2013 Annual Report IMPLENIA IN BRIEF Implenia develops and builds the Switzerland of tomorrow Implenia is Switzerland’s leading construction and construction services com- pany. With its integrated business model and comprehensive portfolio of products and services, Implenia can manage a building project through its entire lifecycle and deliver work that is economical, integrated and customer-centric. The focus is on striking a sustainable balance between fi nancial success and social and environ- mental responsibility. Formed in 2006 from the merger of Zschokke and Batigroup, Implenia can look back on around 150 years of history in the construction industry. Experience, know- how, size and fi nancial strength allow the company to offer its services throughout Switzerland and, in selected disciplines, internationally. All of the Group’s collected capabilities and capacities can be made available for challenging real estate and in- frastructure projects. Backed by Technical Support and the centralised group func- tions provided by the Corporate Center, Implenia brings together the know-how of the following operational Business Units: — Implenia Modernisation & Development is a one-stop-shop that consolidates the Group’s entire expertise in Modernisation and real estate project develop- ment. In Development, Implenia can contribute its expertise all the way through from the initial project idea to the fi nished property. — Implenia Buildings offers its supra-regional customers integrated services for complex buildings, ranging from planning and coordination to the actual con- struction. — Implenia Tunnelling & Civil Engineering bundles the Group’s collective expertise and experience in underground construction, bridge building, power stations, foundation engineering and infrastructure renewal. — Implenia Construction German-speaking Switzerland and Implenia Construc- tion French-speaking Switzerland are the contact of Implenia for local custom- ers when it comes to road construction, civil engineering and regional building construction. — Implenia Norge provides services for complex infrastructure projects in Norway and other Scandinavian markets. Implenia is Switzerland’s market leader in the buildings and civil engineering sectors. Implenia’s head offi ce is in Dietlikon near Zurich, and it has approximately 100 branches throughout Switzerland, as well as operational offi ces in Germany, Bahrain, the Ivory Coast, Mali, Norway, Austria and Sweden. The Group currently employs more than 6600 people and in 2013 generated revenue of around CHF 3.1 billion. Implenia is listed on the SIX Swiss Exchange (IMPN, CH0023868554). For more information, please visit www.implenia.com. KEY FIGURES THE YEAR IN BRIEF Consolidated revenue Consolidated profi t Strong performance in 2013 (in CHF million) (in CHF million) 3,500 7 100 By launching the “Daring to Shape our Future” project during the year under 0 review, Implenia set a course for its successful long-term development. Simulta- 3,05 .6 3,000 82 3 .9 neously it managed to achieve record results. The new structure is showing its 2,80 8 52 80 76 .4 0 strength, enthusing customers and employees alike. It creates conditions that allow 2, 61 28 2,500 2,38 .4 Implenia to achieve its targets and continue its successful work in its home market 2, 60.3 9 61 0 64 and internationally. Major new contracts won in Austria and Norway underline 60 .5 1, 2,000 58 8 7.1 52 1, the success of the Group’s international strategy. As part of its commitment to 5 7.1 5 43 4 0 .0 1, 32 sustainability on all fronts, Implenia has continued to run initiatives promoting 24 40 1, .9 1,500 1, 40 Health & Safety at work. 40 1,000 7% 7% 8 4% 2. 2. 0 2. 2% 5 3 0 ,40 20 1% 22 1 2. 2. 08 06 04 500 1, 1, 1, 1, .5 .6 .2 2 2 6. 12 4. 21 16 0 0 1 1 11 11 12 12 13 13 10 10 09 09 20 20 20 20 20 20 20 20 20 20 2nd semester 2nd semester 1st semester 1st semester Margin (in %) 1 Restated, see page 181, Note 2.1 1 Restated, see page 181, Note 2.1 Consolidated key figures 2013 20121 Δ CHF 1,000 CHF 1,000 Consolidated revenue 3,057,414 2,800,443 9.2% EBIT Business Units 113,952 108,829 4.7% Miscellaneous / Holding 1,663 1,458 14.1% Implenia highlights two key topics in this year’s Focus reports: Operating income 115,615 110,287 4.8% — Implenia’s specialists have used microtunnelling techniques to put a new Consolidated profi t 82,634 76,870 7.5% 710 metre-long mixed water drainage / supply tunnel directly under a busy Zurich road – Rosengartenstrasse. Seize opportunities, minimise risks EBITDA 158,401 153,731 3.0% and be very reliable: the project put these central Implenia values to a Free cash fl ow 78,925 133,614 (40.9%) tough test. Focus article from page 54. Net cash position (as at 31.12.) 371,069 321,394 15.5% — JTI’s new head offi ce in Geneva is one of the fi rst buildings in Switzerland Equity (as at 31.12.) 628 688 549,598 14.4% to be built with a steel support structure in the style of traditional North Production output 3,288,021 2,998,694 9.6% American tower blocks. Our report examines this major undertaking, which provides an impressive example of how Implenia’s fundamental values – Order book (as at 31.12.) 3,190,380 3,101,010 2.9% including operational and fi nancial excellence and maximum focus on custom- Headcount (FTE; as at 31.12.) 6,435 6,404 0.5% ers and solutions – are absolutely critical to the success of a construction 1 Restated, see page 181, Note 2.1 project. Focus article from page 106. THE YEAR IN BRIEF Strong performance in 2013 By launching the “Daring to Shape our Future” project during the year under review, Implenia set a course for its successful long-term development. Simulta- neously it managed to achieve record results. The new structure is showing its strength, enthusing customers and employees alike. It creates conditions that allow Implenia to achieve its targets and continue its successful work in its home market and internationally. Major new contracts won in Austria and Norway underline the success of the Group’s international strategy. As part of its commitment to sustainability on all fronts, Implenia has continued to run initiatives promoting Health & Safety at work. Implenia highlights two key topics in this year’s Focus reports: — Implenia’s specialists have used microtunnelling techniques to put a new 710 metre-long mixed water drainage / supply tunnel directly under a busy Zurich road – Rosengartenstrasse. Seize opportunities, minimise risks and be very reliable: the project put these central Implenia values to a tough test. Focus article from page 54. — JTI’s new head offi ce in Geneva is one of the fi rst buildings in Switzerland to be built with a steel support structure in the style of traditional North American tower blocks. Our report examines this major undertaking, which provides an impressive example of how Implenia’s fundamental values – including operational and fi nancial excellence and maximum focus on custom- ers and solutions – are absolutely critical to the success of a construction project. Focus article from page 106. CONTENTS 2013 – A year in pictures 2 72 Employees ANNUAL REPORT 2013 5 80 Health & Safety Letter to shareholders 6 86 Sustainability In conversation: Roundtable Health & Safety 9 98 Information for investors Annual report 2013 18 106 FOCUs – JTI Modernisation & Development 26 117 CORPORATE GOVERNANCE Buildings 30 127 Board of Directors Tunnelling & Civil Engineering 34 142 Group Executive Board Construction Switzerland 38 155 REMUNERAtiON REPORT Norge 42 171 FINANCIAL REPORT Corporate Center 46 172 Implenia Group’s consolidated financial statement Technical Support 50 272 Implenia Ltd.’s financial statement FOCUS – ROSENGARTENSTRASSE 54 286 Locations Vision and values, strategy and 64 business model 288 Contact addresses and key dates The annual report is also published in German and French. The original German is the authoritative version. The Annual Report is available online as full 01.EN.066.03.14 HTML-version at annualreport.implenia.com. 20 13A year in pictures PRIZE-WINNING /// The town of Arbon awards its BRILLIANT /// Implenia posts record results EDUCATED /// On behalf of the cantonal 2012 energy prize to Implenia in recognition of Medium-term EBIT goal achieved: for 2012. All benchmarks – revenue, EBITDA, Dividends up by: Zero tolerance Order book authorities Implenia is building a health the Rosengarten development’s exemplary energy operating result – reach best-ever levels. centre for the Zurich University of Applied efficiency. Sciences on the Sulzerareal in Winterthur, starting at the end of 2014. Daring to Shape our Future + % CHF100 m + % 63.6 27 0 Trondheim (Stjørdal) Jan 7. Feb 5. 5. 200% 26. Mar 27. Apr 8. 16. Ålesund 16. 18. 19. Bergen Oslo 150% Stavanger +51,0% COOPERATIVE /// The Competition Commission TRANSFORMED /// Implenia sets accents ON TARGET /// Implenia reaches its medium-term investigates alleged restraint of trade agreements in SUCCESSFUL /// Implenia Norway for the future and introduces a lean organisation EBIT target of CHF 100 million one year earlier PROFITABLE /// 2013 AGM approves all proposals. SPORTING /// Implenia signs up as National Canton St. Gallen. Implenia cooperates fully has positioned itself successfully in ASPIRING /// Implenia enlarges the based on business segments and regions. The than expected. Since it was founded seven years ago, Dividend for shareholders increased to CHF 1.40 Partner of the 2014 European Athletics with the authorities and emphasises its zero the market. On 31 March 2013 its Kornhaus Zurich. Coop hires Implenia new structure brings Implenia closer to custom- the company’s value has increased every year.