42 slides from Construcciones Y Auxiliar De Ferrocarriles's earnings presentation, Feb 27, 2024
Slide 1: Full Year 2023 Results
www.caf.net FULL YEAR 2023 RESULTS 27 February 2024
Slide 2: Legal Notice
LEGAL NOTICE THIS DOCUMENT HAS BEEN PREPARED FOR INFORMATION PURPOSES ONLY The information contained in this document has not Therefore, on no account should it be construed as Any decision made by third parties as a result of the been verified by independent third parties; advice or recommendation
Slide 3: Contents
CONTENTS 1. HIGHLIGHTS 2023 2. FINANCIAL INFORMATION 3. STOCK MARKET INFORMATION 4. SUSTAINABILITY 5. OUTLOOK 6. APPENDICES 3
Slide 4: Highlights 2023
/1 HIGHLIGHTS 2023 4
Slide 5: One year back we set the following targets for 2023
1. Highlights 2023 ONE YEAR BACK WE SET THE FOLLOWING TARGETS FOR 2023 CAF AIMS TO GRADUALLY RECOVER PROFITABILITY IN 2023 An excerpt from the Full Year Results 2022 5
Slide 6: At year-end, we confirm that these targets have been met
1. Highlights 2023 / 1.1 Key Figures AT YEAR-END, WE CONFIRM THAT THESE TARGETS HAVE BEEN MET ORDER INTAKE BACKLOG REVENUE €4,775m ✓ €14,200m ✓ €3,825m ✓ Acceleration of order intake in the final part of the year, surpassing the annual target. -23% +7% +21% Btb=1.2. vs FY22 vs 31/12/2022 vs FY22 Bac
Slide 7: Milestones achieved for the future of the CAF Group
1. Highlights 2023 / 1.1 Key Figures / 1.2 Milestones Achieved IN LINE WITH THE ESTABLISHED STRATEGIC ROADMAP, WE HAVE ACHIEVED KEY MILESTONES FOR THE FUTURE OF THE CAF GROUP / 1st FULL FINANCIAL YEAR OF THE NEW PERIMETER / HISTORIC ORDER INTAKE OF RAIL SERVICES ACQUIRED IN FRANCE AND GERMANY IN THE
Slide 8: Milestones achieved: Solaris trend reversal and leadership
1. Highlights 2023 / 1.1 Key Figures / 1.2 Milestones Achieved IN LINE WITH THE ESTABLISHED STRATEGIC ROADMAP, WE HAVE ACHIEVED KEY MILESTONES FOR THE FUTURE OF THE CAF GROUP / SOLARIS' TREND REVERSAL: RETURN TO A POSITION OF / SOLARIS LEADERSHIP CONSOLIDATED IN EUROPE1 GROWTH, PROFITABILITY AND FIN
Slide 9: Milestones: innovation and net-zero strategy
1. Highlights 2023 / 1.1 Key Figures / 1.2 Milestones Achieved IN LINE WITH THE ESTABLISHED STRATEGIC ROADMAP, WE HAVE ACHIEVED KEY MILESTONES FOR THE FUTURE OF THE CAF GROUP / WE REMAIN COMMITTED TO INNOVATION / WE CONTINUE TO PURSUE OUR NET-ZERO STRATEGY / EMISSION REDUCTION (base year 2019) Desig
Slide 10: Acceleration of order intake and book-to-bill of 1.2 in 2023
1. Highlights 2023 / 1.1 Key Figures / 1.2 Milestones Achieved / 1.3 Order Intake ACCELERATION OF ORDER INTAKE IN THE LAST PART OF THE YEAR AND BOOK-TO-BILL OF 1.2 IN 2023 / TOTAL (€m) / ORDER INTAKE DISTRIBUTION BY ACTIVITY LINE (%) Sustained order intake during the year, with high contribution in
Slide 11: Services and bus order intake record levels
1. Highlights 2023 / 1.1 Key Figures / 1.2 Milestones Achieved / 1.3 Order Intake SERVICES AND BUS ORDER INTAKE RECORD LEVELS SEPARATELY, AND FOR THE FIRST TIME TO DATE, THE SYMBOLIC AMOUNT OF €1bn ORDER INTAKE IS EXCEEDED / BOOK-TO-BILL RATIO ~ 2 IN SERVICES / SOLARIS LEADERSHIP All-time record ord
Slide 12: Main orders announced and signed in Q4 2023 - Railway
1. Highlights 2023 / 1.1 Key Figures / 1.2 Milestones Achieved / 1.3 Order Intake Main orders announced and signed in Q4 2023 - RAILWAY / TRI-MODE TRAINS FOR LNER (UNITED KINGDOM) / RENFE MAINTENANCE (SPAIN) • Ten 10-car trains, for the British operator LNER (London North Eastern • Comprehensive mai
Slide 13: Main orders announced and signed in Q4 2023 - Buses
1. Highlights 2023 / 1.1 Key Figures / 1.2 Milestones Achieved / 1.3 Order Intake Main orders announced and signed in Q4 2023 - BUSES / ZERO EMISSION BUSES FOR ITALY, GERMANY AND SPAIN HYDROGEN BUSES FOR VENICE (ITALY) ELECTRIC BUSES FOR MILAN (ITALY) • 90 hydrogen buses, 75 of these twelve-metres l
Slide 14: The backlog continues to expand despite sharp revenue increase
1. Highlights 2023 / 1.1 Key Figures / 1.2 Milestones Achieved / 1.3 Order Intake / 1.4 Backlog THE BACKLOG CONTINUES TO EXPAND DESPITE REVENUE INCREASING SHARPLY IN THE FINANCIAL YEAR / TOTAL (€m) / RECENT BACKLOG EVOLUTION STRONG BACKLOG +61% GROWTH IN THE Railway Business LAST THREE YEARS 14,200
Slide 15: Europe gains importance in a widely diverse backlog
1. Highlights 2023 / 1.1 Key Figures / 1.2 Milestones Achieved / 1.3 Order Intake / 1.4 Backlog EUROPE GAINS IMPORTANCE IN A WIDELY DIVERSE BACKLOG / BACKLOG DISTRIBUTION BY ACTIVITY LINE (%) / BACKLOG DISTRIBUTION BY GEOGRAPHIC (%) Integrated Solutions and Rest of the Systems world Spain APAC 12% 9
Slide 16: Financial Information
/2 FINANCIAL INFORMATION 16
Slide 17: A positive evolution of all variables, with increased profitability
2. Financial Information / 2.1 Consolidated Statement of Profit or Loss A POSITIVE EVOLUTION OF ALL VARIABLES, WITH AN INCREASE IN PROFITABILITY (EUR million) 2022 2023 Var. 2023/2022 REVENUE 3,165 3,825 +21% A significant increase in revenue, above the target for the year. OPERATING RESULT - EBIT 1
Slide 18: Significant revenue growth in both segments
2. Financial Information / 2.1 Consolidated Statement of Profit or Loss SIGNIFICANT GROWTH IN REVENUE IN BOTH SEGMENTS, WHICH CONFIRMED CONTINUED GROWTH TRENDS REVENUE / CONSOLIDATED / RAILWAY / BUSES +21% +22% +18% 1 3,825 1 3,165 3,006 2,735 2,469 2,125 1,877 Growth forecast for the year has 1,429
Slide 19: Expansion trend in all railway activities
2. Financial Information / 2.1 Consolidated Statement of Profit or Loss EXPANSION TREND IN ALL RAILWAY ACTIVITIES RAILWAY REVENUE / ROLLING STOCK / SERVICES / INTEGRATED SOLUTIONS AND SYSTEMS +25% +8% +28% 1 1,745 1,401 587 674 543 525 2022 2023 2022 2023 2022 2023 % on revenue 44% 46% % on 17% 15%
Slide 20: Firm bus supply in 2023, predominantly zero-emission buses
2. Financial Information / 2.1 Consolidated Statement of Profit or Loss FIRM BUS SUPPLY IN 2023, PREDOMINANTLY COMPRISING ZERO-EMISSION BUSES (ELECTRIC AND HYDROGEN) BUSES REVENUE / No. OF BUSES DELIVERED / No. OF BUSES IN BACKLOG The gradual recovery of the supply chain meant that the number of bus
Slide 21: Solaris consolidated leadership in European zero emission urban buses
2. Financial Information / 2.1 Consolidated Statement of Profit or Loss WITH A MARKET SHARE OF >15%, SOLARIS HAS CONSOLIDATED ITS LEADERSHIP IN THE EUROPEAN MARKET FOR ZERO EMISSION URBAN BUSES BUS REVENUE OUTRIGHT LEADER FOR HYDROGEN URBAN / EUROPEAN ZERO-EMISSION URBAN BUS MARKET (ELECTRIC AND HYD
Slide 22: Significant increase in operating profit and profitability
2. Financial Information / 2.1 Consolidated Statement of Profit or Loss A SIGNIFICANT INCREASE IN OPERATING PROFIT AND INCREASED PROFITABILITY / Annual and Half-year EBIT (€m) and EBIT Margin (%) RAILWAY • The Railway EBIT is up 20% compared to 2022. 179 4.7% • Profitability still affected by cost i
Slide 23: Group cash-flow amounted to €55m
2. Financial Information / 2.1 Consolidated Statement of Profit or Loss / 2.2 Cash flow THE GROUP'S CASH-FLOW AMOUNTED TO €55M, DRIVEN BY THE INCREASE IN RESULTS / EBITDA-CASH FLOW BRIDGE (€m) 23
Slide 24: Strengthening of the balance sheet
2. Financial Information / 2.1 Consolidated Statement of Profit or Loss / 2.2 Cash flow / 2.3 Consolidated balance sheet STRENGTHENING OF THE BALANCE SHEET IN GROWING BUSINESS ACTIVITY CONTEXT (EUR million) 2022 2023 / CAPEX (TANGIBLE + INTANGIBLE) (€m) Fixed Assets 1,437 1,371 Working capital (195)
Slide 25: Improved financial position and NFD/EBITDA below 1
2. Financial Information / 2.1 Consolidated Statement of Profit or Loss / 2.2 Cash flow / 2.3 Consolidated Balance Sheet / 2.4 Financial Position IMPROVED FINANCIAL POSITION AND NFD/EBITDA RATIO < 1 / NET FINANCIAL DEBT (€m) / LIQUIDITY (€m) 1.8X 1000 1.5X 800 1,5 978 1.1X 1.2X 956 600 0.9X 434 1 40
Slide 26: Proposed dividend in line with results
2. Financial Information / 2.1 Consolidated Statement of Profit or Loss / 2.2 Cash flow / 2.3 Consolidated Balance Sheet / 2.4 Financial Position/ 2.5 Shareholder Remuneration THE PROPOSED DIVIDEND IS IN LINE WITH RESULTS AND YIELDS ATTRACTIVE RETURNS / EARNINGS PER SHARE-EPS (€) / DIVIDEND PER SHAR
Slide 27: Stock Market Information
/3 STOCK MARKET INFORMATION 27
Slide 28: CAF shares increased in value by 23% in 2023
3. Stock market information CAF SHARES HAVE INCREASED IN VALUE BY 23% IN 2023, AND ANALYSTS ESTIMATE A POTENTIAL OF MORE THAN 30%1 / CAF PERFORMANCE vs IBEX AND SECTOR2 / STOCK MARKET INFORMATION / SHAREHOLDING STRUCTURE 130 125 Cartera CAF 2023 Social 35 IBEX 120 Market capitalization (EUR) 1,117,5
Slide 29: Sustainability
/4 SUSTAINABILITY 29
Slide 30: Well prepared to lead the future of sustainable transport
4. Sustainability WELL PREPARED TO LEAD THE FUTURE OF SUSTAINABLE TRANSPORT, OPTIMISING OUR BENEFICIAL EFFECT ON THE PLANET AND ON PEOPLE / SUSTAINABILITY AS THE BACKBONE FOR OUR STRATEGY / NEW COMMITMENTS / DEFINITION OF PURPOSE, AND UPDATE OF MISSION, VISION AND VALUES / CAF JOINS ASCOM AND DEMONS
Slide 31: Outlook
/5 OUTLOOK 31
Slide 32: In 2024, our goal is to continue our growth cycle
5. Outlook IN 2024, OUR GOAL IS TO CONTINUE OUR GROWTH CYCLE IN TERMS OF ACTIVITY AND RESULTS, AND TO MAINTAIN OUR CURRENT FINANCIAL STABILITY / 20241 Book-to-bill > ≥1 Selective Order intake Revenue > Approximately +10% vs 2023 EBIT Net profit > Improved profitability vs. 2023 Dividend > In line wi
Slide 33: We ratify the targets for 2026
5. Outlook WE RATIFY THE TARGETS FOR 2026 DESPITE THE DIFFERENT ENVIRONMENTAL CONDITIONS SINCE THE SUBMISSION OF THE STRATEGIC PLAN / 20261 c.x1.6 c. 2.2x Revenue NFD/EBITDA c.€4,800m following M&A c.x1.8 30% EBIT Scope 1&2 c.€300m Net zero emissions 2045 Ascending Dividends progress in line Scope 3
Slide 34: Appendices
/6 APPENDICES 34
Slide 35: Breakdown of order intake
6. Appendices / 6.1. Breakdown of order intake (Continues on the next page) 35
Slide 36: Breakdown of order intake
6. Appendices / 6.1. Breakdown of order intake 36
Slide 37: Net Financial Debt Bridge
6. Appendices / 6.1. Breakdown of order intake / 6.2 Additional Financial Information NET FINANCIAL DEBT BRIDGE (EUR million) 37
Slide 38: Net Equity Bridge
6. Appendices / 6.1. Breakdown of order intake / 6.2 Additional Financial Information NET EQUITY BRIDGE (EUR million) 38
Slide 39: Responsible Management Scorecard
6. Appendices / 6.1. Breakdown of order intake / 6.2 Additional Financial Information / 6.3 Responsible Management Scorecard (1) Actual Target KPIs FY21 FY22 FY23 FY23E 2024E 2026E CO2 emission reduction (%) Scope 1&2 (base year 2019, SBTi)(4) - 31.5% (2) 32.6% • 16.8% 21% 30% CO2 emission reduction
Slide 40: Alternative Performance Measures (APM)
ALTERNATIVE PERFORMANCE MEASURES (APM) In addition to the financial information prepared in accordance with the generally accepted accounting principles (IFRS), the CAF Group uses specific Alternative Performance Measures (APM) in the management of its business on a recurring and consistent basis, w
Slide 41: Agenda
AGENDA 5-14 March 2024 > Roadshow post-Results 2023 • Madrid • Paris • London • Zurich • Geneva • Milan • Munich 9 May 2024 > Publication of Q1 2024 Results Shareholders and Investors Office Contact: accionistas@caf.net 41
Slide 42: Trust in Motion
TRUST IN MOTION