Implenia Capital Markets Day: Fit for Growth

Ad hoc announcement pursuant to Art. 53 LR

• Fit for Growth phase within Implenias strategic priorities to further strengthen competitive position
   
• Divisions contribute to focus areas: improve existing business, grow existing business, develop new business, selective acquisitions 
   
• Group financial targets: emphasis on profitability, strengthened equity and continued positive cash flow
   
  • Revenue growth: stabilising to increasing revenue, mainly by organic growth (short to mid term) and further increasing revenue by organic and inorganic growth (mid to long term)
     
  • EBIT margin: ~3.5% (short to mid term) and >4.5% (mid to long term) 
     
  • Equity ratio: >20% (expected by 2023) and 25% (mid term)
     
  • Implenia intends to propose to the AGM to cautiously resume dividend distributions as of Spring 2023

Glattpark (Opfikon), 1 November 2022

After the successful completion of its comprehensive transformation, Implenia is now fit for growth and ready to achieve its ambitious profitability targets. I am very proud of our achievements over the past years, says André Wyss, CEO of Implenia. Together with all employees and my colleagues of the Implenia Executive Committee, we are well on track to become an integrated leading multinational construction and real estate service provider. 

Implenia holds a Capital Markets Day today. CEO, CFO and Division Heads will explain how the Group intends to achieve its financial targets. The core strength of Implenias business is to successfully and profitably develop, plan and build large, complex real estate and infrastructure projects with an integrated service offering on time, to quality, within budget and to high safety and sustainability standards. Thus, Implenia is ready to realise market opportunities, despite the currently volatile economic environment.

Fit for Growth phase within Implenias strategic priorities to further strengthen competitive position
To increase margins, Implenia differentiates its strategic priority Portfolio through sector-oriented specialisation and develops new competencies along its value chain backward and forward integration. The Group plans selective acquisitions to accelerate value chain integration targeting higher margin businesses.

In its strategic priority Profitable Growth, Implenia continues to improve risk and performance monitoring through its Value Assurance process, leading to stable and reliable forecasts. The Group made progress in reducing open claims. In addition, Implenia further increases operational excellence and optimises Net Working Capital.

Focus areas of Innovation are industrialisation, digitalisation and BIM as well as sustainability. In these areas, Implenia aspires to be leading in shaping the market and be a frontrunner in the industry.

With its fourth strategic priority, Talent & Organisation, Implenia attracts, manages and retains talents. The Group will work in three defined areas Collaboration and Employee Engagement, Talent Management and Recruitment Excellence to position Implenia as an employer of choice in the labour market.

Divisions contribute to focus areas: improve existing business, grow existing business, develop new business, selective acquisitions 
The Divisions shaped their divisional strategies to contribute to the Groups focus areas.

Division Real Estate Focused diversification into four service lines for sustainable, digitalised and industrialised real estate services and products. The Division will continue to invest in and develop its own Real Estate portfolio in Switzerland and Germany with strong emphasis on sustainability. With its services and products, it will drive industrialisation and digital solutions. Partnerships with Ina Invest (42.5% owned by Implenia) and other strategic partners will generate increasing, recurring service fees.

Division Buildings New buildings and modernisation end-to-end: value chain expansion, specialisation and innovation pilots. The Division specialises in large and complex building projects with a market-leading position in Switzerland and significant growth in Germany. It drives value chain integration in the area of consulting services. The Division builds competencies and specialises in complex projects with highest customer requirements, such as healthcare, research or data centers. Early value creation and partnership models are key in acquisition. 

Division Civil Engineering Combining extensive track record and expertise with operational excellence and future innovation. The Division specialises in large and complex infrastructure projects, such as transport and mobility, energy infrastructure and industrialised bridges. Besides its leading position in Switzerland and Germany, the Division also has a strong presence with its business unit Tunnelling in Austria, France, Norway and Sweden. It drives forward and backward integration along the value chain for tunnel and traffic engineering, predictive maintenance and new construction materials. The Division increases efficiency by digitalisation, BIM, Lean Management and process optimisation.

Division Specialties Transforming and scaling innovative businesses to change the construction industry sustainably. The Division specialises in complex niche businesses and continues with the portfolio transformation, completing Implenia as an integrated provider. The Division scales its profitable businesses throughout the other Divisions. It develops and scales new business models, such as platform services and sustainability concepts and generates planning and consulting fees in the areas of construction logistics, value engineering, energy optimisation and standardised energy renovation as well as maintenance.

Group financial targets: emphasis on profitability, strengthened equity and continued positive cash flow
Short to mid term, Implenia aims to stabilise and increase revenue mainly by organic growth and mid to long term to further increase revenue by organic and inorganic growth. The Groups target EBIT margin is at ~3.5% (short to mid term) and >4.5% (mid to long term). Based on the strong underlying business Implenia strives to further increase its equity ratio to >20% (expected by 2023) and to 25% (mid term). Implenia wants its shareholders to participate in the Groups success after the completed transformation. Implenia intends to propose to the AGM to cautiously resume dividend distributions as of Spring 2023. Further mid-term financial goals are positive free cash flow generation as well as returning to a net cash position driven by a profitably operating business.

Implenia confirms its EBIT target for 2022 of more than CHF 130 million, with no further one-time effects from the transformation.

Contact for media:
Corporate Communications, T +41 58 474 74 77, communication@implenia.com

Contact for Investors and Analysts:
Investor Relations, T +41 58 474 35 04, ir@implenia.com 

Capital Markets Day Webcast:
Under the following link you can attend the Capital Markets Day Webcast, taking place today from 09:00-12:00 am: Implenia Capital Markets Day Webcast

Dates for investors:
1 November 2022: Capital Markets Day 
1 March 2023: Annual results 2022, Analysts and Media Conference
28 March 2023: Annual General Meeting

As Switzerlands leading construction and real estate service provider, Implenia develops and builds homes, workplaces and infrastructure for future generations in Switzerland and Germany. It also offers tunnelling and related infrastructure projects in further markets. Formed in 2006, the company can look back on around 150 years of construction tradition. The company brings together the know-how of its highly skilled development, planning and execution units under the umbrella of an integrated leading multinational construction and real estate service provider. With its broad offering and the expertise of its specialists, the Group realises large, complex projects and provides client-centric support across the entire life cycle of a building or structure. It focuses on client needs and on striking a sustainable balance between commercial success and social and environmental responsibility. Implenia, with its headquarters in Opfikon near Zurich, employs more than 7,700 people across Europe and posted revenue of CHF 3.8 billion in 2021. The company is listed on the SIX Swiss Exchange (IMPN, CH0023868554). More information can be found at implenia.com.