Press Conference - Half-Year Report First Sustainability Report

Transcription

1 Press Conference - Half-Year Report First Sustainability Report Dietlikon 30 August 2012 A. Affentranger / B. Fellmann / M. Koschenz

2 Half-Year Report 2012 Highlights Implenia Investor Relations September 2011 Seite 2

3 Highlights First-Half of 2012 Favourable start success story continues in CHF millions 1. Best values EBITDA 43.2 million (+ 47.2%) Operating income 24.2 million (+ 96.5%) Consolidated profit 13.1 million (+211.1%) Operating income Seasonal cash outflow greatly reduced Net liquidity of 140 million 4. Full order books Implenia Corporate Center Page 3

4 Half-Year Report 2012 Swiss Construction and Real Estate Market Implenia Corporate Center Page 4

5 Construction Market Switzerland Volumes remain high strong infrastructure construction activities Real construction spending in Switzerland Real change in the construction Index Mrd. in CHF Franken billion Source: SBV Source: Credit Suisse AG, SBV Implenia Corporate Center Page 5

6 Construction Market Switzerland Funds are available 42% from public sector Government debt Breakdown of turnover in building industry Public Civil engineering Public Structural engineering Private Civil engineering Commercial construction Residential construction Year Source: Reuters EcoWin, OECD, UBS Quelle: Source: Schweizerischer SBV Baumeisterverband (SBV) Implenia Corporate Center Page 6

7 Real Estate Market Switzerland Fundamentals remain intact Interest rates Swiss Net Immigration Source: Reuters EcoWin, UBS Source: Swiss Federal Office for Migration, Swiss Federal Statistical Office, Credit Suisse Economic Research Vacancy rate in urban centres < 0.6 % (whole of Switzerland < 1.5%) Implenia Corporate Center Page 7

8 Real Estate Market Switzerland Boom but not overheated UBS Swiss Real Estate Bubble Index Prices compared to disposable income Index 1980 = Eigentumswohnungen Owner-occupied apartments Einfamilienhäuser Single-family houses Verfügbares Disposable income Einkommen Source: UBS Source: Wüest & Partner; BFS; UBS WMR Implenia Corporate Center Page 8

9 Renovation the Topic of the Future Sharp increase in renovation applications throughout Switzerland Applications for refurbishment projects: deviation in the volume of planning applications submitted in last 6 months from 10-year average, by economic region Source: Baublatt, Credit Suisse Economic Research, Geostat Implenia Corporate Center Page 9

10 Half-Year Report 2012 Key figures Implenia Corporate Center Page 10

11 Key figures and Operating income Excellent proof of performance in CHF millions June 2012 June /- in % Consolidated revenue 1' ' % EBIT divisions % Operating income % 2.0% 1.1% Consolidated profit % 1.1% 0.4% Implenia Corporate Center Page 11

12 GC/Services Revenue and EBIT Record level maintained in CHF millions Revenue EBIT % % % % % 3.0% 2.5% 2.0% 1.5% 1.0% 2 0.5% 0 0.0% Implenia Corporate Center Page 12

13 GC/Services Revenue and Orders at Pipeline well filled in CHF millions Revenue development Business Park Terre Bonne, Eysin Development of order book (Public sector share: 16%) Secured revenue actual year prior year ,8% 95,7% 62,0% 66,3% 17,5% 17,3% Implenia Corporate Center Page 13

14 GC/Services Major Projects Successfully renewed and better diversified regionally Europaallee Site A Parktower Buildings successfully handed over on 30.6 and full operations start mid-september Integrated business model fully applied Europaallee Site C JTI Successful replacement of major projects coming to an end planned completion February 2013 Construction started in August 2012, construction time approx. 2 ½ years Implenia Corporate Center Page 14

15 Real Estate (Project Development) Portfolio and EBIT Strong result sustained success confirms strategy in CHF millions Real estate portfolio EBIT ,3 8,9 10, ,2 2 1, HJ Implenia Corporate Center Page 15

16 Real Estate (Project Development) Regional Distribution From "West" to "East" EAST 18% EAST 9% 40% WEST ZURICH 15% 8% CENTRAL 60% WEST ZURICH 38% 13% CENTRAL Regionally balanced portfolio Focus on structurally strong areas around Lake Geneva and in the Zurich economic area Project development team strengthened Many projects at realisation stage in the Zurich area Consistent investment behaviour Growth in population ( ) Increased by: 9% and more 6-9% 3-6% Decrease in population 0-3% Implenia Corporate Center Page 16 Source: Wüest & Partner, BfS

17 Infrastructure Revenue and EBIT Back on Track despite the cold February in CHF millions Revenue EBIT % % % % % % -0.5% -1.0% -1.5% -2.0% -2.5% -3.0% -3.5% -4.0% -4.5% Implenia Corporate Center Page 17

18 Infrastructure Revenue and Orders at Outstanding order intake creates confidence in CHF millions Revenue development Bridge raising, Brüttiseller Kreuz Development of order book (Public sector share: 74%) Secured revenue actual year prior year ,8% 83,0% 22,5% 23,5% 9,5% 2,3% Implenia Corporate Center Page 18

19 Infrastructure Takeover of Locher Infrastructure modernisation as an important trend Modernisation of infrastructure topic of the future Acquisition of Locher Bauunternehmer AG Bundling of existing and new resources: Hydro Tunnel refurbishment Concrete repair Grinding/drilling Ambitious goals New management Proportion of new building, renovation and public maintenance Public maintenance Work renovation New building Source: BfS Implenia Corporate Center Page 19

20 Industrial Construction Revenue and EBIT Best performer: Tunnelling Switzerland in CHF millions Revenue EBIT % 35% % % % % % 30% 25% 20% 15% 10% 5% 0 0% Implenia Corporate Center Page 20

21 Industrial Construction Revenue / Orders at Declining market in Switzerland compensated by Norway in CHF millions Revenue development (IFRS) Gevingåsen Tunnel, Stjørdal Development of order book (Public sector share: 88%) Secured revenue actual year prior year ,4% 98,7% 46,9% 56,0% 31,1% 16,7% Implenia Corporate Center Page 21

22 Industrial Construction Tunnelling Revenue and EBIT Shrinking volumes but outstanding operational performance in CHF millions Revenue EBIT % % % % % 40% 35% 30% 25% 20% 15% 5 10% 5% 0 0% Implenia Corporate Center Page 22

23 Industrial Construction Tunnelling Middle East Start-up poses huge challenges A Muharraq project B Al Ain project Legend: Muharraq project Al Ain project A: Hub Middle East, Bahrain B: Abu Dhabi Branch Office Muharraq project Start Sept 2011, completion May 2013 Construction costs USD 11.5 million Al Ain project Start Feb 2011, completion end of March 2012 Construction costs USD 12.0 million Implenia Corporate Center Page 23

24 Industrial Construction Prime Buildings EBIT Break-even beyond reach new positioning in CHF millions EBIT 0,0-0,5-1,0-1,5-2,0-2,5-3,0-3,5-3,4-3,0-2,1-1,1-1,5 Currently part of Tunnelling Division Balancing resources therefore difficult Limited operational synergies Consultancy function only (except Torre in Turin) No critical mass New positioning being drawn up Implenia Corporate Center Page 24

25 Industrial Construction Norway 1 year following takeover Substantially improved market position Major successes: Performance of order book (in NOK million) Development of order book impressive, high hit rate Consolidation as of Exchange of personnel and know-how transfer between Switzerland and Norway Targeted acquisitions Attractive employer (good name in the market) Major projects currently under way: Brokke 470 million NOK, hydroelectric power plant E39 Bergen million NOK, tunnel and road construction (hybrid) Drammen million NOK, rail infrastructure FV 541 Bømlo million NOK, tunnel and road constr. (hybrid) Implenia Corporate Center Page 25

26 Half-Year Report 2012 IFRS reporting Implenia Corporate Center Page 26

27 EBIT Operating income Consolidated profit Financial performance clearly improved in CHF millions June 2012 June /- in % EBIT divisions % Miscellaneous / Holding Operating income % 2.0% 1.1% Financial result (net) Pofit before tax % 1.5% 0.6% Tax Consolidated profit % 1.1% 0.4% Implenia Corporate Center Page 27

28 Miscellaneous / Holding Group costs under control in CHF millions , ,949-2, ,328-3,389 Holdingoverhead/ Misc. costs IAS 19 Amortisation of intangible assets Impact on operating income Holdingoverhead/ Misc. costs IAS 19 Amortisation of intangible assets Impact on operating income Implenia Corporate Center Page 28

29 Income statement Key figures Record figures in CHF millions EBIT divisons Operating income HY2 Margin HY2 Margin 93,5 93,7 70,0 80,0 77,0 67,6 77,7 59,0 77,8 63,9 57,9 54,6 3,5% 3,7% 3,0% 3,2% 26,2 35,3 2,6% 57,2 3,0% 58,3 3,3% 81,3 3,7% 24,2 15,4 16,1 19,1 15,7 23,7* 10,5 19,4 12, * HY 1 Sale of Privera CHF 11.3 million Implenia Corporate Center Page 29

30 Income statement Key figures Trend continues in CHF millions Consolidated profit EBITDA HY2 Margin HY2 Margin 140,5 98,5 104,6 112,6 111,1 47,1 40,0 23,2 40,9 1,7% 2,1% 16,8* 6,2 52,5 40,0 2,2% 12,5 61,4 57,2 2,4% 4,2 13,1 54,8 4,2% 43,7* 75,5 4,6% 29,1 76,0 4,7% 36,6 5,6% 29,4 43, * HY 1 Sale of Privera CHF 11.3 million Implenia Corporate Center Page 30

31 Balance sheet Assets Cash is king in CHF millions June 2012 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 Page 31

32 Balance sheet Liabilities Project and income accruals greatly improved in CHF millions June 2012 June /- in % Current financial liabilities Creditors / work in progress Other current liabilites Total current liabilities 1' % Non-current financial liabilities Deffered taxes, provisions Total non-current liabilities % Equity and non-controlling interest % Total LIABILITIES 1' ' % Implenia Corporate Center Page 32

33 Group Financing New Syndicated Loan Funding secured for 5 years in CHF millions Cash facility via syndicated loan Use Credit line new: 150 from Guarantee facility via syndicated loan Use Credit line new: 350 from New syndicated loan Credit line confirmed for 5 years (150 million cash and 350 million guarantees) Step-up option bond refinancing guaranteed (cash +100 million / guarantees -100 million) Attractive conditions Clear oversubscription (19 banks) Other credit lines Further unused bilateral lines for around 25 million cash and around 150 million guarantees Implenia Corporate Center Page 33

34 Cash Flow Statements Seasonal cash outflow greatly reduced : in CHF millions Result Non-monetary transactions Change in advance payments Cash flow for real estate transactions Other changes in NWC Other transactions Cash flow investments Free-Cash-Flow 2011: Implenia Corporate Center Page 34

35 Half-Year Report 2012 Sustainability Report 2011 Implenia Corporate Center Page 35

36 Sustainability Implenia Sustainability Report 2011 "We want to create sustainable values." Implenia Corporate Center Page 36

37 Why sustainability? Our understanding the three circle model Society Environment Economy Implenia Corporate Center Page 37

38 Sustainability and our sector Environment Challenges Climate change Scarcity of resources (energy, water, etc.) Loss of biodiversity Environmental pollution Importance of the construction sector 30% of greenhouse gas emissions 40% of energy consumption 75 % of waste generated Implenia Corporate Center Page 38

39 Sustainability and our sector Society Challenges Health/safety Population growth Demographic change Mobile society Urbanisation Equal opportunities Importance of the construction sector Infrastructure Switzerland 3,400,000 apartments 1,500,000 buildings 70,000 km of streets 5,000 km railway track 50,000 accidents at work/year Implenia Corporate Center Page 39

40 Sustainability and our sector Economy Challenges Sustainable investors / shareholders Pressure of competition Lack of specialist employees Volatility of the markets Globalisation Importance of the construction sector CHF 55 billion turnover p.a. on average 1/3 public money 300,000 jobs Implenia Corporate Center Page 40

41 Sustainability Responsibility of the sector and of Implenia "What we do and do not do has a major impact on the environment, the economy and society at large." Implenia Corporate Center Page 41

42 Why sustainability? Because we take the needs of our stakeholders seriously The link between economic success and maintaining an intact environment and social responsibility is demonstrated in The wishes of a growing number of clients The personal aims of our current and future employees The aims of an increasing number of shareholders The function and commitment of our management Implenia Corporate Center Page 42

43 Implenia's Sustainability Report Our five key items Sustainable products and services Attractive working environment Handling the environment with care Social commitment and compliance Financial excellence - Client relationships - Products and services - Supplier relationships - Further training - Talent management - Work safety and health protection - Energy and resource efficient - Code of Conduct - Stakeholder dialogue - Communication - Support and sponsorship - Sustainable improvement in results Implenia Corporate Center Page 43

44 Sustainability Five Key items Implenia Corporate Center Page 44

45 First key item (1/2) Sustainable products and services "Make a contribution to core business" Goal Status in 2011 Activities by 2012/2013 Advise customers early and comprehensively Push ahead with initiation and realisation of sustainable construction projects Individual customer activities in the divisions Building Construction 4 pilot projects in planning Collaboration on Swiss Sustainable Construction Standard, SIA Efficiency Path 2040 (2000-Watt Society) GeNaB consistently applied to developments Civil Engineering and Infrastructure Construction Collaboration on initial formulation of «Sustainable Construction in Civil Engineering/ Infrastructure Construction started Launch group-wide key account management Building Construction Work on one «Swiss Sustainable Construction Standard» project Continuously check compliance with sustainability criteria in ongoing projects Keep developing and consistently applying GeNaB Civil Engineering and Infrastructure Construction Work on concrete «Sustainable Construction in Civil Engineering and Infrastructure» projects Implenia Corporate Center Page 45

46 First key item (2/2) Sustainable products and services "Make a contribution to core business" Goal Status in 2011 Activities by 2012/2013 Define and implement criteria for suppliers No activities yet Define, implement and review criteria for suppliers Intensify networking between divisions Know-how-transfer and cooperation in early project phases has been strengthened and put into practice in various projects Make «Sustainable Overall Construction» a reality based on Implenia s core competences Consistent cooperation between divisions Implenia Corporate Center Page 46

47 Example 1 Sustainable products and services Highlight "schorenstadt" pilot project Real Estate Award Project development Beacon project in the city of Basel, at the cutting edge of environmental thinking that meets the 2000-Watt Society criteria. Implenia Corporate Center Page 47

48 Second key item Attractive working environment "Ideal partner for our employees" Goal Status in 2011 Activities by 2012/2013 Recruit from within Succession planning launched Implement succession planning/talent management/icademy Use training and development to nurture employees CAS Construction Cost Planning launched Successfully implement CAS Construction Cost Planning Continue existing training and development offering Reduce number of occupational accidents and number of lost hours they cause «Vital rules on the building site» awareness campaign carried out Use training and control measures to reduce slips, trips and accidents involving tools and equipment Implenia Corporate Center Page 48

49 Example 2 Attractive working environment Highlight Construction Cost Planning GU/TU Development of the Certificate of Advanced Studies in cooperation with the Lucerne University. Implenia Corporate Center Page 49

50 Third key item Handling the environment with care "Securing resources for the future" Goal Status in 2011 Activities by 2012/2013 Record, and analyze the material, energy and waste flows that Implenia can influence, and take measures to reduce them Data recording concept mapped and implemented in SAP, staff trained in recording concept Interpret initial data, set reduction targets and implement reduction measures for 2013 Continue employee awareness raising campaigns Further develop energy and resource efficiency in production facilities Awareness campaigns carried out on energy, water and fuel Eco-Drive courses carried out for some machinery operators and office personnel Invest in asphalt mixing plant in Valais to preserve resources through hot recycling Carry out awareness campaigns to realise reduction targets Complete Eco-Drive courses for machinery operators and office personnel Use renewable energy for asphalt production Implenia Corporate Center Page 50

51 Example 3 Handling the environment with care Highlight reduction in fuel consumption Training for 75 lorry drivers. By using green driving methods 120,000 litres of diesel can be saved and CO 2 emissions reduced by 300 tonnes p.a. Implenia Corporate Center Page 51

52 Fourth key point Social commitment and compliance "Create trust" Goal Status in 2011 Activities by 2012/2013 Consolidate the Code of Conduct as part of corporate culture Code of Conduct completed; initial training Carry out consistent training via e-learning platform, revise Code of Conduct Include all stakeholders in dialog Further strengthening of dialog with employees, customers and shareholders Broaden dialog with society, thus making Implenia more tangible to the general public Create transparency about Implenia s sustainability activities Reporting concept developed, reporting started Start to formulate second sustainability report Implenia Corporate Center Page 52

53 Example 4 Social commitment and compliance Highlight interaction with stakeholder groups Broadly supported, direct contact with the public is vital for the success of a project. For this reason Implenia organises regular public viewings of its construction sites. Implenia Corporate Center Page 53

54 Fifth key item Financial excellence "Guarantee further development" Goal Status in 2011 Activities by 2012/2013 Create financial value («economic profit») Foundations laid for introduction of «Value-Oriented Management» Introduce Value-Oriented Management Economic Profit = Operating income after tax _ (NOPAT) (Invested Capital x WACC) Growth Cost efficiendy Capital efficiency Value drivers Implenia Corporate Center Page 54

55 Example 5 Financial excellence Highlight stamp of quality in the financial market Implenia has achieved the Kempen SRI Universe Standard. The stamp of quality for European companies who show exemplary commitment towards their employees, society and the environment. Implenia Corporate Center Page 55

56 Sustainability How to continue Implenia Corporate Center Page 56

57 Implenia's Sustainability Report Our current positioning... where do we want to go? Minimise risks Reduce costs Seek out competitive advantage Shape and transform Observe demands Increase efficiency Proactive attitude Sustainable work Focus on the reduction of risks Observe the minimum Adjust to the demands of the law, the market and society Backwardness re innovations Compliance Focus on cost reduction and increased productivity Clean technology Ecological efficiency Corporate policy Management systems Attract and retain talents Stakeholder commitment for innovations Sustainable processes and products Strengthens reputation and increases value Integration in the corporate culture Sustainability management Key figures and continuous improvements Always one step ahead Agenda setting Value conservation Generate added value Sustainable strategy today Future Based on PwC Implenia Corporate Center Page 57

58 Sustainability is our passion "With the development of sustainable solutions Implenia creates added value for all its stakeholders" Implenia Corporate Center Page 58

59 Half-Year Report 2012 Outlook Implenia Corporate Center Page 59

60 Outlook Confidence due to good order book in CHF millions Order book Juli 2012 Juli 2011 Real Estate 1' '620.6 Infrastructure Industrial Construction TOTAL order book 3' '967.1 Neugrüen, Mellingen Development of order book (Public sector share: 51%) Secured revenue as of July % (PY: 92.7%) 46.9% (PY: 47.8%) 15.0% (PY: 14.1%) Implenia Corporate Center Page 60

61 Outlook Consistent implementation of our strategy Initiatives Process optimisation Risk management as a core competence Increased client and marketorientation Growth initiatives Employee orientation Current activities Setup of central procurement with international competence Centralisation of Infrastructure logistics Apply "One Company" spirit New Enterprise Risk Management (ERM) Improved risk and project management in GC SAP as standard tool Group wide Optimised Group organisation Expansion of Account Management "Modernisation" of Building Construction and Infrastructure Expansion of resources in Norway (locally and from Switzerland) Health as a new focal topic Implenia Academy for Management Talent management and succession planning Implenia Corporate Center Page 61

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63 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. THE GROUP GIVES NO WARRANTY AND WILL NOT ACCEPT ANY LIABILITY FOR ANY DAMAGES WHATSOEVER (INCLUDING CONSEQUENTIAL OR INDIRECT DAMAGES OR LOST PROFIT) RELATING TO THE PROVIDED MATERIALS. Implenia Corporate Center Page 63