Stadler Rail AG · SIX:SRAIL

Stadler Rail — H1 2019 Earnings Presentation

31 slides from Stadler Rail's earnings presentation, Sep 3, 2019

  1. Slide 1: Half-Year Results 2019

    HALF-YEAR RESULTS 2019 BUILDING TRAINS WITH PASSION AND SWISS PRECISION Dr. Thomas Ahlburg, Group CEO, and Raphael Widmer, Group CFO 3 September 2019

  2. Slide 2: Representing Stadler Today

    REPRESENTING STADLER TODAY Dr. Thomas Ahlburg Raphael Widmer Group CEO Group CFO Stadler half-year results 2019 | © Stadler | 3 September 2019 2

  3. Slide 3: Agenda

    AGENDA 1 Introduction and highlights Dr. Thomas Ahlburg, Group CEO 2 Half-year financial results 2019 Raphael Widmer, Group CFO 3 Summary and outlook Dr. Thomas Ahlburg, Group CEO Stadler half-year results 2019 | © Stadler | 3 September 2019 3

  4. Slide 4: Introduction and Highlights

    INTRODUCTION AND HIGHLIGHTS Dr. Thomas Ahlburg, Group CEO

  5. Slide 5: Half-Year 2019 Key Figures

    HALF-YEAR 2019 KEY FIGURES Order intakeOrder intake OrderNet Backlog revenues CHF X.Xbn CHF 2.3bn CHFCHF XXbn 1.1bn(2) +XX% +178%(1) +XX% +40%(1) Order backlog EBIT CHF 14.4bn CHF 46.9m(2) +9%(3) +33%(1) (1) Change year-on-year. (2) Note that net revenues, EBIT, and EBIT margins are subject to stron

  6. Slide 6: Stadler at a Glance

    STADLER AT A GLANCE >8,000 Stadler trains and locomotives operate in 41 countries every day >170 million kilometres covered every year by vehicles serviced by Stadler 12 core sites across high- and low-cost countries c. 10,500 employees, including engineering team of over 1,500 employees1 ~7% net re

  7. Slide 7: Comprehensive Portfolio of Vehicle Families

    COMPREHENSIVE PORTFOLIO OF VEHICLE FAMILIES Market segments and vehicle families Order backlog contributions (H1 2019) Market Reporting segment Type Vehicle families segment Very High 19% Not a strategic focus Speed Rolling Stock Service & Components High Speed 81% 1 Trains Intercity Market segment2

  8. Slide 8: An Established Leader in Our Home Markets

    AN ESTABLISHED LEADER IN OUR HOME MARKETS Stadler’s strategic markets – competitive landscape Focus markets Home markets Opportunistic markets North America: €4bn Europe: €11bn CIS: €5bn 5% Others 0% 12% HS 10% 13% 12% Others Transmashholding 29% Others GE Transportation PESA Stadler Bombardier 5% S

  9. Slide 9: Half-Year 2019 Order Highlights

    HALF-YEAR 2019 ORDER HIGHLIGHTS Rolling Stock Service & Components Pending orders 55 battery-powered FLIRT Akku CHF 100m service contract for US Metro contract for MARTA  Presented for the first time at over 100 trains in Norway (Atlanta) InnoTrans 2018, Stadler has  Milestone service contract  L

  10. Slide 10: Half-Year Financial Results 2019

    HALF-YEAR FINANCIAL RESULTS 2019 Raphael Widmer, Group CFO

  11. Slide 11: Half-Year Results 2019 Summary

    HALF-YEAR RESULTS 2019 SUMMARY Key figures CHFm Order intake Net revenues Order backlog +178% +40% +9% 2’310 1’115 14’383 13’179 798 831 H1 18 H1 19 H1 18 H1 19 31-Dec-18 H1 19 EBIT Capex Net working capital1 +33% 151 +208% 154 7.5% 4.4% 4.2% -105 47 50 35 -323 H1 18 FY 2018 H1 19 H1 18 H1 19 31-Dec

  12. Slide 12: Strong Top Line

    STRONG TOP LINE Strong order intake and revenue growth in the first half of the year CHFm Order intake Net revenues +178% 2’310 603 Service & Components +40% 1’115 113 831 798 1’708 Rolling Stock 249 103 1’002 582 695 H1 18 H1 19 H1 18 H1 19 Comments  Surge in order intake in Rolling Stock as well

  13. Slide 13: Record Order Backlog

    RECORD ORDER BACKLOG Continued strong order intake drives a record order backlog of CHF14.4bn CHFm +9% +9% 14’383 14’383 13’179 13’179 347 Others1 1’046 2’713 Service & Components 284 2’262 Americas 916 1’305 1’113 Eastern Europe 5’453 Western Europe 5’434 10’917 11’669 Rolling Stock DACH 5’432 6’23

  14. Slide 14: Rolling Stock

    ROLLING STOCK Strong order intake drives a new record order backlog CHFm H1 2018 H1 2019 Change Order intake 582 1’708 194% Order backlog 10’9171 11’669 7% Net revenues (third party) 695 1’002 44% Investments in fixed assets 32 105 230% Total staff as FTEs2 6’412 8’147 27% Comments  Significant ste

  15. Slide 15: Service & Components

    SERVICE & COMPONENTS Strong order intake drives a new record order backlog CHFm H1 2018 H1 2019 Change Order intake 249 603 142% Order backlog 2’2621 2’713 20% Net revenues (third party) 103 113 10% Investments in fixed assets 11 17 59% Total staff as FTEs2 1’724 2’163 25% Comments  Surge in order

  16. Slide 16: EBIT

    EBIT EBIT grows 33% year-on-year at slightly lower margin CHFm +33% 9.6% 160 151 10% 140 7.5% 116 8% 120 100 6% 80 4.4% 4.2% 60 4% 47 40 35 2% 20 0 0% H1 18 H2 18 FY 2018 H1 19 EBIT EBIT in % of net revenues Comments  EBIT increases by 33% year-on-year driven by strong revenue growth  Sequential E

  17. Slide 17: Net Income

    NET INCOME (in CHFm) H1 2018 H1 2019 Change Earnings before interest and taxes (EBIT) 35.2 46.9 33% Financial result (21.3) (11.7) Share of results from associates 1.0 1.4 Ordinary result 14.8 36.6 147% Non-operating result - (0.9) Profit before income taxes 14.8 35.7 141% Income taxes (7.3) (8.2) P

  18. Slide 18: High Level of Growth Investments

    HIGH LEVEL OF GROWTH INVESTMENTS Capital expenditure1 (CHFm) 188 154 +208% 76 55 50 2016 2017 H1 18 2018 H1 2019 Comments  Significant investments supporting Stadler’s anticipated growth  Major capacity investments during the first six months of 2019:  St. Margrethen, Switzerland  Herne, Germany

  19. Slide 19: Net Working Capital

    NET WORKING CAPITAL Net working capital1 (CHFm) 163 Trade receivables 252 352 Compensation claims from WIP 28 -105 280 26 36 266 Inventories 261 139 Other current assets 86 122 6 -323 (89) 72 NWC 2018 NWC H1 2019 Inventories Compensation claims from WIP Trade payables Other current liabilities Trade

  20. Slide 20: Net Cash

    NET CASH 532 161 695 499 Cash and cash equivalents -82 -103 Non-current financial liabilities -81 -236 Current financial liabilities 31 Dec 2018 30 Jun 2019 Comments  Lower net cash position as a result of usual seasonal patterns combined with higher working capital needs amid the ramp-up of manufa

  21. Slide 21: Summary and Outlook

    SUMMARY AND OUTLOOK Dr. Thomas Ahlburg, Group CEO

  22. Slide 22: Key Macro Economic Trends Supporting Growth of Railway Sector

    KEY MACRO ECONOMIC TRENDS SUPPORTING GROWTH OF RAILWAY SECTOR Global demand for transportation is growing…1  Continuing upward trend in population Population ― c.83 million people are being added to the world’s population every year growth  By 2050, worldwide population is estimated to increase to

  23. Slide 23: We Have a Clear Strategy for Bringing Stadler to the Next Level

    WE HAVE A CLEAR STRATEGY FOR BRINGING STADLER TO THE NEXT LEVEL 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

  24. Slide 24: Outlook

    OUTLOOK Outlook for 2019 given at the time of the IPO broadly confirmed  We expect net revenues of approximately CHF 3.5bn excluding foreign currency impacts and an EBIT margin of 7% Effects impacting guidance for 2019 East Anglia contract  Homologation process completed in record time but partial

  25. Slide 25: Q&A

    Q&A Stadler half-year results 2019 | © Stadler | 3 September 2019 25

  26. Slide 26: Appendix

    APPENDIX STADLER

  27. Slide 27: 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

  28. Slide 28: Segment Breakdown

    SEGMENT BREAKDOWN H1 2018 H1 2019 Rolling Service & Corporate Rolling Service & Corporate CHFm Total Total Stock Components Center Stock Components Center Order intake 582 249 - 831 1’708 603 - 2’310 Total revenue 708 221 (132) 798 1’027 284 (196) 1’115 Inter-segment revenue (14) (118) 132 - (25) (1

  29. Slide 29: Conservative Sales Recognition

    CONSERVATIVE SALES RECOGNITION Percentage of Completion Method: 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 Milestone payments Milestone payments Delivery payment (10% - 30%) (70% -

  30. Slide 30: Work in Progress

    WORK IN PROGRESS 791 593 31-Dec-18 H1 2019 (618) (757) (59) 198 (618) (1’350) (1’409) (757) Assets from WIP Liabilities Total WIP (net) WIP (net) 31 ▲Assets ▲Liabilities WIP (net) from WIP Dec 2018 from WIP from WIP H1 2019 Comments  Continuously negative net work in progress (WIP)  Increasing WIP

  31. Slide 31: 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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