Glattpark (Opfikon), 1 March 2023
“The significantly improved annual result in spite of rising interest rates and inflation proves that Implenia is on the right track,” says CEO André Wyss. “Strategically and operationally, our business is in an excellent position for sustainable success.”
EBIT significantly increased to CHF 138.9 million (adjusted for currency effects CHF 144.1 million); free cash flow and equity ratio substantially higher
Implenia has significantly increased its EBIT to CHF 138.9 million (2021: CHF 114.8 million), or CHF 144.1 million adjusted for foreign currency effects. Group revenue was at CHF 3,563 million (2021: CHF 3,765 million) and remained at previous year’s level of CHF 3,716 million, adjusted for currency effects. The EBIT margin was 3.9% (2021: 3.1%). Due to the focus on large and complex real estate and infrastructure projects, the order book increased to CHF 7,221 million (2021: CHF 6,881 million), adjusted for currency effects to CHF 7,464 million. By strictly applying Value Assurance, Implenia’s risk management, the Group ensures that these projects have a solid risk and margin profile. Consolidated profit resulted in CHF 106.0 million (2021: CHF 64.0 million).
Implenia’s equity increased by CHF 136.8 million to CHF 482.7 million in financial year 2022 (2021: CHF 345.9 million). The equity ratio as of 31 December 2022 stood at 17.5% (2021: 11.6%). Total assets were reduced to CHF 2,753 million (2021: CHF 2,988 million) compared to previous year. Cash flow from operating activities increased to CHF 128.1 million (2021: CHF -69.2 million) and free cash flow to a high level of CHF 124.0 million (2021: CHF -17.5 million). Free cash flow was positively impacted by the operating business and successful management of net working capital. The net cash position improved to CHF 120.3 million (excl. leasing liabilities).
All Divisions improved their underlying performance and contributed to the strong result
Division Real Estate significantly increased its EBIT to CHF 81.1 million (2021: CHF 42.1 million). This was mostly based on above-average earnings in the first half of the year from the sale of large real estate projects following several years of successful development work. These sales affected the book value of the Real Estate portfolio, which was worth CHF 351 million (2021: CHF 410 million) at 31.12.2022. Implenia continues to invest in its own attractive real estate portfolio. The Division has continuously expanded its services business in recent years, generating increasing, recurring earnings. The partnership with Ina Invest has developed and above expectations.
Division Buildings further improved its EBIT to CHF 35.4 million (2021: CHF 32.4 million). All service areas contributed positively to this result. Revenue slightly decreased compared to previous year to CHF 1,743 million (2021: CHF 1,819 million). The order book rose to CHF 3,118 million (2021: CHF 2,809 million) and improved in quality. By getting involved in projects earlier and using partnership-based contract models, the Division is adding value for clients in new ways. The Division acquired new projects and further developed its capabilities in the growing areas of general planning and consulting as well as in realisation of facilities for the healthcare and R&D sectors.
Division Civil Engineering achieved EBIT excl. one-time effects of CHF 34.9 million (2021: CHF 25.0 million). Revenue was at CHF 1,921 million (2021: CHF 2,061 million) and remained at previous year’s level adjusted for currency effects. The order book remained at previous year’s level of CHF 3,951 million (2021: CHF 3,918 million), which is an increase when adjusted for currency effects and was of improved quality, reflecting the strategic focus on profitable and complex infrastructure projects. With its many years of experience and extensive expertise, the Division is the ideal partner for public-sector clients.
Division Specialties achieved EBIT excl. one-time effects of CHF 2.6 million (2021: CHF -3.2 million). Revenue decreased to CHF 164 million (2021: CHF 209 million) due to portfolio adjustments. The order book was at CHF 152 million (2021: CHF 154 million) and adjusted for currency effects above previous year’s level. The Division will continue to expand its planning and engineering capabilities by developing and scaling new, customer-centric business models. It will also continue to adjust its portfolio and look for attractive acquisition opportunities. With its innovative service portfolio, the Division is contributing to the sustainable development of the construction industry.
Acquisition of large and complex projects confirms Implenia’s competences as well as its strengths in innovation, digitalisation and sustainability
In the area of real Estate Development, Implenia successfully completed the feasibility studies of “Rocket” and “Tigerli” at Lokstadt, Winterthur, while the sustainable, standardised and industrialised real estate product “Green Hospitality” achieved another important milestone.
In Building Construction, Implenia won numerous residential, office and commercial projects, including the EUREF sustainability and innovation campus in Düsseldorf. There were further major new orders in the growing areas of healthcare and R&D: the new laboratory for the Department of Biomedicine at the University of Basel and new buildings for the Lucerne Cantonal Hospital.
In Civil Engineering, Implenia was awarded the contract for the main northern section of the second tube of the Gotthard road tunnel. Further major new infrastructure contracts included a connecting tunnel for the Stockholm Metro, Norway’s longest railway bridge and a series of complex, sustainably designed bridge replacements for Germany’s motorways.
As well as being contracted by other Divisions’ projects, the services offered by Division Specialties, such as timber construction, BCL, BBV Systems, Planovita and facade technology, are seeing increasing demand from external clients. Among others the Division has won a facade technology contract for the attractive “Berlin Decks” project and with BCL provides construction logistics services for the new building work at St. Gallen Cantonal Hospital.
Despite economic uncertainty and a challenging market environment, there is still a high demand for large real estate projects at attractive urban locations as well as for complex infrastructure projects. Implenia’s continuously healthy order intake shows that the Group is excellently positioned in the relevant markets. The Group will develop high-margin business areas through organic and inorganic growth. The focus is on sector-oriented specialisation and integration along the value chain.
For 2023, Implenia is aiming for EBIT of CHF ~120 million and a further increase in the equity ratio to >20%
Implenia expects EBIT of CHF ~120 million for the financial year 2023 based on strong operating business at all Divisions. The EBIT contribution of Division Real Estate is likely to be considerably lower than in the previous year, especially in the first half year. In addition, Implenia expects the equity ratio to improve to >20% in 2023. Mid term the Group aims to achieve an equity ratio of over 25%.
Implenia aims to achieve an EBIT margin of ~3.5% in the short to mid term and of >4.5% in the mid to long term.
Board of Directors will propose a dividend of CHF 0.40 per share to Annual General Meeting
Implenia wants its shareholders to participate in the company’s success following the completion of its transformation. Therefore, the Board of Directors will propose a dividend of CHF 0.40 per share to the AGM on 28 March 2023. The Board of Directors anticipates that Implenia will be able to continue distributing dividends in the future.
Leadership Change on the Board of Directors
Laurent Vulliet, Member of our Board of Directors, will not be standing for re-election at the AGM on 28 March 2023. He has been a Member of the Board of Directors and of its Nomination and Compensation Committee since 2016.
Raymond Cron (1959, Swiss, non-executive and independent) will be proposed to the AGM as a new Member of the Board of Directors. With his many years of experience in management at real estate and construction companies, he will bring comprehensive industry expertise and leadership skills to the Board. He has held various board and management mandates since 2015. Raymond Cron graduated in civil engineering from the ETH and completed a postgraduate degree in business administration at BWI ETH Zurich.
Contact for media:
Corporate Communications, T +41 58 474 74 77, communication@implenia.com
Contact for Investors and Analysts:
Investor Relations, T +41 58 474 35 04, ir@implenia.com
Annual report 2022:
You can access the 2022 Annual Report via this link and download it as a PDF.
Sustainability Report:
The new Sustainability Report is published on 27 April 2023 and will be available on Implenia’s sustainability page.
Webcast of Analysts and Media Conference:
An Analysts and Media Conference will take place today between 9.30 and 10.30 a.m. You can participate in the webcast via the following link: Analysts and Media Conference webcast
Dates for investors:
28 March 2023: Annual General Meeting
16 August 2023: Half-year results 2023, Analysts and Media Conference
As Switzerland’s leading construction and real estate service provider, Implenia develops and builds homes, workplaces and infrastructure for future generations in Switzerland and Germany. It also offers tunnelling and related infrastructure projects in further markets. Formed in 2006, the company can look back on around 150 years of construction tradition. Implenia brings together the know-how of its highly skilled development, planning and execution units under the umbrella of an integrated leading multinational construction and real estate service provider. With its broad offering and the expertise of its specialists, the Group realises large, complex projects and provides client-centric support across the entire life cycle of a building or structure. It focuses on client needs and on striking a sustainable balance between commercial success and social and environmental responsibility. Implenia, with its headquarters in Opfikon near Zurich, employs more than 7,600 people across Europe and posted revenue of CHF 3.6 billion in 2022. The company is listed on the SIX Swiss Exchange (IMPN, CH0023868554). More information can be found at implenia.com.
