Ovk · RUS:UWGN
Ovk — United Wagon Company — Moscow Exchange Forum 2015, London Session
34 slides from Ovk's conference presentation, Dec 9, 2015
Slide 1: RPC UWC Investor Presentation, Moscow Exchange Forum 2015
RPC UWC Investor Presentation Moscow Exchange Forum 2015 London Session December 8-9, 2015
Slide 2: UWC, the leader in innovative railcar manufacturing in the 1520 gauge area
UWC, the leader in innovative railcar 2 manufacturing in the 1520 gauge area Production of railcars Operating lease and components No.1 in railcar manufacturing TOP 3 in operating Annual production lease capacity: 22 ths railcars and 90 ths Largest fleet of tonnes of railcar CLIENT innovative railca
Slide 3: UWC dynamic development
UWC dynamic development 3 The company’s history began with railcar design. Today UWC is the leading provider of integrated railcar solutions. R&D Know-how Production Leasing Maintenance Transportation UWC has maintained high growth rates since its launch in 2012. Based on 2014 results, UWC is ranked
Slide 4: IPO on the Moscow Exchange, April 30, 2015
IPO on the Moscow Exchange, April 30, 2015 4 On April 30, 2015 UWC successfully completed its IPO on the Moscow Exchange, selling 12.2% of shares for a total of RUB 9 bln (US$ 175 mln1) UWC’s IPO was a flagship transaction reinventing Russian equity market: The first IPO of a railcar manufacturer in
Slide 5: UWC's innovative railcars: excellent technical and economic characteristics
UWC’s innovative railcars: excellent technical and 5 economic characteristics UWC’s innovative railcars equipped with Barber bogies have various operational advantages over their analogues which increase economic benefits derived by their owners and users Technical characteristics Economic character
Slide 6: Rail industry is the backbone of the Russian economy
Rail industry is the backbone of the Russian 6 economy Railroad is the key element of Russia’s transport …and Russia has one of the largest rail systems in infrastructure… the world… The importance of railway transport is determined Average distance Fleet Freight turnover by following factors: (ths
Slide 7: Market switches to innovative railcars
Market switches to innovative railcars 7 Production structure: innovative railcars replacing Comments old generation railcars In spite of overall railcar production slowdown, Gondola sales by Russian plants (ths units) production of innovative railcars continues to grow, 2.9 2.9 2.9 2.9 2.8 2.7 2.6
Slide 8: Railway market turns around after 3-year decline
Railway market turns around after 3-year decline 8 Rate of return for gondola cars started growing Gondola car market starts to recover after a 3- 1,800 year fall due to 4 key factors: Rapid recovery of 1,650 daily rates due to Peak write-offs of old railcars – around 85 ths 1,500 fleet shortage Con
Slide 9: Government support of innovative railcar production
Government support of innovative railcar 9 production Vladimir Putin at launch of TVSZ Lower empty run tariff for innovative railcars due to their Tariff discount for reduced impact on railroad infrastructure empty run Specifically, empty run tariff for innovative gondolas by TVSZ is 10-30% lower vs
Slide 10: UWC's unique competitive advantages
UWC’s unique competitive advantages 10 Innovations and flexibility at every stage of business provide technical and economic base for UWC’s competitive advantages securing the company’s leadership in production and sales Competitive advantages UralVagon Zavod AltaiVagon Specializing in production of
Slide 11: Efficient strategy focused on growth
Efficient strategy focused on growth 11 Main goals Initiatives Key numbers Improving existing models Development of new Increasing specialization of up to 60 products with high-value- rolling stock railcar modifications by added Expanding the range of railcar 2018 types manufactured Focused work wit
Slide 12: Investment opportunities: key factors
Investment opportunities: key factors 12 Various Leading positions and fast technical and economic development benefits of innovative railcars Efficient strategy focused on Market switches to growth innovative railcars Government support of the Unique competitive advantages innovative railcars produ
Slide 13: Attachments
Attachments 13 Attachment I. H1 2015 financial results review Attachment II. 3Q and 9M 2015 operating results review Attachment III. Company's assets and product portfolio Attachment IV. Financial statements
Slide 14: UWC financial results
UWC financial results 14 Comments UWC revenue dynamics Revenue increased 8 times to reach RUB 17 bln in the first half of 2015 17,057 17,028 The positive dynamics was driven by higher production levels, increased share of railcar sales RUB mln in the market with prices growing correspondingly. The s
Slide 15: Production Division financial results
Production Division financial results 15 Comments Production Division revenue dynamics Revenue grew 1.5 times year-on-year to reach RUB 15 bln in the first half of 2015 23,166 The Production Division achieved a profitable EBITDA level in the first half of 2014 which 15,015 RUB mln amounted to RUB 21
Slide 16: Distribution Division financial results
Distribution Division financial results 16 Comments Distribution Division revenue dynamics Revenue shows positive dynamics driven by fleet expansion 4,379 The Company plans to increase its fleet size to 60,000 railcars in the midterm RUB mln 2,689 2,194 In the first half of 2015, EBITDA amounted to
Slide 17: UWC capital expenditures
UWC capital expenditures1 17 Comments Historical CAPEX structure2 Historical investment costs of the Company for the 4.2 3.9 last 3 years amounted to RUB 2-4 bln annually. 0.04 Most of these costs incurred in 2012 were 0.3 Other projects associated with finalizing construction of TVSZ Assets purchas
Slide 18: UWC working capital
UWC working capital 18 Comments Working capital structure (*) The sharp growth in Inventories was due to 807 (1 055) changes in tangible goods accounting methodology 8,293 6,924 * after shifting from sales within the company to direct sales in the market 2,430 267 Since 2014 there has been a signifi
Slide 19: UWC debt portfolio as at 31/12/2014
UWC debt portfolio as at 31/12/2014 19 Comments Debt portfolio structure Total debt amounted to RUB 89.9 bln at the end of By lenders By currency 2014, the share of foreign currency debt equal to 6.3% Sberbank 6.3% The leverage of the Company depends on market 21.9% VEB-EDB conditions and the number
Slide 20: UWC debt portfolio as at 30/06/2015
UWC debt portfolio as at 30/06/2015 20 Comments Debt portfolio structure At the end of H1 2015 total debt amounted to RUB By lenders By currency 85.5 bln, the share of debt in foreign currency – 5.9% Otkritie 5.9% The debt portfolio structure remains stable 22.0% 29.4% Sberbank In the third quarter
Slide 21: Attachments
Attachments 21 Attachment I. H1 2015 financial results review Attachment II. 3Q and 9M 2015 operating results review Attachment III. Company's assets and product portfolio Attachment IV. Financial statements
Slide 22: Production results
Production results 22 Railcar production volume The Tikhvin Freight Car Building Plant (TVSZ) produced 2.6 ths railcars in the third quarter of 2015, a quarter- 8.5 on-quarter decline of 650 railcars which was due to the planned shut-down in August 6.9 In the nine months of 2015, production volumes
Slide 23: Distribution results: railcar fleet
Distribution results: railcar fleet 23 Fleet owned and operated1 Fleet owned and operated UWC’s owned and operated fleet amounted by type of railcar to 25.3 ths railcars at the end of the third 25.3 quarter of 2015, that is 1.3 ths increase 24.0 Barber compared to the previous reporting period gondo
Slide 24: Distribution results: key figures
Distribution results: key figures 24 Leasing Transportation Average lease rate for Average lease rate for Cargoes transported Cargo turnover innovative railcars1 old-generation railcars 852 852 3.5 14.1 717 724 bln tkm RUB/day RUB/day 2.3 8.7 mln tonnes 2Q 2015 3Q 2015 2Q 2015 3Q 2015 2Q 2015 3Q 201
Slide 25: Development of maintenance services
Development of maintenance services 25 Current uncoupling repair statistics1 UWC’s maintenance network Number of repairs for a TVSZ’s innovative 0.11 50 Service centres car Number of repairs for an old-generation 1.64 6 Training centres gondola car For innovative railcars, the frequency of current U
Slide 26: Attachments
Attachments 26 Attachment I. H1 2015 financial results review Attachment II. 3Q and 9M 2015 operating results review Attachment III. Company's assets and product portfolio Attachment IV. Financial statements
Slide 27: Company's production assets
Company’s production assets 27 The Company’s production facilities include: Tikhvin Freight Car Building Plant (TVSZ), TikhvinChemMash (TChM) and production joint ventures, located at Tikhvin, Leningrad region NPC Springs located at Izhevsk TVSZ became a second-ranked Russian railcar builder after U
Slide 28: Product portfolio
Product portfolio 28 2013 2014-2015 2016 Box car Oil tank car Grain/Mineral hopper Gondola with hatchers Container flat car Grain hopper LPG tank car Solid bottom gondola Chemical tank car Timber flatcar
Slide 29: Attachments
Attachments 29 Attachment I. Financial results review Attachment II. Operating results review Attachment III. Company's assets and product portfolio Attachment IV. Financial statements
Slide 30: Income Statement
Income Statement 30 RUB mln H1 2014 2014 H1 2015 REVENUE 2,129 17,057 17,028 Cost of Sales (1,438) (14,984) (15,456) Depreciation and Amortization (698) (3,087) (2,414) Property tax (109) (215) (322) Raw and other materials (308) (8,745) (8,473) Salaries and social security contributions (68) (1,861
Slide 31: Balance Sheet 1/2
Balance Sheet 1/2 31 RUB mln 2014 June 30, 2015 ASSETS NON-CURRENT ASSETS Machinery and equipment 70,819 67,178 Long term deferred tax assets 1,852 2,080 Intangible assets 2,839 3,023 Investments in joint ventures 159 360 Long term loans issued 1,659 793 Finance lease receivables 261 252 Other accou
Slide 32: Balance Sheet 2/2
Balance Sheet 2/2 32 RUB mln 2014 June 30, 2015 EQUITY Authorised share capital 0 106 Unissued share capital 100 - Additional paid-in capital 12,429 16,159 Non-controlling interests 1 1 Retained earnings/ losses (4,969) (10,113) Reserves from foreign exchange revaluation - - Effect of acquiring a re
Slide 33: Cash Flow Statement
Cash Flow Statement 33 RUB mln June 30, 2014 June 30, 2015 Operating cash flow (1,949) 5,106 Profit/loss before tax (2,290) (5,295) Depreciation and amortization 698 2,521 Profit/loss from foreign exchange and revaluations (6) 1,585 Financial expenses 2,595 4,640 Financial income (157) (585) Increas
Slide 34: Contacts
Contacts 34 Investor Relations +7 (499) 999 15 20 [email protected] http://www.uniwagon.com/ Research and Production Company “United Wagon Company” корпорация Научно-производственная Russia, 115184, Вагонная «Объединенная Moscow, Компания» ul.Novokuznetskaya, d. 7/11, str. 1 115184, Россия, г. Москва,
United Wagon Company — Moscow Exchange Forum 2015, London Session on 6ix