Implenia AG · SIX:IMPN

Implenia — FY2023 Earnings Presentation

42 slides from Implenia's earnings presentation, Feb 28, 2024

Slide 1: Excellently Positioned for Sustainably Profitable Growth
Annual Report 2023 EXCELLENTLY POSITIONED Analysts and Media Conference FOR SUSTAINABLY Glattpark (Opfikon), 28 February 2024 PROFITABLE GROWTH © Implenia
Slide 2: Legal Notice Disclaimer
LEGAL NOTICE DISCLAIMER The following information serve solely for information purposes and should not be considered to be a recommendation to buy or sell shares of Implenia Ltd., nor should it be considered to be a request to execute financial trades. The results could include for a variety of fact
Slide 3: Agenda – Analysts and Media Conference
2023 ANNUAL RESULTS AGENDA – ANALYSTS AND MEDIA CONFERENCE Business Update Finance Update Strategy & Question & Market Outlook Answers André Wyss Stefan Baumgärtner André Wyss André Wyss CEO CFO CEO CEO Stefan Baumgärtner CFO © Implenia 2023 Annual Results | February 2024 3
Slide 4: Financial year 2023 - Targets achieved, on track for sustainably profitable growth
All Divisions contributed EBIT of CHF ~130 million targeted Financial year 2023 - to the strong Group result for 2024 Targets achieved, on EBIT of Order book remained at high level track for sustainably Board of Directors CHF 122.6 million will propose a profitable growth Record consolidated profit
Slide 6: Implenia Group – Set Targets Achieved
BUSINESS UPDATE IMPLENIA GROUP – SET TARGETS ACHIEVED 6,985 (-3%) 3,596 (+2%) 122.6 (-12%) ▪ Order book3) remained at a high level of CHF 7.3 bn currency-adjusted 7,293 (+1%) currency-adjusted 3,713 (+5%) currency-adjusted 126.5 (-9%) ▪ Revenue3) of CHF 3.7 bn Order book Revenue EBIT CHF m significa
Slide 7: Real Estate, Buildings, Civil Engineering, Specialties
BUSINESS UPDATE REAL ESTATE BUILDINGS CIVIL ENGINEERING SPECIALTIES Value-oriented Real Estate partner End-to-end construction services Expert for complex Civil Specialist capabilities with for customised projects, unique provider and real estate consultant Engineering projects in expertise in susta
Slide 8: Real Estate – Strong Results Achieved in Challenging Market Environment
BUSINESS UPDATE REAL ESTATE – STRONG RESULTS ACHIEVED IN CHALLENGING MARKET ENVIRONMENT 149 (+6%) 278 (-21%) 40.5 (-50%) ▪ Implenia continues to invest in its attractive real estate portfolio in urban book value market value currency-adjusted 40.4 (-50%) locations – at CHF 278 m, market value Real E
Slide 9: Real Estate – Developing and Building a Pioneering Portfolio of Sustainable Sites
BUSINESS UPDATE REAL ESTATE – DEVELOPING AND BUILDING A PIONEERING PORTFOLIO OF SUSTAINABLE SITES AND PROJECTS Unterfeld Süd, Baar, Switzerland Bredella, Pratteln, Switzerland Schaffhauserstr., Zurich, CH Chemin de l’Echo, Onex, CH Tivoli site, Neuchâtel, Switzerland © Implenia 2023 Annual Results |
Slide 10: Buildings – Continuous Improvement in Performance
BUSINESS UPDATE BUILDINGS – CONTINUOUS IMPROVEMENT IN PERFORMANCE 2,598 (-17%) 1,861 (+7%) 42.8 (+21%) ▪ Order book2) decreased as expected to CHF 2.6 bn currency-adjusted 2,640 (-15%) currency-adjusted 1,878 (+8%) currency-adjusted 43.3 (+22%) ▪ Revenue2) rose to CHF 1.9 bn Order book Revenue EBIT
Slide 11: Buildings – Acquisition of Wincasa Opens Up Synergy and Growth Potential
BUSINESS UPDATE BUILDINGS – ACQUISITION OF WINCASA OPENS UP ATTRACTIVE SYNERGY AND GROWTH POTENTIAL THROUGH SUCCESSFUL INTEGRATION ▪ Integration successfully completed ▪ FY 2023 results above expectations − Revenue: CHF 121.9 m − EBIT: CHF 6.7 m after transaction and integration costs, and PPA amort
Slide 12: Buildings – Builds, Modernises and Manages Large, Complex Real Estate Assets
BUSINESS UPDATE BUILDINGS – BUILDS, MODERNISES AND MANAGES LARGE, COMPLEX REAL ESTATE ASSETS IN SWITZERLAND AND GERMANY Grüne Mitte, Mannheim, Germany Project Dreiklang, Cantonal Hospital Aarau, CH Paradeplatz 6, Zurich, CH Biomedical department, Green Village, Basel, CH Geneva, CH © Implenia 2023 A
Slide 13: Civil Engineering – Further Increase in Profitability, Better Quality Order Book
BUSINESS UPDATE CIVIL ENGINEERING – FURTHER INCREASE IN PROFITABILITY, BETTER QUALITY ORDER BOOK 4,194 (+6%) 1,846 (-3%) 37.7 (+5%) ▪ High-quality order book3) worth a record amount of CHF 4.5 bn; strategic currency-adjusted 4,451 (+13%) currency-adjusted 1,947 (+3%) currency-adjusted 41.5 (+16%) fo
Slide 14: Civil Engineering – New and Modernised Infrastructure for Mobility and Energy
BUSINESS UPDATE CIVIL ENGINEERING – NEW AND MODERNISED INFRASTRUCTURE FOR CONNECTED MOBILITY AND ENERGY SUPPLY IN EUROPE Sofia Metro Station, European Alpine Tunnels: Lyon-Turin (TELT), Replacement “Spitallamm” dam, Stockholm, Sweden Grimsel, Switzerland Brenner, Semmering, Gotthard Fornebubanen, Os
Slide 15: Specialties – Significant Increase in Operating Performance
BUSINESS UPDATE SPECIALTIES – SIGNIFICANT INCREASE IN OPERATING PERFORMANCE, ONGOING PORTFOLIO ADJUSTMENTS 193 (+27%) 157 (-4%) 7.6 (+73%) ▪ Order book4) of CHF 202 m significantly above previous year's level currency-adjusted 202 (+33%) currency-adjusted 161 (-1%) currency-adjusted 7.9 (+78%) ▪ Rev
Slide 16: Specialties – Specialist Engineering Services for Innovative Projects
BUSINESS UPDATE SPECIALTIES – SPECIALIST ENGINEERING SERVICES FOR INNOVATIVE PROJECTS IN THE EUROPEAN MARKETS Campus Berlin Decks, German Bundestag, Schadowstrasse 4, Berlin Klosterwall neighbourhood, Berlin, Germany Hamburg, Germany Cantonal School Limmattal, Research and Industrial Park, Urdorf, S
Slide 17: Strong Commitment to a More Sustainable Construction and Real Estate Industry
BUSINESS UPDATE STRONG COMMITMENT TO A MORE SUSTAINABLE CONSTRUCTION AND REAL ESTATE INDUSTRY Implenia leading in ESG Ratings1) Highlights 2023 ▪ New partnership with Empa’s platform NEST: Implenia is building the unit “Beyond Zero” ▪ Decarbonisation strategy implemented for own development projects
Slide 19: Negative Foreign Currency Effect on Order Book, Revenue, EBIT and Equity Ratio
FINANCE UPDATE NEGATIVE FOREIGN CURRENCY EFFECT ON ORDER BOOK, REVENUE, EBIT AND EQUITY RATIO Order book Revenue EBIT Equity ratio CHF m CHF m CHF m % ▪ Foreign currencies with negative translation effect from EUR/CHF, +1% +5% -9% +2.5pp NOK/CHF and SEK/CHF -3% +2% -12% +2.3pp ▪ Order book3) slightl
Slide 20: Record Consolidated Profit Thanks to Strong Performance of the Divisions
FINANCE UPDATE RECORD CONSOLIDATED PROFIT THANKS TO STRONG PERFORMANCE OF THE DIVISIONS AND CAPITALISATION OF LOSS CARRY-FORWARDS Consolidated income statement (abridged) CHF m ▪ Strong EBIT of CHF 122.6 m and 3.4% EBIT margin, thanks to the profitable FY 2023 FY 2022 business at all Divisions; prev
Slide 21: Strong Free Cash Flow in the Second Half of the Year
FINANCE UPDATE STRONG FREE CASH FLOW IN THE SECOND HALF OF THE YEAR Development free cash flow CHF m ▪ Free cash flow of CHF 87.3 m (excl. the 124 87 85 price paid for Wincasa) -13 ▪ Positive free cash flow of CHF 297 m in -17 second half of the year despite lower excl. price paid for Wincasa advanc
Slide 22: Increased Total Assets Due to Wincasa Acquisition
FINANCE UPDATE INCREASED TOTAL ASSETS DUE TO WINCASA ACQUISITION Assets (abridged) CHF m ▪ Cash and cash equivalents affected by price paid for Wincasa, promissory note 31.12.2023 31.12.2022 repayment, dividend distribution and Cash & cash equivalents 478.8 608.8 lower advance payments Real estate t
Slide 23: Strong Increase in Equity Ratio to 19.8%
FINANCE UPDATE STRONG INCREASE IN EQUITY RATIO TO 19.8% DUE TO IMPROVED PROFITABILITY Liabilities (abridged) CHF m ▪ Other current liabilities higher due to outstanding second instalment of 31.12.2023 31.12.2022 Wincasa purchase price and impending maturity of a bond. Corresponding Trade payable 745
Slide 24: Significant Strengthening of Equity
FINANCE UPDATE SIGNIFICANT STRENGTHENING OF EQUITY – ON TRACK FOR SUSTAINABLY PROFITABLE GROWTH Change in equity CHF m ▪ Further strengthening of equity by CHF 93.1 m thanks to healthy consolidated profit -7.3 -29.8 ▪ Increase in equity ratio to 19.8% -7.5 575.8 -4.0 141,8 (20.0% currency-adjusted)
Slide 25: Board Will Propose a Dividend of CHF 0.60 per Share
FINANCE UPDATE BOARD OF DIRECTORS WILL PROPOSE A DIVIDEND OF CHF 0.60 PER SHARE TO ANNUAL GENERAL MEETING 575.8 (+19%) -12.7 (n/a) 0.60 (+50%) ▪ Shareholders continue to participate in the company’s Total equity Free cash flow Dividend per share growing success CHF m CHF m CHF ▪ At the AGM on 26 Mar
Slide 26: Aiming for EBIT of CHF ~130 Million in 2024
FINANCE UPDATE EXCELLENTLY POSITIONED IN THE MARKET, IMPLENIA IS AIMING FOR EBIT OF CHF ~130 MILLION IN 2024 2024 profitability target Medium-term targets Expected EBIT of >4.5% EBIT margin CHF ~130 m 25% equity ratio Strong operating business in a challenging market environment © Implenia 2023 Annu
Slide 28: Ideally Positioned to Benefit from Megatrends and Industry Changes
STRATEGY & MARKET OUTLOOK IMPLENIA IDEALLY POSITIONED TO BENEFIT FROM THE OPPORTUNITIES PRESENTED BY MEGATRENDS AND CHANGES IN THE INDUSTRY Population growth Investments ESG/Sustainability Digitalisation and and urbanisation in infrastructure and Energy Transition industrialisation Densification, ve
Slide 29: Higher Financing Costs Dampen Overall Construction Output
STRATEGY & MARKET OUTLOOK HIGHER FINANCING COSTS DAMPEN OVERALL CONSTRUCTION OUTPUT, GROWTH IN THE CIVIL ENGINEERING SECTOR Overall construction output in relevant markets Challenging market environment, individual sectors more resilient ▪ Increased financing costs dampen prognosis, accentuated in G
Slide 30: Four Strategic Priorities in the Fit for Growth Phase
STRATEGY & MARKET OUTLOOK STRATEGY IS SUCCESSFUL, THE FOUR STRATEGIC PRIORITIES CONTINUE TO BE PURSUED IN THE “FIT FOR GROWTH” PHASE PORTFOLIO PROFITABLE GROWTH INNOVATION TALENT, ORGANISATION Adapted, future-oriented business Project portfolio with improved risk New technologies and scalable Operat
Slide 31: Growing the Portfolio with New Capabilities Along the Value Chain
SECTOR- ORIENTED VALUE SPECIALI- VALUE OPERATIONAL STRATEGY & MARKET OUTLOOK CHAIN SATION MARKETS ASSURANCE EXCELLENCE GROWING THE PORTFOLIO WITH NEW CAPABILITIES ALONG THE VALUE CHAIN TO INCREASE MARGINS 1 High margin business along the whole value chain Backward integration Forward integration Por
Slide 32: Strengthen Competitiveness by Focusing on Specific Sectors
SECTOR- ORIENTED VALUE SPECIALI- VALUE OPERATIONAL STRATEGY & MARKET OUTLOOK CHAIN SATION MARKETS ASSURANCE EXCELLENCE STRENGTHEN COMPETITIVENESS BY FOCUSING ON SPECIFIC SECTORS TO FURTHER INCREASE MARGINS 2 Differentiation through sector-oriented specialisation Healthcare & research buildings Data
Slide 33: Integrated Offering in Switzerland & Germany, Tunnelling in Further Markets
SECTOR- ORIENTED VALUE SPECIALI- VALUE OPERATIONAL STRATEGY & MARKET OUTLOOK CHAIN SATION MARKETS ASSURANCE EXCELLENCE INTEGRATED OFFERING IN SWITZERLAND & GERMANY, TUNNELLING & RELATED INFRASTRUCTURE IN FURTHER MARKETS 3 Focus within markets on urban locations and its connectivity Integrated offeri
Slide 34: Continuous Risk and Performance Monitoring Through Value Assurance
SECTOR- ORIENTED VALUE SPECIALI- VALUE OPERATIONAL STRATEGY & MARKET OUTLOOK CHAIN SATION MARKETS ASSURANCE EXCELLENCE CONTINUOUS RISK AND PERFORMANCE MONITORING THROUGH VALUE ASSURANCE INCREASES RELIABILITY AND PROFITABILITY 4 Consistent implementation and further optimisation of the Value Assuranc
Slide 35: Existing Business Further Improved Through Operational Excellence
SECTOR- ORIENTED VALUE SPECIALI- VALUE OPERATIONAL STRATEGY & MARKET OUTLOOK CHAIN SATION MARKETS ASSURANCE EXCELLENCE EXISTING BUSINESS WILL BE FURTHER IMPROVED THROUGH OPERATIONAL EXCELLENCE 5 Operational Excellence1) and further improvement in productivity & efficiency Use of standardised, prefab
Slide 36: Leading Services and Capabilities, Added Value Through Integrated Model
SECTOR- ORIENTED VALUE SPECIALI- VALUE OPERATIONAL STRATEGY & MARKET OUTLOOK CHAIN SATION MARKETS ASSURANCE EXCELLENCE LEADING SERVICES AND CAPABILITIES, ADDED VALUE THROUGH INTEGRATED MODEL ACROSS THE ENTIRE SERVICE PORTFOLIO Sustainability Tal ▪ End-to-end offering of all services and capabilities
Slide 37: Implenia Is Targeting Sustainable and Profitable Growth
SECTOR- ORIENTED VALUE SPECIALI- VALUE OPERATIONAL STRATEGY & MARKET OUTLOOK CHAIN SATION MARKETS ASSURANCE EXCELLENCE IMPLENIA IS TARGETING SUSTAINABLE AND PROFITABLE GROWTH Medium-term EBIT margin Develop target >4.5% new Grow businesses FY 2023 existing Improve business EBIT margin existing PORTF
Slide 38: Implenia Is Excellently Positioned for Sustainably Profitable Growth
IMPLENIA IS EXCELLENTLY POSITIONED FOR SUSTAINABLY PROFITABLE GROWTH 2023 Annual Results © Implenia
Slide 39: Visit Our Highlight Projects!
ANNUAL RESULTS 2023 VISIT OUR HIGHLIGHT PROJECTS! PROJECT DREIKLANG, SECOND TUBE GOTTHARD ROAD TUNNEL, SPITALLAMM DAM CANTONAL HOSPITAL, AARAU GÖSCHENEN GRIMSEL ▪ Highly complex Swiss hospital build, ▪ Access-, service- and infrastructure- ▪ Seasonally managed, complex & large basic care, highly spe
Slide 40: Agenda and Contacts
ANNUAL RESULTS 2023 AGENDA AND CONTACTS Agenda 2024 AGM 26.3.2024 2024 Half-Year Results 21.8.2024 Contacts Investors Luca Rossi, Head Investor Relations ir@implenia.com +41 58 474 35 04 Media Silvan Merki, CCO communication@implenia.com +41 58 474 74 77 © Implenia 2023 Annual Results | February 202

Implenia — FY2023 Earnings Presentation on 6ix

Implenia — FY2023 Earnings Presentation

Slide 1: Excellently Positioned for Sustainably Profitable Growth

Slide 2: Legal Notice Disclaimer

Slide 3: Agenda – Analysts and Media Conference

Slide 4: Financial year 2023 - Targets achieved, on track for sustainably profitable growth

Slide 5: Business Update

Slide 6: Implenia Group – Set Targets Achieved

Slide 7: Real Estate, Buildings, Civil Engineering, Specialties

Slide 8: Real Estate – Strong Results Achieved in Challenging Market Environment

Slide 9: Real Estate – Developing and Building a Pioneering Portfolio of Sustainable Sites

Slide 10: Buildings – Continuous Improvement in Performance

Slide 11: Buildings – Acquisition of Wincasa Opens Up Synergy and Growth Potential

Slide 12: Buildings – Builds, Modernises and Manages Large, Complex Real Estate Assets

Slide 13: Civil Engineering – Further Increase in Profitability, Better Quality Order Book

Slide 14: Civil Engineering – New and Modernised Infrastructure for Mobility and Energy

Slide 15: Specialties – Significant Increase in Operating Performance

Slide 16: Specialties – Specialist Engineering Services for Innovative Projects

Slide 17: Strong Commitment to a More Sustainable Construction and Real Estate Industry

Slide 18: Finance Update

Slide 19: Negative Foreign Currency Effect on Order Book, Revenue, EBIT and Equity Ratio

Slide 20: Record Consolidated Profit Thanks to Strong Performance of the Divisions

Slide 21: Strong Free Cash Flow in the Second Half of the Year

Slide 22: Increased Total Assets Due to Wincasa Acquisition

Slide 23: Strong Increase in Equity Ratio to 19.8%

Slide 24: Significant Strengthening of Equity

Slide 25: Board Will Propose a Dividend of CHF 0.60 per Share

Slide 26: Aiming for EBIT of CHF ~130 Million in 2024

Slide 27: Strategy & Market Outlook

Slide 28: Ideally Positioned to Benefit from Megatrends and Industry Changes

Slide 29: Higher Financing Costs Dampen Overall Construction Output

Slide 30: Four Strategic Priorities in the Fit for Growth Phase

Slide 31: Growing the Portfolio with New Capabilities Along the Value Chain

Slide 32: Strengthen Competitiveness by Focusing on Specific Sectors

Slide 33: Integrated Offering in Switzerland & Germany, Tunnelling in Further Markets

Slide 34: Continuous Risk and Performance Monitoring Through Value Assurance

Slide 35: Existing Business Further Improved Through Operational Excellence

Slide 36: Leading Services and Capabilities, Added Value Through Integrated Model

Slide 37: Implenia Is Targeting Sustainable and Profitable Growth

Slide 38: Implenia Is Excellently Positioned for Sustainably Profitable Growth

Slide 39: Visit Our Highlight Projects!

Slide 40: Agenda and Contacts

Slide 41: Questions & Answers

Slide 42: Thank You Very Much!