Daring to Shape our Future Equity Story

Transcription

1 Daring to Shape our Future Equity Story September 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 September 2014 Page 2

3 the leading construction company in Switzerland Implenia Equity Story September 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 September 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 2013 Implenia Salzburg established, Austria 1872 Conradin Zschokke founded the future Zschokke AG Zschokke evolves (i.a. Goehner Merkur) to the #1 in Switzerland st Sustainability Report Acquisition of Sulzer Real Estate 2013 Implenia reached for the 1 st time EBIT target of CHF 100 mn 2013 New mid term EBIT target of CHF mn announced Implenia Equity Story September 2014 Page 5

6 Implenia market position Leader in the Swiss market 3'057 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) 1'071 1'100 1' Development GC/TC Construction Source: Companies, Implenia estimates 2013, revenue in CHF mn Implenia Equity Story September 2014 Page 6

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

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

9 A broad portfolio Breakdown key divisional figures 2013 Order Book Revenue 14.3% 5.4% 9.3% 3.8% 5.5% 10.4% 25.2% 13.0% 56.9% 47.8% 8.4% EBIT Full Time Employees 9.0% 3.2% 8.6% 7.1% 0.9% 21.7% 32.1% Modernisation Development 21.3% Building Tunnelling &CE Construction Switzerland 46.5% 17.9% 16.1% Norge 15.6% Implenia Equity Story September 2014 Page 9

10 Modernisation Finger on the pulse of the market - for the Switzerland of tomorrow in CHF million Modernisation Divisional Share in % Change Order Book 5% % Revenue 4% % EBIT 3% N/A Margin -3.7% 2.7% 642 bp Invested Capital -2% N/A Full Time Employees 7% % 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 Wooden construction and engineering Strategic direction Modernisation Focus on key regions Zurich, Basel, Aargau From 2015 roll out in the whole of Switzerland Consulting Support in building up the Modernisation and Development pipeline Building up interdisciplinary know-how Implenia Equity Story September 2014 Page 10

11 Development Finger on the pulse of the market - for the Switzerland of tomorrow in CHF million Development Divisional Share in % 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 September 2014 Page 11

12 Buildings We build the Switzerland of tomorrow in CHF million Buildings Divisional Share in % Change Order Book 57% 1'845 1'816-2% Revenue 48% 1' ' % EBIT 16% % Margin 1.4% 1.1% -29 bp Invested Capital -45% N/A Full Time Employees 21% 1'006 1'180 17% 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 September 2014 Page 12

13 Tunnelling & Civil Engineering We are the experts for demanding infrastructure projects in CHF million Tunnelling & CE Divisional Share in % 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 September 2014 Page 13

14 Construction Switzerland Deep roots in the Swiss market. First-class implementation in CHF million Construction CH Divisional Share in % Change Order Book 10% % Revenue 25% % EBIT 22% N/A Margin 2.6% 2.8% 26 bp Invested Capital 88% % Full Time Employees 47% 2'824 2'579-9% 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 September 2014 Page 14

15 Norge Leading provider of complex infrastructure projects in CHF million Norge Divisional Share in % 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 September 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 September 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 September 2014 Page 17

18 growing and developing an international footprint in its neighbour countries and Scandinavia Implenia Equity Story September 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% Abroad Domestic Local operating presence Implenia Equity Story September 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) 2013: 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 September 2014 Page 20

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

22 Sustainability Implenia From vision to actual implementation Anchored firmly in the vision Commitment redoubled Basic and continuing training intensified Network for Sustainable Construction in Switzerland (SNBS) Energy/ resource consumption Participation certificate for pilot phase of SNBS Winning performance / Winning the future Internal standard introduced: GeNaB First EcoDrive training 1st report published Supplier requirements defined Initation of coverage Code of Conduct amended 2nd report published Implenia Equity Story September 2014 Page 22

23 Sustainability at Implenia Sustainability strategy built on five main themes Sustainable products & services Attractive working environment Respect for the environment 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 62 billion investment a year Investment reflects about 10% of GDP 330,000 jobs Economy Sustainable investors/shareholders Competitive pressure Shortage of expertise Implenia Equity Story September 2014 Page 23

24 providing value for its shareholders Implenia Equity Story September 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% ,5% 9,5% ,5% % 0% ,6% ,6% ,6% 7,3% ,3% % 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 September 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 efficiency Capital efficiency Economic Profit 2013 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 September 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 September 2014 Page 27

28 providing healthy and strong numbers Implenia Equity Story September 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 September 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 September 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 September 2014 Page 31

32 Order book High visibility and quality thanks to well-filled order book High order backlog book level 4,000 in CHF million Solvent order book 3,500 3,000 3,540 3,008 3,283 3,242 August ,249 36,9% 36,9% 31,9% Third parties AAA 2,500 31,2% Public sector Jun 2010 Jun Jun 2012 Jun 2013 Jun 2014 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 September 2014 Page 32

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

34 Outlook Confident about the second half-year Group Thanks to a continuing positive market environment, a leading market position and full order books, Implenia is confident about the second half of The operating earnings for 2014 as a whole will exceed CHF 100 million. The group is sticking to the medium-term EBIT target of CHF million. Modernisation Development Outlook remains positive Buildings Clear positive result expected in the second half of 2014 Tunnelling & CE Construction Switzerland Norge End of NEAT tunnelling work will lead to a fall in earnings in the second half of the year High order backlog allows optimism On target according to plan Implenia Equity Story September 2014 Page 34

35 Outlook Our mid term target since February 2013 in CHF million Growth Profitability Goal CHF million in Modernisation CHF million abroad EBIT CHF million Margin +/- 4.5% % 3.7% Implenia Equity Story September 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 September 2014 Page 36

37 Financial Time Series Appendix Implenia Equity Story September 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 September 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 September 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 September 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 2010 Dec 2010 Jun Dec Jun 2012 Dec 2012 Jun Dec Jun 2010 Dec 2010 Jun Dec Jun 2012 Dec 2012 Jun Dec % 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 September 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 September 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 September 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 September 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 September 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 September 2014 Page 46

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

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