Significant improvement

Division Civil Engineering saw a continuation of the positive trend established in the first half-year and increased its EBITDA to CHF 77.2 million (excluding IFRS 16: CHF 40.9 million) in 2019. There are several reasons for this improvement (2018: CHF 2.0 million). Firstly, the unprofitable legacy projects ran their course; secondly, the earnings situation at special foundations is very stable; and thirdly the major tunnel construction projects are making good progress. We acquired projects successfully in all three business units, increasing the order book by around 15 % to CHF 3,613 million.

Successful order acquisition

The division’s revenue is exactly the same as in 2018 at CHF 2,300 million. The excellent order growth seen in the first half continued during the second six months of the year. We made successful project acquisitions in all units. Some examples: replacing the Grimsel dam wall in Switzerland, winning a third section of the Grand Paris Express in France, a new railway line and station for the town of Moss in Norway, detailed planning and execution of the twin-track rail expansion between Varberg and Hamra in Sweden. All of these successes reinforce our position in our home markets and confirm how well we are able to exploit market opportunities created by the mobility megatrend and by increasing infrastructure investment.

“The new organisational structure has greatly strengthened collaboration across national borders, which is particularly important for Civil Engineering. This is also reflected in our acquisition successes.”

René Kotacka
Former Head Division Civil Engineering

The earnings situation in the challenging “civil” market is still not as good as required. The turnarounds in Swiss regional business and in Germany are progressing according to plan, and the quality of the order book has improved further. Thanks to more integrated internal collaboration and the use of new techniques like project modelling, we were able to bring a smarter and more competitive approach to the projects. We are currently evaluating different organic and inorganic growth options, geographically and along the value chain. We are also developing very specific actions to accelerate profitable growth in existing markets; these include setting clear priorities in selected regions.

 

New divisional management

The appointment of Christian Späth as the new head of the division meant that we were able to find a successor to René Kotacka from within our own ranks. Christian Späth took over as Head Division Civil Engineering on 1 January 2020, also becoming a Member of the Implenia Executive Committee. He is a manager with many years of international experience. Christian Späth has worked in various specialist and leadership positions at Implenia since 2012. Among other things, he was responsible for Implenia’s entry into the Austrian and German tunnelling markets between 2013 and 2015. He took over as head of the whole tunnelling business in all markets in 2015. In the wake of Implenia’s new strategy and reorganisation, Christian Späth took over as head of the global civil business in March 2019.

“After my experience in engineering, tunnelling and special foundations, I am very pleased to be taking on even more responsibility at Implenia. I would like to thank my predecessor René Kotacka very much for his great work. I will continue his efforts to implement the strategy in Division Civil Engineering.”

Christian Späth
New Head Division Civil Engineering

Auftragsbestand

Order backlog

in CHF m

3,613(2018: 3,145)

Successful acquisitions in all three areas, despite more selective approach.

Visibilität

Visibility

in %

70.2(2018: 68.6)

Slight improvement in visibility, which was already high.

Produktionsleistung

Production output

unconsolidated in CHF m

2,344(2018: 2,363)

Production output remains solid.

Mitarbeitende

Employees

as at 31.12.

5,250(2018: 5,044)

Further expansion of leading international capabilities.

Revenue

in CHF m

2.3002019
2.3002018

Revenue steady at previous year’s level.

EBITDA

in CHF m

77.22019
2.02018

Significantly improved EBITDA as unprofitable special foundations and tunnelling projects come to an end and based on solid profit situation.

Division profile

From underground to the regions. Division Civil Engineering encompasses tunnel construction, special foundations and Implenia’s regional business, which includes road and railway construction. Its aim is to develop its leading international engineering expertise further in order to make full use of the mobility and infrastructure investment megatrends. The division’s range of services extends from the development of specific solutions to the integrated management of major hybrid projects. In all of these areas, Implenia has a leading position in Switzerland and a recognised presence in its other home markets.