Upload
bernardini-schnyder-gmbh
View
220
Download
0
Tags:
Embed Size (px)
DESCRIPTION
Implenia Presentation for Analysts PC 10.3.2011
Citation preview
Financial Analysts' Conference
Zurich, 10 March 2011
A. Affentranger / Hp. Fässler / B. Fellmann
© Implenia | Corporate Center | March 2011 | Page 2
Annual Financial Statements December 2010Key points
© Implenia | Corporate Center | March 2011 | Page 3
Key points – Implenia in its 5th year
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
Systematically implemented strategy pays off
© Implenia | Corporate Center | March 2011 | Page 4
Numerous strategic and operational highlightsKey points – Implenia in its 5th year
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 5
Annual Financial Statements December 2010Construction and real estate market in Switzerland
© Implenia | Corporate Center | March 2011 | Page 6
A 50 billion (a year) industryStable trend over the last few years
0
5
10
15
20
25
30
35
40
45
50
55
60
65
1951
1953
1955
1957
1959
1961
1963
1965
1967
1969
1971
1973
1975
1977
1979
1981
1983
1985
1987
1989
1991
1993
1995
1997
1999
2001
2003
2005
2007
2009
CHF
billio
ns
Total real construction spending in Switzerland in CHF billions(based on 2006 CPI)Source: BfS (data), SBV (graphic))
1973 First oilshock
1979/80 Second oil shock
Investment bonus and housing law(1990 bis
1995)
Work starts on NEAT(1996)
© Implenia | Corporate Center | March 2011 | Page 7
Prices develop slower than costsMargin 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 c
ost in
dex i
n civi
l wor
ks(Q
1 200
2=10
0)
Price
and c
ost in
dex i
n buil
ding w
orks
(Q1 2
002=
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 8
Healthy price level for Swiss real estateReal estate prices in Switzerland
© Implenia | Corporate Center | March 2011 | Page 9
Real change in the construction indexAt 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 10
Regional breakdown of building expenditure 2010-2016
Source: BAKBASEL; ‘Hochbauprognose 2010 - 2016’
Growth 2010 in %Growth 2011 in %Growth 2012-2016 in %
Short and long term outlook
< -1-1 to 00 to 1
> 1
Growth construction in total 2010-2016 in % p.a.
Building constructionUneven trends across the country
© Implenia | Corporate Center | March 2011 | Page 11
Summary of construction and real estate market in Switzerland
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
Overall positive outlook
© Implenia | Corporate Center | March 2011 | Page 12
Annual Financial Statements 2010Key figures and operating income
© Implenia | Corporate Center | March 2011 | Page 13
Key figures and operating incomeHighlights
Operational§ Operating income (+ 14.8 %) 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 14
Key figures and operating income
in CHF million 2010 2009 +/- in %
Consolidated revenue 2'388.4 2'279.8 4.8%
EBIT before special charges 72.6 75.5 -3.8%
Operating income 77.7 67.6 14.8%
3.3% 3.0%
Consolidated profit 52.5 47.1 11.5%
2.2% 2.1%
Key group figures
© Implenia | Corporate Center | March 2011 | Page 15
General contracting / Services – revenues and EBITRecord EBIT in 2nd half of the year in CHF million
2010
1,137
501
636
2009
1,111
513
598
IFRS revenue
0
5
10
15
20
2.5%
2.0%
3.0%
1.5%
1.0%
0.5%
0.02010
15.4
1.4%
2009
17.4
1.6%
2008
15.5
1.4%
2007
10.2
0.9%
2006
12.1
1.0%
EBIT marginEBIT before special charges
EBIT before special charges
HY1HY2
6.1
2010
15.4
9.3
2009
17.4
9.1
8.3
EBIT before special charges
HY1HY2
© Implenia | Corporate Center | March 2011 | Page 16
Secured revenue
Production output
GC / Services – Regional distribution and orders as of 28.2.2011in CHF million
9.1%
57.8%
201320122011
94.9%
2%
29%
12%
33%
24%
East (131.8m)Central (268.3m)West (379.8m)
Reuss (21.6m)Zurich (335.2m)
Maintower, Zurich
2011 volumes secured
Order book Feb. 2011 Feb. 2010
West 700.0 551.7 Central 292.1 315.8 East 159.3 165.9 Zurich 586.0 743.6 Reuss 11.1 13.0
TOTAL order book 1'748.5 1'790.0
© Implenia | Corporate Center | March 2011 | Page 17
Real estate (project development) – invested capital and EBITROIC 18.1% in CHF million
65
2010
200
134
2009
178
Invested capital
0
5
10
15
20
25 30.0%
25.0%
20.0%
15.0%
10.0%
5.0%
0.0.2010
20.9
18.1%
2009
21.4
15.9%
2008
10.3
5.2%
2007
15.4
7.7%
2006
6.03.6%
ROIC (like for like)EBIT before special charges
EBIT before special charges / ROIC (like for like)
Implenia ex. SIMMOSIMMO
2010
20.9
10.3
10.6
2009
21.4
4.2
17.2
EBIT before special charges
HY1HY2
© Implenia | Corporate Center | March 2011 | Page 18
Winterthur
Good, regionally well distributed portfolioReal estate (project development) – development projects
© Implenia | Corporate Center | March 2011 | Page 19
Infrastructure – Revenue and EBITRecord result in CHF million
2010
1,201
535
666
2009
1,123
505
618
IFRS revenue
0
5
10
15
20
25
3025.1
2010
3.0%2.5%2.0%1.5%1.0%0.5%0.0
2.1%
2009
24.6
2.2%
2008
24.4
2.2%
2007
21.5
1.9%
2006
8.80.8%
4.0%3.5%
EBIT marginEBIT before special charges
EBIT before special charges
HY1HY2
2009 2010
-6.7
25.1
31.8
24.6
-7.4
32.0
EBIT before special charges
HY1HY2
© Implenia | Corporate Center | March 2011 | Page 20
Production output
in CHF million
1.3%11.7%
2011
55.2%
20132012
7%
13%15%
14%
26%24%
Other (100.8m)Engineering (177.7m)Central (205.2m)Alps (194.2m)East/Zurich (344.8m)West (322.2m)
Infrastructure – Regional breakdown and order book as of 28.2.2011Excellent regional anchoring
Order book Feb. 2011 Feb. 2010
West 188.5 215.4 East/Zurich 173.2 237.3 Alps 125.4 145.9 Central 90.5 107.8 Engineering 130.2 198.1 Miscellaneous 20.0 2.1
TOTAL order book 727.9 906.6
Pont de le Poya, Fribourg
Secured revenue
© Implenia | Corporate Center | March 2011 | Page 21
Tunnelling – Revenue and EBITHigh production output in CHF million
6669
2010
152
83
2009
137
71
IFRS revenue
0
5
10
15
20
25
30 30.0%
25.0%
20.0%
15.0%
10.0%
5.0%
0.52010
18.6
12.3%
2009
24.4
17.8%
2008
26.5
17.4%
2007
22.1
16.2%
2006
20.7
14.5%
EBIT marginEBIT before special charges
EBIT before special charges
HY1HY2
2010
18.6
11.5
7.1
2009
24.4
13.2
11.2
EBIT before special charges
HY1HY2
© Implenia | Corporate Center | March 2011 | Page 22
Production output
Cross-City Link, Zurich
26.3%
51.4%
201320122011
93.3%
2%
50%
16%
32% Abroad (6.1m)Alps/NEAT (168.7m)
West (53.2m)D- Switzerland (107.6m)
in CHF million
Tunnelling – Regional distribution and orders as of 28.02.20112011 secured
Order book Feb. 2011 Feb. 2010
West 260.8 248.3 German-speaking Switzerland 60.9 139.6 Alps (inc. NEAT) 285.1 365.4 Abroad 12.0 2.6
TOTAL order book 618.7 755.9
Secured revenue
© Implenia | Corporate Center | March 2011 | Page 23
Prime Buildings – Revenue and EBITFirst results take effect in CHF million
5
10
4
6
12009 2010
14
IFRS revenue
-8
-6
-4
-2
0
-3.1
20102007
-6.6
2008
-4.1
2006 2009
-7.9
EBIT before special charges
EBIT before special charges
HY1HY2
-3.0
-4.9
2009
-1.0
-7.9
-2.1
-3.1
2010
EBIT before special charges
HY1HY2
© Implenia | Corporate Center | March 2011 | Page 24
Prime Buildings – Order book as of 28.02.2011in CHF million
31.3%
70.1%
201320122011
73.5%
Sochi Stadium, RussiaNew headquarters of Banca Intesa Sanpaolo, Turin
Turin: a highlight
Order book Feb. 2011 Feb. 2010
Prime Buildings 91.1 4.6 TOTAL order book 91.1 4.6
Secured revenue
© Implenia | Corporate Center | March 2011 | Page 25
Key figures and operating incomeOperating income
in CHF million 2010 2009 +/- in %
Real estate 36.3 38.9 -6.5%
Infrastructure 25.1 24.6 1.9%
Industrial construction 15.6 16.5 -5.6%
Holding overhead costs and special charges 0.7 -12.4 105.4%
TOTAL operating income 77.7 67.6 14.8%
3.3% 3.0%
© Implenia | Corporate Center | March 2011 | Page 26
Annual Financial StatementsIFRS Reporting
© Implenia | Corporate Center | March 2011 | Page 27
Holding cost and special chargesNo more burden from special charges in CHF million
6615,0002,500
0-2,500-5,000-7,500
-10,000-12,500-15,000
Impact on operating income
Immat. depreciation
1.871
Special charges
0
IAS 19
6.880
Holding overhead
costs
-4.348
5,0002,500
0-2,500-5,000-7,500
-10,000-12,500-15,000
Impact on operating income
-12.328Immat.
depreciation
2.075Special charges
3.405
IAS 19
2.411
Holding overhead
costs
-4.437
2010 2009-
--
-
© Implenia | Corporate Center | March 2011 | Page 28
Operating income – Group earnings
in CHF million 2010 2009 +/- in %
Real estate 36.3 38.9 -6.5%Infrastructure 25.1 24.6 1.9%Industrial construction 15.6 16.5 -5.6%Holding overhead costs and special charges 0.7 -12.4 105.4%
TOTAL operating income 77.7 67.6 14.8%
3.3% 3.0%
Financial income (net) -9.6 -5.0 92.0%
Taxes -15.6 -15.6 0.0%
Consolidated profit 52.5 47.0 11.5%
2.2% 2.1%
EBITDA 112.6 104.6 7.6%
4.7% 4.6%
CHF 50 million exceeded
© Implenia | Corporate Center | March 2011 | Page 29
Income statement – key figures
23.8 32.4 29.1 36.618.0
11.3
020406080
100120
0%1%2%3%4%5%6%
2010
112.6
4.7%
2009
104.6
4.6%
2008
98.5
4.2%
2007
84.7
3.6%
2006
54.4
2.3%
HY1Privera saleHY2EBITDA margin
EBITDA
-11.95.5 12.56.211.3
-20-10
0102030405060
-2%
-1%
0%
1%
2%
3%
4%
2006
6.10.3%
2010
52.5
2.2%
2009
47.12.1%
2008
40.01.7%
2007
25.5
3.5
Privera saleHY1
MarginHY2
Group earnings
in CHF million
1.1%
Continuation of positive earnings trends
© Implenia | Corporate Center | March 2011 | Page 30
Balance sheet – assetsHigh liquidity – working capital under control
in CHF million 2010 2009 +/- in %
Cash and cash equivalents, securities 349.6 129.8
Real estate operations 218.0 168.7
Other current assets 733.9 725.8
Total current assets 1'301.5 1'024.3 27.1%
Total non-current assets 375.5 357.5 5.0%
Total ASSETS 1'677.0 1'381.8 21.4%
© Implenia | Corporate Center | March 2011 | Page 31
Financing secured for the next five yearsBalance sheet – liabilities
in CHF million 2010 2009 +/- in %
Current financial liabilities 1.6 42.2
Other current liabilities 903.6 871.7
Total current liabilities 905.2 913.9 -0.9%
Non-current financial liabilities 198.2 0.7
Deferred taxes, provisions 78.2 40.9
Total non-current liabilities 276.3 41.6 564.3%
Equity and non-controlling interests 495.5 426.3 16.2%
Total LIABILITIES 1'677.0 1'381.8 21.4%
© Implenia | Corporate Center | March 2011 | Page 32
Cash flow statements
in CHF million 2010 2009 +/- in %
Consolidated profit 52.5 47.1 11.5%
Depreciation / non-cash expenses 32.3 46.3
Movement in net current assets 57.6 31.0
Interest / taxes / miscellaneous -3.9 -5.2
Cash flow from operating activities 138.5 119.1 16.3%
Investment activities -31.5 -26.5
Acquisition of businesses (Sulzer Immob. AG) -67.1 -
Cash flow from investment activities -98.6 -26.5 272.3%
Free cash flow 39.9 92.7 -56.9%
Acquisition of businesses (Sulzer Immob. AG) 67.1 -
Free cash flow (like for like) 107.1 92.7 15.6%
Implenia as a cash machine in CHF million
© Implenia | Corporate Center | March 2011 | Page 33
Sustainable value creation!Return on invested capital (ROIC)
347.0340.4
386.6
522.1
358.0
050
100150200250300350400450500550
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
2010
9.3%
22.4%
2009
9.4%
19.9%
2008
9.4%
15.3%
2007
9.6%
7.4%
2006
9.5%
4.8%
ROIC (operating income/invested capital)Pre-tax WACC
Invested capital
in CHF million
© Implenia | Corporate Center | March 2011 | Page 34
Media and Financial Analysts' ConferenceAnalysis of annual results for 2010 and outlook
© Implenia | Corporate Center | March 2011 | Page 35
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
Assessment of the 2010 annual results
© Implenia | Corporate Center | March 2011 | Page 36
in CHF million
Order intake since the end of July 2010Well diversified
At end-Feb 2011
3,1861,281
516
427
At end-July 2010
3,52522 projects
975 projects
Orde
r int
ake p
rojec
ts
> CH
F 10
milli
on
Orde
r int
ake p
rojec
ts
< CHF
10 m
illion
orde
r boo
k rev
ised
since
1.8.2
010
Project City DivisionVolume
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 22.5 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 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 426.5
* execution in joint ventures
© Implenia | Corporate Center | March 2011 | Page 37
Orders assured – good quality
Secured revenue
8.0%
37.4%
201320122011
79.5%
in PK nur Jahreswerte!
Order book by customer category as %
40%
38%
22%
Public sector and agenciesExternal AAAExternal
3,500
3,000
2,500
2,000
1,500Feb 2011
3,186
Feb 2010
Feb 2009
Feb 2008
Feb 2007
Trend in orders
Order book as of 28.2.2011in CHF million
Order book Feb. 2011 Feb. 2010
Real estate 1'748.5 1'790.0 Infrastructure 727.9 906.6 Industrial construction 709.9 760.5
TOTAL order book 3'186.2 3'457.1
© Implenia | Corporate Center | March 2011 | Page 38
OutlookConfidence 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 39
Media and Financial Analysts' ConferenceOther topics
© Implenia | Corporate Center | March 2011 | Page 40
Background§ COMCO has been investigating the Implenia branch in Buchs (Aargau) since
10.6.2009 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
Investigation by the Competition Commission (COMCO)Internal investigation completed and conclusions drawn
© Implenia | Corporate Center | March 2011 | Page 41
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
OrganisationPersonnel changes
© Implenia | Corporate Center | March 2011 | Page 42
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
General Meeting of 19 April 2011Further proposals to the shareholders
© Implenia | Corporate Center | March 2011 | Page 43
SPI outperformed by 63%Performance of Implenia shares
Δ = 10%
Δ = 63%
TSR: 12.6%Dividend yield: 2.8% (4.2%)
© Implenia | Corporate Center | March 2011 | Page 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.