Media and Financial Analysts’ Conference Zurich, 29 August 2013
A. Affentranger / B. Fellmann
Media and Financial Analysts’ Conference Highlights
Š
Implenia | Investor Relations | August 2013 | Page 2
Highlights first half-year 2013 "Yet another record"
in CHF million
Strong operating performance 1. Record figures Consolidated revenue Operating income Consolidated profit
Operating income
110,3
(+15.5%) (+5.0%) (+27.7%)
93,7 77,7
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
30,1 19,4
12,3
2010
2011
2nd semester
28,6
20121
2013
1st semester
1 Restated Š
Implenia | Investor Relations | August 2013 | Page 3
Key aspects in 2013 Daring to Shape our Future Topics
Tangible success
Daring to Shape our Future
New organisation established Positive feedback from both clients and employees New D-A-CH organisation for tunnelling business
Business
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
Risk management
Risk Management introduced for Buildings in whole Switzerland Health and Safety with a new focus
Administration
Restatements IAS 19/IFRS 11 implemented New, simplified setup of SAP ©
Implenia | Investor Relations | August 2013 | Page 4
Media and Financial Analysts’ Conference Swiss and Norwegian real estate and construction market
Š
Implenia | Investor Relations | August 2013 | Page 5
Construction market Switzerland Construction spending in Switzerland low compared to GDP
Real construction spending Switzerland (CHF billion) since 1950 (2012 prices)
*2012: Estimate SBV
Construction spending in % of GDP since 1950
Source:: SNB, SBV, SECO
Š
Implenia | Investor Relations | August 2013 | Page 6
Construction market Switzerland Continuous positive trend
In billions
Construction spending: approx. CHF 55 billion 60
0.03 0.02
50
2.4%
2.0%
Real change in construction indices
1.7%
0.01
40
1.0%
0 -0.01
30
-0.02
20
-0.03 -0.04
10 0 2011
2012 2013E 2014E
Source: SECO, Schweizerischer Baumeister Verband (SBV)
-3.2% 2011 2012 2013E 2014E Prognose Bauinvestitionen Mrz Forecast construction 2013 investments March 2013 Prognose Bauinvestitionen Jun Forecast construction 2013 investments June 2013
Seasonal – and price adjusted construction index Source: Credit Suisse AG, SBV 3Q13
Š
Implenia | Investor Relations | August 2013 | Page 7
Real estate and construction market Switzerland Interest rates on low level – dynamic immigration
Net immigration with unchanged dynamic
Key interest rates remain on all-time low 5 4 3 2 1 0 1999
2001
2003
2005
2007
2009
2011
2013
London,3-month Libor 3 LIBOR Monate London, RenditenSwiss von Obligationen der yield Eidgenossenschaf 10 Jahre 10-years government bond
Source: SNB
1st quarter
2nd quarter
3rd quarter
4th quarter
Net immigration (permanent resident population) (in ‘000 Source : Fahrländer & Partner
©
Implenia | Investor Relations | August 2013 | Page 8
Real estate market Switzerland Slight growth in mortgage volumes – Number of hotspots reduced
Growth in mortgage loans to private households
From 11 to 3 critical regions in residential building
Source: Credit Suisse, SNB
Source: ETH Zurich (August 2013)
Š
Base: Price variation on comparis.ch Model: based on price dynamic and not absolut prices Gradula reduction or stagnation of the prices expected
Implenia | Investor Relations | August 2013 | Page 9
Infrastructure market Switzerland Good visibility and volumes rising in the medium-term Investment volume in underground construction
Investment volume national roads
Secured and possible projects 2012 - 2022 (in CHF million)
Secured and possible projects 2012 - 2022 (in CHF million)
National road tunnels (possible) Railway tunnels (possible) Micro-tunnelling / pipe jacking (secured) Source : Fachverband Infra
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)
Source: Fachverband Infra
Š
Implenia | Investor Relations | August 2013 | Page 10
Norwegian construction market “National Transport Plan” drives continued growth New National Transport Plan +58% (CHF billion)
Steep increase of NTP’s already in the past
CHF 30 billion
Roads CHF 82 billion
CHF 52 billion
NTP 2010-2019
Increase
NTP 2014-2023
Source: regjeringen.no/sd
Railway
Breakdown NTP 2014-2023 4%
2%
33%
Railway Roads
Sea / coast
Sea/Coast 61%
Various
Approved
New NTP
Source : regjeringen.no/sd
Source : regjeringen.no/sd ©
Implenia | Investor Relations | August 2013 | Page 11
Conclusion Fundamentals remain intact »
»
»
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
©
Implenia | Investor Relations | August 2013 | Page 12
Half-Year Report 2013 Key figures and operating income
Š
Implenia | Investor Relations | August 2013 | Page 13
Key figures and operating income Continuing momentum in CHF million
Consolidated revenue
Operating income
Consolidated profit
EBITDA
Jun 13
Jun 121
+/- in %
1,408.5
1,219.5
15.5%
30.1
28.6
5.0%
2.1%
2.3%
21.2
16.6
1.5%
1.4%
51.6
47.9
3.7%
3.9%
27.7%
7.8%
1 Restated Š
Implenia | Investor Relations | August 2013 | Page 14
Modernisation – Revenue and EBIT Launch of repositioning
in CHF million
EBIT
Revenue
EBIT / EBIT margin
93 -1,8
46
-0,6
-2,1% -3,0%
-3,5%
-0,6
-4,2%
29
-1,6
47
-1,4
-3,4 20121
Jun 2013
20121
Jun 2013
Jun 2010
-1,5
-1,6
Jun 2011
Jun 20121
2nd semester
2nd semester
EBIT
1st semester
1st semester
EBIT margin
Jun 2013
1 Restated Š
Implenia | Investor Relations | August 2013 | Page 15
Modernisation – Sales development and order book Promising outlook
in CHF million
Revenue development 109 62
91
93
55
46 29
Limmatblick, Dietikon
36
47
2010
2011
20121
1 Restated
Development of order book 50
47
1st sem. 2013
Secured revenue
Actual year Prior year
53 39
42 94,8% 70,6%
9,6%
8,3%
31.12.11
30.06.12
31.12.12
30.06.13
2013
2014 Š
Implenia | Investor Relations | August 2013 | Page 16
Development – Invested capital and EBIT Project portfolio generates new record result Invested capital 203 177
EBIT
in CHF million
EBIT
31,6
14,3 10,6
10,3 253
244
8,9
21,0 14,3
-50
-67
20121
Jun 2013
10,6
20121
Jun 2013
Other balance sheet positions
2nd semester
Real estate transactions
1st semester
Jun 2010
Jun 2011
Jun 20121
Jun 2013
1 Restated Š
Implenia | Investor Relations | August 2013 | Page 17
Buildings – Revenue and EBIT Strong momentum EBIT
Revenue 1.408
EBIT / EBIT margin
19,7
747 806
10,4
7,1
12,9
Jun 2013
6,8
10,4
2,5
661
20121
in CHF million
6,8 -7,4
-6,7
20121
Jun 2013
1,3%
1,3%
1,0%
0,5%
Jun 2010
Jun 2011
Jun 20121
2nd semester
2nd semester
EBIT
1st semester
1st semester
EBIT margin
Jun 2013
1 Restated ©
Implenia | Investor Relations | August 2013 | Page 18
Buildings – Sales development and order book Success in the market
in CHF million
Revenue development
„vierfeld“-Areal, Pratteln
1.833
1.354
1.408
788
801
747
509
553
661
2010
2011
20121
806
1st sem. 2013
1 Restated
Development of order book 1.771
1.297
Secured revenue 1.832
Actual year Prior year
2.026
96,0%
96,0% 57,8%
31.12.11
30.06.12
31.12.12
30.06.13
2013
59,0%
2014 ©
Implenia | Investor Relations | August 2013 | Page 19
Tunnelling & CE – Revenue and EBIT Difficult start EBIT
Revenue 333
in CHF million
EBIT / EBIT margin
35,7
18,6 15,7
17,1
185
11,0 11,0%
129
8,7%
18,6
148
-7,4
20121
Jun 2013
12,6%
20121
4,9 -6,74,9
Jun 2013
3,8%
Jun 2010
Jun 2011
Jun 20121
2nd semester
2nd semester
EBIT
1st semester
1st semester
EBIT margin
Jun 2013
1 Restated ©
Implenia | Investor Relations | August 2013 | Page 20
Tunnelling & CE – Sales development and order book Expected adjustment to new market volumes
in CHF million
Revenue development 313
315
333
170
188
185 129
Court – Moutier, Bern
143
127
148
2010
2011
20121
1st sem. 2013
1 Restated
Development of order book
Secured revenue
Actual year Prior year
812 679
605
492 91,2%
93,0% 45,8% 26,2%
31.12.11
30.06.12
31.12.12
30.06.13
2013
2014 ©
Implenia | Investor Relations | August 2013 | Page 21
Tunnelling & CE – EBIT development Reasons for the decline in EBIT 18,6
-9,0
-1,7 -3,0
EBIT 1st semester 2012
NEAT projects and completed projects
Project-related losses in the Middle East
4,9
Tender costs abroad
EBIT 1st semester 2013
Š
Implenia | Investor Relations | August 2013 | Page 22
Construction Switzerland – Revenue and EBIT Sound performance despite adverse weather conditions EBIT
Revenue 866
in CHF million
EBIT / EBIT margin
22,3
-1,9%
522
-2,7%
28,9
-1,9%
-3,4%
368 -6,6 344
-7,4-6,6
-6,7
-8,0
-7,0
20121
Jun 2013
20121
Jun 2013
-7,0
-9,7 Jun 2010
Jun 2011
Jun 20121
2nd semester
2nd semester
EBIT
1st semester
1st semester
EBIT margin
Jun 2013
1 Restated Š
Implenia | Investor Relations | August 2013 | Page 23
Construction Switzerland – Sales development and order book Business broadly supported in CHF million Revenue development
A9 Transjurane
801
509
512
297
289
344
2010
2011
20121
522 368
1st sem. 2013
1 Restated
Development of order book
Secured revenue
Actual year Prior year
520 395
866
806
481 386 82,2%
78,1%
13,1%
31.12.11
30.06.12
31.12.12
30.06.13
2013
16,5%
2014 Š
Implenia | Investor Relations | August 2013 | Page 24
Norge – Revenue and EBIT Excellent team performance EBIT
Revenue 218
in CHF million
EBIT / EBIT margin 4,7
4,7
3,0 160 134 2,9%
3,9 -1,1%
84
-7,4 -0,9
20121
Jun 2013
20121
-6,7 -0,9 Jun 2013
Jun 2010
Jun 2011
Jun 20121
2nd semester
2nd semester
EBIT
1st semester
1st semester
EBIT margin
Jun 2013
1 Restated ©
Implenia | Investor Relations | August 2013 | Page 25
Norge – Sales development and order book Impressive growth
in CHF million
Revenue development 218 160
134
122
84 2010
RV 555 Drotningsvik–Breivikskiftet, Bergen Development of order book
Pro forma 2011
1 Restated
20121
1st sem. 2013
Secured revenue
Actual year Prior year
300
251 197
Project UFP08 88,7%
127
84,8%
20,6%
31.12.11
30.06.12
31.12.12
30.06.13
2013
37,7%
2014 ©
Implenia | Investor Relations | August 2013 | Page 26
EBIT divisions Top results despite negative influences in CHF million
Jun 13
Jun 121
+/- in %
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
26.7
26.8
1.9%
2.2%
EBIT divisions
-0.4%
1 Restated Š
Implenia | Investor Relations | August 2013 | Page 27
Media and Financial Analysts’ Conference IFRS Reporting
Š
Implenia | Investor Relations | August 2013 | Page 28
Operating income and consolidated profit Significantly improved consolidated result in CHF million
EBIT divisions
Jun 13
Jun 121
26.7
26.8
3.4
1.8
30.1
28.6
2.1%
2.3%
Financial result
-2.0
-5.7
Consolidated profit before tax
28.1
22.9
Tax
-6.9
-6.3
Tax rate
24.6%
27.5%
Consolidated profit
21.2
16.6
1.5%
1.4%
Miscellaneous / Holding Operating income
+/- in % -0.4%
5.0%
23.0%
27.7%
1 Restated Š
Implenia | Investor Relations | August 2013 | Page 29
IFRS Restatements Impact of IAS 19/IFRS 11 restatement IAS 19
IFRS 11
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.
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.
Effect:
Effect:
in CHF million
Change in operating income
Change in equity
31.12.2011
0,0
-114,3
30.06.2012
3,8
31.12.2012
1,1
in CHF million
Total assets
Revenue
EBIT before min.1
30.06.2012
135
25
0,6
-93,0
31.12.2012
91
105
4,8
-57,1
30.06.2013
89
13
1,6
1 The
P&L effect will be booked to the minority holdings (min.). For Implenia shareholders there will be no change. Š
Implenia | Investor Relations | August 2013 | Page 30
Operating income and consolidated profit Significantly improved consolidated result in CHF million
EBIT divisions
Jun 13
Jun 121
26.7
26.8
3.4
1.8
30.1
28.6
2.1%
2.3%
Financial result
-2.0
-5.7
Consolidated profit before tax
28.1
22.9
Tax
-6.9
-6.3
Tax rate
24.6%
27.5%
Consolidated profit
21.2
16.6
1.5%
1.4%
Miscellaneous / Holding Operating income
+/- in % -0.4%
5.0%
23.0%
27.7%
1 Restated Š
Implenia | Investor Relations | August 2013 | Page 31
Holding and Miscellaneous Costs reduced 1st semester 2013
3,374
in 1.000 CHF
1st semester 20121 in 1.000 CHF
1,832 4,330
-956
5,481
0
-3,328 Holding costs
Amortisation of intangible assets
IAS 19
Impact on operating income
Holding costs
-321 Amortisation of intangible assets
IAS 19
Impact on operating income
1 Restated Š
Implenia | Investor Relations | August 2013 | Page 32
Balance sheet – Assets Strong balance sheet in CHF million
Jun 13
Jun 2012 1
+/- in %
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
1,793.9
1,608.4
11.5%
402.9
417.3
-3.4%
2,196.8
2,025.7
8.4%
Total current assets Total non-current assets Total ASSETS
1 Restated Š
Implenia | Investor Relations | August 2013 | Page 33
Balance sheet – Liabilities IAS 19 with significant impact in CHF million
Current financial liabilities
Jun 13
Jun 20121
+/- in %
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
1,336.5
1,194.4
210.1
210.6
6.9
5.2
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%
2,196.8
2,025.7
8.4%
Total current liabilities Non-current financial liabilities Other non-current liabilities Deferred taxes, provisions, pension assets
Total LIABILITIES
11.9%
1 Restated Š
Implenia | Investor Relations | August 2013 | Page 34
Cash flow statement Sales growth requires more NWC
in CHF million
44,9
(29,4)
(141,4)
7,2
(11,6) (17,2)
89,0
(58,5) HJ 121: 39,7
(43,9)
Profit before Receivables changes in NWC
(24,1)
28,2
(5,7)
(10,4)
(13,6)
(29,8)
Liabilities
Work in progress/joint ventures
Real estate transactions
Interest and taxes
Investments and M&A
Free cash flow
1 Restated Š
Implenia | Investor Relations | August 2013 | Page 35
Daring to Shape our Future The course for a successful future has been set
Š
Implenia | Investor Relations | August 2013 | Page 36
Our organisation since the beginning of February 2013 Structure and targets
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 ©
Implenia | Investor Relations | August 2013 | Page 37
Sectors
Our answer to institutional, interregional customers Modernisation & Development
Buildings
Tunnelling & CE
Activities
Activities
Activities
Development units sharp in focus
Setup of Consulting and Modernisation units
First “sounding” with key clients
Integration building construction and general contracting
Capacity adjustment in Switzerland
International market focus
D-A-CH as new market and calculation organisation
Market acceptance Lean construction
©
Implenia | Investor Relations | August 2013 | Page 38
Regional Units
On the pulse of local customers Construction Schweiz
Norge
Activities
Activities
Optimized our network
Strengthening the organisation and structures
Targeted ”white spot”-areas with first successes
Improved market position
Lean Management
Benefiting from Group know-how
Involvement in Group Management
©
Implenia | Investor Relations | August 2013 | Page 39
Media and Financial Analysts’ Conference Our development continues
Š
Implenia | Investor Relations | August 2013 | Page 40
Outlook 2013 Order volume secured
in CHF million
Order book in CHF million
Secured revenue (like for like) Jul 13
Modernisation & Development
Jul 12
+/- in %
44
49
1'994
1'884
Tunnelling & Civil Engineering
482
642
-24.9%
Construction Switzerland
458
509
-10.1%
Norge
279
191
46.6%
3'257
3'275
-0.5%
Buildings
Total order book
Change in revenue ’12-’13: +15.5% Actual year
-11.1%
Prior year
5.9%
94,0%
91,8%
2013
Development of order book by customer category
37%
2014
Order book trend 4.000
32%
46,9%
35,7%
3.500
3.369
3.540
3.283
3.257
Jun 2012
Jul 2013
3.008
3.000 2.500
Third parties Third parties AAA
30%
2.000 Jun 2009
Jun 2010
Jun 2011
Public sector and agencies
©
Implenia | Investor Relations | August 2013 | Page 41
Outlook 2013 Good reason for optimism
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
©
Implenia | Investor Relations | August 2013 | Page 42
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%
©
Implenia | Investor Relations | August 2013 | 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. 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. ©
Implenia | Investor Relations | August 2013 | Page 44