Vossloh Aktiengesellschaft · XETR:VOS
Vossloh Aktiengesellschaft — Vossloh — Investor Presentation (August 2011)
23 slides from Vossloh Aktiengesellschaft's investor presentation, August 2011
Slide 1: Presentation to Investors August 2011
Presentation to Investors August 2011 1
Slide 2: Disclaimer
Disclaimer NB: The presentation contains forward-looking statements that are based on current estimates and assump- tions made by the management of Vossloh to the best of its knowledge. Such forward-looking statements are subject to risks and uncertainties, the non-occurrence or occurrence of which
Slide 3: Vossloh: Specialist in rail technology with leading market positions
Vossloh Specialist in rail technology with leading market positions Vossloh AG Rail Infrastructure Transportation Vossloh Fastening Systems Transportation Systems Vossloh Locomotives Vossloh Switch Systems Vossloh Rail Vehicles Vossloh Rail Services Vossloh Electrical Systems 3
Slide 4: Rail Infrastructure: Vossloh Fastening Systems
Rail Infrastructure Vossloh Fastening Systems ► Sales 2010: €369.4 million, workforce: 503 ► Elastic rail fastening systems for each and every application: for ballast and ballastless tracks (high-speed), for mainline & conventional lines, heavy-haul tracks and urban rail haulage (LRT) ► Worldwide m
Slide 5: Rail Infrastructure: Vossloh Switch Systems
Rail Infrastructure Vossloh Switch Systems ► Sales 2010: €439.0 million, workforce: 2,333 (acquired 2002) ► Standard, high-speed and specialty (heavy-haul) switches to all international standards; signaling components, switch actuators, locking devices and monitoring systems ► Worldwide No.2, only t
Slide 6: Rail Infrastructure: Vossloh Rail Services
Rail Infrastructure Vossloh Rail Services ► Sales 2010: €84.8 million, workforce: 319 ► Since 2010 part of the Vossloh Group ► Semi-stationary and stationary welding, logistics, testing, milling, grinding, etc. of rails ► Customers: rail producers and rail operators (e.g. Deutsche Bahn) ► A leader i
Slide 7: Transportation Systems, Vossloh Locomotives
Transportation Transportation Systems, Vossloh Locomotives ► Sales 2010: €102.5 million, workforce: 483 (acquired 1998) ► A leader in the European market for ultramodern diesel-hydraulic and additionally up from now diesel-electric locomotives for shunting and long- distance transport ►Center-cab lo
Slide 8: Transportation Systems, Vossloh Rail Vehicles
Transportation Transportation Systems, Vossloh Rail Vehicles ► Sales 2010: €202.5 million, workforce: 661 (acquired 2005) ► Europe’s leading manufacturer of diesel-electric locomotives ► Metro and LRV systems ► Manufacturer of Europe’s most powerful diesel-electric locomotive, the EURO 4000 ► Actual
Slide 9: Transportation: Vossloh Electrical Systems
Transportation Vossloh Electrical Systems ► Sales 2010: €160.0 million, workforce: 637 (acquired 2002) ► Vossloh Kiepe supplies innovative electrical systems used in road and rail vehicles operating on mainline and local public transportation systems ► Customized and efficient solutions address the
Slide 10: Vossloh stock: Sustainable Performance
Vossloh stock Sustainable Performance Attractive investment € Vossloh stock January 2000 – July 2011 120 ► Average yield since first-time quotation 100 15.8% p.a. 80 60 ► Over 20 years dividends have been either raised or kept stable 40 20 ► Increase in share price despite 0 financial crisis 2000 20
Slide 11: Vossloh Group, H1/2011: Project delays present temporary burden
Vossloh Group, H1/2011 Project delays present temporary burden ► Sales in H1/2011 down 17.8%, in Q2 alone by 22.1% ► Shipments in China well below budget, business in Russia hampered by technical problems with other components, Transportation still faltering, as expected ► Poor workload hurting EBIT
Slide 12: Order intake of around €900 million and order backlog of €1.4 billion
Vossloh Group, H1/2011 Order intake of around €900 million and order backlog of €1.4 billion offer sound prospects Order intake: ► Fastening Systems: €188.3 mill. (down from €191.0 mill.) ► Transportation Systems: €254.9 mill. (up from €63.8 mill.) ► Switch Systems: €238.2 mill. (up from €219.9 mill
Slide 13: All financial indicators clearly upgraded
Vossloh Group, H1/2011 All financial indicators clearly upgraded ► Average working capital improved by almost €100 million thanks to a reduced net balance of trade receivables/payables and to higher prepayments on orders ► Capital employed significantly curbed despite higher fixed assets ► Net finan
Slide 14: Cash flow far better thanks to slashed working capital
Vossloh Group, H1/2011 Cash flow far better thanks to slashed working capital Cash flow trend (in € million) H1/2010 H1/2011 EBIT 80.4 44.5 ► Cash flow from operating Amortization/depreciation/write-down (less write-up) of activities considerably upgraded 17.5 19.4 noncurrent assets ► Freely availab
Slide 15: Redemption of shares and share buyback
Vossloh Group Redemption of shares and share buyback ► Redemption of 1,470,630 treasury shares (9.94% of capital stock) as of July 26, 2011 without conducting a capital decrease ► Start of a new share repurchase program on July 27, 2011; to be terminated on June 30, 2012, at latest ► Repurchase prog
Slide 16: Sales in Europe and Asia weak, Americas stable, MENA up
Vossloh Group, H1/2011 Sales in Europe and Asia weak, in the Americas stable and in MENA up Sales trend (in € million) ► Sales in Europe down 19.1%, in Germany up to €120.3 million Worldwide ► Non-European sales at €167.9 million (-14.7%); € mill. share of group sales at 29.9% (up from 28.8%) 800 68
Slide 17: Rail Infrastructure, H1/2011
Rail Infrastructure, H1/2011 Fastening Systems burdened, Switch Systems up on Q1/2011 ► H1 sales down 14.9%, Q2 revenue shrinking 19.5% ► EBIT and EBIT margin receding due to poor workload and rising cost of materials ► Fastening Systems sales down 21.9% to €138.5 million in H1, 31.6% down in Q2 ► S
Slide 18: Transportation, H1/2011
Transportation, H1/2011 Transportation Systems still weak, Electrical Systems in cases below budget ► Sales still weak, as expected ► EBIT and EBIT margin year-on-year down due to low workload at Transportation Systems ► ROCE short of 15% benchmark but at 10.5% still double digit, despite EBIT slump
Slide 19: Capex and amortization/depreciation rising as budgeted
Vossloh Group, H1/2011 Capex and amortization/depreciation rising as budgeted Capex (€ mill.) Amortization/depreciation (€ mill.) ► Rail Infrastructure: Capital outlays of €7.4 million for the Switch Systems business unit, including for the new production plant in China. Capex of €4.4 million for 40
Slide 20: Targets: Vossloh to supply the rail technology market worldwide
Targets Vossloh to supply the rail technology market worldwide Worldwide growth 1995 to 2015 ► Target I: Vossloh to supply its products and services to the rail technology market worldwide ► The rail technology market is highly attractive thanks to its Index = 100 in 1995 year sustainable and signif
Slide 21: Vossloh endeavors to grow above average and earn a premium over cost of capital
Targets Vossloh endeavors to grow above average and earn a premium over and above its cost of capital ► Target II: Vossloh aims to outgrow the global rail ► Target III: Vossloh aims to add value, i.e., earn a technology market premium on top of its cost of capital ► The multiyear annual rail technol
Slide 22: Tall order backlog supports growth expectations for 2012
Vossloh Group, 2010–2012p Tall order backlog supports growth expectations for 2012 ► Order backlog endorses budgets for 2011 and 2012 ► Prospects for 2012 mainly for the Transportation division already considerably brightening; details of the Group’s expectations for 2012 will be communicated in Dec
Slide 23: Financial diary and contacts
Financial diary and contacts Financial diary ► October 27, 2011 Interim report as of September 30, 20111 ► December 2, 2011 Investors and analysts conference1 ► May 23, 2012 Annual general meeting Contacts ► Werner Andree, CEO ► IR contacts: Lucia Mathée Email: investor.relations@ag.vossloh.com Phon