Implenia Ag · SIX:IMPN
Implenia — Investor Day (November 2022)
103 slides from Implenia's investor day presentation, Nov 1, 2022
Slide 1: Capital Markets Day 'Fit for Growth'
CAPITAL MARKETS DAY ‘FIT FOR Implenia GROWTH’ Connect Opfikon 1 November 2022 © Implenia
Slide 2: Legal Notice Disclaimer
LEGAL NOTICE DISCLAIMER This presentation, material, any associated oral presentation and/or discussion (hereafter together, the This MATERIAL is not for publication, transmission or distribution, directly or indirectly, into the United States or its "MATERIAL") has been prepared by Implenia Ltd and
Slide 3: Welcome to our Capital Markets Day: 'Fit for Growth'
CAPITAL MARKETS DAY WELCOME TO OUR CAPITAL MARKETS DAY: ‘FIT FOR GROWTH’ Time Topic Presenter 09.00 Welcome and strategy update: Current position, accomplishments and outlook André Wyss 09.30 Divisional updates: Civil Engineering Christian Späth Specialties Anita Eckardt Buildings Jens Vollmar Real
Slide 4: Our presenters today
CAPITAL MARKETS DAY OUR PRESENTERS TODAY André Wyss Christian Späth Anita Eckardt Jens Vollmar Adrian Wyss Stefan Baumgärtner CEO Head Division Head Division Head Division Head Division CFO Civil Engineering Specialties Buildings Real Estate © Implenia Capital Markets Day | November 2022 4
Slide 5: Strategy Update
STRATEGY UPDATE CURRENT POSITION, ACCOMPLISHMENTS AND OUTLOOK André Wyss CEO © Implenia 5
Slide 6: Implenia creates and builds with and for people
STRATEGY UPDATE IMPLENIA CREATES AND BUILDS WITH AND FOR PEOPLE 3,765 mn 114.8 mn >130 mn CHF 7,148 mn CHF, 2021 revenue CHF, 2021 EBIT CHF, 2022 EBIT guidance Order book HY1.2022 4 Divisions 1 Integrated model Joint service offering along value chain 4 strategic priorities ▪ Portfolio ▪ Profitable
Slide 7: Transformation successfully completed
MID TO LONG TERM ‘NEW HORIZON’ AN INTEGRATED LEADING MULTINATIONAL ✓ CONSTRUCTION SHORT TO MID TERM AND REAL ESTATE ‘FIT FOR GROWTH’ SERVICE PROVIDER CURRENT FOCUS: FURTHER STRENGTHEN 2019-2022 OUR COMPETITIVE POSITION TRANSFORMATION SUCCESSFULLY COMPLETED © Implenia 7
Slide 8: Stronger after comprehensive transformation
✓ STRATEGY UPDATE Improvement of financial KPIs STRONGER Positive operating AFTER performance of Adjusted business portfolio all Divisions COMPREHENSIVE Sale or ramp-down TRANSFORMATION of loss-making Record-high or non-strategic STRATEGY PROVEN New strategy and order book Significantly businesses I
Slide 9: We build on our core strengths
STRATEGY UPDATE WE BUILD ON OUR CORE STRENGTHS Our mission and the core strength of our business Enabled through our strategic priorities We work with and for people to sustainably develop real estate, Customer-centric and higher-margin and to construct buildings and infrastructure that meet their b
Slide 10: Implenia is targeting sustainable and profitable growth
STRATEGY UPDATE IMPLENIA IS TARGETING SUSTAINABLE AND PROFITABLE GROWTH Mid- to Short- to mid-term EBIT margin target ~3.5% long-term EBIT margin target EBIT Selective >4.5% Develop new acquisitions PORTFOLIO CHF mn, margin in % Improve Grow existing businesses existing business business >130 PROFIT
Slide 11: Portfolio
PORTFOLIO © Implenia 11
Slide 12: Customer-centric and higher-margin businesses along entire value chain
TALENT & PROFITABLE ORGANI- STRATEGY UPDATE PORTFOLIO GROWTH INNOVATION SATION CUSTOMER-CENTRIC AND HIGHER-MARGIN BUSINESSES ALONG ENTIRE VALUE CHAIN, BASED ON MARKET DEMAND CUSTOMER-CENTRIC SECTOR-ORIENTED BACKWARD / MARKET DEMAND BUSINESS DEVELOPMENT SPECIALISATION FORWARD INTEGRATION ▪ Megatrends
Slide 13: Megatrends continue to offer attractive opportunities
TALENT & PROFITABLE ORGANI- STRATEGY UPDATE PORTFOLIO GROWTH INNOVATION SATION MEGATRENDS CONTINUE TO OFFER ATTRACTIVE OPPORTUNITIES Infrastructure investments Population growth Urbanisation and renewable energies Global population is estimated to rise from 8 billion 81.2%2) of the population in Wes
Slide 14: Implenia offers integrated services along value chain
TALENT & PROFITABLE ORGANI- STRATEGY UPDATE PORTFOLIO GROWTH INNOVATION SATION IMPLENIA OFFERS INTEGRATED SERVICES ALONG VALUE CHAIN ▪ End-to-end planning and construction management competence for large and complex higher-margin projects ▪ High flexibility to integrate best internal and external ca
Slide 15: Strengthen integrated model with new competencies along value chain
TALENT & PROFITABLE ORGANI- STRATEGY UPDATE PORTFOLIO GROWTH INNOVATION SATION STRENGTHEN INTEGRATED MODEL WITH NEW COMPETENCIES ALONG VALUE CHAIN AIMING TO INCREASE MARGINS Sector-oriented specialisation Differentiation Specialisation A ▪ Specialisation: Create USPs in existing business models with
Slide 16: Targeting successful small acquisitions in short to mid term
TALENT & PROFITABLE ORGANI- STRATEGY UPDATE PORTFOLIO GROWTH INNOVATION SATION WE TARGET SUCCESSFUL SMALL ACQUISITIONS IN THE SHORT TO MID TERM, INCREMENTALLY LARGER DEAL SIZE AT A LATER STAGE POSSIBLE Acquisition criteria Complementary footprint in Switzerland & Germany, focus on large and complex
Slide 17: Profitable Growth
PROFITABLE GROWTH © Implenia 17
Slide 18: Main areas to improve existing business and develop new businesses
TALENT & PROFITABLE ORGANI- STRATEGY UPDATE PORTFOLIO GROWTH INNOVATION SATION MAIN AREAS TO IMPROVE EXISTING BUSINESS AND DEVELOP NEW BUSINESSES FOR PROFITABLE GROWTH NET WORKING CAPITAL VALUE ASSURANCE OPERATIONAL EXCELLENCE PERFORMANCE IMPROVEMENT MANAGEMENT Ongoing risk and performance Increased
Slide 19: Value Assurance – ongoing risk and performance management
TALENT & PROFITABLE ORGANI- STRATEGY UPDATE PORTFOLIO GROWTH INNOVATION SATION VALUE ASSURANCE – ONGOING RISK AND PERFORMANCE MANAGEMENT LEADS TO RELIABLE AND IMPROVED PROJECT MARGINS Organisation in four Divisions and Global Functions with combined expertise, clear responsibilities and Organi- inte
Slide 20: Innovation
INNOVATION © Implenia 20
Slide 21: Innovation focus pursued with three-fold innovation strategy
TALENT & PROFITABLE ORGANI- STRATEGY UPDATE PORTFOLIO GROWTH INNOVATION SATION INNOVATION FOCUS PURSUED WITH THREE-FOLD INNOVATION STRATEGY Three-fold strategy Fast stage-gate innovation HS-EPS1) tunnel element A performance material product creating Innovation Hub a safe, lightweight and flexible s
Slide 22: Sustainability and innovation for our customers
TALENT & PROFITABLE ORGANI- STRATEGY UPDATE PORTFOLIO GROWTH INNOVATION SATION SUSTAINABILITY AND INNOVATION FOR OUR CUSTOMERS Increasing customer demand Green Village, Geneva Implenia leading in ESG ratings1) ▪ Preferred partner for the implementation of demanding, customer-driven, sustainable deve
Slide 23: Sustainability holistic view with our 12 goals
TALENT & PROFITABLE ORGANI- PORTFOLIO GROWTH INNOVATION SATION SUSTAINABLE PRODUCTS AND SERVICES 1. SUSTAINABLE 2. SUSTAINABLE 3. ECO CON- DEVELOPMENT SUPPLY CHAIN STRUCTION SITE & REALISATION Cooperation with Project-specific RESPECT FOR THE ENVIRONMENT Highest standards sustainable sustainability
Slide 24: Talent and Organisation
TALENT AND ORGANISATION © Implenia 24
Slide 25: Talent and organisation with three focus areas
TALENT & PROFITABLE ORGANI- STRATEGY UPDATE PORTFOLIO GROWTH INNOVATION SATION TALENT AND ORGANISATION WITH THREE FOCUS AREAS TO ATTRACT, MANAGE AND RETAIN TALENTS COLLABORATION & TALENT RECRUITMENT EMPLOYEE ENGAGEMENT MANAGEMENT EXCELLENCE Having the right work models, Focus on continuous learning,
Slide 26: Civil Engineering, Specialties, Buildings, Real Estate
CAPITAL MARKETS DAY CIVIL ENGINEERING SPECIALTIES BUILDINGS REAL ESTATE © Implenia Capital Markets Day | November 2022 26
Slide 27: Division Civil Engineering
We are the preferred expert for large and complex civil engineering projects DIVISION Christian CIVIL Späth ENGINEERING © Implenia 27
Slide 28: Market: high demand for mobility and energy infrastructure projects
DIVISION CIVIL ENGINEERING MARKET: HIGH DEMAND FOR LARGE-SCALE MOBILITY AND ENERGY INFRASTRUCTURE PROJECTS Market assessment ▪ High demand for Civil Engineering services in all areas – especially for large-scale mobility infrastructure projects, in all markets, funded by public-sector customers’ inv
Slide 29: Portfolio: vast expertise in all civil engineering disciplines
DIVISION CIVIL ENGINEERING PORTFOLIO: VAST EXPERTISE IN ALL CIVIL ENGINEERING DISCIPLINES TUNNELLING CIVIL SPECIAL FOUNDATIONS C Unique experience, e.g. in construction of Planning & realisation of complex projects – Planning & execution of complete solutions for traffic tunnels and power plants, pr
Slide 30: Implenia is back at Gotthard
IMPLENIA IS BACK AT GOTTHARD © Implenia Capital Markets Day | November 2022 30
Slide 31: Implenia brings expert knowledge to all Alpine base tunnels
DIVISION CIVIL ENGINEERING IMPLENIA BRINGS EXPERT KNOWLEDGE TO ALL ALPINE BASE TUNNELS 1.5% Gotthard Lot 241, Semmering Base Tunnel – 2.5% Main Tunnel North Lot 2.1, Fröschnitz Trench EBIT Customer: Federal Roads Office Client: Austrian Federal Railway margin TUNNELLING Constr. period: 2022-2029 Con
Slide 32: Hamburg District Heating Network
DIVISION CIVIL ENGINEERING INTEGRATED AND SPECIALISED OFFERING FOR ‘HAMBURG DISTRICT HEATING NETWORK’ – A LARGE AND COMPLEX ENERGY PROJECT 1.5% Hamburg District Heating Network, – 2.5% tunnel, heating pipe, operating technology EBIT ▪ Customer: Wärme Hamburg margin TUNNELLING ▪ Constr. period: 2021-
Slide 33: Spitallamm Dam, Grimsel
DIVISION CIVIL ENGINEERING 1.5% – 2.5% EBIT margin TUNNELLING Video Grimsel CIVIL SPITALLAM DAM, ‘SPITALLAMM’ SPECIAL DAM, A TRUE GRIMSEL ONCE-IN-A-CENTURY STRUCTURE FOUNDATIONS © Implenia Capital Markets Day | November 2022 33
Slide 34: Highlight projects across countries and business units
DIVISION CIVIL ENGINEERING HIGHLIGHT PROJECTS ACROSS COUNTRIES AND BUSINESS UNITS 1.5% Ship lift, ‘Sofia’ metro station, – 2.5% Niederfinow Stockholm EBIT Client: GDWS, Bonn Client: Stockholm Region margin CIVIL TUNNELLING Constr. period: 2008-2022 Constr. period: 2021-2025 Total volume: CHF 330 mil
Slide 35: Operational excellence: key to further strengthen business
DIVISION CIVIL ENGINEERING OPERATIONAL EXCELLENCE: KEY TO FURTHER STRENGTHEN BUSINESS Value Assurance Process Lean Management BIM Integration ▪ Strongly anchored in core processes ▪ Think in processes to eliminate ▪ Increasing demand in all markets, ▪ Transparency via project audits, waste in the en
Slide 36: Innovation: use cases at project Fornebubanen, Oslo
DIVISION CIVIL ENGINEERING INNOVATION: USE CASES AT PROJECT FORNEBUBANEN, OSLO Augmented Site layout reality planning Continuous progress models © Implenia Capital Markets Day | November 2022 36
Slide 37: Profitable growth: track record with operational excellence & innovation
DIVISION CIVIL ENGINEERING PROFITABLE GROWTH: COMBINING EXTENSIVE TRACK RECORD AND EXPERTISE WITH OPERATIONAL EXCELLENCE & INNOVATION Short- to mid-term expectation 1.5% – Substantial 2.5% EBIT & EBIT EBIT FY 2021 margin im- margin provements CIVIL TUNNELLING 1.2% EBIT margin1) Improve Grow existing
Slide 38: Key takeaways Civil Engineering
Key takeaways Civil Engineering ▪ Trusted and experienced partner for large and complex infrastructure projects ▪ Order book with a higher-value project portfolio and increased profitability due to strict Value Assurance processes ▪ Increased efficiencies with digitalisation and application of BIM ▪
Slide 39: Division Specialties
We are the preferred provider of specialised competences that sustainably improves the industry Anita DIVISION Eckardt SPECIALTIES © Implenia 39
Slide 40: Market: attractive opportunities for services in Switzerland and Germany
DIVISION SPECIALTIES MARKET: ATTRACTIVE OPPORTUNITIES FOR SERVICES, MAINLY IN SWITZERLAND AND GERMANY Market assessment ▪ Building Construction Logistics (BCL): very high demand for services to manage construction sites in urban areas more safely, sustainably, efficiently and effectively ▪ Building
Slide 41: Portfolio: offering for Implenia and external customers
DIVISION SPECIALTIES PORTFOLIO: OFFERING FOR IMPLENIA AND EXTERNAL CUSTOMERS BCL PLANOVITA TIMBER CON- BBV SYSTEMS FACADE OTHERS Building Construction Building Technology STRUCTION Post-Tensioning TECHNOLOGY Logistics Planning and Geotechnology ▪ Consulting, Planning ▪ Heating, ventilation, ▪ Large-
Slide 42: BCL – Cantonal Hospital, Aarau
BCL Consulting, Planning, Optimisation and Execution of CANTONAL HOSPITAL, data-driven Building AARAU Construction Logistics Division Buildings as Total Contractor, full-range BCL services, including recycling centre optimising sustainability. Bim2Field: data about materials flows directly from the
Slide 43: Timber Construction – Rocket & Tigerli, Winterthur
TIMBER CONSTRUCTION Large-scale, pre-fabricated and tailored to project- ROCKET & TIGERLI LOKSTADT, specific needs WINTERTHUR All Implenia Divisions involved; customer Ina Invest. Pre-fabricated modular timber construction, novel technologies to realise timber high- rise. Digitalised from architect
Slide 44: Innovation: for customers in all businesses of Specialties
DIVISION SPECIALTIES INNOVATION: FOR CUSTOMERS IN ALL BUSINESSES OF SPECIALTIES Timber Construction: Timber-concrete slab BBV Systems: Digital post- tensioning monitoring using IoT-fibre optic sensors Facade Technology: Energy autonomous facade BCL: Multi modules Chamber Container © Implenia Capital
Slide 45: Profitable growth: transforming and scaling innovative businesses
DIVISION SPECIALTIES PROFITABLE GROWTH: TRANSFORMING AND SCALING INNOVATIVE BUSINESSES TO CHANGE THE INDUSTRY SUSTAINABLY Short- to mid-term expectation Elevated EBIT and EBIT FY 2021 margins BCL PLANOVITA -1.6% EBIT margin1) Improve Grow existing Develop Selective TIMBER existing business business
Slide 46: Key takeaways Division Specialties
Key takeaways Division Specialties ▪ Providing solutions to main challenges in construction industry to optimise efficiency and sustainability ▪ Scalability in profitable new business models with digitalisation, automatisation, standardisation and data ▪ Businesses in growth areas – renewable materi
Slide 47: Division Buildings
We are a leading end-to-end building construction service provider Jens DIVISION Vollmar BUILDINGS © Implenia 48
Slide 48: Market: focus on core markets, Switzerland and Germany
DIVISION BUILDINGS MARKET: FOCUS ON CORE MARKETS, SWITZERLAND AND GERMANY Market assessment ▪ Growing demand for building services in both markets Switzerland and Germany ▪ Both construction sectors – new buildings and modernisation – will increase with a growing focus on modernisation ▪ Individual,
Slide 49: Portfolio: leading end-to-end building construction service provider
DIVISION BUILDINGS PORTFOLIO: LEADING END-TO-END BUILDING CONSTRUCTION SERVICE PROVIDER Consulting New Buildings Modernisation Master Builder & Planning Tailor-made consulting and End-to-end service Conversion and reuse of Execution of technically planning solutions with provider for large and exist
Slide 50: Consulting & Planning – Brannhof, Zurich
CONSULTING & PLANNING Tailor-made consulting and planning solutions with the expertise of a BRANNHOF, ZURICH holistic construction service provider Successful consulting for the project management team, guiding through a crucial phase. Redevelopment of a historic building in Zurich‘s Bahnhofstrasse
Slide 51: Consulting & Planning – Office & Logistics Centre, University of Basel
CONSULTING & PLANNING Tailor-made consulting and planning solutions with the expertise of a OFFICE & LOGISTICS CENTRE, holistic construction UNIVERSITY OF BASEL service provider Holistic consulting for the customer of a new large- scale office and logistics centre, single tenant University Hospital
Slide 52: New Buildings – Laboratory Complex, University of Basel
NEW BUILDINGS End-to-end service provider for large and complex building LABORATORY COMPLEX, projects in specialised UNIVERSITY OF BASEL segments Large and complex laboratory construction project. Implenia was selected as total contractor due to highly specialised experience for similar laboratory a
Slide 53: New Buildings – Cantonal Hospital, Aarau
NEW BUILDINGS End-to-end service provider for large and complex building CANTONAL HOSPITAL, projects in specialised AARAU segments New construction of Switzerland’s largest hospital. Division Buildings is leading the complex project as total contractor, through integral planning and realisation phas
Slide 54: New Buildings – EUREF Campus, Düsseldorf
NEW BUILDINGS End-to-end service provider for large and complex building EUREF CAMPUS, projects in specialised DÜSSELDORF segments Forum around energy, mobility and sustainability. Implenia commissioned as general contractor to build the second large-scale, highly specialised innovation campus in Ge
Slide 55: New Buildings – Kyoto in Green Village, Geneva
NEW BUILDINGS End-to-end service provider for large and complex building KYOTO IN GREEN VILLAGE, projects in specialised GENEVA segments Office space building, embedded in a park of the newly developed Green Village in the international district. Open space and individual offices, flexible and susta
Slide 56: Modernisation – UBS Paradeplatz, Zurich
MODERNISATION Conversion and reuse of existing buildings at latest standards UBS PARADEPLATZ, ZURICH Implenia full-service provider to renovate UBS Paradeplatz as total contractor. Sustainable renovation of protected UBS building on Paradeplatz. Offices, public and commercial use planned. In close c
Slide 57: Master Builder – Cantonal Hospital, Baden
MASTER BUILDER Execution of technically demanding core and shell construction CANTONAL HOSPITAL, projects BADEN Implenia awarded for the construction of core and shell for the new hospital. The new building with approximately 400 beds extends up to 6 upper floors Constr. period: 2019-2022 Total volu
Slide 58: Master Builder – Data Centre Glattbrugg, Zurich
MASTER BUILDER Execution of technically demanding core and shell construction DATA CENTRE GLATTBRUGG, projects ZURICH Implenia to build core and shell of the customer’s lar- gest and most powerful data centre in Switzerland to date. Highest standards on quality, time, material, cost and safety are t
Slide 59: Operational excellence: BIM leads to higher efficiency
DIVISION BUILDINGS OPERATIONAL EXCELLENCE: BIM LEADS TO HIGHER EFFICIENCY AND BETTER COLLABORATION Achieving a high level of detail within shared digital models of each specialist involved1) By clear & coordinated information from the shared BIM (A), connected to total station (B) and the on-site BI
Slide 60: Innovation: augmented reality at project Alto Pont Rouge, Geneva
DIVISION BUILDINGS INNOVATION: AUGMENTED REALITY AT PROJECT ALTO PONT ROUGE, GENEVA Combining Digital Twin and Augmented Reality to bring relevant data on site… …for better quality checks by overlaying reality with target state and early, as well as easier identification of missing elements or mispl
Slide 61: Profitable growth: end-to-end offering and value chain expansion
DIVISION BUILDINGS PROFITABLE GROWTH: END-TO-END OFFERING, VALUE CHAIN EXPANSION, SPECIALISATION AND INNOVATION Short- to mid-term expectation FY 2021 Substantial CONSULTING EBIT & EBIT & PLANNING 1.9% margin EBIT improve- margin1) ments NEW BUILDINGS Improve Grow existing Develop Selective existing
Slide 62: Key takeaways Division Buildings
Key takeaways Division Buildings ▪ Asserting market-leading position in Switzerland and significant growth in Germany ▪ Specialisation in complex projects with highest customer requirements, such as healthcare or data centres ▪ Value Assurance and Operational Excellence enabling improvement of risk-
Slide 63: Division Real Estate
We create future-oriented real estate solutions that simplify and enrich people’s lives Adrian DIVISION Wyss REAL ESTATE © Implenia 64
Slide 64: Market: generate opportunities in a challenging market environment
DIVISION REAL ESTATE MARKET: GENERATE OPPORTUNITIES IN A CHALLENGING MARKET ENVIRONMENT Market assessment ▪ Switzerland: Sustainable real estate development for portfolios in good and urban locations remains in high demand – especially in residential sector. Challenging market conditions (i.e. infla
Slide 65: Portfolio: focused diversification into 4 service lines
DIVISION REAL ESTATE PORTFOLIO: FOCUSED DIVERSIFICATION INTO 4 SERVICE LINES REAL ESTATE REAL ESTATE REAL ESTATE REAL ESTATE DEVELOPMENT INVESTMENT MANAGEMENT PRODUCTS ▪ Trader Development ▪ Transaction Management ▪ Portfolio Management ▪ In-House Development ▪ Investment Development ▪ Investment an
Slide 66: Portfolio: Implenia real estate development portfolio
DIVISION REAL ESTATE PORTFOLIO: IMPLENIA REAL ESTATE DEVELOPMENT PORTFOLIO Good urban locations at diversified use Portfolio Parameters Portfolio Mix Germany CHF ~410 million Commercial 26% Residential Condominium 33% Use Type3) Market value per 31.12.20211)/2) Residential Rental 41% CHF ~2.3 billio
Slide 67: Portfolio: Ina Invest – a successful real estate partnership
DIVISION REAL ESTATE PORTFOLIO: INA INVEST – A SUCCESSFUL REAL ESTATE PARTNERSHIP Spin-off Ina Invest to drive growth of Implenia Ina Invest Portfolio development portfolio with extended financing options ▪ Spin-off mid-2020: approx. half of Implenia's development portfolio ▪ Listed Ina Invest as ex
Slide 68: Real Estate Development – Rocket & Tigerli, Winterthur
REAL ESTATE ROCKET & TIGERLI LOKSTADT, WINTERTHUR DEVELOPMENT World Record: 100 m tower made of wood, all Implenia Divisions involved Trader, Service and Investment ▪ Digitalisation: Digital architectural Development competition, integrated design with BIM, online apartment configurator with cost op
Slide 69: Real Estate Investment
REAL ESTATE SWITZERLAND: VALUE ORIENTED INVESTMENT INVESTMENT PLATFORM Creation of the country’s most sustainable Transaction real estate portfolio Management, Value Assurance Investment and ▪ Systematic investment selection process Finance Structuring for asset transactions ▪ Risk diversification w
Slide 70: Real Estate Management – Bredella, Pratteln
REAL ESTATE BREDELLA, ASSET MANAGEMENT, MANAGEMENT PRATTELN ▪ Collaboration: Strategic Portfolio and Asset partnership with Ina invest Management, Investor Representative ▪ Integrated Service Delivery: Asset & Portfolio Management Services, Investment Develop- ment, Transaction Management ▪ Sustaina
Slide 71: Real Estate Products
REAL ESTATE A DISRUPTIVE PRODUCTS REAL ESTATE BUSINESS MODEL ▪ Innovation: Intrapreneurial start- In-House Development up, AI-supported design, optimisa- of Real Estate Products, tion with digital product twins, Co-Creation: Product virtual layer for servitisation Development as a Service ▪ Industri
Slide 72: Innovation: decarbonisation and circularity strategy
DIVISION REAL ESTATE INNOVATION: DECARBONISATION AND CIRCULARITY STRATEGY Focus on whole Life Cycle towards Net Zero Manufacture ▪ Systematic reduction of carbon footprints Transport Transport ▪ Heat, cooling and electricity based on renewables ▪ Application of efficiency measures and corresponding
Slide 73: Profitable growth: solution provider with recurring income streams
DIVISION REAL ESTATE PROFITABLE GROWTH: A SOLUTION PROVIDER WITH INCREASING, RECURRING INCOME STREAMS REAL ESTATE Short- to DEVELOP- mid-term MENT expectation FY 2021 Recurring Income CHF >40 mn EBIT p.a.; CHF 42.1 mn share of Lower bound: CHF 40 million EBIT recurring REAL ESTATE income INVESTMENT
Slide 74: Key takeaways Division Real Estate
Key takeaways Division Real Estate ▪ Self-reinforcing business model portfolio ▪ Resilient and sustainable real estate portfolio in our markets ▪ Scalable products with AI-supported design ▪ Growing recurring income streams © Implenia Capital Markets Day | November 2022 75
Slide 75: Break – please be back at 10:50
BREAK PLEASE BE BACK AT 10:50 Capital Markets Day © Implenia 76
Slide 76: Financial Development
FINANCIAL DEVELOPMENT Stefan Baumgärtner CFO © Implenia 77
Slide 77: Building on current financial performance, improvements expected
FINANCIAL DEVELOPMENT BUILDING ON CURRENT FINANCIAL PERFORMANCE, SUSTAINABLE IMPROVEMENTS EXPECTED DURING ‘FIT FOR GROWTH’ PHASE ORDER BOOK REVENUE EBIT EQUITY FINANCING ▪ Record-high order book ▪ Strategic decision of ▪ Improved EBIT margin ▪ Strengthened equity ratio ▪ Continued positive cash of C
Slide 78: Impact of uncertainties and inflation currently mitigated
FINANCIAL DEVELOPMENT IMPACT OF UNCERTAINTIES AND INFLATION IN CHALLENGING MARKET ENVIRONMENT CURRENTLY MITIGATED AND MONITORED CLOSELY Challenging macro environment including uncertainties and inflation need close mitigation ▪ Strategically positioned project portfolio in urban areas For the constr
Slide 79: Balanced order book and diversified customer split
FINANCIAL DEVELOPMENT – ORDER BOOK BALANCED COMPOSITION OF THE ORDER BOOK AND DIVERSIFIED CUSTOMER SPLIT STRENGTHEN RESILIENCE Order book CHF bn 7.1 ▪ Divisional distribution with Division Buildings slightly below 50% and Civil Engineering 6.9 6.4 orders slightly above 50%; Specialties stable at 2%;
Slide 80: Order book outlook: strategic positioning and tendering
FINANCIAL DEVELOPMENT – ORDER BOOK ORDER BOOK OUTLOOK: STRATEGIC POSITIONING AND TENDERING FOR LEADING MARKET POSITION & INCREASED MARGIN VISIBILITY Strategic positioning Order book by Value Assurance risk class2) split in % ▪ Structurally improved order book is well diversified, VA Class I more tha
Slide 81: Progress on project review and approval of reflected claims
FINANCIAL DEVELOPMENT – ORDER BOOK SIGNIFICANT PROGRESS MADE REGARDING PROJECT REVIEW AND APPROVAL OF REFLECTED CLAIMS Value Assurance: Quarterly in-depth review process of all major projects Achievements Result Delivery Assessment (RDA) RDA process led to significant reduction ▪ Process proven succ
Slide 82: Revenue development of the Group
FINANCIAL DEVELOPMENT – REVENUE REVENUE DEVELOPMENT OF THE GROUP REFLECTS EXECUTION OF STRATEGY IN THE PAST YEARS Revenues ▪ Strategic decision of selective project tendering CHF mn and FX impact, leading to an expected revenue decline until FY 2022 4,431 ▪ Integrated model proving effective: increa
Slide 83: EBIT sustainably improved by strong performance of divisions
FINANCIAL DEVELOPMENT – EBIT EBIT SUSTAINABLY IMPROVED BY STRONG PERFORMANCE OF DIVISIONS EBIT EBIT margin ~3.5% EBIT margin >4.5% ▪ Future group EBIT driven by improved performance CHF mn, margin in % of large Divisions – short- to mid-term EBIT margin 2022 includes above- target: ~3.5% p.a. averag
Slide 84: Substantially strengthened equity in HY1.2022
FINANCIAL DEVELOPMENT – EQUITY SUBSTANTIALLY STRENGTHENED EQUITY IN HY1.2022 – FURTHER FUTURE INCREASE DUE TO IMPROVED NET PROFIT Change in equity in HY1.2022 (shortened) Planned future equity development CHF mn, equity ratio in % 105.6 451.5 345.9 25% >20% 12.3%1) 16.0% Equity Change in equity Equi
Slide 85: NWC as key variable in free cash flow structurally improved
FINANCIAL DEVELOPMENT – FINANCING NWC AS KEY VARIABLE IN FREE CASH FLOW STRUCTURALLY IMPROVED FOR SUSTAINABLE IMPACT 5 structural levers for Achievements sustainable improvements Contract standards ▪ Sensitivity and importance of net working capital fostered across all levels and included in target
Slide 86: Significant positive development of operating cash flow
FINANCIAL DEVELOPMENT – FINANCING SIGNIFICANT POSITIVE DEVELOPMENT OF OPERATING CASH FLOW, FURTHER FUTURE IMPROVEMENTS EXPECTED Operating cash flow ▪ Significant increase in operating cash flow CHF mn in HY1.2022 – in line with stronger profitability, improved cash conversion cycle and optimisation
Slide 87: Well financed with a balanced maturity profile
FINANCIAL DEVELOPMENT – FINANCING IMPLENIA IS WELL FINANCED TO SUPPORT ITS OPERATIONAL TARGETS WITH A BALANCED MATURITY PROFILE Maturity profile of financing instruments CHF mn ▪ Existing financing instruments with well-balanced maturity profile 175 ▪ Uncommitted bilateral guarantee & surety lines 1
Slide 88: Divisional short- to mid-term expectations
FINANCIAL OUTLOOK DIVISIONAL SHORT- TO MID-TERM EXPECTATIONS Civil Engineering Specialties Buildings Real Estate REVENUE Moderate organic Promising organic Moderate organic Revenue growth from revenue growth growth potential revenue growth service business; contribution from Real Estate development
Slide 89: Group financial targets
FINANCIAL OUTLOOK GROUP FINANCIAL TARGETS SHORT- TO MID-TERM TARGET MID- TO LONG-TERM TARGET Stabilising to increasing revenue Further increasing revenue REVENUE (mainly organic growth) (organic/inorganic growth) EBIT MARGIN ~3.5% >4.5% EQUITY RATIO >20% (expected by 2023) 25% (mid-term) Implenia in
Slide 90: Closing remarks 'Fit for Growth'
CLOSING REMARKS CAPITAL MARKETS DAY ‘FIT FOR GROWTH’ André Wyss CEO © Implenia 91
Slide 91: Implenia is targeting sustainable and profitable growth
CLOSING REMARKS IMPLENIA IS TARGETING SUSTAINABLE AND PROFITABLE GROWTH Mid- to Short- to mid-term EBIT margin target ~3.5% long-term EBIT margin target EBIT Selective >4.5% Develop new acquisitions PORTFOLIO CHF mn, margin in % Improve Grow existing businesses existing business business >130 PROFIT
Slide 92: Key takeaways Implenia 'Fit for Growth'
Key takeaways Implenia ‘Fit for Growth’ ▪ Strong position after comprehensive transformation, key processes ensure better risk profile ▪ Megatrends and high demand for integrated real estate and construction services offer attractive opportunities ▪ Market-leading, focused competencies for our custo
Slide 93: Implenia is excellently positioned
IMPLENIA IS EXCELLENTLY POSITIONED AND HAS GREAT POTENTIAL FOR SUSTAINABLE AND PROFITABLE GROWTH © Implenia 94
Slide 94: Questions and Answers
QUESTIONS AND ANSWERS 95
Slide 95: Dates and contacts
DATES AND CONTACTS Dates 2022 Full-year Report 1 March 2023 2023 AGM 28 March 2023 Contacts Investors Franziska Stein, Head Investor Relations ir@implenia.com +41 58 474 35 04 Media Silvan Merki, CCO communication@implenia.com +41 58 474 74 77 © Implenia Capital Markets Day | November 2022 96
Slide 96: Topic corners during lunch
TOPIC CORNERS DURING LUNCH UNTIL 13:30, OUR EXPERTS WELCOME YOU IN THE FOLLOWING TOPIC CORNERS OPERATIONAL EXCELLENCE INNOVATION SUSTAINABILITY, ESG VALUE ASSURANCE BIM, LEAN, DIGITALISATION Anita Eckardt Adrian Wyss Christian Späth German Grüniger Head Division Specialties Head Division Real Estate
Slide 97: Thank you!
THANK YOU! Capital Markets Day © Implenia 98
Slide 98: Appendix
APPENDIX © Implenia 99
Slide 99: Implenia's 4 strategic priorities enable mid- to long-term growth
TALENT & PROFITABLE ORGANI- STRATEGY UPDATE PORTFOLIO GROWTH INNOVATION SATION IMPLENIA’S 4 STRATEGIC PRIORITIES ENABLE MID- TO LONG-TERM GROWTH ‘Fit for Growth’ ‘New Horizon’ Improve existing business Grow existing business Develop new businesses Selective acquisitions Market development Specialisa
Slide 100: Four divisions with market-leading competencies for our clients
TALENT & PROFITABLE ORGANI- STRATEGY UPDATE PORTFOLIO GROWTH INNOVATION SATION FOUR DIVISIONS WITH MARKET-LEADING COMPETENCIES FOR OUR CLIENTS REAL ESTATE BUILDINGS CIVIL ENGINEERING SPECIALTIES Value-oriented Real Estate partner End-to-end construction Expert for complex Civil Special competencies
Slide 101: Integrated offering in Switzerland & Germany, tunnelling in further markets
TALENT & PROFITABLE ORGANI- STRATEGY UPDATE PORTFOLIO GROWTH INNOVATION SATION INTEGRATED OFFERING IN SWITZERLAND & GERMANY, TUNNELLING AND RELATED INFRASTRUCTURE IN FURTHER MARKETS Rightsizing Group Real Estate Buildings Civil Engineering Specialties Rev. Split Top competitors Tunnelling Civil Spec
Slide 102: 'Operational excellence' to improve existing businesses
TALENT & PROFITABLE ORGANI- STRATEGY UPDATE PORTFOLIO GROWTH INNOVATION SATION ‘OPERATIONAL EXCELLENCE’ TO IMPROVE EXISTING BUSINESSES ▪ Continuous investment in our digital construction skills incl. BIM, artificial DIGITALISATION intelligence, Internet of Things, digital inventories, virtual realit
Slide 103: Fields of innovation and global industry shifts
TALENT & PROFITABLE ORGANI- STRATEGY UPDATE PORTFOLIO GROWTH INNOVATION SATION FIELDS OF INNOVATION AND GLOBAL INDUSTRY SHIFTS Industrialisation Digitalisation & BIM Sustainability Rising importance of factory-based Increasing need of systems and solutions, Focus on environmentally and production mo