Stadler Rail AG · SIX:SRAIL
Stadler Rail — FY2020 Earnings Presentation
34 slides from Stadler Rail's earnings presentation, Mar 11, 2021
Slide 1: Full-Year 2020 Results Stadler Rail
FULL-YEAR 2020 RESULTS STADLER RAIL Peter Spuhler, Executive Chairman and Group CEO a. i., Raphael Widmer, Group CFO 11 March 2021
Slide 2: Representing Stadler Today
REPRESENTING STADLER TODAY Peter Spuhler Raphael Widmer Executive Chairman Group CFO and Group CEO a. i. Stadler full-year results 2020 | © Stadler | 11 March 2021 2
Slide 3: Agenda
AGENDA 1 Peter Spuhler, Executive Chairman Highlights 2020 and Group CEO a. i. 2 Full-year 2020 financial results Raphael Widmer, Group CFO 3 Peter Spuhler, Executive Chairman Summary and outlook and Group CEO a. i. Stadler full-year results 2020 | © Stadler | 11 March 2021 3
Slide 4: Highlights 2020
HIGHLIGHTS 2020
Slide 5: We Are an Industry Leader
WE ARE AN INDUSTRY LEADER >8,500 Stadler trains and locomotives running in 43 countries every day 465 vehicles delivered in 2020 >200 million kilometres covered every year by vehicles serviced by Stadler 12 core sites across high- and low-cost countries >12,300 employees(1), including engineering te
Slide 6: Comprehensive Portfolio
COMPREHENSIVE PORTFOLIO Market segments and vehicle families Order backlog contributions 2020 Market Reporting segment Type Vehicle families segment Very High 26% Not a strategic focus Speed Rolling Stock Service & Components High Speed 74% Trains Intercity Market segment Regional / Trains Suburban
Slide 7: Full-Year 2020 Key Figures
FULL-YEAR 2020 KEY FIGURES Vehicles delivered Order intake Order backlog Order intake Order Backlog 465 CHF 4.3bn CHF 16.1bn +5%(1) CHF X.Xbn -15%(1) CHF XXbn +7%(1) +XX% +XX% Net revenues EBIT margin CHF 3.1bn 5.1% -4%(1) -1 %-pts(1) Free Cash Flow(2) Net profit CHF -458.9m CHF 138.4m -CHF 130.0m(1
Slide 8: COVID-19 Impact
COVID-19 IMPACT – Demand remaining strong, no order cancelations and no large tenders lost Market – Ongoing tenders largely on track but some final decisions environment postponed due to Covid-19 and appeals by competitors – New tenders being launched – Interruptions to internal and external supply
Slide 9: Order Intake Highlights 2020
ORDER INTAKE HIGHLIGHTS 2020 Tyne & Wear Metro Metro Berlin LRVs − 42 METRO trains, a new Framework agreement for up to Up to 80 TRAMLINK for Milan (EUR maintenance plant and a 35-year 1,500 METRO cars valued at up to 172.6m). Firm order for 30 trams service contract EUR 3.0bn 24 TRAMLINK for
Slide 10: Signalling: Achievements 2020 and Outlook
SIGNALLING: ACHIEVEMENTS 2020 AND OUTLOOK Milestones in 2020 Outlook CBTC(1) First urban mass transit signalling system awarded to Stadler: Supplying a Stadler in dialogue with several CBTC-like train control system(2) on the European metro operators new Stadler vehicles for MARTA (Atlanta, USA) ETC
Slide 11: 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 12: 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 (2%) Other Other 28% Alstom 39% 11% 1% 23% Hitachi Rail 5% 6% Siemens 2% 11% 37% 2% 47% MU 13% Stadler (
Slide 13: 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 (1%) 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% E
Slide 14: 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 (2%) 10% 18% 30% Stadler (15%) Newag 4% 41% Siemens 5% 5% 16% Vossloh 6% 10% 7% 14% CZ Loko Skoda 12% 23% CAF Alstom Bombardier EMU/DMU: CHF
Slide 15: Full-Year 2020 Financial Results
FULL-YEAR 2020 FINANCIAL RESULTS
Slide 16: Full-Year Results 2020 Summary
FULL-YEAR RESULTS 2020 SUMMARY CHFm Order intake Order backlog Net revenues +7.2% -3.6% -15% 5’117 15’026 16’106 3’201 3’085 4’332 2019 2020 31.12.2019 31.12.2020 2019 2020 EBIT Net working capital(1) Capital expenditure(2) -19% + CHF 423m 194 +16% 156 450 288 249 6.1% 5.1% 27 2019 2020 31.12.2019 3
Slide 17: Order Intake
ORDER INTAKE CHFm -15% 5’117 Others(1) 8% 833 4’332 2% Americas 17% 14% 1’456 +75% Eastern Europe 17% 31% Western Europe 16% 4’284 2’875 -33% DACH 42% 53% 2019 2020 2019 2020 Rolling Stock Service & Components Comments Rolling Stock Major orders in DACH region (BVG Metro Berlin, Germany) and Weste
Slide 18: Order Backlog by Reporting Segment
ORDER BACKLOG BY REPORTING SEGMENT CHFbn 16.1 +15% CAGR 15.0 13.2 2.8 18% 4.1 26% 11.0 2.3 17% 9.3 2.0 18% 0.8 9% 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 Rolling Stock Service & Components % Share of Service & Components Order backlog of 16.1bn with a growing Se
Slide 19: Order Backlog by Product Segment
ORDER BACKLOG BY PRODUCT SEGMENT 31 Dec 2019 31 Dec 2020 18% 26% Executing on strategic focus 35% 11% 50% Trains 12% 7% Locomotives Metro 6% 8% 9% 6% LRV 12% Tailor-made Service & Components High quality and increasingly diversified order backlog Stadler full-year results 2020 | © Stadler | 11 March
Slide 20: Net Revenues
NET REVENUES CHFm -3.6% 3’201 3’085 261 343 +32% +3.1% 2’086 2’150 148 197 -6.7% -16% 2’940 2’742 1’115 113 935 1’938 1’953 146 1’002 789 2019 2020 H1 2019 H1 2020 H2 2019 H2 2020 Rolling Stock Service & Components Comments Rolling Stock Partial recovery of Covid-related delays with revenues up ye
Slide 21: EBIT
EBIT CHFm 250 15% -19% 200 194 151 156 10% 150 7.0% 6.1% 5.1% 100 5% 50 0.5% 5 0 0% 2019 H1 2020 H2 2020 2020 EBIT EBIT in % of net revenues Comments Rolling Stock Corona-related delays led to a decline in revenues in the first half. Profitability impacted by lower volumes, supply chain disruption
Slide 22: Net Income
NET INCOME CHFm 2019 2020 Change YOY Earnings before interest and taxes (EBIT) 193.7 156.1 (19%) Financial result (47.1) (3.1) Share of results from associates 4.0 2.8 Ordinary result 150.6 155.8 3.5% Non-operating result (2.1) (1.2) Profit before income taxes 148.5 154.7 4.1% Income taxes (20.0) (1
Slide 23: Net Cash Position
NET CASH POSITION CHFm 6 929 Cash and cash equivalents 753 -468 -534 Non-current financial liabilities -279 -1’003 Current financial liabilities -608 31.12.2019 31.12.2020 Comments Decline in net cash position mainly a result of deferred homologation, customer acceptance and final invoicing of new
Slide 24: Net Working Capital
NET WORKING CAPITAL Net working capital(1) (CHFm) 450 27 47 286 301 Trade receivables (48) (91) 450 818 862 Comp. claims from WIP 486 201 Inventories 232 132 179 Other current assets 27 44 (31) -317 Work in progress (net) 15 Inventories -804 31.12.2019 Other current assets 31.12.2020 Trade receivabl
Slide 25: Capital Expenditure
CAPITAL EXPENDITURE CHFm 288 248 57 35 188 14 231 213 76 174 55 11 8 65 48 2016 2017 2018 2019 2020 Investments in tangible assets Investments in intangible assets Comments Over EUR40m invested in capacity expansion in Germany related to a framework contract for the delivery of up to 1,500 METRO c
Slide 26: Outlook: Clear Strategy for Bringing Stadler to the Next Level
OUTLOOK: CLEAR STRATEGY FOR BRINGING STADLER TO THE NEXT LEVEL
Slide 27: 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 u
Slide 28: Additional Growth Potential Due to Government Supported Programs
ADDITIONAL GROWTH POTENTIAL DUE TO GOVERNMENT SUPPORTED PROGRAMS Supportive mega trends Rail as a structural beneficiary of government stimulus Connecting Europe – €24bn for transport until 2020 EU Green Deal – €1trn funding in total over 2021-2027 Green transportation with low EU Recovery Plan – €1
Slide 29: FY 2021 Financial Guidance
FY 2021 FINANCIAL GUIDANCE Order intake Between CHF 4.0bn and 5.0bn Net revenues Between CHF 3.5bn and 3.8bn EBIT-margin Above 6 % Capex of around CHF 200m Capex / FCF Positive Free Cash Flow Dividend Payout ratio of c. 60% of net income Our 2021 financial guidance is based on the assump
Slide 30: Mid-Term Financial Guidance
MID-TERM FINANCIAL GUIDANCE EBIT-margin 8 to 9% from 2023 onwards Dividend Payout ratio of c. 60% of net income Our 2021 financial guidance is based on the assumption that the effects of the COVID-19 pandemic will soon normalise and at constant currency exchange rates. Stadler full-year results
Slide 31: Thank You!
THANK YOU! STADLER
Slide 32: Reporting Segments
REPORTING SEGMENTS Rolling Stock CHFm 2019 2020 Change Order intake 4’284 2’875 -33% Order backlog 12’254 11’996 -2% Net revenues (third party) 2’940 2’742 -7% Additions to fixed assets 186 184 -1% (1) Total staff as FTEs 8’408 9’111 8% Service & Components CHFm 2019 2020 Change Order intake 833 1’4
Slide 33: 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: ir@stadlerrail.com Listing date: 12 April 2019 Financial calendar Media contact 06 May 2021: An
Slide 34: 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