Slide 1: Results Presentation FY2020
Results Presentation FY2020 25 February 2021
Slide 2: Contents
Contents 1. Key figures 2. Business performance 3. Financial results 4. Outlook ANNEX 1
Slide 3: A strategy defined to adapt to the context generated by COVID-19
A strategy defined with the aim of adapting to the context generated by COVID-19 ... Contribution to the fight Successful implementation of against COVID-19 with the comprehensive measures to development of solutions for the ensure employee safety and health and safety of passengers improve prod
Slide 4: Flexibility and sustainability of the business
… that demonstrates flexibility and sustainability of the business Increasing industrial activity that is consolidating an 487.0 expected cycle of revenue growth 401.7 324.4 Gradual recovery of maintenance activity during the second half of 2020 (1) (1) FY18 FY19 FY20 FY21E FY22E Revenues (€m) 1
Slide 5: Contents
Contents 1. Key figures 2. Business performance 3. Financial results 4. Outlook ANNEX 4
Slide 6: Significant opportunities in all business segments with emphasis on Europe
Significant opportunities in all business segments with an emphasis on European markets Evolution of project awards 2018 – 2020 (€m) Pipeline by geographical region 2021-2022(1) LTM2 Book- 6% 0.5x 2.8x 0.8x 6% to-bill ratio 1,134 11% Pipeline 8.1 €b 77% 387 176 Europe MENA Latam Other 2018 2019 2020
Slide 7: Diversified, high-quality backlog as basis for long-term growth
Diversified, high-quality backlog as the basis for ensuring long-term business growth and sustainability Backlog 2020 (€m) LTM times3 Revenues 8.3x 6.5x 6.8x (2) Manufacturing 3,347 (1) 1.0 €b (32%) 3,184 113 3,297 Formalised Backlog Maintenance in 2021 FY2020: 2.0 €b (63%) 3.2 €b Remodelling 0.1 €b
Slide 8: Manufacturing projects – High Speed
Manufacturing projects – High Speed Backlog 2020 (€m) Manufacturing 1.0 €b (32%) Backlog FY2020: 3.2 €b Renfe Avril VHS (Spain) UTY Uzbekistan AV (Uzbekistan) Project scope – 897 €m: Project scope – 57 €m: o Manufacture of 30 VHS “Avril” trains. o Manufacture of 2 HS Talgo 250 trains. o Maintena
Slide 9: Manufacturing projects – Long distance / Passenger coaches
Manufacturing projects – Long distance / Passenger coaches Backlog 2020 (€m) DB Talgo 230 km/h (Germany) Project scope – 550 €b (2.3 €b)1: Manufacturing o Framework contract for the manufacture of up to 1.0 €b (32%) 100 Talgo 230 trains. o Initial order for the manufacture of 23 trains. Backlog
Slide 10: Light maintenance projects
Light maintenance projects Backlog 2020 (€m) COVID-19 had a very significant impact on the maintenance activity during 2020, with a sharp decline and even the temporary suspension of commercial services in the majority of the markets in Backlog which the Group has a presence. FY2020: We expect m
Slide 11: Heavy maintenance projects and remodelling
Heavy maintenance projects and remodelling Backlog 2020 (€m) Conversion of night trains into VHS (España) Project scope – 107 €m: Remodelling o Conversion of Talgo S7 compositions “night trains”. 0.1 €b (4%) o The initial project includes 156 coaches (13 compositions) with an option for an additio
Slide 12: Contents
Contents 1. Key figures 2. Business performance 3. Financial results 4. Outlook ANNEX 11
Slide 13: Strong industrial activity and partial recovery of maintenance drove revenue growth
Strong industrial activity and the partial recovery of the maintenance business drove revenue growth during the period Cumulative revenues - YoY (€m) Quarterly revenues (€m) +21% COVID Strong Impact recovery 487.1 147.7 401.7 126.2 122.7 107.7 112.8 103.8 80.7 2019 2020 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20
Slide 14: Europe as a platform for geographic diversification
Europe as a platform for promoting geographic diversification Revenues in 2020 by geographical region (€m) NAFTA Europe(1) International activity decreased during the Rev: 17.5 €m Rev: 38.9 €m CEI & APAC period to account for 30% of the revenues 8% of total 3% of total Rev: 57.4 €m for the year, d
Slide 15: Profit & loss – EBITDA
Profit & loss – EBITDA Adjusted EBITDA (1) (€m) and margin (%) Quarterly adjusted EBITDA and Adjusted Net Profit (%) 100 Gradual recovery of the 90 80 75.2 margins pre-COVID 70 60 Impact(1) 50 18.7% of COVID 40 34.2 30 20 7.0% 10 0 (2) (2) 4Q19 1Q20 2Q20 3Q20 4Q20 FY21E FY22E 2019 2020 Adjusted EBIT
Slide 16: P&L – Net Result and shareholder remuneration (i)
P&L – Net Result and shareholder remuneration (i) Adjusted Net Result (€m) Share Buy-back Programme 2018-2020 60 16 50 Amort. 2020: Amort. 2021: 40.1 15 9.6m shares 3.5m shares 40 74 €m 13.1m shares 14 30 13 20 Impact(1) 12 10 of COVID (7.0) 11 0 Finalised May 2020 10 -10 0 €m 100 €m 2019 2020 The
Slide 17: P&L – Net Result and shareholder remuneration (ii)
P&L – Net Result and shareholder remuneration (ii) Adjusted Net Result (€m) Share Buy-back Programme 2018-2020 60 16 50 Amort. 2020: Amort. 2021: 40.1 15 9.6m shares 3.5m shares 40 74 €m 13.1m shares 14 30 13 20 Impact(1) 12 10 of COVID (7.0) 11 0 Finalised May 2020 10 -10 0 €m 100 €m 2019 2020 In
Slide 18: Balance sheet – Working Capital
Balance sheet – Working Capital The Working Capital increased during 2020 as per the forecasts and in line with the normal progress of the projects underway given the high-quality nature of the projects, which confer a low-risk profile to the volume of WC generated. The Working Capital profile o
Slide 19: Balance sheet – Net Financial Debt
Balance sheet – Net Financial Debt Net Financial Debt (€m)(1)(2) LT bank debt – Repayment schedule (€m) NFD / LTM Adjusted (0.8x) 1.4x 109 EBTIDA 48 82 41 32 15 (59) 2019 2020 2021 2022 2023 2024 >2025 Financial debt breakdown (€m) Talgo has a sound financial profile with an €m 2020 outstanding ca
Slide 20: Cash Flow – Free Cash Flow
Cash Flow – Free Cash Flow The increased industrial activity registered during the year, together with the reduction in maintenance activity generated a negative Free Cash Flow of -101 €m during the period. The manufacturing projects progressed adequately in the phases of greater industrial acti
Slide 21: Contents
Contents 1. Key figures 2. Business performance 3. Financial results 4. Outlook ANNEX 20
Slide 22: Outlook for the business during 2021
Outlook for the business during 2021 Revenue growth driven by higher manufacturing activity and the gradual recovery of Business maintenance activity: 35-37% of the Backlog during the period 2021-2022. performance Commitment to sustained and selective growth: >1.2x average Book-to-Bill ratio dur
Slide 23: Conclusions
Conclusions The Results for 2020 leave behind the worst of an unprecedented global health crisis, which had a significant impact on the transport and mobility sectors. Talgo guarantees its commitment to employees and to society as a whole in the fight against COVID-19. The correct execution of
Slide 24: Contents
Contents 1. Key figures 2. Business performance 3. Financial results 4. Outlook Annex 23
Slide 25: Annex 1. Income statement
Annex 1. Income statement Profit & Loss Account (€m) 2020 2019 % Change Total net turnover 487.1 401.7 21.3% Other income 14.8 13.1 12.5% Procurement costs (296.6) (162.6) 82.4% Employee welfare expenses (123.7) (127.2) (2.7%) Other operating expenses (53.6) (56.9) (5.9%) EBITDA 28.0 68.1 (58.9%) %
Slide 26: Annex 2. Balance sheet
Annex 2. Balance sheet Balance Sheet (€m) Dec 2020 Dec 2019 FIXED ASSETS 257.0 249.9 Tangible + intangible assets 115.2 106.0 Goodwill 112.4 112.4 Other long term assets 29.3 31.5 CURRENT ASSETS 645.9 632.9 Inventories 145.3 129.8 Non- current assets held for sale 0.0 0.0 Accounts receivable 260.2 1
Slide 27: Annex 2. Balance sheet (2)
Annex 2. Balance sheet (2) Financial debt (€m) Dec 2020 Dec 2019 Long term financial liabilities 238.4 198.7 Short term financial liabilities 41.1 58.6 Financial leasings 6.9 8.9 Cash & cash equivalents (238.3) (325.6) Net financial debt 48.1 (59.3) Adjusted EBITDA LTM 34.2 72.9 Net financial debt /
Slide 28: Annex 3. Cash flow statement
Annex 3. Cash flow statement Cash flow statement (€m) 2020 2019 % Change Net income (17.4) 38.4 (145.4%) Corporate income tax 5.1 4.5 15.2% Depreciation & Amortization 16.7 15.8 5.9% Financial income/Financial expenses 6.2 8.3 (25.4%) Other result adjustments 14.2 (6.5) (317.0%) Changes in working c
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