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FULL-YEAR RESULTS 2019
Dr. Thomas Ahlburg, Group CEO, and Raphael Widmer, Group CFO
5 March 2020
BUILDING TRAINS WITH PASSION AND
SWISS PRECISION
Stadler full-year results 2019 | © Stadler | 5 March 2020
AGENDA
Highlights Dr. Thomas Ahlburg, Group CEO1
Financial results Raphael Widmer, Group CFO2
Outlook Dr. Thomas Ahlburg, Group CEO3
2
A SUCCESSFUL YEAR FOR STADLER
Stadler full-year results 2019 | © Stadler | 5 March 2020 4
− First US METRO contract for
Stadler, 127 METRO trains for
MARTA (Atlanta)
− 163 locomotives sold at a recorded
order intake of c. CHF 800m
Order intake
Seven new fleets and 444 vehicles
delivered (~+80% vs 2018)
Giruno high-speed train (SMILE)
enters regular passenger service
for SBB in Switzerland
Fleets delivered
55 FLIRT Akku for Schleswig-
Holstein, Germany
First hydrogen-powered train to run
in the US for SBCTA (California)
New technologies
Regional expansion
Service Signalling
Indonesia joint venture
34 locomotives for Taiwan
Opening of new plant in Salt Lake
City, US
15 year service contract for DART,
US
35 year service contract for 52 new
METRO-trains for Merseytravel in
Liverpool, UK
Generic homologation of GUARDIA
ETCS system
First CBTC contract awarded
Successful test of ATO train in NL
and CH
Stadler full-year results 2019 | © Stadler | 5 March 2020
FULL-YEAR 2019 KEY FIGURES
Order intake
CHF 5.1bn
+17%(1)
EBIT margin
6.1%
-149bps(1)
Net revenues
CHF 3.2bn
+60%(1)
5
(1) Change year-on-year.
(2) Defined as EBITDA –Capex –Change in NWC. EBITDA is calculated as the sum of EBIT and depreciation and amortization
Order backlog
CHF 15.0bn
+14%(1)
Net profit
CHF 128.5m
+8%(1)
Free Cash Flow(2)
CHF -328.9m
+ CHF 37.8m(1)
Vehicles delivered
444
+80%(1)
Stadler full-year results 2019 | © Stadler | 5 March 2020
OPERATIONAL HIGHLIGHTS & CHALLENGES
6
444 or ~ 80% more vehicles delivered in 2019 compared to
2018, seven new fleets entered service in 2019
23% increase year-on year in average FTEs to ~11’000
Operating licence for new high-speed vehicle concept (SMILE)
Opening of new plants in Salt Lake City (US), St. Margrethen
(CH), Herne (Service, DE); capacity expansions in Środa (PL)
and Minsk (BY)
Highlights
Substantial ramp-up of production and workforce has lead to
certain inefficiencies, which mainly materialised in the fourth
quarter
Higher costs in certain projects (primarily Greater Anglia)
Challenges are of temporary nature and under control
Challenges
FULL-YEAR RESULTS 2019 SUMMARYCHFm
Order intake Net revenues Order backlog
EBIT Capital expenditure(2)
2018 2019
5’1174’389
+17%
2018 2019
13’17915’026
+14%
3’201
2018 2019
2’001
+60%
151
1947.5%
2018
6.1%
2019
+28%
EBIT as % of net revenues
-323
27
2018 2019
Stadler full-year results 2019 | © Stadler | 5 March 2020 8
Change year-on-year
Net working capital(1)
(1) Net working capital is calculated by subtracting the sum of trade payables, liabilities from work in progress and other current liabilities (including other current liabilities, current provisions and deferred income and accrued
expenses) from the sum of trade receivables, inventories, work in progress and other current assets (including other current receivables, compensation claims from work in progress and accrued income and deferred expenses).
(2) Capital expenditure is calculated as the sum of investments in tangible and intangible assets.
188
249
2018 2019
+32%
Strong order intake ahead of expectations in both reporting segments
Relatively stable order intake development in Europe with a higher weight towards the DACH
region
Significant growth in order intake from the Americas region driven by the order for 127 METRO
trains for MARTA in the US valued at over USD 600m
Comments
Stadler full-year results 2019 | © Stadler | 5 March 2020
ORDER INTAKECHFm
621
833
4’284
2018
3’767
2019
Rolling Stock
Service & Components4’389
5’117
+17%
9
42%
34%
18%
DACH
45%
1% 17%
2%
2018
16%
17%Eastern Europe
8%
2019
Western Europe
Americas
Others(1)
(1) Others: CIS and rest of the world.
Stadler full-year results 2019 | © Stadler | 5 March 2020
NET REVENUESCHFm
248
261
1’752
2018
2’001
2019
Service & Components
Rolling Stock2’940
3’201
+60%
10
43%
5%1%
3%
65%
19%
6%6%
2018
46%
5%
2019
DACH
Western Europe
Eastern Europe
Americas
Others(1)
(1) Others: CIS and rest of the world.
Significant net revenue growth of c. 60% to CHF 3.2bn
Net revenues below expectations due to postponements in projects (primarily Greater Anglia)
and exchange rate movements
Substantial growth recorded in Western Europe mainly relates to deliveries in the United
Kingdom and Scandinavia
Comments
Stadler full-year results 2019 | © Stadler | 5 March 2020
ORDER BACKLOG I/IICHFm
10’917
2’262
Rolling Stock
2018
Service & Components
12’254
2’772
2019
13’179
15’026
+14%
11
32%
7%
8%
41%
41%
2%
2018
40%
13%
11%
4%
2019
DACH
Western Europe
Eastern Europe
Americas
Others(1)
(1) Others: CIS and rest of the world.
Strong order intake drives record order backlog of CHF 15bn providing high revenue
visibility
Stadler full-year results 2019 | © Stadler | 5 March 2020
ORDER BACKLOG II/II
12(1) Others: CIS and rest of the world.
High quality and increasingly diversified order backlog with a growing share of strategic
rolling stock market segments as well as service
62%
5%
5%
9%
17%
2%Locomotives
Trains
Tailor-made
Metro
LRV
Service & Components
50%
6%
8%
7%
11%
18%
Executing on
strategic focus
Order backlog by market segment: 2019Order backlog by market segment: 2018
Stadler full-year results 2019 | © Stadler | 5 March 2020 13
REPORTING SEGMENTS
CHFm 2018 2019 Change
Order intake 3’767 4’284 14%
Net revenues (third party) 1’752 2’940 68%
Order backlog 10’917 12’254 12%
Investments in fixed assets 144 186 29%
Total staff as FTEs(1) 6’884 8’408 22%
(1) Average FTEs 1 January to 31 December.
Rolling Stock
CHFm 2018 2019 Change
Order intake 621 833 34%
Net revenues (third party) 248 261 5%
Order backlog 2’262 2’772 23%
Investments in fixed assets 27 25 -7%
Total staff as FTEs(1) 1’829 2’326 27%
Service & Components
Ready to execute on the record order backlog with increased capacities and resources
Stadler full-year results 2019 | © Stadler | 5 March 2020
EBITCHFm in % of net revenues
14
151
194
7.5%
6.1%
0%
1%
2%
3%
4%
5%
6%
7%
8%
9%
10%
0
50
100
150
200
2018 2019
+28%
EBIT EBIT in % of net revenues
− Strong EBIT growth of c. 28% to CHF 194m
EBIT margin below expectations due to operational inefficiencies, incremental growth
investments and FX effects
Operational impact related to individual orders (primarily Greater Anglia)
Comments
FX2018 Operational
inefficiencies
Growth
investments
2019
7,5%
6,1%
Note: Sizes of EBIT bridge elements are illustrative only.
Change year-on-year
CHFm 2018 2019 Change
Earnings before interest and taxes (EBIT) 150.9 193.7 28%
Financial result (21.4) (47.1)
Share of results from associates 2.3 4.0
Ordinary result 131.9 150.6 14%
Non-operating result - (2.1)
Profit before income taxes 131.9 148.5 13%
Income taxes (12.7) (20.0)
Profit for the period 119.2 128.5 8%
thereof attributable to
- Shareholders of Stadler Rail AG 117.8 127.2
- Non-controlling interests 1.4 1.4
Stadler full-year results 2019 | © Stadler | 5 March 2020
NET INCOME
15
− Financial result mainly impacted by higher order-related bank guarantee costs and foreign
exchange losses
− Effective tax rate 2019 in-line with expectations
Comments
Stadler full-year results 2019 | © Stadler | 5 March 2020 16
NET WORKING CAPITALNet working capital(1) (CHFm)
132
261 232
280
818252
286
-757 -804
-174-250
-269
-386
Comp. claims from WIP
2019
-323
86
Inventories
Trade receivables
2018
Work in progress (net)
Trade payables
Other current assets
Other current liabilities
27
(1) Net working capital is calculated by subtracting the sum of trade payables, liabilities from work in progress and other current liabilities (including other current liabilities, current provisions and deferred income and accrued
expenses) from the sum of trade receivables, inventories, work in progress and other current assets (including other current receivables, compensation claims from work in progress and accrued income and deferred expenses).
-323
27
46
Com
p. cla
ims fro
m W
IP
NW
C 2
01
9
538
Work
in p
rogre
ss (
ne
t)
NW
C 2
01
8
Oth
er
cu
rre
nt a
sse
ts
34
Tra
de
rece
iva
ble
s
(29)
Inve
nto
rie
s
(47) (76)
Tra
de
pa
ya
ble
s
(117)
Oth
er
cu
rre
nt lia
bili
ties
Increase in NWC driven by the change in compensation claims from work in progress
Stadler full-year results 2019 | © Stadler | 5 March 2020 17
CAPITAL EXPENDITURECHFm
4865
174
213
14
35
188
2019
8
55
2016 2017
11
2018
76
249
Investments in intangible assets Investments in tangible assets
High level of investments to support Stadler’s growth
St. Margrethen (Switzerland), Herne (Germany), Salt Lake City (USA), Środa (Poland) and
Minsk (Belarus)
Investments in intangible assets mainly relate to development of new high-speed SMILE vehicle
concept, new products in locomotives and signalling
Comments
Negative operating cash flow (primarily Greater Anglia)
High level of growth investments
Non-current financial liabilities (mainly CHF 300m bond)
Current financial liabilities (mainly project financing, e.g. SBB SMILE order)
Comments
Stadler full-year results 2019 | © Stadler | 5 March 2020 18
NET CASHCHFm
695 753
-468
-279
-81
Current financial liabilities
Cash and cash equivalents
-82
2018
Non-current financial liabilities
2019
5326
Stadler full-year results 2019 | © Stadler | 5 March 2020 19
BALANCE SHEETCHFm
Inventories 232
Assets from WIP 634
Trade receivables 286
Cash 753
Comp. claims from WIP 818
PPE 702
Other current assets 132
Intangible assets 105Other LT assets 139
Assets
Trade payables 250
Current financial liabilities 279
Liabilities from WIP 1’438
Other current liabilities 386
LT financial liabilities 468
Other LT liabilities 131
Equity 847
Liabilities
3’800 3’800
• Strong liquidity position
• Successful issuance of CHF
300m bond at a coupon of
0.375% to support future
growth
• Self-funding nature of
projects with negative net
work in progress
• No goodwill capitalised
Strong balance sheet
Total net work in progress: (804)
Net cash position: 6
21
ONGOING GROWTH MOMENTUM IN THE RAIL SECTOR
Stadler full-year results 2019 | © Stadler | 5 March 2020
Growing demand supported by global megatrends
Tender pipeline remaining strong
Resilience to typical industrial business cycles
EXECUTING ON OUR 2023 STRATEGY
Stadler full-year results 2019 | © Stadler | 5 March 2020 22
Europe
North America
CIS
New markets
• Market segments
unchanged
• Deliver on
backlog and
establish next
sales level
• Growth through
new product
pipeline
Rolling Stock
• Growing
accessible market
and installed base
• New service
solutions
• Capture
opportunities
from signalling
• Potential selective
acquisitions
Service &
Components
• Establish own
signalling
solutions
• AngelStar JV with
Mermec
• Potential
opportunistic
acquisitions
Signalling
Rolling Stock
Service & Components
Stadler sales today
Rolling Stock
Service & Components
Signalling
Stadler strategy 2023
Reg
ion
s
Strategic focus
Note: Sizes of pie charts are illustrative only.
PRIORITIES FOR 2020
• Capitalise on pipeline of
successful new products
• Focus on project
execution:
– Bring new hires up the
learning curve
– Drive efficiency gains
along the value chain
Rolling Stock
• Ensure highest reliability
and availability
• Ramp-up of new service
locations
• Convert strong order
intake momentum into
revenue growth
Service & Components
• Achieve full homologation
of GUARDIA ETCS
system in a number of
European countries
• Execute existing CBTC
order and further leverage
in-house platform
• Execute existing ATO
orders in NL and CH
Signalling
Stadler full-year results 2019 | © Stadler | 5 March 2020 23
Priorities 2020
Around CHF 3.5bn at constant currencies
Comparable to 2019
At least 6%
Stadler full-year results 2019 | © Stadler | 5 March 2020 24
FY 2020 FINANCIAL GUIDANCE
Net revenues
EBIT-margin
Our 2020 outlook is, among other factors, subject to possible implications related to
the potential impact of the COVID-19 outbreak. To date we see only limited
indications for negative effects on the stability of our supply chain. However, we are
still at an early stage of assessing the situation.
Payout ratio of c. 60% of net incomeDividend
KEY TAKEAWAYSREFLECTION AND OUTLOOK
Stadler full-year results 2019 | © Stadler | 5 March 2020 25
444 vehicles delivered (c. +80% vs 2018)
Successful homologation and service entry of seven new fleets
Record levels of order intake, net revenues and order backlog
Certain growth related challenges combined with additional costs
and delays in certain projects (primarily Greater Anglia)
Rail market momentum and tender pipeline remaining very strong
Growth related challenges remain key management focus in 2020
High-quality backlog provides strong visibility
Payout ratio of c. 60% of net income
Mid-term financial targets confirmed
Mid-term
2020
2019
Stadler full-year results 2019 | © Stadler | 5 March 2020
INFORMATION
Share information
Listing: SIX Swiss Exchange
Currency: CHF
Ticker symbol: SRAIL
ISIN: CH0002178181
Listing date: 12 April 2019
Financial calendar
30 April 2020: Annual General Meeting
25 August 2020: Publication of half-year results 2020
Investor contact
Raphael Widmer
Group CFO
Phone: +41 71 626 86 80
E-mail: [email protected]
Daniel Strickler
Investor Relations Officer
Phone: +41 71 626 86 47
E-mail: [email protected]
28
Media contact
Marina Winder
Head of Communications & PR
Phone: +41 71 626 31 57
E-mail: [email protected]
COMPREHENSIVE PORTFOLIO OF VEHICLE FAMILIES
Market segments and vehicle families Order backlog contributions 2019
Very High
Speed
High Speed
Intercity
Regional /
Suburban
Not a strategic focus
Loco-
motives
Metro
Main-line
locomotives
Shunting
locomotives
LRV
Metro
Tram /
Tram Train
TypeMarket
segmentVehicle families Reporting segment
Se
rvic
es
& S
ys
tem
s
Ta
ilo
r-m
ad
eRegional markets
Market segmentTrains
Coaches
Stadler full-year results 2019 | © Stadler | 5 March 2020 29
82%
18%
Rolling Stock
Service & Components
40%
32%
13%
2%
3% 11%
Americas
DACH
Western Europe
CIS
Eastern Europe
Rest of the world
50%
8%
7%
11%
18%
6%
Trains
Locomotives
Tailor-made
Metro
LRV
Service & Components
CHFmRolling
Stock
Service &
Components
Corporate
CenterTotal
Rolling
Stock
Service &
Components
Corporate
CenterTotal
Order intake 3’767 621 - 4’389 4’284 833 - 5’117
Total revenue 1’789 536 (325) 2’001 3’002 642 (442) 3’201
Inter-segment revenue (37) (289) 326 - (62) (381) 443 -
Net revenue 1’752 248 1 2’001 2’940 261 0 3’201
Investments in PPE 144 27 3 174 186 25 2 213
Total FTE 6’884 1’829 161 8’874 8’408 2’326 184 10’918
20192018
SEGMENT BREAKDOWN
Stadler full-year results 2019 | © Stadler | 5 March 2020 30
Stadler full-year results 2019 | © Stadler | 5 March 2020 31
WORK IN PROGRESSCHFm
(757)(804)
(88)
▲Liabilities
from WIP
WIP (net) 31
Dec 2018
▲Assets
from WIP
41
WIP (net)
H1 2019
593
(757)
634
(804)
Assets from WIP Liabilities
from WIP
Total WIP (net)
(1’438)(1’350)
2018
2019
Continuously negative net work in progress (WIP)
DISCLAIMERIMPORTANT 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 based on current expectations, estimates and projections about the factors that may
affect our future performance, including global economic conditions, and the economic conditions of the regions and markets in which the Group operates. These expectations,
estimates and projections are generally identifiable by statements containing words such as “expects,” “believes,” “estimates,” “targets,” “plans,” “outlook” or similar expressions.
There are numerous risks and uncertainties, many of which are beyond our control, that could cause our actual results to differ materially from the forward-looking information and
statements made in this Presentation, which, in turn, could affect our ability to achieve our stated targets. The important factors that could cause such differences include:
changes in the markets the Group serves, including as a result of changes in the global demand for transportation and demographic changes; the Group's ability to successfully
develop, launch and market new products and services; the Group's ability to retain existing customers and/or secure new customers; the Group's ability to compete with existing
and new competitors; the Group's ability to maintain the high quality, reliability, performance and timely delivery of its products and services; the impact of fluctuations in foreign
exchange rates; and such other factors as may be discussed from time to time. Although we believe that our expectations reflected in any such forward-looking statement are
based upon reasonable assumptions, we can give no assurance that those expectations will be achieved.
PRESENTATION OF FINANCIAL INFORMATION
This Presentation has been prepared by Stadler solely for informational purposes. Certain financial data contained herein is based on historical financial information of Stadler
that has been prepared in accordance with the accounting standards of Swiss GAAP FER, unless otherwise stated. In addition, certain financial data included in the Presentation
consists of "non-Swiss GAAP financial measures". These non-Swiss GAAP financial measures may not be comparable to similarly titled measures presented by other companies,
nor should they be construed as an alternative to other financial measures determined in accordance with Swiss GAAP. You are cautioned not to place undue reliance on any
non-Swiss GAAP financial measures and ratios included herein.
In addition, certain financial information contained herein has not been audited, confirmed or otherwise covered by a report by independent auditors and, as such, actual data
could vary, possible significantly, from the data set forth herein.
THIS PRESENTATION IS NOT AN INVITATION TO PURCHASE SECURITIES OF STADLER OR THE GROUP.
.
Stadler full-year results 2019 | © Stadler | 5 March 2020 32