Slide 1: Results Presentation FY2023
Results Presentation FY2023 28 February 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 approach in all business activities. Decreasing FY-2023 working accidents obtaining best rates of the last five years. Accident freq.1 6.20 ▪ Outstanding commercial momentum registering historical highs Business in new orders with value amounting a
Slide 5: Business performance (I/II)
Business performance (I/II) ▪ Talgo’s state-of-the-art technology proves to be a reference in European markets for decarbonization process of passenger transportation, while consolidating as highly competitive solution for MENA countries. o DSB extension for the manufacturing of eight additional Tal
Slide 6: Business performance (II/II)
Business performance (II/II) ▪ Backlog increased by 54% in 2023 to reach €4.2 bn driving Talgo to its backlog historical highs and consolidating its international presence. ▪ In addition, most relevant new orders are extensions of existing contracts (DB and DSB), which 1) minimize execution risks; 2
Slide 7: Main financial figures – P&L
Main financial figures – P&L Revenues (€m) 90 80 +55% 76.5 49.3 70 60 50 11.7% 40 Ebitda (€m) 30 20 10.5% 652.0 and margin (%) 10 0 +39% FY-2022 FY-2023 469.1 EBITDA EBITDA margin 90 +58% 82.6 80 70 60 52.5 12.7% 50 aEbitda1 (€m) 40 30 11.2% 20 and margin (%) 10 0 FY-2022 FY-2023 FY-2022 FY-2023 aEB
Slide 8: Main financial figures – Balance sheet
Main financial figures – Balance sheet ▪ Working Capital increased in the period, in line with current manufacturing phases. In this sense, most of accounts receivables registered in the balance sheet as of December FY-2023 FY-2022 2023 relates to Work In Progress (321 €m of WIP). €385 m €217 m Work
Slide 9: Outlook FY-2024
Outlook FY-2024 Targets FY-2023 Performance FY-2023 Outlook FY-2024 Profitability ✓ aEBITDA: c. 13% P 12.7% aEBITDA (Equivalent 11.7% EBITDA) c. 11.5% EBITDA (Equivalent 12.5% aEBITDA) Target changes from Adjusted EBITDA to EBITDA ✓ Working Capital: Stable3 O WC increase in the period Working Capita
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 FY-2023 (€m) Talgo pipeline – Main target for 2024-20261 2,127 Europe: €2.9 bn 1,134 MENA: America: €1.9 bn €0.2 bn 519 387 59 FY-2019 FY-2020 FY-2021 FY-2022 FY-2023 ▪ Talgo’s backlog to reach historical highs in 2023 driven by over € 2.1 bn of new orders registe
Slide 12: Backlog overview
Backlog overview Backlog FY-2023 (€m) Rolling Stock: 4,223 €4.1 bn (96%) Manufacturing 3,347 3,249 3,184 Maintenance 2,748 €4.2 bn Maintenance Equipment and other: €0.2 bn (4%) FY-2019 FY-2020 FY-2021 FY-2022 FY-2023 ▪ Talgo’s backlog reached historical highs in 2023 with a value amounting € 4.2 bn,
Slide 13: Backlog breakdown – Manufacturing projects
Backlog breakdown – Manufacturing projects Backlog FY-2023 Manufacturing €4.2 bn High Speed Long distance (intercity) ▪ Renfe VHS trains (Spain) – €900 m: ▪ DB Talgo 230 km/h (Germany) – €2,100 m: o Manufacture of 30 VHS “Avril” trains and o Contract for up to 100 Talgo 230 trains. maintenance for a
Slide 14: Backlog breakdown – Maintenance activity
Backlog breakdown – Maintenance activity Backlog FY-2023 (€m) Location of maintenance contracts €4.2 bn Maintenance ▪ Installed base stable during FY-2024 with successful delivery services and recurrent revenue contribution. ▪ Stable maintenance backlog with significant upside driven by the existing
Slide 15: Backlog breakdown – Maintenance Equipment and other
Backlog breakdown – Maintenance Equipment and other Backlog FY-2023 (€m) €4.2 bn Maintenance Equipment and other Overhaul and refurbishment projects in Spain Overhaul and refurbishment projects in USA ▪ Conversion of night trains – €107m: ▪ Metrolink remodeling – $35 m: o Conversion of Talgo S7 comp
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) 652.0 181.8 181.7 161.9 469.1 134.5 126.7 118.3 116.9 99.4 FY-2022 FY-2023 Q1-22 Q2-22 Q3-22 Q4-22 Q1-23 Q2-23 Q3-23 Q4-23 Revenues by business line (Average 2021-2023) ▪ Revenues increased in FY-2023 to reach €652 m in 2023 (+39% vs.
Slide 18: Profit and Loss – EBITDA and Net Income
Profit and Loss – EBITDA and Net Income EBITDA (€m) and margin (%) Net Income (€m) 90 80 76.5 70 60 50 49.3 12.2 40 30 10.5% 11.7% 20 1.4 10 0 FY-2022 FY-2023 FY-2022 FY-2023 EBITDA EBITDA margin ▪ EBITDA margins also registered a significant growth in the period, to reach €76.5 m in 2023 (+55% vs 2
Slide 19: Balance Sheet – Working Capital
Balance Sheet – Working Capital ▪ Working Capital increased in FY-2023 to reach €384.9 m, reflecting current cycle (in manufacturing phase with limited advances), however such unevenness correspond to the normal business profile. Thus, current increasing revenue recognition driven by manufacturing p
Slide 20: Balance Sheet – Operating Cash Flow
Balance Sheet – Operating Cash Flow ▪ Higher working capital requirements resulted on cash flow consumption in the period and offset the EBITDA generated delivering negative operating cash flow. ▪ However, cash flow profile is expected to stabilise as both, revenues and industrial activity gets to r
Slide 21: Balance Sheet – Net Financial Debt
Balance Sheet – Net Financial Debt Net Financial Debt (€m)1 Financial debt2 – Repayment schedule (€m) NFD / LTM 1.9x 2.9x aEBTIDA 133 240.6 101 5 59 59 97.7 59 41 37 FY-2022 FY-2023 2024 2025 2026 2027 >2028 Loans Credit lines Def. interests ▪ Net financial debt increased in 2023 up to €241 m due to
Slide 22: Table of contents
1. Executive summary 2. Other materials Table of I. Business performance contents II. Financial results ANNEX
Slide 23: Annex 1 – P&L
Annex 1 – P&L Profit & Loss Account (€m) FY2023 FY2022 % Change Total net turnover 652.0 469.1 39.0% Other income 24.5 15.3 59.8% Procurement costs (317.1) (211.0) 50.3% Employee welfare expenses (184.6) (150.7) 22.5% Other operating expenses (98.3) (73.4) 33.9% EBITDA 76.5 49.3 55.1% % Ebitda margi
Slide 24: Annex 2 – Balance Sheet
Annex 2 – Balance Sheet Balance Sheet (€m) Dec 2023 Dec 2022 Dec 2021 Fixed Assets 276.1 265.9 262.9 Tangible + intangible assets 138.8 129.4 122.0 Goodwill 112.4 112.4 112.4 Other long term assets 24.9 24.0 28.5 Current Liabilities 839.7 868.9 768.6 Inventories 191.7 189.5 133.2 Accounts receivable
Slide 25: Annex 3 – Balance Sheet: NFD and WC breakdown
Annex 3 – Balance Sheet: NFD and WC breakdown Financial debt (€m) Dec 2023 Dec 2022 Dec 2021 Long term financial liabilities 292.2 232.3 248.1 Short term financial liabilities 101.0 99.1 36.0 Financial leasings 3.2 5.4 4.7 Cash & cash equivalents (155.8) (239.4) (253.0) Net financial debt 240.6 97.4
Slide 26: Annex 4 – Cash Flow Statement
Annex 4 – Cash Flow Statement Cash flow statement (€m) FY2023 FY2022 % Change Operating cashflows after changes in WC (81.9) (12.3) n.a. Net interest expenses (20.0) (9.3) 116% Income tax paid (13.8) (3.7) 277% Net cash flows from operating activities (115.7) (25.2) 359% Capex & Investments (18.6) (
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