Media and Financial Analysts Conference - implenia.com · Media and Financial Analysts’ Conference Zurich, 29 August 2013 A. Affentranger / B. Fellmann ©

Media and Financial Analysts’

Conference

Zurich, 29 August 2013

A. Affentranger / B. Fellmann

© Implenia | Investor Relations | August 2013 | Page 2

Media and Financial Analysts’ Conference

Highlights


Highlights first half-year 2013

"Yet another record"

Strong operating performance

1. Record figures

Consolidated revenue (+15.5%)

Operating income (+5.0%)

Consolidated profit (+27.7%)

2. High order intake

Measuring up to the higher production output

3. Strong balance sheet

Net liquidity CHF 227 million

(PY: CHF 155 million)

4. New organisation in force

in CHF million

Operating income

2013

30,1

20121

110,3

28,6

2011

93,7

12,3

2010

77,7

19,4

1st semester 2nd semester

1 Restated


Topics

Risk management

Risk Management introduced for Buildings in whole Switzerland Health and Safety with a new focus

Tangible success

Key aspects in 2013

Daring to Shape our Future

Administration

Business

Restatements IAS 19/IFRS 11 implemented New, simplified setup of SAP

Integrated business model Buildings well positioned in the market Brisk tender activities in all business units

Processes

”Lean Management and Construction” Structural problems in Regional Units specifically targeted


New organisation established Positive feedback from both clients and employees New D-A-CH organisation for tunnelling business



Swiss and Norwegian real estate and construction market


Construction market Switzerland

Construction spending in Switzerland low compared to GDP

Source:: SNB, SBV, SECO

Real construction spending

Switzerland (CHF billion) since

1950 (2012 prices)

Construction spending in % of

GDP since 1950

*2012: Estimate SBV


Construction market Switzerland

Continuous positive trend

Real change in construction indices Construction spending: approx. CHF 55 billion

Source: SECO, Schweizerischer Baumeister Verband (SBV)

Seasonal – and price adjusted construction index

Source: Credit Suisse AG, SBV 3Q13

0

10

20

30

40

50

60

2011 2012 2013E 2014E

In b

illio

ns

1.0%

2.4%

-3.2%

2.0% 1.7%

-0.04

-0.03

-0.02

-0.01

0

0.01

0.02

0.03

2011 2012 2013E 2014E

Prognose Bauinvestitionen Mrz2013

Prognose Bauinvestitionen Jun2013

Forecast construction

investments March 2013

Forecast construction

investments June 2013


Real estate and construction market Switzerland

Key interest rates remain on all-time low

Source: SNB

Interest rates on low level – dynamic immigration

0

1

2

3

4

5

1999 2001 2003 2005 2007 2009 2011 2013

London, Libor 3 Monate

Renditen von Obligationen der Eidgenossenschaf 10 Jahre

Net immigration with unchanged dynamic

Net immigration (permanent resident population) (in ‘000

Source : Fahrländer & Partner

London, 3-month LIBOR

10-years Swiss government bond yield 1st quarter 2nd quarter 3rd quarter 4th quarter


Real estate market Switzerland

Slight growth in mortgage volumes – Number of hotspots reduced

Growth in mortgage loans to private households

Source: Credit Suisse, SNB

From 11 to 3 critical regions in residential building

Source: ETH Zurich (August 2013)

- Base: Price variation on comparis.ch

- Model: based on price dynamic and not

absolut prices

- Gradula reduction or stagnation of the

prices expected


Infrastructure market Switzerland

Good visibility and volumes rising in the medium-term

Investment volume national roads Secured and possible projects 2012 - 2022 (in CHF million)

Source: Fachverband Infra

Investment volume in underground construction Secured and possible projects 2012 - 2022 (in CHF million)

Source : Fachverband Infra

National road tunnels (possible)

Railway tunnels (possible)

Micro-tunnelling / pipe jacking

(secured)

Hydraulic power projects

(secured)

Bypass tunnels (secured)

Main road tunnels (secured)

Main road tunnels new

construction (secured)

Railway tunnels renovation

(secured)

Railway tunnels new

construction (secured)


Norwegian construction market

“National Transport Plan” drives continued growth

Steep increase of NTP’s already in the past

Source : regjeringen.no/sd

New National Transport Plan +58% (CHF billion)

Breakdown NTP 2014-2023

Source: regjeringen.no/sd

Source : regjeringen.no/sd

Approved New NTP

Roads

Railway

Sea / coast

CHF 52 billion

CHF 30 billion

CHF 82 billion

NTP 2010-2019 Increase NTP 2014-2023

33%

61%

4% 2%

Railway

Roads

Sea/Coast

Various


Conclusion

» Public sector

Financial flexibility and power ensured thanks to

low interest rates and sound public finances

High backlog demand

» Private sector

Spending continues to increase

Low interest rates

Migration still strong

Low vacancy rates

» Norway

Further increasing infrastructure investments –

new National Transport Plan 2014-2016

Fundamentals remain intact


Half-Year Report 2013

Key figures and operating income


Key figures and operating income

Continuing momentum

1 Restated

in CHF million Jun 13 Jun 121 +/- in %

Consolidated revenue 1,408.5 1,219.5 15.5%

Operating income 30.1 28.6 5.0%

2.1% 2.3%

Consolidated profit 21.2 16.6 27.7%

1.5% 1.4%

EBITDA 51.6 47.9 7.8%

3.7% 3.9%


Modernisation – Revenue and EBIT

Launch of repositioning in CHF million

47

46

Jun

2013

29

20121

93

Revenue

Jun

2013

-0,6

-2,1%

Jun

20121

-1,6

-3,5%

Jun

2011

-1,5

-4,2%

Jun

2010

-1,4

-3,0%

EBIT margin

EBIT

EBIT / EBIT margin

1st semester

2nd semester

-0,6

20121

-3,4

-1,6

-1,8

Jun

2013

EBIT

1st semester

2nd semester

1 Restated


Secured revenue

Revenue development

Modernisation – Sales development and order book

in CHF million

2014

9,6% 8,3%

2013

94,8%

70,6%

Prior year

Actual year Development of order book

4239

5350

30.06.13 31.12.12 30.06.12 31.12.11

6255

46

29

93

47

2011

91

36

2010

109

47

1st sem.

2013

20121

1 Restated

Promising outlook

Limmatblick, Dietikon


Development – Invested capital and EBIT

Project portfolio generates new record result in CHF million

Jun

2013

177

244

-67

20121

203

253

-50

Invested

capital

EBIT

Jun

2013

14,3

20121

31,6

10,6

21,0

EBIT

2nd semester

1st semester

Jun

2013

14,3

Jun

20121

10,6

Jun

2011

8,9

Jun

2010

10,3

Real estate transactions

Other balance sheet positions

1 Restated


Buildings – Revenue and EBIT

Strong momentum in CHF million

Revenue EBIT / EBIT margin

-6,7 -7,4

EBIT

Jun

2011

7,1

1,3%

Jun

2010

2,5

0,5%

Jun

2013

10,4

1,3%

Jun

20121

6,8

1,0%

EBIT margin

EBIT

1.408

747

Jun

2013

20121

661

806

1st semester

2nd semester

Jun

2013

10,4

20121

19,7

6,8

12,9

1st semester

2nd semester

1 Restated


Buildings – Sales development and order book

in CHF million

2014

59,0% 57,8%

2013

96,0% 96,0%

Prior year

Actual year

Success in the market

30.06.13

2.026

31.12.12

1.832

30.06.12

1.833

31.12.11

1.771

788 801 747806

1st sem.

2013

20121

1.408

661

2011

1.354

553

2010

1.297

509

Secured revenue

Revenue development

Development of order book

1 Restated „vierfeld“-Areal, Pratteln


Jun

2013

4,9

3,8%

Jun

20121

18,6

12,6%

Jun

2011

11,0

8,7%

Jun

2010

15,7

11,0%

Tunnelling & CE – Revenue and EBIT

Difficult start in CHF million


-6,7 -7,4

EBIT

EBIT margin

EBIT

Jun

2013

129

20121

333

148

185

1st semester

2nd semester

Jun

2013

4,9

20121

35,7

18,6

17,1

1st semester

2nd semester

1 Restated


in CHF million

Tunnelling & CE – Sales development and order book

2014

45,8%

26,2%

2013

93,0% 91,2%

Prior year

Actual year

492605

679

812

30.06.13 31.12.12 30.06.12 31.12.11

170 188 185

129

1st sem.

2013

20121

333

148

2011

315

127

2010

313

143

Secured revenue

Revenue development


Expected adjustment to new market volumes

1 Restated Court – Moutier, Bern


Tunnelling & CE – EBIT development

Reasons for the decline in EBIT

EBIT 1st

semester 2013

4,9

Tender costs

abroad

-3,0

Project-related losses

in the Middle East

-1,7

NEAT projects and

completed projects

-9,0

EBIT 1st

semester 2012

18,6


Construction Switzerland – Revenue and EBIT

Sound performance despite adverse weather conditions in CHF million


-6,7 -7,4

EBIT

Jun

2013

-7,0

-1,9%

Jun

20121

-6,6

-1,9%

Jun

2011

-9,7

-3,4%

Jun

2010

-8,0

-2,7%

EBIT margin

EBIT

Jun

2013

368

20121

866

344

522

2nd semester

1st semester

-7,0

28,9

20121

Jun

2013

22,3

-6,6

2nd semester

1st semester

1 Restated


in CHF million

Construction Switzerland – Sales development and order book

2014

16,5% 13,1%

2013

78,1% 82,2%

Prior year

Actual year

481

386

520

395

30.06.13 31.12.12 30.06.12 31.12.11

509 512522

368

801

289

2010

806

297

1st sem.

2013

20121

866

344

2011

Business broadly supported

Secured revenue

Revenue development


1 Restated A9 Transjurane


Norge – Revenue and EBIT

Excellent team performance in CHF million


-6,7 -7,4

EBIT

Jun

2013

4,7

2,9%

Jun

20121

-0,9

-1,1%

Jun

2011

Jun

2010

EBIT margin

EBIT

84

Jun

2013

160

20121

218

134

1st semester

2nd semester

Jun

2013

4,7

20121

3,0

-0,9

3,9

1st semester

2nd semester

1 Restated


160134

1st sem.

2013

20121

218

84

Pro forma

2011

122

2010

in CHF million

Norge – Sales development and order book

2014

37,7% 20,6%

2013

84,8% 88,7%

Prior year

Actual year

Impressive growth

251

197

127

30.06.13

300

31.12.12 30.06.12 31.12.11

Project

UFP08

Secured revenue

Revenue development


1 Restated RV 555 Drotningsvik–Breivikskiftet, Bergen


EBIT divisions

Top results despite negative influences

1 Restated


Modernisation & Development 13.7 8.9 53.6%

Buildings 10.4 6.8 52.4%

Tunnelling & Civil Engineering 4.9 18.6 -73.5%

Construction Switzerland -7.0 -6.6 -5.7%

Norge 4.7 -0.9

EBIT divisions 26.7 26.8 -0.4%

1.9% 2.2%



IFRS Reporting




Miscellaneous / Holding 3.4 1.8


2.1% 2.3%

Financial result -2.0 -5.7

Consolidated profit before tax 28.1 22.9 23.0%

Tax -6.9 -6.3

Tax rate 24.6% 27.5%


1.5% 1.4%

Operating income and consolidated profit

Significantly improved consolidated result

1 Restated


IFRS Restatements

Impact of IAS 19/IFRS 11 restatement

Any over-/underfunding of assets valued at fair

value and the actuarial obligations of the

independent Implenia Pension Fund must be

recognised in the consolidated balance sheet.

Employer's contributions already paid-in must be

adapted to the actuarial calculations according to

the defined benefit plan.

IAS 19 IFRS 11

in CHF million Change in

operating

income

Change in

equity

31.12.2011 0,0 -114,3

30.06.2012 3,8 -93,0

31.12.2012 1,1 -57,1

Effect:

Temporary joint ventures where Implenia has

control according to IFRS are fully, those with joint

control proportionately consolidated. Major

tunnelling joint ventures are barely affected by the

new regulations, as normally several partners are

involved and neither control nor joint control

conditions are met.

in CHF million Total

assets

Revenue EBIT

before

min.1

30.06.2012 135 25 0,6

31.12.2012 91 105 4,8

30.06.2013 89 13 1,6

Effect:

1 The P&L effect will be booked to the minority holdings (min.). For

Implenia shareholders there will be no change.




Miscellaneous / Holding 3.4 1.8


2.1% 2.3%

Financial result -2.0 -5.7

Consolidated profit before tax 28.1 22.9 23.0%

Tax -6.9 -6.3

Tax rate 24.6% 27.5%


1.5% 1.4%

Operating income and consolidated profit

Significantly improved consolidated result

1 Restated


Holding and Miscellaneous

Costs reduced

-956

Impact on

operating

income

3,374

IAS 19

4,330

Amortisation of

intangible assets

0

Holding

costs

1st semester 2013

in 1.000 CHF

1st semester 20121

in 1.000 CHF

Impact on

operating

income

1,832

IAS 19

5,481

Amortisation of

intangible assets

-321

Holding

costs

-3,328

1 Restated



Cash and cash equivalents, securities 441.7 370.9

Trade receivables 595.8 579.4

Work in progress / Joint ventures (equity method) 374.7 285.8

Real estate operations 243.7 252.7

Other current assets 138.0 119.6

Total current assets 1,793.9 1,608.4 11.5%

Total non-current assets 402.9 417.3 -3.4%

Total ASSETS 2,196.8 2,025.7 8.4%

Balance sheet – Assets

Strong balance sheet

1 Restated



Current financial liabilities 3.9 4.6

Trade payables 314.2 283.7

Work in progress / Joint ventures (equity method) 764.2 660.4

Other non-current liabilities 254.2 245.7

Total current liabilities 1,336.5 1,194.4 11.9%

Non-current financial liabilities 210.1 210.6

Other non-current liabilities 6.9 5.2

Deferred taxes, provisions, pension assets 83.6 170.7

Total non-current liabilities 300.7 386.5 -22.2%

Equity and non-controlling interests 559.6 444.8 25.8%

Total LIABILITIES 2,196.8 2,025.7 8.4%

Balance sheet – Liabilities

IAS 19 with significant impact

1 Restated


Cash flow statement

Free cash flow

(58,5)

Investments

and M&A

(17,2)

Interest

and taxes

(11,6)

Real estate

transactions

7,2

Work in

progress/joint

ventures

Liabilities Receivables

(141,4)

89,0

(29,4)

Profit before

changes in NWC

44,9

HJ 121: 39,7 (43,9) (24,1) 28,2 (5,7) (10,4) (13,6) (29,8)

Sales growth requires more NWC

1 Restated

in CHF million


The course for a successful future has been set



Structure and targets

Our organisation since the beginning of February 2013

Sectors

▪ Institutional and supra-regional customers

▪ Complex contracts in Switzerland and

abroad

▪ Development of further expertise for

projects in growth markets

Regional Units

▪ The face Implenia shows

▪ in the regional markets

▪ to local customers

Targets ▪ Strong market and customer focus – as an organisational principle ▪ Setting accents – Daring to Shape our Future ▪ Flattening the hierarchy – creating opportunities and career openings ▪ Technical competence – encouraging innovation ▪ Strengthening operational and financial performance – ensuring entrepreneurial freedom


Sectors

Modernisation & Development

Our answer to institutional, interregional customers

Buildings

Tunnelling & CE

Activities

Development units sharp in

focus

Setup of Consulting and

Modernisation units

First “sounding” with key

clients

Activities

Integration building

construction and general

contracting

Market acceptance

Lean construction

Activities

Capacity adjustment in

Switzerland

International market focus

D-A-CH as new market and

calculation organisation


Regional Units

Construction Schweiz

On the pulse of local customers

Norge

Activities

Optimized our network

Targeted ”white spot”-areas

with first successes

Lean Management

Activities

Strengthening the

organisation and structures

Improved market position

Benefiting from Group

know-how

Involvement in Group Management



Our development continues


Order volume secured in CHF million

32%

30%

37%

Public sector and agencies

Third parties AAA

Third parties

Order book trend

Outlook 2013

2014

46,9% 35,7%

2013

94,0% 91,8%

Prior year

Actual year

3.500

4.000

2.500

3.000

2.000

Jul 2013

3.257

Jun 2012

3.283

Jun 2011

3.008

Jun 2010

3.540

Jun 2009

3.369

Secured revenue (like for like)

Development of order book by customer category

Order book

Change in revenue

’12-’13: +15.5% in CHF million Jul 13 Jul 12 +/- in %

Modernisation & Development 44 49 -11.1%

Buildings 1'994 1'884 5.9%

Tunnelling & Civil Engineering 482 642 -24.9%

Construction Switzerland 458 509 -10.1%

Norge 279 191 46.6%

Total order book 3'257 3'275 -0.5%


Good reason for optimism

Outlook 2013

In view of the improved quality of our larger and wider diversified order book, we

are looking forward to the second half of 2013 with confidence.

For the financial year as a whole, we are optimistic about beating the record

results achieved in the previous year.

We are on track to reach our medium-termin EBIT target of CHF 140 – 150 million

Daring to Shape our Future the course for a

successful future has been set


Mid-term outlook

We are on track

EBIT 140 – 150 Mio. CHF

Increase in volume:

CHF 200 million Modernisation

CHF 300 million abroad

EBIT margin +/- 4,5%


Disclaimer

THESE MATERIALS DO NOT CONSTITUTE OR FORM PART OF ANY OFFER TO SELL OR ISSUE, OR ANY

SOLICITATION OR INVITATION OF ANY OFFER TO PURCHASE OR SUBSCRIBE FOR, ANY SECURITIES,

NOR SHALL PART, OR ALL, OF THESE MATERIALS OR THEIR DISTRIBUTION FORM THE BASIS OF, OR BE

RELIED ON IN CONNECTION WITH, ANY CONTRACT OR INVESTMENT DECISION IN RELATION TO ANY

SECURITIES.

THESE MATERIALS ARE BEING PROVIDED TO YOU SOLELY FOR YOUR INFORMATION AND ARE

STRICTLY CONFIDENTIAL AND MUST NOT BE REPRODUCED, DISCLOSED OR FURTHER DISTRIBUTED

TO ANY OTHER PERSON, OR PUBLISHED, IN WHOLE OR IN PART, FOR ANY PURPOSE.

THE MATERIALS MIGHT CONTAIN FORWARD-LOOKING STATEMENTS BASED ON THE CURRENTLY HELD

BELIEFS AND ASSUMPTIONS OF THE MANAGEMENT OF IMPLENIA AG (THE "COMPANY", AND

TOGETHER WITH ITS SUBSIDIARIES, THE "GROUP"), WHICH ARE EXPRESSED IN GOOD FAITH AND, IN

THE MANAGEMENT’S OWN OPINION, REASONABLE. FORWARD-LOOKING STATEMENTS INVOLVE

KNOWN AND UNKNOWN RISKS, UNCERTAINTIES AND OTHER FACTORS, WHICH MAY CAUSE THE

ACTUAL RESULTS, FINANCIAL CONDITION, PERFORMANCE, OR ACHIEVEMENTS OF THE GROUP, OR

INDUSTRY RESULTS, TO DIFFER MATERIALLY FROM THE RESULTS, FINANCIAL CONDITION,

PERFORMANCE OR ACHIEVEMENTS EXPRESSED OR IMPLIED BY SUCH FORWARD-LOOKING

STATEMENTS. GIVEN THESE RISKS, UNCERTAINTIES AND OTHER FACTORS, RECIPIENTS OF THIS

DOCUMENT ARE CAUTIONED NOT TO PLACE UNDUE RELIANCE ON THESE FORWARD-LOOKING

STATEMENTS. THE GROUP DISCLAIMS ANY OBLIGATION TO UPDATE THESE FORWARD-LOOKING

STATEMENTS TO REFLECT FUTURE EVENTS OR DEVELOPMENTS. OPINIONS AND FORWARD-LOOKING

INFORMATION PRESENTED HEREIN ARE BASED ON GENERAL INFORMATION GATHERED AT THE TIME

OF WRITING.

Documents

Media and Financial Analysts Conference - implenia.com · Media and Financial Analysts’ Conference Zurich, 29 August 2013 A. Affentranger / B. Fellmann ©