Construcciones y Auxiliar de Ferrocarriles, S.A. · BME:CAF
Construcciones y Auxiliar de Ferrocarriles — CAF — Investor Presentation (March 2016)
34 slides from Construcciones y Auxiliar de Ferrocarriles's investor presentation, Mar 17, 2016
Slide 1: On Track to Deliver Shareholder Returns
On Track to deliver shareholder returns INVESTOR PRESENTATION 17 March 2016
Slide 2: Index
INDEX 1 2 3 4 Company A Strong Financial Outlook Overview Foundation Overview for Growth On Track to Deliver Shareholder Returns - 2
Slide 3: Index
INDEX 1 2 3 4 Company A Strong Financial Outlook Overview Foundation Overview for Growth 01 Company Overview 02 A Strong Foundation For Growth 03 Financial Overview 04 Outlook On Track to Deliver Shareholder Returns - 3
Slide 4: CAF at a glance
CAF at a glance Worldwide projects operating in more than 40 countries across 5 continents Integrated offering providing a one-stop solution for railway systems Employing 7,581 staff of which c.30% is highly qualified (1) Strong R&D and Engineering capabilities more than 850 people Revenue EBITDA/Ma
Slide 5: Company Milestones
Company Milestones Global leader at the vanguard of technological development with a deep-rooted tradition 1892 2002 2004 2007 2009 2013 2013 2016 Beasain: Former Inauguration of the First variable-gauge First concession for CAF: Launch of URBOS First reference to Fully automated World’s longest iro
Slide 6: Corporate Social Responsibility
Corporate Social Responsibility CAF considers all stakeholders in its strategic approach Environmental protection is a key focus area, offering sustainable Implementation of eco-design in the engineering Commitment to the products and minimising the environmental impact of industrial activity – havi
Slide 7: Devoted to Delivering Shareholder Returns
Devoted to Delivering Shareholder Returns Engaging the market Market Performance CAF has reinforced the Investor Relations unit EUR Ibex indexed to CAF share price to have an open dialogue with the market: 300 Investor Relations team: 250 Urtzi Montalvo 200 Head of Investor Relations 150 umontalvo@c
Slide 8: Index
INDEX 1 2 3 4 Company A Strong Financial Outlook Overview Foundation Overview for Growth 01 Company Overview 02 A Strong Foundation For Growth 03 Financial Overview 04 Outlook On Track to Deliver Shareholder Returns - 8
Slide 9: A Railway Solution Provider
A Railway Solution Provider Strong, sustainable growth focused on delivering returns Turnkey Solutions Portfolio offering along the entire value chain including: rolling stock, services, signalling, subcomponents, superstructure, integration, etc. Rolling stock covering all segments: high speed, reg
Slide 10: TurnKey Solutions
A TurnKey Solutions Development of a Transport System CAF provides integral management and engineering in every phase of the project 1/ Situation Analysis and Feasibility Study Mobility studies and research for financial and legal structures Rolling Stock Other Electromechanical Systems 2/ System De
Slide 11: TurnKey Solutions
A TurnKey Solutions Some references: Comprehensive Solutions CAF has an extensive experience in the execution of complex integral railway transportation projects worldwide Mexico City Toluca Kaohsiung Saragossa Rolling Stock Signalling Infrastructure and on-board signalling systems: High Speed Train
Slide 12: High Product Adaptability
B High Product Adaptability Modularisation driving operational excellence and seamless execution · CAF has developed new · Results range from 10% to 20% engineering practices based on cost reduction depending on vehicle modularity product family Platforms of Rolling Stock Customised Solutions These
Slide 13: In-House Technological Excellence
C In-House Technological Excellence Strong focus on R&D has allowed CAF to develop and own critical key technologies and become technologically independent 1969 1999 Technological Milestones until 2000 1969: 1999: Creation of Tilting train prototype R&D unit. Starts production with own designs Depen
Slide 14: In-House Technological Excellence
C In-House Technological Excellence Outsourced Train Information Centre CAF Train 2000 Outsourced Onboard Energy Storage System Critical Components Overview Outsourced Outsourced Onboard Signalling System Passenger Information Systems Outsourced Traction Inverter Outsourced Traction Motor Wheels, Ax
Slide 15: Well Positioned to Capture Future Growth
121 6 5.7% 102 8 1.4% 4 8 1.3% 7 13 0.8% D 7 12 28 3.7% 22 Well Positioned 31 35 2.2% to Capture Future Growth 19 2011-13 24 2017-19 4.2% CAGR UNIFE Market(1) Forecast by Geography CAF’s Positioning – Revenue Breakdown by Geography EURbn APAC APAC 4% 4% CAGR: 2.8% High Volume 121 6 5.7% High Growth
Slide 16: Well Positioned to Capture Future Growth
D Well Positioned to Capture Future Growth Diversified global customer base • 2015 revenue from 68 projects in 25 different countries(1) H • 57 new customers in the last 10 years H Headquarters H Production Plants Offices Countries with ongoing projects (1) Manufacturing projects producing revenue i
Slide 17: Well Positioned to Capture Future Growth
D Well Positioned to Capture Future Growth Diversified customer base worldwide Spain United Kingdom Netherlands Sweden Finland Norway Ireland France Belgium Estonia Luxembourg Germany Cagliari EXTERIOR/ESTERNI Alternativa 2 Portugal Italy Montenegro Serbia Romania Hungary COLORES/ COLORI gris oscuro
Slide 18: Well Positioned to Capture Future Growth
D Well Positioned to Capture Future Growth UNIFE Rolling Stock Market(1) Forecast by Vehicle Type CAF’s Positioning – Backlog Breakdown by Vehicle Type EURbn 44 40 CAGR: 1.6% 1 1.2% High Speed 1 3 7.1% 7% High Volume 2 7 Locomotives 3.1% High Growth 6 5% 2.2% 6 AS(3) 5 Light Rail and Light Rail Vehi
Slide 19: Deep Roots in the Railway Industry
WORKING DRAFT Turn-key Solutions Deep Roots in High Produc E the Railway Adaptability Deep Roots in the Railway Industry Industry Well positioned In-House to capture future Technological Deep Roots growth Excellence in the Railway Industry Chairman and CEO, Andrés Arizkorreta has dedicated to CAF
Slide 20: Index
INDEX 1 2 3 4 Company A Strong Financial Overview: Outlook Overview Foundation Recent Performance for Growth of Main Financial Figures FY2015 Results Presentation 01 Company Overview 02 A Strong Foundation For Growth 03 Financial Overview 04 Outlook On Track to Deliver Shareholder Returns - 20
Slide 21: Backlog
Backlog Strong revenue visibility driven by all-time high backlog Backlog Most significant contracts of 2015 ·75 Coaches for Caledonian (Serco), includes multi-year technical support – % of backlog % of backlog Backlog Backlog toratio to Sales Sales ratio c.€200m Total Backlog (EUR m) 5,549 ·20 Metr
Slide 22: Revenue Performance
Revenue Performance CAF has successfully strengthened its international presence, replacing the absence of local demand 1,005 1,258 1,563 1,725 1,721 1,535 1,447 1,284 Revenue Performance Geographical Diversification 17,7% 25,2% Total Revenue (EUR m) % of Total Revenue 17,6% 15,8% 84% 40,9% 82% 82%
Slide 23: Revenue Breakdown by Segment
volution WORKING DRAFT Revenue Breakdown bySales Segment Evolution essfully CAF hasstrengthened successfully strengthened its its international international presence replacing thepresence absence of replacin nd and has accomplished to move towards higher value internal demand and has accomplished t
Slide 24: Profitability
Profitability EUR m % EBITDA margin Proven resilient high-margin financial profile Strong focus on profitability. Continuous implementation of efficiency initiatives, as a result of CAF’s commitment to operational excellence, include: - Continuous improvement of modules and platform development prog
Slide 25: Working Capital
Working Capital Focus on working capital management has started to deliver results Working Capital Project Prepayments EUR m 572 392 461 448 (51) 93 245 (117) 261 227 217 73 249 Prepayments 100 Other Current Assets 669 777 1,041 1,107 1,205 1,120 761 Receivables 355 365 251 181 Inventories 160 144 8
Slide 26: Net Debt & Capex
Net Debt & Capex Well invested asset base with limited ongoing Net debt largely driven by Concession / Leasing maintenance Capex needs related debt Net Debt Capex(1) EUR m Net Debt/ EUR m As % of Revenue 403 EBITDA 619 421 47 446 543 512 346 479 492 36 384 31 30 3,7x 2,9x 2,1x 2,3x 239 3,0% 10 11 52
Slide 27: Index
INDEX 1 2 3 4 Company A Strong Financial Overview: Outlook Overview Foundation Recent Performance for Growth of Main Financial Figures FY2015 Results Presentation 01 Company Overview 02 A Strong Foundation For Growth 03 Financial Overview 04 Outlook On Track to Deliver Shareholder Returns - 27
Slide 28: 2015 Profit & Loss Account
2015 Profit & Loss Account Strong increase in Operating Profit despite market headwinds Profit & Loss Account (EUR m) 2014 2015 Revenue decreased by 11.3% due to a fall in revenue from rolling stock and the devaluation of the Brazilian Real Backlog 5,251 4,869 Stable revenue contributions from Mexic
Slide 29: 2015 Profit & Loss Account (cont'd)
2015 Profit & Loss Account (cont’d) Strong increase in Operating Profit despite market headwinds Profit & Loss Account (EUR m) 2014 2015 EBITDA improvement driven by the focus on higher-margin and cash generating projects, despite the reduction in revenue Backlog 5,251 4,869 D&A decreased following
Slide 30: 2015 Balance Sheet
2015 Balance Sheet Balance Sheet (EUR m) 2014 2015 Assets Assets Non current financial assets Intangibles 38 35 Mainly relate to long term receivables arising from concessions and leasings Property Plant & Equipment 272 241 The decrease (in EUR) of non current financial assets is mainly due to the N
Slide 31: Index
INDEX 1 2 3 4 Company A Strong Financial Outlook Overview Foundation Overview for Growth 01 Company Overview 02 A Strong Foundation For Growth 03 Financial Overview 04 Outlook On Track to Deliver Shareholder Returns - 31
Slide 32: Outlook
Outlook We are at the beginning of a new growth cycle Growth to be supported by: Integrated and comprehensive product offering including turnkey solutions, signalling, maintenance, leasing and concessions A growing offering of Rolling Stock components: Traction equipment, Train control system, Wheel
Slide 33: Disclaimer
Disclaimer The purpose of this information is purely informative. Any decision taken by any third party as a result of the information contained in this document is the It has not been verified by independent third parties; sole and exclusive risk and responsibility of that in this sense, no express
Slide 34: www.caf.net
www.caf.net On Track to Deliver Shareholder Returns - 34