Stadler Rail AG · SIX:SRAIL
Stadler Rail — Investor Day (September 2022)
104 slides from Stadler Rail's investor day presentation, Sep 1, 2022
Slide 1: On Track for the Future - 1st Capital Markets Day
ON TRACK FOR THE FUTURE 1ST CAPITAL MARKETS DAY 1 September 2022, St. Margrethen
Slide 2: Agenda
AGENDA 9.30 Powerful on the way to the future Peter Spuhler 10.45 Operational excellence to further enhance efficient delivering of the order backlog Markus Bernsteiner 11.00 Site tour 12.00 Lunch break 13.00 Shaping the future of sustainable mobility through our comprehensive railway portfolio − Ro
Slide 3: Powerful on the Way to the Future
POWERFUL ON THE WAY TO THE FUTURE 1ST CAPITAL MARKETS DAY Peter Spuhler, Executive Chairman of the Board of Directors and Group CEO a. i.
Slide 4: From Niche Producer to a Global Provider
FROM NICHE PRODUCER TO A GLOBAL PROVIDER 80 YEARS OF SUCCESS STORY Headquarters in CH >10,000 vehicles sold in 42 countries Stadler Capital Markets Day 2022 | © Stadler | 1 September 2022 4
Slide 5: Innovation the Driver of Profitability
INNOVATION THE DRIVER OF PROFITABILITY Technology and Product Order intake Revenues EBIT innovation development Stadler Capital Markets Day 2022 | © Stadler | 1 September 2022 5
Slide 6: A Leading Global Player in Railway Sector
A LEADING GLOBAL PLAYER IN RAILWAY SECTOR Strong track record in the last decades − Track record of growth and resilience through adverse conditions – from 18 employees in 1989 to 13,000 today 3.6 bn CHF sales in 2021 − Leading positions in our home markets and in strategically selected segments − 1
Slide 7: What We Have Achieved Since Our IPO in 2019
WHAT WE HAVE ACHIEVED SINCE OUR IPO IN 2019 At IPO 2022E >8,500 Employees, including >2,000 engineers(1) >13,000 +53% >170 Million kilometres covered every year by vehicles 250 +47% serviced by Stadler 13.2 21.7(2) +64% Backlog in CHFbn 3.7- 2.0 + ~90% Net sales in CHFbn, implying ~18% CAGR since FY
Slide 8: Stadler Operations – Key Pillars
STADLER OPERATIONS – KEY PILLARS ▪ Immediate transfer of Belarus activities affected by sanctions to other sites within the Group. Decentralised and agile organisation ▪ Manufacturing of converters successfully moved to Poland and production employees placed at various Stadler locations ▪ Several ke
Slide 9: EBIT Margin Guidance 2022
EBIT MARGIN GUIDANCE 2022 8-9% ~1% ~1% ~1.5% ~0.5% 5-6% Guidance IPO Supply chain Inflation FX impact One-offs 2022 Guidance 2022 disruptions BBR(+) and Belarus(-) and transport Note: size of chart elements are illustrative only. Stadler Capital Markets Day 2022 | © Stadler | 1 September 2022 9
Slide 10: Stadler's Three Most Important Strategic Dimensions
STADLER’S THREE MOST IMPORTANT STRATEGIC DIMENSIONS RECIPE FOR SUCCESS Market 1 Segments 3 Markets 2 Products & Solutions Stadler is active in select market segments and specific geographical markets with high quality products & solutions Stadler Capital Markets Day 2022 | © Stadler | 1 September 20
Slide 11: Strategic Dimensions: Example Green Technology
STADLER’S THREE MOST IMPORTANT STRATEGIC DIMENSIONS EXAMPLE GREEN TECHNOLOGY Green Technology Market 1 New market segment to cater to a Segments growing customer demand for the decarbonisation of rail fleets Europe & USA FLIRT 3 Markets 2 Products & FLIRT AKKU for Europe Solutions FLIRT AKKU FLIRT H
Slide 12: Comprehensive Portfolio for the Broader Rail Ecosystem
COMPREHENSIVE PORTFOLIO FOR THE BROADER RAIL ECOSYSTEM Market segments, vehicle families, Service & Systems Type Market segment Vehicle families Tailor-made Service & Systems Very High Speed Not a strategic focus Signalling Service Full Service & Spare High Speed System Solutions Parts Intercity Tra
Slide 13: Review of Selected Growth Initiatives I/II
REVIEW OF SELECTED GROWTH INITIATIVES I/II Focus area Review Highlights Green Technology Market Segment Electrical multiple units (EMUs) − Growing demand for alternative traction Bimodal multiple units (BMUs) − Technologies met by successful Alternative traction multiple units (XMUs) development of
Slide 14: Review of Selected Growth Initiatives II/II
REVIEW OF SELECTED GROWTH INITIATIVES II/II Focus area Review Key orders since 2019 60 KISS for SBB; up to 510 FLIRT for Maintain momentum in key home Switzerland; up to 1500 METRO cars for Berlin, Home & Focus markets, Switzerland and Germany Germany, 113 FLIRT Akku for Germany Build on success to
Slide 15: Confirmed Market Trends and Dynamics
CONFIRMED MARKET TRENDS AND DYNAMICS Global mega trends supporting How is Stadler positioned to capture those trends? the railway sector Stadler Rolling Best-in-class in Urbanisation Offering Integrated Stock as a Solid Signaling and Solutions Base Services ▪ Environmental-friendliest and ▪ Digitali
Slide 16: Market Outlook and Stadler's Leading Position
MARKET OUTLOOK AND STADLER’S LEADING POSITION Stadler’s strategic markets Global rolling Global rolling stock stock Targeted market 1 2 segments 3 Targeted regions OEM market OEM market 2019(1) market size (€Bn) 54 35 27 2014-19(1) CAGR +1.7% +2.2% +4.7% 2019-24(1) CAGR +3.6% +4.4% +2.3% Freight Car
Slide 17: Competitive Landscape: Market Share by Region
COMPETITIVE LANDSCAPE MARKET SHARE BY REGION Home markets Opportunistic markets North America Europe CIS Others 14% Others CRRC Others 16% Stadler CAF Alstom 1% 17% Alstom Stadler 6% 5% 39% 2% 31% GE Hitachi Alstom 8% Rail 2% 7% TMH Siemens Stadler Siemens 69% CRRC 13% Siemens 19% 7% 23% 10% Rest of
Slide 18: Competitive Landscape: Global Market Share by Segment
COMPETITIVE LANDSCAPE GLOBAL MARKET SHARE BY SEGMENT Focus segments Multiple Units LRV Locomotives TMH Alstom Alstom 22% Others 22% 20% Others Others 33% 37% 41% Hyundai Stadler CAF Alstom Rotem 14% 10% 11% 4% TMH 9% Stadler CRRC CRRC Siemens 1% Hitachi 10% Skoda 10% 5% Rail TMH 4% CRRC Stadler Prog
Slide 19: Competitive Landscape: European Market Share by Segment
COMPETITIVE LANDSCAPE EUROPEAN MARKET SHARE BY SEGMENT Home markets Focus segments Multiple Units LRV Locomotives Pesa Others CAF 1% 12% 3% Siemens Others Alstom 6% 31% 31% Siemens Alstom 34% Hitachi Rail 44% 8% Pesa Stadler CAF 3% Alstom 26% Skoda Stadler 17% 22% 13% Stadler 8% 10% Metro High Speed
Slide 20: The Rail Ecosystem
THE RAIL ECOSYSTEM Infrastructure Construction Feasibility Study Rolling Planning Financing Service Operation and Profitability Stock Signalling With rolling stock at our core, Stadler is catering to our customers’ growing demand for full-package solutions Stadler Capital Markets Day 2022 | © Stadle
Slide 21: Strategy 2025: Focused on Profitable Growth
STRATEGY 2025: FOCUSED ON PROFITABLE GROWTH Service & Rolling Stock Signalling Components • Selectively win • Must have ETCS • Growth in Europe market share accessible Win market share and stabilize in focus markets • Further advance through best markets and products and new in-house installed base
Slide 22: Our New Mid-Term EBIT Margin and Revenue Guidance
OUR NEW MID-TERM EBIT MARGIN AND REVENUE GUIDANCE Mid-single digit revenue growth 8-9% ~1-2% 7-8% >7% 5-6% After operational excllence measures Guidance 2022 Macro One-offs 2022 Normalised Service growth Signalling Ambition in a Macro Stadler 2025 environment Guidance 2022 normal macro environment e
Slide 23: Experienced and Dedicated Team Further Strengthened
EXPERIENCED AND DEDICATED TEAM FURTHER STRENGTHENED BY RECENT APPOINTMENTS Group Executive Board Board of Directors Peter Spuhler Hans-Peter Schwald Barbara Egger-Jenzer Dr Christoph Franz Peter Spuhler Raphael Widmer Dr. Ansgar Brockmeyer Markus Bernsteiner Executive Vice President Chairman Vice Ch
Slide 24: Thank You
ON TRACK FOR THE FUTURE THANK YOU .
Slide 25: Succession of the Group CEO
SUCCESSION OF THE GROUP CEO MARKUS BERNSTEINER NEW GROUP CEO AS OF 1.1.2023 − Current Deputy Group CEO and Executive Vice President Division Switzerland, CEO of manu- facturing sites in Bussnang and St. Margrethen − With Stadler since 1999 − Has successfully held numerous management positions − Mana
Slide 26: On Track for the Future
ON TRACK FOR THE FUTURE 1ST CAPITAL MARKETS DAY 1 September 2022, St. Margrethen
Slide 27: Operational Excellence to Further Enhance Efficient Delivery of the Order Backlog
OPERATIONAL EXCELLENCE TO FURTHER ENHANCE THE EFFICIENT DELIVERY OF THE ORDER BACKLOG Markus Bernsteiner, Executive Vice President Division Switzerland and Deputy Group CEO
Slide 28: Facts & Figures St. Margrethen
FACTS & FIGURES ST. MARGRETHEN Center of Competence for: • Structural Engineering 100 MCHF • Structural Analyses INVESTMENT IN • Products KISS, Heavy Metro and Coaches BUILDINGS AND FACILITIES 550’000 1’300 ENGINEERING HOURS PER YEAR EMPLOYEES 1’050’000 200 PRODUCTION HOURS PER YEAR ALUMINIUM CARBOD
Slide 29: Our Pursuit for Operational Excellence
OUR PURSUIT FOR OPERATIONAL EXCELLENCE 2019: Altenrhein 2022: St. Margrethen Movements of carbodies Unsuitable infrastructure: Ceiling height Efficiency Increase Core Mission: Development & Eliminate Operational Production of Rail Inefficiencies Core Mission Excellence Core Vehicles Mission Commissi
Slide 30: Our Multi-Dimensional Production Model
OUR MULTI-DIMENSIONAL PRODUCTION MODEL External influence on Stadler Finance Service / Life-Cycle Cost (LCC) Signalling Product Development & Product Management Development & Production of Rail Vehicles Market & Customers Material Hours Capabilities & Know-How Engineering Engineering Production Supp
Slide 31: Our Levers for a Comprehensive Gain in Efficiency
OUR 3 LEVERS FOR A COMPREHENSIVE GAIN IN EFFICIENCY 1 2 3 Organisation Processes Employees • From an "expert organisation" to self- Mindset • Every process was analysed, organising teams taken apart and optimised • Improved networking and Abilities communication between departments • The processes w
Slide 32: Stadler Toolbox for Efficiency
STADLER TOOLBOX FOR EFFICIENCY • Toyota Manufacturing System • Industry 4.0 • Just-In-Time Assembly • Big Data & Analytics • Implemention of tact assembly • Kanban • State-of-the-art manufacturing processes • Kaizen • Optimisation of pre-assembly units • PDCA-Cycle • Machine Learning • Push- vs. Pul
Slide 33: Efficiency Gains Achieved Since 2020
EFFICIENCY GAINS ACHIEVED SINCE 2020 Comparison of production hours of Series 2 and Series 3 Effects of efficiency gains on capacity (identical vehicle, exclusion of Series 1) (in 1’000 hrs, single shift operation) 120% 1’050 100% Plus >60% 80% 650 60% 40% 20% 0% 1 2 3 4 5 6 7 • More intense utilisa
Slide 34: Mastering the Complexity of the Supply Chain
MASTERING THE COMPLEXITY OF THE SUPPLY CHAIN 2 main impacts of special circumstances since March 2020 “ALL UNDER ONE ROOF” on Stadler AUTOMATED EARLY WARNING All involved departments are Lead times in interaction: e.g. Acting instead of reacting • Extended lead-times in Engineering: Fast reaction pr
Slide 35: Faster Transfer of Know-How Through Multipliers
FASTER TRANSFER OF KNOW-HOW THROUGH MULTIPLIERS Plant 2021 2022 St. Margrethen CH Bussnang CH Berlin DE Siedlice PL Salt Lake City USA Valencia ES Minsk BY Other Divisions Transfer to other Stadler locations New IT applications allow for further efficiency gains Clear schedule for implementation of
Slide 36: Future Developments & Improvements
FUTURE DEVELOPMENTS & IMPROVEMENTS Focus on optimised life-cycle costs Product development: expand strong (LCC) to further increase market position in alternative competitiveness propulsion systems • Example: energy consumption in a fleet • First H2 project in delivery of 34 FLIRT vehicles over 30 y
Slide 37: Operational Excellence to Further Enhance Efficient Delivery of Order Backlog
OPERATIONAL EXCELLENCE TO FURTHER ENHANCE EFFICIENT DELIVERY OF ORDER BACKLOG • Constant pursuit of efficiency means fewer production hours to perform the same task Efficiency • Group-wide alignments and new IT applications ensure the implementation of know-how Supply Chain • Highly resilient supply
Slide 38: Thank You and Enjoy the Factory Tour
THANK YOU AND ENJOY THE FACTORY TOUR
Slide 39: On Track for the Future
ON TRACK FOR THE FUTURE 1ST CAPITAL MARKETS DAY 1 September 2022, St. Margrethen
Slide 40: Driving the Decarbonisation of Mobility
DRIVING THE DECARBONISATION OF MOBILITY 1ST CAPITAL MARKETS DAY Dr. Ansgar Brockmeyer, Executive Vice President Sales & Marketing
Slide 41: Railways the Most Sustainable Mode of Transport
RAILWAYS THE MOST SUSTAINABLE MODE OF TRANSPORT Lowest possible aerodynamic drag thanks to connected cars Lowest possible friction between Electrification possible wheel and rail and first applied more than 100 years ago Stadler Capital Markets Day 2022 | © Stadler | 1 September 2022 41
Slide 42: The Beginnings at Stadler: Stadler Goes Battery Electric
THE BEGINNINGS AT STADLER STADLER GOES BATTERY ELECTRIC 1943: Battery mining locomotive 1946: Battery shunting locomotive for BOB 1950: Battery + 600 V DC construction locomotive 1950: Battery mining locomotive for Zementwerk Wallenstadt 1970: Battery shunting locomotive for Zementwerk Laufen 1987:
Slide 43: Magnitude of Decarbonisation Problem: Non-Electrified Lines
MAGNITUDE OF DECARBONISATION PROBLEM ONLY A FRACTION OF RAIL LINES IS ELECTRIFIED 99% Percentage of non-electrified railway lines in Western-Europe* 62% For comparison 42% 39% 36% 36% 29% 28% 28% 25% 24% 0,2% USA UK FR DE ES PL NL IT AT SE BE CH Only 46% of European railway lines are electrified * S
Slide 44: Magnitude of Decarbonisation Problem: Diesel Trains Installed Base
MAGNITUDE OF DECARBONISATION PROBLEM DIESEL TRAINS (DMU) INSTALLED BASE Installed base Diesel Trains (Multiple Units w/o Locos) Western Europe Eastern Europe # units 6,610 2,240 age 21 years 31 years Decarbonisation and ageing DMU fleets RoWE RoEE drive substantial 19% replacement demand Geographi
Slide 45: Sustainable Drives Today
SUSTAINABLE DRIVES TODAY BATTERIES / HYDROGEN / FULLY ELECTRIC
Slide 46: Four Ecological Technologies: Make the Right Choice
FOUR ECOLOGICAL TECHNOLOGIES MAKE THE RIGHT CHOICE − Proven over more than 100 years, Electrification − Efficient and environmentally friendly − Used for more than a century − Newest batteries allow higher energy density and more power Batteries − For short and medium length lines − Limited lifetime
Slide 47: Alternative Drive Concepts: Energy Density of Hydrogen
ALTERNATIVE DRIVE CONCEPTS CONSIDER ENERGY DENSITY OF HYDROGEN 1 truckload H2 3 h service 3½ days service Not all solutions are appropriate for every application Stadler Capital Markets Day 2022 | © Stadler | 1 September 2022 47
Slide 48: Alternative Drive Concepts: Efficiency of Whole System
ALTERNATIVE DRIVE CONCEPTS CONSIDER EFFICIENCY OF WHOLE SYSTEM 1) From a ÖBB study about CO2 emissions1): Battery train (electric energy mix AT)*: 0,99 kgCO2/km * El. energy mix AT: 248 gCO2/kWh Battery train (electric energy mix DE)**: 1,89 kgCO2/km ** El. energy mix DE: 474 gCO2/kWh Diesel-electri
Slide 49: Alternative Drive Concepts: Operative Range
ALTERNATIVE DRIVE CONCEPTS CONSIDER OPERATIVE RANGE Operative range of drive systems for passenger trains [km] 0 200 400 600 800 1000 1200 1400 1600 1800 2000 Overhead line Diesel Batteries Fuel-cell Typical length maximal of a non-electrified line in Western Europe (approx. 80 – 100 km) Only fuel c
Slide 50: Record Breaking Technology: Lithium Batteries & Fuel Cells
224 km! RECORD BRAKING TECHNOLOGY LITHIUM BATTERIES & FUEL CELLS IN STADLER TRAINS
Slide 51: FLIRT Akku: Modular, Versatile, Future Proof
FLIRT AKKU MODULAR, VERSATILE, FUTURE PROOF Drives (Traction converter + el. Motors) High-voltage equipment (Pantograph, disconnector and Transformer) Batteries The FLIRT AKKU has an operative range longer than 100 km. Depending on the service conditions, it can be equipped with NMC, LTO or LFP batt
Slide 52: Case Study I: FLIRT UK Hybrid Wales & Borders
CASE STUDY I FLIRT UK HYBRID WALES & BORDERS TECHNOLOGY − Driving from batteries or overhead line (1AC, 25 kV) − Batteries charge while train runs under overhead line − >40 km range in battery mode − Diesel engine for emergency only (take-me-home) FACTS − Order in 2019: − 17 four-cars trains − 7 thr
Slide 53: Case Study II: FLIRT Akku Nah.SH, Pfalznetz, H-Netz
CASE STUDY II FLIRT AKKU NAH.SH, PFALZNETZ, H-NETZ (DE) TECHNOLOGY Successful concept with many features: − Battery or electric traction (1AC, 15/25 kV) − Charging batteries while running under wire − Charging batteries while braking − Charging batteries from UIC pre-heating plug − Up to 100 km rang
Slide 54: Case Study III: GEAF 2/2 Shunter for RhB
CASE STUDY III GEAF 2/2 SHUNTER FOR RHB (CH) TECHNOLOGY Two-axle narrow gauge locomotive for RhB: − Application: shunting, construction, rescue − Battery or electric traction (1 AC, 11kV) − 75 kN starting tractive effort − 700 kW in electric mode − 200 kW in battery mode Bild: Günther Lange − Chargi
Slide 55: FLIRT H2: Maximum Reach, Zero Emissions
FLIRT H2 MAXIMUM REACH, ZERO EMISSIONS Drives (Traction converter + el. Motors) Fuel cells+ H2 cylinders Batteries The first prototype will enter passenger service in 2024 on the SBCTA line in California. It can run as a two-car or four-car train. Stadler Capital Markets Day 2022 | © Stadler | 1 Sep
Slide 56: Application Example: FLIRT H2 for SBCTA
ACTUAL APPLICATION EXAMPLE FLIRT H2 FOR SBCTA (CA, USA) TECHNOLOGY Successful concept with may features: − Standard FLIRT with H2 power pack − Buffer batteries for peak power demand − Batteries recuperate braking energy − Fuel-cells charge batteries − Operates a full day without refuelling − Hydroge
Slide 57: Comprehensive Solutions for the Rail Ecosystem
COMPREHENSIVE SOLUTIONS FOR THE RAIL ECOSYSTEM ARRIVA NEDERLAND ▪ 15 x two-car ▪ 8 x three-car 23 ▪ 11 x three-car option Stadler trains in operation ▪ Multi-country (B, NL, D) ▪ Multi-system (AC 15kV, DC 3/1,5kV) ▪ Contract signed 02/2016 ▪ 23 trains delivered and in operation Full Service Refit 15
Slide 58: Thank you for your attention
Thank you for your attention… … may the right drive always be with you.
Slide 59: On Track for the Future
ON TRACK FOR THE FUTURE 1ST CAPITAL MARKETS DAY 1 September 2022, St. Margrethen
Slide 60: Enhancing the Rail Portfolio and Strengthening Our Competitive Positioning
ENHANCING THE RAIL PORTFOLIO AND STRENGTHENING OUR COMPETITIVE POSITIONING Marc Trippel, Executive Vice President Division Signalling
Slide 61: Stadler Signalling
STADLER SIGNALLING Stadler is more than rolling stock
Slide 62: Signalling Division: Strong Market Drivers
SIGNALLING DIVISION STRONG MARKET DRIVERS Demand drivers and their implications Positive outlook in focus markets M€ Signalling market outlook 2019-2024 High demand for mass-transit and capacity Urbanisation 25’000 +0.7 % increase. CAGR 20’000 Climate Need for efficiency increase and reduced change
Slide 63: Stadler Signalling So Far: Milestones and Growth Rate on Track
STADLER SIGNALLING SO FAR MILESTONES AND GROWTHRATE ON TRACK Growing order backlog Development on track MCHF 180 ETCS on-board internationalisation on track 160 (Hungary, Poland, Slovenia, Switzerland 140 +172% authorized) 120 100 CBTC solution development on track (branchline solution GoA-4 within
Slide 64: Signalling Division: A Solid Foundation for the Future
SIGNALLING DIVISION A SOLID FOUNDATION FOR THE FUTURE Stadler Signalling Stadler Signalling AG Acquisition of BBR Verkehrstechnik Opening of office in Independent legal entity since (DE) with more than 30 years’ Wallisellen, Zurich. 01/2020. experience. 2017 2020 2022 2017 TO 2022 2017 2021 2022 Fou
Slide 65: Stadler Signalling Portfolio: One-Stop Solution Provider
STADLER SIGNALLING PORTFOLIO ONE-STOP SOLUTION PROVIDER State-of-the-art signalling solutions MAINLINE BRANCHLINE/TAILOR-MADE METRO/LRV On-board ETCS Class B ATP ATP CBTC systems Wayside Interlockings (relay and electronic), train detection systems, Interlockings, crossing crossing control, switch c
Slide 66: Sites in Germany, Switzerland and Italy
SITES IN GERMANY, SWITZERLAND AND ITALY Germany − Brunswick Branchline | Metro/LRV Switzerland − Lausanne Area − Nord-West-Region − Zurich-North Mainline | Branchline/Tailor-made | Metro/LRV Italien − Mola di Bari JV AngelStar Mainline (ETCS) Presence in the signaling centres Brunswick and Zurich-No
Slide 67: Stadler Signalling So Far: Focus on Innovation and Market Entries
STADLER SIGNALLING SO FAR FOCUS ON INNOVATION AND MARKET ENTRIES Achievements Strong base for the future Mainline: successful onboard market entry in Europe, Well positioned for the growing ERTMS on-board including Refit business market and promising base for wayside market Urban: comprehensive prod
Slide 68: Mainline – Case Study Arriva (NL)
MAINLINE – CASE STUDY ARRIVA (NL) REFIT PROJECT ENSURES CUSTOMERS COMPETITIVENESS 23 Stadler trains in operation Full Service Refit • Regional transport operator in 15 years ETCS & Class B the Netherlands requires the European Train Management System (ERMTS) for international connections • Stadler a
Slide 69: Mainline – ETCS Refit Market Potential
MAINLINE – ETCS REFIT MARKET POTENTIAL REFIT PROJECT ENSURES STADLER COMPETITIVENESS Home markets with immediate Home markets as basis for Reft potential internationalisation: Potential further refit target markets Netherlands: • Installed base of 140 Stadler vehicles Germany: • Refit potential over
Slide 70: Urban – Case Study BLT (CH)
URBAN – CASE STUDY BLT (CH) CUSTOMER COMFORT THROUGH MODERN TRAMS WITH CBTC Urban Transport Market North America New player ready for +7.3% market entry: CAGR 4.50 • New player focusing on in EUR bn 3.30 innovation with next 2019 2024 generation solution • Modularity ensures migration and state-of-t
Slide 71: Strategic Direction: From Vision to Reality
STRATEGIC DIRECTION FROM VISION TO REALITY Support for the Group Mainline Signalling independence from direct competition • European system provider for interoperable solutions, and increasing value-added for the Group onboard and wayside • Leader for ETCS Refit solutions Innovation-leader Urban Goa
Slide 72: On Track for the Future
ON TRACK FOR THE FUTURE 1ST CAPITAL MARKETS DAY 1 September 2022, St. Margrethen
Slide 73: Service – Sizable, Comprehensive, Growing
SERVICE – SIZABLE, COMPREHENSIVE, GROWING 1ST CAPITAL MARKETS DAY Daniel Baer, Executive Vice President Division Service
Slide 74: Today, Stadler's Service Business Is Sizeable
TODAY, STADLER’S SERVICE BUSINESS IS SIZEABLE … 2,400+ 70 21 Employees Locations Countries 1,700+ 250 Mio. Trains under long-term km per year maintenance contracts ~22% mCHF 455 Net revenue 2021 CAGR over the last 3 years Note: net revenues for Segment Service & Components. Stadler Capital Markets D
Slide 75: A Broad Footprint That Continues to Expand
… WITH A BROAD FOOTPRINT THAT CONTINUES TO EXPAND FINNLAND FINLAND NORWAY SWEDEN RUSSIA Increase in Locations since IPO DENMARK NETHERLANDS 80 UNITED POLAND H1 22 KINGDOM 60 GERMANY 40 USA 20 SWITZERLAND HUNGARY AUSTRIA 0 2018 2019 2020 2021 FRANCE SERBIA SPAIN ITALY GEORGIA PORTUGAL New locations s
Slide 76: Our Service Offering Is Comprehensive and Well-Established
OUR SERVICE OFFERING TODAY IS COMPREHENSIVE AND WELL-ESTABLISHED Offering tailored maintenance solutions to optimise the cost efficiency and availability of customers’ fleets Long-Term Maintenance Contracts Project Business & Spare Parts Solutions Full Service TSSSA Modernisation Overhaul Repair Spa
Slide 77: Perspective on Our Successful Growth Story
PERSPECTIVE ON OUR SUCCESSFUL GROWTH STORY … Order intake Order backlog H1 22 1500 5000 H1 22 4000 M CHF M CHF 1000 3000 2000 500 1000 0 0 FY 2018 FY 2019 FY 2020 FY 2021 FY 2018 FY 2019 FY 2020 FY 2021 Net revenues Employees H1 22 1500 2500 2000 1000 # 1500 1000 500 H1 22 500 0 0 FY 2018 FY 2019 FY
Slide 78: Growth Drivers
… AND GROWTH DRIVERS Since IPO 2022+ Stadler’s installed base accessible for services 7’000 − Growing installed base drives service volume (# of vehicles) 5’000 Growth of accessible 4100 − Accessibility increases market and Stadler’s driven by privatization installed base trend and increased outsour
Slide 79: Growth Execution Case Study: Full Service
GROWTH EXECUTION CASE STUDY FULL SERVICE Depot Herne – Facts & Figures Customer VRR – Verkehrsverbund Rhein-Ruhr Contract Full Service for 33 Years Fleet Size 41 FLIRT Contract signing 2016 Start of depot New Stadler Depot Delivery of 1st vehicle for VRR Delivery of 1st vehicle «Teilnetz 2» VRR cons
Slide 80: Growth Execution Case Study: Revision
GROWTH EXECUTION CASE STUDY REVISION BRCC Hungary Bogie Overhaul − Key roles as cost center + Location Szolnok Centralised − Most maintenance-intensive of all − Hedging of FS contracts Focus European Market components BRCC Germany − Protection of key know-how − Centre of competences to cover the Sch
Slide 81: Growth Execution Case Study: Modernisation and Repair
GROWTH EXECUTION CASE STUDY MODERNISATION AND REPAIR Arriva – ETCS Refit Vy - Repair Full Service 23 Facts & Figures Stadler trains in operation Customer Arriva Customer Vy Contract Signing 06.2020 Accident Date 05.2020 Full Service Refit Fleet Size 23 FLIRT 15 years ETCS & Class B End of Repair 12.
Slide 82: Growth Execution Case Study: Digitalisation
GROWTH EXECUTION CASE STUDY DIGITALISATION Rail Data Service (RDS) RDS Solutions Internally developed tool for the constant monitoring of trains Condition Based Maintenance Maintenance − Display and analysis of all relevant diagnostic data and fault 2.0 indications ✓ Stretching of maintenance tasks
Slide 83: Way-Forward: Strategy 2025
WAY-FORWARD: STRATEGY 2025 Stadler Service Today Strategy 2025 Sizeable business Continue the successful Achieving the next growth story level of profitability Broad footprint that continues to expand − Realising scale- and network − Strategic element in Stadler’s effects comprehensive porfolio driv
Slide 84: On Track for the Future
ON TRACK FOR THE FUTURE 1ST CAPITAL MARKETS DAY 1 September 2022, St. Margrethen
Slide 85: Financial Performance
FINANCIAL PERFORMANCE 1ST CAPITAL MARKETS DAY Raphael Widmer, Group CFO
Slide 86: Conservative Accounting Principles
CONSERVATIVE ACCOUNTING PRINCIPLES Revenue • Percentage of completion method: units-of-delivery method recognition • Revenues are only booked when a train is delivered; costs are calculated using actual project margins Total cost (nature of • Expenses are classified by their nature (production costs
Slide 87: Financial Risk Management
FINANCIAL RISK MANAGEMENT • Currency exposures are naturally hedged where possible, e.g. EUR-denominated contracts • In regions where Stadler is exposed to a structural mismatch between the currency of its net revenues and costs, it utilises hedging tools such as foreign currency forward contracts a
Slide 88: Highlights of the Financial Profile
HIGHLIGHTS OF THE FINANCIAL PROFILE Since IPO Going forward Strong top-line growth () Growing high-quality, diversified order backlog Significant revenue visibility from existing order backlog and expanding services business Strong and resilient profitability, high asset efficiency and se
Slide 89: Long-Term Development of Key Financials
LONG-TERM DEVELOPMENT OF KEY FINANCIALS Unpegging of Growth & Current global European crisis CHF vs. EUR execution COVID-19 conditions 8’000 7’000 6’000 5’000 Order intake (CHFm) 4’000 Average order intake (CHFm) 3’000 Book-to-bill ratio (1) 2’000 1’000 0 (2) 2011 2012 2013 2014 2015 2016 2017 2018
Slide 90: Net Revenue and Attractive Book-to-Bill Ratio
NET REVENUE AND ATTRACTIVE BOOK-TO-BILL RATIO (in CHFm) Comments Growth 60% (4%) 18% 4% • Net revenues are a function of order intake and 3’635 timing of vehicle deliveries (units-of-delivery under POC). On average, around 3 to 4 years 3’201 3’085 between order intake and revenue recognition • Net r
Slide 91: Operational Profitability Since 2019
OPERATIONAL PROFITABILITY SINCE 2019 EBIT & EBIT margin (in CHFm / in % of net revenue) 6.1% 6.2% Comments 5.1% 4.5% • EBIT-margin below initial expectation since 3.5% IPO against the backdrop of a highly challenging environment characterised by 194 224 Covid, supply chains disruptions, Inflation, 1
Slide 92: Significant Currency Headwinds
SIGNIFICANT CURRENCY HEADWINDS EUR/CHF exchange rate Comments 1.14 1.12 • ~15% deterioration in EUR/CHF rate since early 2019 1.10 with a strong appreciation of the Swiss franc in H1 1.08 1.06 2021, in particular against the EUR in, shortly before 1.04 financial closing 1.02 1.00 0.98 • Translation
Slide 93: Capex Cycle About to Be Concluded
CAPEX CYCLE ABOUT TO BE CONCLUDED Capex (in CHFm) 288 Comments 248 57 • Over CHF600m invested into fixed assets since 2019 to ensure all sites 35 are state of the art with capacity ~200 secured to deliver on record order 188 backlog 14 177 • Capex over initial expectations as a 66 ~120-150 result of
Slide 94: Conservative Revenue Recognition: Units-of-Delivery Method
CONSERVATIVE REVENUE RECOGNITION PERCENTAGE OF COMPLETION: UNITS-OF-DELIVERY METHOD Phase I: Phase II: Phase III: Phase IV: Phase V: Signing Engineering Manufacturing Delivery Warranty Project phases 6m 1y 1.5y 3-4y 3-6y Milestones payments Milestones payments Delivery payment (10% - 30%) (70% - 75%
Slide 95: Cash Flow Cycles Through Project Execution
CASH FLOW CYCLES THROUGH PROJECT EXECUTION Cash in Front-end loaded cash Cash out profile Cash flow Net cash Cash in Back-end Cash out loaded cash profile Cash flow Net cash Comments ▪ No structural change in customer behaviour regarding payment terms, but customer and market specific cash flow prof
Slide 96: Net Working Capital Evolution
NET WORKING CAPITAL EVOLUTION Net working capital(1) (in CHFm) 403 115 27 58 -323 -443 -710 2016 2017 2018 2019 2020 2021 30.06.2022 Orders with substantial advance Consumption of advance payments as orders Catch-up of covid delays, payments at early stage of order are being executed progress and fi
Slide 97: And Robust Balance Sheet
AND ROBUST BALANCE SHEET Net cash (in CHFm) Comments Current financial • In 2021, net cash position increased due 1’149 929 888 liabilities 753 to advances from new orders as well as Non-current financial accelerated vehicle, milestone and final (468) (534) liabilities payments on orders in executio
Slide 98: Growing Backlog Given Strong Order Intake
GROWING BACKLOG GIVEN STRONG ORDER INTAKE Order intake (in CHFm) Comments 5’974 5’566 16 • Order intake in H1 2022 driven by key 5’117 1’062 orders from SBB (CH), ÖBB (AT), and 734 834 4’332 VDV. (DE/AT). 1’456 • Growth in order backlog though strong order intake since 2019 will drive 4’832 4’896 re
Slide 99: Diversified, High-Quality Order Backlog
DIVERSIFIED, HIGH-QUALITY ORDER BACKLOG… Order backlog by region Order backlog by market segment Share of top 10 orders(1) DACH 1% DACH 4% 1% 9% 6% 2% 23% 6% DACH 40% 5% 3% DACH 8% 3% Americas 30% 57% 3% 62% 2% 3% DACH 12% 2% W.E. 2% DACH 10% 7% DACH DACH Trains DACH Locomotives Western Europe Metro
Slide 100: Providing Significant Top-Line Visibility
… PROVIDING SIGNIFICANT TOP-LINE VISIBILITY Share of expected net revenues secured by existing orders 100% ~95% ~85% 80% ~70% 60% 40% 20% 0% 2023E 2024E 2025 Strong revenue visibility combined with our state-of-the-art manufacturing capacities and operational excellence initiatives Stadler Capital M
Slide 101: New 2025 Financial Guidance
NEW 2025 FINANCIAL GUIDANCE Order intake >1.5x book-to-bill on average Net revenues mid-single digit growth on average 7 - 8% in 2025 EBIT margin 8 - 9% under normal market conditions Net working Long-term level of zero NWC with swings over the cycle capital Capex CHF 120-150m Dividend Approx. 60% o
Slide 102: Thank You for Your Attention
THANK YOU FOR YOUR ATTENTION 1 September 2022, St. Margrethen
Slide 103: Disclaimer
DISCLAIMER IMPORTANT NOTICE This presentation (the "Presentation") has been prepared by Stadler Rail AG ("Stadler" and together with its subsidiaries, "we", "us" or the "Group") and includes forward-looking information and statements concerning the outlook for our business. These statements are base
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