Stadler Rail Ag · SIX:SRAIL
Stadler Rail — H1 2023 Earnings Presentation
36 slides from Stadler Rail's earnings presentation, Aug 30, 2023
Slide 1: Half-Year 2023 Results
HALF-YEAR 2023 RESULTS STADLER RAIL Markus Bernsteiner, Group CEO, Raphael Widmer, Group CFO 30 August 2023
Slide 2: Representing Stadler Today
REPRESENTING STADLER TODAY Markus Raphael Bernsteiner Widmer Group CEO Group CFO Stadler half-year results 2023 | © Stadler | 30 August 2023 2
Slide 3: Agenda
AGENDA Highlights Half-Year 2023 01 Markus Bernsteiner, Group CEO Half-Year 2023 financial results 02 Raphael Widmer, Group CFO Summary and outlook 03 Markus Bernsteiner, Group CEO 04 Q&A Stadler half-year results 2023 | © Stadler | 30 August 2023 3
Slide 4: Highlights Half-Year 2023
HIGHLIGHTS HALF-YEAR 2023 Markus Bernsteiner, Group CEO
Slide 5: Highlights Half-Year 2023
Order Intake HALF-YEAR 2023 CHF 4.7bn Confirming our superior value proposition HIGHLIGHTS Order Backlog CHF 25.4bn Increases by 16% versus year-end Net revenues CHF 1.3bn In line with planned deliveries and seasonality Gross margin 12.1% Driven by operational improvements and a supportive product m
Slide 6: Rolling Stock CHF 3.6bn order intake highlights
Order intake highlights Half-year 2023 ROLLING STOCK CHF 3.6bn FLIRT METRO & LRV − 17 FLIRT for Norway − 14 TRAMLINK for Milan (IT) − 15 FLIRT for Lithuania − 16 Metro Trains for Napoli (IT) TAILOR-MADE WAGGONS KISS − 537 sleeper and couchette − 35 additional KISS for Austria coaches for Kazakhstan
Slide 7: Service & Components CHF 1.1bn order intake highlights
Order intake highlights Half-year 2023 SERVICE & COMPONENTS CHF 1.1bn FULL SERVICE − Kazakhstan: 20-year full-service − UK: Full-service for 30 Class 99 locomotives − Switzerland (Ticino): Full-service for 8 Tailor-Made trains − Italy: Full-service for 13 locomotives SIGNALLING CHF 37.0m ETCS GUARDI
Slide 8: Leading Position in Green Mobility Expanded
LEADING POSITION IN GREEN MOBILITY EXPANDED USA SBCTA: 1 FLIRT H2 ASPIRE Engineering Research Center: 1 FLIRT Akku Caltrain: 1 battery-powered KISS Germany Italy NAH.SH: 55 FLIRT Akku Azienda Regionale Sarda Trasporti (ARST): Pfalznetz: 44 FLIRT Akku 6 hydrogen multiple units DB Regio: 14 FLIRT Akku
Slide 9: Global Environment
GLOBAL ENVIRONMENT Supply chains Decentralised supply chains and flexible supplier network, development of Currency development additional strategic suppliers Natural hedging wherever possible combined with financial hedging Procurement market Demand forecasting, long-term planning Inflation and clo
Slide 10: Comprehensive Portfolio for the Broader Rail Ecosystem
COMPREHENSIVE PORTFOLIO FOR THE BROADER RAIL ECOSYSTEM Market segments, vehicle families, service & systems Type Market segment Vehicle families Tailor made Service & Systems Trains Very High Speed Not a strategic focus Signalling Service System Solutions Full Service & Spare Parts High Speed Interc
Slide 11: Market Outlook
MARKET OUTLOOK Stadler’s strategic markets 1 2 Target market Global Railway Market 3 Target regions segments 2021(1) Market size (€bn) 190 144 54 32 2021-26(2) CAGR +4.3% +4.3% +5.1% +9.4% COMMENTS Infrastructure 46 – Within top-3 of multiple System OEM units OEMs globally Technology (3) 10 Railway
Slide 12: Half-Year 2023 Financial Results
HALF-YEAR 2023 FINANCIAL RESULTS Raphael Widmer, Group CFO
Slide 13: Half-Year Results 2023 Summary I
HALF-YEAR RESULTS 2023 SUMMARY I CHFm Order -22% Order +16% intake 5’974 backlog 25’430 21’984 4’664 H1-22 H1-23 31.12.2022 30.06.2023 Net -12% EBIT -29% 4.5% revenues 1’472 3.1% 3.7% 1’289 67 BBR one-off effect 21 48 45 H1-22 H1-23 H1-22 H1-23 EBIT as % of net revenues EBIT (excl. BBR) as % of net
Slide 14: Half-Year Results 2023 Summary II
HALF-YEAR RESULTS 2023 SUMMARY II CHFm Net cash1 Net working +173 capital2 -328 -58 -157 -231 -485 31.12.2022 30.06.2023 31.12.2022 30.06.2023 Capital +42 Free cash +212 expenditure3 125 flow4 303 83 91 H1-22 H1-23 H1-22 H1-23 Notes: 1 Net cash is calculated as cash and cash equivalents less current
Slide 15: Order Intake
ORDER INTAKE CHFm -22% 5’974 5’974 16 0% <1% 1’062 9% COMMENTS 4’664 4’664 − Total order intake of CHF 4.7bn in 37 H1-23, which as expected is a 8% 1’067 decline year-on-year on a very high comparison base 43% − Order intake in the Rolling Stock segment of CHF 3.6bn, 27% lower 90% year-on-year 4’896
Slide 16: Order Backlog
ORDER BACKLOG CHFbn 25.4 COMMENTS 0.2 22.0 Record order backlog of CHF 25.4bn 0.2 5.6 with a growing Service & Components +17% CAGR share providing long-term visibility 17.9 4.8 16.1 0.1 15.0 4.4 13.2 2.8 4.1 11.0 2.3 9.3 2.0 19.6 0.8 17.0 12.3 12.0 13.4 10.9 8.5 9.0 31.12.2016 31.12.2017 31.12.2018
Slide 17: Net Revenues
NET REVENUES CHFm 1’472 -12% COMMENTS 3% 15 204 1’289 5% − Overall net revenues decline 12% 26 1% 4% year-on-year, mainly driven by 215 25% 8% seasonal effects and FX translation impact of c. -3% 30% − Rolling Stock net revenues decline 16% year-on-year, FX 28% translation impact of c. -2% 1’253 − S
Slide 18: EBIT
EBIT CHFm 130 5.0% 4.5% 120 4.5% 110 4.0% COMMENTS 3.7% 100 3.5% − EBIT reaches CHF 48m, 90 3.1% including negative currency 80 3.0% effects of c. CHF 15m 67 − EBIT margin at 3.7% − Half-year 2022 EBIT included 60 21 a positive one-off effect of BBR one-off effect 2.0% 50 CHF 21.3m related to BBR 40
Slide 19: Net Income
NET INCOME CHFm H1-22 H1-23 Change YOY COMMENTS Earnings before interest and taxes (EBIT) 66.8 47.5 (28.8%) − Profit for the period significantly Financial result (58.7) (12.9) improved year-on-year Share of results from associates 1.2 1.7 − While the financial result in H1-22 Ordinary result 9.2 36
Slide 20: Net Cash Position
NET CASH POSITION CHFm +173 COMMENTS Progress payments and solid inflow of advance payments on new orders 832 899 drive a significant improvement in net -58 cash versus year-end 2022 despite high level of Capex -461 -364 -593 -601 -58 -231 -231 31.12.2022 30.06.2023 31.12.2022 30.06.2023 Cash and ca
Slide 21: Net Working Capital
NET WORKING CAPITAL CHFm -328 COMMENTS 473 410 Overall reduction of net working capital of CHF 328.0m mainly driven 623 576 by a significant decline of work in progress (net) and a lower level of -157 241 260 154 144 trade receivables and compensation claims from work in progress -808 -1’128 -240 -2
Slide 22: Long-Term Net Working Capital Evolution
LONG-TERM NET WORKING CAPITAL EVOLUTION CHFm 403 115 27 -157 -323 -443 -485 -710 2016 2017 2018 2019 2020 2021 2022 30.06.2023 Orders with substantial Consumption of advance payments as orders are Catch-up of Covid delays, progress and final advance payments at early being executed Pandemic-related
Slide 23: Capital Expenditure
CAPITAL EXPENDITURE CHFm 288 COMMENTS 248 57 − Capacity investments driven by 35 land acquisition in Switzerland (St. Margrethen) as well as 188 184 177 expansions in Germany, Spain 14 and Hungary 66 59 − Intangibles Capex mainly relate to 125 R&D in locomotives, alternative 231 29 drive systems and
Slide 24: Summary and Outlook
SUMMARY AND OUTLOOK Markus Bernsteiner, Group CEO
Slide 25: Further Strengthening Our Organization
FURTHER STRENGTHENING OUR ORGANIZATION Group-wide harmonisation of systems and tools to leverage synergies and scale effects Technology leadership Decentralized organisation Operational excellence − Continuous product innovation − Decentralized and agile organization − Efficient processes and tools
Slide 26: Strategy 2025
STRATEGY 2025 Focused on profitable growth Markets Rolling Stock Signalling Service & Europe Components Win market share and stabilize in focus markets − Selectively win market share − Must have ETCS − Growth in accessible markets through best products and − Further advance in-house and installed ba
Slide 27: 2023 Financial Guidance
Order intake 2023 FINANCIAL C. 1.5x book-to-bill GUIDANCE Net revenues Between CHF 3.7bn and CHF 4.0bn EBIT margin EBIT margin comparable to FY 2022 level Capex Capex of over CHF 200m (previously: around CHF 200m) FCF Positive free cash flow Our financial guidance is Dividend based on constant curre
Slide 28: 2025 Financial Guidance
Order intake 2025 FINANCIAL >1.5x book-to-bill on average GUIDANCE Net revenues Mid-single digit growth on average EBIT margin 7 – 8% in 2025 8 – 9% under normal market conditions Net Working Capital Long-term level of zero NWC with swings over the cycle Capex CHF 120 – 150m Our financial guidance i
Slide 29: Thank You Very Much
THANK YOU VERY MUCH
Slide 30: Diversified, High Quality Order Backlog
DIVERSIFIED, HIGH QUALITY ORDER BACKLOG Order backlog By region By market segment 3% 1% 4% 4% 22% 9% 37% 50% 10% 31% 13% 7% 9% DACH CIS Americas Trains Metro Tailor-made Signalling Western Europe Eastern Europe Rest of the world Locomotives LRV Service & Components Stadler half-year results 2023 | ©
Slide 31: Reporting Segments
REPORTING SEGMENTS CHFm H1-22 H1-23 Change Rolling Stock Order intake 4’896 3’559 -27% Order backlog1 17’048 19’596 15% Net revenues (third party) 1’253 1’048 -16% Additions to fixed assets 35 65 85% Total staff as FTEs2 9’157 9’274 1% CHFm H1-22 H1-23 Change Service & Order intake 1’062 1’067 0% Co
Slide 32: Competitive Landscape: Market Share by Region
COMPETITIVE LANDSCAPE MARKET SHARE BY REGION Home markets Opportunistic markets North America Europe CIS Others 8% Others 8% Stadler 2% Others 7% Stadler 6% Siemens 2% Skoda Talgo 2% Alstom 5% Alstom Kawasaki CAF 32% 37% Alstom 3% 13% 6% Siemens Hitachi Sinara 7% TMH 18% CRRC Rail Stadler 69% 23% 8%
Slide 33: Competitive Landscape: Global Market Share by Segment
COMPETITIVE LANDSCAPE GLOBAL MARKET SHARE BY SEGMENT Focus segments Multiple Units LRV Locomotives Stadler 2% Others Others 11% Others Alstom 11% Alstom Siemens TMH 20% 20% 19% 25% 7% Siemens Pesa 4% CLW 14% 11% Sinara ICF Skoda 4% CAF 7% 17% Alstom TMH 7% 10% DLW Stadler Ust-Katav Wabtec 14% 13% 15
Slide 34: Competitive Landscape: European Market Share by Segment
COMPETITIVE LANDSCAPE EUROPEAN MARKET SHARE BY SEGMENT Home markets Focus segments Multiple Units LRV Locomotives Others 6% Others 10% Others 6% Skoda 5% Alstom Siemes Siemens Alstom 27% 7% 39% 37% CZ Loko Siemens 7% 11% Hitachi CAF Rail 10% Stadler 13% Stadler Alstom 26% Pesa 8% 15% 15% Stadler 13%
Slide 35: Information
INFORMATION SHARE INFORMATION FINANCIAL CALENDAR 2024 Listing SIX Swiss Exchange 13 March Annual Report 2023 Currency CHF 22 May General Assembly Ticker symbol SRAIL ISIN CH0002178181 Listing date 12 April 2019 INVESTOR CONTACT MEDIA CONTACT Daniel Strickler Gerda Königstorfer Investor Relations Off
Slide 36: 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