Page 1

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


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