Media and Financial Analysts Conference

Transcription

1 Media and Financial Analysts Conference Dietlikon, 1 September 2011 Hp. Fässler / B. Fellmann / A. Henniger

2 Interim Financial Statements 2011 Swiss Construction and Real Estate Market Implenia Corporate Center September 2011 Page 2

3 Swiss real estate market Record low mortgage rates home ownership makes sense Historical mortgage interest Rates Ownership premium in percent Quotient < 1: The annual net cost of a condominium is less than the cost of renting a comparable apartment Source: Swiss National Bank, Datastream Source: Credit Suisse Economic Research Implenia Corporate Center September 2011 Page 3

4 Swiss real estate market Vacancies in the core regions remain low Locational quality and vacancy rates 2010 Source: Credit Suisse Economic Research, Geostat Implenia Corporate Center September 2011 Page 4

5 Swiss real estate market Sustained demand Breakdown of building permits by type of use Number of residential units Source: Schweizer Baublatt, Credit Suisse Economic Research Implenia Corporate Center September 2011 Page 5

6 Q = 100 Swiss real estate market No indications of overheating Real estate price indices (real terms) Rental apartments, total Condominiums Single-family homes Office space Commercial permises Disposable income Source: Wüest & Partner, UBS WMR Implenia Corporate Center September 2011 Page 6

7 Swiss construction market Fundamentals are good but still low prices/earnings expected Market participants are confident about volumes... but sceptical about selling prices and earnings This is how sector players see the future of construction volumes selling prices earnings higher Q4 10 Q1 11 Q2 11 Q3 11 Q4 10 Q1 11 Q2 11 Q3 11 Q4 10 Q1 11 Q2 11 Q unchanged lower Max = 100 / Min = -100 Source: UBS outlook Schweiz, 3. Quartal 2011 Implenia Corporate Center September 2011 Page 7

8 Swiss construction market No trend reversal expected Civil works Constant investment activity in the public sector Infrastructure renewal Upside potential for investment in the energy sector (hydroelectric power stations etc.) Buildings Fundamentals still intact low interest very low vacancies strong demand Regional differentiation in terms of competition over prices/margins Implenia Corporate Center September 2011 Page 8

9 Interim Financial Statements 2011 Highlights and key figures Implenia Corporate Center September 2011 Page 9

10 Highlights Business model proving its worth major objectives achieved Performance General Contracting: best interim results ever Project Development: good project pipeline Industrial Construction: solid progress made, with good performance on the Gotthard Infrastructure Construction: well below expectations Major objectives achieved Project Development: expanded portfolio Foundations laid for improved claims management Groupwide standardized salary system in introduction Expansion Acquisition in Norway second home market for tunnelling Order successes in the Middle East with micro tunnelling Real Estate: strengthened market presence in central Switzerland Roadmap to the first Implenia sustainability report Implenia Corporate Center September 2011 Page 10

11 Key figures and operating income Key figures for the Group in CHF millions June 2011 June /- in % Consolidated revenue 1' ' % EBIT before special charges % Operating income % 1.1% 1.8% Consolidated profit % 0.4% 1.2% Implenia Corporate Center September 2011 Page 11

12 General Contracting / Services revenue and EBIT High revenue, record EBIT in CHF millions Revenue (IFRS) EBIT before special charges % % % 1.8% % 1.7% 2.5% 2.0% 1.5% 1.0% 2 0.5% % Implenia Corporate Center September 2011 Page 12

13 General Contracting / Services order books as at Still at a high level in CHF millions Order book June 2011 June 2010 Secured revenue Secured revenue in % West Central East Zurich Reuss TOTAL order book 1' ' % 66.3% 17.3% High-performance data centre at ETH Zurich, Lugano Europaallee, Baufeld E, Zurich Implenia Corporate Center September 2011 Page 13

14 Real Estate (Project Development) invested capital and EBIT Portfolio expanded in CHF millions Invested capital EBIT before special charges Implenia Corporate Center September 2011 Page 14

15 Real Estate (Project Development) development projects Promising second half-year Winterthur Legend Property in the Implenia portfolio Project earnings realized in H Project earnings forecasted for H The circle sizes reflect the project earnings achieved or forecasted Implenia Corporate Center September 2011 Page 15

16 Tunnelling revenue and EBIT Strong performance! in CHF millions Revenue (IFRS) EBIT before special charges % 35% % 20.5% % % % 30% 25% 20% 15% 5 10% 5% % Implenia Corporate Center September 2011 Page 16

17 Tunnelling order book as at Reduction in line with expectations in CHF millions Order book June 2011 June 2010 West German-speaking Switzerland Alps (incl. NEAT) Abroad TOTAL order book Secured revenue 98.7% 51.0% Secured revenue in % 28.1% Microtunnelling project, Al Ain (Abu Dhabi, UAE) A8 tunnel bypass, Lungern Implenia Corporate Center September 2011 Page 17

18 Prime Buildings revenue and EBIT Further improvement in CHF millions Revenue (IFRS) EBIT before special charges Implenia Corporate Center September 2011 Page 18

19 Prime Buildings order book as at Torre Turin in CHF millions Order book June 2011 June 2010 Prime Buidlings TOTAL order book Secured revenue 99.6% 80.5% Secured revenue in % 60.9% Torre Banca Intesa San Paolo, Turin (IT) Central Olympia Stadium, Sochi (RUS) Implenia Corporate Center September 2011 Page 19

20 Infrastructure Construction revenue and EBIT EBIT slumped in the first half-year in CHF millions Revenue (IFRS) EBIT before special charges % -1.2% -1.5% -1.3% 0.0% -0.5% -1.0% -1.5% % -2.0% -2.5% -3.0% -3.5% % -4.5% Implenia Corporate Center September 2011 Page 20

21 Infrastructure Construction analysis of EBIT decline Price and margin pressure, and project management errors in CHF millions Prior-year result Lack of CM as a result of lower volumes (Zurich, Basel) Project losses Building Zurich Margin pressure in specialist fields (competitors from abroad) Forex effects Works Efficiency improvements Result Implenia Corporate Center September 2011 Page 21

22 Infrastructure Construction - situation analysis Positive and negative trends Market segment Civil works Buildings Foundation engineering Civil engineering Current environment Measures Trends Constant public-sector investment Fierce price competition in certain regions Opportunities in infrastructure renewal Healthy real estate market Very low entry barriers result in price and volume competition More vigorous international competition (forex problem) Importance of equipment capacity utilization Constant market volume Opportunities in infrastructure renewal (incl. energy sector) Further optimizations in equipment Exploit economies of scale Adjust capacities in the centres Maintain services in the regions (full service provider) Make further improvements / optimizations to equipment utilization Exploit economies of scale Enhance expertise Implenia Corporate Center September 2011 Page 22

23 Infrastructure Construction - situation analysis Colossal pressure on the price front Analysis of rejected tenders in the Bern, Solothurn region 1st half of 2011 Tender prices average 17.1 % below those of the same period in the previous year difference most expensive to best offer2 difference Implenia to best offer calc. CM Implenia 100% 80% 60% 40% 20% 0% Implenia Corporate Center September 2011 Page 23

24 Infrastructure Construction list of measures Numerous measures have been initiated Measures initiated: Transfer of capacities Structural adjustments Headcount adjustments in sustainably unprofitable markets Optimization of purchasing abroad Transfer of product mix Flexibilization of fixed costs (equipment) Implenia Corporate Center September 2011 Page 24

25 Infrastructure Construction headcount Headcount adjustments primarily in Buildings segments Total, last 12 months 12% 6% 82% reduction in temporary staff reduction in permanent staff remaining headcount Headcount of Infrastructure Construction, total 4,960 July perm +/- staff -168 temp 4,870 July 2011 Basel Berne Zurich 13% 4% 5% 27% 10% Implenia Corporate Center September 2011 Page 25

26 Infrastructure Construction order book as at Discipline is key to winning orders in CHF millions Order book Juni 2011 Juni 2010 West East / Zurich Alps Central Civil engineering TOTAL order book Secured revenue 83.0% 23.5% Secured revenue in % 2.3% Electrolux Professional AG, Sursee NEAT lots 033 and 041, Erstfeld Implenia Corporate Center September 2011 Page 26

27 Interim Financial Statements 2011 IFRS reporting Implenia Corporate Center September 2011 Page 27

28 EBIT Operating income Consolidated earnings Below the previous year in CHF millions June 2011 June /- in % EBIT divisions % Holding costs and special charges Operating income % 1.1% 1.8% Financial result (net) Profit before tax % 0.6% 1.5% Tax Consolidated profit % 0.4% 1.2% Implenia Corporate Center September 2011 Page 28

29 Income statement Key figures Heavily seasonal in CHF millions Consolidated earnings EBITDA % % % % % 5% 4% 3% 2% 1% 0% % % % 4.7% % 7% 6% 5% 4% 3% 2% 1% 0% Margin Sale of Privera HY2 Margin Sale of Privera HY2 Implenia Corporate Center September 2011 Page 29

30 Balance sheet Assets High liquidity NWC under control in CHF millions June 2011 June /- in % Cash and cash equivalents, securities Debtors / work in progress Real estate operations Other current assets Total current assets 1' ' % Total non-current assets % Total ASSETS 1' ' % Implenia Corporate Center September 2011 Page 30

31 Balance sheet Liabilities Equity ratio at a good 30% in CHF millions June 2011 June /- in % Current financial liabilities Creditors / work in progress Other current liabilities Total current liabilities % Non-current financial liabilities Deffered taxes, provisions Total non-current liabilities % Equity and non-controlling interest % Total LIABILITIES 1' ' % Implenia Corporate Center September 2011 Page 31

32 Cash flow statements Reduction in advance payments 12.5 in CHF millions 2010: Result 4.2 Change in NWC (excl. advance payments and real estate transactions) Change in advance payments Cash flow for real estate transactions Non-monetary and other transactions Cash flow investments Free cash flow 2011: Implenia Corporate Center September 2011 Page 32

33 Currency situation Very small exposure Assets Liabilities Revenue 6.6% 4.1% 9.3% 3.4% 2.9% 2.9% 89.4% 87.3% 94.2% share FX excl. NOK share FX NOK share CHF Currency translation effect (equity) CHF 2.6 mn 1 Currency transaction effect (P/L) CHF 0.2 mn 1 incl. CHF 51 mn in intercompany loans Implenia Corporate Center September 2011 Page 33

34 Interim Financial Statements 2011 Acquisition of Betonmast Anlegg AS Implenia Corporate Center September 2011 Page 34

35 Acquisition of Betonmast Anlegg AS Strong player with firm roots Concrete pole locations 1. Oslo head office 2. Bergen 3. Sandnes 4. Ålesund 5. Trondheim Logistical locations 1. Sande i Vestfold 2. Hakadal 246 strong Vikings Employees No. Ø age White collar years women 13 n/a men 96 n/a Blue collar years women 0 n/a men 137 n/a TOTAL years Implenia Corporate Center September 2011 Page 35

36 Acquisition of Betonmast Anlegg AS Activities Tunnelling 107 Volume in EUR mn Civil engineering E 2011 Revenue breakdown by divisions 1 39% 7% 41% Tunnelling Road building Civil engineering Road building Other 14% 1 Base: 2010 revenue Implenia Corporate Center September 2011 Page 36

37 annual avarage, in NOK millions Acquisition of Betonmast Anlegg AS Norway an attractive market with growth potential Constant growth in construction market volumes of approx. NOK 45 bn, based on and supported by a strong Norwegian economy public-sector economic initiatives during the financial crisis of 2010 National Transport Plan The Norwegian infrastructure construction is picking up National Transport Plan : an investment in the Norwegian future Roads (incl. bridges and tunnels) Power & energy Railways 25'000 20'000 15'000 10'000 5'000 Road Railway Quelle: Prognosesenteret AB Quelle: Norwegian Ministry of Transport an Communications, National Transport Plan Implenia Corporate Center September 2011 Page 37

38 Acquisition of Betonmast Anlegg AS The perfect WIN WIN situation Compensation for revenue from expiring NEAT lots Consistent implementation of international strategy in the area of infrastructure and tunnel construction Amalgamation with partner to finance its growth strategy Lack of expertise on major projects Insufficient logistical capacities Major-project expertise TBM technology Logistics Resources (manpower, financing) Win-win situation Market presence, contacts Reputation Market knowledge Technical specialists In Norway arises a new, powerful construction services provider with growth potential Implenia Corporate Center September 2011 Page 38

39 Interim Financial Statements 2011 Outlook Implenia Corporate Center September 2011 Page 39

40 Current order books Still high with good visibility 95.7% Secured revenue 49.6% 14.1% Implenia Corporate Center September 2011 Page 40

41 Outlook Good reasons for confidence The market in 2011 Struggle for volumes in building production Infrastructure construction still at a high level Intact demand for investment properties, location is crucial Regional differences are sharpening The outlook for business performance in 2011 High order books provide security General Contracting on levels Good, expanded portfolio for Project Development Tunnelling Switzerland: discernible improvements on the Gotthard Overseas business picking up speed, first consolidation of Norway Infrastructure Construction: an appealing H result despite strong headwinds Implenia Corporate Center September 2011 Page 41

42 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 September 2011 Page 42

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