Vossloh Aktiengesellschaft · XETR:VOS
Vossloh Aktiengesellschaft — Vossloh — FY2009 Earnings Presentation
22 slides from Vossloh Aktiengesellschaft's earnings presentation, Mar 25, 2010
Slide 1: Financial information 2009
Financial information 2009 March 25, 2010
Slide 2: Disclaimer
Disclaimer NB: The presentation contains forward-looking statements that are based on current estimates and assumptions made by the management of Vossloh to the best of its knowledge. Such forward-looking statements are subject to risks and uncertainties, the non-occurrence or occurrence of which co
Slide 3: Vossloh Group, fiscal 2009: EBIT at prior-year record, margin improved
Vossloh Group, fiscal 2009 EBIT at prior-year record, margin improved ► Sales 2009 marginally inching down ► EBIT stable thanks to lower cost of sales, EBIT margin edging up ► Group earnings and earnings per share slightly higher than announced 2008 2009 ∆ in % Sales € mill. 1,212.7 1,173.7 -3.2 EBI
Slide 4: Solid financial indicators
Vossloh Group, fiscal 2009 Solid financial indicators ► Annual average working capital up mainly after inventory buildup; Q4 down by around €17 million from the preceding 9-month period 2009 ► Capital employed hiked up year-on-year by working capital and higher tangible assets ► Net financial debt a
Slide 5: Cash flow
Vossloh Group, fiscal 2009 Cash flow Cash flow analysis (in € mill.) 2008 2009 ► Gross cash flow downscaled by 15.7% to €183.8 mill.—in 2009 EBIT 137.7 137.9 no result of discontinued Result of discontinued operations 46.8 0.0 operations Amortization/depreciation/write-down of noncurrent assets (net
Slide 6: Rail Infrastructure, fiscal 2009: Strong earnings, high profitability
Rail Infrastructure, fiscal 2009 Strong earnings, high profitability ► Sales in 2009 slightly down ► EBIT with strong gain; EBIT margin improved over high 2008 level ► Fastening Systems sales up 4.8% to €267.1 million ► Switch Systems sales at €424.9 million (down 6.3%) ► Closing working capital inf
Slide 7: Motive Power&Components, fiscal 2009
Motive Power&Components, fiscal 2009 Electrical Systems with a clear rise in sales, Locomotives business weak ► Sales down from 2008 magnitude ► EBIT and EBIT margin diminished ► Locomotives sales shrinking 10.4% to €336.2 million; Vossloh España’s sales: €215.3 million (down 0.9%); Kiel’s: €121.7 m
Slide 8: Capital expenditures and depreciation/amortization
Vossloh Group, fiscal 2009 Capital expenditures and depreciation/amortization Capex Depreciation/amortization € mill. ► At €41.9 million, the Vossloh Group’s capex high but 50 41.9 below budget due to the postponement of various projects 0.9 40 32.8 ► Rail Infrastructure: Fastening Systems’ Turkish
Slide 9: Vossloh stock
Vossloh stock Prices between January 1, 2008, and February 26, 2010: After underperforming in 2009, now again outshining the market ► Performance 2009 and 2008: DAX: +23.9% (2009); –40.4% (2008) MDAX: +34.0% (2009); –43.2% (2008) € Vossloh: –12.5% (2009); –0.8% (2008) ► Period highs/lows: 1/01/09–2/
Slide 10: Sales by region
Vossloh Group, fiscal 2009 Sales by region ► Sales in Europe slightly down year-on-year in general, but up mainly in France € mill. Worldwide sales trend 1400 and Northern Europe 1,213 17 1,174 29 1200 30 22 ► Sales shares outside Europe lower, down from 28.2 % to 27.1%, mainly due to 1000 136 91 15
Slide 11: Order backlog
Vossloh Group, fiscal 2009 Order backlog Order backlog 2004–2009 ► The Vossloh Group’s order backlog Rail Infrastructure down 3.0% € mill. Motive Power&Components ► Fastening Systems benefiting from 1400 megacontract from China 1,270 ► Switch Systems down due to sluggish 1200 1,136 1,126 1,092 order
Slide 12: Order backlog and order intake
Vossloh Group, fiscal 2009 Order backlog and order intake Order intake: Fastening Systems: €349.0 mill. (+82.7%); €25.2 mill. in Q4 Locomotives: €253.0 mill. (-30.4%); €23.4 mill. in Q4 Switch Systems: €405.7 mill. (-17.8%); €119.8 mill. in Q4 Electrical Systems: €134.4 mill. (-12.5%); €58.6 mill. i
Slide 13: Vossloh: new business unit Vossloh Rail Services
Vossloh: new business unit Vossloh Rail Services ► Sales in 2009 around €80 million; in 2010, profit contribution from new business unit expected ► Customers: rail producers and DB (German Rail); most of the market in Germany ► Main source of sales: rail logistics and rail welding (stationary and mo
Slide 14: Vossloh Rail Services: key capabilities
Vossloh: new business unit Vossloh Rail Services: key capabilities Bützow Hamburg LWR production, e.g., for Rail logistics, e.g., Leipzig Deutsche Bahn and for private customers Nürnberg Banedanmark and Deutsche Bahn we care for rails Maintenance, e.g., Rail installation, e.g. HSG and milling for mo
Slide 15: Hybrid buses entering the market
Vossloh Group Hybrid buses entering the market Hybrid buses have lower CO2 emissions and life-cycle costs ► Growing political and societal pressure to reduce CO2 emissions especially in Western Europe and North America ► Political support through stimulus packages ► Transport authorities now priorit
Slide 16: Update: China
Vossloh Group Update: China Rail network at the focus of economic programs Planned lines ► By 2020, the Chinese rail network will be modernized, electrified and expanded from 80,000 km in 2008 to 120,000 km ► Expansion plans include high-speed lines totaling around 20,000 km ► Additionally, in 14 ci
Slide 17: Update: USA
Vossloh Group Update: USA Focus on cargo haulage/high-speed vision ► Decline in carloads (down 20%) at Class I Railroads from 2008 to 2009 ► Short-term market opportunities thanks to foreseeable demand for modernization and higher speed ► Growth potential also for local public transit/transport proj
Slide 18: Update: Middle East and North Africa
Vossloh Group Update: Middle East and North Africa Middle Eastern and Mediterranean nations expand rail networks ► In all countries, rail systems largely outdated and insufficient ► Growth areas: local and long-distance passenger, cargo transport ► Between 2010 and 2015 in North Africa new corridors
Slide 19: 2010-2011p: Organic and M&A-related growth
Vossloh Group, 2010–2011p Organic and M&A-related growth ► Clear sales increase in 2010; rise in fiscal 2011 at least equal to rail industry’s ► EBIT climbing, but at a more moderate rate than sales growth ► EBIT margin staying over 11% despite earnings drain due to acquisition price allocation ► RO
Slide 20: 2010-2011p: Financial indicators stay sound
Vossloh Group, 2010–2011p Financial indicators stay sound ► Working capital intensity falling below 20% ► Stepped-up capex until 2011, then fading to under 3% of sales ► Capital employed rising through capex drive and M&A ► Net financial debt remaining moderate despite M&A; will then decline in 2011
Slide 21: 2010-2011p: Sound prospects
Vossloh Group, 2010–2011p Sound prospects ► Vossloh’s organic growth to match or surpass the rates of the relevant product markets of each business unit; M&A to supplement organic growth ► Growth regions: Asia, Eastern Europe, MENA nations, and North America ► The capex program launched in 2009 fore
Slide 22: Financial diary and contacts
Financial diary and contacts Financial diary 2010 ► April 28, 2010 Interim report on Q1/20101 ► May 19, 2010 Annual general meeting ► July 28, 2010 Interim report on H1/20101 ► October 27, 2010 Interim report on 9 months 20101 ► December 2, 2010 Investors and analysts conference1 Contacts ► Werner A