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Financial Analysts' Conference Zurich, 10 March 2011

A. Affentranger / Hp. F채ssler / B. Fellmann


Annual Financial Statements December 2010 Key points

Š

Implenia | Corporate Center | March 2011 | Page 2


Key points – Implenia in its 5th year Systematically implemented strategy pays off In year 5, a successful reality in the market based on: § a motivating vision § lived values § a clear strategy Steadily improving profitability and balance sheet § for the 5th time in succession EBITDA, operating income and consolidated profit have increased § balance sheet further strengthened Sustainability embedded in the Group strategy § key priorities defined § consistent and transparent implementation

©

Implenia | Corporate Center | March 2011 | Page 3


Key points – Implenia in its 5th year Numerous strategic and operational highlights Management strengthened § Hanspeter Fässler CEO since 1 September 2010 § René Zahnd Head of Implenia Real Estate and member of Group Management since 1 March 2010 § Significant strengthening of key management positions in all divisions (internal and external appointments) Acquisition of Sulzer Immobilien § Significant strengthening of our project development portfolio § Strategic investment in the future Breakthrough on the Gotthard § 15 October 2010 § Implenia is the leading company in 3 out of 5 projects § Technical and logistical high performance ©

Implenia | Corporate Center | March 2011 | Page 4


Annual Financial Statements December 2010 Construction and real estate market in Switzerland

Š

Implenia | Corporate Center | March 2011 | Page 5


A 50 billion (a year) industry Stable trend over the last few years Total real construction spending in Switzerland in CHF billions (based on 2006 CPI) Source: BfS (data), SBV (graphic)) 65 60 55 50 45

Investment bonus and housing law(1990 bis 1995)

35 30

1973 First oil shock

25

Work starts on NEAT(1996)

1979/80 Second oil shock

20 15 10 5

Š

2009

2007

2005

2003

2001

1999

1997

1995

1993

1991

1989

1987

1985

1983

1981

1979

1977

1975

1973

1971

1969

1967

1965

1963

1961

1959

1957

1955

1953

0 1951

CHF billions

40

Implenia | Corporate Center | March 2011 | Page 6


Prices develop slower than costs Margin pressure can only be compensated through improved productivity Cost and price trends in building construction (main contract work)

Cost and price trends in civil works (main contract work)

Price and cost index in civil works (Q1 2002=100)

Price and cost index in civil works (Q1 2002=100)

Price and cost index in building works (Q1 2002=100)

Price and cost index in civil works (Q1 2002=100)

Costs: construction cost index (Civil works, reinforced concrete) Prices: BfS construction price index (Civil works, main contract work)

Costs: construction cost index (building construction, main contract work, multi-family homes) Prices: BfS construction price index (Civil works, main contract work)

Š

Implenia | Corporate Center | March 2011 | Page 7


Real estate prices in Switzerland Healthy price level for Swiss real estate

Š

Implenia | Corporate Center | March 2011 | Page 8


Real change in the construction index At a high level, driven by civil works Swiss Construction index (in real terms) Swiss Building index (in real terms) Swiss Civil works index (in real terms)

Š

Implenia | Corporate Center | March 2011 | Page 9


Building construction Uneven trends across the country Regional breakdown of building expenditure 2010-2016 Growth construction in total 2010-2016 in % p.a. -1 0

< to to >

-1 0 1 1

Short and long term outlook Growth 2010 in % Growth 2011 in % Growth 2012-2016 in %

Source: BAKBASEL; ‘Hochbauprognose 2010 - 2016’

©

Implenia | Corporate Center | March 2011 | Page 10


Summary of construction and real estate market in Switzerland Overall positive outlook European construction market § Recovery is apparent Swiss construction market § Remains at a high level § Continuous public investment in civil works § Healthy fundamentals of the real estate market -

Low interest rates Immigration / housing needs No real estate bubble But trends vary in different parts of the country

Margin pressure § Remains a characteristic of the construction industry § Must be offset by improvements in productivity ©

Implenia | Corporate Center | March 2011 | Page 11


Annual Financial Statements 2010 Key figures and operating income

Š

Implenia | Corporate Center | March 2011 | Page 12


Key figures and operating income Highlights Operational § Operating income (+ 14.8 %) and consolidated profit (+ 11.5%) § strict cost management § Invested capital (excluding acquisition of Sulzer) once more reduced § ROIC exceeds the 20 percent mark for the first time § Order books remains high Financial § Free cash flow

- at record levels (due to effective NWC management, disciplined investments) - Acquisition of Sulzer Immobilien AG 100% financed with cash flow

§

Financing situation

- Funding base significantly bolstered with the proceeds of the new bond (CHF 200 million) - Net cash position CHF 150 million ©

Implenia | Corporate Center | March 2011 | Page 13


Key figures and operating income Key group figures 2010

2009

2'388.4

2'279.8

4.8%

EBIT before special charges

72.6

75.5

-3.8%

Operating income

77.7

67.6

14.8%

3.3%

3.0%

52.5

47.1

2.2%

2.1%

in CHF million

Consolidated revenue

Consolidated profit

+/- in %

11.5%

Š

Implenia | Corporate Center | March 2011 | Page 14


General contracting / Services â&#x20AC;&#x201C; revenues and EBIT Record EBIT in 2nd half of the year

IFRS revenue

1,111 1,137 598

636

EBIT before special charges

EBIT before special charges

17.4

20

15.4

8.3 9.3

15

12.1

10

501

9.1

10.2

3.0%

17.4

15.5

1.0%

513

in CHF million

15.4

2.0%

1.6% 1.4%

1.4%

0.9%

2010

2009

0.5%

6.1 2010

1.5% 1.0%

5 0

2009

2.5%

0.0 2006

2007

2008

2009

2010

HY2

HY2

EBIT before special charges

HY1

HY1

EBIT margin

Š

Implenia | Corporate Center | March 2011 | Page 15


GC / Services â&#x20AC;&#x201C; Regional distribution and orders as of 28.2.2011 2011 volumes secured in CHF million Production output 2% 29%

33%

West (379.8m) Central (268.3m) East (131.8m) Zurich (335.2m)

12%

24%

Reuss (21.6m)

Maintower, Zurich

Order book

Feb. 2011

Feb. 2010

West

700.0

551.7

Central

292.1

315.8

East

159.3

165.9

Zurich

586.0

743.6

Reuss

11.1

13.0

1'748.5

1'790.0

TOTAL order book

Secured revenue 94.9% 57.8%

9.1%

2011

2012 Š

2013

Implenia | Corporate Center | March 2011 | Page 16


Real estate (project development) – invested capital and EBIT ROIC 18.1% in CHF million

Invested capital

178

200

EBIT before special charges / ROIC (like for like)

EBIT before special charges

21.4

20.9

25

21.4

20

65 10.6 17.2

15.4

15

10.3 4.2

2009

2010

2009

6.0 5

20.9 18.1%

15.9%

20.0%

10.0%

7.7% 5.2%

3.6%

5.0%

0 2010

25.0%

15.0%

10.3

10 134

30.0%

0.0. 2006

2007

2008

2009

2010

SIMMO

HY2

EBIT before special charges

Implenia ex. SIMMO

HY1

ROIC (like for like)

©

Implenia | Corporate Center | March 2011 | Page 17


Real estate (project development) â&#x20AC;&#x201C; development projects Good, regionally well distributed portfolio

Winterthur

Š

Implenia | Corporate Center | March 2011 | Page 18


Infrastructure – Revenue and EBIT Record result

IFRS revenue

1,123 618

1,201

EBIT before special charges

EBIT before special charges

24.6

25.1

30

2009

4.0%

25

32.0

31.8

535

2010

21.5

20

666

-7.4

-6.7

2009

2010

24.6

24.4

25.1

3.5% 3.0%

2.2%

2.2%

1.9%

15 10

505

in CHF million

2.1%

2.5% 2.0%

8.8

1.5%

0.8%

1.0%

5

0.5%

0

0.0 2006

2007

2008

2009

2010

HY2

HY2

EBIT before special charges

HY1

HY1

EBIT margin

©

Implenia | Corporate Center | March 2011 | Page 19


Infrastructure – Regional breakdown and order book as of 28.2.2011 Excellent regional anchoring in CHF million Production output 24%

26%

West (322.2m) East/Zurich (344.8m) Alps (194.2m)

7% 13%

14% 15%

Central (205.2m) Engineering (177.7m) Other (100.8m)

Pont de le Poya, Fribourg

Order book

Feb. 2011

Feb. 2010

West

188.5

215.4

East/Zurich

173.2

237.3

Alps

125.4

145.9

90.5

107.8

130.2

198.1

20.0

2.1

727.9

906.6

Central Engineering Miscellaneous TOTAL order book

Secured revenue 55.2%

11.7% 1.3%

2011

2012 ©

2013

Implenia | Corporate Center | March 2011 | Page 20


Tunnelling – Revenue and EBIT High production output

IFRS revenue

137 66

71

2009

152

in CHF million

EBIT before special charges

EBIT before special charges

30

24.4

25 69

11.2

18.6 7.1

83

2010

13.2

2009

11.5

2010

20 15

30.0%

26.5 20.7 14.5%

24.4

22.1 16.2%

17.8%

17.4%

25.0%

18.6

20.0%

12.3%

15.0%

10

10.0%

5

5.0%

0

0.5 2006

2007

2008

2009

2010

HY2

HY2

EBIT before special charges

HY1

HY1

EBIT margin

©

Implenia | Corporate Center | March 2011 | Page 21


Tunnelling – Regional distribution and orders as of 28.02.2011 2011 secured in CHF million Production output 2%

16% West (53.2m) D- Switzerland (107.6m)

50%

32%

Alps/NEAT (168.7m) Abroad (6.1m)

Cross-City Link, Zurich

Order book West German-speaking Switzerland Alps (inc. NEAT) Abroad TOTAL order book

Feb. 2011

Feb. 2010

260.8

248.3

60.9

139.6

285.1

365.4

12.0

2.6

618.7

755.9

Secured revenue 93.3%

51.4% 26.3%

2011

2012 ©

2013

Implenia | Corporate Center | March 2011 | Page 22


Prime Buildings â&#x20AC;&#x201C; Revenue and EBIT First results take effect

IFRS revenue

-1.0 -4.9

10

6 5 1 2009

2010

-2

-3.1

-4

-3.1 -4.1

-6

-6.6

-8

-7.9 2009

0

-2.1

-3.0 4

EBIT before special charges

EBIT before special charges

14

in CHF million

2010

HY2

HY2

HY1

HY1

-7.9 2006

2007

2008

2009

2010

EBIT before special charges

Š

Implenia | Corporate Center | March 2011 | Page 23


Prime Buildings – Order book as of 28.02.2011 Turin: a highlight

New headquarters of Banca Intesa Sanpaolo, Turin

Order book

Feb. 2011

Feb. 2010

Prime Buildings

91.1

4.6

TOTAL order book

91.1

4.6

in CHF million

Sochi Stadium, Russia Secured revenue 73.5%

70.1%

31.3%

2011

2012 ©

2013

Implenia | Corporate Center | March 2011 | Page 24


Key figures and operating income Operating income in CHF million

2010

2009

+/- in %

Real estate

36.3

38.9

-6.5%

Infrastructure

25.1

24.6

1.9%

Industrial construction

15.6

16.5

-5.6%

0.7

-12.4

105.4%

77.7

67.6

14.8%

3.3%

3.0%

Holding overhead costs and special charges TOTAL operating income

Š

Implenia | Corporate Center | March 2011 | Page 25


Annual Financial Statements IFRS Reporting

Š

Implenia | Corporate Center | March 2011 | Page 26


Holding cost and special charges No more burden from special charges 2010 5,000 2,500 0 -2,500 -5,000 -7,500 -10,000 -12,500 -15,000

in CHF million

2009 0

-1.871

661

6.880 -4.348

Holding overhead costs

IAS 19

Special charges

Immat. depreciation

Impact on operating income

5,000 2,500 0 -2,500 -5,000 -7,500 -10,000 -12,500 -15,000

-4.437

- 2.411 - 3.405

Holding overhead costs

IAS 19

Special charges

Š

- 2.075

-12.328

Immat. depreciation

Impact on operating income

Implenia | Corporate Center | March 2011 | Page 27


Operating income â&#x20AC;&#x201C; Group earnings CHF 50 million exceeded in CHF million

2010

2009

+/- in %

Real estate Infrastructure Industrial construction Holding overhead costs and special charges

36.3 25.1 15.6 0.7

38.9 24.6 16.5 -12.4

105.4%

TOTAL operating income

77.7

67.6

14.8%

3.3%

3.0%

-9.6

-5.0

92.0%

Taxes

-15.6

-15.6

0.0%

Consolidated profit

52.5

47.0

11.5%

2.2%

2.1%

112.6

104.6

4.7%

4.6%

Financial income (net)

EBITDA

-6.5% 1.9% -5.6%

7.6%

Š

Implenia | Corporate Center | March 2011 | Page 28


Income statement â&#x20AC;&#x201C; key figures Continuation of positive earnings trends Group earnings

EBITDA

120 100 80 60 40 20 0

84.7 54.4

98.5 4.2%

104.6 4.6%

112.6 4.7%

3.6% 11.3

2.3%

18.0

23.8

32.4

2006

2007

2008

in CHF million

29.1

36.6

2009

2010

6% 5% 4% 3% 2% 1% 0%

60 50

40.0

40

25.5

30 20 10 0 -10

1.7%

6.1

47.1 2.1%

52.5 2.2%

4% 3% 2%

1.1%

1%

0.3%

11.3

5.5

3.5

6.2

12.5

0% -1%

-11.9

-20

-2% 2006

2007

2008

EBITDA margin

Margin

HY2

HY2

Privera sale

Privera sale

HY1

HY1

Š

2009

2010

Implenia | Corporate Center | March 2011 | Page 29


Balance sheet – assets High liquidity – working capital under control in CHF million

2010

2009

+/- in %

Cash and cash equivalents, securities

349.6

129.8

Real estate operations

218.0

168.7

Other current assets

733.9

725.8

1'301.5

1'024.3

27.1%

375.5

357.5

5.0%

1'677.0

1'381.8

21.4%

Total current assets Total non-current assets Total ASSETS

©

Implenia | Corporate Center | March 2011 | Page 30


Balance sheet â&#x20AC;&#x201C; liabilities Financing secured for the next five years in CHF million

Current financial liabilities

2010

2009

+/- in %

1.6

42.2

Other current liabilities

903.6

871.7

Total current liabilities

905.2

913.9

Non-current financial liabilities

198.2

0.7

78.2

40.9

Total non-current liabilities

276.3

41.6

564.3%

Equity and non-controlling interests

495.5

426.3

16.2%

1'677.0

1'381.8

21.4%

Deferred taxes, provisions

Total LIABILITIES

-0.9%

Š

Implenia | Corporate Center | March 2011 | Page 31


Cash flow statements Implenia as a cash machine in CHF million

in CHF million

2010

2009

+/- in %

Consolidated profit

52.5

47.1

Depreciation / non-cash expenses

32.3

46.3

Movement in net current assets

57.6

31.0

Interest / taxes / miscellaneous

-3.9

-5.2

Cash flow from operating activities

138.5

119.1

Investment activities

-31.5

-26.5

Acquisition of businesses (Sulzer Immob. AG)

-67.1

-

Cash flow from investment activities

-98.6

-26.5

272.3%

Free cash flow

39.9

92.7

-56.9%

Acquisition of businesses (Sulzer Immob. AG)

67.1

-

107.1

92.7

Free cash flow (like for like)

11.5%

16.3%

15.6% Š

Implenia | Corporate Center | March 2011 | Page 32


Return on invested capital (ROIC) Sustainable value creation! in CHF million

550

522.1

22.4%

500

19.9%

450 400 350 300 250

340.4

347.0

9.4%

9.3%

9.5%

150 50

15.0%

15.3% 9.6%

9.4%

200 100

20.0%

386.6

358.0

25.0%

7.4%

10.0% 5.0%

4.8%

0

0.0% 2006

2007

2008

2009

2010

Invested capital ROIC (operating income/invested capital) Pre-tax WACC

Š

Implenia | Corporate Center | March 2011 | Page 33


Media and Financial Analysts' Conference Analysis of annual results for 2010 and outlook

Š

Implenia | Corporate Center | March 2011 | Page 34


Assessment of the 2010 annual results Implenia is well on track Strong market position § High level of good quality orders Operationally on the right track § Good productivity trend of construction activities § Project development underway at a level above CHF 20 million § Situation for renovations corrected, solide 2nd half for GC § Tunnelling highly profitable in Switzerland § International business clearly better § Holding cost and special charges well under control Strong balance sheet § Broader based financing with good capital base § High net liquidity § Excellent cash flow ©

Implenia | Corporate Center | March 2011 | Page 35


Order intake since the end of July 2010 Well diversified

Wohnüberbauung Le Nouveau Prieuré Bürogebäude Centre CSS Romandie Wohn- und Gewerbeüberbaung Areal Brückenweg Wohnüberbaung Birnbäumen UBS Branch Format Wohnüberbauung Wiesental Wohnüberbauung Centralpark Wohn-/Geschäftshaus Liebefeld K5 Fabrikumbau Usine 56, Philip Morris International Fabrik- und Verwaltungsgebäude Electrolux Centre socio-cultures Gewerbeüberbauung Murtenstrasse Geschütztes Wohnen Le Croset - Résidence du Bois Wohnüberbauung Résidence des vignes Überbauung Brückenweg Al Ain Asset Enhancement Bahngallerie Arge GEZIM, Zen Hohen Flühen Aufstockung Technopark Zürich Wohnüberbauung Kolbenstrasse Wohnüberbauung Residenza Giardino Kindekrippe NEMO, Crèche Philip Morris Int. Wohnüberbauung Mürgelistrasse

Genève Lausanne Visp St.Gallen ganze Schweiz Horgen Dietikon Bern Neuchâtel Sursee Ecublens Bern Ecublens La Neuveville Visp Al Ain (Emirat Abu Dhabi) Bitsch Zürich Emmen Minusio Boudry Zuchwil

Real Estate Real Estate Real Estate Real Estate Real Estate Real Estate Real Estate Real Estate Real Estate Real Estate Real Estate INFRA Real Estate Real Estate INFRA IIC INFRA Real Estate Real Estate Real Estate Real Estate Real Estate

TOTAL

Volume in Mio. CHF

*

57.4 41.4 38.6 26.4 24.3 22.5 21.9 21.2 17.2 16.0 13.3 12.9 12.7 12.3 11.9 11.7 11.5 11.2 10.9 10.6 10.5 10.2

426.5

516

3,525

427

975 projects

1,281

3,186

22 projects

At endJuly 2010

order book revised since 1.8.2010

Division

Order intake projects < CHF 10 million

City

Order intake projects > CHF 10 million

Project

in CHF million

At endFeb 2011

* execution in joint ventures

©

Implenia | Corporate Center | March 2011 | Page 36


Order book as of 28.2.2011 Orders assured â&#x20AC;&#x201C; good quality Order book

Feb. 2011

Feb. 2010

1'748.5

1'790.0

Infrastructure

727.9

906.6

Industrial construction

709.9

760.5

3'186.2

3'457.1

Real estate

TOTAL order book

in CHF million

Secured revenue 79.5%

37.4% 8.0%

2011

Order book by customer category as %

2012

2013

Trend in orders 3,500

22%

40%

in PK nur Jahreswerte!

3,186

3,000 2,500 2,000

External External AAA Public sector and agencies

38%

1,500 Feb 2007

Feb 2008

Feb 2009 Š

Feb 2010

Feb 2011

Implenia | Corporate Center | March 2011 | Page 37


Outlook Confidence for 2011 Market in 2011 § No significant changes of the economic condition of the construction industry - Stable high-level demand in civil engineering and infrastructure works - Building construction/ residential construction stable thanks to continued high demand §

Increased regional differences

2011 Outlook § Optimism because of full order books (= our main indicator) § We continue to pursue our strategy consistently § Further improvements are possible in all divisions - systematic risk, claim and cost management - Standardization of processes §

Medium term target of CHF 100 million in operating income confirmed ©

Implenia | Corporate Center | March 2011 | Page 38


Media and Financial Analysts' Conference Other topics

Š

Implenia | Corporate Center | March 2011 | Page 39


Investigation by the Competition Commission (COMCO) Internal investigation completed and conclusions drawn Background § COMCO has been investigating the Implenia branch in Buchs (Aargau) since 10.6.2009 as well as numerous other road and civil engineering companies in the canton of Aargau to determine whether competition regulation has been violated § Implenia is cooperating with COMCO Internal investigation and consequences § Our internal investigation has been finalized § The concerned employees has been transferred internally or issued written warnings § Internal control processes have been modified and strengthened Our position § We clearly advocate open competition and are against practices that hinder competition ©

Implenia | Corporate Center | March 2011 | Page 40


Organisation Personnel changes New Board members § Strengthening the sustainability, industrial and financial expertise of the Implenia Board of Directors § Moritz Leuenberger § Theophil Schlatter Changes in Group Management § Peter Bodmer (Co-Head of the Industrial Construction Division) is leaving Implenia § New management responsibilities will be communicated in due course

©

Implenia | Corporate Center | March 2011 | Page 41


General Meeting of 19 April 2011 Further proposals to the shareholders Compensation report § Consultative ballot will be taken for the first time § In accordance with recommendations from Ethos Foundation Dividend § Dividend increased from CHF 0.70 to CHF 0.90 per share § Payment once again in the form of a par-value reduction

©

Implenia | Corporate Center | March 2011 | Page 42


Performance of Implenia shares SPI outperformed by 63% TSR: 12.6% Dividend yield: 2.8% (4.2%)

Δ = 10%

Δ = 63%

©

Implenia | Corporate Center | March 2011 | Page 43


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. 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.

©

Implenia | Corporate Center | March 2011 | Page 44



Implenia Presentation for Analysts PC 10.3.2011