Letter from the Chairman of the Board of Directors
With a new strategy and a new organisational structure, 2019 was a year of renewal for Implenia. The company swiftly implemented its operating model, which is based on divisions with their own profit and loss responsibility. This organisational structure was embedded very quickly and well; employees understand their roles and are carrying them out effectively. The new structure has improved international cooperation across the divisions.
In implementing its strategy, Implenia made significant progress on all its strategic priorities in 2019. The value chain has been extended and a comprehensive Value Assurance approach has been rolled out for projects across the Group. This is already having a positive impact on the quality of the order book. Further strategic initiatives, including BIM and Lean Construction, the ERP transformation project INSPIRE and supplier consolidation, are progressing on schedule. Implenia has also launched an internal platform for innovation management, the Innovation Hub.
The next major step is planned for the second quarter of 2020: Implenia intends to transfer about half of its development portfolio, valued at current market prices, to a newly created real estate company called Ina Invest Ltd. Ina Invest Ltd.’s parent company, Ina Invest Holding Ltd., will be listed. The other half of the attractive development portfolio will remain at Implenia, which will continue to develop it. Implenia Ltd. will participate in Ina Invest Ltd. as a significant minority shareholder. You, as Implenia shareholders, will participate in Ina Invest Holding Ltd. via new shares (dividend in kind) and will be able to vote on the transaction at the upcoming Annual General Meeting. The aim is for Implenia to generate continuous earnings in the medium term by expanding its value chain instead of selling its ready to build and approved development projects as it has done previously.
The business result for 2019 met expectations. Operating business went well in all four divisions and the order book is looking healthy. The Implenia Group is ready to realise its full potential.
So the Board of Directors has decided to ask the Annual General Meeting of Shareholders on 24 March 2020 to approve a cash dividend of CHF 0.75 per share.
On behalf of the entire Board of Directors I would like to thank you for your trust during the year and look forward to your continued support as shareholders.