Vossloh Aktiengesellschaft · XETR:VOS
Vossloh Aktiengesellschaft — Vossloh — Goldman Sachs European Industrials Conference 2018
30 slides from Vossloh Aktiengesellschaft's conference presentation, Nov 28, 2018
Slide 1: Driving Innovation. Developing Potential.
Driving Innovation. Developing Potential. Our Vision: The Smart Rail Track by Vossloh Investors Conference Goldman Sachs European Industrials Conference November 28, 2018, London
Slide 2: Agenda
Agenda 1. Company overview 2. Investment highlights 3. Financial overview 2
Slide 3: Vossloh: A global leading player in the rail infrastructure industry
Vossloh: A global leading player in the rail infrastructure industry Profile Rail Infrastructure Discontinued operations Core Components Customized Modules Lifecycle Solutions Transportation Fastening Systems, Tie Technologies Switch Systems Rail Services Locomotives Standardized products in large M
Slide 4: The collective Vossloh Story
The collective Vossloh Story Decades of experience in all segments Foundation of the company Foundation of Stahlberg- Foundation of Rocla Acquisition of the French New organization Eduard Vossloh, headquartered Roensch GmbH in Hamburg Concrete Tie in Cogifer Group; expansion of the of the Group in t
Slide 5: Agenda
Agenda 1. Company overview 2. Investment highlights 3. Financial overview 5
Slide 6: Key investment highlights
Key investment highlights 1 Global player with a leading market position 2 Sustainable growth market with high entry barriers 3 Technology leadership with integrated portfolio 4 Four strategic fields of action 5 Our Vision: The Smart Rail Track by Vossloh 6
Slide 7: Global player with leading market position
1 Global player with leading market position Global expertise in more than 100 Countries(1) 23,5 % 51,8 % 17,3 % 5,0 % 2,4 % America Europe total Africa Asien Australia €158.7 Mill. €475.5 Mill. €46.3 Mill. €215.6 Mill. €22.2 Mill. (1) Sales figures of financial year 2017. 7
Slide 8: Sustainable growth market with high entry barriers
2 Sustainable growth market with high entry barriers Accessible market with persistent attractive growth Accessible rail technology market (2021E–2023E)(1) CAGR(2) Western CIS (2015–2017 – 2021E–2023E) Europe €7 Western Europe +2.3% billion €43 billion Eastern NAFTA +3.1% NAFTA Europe €8 €32 billion
Slide 9: UNIFE study shows good medium- and long-term market potential
2 Sustainable growth market with high entry barriers UNIFE study shows good medium- and long-term market potential UNIFE: Infrastructure and Infrastructure services UNIFE forecast: Infrastructure and Infrastructure services in € mill. in € mill. ∑ 27,296(1) CAGR: + 2.5%(1) ∑ 32,182(3) CAGR:(3) ∑ 26,
Slide 10: Positive developments in focus markets
2 Sustainable growth market with high entry barriers Positive developments in focus markets ▪ World's largest market for railway technology; leading Western Europe ▪ Third largest rail network worldwide: ~ 130,000 km(1); high market positions with at least one business unit in almost modernization n
Slide 11: Vossloh's strong and sustainable market position
2 Sustainable growth market with high entry barriers Vossloh’s strong and sustainable market position Diverse market entry barriers Sustainable Vossloh market share Proven success story ▪ >100 years operational business activities in the railway supply industry ▪ Industry-standard technology Strict
Slide 12: Technology leadership through an integrated portfolio
3 Technology leadership through an integrated portfolio Products and solutions from a single source 12
Slide 13: Total solutions for customers through networked expertise
3 Technology leadership through an integrated portfolio Total solutions for customers through networked expertise Core Components Customized Modules ▪ Technological know-how and many years of experience are ▪ Strong solution expertise in all areas of switch systems and the basis for technological le
Slide 14: Criteria for achieving strategic and financial goals
3 Technology leadership through an integrated portfolio Criteria for achieving strategic and financial goals Clearly defined operative criteria… … with focus on rail infrastructure…… …with positive impact on… Leading market position No. 1/no. 2 positions achievable Global demand All major world regi
Slide 15: Four strategic areas of action
4 Four strategic areas of action Key drivers of the growth strategy Innovation ▪ Promoting innovation and “open thinking” ▪ Implementation of Group-wide innovation management in the area of Operative excellence "Smart Track" and "Digitization” ▪ Added value for customers based on industrial top ▪ De
Slide 16: The Smart Rail Track by Vossloh
5 The Smart Rail Track by Vossloh Vossloh's vision for the future Developments in digitalization provide new, powerful tools for an Data collected on the track can be intelligently linked to gain important leap forward. relevant information for the customer. We understand the physics of tracks. As a
Slide 17: Digitization opens new business models
5 The Smart Rail Track by Vossloh Digitization opens new business models Today Track Tomorrow components ▪ Condition assessment at intervals Sensors ▪ Measurement, transmission and partly entails high personnel and M&R analysis of availability-relevant material costs service and cost-intensive compo
Slide 18: Agenda
Agenda 1. Company overview 2. Investment highlights 3. Financial overview 18
Slide 19: Vossloh Group: Driving Innovation. Developing Potential.
Vossloh Group: Driving Innovation. Developing Potential. Guidance confirmed and further detailed, order backlog well above the previous year Performance ▪ Sales and EBIT below the previous year’s figures, as expected, particularly due to project- related, temporary sales weakness in the high-margin
Slide 20: Vossloh Group: Sales and EBIT down year-over-year
Vossloh Group Sales and EBIT down year-over-year as anticipated Key group indicators 1) 1-9/2017 1-9/2018 Notes Sales revenues € mill. 683.2 623.2 ▪ Sales revenues in the Core Components division down year-on-year; decline also attributable to EBIT € mill. 56.6 35.2 negative exchange rate effects EB
Slide 21: Vossloh Group: Equity ratio unchanged above 40%
Vossloh Group Equity ratio unchanged above 40%, net financial debt higher 1-9/2017/ 1-12/2017/ 1-9/2018/ Key group indicators 1) Notes 9/30/2017 12/31/2017 9/30/2018 Equity € mill. 563.2 532.4 520.1 ▪ Equity lower than at the end of 2017 partially due to dividend payments Equity ratio % 43.6 42.5 42
Slide 22: Orders received increase by 4.8%, order backlog 9.7% higher
Vossloh Group Orders received increase by 4.8%, order backlog 9.7% higher Orders received in € mill. Order backlog in € mill. Notes 684.0 ▪ Orders received increased particularly as a result 652.5 542.7 of significantly higher orders received at Vossloh 72,6 494.8 25,0 67,8 Fastening Systems (China,
Slide 23: Core Components division (CC)
Core Components division (CC) Sales lower year-on-year for project-related reasons, profitability at 12% Sales in € mill. EBIT in € mill. EBIT margin in % 268.1 203.3 39.9 24.9 14.9 12.2 1-9/2017 1-9/2018 1-9/2017 1-9/2018 1-9/2017 1-9/2018 1-9/2018: 15.2 ▪ Sales lower year-on-year primarily in the
Slide 24: Fastening Systems business unit (VFS)
Fastening Systems business unit (VFS) Weak sales development in Q3, high sales expected in Q4 Sales in € mill. Value added in € mill. 208.9 155.0 31.0 17.5 1-9/2017 1-9/2018 1-9/2017 1-9/2018 1-9/2017 1-9/2018 Orders 1-9/2018: 192.3 ▪ Sales remain below the previous year due to temporary sales weakn
Slide 25: Tie Technologies business unit (VTT)
Tie Technologies business unit (VTT) Order situation continues to improve, book-to-bill at 1.18 Sales in € mill. Value added in € mill. 60.3 50.1 (3.9) (4.9) 1-9/2017 1-9/2018 1-9/2017 1-9/2018 ▪ Particularly lower sales in the transit business and in Mexico result in declining sales, Orders 1-9/201
Slide 26: Customized Modules division (CM)
Customized Modules division (CM) Sales slightly above the previous year, book-to-bill greater than 1 Sales in € mill. EBIT in € mill. EBIT margin in % 353.2 356.0 24.2 20.4 6.9 5.7 1-9/2017 1-9/2018 1-9/2017 1-9/2018 1-9/2017 1-9/2018 ▪ Significant adverse impact on sales through currency translatio
Slide 27: Lifecycle Solutions division (LS)
Lifecycle Solutions division (LS) Sales slightly higher year-on-year, EBIT margin clearly improved Sales in € mill. EBIT in € mill. EBIT margin in % 67.7 69.7 7.1 5.9 4.0 4.9 1-9/2017 1-9/2018 1-9/2017 1-9/2018 1-9/2017 1-9/2018 1-9/2018: 4.8 ▪ Better utilization of the welding plants contributes to
Slide 28: Vossloh Group: Sales by region
Vossloh Group Notably higher sales in Eastern/Southern Europe, Asia below 2017 as expected The Americas Europe (€ mill.) Africa & Australia Asia incl. Middle East (€ mill.) (€ mill.) (€ mill.) 378 347 55 37 164 41 55 26 82 78 101 122 112 50 27 21 28 32 16 138 187 190 95 84 20 80 34 12 1-9/20171) 1-9
Slide 29: Vossloh Group, 2018 outlook
Vossloh Group, 2018 outlook Guidance for 2018 in general confirmed and further detailed ▪ Sales trend toward the lower end of the range (€875 – 950 million): Attributable in part to negative exchange rate effects; downward trend in the Core Components division due to an anticipated temporary weakeni
Slide 30: Financial calendar and contact information
Financial calendar and contact information How to reach us Financial calendar ▪ March 28, 2019 Annual Report 2018 ▪ May 22, 2019 Annual General Meeting Contact information for investors: Contact information for the media: ▪ Dr. Daniel Gavranovic ▪ Dr. Thomas Triska ▪ Email: investor.relations@vosslo
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