Stadler Rail AG · SIX:SRAIL
Stadler Rail — FY2021 Earnings Presentation
38 slides from Stadler Rail's earnings presentation, Mar 15, 2022
Slide 1: Full-Year 2021 Results
FULL-YEAR 2021 RESULTS STADLER RAIL Peter Spuhler, Executive Chairman and Group CEO a. i., Raphael Widmer, Group CFO 15 March 2022
Slide 2: Representing Stadler Today
REPRESENTING STADLER TODAY Peter Spuhler Raphael Widmer Executive Chairman and Group CEO a. i. Group CFO Stadler full-year results 2021 | © Stadler | 15 March 2022 2
Slide 3: Agenda
AGENDA Full-year results 2021 & key figures Highlights full-year 2012 Peter Spuhler, Executive Chairman & Group CEO a.i. Full-year 2021 financial results Raphael Widmer, Group CFO Summary & outlook Peter Spuhler, Executive Chairman & Group CEO a.i. Q&A Stadler full-year results 2021 | © Stadler | 15
Slide 4: Highlights Full-Year 2021
HIGHLIGHTS FULL-YEAR 2021 STADLER
Slide 5: Russia-Ukraine Conflict
RUSSIA-UKRAINE-CONFLICT LIMITED DIRECT IMPACT ON STADLER − Stadler has no orders from Russia or Ukraine in the order backlog − No financial investments in depots or other types of infrastructure − Long-term service agreements: − 11 trains for Aeroexpress with 18 FTEs in Moscow − 23 trams for TKK wit
Slide 6: Situation in Belarus
SITUATION IN BELARUS SAFETY OF ALL EMPLOYEES IS OUR TOP PRIORITY − Fanipol plant opened ~10 years ago amidst a political rapprochement phase − Less then 2% of the order backlog of CHF 17.9bn being processed locally, which will be further reduced to ensure on-time processing of current orders through
Slide 7: Full-Year 2021 Highlights
FULL-YEAR 2021 HIGHLIGHTS FINANCIAL TARGETS ACHIEVED ACROSS THE BOARD ✓ Record levels of order intake, order backlog, net revenues and EBIT. Recovery of EBIT-margin and Free cash flow Order intake CHF 5.6bn ✓ Superior value proposition confirmed by customers with a strong +28%(1) order intake of CHF
Slide 8: Order Intake Highlights 2021
ORDER INTAKE HIGHLIGHTS 2021 TRAINS KISS LRV − Swiss operator SBB ordered a further − HEAG mobilo, Germany, increased − First passenger train order by the 60 KISS trains from Stadler by its TINA fleet to 25 vehicles by Spanish operator Renfe for 59 high- exercising an option from an existing orderin
Slide 9: Our Signalling Expertise
OUR SIGNALLING EXPERTISE SHAPING THE DIGITALISATION OF THE RAIL INDUSTRY − Successful market entry in 2016 to reach independence from competitors − Achieved five country-homologations within just four years of Successful market entry development in ETCS (Switzerland, Hungary, Poland, Slovenia, Germa
Slide 10: Sustainability Management
SUSTAINABILITY MANAGEMENT STADLER IS AN ENABLER OF SUSTAINABLE MOBILITY Stadler is driving sustainable mobility by manufacturing and maintaining trains over multiple decades. State-of-the-art technology combined with digitalisation and automation substantially reduces emissions. Green Technology Res
Slide 11: Mainline Electrification
MAINLINE ELECTRIFICATION 99% Share of non-electrified mainline infrastructure* 62% 59% 42% 39% 36% 29% 28% 28% 25% 24% USA UK HU FR DE ES NL IT AT SE BE * Source: Allianz Pro Schiene, Eurostat Non- and partly electrified sections mainly Potential of >CHF 2.5bn identified until 2030 for operated by D
Slide 12: Leader in Sustainable Mobility
LEADER IN SUSTAINABLE MOBILITY ▪ Market leader with 113 FLIRT AKKU sold (55 Nah.SH, 44 Pfalznetz, 14 H-Netz) and options for 45 additional trains outstanding ▪ World record for battery-driven trains: 224 km without recharging, at sub-zero temperatures ▪ The FLIRT H2 for SBCTA is the first hydrogen-p
Slide 13: Market Outlook
MARKET OUTLOOK TOTAL OEM AND TARGETED MARKETS 2020 VIEW 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% F
Slide 14: Competitive Landscape: Market Share by Region
COMPETITIVE LANDSCAPE MARKET SHARE BY REGION Home markets Opportunistic markets North America: EUR 2.6 bn Europe: EUR 11.9 bn CIS: EUR 4.2 bn Other 7% 12% HS 17% Bombardier Bombardier 19% Stadler Other Other 28% Alstom 39% 11% 1% 23% Hitachi Rail 5% 6% Siemens 2% 11% 37% 2% 47% MU 13% Stadler 4% CAF
Slide 15: Competitive Landscape: Global Market Share by Segment
COMPETITIVE LANDSCAPE GLOBAL MARKET SHARE BY SEGMENT EMU/DMU: EUR 9.8 bn Focus segments Locomotives: EUR 7.2 bn Bombardier Southeast Other 23% Asia TMH 18% 17% 1% Other 38% Stadler 25% 9% RoW 2% 34% Siemens 0% 5% 1% 29% CIS 15% ICF Sinara 8% 64% 10% North America 9% 17% 5% 23% DLW CRRC 12% 6% Europe
Slide 16: Competitive Landscape: Market Share Europe by Segment
COMPETITIVE LANDSCAPE MARKET SHARE EUROPE BY SEGMENT Home markets Focus segments LRV: EUR 1.5 bn Locomotives: CHF 1.5 bn Bombardier Other Alstom Other Stadler 10% 18% 30% Stadler Newag 4% 41% Siemens 5% 5% 16% Vossloh 6% 10% 7% 14% CZ Loko Skoda 12% 23% CAF Alstom Bombardier EMU/DMU: CHF 5.5 bn Metr
Slide 17: Full-Year 2021 Financial Results
FULL-YEAR 2021 FINANCIAL RESULTS
Slide 18: Full-Year Results 2021 Summary I
FULL-YEAR RESULTS 2021 SUMMARY I CHFm Order intake Order backlog +28% +11% 5’566 17’871 16’106 4’332 2020 2021 31.12.2020 31.12.2021 Net revenues EBIT +18% +43% 3’635 224 3’085 156 6.2% 5.1% 2020 2021 2020 2021 EBIT as % of net revenues Change year-on-year Stadler full-year results 2021 | © Stadler
Slide 19: Full-Year Results 2021 Summary II
FULL-YEAR RESULTS 2021 SUMMARY II CHFm Net cash(1) Net working capital(2) -72% +257 403 -351 115 -608 31.12.2020 31.12.2021 31.12.2020 (3) 31.12.2021 Capex(4) Free cash flow(5) +885 -39% 288 434 177 -450 2020 2021 2020(3) 2021 Change year-on-year Notes: (1) Net cash is calculated as cash and cash eq
Slide 20: Order Intake
ORDER INTAKE CHFm +28% 5’566 733 -50% 7% 6% 4’332 Others(1) 2% Eastern Europe 14% 40% 1’456 Western Europe 31% 4’832 +68% 2’875 47% DACH 53% 2020 2021 2020 2021 Rolling Stock Service & Components Comments − Order intake in the Rolling Stock segment grows 68% year-on-year. Service & Components order
Slide 21: Order Backlog by Reporting Segment
ORDER BACKLOG BY REPORTING SEGMENT CHFbn +14% CAGR 17.9 16.1 15.0 4.4 25% 13.2 4.1 26% 2.8 18% 11.0 2.3 17% 9.3 2.0 18% 0.8 9% 13.5 12.3 12.0 10.9 8.5 9.0 31.12.2016 31.12.2017 31.12.2018 31.12.2019 31.12.2020 31.12.2021 Rolling Stock Service & Components % Share of Service & Components Comments − O
Slide 22: Net Revenues
NET REVENUES CHFm +18% 3’635 4% 6% 455 +33% Others(1) 3% 3’085 3% 18% Americas 343 15% Eastern Europe 25% Western Europe 31% 3’179 +16% 2’742 DACH 49% 47% 2020 2021 2020 2021 Comments − Continued catch-up of Covid-related delays drives solid recovery in Rolling Stock revenues of 16% year-on-year − S
Slide 23: EBIT
EBIT CHFm +43% 250 7.9% 8% 7% 200 6.2% 6% 5.1% 150 5% 4% 3.5% 224 100 3% 175 156 2% 50 49 1% 0 0% 2020 H1-21 H2-21 2021 / EBIT EBIT in % of net revenues Comments − Significant step-up of EBIT-margin as a result of a higher gross margin and higher volumes with catch-up of delayed vehicle homologation
Slide 24: Net Income
NET INCOME CHFm 2020 2021 Change YOY Earnings before interest and taxes (EBIT) 156.1 223.7 43% Financial result (3.1) (75.0) Share of results from associates 2.8 3.8 Ordinary result 155.8 152.5 (2.2%) Non-operating result (1.2) (0.5) Profit before income taxes 154.7 152.0 (1.7%) Income taxes (16.3)
Slide 25: Net Cash Position
NET CASH POSITION CHFm +257 1’149 Cash and cash equivalents 929 -818 -351 Current financial liabilities -1’003 -682 Non-current financial liabilities -534 -608 -608 -351 31.12.2020 31.12.2021 31.12.2020 31.12.2021 Comments − Strong improvement of net cash position driven by accelerated vehicle deliv
Slide 26: Net Working Capital
NET WORKING CAPITAL Net working capital(1) (CHFm) -72% 403 403 115 Trade receivables 301 318 Comp. claims from WIP 862 691 Inventories 201 219 Other current assets 179 172 Work in progress (net) -364 -461 115 Trade payables -298 -215 Other current liabilities -478 -609 (2) 31.12.2020 (2) 31.12.2021
Slide 27: Capital Expenditure
CAPITAL EXPENDITURE CHFm 288 248 57 35 188 177 14 66 231 213 76 174 55 11 8 112 65 48 2016 2017 2018 2019 2020 2021 Investments in tangible assets Investments in intangible assets Comments − Ongoing growth investments in Berlin (Germany) and Valencia (Spain) − Due to a shift of certain investments i
Slide 28: Available Credit Facilities
AVAILABLE CREDIT FACILITIES CHFm Guarantee lines Committed cash credit lines ~8’000 >400 ~50% Undrawn Undrawn 100% ~50% Drawn Drawn 0% Comments − Early extension of syndicated loan agreement with national and international banks, including a cash credit line of CHF 200 million and guarantee lines of
Slide 29: Outlook: Clear Strategy for Bringing Stadler to the Next Level
OUTLOOK: CLEAR STRATEGY FOR BRINGING STADLER TO THE NEXT LEVEL
Slide 30: Clear Strategy for the Next Level
CLEAR STRATEGY FOR THE NEXT LEVEL Stadler sales 2018 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 sig
Slide 31: FY 2022 Financial Guidance
FY 2022 FINANCIAL GUIDANCE Order intake Between CHF 5.0 and 6.0 billion Net revenues Between CHF 3.7 and CHF 4.0 billion EBIT-margin Stable vs 2021 Capex of around CHF 200 million Capex / FCF Positive free cash flow Dividend Payout ratio of c. 60% of net income Our 2022 financial guidance is based o
Slide 32: Mid-Term Financial Guidance
MID-TERM FINANCIAL GUIDANCE 8 to 9%, with a delay of one to two years rather than in 2023 EBIT-margin as originally expected. Dividend Payout ratio of c. 60% of net income Our mid-term financial guidance is based on the assumption that the effects of the pandemic will soon normalise, that the situat
Slide 33: Appendix
APPENDIX
Slide 34: Comprehensive Portfolio
COMPREHENSIVE PORTFOLIO Market segments and vehicle families Order backlog contributions 31 Dec 2021 Market Reporting segment Type Vehicle families segment Very High 25% Not a strategic focus Speed Rolling Stock Service & Components High Speed 75% Trains Intercity Market segment Regional / <1% Train
Slide 35: Stadler Signalling Portfolio
STADLER SIGNALLING PORTFOLIO ONE-STOP SOLUTION PROVIDER State-of-the-art Signalling solutions MAINLINE URBAN/TAILOR-MADE METRO / LRV On-board ETCS Class B ATP ATP CBTC Systems Wayside Interlockings, train detection systems, axle Interlockings, track counters, track switches, etc. switches, etc. Use
Slide 36: Reporting Segments
REPORTING SEGMENTS Rolling Stock CHFm 2020 2021 Change Order intake 2’875 4’832 68% Order backlog 11’996 13’462 12% Net revenues (third party) 2’742 3’179 16% Additions to fixed assets 184 66 -64% (1) Total staff as FTEs 9’111 9’559 5% Service & Components CHFm 2020 2021 Change Order intake 1’456 73
Slide 37: Information
INFORMATION Share information Investor contact Listing: SIX Swiss Exchange Daniel Strickler Currency: CHF Investor Relations Officer Ticker symbol: SRAIL Phone: +41 71 626 86 47 ISIN: CH0002178181 E-mail: [email protected] Listing date: 12 April 2019 Financial calendar Media contact 5 May 2022: Ann
Slide 38: 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