Financial Analysts' Conference

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1 Financial Analysts' Conference Zurich, 10 March 2011 A. Affentranger / Hp. Fässler / B. Fellmann

2 Annual Financial Statements December 2010 Key points Implenia Corporate Center March 2011 Page 2

3 Key points Implenia in its 5th year Systematically implemented strategy pays off In year 5, a successful reality in the market based on: a motivating vision lived values a clear strategy Steadily improving profitability and balance sheet for the 5th time in succession EBITDA, operating income and consolidated profit have increased balance sheet further strengthened Sustainability embedded in the Group strategy key priorities defined consistent and transparent implementation Implenia Corporate Center March 2011 Page 3

4 Key points Implenia in its 5th year Numerous strategic and operational highlights Management strengthened Hanspeter Fässler CEO since 1 September 2010 René Zahnd Head of Implenia Real Estate and member of Group Management since 1 March 2010 Significant strengthening of key management positions in all divisions (internal and external appointments) Acquisition of Sulzer Immobilien Significant strengthening of our project development portfolio Strategic investment in the future Breakthrough on the Gotthard 15 October 2010 Implenia is the leading company in 3 out of 5 projects Technical and logistical high performance Implenia Corporate Center March 2011 Page 4

5 Annual Financial Statements December 2010 Construction and real estate market in Switzerland Implenia Corporate Center March 2011 Page 5

6 A 50 billion (a year) industry Stable trend over the last few years Total real construction spending in Switzerland in CHF billions (based on 2006 CPI) Source: BfS (data), SBV (graphic)) CHF billions First oil shock 1979/80 Second oil shock Investment bonus and housing law(1990 bis 1995) Work starts on NEAT(1996) Implenia Corporate Center March 2011 Page 6

Prices develop slower than costs Margin pressure can only be compensated through improved productivity Cost and price trends in civil works (main contract work) Cost and price trends in building

cost index in building works (Q1 2002=100) Costs: construction cost index (Civil works, reinforced concrete) Prices: BfS construction price index (Civil works, main contract work) Costs:

7 Prices develop slower than costs Margin pressure can only be compensated through improved productivity Cost and price trends in civil works (main contract work) Cost and price trends in building construction (main contract work) Price and cost index in civil works (Q1 2002=100) Price and cost index in civil works (Q1 2002=100) Price and cost index in civil works (Q1 2002=100) Price and cost index in building works (Q1 2002=100) Costs: construction cost index (Civil works, reinforced concrete) Prices: BfS construction price index (Civil works, main contract work) Costs: construction cost index (building construction, main contract work, multi-family homes) Prices: BfS construction price index (Civil works, main contract work) Implenia Corporate Center March 2011 Page 7

8 Real estate prices in Switzerland Healthy price level for Swiss real estate Implenia Corporate Center March 2011 Page 8

9 Real change in the construction index At a high level, driven by civil works Swiss Construction index (in real terms) Swiss Building index (in real terms) Swiss Civil works index (in real terms) Implenia Corporate Center March 2011 Page 9

10 Building construction Uneven trends across the country Regional breakdown of building expenditure Growth construction in total in % p.a. < -1-1 to 0 0 to 1 > 1 Short and long term outlook Growth 2010 in % Growth 2011 in % Growth in % Source: BAKBASEL; Hochbauprognose Implenia Corporate Center March 2011 Page 10

11 Summary of construction and real estate market in Switzerland Overall positive outlook European construction market Recovery is apparent Swiss construction market Remains at a high level Continuous public investment in civil works Healthy fundamentals of the real estate market - Low interest rates - Immigration / housing needs - No real estate bubble - But trends vary in different parts of the country Margin pressure Remains a characteristic of the construction industry Must be offset by improvements in productivity Implenia Corporate Center March 2011 Page 11

12 Annual Financial Statements 2010 Key figures and operating income Implenia Corporate Center March 2011 Page 12

13 Key figures and operating income Highlights Operational Operating income ( %) and consolidated profit (+ 11.5%) strict cost management Invested capital (excluding acquisition of Sulzer) once more reduced ROIC exceeds the 20 percent mark for the first time Order books remains high Financial Free cash flow - at record levels (due to effective NWC management, disciplined investments) - Acquisition of Sulzer Immobilien AG 100% financed with cash flow Financing situation - Funding base significantly bolstered with the proceeds of the new bond (CHF 200 million) - Net cash position CHF 150 million Implenia Corporate Center March 2011 Page 13

14 Key figures and operating income Key group figures in CHF million /- in % Consolidated revenue 2' ' % EBIT before special charges % Operating income % 3.3% 3.0% Consolidated profit % 2.2% 2.1% Implenia Corporate Center March 2011 Page 14

15 General contracting / Services revenues and EBIT Record EBIT in 2nd half of the year in CHF million IFRS revenue EBIT before special charges EBIT before special charges 1, , % % % % % 3.0% 2.5% 2.0% 1.5% 1.0% 0.5% HY2 HY1 HY2 HY1 EBIT before special charges EBIT margin Implenia Corporate Center March 2011 Page 15

GC / Services Regional distribution and orders as of 28.2.2011 2011 volumes secured in CHF million Production output 29% 2% 33% West (379.8m) Central (268.3m) East (131.8m) 12% 24% Zurich (335.

16 GC / Services Regional distribution and orders as of volumes secured in CHF million Production output 29% 2% 33% West (379.8m) Central (268.3m) East (131.8m) 12% 24% Zurich (335.2m) Reuss (21.6m) Maintower, Zurich Order book Feb Feb West Secured revenue 94.9% Central East % Zurich Reuss TOTAL order book 1' ' % Implenia Corporate Center March 2011 Page 16

17 Real estate (project development) invested capital and EBIT ROIC 18.1% in CHF million Invested capital SIMMO Implenia ex. SIMMO EBIT before special charges HY2 HY % EBIT before special charges / ROIC (like for like) % % % % 2009 EBIT before special charges ROIC (like for like) % % 20.0% 15.0% 10.0% 5.0% 0.0. Implenia Corporate Center March 2011 Page 17

18 Real estate (project development) development projects Good, regionally well distributed portfolio Winterthur Implenia Corporate Center March 2011 Page 18

19 Infrastructure Revenue and EBIT Record result in CHF million IFRS revenue EBIT before special charges EBIT before special charges 1, , % % % % 4.0% 3.5% 3.0% 2.5% 2.0% % % 1.0% 0.5% 0.0 HY2 HY1 HY2 HY1 EBIT before special charges EBIT margin Implenia Corporate Center March 2011 Page 19

Infrastructure Regional breakdown and order book as of 28.2.2011 Excellent regional anchoring in CHF million Production output 24% 26% West (322.2m) East/Zurich (344.8m) 7% 13% 15% 14% Alps (194.

20 Infrastructure Regional breakdown and order book as of Excellent regional anchoring in CHF million Production output 24% 26% West (322.2m) East/Zurich (344.8m) 7% 13% 15% 14% Alps (194.2m) Central (205.2m) Engineering (177.7m) Other (100.8m) Pont de le Poya, Fribourg Order book Feb Feb Secured revenue West % East/Zurich Alps Central Engineering Miscellaneous TOTAL order book % % 2013 Implenia Corporate Center March 2011 Page 20

21 Tunnelling Revenue and EBIT High production output in CHF million IFRS revenue EBIT before special charges % % EBIT before special charges % 17.8% 16.2% % 25.0% 20.0% 15.0% % 5.0% HY2 HY1 HY2 HY1 EBIT before special charges EBIT margin Implenia Corporate Center March 2011 Page 21

Tunnelling Regional distribution and orders as of 28.02.2011 2011 secured in CHF million Production output 50% 2% 16% 32% West (53.2m) D- Switzerland (107.6m) Alps/NEAT (168.7m) Abroad (6.

22 Tunnelling Regional distribution and orders as of secured in CHF million Production output 50% 2% 16% 32% West (53.2m) D- Switzerland (107.6m) Alps/NEAT (168.7m) Abroad (6.1m) Cross-City Link, Zurich Order book Feb Feb West German-speaking Switzerland Alps (inc. NEAT) Abroad TOTAL order book Secured revenue 93.3% 51.4% 26.3% Implenia Corporate Center March 2011 Page 22

23 Prime Buildings Revenue and EBIT First results take effect in CHF million IFRS revenue EBIT before special charges EBIT before special charges HY2 HY2 EBIT before special charges HY1 HY1 Implenia Corporate Center March 2011 Page 23

Sanpaolo, Turin Sochi Stadium, Russia Order book Feb. 2011 Feb.

24 Prime Buildings Order book as of Turin: a highlight in CHF million New headquarters of Banca Intesa Sanpaolo, Turin Sochi Stadium, Russia Order book Feb Feb Prime Buildings TOTAL order book Secured revenue 73.5% 70.1% 31.3% Implenia Corporate Center March 2011 Page 24

25 Key figures and operating income Operating income in CHF million /- in % Real estate % Infrastructure % Industrial construction % Holding overhead costs and special charges % TOTAL operating income % 3.3% 3.0% Implenia Corporate Center March 2011 Page 25

26 Annual Financial Statements IFRS Reporting Implenia Corporate Center March 2011 Page 26

27 Holding cost and special charges No more burden from special charges in CHF million ,000 2, ,500-5,000-7,500-10,000-12,500-15, Holding overhead costs IAS 19 0 Special charges Immat. depreciation 661 Impact on operating income 5,000 2, ,500-5,000-7,500-10,000-12,500-15, Holding overhead costs IAS Special charges Immat. depreciation Impact on operating income Implenia Corporate Center March 2011 Page 27

28 Operating income Group earnings CHF 50 million exceeded in CHF million /- in % Real estate % Infrastructure % Industrial construction % Holding overhead costs and special charges % TOTAL operating income % 3.3% 3.0% Financial income (net) % Taxes % Consolidated profit % 2.2% 2.1% EBITDA % 4.7% 4.6% Implenia Corporate Center March 2011 Page 28

29 Income statement key figures Continuation of positive earnings trends in CHF million % % EBITDA % 4.7% 4.2% % 5% 4% 3% 2% 1% 0% % % Group earnings % % % % 3% 2% 1% 0% -1% -2% EBITDA margin HY2 Privera sale HY1 Margin HY2 Privera sale HY1 Implenia Corporate Center March 2011 Page 29

30 Balance sheet assets High liquidity working capital under control in CHF million /- in % Cash and cash equivalents, securities Real estate operations Other current assets Total current assets 1' ' % Total non-current assets % Total ASSETS 1' ' % Implenia Corporate Center March 2011 Page 30

31 Balance sheet liabilities Financing secured for the next five years in CHF million /- in % Current financial liabilities Other current liabilities Total current liabilities % Non-current financial liabilities Deferred taxes, provisions Total non-current liabilities % Equity and non-controlling interests % Total LIABILITIES 1' ' % Implenia Corporate Center March 2011 Page 31

32 Cash flow statements Implenia as a cash machine in CHF million in CHF million /- in % Consolidated profit % Depreciation / non-cash expenses Movement in net current assets Interest / taxes / miscellaneous Cash flow from operating activities % Investment activities Acquisition of businesses (Sulzer Immob. AG) Cash flow from investment activities % Free cash flow % Acquisition of businesses (Sulzer Immob. AG) Free cash flow (like for like) % Implenia Corporate Center March 2011 Page 32

33 Return on invested capital (ROIC) Sustainable value creation! in CHF million % 19.9% % % 20.0% 15.0% % 9.6% 9.4% 9.4% 9.3% 10.0% % 7.4% 5.0% % Invested capital ROIC (operating income/invested capital) Pre-tax WACC Implenia Corporate Center March 2011 Page 33

34 Media and Financial Analysts' Conference Analysis of annual results for 2010 and outlook Implenia Corporate Center March 2011 Page 34

35 Assessment of the 2010 annual results Implenia is well on track Strong market position High level of good quality orders Operationally on the right track Good productivity trend of construction activities Project development underway at a level above CHF 20 million Situation for renovations corrected, solide 2nd half for GC Tunnelling highly profitable in Switzerland International business clearly better Holding cost and special charges well under control Strong balance sheet Broader based financing with good capital base High net liquidity Excellent cash flow Implenia Corporate Center March 2011 Page 35

36 Order intake since the end of July 2010 Well diversified in CHF million Project City Division Volume in Mio. CHF Wohnüberbauung Le Nouveau Prieuré Genève Real Estate 57.4 Bürogebäude Centre CSS Romandie Lausanne Real Estate 41.4 Wohn- und Gewerbeüberbaung Areal Brückenweg Visp Real Estate 38.6 Wohnüberbaung Birnbäumen St.Gallen Real Estate 26.4 UBS Branch Format ganze Schweiz Real Estate 24.3 Wohnüberbauung Wiesental Horgen Real Estate , projects projects 1,281 3,186 Wohnüberbauung Centralpark Dietikon Real Estate 21.9 Wohn-/Geschäftshaus Liebefeld K5 Bern Real Estate 21.2 Fabrikumbau Usine 56, Philip Morris International Neuchâtel Real Estate 17.2 Fabrik- und Verwaltungsgebäude Electrolux Sursee Real Estate 16.0 Centre socio-cultures Ecublens Real Estate 13.3 Gewerbeüberbauung Murtenstrasse Bern INFRA 12.9 Geschütztes Wohnen Le Croset - Résidence du Bois Ecublens Real Estate 12.7 Wohnüberbauung Résidence des vignes La Neuveville Real Estate 12.3 Überbauung Brückenweg Visp INFRA 11.9 Al Ain Asset Enhancement Al Ain (Emirat Abu Dhabi) IIC 11.7 Bahngallerie Arge GEZIM, Zen Hohen Flühen Bitsch INFRA * 11.5 Aufstockung Technopark Zürich Zürich Real Estate 11.2 Wohnüberbauung Kolbenstrasse Emmen Real Estate 10.9 Order intake projects > CHF 10 million Order intake projects < CHF 10 million order book revised since Wohnüberbauung Residenza Giardino Minusio Real Estate 10.6 Kindekrippe NEMO, Crèche Philip Morris Int. Boudry Real Estate 10.5 Wohnüberbauung Mürgelistrasse Zuchwil Real Estate 10.2 TOTAL At end- July 2010 At end- Feb 2011 * execution in joint ventures Implenia Corporate Center March 2011 Page 36

37 Order book as of Orders assured good quality in CHF million Order book Feb Feb Secured revenue 79.5% Real estate 1' '790.0 Infrastructure Industrial construction % TOTAL order book 3' ' % Order book by customer category as % Trend in orders 40% 22% in PK nur Jahreswerte! 3,500 3,000 2,500 3,186 2,000 External External AAA Public sector and agencies 38% 1,500 Feb 2007 Feb 2008 Feb 2009 Feb 2010 Feb 2011 Implenia Corporate Center March 2011 Page 37

38 Outlook Confidence for 2011 Market in 2011 No significant changes of the economic condition of the construction industry - Stable high-level demand in civil engineering and infrastructure works - Building construction/ residential construction stable thanks to continued high demand Increased regional differences 2011 Outlook Optimism because of full order books (= our main indicator) We continue to pursue our strategy consistently Further improvements are possible in all divisions - systematic risk, claim and cost management - Standardization of processes Medium term target of CHF 100 million in operating income confirmed Implenia Corporate Center March 2011 Page 38

39 Media and Financial Analysts' Conference Other topics Implenia Corporate Center March 2011 Page 39

40 Investigation by the Competition Commission (COMCO) Internal investigation completed and conclusions drawn Background COMCO has been investigating the Implenia branch in Buchs (Aargau) since as well as numerous other road and civil engineering companies in the canton of Aargau to determine whether competition regulation has been violated Implenia is cooperating with COMCO Internal investigation and consequences Our internal investigation has been finalized The concerned employees has been transferred internally or issued written warnings Internal control processes have been modified and strengthened Our position We clearly advocate open competition and are against practices that hinder competition Implenia Corporate Center March 2011 Page 40

41 Organisation Personnel changes New Board members Strengthening the sustainability, industrial and financial expertise of the Implenia Board of Directors Moritz Leuenberger Theophil Schlatter Changes in Group Management Peter Bodmer (Co-Head of the Industrial Construction Division) is leaving Implenia New management responsibilities will be communicated in due course Implenia Corporate Center March 2011 Page 41

42 General Meeting of 19 April 2011 Further proposals to the shareholders Compensation report Consultative ballot will be taken for the first time In accordance with recommendations from Ethos Foundation Dividend Dividend increased from CHF 0.70 to CHF 0.90 per share Payment once again in the form of a par-value reduction Implenia Corporate Center March 2011 Page 42

43 Performance of Implenia shares SPI outperformed by 63% TSR: 12.6% Dividend yield: 2.8% (4.2%) Δ = 10% Δ = 63% Implenia Corporate Center March 2011 Page 43

44 Disclaimer THESE MATERIALS DO NOT CONSTITUTE OR FORM PART OF ANY OFFER TO SELL OR ISSUE, OR ANY SOLICITATION OR INVITATION OF ANY OFFER TO PURCHASE OR SUBSCRIBE FOR, ANY SECURITIES, NOR SHALL PART, OR ALL, OF THESE MATERIALS OR THEIR DISTRIBUTION FORM THE BASIS OF, OR BE RELIED ON IN CONNECTION WITH, ANY CONTRACT OR INVESTMENT DECISION IN RELATION TO ANY SECURITIES. THE MATERIALS MIGHT CONTAIN FORWARD-LOOKING STATEMENTS BASED ON THE CURRENTLY HELD BELIEFS AND ASSUMPTIONS OF THE MANAGEMENT OF IMPLENIA AG (THE "COMPANY", AND TOGETHER WITH ITS SUBSIDIARIES, THE "GROUP"), WHICH ARE EXPRESSED IN GOOD FAITH AND, IN THE MANAGEMENT S OWN OPINION, REASONABLE. FORWARD-LOOKING STATEMENTS INVOLVE KNOWN AND UNKNOWN RISKS, UNCERTAINTIES AND OTHER FACTORS, WHICH MAY CAUSE THE ACTUAL RESULTS, FINANCIAL CONDITION, PERFORMANCE, OR ACHIEVEMENTS OF THE GROUP, OR INDUSTRY RESULTS, TO DIFFER MATERIALLY FROM THE RESULTS, FINANCIAL CONDITION, PERFORMANCE OR ACHIEVEMENTS EXPRESSED OR IMPLIED BY SUCH FORWARD-LOOKING STATEMENTS. GIVEN THESE RISKS, UNCERTAINTIES AND OTHER FACTORS, RECIPIENTS OF THIS DOCUMENT ARE CAUTIONED NOT TO PLACE UNDUE RELIANCE ON THESE FORWARD-LOOKING STATEMENTS. THE GROUP DISCLAIMS ANY OBLIGATION TO UPDATE THESE FORWARD-LOOKING STATEMENTS TO REFLECT FUTURE EVENTS OR DEVELOPMENTS. OPINIONS AND FORWARD-LOOKING INFORMATION PRESENTED HEREIN ARE BASED ON GENERAL INFORMATION GATHERED AT THE TIME OF WRITING. Implenia Corporate Center March 2011 Page 44

Media and Financial Analysts Conference

Media and Financial Analysts Conference Dietlikon, 1 September 2011 Hp. Fässler / B. Fellmann / A. Henniger Interim Financial Statements 2011 Swiss Construction and Real Estate Market Implenia Corporate