Hello, warmly welcome to our Analyst and Media Conference on Implenia's 2025 annual results. We're delighted to meet again in our HQ, Implenia Connect, and also warmly welcome those following us on the screen. My name is Silvan Merki. I'm Chief Communications Officer, and I will be taking you through today's event. We'll be holding our presentation in German today and the live stream, you can select the English translation. You can ask your question after this. We're going to be presenting today. Stefan Baumgärtner will take you through. We will answer your questions in the Q&A. I'm now going to hand over to CEO Jens Vollmar for the first part.
Thank you very much. Special year. Implenia was to 160 years of our history and we'll celebrate that appropriately. To conclude 2025, what a year!
It's a year full of highlights. We see the demand for our scale. See that in our order book, which grew significantly, not just in terms of the quantity of the turnover, but also the margins. We've been worked on projects with operative excellence. I'll come back to that in more detail. Some financial highlights. The order book grew by almost 25% to a new record of CHF 8.5 billion. By not just midterm goal of 1.5%. CHF 2 million. That also shows the working capital management and the equity rate is of 25%. I will now going to go through the individual divisions and present them. Sector in, we specialized in data centers.
Bullion market, we are also involved in life sciences and defense. We very varied. We continue to expect high margins there. Civil engineering, that's essentially a large infrastructure. Strongly organically. We have received a lot of orders and our precalculated margin is also higher. Service, the sector which is essentially dominated by Wincasa, but we also have BCL, our building logistics company there, and also Planovita, which is our building technology specialist planning. I'm going to take you through the three. Slight decline in. What's positive is that we've been able to significantly increase our order book. We showed that in the first half year already, we showed in the positive news, and we're experiencing two-digit growth and figures this year too.
We have increased our EBIT margin by 6.6%. That's because of the specialized way we the specialized things we are focusing on, such as defense data centers, a laboratory building, robotization services in cities, private site, and with a pre-construction phase in which we much better results than in traditional management models. Now let's just move to civil engineering, where we've increased our margin and operating results, in particular the order book in our complex infrastructure business. There were not very many demand in tunneling. Our tunneling sector is we also just and access market is really exciting there. Optimization in a smaller engineering invested margins are under average.
Examples of projects which show our competence and not every well-positioned. Top left, you can see the expansion of the Zürich Winterthur railway, a very big project which we were able to win last year. In the center in the bottom, you can see a geological repository in Sweden. That shows what we can all do with our tunnel. The order book that they've continued to grow, the book, so onto our assets under management, next year for the first time. That's been a further improve the margin. EBIT has also been improved. This is a good mix option. We also have services. The risks are less and margins are higher. It's going in the right direction. Yeah. Ability on the bottom of the value chain.
The top left, I presented this in the half year, as well as a shopping center in Bern. This is how we can work with our integrated skills. I planned the building technology and with our modernization, we were able to, we were given, we are able to modernize and renovate shopping centers with this integrated model. The in combining services alongside the divisions, we have also been able to launch in or continue infras- initiatives across divisions. Last year, we were able to certify 90 new Lean experts last year. They implement our use cases and our toolbox in the organization. That's extremely important for us. We want a specific pl- calc- new ways of parallelizing.
An example is the Gubrist Tunnel, which was able to be before the due date. Sustainability is also an important imperative, it remains, we have a few examples significantly. Last year, we were able to reduce the absolute CO2 emissions, we were able to publish a sustainability report with new objectives. How do we do that? What's important for us, we want, that helps us a lot to use the railways and conveyor belts, we can use CO2 reduced concrete, how we can Optimize. Certainly were able to conclude a framework of AI. We have a lot of use cases here, in security at work, for example, or cameras automatically monitor who's moving, also trying to optimize it.
Last year, this year, we calculate norms with BIM models as a standard. We also have benchmarking tools to make sure that the building costs we've calculated are the right ones. We do not just look at building costs from a calculation perspective, but with post-calculated projects, we look at different perspectives with publicly available data and internal databases. We ask the question, are not. That's extremely important for us. I also talked about new contract models in the first half of the year, which were extremely important because the market is growing, the master builders cannot build things to contract in all cases.
We need management models, we need to understand them, and that's why we have set up a Center of Excellence, which ensure that in all projects our contracts are and how you can obtain information, what the things look like technically. Last year, in the second half of the year, we were able to set up a Center of Excellence on that. We have the first full-fledged IPD project in BIM. There's a great project that we coordinated the building and then and contribute our skills to this. Before I give the floor to our CFO, Stefan, I'd like to show you a video to give you some insight.
We plan. Safe and efficient implementation is based on well-planned processes, close coordination, and precise execution. This is particularly true for milestones such as a tunnel breakthrough.
Operations continue. Minimal disruption for users must be combined with the desired construction quality. Implenia implemented this in a bridge construction. Implenia combines in-depth planning and implementation expertise. Every bridge is unique and will last for generations. Infrastructure with a high degree of technical precision. Real terms. Digital tools. Data centers require the highest precision to deadlines. Modernization connects the existing with the future into iconic buildings. Integrated operating concepts are required for mixed-use sites. Wincasa Center and mixed-use site management ensures smooth operations and value. Operations run smoothly. The building. Logistics throughout the entire construction process. This saves time and money and reduces risks. Sustainability and energy for future-proof real estate. From infrastructure to real estate, responsibility for 20 years. Us and partners, we are shaping the future. One successful.
In the year 2025, we were able to grow our order book by CHF 1.7 billion. Growth of 25% over the previous year's period. Moreover, we present for 2024 the buildings order book revenue in financial year 2025. In the operative units, now let's continue with Implenia's profitability. In 2025, which compared to percent, the EBIT margin 0% and was generated by all divisions. We were able to improve the results before tax despite higher external financing costs and dialing of two bonds. The tax expenditure in financial year 2025 was in the normal range, unlike 2024, financial year 2024, which was affected by one-off tax effects. In this period, CHF 9 million to CHF 125.3 million.
Cash flow was improved significantly this year through a higher EBITDA, around a 10% growth, in particular through higher advance payments. Our objective is to continue two versions. At the end of December CHF 2,033,000 were maturing in March 2026. Through improving Net Working Capital, in particular, grew as of the 31st of December 2025, to 23.5%. Adjusted for the time deposits from the early refinancing of the bond maturing in March 2026. Implenia, as per the 31st of December 2025, all lines of credit were fully available to the company. Moreover, we were able to extend the maturity profile through two successful issuances of bonds.
The business success and the strength and balance sheet, the board of directors requests that the AGM of the 31st of March 2026 agrees to increase the dividend to CHF 1.40, which is an increase of 55% per share. To sum up, the operative cash flow was improved by 218%, was reduced by 61 million Swiss francs. Was lengthened with both refinance bonds, not this due in 2028. 2.3 percentage points to 23.5% position and the strong company, which is final to 10 years. Now I'm going to hand back.
Thank you very much, Stefan. Things keep going. Let's look to the future. Implenia is s ome of you all know this slide.
In Switzerland, we are market leading in various domains in, we help in our European home markets, we're also number one. Come to us frequently. Order book is the pre-calculated margin to estimate future profits aggregated from orders remaining with new orders and were much higher of. It's good that we're able to benefit from this market development and that we're well-positioned. On the left-hand side, you can see that for 2025, we have pretty much as 2025 for end of 2025 to 2026. We don't expect a significant increase for this year. If we look at the end of last year, for at the end of this year for 2027, what we have than at the end of 2024 secured for 2025.
If things continue in this way, we will be able to expect a high growth in revenue from next year, and the same will apply for the following years of projects which we have recently won. These projects need time before the revenue is generated. Our project intended team on March turnover. This is an aggregation from all projects here. The graph, I mean. Now back to this next slide. You can see that certain projects generate most of it. If you did tour to double track machines are running and that's is only then that will generate. The revenues are continuing. Its infrastructure is not just on the basis of current... We can see positive development.
The availability of construction loans has improved through various legislative improvements on promoting bonds, and a great market. Our growth is even much higher. They are a great area of growth. Just enter a group leadership on the basis of this market context has continued to work on our vision. Staff, what have we done? Well, we key priorities. We have. We're focusing on a performance now in our values, and we want a cultural performance. Shin, growth. Don't just want to invest capital. We also want to grow. We want to grow profitably in active. That's why we have set up a culture program this year, which will be rolled out to all domains and performance. Economic aims across Implenia.
What are we doing this year? It's in a certain fund in this. Talents, more teams that we've had before. We have been cautious in employing people. We'll continue with that approach. We want to go, we want to project in Value Assurance. If we calculate for a project and we want to have competent staff. That will be hiring teams which can cover this additional demand which we have not been able to cope with so far. As I mentioned in engineering and civil engineering, we really want to streamline, and we'll continue to work on that. We continue to make sure that profitability growth and certain organizational measures within the division of strategies here.
We also want a negative impact on our balance sheet this year. That's what we're expecting around CHF 150 million to make. We have a target of over CHF 150 million EBIT from next year based on these investments. The midterm goals ratio and over 5.5% EBIT margin. I think nothing is constant as change. We have two changes in group leadership. Anita Eckardt will focus on her Board of Directors division. We have our division six and Wincasa. I think in auditioning the former division specialties and now the service business.
With Claudia Bidwell more than six years, and she's being replaced by Petra Feigl-Fässler, who is extremely well-placed to push forward the next growth phase of Implenia from the HR perspective. We look forward to her joining Implenia on the 1 September. To sum up, Implenia is extremely well-positioned. We have growing market capital in where a range of offerings and back to him. Thank you very much. Thank you very much, Jens.
Tier two to give you the insights in our activities. One is the big Marienhof project in the center of Munich. The second one. 3rd of June, we'll run an Investor Day. The strategy we have just presented. The modernization of the Yale Morley, we'll be shaping the future with a large celebration.
We look forward to seeing you there too. On the 31st of March, our mid-year results of 2020 system over the lunch, or, you can claim. Just to remind you, ask them on-site also, you know who you are, for whom, for which group, you are here. Please speak into the microphone so that. Start with the first questions here. Thank you very much.
Holger Frisch at Zürcher Kantonalbank. I have three questions. Firstly, the EBIT development of CHF 150 million this year from associated comp-- What direction are things going into? Is that the first question?
Yeah. The first question, do you want to ask all the questions together at the same time?
I've seen cash flow means dissolving over 30%, CHF 30 million in provisions. Where does that come from? I'm interested in the business development of Wincasa. What is it?
Yes. Doing a civil engineering. There we've got growth. We work on the basis of resource availability and local partnerships, which we need in these joint ventures quite often. In the complex infrastructure projects, it's often necessary to work in joint ventures. This trend is important for sharing risks. That's an important part of that. We work together with strong partners. We have a certain... So we check them thoroughly beforehand. The trend, these are very profitable projects. Much more profitable than the small, decentral projects.
Therefore, the trend is understandable and correct. Just I'd like to add something. We want to grow optional effect of Swiss properties should impact. It's not something which we run centrally in terms of managing our results. We have, we look at each project individually, with the project management and the legal team, we plan the projects, sometimes that requires the formation and the liquidation of provisions. Last year, we saw that our predictions were much safer in terms of final costs and legal costs of project decisions, it's not provisions just on their own. In terms of bookkeeping, it's creating, using, and dissolving provisions and the net result of that. That only speaking of account.
We look at the line. We are getting better in the precision of our predictions, and that has an impact on our provisions. Now, the business development of Wincasa, we are following our plan with Wincasa. The margins there are very high. We have been able to expand existing partnerships, assume that as originally planned, the takeover will take place next year. We are expecting 5 million assets under management with Publika, and so, we are very positive on the development of Wincasa.
Thank you very much for the answers. Who can I give? Thank you very much. Thomas. 2025. How much of that will also be in 2026?
How much is staff costs and how much are one-off costs, of the costs will also have to be paid in l ooking to 2027? That can mean a lot, however, lot of different things. Could you break it down a bit more?
Because at the lower end, that would mean that there would no longer be any organic improvement. The organic is from 2,050. Outlook at over 150 on the line. We'll give you an update on this. I'll give you an update on that at the end of the year when we know how, the order book and the pre-calculated margin, all these things have developed. Organics for next year.
For now, it's over 150 and basis on current figures, we can look positively to the future. The other question was, how much of the CHF 20 million is attributed to what section?
Or this M&A costs, this in detail. That's why one-off costs. There figure in sync skills and teams, that will be less than CHF 5 million or maximum CHF 5 million will remain on the. The exact, we expand independently of the cost we have for M&A and such things.
Very good. Many thanks.
Can I ask? Thank you very much. I have a question for Mr. Vollmar. In a real estate journal, I read that Implenia under your leadership, that might be your program.
Yes, that is my personal ambition. I'm still young. I've got a few years to achieve that still. We're convinced, I'm convinced that we can become twice as big, at least. We can generate a lot more margin in revenue than currently. The markets are ideally placed for that. We are ideally positioned in them. What's great is that we can grow without generating additional structure costs. The structure we currently have, we can generate a lot more revenue. How do we want to grow? I don't think I can answer that for the whole group. I have to answer it per division. In real estate and buildings, we want to drive forward specialization, in particular in data center building. There we see margins which are much, much higher.
It's clear we're getting older. The world population is becoming older. We need more health care, health buildings, and in the sites we're active on, there's a lot of research underway, and we need laboratory buildings for that. Actually data centers, that's done. In terms of civil engineering, we don't have to be extremely innovative because we have the right skills. We are well-positioned. We can grow organically. We have requests for hydropower, port handling infrastructure. You can see the growth really. We don't need to buy anything up there. In buildings, we have an ideal target. Example in buildings, then we'll look at that. Inorganically, we don't want to grow. We'll develop new skills. There were new skills which we can't develop so quickly inorganically.
In planning, it'll take a few years for us to have the skills and experience needed to grow. In, within the divisions, we don't actually need inorganically. I can see your hand's gone up there.
A follow-up question on this thing, bigger in the service building. Would you then finance it via shares? How commitment are you to an investment grade credit rating?
We hope that we'll receive credit ratings if we don't have them already. Increase or buying shares, well, that's not an option at the moment. We assume that we have, if necessary, we will have a potentially loan framework for that. Over the last few years, therefore, we do not see any capital, but we will be prudent with M&A.
We'll look at that with great care. An indirect increase, and for shareholders, that's On the basis of the existing business, we want to be able to do accretive deals. Business planning is not. That's nothing, something optional. Any front. Objects you're building and where are they? in Beringen. What's interesting is that we're not just the fit out, and these are projects which easily cost several hundred million francs for one data center. These are big volumes which we can do. We have developed specialist teams. We have a handful of projects which we're working on in Switzerland, just in Switzerland alone. We don't have any being built.
Great. I have a few questions from the chat. Rainer Rickenbacher, Finanz und Wirtschaft.
Can you say how much real margin differs from the pre-calculated project margin?
In the past, five, six years ago, we were about 1% away from what we calculated. As we estimate, and the surprises at the end of the project are not really there anymore. We have constantly revised the project margins every month together with finance and project management. If necessary, the project management changes the project, the planned profit margin. The predictions are precise. Do you have anything else to say, Stefan?
No. Over the last period, we've increased, improved significantly. Since Value Assurance, we've had no big.
Lukas Spang from Tigris Capital is asking three questions.
Firstly, how much revenue you have in the finance year in the data center domain, and what's your outlook for 2026?
The figure for the data center, they descent. I don't have the precise revenue, but it's less than 5% of the revenue. The margins are much higher, however. We can also take on the question and in the future, and the growth rate is also much higher than in traditional buildings.
Now, the second question by Lukas Spang. You spoke about higher expected revenue growth in 2027 and following years. From today's perspective, can we quantify that more or less? Could you give a lower limit, perhaps?
Good question. Thank you very much for that.
What we can see now is that for next year, we have secured production output than the production output we had at the end of for 2024 up to 2026. If everything continues without change, we'll have this. If we acquire at the same amount of projects or revenue, the production output next year will be 25% higher. If we assume that nothing changes, that will be the case. If we be a bit lower. Best prediction, top line next year than in this year.
The great third question from Lukas Spang. How do you view the German investments outside of the debt brake? Projects on the market. I would be interested in your estimations, your outlook.
We are asked about if a lot of, I was in Germany recently, you go there regularly. What I saw is that there were a lot of bridges which, because they need to be expanded, the, with a traditional, excluded from the debt brake. Projects from the standard or the exceptional investment, we just benefit from the investment beyond the debt brake will lead to further investment we're not aware of. It doesn't matter that much. Margin on debt, okay. It's also profit 2.9%.
Explain this. What are your targets for this next year or this year and next year?
Thank you very much for the question. We are expecting higher margins, in particular in large infrastructure projects.
Why is the margin still low, though? We have a significant share of decentralized, small island. This business has a margin lower than average. We want to reduce this sector. That's why we're expecting higher margins. We have developed budgets in line with this, which go a lot beyond the current profit margin. Our divisions are saying, "Oh, we have manager here, we agree at these higher margins." We'll get there. Mark sent one... You said then we consider objectives. We are now at 4%. Think that next year will come a lot closer to 4.5%. We will then confirm new objectives.
The 4.5%, as you'll see, each year, we have added 0.3% more or less for the positive development of the margins.
Questions in the chat window. Do we have microphones coming and see your hand going up. Second question is CHF 1 million, which, could you give me a value or could you give me a range. Costs and what direction you think this should go. What are the levers on specific percentages.
Quickly billing quickly dealing with claims quickly, solving things quickly with the building managers. In the past, the projects were very, processes were very slow.
We have very ways to tackle this, avoiding suits, making a settlement early. Levers, we're focusing on cash flow, for example. Committed to financial incentives for staff to ensure that their action, this kind of action is promoted. Networking. Created further incentives. 55. We had high debt finance. Two bonds early, that generated one-off costs. There were also higher interest rates while we had two running at the same time. Don't forget, we had two bonds which matured. They were from the with lower costs, that played a role.
That's why the costs were higher at CHF 86 million, because we won't have to refinance bonds, and because we won't have two running at the same time, we expect the debt financing costs in will be reduced. Thank you very much. Do we have any further questions here in this room? I can see a hand going up there. Yeah. Danke. Thank you very much. I've reduced the staff and I want to become a white collar company, a scalable company. However, then you will depend business part due to the German investment beyond the debt brake. We are not reducing staff for its own sake. For us, staff are not a relevant cost.
We focus on margining projects and key staff, and certainly competent are enough, blue key. We think that margins will be declining or turn to zero in the midterm. We have such building site managements. Polishers, for example, will be retained. Blue collar staff, work sites, we are not going to reduce them currently. Could I add, it's all about the sub-companies and partnerships with sub-company suppliers. We ensure their skills and capacities and that's why we have a higher priority for them. We are managing that. Be available for us. They'll provide capacity for us. In the building of hospitals. Said to be invested in EUR 6 billion out of the debt brake.
How relevant is this sector nowadays, and what expectations do you have?
Thank you very much for the question. It's a very important sector for us. Health and laboratory building and the main drivers of our growth. Gigantic. We have a lot of skills in Switzerland. We're building up dedicated teams in Germany too. For the future projects, we are developing partnerships with large German companies for buildings. We have upcoming projects of several million francs as of Munich. In Waldshut, we have one just by our border. We have some in Hamburg too. We're going to do this with our partners in Germany because we can't build the risks and skills.
We need to work with others and we are convinced, we hope that we are going to benefit from that approach.
Another question. Order book. After the very good level in... Just to make it comprehensible, how do we approach contracts?
Stefan and we are the technical staff to... We only accept them when we have the capacity to provide offers, when we have the right JV partners and contractors. That's when we accept things. We say yes to the calculation offer phase, then we positively. We've been... Now, will the contract situation continue to improve? The market situation would suggest it, and we believe that we'll be able to continue to acquire selectively. If there's further growth, we'll need more staff. We were transitioning that this year.
That's why the investments in staff were not yet generating turnover. We are not guiding based on the order book, but profitability. Though I can say the environment is positive to sum it up.
Do we have a last question here from people present face- to- face?
Yeah. Jens Vollmar outside for you. I'd like to wish you the day for everyone in the stream, and see you next time. Thank you very much.