38 slides from Construcciones Y Auxiliar De Ferrocarriles's earnings presentation, Feb 24, 2023
Slide 1: FY2022 Results
www.caf.net FY2022 RESULTS 24 February, 2023
Slide 2: Legal Notice
LEGAL NOTICE THIS DOCUMENT HAS BEEN PREPARED FOR INFORMATION PURPOSES ONLY The information contained in this document has not Therefore, under no circumstances should it be Any decision made by third parties as a result of been verified by independent third parties; construed as advice or recommenda
Slide 3: Contents
CONTENTS 1. 2022 HIGHLIGHTS 2. FINANCIAL INFORMATION 3. STOCK MARKET INFORMATION 4. SUSTAINABILITY/ESG 5. OUTLOOK 6. APPENDICES 3
Slide 4: 2022 Highlights
/1 2022 HIGHLIGHTS 4
Slide 5: We are expecting the onset of the recovery of both Solaris and the Group
1. 2022 Highlights / 1.1 Main Figures ORDER INTAKE BACKLOG REVENUE Historic level of order intake and backlog. €6,205M €13,250M €3,165M Btb=2. +64% +37% +8% vs FY21 vs FY21 vs FY21 Relevant growth in revenue, outperforming EBITDA Mg EBIT Mg the market 7.3% 4.4% -1.2p.p. Results affected by the macro
Slide 6: CAF continues to strengthen its value proposition in 2022
1. 2022 Highlights / 1.1 Main Highlights / 1.2 Milestones Reached CAF CONTINUES TO STRENGTHEN ITS VALUE PROPOSITION IN 2022… / COMMERCIAL / AWARD OF THE TEL AVIV / EUROPEAN LEADERSHIP IN / ACQUISITION OF / 2026 STRATEGIC SUCCESS IN KEY LIGHT RAIL PURPLE LINE HYDROGEN BUSES RELEVANT ASSETS PLAN GEOGR
Slide 7: Market dynamism allows CAF to exceed annual order intake of €6bn
1. 2022 Highlights / 1.1 Main Highlights / 1.2 Milestones Reached / 1.3 Order Intake THE MARKET’S DYNAMISM ALLOWS CAF TO EXCEED AN ANNUAL ORDER INTAKE OF €6bn, ALMOST TWICE ITS REVENUE / TOTAL (€M) / ORDER INTAKE DISTRIBUTION BY ACTIVITY LINE (%) Annual order intake record 2,368 Integrated Solutions
Slide 8: We have secured extremely important contracts during the year
1. 2022 Highlights / 1.1 Main Highlights / 1.2 Milestones Reached / 1.3 Order Intake WE HAVE SECURED EXTREMELY IMPORTANT CONTRACTS DURING THE YEAR / PURPLE-LINE (ISRAEL) / BOSTON LRV (USA) / NS DOUBLE DECKER (THE NETHERLANDS) • Turnkey light rail project in Tel Aviv (Israel) • 102 LRVs • 60 units (3
Slide 9: The order backlog grows by more than 30%
1. 2022 Highlights / 1.1 Main Highlights / 1.2 Milestones Reached / 1.3 Order Intake / 1.4 Backlog THE ORDER BACKLOG GROWS BY MORE THAN 30% AND IMPROVES BOTH THE VISIBILITY AND THE SUSTAINABILITY OF CAF'S FUTURE BUSINESS / TOTAL (€M) Railway Business Bus Business % Increase 570 3,165 13,250 +37% / B
Slide 10: Broad diversification of the backlog
1. 2022 Highlights / 1.1 Main Highlights / 1.2 Milestones Reached / 1.3 Order Intake / 1.4 Backlog BROAD DIVERSIFICATION OF THE BACKLOG / BACKLOG DISTRIBUTION BY ACTIVITY LINE (%) / BACKLOG DISTRIBUTION BY GEOGRAPHY (%) Integrated Solutions and Systems Rest of the Spain world APAC 12% 10% 13% 8% Ser
Slide 11: Financial Information
/2 FINANCIAL INFORMATION 11
Slide 12: CAF surpasses €3bn revenues for the first time in its history
2. Financial Information / 2.1 Consolidated Statement of Profit or Loss CAF SURPASSES €3bn REVENUES FOR THE FIRST TIME IN ITS HISTORY, STILL AFFECTED BY THE CURRENT MACRO ENVIRONMENT (Millions of euros) 2021 2022 Var. 2022/2021 Business growth largely driven by a strong REVENUE 2,943 3,165 +8% backl
Slide 13: Rising costs and supply chain instability have affected the Group's profitability
2. Financial Information / 2.1 Consolidated Statement of Profit or Loss RISING COSTS AND SUPPLY CHAIN INSTABILITY HAVE AFFECTED AND LIMITED THE GROUP'S ACTIVITY AND PROFITABILITY IN 2022 THE RUSSIA-UKRAINE WAR WORSENS THE GLOBAL SITUATION STRATEGY / MITIGATION PLAN / INFLATION REDUCE THE IMPACT SELE
Slide 14: Sales growth above sectoral forecasts in the railway sector
2. Financial Information / 2.1 Consolidated Statement of Profit or Loss SALES GROWTH ABOVE SECTORAL FORECASTS1 IN THE RAILWAY SECTOR REVENUE / CONSOLIDATED / RAILWAY / BUSES +8% +11% -3% >10%4 2 3,165 2 2,943 2,469 2,222 2,191 1,697 1,530 Stable and ongoing 1,196 >8004 growth throughout the year 578
Slide 15: Integrated projects drive the rail sector forward
2. Financial Information / 2.1 Consolidated Statement of Profit or Loss INTEGRATED PROJECTS DRIVE THE RAIL SECTOR FORWARD RAILWAY SALES / ROLLING STOCK / SERVICES / INTEGRATED SOLUTIONS AND SYSTEMS +9% -5% +44% 1 1,287 1,401 571 543 525 364 2021 2022 2021 2022 2021 2022 On total revenue 44% 44% On t
Slide 16: Solaris has delivered 1,492 buses in the year
2. Financial Information / 2.1 Consolidated Statement of Profit or Loss SOLARIS HAS DELIVERED 1,492 BUSES IN THE YEAR DESPITE THE MATERIAL EFFECT OF THE SUPPLY CHAIN CRISIS ON BUSINESS PERFORMANCE BUS SALES / No. OF BUSES DELIVERED / BUSES MIX DELIVERED 2021 2022 1,492 Most buses are affected by the
Slide 17: Solaris is still the historical leader in zero-emission buses
2. Financial Information / 2.1 Consolidated Statement of Profit or Loss SOLARIS IS STILL THE HISTORICAL LEADER IN THE SUPPLY OF ZERO-EMISSION BUSES BUS SALES / EUROPEAN MARKET FOR ZERO EMISSION (ELECTRIC AND HYDROGEN) / BUSES MIX IN SOLARIS’ BACKLOG URBAN BUSES1 > 52% % OF ELECTRIC 2022 2012-2022 BU
Slide 18: Improved consolidated operating profit in the second half
2. Financial Information / 2.1 Consolidated Statement of Profit or Loss IMPROVED CONSOLIDATED OPERATING PROFIT IN THE SECOND HALF, HIGHER THAN THE BASE FIGURE REPORTED IN 1H22 / EBITDA (€M) and EBITDA Margin (%) / EBIT (€M) and EBIT Margin (%) 255 8.7% 232 7.3% 62 8.6% 20 2.8% 165 5.6% 124 7.6% 139
Slide 19: Positive cash flow
2. Financial Information / 2.1 Consolidated Statement of Profit or Loss / 2.2 Cash flow POSITIVE CASH FLOW / EBITDA-CASH FLOW BRIDGE (€M) 19
Slide 20: The balance sheet is under control
2. Financial Information / 2.1 Consolidated Statement of Profit or Loss / 2.2 Cash flow / 2.3 Consolidated balance sheet THE BALANCE SHEET IS UNDER CONTROL (Millions of euros) 2021 2022 / CAPEX (TANGIBLE + INTANGIBLE) (€M) Fixed assets1 1,200 1,424 Working capital1 (4) (195) 72 46 Net Assets 1,196 1
Slide 21: Stability of the Group's financial position
2. Financial Information / 2.1 Consolidated Statement of Profit or Loss / 2.2 Cash flow / 2.3 Consolidated Balance Sheet / 2.4 Financial Position STABILITY OF THE GROUP’S FINANCIAL POSITION IN A COMPLEX MACRO ENVIRONMENT (DFN/EBITDA RATIO=1.2x) / NET FINANCIAL DEBT (€M) / LIQUIDITY (€M) 1000 2 800 1
Slide 22: Financial position enables commitments with shareholders
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 GROUP'S FINANCIAL POSITION ENABLES TO KEEP COMMITMENTS WITH SHAREHOLDERS / EARNINGS PER SHARE-EPS (€) / DIVIDEND PER SH
Slide 23: Stock Market Information
/3 STOCK MARKET INFORMATION 23
Slide 24: 90% of analysts recommend buying/overweighting CAF shares
3. Stock market information 90% OF ANALYSTS RECOMMEND BUYING/OVERWEIGHTING CAF SHARES WITH A POTENTIAL OF c.30%1 / CAF PERFORMANCE vs IBEX AND SECTOR2 / STOCK MARKET INFORMATION / SHAREHOLDING STRUCTURE 110 100 Cartera 2022 Social IBEX 35 90 IBEX Medium Market capitalization (EUR) 907,531,200 24.04%
Slide 25: Sustainability/ESG
/4 SUSTAINABILITY/ESG 25
Slide 26: Well-positioned to lead energy transition and deliver on the ESG equity story
4. Sustainability/ESG WELL-POSITIONED TO LEAD ENERGY TRANSITION AND DELIVER ON THE ESG EQUITY STORY1 / REDUCTION OF EMISSIONS / EUROPEAN TAXONOMY / ESG RATING AGENCIES (baseline year 2019) (turnover) Scopes 1&2 Scope 3 Eligibility Alignment 75 A 65 A- 61 69 B 65 97% 76% 51 B- Mean for “Transport -15
Slide 27: Outlook
/5 OUTLOOK 27
Slide 28: Tailwind for zero emissions rail and bus mobility
5. Outlook TAILWIND FOR ZERO EMISSIONS RAIL AND BUS MOBILITY, CAF's CORE ACTIVITIES RAILWAYS ARE THE MOST ENVIRONMENTALLY FRIENDLY MEANS OF TRANSPORT AND THE CORNERSTONE FOR THE TRANSPORT OF THE FUTURE / CAF’S VALUE PROPOSITION INCREASING AND CONTINUED PUBLIC INVESTMENT IN RAIL TRANSPORT COMPLETE RA
Slide 29: CAF aims to gradually recover profitability in 2023
5. Outlook CAF AIMS TO GRADUALLY RECOVER PROFITABILITY IN 2023 This forecast is based on: • THE CONTINUATION OF THE CURRENT COMPONENT SUPPLY SITUATION THROUGHOUT THE YEAR • STRONG RECOVERY FOR SOLARIS IN THE SECOND HALF OF THE YEAR AFTER A FIRST HALF STILL AFFECTED BY THE EXECUTION OF A BACKLOG WITH
Slide 30: Appendices
/6 APPENDICES 30
Slide 31: We will grow as a provider of integrated rail and bus mobility solutions
6. Appendices / 6.1. 2026 Strategic Plan WE WILL GROW AS A PROVIDER OF INTEGRATED RAIL AND BUS MOBILITY SOLUTIONS, MAXIMISING OUR DIGITAL PROPOSITION / We will grow above market levels / We have considered a baseline case for corporate transactions with an investment of approximately €550M / We will
Slide 32: Strengthening positioning and capacity in two of the world's largest rail markets
6. Appendices / 6.1. 2026 Strategic Plan / 6.2. Acquisition of important assets from Alstom STRENGTHENING OF BOTH POSITIONING AND CAPACITY IN TWO OF THE WORLD’S LARGEST RAIL MARKETS Acquisitiion perimeter Acquisition concluded on 1 August 2022 REICHSHOFFEN BERLIN / MAIN TRANSACTION DETAILS SALES BAC
Slide 33: Breakdown of order intake
6. Appendices / 6.1. 2026 Strategic Plan / 6.2. Acquisition of important assets from Alstom / 6.3 Breakdown of order intake 33
Slide 34: Net financial debt bridge
6. Appendices / 6.1. 2026 Strategic Plan / 6.2. Acquisition of important assets from Alstom / 6.3 Breakdown of order intake / 6.4 Additional Financial Information NET FINANCIAL DEBT BRIDGE (in millions of euros) 34
Slide 35: Net equity bridge
6. Appendices / 6.1. 2026 Strategic Plan / 6.2. Acquisition of important assets from Alstom / 6.3 Breakdown of order intake / 6.4 Additional Financial Information NET EQUITY BRIDGE (in millions of euros) 1 1 Supplementary dividend of €0.60/share paid in July 2022. 35
Slide 36: Environmental and social KPIs
6. Appendices / 6.1. 2026 Strategic Plan / 6.2. Acquisition of important assets from Alstom / 6.3 Breakdown of order intake / 6.4 Additional Financial Information / 6.5 ESG Equity Story dashboard Actual Target ENVIRONMENTAL KPIs Unit FY21 FY22 FY22 CO2 emission intensity Kg Co2 eq./ HHT 2.2 1.59 ● <
Slide 37: Alternative Performance Measures (APMs)
ALTERNATIVE PERFORMANCE MEASURES (APMs) In addition to the financial information prepared according to the International Financial Reporting Standards (IFRS), for business management purposes, the CAF Group consistently and repeatedly uses certain Alternative Performance Measures (APMs) that include
Slide 38: Trust in motion
TRUST IN MOTION