Slide 1: Results Presentation H1-2024
Results Presentation H1-2024 30 July 2024
Slide 2: Disclaimer
Disclaimer This presentation has been prepared and issued by Talgo, S.A. (the “Company”) for the sole purpose expressed herein. Therefore, neither this presentation nor any of the information contained herein constitutes an offer, sale or exchange of securities, invitation to purchase, sale or excha
Slide 3: Table of contents
1. Executive summary 2. Other materials Table of I. Business performance contents II. Financial results ANNEX
Slide 4: Executive Summary – Key Highlights
Executive Summary – Key Highlights ▪ Sustainability as key driver in business strategy. H1-2024 ▪ Strong manufacturing activity focused on both national and international projects (Spain, Germany and Denmark mainly). Accident freq. 8.631 Business ▪ Unique commercial momentum with large number of opp
Slide 5: Business performance (I/II)
Business performance (I/II) ▪ Commercial success registered in the recent years provides industrial visibility for the following years and projects economic stability with indexation clauses that mitigates inflation risks. ▪ In addition, recent awards consolidate Talgo product positioning in the rai
Slide 6: Business performance (II/II)
Business performance (II/II) ▪ Order backlog amounts above €4.0 bn as of June 2024, providing high revenues visibility in the medium and long term: o Approx. 50% corresponds to manufacturing projects, mainly passenger coaches with Talgo 230 platform as new state-of-the-art development ad-hoc for lon
Slide 7: Main financial figures – P&L
Main financial figures – P&L Quarterly Revenues(€m) EBITDA (€m) and margin (%) 346.1 45 40.9 40 288.6 35 33.6 30 25 20 15 11.6% 11.8% 10 5 0 H1-2023 H1-2024 H1-2023 H1-2024 EBITDA EBITDA margin ▪ Revenues amounted €346.1 m in H1-2024 enhanced by a strong manufacturing activity which should remain in
Slide 8: Main financial figures – Balance sheet
Main financial figures – Balance sheet ▪ Working Capital increased in the period in line with current manufacturing phases. Accounts receivables registered in the balance sheet are mainly to Work In Progress (€427 m). H1-2024 H1-2023 ▪ In this sense, WIP growth amounted €102 m in H1-2024 €495 m €304
Slide 9: Outlook FY-2024
Outlook FY-2024 Current Outlook Outlook update FY-2024 Profitability ✓ EBITDA: c. 11.5% EBITDA: c. 11.5% ✓ Working Capital: Stable3 Working Capital: Increase3 Capital structure ✓ Net Financial Debt: c. 3.0x EBITDA Net Financial Debt: c. 3.5x EBITDA ✓ Capex: c. €30 m1 Capex: c. €30 m1 Business ✓ 2023
Slide 10: Table of contents
1. Executive summary 2. Other materials Table of I. Business performance contents II. Financial results ANNEX
Slide 11: Commercial activity
Commercial activity Order intake in H1-2024 (€m) Talgo pipeline – Main target for 2024-20261 2,127 Europe: €4.2 bn 1,134 MENA: America: €2.1 bn Target €0.4 bn FY-2024 519 387 59 133 FY-2019 FY-2020 FY-2021 FY-2022 FY-2023 H1-2024 ▪ Talgo is currently targeting opportunities for the next 24 months wi
Slide 12: Backlog overview
Backlog overview Backlog H1-2024 Rolling Stock: 4,223 €3.8 bn (96%) 4,014 Manufacturing 3,184 3,249 Maintenance 2,748 €4.0 bn Maintenance Equipment and other: €0.2 bn (4%) FY-2020 FY-2021 FY-2022 FY-2023 H1-2024 ▪ Talgo’s backlog amounted € 4.0 bn as of June 2024: o Renfe project comprising 30 VHS A
Slide 13: Backlog breakdown – Manufacturing projects
Backlog breakdown – Manufacturing projects Backlog H1-2024 Manufacturing €4.0 bn High Speed Long distance (intercity) ▪ Renfe VHS trains (Spain) – €900 m: ▪ DB Talgo 230 km/h (Germany) – c. €2,100 m: o Manufacture of 30 VHS “Avril” trains and o Contract for up to 100 Talgo 230 trains. maintenance fo
Slide 14: Backlog breakdown – Maintenance activity
Backlog breakdown – Maintenance activity Backlog H1-2024 Location of maintenance contracts €4.0 bn Maintenance ▪ Installed base stable with over 3,000 vehicles maintained during H1-2024 delivering successful delivery services and recurrent revenue contribution. ▪ Average maturity of maintenance back
Slide 15: Backlog breakdown – Maintenance Equipment and other
Backlog breakdown – Maintenance Equipment and other Backlog H1-2024 €4.0 bn Maintenance Equipment and other Overhaul and refurbishment projects in Spain Overhaul and refurbishment projects in USA ▪ Conversion of night trains – €107 m: ▪ Metrolink remodeling – $35 m: o Conversion of Talgo S7 composit
Slide 16: Table of contents
1. Executive summary 2. Other materials Table of I. Business performance contents II. Financial results ANNEX
Slide 17: Profit and Loss – Revenues
Profit and Loss – Revenues Revenues (€m) Quarterly revenues (€m) 346.1 181.8 181.7 179.6 161.9 166.5 288.6 134.5 126.7 116.9 H1-2023 H1-2024 Q3-22 Q4-22 Q1-23 Q2-23 Q3-23 Q4-23 Q1-24 Q2-24 Revenues by business line1 ▪ Revenues remained at a high level during the first half of 2024, reflecting the st
Slide 18: Profit and Loss – EBITDA and Net Income
Profit and Loss – EBITDA and Net Income EBITDA (€m) and margin (%) Net Income (€m) 45 40.9 40 35 33.6 30 25 14.6 20 15 11.6% 11.8% 7.0 10 5 0 H1-2023 H1-2024 H1-2023 H1-2024 EBITDA EBITDA margin ▪ EBITDA margins also increased in the period to reach €40.9 m in H1-2024 (+22% vs H1-2023), enhanced by
Slide 19: Balance Sheet – Working Capital
Balance Sheet – Working Capital ▪ Working Capital increased in H1-2024 to reach €495.0 m. Current strong revenue recognition mainly driven by manufacturing projects in assembly phases temporarily increases working capital intensity. ▪ In this sense, Working Capital variations reflect normal industri
Slide 20: Balance Sheet – Net Financial Debt
Balance Sheet – Net Financial Debt Net Financial Debt (€m)1 Financial debt2 – Repayment schedule (€m) NFD / LTM 3.1x 4.3x aEBTIDA 133 139 357.4 107 3 240.6 69 49 41 35 FY-2023 H1-2024 2024 2025 2026 2027 >2028 Loans Commercial paper Deferred exp. ▪ Net financial debt increased in H1-2024 to reach €3
Slide 21: Table of contents
1. Executive summary 2. Other materials Table of I. Business performance contents II. Financial results ANNEX
Slide 22: Annex 1 – P&L
Annex 1 – P&L Profit & Loss Account (€m) H1-2024 H1-2023 % Change Total net turnover 346.1 288.6 20.0% Other income 19.5 10.6 84.2% Procurement costs (171.3) (138.7) 23.5% Employee welfare expenses (102.4) (83.9) 22.0% Other operating expenses (51.0) (42.9) 18.8% EBITDA 40.9 33.6 21.9% % Ebitda marg
Slide 23: Annex 2 – Balance Sheet
Annex 2 – Balance Sheet Balance Sheet (€m) June 2024 June 2023 Dec 2023 FIXED ASSETS 292.4 268.1 276.1 Tangible + intangible assets 154.1 131.7 138.8 Goodwill 112.4 112.4 112.4 Other long term assets 25.8 23.9 24.9 CURRENT ASSETS 901.6 781.7 839.7 Inventories 218.5 219.5 191.7 Accounts receivable 54
Slide 24: Annex 3 – Balance Sheet: NFD and WC breakdown
Annex 3 – Balance Sheet: NFD and WC breakdown Financial debt (€m) June 2024 June 2023 Dec 2023 Long term financial liabilities 313.4 253.3 292.2 Short term financial liabilities 152.4 58.3 101.0 Financial leasings 3.3 4.4 3.2 Cash & cash equivalents (112) (140.9) (155.8) Net financial debt 357.4 175
Slide 25: Annex 4 – Cash Flow Statement
Annex 4 – Cash Flow Statement Cash flow statement (€m) 1H24 1H23 % Change Cash flow from operating activites (69.7) (56.3) n.a. Income tax paid (5.0) (3.3) 53% Capex and other investments (25.4) (10.6) 139% Operating Cash Flow (100.0) (70.1) 43% Changes in financial assets and liablities 73.5 (19.8)
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