2014/15 FULL-YEAR RESULTS 2018 STRATEGIC PLAN

Transcription

1 FOR ALL THE TRAINS IN THE WORLD 2014/15 FULL-YEAR RESULTS 2018 STRATEGIC PLAN

2 SAFE HARBOUR STATEMENT This presentation contains forward-looking statements which are based on Faiveley Transport Group management s current plans and forecasts. Such forward-looking statements are by their nature subject to a number of significant risk factors and uncertainties such as those described in the Registration Document filed with the French AMF which could cause actual results to differ from the expectations and objectives expressed in such forward-looking statements. Any such forward-looking statements are based on the information currently available and Faiveley Transport undertakes no obligation to update or revise any of them to reflect subsequent information, events or otherwise, unless otherwise required by law. 2

3 2014/15 CEO ROADMAP 3

4 2014/15 HIGHLIGHTS: A TRANSITION YEAR Record order book of EUR 1,877 m; growing +13% yoy Sales over the EUR 1Bn sales for the first time ever, reaching EUR 1,048m +9.5% total growth +7.8% organic Group Operating Profit** of EUR 95.3 m ; up +9% vs 2013/14* Strong growth in Free Cash Flow at EUR 63.6 m; up EUR 46 m vs 2013/14* Net Profit, Group share of EUR 55.7 m ; up +11% vs 2013/14* *: Restated figures from IFRS 10, 11 & 12 impact. ** : Group Operating profit includes the share of profit of joint-ventures 4

5 NOTE: CEO DIAGNOSIS BACK IN APRIL 2014 Group performance not reflecting excellent market and strategic positions Changes in market expectations More demanding Customers in terms of project management, engineering, internal and supplier quality New standards and regulations Greater complexity of projects interfaces and documentation Faiveley Transport execution challenges Quality: adjustment of internal standards and processes to meet Customers expectations Project management: strengthen project execution Engineering: manage complex technical requirements & documentation with reduced time to market Overly complicated structure But: Full of talented and committed individuals A significant change programme initiated with Faiveley Worldwide Excellence 5

6 2014/15 SHORT TERM ACTION PLANS STATUS Faiveley Worldwide Excellence implementation and deployment Improvement of the Faiveley Worldwide Excellence and Faiveley Management System referential Certification pilots run on several site with visible progress of FMS scores Strengthening of Internal Control processes showing first results Roll-out of key IT systems in support of FWE deployment (7 sites equipped with new ERP to date) Focus on Execution performance Project Management Detailed audits on selected projects Task forces established on each of the major platform projects Organisation of Project Plateau for projects core teams Operations Management Reinforced central Operations team supporting sites in case of complicated situations Internal audit and Operations audit teams on selected projects and sites Supplier Development New supplier development organisation, toolbox, methodology and monthly governance Quality improvement Quality as a top priority for Faiveley Transport New Quality ways of working Improved visibility of main customer issues 6

7 CUSTOMER SATISFACTION RECOVERY Significant progress on major projects execution ICX THAMESLINK March 2014 March 2015 FAI* 48% in B&S and 80% HVAC passed. No Go Doors. Deliveries: 0 train sets Critical warnings from customer FAI* 50% passed Deliveries: 4 train sets Series deliveries started Critical warnings from customer FAI* 100% passed Deliveries: 4 train sets prototypes Dynamic testing phase to begin for 18 months FAI* 100% passed Deliveries: 8 train sets Series deliveries on-going REGIOLIS REGIO2N Trains not homologated Deliveries: 45 train sets Trains not homologated Deliveries: 25 train sets Trains homologated in Jul.14 Deliveries: 107 train sets Series deliveries on-going Trains homologated in Sept. 14 Deliveries: 65 train sets Series deliveries on-going * FAI = First Article Inspection. 7

8 NEW CORPORATE MODEL & MANAGEMENT TEAM STRENGTHENED Strong international and experienced management team Focus on business execution and operational excellence 8

9 AND A MEDIUM TERM ACTION PLAN

10 2014/15 FINANCIAL HIGHLIGHTS

11 A RECORD BACKLOG +13.1% 1,877 1,690 1,616 1,660 1,453 1, x 1.6x 1.9x 1.6x 1.7x 1.8x Mar-10 Mar-11 Mar-12 Mar-13 Mar-14 * Mar-15 Order book (EURm) Order book (x Revenues) Record Order Book level up 13% year-on-year Including strong organic growth of +4.8% *: Restated figures from IFRS 10, 11 & 12 impact. 11

12 MAIN ORIGINAL EQUIPMENT ORDERS OF THE YEAR EUROPE Repeat order TGV Brakes, Doors & pantographs 40 trains Euroduplex > EUR 20 m Repeat order Regiolis Brakes & doors >EUR 15 m Repeat order SBB Dosto HVAC 19 trains > EUR 5 m TGV fleet upgrade Energy & Comfort 600 energy meters > EUR 5 m ASIA PACIFIC Singapore HVAC & Power 86 trains > EUR 45 m Sydney Platform Screen Doors 13 stations > EUR 30 m Riyadh Line 3 Platform Screen Doors 22 stations > EUR 15 m Riyadh Lines 1 & 2 HVAC 238 metro cars > EUR 15 m Delhi Line 7 Access Doors 486 metro cars > EUR 15 m Riyadh Line 4, 5 & 6 HVAC 138 metro cars > EUR 5 m Kochi Brakes, Doors & HVAC 25 train sets >EUR 10 m AMERICAS Lima Lines 2 & 4 Pantographs, couplers & HVAC 252 metro cars ~ EUR 15 m Salvador Lines 1 & 2 Doors 112 metro cars ~ EUR 5 m Buenos Aires Line H Access Doors 120 metro cars > EUR 3 m Amsted Rail Freight brake components Multiple orders 12

13 A RECORD YEAR OF ORDER INTAKE FOR SERVICES AMERICAS Freight & Locos USA Multiple orders REST OF THE WORLD Algeria Upgrade and modernisation 202 coaches > EUR 45 m EUROPE City of Seville Platform doors maintenance 21 stations > EUR 5 m ScotRail commuters Doors overhaul 40 trains ~ EUR 5 m Angel Trains Retrofit access door leaves 286 trains > EUR 5 m X2000 overhaul Retrofit HVAC system 271 cars > EUR 5 m ASIA PACIFIC Millenium trains Supply of brake discs 70 trains ~ EUR 5 m Korail HS Spare parts kits for Doors and pantographs > EUR 10 m 13

14 BALANCED SALES BY DIVISION ORIGINAL EQUIPMENT OE 58% Energy & Comfort 20% Access & Mobility* 14% SERVICES 42% Services 42% Brakes & Safety 24% +7.3% organic growth in Original Equipment linked to ramp up of deliveries on major platforms Strong +8.6% organic growth in Services * The Information & Safety segment has been transferred to the Energy & Comfort division starting 1 April

15 A STRONG PERFORMANCE IN ALL MARKETS Americas Europe Asia-Pacific 16 % 61 % 22 % AMERICAS +14.4% organic growth Strong growth in freight in the US EUROPE +6.5% organic growth Strong level of deliveries in Europe for OE major platforms and strong level of Services ASIA-PACIFIC +6.5% organic growth Good level of deliveries in China and Pacific Sales breakdown by geography (by destination) 15

16 A POSITIVE CURRENCY IMPACT 2014/15 Group Sales by currency INR 3% CZK 3% SEK 3% HKD 3% AUD 3% Others* 5% GBP 5% CNY 8% EUR 54% USD 13% EUR 15.1 m positive exchange rate impact in FY 2014/15 Policy of hedging multi-currency projects against foreign exchange exposure Exposure to the conversion of sales and profits of subsidiaries outside the Eurozone * Others include : CHF, BRL, RUB, KRW, PLN and IRR 16

17 INCOME STATEMENT (1/2) EUR millions FY 2014/15 FY 2013/14 Restated Sales % Gross profit % As % of sales 24.3% 23.7% Sales, General and Administrative costs (135.7) (121.8) +11.3% Research & Development costs (17.0) (13.6) Other income and expenses (13.0) (8.3) Share of profit of joint-ventures % Group Operating Profit * % As % of sales 9.1% 9.2% 9.5% sales growth (7.8% on a like-for-like basis) Gross Margin increase (+60 bps) First effects of the operational turnaround plan launched in April 2014 despite costs overruns on Brakes, Couplers and Doors projects in Europe and Air conditioning and Doors projects in China Increase in SG&A costs by 11.3% Short term action plans operating expenses (industrial excellence, quality, project audits teams,...) Divisions management strengthening Solid performance of equity-accounted Chinese joint-ventures 8.7% increase in Group Operating Profit* Change * : Group Operating profit includes the share of profit of joint-ventures 17

18 INCOME STATEMENT (2/2) EUR millions FY 2014/15 FY 2013/14 restated Group Operating Profit* % Net financial expense (13.9) (11.1) Income tax (28.5) (26.4) Minority interests Net profit Group share % As % of sales 5.3% 5.2% Earnings per share (EPS) in euros % Change Net financial expense increase Interest charge increase due to Schuldschein financing despite lower interest rates and better hedging Effective Tax Rate at 38.1 % vs % last year Unfavourable country mix Minority interests Positive contribution due to counter-performance of Chinese JV not compensated by solid results of other minorities Net profit Group share up 11% * : Group Operating profit includes the share of profit of joint-ventures 18

19 CASH FLOW STATEMENT FY 2014/15 FY 2013/14 EUR millions Change restated Net profit before Minority interests Amortisation and depreciation charges Change in provision charges and other non-cash items Share of profit of Joint ventures (6.6) (4.4) Dividends received from joint-ventures Net cost of financial debt Tax charge Operating cash flow before tax and interests Change in Working Capital Requirements (WCR) 4.4 (38.1) Tax paid (25.8) (30.8) Interest paid (9.8) (8.9) Capital expenditure (CAPEX) (23.2) (15.4) Free cash flow Positive contribution of change in Working capital (+4 M ) Excluding foreign exchange impact and change in factoring, increase in inventories and receivables are almost offset by improved customer advances and payables EUR 17 m increase of factoring of receivables CAPEX of EUR 23.2m; 2.2% of sales Strong Free Cash Flow generation at EUR 63.6 m, of which EUR 46 m excluding change in factoring 19

20 A SOLID FINANCIAL POSITION EUR millions FY 2014/15 FY 2013/14 restated Change Gross financial debt (16.4) Financial receivables (9.9) (7.4) (2.5) Cash (236.8) (239.2) +2.4 Net financial debt (16.6) Leverage ratio* (net debt to EBITDA) 1.49x 1.82x Equity Gearing**(net debt to equity) Solid financial position Net financial debt at EUR 184m Leverage ratio at 1.5x EBITDA, improving from 1.8x as of March-14 Gearing ratio at 0,26 Strong liquidity position EUR 237 m in cash and EUR 150 m undrawn committed credit lines * Leverage ratio calculated as per Syndicated loan calculation; as per SSD at 1.58x, as per bilateral credit line at 1.59x and as per USPP at 1.68x. ** Gearing ratio calculated as per SSD ; as per bilateral credit line at 0.26 and as per USPP at

21 IMPROVED DEBT MATURITY PROFILE 157 EUR millions / / / / /20 >2020 Other borrowings Syndicated debt USPP Schuldschein Renewal of the Syndicated Loan facility carried out in a timely manner Favourable market conditions Improved Terms & Conditions Most of Bilateral credit lines included Improved debt maturity profile; No significant debt redemption before

22 DIVIDEND AND SHAREHOLDERS Proposed dividend Shareholding structure (1) Proposed dividend of EUR 0.90 per share, up 12.5% vs 2013/14 AGM on 18 September 2015 Pay-out ratio: 45.4% Free float 52.6% Faiveley family 25% 23% 23% 23% 2011/ / / /15 1.6% Treasury shares 0.1% Employees 0.3% Management Pay-out ratio in line with distribution policy of 20%-25% of Net Profit (1) As of 31 March

23 AND NOW?

24 A growing market

25 ORIGINAL EQUIPMENT LONG TERM MARKET TRENDS EQUIPMENT MARKET BY GEOGRAPHY RoW Americas Asia-Pacific Europe Solid growth drivers Urbanisation and population growth Environmental awareness Fleet renewal Globalisation 2013/ /17 EQUIPMENT MARKET BY DIVISION Growth driven by Asia Pacific 4 strategic markets identified: China, India, North America and Western Europe / /17 Energy & Comfort Access & Mobility Brakes & safety Urban transit segment driving future growth High Speed segment stable Locos growth with upside related to big projects in emerging countries Source : Faiveley Transport internal estimates. 25

26 A GROWING ROLLING STOCK SERVICES MARKET WORLDWIDE Strong Services prospects Increasing installed base, as a consequence of significant past investments +3.3% CAGR Ageing fleets: refurbishment needs Increased fleet usage: expanding travel offering Technology and complexity: operators looking for support from rail industry experts Improved market accessibility: maintenance externalisation by operators, accelerated by on-going liberalisation process in several mature markets Source : Faiveley Transport internal estimates - World Rail Market Study-Forecast 2014 to 2019 UNIFE/Roland Berger. 26

27 Our 4 key strategic markets

28 OUR 4 KEY STRATEGIC MARKETS WESTERN EUROPE 2016/17 OE Railway Equipment size: EUR 0.8 Bn Expected market decrease despite new projects Large investments in metro and commuter (London, S-Bahn Berlin, Grand Paris) Market slowdown in High-Speed and EMUs Lack of funding in south Europe(France, Italy, Spain) CHINA 2016/17 OE Railway Equipment size: EUR 1.6 Bn Strong market with continued growth Sustained demand for High-Speed trains Steady growth in intercity segment Continuous development of metro segment driven by urbanisation Emerging LRV segment with large investments NORTH AMERICA 2016/17 OE Railway Equipment size: EUR 0.7 Bn Dynamic market dominated by freight Freight market still pulled by strength of US GDP: Sustained need for new locomotives Wagons market at its highest level in 2015/16 Large VHS order expected (Amtrak) INDIA 2016/17 OE Railway Equipment size: EUR 0.3 Bn Emerging and promising market New impulses for the Indian economy and rail sector from Authorities Fast growth of metro segment Locomotives mega projects resumed but not included in figures Source : Faiveley Transport internal estimates excluding PD&G segment. 28

29 A changing landscape

30 THE CAR BUILDERS REVOLUTION 3 historical players - 53% market share Few challengers Others 34% Big 3 Western OEMs* 53% 3 historical players - 24% market share CRRC** global leader with 32% market share Many challengers Others 38% Big 3 Western OEMs* 24% CSR 3% CNR 3% GE 7% CNR + CSR 32% GE 6% Nurture Customer intimacy Faiveley needs to further adapt its Products and systems offering Project and contract management excellence Footprint and competitiveness * Bombardier, Alstom and Siemens **CRRC: New company following the merger of CSR and CNR at the end of Source: Companies publication, brokers reports 30

31 OPERATORS REMAIN MAINLY REGIONAL Europe: Regional markets continue to open up, driving new business models such as Long Term Service Agreements (LTSA) to optimise Life Cycle Costs (e.g. Germany) Large public incumbent under budget pressure due to state debts Operators, car builders and equipment suppliers competing and cooperating for maintenance Large operators driving up technical standards and more demanding T&Cs Whilst Private operators focus is on further optimisation of performance based models Other regions: Partnerships emerging in the field of Maintenance Repair and Overhaul (MRO) (e.g. Singapore) Freight railroads increasing their market share in North America due to low energy costs, increased productivity and low interoperability investments 31

32 EUR billions LEADING MARKET POSITIONS DESPITE HIGHER COMPETITIVE PRESSURE 2016/17 ACCESSIBLE MARKET SIZE 2.6 BRAKES WORLDWIDE MARKET POSITION COUPLERS BRAKES & SAFETY ENERGY & COMFORT ACCESS & MOBILITY HVAC POWER SYSTEMS INFORMATION & SAFETY ACCESS DOORS Outside China TOP 5 PLATFORM SCREEN DOORS One of the top European players SERVICES UNIFE estimates global Rolling Stock services market at circa EUR 30 Bn European players Source : Company publications - Faiveley Transport internal estimates. 32

33 OUR VALUES WHAT DO WE ASPIRE TO BE?

34 OUR VALUES RELIABLE COLLABORATIVE PASSIONATE ~1.4 We Bn can sales be counted at end on. 2017/18 We deliver our commitments with integrity. ~1.2 Bn sales organic We ~0.2 are Bn accountable additional sales and trustworthy partners from acquisitions over 3 years We work as a global team. We listen to and respect each other. We share our knowledge and believe in our collective contribution. We are passionate about railways. Passion and expertise are the pillars of our craft. We build on them to address our customers needs creatively and swiftly. 34

35 OUR AMBITION WHERE DO WE WANT TO GO?

36 ONE MAIN TARGET: CREATE SUPERIOR VALUE First class Customer intimacy Excellence in execution Partenariat Competitive and stable reliable et Systems durable & Proximité Products Relation Innovative Solutions de confiance For our Customers Increase Recurrent earnings Pursue Services growth Sustain Cash flow generation Financial durablity Recurrent earnings For our Shareholders Live our values Operate as One Faiveley Grow Talents Best in class operations For Our Teams 36

37 2018 OUR STRATEGIC PLAN HOW TO GET THERE?

38 A PRAGMATIC APPROACH Sept March 2015 CEO Guidance per division Top-down Top management adjustments based on Group priorities and allocation of resources Top-down Bottom-up Preparation by each Division of a detailed 2015/18 plan 38

39 5 STRATEGIC BUILDING BLOCKS To operate as a Global Railway Equipment Leader 39

40 SHAPE Adapt our industrial footprint and our organisation to improve our performance and our competitiveness Focus on selected Key actions : FOOTPRINT ORGANISATION 1 2 State of the Art production facility in Czech Republic Multi-product Indian industrial footprint New Divisions Organisation Model New China Organisation Model New HR and Finance Organisation Model 40

41 SHAPE OUR FOOTPRINT Develop low-cost production and procurement bases while maintaining Engineering and R&D in our historical and internationally recognised Centres of Competence 1 State of the Art production facility in Czech Republic Replace current installations (Blovice site pantographs) Manufacture Doors, Brakes and Couplers components 2 Multi-product Indian industrial footprint Address Indian and Export Market in Asia Pacific (excl. China) Support Western car builders in their Indian export hubs 41

42 SHAPE OUR ORGANISATION Adapt our organisation and redefine governance to improve our performance 3 Fully empowered Divisions Responsible for driving and delivering business 4 New China Organisation Model Dedicated management team to address the Chinese market 5 New HR and Finance Organisation Model Independence of Finance and HR functions as the backbone of the new governance and control mechanism Business Partners of Finance & HR supporting Divisions 42

43 EXECUTE Achieve operational excellence, in terms of Quality, Project management, On-Time Delivery and Competitiveness in order to: Provide full satisfaction to our Customers Improve our financial performance Focus on selected Key actions: 1 Faiveley Worldwide Excellence 2 Strong Operations Governance and central processes 43

44 SELECTED EXECUTE KEY ACTIONS 1 Faiveley Worldwide Excellence Enforce a Best in class common process framework (Faiveley Management System & Internal Control) IT systems fully integrated across our Value Chain to establish standard working procedures 6 sites certified by May sites certified by May Strong Operations Governance and central processes Project Management Office Supplier development programme Strengthened Group Operations Management Procurement initiatives 44

45 CREATE Invest in Product and System Innovation to maintain a technological edge, meet customers needs and improve our competitiveness R&D plan aligned with Customers needs and driven by key market trends: Energy efficiency and mass reduction Systems reliability and availability Initial product costs reduction Total life cycle costs optimisation 2% of Group sales dedicated to Research & Development per year (excl. customer projects) Illustrative example of key R&D programmes: 1 Neoflexx 2 ESP4C 45

46 SELECTED CREATE KEY ACTIONS 1 Neoflexx New generation of axle-mounted brake disc Unique patented electronbeam welding manufacturing technology for high duty cycle discs application UIC and EN standards Total cost of ownership optimisation Flexibility in design & dimensions Superior reliability & availability Low weight Short delivery times 2 ESP4C Ultra compact door mechanism for mass transit applications Unique, patented design using service-proven components Space and weight optimisation Low noise High quality and reliability levels 46

47 DEVELOP Focus and accelerate our commercial initiatives to achieve steady and profitable growth that outpaces the rail market Focus on selected Key actions: 1 Focus on key strategic geographies Develop Services Business 2 3 M&A 47

48 SELECTED DEVELOP KEY ACTIONS 1 Key strategic geographies: China, India, North America and Western Europe Capture growth potential through organic growth and market share gains Align product and systems offering with car builders platforms 2 Services Address installed base systematically through proactive sale strategies Maximise parts sales volume through Excellence in Delivery Expand Engineering Services offering Develop Customer partnerships 3 M&A Expand position in high growth markets Acquire adjacent technologies 48

49 GROW TALENT Promote a shared culture and a working environment which foster talent development and team commitment 1 Deploy Faiveley Transport Corporate Values RELIABLE: We can be counted on. We deliver our commitments with integrity. We are accountable and trustworthy partners COLLABORATIVE : We work as a global team. We listen to and respect each other. We share our knowledge and believe in our collective contribution. PASSIONATE : We are passionate about railways. Passion and expertise are the pillars of our craft. We build on them to address our customers needs creatively and swiftly. 2 Talent Management High potential identification process Incentives aligned from top management Development of key Talents 49

50 STRATEGIC PLAN FINANCIAL OBJECTIVES Sales Group operating Profit* Free Cash Flow ~1.4 Bn sales at end EUR 1.3 Bn sales in 2017/ /18 ~1.2 Bn sales organic ~0.2 Bn additional sales from acquisitions over 3 years 11% to 12% Group operating margin before restructuring* Excluding external growth, EUR 125 m to EUR 140 m Group operating profit* before restructuring More than EUR 110 m of Free cash flow generation over 3 years *: Group Operating profit (including the share of net income of joint-ventures) Prospective information at current rates (April 2015) 50

51 OUR FINANCIAL PLAN

52 MAIN ASSUMPTIONS No major unforeseen change in current economic growth prospects for mature economies and emerging countries Constant exchange rates (April 2015) Strategic plan initiatives factored in with major operational expenses and capital expenditures to roll-out plan as well as savings and benefits ramping up mainly from 2017/18 US freight market at mid-cycle in 2017/18 52

53 EUR millions SALES GROWTH PROSPECTS 2015/16 GUIDANCE EUR 1.3 Bn sales in 2017/18 ~ % to 3% sales growth to between EUR 1,050 m to EUR 1,080 m Services division growth High level of US freight High level of visibility thanks to order backlog coverage ~EUR 1.3 Bn Sales in 2017/ /18 AMBITION 4% Sales CAGR over 16/17 and 17/18 at same perimeter US back to mid-cycle Growth prospects for Services division at +6% CAGR EUR 150 m additional sales through acquisitions by 2017/18 Expand position in higher growth markets Acquire adjacent services Strong pipeline of small or medium size targets Strict financial discipline FY FY FY FY Prospective information at current rates (April 2015) 53

54 SIGNIFICANT CHANGE IN OUR SALES BREAKDOWN Services to grow faster than OE divisions 2014/15 42% of Group sales 2017/18 >47% of Group sales Sales outside Europe 2014/15 39% of Group sales 2017/18 >45% of Group sales 54

55 EUR millions SOLID GROWTH OF GROUP OPERATING PROFIT* 11%-12% of sales in 2017/ /16 GUIDANCE Group Operating Profit* of between EUR 102 m to EUR 107 m, increasing 5% to10% despite additional resources for the roll-out of our strategic plan /18 AMBITION Group operating margin* between 11% and 12% of sales Sales growth Focus on Project Execution Positive impacts of the Strategic Plan initiatives EUR 125 m to EUR 140 m Group Operating Profit* (excluding external growth) EUR 5 m to EUR 7 m restructuring costs per year over 3 years Strategic Action Plan implementation costs (incl. restructuring): FY FY FY FY EUR millions 2015/ / /18 Additional costs ~23 ~25 ~24 o/w non recurring ~10 ~10 ~9 *: Group Operating profit (including the share of net income of joint-ventures) before restructuring costs Prospective information at current rates (April 2015) 55

56 As a % of Group Sales ONE OFF CAPEX INCREASE TO SUPPORT OUR GROWTH OBJECTIVES 3.5% 3.5% 2015/16 GUIDANCE Capex level to increase to approx. 3.5% of Group Sales due to strategic plan actions implementation 1.9% 2.2% ~2.2% 2017/18 AMBITION High level of capital expenditure maintained in 2016/17 New footprint capex including Czech Republic and India IT systems roll-out Capex back to historical levels from 2017/18 (~2.2% of sales) FY FY FY FY FY

57 FREE CASH FLOW GENERATION AND PAY-OUT RATIO > 110 m Cumulated Free cash flow over 3 years (15/16 to 17/18) 2017/18 AMBITION More than EUR 110 m cumulated Free cash flow generation over 3 years (FY 2015/16 to FY 2017/18) despite substantial increases in investments throughout the plan Main levers : Improved Group EBIT Inventory management initiative 20%-25% Of net income Dividend Pay-out ratio DIVIDEND PAY-OUT RATIO Maintain dividend policy with a pay-out ratio of between 20% and 25% of annual net profit into dividends 57

58 2015/16 OUTLOOK Group sales expected to grow, between EUR 1,050 m and EUR 1,080 m Strong growth in Services division High level of US freight market Group Operating Profit* targeted to increase to between EUR 102 m and EUR 107 m Several key milestones of Creating Value 2018 to be delivered in 2015/16 Opening of state of the art low cost European site by March 2016 Roll out of new ERP system in more than 10 sites (cumulated) First 6 sites FWE certified by May 2016 * : Group Operating profit (including the share of net income of joint-ventures) before restructuring 58

59 STRATEGIC PLAN FINANCIAL OBJECTIVES Sales Group operating Profit* Free Cash Flow ~1.4 Bn sales at end EUR 1.3 Bn sales in 2017/ /18 ~1.2 Bn sales organic ~0.2 Bn additional sales from acquisitions over 3 years 11% to 12% Group operating margin before restructuring* Excluding external growth, EUR 125 m to EUR 140 m Group operating profit* before restructuring More than EUR 110 m of Free cash flow generation over 3 years *: Group Operating profit (including the share of net income of joint-ventures) Prospective information at current rates (April 2015) 59

60 Questions Answers

61 FINANCIAL CALENDAR 23 July /16 Q1 Trading Update 18 September 2015 Shareholders Meeting 30 November /16 Half-Year results 28 January /16 Q3 Trading Update 26 May /16 Full Year Results 61