Stadler Rail Ag · SIX:SRAIL
Stadler Rail — H1 2022 Earnings Presentation
33 slides from Stadler Rail's earnings presentation, Aug 31, 2022
Slide 1: Half-Year 2022 Results
HALF-YEAR 2022 RESULTS STADLER RAIL Peter Spuhler, Executive Chairman and Group CEO a. i., Raphael Widmer, Group CFO 31 August 2022
Slide 2: Representing Stadler Today
REPRESENTING STADLER TODAY Peter Spuhler Raphael Widmer Executive Chairman and Group CEO a. i. Group CFO Stadler half-year results 2022 | © Stadler | 31 August 2022 2
Slide 3: Agenda
AGENDA 1 Peter Spuhler, Executive Chairman Highlights half-year 2022 and Group CEO a. i. 2 Half-year 2022 financial results Raphael Widmer, Group CFO 3 Peter Spuhler, Executive Chairman Summary and outlook and Group CEO a. i. 4 Q&A Stadler half-year results 2022 | © Stadler | 31 August 2022 3
Slide 4: Succession of the Group CEO
SUCCESSION OF THE GROUP CEO MARKUS BERNSTEINER NEW GROUP CEO AS OF 1.1.2023 – Current Deputy Group CEO and Executive Vice President Division Switzerland, CEO of manufacturing sites in Bussnang and St. Margrethen – With Stadler since 1999 – Has successfully held numerous management positions – Manage
Slide 5: Highlights Half-Year 2022
Neues Bild HIGHLIGHTS HALF-YEAR 2022
Slide 6: Half-Year 2022 Highlights
HALF-YEAR 2022 HIGHLIGHTS STRONG OPERATIONAL PERFORMANCE DESPITE CHALLENGING ENVIRONMENT ✓ Superior value proposition confirmed by customers with a strong order intake of CHF 6.0bn at a book-to-bill ratio of over 4x, Order intake driven by large orders for ÖBB, SBB, and VDV CHF 6.0bn +91%(1) ✓ Order
Slide 7: Innovation the Driver of Profitability
INNOVATION THE DRIVER OF PROFITABILITY Technology and Product Order intake Revenues EBIT innovation development Stadler half-year results 2022 | © Stadler | 31 August 2022 7
Slide 8: Order Intake Highlights H1 2022
ORDER INTAKE HIGHLIGHTS H1 2022 FLIRT KISS LRV − Further TINA contracts for Rostock − SBB framework contract for up to 510 FLIRT trains, initial firm call-off − 41 KISS ÖBB, framework, call-off 41 and Halle for 286 trains trains − VDV, firm call-off for 246 CITYLINK − Firm call-off valued at c. CHF
Slide 9: Market Outlook
MARKET OUTLOOK TOTAL OEM AND TARGETED MARKETS 2020 VIEW Stadler’s strategic markets Global rolling Global rolling stock stock Targeted market 1 2 segments 3 Targeted regions OEM market OEM market 2019(1) market size (€Bn) 54 35 27 2014-19(1) CAGR +1.7% +2.2% +4.7% 2019-24(1) CAGR +3.6% +4.4% +2.3% F
Slide 10: Competitive Landscape: Market Share by Region
COMPETITIVE LANDSCAPE MARKET SHARE BY REGION Home markets Opportunistic markets North America Europe CIS Stadler 2% CRRC Others 1% Others Others 14% CAF 12% Stadler Alstom 17% 4% Alstom 6% 31% Hitachi Alstom 36% Rail 2% GE 6% Siemens Siemens Transporta tion 16% 7% TMH 8% CRRC 69% Stadler 23% 22% Sie
Slide 11: Competitive Landscape: Global Market Share by Segment
COMPETITIVE LANDSCAPE GLOBAL MARKET SHARE BY SEGMENT Focus segments Multiple Units LRV Locomotives TMH Alstom Alstom Others 21% 23% Others 25% 29% Others 33% 39% Stadler Alstom Hyundai Siemens 12% Rotem 18% 9% 4% CRRC Skoda Hitachi GE 9% TMH 3% CAF Rail CRRC CRRC Stadler Transport 4% Siemens 9% Stad
Slide 12: Competitive Landscape: European Market Share by Segment
COMPETITIVE LANDSCAPE EUROPEAN MARKET SHARE BY SEGMENT Home markets Focus segments Multiple Units LRV Locomotives CAF Pesa Others 2% 2% 9% Hitachi Rail 7% Others Others 26% Alstom 24% Alstom 36% Siemens Siemens 40% 37% Pesa 10% Siemens 2% 5% Stadler Stadler Skoda CAF Stadler Alstom 30% 12% 6% 12% 15
Slide 13: Half-Year 2022 Financial Results
HALF-YEAR 2022 FINANCIAL RESULTS
Slide 14: Half-Year Results 2022 Summary I
HALF-YEAR RESULTS 2022 SUMMARY I CHFm Order intake Order backlog +91% +22% 5’974 21’728 17’871 3’122 H1-21 H1-22 31.12.2021 30.06.2022 Net revenues EBIT +4% +36% 1’418 1’472 67 49 4.5% 3.5% H1-21 H1-22 H1-21 H1-22 EBIT as % of net revenues Change year-on-year Stadler half-year results 2022 | © Stadl
Slide 15: Half-Year Results 2022 Summary II
HALF-YEAR RESULTS 2022 SUMMARY II CHFm Net cash(1) Net working capital(2) -50% -141 115 58 -351 -492 31.12.2021 30.06.2022 31.12.2021 30.06.2022 Capex(3) Free cash flow(4) +129 -15% 98 91 83 -37 (5) H1-21 H1-22 H1-21 H1-22 Change year-on-year Notes: (1) Net cash is calculated as cash and cash equiva
Slide 16: Order Intake
ORDER INTAKE CHFm +91.4% 5’974 16 0% 9% 1’062 +282% 3’122 278 1 Others(1) 6% +72% 90% 4’896 Western Europe 43% 2’843 DACH 51% H1-21 H1-22 H1-21 H1-22 Rolling Stock Service & Components Signalling Comments − Order intake in the Rolling Stock reporting segment amounted to CHF 4.9 billion in the first
Slide 17: Order Backlog by Reporting Segment
ORDER BACKLOG BY REPORTING SEGMENT CHFbn 21.7 0.2 +17% CAGR 17.9 4.9 16.1 0.1 15.0 4.4 13.2 2.8 4.1 11.0 2.3 9.3 2.0 0.8 16.7 12.3 12.0 13.4 10.9 8.5 9.0 31.12.2016 31.12.2017 31.12.2018 31.12.2019 31.12.2020 31.12.2021 30.06.2022 Rolling Stock Service & Components Signalling Comments − Strong order
Slide 18: Net Revenues
NET REVENUES CHFm +4% 1’418 1’473 3% 5% Others(1) 3% 1 16 2% 180 204 Americas 15% +14% Eastern Europe 25% Western Europe 22% 28% 1’238 1’253 +1% DACH 58% 40% H1-21 H1-22 H1-21 H1-22 Rolling Stock Service & Components Signalling Comments − Rolling Stock Net revenues grow by 1% year-on-year despite a
Slide 19: EBIT
EBIT CHFm +CHF 18m 250 7.9% 8% 7% 200 6.2% 6% 150 5% 4.5% 4% 3.5% 224 100 3% 175 2% 50 67 1% 49 0 0% H1-21 H2-21 FY 21 H1-22 EBIT EBIT in % of net revenues Comments − EBIT rises by 36% to CHF 66.8 million − Negative currency effects of CHF 30.0 million − Positive non-cash one-off effect in the first
Slide 20: Net Income
NET INCOME CHFm H1-21 H1-22 Change YOY Earnings before interest and taxes (EBIT) 48.9 66.8 36% Financial result (25.9) (58.7) Share of results from associates 2.6 1.2 Ordinary result 25.6 9.2 (64.0%) Non-operating result (0.3) (0.1) Profit before income taxes 25.3 9.1 (63.9%) Income taxes 1.0 (6.7)
Slide 21: Net Cash Position
NET CASH POSITION CHFm -141 Cash and cash equivalents 1’149 888 Current financial liabilities -818 -769 -351 -610 Non-current financial liabilities -682 -492 -492 -351 31.12.2021 30.06.2022 31.12.2021 30.06.2022 Comments − Decline in net cash versus the year-end largely due to dividend payments, Cap
Slide 22: Net Working Capital
NET WORKING CAPITAL Net working capital(1) (CHFm) -50% 115 58 115 Trade receivables 318 312 Comp. claims from WIP 691 620 Inventories 219 251 58 Other current assets 172 188 Work in progress (net) -461 -588 Trade payables -215 -203 Other current liabilities -609 -523 31.12.2021 30.06.2022 31.12.2021
Slide 23: Capital Expenditure
CAPITAL EXPENDITURE CHFm 288 248 57 35 188 177 14 66 231 98 213 76 83 174 24 55 11 27 8 112 65 74 48 56 2016 2017 2018 2019 2020 H1-21 2021 H1-22 Investments in tangible assets Investments in intangible assets Comments − Capacity investments driven by expansion in Germany and Spain as a result of re
Slide 24: Available Credit Facilities
AVAILABLE CREDIT FACILITIES CHFm Guarantee lines Committed cash credit lines ~8’000 >400 ~50% Undrawn Undrawn 100% ~50% Drawn Drawn 0% Comments − Overall guarantee lines of around CHF 8.0 billion, of which ~50 percent are freely available and over CHF 400 million undrawn committed cash credit lines
Slide 25: Summary and Outlook
SUMMARY AND OUTLOOK STADLER
Slide 26: Strategy 2025: Focused on Profitable Growth
STRATEGY 2025: FOCUSED ON PROFITABLE GROWTH Service & Rolling Stock Signalling Components • Selectively win • Must have ETCS • Growth in accessible Europe market share through markets and installed Win market shares and stabilize in focus markets best products and • Further advance in- base new prod
Slide 27: EBIT Margin Guidance 2022
EBIT MARGIN GUIDANCE 2022 8-9% ~1% ~1% ~1.5% ~0.5% 5-6% Guidance IPO Supply chain Inflation FX impact One-offs 2022 Guidance 2022 disruptions BBR(+) and and transport Belarus(-) Note: size of chart elements are illustrative only. Stadler half-year results 2022 | © Stadler | 31 August 2022 27
Slide 28: Financial Guidance 2022/2025
FINANCIAL GUIDANCE 2022/2025 Order intake Over CHF 7.0bn (prev.: between CHF 5.0 and 6.0 billion) Net Between CHF 3.7 and CHF 4.0 billion revenues FY 2022 EBIT-margin Below FY 2021 and over 5% (prev.: stable vs FY 2021 of 6.2%) Capex of around CHF 200 million Capex / FCF Positive free cash flow Divi
Slide 29: Thank You for Your Attention
Neues Bild THANK YOU FOR YOUR ATTENTION
Slide 30: Diversified Order Backlog
DIVERSIFIED ORDER BACKLOG As at 30.06.2022 Order backlog by region Order backlog by market segment 1% 1% 6% 4% 23% 2% 40% 30% 57% 8% 12% 10% 7% DACH Trains Western Europe Locomotives Americas Metro Eastern Europe LRV Rest of the world Tailor-made CIS Service & Components Signalling Stadler half-year
Slide 31: Reporting Segments
REPORTING SEGMENTS Rolling Stock CHFm H1-21 H1-22 Change Order intake 2’843 4’896 72% (1) Order backlog 13’402 16’673 24% Net revenues (third party) 1’238 1’253 1% Additions to fixed assets 39 35 -10% (2) Total staff as FTEs 9’346 9’157 -2% Service & Components CHFm H1-21 H1-22 Change Order intake 2
Slide 32: Information
INFORMATION Share information Investor contact Listing: SIX Swiss Exchange Daniel Strickler Currency: CHF Investor Relations Officer Ticker symbol: SRAIL Phone: +41 71 626 86 47 ISIN: CH0002178181 E-mail: ir@stadlerrail.com Listing date: 12 April 2019 Financial calendar Media contact 1 September 202
Slide 33: Disclaimer
DISCLAIMER IMPORTANT NOTICE This presentation (the "Presentation") has been prepared by Stadler Rail AG ("Stadler" and together with its subsidiaries, "we", "us" or the "Group") and includes forward-looking information and statements concerning the outlook for our business. These statements are base