Financing and treasury
Key figures treasury
2019 | 2020 | 2021 | 2022 | 2023 | |
Interest and other income (€ mn) | 30.97 | 27.89 | 26.96 | 50.74 | 119.19 |
Interest and other expense (€ mn) | -56.32 | -48.49 | -39.53 | -40.07 | -75.07 |
EBIT/net interest income (x) | -23.8 | -30.6 | -71.3 | 66.2 | 19.9 |
Net debt/EBITDA (x) | -1.0 | -1.5 | -1.3 | -1.5 | -1.9 |
The number one objective for the treasury management of STRABAG SE is assuring the continued existence of the company through the maintenance of constant solvency. This objective is to be reached through the provision of sufficient short-term, medium-term and long-term liquidity. Liquidity for STRABAG SE means not only solvency in the strict sense but also the availability of guarantees. The activity of building requires the constant availability of bid, contract fulfilment, advance payment and warranty guarantees and/or sureties. The financial scope of action is thus defined by sufficient cash and cash credit lines, on the one hand, and by sufficient surety credit lines on the other.
The management of liquidity risks has become a central element of the corporate management at STRABAG. In practice, liquidity risks come in various forms:
- In the short term, all daily payment obligations must be covered in time and/or in their entirety.
- In the medium term, liquidity levels must be sufficient so that no transactions or projects become impossible due to a lack of sufficient financial means or guarantees or that they cannot be executed at the desired pace.
- In the long term, there should be sufficient financial means available to be able to pursue the strategic development targets.
In the past, STRABAG has always oriented its financing decisions according to the risk aspects outlined above and has organised the maturity structure of the financial liabilities in such a way as to avoid a refinancing risk. In this way, the company has been able to maintain a great scope for action, which is of particular importance in a difficult market environment. The respective liquidity needed is determined by targeted liquidity planning. Based on this, liquidity assurance measures are made, and a liquidity reserve is defined for the entire Group. The liquidity situation is continuously monitored by treasury management, managed via a corporate-wide cash pooling system and supported at project level by strict working capital management.
€ 3.5 billion
Cash and cash equivalents
The existing liquidity of € 3.5 billion assures the coverage of the Group’s liquidity needs. STRABAG SE has a total credit line for cash and surety loans in the amount of € 8.5 billion. The credit lines include a syndicated surety credit line in the amount of € 2.0 billion and a revolving syndicated cash credit line of € 0.4 billion, each with a term to maturity until 2026. The Group also has bilateral credit lines with banks. With a high degree of diversification regarding its surety and cash credit, STRABAG creates an adequate risk spread in the provision of the credit lines and secures its comfortable liquidity position.
BBB, stable
S&P corporate credit rating
In June 2015, Standard & Poor’s (S&P) raised STRABAG SE’s investment grade rating by one level from BBB-, outlook stable, to BBB, outlook stable. This rating was again confirmed in October 2023. S&P sees STRABAG SE’s strengths and opportunities above all in the stable margins in an otherwise quite cyclical market environment, the strategic access to construction materials, the strong market positions and the high reputation in the credit markets.
Payment obligations
€ mn | Book value 31.12.2023 | Book value 31.12.2022 |
Bank borrowings | 534.71 | 624.76 |
Lease liabilities | 364.22 | 332.44 |
Total | 898.93 | 957.20 |