Stadler Rail AG · SIX:SRAIL
Stadler Rail — H1 2020 Earnings Presentation
30 slides from Stadler Rail's earnings presentation, Aug 25, 2020
Slide 1: Half-Year Results 2020
HALF-YEAR RESULTS 2020 BUILDING TRAINS WITH PASSION AND SWISS PRECISION Peter Spuhler, Executive Chairman and Group CEO a.i., Raphael Widmer, Group CFO 25 August 2020
Slide 2: Representing Stadler Today
REPRESENTING STADLER TODAY Peter Spuhler Raphael Widmer Executive Chairman Group CFO and Group CEO a.i. Stadler half-year results 2020 | © Stadler | 25 August 2020 2
Slide 3: Agenda
AGENDA 1 Peter Spuhler, Executive Chairman Highlights first half-year 2020 and Group CEO a.i. 2 Half-year 2020 financial results Raphael Widmer, Group CFO 3 Peter Spuhler, Executive Chairman Summary and outlook and Group CEO a.i. Stadler half-year results 2020 | © Stadler | 25 August 2020 3
Slide 4: Highlights First Half-Year 2020
HIGHLIGHTS FIRST HALF-YEAR 2020
Slide 5: Half-Year 2020 Key Figures
HALF-YEAR 2020 KEY FIGURES Order intake Order backlog Order intake Order Backlog CHF 3.1bn CHF 16.8bn CHF X.Xbn +35%(1) CHF XXbn +12%(2) +XX% +XX% Net revenues EBIT margin CHF 0.9bn 0.5% -16%(1) -3.7%-pts(1) Free Cash Flow(3) Net profit CHF -309.0m CHF 15.7m - CHF 14.3m(1) -43%(1) (1) Change year-on
Slide 6: COVID-19 Impact
COVID-19 IMPACT – Demand remaining strong Market – No order cancelations environment – Ongoing tenders largely on track – New tenders being launched – Interruptions to internal and external supply chains Impact on – Travel restrictions affecting Stadler employees, homologation Operations officials a
Slide 7: Order Intake Highlights H1 2020
ORDER INTAKE HIGHLIGHTS H1 2020 Tyne & Wear Metro Metro Berlin LRVs − 42 METRO trains, a new Framework agreement for up to 14 trams of the next generation of maintenance plant and a 35-year 1,500 METRO cars valued at up to vehicles for HEAG mobilo Darmstadt service contract EUR 3.0bn MPK Kráko
Slide 8: SMILE Granted Type Approval
SMILE GRANTED TYPE APPROVAL In April 2019, the SMILE was approved for single traction in Switzerland, followed by double traction in May 2019. In March 2020, the SMILE was approved for double traction in Italy. Stadler half-year results 2020 | © Stadler | 25 August 2020 8
Slide 9: Update Greater Anglia
UPDATE GREATER ANGLIA All 58 FLIRT have been delivered to and taken over by the customer. An agreement has been reached with the customer regarding delay-related penalties. Stadler half-year results 2020 | © Stadler | 25 August 2020 9
Slide 10: Half-Year 2020 Financial Results
HALF-YEAR 2020 FINANCIAL RESULTS
Slide 11: Half-Year Results 2020 Summary
HALF-YEAR RESULTS 2020 SUMMARY CHFm Order intake Order backlog Net revenues +35% +12% -16% 3’118 16’840 1’115 15’026 935 2’310 H1 2019 H1 2020 31 Dec 2019 30 Jun 2020 H1 2019 H1 2020 EBIT Net working capital(1) Capital expenditure(2) + CHF 260m -89% -38% 287 154 4.2% 47 0.5% 96 5 27 H1 2019 H1 2020
Slide 12: Order Intake
ORDER INTAKE CHFm +35% 3’118 0% 3% 2% 2’310 1’201 Service & Components Others(1) 37% 5% 603 Americas 9% 9% Eastern Europe Western Europe 19% 1’918 Rolling Stock 58% 1’708 DACH 58% H1 2019 H1 2020 H1 2019 H1 2020 Comments Rolling Stock Major orders in DACH region (BVG Metro Berlin, Germany) and Wes
Slide 13: Order Backlog by Reporting Segment
ORDER BACKLOG BY REPORTING SEGMENT CHFbn 16.8 15.0 4.1 24% 13.2 2.8 18% 11.0 2.3 17% 9.3 2.0 18% 0.8 9% 12.3 12.8 10.9 8.5 9.0 2016 2017 2018 2019 H1 2020 Rolling Stock Service & Components % Share of Service & Components Order backlog at new record high of CHF 16.8bn with a growing Service & Compon
Slide 14: Order Backlog by Product Segment
ORDER BACKLOG BY PRODUCT SEGMENT 31 Dec 2019 30 Jun 2020 18% 24% Executing on strategic focus 38% 11% 50% 12% 7% Trains Locomotives 8% Metro 7% 5% 6% LRV 13% Tailor-made Service & Components High quality and increasingly diversified order backlog Stadler half-year results 2020 | © Stadler | 25 Augus
Slide 15: Net Revenues
NET REVENUES CHFm -16% 1’115 113 Others(1) 6% 935 6% Americas 2% 3% 146 Service & Components Eastern Europe 4% 0% Western Europe 34% 35% 1’002 789 Rolling Stock DACH 52% 58% H1 2019 H1 2020 H1 2019 H1 2020 Comments Rolling Stock Revenues declined as a result of Corona-related supply chain disrupti
Slide 16: EBIT
EBIT CHFm 250 -89% 8% 7.0% 7% 6.1% 200 6% 150 4.2% 5% 4% 100 194 3% 147 2% 50 0.5% 1% 47 0 5 0% H1 2019 H2 2019 FY 2019 H1 2020 EBIT EBIT in % of net revenues Comments Rolling Stock Corona-related delays in homologation and final acceptance of vehicles by customers led to a decline in revenues L
Slide 17: Net Income
NET INCOME CHFm H1 2019 H1 2020 Change YOY Earnings before interest and taxes (EBIT) 46.9 5.0 (89%) Financial result (11.7) 17.7 Share of results from associates 1.4 0.6 Ordinary result 36.6 23.4 (36%) Non-operating result (0.9) (0.8) Profit before income taxes 35.7 22.6 (37%) Income taxes (8.2) (6.
Slide 18: Net Cash Position
NET CASH POSITION CHFm 6 753 677 Cash and cash equivalents -468 -588 Non-current financial liabilities -279 -507 Current financial liabilities -417 31 Dec 2019 30 Jun 2020 Comments Decline in net cash position mainly a result of deferred homologation, customer acceptance and invoicing of new vehic
Slide 19: Net Work in Progress
NET WORK IN PROGRESS CHFm 1’050 634 12 (376) (376) 416 (804) (1’438) (1’426) (804) Assets from WIP Liabilities Total WIP (net) WIP (net) ▲Assets ▲Liabilities WIP (net) from WIP 31 Dec 2019 from WIP from WIP 30 Jun 2020 31 Dec 19 30 Jun 20 Continuously negative net work in progress (WIP). Increasing
Slide 20: Net Working Capital
NET WORKING CAPITAL Net working capital(1) (CHFm) 27 287 38 (43) 287 28 286 240 Trade receivables 818 645 Comp. claims from WIP 27 428 (46) 259 Inventories 232 160 Other current assets 132 (174) -376 Work in progress (net) 27 Inventories Trade receivables Work in progress (net) 30 Jun 2020 31 Dec 20
Slide 21: Capital Expenditure
CAPITAL EXPENDITURE CHFm 248 35 188 14 154 29 213 96 76 174 20 55 11 125 8 65 76 48 2016 2017 2018 H1 2019 2019 H1 2020 Investments in intangible assets Investments in tangible assets Comments Ramp-up of capacity expansion in Germany related to a framework contract for the delivery of up to 1,500
Slide 22: Outlook: Clear Strategy for Bringing Stadler to the Next Level
OUTLOOK: CLEAR STRATEGY FOR BRINGING STADLER TO THE NEXT LEVEL
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 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
Slide 24: Supported by Ongoing Growth Momentum in the Rail Sector
… WHICH IS SUPPORTED BY ONGOING GROWTH MOMENTUM IN THE RAIL SECTOR Growing demand supported by global megatrends Tender pipeline remaining strong Resilience to typical industrial business cycles Stadler half-year results 2020 | © Stadler | 25 August 2020 24
Slide 25: Key Takeaways
KEY TAKEAWAYS REFLECTION AND OUTLOOK Corona-related disruptions to supply chains, vehicle homologations and final vehicle acceptance by customers H1-2020 Significant impact on Service & Components business profitability and revenues as a result of reduced frequencies in public rail transport P
Slide 26: FY 2020 Financial Guidance
FY 2020 FINANCIAL GUIDANCE Net revenues Slightly lower than 2019 EBIT-margin Above 5% Dividend Payout ratio of c. 60% of net income Our 2020 outlook is, among other factors, subject to possible further implications related to the COVID-19 pandemic and assuming constant currency exchange rates.
Slide 27: Thank You!
THANK YOU!
Slide 28: Q&A
Q&A Stadler half-year results 2020 | © Stadler | 25 August 2020 28
Slide 29: Reporting Segments
REPORTING SEGMENTS Rolling Stock CHFm H1 2019 H1 2020 Change Order intake 1’708 1’918 12% Order backlog(1) 12’254 12’759 4% Net revenues (third party) 1’002 789 -21% Additions to fixed assets 105 58 -45% Total staff as FTEs(2) 8’147 9’066 11% Service & Components CHFm H1 2019 H1 2020 Change Order in
Slide 30: 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