Group profile

Implenia meets expectations in transition year 2019

Implenia has met expectations with its results for the 2019 financial year. The internationally active Swiss construction services provider achieved EBITDA of CHF 186.8 million after strategy implementation costs of around CHF 20 million. Implenia is executing its new strategy rigorously and successfully. The operating model and new organisational structure have been bedded in quickly and are having a positive impact. Significant progress has been made on the implementation of strategic priorities in all areas.

Consolidated key figures

in TCHF

2019

2018

Δ

Δ like for like1

Consolidated revenue

4,430,833

4,364,473

1.5 %

3.6 %

EBITDA excl. IFRS 16

130,782

89,726

45.8 %

45.7 %

in % of consolidated revenue

3.0 %

2.1 %

EBITDA

186,768

89,726

in % of consolidated revenue

4.2 %

2.1 %

Operating income

63,507

12,935

Consolidated profit

33,920

504

Free cash flow

84,871

(52,586)

Net cash position excl. lease liabilities (as at 31.12.)

420,500

405,540

3.7 %

6.0 %

Net cash position (as at 31.12.)

272,564

397,211

Equity (as at 31.12.)

590,469

585,175

0.9 %

2.3 %

Order book (as at 31.12.)

6,157,507

6,248,291

(1.5 %)

0.9 %

Production output

4,517,550

4,452,761

1.5 %

3.5 %

Employees (FTE; as at 31.12.)

8,867

8,765

1.2 %

1 Foreign currency adjusted

Implenia Executive Committee

From left to right:

Christian Späth (Head Division Civil Engineering), Christelle Beneteau (Chief Human Resources Officer), Jens Vollmar (Head Division Buildings und Country President Switzerland), Marco Dirren (Chief Financial Officer), André Wyss (Chief Executive Officer), German Grüniger (General Counsel), Matthias Jacob (Head Country Management und Country President Germany), Anita Eckardt (Head Division Specialties), Adrian Wyss (Head Division Development)

Key balance sheet figures

in TCHF

31.12.2019

31.12.2018

Δ

Cash and cash equivalents

912,317

913,233

(0.1 %)

Real estate transactions

189,486

185,292

2.3 %

Other current assets

1,124,833

1,044,098

7.7 %

Non-current assets

856,627

718,732

19.2 %

Total assets

3,083,263

2,861,355

7.8 %

Financial liabilities

639,753

516,022

24.0 %

Other liabilities

1,853,041

1,760,158

5.3 %

Equity

590,469

585,175

0.9 %

Total equity and liabilities

3,083,263

2,861,355

7.8 %

Net cash position excl. lease liabilities

420,500

405,540

3.7 %

Investments in real estate transactions

53,170

62,821

(15.4 %)

Investments in fixed assets

70,635

80,025

(11.7 %)

Equity ratio

19.2 %

20.5 %

Implenia generated revenue of CHF 4,431 million in 2019 (2018: CHF 4,364 million), an increase of around 1.5% on the previous year. After adjusting for currency movements, revenue growth was 3.6%. As expected, the Group achieved EBITDA of CHF 186.8 million (excl. IFRS 16: CHF 130.8 million), up from the prior year’s CHF 89.7 million. A total of around CHF 20 million was spent on strategy implementation. This spending was concentrated mainly on Value Assurance, supplier consolidation and contract renegotiation, the ERP transformation project INSPIRE and implementation of the operating model and new organisational structure. Group operating income (excl. PPA) met expectations at CHF 67.6 million (2018: CHF 31.0 million). Consolidated profit was CHF 33.9 million (2018: CHF 0.5 million).

Implenia delivered a solid operating cash flow and was able to finance all investments from its own business. Incoming payments from key projects helped to improve operating cash flow from CHF 16.1 million in the previous year to CHF 143.5 million (excl. IFRS 16: CHF 92.3 million). Free cash flow came to CHF 84.9 million (excl. IFRS 16: CHF 33.5 million; 2018: –52.6 million).

Implenia’s balance sheet remains robust. Cash and cash equivalents remained around the same level as the prior year at CHF 912.3 million (2018: CHF 913.2 million). Total assets at end-2019 came to CHF 3,083 million (2018: CHF 2,861 million). The increase is primarily due to the first-time application of IFRS 16. Equity rose over the year from CHF 585.2 million to CHF 590.5 million. As a result, the equity ratio is basically unchanged at 19.2% (19.8% excl. currency and pension impact). The Group still has a solid equity base by industry standards, and Implenia is confident that this will continue. Confidence is fuelled by the completion of PPA amortisation and the expected positive contributions from operating business, as well as by the planned Ina Invest transaction. Implenia is unequivocally committed to maintaining its investment-grade credit rating.

Divisions Development and Buildings achieved a very good result in 2019. Division Civil Engineering saw a continuation of the positive trend established in the first half year. Division Specialties achieved a solid EBITDA and the legacy projects in Poland were completed.

Order backlog

in CHF m

Order book

in TCHF

31.12.2019

31.12.2018

Δ

Buildings

2,394,192

2,951,599

(18.9 %)

Civil Engineering

3,612,993

3,144,817

14.9 %

Specialties

150,322

151,875

(1.0 %)

Total order book

6,157,507

6,248,291

(1.5 %)

Consolidated revenue

in CHF m

Consolidated revenue

in TCHF

2019

2018

Δ

Development

160,419

107,772

48.9 %

Buildings

2,241,754

2,260,997

(0.9 %)

Civil Engineering

2,300,218

2,299,551

0.0 %

Specialties

242,021

255,149

(5.1 %)

Functions / elimination of intra-group services

(513,579)

(558,996)

8.1 %

Total revenue

4,430,833

4,364,473

1.5 %

Thanks to the foundations laid over a short period of time in 2019, Implenia is ready to create sustainable added value. Implenia is growing profitably aiming for an EBITDA growth with current Group structure – before intended spin-off of part of development portfolio – for 2020 in the mid single-digit percentage before strategy implementation costs of CHF 10 million (2019: CHF 20 million).

The Group’s overall margin will be strengthened and extended through the use of digital planning and construction techniques, as well as through the Value Assurance approach and other strategic priorities. Implenia will devote its full energies to implementing its strategy and innovating, always keeping focused on its vision of becoming a leading multinational provider of construction services. The Group is now in a good position to realise its full potential. Combined with the latest market forecasts, this means that it can confirm its medium-term target EBITDA margin of 6.25% to 6.75% (incl. IFRS 16).

At the end of 2019, Implenia employed 8,867 people (full-time equivalents, excluding temporary employees), compared with 8,765 at the end of 2018.

EBITDA

in TCHF

2019

2018

Δ1

Development

44,474

40,781

9.1 %

Buildings

51,477

33,260

54.8 %

Civil Engineering

77,221

2,010

Specialties

19,234

20,137

(4.5 %)

Functions

(5,638)

(6,462)

(12.8 %)

Total EBITDA

186,768

89,726

108.2 %

1 EBITDA is comparable with previous year if note 2 in the financial report (page 117) is taken into account

 

Production output

in CHF m

 

 

Operating income

in CHF m

 

 

EBITDA

in CHF m

 

Invested capital

in TCHF

31.12.2019

31.12.2018

Δ

Current assets (excl. cash and cash equivalents)

1,314,319

1,229,390

6.9 %

Non-current assets (excl. pension assets and rights of use from leases)

704,437

713,025

(1.2 %)

Less debt capital (excl. financial liabilities and pension liabilities)

(1,830,328)

(1,739,480)

(5.2 %)

Invested capital excl. rights of use from leases

188,428

202,935

(7.1 %)

Rights of use from leases

146,491

Total invested capital

334,919

202,935

 

Free cash flow

in CHF m

 

 

Consolidated profit

in CHF m

 

 

Return on invested capital (ROIC)

in CHF m

 

 

Net cash position, excluding liabilities
from leasing

in CHF m