medien- und finanzanalystenkonferenz 2012 e

Media and Financial Analysts

Conference

Zurich, 6 March 2012

A. Affentranger / B. Fellmann

© Implenia | Corporate Center | March 2012 |

Media and Financial Analysts Conference

Highlights


Highlights 2011

"Best Year Ever"

Outstanding operating performance

1. Record figures

EBIDTA (+24.8%)

Operating income (+21.5%)

Consolidated profit (+17.0%)

2. Strong free cash flow

3. Excellent return on

invested capital (ROIC approx. 27%)

4. Full order book in all divisions

Operating income

77,7

67,6 3,7%

3,3%

93,7

2,6%

59,0

3,0%

38,7

1,6%

2009 2007 2011 2010 2008

in CHF millions


Goals

Ongoing optimisation of the

"integrated business model"

Cautious but systematic

expansion of project development

Operational challenges tackled Intensified both customer focus and risk management

Management team strengthened

Milestones achieved

Highlights 2011

Strategy systematically implemented

International growth

Sustainability brought to life

High-quality project portfolio expanded

Sulzer portfolio actively developed

Growing synergies

Successful project acquisition

Successful market entry in Norway

First projects executed at operational level in the Middle East

Numerous customer projects in realisation

Value-based Management


Swiss Construction and Real Estate Market



0

5

10

15

20

25

30

35

40

45

50

55

60

65

19

51

19

53

19

55

19

57

19

59

19

61

19

63

19

65

19

67

19

69

19

71

19

73

19

75

19

77

19

79

19

81

19

83

19

85

19

87

19

89

19

91

19

93

19

95

19

97

19

99

20

01

20

03

20

05

20

07

20

09

in C

HF

billio

n

Total real construction spending in Switzerland in CHF billions (based on 2006 CPI) Source: BfS (data), SBV (graphic))

A CHF 50 billion p.a. industry

Stable trend over the last few years


Real change in the construction index

At a high level, unchanged stable outlook


Interest rates trend Switzerland

Forecasts from January 2012

Outlook

Source: Thomson Reuters, UBS WMIR

Interest three-month investments, in %

Interest 10-year government bonds, in %

Historical low levels continue


Net immigration

Switzerland stays attractive


Vacancy rates

Total Swiss market < 1%

CH: 0.94%


» Sustained public investments

» Private sector

Low interest rates

Positive net migration

Despite strength of Swiss Franc, general

economic conditions remain optimum

In good shape

Conclusion to the Swiss construction and real estate market


Annual Financial Statements 2011

Key figures and operating income


in CHF million 20111 2010 +/- in %

Consolidated revenue 2'522.6 2'388.4 5.6%

Operating income 93.7 77.7 20.6%

3.7% 3.0%

Consolidated profit 61.4 52.5 17.0%

2.4% 2.2%

EBITDA 140.5 112.6 24.8%

5.6% 4.7%

Key figures and operating income

New records set

1 inclusive first consolidation Norway from 18.07.2011


General contracting / Services – revenue and EBIT

EBIT: 20 million mark reached

2011

1.188

555

633

2010

1.137

501

636

Revenue

2011

19,7

1,7%

2010

15,4

1,4%

2009

17,4

1,6%

2008

15,5

1,4%

2007

10,2

0,9%

EBIT margin

EBIT

EBIT / EBIT margin

HY 1

HY 2

2010 2011

19,7

9,4

10,3

15,4

6,1

9,3

EBIT

HY 1

HY 2

in CHF millions


Update Bild

Europaallee, Zurich

34,5%

9,6% 15,6%

2014

86,7%

2013 2012

84,8%

39,6%

prior year

actual year

17%

42%

41%

30%

13% 2%

38%

18%

Zurich (356.0m)

East (151.8m)

Reuss (18.6m)

West (445.9m)

Central (215.3m)

Public sector

and agencies

Third parties AAA

Third parties

Secured revenue

Production output

Order book by customer category

in CHF millions

GC / Services – regional distribution and orders at 31.12.2011

2012 volumes secured


Real Estate (project development) – Invested Capital and EBIT

ROIC clearly improved

183

2011

172

2010

Invested Capital EBIT / ROIC

2011

25,3

8,9

16,4

2010

20,9

10,3

10,6

EBIT

HY 1

HY 2

12,0%

2008

10,3

2011

25,3

5,7%

14,7%

2010 2007

20,9

11,4%

15,4

2009

21,4

7,7%

ROIC

EBIT

in CHF millions


Infrastructure – revenue and EBIT

Measures had an impact – "back on track"

Revenue EBIT / EBIT margin

-6,7 -7,4

EBIT

2,2%

2008

24,4

2011

18,1

2,2%

1,6%

2010 2007

25,1

2,1%

21,5

2009

24,6

1,9%

EBIT margin

EBIT

511

637

2010

1.201

2011

1.148

535

666

HY 1

HY 2

-12,8

30,9

2010

25,1

2011

18,1

-6,7

31,8

HY 1

HY 2

in CHF millions


Capital efficiency

+ 0,8

Cost efficiency

- 4,5

Growth

-10,0

Economic

Profit 2011

- 0,9

Economic

Profit 2010

-5,4

Infrastructure – "Economic Profit"

Price pressure continues in CHF millions


Infrastructure – further flexibilisation of fixed costs

Thanks to leased inventory, costs only occur if necessary

Advantages through outsourcing

Right product in the right place

Reduction of capacity pressure

No repair and maintenance costs

Reduction of investment

Reduction of warehouse /storage costs

Efficient deployment thanks to modern inventory

Cost reduction of approx. CHF 800,000 per year

Elimination of planned investments

of CHF 20-30 million

Proceeds from sales of cranes: CHF 4.5 million

Share of net asset value: approx. 5% Seasonality Production output

Production output over course of the year


Infrastructure – regional distribution and order book at 31.12.2011

Promising start thanks to good positioning

Pont de la Poya, Fribourg

2013

10,2% 13,7%

2012

45,1% 48,0%

prior year

actual year

61%

27% 12% Third parties

Public sector

and agencies

Third parties AAA

8%

14% 14%

14%

23% 27%

Others (38.9m)

Civil engineering whole

Switzerland (181.0m)

Alps (179.0m)

Central (183.3m)

East (296.4m)

West (350.7m)

Update Bild

Secured revenue

Production output


in CHF millions


Industrial Construction – revenue and EBIT

Tunnel our “gem"

80

2011

263

84

179

2010

166

86

Revenue EBIT / EBIT margin

HY 1

HY 2

2011

30,5

10,4

20,1

2010

15,6

9,4

6,2

EBIT

HY 1

HY 2

in CHF millions

12,6%

18,0

12,6%

19,9

(6,6)

(4,1)

2007

(2,3)

2010

9,4%

(3,1)

2009

11,5%

2011

(7,9)

2008

11,6%

EBIT margin

EBIT IIC

EBIT Tunnelling absolute

15,5

16,5

30,5


Tunnelling – EBIT performance

Growth abroad

0

5

10

15

20

25

30

35

20,0

2014 2013 2012 2011

32,8

8,1

Tunnel International Tunnel CH NEAT

Our target:

100 Mio. CHF

Contribution

Tunnelling 24,7

in CHF millions


Industrial Construction – growth market Norway

Strongly growing infrastructure market

Our service portfolio matches demand

Establishment of local branches in the growth

regions

Excellent platform for regional development in

Scandinavia

Compensates the NEAT revenues

Bergen

Stavanger

Ålesund

Trondheim

National Transport Plan 2010 – 2019

published by the Norwegian Ministry of Transport Infrastructure Investments

published by Prognosesenteret

Oslo West

South Oslo

Midt -

5'000

10'000

15'000

20'000

25'000

2002-2005 2006-2009 2010-2013 2014-2019

Ann

ual a

vera

ge ,

in

NO

K m

illio

n

Road

Railway

Inland

Implenia Norge well positioned


Microtunnelling-Project, Al Ain (Abu Dhabi, UAE)

75%

23%

2%

Switzerland (267.7m)

Norway (81.4m)

Other (7.1m)

Infrastructure trend remains

Tunnelling – regional distribution and order book at 31.12.2011

2014

54,6%

25,1%

2013

76,0%

58,5%

2012

87,2% 89,7%

prior year

actual year

Third parties

Public sector

and agencies

Secured revenue (like for like)

Production output


in CHF millions

2%

98%



Real Estate 44.9 36.3 23.7%

Infrastructure Construction 18.1 25.1 -27.8%

Industrial Construction 30.5 15.6 95.7%

EBIT Divisions 93.5 77.0 21.5%

3.7% 3.2%

EBIT per division

Summary


Annual Financial Statements 2011

IFRS Reporting



EBIT Divisions 93.5 77.0 21.5%

Miscellaneous / Holding 0.2 0.7

Operating income 93.7 77.7 20.6%

3.7% 3.3%

Financial result -12.0 -9.6

Tax -20.3 -15.6

Consolidated profit 61.4 52.5 17.0%

2.4% 2.2%

Operating income – consolidated profit

Result approximately 20% higher


Holding company and other

Holding costs under control

147

Impact on

operating

income

Amortisation

of intangible

assets

-2,818

Depreciations

of investment

property

-5,428

IAS 19

12,862

Holding-

overhead

costs

-4,469

2011

661

Impact on

operating

income

Amortisation

of intangible

assets

IAS 19

-4,348

Holding-

overhead

costs

6,880

Depreciations

of investment

property

0 -1,871

2010

in CHF millions


Income statement – key figures

Trend continues

EBITDA

2011

140,5

29,4

111,1

5,6%

2010

112,6

36,6

76,0

4,7%

2009

104,6

29,1

75,5

4,6%

2008*

98,5

43,7

54,8

4,2%

2007

84,7

24,2

60,5

3,6%

1st half-year 2nd half-year EBITDA margin

2011

61,4

4,2

57,1

2,4%

2010

52,5

12,5

40,0

2,2%

2009

47,1

6,2

40,9

2,1%

2008*

40,0

16,8

1,7%

2007

25,5

3,5

1,1%

Consolidated profit

* 1. Semester incl. sale of Privera CHF 11.3 million

22,0

23,2

in CHF millions

2nd half-year 1st half-year margin



Cash and cash equivalents, securities 403.0 349.6

Trade receivables 472.8 395.2

Work in progress / joint ventures 253.7 252.7

Real estate transactions 247.0 218.0

Other current assets 93.1 86.0

Total current assets 1'469.6 1'301.5 12.9%

Total non-current assets 418.1 375.5 11.3%

Total ASSETS 1'887.7 1'677.0 12.6%

Balance sheet – assets

Balance sheet growth


Required for:

Increased NWC as a result of

seasonal business

Investments in machinery and

land bank

Liquidity required for operations

Strategic developments

Balance sheet – liquidity

Cash is king in CHF millions

403

349

129118

47

31.12.2011 31.12.2010 31.12.2009 31.12.2008 31.12.2007



Current financial liabilities 3.8 1.6

Trade payables 272.5 217.3

Work in progress / joint ventures 604.4 543.4

Other current liabilities 166.9 142.9

Total current liabilities 1'047.6 905.2 15.7%

Non-current financial liabilities 205.3 198.2

Other non-current liabilities 91.3 78.1

Total non-current liabilities 296.6 276.3 7.3%

Equity and non-controlling interests 543.5 495.5 9.7%

Total LIABILITIES 1'887.7 1'677.0 12.6%

Balance sheet – liabilities

Financing secured throughout the next 4 years


Implenia generates cash and invests in disciplined manner

117,1

35,1

Interest/

tax/others

13,8

Real estate

transactions

47,0

Work in progress/

joint ventures

53,8

Liabilities

44,7

Receivables

(52,4)

Profit before

change in NWC

67,3

Free Cash Flow Investments

and M&A

Cash flow statements

2010: 101,7 (8,8) (17,8) 10,2 54,1 (0,9) (98,6) 39,9

in CHF millions


Remarkable value creation goes on

Return on Invested Capital (ROIC)

350.1346.0340.4

386.6

522.1

0

50

100

150

200

250

300

350

400

450

500

550

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

35.0%

40.0%

45.0%

2009

9.4%

19.9%

2008

9.4%

15.3%

2007

9.6%

7.4%

2011

9.5%

26.8%

2010

9.3%

22.4%

WACC before tax

ROIC (operating income / Invested Capital)

Invested Capital

in CHF millions


General Meeting of 4 April 2012



Dividend policy

Increased dividend follows

operational performance

Dividend

Sustainable and attractive

0,50

2011 2009

0,70

2008

0,90

2010

1,10

23,1%

31,7%

2008

27,5%

2009 2010

33,1%

2011

2011

4,70%

2010

2,80%

2009

2,40%

2008

1,70%

Payout ratio according to

dividend policy

Attractive dividend yield

Dividend in CHF per share


General Meeting of 4 April 2012

Board of Directors

Board members elected until 2013

Moritz Leuenberger

Theophil H. Schlatter

Board members for re-election

Markus Dennler

Hans-Beat Gürtler

Patrick Hünerwadel

No longer standing for re-election

Philippe Zoelly

Toni Wicki


Our development continues



Outlook

1.1

2011

2.7

1.3

0.3

2.7

1.4

2011

1.3

Breakdown Order intake

Order Intake

projects > 10m CHF

46 projects

Order Intake

projects < 10m CHF

2544 projects

GC/Reuss

Infrastructure

IIC (without

Norway)

1.2

1.0

0.2

2.5

2010

Order intake 2011

Projects City DivisionVolume in

CHF millions

Groupement Marti-Implenia (Zusatzauftrag NdD+) Wallis IIC 109.5

Parktower Zug Zug Real Estate 86.0

Baufeld E Zurich Real Estate 83.3

WüB Neugrüen Mellingen Mellingen Real Estate 78.9

ARGE GATE OERLIKON Zurich INFRA 76.5

Alterswohnungen City Gate Basel Basel Real Estate 34.3

WüB "Wright-House" Glattpark, Opfikon (Anlageteil) Opfikon Real Estate 33.5

Neubau Kestenholz Truck Center Pratteln Pratteln Real Estate 26.5

Kasernenareal Herisau Herisau Real Estate 26.3

Cité universitaire Genève Genève Real Estate 25.4

ARGE EquiTec Gotthard Los E Uri IIC 23.8

Ev. Alterssiedlung Masans, Chur Chur Real Estate 22.7

Muharraq Bahrain Bahrain IIC 21.1

WüB Due Torri, Locarno Locarno Real Estate 19.9

Riedmühlestrasse , Anlageteil Dietlikon Real Estate 19.3

ARGE Bahntechnik DML Zurich IIC 15.8

Vieux Emosson Staumauererhöhung Le Châtelard INFRA 15.8

Zentrumsüberbauung Seuzach, Winterthurerstrasse 1 Seuzach Real Estate 12.5

Zürich-Oerlikon, Gleis 7+8 Zürich INFRA 12.0

ARGE Kraftwerk Rüchlig, Los A Aarau INFRA 11.8

Total 754.9

Order intake > 10 million. CHF 2nd half-year 2011

in CHF billions


Good prospects – good quality

30%

44%

26% Public sector

and agencies

Third parties AAA

Third parties 3'1283'154

3.500

3.000

2.500

2.000

Feb

2012

Dec

2011

Dec

2010

Dec

2008

Dec

2007

Dec

2009

Order book trend

Order book at 31.12.2011

2012

66,5% 69,8%

2013 2014

10,8% 13,8%

30,1% 28,0%

prior year

actual year

Order book Dec. 2011 Dec. 2010

Real Estate 1'616 1'663

Infrastructure Construction 744 712

Industrial Construction* 667 695

Implenia Norge 127 -

TOTAL Order book 3'154 3'070

*excl. Implenia Norway

Secured revenue (like for like)


in CHF millions


Goals

Risk management as core

competency

Strengthened customer and

market orientation

Optimisation of processes

Setup central procurement with international competency

Systematic centralisation of logistics in infrastructure division

Intensification of the "integrated business model“

Improved risk & project management in general contracting division

Implementation IT tools

Action taken

Growth initiatives

Employee orientation

Reorganisation of Structural Engineering (buildings) in German-speaking Switzerland

Expansion of account management

Know-how & resource transfer Switzerland - Norway

Expansion of “modernisation” business area

Implenia "Academy" – for qualified employees

Talent management and succession planning

We are on a sustainable development path

Outlook


Strategic focus in Switzerland

Cautious but systematic expansion of portfolio towards high-

margin services upstream and downstream of construction

1st Qtr 2nd Qtr 3rd Qtr 4th Qtr

Ris

e in

prod

uctiv

ity

Invest -

grow Invest - grow

Development Realisation Management


Strategic focus international

In addition, growth through expansion in selected markets

with sustainable growth

Strategic positioning

Discounter Premium

Expert &

Premium

Builder

Infra-

structure specialist E

xper

t G

ener

alis

t

Target markets

Scandinavia

Middle East

Central & Eastern Europe

Europe


Our vision

We act

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.


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.

THESE MATERIALS ARE BEING PROVIDED TO YOU SOLELY FOR YOUR INFORMATION AND ARE

STRICTLY CONFIDENTIAL AND MUST NOT BE REPRODUCED, DISCLOSED OR FURTHER DISTRIBUTED

TO ANY OTHER PERSON, OR PUBLISHED, IN WHOLE OR IN PART, FOR ANY PURPOSE.

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.

medien- und finanzanalystenkonferenz 2012 e

Documents

swiss construction

real estate market media

operating income new

chf billions

construction index

real change

key figures

consolidated revenue