Interview

With EBIT of CHF 122.6 million, currency-adjusted CHF 126.5 million, Implenia achieved the target for 2023 in a challenging market environment. Consolidated profit stood at a record level of CHF 141.8 million. This underlines that Implenia, with its strong team and comprehensive, integrated portfolio of services, is excellently positioned in the market. Its diversified services and extended value chain enable sustainably profitable growth.

Implenia achieved its targets for 2023 in a challenging market environment. What do you think of the results?

André Wyss Implenia posted EBIT of CHF 122.6 million, or CHF 126.5 million after adjusting for currency effects. All Divisions contributed to this strong Group result. Revenue significantly exceeded the previous year's level in constant currency. The order book remained at a high level of CHF 7,293 million after adjusting for currency effects. Consolidated profit reached a record level of CHF 141.8 million. These results prove that our services are in demand in the market. Furthermore, strict application of Value Assurance - Implenia's risk management - ensures that our projects have a solid risk and margin profile.

Hans Ulrich Meister This success in a challenging market environment would not have been possible without the extra-ordinary commitment of employees at all levels and the outstanding performance of the management. On behalf of the Board of Directors, I would like to thank everyone for their efforts. Based on many years of experience and comprehensive expertise, Implenia has built up a differentiated and scalable portfolio of services. This, in tandem with an expanded value chain, is now paying dividends.

The equity position and cash situation are important metrics for the Implenia Group. How did these two key figures change in 2023?

André Wyss Equity increased by CHF 93.1 million to CHF 575.8 million in financial year 2023. The Group increased its equity ratio to 19.8% (2022: 17.5%), currency-adjusted 20.0% as of 31 December 2023. This further strengthens our financial stability. Free cash flow came to CHF −12.7 million (2022: CHF 124.0 million), or CHF 87.3 million excluding the CHF 100 million already paid for Wincasa.

The acquisition of Wincasa in spring 2023 expanded Implenia's value chain into real estate management in line with Group strategy. Is this already having a positive effect on the annual results?

André Wyss With EBIT of CHF 6.7 million after transaction and integration costs as well as PPA amortisation, Wincasa has already made a good contribution to earnings. The integration has been completed successfully and the synergy potential is being realised. Now Wincasa is part of the Group, Implenia can offer clients  unique, integrated range of services from a single source, including property management. We have also realised cost synergies, especially by combining Group functions and locations.

What developments were there on the Board of Directors in 2023?

Hans Ulrich Meister The Board of Directors, with all its professional and personal diversity, works excellently as a team and is very good at fulfilling its responsibilities as a supervisory body. Close cooperation with the Implenia Executive Committee was and remains crucial for the successful implementation of the «Fit for Growth» strategic phase. Raymond Cron was elected to the Board in 2023. With his many years of experience in management at real estate development and construction companies, he brings comprehensive industry expertise and leadership skills to the Board.

Implenia publishes its Sustainability Report at the same time as the Annual Report this year, the first time it has done this. How important is sustainability to the Implenia Group?

André Wyss Proven expertise in planning and building sustainable real estate and infrastructure is increasingly in demand from private and public clients, especially for large and complex projects. Implenia aims to shape the transformation towards a more sustainable construction and real estate industry. The Group has published a Sustainability Report in accordance with the Global Reporting Initiative (GRI) since 2012. As one of Implenia's five corporate values, sustainability is put into practice by our employees on projects every day. The relevant ESG ratings, such as Sustainalytics (Industry Top Rated) and MSCI (AAA), once again confirmed Implenia's prime position as an industry leader in sustainability last year. EcoVadis awarded the Group gold status again in 2023.

With rising interest rates and building costs, the market environment for the construction and real estate industry presented a real challenge, which Implenia successfully mastered. How do you see the market developing in 2024? What about Implenia's position?

Hans Ulrich Meister There is still high and rising demand for large-scale real estate projects in attractive urban locations as well as for complex infrastructure projects. This demand is being stimulated by the megatrends of population growth and urbanisation, the energy transition and investments in new or modernised transport and energy infrastructure.

André Wyss With its comprehensive, integrated portfolio of services along the entire value chain and its sector-oriented specialisations in areas like healthcare, research, transport and energy infrastructure, Implenia is excellently positioned in these areas. Based on many years of experience, the Group has built up comprehensive capabilities for its differentiated and scalable range of services. Its portfolio mix of sought-after real estate and infrastructure services enables sustainably profitable growth. By combining organic and inorganic growth, backed by an asset-light strategy, the Group is also tapping into innovative, high-margin business areas.

What goals has Implenia set itself for 2024?

André Wyss Implenia expects EBIT of CHF ~130 million for financial year 2024 based on a strong operating business in a challenging market environment. As a mid-term target, the Group is aiming for an EBIT margin of >4.5% and an equity ratio of 25%.

Can shareholders expect another dividend in 2024?

Hans Ulrich Meister Implenia wants its shareholders to participate in the company's growing success. At the AGM on 26 March 2024 the Board of Directors will propose a dividend of CHF 0.60 per share (previous year: CHF 0.40). We anticipate that Implenia will continue to distribute dividends in the future.