Talgo Sa · BME:TLGO

Talgo Sa — FY2024 Earnings Presentation

26 slides from Talgo Sa's earnings presentation, Feb 28, 2025

  1. Slide 1: Results Presentation FY-2024

    Results Presentation FY-2024 28 February 2025

  2. 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

  3. Slide 3: Table of contents

    1. Executive summary 2. Other materials Table of I. Business performance contents II. Financial results ANNEX

  4. Slide 4: Executive Summary – Key Highlights

    Executive Summary – Key Highlights ▪ Sustainability remains a fundamental pillar, with a plan currently being designed to address carbon emissions reduction by 2030. FY-2024 ▪ Robust manufacturing activity, excelling in projects both nationally Accident freq. 10.191 Business and internationally, par

  5. Slide 5: Business performance (I/II)

    Business performance (I/II) ▪ Recent achievements ensure industrial visibility and economic stability with indexation clauses mitigating inflation risks. o Highest ever revenues recognized in FY2024. o Selective Projects: Focus on projects with indexation clauses and positive cash flow profiles ▪ Ma

  6. Slide 6: Business performance (II/II)

    Business performance (II/II) ▪ Order backlog amounts reaching €4.2 bn as of December 2024: o Around 50% of this backlog is attributed to manufacturing projects, primarily involving passenger coaches utilizing the cutting-edge Talgo 230 platform, specifically designed for long-distance markets. o Abo

  7. Slide 7: Main financial figures – P&L

    Main financial figures – P&L Revenues (€m) EBITDA (€m) and margin (%) 130 11.7% 110 10.5% 652.0 669.2 90 76.5 116,6 69.9 70 50 30 10 (46.7) -10 -30 -50 FY-2023 FY-2024 FY-2023 FY-2024 Renfe FY-2024. penalties ex-penalties EBITDA EBITDA margin ▪ Revenues amounted €669.2 m in FY-2024 enhanced by a str

  8. Slide 8: Main financial figures – Balance sheet

    Main financial figures – Balance sheet ▪ Working Capital increased in the period driven by strong manufacturing activity while collection milestones remains ahead. FY-2024 FY-2023 ▪ Accounts receivable balance mainly corresponds to Work In €512 m €385 m Working Capital Progress which represented the

  9. Slide 9: FY-2024 outlook review and targets for FY-2025

    FY-2024 outlook review and targets for FY-2025 Targets FY-2024 Performance FY-2024 Outlook FY-2025 Profitability ✓ EBITDA: c. 11.5%  Negative EBITDA c. 11% EBITDA (10.5% EBITDA ex-penalties) Partial recovery driven by ✓ Working Capital: Increase3  WC increase in the period new project downpayments

  10. Slide 10: Table of contents

    1. Executive summary 2. Other materials Table of I. Business performance contents II. Financial results ANNEX

  11. Slide 11: Commercial activity

    Commercial activity Order intake (€m) Talgo pipeline – Main target for 2025-20261 2,127 Europe: €7.8 bn Asia: 1,134 €1.5 bn MENA: €1.9 bn 519 619 387 59 FY-2019 FY-2020 FY-2021 FY-2022 FY-2023 FY-2024 ▪ Talgo's order intake amounted to €619 m in FY-2024, mainly comprising: o Manufacturing projects a

  12. Slide 12: Backlog overview

    Backlog overview Backlog FY-2024 Rolling Stock: 4,223 4,173 €4.0 bn (97%) Manufacturing 3,184 3,249 Maintenance 2,748 €4.2 bn Maintenance Equipment and other: €0.2 bn (3%) FY-2020 FY-2021 FY-2022 FY-2023 FY-2024 ▪ Talgo’s backlog amounted €4.2 bn as of December 2024: o Backlog is well balanced betwe

  13. Slide 13: Backlog breakdown – Manufacturing projects

    Backlog breakdown – Manufacturing projects Backlog FY-2024 Manufacturing €4.2 bn High Speed Long distance (intercity) ▪ Renfe VHS trains (Spain) – c. €900 m: ▪ DB Talgo 230 km/h (Germany) – c. €2,100 m: o Manufacture of 30 VHS “Avril” trains and o Contract for up to 100 Talgo 230 trains. maintenance

  14. Slide 14: Backlog breakdown – Maintenance activity

    Backlog breakdown – Maintenance activity Backlog FY-2024 Location of maintenance contracts €4.2 bn Maintenance ▪ During 2024, new Renfe VHS Avril trains (27 of the 30 trains comprising the fleet) started commercial activity, demonstrating significant performance improvement during the first months o

  15. Slide 15: Backlog breakdown – Maintenance Equipment and other

    Backlog breakdown – Maintenance Equipment and other Backlog FY-2024 €4.2 bn Maintenance Equipment and other Overhaul and refurbishment projects in Spain Overhaul and refurbishment projects in USA ▪ Conversion of night trains – c. €107 m: ▪ Metrolink remodeling – c. $75 m: o Conversion of Talgo S7 co

  16. Slide 16: Table of contents

    1. Executive summary 2. Other materials Table of I. Business performance contents II. Financial results ANNEX

  17. Slide 17: Profit and Loss – Revenues

    Profit and Loss – Revenues Revenues (€m) Quarterly revenues (€m) 669.2 181.8 181.7 179.6 171.5 652.0 166.5 161.9 151.6 126.7 FY-2023 FY-2024 Q1-23 Q2-23 Q3-23 Q4-23 Q1-24 Q2-24 Q3-24 Q4-24 Revenues by business line1 ▪ Revenues increased in FY-2024 to reach €669 m, 2% Maint Equipment and other reflec

  18. Slide 18: Profit and Loss – EBITDA and Net Income

    Profit and Loss – EBITDA and Net Income EBITDA (€m) and margin (%) Net Income (€m) 130 11.7% 10.5% 20 12.2 116.6 8.8 110 (107.9) 0 90 76.5 116.6 69.9 70 -20 50 -40 30 -60 10 (46.7) -80 -10 -100 -30 -50 -120 FY-2023 FY-2024 Renfe FY-2024. FY-2023 FY-2024 Renfe FY-2024. penalties ex-penalties penaltie

  19. Slide 19: Balance Sheet – Working Capital

    Balance Sheet – Working Capital ▪ Working Capital increased in FY-2024 to reach €511.9 m. The current strong revenue recognition, mainly driven by manufacturing projects in assembly phases, temporarily increases working capital intensity. ▪ Working Capital variations reflect normal industrial phases

  20. Slide 20: Balance Sheet – Net Financial Debt

    Balance Sheet – Net Financial Debt Net Financial Debt (€m)1 Financial debt2 – Repayment schedule (€m) NFD / LTM 3.1x n.a. EBTIDA 141 146 403.9 6 118 240.6 86 55 32 49 2025 2026 2027 2027 >2029 FY-2023 FY-2024 Loans Commercial paper Deferred exp. ▪ Net Financial Debt increased in FY-2024 to reach €40

  21. Slide 21: Table of contents

    1. Executive summary 2. Other materials Table of I. Business performance contents II. Financial results ANNEX

  22. Slide 22: Annex – P&L

    Annex 1 – P&L Profit & Loss Account (€m) FY2024 FY2023 % Change Total net turnover 669.2 652.0 2.6% Other income 18.6 24.5 (24.0%) Procurement costs (335.4) (317.1) 5.8% Employee welfare expenses (199.4) (184.6) 8.0% Other operating expenses (199.7) (98.3) 103.2% EBITDA (46.7) 76.5 (161.1%) % Ebitda

  23. Slide 23: Annex – Balance Sheet

    Annex 2 – Balance Sheet Balance Sheet (€m) Dec 2024 Dec 2023 Fixed Assets 305.6 276.1 Tangible + intangible assets 169.5 138.8 Goodwill 112.4 112.4 Other long term assets 23.7 24.9 Current Liabilities 961.4 839.7 Inventories 220.0 191.7 Accounts receivable 627.3 470.6 Other current assets 20.8 21.7

  24. Slide 24: Annex – Balance Sheet: NFD and WC breakdown

    Annex 3 – Balance Sheet: NFD and WC breakdown Financial debt (€m) Dec 2024 Dec 2023 Long term financial liabilities 350.4 292.2 Short term financial liabilities 139.4 101.0 Financial leasings 7.3 3.2 Cash & cash equivalents (93.3) (155.8) Net financial debt 403.9 240.6 EBITDA LTM (46.7) 76.5 Net fin

  25. Slide 25: Annex – Cash Flow Statement

    Annex 4 – Cash Flow Statement Cash flow statement (€m) FY2024 FY2023 % Change Cash flow from operating activites (73.1) (81.9) (11%) Income tax paid (1.5) (13.8) (89%) Capex and other investments (48.6) (18.6) 161% Operating Cash Flow (123.2) (114.3) 8% Changes in financial assets and liablities 98.

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Talgo — FY2024 Earnings Presentation on 6ix