Daring to Shape our Future Equity Story

Transcription

1 Daring to Shape our Future Equity Story February 2014

2 Implenia at a glance Implenia is the leading construction company in Switzerland well diversified covering the whole range of construction and construction services growing and developing an international footprint in its neighbour countries and Scandinavia carrying sustainability out in practice providing value for its shareholders (ROIC) providing healthy and strong numbers delivering a solid track record LEADER DIVERSIFIED GROWTH INTERNATIONAL SUSTAINABLE VALUE SAFETY SUCCESS Implenia Equity Story February 2014 Page 2

3 the leading construction company in Switzerland Implenia Equity Story February 2014 Page 3

4 Strategic direction Our Vision We develop and build the Switzerland of tomorrow We establish ourselves as an expert for complex international infrastructure projects Sustainability is our passion We are the partner of choice for customers and employees alike Implenia Equity Story February 2014 Page 4

5 Implenia plans and builds for life. With pleasure. A young company with over 150 years of experience 1862 Hermann Preiswerk founded the future Batigroup AG 1997 Merger of Preiswerk, Stuag and Schmalz to the #2 in the Swiss market 2006 Merger of Zschokke and Batigroup to Implenia Acquisition of Betonmast Anlegg AS, Norway Implenia Salzburg established, Austria 1872 Conradin Zschokke founded the future Zschokke AG Zschokke evolves (i.a. Goehner Merkur) to the #1 in Switzerland 1 st Sustainability Report Acquisition of Sulzer Real Estate Implenia reached for the 1 st time EBIT target of CHF 100 mn New mid term EBIT target of CHF mn announced Implenia Equity Story February 2014 Page 5

6 Implenia market position Leader in the Swiss market Market leader in infrastructure construction, approx. 10% market share general contracting, 15%-20% market share one of the leaders in the Swiss real estate development sector Transparent only listed Swiss construction company (IFRS) '000 Development GC/TC Construction Source: Companies/Implenia estimates based on 2012, revenue in CHF mn Implenia Equity Story February 2014 Page 6

7 well diversified covering the whole range of construction and construction services Implenia Equity Story February 2014 Page 7

8 Our segments Our segments reflect the clout of our organisation Modernisation Development Buildings Tunnelling & CE Construction Switzerland Consulting TC/GC Execution Real estate project development TC/GC Complex building construction Underground construction Civil engineering Foundation engineering Civil works Roads Regional building construction Norge Underground construction Infrastructure Niches Refurbishment Plants One company, one goal, one spirit Implenia Equity Story February 2014 Page 8

9 A broad portfolio Breakdown key divisional figures Order Book Revenue 14.3% 3.8% 9.3% 2.2% 5.5% 11.0% 26.7% 13.0% 57.9% 8.4% 47.9% EBIT Full Time Employees 9.0% 0.5% 8.6% 4.8% 0.9% 19.8% 32.1% Modernisation 20.0% Development Building 17.9% 20.7% Tunnelling &CE Construction Switzerland Norge 50.1% 15.6% Implenia Equity Story February 2014 Page 9

10 Modernisation Finger on the pulse of the market - for the Switzerland of tomorrow in CHF million Modernisation Divisional Share in % 2012 Change Order Book 4% % Revenue 2% % EBIT 1% N/A Margin -3.7% 0.8% 449 bp Invested Capital -3% N/A Full Time Employees 5% % Market Conversion of residential and commercial properties Target clients Supra-regional institutional investors and large corporations (investors, operators and owners) Activities Consulting, Planning, General and Total Contracting and Execution Strategic direction Modernisation Consulting Focus on key regions Zurich, Basel, Aargau From 2015 roll out in the whole of Switzerland Support in building up the Modernisation and Development pipeline Building up interdisciplinary know-how Implenia Equity Story February 2014 Page 10

11 Development Finger on the pulse of the market - for the Switzerland of tomorrow in CHF million Development Divisional Share in % 2012 Change Order Book 0% - - N/A Revenue 6% % EBIT 32% % ROIC 16.4% 23.7% 730 bp Invested Capital 64% % Full Time Employees 1% % Market Institutional real estate and investment market Target clients Investors, operators and owners of real estate, institutional investors and large corporations Activities Project Development Wooden & modular construction Technical planning activities (including implementation) by Implenia Engineering Strategic direction Focus on target markets Cultivating growth markets like wooden & modular construction Implenia Equity Story February 2014 Page 11

12 Buildings We build the Switzerland of tomorrow in CHF million Buildings Divisional Share in % 2012 Change Order Book 58% 1'845 1'847 0% Revenue 48% 1' ' % EBIT 21% % Margin 1.4% 1.4% 2 bp Invested Capital -47% N/A Full Time Employees 20% 1'006 1'108 10% Market Industrial building construction market in Switzerland and in Southern Germany Target clients Supra-regional owners and operators of real estate Institutional investors and major corporations Activities General and total contracting Industrial buildings Construction in Southern Germany Strategic direction Aligning the organisation to an integrated model Joint calculation and risk management Establishing regional competence centres Increase market share of internal execution from 10% to 20% Develop new verticals like health care Implenia Equity Story February 2014 Page 12

13 Tunnelling & Civil Engineering We are the experts for demanding infrastructure projects in CHF million Tunnelling & CE Divisional Share in % 2012 Change Order Book 13% % Revenue 8% % EBIT 18% % Margin 10.7% 7.0% -374 bp Invested Capital -11% % Full Time Employees 16% 1' % Market National infrastructure Target clients National operators and owners of infrastructure State-owned, partially state-owned and major private corporations (e.g. energy providers) Activities Bundling infrastructure competences : Underground, bridge and power station construction Foundation engineering Infrastructure refurbishment Strategic direction Tunnelling: Keep leadership in Switzerland and develop export business (tunnel boring machine market) Bridge construction: Keep leadership in CH and target specific major European projects Civil Engineering: Expand major project business Foundation Engineering: Increase internal share to 20% and optimize costs and investments with European structure Maintenance: Achieve market leadership Implenia Equity Story February 2014 Page 13

14 Construction Switzerland Deep roots in the Swiss market. First-class implementation in CHF million Construction CH Divisional Share in % 2012 Change Order Book 11% % Revenue 27% % EBIT 20% N/A Margin 2.6% 2.4% -14 bp Invested Capital 90% % Full Time Employees 50% 2'824 2'779-2% Market Road construction, civil engineering and regional building construction Target clients Municipalities and cantons Private individuals, SME (very locally/regionally oriented) Services Road construction and civil engineering Regional building construction Strategic direction Cost leadership Lean Construction Improve risk management White areas: Profitable geographical growth in regional civil engineering, road and building construction Collaboration with Sectors: Interaction in infrastructure construction Implenia Equity Story February 2014 Page 14

15 Norge Leading provider of complex infrastructure projects in CHF million Norge Divisional Share in % 2012 Change Order Book 14% % Revenue 9% % EBIT 9% N/A Margin 1.4% 3.2% 183 bp Invested Capital 7% % Full Time Employees 9% % Market Tunnelling and infrastructure for Norway s and Scandinavia s water, energy and transportation industry Target clients National operators and owners of infrastructure Large public, semi-public, and private companies Services Complex infrastructure projects: tunnels, roads, dams, bridges Niche markets Strategic direction Growth Horizontal expansion: northern and western Norway and Sweden Vertical expansion: integration of specialised know how in the value chain Ongoing efficiency initiatives (continuous improvement of project management and processes) Implenia Equity Story February 2014 Page 15

16 Corporate Center & Technical Support Our internal service provider Corporate Center Technical Support Supporting the operative areas with central services: Accounting Business Development Controlling Financial Risk Management HR Investment Management Investor Relations Legal Services Marketing/Communications Procurement Reporting/Consolidation Treasury Responsibilities Centralised procurement for the Group Development of strategies, processes and standards for Health and Safety Innovation Insurance IT Lean Construction/IMS Sustainability Technical Risk Management Implenia Equity Story February 2014 Page 16

17 Business model One Company - Covering the entire life cycle Idea / concept Modernisation Funding Management integrated business model comprehensive portfolio of products and services Development Realisation Planning, Engineering Implenia Equity Story February 2014 Page 17

18 growing and developing an international footprint in its neighbour countries and Scandinavia Implenia Equity Story February 2014 Page 18

19 Implenia Group Locations in Switzerland and abroad Switzerland Europe Local operating presence French German Rumantsch Italian Revenue Split West Africa 4% 14% 2009 Abroad Domestic Local operating presence Implenia Equity Story February 2014 Page 19

20 Strategic direction Expansion of service portfolio and targeted growth Fields of growth Switzerland Modernisation & White Spots Norway/Scandinavia Tunnelling & CE Austria/Germany Tunnelling & CE Germany Buildings Inorganic and organic growth : Acquisition of Betonmast Anlegg (Norway) 2012: Freiburg/Karlsruhe established (green field) : Implenia Austria established (green field) National expansion Growth Areas Business Unit Refurbishment White Spots Modernisation Development Buildings Tunnelling & CE Construction CH Target Markets Infrastructure Building International expansion Expert Generalist Discounter Expert & Premium Builder Premium Infrastructure Specialist Implenia Equity Story February 2014 Page 20

21 is carrying sustainability out in practice Implenia Equity Story February 2014 Page 21

22 Sustainabiliy track record Sustainability carried out in practice Beacon projects for the 2000-Watt-Society started Neugrüen Melligen schorenstadt Basel Timber constr. Giesserei Winterhur roy Winterthur Rosengarten Arbon Werk 1 Winterhur GeNaB Sustainable project development Kick-off Top 20 Kick-off Top 100 «Eco-Drive» Training, education intensified Steering Board of Sustainable Constr. Network Switzerland 1st Report Supply Chain Mgmt Initiation of coverage Meter and reducing energy use Green ICT Certificate New Report Sustainability anchored in the vision Implenia Equity Story February 2014 Page 22

23 Sustainability at Implenia Sustainability strategy built on five main themes Products & Services Working Environment Respect Social Commitment & Compliance Financial Excellence Customer relations Supplier relations Sustainable constr. Training / Education Talent management Health and safety Reduction of energy use and resource consumption Code of Conduct Stakeholder dialogue Communication Create value Sustainable profit improvement Significance of the construction industry in Switzerland Environment 30% of greenhouse gas emissions 40% of national energy consumption 75% of waste generated Environment Dwindling supplies of energy/resources Loss of biodiversity Environmental degradation Society 50,000 accidents at work every year 1.5 million buildings 70,000/5,000 km of roads/railway tracks Potential in all areas Society Population growth Urbanization / demographic change Health and safety Economy CHF billion investment a year Investment reflects about 10% of GDP 300,000 jobs Economy Sustainable investors/shareholders Competitive pressure Shortage of expertise Implenia Equity Story February 2014 Page 23

24 providing value for its shareholders Implenia Equity Story February 2014 Page 24

25 Return on invested capital (ROIC) Substantially above capital costs ROIC before tax ROIC after tax % % ,9% 22,4% 27,3% ,3% ,0% 60% 50% 40% 30% 20% ,3% 17,9% 21,4% ,1% ,0% 60% 50% 40% 30% 20% ,4% ,3% 9,5% 9,5% ,5% 10% 0% ,6% ,6% 7,6% 7,3% ,3% 10% 0% Invested capital (in CHF million) ROIC (Operating income / Invested capital) WACC before tax Invested capital (in CHF million) ROIC (NOPAT / Invested capital) WACC after tax 1 Restated Implenia Equity Story February 2014 Page 25

26 Assessment Economic Profit Further increase in value in CHF million 52 51,5 50 (3,8) 3,3 48 7, ,1 0 Economic Profit 2012 Growth Cost effiency Capital effiency Economic Profit Growth Norge and Buildings more than compensated volume decline in Swiss underground construction Cost efficiency Omission of high margin underground construction Efficiency improvements in project development Capital efficiency Lower rise in net working capital compared to volume growth Less investments into the own land bank but more sales of good law Implenia Equity Story February 2014 Page 26

27 Sector benchmark Clearly above average IFRS Operating Income Margin ROIC 1) 6% 50% 46.0% 5% 4% 3% 2% 1% 0.7% 1.6% 2.5% 3.0% 3.3% 3.7% 3.9% 3.8% 45% 40% 35% 30% 25% 20% 15% 10% 5% 4.7% 7.4% 15.3% 19.9% 22.5% 27.3% 41.3% 0% % Implenia Median 25-Percentile 75-Percentile Implenia Median 25-Percentile 75-Percentile Peers: Skanska, ACS, Strabag, NCC, Veidekke, Hochtief, Balfour Beatty, Bilfinger, BAM, AF Gruppen, YIZ) 1 Definition: ROIC = (EBIT / IC) whereas the year end IC is calculated without cash. Source: Bloomberg, Implenia Implenia Equity Story February 2014 Page 27

28 providing healthy and strong numbers Implenia Equity Story February 2014 Page 28

29 Profit and loss statement Consolidated profit has increased significantly in CHF million Dec 13 Dec /- in % Consolidated production output 3, , % Consolidated revenue 3, , % EBIT Business Units % Miscellaneous / Holding % Operating income % 3.8% 3.9% Financial result % Tax % Consolidated profit % 2.7% 2.7% EBITDA % 1 Restated / Impact from IFRS 11: Revenue 104,7 CHF million, EBIT 4,8 CHF million Implenia Equity Story February 2014 Page 29

30 Balance Sheet Good equity ratio of almost 30 per cent in CHF million Cash and cash equivalents 26.5% 58.1% Current liabilities Current Assets 54.6% 13.3% Non-Current liabilities Non-Current Assets 18.8% 28.6% Equity incl. Minorities Assets Liabilities Implenia Equity Story February 2014 Page 30

31 Cash Flow Statement Revenue growth ties up working capital in CHF million 134,5 (129,2) 142,8 (28,0) 33,3 (30,1) (44,4) 78,9 Profit before changes in NWC Receivables Liabilities Work in progress/joint ventures (equity method) Real estate transactions Interest and taxes Investments and M&A Free cash flow ,3 72,4 (64,8) 48,9 (4,7) (12,0) (44,5) 133,6 Implenia Equity Story February 2014 Page 31

32 Order book High visibility and quality thanks to well-filled order book High order backlog Solvent order book Actual ,9% 36,9% 31,9% Third parties AAA ,2% Public sector Secured revenue 2014/15 Diversified order book ,5% 62,4% 28,6% 22,4% Projects > 10 mn Projects < 10 mn processed projects Actual year Prior year Higher target margin Implenia Equity Story February 2014 Page 32

33 delivering solid track record Implenia Equity Story February 2014 Page 33

34 Outlook Main themes for 2014 to achieve EBIT of million Focus Modernisation Development Buildings Tunnelling & CE Construction Switzerland Norge Good order backlog ongoing positive further development Solid demand for investment properties Good order backlog focus on improving margin situation Further development of internationalisation strategy and refurbishment Stability sustainable public expenditure and good regional diversification Optimistic for sales and profitability thanks to record order backlog level Group Implenia optimistic for the current year Order book equivalent to more than one year's sales good visibility Further growth at sales and earnings level expected On course: medium term goal of EBIT of 140 to 150 CHF million Implenia Equity Story February 2014 Page 34

35 Outlook Our mid term target since February in CHF million Growth Profitability Goal CHF million in Modernisation CHF million abroad EBIT CHF million Margin +/- 4.5% % 3.7% Implenia Equity Story February 2014 Page 35

36 Mid term target Excellent track record in CHF million Operating Income New Mid-Term Target (EBIT CHF mn) Mid-Term Target (EBIT CHF 100 mn) EBITDA Merger Target (EBITDA CHF 100 mn) Implenia Equity Story February 2014 Page 36

37 Financial Time Series Appendix Implenia Equity Story February 2014 Page 37

38 Financial Time Series Consolidated revenue and order book in CHF million Consolidated revenue Order book nd half-year 1st half-year Revenue in third subsequent year et seq. Revenue in second subsequent year Revenue in first subsequent year Implenia Equity Story February 2014 Page 38

39 Financial Time Series EBIT Business Units and Operating income in CHF million EBIT Business Units Operating income ,0 3,5% 77,0 3,2% 93,5 3,7% 108,8 3,9% 114,0 3,7% 7% 6% 5% 4% 3% 2% 1% ,6 3,0% 77,7 3,3% 93,7 3,7% 110,3 3,9% 115,6 3,8% 7% 6% 5% 4% 3% 2% 1% % % EBIT-margin (in %) 2nd half-year 1st half-year Margin (in %) 2nd half-year 1st half-year 1 Restated Implenia Equity Story February 2014 Page 39

40 Financial Time Series EBITDA and consolidated profit in CHF million EBITDA Consolidated profit ,6 4,6% 112,6 4,7% 140,5 5,6% 153,7 5,5% 158,4 5,2% 10% 8% 6% 4% 2% ,1 2,1% 52,5 2,2% 61,4 2,4% 76,9 2,7% 82,6 2,7% 6% 4% 2% % % EBITDA-margin (in %) 2nd half-year 1st half-year Margin (in %) 2nd half-year 1st half-year 1 Restated Implenia Equity Story February 2014 Page 40

41 Financial Time Series Net cash position & balance sheet ratios in CHF million Net cash position Balance sheet ratios % % % % % % % % 100% 80% 60% 40% % 30% 30% 29% 22% 26% 25% 29% 20% -300 Jun Dec Jun Dec Jun Dec Jun Dec 0 Jun Dec Jun Dec Jun Dec Jun Dec 0% Cash and cash equivalents Financial liabilities Net cash position 1 Restated Liabilities Equity Equity in % of assets Gearing in % (Financial liabilities/equity) Implenia Equity Story February 2014 Page 41

42 Financial Time Series Current assets and current liabilities in CHF million Current assets Current liabilities Cash and cash equivalents Financial liabilities Real estate transactions Other liabilities Other accounts receivable Trade payables Trade receivables Work in progress Work in progress 1 Restated Implenia Equity Story February 2014 Page 42

43 Financial Time Series Non-current assets, equity and non-current liabilities in CHF million Non-current assets Equity & non-current liabilities Other assets Financial investments Property, plant & equipment Intangible assets Financial liabilities Provisions & deferred tax liabilities Equity 1 Restated Implenia Equity Story February 2014 Page 43

44 Financial Time Series Cash Flow analysis in CHF million Net cash position Free Cash Flow 85,9 149,5 193,5 321,4 371,1 92,7 39,9 67,3 133,6 78, Cash and cash equivalents Financial liabilities Net Cash Position Cash flow from operating activities Cash flow from investment activities Free Cash Flow 1 Restated Implenia Equity Story February 2014 Page 44

45 Financial Time Series Key figure share in CHF million Earnings per share (in CHF) +0,3 (+8%) Equity per share (in CHF) +4,1 (+14%) 2,56 2,88 3,31 3,82 4,11 24,8 26,8 29,1 28,9 33, Price-earnings-ratio +5,4 (+51%) 15,80 11,30 11,10 7,20 10, Restated Implenia Equity Story February 2014 Page 45

46 Financial Time Series Key figure dividend in CHF million Gross dividend +0,2 (+14%) Payout ratio +2,3%p. 0,70 0,90 1,10 1,40 1,60 27,40% 31,30% 33,30% 36,60% 38,90% Dividend yield 4,70% -1,0%p. 2,40% 2,80% 3,50% 2,50% Restated Implenia Equity Story February 2014 Page 46

47 Agenda & IR Keep in touch AGM 2014: 25th March H 2014: 21st August 2014 FY 2014: 24th February 2015 AGM 2015: 24th March 2015 Investor contacts Beat Fellmann, CFO Serge Rotzer, Head of IR Implenia Equity Story February 2014 Page 47

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