Implenia AG · SIX:IMPN
Implenia — FY2021 Earnings Presentation
49 slides from Implenia's earnings presentation, Mar 1, 2022
Slide 1: 2021 Full-Year Results Media and Analysts Conference
2021 Full-Year Results Media and Analysts Conference Glattpark (Opfikon), 1 March 2022 Annual Report 2021 CREATE AND BUILD TOMORROW’S WORLD TODAY © Implenia
Slide 2: Legal Notice Disclaimer
LEGAL NOTICE DISCLAIMER This presentation has been prepared for informational purposes only and may contain transmission or distribution, directly or indirectly, into the United States or its territories or confidential and/or legally protected information. The presentation may include forward-looki
Slide 3: 2021 Full-Year Results Media and Analysts Conference
2021 Full-Year Results Media and Analysts Conference Glattpark (Opfikon), 1 March 2022 Annual Report 2021 CREATE AND BUILD TOMORROW’S WORLD TODAY © Implenia
Slide 4: Create and Build Tomorrow's World Today: Implenia Vision
CREATE AND BUILD IMPLENIA VISION TOMORROW’S An integrated leading WORLD TODAY Strengthened Growing multinational underlying core markets construction and real performance estate service provider Transformation Structural far advanced Large project efficiency wins in line improvements with strategy ©
Slide 5: Content of Today
2021 FULL-YEAR RESULTS CONTENT OF TODAY BUSINESS UPDATE FINANCIALS OUTLOOK AND YOUR QUESTIONS AND GUIDANCE LEADERSHIP CHANGES André Wyss Marco Dirren André Wyss André Wyss CEO CFO CEO CEO Marco Dirren CFO © Implenia Media and analysts conference | March 2022 5
Slide 6: Business Update
BUSINESS 2021 full-year results UPDATE Implenia Group and Divisions © Implenia
Slide 7: Implenia Group – Strategic Focus on Profitability Results in EBIT of CHF 114.8 Million
BUSINESS UPDATE IMPLENIA GROUP – STRATEGIC FOCUS ON PROFITABILITY RESULTS IN EBIT OF CHF 114.8 MILLION, EXCEEDING TARGETS FOR FY 2021 6,881 (+8%) 3,765 (-6%) 114.8 (n.a) 76.5 (+24%) ▪ Reported EBIT of CHF 114.8 million, underlying performance increased by Order book Revenue Reported EBIT Underlying
Slide 8: Implenia's Four Divisions – Integrated Construction and Real Estate Services
BUSINESS UPDATE IMPLENIA’S FOUR DIVISIONS – STRONG OFFERING OF INTEGRATED CONSTRUCTION AND REAL ESTATE SERVICES REAL ESTATE BUILDINGS CIVIL ENGINEERING SPECIALTIES Value-oriented Real Estate End-to-end construction Expert for complex Civil Expert in construction industry partner for customized proje
Slide 9: Real Estate – Strong EBIT of CHF 42.1 Million
BUSINESS UPDATE REAL ESTATE – STRONG EBIT OF CHF 42.1 MILLION, SUBSTANTIAL EBIT CONTRIBUTION EXPECTED IN 2022 149 (+9%) 42.1 (-62%) 42.1 (-30% ) 3 ▪ EBIT of CHF 42.1 million – FY 2020 EBIT was significantly impacted by Ina Invest Trans- Real Estate portfolio Reported EBIT Underlying action – 2021 EB
Slide 10: Real Estate – Strong Portfolio on Good Locations and Diversified Use
BUSINESS UPDATE REAL ESTATE – STRONG PORTFOLIO ON GOOD LOCATIONS AND WITH DIVERSIFIED USE IN SWITZERLAND AND GERMANY Locations Mix of use Germany Rüsselsheim Darmstadt Germany Ticino 7% Commercial Residential 1% 26% Condominium Metropolitan Region 33% Zurich/Winterthur/Zug by 45% by region2) type2)
Slide 11: Real Estate – Develops Sustainable Project Portfolio
BUSINESS UPDATE REAL ESTATE – DEVELOPS SUSTAINABLE PROJECT PORTFOLIO Rue du Valais, Lokstadt Bestandeshallen, Unterfeld Süd, Lot 4, Geneva, Switzerland Winterthur, Switzerland Baar, Switzerland © JordanBorneStudio © maaars architektur visualisierungen © Implenia Media and analysts conference | March
Slide 12: Buildings – Significantly Increased Profitability
BUSINESS UPDATE BUILDINGS – SIGNIFICANTLY INCREASED PROFITABILITY WITH UNDERLYING PERFORMANCE ON EBIT LEVEL OF CHF 33.9 MILLION 2,809 (-8%) 1,819 (-13%) 32.4 (n.a.) 33.9 (+24%) ▪ EBIT of CHF 32.4 million – strong improvement in underlying Order book Revenue Reported EBIT Underlying performance; nega
Slide 13: Buildings – Won Several Flagship Projects
BUSINESS UPDATE BUILDINGS – WON SEVERAL FLAGSHIP PROJECTS SUCH AS CANTONAL HOSPITAL AARAU, CENTRAL MALLEY IN PRILLY/RENENS AND FLÖSSERHOF IN MAINZ Cantonal hospital, Central Malley, Flösserhof, Aarau, Switzerland Prilly and Renens, Switzerland Mainz, Germany © KSA © SBB AG © UBM Development Deutschl
Slide 14: Civil Engineering – Order Book Increased Further in Size and Quality
BUSINESS UPDATE CIVIL ENGINEERING – ORDER BOOK INCREASED FURTHER IN SIZE AND QUALITY; SIGNIFICANT IMPROVEMENT OF PERFORMANCE, REPORTED EBIT OF CHF 51.8 MILLION 3,918 (+23%) 2,061 (+2%) 51.8 (n.a.) 25.0 (n.a.) ▪ Reported EBIT of CHF 51.8 million, underlying performance with significant Order book Rev
Slide 15: Civil Engineering – Acquired Flagship Projects
BUSINESS UPDATE CIVIL ENGINEERING – ACQUIRED FLAGSHIP PROJECTS LOT 3 OF TUNNEL EURALPIN LYON TURIN, LUDWIGSLUST IN GERMANY AND STEP AS25 IN SWITZERLAND Lot 3, Tunnel Euralpin Lyon-Turin, Ludwigslust Railway Overpass, Station and double track expansion, France Germany STEP AS25, Oberriet-Rüthi © telt
Slide 16: Specialties – Reported EBIT of CHF 8.8 Million
BUSINESS UPDATE SPECIALTIES – REPORTED EBIT OF CHF 8.8 MILLION; DIVISION CONTINUES TO ADJUST PORTFOLIO TO IMPROVE UNDERLYING PERFORMANCE 154 (-2%) 209 (-7%) 8.8 (n.a.) -3.2 (n.a.) ▪ Reported EBIT of CHF 8.8 million includes positive one-time effects, Order book Revenue Reported EBIT Underlying mainl
Slide 17: Specialties – Won Flagship Projects
BUSINESS UPDATE SPECIALTIES – WON FLAGSHIP PROJECTS SUCH AS LAND 1 IN BERLIN OR THE HIGHWAY A7 TUNNEL ALTONA IN HAMBURG Facade technology: BCL (Building Construction Logistics): BBV Systems: Highway A7 Tunnel DSTRCT.Berlin, Germany Telli, Aarau, Switzerland Altona, Hamburg, Germany © HB Reavis © DEG
Slide 18: Deep-Dive Transformation, Innovation and Sustainability
DEEP-DIVE TRANSFORMATION, INNOVATION AND SUSTAINABILITY 2021 full-year results © Implenia
Slide 19: Four Strategic Priorities with Portfolio and Profitable Growth Sharpened
DEEP DIVE STRATEGY FOUR STRATEGIC PRIORITIES WITH ‘PORTFOLIO’ AND ‘PROFITABLE GROWTH’ BEING SHARPENED AND ACCELERATED Sharpened and accelerated PORTFOLIO PROFITABLE GROWTH INNOVATION TALENT & ORGANISATION Description Run a portfolio of critical-sized Manage and operate businesses Drive innovation in
Slide 20: Status Update on Implenia's Way Forward and Transformation
DEEP DIVE TRANSFORMATION STATUS UPDATE ON IMPLENIA’S WAY FORWARD AND TRANSFORMATION 2020 2021 2022 2023 October 2020: ▪ Progress in strategy execution; visible underlying performance ▪ Improved underlying ▪ Expected EBIT margin target Way Forward improvements performance by all ~3.5% with positive ▪
Slide 21: Transformation of Geographical Footprint Broadly Completed
PORTFOLIO PROFITAB. GROWTH INNOVATION TALENT & ORG. DEEP DIVE STRATEGY TRANSFORMATION OF GEOGRAPHICAL FOOTPRINT BROADLY COMPLETED – ALL RELEVANT MARKETS WITH POSITIVE EBIT CONTRIBUTION Integrated offering in Switzerland and Germany – only Tunnelling and Specialties offered in other markets Division
Slide 22: Sale or Ramp-Down and Externalisation Well Advanced
PORTFOLIO PROFITAB. GROWTH INNOVATION TALENT & ORG. DEEP DIVE STRATEGY SALE OR RAMP-DOWN AND EXTERNALISATION WELL ADVANCED Key initiatives 2021 2022 Group Ramp-down Südbaden DE (Bau GmbH) Buildings Sell Building construction unit to ZECH Bau Austria GmbH Sell Ferry dock NO and Instandsetzung GmbH DE
Slide 23: Profitable Growth with Focus on Opportunities and Risk Management
PORTFOLIO PROFITAB. GROWTH INNOVATION TALENT & ORG. DEEP DIVE STRATEGY PROFITABLE GROWTH WITH FOCUS ON OPPORTUNITIES AND RISK MANAGEMENT AS WELL AS OPERATIONAL EXCELLENCE TO CONTINUE IN 2022 Key initiatives 2021 2022 Group Value Assurance fully Ongoing performance management incl. Result Delivery As
Slide 24: Value Assurance Process Fully Implemented for Risk and Performance Management
PORTFOLIO PROFITAB. GROWTH INNOVATION TALENT & ORG. DEEP DIVE STRATEGY VALUE ASSURANCE PROCESS FULLY IMPLEMENTED FOR EFFECTIVE RISK AND PERFORMANCE MANAGEMENT Project Selection Performance management Achievements and Tender Approval as part of Value Assurance of Value Assurance process ▪ All new pro
Slide 25: Innovation Focus Pursued with Three-Fold Innovation Strategy
PORTFOLIO PROFITAB. GROWTH INNOVATION TALENT & ORG. DEEP DIVE STRATEGY INNOVATION FOCUS BEING PURSUED WITH THREE-FOLD INNOVATION STRATEGY Three-fold strategy Fast stage-gate innovation Market implementation Incubation platform: >850 users, 84 ideas, 12 pilots in market test, e.g.: Intrapreneurship ▪
Slide 26: Talent & Organisation – Change and Talent Management
PORTFOLIO PROFITAB. GROWTH INNOVATION TALENT & ORG. DEEP DIVE STRATEGY TALENT & ORGANISATION WITH KEY INITIATIVES CHANGE AND TALENT MANAGEMENT – SUPPORTED BY OUR FOUNDATION OF VALUES AND OPERATING MODEL Key initiatives Status 2021 Focus 2022 Change management ▪ Change management and collaboration tr
Slide 27: New Headquarters Implenia Connect in Opfikon
PORTFOLIO PROFITAB. GROWTH INNOVATION TALENT & ORG. DEEP DIVE STRATEGY NEW HEADQUARTERS “IMPLENIA CONNECT” IN OPFIKON ENABLING INTERNAL AND EXTERNAL COLLABORATION © Implenia Media and analysts conference | March 2022 27
Slide 28: Relevant Ratings Confirm Position as Industry Leader in ESG Ratings
DEEP DIVE SUSTAINABILITY RELEVANT RATINGS CONFIRM POSITION AS INDUSTRY LEADER IN ESG RATINGS, LIVING SUSTAINABILITY AT THE CORE Sustainability Priorities Ambitious Leader in ESG ratings4) at Implenia 2025 sustainability targets ▪ CO2-emissions: reduce 3% p.a. Sustainable Products and 15% by 20251) w
Slide 29: Setting Standards in Sustainable Real Estate and Infrastructure – Lokstadt
DEEP DIVE SUSTAINABILITY IMPLENIA IS SETTING STANDARDS IN SUSTAINABLE REAL ESTATE AND INFRASTRUCTURE PROJECTS – FLAGSHIP EXAMPLE LOKSTADT “2000-Watt Site” Lokstadt in Winterthur, Switzerland Climate-friendly construction site Mobility Network Well-being and Strategy quality of life Diverse mix of us
Slide 30: Financials and Guidance
FINANCIALS AND GUIDANCE 2021 full-year results © Implenia
Slide 31: EBIT Target of CHF >100 Million Exceeded
FINANCIALS AND GUIDANCE EBIT TARGET OF CHF >100 MILLION EXCEEDED Income statement (shortened) CHF mn ▪ Reported EBIT clearly above FY 2021 FY2021 FY2020 guidance of CHF >100 million ▪ Positive one-time effects from Revenue 3,764.7 3,988.9 transformation of ~38 million EBIT 114.8 -146.8 ▪ Financial r
Slide 32: Underlying Performance of CHF 76.5 Million Significantly Improved
FINANCIALS AND GUIDANCE UNDERLYING PERFORMANCE OF CHF 76.5 MILLION SIGNIFICANTLY IMPROVED, UNDERLYING EBIT MARGIN INCREASED OVER 30% CHF mn One-time effects from Reported EBIT Underlying performance transformation FY2021 FY2020 FY2020 FY2021 FY2020 FY2021 FY2020 FY2021 margin margin Real Estate 42.1
Slide 33: Successful Placement of Bond Strengthens Financing Structure
FINANCIALS AND GUIDANCE SUCCESSFUL PLACEMENT OF BOND STRENGTHENS FINANCING STRUCTURE Maturity profile of financing instruments ▪ To secure the full redemption of the maturing convertible bond in June 2022, Implenia successfully issued a CHF 175 million bond in November 2021 ▪ Implenia is solidly fin
Slide 34: Total Assets Stable Compared to Prior Year
FINANCIALS AND GUIDANCE TOTAL ASSETS STABLE COMPARED TO PRIOR YEAR, EXCLUDING TEMPORARY IMPACT OF BOND TOTAL ASSETS REDUCED YEAR-OVER-YEAR Assets (shortened) CHF mn ▪ Continuing high level of cash and cash 31.12.2021 31.12.2020 equivalents – strong cash inflow in Cash & cash equivalents 621.9 720.0
Slide 35: Equity Increase Driven by Improved Profitability
FINANCIALS AND GUIDANCE EQUITY INCREASE DRIVEN BY IMPROVED PROFITABILITY, EQUITY RATIO EXCLUDING TEMPORARY IMPACT OF BOND AT 12.3% Equity and Liabilities (shortened) CHF mn ▪ Trade payables reduced in line with 31.12.2021 31.12.2020 decline in revenues Trade payables 679.4 935.4 ▪ Increase in other
Slide 36: Equity Ratio – Confident for the Future
FINANCIALS AND GUIDANCE EQUITY RATIO – CONFIDENT FOR THE FUTURE Change in equity (shortened) incl. impact of market value Real Estate portfolio1) 2) CHF mn ▪ Equity ratio excluding temporary +42.9 impact of bond proceeds: 12.3% ~170 ~130 -5.8 -15.2 ▪ Bond impact and market value of 64.0 Implenia’s r
Slide 37: Strong Cash Inflow in Second Half Year
FINANCIALS AND GUIDANCE STRONG CASH INFLOW IN SECOND HALF YEAR Consolidated Cash Flow Statement CHF mn ▪ Improved operating cash flow FY2021 FY2020 compared to FY2020; partly Free Cash Flow1) -17.5 -193.3 compensating for extraordinary cash Cash & cash equivalents at the outflow in H1.2021 720.0 912
Slide 38: Restructuring Program on Track; Reduction of Total Assets Remains Priority
FINANCIALS AND GUIDANCE RESTRUCTURING PROGRAM ON TRACK; REDUCTION OF TOTAL ASSETS REMAINS PRIORITY FOR THE GROUP ▪ FTE reduction according to plan; meeting social Total assets CHF mn responsibility and targeted organization ▪ Reduction of SG&A (Selling, General and Administra- ~ -20% tive expenses)
Slide 39: Board Proposes to Refrain from Paying a Dividend for FY2021
FINANCIALS AND GUIDANCE IMPLENIA’S BOARD OF DIRECTORS PROPOSES TO REFRAIN FROM PAYING A DIVIDEND FOR FY2021 345.9 (+14%) 12.3%1) (+2.0pp) Total Equity Equity Ratio ▪ Clear focus to: CHF mn – Improve financial position of the company – aim 12.3% Temporary to strengthen equity by CHF >80 million in 20
Slide 40: Implenia Aims for EBIT of CHF >120 Million in 2022
FINANCIALS AND GUIDANCE IMPLENIA AIMS FOR EBIT OF CHF >120 MILLION IN 2022 2022 Mid-term target Profitability target Expected EBIT of CHF >120 million, 3.5% EBIT margin including less than 20% positive one-time effects from transformation Long-term ambition 4.5% EBIT margin © Implenia Media and anal
Slide 41: Outlook and Leadership Changes
OUTLOOK AND LEADERSHIP CHANGES 2021 full-year results © Implenia
Slide 42: Megatrends and Industry Shifts Continue to Offer Attractive Opportunities
OUTLOOK MEGATRENDS AND INDUSTRY SHIFTS CONTINUE TO OFFER ATTRACTIVE OPPORTUNITIES Demand drivers Industry shifts Consolidation & internationalization Increasing importance of economies of scale, risk diversification and innovation investments Industrialization Increasing productivity through factory
Slide 43: Expected Growth Due to Sustained Investments in Relevant Markets
OUTLOOK EXPECTED GROWTH DUE TO SUSTAINED INVESTMENTS IN RELEVANT IMPLENIA MARKETS Construction output Buildings Civil Engineering EUR CAGR1) EUR CAGR1) bn 2021-2024 bn 2021-2024 Europe (EC-15) 1,339 +1.9% 352 +2.6% Switzerland 52 +0.5% 15 +0.5% Germany 326 +0.3% 71 +0.6% Austria 9 +1.4% France 50 +2
Slide 44: Judith Bischof Proposed as New Board Member, Stefan Baumgärtner New CFO
LEADERSHIP CHANGES JUDITH BISCHOF PROPOSED AS NEW MEMBER OF THE BOARD OF DIRECTORS, STEFAN BAUMGÄRTNER APPOINTED AS NEW CFO Board of Directors Implenia Executive Committee ▪ Ines Pöschel will not stand for re-election at the ▪ CFO Marco Dirren will leave the company following a Annual General Meetin
Slide 45: Implenia Executive Committee
LEADERSHIP CHANGES IMPLENIA EXECUTIVE COMMITTEE CHIEF EXECUTIVE OFFICER André Wyss COUNTRY PRESIDENT GERMANY Matthias Jacob HEAD DIVISION REAL ESTATE HEAD DIVISION BUILDINGS HEAD DIVISION HEAD DIVISION SPECIALTIES CIVIL ENGINEERING HEAD STRATEGY Adrian Wyss Jens Vollmar Christian Späth Anita Eckardt
Slide 46: Underlying Performance Improvements
Ramp-down, divestment or Performance management Underlying transformation during execution performance of non-perfor- Order book with better quality, ming businesses improvements higher margins and lower risk Higher-margin Structural business models efficiency improvements © Implenia 46
Slide 47: Dates and Contacts
DATES AND CONTACTS Dates AGM 29.03.2022 2022 Half-year Report 17.08.2022 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 Media and analysts conference | March 2022 47
Slide 48: Ready to Answer Your Questions!
READY TO ANSWER YOUR QUESTIONS! 2021 Full-Year results © Implenia
Slide 49: Thank You Very Much!
THANK YOU VERY MUCH! © Implenia