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Service agreement of STRABAG group company SPFS with Deutsche Telekom ends latest on 30 June 2019

Published: October 18, 2017; 14:48 · (FriedlNews)

The facility management services agreement between STRABAG Property and Facility Services GmbH Germany (SPFS) and Deutsche Telekom, which had been concluded in parallel with the acquisition of DeTeImmobilien in 2008, will end latest effective 30 June 2019. After long and intense negotiations, Deutsche Telekom has decided to award these services to another provider.

With the loss of a key client that had contributed annual average revenue of
about EUR 550 million, STRABAG PFS must undergo a fundamental reorganisation.
According to a preliminary estimate, the restructuring will result in a one-off
earnings reduction in the mid-range double-digit million euros. A corresponding
provision allowance is currently expected already with effect from 31 December
2017.

Against this background, STRABAG SE's targeted EBIT margin of at least 3 % for
2017 appears ambitious, yet within reach. The annual revenue loss won't impact
the targets of the STRABAG SE Group until 2019.

Directly affected by the decision are around 3,300 employees who are working
exclusively for the Deutsche Telekom account.

Further inquiry note:
STRABAG SE
Diana Neumüller-Klein
Head of Corporate Communications & Investor Relations
Tel: +43 1 22422-1116
diana.klein@strabag.com

end of announcement euro adhoc
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issuer: STRABAG SE
Donau-City-Straße 9
A-1220 Wien
phone: +43 1 22422 -0
FAX: +43 1 22422 - 1177
mail: investor.relations@strabag.com
WWW: www.strabag.com
ISIN: AT000000STR1, AT0000A05HY9
indexes: SATX, WBI, ATX
stockmarkets: Wien
language: English

Digital press kit: http://www.ots.at/pressemappe/4106/aom

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