Key figures for the Divisions

Division Real Estate achieved reported EBIT of CHF 42.1 million (2020: CHF 109.4 million; positively impacted by the Ina Invest transaction). The underlying performance at EBIT level was CHF 42.1 million (2020: CHF 60.4  million), which is higher than expected and already in line with the years prior to the Ina Invest transaction.

Significant profit contribution expected for the Group

The Division’s gross investments in its Real Estate portfolio amounted to CHF 41.1 million in 2021 (2020: CHF 57.9 million). The Division continues to develop its Real Estate portfolio, which has a current market value of CHF 410 million and an estimated market value after completion of more than CHF 2.3 billion. Based on its increasing services offering, the Division expects higher earnings from services and from the participation in Ina Invest as well as from the business with further clients. Given the maturity of its own Real Estate portfolio, the Group anticipates a significant contribution to profit in 2022.

Attractive real estate portfolio, services and products

The project pipeline at Division Real Estate is well diversified, and successful residential property sales in the Zurich and Geneva metropolitan areas contributed to earnings. In 2021, the Division acquired properties with high development potential in Pully (Switzerland) and in Darmstadt and Rüsselsheim (Germany). It will continue to invest in its own attractive property portfolio. The cooperation with Ina Invest is proving successful in all areas, from acquisition to development and other real estate services, to execution. In addition, the Division offers all its services to clients so they can develop their own real estate portfolios. These services include active asset and portfolio management, designing new types of real estate investment vehicle, and the development and industrial production of standardised and scalable real estate products. A good example is the joint venture with Deutsche Seereerderei (DSR) for the green hospitality segment.

Division Buildings improved its reported EBIT to CHF 32.4 million (2020: CHF –19.2 million), based on a strong underlying performance at EBIT level of CHF 33.9 million (2020: CHF 27.4 million).

Strong operating performance

With its strong and high-quality order book in Switzerland and particularly in Germany, the Division is well positioned to further increase its profitability. Negative one-time effects occurred from the sale of the Building Construction unit in Austria, which completed the planned geographical transformation of the Division. Revenue decreased by 13% to CHF 1,819 million (2020: CHF 2,080 million) based on strict application of Value Assurance and the focus on large, complex projects. The order book decreased to CHF 2,809 million (2020: CHF 3,046 million) but improved in quality. The Division expanded its competencies in the growing areas of general planning, consulting, and realisation for healthcare and R &D facilities.

Focus on partnership-based contract models as well as consulting and planning services

Division Buildings has won several large and complex projects for sustainable residential and commercial property in Switzerland and Germany. Through the acquisition of BAM Swiss, Implenia became sole total contractor for the new “Dreiklang” building at Aarau Cantonal Hospital. Other interesting project gains included a general contractor commission from Swiss Federal Railways for five buildings in Central Malley near Lausanne, and several follow-up orders from existing customers in Germany, including two residential developments: Turley Areal in Mannheim and Flösserhof in Mainz. With a focus on customer needs, partnership-based contract models and the offer of consulting, planning and execution services from a single source, the Division will continue to grow profitably. The Division is improving its strategic positioning through an expanded, integrated service and product portfolio.

Division Civil Engineering achieved reported EBIT of CHF 51.8 million (2020: CHF – 206.7 million). Underlying performance at EBIT level, excluding positive one-time effects from divestments and restructuring, improved significantly to CHF 25.0 million (2020: CHF –17.3 million).

Focus on profitable and complex large-scale projects

Revenue remained at previous year’s level of CHF 2,061 million (2020: CHF 2,013 million). The order book increased to CHF 3,918 million (2020: CHF 3,183 million) and is of better quality, reflecting the strategic focus on more profitable and complex large-scale projects. The business units Tunnelling and Special Foundations contributed positively to the result. Local branches of business unit Civil in Sweden, Norway, Austria and Romania were ramped down as planned to purely complete current projects. The market presence of business unit Civil in Switzerland was further adjusted according to strategy.

Successes in tunnelling and major infrastructure projects

In 2021, Division Civil Engineering acquired several large, complex infrastructure and tunnelling projects in Switzerland and Germany. It has won tenders for these types of project in other European countries too. These project acquisitions are in line with the Group’s strategy and core competencies. They also show that Implenia’s many years of experience and extensive expertise in tunnelling are recognised throughout Europe. Implenia is currently involved in all the major European base tunnel projects, having won the contract for a section on the Austrian side of the Brenner base tunnel, as well as the high-speed Franzensfeste-Waidbruck railway line (southern end), and a section of the Euralpin tunnel between Lyon and Turin. Implenia has also been asked to do the preparatory work on two sections of the project to build the second tube of the Gotthard road tunnel. The Lysaker-Fornebu Tunnel and the Tunnel E39 Lyngdal motorway project (both Norway), and Sofia Station on the Stockholm Metro (Sweden) are good examples of the complex tunnel construction contracts Implenia has won in Scandinavia. With its strong position in major tunnelling and related infrastructure projects, and with measures in place to increase profitability at the Civil unit, the Division is on track to further improve its underlying performance.

Division Specialities reported EBIT of CHF 8.8 million (2020: CHF – 9.5 million). As part of the transformation, the Division is adjusting its business units in line with strategy.

Portfolio adjustments on track

The strategic businesses contributed positively to EBIT and improved their underlying performance at EBIT level by 12% compared to the previous year. Other non-strategic businesses didn’t achieve their planned profitability. Reported EBIT was positively influenced by one-time effects from divestments. The underlying performance at EBIT level amounted to CHF – 3.2 million (2020: CHF 8.7 million) and is difficult to compare with the previous year due to the transformation. Revenue decreased as planned to CHF 209 million (2020: CHF 224 million) due to the sale of non-strategic businesses. The order book stood at CHF 154 million (2020: CHF 157 million) at previous year’s level. In 2022, the Division plans to continue developing and scaling businesses with high potential, selling non-strategic businesses, and expanding its portfolio with specialised planning and engineering services.

Innovative services for the construction industry

Division Specialties creates added value for its customers by offering expert knowledge in specialised areas of the construction industry. In 2021, the Facade Technology unit successfully completed the “DSTRCT.Berlin” project. BCL established its construction logistics services in Switzerland, with projects including optimised logistics planning and execution for the demanding “Telli” renovation in Aarau. Meanwhile, BBV Systems won and started work on one the largest prestressing projects Germany has seen in recent decades: the A7 Altona noise-protection tunnel.

In 2022, the Division plans to continue developing and scaling businesses with high potential, selling non-strategic businesses, and expanding its portfolio with specialised planning and engineering services. This will be achieved through organic as well as inorganic growth. There is great market demand for the capabilities offered by BCL, Planovita and the Timber Construction unit. These businesses have great growth potential.