Slide 1: Capital Market Day @ Implenia
Capital Market Day @ Implenia On Track to a Successful Implementation of the Strategy Winterthur, 1st October 2019
Slide 2: Welcome to our first Capital Market Day
Capital Market Day 2019 Welcome to our first Capital Market Day START END TOPIC SPEAKER 10:00 10:10 Welcome André Wyss, Hans-Ulrich Meister 10:10 10:40 Business & Strategy Update André Wyss 10:40 10:55 Finance Update Marco Dirren 10:55 11:25 Development Adrian Wyss 11:25 11:45 Presentation Project L
Slide 3: Business and Strategy Update
Capital Market Day 2019 Business and Strategy Update © Implenia | Capital Market Day @ Implenia | October 2019 | Page 3
Slide 4: Click to watch a video of some recent projects
click to watch a video of some recent projects © Implenia | Capital Market Day @ Implenia | October 2019 | Page 4
Slide 5: Highlights and key developments during the first half year 2019
Business Update Highlights and key developments during the first half year 2019 Implenia achieved EBITDA of CHF 72.9 million in the first half of 2019 Implenia confirms earnings expectations for transitional year 2019, as well as medium-term target margin for EBITDA All divisions contributed to posi
Slide 6: Implenia Group – result confirms our expectations
Business Update Implenia Group – result confirms our expectations 6,369 (+2.2%) 2,184 (+2.8%) 72.9 (n.a.) ▪ Better quality in Order Book thanks Order Book Revenue EBITDA to more selective order acquisition CHF million CHF million CHF million ▪ Revenue growth attributable to 6,234 6,369 international
Slide 7: Vision and Mission
Strategy Update We strive to be a multinational leader in construction services Vision Mission Be a multinational leader Sustainably develop properties and construct buildings in construction services as well as infrastructure with and for people to fit their modern living, working and mobility need
Slide 8: Four strategic priorities and achievements
Strategy Update We defined four strategic priorities to guide us in achieving this vision and made significant achievements across all of them Profitable Talent and Portfolio Innovation growth organization Strong differentiated Increased market share Fast scaling of proven Right people and skills bu
Slide 9: Four Divisions with full P&L responsibility
Portfolio Strategy Update In Q1 we created four Divisions with full P&L responsibility to maximize value creation and drive implementation of the strategy Development Buildings Civil Engineering Specialties Integrated project End-to-end construction Specialised civil Differentiated developer service
Slide 10: All Divisions contribute to our integrated business model
Portfolio Strategy Update All Divisions contribute to and profit from our integrated business model Synergies and benefits Development Buildings Civil Engineering Specialties Explanation/Remarks Development projects as additional Incremental volume acquisition channel for other units Local units dis
Slide 11: Organic and inorganic portfolio optimization options
Portfolio Strategy Update We have further detailed our organic and inorganic portfolio optimization options across geographies and the value chain Key initiatives (non exhaustive) Progress ▪ Novel real estate products and ▪ Investment vehicle will be launched shortly (first details today) Developmen
Slide 12: Division Development aims to become a Real Estate leader
Portfolio Strategy Update Division Development aims to become a Real Estate leader Additional details in Finance and Division Development update Since 2018, we developed a model to sustainably grow the value from our real estate activities ▪ We aim to transform our Development Division into a Real E
Slide 13: Transform Development into a Real Estate leader by expanding the value chain
Portfolio Strategy Update We aim to transform our Development Division into a Real Estate leader in selected markets by further expanding the existing value chain Marketing & Sales Project Initiation Project Conception Project Concretization Project Realization Use Development today: Development tom
Slide 14: Operational Excellence Program for future growth well advanced
Profitable growth Strategy Update Operational Excellence Program for future growth well advanced Details to be provided in Operational Excellence deep-dive and at market booths Value Assurance Procurement Excellence New holistic framework (governance, standards, Transformative program to foster deep
Slide 15: Innovation Hub launched to drive bottom-up innovation
Innovation Strategy Update Innovation Hub launched to drive bottom-up innovation across Implenia Focus on five Innovation Fields based on latest trends Operating model defined and supported by digital platform Gate Gate Gate New Services 1 2 3 Ideation Validation Piloting Implementation New Products
Slide 16: Our operating model yields tangible benefits for the Group
Talent and organization Strategy Update Our operating model yields tangible benefits for the Group… Consistency and • Clear roles & responsibilities enable strategy implementation and reduce unclarities & duplications transparency • Divisional structure ensures multi-eye principle and best practice
Slide 17: Anchored in our organizational structure
Talent and organization Strategy Update … and is anchored in our organizational structure Member of Implenia Executive Committee CEO André Wyss Head Division Head Division Head Division Head Specialties Head Project Excellence & Services Development Buildings Civil Engineering Marc Brülhart Adrian W
Slide 18: Finance Update
Capital Market Day 2019 Finance Update © Implenia | Capital Market Day @ Implenia | October 2019 | Page 18
Slide 19: IFRS 16 Impact on Implenia as at 30.06.2019
Finance Update Overview of new IFRS 16 standard IFRS 16 Impact on Implenia as at 30.06.2019 Balance sheet ▪ Total assets ▪ Total assets + CHF 131.0 million ▪ Equity ratio ▪ Equity ratio -0.9% ▪ Net-cash-position Income statement ▪ EBITDA ▪ EBITDA + CHF 31.5 million ▪ EBIT ▪ EBT – Cash flow statement
Slide 20: Segment reporting increases transparency
Finance Update Segment reporting increases transparency and enforces divisional performance management Operating income (excl. PPA) to EBITDA, CHF million 2019 Op. inc. Deprec. EBITDA Deprec. EBITDA HY (excl. PPA) (excl. IFRS 16) IFRS 16 (reported) Development 27.0 0.1 27.1 0.3 27.4 Buildings 15.9 0
Slide 21: Result in line with our expectations
Finance Update Result in line with our expectations Income statement (shortened), CHF million ▪ EBITDA1 deviation of CHF 14.6 million: − Two-thirds due to lack of contribution 72.9 margin in Norway and Poland as communicated at end-2018 − One-third due to costs of strategy -61.5 implementation ▪ Com
Slide 22: Implenia's balance sheet is solid
Finance Update Implenia’s balance sheet is solid Assets (shortened), CHF million ▪ Continuing high level of cash and cash equivalents 30.06.2019 30.06.2018 ▪ Real estate portfolio valued at Cash & cash equivalents, derivatives 706.0 823.3 acquisition cost; market value much Real estate transactions
Slide 23: Determined to maintain investment grade rating
Finance Update Implenia is determined to maintain its investment grade rating Equity and Liabilities (shortened), CHF million ▪ Lower accounts payable because of prompter payments to creditors 30.06.2019 30.06.2018 ▪ Increase in financial liabilities due to Accounts payable 411.0 475.1 IFRS 16; no o
Slide 24: Free cash flow influenced by reporting date effects
Finance Update Free cash flow influenced by various reporting date effects Free cash flow, CHF million ▪ Reporting date-related change in net current assets 72.9 ▪ Generally successful incoming payments – delays caused by late payments by a few customers 182.3 ▪ More timely payments to creditors 7.3
Slide 25: Fully committed to delivering against our ambitious goals
Finance Update We are fully committed to delivering against our ambitious goals 2019 Medium-term Over CHF 150 million before cost of strategy implementation Confirmation of target margin EBITDA1 from 5.25% to 5.75% Expected strategy implementation costs of around CHF 20 million Grow profitably and i
Slide 26: Expanding our value chain to transform Development
Finance Update Expanding our value chain enables us to transform our Development Division into a Real Estate leader and accelerate the development of the real estate portfolio Marketing & Sales ▪ Accelerate the development of the real estate portfolio Project Project Project Project Use Initiation C
Slide 27: Step-wise approach using light balance-sheet concept
Finance Update Step-wise approach using an innovative and light balance-sheet concept to sustainably grow company value Concept Implenia’s integrated end-to-end service offering continues to be a key enabler for long-term success Implenia Investor(s) Implenia continues to ▪ Increase of capital turno
Slide 28: Division Development
Capital Market Day 2019 Division Development © Implenia | Capital Market Day @ Implenia | October 2019 | Page 28
Slide 29: Integrated project development and innovative business models
Division Development Integrated project development and innovative business models ▪ Top Real Estate Division with strong track record ▪ Attractive Real Estate Portfolio ▪ Integrated business model as an optimal platform for sustainable and profitable growth ▪ Internationalization in Germany based o
Slide 30: Strong track record in Real Estate Development
Division Development Strong track rack record in innovative, integrated Real Estate Development Sue&Til ZHAW Library Metropolitans Ensemble Quadro Schorenstadt Global Fund Winterthur Winterthur Zurich Zurich Basel Geneva Project 310 apartments Reconstruction in 212 apartments 75.000 m2 of urban 65 a
Slide 31: Project portfolio in Zurich and Geneva areas
Division Development Project portfolio, mainly in the Metropolitan Areas of Zurich and Geneva Branch office Living – Condomnium ownership Winterthur Zurich St. Gallen Living – Investment objects Basel Services/Commercial Zurich Area Metropolitan Area Baar Bern Chur Geneva Metropolitan Lausanne-Criss
Slide 32: Selected projects in development
Division Development Project portfolio – Selected projects in development Lokstadt (area), Unterfeld, KIM, Winterthur BaseLink, World Council of Tivoli, Winterthur Baar Allschwil Churches, Geneva Neuchatel Development Construction 50% sold, leasing two operators Sales Commercialisation 30% sold not
Slide 33: Integrated business model as platform for growth
Division Development Integrated business model as an optimal platform for sustainable & profitable growth Marketing & Sales ▪ Integrated model allows us to seize new market opportunities by using Project Project Project Project group-wide market presence Use Initiation Conception Concretization Real
Slide 34: Development team in Germany has started
Division Development Development team in Germany has started – first success to be celebrated Established development team in Frankfurt ▪ on profound knowledge in real estate development ▪ with intensive, cross-divisional cooperation, e.g. Buildings ▪ with a local network in the market We aim to be
Slide 35: Creation of a new real estate investment vehicle
Division Development Creation of a new real estate investment vehicle ▪ Creation of separate legal entity (initially 100% subsidiary of Implenia) ▪ Initial transfer of ~6 development projects Investment (~25% of Implenia’s current real estate portfolio with an estimated ✓ Sustainable business model
Slide 36: Win-win opportunity for Implenia and new investors
Division Development Win-win opportunity for Implenia and new investor(s) … and will generate key benefits for Implenia and its stakeholders 1 Value creation for shareholders by “crystallizing” the real estate portfolio’s value 2 Leverage integrated operating model as a key enabler for long term suc
Slide 37: Lokstadt
Lokstadt An Implenia signature project… … and a perfect example of our integrated approach
Slide 38: In the heart of Winterthur
In the heart of Winterthur Across from the old town a new part of the city is emerging for living, working and leisure. © Implenia | Capital Market Day @ Implenia | October 2019 | Page 38
Slide 39: History
History © Implenia | Capital Market Day @ Implenia | October 2019 | Page 39
Slide 40: A historically important industrial heritage
A historically important industrial heritage Schweizerische Lokomotiv- und Maschinenfabrik (SLM) © Implenia | Capital Market Day @ Implenia | October 2019 | Page 40
Slide 41: Transformation of the surroundings: industrial area
Transformation of the surroundings – over the last 30 years from an industrial production area… © Implenia | Capital Market Day @ Implenia | October 2019 | Page 41
Slide 42: Transformation of the surroundings: education and culture district
Transformation of the surroundings – over the last 30 years … to an education-, culture- and service-oriented district © Implenia | Capital Market Day @ Implenia | October 2019 | Page 42
Slide 43: Vision
Vision © Implenia | Capital Market Day @ Implenia | October 2019 | Page 43
Slide 44: Vision
Vision Lokstadt will be a destination setting new standards for substainable urban developments in Switzerland – diverse and vibrant with a strong identity. © Implenia | Capital Market Day @ Implenia | October 2019 | Page 44
Slide 45: An urban district with a strong identity
An urban district with a strong identity Positioned on three strong pillars Urban living Industrial heritage Sustainable lifestyle Modern, diverse, urban Authenticity, fusion of traditional Social diversity, energy architecture and density as and modern elements, attractive efficiency, efficient use
Slide 46: Building names referencing iconic railway locomotives
An urban district with a comprehensive history Building names with reference to iconic railway locomotives Rocket Tigerli Elefant Technopark Rapide Bigboy Habersack Krokodil Drehscheibe Draisine Tender Stadthäuser Roter Pfeil Lokhaus © Implenia | Capital Market©Day Implenia @ Implenia | Lokstadt | O
Slide 47: Masterplan
Masterplan © Implenia | Capital Market Day @ Implenia | October 2019 | Page 47
Slide 48: Masterplan facts and figures
Masterplan Facts and figures • 123,000 sqm gross floor area with a diverse mix of uses • 21,000 sqm public open spaces • 3 high rise buildings with 35, 50 and 100 m in height • Protected industrial halls • First «2000-Watt-Areal» in Winterthur • 30% of residential areas non-profit • Mobility concept
Slide 49: Concept overview
Concept Overview Residential Offices and services Technopark Start-up Hub Lifestyle Hotel Drehscheibe Office building Townhouses Restaurant, market & events Co-working and child care Roter Pfeil Lokhaus Office building © Implenia | Capital Market©Day Implenia @ Implenia | Lokstadt | October Winterth
Slide 50: Krokodil (sold 2017/2018)
Krokodil (sold 2017/2018) The first chapter of the Lokstadt story KROKODIL Use Apt. One of Switzerland’s largest wooden Residential Adimora 69 buildings with diversity all over Residential Gesewo 72 Residential gaiwo 51 Residential STWE 56 Retail 1,700 sqm Timeline Investor transactions 2017 Apartme
Slide 51: Krokodil outlook over the Lokstadt
Krokodil Outlook over the Lokstadt • Sustainable wood construction with 248 • Sustainable wood construction with 248 apartments. apartments. • 2,500 interested buyers for • 2,500 interested buyers for 56 apartments: sold in 11 days 56 apartments • Successful partnership with 3 investors • Successful
Slide 52: Krokodil Dialogplatz
Krokodil Dialogplatz with the building Krokodil © Implenia | Capital Market Day @ Implenia | October 2019 | Page 52
Slide 53: Krokodil Gardenloft apartments
Krokodil Gardenloft apartments with courtyard access © Implenia | Capital Market©Day Implenia @ Implenia | Lokstadt | October Winterthur 2019 | Page Seite 53
Slide 54: Wood as sustainable construction material
Krokodil Wood as sustainable construction material • One of the largest wooden buildings in Switzerland • 8’000 m³ of wood • 11,000 t of stored CO2 © Implenia | Capital Market©Day Implenia | Lokstadt @ Implenia Winterthur | October 2019 || Page Seite 54 54
Slide 55: Innovative and integrated design
Krokodil Innovative and integrated design • All design in the Lokstadt is developed with BIM • Increasing automation in the production process © Implenia | Capital Market©Day Implenia @ Implenia | Lokstadt | October Winterthur 2019 | Page Seite 55
Slide 56: Bigboy (sold 2018) and Tender
Bigboy (sold 2018) and Tender A new home in a high-riser BIGBOY Use Apt. The first high-riser in the Lokstadt Residential Bigboy 135 designed by star architects EM2N Residential Tender 30 Residential STWE 55 Retail 2,400 sqm Timeline Transaction Bigboy 2018 Transaction Tender 2020 Construction start
Slide 57: Bigboy and Tender: a new home in a high-riser
Bigboy Bigboy andandTender Tender A new A new homehomeininaahigh-riser high-riser • Bigboy: High-riser 50 meters • Tender: 35 m high-riser and connecting building • 33 storeys • 220 apartments • 2,400 sqm retail in ground floor © Implenia | Capital Market©Day Implenia @ Implenia | Lokstadt | October
Slide 58: Retail in an exceptional setting
Bigboy and Tender Retail in an exceptional setting © Implenia | Capital Market©Day Implenia @ Implenia | Lokstadt | October Winterthur 2019 | Page Seite 58
Slide 59: Elefant: modern office spaces
Elefant Modern office spaces in the Lokstadt ELEFANT An innovative office building Use Usable area constructed in wood Office SWICA 5,200 sqm Office leasable 7,600 sqm Total 12,800 sqm Timeline Sales process 2020 Construction start 2020 Hand-over 2023 © Implenia | Capital Market Day @ Implenia | Oct
Slide 60: Elefant modern office spaces
Elefant Elefant Modern Modern officespaces office spaces ininthe theLokstadt Lokstadt • Wood construction • Minergie certified • 6 storeys • Maximum flexibility – separable spaces • 2 roof terraces • Large shared courtyard © Implenia | Capital Market©Day Implenia @ Implenia | Lokstadt | October Wint
Slide 61: Anchor tenant signed for Elefant
Success story 2. phase: Elefant Anchor tenant signed for spectacular office project • The innovative office building Elefant amazes with 13,000 m² in a wood construction. • Anchor tenant SWICA signed for 40% of the floor space. • Availabilty of unique office landscape for unique companies © Implenia
Slide 62: Town houses
Town houses Individual house ownership in the city center TOWN HOUSES A niche product for private Use 11 houses resid./comm. investors in two phases 6 houses resid./comm. Timeline Phase 1: Sales process 2019 Construction start 2019 Hand-over 2021 Phase 2: Sales process 2020 Phase 1 Construction star
Slide 63: Town houses: preserved existing facade
Town houses Preserved existing facade represents heritage character © Implenia | Capital Market Day @ Implenia | October 2019 | Page 63
Slide 64: Town houses: light flooded duplex apartments
Town houses Light flooded duplex apartments © Implenia | Capital Market Day @ Implenia | October 2019 | Page 64
Slide 65: Town houses: roof terraces
Town houses Roof terraces with view over the city © Implenia | Capital Market Day @ Implenia | October 2019 | Page 65
Slide 66: Lokstadt Halls
Lokstadt Halls The vibrant heart of the Lokstadt HALL RAPIDE A lifestyle hotel in an impressing protected industrial hall Use Usable areas Rapide: Hotel 6,200 sqm Habersack: Markethall, restaurant 1,800 sqm Draisine: Co-working, Manufact. 1,400 sqm Total 9,400 sqm Timeline Architect competition 2019
Slide 67: Lokstadt Halls: Rapide, Habersack, Draisine
Lokstadt Halls The vibrant heart of the Lokstadt Hall Rapide Hall Habersack Hall Draisine • Lifestyle hotel • Upscale restaurant • Co-working • Mid-market segment • Market hall • Café • Hall experience is kept • Event location • Child care © Implenia | Capital Market©Day Implenia @ Implenia | Loksta
Slide 68: Lokstadt Halls
Lokstadt Halls The vibrant heart of the Lokstadt © Implenia | Capital Market©Day Implenia @ Implenia | Lokstadt | October Winterthur 2019 | Page Seite 68
Slide 69: Rocket and Tigerli
Rocket Rocket andandTigerli Tigerli The new The new landmark tower landmark buildingin in Winterthur Winterthur TIGERLI ROCKET Use Apt./areas Hotel, student living and 100 m high tower vertically split Rocket Tower private own. 90 apt. residential uses into privately owned and Rocket Tower leasable
Slide 70: Public spaces
Public spaces © Implenia | Capital Market Day @ Implenia | October 2019 | Page 70
Slide 71: Public spaces: Central plaza Dialogplatz
Public spaces Central plaza Dialogplatz © Implenia | Capital Market Day @ Implenia | October 2019 | Page 71
Slide 72: Public spaces: Tender und Draisine
Public spaces Tender und Draisine – there is always more to discover © Implenia | Capital Market Day @ Implenia | October 2019 | Page 72
Slide 73: Sustainability
Sustainability © Implenia | Capital Market Day @ Implenia | October 2019 | Page 73
Slide 74: A new city district with sustainable DNA
A new city district with sustainable DNA Ecology, society and economy Ecology Society Energy supply with PV and KVA Economy Ceritification as 2000-Watt-Areal Preservation of Mobility protected industrial concept heritage Minergie 30 % non-profit Certifications residential spaces Resource preserving
Slide 75: The Lokstadt Team
The Lokstadt Team © Implenia | Capital Market©Day Implenia @ Implenia | Lokstadt | October Winterthur 2019 | Page Seite 75
Slide 76: Operational Excellence
Capital Market Day 2019 Operational Excellence © Implenia | Capital Market Day @ Implenia | October 2019 | Page 76
Slide 77: Operational Excellence program to increase margins and market share
Profitable growth Operational Excellence Profitable growth: we have launched an Operational Excellence program to increase margins and market share Operational Excellence program – key elements Processes and Value Assurance Procurement Lean Construction systems End-to-end Value Global sourcing, with
Slide 78: Value Assurance: holistic framework being implemented
Profitable growth Operational Excellence Value Assurance: Holistic framework to improve performance being implemented up until 2018 2019 from 2020 ▪ No holistic Group-wide Risk ▪ 4 project classes based on risk ▪ Project classes based on risk Management framework factors, with committees for factors
Slide 79: Value Assurance: three milestones
Profitable growth Operational Excellence Value Assurance: Three milestones for a substantial increase in project value capture and a margin leakage reduction Market evaluation Tender Execution Project Selection Tender Approval Project Reviews Prioritize and focus bid Review and adjust offers` risks
Slide 80: Projects classified by risk potential and approved by committees
Profitable growth Operational Excellence Value Assurance: Projects are classified according to risk potential and approved by corresponding committees Risk factors Project class Decision level Committee Financial Deciding I Group Contract • Operational Head • Financial Head Environment II Division •
Slide 81: Operational Excellence program key elements
Profitable growth Operational Excellence Profitable growth: we have launched an Operational Excellence program to increase margins and market share Operational Excellence program – key elements Processes and Value Assurance Procurement Lean Construction systems End-to-end Value Global sourcing, with
Slide 82: Procurement: transformative program
Profitable growth Operational Excellence Procurement: Transformative program to foster deeper partnerships and generate mid- and long term savings up until 2018 2019 from 2020 ▪ Regional orientation of ▪ Short term savings: Hosting ▪ Consolidate supplier base Supply procurement activities supplier s
Slide 83: Procurement: mid- to long-term measures begun
Profitable growth Operational Excellence Procurement: Implementation of mid- to long-term measures has already begun – full potential to be reached by 2021 Short-term: Deepened partnerships with key suppliers Mid- / long-term: Category strategies Multiple summits and 1-on-1 negotiations with key sup
Slide 84: Operational Excellence program key elements
Profitable growth Operational Excellence Profitable growth: we have launched an Operational Excellence program to increase margins and market share Operational Excellence program – key elements Processes and Value Assurance Procurement Lean Construction systems End-to-end Value Global sourcing, with
Slide 85: Construction industry lagging behind in digitalization and productivity
Profitable growth Operational Excellence Construction industry is lagging behind with low digitalization and low productivity growth Development of labor productivity in Switzerland Digitization and productivity by industry globally Industrial goods manufacturing Mean average of Swiss industry Const
Slide 86: Lean Construction toolbox being rolled out
Profitable growth Operational Excellence Lean Construction: Toolbox being rolled out to standardize use of Lean methods & tools to increase productivity up until 2018 2019 from 2020 ▪ No group-wide Lean ▪ Standardization of methods & ▪ Multiplication and increasing Construction approach tools number
Slide 87: Lean Construction roll-out based on five key elements
Profitable growth Operational Excellence Lean Construction: Our Lean Construction roll-out is based on five key elements Lean matrix organization, Lean Academy to enable adoption embedded in local business 5 1 of Lean in our projects Standardization of Lean way of Performance measurement and 2 Lean
Slide 88: Operational Excellence program key elements
Profitable growth Operational Excellence Profitable growth: we have launched an Operational Excellence program to increase margins and market share Operational Excellence program – key elements Processes and Value Assurance Procurement Lean Construction systems End-to-end Value Global sourcing, with
Slide 89: BIM use cases and expertise
Profitable growth Operational Excellence BIM: A portfolio of BIM use cases is defined but strengthening of expertise and comprehensive application still needed up until 2018 2019 from 2020 ▪ BIM capability built up, with ▪ Set of use cases enlarged ▪ Roll-out of use cases across development of first
Slide 90: BIM as key element for future industrial production
Profitable growth Operational Excellence BIM as a key element to drive future industrial production Fundamental principles Digital planning Digital control Digital product ▪ Basis to gain competitive advantage ▪ End-to-end integration in projects ▪ Enabled project teams ▪ Standardized use cases to d
Slide 91: INSPIRE: Integrated New Solutions for Processes
Profitable growth Operational Excellence INSPIRE: Integrated New Solutions for Processes at Implenia Reaching Excellence up until 2018 2019 from 2020 ▪ Fragmented processes and ▪ Enterprise-wide mapping of ▪ Blueprint implementation systems (e.g., due to core and support processes piloted in Switzer
Slide 92: INSPIRE aligns processes, platforms and organization
Profitable growth Operational Excellence INSPIRE aligns processes, platforms and the organization and enables the core strategic priorities profitable growth and innovation © Implenia | Capital Market Day @ Implenia | October 2019 | Page 92
Slide 93: INSPIRE as enabler of strategy implementation
Profitable growth Operational Excellence INSPIRE as an enabler of our strategy implementation and our integrated operating model INSPIRE is not just a strategy add-on… … but an integral enabler of our strategy INSPIRE is not an IT project… … but a business project INSPIRE is not a project that is ru
Slide 94: OpEx program is key to improve productivity
Our OpEx program is key to improve productivity Our OpEx program is the basis for further industrial construction © Implenia | Capital Market Day @ Implenia | October 2019 | Page 94
Slide 95: Division Buildings
Capital Market Day 2019 Division Buildings © Implenia | Capital Market Day @ Implenia | October 2019 | Page 95
Slide 96: Buildings at a glance
Division Buildings Buildings at a glance CHF >1.8 billion Turnover CHF >450 million Turnover CHF >100 million Turnover Employees ~1.500 Employees ~750 Employees ~160 16 14 2 Branches Branches Branches © Implenia | Capital Market Day @ Implenia | October 2019 | Page 96
Slide 97: Value Assurance in Buildings
Division Buildings Value Assurance What’s new? Benefits Example ▪ Risk classification based on ▪ Complex projects now in the right ▪ Total contractor tender for a school financial and technical aspects decision-making committees building with a volume of approx. (e.g. geotechnical risks or CHF 35-40
Slide 98: Operating Model
Division Buildings Operating Model Synergies Speed CEC Implenia Project Management ▪ Every division operates as The Country Executive a stand-alone business Committee allows consistent Acquisition Planning Execution and is backed by technical information exchange 1 2 2 3 specialists out of its best-
Slide 99: Market Update
Division Buildings Market Update ▪ Overall sound markets with ▪ Strong market growth ▪ Many major projects (EUR >50 strong growth in Geneva & million) on the market in Vienna Zurich ▪ High demand for small and medium-sized projects ▪ Residential construction will ▪ Decreasing number of turnkey proje
Slide 100: Project Highlights
Division Buildings Project Highlights Acquired / in execution Calculation / in scope Projekt PI, Zug Quartier de l'Etang, Vernier KIM, Winterthur HSG Learning Center, SG Forschungscampus EMPA Letziturm «TATI», Zürich CHF ~ 90 million CHF ~ 270 million CHF ~ 140 million CHF ~ 50 million CHF ~ 50 mill
Slide 101: Division Civil Engineering
Capital Market Day 2019 Division Civil Engineering © Implenia | Capital Market Day @ Implenia | October 2019 | Page 101
Slide 102: Civil Engineering at a glance
Division Civil Engineering At a glance Our services Our markets Active in all Implenia markets and opportunistic worldwide Strong and locally networked - Tunnelling Special Civil Europe-wide Foundations 4‘840 Employees (TCP 1‘771, IP 3‘069) Expert for complex civil engineering projects Production ou
Slide 103: Our portfolio and services
Division Civil Engineering Our portfolio and services … Tunnelling Full cut drilling Blasting Dredging Raise drilling Logistics … Total Pile foundations Trenchless Bracings Subsoil Special Foundations construction pits improvements … Civil Construction Refurbishment / Infrastructure Water / Sewage P
Slide 104: Our portfolio and services in all home markets
Division Civil Engineering Our portfolio and services In all our … home markets! Tunnelling Full cut drilling Blasting Dredging Raise drilling Logistics … Total Pile foundations Trenchless Bracings Subsoil Special Foundations construction pits improvements … Civil Construction Refurbishment / Infras
Slide 105: New Operating Model in place
Division Civil Engineering New Operating Model in place – From country to divisional organization ICE CVL TUN SF © Implenia | Capital Market Day @ Implenia | October 2019 | Page 105
Slide 106: New Operating Model – our experiences
Division Civil Engineering New Operating Model in place – Our experiences Structure Responsibility Exchange ▪ Clear structure via ▪ Clear definition of ▪ More efficient exchange of divisional organization competences and P&L knowledge within Division responsibilities (vertical & horizontal) ▪ Aligne
Slide 107: From Risk Management to Value Assurance
Division Civil Engineering Value Assurance – From Risk Management to Value Assurance Governance Standards Organization ▪ Efficient decision-making ▪ Defined groupwide standardized ▪ Clear responsibilities and through clear process and classification and reporting attention to key project evaluation
Slide 108: Value Assurance – our experiences
Division Civil Engineering Value Assurance – Our Experiences What’s new? Benefits Example ▪ Clear group wide standard ▪ Clarity about all process steps ▪ Stable and well-known project for project assessment in project selection phase selection process throughout the Divisions ▪ Periodical project se
Slide 109: Market outlook
Division Civil Engineering Market outlook Civil Engineering markets +8.3% Civ. Eng. Overall good development in the Civil +5.0% Engineering business in terms of Civ. Eng. upcoming investment -0.8% New markets with high potentials Civ. Eng. under analyzation for further expansion via Civil Engineerin
Slide 110: Project Highlights
Division Civil Engineering Project Highlights Acquired / in execution Pipeline / in scope Arch Dam Spitallamm SMS 2A 380 KV Kabeldiagonale E39 Rogfast Kvitsoy Kühtai II PSW Sellrain CHF 98 million EUR 650 million EUR 128 million CHF 437 million EUR 400 million Überseequartier HH Varberg Phase II Ein
Slide 111: Conclusion – first improvements visible
Division Civil Engineering Conclusion – First improvements visible long term short term ▪ Strategy confirmed ▪ Pursuing our long-term strategy ▪ First improvement visible due to ▪ Focus on profitable growth organizational changes and Value Assurance approach ▪ Concentration on our strengths and core
Slide 112: Division Specialties
Capital Market Day 2019 Division Specialties © Implenia | Capital Market Day @ Implenia | October 2019 | Page 112
Slide 113: Our organization
Division Specialties Our organization BCL, Construction Implenia, Implenia Modernbau, BBV, Tensioning Implenia, Wood Site Logistics Formwork Hoch- und Tiefbau Products / Systems Construction Implenia, Facade TETRAG Automation, Tüchler Ausbau, GCM, SISAG, Technology Energy Controlling Interior/Dry Co
Slide 114: Specialties at a glance
Division Specialties Specialties at a glance CHF >53 million Turnover CHF >180 million Turnover CHF >10 million Turnover Employees ~150 Employees ~600 Employees ~40 4 Units 5 Units 1 Unit Units Units Units © Implenia | Capital Market Day @ Implenia | October 2019 | Page 114
Slide 115: Value Assurance in Specialties
Division Specialties Value Assurance What’s new? Benefits Example ▪ Create a corporate identity of ▪ Having a clear classification of ▪ Polen: Underestimation of operational excellence projects helps gaining speed technical risks and lack of and transparency in order to set performance transparency
Slide 116: Operating Model
Division Specialties Operating Model Synergies Speed Clarity CEC ▪ Better common trend ▪ Fast and clear ▪ No management attention ▪ Aligned and clear and market responsibility for each for niche units, today information sharing understanding country, an excellent there is a clear strategic and respo
Slide 117: Market Update
Division Specialties Market Update ▪ Overall sound market ▪ Strong market growth ▪ Residential construction and environment modernization projects in Wien ▪ Wind market with temporary are strong growth driver ▪ Wood as the future of slow down construction, Implenia Holzbau’s aim is to become a leade
Slide 118: Project Highlights
Division Specialties Project Highlights Acquired / in execution Pipeline / in scope Pi KIM WDR FDO CHF 12 million CHF 13 million EUR 11 million CHF 7 million Implenia, Wood Construction Implenia, Wood Construction Implenia, Facade Technology BCL, Construction Site Logistics Charité Berlin ZRE Hambur
Slide 119: Closing remarks
Capital Market Day 2019 Closing remarks © Implenia | Capital Market Day @ Implenia | October 2019 | Page 119
Slide 120: Our markets offer attractive opportunities
Closing remarks Our markets offer attractive opportunities Demand drivers Industry shifts Urbanization Consolidation & internationalization By 2050, 87% of the population in Increasing importance of economies of scale, risk Western Europe1 will live in urban diversification and innovation investment
Slide 121: Megatrends will drive continued demand in all our Divisions
Closing remarks Megatrends will drive continued demand in all our Divisions Civil Development Buildings Specialties Engineering Urbanization By 2050, 87% of the population in Western Europe1 will live in ✓ Residential and non- ✓ Residential and non- ✓ Special foundations ✓ Enabling offerings for res
Slide 122: Megatrends contribute to high construction activity in our markets
Specialti Closing remarks These megatrends contribute to a high construction activity in all our markets and catalyze further growth 16 +8,3% Implenia’s home markets, EUR billion Tiefbau 12 +5,0% 61 288 Tiefbau -0,8% -0,4% 49 Tiefbau Hochbau +3,4% 9 35 Tiefbau +2,1% +1,2% Tiefbau Hochbau 14 48 +3,4%
Slide 123: Deliver against our four strategic priorities
Closing remarks We will rigorously deliver against our four strategic priorities to achieve our vision Profitable Talent and Portfolio Innovation growth organization Run a portfolio of Manage and operate Drive innovation in all Attract, develop, and critical-size businesses businesses for segments a
Slide 124: Fully committed to delivering against our ambitious goals
Closing remarks We are fully committed to delivering against our ambitious goals 2019 Medium-term Over CHF 150 million before cost of strategy implementation Confirmation of target margin EBITDA1 from 5.25% to 5.75% Expected strategy implementation costs of around CHF 20 million Grow profitably and
Slide 125: Dates and Contacts
Dates and Contacts 2019 Annual Report 25 February 2020 Annual General Meeting 24 March 2020 Marco Dirren, CFO Contact for investors ir@implenia.com, +41 58 474 45 15 Silvan Merki, CCO Media contact communication@implenia.com, +41 58 474 74 77 © Implenia | Capital Market Day @ Implenia | October 2019
Slide 126: Disclaimer
Legal notice Disclaimer This presentation has been prepared for informational purposes only and may contain All of the information and material used in this presentation, confidential and/or legally protected information. The presentation may include including text, images, logos and product names,
Slide 127: Implenia
al Implenia