interval, this corresponds to a standard deviation of 2.33 over a time period of ten days. Correlations between currency pairs remain unconsidered.
The simulated maximum loss at a probability of 99% and over a time period of ten days is currently around TEUR 2,061.
The PORR Group had concluded forward exchange contracts of TEUR 59,337 (previous year: TEUR 90,727) at 31 December 2016; of these, TEUR 49,112 were forward purchases and TEUR 10,224 were forward sales. Around TEUR 13,776 (previous year: TEUR 43,293) are used as hedges for project cash flows and the remainder of TEUR 45,561 (previous year: TEUR 47,434) for hedging intragroup financing.
At 31 December 2016 the market valuation of open forward exchange contracts resulted in a negative fair value of TEUR -440. In the fiscal year 2016 total expense of TEUR 1,106 which resulted from changes in the fair value of forward contracts was recognised in profit or loss.
The following table shows the predicted contractual due dates for payments from forward contracts as estimated on 31 December 2016, i.e. when payments from the underlying transactions are expected:
| EUR forward purchases | Cash flows in EUR thousand | |||||||
|---|---|---|---|---|---|---|---|---|
| Due date | GBP | CHF | NOK | RON | QAR | Total | ||
| Jan 2017 | 1,769 | 2,052 | 4,432 | 8,253 | ||||
| Feb 2017 | 23,832 | 23,832 | ||||||
| Mar 2017 | ||||||||
| Apr 2017 | 1,500 | 3,342 | 4,842 | |||||
| May 2017 | ||||||||
| Jun 2017 | 615 | 11,216 | 11,831 | |||||
| Jul 2017 | ||||||||
| Aug 2017 | ||||||||
| Sept 2017 | ||||||||
| Oct 2017 | ||||||||
| Nov 2017 | ||||||||
| Dec 2017 | 354 | 354 |
| EUR forward purchases | Cash flows in EUR thousand | ||||||
|---|---|---|---|---|---|---|---|
| Due date | CZK | PLN | NOK | Total | |||
| Jan 2017 | 124 | 1,660 | 1,784 | ||||
| Feb 2017 | 177 | 1,933 | 2,110 | ||||
| Mar 2017 | 1,153 | 1,153 | |||||
| Apr 2017 | 92 | 1,419 | 1,470 | 2,981 | |||
| May 2017 | 568 | 568 | |||||
| Jun 2017 | 789 | 789 | |||||
| Jul 2017 | 74 | 74 | |||||
| Aug 2017 | 765 | 765 |
The following table shows the fair values of the different derivative instruments:
| in EUR thousand | 2016 | 2015 |
|---|---|---|
| Assets | ||
| Derivatives | ||
| without hedges | 23 | 668 |
| Liabilities | ||
| Derivatives | ||
| without hedges | 463 | 2 |
| with hedges | 1,244 | 1,075 |
The risk related to receivables from customers can be classified as marginal, owing to the broad dispersion and ongoing creditworthiness checks. Specific to the industry, construction contracts require an advance payment by the general contractor which will not be covered by payments until a later date. To reduce the default risk, an extensive creditworthiness check is carried out and adequate sureties are agreed as far as possible.
The risk of default in the case of other original financial instruments stated under assets in the statement of financial position is also regarded as low because all contracting parties are financial institutions and other debtors with prime credit standing. The carrying amount of the financial assets represents the maximum risk of default. Where risks of default are recognised in relation to financial assets, account is taken of these risks by performing allowances for impairment. There are high levels of outstanding receivables which relate to infrastructure projects for state-affiliated companies in Austria and Germany. Except for these, there are no occurrences of concentration of risk arising from significant outstanding amounts from individual debtors.
At 31 December 2016 the maximum credit risk amounted to TEUR 1,597,801 (previous year: TEUR 1,607,969) and relates mainly to loans, other financial investments and securities, other financial assets, trade receivables and cash and cash equivalents.
| Salaried employees Domestic 3,023 Foreign 3,702 Waged workers Domestic 5,701 Foreign 2,902 Total staff 15,328 of which fully consolidated Salaried employees 6,392 Waged workers 8,228 Total fully consolidated 14,620 |
2016 | 2015 |
|---|---|---|
| 2,827 | ||
| 2,970 | ||
| 5,649 | ||
| 2,432 | ||
| 13,878 | ||
| 5,716 | ||
| 7,870 | ||
| 13,586 |
In addition to subsidiaries and companies accounted for under the equity method, related parties include the UBM Group, the companies of the IGO-Ortner Group, as they or their controlling entity hold shares together with the Strauss Group, over which one member of the PORR AG Executive Board has significant control, as well as the Kapsch Group, as one of the members of the PORR AG Executive Board holds a key position there while at the same time exercising joint influence over PORR AG. In addition to people and related companies who have control 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.
Transactions between Group companies included in the consolidated financial statements were eliminated on consolidation and are not examined any further.
Receivables and liabilities to consortiums only show direct services charged.
Transactions between Group companies and companies accounted for under the equity method are disclosed in the following analysis.
| Purchases of goods | ||||||||
|---|---|---|---|---|---|---|---|---|
| Sales of goods and services | and services | Receivables | Liabilities | |||||
| in EUR thousand | 2016 | 2015 | 2016 | 2015 | 2016 | 2015 | 2016 | 2015 |
| Associates | 12,500 | 8,607 | 25,910 | 31,282 | 8,553 | 7,899 | 1,677 | 4,651 |
| Joint ventures | 25,764 | 29,452 | 36,143 | 30,063 | 22,077 | 9,350 | 6,092 | 266 |
| Consortiums | 219,210 | 241,886 | 43,445 | 27,246 | 58,761 | 47,896 | 10,447 | 7,331 |
Transactions with members of the management in key positions and companies over which they have control were as follows:
| Income | Expenses | Receivables | Liabilities | |||||
|---|---|---|---|---|---|---|---|---|
| in EUR thousand | 2016 | 2015 | 2016 | 2015 | 2016 | 2015 | 2016 | 2015 |
| from trade payables and receivables |
||||||||
| UBM Group | 111,154 | 86,672 | 7,870 | 2,767 | 5,425 | 3,916 | 189 | 1,578 |
| IGO-Ortner Group | 2,522 | 902 | 21,904 | 17,081 | 917 | 72 | 4,774 | 937 |
| Strauss Group | 13,693 | 513 | 629 | 593 | 1,282 | 15 | 15 | 5 |
| Kapsch Group | 123 | 212 | 14 | 2,347 | 1 | 15 | - | 461 |
| Other | 2 | 7 | 290 | 294 | 1,724 | 1,686 | 79 | 13 |
| from financing | ||||||||
| UBM Group | 4,770 | 8,002 | - | - | 95,900 | 121,968 | 60 | 90 |
For two companies, the UBM Group purchased 62.9% and 74.0% stakes respectively; owing to a shareholder agreement, the Group does not have control and so these companies have been recognised as joint ventures under the equity method. The purchase price of TEUR 12,268 was settled in cash. For four companies, 26% of the shares were purchased by the UBM Group, these companies have been recognised as joint ventures under the equity method. The purchase price of TEUR 340 was settled in cash.
Outstanding accounts receivable are not secured and are settled in cash. With the exception of guarantees taken on for companies accounted for under the equity method which totalled TEUR 119 (previous year: TEUR 988), and for which no fees are generally charged, no guarantees were given nor were any enforced. No allowances were made in respect of amounts owed by related companies or persons, nor were any bad debt losses booked during the year under review.
As of the start of February 2017, a hybrid bond of TEUR 125,000 was issued with a coupon of 5.50%. The bond has an unlimited term, whereby PORR has the right to redeem the bond in full after a five-year period. Should the option for premature redemption not be exercised, the coupon will increase to the five-year swap rate plus 10.312%. The bond meets all of the stipulations pursuant to IFRS in order to be recognised in equity.
As of 13 February 2017 two tranches of TEUR 20,000 each and a tranche of TEUR 18,000, thereby totalling TEUR 58,000, which were part of the Schuldscheindarlehen issued in 2015 at variable interest rates, were prematurely recalled and then extended with longer terms. TEUR 18,000 was prematurely extended to February 2020, TEUR 30,000 to February 2022 and TEUR 10,000 to February 2024.
In relation to a real estate development for which PORR is the main tenant, the developer STRAUSS & PARTNER Development GmbH was granted advance financing of TEUR 45,000 with a term until the end of 2019. This represents a related party transaction.
With the purchase agreement dated 13 December 2016 and closing as of 17 January 2017, Franki Grundbau GmbH & Co. KG and its subsidiaries were acquired for a purchase price of TEUR 7,400.
With the purchase agreement dated 13 March 2017 and probable closing in the second quarter of 2017, Heijmans Oevermann GmbH and its subsidiaries were acquired.
The Executive Board of PORR AG approved the consolidated financial statements and handed them over to the Supervisory Board on 19 April 2017.
The following table shows the fees paid to the Group's auditors in the year under review:
| BDO Austria GmbH | |||||||
|---|---|---|---|---|---|---|---|
| in EUR thousand | 2016 | 2015 | |||||
| Auditing the financial statements | 250 | 250 | |||||
| Other audit services | 319 | 189 | |||||
| Other advisory services | 78 | 67 |
Karl-Heinz Strauss, CEO Christian B. Maier J. Johannes Wenkenbach
Karl Pistotnik, Chairman Klaus Ortner, Deputy Chairman Michael Diederich Robert Grüneis Walter Knirsch Iris Ortner Bernhard Vanas Susanne Weiss Thomas Winischhofer
Peter Grandits Walter Huber (until 5 December 2016) Walter Jenny Michael Kaincz Michael Tomitz
The table below shows the remuneration paid to the managers in key positions, i.e. the members of the Executive Board and of the Supervisory Board of PORR AG broken down according to payment categories:
| in EUR thousand | 2016 | 2015 |
|---|---|---|
| Executive Board remuneration | ||
| Karl-Heinz Strauss | 1,450 | 1,450 |
| Christian B. Maier | 1,040 | 1,032 |
| J. Johannes Wenkenbach | 1,040 | 1,035 |
| Total | 3,530 | 3,517 |
| of which current benefits due | 3,450 | 3,439 |
| of which remuneration due on or after completion of the management contract | 80 | 78 |
| Supervisory Board remuneration | ||
| Current benefits due | 200 | 217 |
The remuneration of the Executive Board includes defined contribution plans amounting to TEUR 80 (previous year: TEUR 78).
19 April 2017, Vienna
Karl-Heinz Strauss Christian B. Maier J. Johannes Wenkenbach
| Company | Country code |
Domicile | PORR AG share % |
PORR Group share % |
Type of consoli dation |
PORR AG share previous year % |
PORR Group share previous year % |
Type of conso lidation previous year |
Cur rency |
|---|---|---|---|---|---|---|---|---|---|
| Subsidiaries | |||||||||
| "EAVG Enzersdorfer Abfallverwertungsgesell schaft m.b.H." |
AT | Vienna | 0.00000 | 100.00000 | F | 37.50000 | 100.00000 | F | EUR |
| "PET" Deponieerrichtungs- und Betriebsge sellschaft m.b.H. |
AT | Vienna | 0.00000 | 100.00000 | M | EUR | |||
| ABW Abbruch, Boden- und Wasserreini gungs-Gesellschaft m.b.H. |
AT | Vienna | 0.00000 | 100.00000 | F | 0.00000 | 36.21667 | E | EUR |
| ACSA Advanced Contracting Solutions Austria GmbH |
AT | Vienna | 0.00000 | 100.00000 | F | EUR | |||
| AG für Bauwesen Nfg. KG | AT | Vienna | 0.00000 | 0.00000 | 0.00000 | 100.00000 | F | EUR | |
| Allgemeine Straßenbau GmbH | AT | Vienna | 0.00000 | 100.00000 | F | 0.00000 | 100.00000 | F | EUR |
| Altlastensanierung und Abraumdeponie Langes Feld Gesellschaft m.b.H. |
AT | Vienna | 0.00000 | 86.38750 | F | 0.00000 | 41.50000 | E | EUR |
| AMF - Asphaltmischanlage Feistritz GmbH | AT | Unterpremstätten, pol. mun. Prem stätten |
0.00000 | 100.00000 | M | 0.00000 | 100.00000 | M | EUR |
| AMF - Asphaltmischanlage Feistritz GmbH & Co KG |
AT | Unterpremstätten, pol. mun. Prem stätten |
0.00000 | 100.00000 | F | 0.00000 | 100.00000 | F | EUR |
| AMO Asphaltmischwerk Oberland GmbH | AT | Linz | 0.00000 | 90.00000 | M | 0.00000 | 90.00000 | M | EUR |
| AMO Asphaltmischwerk Oberland GmbH & Co KG |
AT | Linz | 0.00000 | 90.00000 | F | 0.00000 | 90.00000 | F | EUR |
| Asphalt-Unternehmung Carl Günther Gesell schaft m.b.H. |
AT | Vienna | 0.00000 | 100.00000 | F | 0.00000 | 100.00000 | F | EUR |
| Asphaltmischwerk Greinsfurth GmbH | AT | Amstetten | 0.00000 | 66.66750 | M | 0.00000 | 66.66750 | M | EUR |
| Asphaltmischwerk Greinsfurth GmbH & Co OG |
AT | Amstetten | 0.00000 | 66.66750 | F | 0.00000 | 66.66750 | F | EUR |
| Bautech Labor GmbH | AT | Vienna | 0.00000 | 100.00000 | F | 0.00000 | 100.00000 | F | EUR |
| Bosch Baugesellschaft m.b.H. | AT | Vienna | 0.00000 | 100.00000 | F | 0.00000 | 100.00000 | F | EUR |
| bpp Bautechnik GmbH | AT | Pichl bei Wels | 0.00000 | 100.00000 | F | EUR | |||
| BPP Beteiligungs GmbH | AT | Holzhausen | 0.00000 | 100.00000 | F | EUR | |||
| Edos Beteiligungsverwaltungs GmbH | AT | Vienna | 0.00000 | 100.00000 | F | 0.00000 | 100.00000 | F | EUR |
| Eisenschutzgesellschaft m.b.H. | AT | Vienna | 0.00000 | 100.00000 | F | 0.00000 | 100.00000 | F | EUR |
| EPS Absberggasse 47 Projektmanagement GmbH |
AT | Vienna | 100.00000 | 100.00000 | F | 97.50000 | 100.00000 | F | EUR |
| EPS LAA 43 GmbH | AT | Vienna | 0.00000 | 100.00000 | F | 0.00000 | 99.00000 | F | EUR |
| Esikas Beteiligungsverwaltungs GmbH | AT | Vienna | 100.00000 | 100.00000 | M | 100.00000 | 100.00000 | M | EUR |
| Franz Böck´s Nachf. Ing. Eva & Karl Schindler Gesellschaft m.b.H. &Co.Nfg.KG |
AT | Vienna | 0.00000 | 100.00000 | F | 0.00000 | 100.00000 | F | EUR |
| Gesellschaft für Bauwesen GmbH | AT | Vienna | 0.00000 | 100.00000 | F | 0.00000 | 100.00000 | F | EUR |
| GETINA Versicherungsvermittlung GmbH | AT | Vienna | 0.00000 | 90.00000 | F | 0.00000 | 0.00000 | M | EUR |
| GHS Umwelttechnik-GmbH | AT | Salzburg | 0.00000 | 100.00000 | F | EUR | |||
| Goidinger Bau GmbH | AT | Zams | 0.00000 | 100.00000 | F | 0.00000 | 100.00000 | F | EUR |
| Grund- Pfahl- und Sonderbau GmbH | AT | Vienna | 0.00000 | 100.00000 | F | 0.00000 | 100.00000 | F | EUR |
| IAT GmbH | AT | Vienna | 0.00000 | 100.00000 | F | 0.00000 | 100.00000 | F | EUR |
| Ing. Otto Richter & Co Straßenmarkierungen GmbH |
AT | Wienersdorf, pol. mun. Traiskirchen |
0.00000 | 100.00000 | F | 0.00000 | 100.00000 | F | EUR |
| Ing. RADL-BAU GmbH | AT | Vienna | 0.00000 | 100.00000 | F | 0.00000 | 100.00000 | F | EUR |
| Johann Koller Deponiebetriebsges.m.b.H. | AT | Vienna | 0.00000 | 100.00000 | F | 0.00000 | 0.00000 | M | EUR |
| Joiser Hoch- und Tiefbau GmbH | AT | Vienna | 100.00000 | 100.00000 | M | EUR | |||
| KOLLER TRANSPORTE - KIES - ERDBAU GMBH |
AT | Vienna | 0.00000 | 100.00000 | F | 0.00000 | 0.00000 | M | EUR |
| Kraft & Wärme Rohr- und Anlagentechnik GmbH |
AT | Vienna | 0.00000 | 100.00000 | F | 0.00000 | 100.00000 | F | EUR |
| Type of | |||||||||
|---|---|---|---|---|---|---|---|---|---|
| PORR AG | PORR Group | conso | |||||||
| Country | PORR AG | PORR Group | Type of consoli |
share previous |
share previous |
lidation | |||
| Company | code | Domicile | share % | share % | dation | year % | year % | previous year |
Cur rency |
| Kratochwill Schotter & Beton GmbH | Unterpremstätten, | ||||||||
| pol. mun. Prem | |||||||||
| AT | stätten | 0.00000 | 100.00000 | F | 0.00000 | 100.00000 | F | EUR | |
| LD Recycling GmbH | Unterpremstätten, pol. mun. Prem |
||||||||
| AT | stätten | 0.00000 | 100.00000 | F | 0.00000 | 100.00000 | F | EUR | |
| Lieferasphaltgesellschaft JAUNTAL GmbH | AT | Klagenfurt | 0.00000 | 71.99671 | F | 0.00000 | 71.99671 | F | EUR |
| M.E.G. Mikrobiologische Erddekontamination | |||||||||
| GmbH | AT | Linz | 0.00000 | 100.00000 | F | 0.00000 | 100.00000 | F | EUR |
| Nägele Hoch- und Tiefbau GmbH | AT | Röthis | 0.00000 | 100.00000 | F | 0.00000 | 100.00000 | F | EUR |
| O.M. Meissl & Co. Bau GmbH | AT | Vienna | 0.00000 | 100.00000 | F | 0.00000 | 100.00000 | F | EUR |
| ÖBA - Österreichische Betondecken Ausbau | |||||||||
| GmbH | AT | Vienna | 0.00000 | 100.00000 | F | 0.00000 | 100.00000 | F | EUR |
| Panitzky Gesellschaft m.b.H. | AT | Vienna | 0.00000 | 100.00000 | F | 0.00000 | 100.00000 | F | EUR |
| PKM - Muldenzentrale GmbH | AT | Vienna | 0.00000 | 96.45152 | F | 0.00000 | 0.00000 | M | EUR |
| PORR AUSTRIARAIL GmbH | AT | Vienna | 0.00000 | 100.00000 | F | 0.00000 | 100.00000 | F | EUR |
| PORR Bau GmbH | AT | Vienna | 0.00000 | 100.00000 | F | 100.00000 | 100.00000 | F | EUR |
| PORR Bauindustrie GmbH | AT | Vienna | 100.00000 | 100.00000 | F | M | EUR | ||
| PORR Beteiligungen und Management GmbH | AT | Vienna | 100.00000 | 100.00000 | F | 100.00000 | 100.00000 | F | EUR |
| PORR Construction Holding GmbH | AT | Vienna | 100.00000 | 100.00000 | F | 100.00000 | 100.00000 | F | EUR |
| PORR Design & Engineering GmbH | AT | Vienna | 0.00000 | 100.00000 | F | 0.00000 | 100.00000 | F | EUR |
| PORR Equipment Services GmbH | AT | Vienna | 100.00000 | 100.00000 | F | 100.00000 | 100.00000 | F | EUR |
| PORR Financial Services GmbH | AT | Vienna | 100.00000 | 100.00000 | F | 100.00000 | 100.00000 | F | EUR |
| PORR Umwelttechnik GmbH | AT | Vienna | 0.00000 | 100.00000 | F | 0.00000 | 100.00000 | F | EUR |
| PORREAL GmbH | AT | Vienna | 0.00000 | 100.00000 | F | 0.00000 | 100.00000 | F | EUR |
| Prajo & Co GmbH | |||||||||
| AT | Vienna | 0.00000 | 100.00000 | F | 0.00000 | 100.00000 | F | EUR | |
| PRAJO HOLDING Beteiligungs- & Verwal tungsgesellschaft mbH |
AT | Vienna | 0.00000 | 100.00000 | F | 0.00000 | 100.00000 | F | EUR |
| PRAJO Transportunternehmer GmbH | AT | Vienna | 0.00000 | 100.00000 | F | 0.00000 | 100.00000 | F | EUR |
| PRAJO-BÖHM Recycling GmbH | AT | Vienna | 0.00000 | 100.00000 | F | 0.00000 | 99.00000 | F | EUR |
| PRONAT Steinbruch Preg GmbH | Unterpremstätten, | ||||||||
| pol. mun. Prem | |||||||||
| AT | stätten | 0.00000 | 100.00000 | F | 0.00000 | 99.99000 | F | EUR | |
| PWW Holding GmbH | AT | Vienna | 0.00000 | 100.00000 | F | 0.00000 | 100.00000 | F | EUR |
| Sabelo Beteiligungsverwaltungs GmbH | AT | Vienna | 100.00000 | 100.00000 | M | 100.00000 | 100.00000 | M | EUR |
| Schatzl & Jungmayr Garten- und Land | |||||||||
| schaftsbau GmbH | AT | Vienna | 0.00000 | 100.00000 | F | 0.00000 | 100.00000 | F | EUR |
| Schotter- und Betonwerk Karl Schwarzl Betriebsgesellschaft m.b.H. |
Unterpremstätten, pol. mun. Prem |
||||||||
| AT | stätten | 100.00000 | 100.00000 | F | 100.00000 | 100.00000 | F | EUR | |
| Schotterwerk GRADENBERG Gesellschaft | |||||||||
| m.b.H. | AT | Köflach | 0.00000 | 100.00000 | F | 0.00000 | 100.00000 | F | EUR |
| Schwarzl Transport GmbH | Unterpremstätten, pol. mun. Prem |
||||||||
| AT | stätten | 0.00000 | 100.00000 | F | 0.00000 | 100.00000 | F | EUR | |
| STRAUSS Property Management GmbH | AT | Vienna | 0.00000 | 100.00000 | F | 0.00000 | 100.00000 | F | EUR |
| Tancsos und Binder Gesellschaft m.b.H. | AT | Wolfsberg | 0.00000 | 100.00000 | F | 0.00000 | 100.00000 | F | EUR |
| TEERAG-ASDAG Aktiengesellschaft | AT | Vienna | 0.00000 | 100.00000 | F | 47.51074 | 100.00000 | F | EUR |
| TEERAG-ASDAG Bau GmbH | AT | Vienna | 0.00000 | 100.00000 | F | 0.00000 | 100.00000 | F | EUR |
| TEERAG-ASDAG Hochbau Burgenland GmbH | AT | Stegersbach | 0.00000 | 100.00000 | F | 0.00000 | 100.00000 | F | EUR |
| Wibeba Hochbau GmbH & Co. Nfg. KG | AT | Vienna | 100.00000 | 100.00000 | F | 100.00000 | 100.00000 | F | EUR |
| Wiener Betriebs- und Baugesellschaft m.b.H. | AT | Vienna | 0.00000 | 100.00000 | F | 0.00000 | 100.00000 | F | EUR |
| PORR Bulgaria EOOD | BG | Sofia | 0.00000 | 100.00000 | F | 0.00000 | 100.00000 | F | BGN |
| Gunimperm-Bauveg SA | CH | Bellinzona | 0.00000 | 100.00000 | F | 0.00000 | 100.00000 | F | CHF |
| PORR AG | Type of conso |
||||||||
|---|---|---|---|---|---|---|---|---|---|
| Type of | share | PORR Group | lidation | ||||||
| Country | PORR AG | PORR Group | consoli | previous | share previ | previous | Cur | ||
| Company | code | Domicile | share % | share % | dation | year % | ous year % | year | rency |
| PORR Financial Services AG | CH | Altdorf | 0.00000 | 100.00000 | F | 0.00000 | 100.00000 | F | CHF |
| PORR SUISSE AG | CH | Altdorf | 0.00000 | 100.00000 | F | 0.00000 | 100.00000 | F | CHF |
| OBALOVNA PRÍBRAM, s.r.o. | CZ | Prague | 0.00000 | 75.00000 | F | 0.00000 | 75.00000 | F | CZK |
| PORR a.s. | CZ | Prague | 0.00000 | 100.00000 | F | 0.00000 | 100.00000 | F | CZK |
| Porr Equipment Services Česko s.r.o | CZ | Prague | 0.00000 | 100.00000 | F | 0.00000 | 100.00000 | F | CZK |
| PORREAL Česko, s.r.o. | CZ | Prague | 0.00000 | 100.00000 | F | CZK | |||
| Emil Mayr Hoch- und Tiefbau GmbH | DE | Ettringen/Wertach | 0.00000 | 100.00000 | F | 0.00000 | 100.00000 | F | EUR |
| FAB Beteiligungsgesellschaft mbH | DE | Berlin | 0.00000 | 100.00000 | M | EUR | |||
| IAT Deutschland GmbH | DE | Munich | 0.00000 | 100.00000 | F | 0.00000 | 100.00000 | F | EUR |
| ÖBA Betondecken Ausbau Deutschland GmbH |
DE | Munich | 0.00000 | 100.00000 | F | EUR | |||
| Porr Beteiligungs-Aktiengesellschaft in Liqu. | DE | Munich | 100.00000 | 100.00000 | M | EUR | |||
| Porr Design & Engineering Deutschland GmbH |
DE | Berlin | 0.00000 | 100.00000 | F | 0.00000 | 100.00000 | F | EUR |
| Porr Deutschland GmbH | DE | Munich | 0.00000 | 94.29860 | F | 0.00000 | 94.29860 | F | EUR |
| Porr Equipment Services Deutschland GmbH | DE | Munich | 0.00000 | 100.00000 | F | 0.00000 | 100.00000 | F | EUR |
| Porr Industriebau GmbH | DE | Passau | 0.00000 | 100.00000 | F | 0.00000 | 100.00000 | F | EUR |
| PORR MURNAU GmbH & Co. KG | DE | Munich | 0.00000 | 100.00000 | F | 0.00000 | 100.00000 | F | EUR |
| Porr Umwelttechnik Deutschland GmbH | DE | Garching bei Munich | 0.00000 | 100.00000 | F | EUR | |||
| PORR Vermögensverwaltung MURNAU GmbH | |||||||||
| PORREAL Deutschland GmbH in Liqu. | DE | Munich | 0.00000 | 100.00000 | M | 0.00000 | 100.00000 | M | EUR |
| Radmer Kies GmbH & Co. KG | DE | Berlin | 0.00000 | 100.00000 | F | 0.00000 | 100.00000 | F | EUR |
| DE | Aschheim, Munich | 0.00000 | 100.00000 | F | 0.00000 | 100.00000 | F | EUR | |
| Radmer Kiesvertrieb Verwaltungs GmbH | DE | Aschheim, Munich | 0.00000 | 100.00000 | M | 0.00000 | 100.00000 | M | EUR |
| S & P Immobilien Deutschland GmbH | DE | Munich | 0.00000 | 100.00000 | F | EUR | |||
| STRAUSS & CO. Development GmbH | DE | Berlin | 0.00000 | 94.00000 | F | 0.00000 | 94.00000 | F | EUR |
| Stump Spezialtiefbau GmbH | DE | Berlin | 0.00000 | 100.00000 | F | 0.00000 | 100.00000 | F | EUR |
| TEERAG-ASDAG Deutschland GmbH | DE | Saaldorf-Surheim | 0.00000 | 100.00000 | F | 0.00000 | 100.00000 | F | EUR |
| Thorn Abwassertechnik GmbH | DE | Munich | 0.00000 | 100.00000 | F | 0.00000 | 100.00000 | F | EUR |
| TKDZ GmbH | DE | Wellen | 0.00000 | 100.00000 | F | 0.00000 | 100.00000 | F | EUR |
| Wellener Immobiliengesellschaft mbH | DE | Wellen | 0.00000 | 100.00000 | F | 0.00000 | 100.00000 | F | EUR |
| IAT UK Waterproofing Systems limited | GB | London | 0.00000 | 100.00000 | F | 0.00000 | 100.00000 | F | GBP |
| PORR SLOVAKIA LTD. | GB | London | 0.00000 | 100.00000 | F | GBP | |||
| PORR UK Ltd. | GB | London | 0.00000 | 100.00000 | F | 0.00000 | 100.00000 | F | GBP |
| BAUVEG-WINKLER drustvo s ogranicenom odgovornoscu za projektiranje, izgradnju i nadzor |
HR | Zagreb | 0.00000 | 100.00000 | M | 0.00000 | 100.00000 | M | HRK |
| FMA Gebäudemanagement drustvo s ogranicenom odgovornoscu za upravljanje zgradama u likvidaciji |
HR | Samobor | 0.00000 | 100.00000 | M | HRK | |||
| GRUNDBAU d.o.o. | HR | Zagreb | 0.00000 | 100.00000 | F | 0.00000 | 100.00000 | F | HRK |
| Schwarzl drustvo s ogranicenom odgovor noscu za obradu betona i sljunka |
HR | Glina | 0.00000 | 100.00000 | F | 0.00000 | 100.00000 | F | HRK |
| Vile Jordanovac drustvo s ogranicenom odgovornoscu za usluge i graditeljstvo |
HR | Zagreb | 0.00000 | 100.00000 | F | HRK | |||
| DBK-Földgép Építési Korlátolt Felelösségü Társaság |
HU | Budapest | 0.00000 | 100.00000 | F | HUF | |||
| PORR Épitési Kft. | HU | Budapest | 0.00000 | 100.00000 | F | 0.00000 | 100.00000 | F | HUF |
| PORREAL Ingatlankezelési Korlátolt Felelös ségu Társaság |
HU | Budapest | 0.00000 | 100.00000 | F | 0.00000 | 100.00000 | F | HUF |
| Teerag-Aszfalt Épitöipari és Kereskedelmi Korlátolt Felelösségü Társaság v.a. |
HU | Budapest | 0.00000 | 100.00000 | F | 0.00000 | 100.00000 | F | HUF |
| IAT Impermeabilizzazioni Srl | IT | Bolzano | 0.00000 | 100.00000 | F | 0.00000 | 100.00000 | F | EUR |
| PORR GRADEZNISTVO DOOEL Skopje | MK | Skopje | 0.00000 | 100.00000 | F | 0.00000 | 100.00000 | F | MKD |
| PORR Construction B.V. | NL | Amsterdam | 0.00000 | 100.00000 | F | EUR |
| Country | PORR AG | PORR Group | Type of consoli |
PORR AG share previous |
PORR Group share previous |
Type of conso lidation previous |
Cur | ||
|---|---|---|---|---|---|---|---|---|---|
| Company | code | Domicile | share % | share % | dation | year % | year % | year | rency |
| Loftesnesbrui PORR-AURSTAD ANS | NO | Oslo | 0.00000 | 64.95000 | F | F | NOK | ||
| PNC Norge AS | NO | Oslo | 0.00000 | 100.00000 | F | 0.00000 | 100.00000 | F | NOK |
| Porr Construction LLC | OM | Muscat | 0.00000 | 100.00000 | F | 0.00000 | 100.00000 | F | OMR |
| "Stal-Service" Spólka z ograniczona odpo wiedzialnoscia |
PL | Warsaw | 0.00000 | 80.00000 | F | 0.00000 | 80.00000 | F | PLN |
| PORR Polska Construction Spólka Akcyjna | PL | Warsaw | 0.00000 | 100.00000 | F | 0.00000 | 100.00000 | F | PLN |
| PORR Polska Infrastructure Spólka Akcyjna | PL | Warsaw | 0.00000 | 100.00000 | F | 0.00000 | 100.00000 | F | PLN |
| PORREAL Polska Spólka z ograniczona odpo wiedzialnoscia |
PL | Warsaw | 0.00000 | 100.00000 | F | PLN | |||
| Stump-Hydrobudowa Spólka z ograniczona odpowiedzialnoscia |
PL | Nowy Dwór Mazo wiecki |
0.00000 | 100.00000 | F | 0.00000 | 100.00000 | F | PLN |
| RADMER BAU PORTUGAL - CONSTRUCOES, LIMITADA |
PT | Lisbon | 0.00000 | 99.00000 | M | 0.00000 | 99.00000 | M | EUR |
| PORR Qatar Construction WLL | QA | Doha | 0.00000 | 49.00000 | F | 0.00000 | 49.00000 | F | QAR |
| Porr Construct S.R.L. | RO | Bucharest | 0.00000 | 100.00000 | F | 0.00000 | 100.00000 | F | RON |
| PORREAL Imobile S.R.L. | RO | Bucharest | 0.00000 | 100.00000 | F | RON | |||
| SC Schwarzl Beton SRL | RO | Bucharest | 0.00000 | 92.00000 | M | 0.00000 | 92.00000 | M | RON |
| "PORR - WERNER & WEBER - PROKUPLJE" doo, Prokuplje |
RS | Prokuplje | 0.00000 | 80.00000 | F | 0.00000 | 80.00000 | F | RSD |
| DRUSTVO SA OGRANICENOM ODGOVOR NOSCU "PORR-WERNER & WEBER-LESKO |
|||||||||
| VAC", Leskovac Drustvo sa ogranicenom odgovornoscu PORR |
RS | Leskovac | 0.00000 | 70.00000 | F | 0.00000 | 70.00000 | F | RSD |
| WERNER&WEBER-JAGODINA, Jagodina | RS | Jagodina | 0.00000 | 80.00000 | F | 0.00000 | 80.00000 | F | RSD |
| Gradevinsko preduzece Porr d.o.o. | RS | Belgrade | 0.00000 | 100.00000 | F | 0.00000 | 100.00000 | F | RSD |
| PWW d.o.o. Nis | RS | Nis | 0.00000 | 100.00000 | F | 0.00000 | 100.00000 | F | RSD |
| PWW Deponija d.o.o. Jagodina | RS | Jagodina | 0.00000 | 100.00000 | F | 0.00000 | 100.00000 | F | RSD |
| PWW Deponija Dva d.o.o. Leskovac | RS | Leskovac | 0.00000 | 100.00000 | F | 0.00000 | 100.00000 | F | RSD |
| TRACK EXPERTS D.O.O. BEOGRAD, MILUTINA MILANKOVICA 11A |
RS | Belgrade | 0.00000 | 74.00000 | F | 0.00000 | 74.00000 | F | RSD |
| PNC Sverige AB | SE | Stockholm | 0.00000 | 100.00000 | F | SEK | |||
| PORR gradbenistvo, trgovina in druge storitve d.o.o. v likvidaciji |
SI | Ljubljana | 100.00000 | 100.00000 | M | 100.00000 | 100.00000 | M | EUR |
| PORR s.r.o. | SK | Bratislava | 0.00000 | 100.00000 | F | 0.00000 | 100.00000 | F | EUR |
| PORREAL Slovakia s.r.o. "v likvidácii" | SK | Bratislava | 0.00000 | 88.70482 | M | 0.00000 | 100.00000 | M | EUR |
| PORR INSAAT SANAYI VE TICARET LIMITED SIRKETI |
TR | Ankara | 0.00000 | 100.00000 | F | 0.00000 | 100.00000 | F | TRY |
| Tovarystvo z obmezhenoyu vidpovidalnistyu "Porr Ukraina" |
UA | Kiev | 0.00000 | 100.00000 | F | 0.00000 | 99.97778 | F | UAH |
| Associated companies | |||||||||
| ABO Asphalt-Bau Oeynhausen GmbH. | AT | Oeynhausen, pol. mun. Traiskirchen |
0.00000 | 22.50000 | E | 0.00000 | 22.50000 | E | EUR |
| ALU-SOMMER GmbH | AT | Stoob | 0.00000 | 49.49857 | E | 0.00000 | 49.49857 | E | EUR |
| AMB Asphalt-Mischanlagen Betriebsgesell schaft m.b.H & Co KG |
AT | Zistersdorf | 0.00000 | 20.00000 | M | 0.00000 | 20.00000 | M | EUR |
| AMB Asphalt-Mischanlagen Betriebsgesell schaft m.b.H. |
Zistersdorf-Maus trenk, pol. mun. |
||||||||
| AT | Zistersdorf | 0.00000 | 20.00000 | M | 0.00000 | 20.00000 | M | EUR | |
| AMG - Asphaltmischwerk Gunskirchen Gesellschaft m.b.H. |
AT | Linz | 0.00000 | 33.33333 | M | 0.00000 | 33.33333 | M | EUR |
| ASA - Projektentwicklung - GmbH | AT | Vienna | 0.00000 | 47.44822 | E | EUR | |||
| ASF Frästechnik GmbH & Co KG | AT | Kematen | 0.00000 | 40.00000 | E | 0.00000 | 40.00000 | E | EUR |
| Asphaltmischwerk Betriebsgesellschaft m.b.H. & Co KG |
AT | Rauchenwarth | 0.00000 | 40.00000 | E | 0.00000 | 40.00000 | E | EUR |
| AWB Asphaltmischwerk Weißbach Betriebs GmbH |
AT | Vienna | 0.00000 | 45.00000 | M | 0.00000 | 45.00000 | M | EUR |
| Country | PORR AG | PORR Group | Type of consoli |
PORR AG share previous |
PORR Group share previ |
Type of conso lidation previous |
Cur | ||
|---|---|---|---|---|---|---|---|---|---|
| Company | code | Domicile | share % | share % | dation | year % | ous year % | year | rency |
| CCG Immobilien GmbH | AT | Werndorf | 0.00000 | 25.00000 | E | 0.00000 | 25.00000 | E | EUR |
| FMA Asphaltwerk GmbH & Co KG | AT | Feldbach | 0.00000 | 35.00000 | E | 0.00000 | 35.00000 | E | EUR |
| Hotel Bad Mitterndorf Errichtungs- und Verwertungs GmbH & Co KG |
AT | Bad Mitterndorf | 0.00000 | 24.00000 | E | 0.00000 | 24.00000 | E | EUR |
| Hotel Bad Mitterndorf Errichtungs- und Verwertungs GmbH in Liqu. |
AT | Bad Mitterndorf | 0.00000 | 24.00000 | M | 0.00000 | 24.00000 | M | EUR |
| KAB Straßensanierung GmbH & Co KG | AT | Spittal an der Drau | 0.00000 | 19.98800 | M | 0.00000 | 19.98800 | M | EUR |
| Lavanttaler Bauschutt - Recycling GmbH | AT | Wolfsberg | 0.00000 | 49.99999 | E | 0.00000 | 49.99999 | E | EUR |
| MSO Mischanlagen GmbH Ilz & Co KG | AT | Ilz | 0.00000 | 47.19200 | E | 0.00000 | 47.19200 | E | EUR |
| MSO Mischanlagen GmbH Pinkafeld & Co KG | AT | Pinkafeld | 0.00000 | 47.33333 | E | 0.00000 | 47.33333 | E | EUR |
| PM2 Bauträger GesmbH | AT | Klagenfurt | 0.00000 | 24.75000 | M | 0.00000 | 24.75000 | M | EUR |
| RFM Asphaltmischwerk GmbH & Co KG | AT | Wienersdorf-Oeyn hausen, pol. mun. Traiskirchen |
0.00000 | 46.00000 | E | 0.00000 | 46.00000 | E | EUR |
| RFM Asphaltmischwerk GmbH. | Wienersdorf-Oeyn hausen, pol. mun. |
||||||||
| Sava Most Gradevinsko Preduzece OG | AT | Traiskirchen | 0.00000 | 46.00000 | M | 0.00000 | 46.00000 | M | EUR |
| TB Betonwerk Zams GmbH | AT | Vienna | 0.00000 | 27.93000 | M | 0.00000 | 27.93000 | M | EUR |
| Obalovna Boskovice, s.r.o. | AT | Zams | 0.00000 | 24.00000 | E | 0.00000 | 24.00000 | E | EUR |
| Alexander Parkside GmbH & Co. KG | CZ | Boskovice | 0.00000 | 45.00000 | E | 0.00000 | 45.00000 | E | CZK |
| TMG Tiefbaumaterial GmbH | DE DE |
Berlin Emmering, Fürstenfeldbruck |
0.00000 | 50.00000 | E | 0.00000 0.00000 |
50.00000 33.33333 |
E M |
EUR EUR |
| ASDAG Kavicsbánya és Épitö Korlátolt Felelösségü Társaság |
HU | Janossomorja | 0.00000 | 34.88000 | E | 0.00000 | 34.88000 | E | HUF |
| BPV-Metro 4 Épitési Közkereseti Társaság | HU | Budapest | 49.95000 | 49.95000 | M | 49.95000 | 49.95000 | M | HUF |
| BPV-METRO 4 NeKe Épitési Közkereseti Társaság |
HU | Budapest | 49.95000 | 49.95000 | M | 49.95000 | 49.95000 | M | HUF |
| Advanced Utility Construction and Contrac ting LLC |
QA | Doha | 0.00000 | 40.00000 | E | 0.00000 | 40.00000 | E | QAR |
| Joint Venture Al Wakrah Stadium & Precinct Main Works and Masterplan (SC-14-G-171) |
QA | Doha | 0.00000 | 33.33333 | E | QAR | |||
| Joint ventures | |||||||||
| "hospitals" Projektentwicklungsges.m.b.H. | AT | Vienna | 0.00000 | 62.90000 | E | EUR | |||
| AMG - Asphaltmischwerk Gunskirchen Gesellschaft m.b.H. & Co. KG |
AT | Linz | 0.00000 | 33.33333 | E | 0.00000 | 33.33333 | E | EUR |
| AMW Asphalt-Mischwerk GmbH | AT | Sulz | 0.00000 | 50.00000 | M | 0.00000 | 50.00000 | M | EUR |
| AMW Asphalt-Mischwerk GmbH & Co KG | AT | Sulz | 0.00000 | 50.00000 | E | 0.00000 | 50.00000 | E | EUR |
| AMW Leopoldau GmbH & Co OG | AT | Vienna | 0.00000 | 33.34000 | E | 0.00000 | 50.00000 | E | EUR |
| ARIWA Abwasserreinigung im Waldviertel GmbH |
AT | Vienna | 0.00000 | 50.00000 | E | 0.00000 | 50.00000 | E | EUR |
| ASB Nörsach GmbH | AT | Linz | 0.00000 | 50.00000 | E | 0.00000 | 50.00000 | E | EUR |
| ASF Frästechnik GmbH | AT | Kematen | 0.00000 | 40.00000 | M | 0.00000 | 40.00000 | M | EUR |
| Asphaltmischwerk Betriebsgesellschaft m.b.H. |
AT | Rauchenwarth | 0.00000 | 40.00000 | M | 0.00000 | 40.00000 | M | EUR |
| Asphaltmischwerk Roppen GmbH | AT | Roppen | 0.00000 | 30.00000 | M | 0.00000 | 30.00000 | M | EUR |
| Asphaltmischwerk Roppen GmbH & Co KG | AT | Roppen | 0.00000 | 30.00000 | E | 0.00000 | 30.00000 | E | EUR |
| Asphaltmischwerk Weißbach GmbH & Co. Nfg.KG |
AT | Weißbach bei Lofer | 0.00000 | 45.00000 | E | 0.00000 | 45.00000 | E | EUR |
| ASTRA - BAU Gesellschaft m.b.H. Nfg. OG | AT | Bergheim | 0.00000 | 50.00000 | E | 0.00000 | 50.00000 | E | EUR |
| Betonexpress FH Vertriebs-GMBH | AT | Bad Gleichenberg | 0.00000 | 20.00000 | M | 0.00000 | 20.00000 | M | EUR |
| Errichtungsgesellschaft Marchfeldkogel mbH | AT | Groß-Enzersdorf | 0.00000 | 60.93000 | E | 0.00000 | 32.06000 | E | EUR |
| FMA Asphaltwerk GmbH | AT | Feldbach | 0.00000 | 35.00000 | M | 0.00000 | 35.00000 | M | EUR |
| Gaspix Beteiligungsverwaltungs GmbH | AT | Zirl | 31.57894 | 31.57894 | M | 31.57894 | 31.57894 | M | EUR |
| Country | PORR AG | PORR Group | Type of consoli |
PORR AG share previous |
PORR Group share previous |
Type of conso lidation previous |
Cur | ||
|---|---|---|---|---|---|---|---|---|---|
| Company | code | Domicile | share % | share % | dation | year % | year % | year | rency |
| Grazer Transportbeton GmbH | AT | Gratkorn | 0.00000 | 50.00000 | E | 0.00000 | 50.00000 | E | EUR |
| "hospitals" Projektentwicklungsges.m.b.H. | AT | Graz | 0.00000 | 74.00000 | E | EUR | |||
| INTERGEO Umweltmanagement GmbH | AT | Salzburg | 0.00000 | 50.00000 | E | 0.00000 | 50.00000 | E | EUR |
| IP Real Estate Amraser Straße GmbH | AT | Innsbruck | 0.00000 | 50.00000 | E | EUR | |||
| Lieferasphalt Gesellschaft m.b.H. | AT | Vienna | 0.00000 | 50.00000 | M | 0.00000 | 50.00000 | M | EUR |
| Lieferasphalt Gesellschaft m.b.H. & Co OG, Viecht |
AT | Viecht, pol. mun. Desselbrunn |
0.00000 | 33.50000 | E | 0.00000 | 33.50000 | E | EUR |
| Lieferasphalt Gesellschaft m.b.H. & Co. OG | AT | Maria Gail, pol. mun. Villach |
0.00000 | 40.00000 | E | 0.00000 | 40.00000 | E | EUR |
| Lieferasphalt Gesellschaft m.b.H. & Co. OG, Zirl |
AT | Vienna | 0.00000 | 50.00000 | E | 0.00000 | 50.00000 | E | EUR |
| Linzer Schlackenaufbereitungs- und ver triebsgesellschaft m.b.H. |
AT | Linz | 0.00000 | 33.33333 | E | 0.00000 | 33.33333 | E | EUR |
| LISAG Linzer Splitt- und Asphaltwerk GmbH. | AT | Linz | 0.00000 | 50.00000 | M | 0.00000 | 50.00000 | M | EUR |
| LISAG Linzer Splitt- und Asphaltwerk GmbH. & Co KG |
AT | Linz | 0.00000 | 50.00000 | E | 0.00000 | 50.00000 | E | EUR |
| MSO Mischanlagen GmbH | AT | Ilz | 0.00000 | 66.66667 | M | 0.00000 | 66.66667 | M | EUR |
| RBA - Recycling- und Betonanlagen Ges.m.b.H. & Co. Nfg. KG |
AT | Zirl | 31.57895 | 31.57895 | E | 31.57895 | 31.57895 | E | EUR |
| Salzburger Lieferasphalt GmbH & Co OG | AT | Sulzau, pol. mun. Werfen |
0.00000 | 40.00000 | E | 0.00000 | 40.00000 | E | EUR |
| Salzburger Reststoffverwertung GmbH | AT | Salzburg | 0.00000 | 50.00000 | E | 0.00000 | 50.00000 | E | EUR |
| Stöckl Schotter- und Splitterzeugung GmbH | AT | Weißbach bei Lofer | 0.00000 | 40.00001 | E | 0.00000 | 40.00001 | E | EUR |
| TAL Betonchemie Handel GmbH | AT | Vienna | 0.00000 | 50.00000 | E | 0.00000 | 50.00000 | E | EUR |
| TAM Traisental Asphaltmischwerk Ges.m.b.H. | AT | Nußdorf ob der Traisen |
0.00000 | 33.33333 | M | 0.00000 | 33.33333 | M | EUR |
| TAM Traisental Asphaltmischwerk Ges.m.b.H. & Co KG |
AT | Nußdorf ob der Traisen |
0.00000 | 33.33333 | E | 0.00000 | 33.33333 | E | EUR |
| Tauernkies GmbH | AT | Salzburg | 0.00000 | 50.00000 | E | 0.00000 | 50.00000 | E | EUR |
| TBT Transportbeton Tillmitsch GmbH | AT | Tillmitsch | 0.00000 | 50.00000 | M | 0.00000 | 50.00000 | M | EUR |
| TBT Transportbeton Tillmitsch GmbH & Co KG | AT | Tillmitsch | 0.00000 | 50.00000 | E | 0.00000 | 50.00000 | E | EUR |
| Vereinigte Asphaltmischwerke Gesellschaft m.b.H. |
AT | Spittal an der Drau | 0.00000 | 50.00000 | M | 0.00000 | 50.00000 | M | EUR |
| Vereinigte Asphaltmischwerke Gesellschaft m.b.H. & Co KG |
AT | Spittal an der Drau | 0.00000 | 50.00000 | E | 0.00000 | 50.00000 | E | EUR |
| Weyerhof Steinbruch GmbH | AT | Murau | 0.00000 | 50.00000 | M | 0.00000 | 50.00000 | M | EUR |
| Weyerhof Steinbruch GmbH & Co KG | AT | Murau | 0.00000 | 50.00000 | E | 0.00000 | 50.00000 | E | EUR |
| WPS Rohstoff GmbH | AT | Klagenfurt am Wör thersee |
0.00000 | 49.00000 | E | 0.00000 | 49.00000 | E | EUR |
| Obalovna Stredokluky s.r.o. | CZ | Prague | 0.00000 | 50.00000 | E | CZK | |||
| Obalovna Tábor s.r.o. | CZ | Ceské Budejovice | 0.00000 | 50.00000 | E | CZK | |||
| Obalovna Tyniste s.r.o. | CZ | Ceské Budejovice | 0.00000 | 33.33333 | E | CZK | |||
| Porr & Swietelsky stavebni, v. o. s. v likvidaci | CZ | Prague | 0.00000 | 50.00000 | E | 0.00000 | 50.00000 | E | CZK |
| Spolecne obalovny, s.r.o. | CZ | Prague | 0.00000 | 50.00000 | E | 0.00000 | 50.00000 | E | CZK |
| Alexander Parkside Verwaltungs GmbH | DE | Berlin | 0.00000 | 50.00000 | M | 0.00000 | 50.00000 | M | EUR |
| Frankenstraße 18-20 GmbH & Co. KG | DE | Hamburg | 0.00000 | 50.00000 | E | 0.00000 | 50.00000 | E | EUR |
| Olympia Gate Munich Verwaltungs GmbH | DE | Grünwald | 0.00000 | 50.00000 | E | 0.00000 | 50.00000 | E | EUR |
| Radmer Bau Kieswerke GmbH | DE | Leipzig | 0.00000 | 50.00000 | M | 0.00000 | 50.00000 | M | EUR |
| Radmer Bau Kieswerke GmbH & Co. Sand und Kies KG |
DE | Leipzig | 0.00000 | 50.00000 | E | 0.00000 | 50.00000 | E | EUR |
| NeKe METRO 4 Épitési Közkereseti Társaság | HU | Budapest | 0.00000 | 50.00000 | M | HUF | |||
| M6 Dunaújváros-Szekszárd Épitési Közkeres eti Társaság |
HU | Budapest | 0.00000 | 50.00000 | E | 0.00000 | 50.00000 | E | HUF |
| Company | Country code |
Domicile | PORR AG share % |
PORR Group share % |
Type of consoli dation |
PORR AG share previous year % |
PORR Group share previ ous year % |
Type of conso lidation previous year |
Cur rency |
|---|---|---|---|---|---|---|---|---|---|
| M6 D-S MME Közkereseti Társaság | HU | Budapest | 0.00000 | 50.00000 | E | HUF | |||
| M6-Autópálya Építési Kkt. | HU | Budapest | 0.00000 | 33.33330 | M | 0.00000 | 33.33330 | M | HUF |
| JOINT VENTURE HARPE BRU ANS | NO | Larvik | 0.00000 | 65.00000 | E | NOK | |||
| JOINT VENTURE FARRIS BRU ANS | NO | Larvik | 0.00000 | 65.00000 | E | NOK | |||
| "Modzelewski & Rodek" Spólka z ograniczona odpowiedzialnoscia |
PL | Warsaw | 0.00000 | 50.00000 | E | 0.00000 | 50.00000 | E | PLN |
| Berlin Office Spólka z ograniczona odpowied zialnoscia |
PL | Warsaw | 0.00000 | 26.00000 | E | PLN | |||
| Poleczki Amsterdam Office Spólka z ogranic zona odpowiedzialnoscia |
PL | Warsaw | 0.00000 | 26.00000 | E | PLN | |||
| Poleczki Vienna Office Spólka z ograniczona odpowiedzialnoscia |
PL | Warsaw | 0.00000 | 26.00000 | E | PLN | |||
| Warsaw Office Spólka z ograniczona odpo wiedzialnoscia |
PL | Warsaw | 0.00000 | 26.00000 | E | PLN | |||
| EQCC PORR W.L.L. | QA | Doha | 0.00000 | 49.00000 | E | 0.00000 | 49.00000 | E | QAR |
| SEVER-JUG AUTOPUT DRUSTVO SA OGRA NICENOM ODGOVORNOSCU ZA IZGRADNJU, KORISCENJE I ODRZAVANJE AUTOPUTA u likvidaciji |
RS | Belgrade | 0.00000 | 50.00000 | M | 0.00000 | 50.00000 | M | RSD |
| D4R7 Construction s.r.o. | SK | Bratislava | 0.00000 | 35.00000 | E | EUR | |||
| Other equity interests | |||||||||
| Grimming Therme GmbH | AT | Bad Mitterndorf | 0.00000 | 17.00000 | M | 0.00000 | 17.00000 | M | EUR |
| Jandl Baugesellschaft m.b.H. | AT | Unterpremstätten, pol. mun. Prem stätten |
0.00000 | 0.92585 | M | EUR | |||
| KAB Straßensanierung GmbH | AT | Spittal an der Drau | 0.00000 | 19.98800 | M | 0.00000 | 19.98800 | M | EUR |
| PPP Campus Bednar Park Errichtungs- und Betriebs GmbH |
AT | Vienna | 0.00000 | 1.00000 | M | EUR | |||
| Pumpspeicherkraftwerk Koralm GmbH | AT | Garanas, pol. mun. Schwanberg |
0.00000 | 1.00000 | M | 0.00000 | 1.00000 | M | EUR |
| Senuin Beteiligungsverwaltungs GmbH | AT | Vienna | 0.00000 | 1.00000 | M | EUR | |||
| WMW Weinviertler Mischwerk Gesellschaft m.b.H. |
AT | Zistersdorf | 0.00000 | 16.66667 | M | 0.00000 | 16.66667 | M | EUR |
| WMW Weinviertler Mischwerk Gesellschaft m.b.H. & Co KG |
AT | Zistersdorf | 0.00000 | 16.66667 | M | 0.00000 | 16.66667 | M | EUR |
| Vystavba hotelu PRAHA - ZVONARKA, spol. s.r.o. |
CZ | Prague | 0.00000 | 11.11111 | M | 0.00000 | 11.11111 | M | CZK |
| Arena Boulevard GmbH & Co. KG | DE | Berlin | 0.00000 | 6.00000 | M | 0.00000 | 6.00000 | M | EUR |
| Forum am Bahnhof Quickborn GmbH & Co. KG |
DE | Hamburg | 0.00000 | 6.00000 | M | 0.00000 | 6.00000 | M | EUR |
| German Hotel Invest I GmbH & Co. KG | DE | Grünwald, Munich | 0.00000 | 3.00000 | M | 0.00000 | 3.00000 | M | EUR |
| German Hotel Verwaltungs GmbH | DE | Grünwald | 0.00000 | 3.00000 | M | 0.00000 | 3.00000 | M | EUR |
| Münchner Grund Immobilien Bauträger GmbH |
DE | Munich | 0.00000 | 6.00000 | M | 0.00000 | 6.00000 | M | EUR |
| SONUS City GmbH & Co. KG | DE | Berlin | 0.00000 | 6.00000 | M | 0.00000 | 6.00000 | M | EUR |
| Zero Bypass (Holdings) Limited | GB | London | 10.00000 | 10.00000 | M | GBP | |||
| Zero Bypass Limited | GB | London | 10.00000 | 10.00000 | M | GBP | |||
| AQUASYSTEMS gospodarjenje z vodami d.o.o. | SI | Marburg | 0.00000 | 10.00033 | M | 0.00000 | 10.00033 | M | EUR |
Key:
F = Fully consolidated company
E = Company consolidated under the equity method
M = Companies of minor significance
We have audited the consolidated financial statements of PORR AG, Vienna, and of its subsidiaries (the Group) comprising the consolidated balance sheet as of 31 December 2016, the consolidated statement of comprehensive income, the consolidated statement of changes in equity and the consolidated statement of cash flows for the fiscal year then ended and the notes to the consolidated financial statements.
Based on our audit the accompanying consolidated financial statements were prepared in accordance with the legal regulations and present fairly, in all material respects, the assets and the financial position of the Group as of 31 December 2016 and its financial performance for the year then ended in accordance with International Financial Reporting Standards (IFRS), as adopted by the EU and with Austrian Generally Accepted Accounting Principles and other legal or regulatory requirements.
We conducted our audit in accordance with in accordance with Austrian Standards on Auditing. Those standards require that we comply with International Standards on Auditing. Our responsibilities under those regulations and standards are further described in the "Auditor's Responsibilities for the Audit of the Financial Statements" section of our report. We are independent of the Company in accordance with the Austrian General Accepted Accounting Principles and professional requirements and in accordance with any other regulations or requirements agreed and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the consolidated financial statements of the fiscal year. These matters were addressed in the context of our audit of the consolidated financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.
The matters subsequently stated comprise the key audit matters from our perspective:
A large part of revenue and profits of the PORR group result from construction contracts. In 2016 this accounted for approximately 93% of revenue.
Construction contracts are generally recognised according to the percentage of completion method (POC-method). Revenue and proportional profits are recorded on the basis of the stage of completion. If it is probable that total contract costs exceed the corresponding contract revenues an onerous contract provision is recorded for the expected total loss. Warranty obligations exist in relation to completed construction projects handed over to the client. For certain construction contracts PORR and its customers and/or suppliers have different views regarding contractual claims and/or obligations of the PORR group. These differences are solved in negotiations with the contract partners, as well as in legal and extrajudicial (arbitration) proceedings. Claims are recognised if it is likely that they will be accepted by the customer or can be enforced and when they can be reliably assessed. Provisions for buildings are recognised for warranty claims, impending and claimed penalties and damages.
The assessment of construction contracts until completion depends to a large extent on assumptions and expectations about future developments and completion of the projects and the outcome of negotiations and procedures with contract parties and is therefore, to a large extent, dependent on estimates. This is particularly the case with regard to the accounting for claims, the amount of the estimated total contract costs and corresponding profits as well as the amount of the contract revenues which have to be recognised in accordance with the POC-method and the estimated expenses and obligations for penalties, damages and warranties.
The risk for the consolidated statements consists of the uncertainty of the accounting for construction contracts and the related items in the consolidated statement of financial position and the consolidated income statement due to necessary assumptions and estimates and the misrepresentation of these items.
In the course of our audit, we have gained an understanding of the processes relevant to the accounting of construction contracts and tested the effectiveness of selected internal controls. These controls mainly addressed the technical, legal and commercial review and approval of new contracts as well as the calculation and recognition process of contract revenue and contract cost. We also tested internal controls which relate to the internal monitoring and assessment of ongoing projects and calculations up to the completion after the end of the warranty period.
On the basis of the results of these control tests, we have drawn a sample of construction contracts for a more in-depth analysis. With focus on high estimation uncertainties and error risks, we have selected our sample considering various relevant parameters, e.g. margin and profit development, contract value, carrying amount, asserted and capitalized claims, disputed claims and internal reporting of risk management.
The audit procedures performed on the selected sample consisted primarily of:
Information on accounting and measurement methods for construction contracts can be found in chapter 5 (Accounting and measurement methods) of the notes to the consolidated financial statements. Chapter 6 (Key assumptions and key sources of estimation uncertainty) contains information on substantial estimation uncertainty. Chapter 7 (Revenues) shows the share of revenues from construction contracts of total sales. The Trade receivables section (24) contains information on the carrying amounts of construction contracts, related contract profits and the prepayments received, which have been measured in accordance with the POC method. Construction contracts which form a liability are shown in disclosure note: Other liabilities (39.). Chapter 33 (Provisions) provides details on the composition and development of provisions for buildings.
Large-scale infrastructure projects are often carried out in consortiums.
The majority of these consortiums are classified as joint ventures on the basis of standard contracts pursuant to IFRS 11 and are accounted for using the equity method. The group's share of profit or loss of these consortiums are reported under the 'Share of profit/loss of companies accounted for under the equity method'. Revenue resulting from services provided to consortiums is presented under contract revenues. In 2016 services provided to consortiums amounted to approx. EUR 219m, the 'Share of profit/loss of companies accounted for under the equity method' include proportional profits from consortiums of approx. EUR 34m.
In general consortiums are separate vehicles with an independent financial administration and organizational structure. The accounting for the consortium is partly performed by the PORR Group and partly by another partner. The profit determination within the consortium is carried out in accordance with the stipulations of the consortium/joint venture agreement and in order for these profits to be included in the PORR consolidated financial statements, they have to be adjusted to IFRS regulations, in particular IAS 11 for construction contracts.
The accounting of the profit and loss shares and the resulting receivables and liabilities against consortiums is therefore not only dependent on the accounting for the construction contracts and the associated uncertainties and risks, but also on the monitoring, adjusting and transferring of the consortium accounts to the IFRS consolidated financial statements of PORR.
Apart from the uncertainties arising from necessary estimations for the construction contracts (refer to point 1. Accounting for construction contracts), the risk for the consolidated financial statements consists of errors resulting from transferring or adjusting the profits of the consortium.
In the course of our audit, we have gained an understanding of the processes related to the accounting of consortiums and tested the effectiveness of selected internal controls. These controls mainly concerned the acceptance of construction contracts, conclusion of consortium agreements, involvement into the accounting of the consortiums and the monitoring and systematic recording and adjustment of the accounts of the consortiums into the PORR Group.
On the basis of the results of these control tests, we have drawn a sample from the construction contracts handled by the consortiums and the related at-equity results, receivables and payables for a more in-depth analysis. With focus on high estimation uncertainties and error risks, we have selected our sample considering various relevant parameters such as margin and profit development, contract value, asserted and capitalized claims, disputed claims and the amount of advance profits. In addition, the knowledge and experience gained from the monitoring and cooperation with various partners was taken into account.
For the selected sample, similar audit procedures were carried out to those for the testing of construction contracts (refer to point 1). In addition, our audit procedures relating to consortiums accounted for using the equity method included:
Information on the accounting and measurement methods of the consortiums can be found in chapter 5 (Accounting and measurement methods) of the notes to the consolidated financial statements. Chapter 20. (Shares in companies accounted for under the equity method) provides information on the revenues, results, assets and liabilities of significant consortiums, as well as the earnings from non-essential consortiums. In section 24. (Trade receivables), receivables are shown and liabilities against consortiums are disclosed in chapter 37. (Trade payables). Section 45 (Related Party Transactions) provides an overview of the transactions and the resulting balances with consortiums.
Management is responsible for the preparation of the consolidated financial statements in accordance with International Financial Reporting Standards (IFRS), as adopted by the EU and with Austrian Generally Accepted Accounting Principles and other legal or regulatory requirements, for them to present a true and fair view of the assets, the financial position and the financial performance of the Group and for such internal controls as management determines are necessary to enable the preparation of consolidated financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the consolidated financial statements, the legal representatives are responsible for assessing the Group's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Group or to cease operations, or has no realistic alternative but to do so.
The Supervisory Board is responsible for overseeing the Group's financial reporting process.
Our objectives are to obtain reasonable assurance about whether the consolidated financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with Austrian Standards on Auditing will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these consolidated financial statements.
As part of an audit in accordance with Austrian Standards on Auditing, which require the application of ISA, we exercise professional judgment and maintain professional scepticism throughout the audit.
We also:
conclude on the appropriateness of management's use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Group's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures in the consolidated financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor's report. However, future events or conditions may cause the Group to cease to continue as a going concern.
evaluate the overall presentation, structure and content of the consolidated financial statements, including the disclosures, and whether the consolidated financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
We communicate with the Supervisory Board regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
We also provide the Supervisory Board with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.
From the matters communicated with the Supervisory Board, we determine those matters that were of most significance in the audit of the consolidated financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditor's report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.
Pursuant to Austrian Generally Accepted Accounting Principles, the Group management report is to be audited as to whether it is consistent with the consolidated financial statements and as to whether it was prepared in accordance with the applicable legal regulations.
Management is responsible for the preparation of the Group's management report in accordance with Austrian Generally Accepted Accounting Principles and other legal or regulatory requirements.
We conducted our audit in accordance with Austrian Standards on Auditing for the audit of the Group's management report.
In our opinion, the management report for the group was prepared in accordance with the valid legal requirements and is consistent with the consolidated financial statements.
Based on the findings during the audit of the consolidated financial statements and due to the thus obtained understanding concerning the Group and its circumstances no material misstatements in the Group's management report came to our attention.
Management is responsible for the other information. The other information comprises the information included in the annual report, but does not include the consolidated financial statements, the Group's management report and the auditor's report thereon.
Our opinion on the consolidated financial statements does not cover the other information and we do not express any form of assurance conclusion thereon.
In connection with our audit of the consolidated financial statements, our responsibility is to read the other information and, in doing so, to consider whether the other information is materially inconsistent with the consolidated financial statements or our knowledge obtained in the audit, or otherwise appears to be materially misstated. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.
The engagement partner on the audit resulting in this independent auditor's report is Mr. Klemens Eiter, Certified Public Accountant.
Vienna, 19 April 2017
BDO Austria GmbH Wirtschaftsprüfungs- und Steuerberatungsgesellschaft
Klemens Eiter Certified Public Accountant
Gerhard Fremgen Certified Public Accountant
This report is a translation of the original report in German, which is solely valid.
Publication or sharing with third parties of the group financial statements together with our auditor's opinion is only allowed if the financial statements and the management report are identical with the audited version. This audit opinion is only applicable to the German and complete financial statements with the management report. Section 281 paragraph 2 UGB (Austrian Company Code) applies to alternated versions.
To the best of our knowledge, and in accordance with the applicable reporting principles, the consolidated financial statements give a true and fair view of the assets, liabilities, financial position and profit or loss of the Group, and the company and management report includes a fair review of the development and performance of the business and the position of the group, together with a description of the principal opportunities and risks associated with the expected development of the Group.
Vienna, April 2017
Karl-Heinz Strauss Chief Executive Officer
Christian B. Maier Executive Board Member
J. Johannes Wenkenbach Executive Board Member
The consolidated financial statements as of 31 December 2016 report net retained profits of EUR 32,153,802.42 for the business year 2016.
The Executive Board thereby proposes the following appropriation of retained profits reported in the consolidated financial statements as of 31 December 2016:
The payout of a dividend of EUR 1.10 (one euro and tent cents) per dividend-bearing share with the remaining balance to be carried forward to new account.
Vienna, April 2017
Karl-Heinz Strauss, m.p. Christian B. Maier, m.p. J. Johannes Wenkenbach, m.p.
Building production (building production value) is the production value of construction sites emanating purely from construction activity (own work, raw materials and third party services chargeable to clients).
Business Unit (BU) denotes a PORR operating segment.
CEE/SEE is used to denote all the countries in Central and Eastern Europe and those in South Eastern Europe.
Civil engineering is the field of construction engineering that is concerned with the planning and building of structures that are located on or below the earth's surface.
DACH region is used to denote Germany, Austria and Switzerland.
DBFO model (design, build, finance, operate) includes the planning, construction, operation and financing of the project by private companies for a specific time period, after the end of which the project building becomes public property.
Facility management is the sum total of all the services provided with a view to the management of buildings and land on the basis of a unified strategy.
Full service provideris a company that covers the entire value creation chain by offering all services from one source.
General contractor (GC) provides all construction services needed to erect a building and is allowed to subcontract out complete or partial services to other companies.
Logistics is the integrated planning, organisation, management, completion and monitoring of the whole of the flow of materials and goods as well as the related flows of information.
Miscellaneous building construction covers the areas of education, hotel, healthcare and other building construction.
PORR Group refers to PORR AG and all its subsidiaries.
Project development is the designing and completion of projects that are normally on a relatively large scale.
Associated company is a company that is not majority-owned and over which significant but not controlling influence is exerted.
ATX (Austrian Traded Index) is the key index of the Vienna Stock Exchange.
Cash flow is a financial measure that shows the unaltered surplus payments received within a given period of time and which thus constitutes an indicator of the company's solvency.
Cash flow from operating activities is the cash flow that results from the company's principal activities that have an effect on revenue, and from other activities that are not classed as investing or financing activities.
Corporate Bond is a bond that is issued by a given company.
DAX (German Share Index) is the key index of the Frankfurt Stock Exchange.
EBIT (Earnings Before Interest and Taxes) corresponds to the operating performance.
EBIT margin is the EBIT in relation to sales revenue.
EBITDA is Earnings Before Interest and Taxes and Depreciation and Amortisation.
EBT (Earnings Before Taxes) designates the pre-tax profit or loss.
Equity method is a method for valuing shares in companies and it is applied to companies over which significant influence can be exerted, but which, fundamentally, do not have to be included within the group of companies that must be fully consolidated.
Equity ratio is the share of equity in the total capital employed.
ICR (Issuer Compliance Regulations) is a set of regulations designed to prevent abuse of insider information.
IFRS (International Financial Reporting Standards) are international accounting standards.
Market capitalisation is the total market value of a company, resulting from the share price times the number of shares issued.
Order backlog is the total of all orders or contracts which have not been executed by the key date in question.
Risk management is the systematic identification, measuring and controlling of risks. These risks can be general business risks or specific financial risks.
Swap is a derivative in which two counterparties agree to exchange one stream of cash flow against another stream. The agreement defines how the payments will be calculated and when they will be paid.
PORR AG 1100 Vienna, Absberggasse 47 T nat. 050 626-0 T int. +43 50 626-0 [email protected] porr-group.com
PORR AG Corporate Communications be.public Corporate & Financial Communications, Vienna Rosebud
Astrid Knie (Executive Board photos, hand photography), PORR AG (Sapphire-Libeskind, Europaallee Zurich, Prager Caree, Loftnesbrui, S8 motorway), "sietec" – www.baustellen.camera (Europaallee Zurich), Supreme Committee for Delivery & Legacy (Al Wakrah Stadium), "ATA" (Boßler Tunnel), Harry Schiffer Photodesign, (LSCC Böhringer, Koralm Tunnel KAT 3, Quartier Belvedere Central, Stephansplatz), Tomaš Malỳ (Chrudim Bypass)
Galina Collet, Collet Ltd
Ueberreuter Print & Packaging GmbH, Korneuburg
PORR AG Corporate Communications 1100 Vienna, Absberggasse 47 [email protected]
The consolidated financial statements for 2016, including the notes to the financial statements and the management report (individual financial statements), that have been audited by the company's auditors can be obtained free of charge from the company at 1100 Vienna, Absberggasse 47, and will be available at the AGM. In addition, the annual financial statements for 2016 may be downloaded from the website porr-group.com/reporting.
The contents of this report together with the individual financial statements constitute the annual financial report.
Statements relating to the future in this report are based on estimates and assumptions which are made, to the best of their current knowledge, by managerial staff. Future-related statements may be identified as such by expressions such as "anticipated", "target" or similar constructions. Forecasts concerning the future development of the company take the form of estimates based on information available at the time of going to press. Actual results may differ from forecast values where the assumptions on which these are based should prove incorrect or risks should develop in unforeseeable ways.
Every care has been taken in the compilation of this annual report to ensure the accuracy and completeness of information in all sections. However, roundoff, typesetting and printing errors cannot be completely ruled out. All dates expressed in digits conform to European conventions of dd.mm.yyyy. Results preceded by the abbreviation TEUR are in euro thousand.
This report is a translation into English of the Annual Report 2016 published in the German language and is provided solely for the convenience of English-speaking users. The figures have been rounded off. In the event of a discrepancy or translation error, the German-language version prevails.
| 25.4.2017 | Publication Annual Financial Report 2016 |
|---|---|
| 25.4.2017 | Press conference |
| 13.5.2017 | Record Date for the attendance of the 137th Annual General Meeting |
| 23.5.2017 | 137th Annual General Meeting, EURO PLAZA, Am Euro Platz 2, Building G, 1120 Vienna |
| 30.5.2017 | Publication Report on the 1st Quarter 2017 |
| 30.5.2017 | Trade ex-dividend on the Vienna Stock Exchange |
| 31.5.2017 | Record Date Dividende |
| 1.6.2017 | Date of dividends payment for the fiscal year 2016 |
| 30.8.2017 | Publication Half Yearly Financial Report 2017 |
| 30.10.2017 | Interest payment PORR Corporate Bond 2014/1 (Senior-Bond) |
| 30.10.2017 | Interest payment PORR Corporate Bond 2014/2 (Hybrid-Bond) |
| 27.11.2017 | Interest payment PORR Corporate Bond 201 |
| 29.11.2017 | Publication Report on the 3rd Quarter 2017 |
Christian B. Maier, CFO
T nat. 050 626-1903 T int. +43 50 626-1903 [email protected]
Absberggasse 47 1100 Vienna T nat. 050 626-0 T int. +43 50 626-0 porr-group.com
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