Stadler Rail AG · SIX:SRAIL

Stadler Rail — FY2019 Earnings Presentation

32 slides from Stadler Rail's earnings presentation, Mar 5, 2020

  1. Slide 1: Full-Year Results 2019

    FULL-YEAR RESULTS 2019 BUILDING TRAINS WITH PASSION AND SWISS PRECISION Dr. Thomas Ahlburg, Group CEO, and Raphael Widmer, Group CFO 5 March 2020

  2. Slide 2: Agenda

    AGENDA 1 Highlights Dr. Thomas Ahlburg, Group CEO 2 Financial results Raphael Widmer, Group CFO 3 Outlook Dr. Thomas Ahlburg, Group CEO Stadler full-year results 2019 | © Stadler | 5 March 2020 2

  3. Slide 3: Highlights

    HIGHLIGHTS Dr. Thomas Ahlburg, Group CEO

  4. Slide 4: A Successful Year for Stadler

    A SUCCESSFUL YEAR FOR STADLER Order intake Fleets delivered Regional expansion − First US METRO contract for  Seven new fleets and 444 vehicles  Indonesia joint venture Stadler, 127 METRO trains for delivered (~+80% vs 2018)  34 locomotives for Taiwan MARTA (Atlanta)  Giruno high-speed train (SM

  5. Slide 5: Full-Year 2019 Key Figures

    FULL-YEAR 2019 KEY FIGURES Order intake Order backlog Vehicles delivered CHF 5.1bn CHF 15.0bn 444 +17%(1) +14%(1) +80%(1) Net revenues EBIT margin CHF 3.2bn 6.1% +60%(1) -149bps(1) Free Cash Flow(2) Net profit CHF -328.9m CHF 128.5m + CHF 37.8m(1) +8%(1) (1) Change year-on-year. (2) Defined as EBITD

  6. Slide 6: Operational Highlights & Challenges

    OPERATIONAL HIGHLIGHTS & CHALLENGES Highlights  444 or ~ 80% more vehicles delivered in 2019 compared to 2018, seven new fleets entered service in 2019  23% increase year-on year in average FTEs to ~11’000  Operating licence for new high-speed vehicle concept (SMILE)  Opening of new plants in Sa

  7. Slide 7: Financial Results Full-Year 2019

    FINANCIAL RESULTS FULL-YEAR 2019 Raphael Widmer, Group CFO

  8. Slide 8: Full-Year Results 2019 Summary

    FULL-YEAR RESULTS 2019 SUMMARY CHFm Order intake Net revenues Order backlog +17% +60% +14% 5’117 3’201 15’026 4’389 13’179 2’001 2018 2019 2018 2019 2018 2019 EBIT Net working capital(1) Capital expenditure(2) +28% 194 27 +32% 7.5% 151 6.1% 249 188 -323 2018 2019 2018 2019 2018 2019 EBIT as % of net

  9. Slide 9: Order Intake

    ORDER INTAKE CHFm +17% 5’117 8% 4’389 833 Service & Components 2% Others(1) 1% 17% 621 Americas 18% Eastern Europe 17% Western Europe 45% 16% 4’284 Rolling Stock 3’767 42% DACH 34% 2018 2019 2018 2019 Comments  Strong order intake ahead of expectations in both reporting segments  Relatively stable

  10. Slide 10: Net Revenues

    NET REVENUES CHFm +60% 3’201 261 Service & Components 5% 5% 1% 2’001 Others(1) 43% 3% 248 Americas 6% 6% Eastern Europe 2’940 Rolling Stock 19% Western Europe 1’752 DACH 65% 46% 2018 2019 2018 2019 Comments  Significant net revenue growth of c. 60% to CHF 3.2bn  Net revenues below expectations due

  11. Slide 11: Order Backlog I/II

    ORDER BACKLOG I/II CHFm +14% 15’026 4% 13’179 2’772 Service & Components Others(1) 11% 2% 2’262 Americas 7% 13% 8% Eastern Europe Western Europe 41% 32% 12’254 Rolling Stock 10’917 DACH 41% 40% 2018 2019 2018 2019 Strong order intake drives record order backlog of CHF 15bn providing high revenue vis

  12. Slide 12: Order Backlog II/II

    ORDER BACKLOG II/II Order backlog by market segment: 2018 Order backlog by market segment: 2019 17% 18% Executing on 9% strategic focus 11% 50% 5% 62% 7% 5% Trains 2% Locomotives 8% Metro 6% LRV Tailor-made Service & Components High quality and increasingly diversified order backlog with a growing s

  13. Slide 13: Reporting Segments

    REPORTING SEGMENTS Rolling Stock CHFm 2018 2019 Change Order intake 3’767 4’284 14% Net revenues (third party) 1’752 2’940 68% Order backlog 10’917 12’254 12% Investments in fixed assets 144 186 29% Total staff as FTEs(1) 6’884 8’408 22% Service & Components CHFm 2018 2019 Change Order intake 621 83

  14. Slide 14: EBIT

    EBIT CHFm in % of net revenues +28% 194 7,5% 200 10% 9% 6,1% 151 8% 150 7.5% 7% 6% 100 6.1% 5% 4% 3% 50 2% 1% 0 0% 2018 2019 2018 Operational Growth FX 2019 EBIT EBIT in % of net revenues inefficiencies investments Change year-on-year Comments − Strong EBIT growth of c. 28% to CHF 194m  EBIT margin

  15. Slide 15: Net Income

    NET INCOME CHFm 2018 2019 Change Earnings before interest and taxes (EBIT) 150.9 193.7 28% Financial result (21.4) (47.1) Share of results from associates 2.3 4.0 Ordinary result 131.9 150.6 14% Non-operating result - (2.1) Profit before income taxes 131.9 148.5 13% Income taxes (12.7) (20.0) Profit

  16. Slide 16: Net Working Capital

    NET WORKING CAPITAL Net working capital(1) (CHFm) 27 (29) (47) 46 (76) 286 Trade receivables (117) 27 252 818 Comp. claims from WIP 538 280 Inventories 261 232 Other current assets 86 132 34 -757 -323 -804 Work in progress (net) NWC 2018 NWC 2019 Inventories Trade receivables Work in progress (net)

  17. Slide 17: Capital Expenditure

    CAPITAL EXPENDITURE CHFm 249 35 188 14 213 76 174 55 11 8 65 48 2016 2017 2018 2019 Investments in intangible assets Investments in tangible assets Comments High level of investments to support Stadler’s growth  St. Margrethen (Switzerland), Herne (Germany), Salt Lake City (USA), Środa (Poland) and

  18. Slide 18: Net Cash

    NET CASH CHFm 6 532 695 753 Cash and cash equivalents -82 -81 -468 Non-current financial liabilities -279 Current financial liabilities 2018 2019 Comments  Negative operating cash flow (primarily Greater Anglia)  High level of growth investments  Non-current financial liabilities (mainly CHF 300m

  19. Slide 19: Balance Sheet

    BALANCE SHEET CHFm 3’800 3’800 Trade payables 250 Cash 753 Current financial liabilities 279 Trade receivables 286 Strong balance sheet Liabilities from WIP 1’438 Comp. claims from WIP 818 • Strong liquidity position • Successful issuance of CHF Inventories 232 300m bond at a coupon of Other current

  20. Slide 20: Summary and Outlook

    SUMMARY AND OUTLOOK Dr. Thomas Ahlburg, Group CEO

  21. Slide 21: Ongoing Growth Momentum in the Rail Sector

    ONGOING GROWTH MOMENTUM IN THE RAIL SECTOR Growing demand supported by global megatrends Tender pipeline remaining strong Resilience to typical industrial business cycles Stadler full-year results 2019 | © Stadler | 5 March 2020 21

  22. Slide 22: Executing on Our 2023 Strategy

    EXECUTING ON OUR 2023 STRATEGY Stadler sales today Stadler strategy 2023 Signalling Service & Components Service & Components Rolling Rolling Stock Stock Strategic focus Service & Rolling Stock Signalling Components • Market segments • Growing • Establish own Europe unchanged accessible market signa

  23. Slide 23: Priorities for 2020

    PRIORITIES FOR 2020 Rolling Stock Service & Components Signalling Priorities 2020 • Capitalise on pipeline of • Ensure highest reliability • Achieve full homologation successful new products and availability of GUARDIA ETCS • Focus on project • Ramp-up of new service system in a number of execution:

  24. Slide 24: FY 2020 Financial Guidance

    FY 2020 FINANCIAL GUIDANCE Net revenues  Around CHF 3.5bn at constant currencies  Comparable to 2019 EBIT-margin  At least 6% Dividend  Payout ratio of c. 60% of net income Our 2020 outlook is, among other factors, subject to possible implications related to the potential impact of the COVID-19

  25. Slide 25: Key Takeaways

    KEY TAKEAWAYS REFLECTION AND OUTLOOK  444 vehicles delivered (c. +80% vs 2018)  Successful homologation and service entry of seven new fleets 2019  Record levels of order intake, net revenues and order backlog  Certain growth related challenges combined with additional costs and delays in certai

  26. Slide 26: Q&A

    Q&A Stadler full-year results 2019 | © Stadler | 5 March 2020 26

  27. Slide 27: Appendix

    APPENDIX

  28. Slide 28: Information

    INFORMATION Share information Investor contact Listing: SIX Swiss Exchange Raphael Widmer Currency: CHF Group CFO Ticker symbol: SRAIL Phone: +41 71 626 86 80 ISIN: CH0002178181 E-mail: [email protected] Listing date: 12 April 2019 Daniel Strickler Investor Relations Officer Phone: +41 71 626 86 47

  29. Slide 29: Comprehensive Portfolio of Vehicle Families

    COMPREHENSIVE PORTFOLIO OF VEHICLE FAMILIES Market segments and vehicle families Order backlog contributions 2019 Market Reporting segment Type Vehicle families segment Very High 18% Not a strategic focus Speed Rolling Stock Service & Components High Speed 82% Trains Intercity Market segment Regiona

  30. Slide 30: Segment Breakdown

    SEGMENT BREAKDOWN 2018 2019 Rolling Service & Corporate Rolling Service & Corporate CHFm Total Total Stock Components Center Stock Components Center Order intake 3’767 621 - 4’389 4’284 833 - 5’117 Total revenue 1’789 536 (325) 2’001 3’002 642 (442) 3’201 Inter-segment revenue (37) (289) 326 - (62)

  31. Slide 31: Work in Progress

    WORK IN PROGRESS CHFm 593 634 2018 2019 (757) (804) 41 (88) (1’350) (757) (1’438) (804) Assets from WIP Liabilities Total WIP (net) WIP (net) 31 ▲Assets ▲Liabilities WIP (net) from WIP Dec 2018 from WIP from WIP H1 2019 Continuously negative net work in progress (WIP) Stadler full-year results 2019

  32. Slide 32: 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 bas

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