2014/15 HALF-YEAR RESULTS

Transcription

1 FOR ALL THE TRAINS IN THE WORLD 2014/15 HALF-YEAR RESULTS

2 H1 2014/15 HIGHLIGHTS

3 H1 2014/15 HIGHLIGHTS A good start of the year: EUR 1,694.5 m order book, +3.3% growth EUR m revenues, +9.2% vs H1 2013/14 restated +10.1% organic +0.3% acquisitions -1.2% FX EUR 46.5 m Group Operating profit* Increased Group operating margin vs H2 2013/14 EUR 10.1 m Free cash flow EUR 26.7 m net profit, Group share * : Group Operating profit includes the share of net income of joint-ventures 3

4 STATUS UPDATE ON NEW PLATFORMS COMPLETION SUBSTANTIAL PROGRESS ACHIEVED Project Start Customer FAI* Project Completion TENDER ENGINEERING & DESIGN PRE SERIES & TESTING SERIAL MANUFACTURING CUSTOMER SUPPORT ICx Tramway Toronto REGIO2N REGIOLIS SIEMENS / BOMBARDIER EUR 270 m Doors, Brakes, HVAC Initial order intake: 2011: 130 trains Extension from 10 to 12 cars in 2013 Options up to 300 trains BOMBARDIER EUR 76 m Doors, Brakes, HVAC Initial order intake: 2010: 204 trains Options received : 182 trains (Metrolinx) BOMBARDIER EUR 97 m Doors, Brakes Initial order intake: 2010: 129 trains Options received: 30 trains Options up to 860 trains ALSTOM EUR 89 m Doors, Brakes Initial order intake: 2009: 129 trains Options received: 37 trains Options up to 1,000 trains CURRENT STATUS** Equipments for 4 prototypes trains delivered >95% of FAI passed Train testing phase starting early 2015 for 18 months CURRENT STATUTS** Deliveries : 12 train sets of equipments Series delivery ongoing CURRENT STATUS** Deliveries : 40 train sets of equipments Train homologated in Sept.2014 Series delivery ongoing CURRENT STATUS** Deliveries: 72 train sets of equipments Train homologated in July 2014 Series delivery ongoing * FAI = First Article Inspection ** At 30 September

5 SERVICES ORIGINAL EQUIPEMENT MAIN ORDERS FOR THE PERIOD EUROPE ASIA PACIFIC AMERICAS Repeat order TGV Brakes, Doors & pantographs 40 trains Euroduplex > EUR 20 m Regional trains Poland HVAC 20 trains ~EUR 5 m TGV fleet upgrade Energy & Comfort 600 energy meters > EUR 5 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 Buenos Aires Line H Access Doors 120 metro cars > EUR 3 m Amsted Rail Freight brake components Multiple orders Seville Platform doors maintenance 21 stations > EUR 5 m ScotRail commuters Doors overhaul 40 trains ~ EUR 5 m Millenium trains Supply of brake discs 70 trains ~ EUR 5 m 5

6 FINANCIAL REVIEW

7 REVENUE BREAKDOWN BY ACTIVITY ORIGINAL EQUIPMENT OE 60% Energy & Comfort 22% SERVICES 40% Services 40% Access & Mobility* 14% Brakes & Safety 24% Strong level of organic growth in Original Equipment +13.7% linked to deliveries ramp up on major platforms +4.9% organic growth in Services * The Information & Safety segment has been transferred into the Energy & Comfort activity starting 1 April

8 REVENUE BREAKDOWN BY GEOGRAPHY* EUROPE +9.9% organic growth Strong level of deliveries in Italy, France, Germany and Denmark 21% ASIA-PACIFIC +7.8% organic growth Good level of deliveries in China, India, Singapore and New Zealand 62% 16% AMERICAS +10.1% organic growth Strong growth in the freight in the US Strong performance in all markets * by destination. 8

9 INCOME STATEMENT (1/2) EUR millions H1 2014/15 H1 2013/14 Change Restated Sales % Gross profit % As % of sales 23.9% 25.3% Sales, general and administrative costs (62.5) (60.6) +3.1% Research & development costs (7.4) (6.5) Other income and expenses (3.0) (2.6) Share of profit of joint-ventures % Group Operating Profit * % As % of sales 9.6% 10.2% 9.2% sales growth (10.1% on a like-for-like basis) Gross Margin decrease Operational costs overruns on brakes projects in Europe and air conditioning and access doors projects in China Increase in SG&A costs by 3.1% Activities management reinforcement to improve execution Wage inflation 2.2% increase in Group Operating Profit* * : Including the share of profit of joint-ventures. 9

10 INCOME STATEMENT (2/2) EUR millions H1 2014/15 H1 2013/14 Change restated Group Operating Profit* % Net financial expense (7.7) (5.6) Income tax (13.5) (13.7) Minority interests 1.4 (1.0) Net profit Group share % As % of sales 5.5% 5.7% Earnings per share (EPS) in euros Net financial expense increase Interest charge increase due to SSD financing set up in March 2014 Effective Tax Rate at 38.0% vs 36.8% last year Unfavourable country mix Net profit, Group share up 5.5% * : Including the share of profit of joint-ventures. 10

11 WORKING CAPITAL REQUIREMENT EUR millions H1 2014/15 FY 2013/14 Change restated Inventories Work-in-Progress on Projects Trade receivables (15.9) Down payments (120.4) (122.6) +2.2 Trade payables (184.3) (180.5) (3.8) Other current assets and liabilities (44.0) (43.4) (0.6) Working capital Requirement before factoring Factoring of receivables (77.0) (80.5) +3.5 Working capital Requirement after factoring EUR 15.4 m increase in working capital of which EUR 3.5m decrease of factoring of receivables Increase in inventories mainly linked to activity increase Usual trade receivables decrease during H1 11

12 CASH FLOW STATEMENT H1 2014/15 H1 2013/14 EUR millions Change restated Net profit Minority interests (1.4) 1.0 Amortisation and depreciation charges Change in provision charges and other non-cash items (1.2) (7.1) Self-financing capacity Change in WCR (13.6) (48.4) Capital expenditure (9.0) (7.8) Free cash flow 10.1 (28.6) Self-financing capacity increase (+18.5%) CAPEX of EUR 9.0m; in-line with historical level at 1.8% sales Clear improvement in Free Cash Flow at EUR 13.6m excluding change in factoring of receivables 12

13 FINANCIAL STRUCTURE H1 2014/15 FY 2013/14 EUR millions Change restated Gross financial debt (9.3) Financial receivables (9.5) (7.4) (2.1) Cash (228.8) (239.2) 10.4 Net financial debt (1.0) Leverage ratio* (net debt to EBITDA) 1.83 x 1.82x Equity Gearing*(net debt to equity) Solid financial position Net financial debt at EUR 200 m Leverage ratio at 1.8x EBITDA vs a covenant at 2.5x Gearing ratio at 32% Strong liquidity position EUR 229 m in cash an EUR 126 m undrawn credit lines * : Leverage and gearing ratios calculated as per Syndicated loan calculation. 13

14 THE RAILWAY MARKET

15 UNIFE RAIL MARKET STUDY - SYNTHESIS According to UNIFE, last 5 years growth was driven by Services Services for Rolling Stock (RoS) total market grew to EUR 44 Bn vs EUR 41 Bn in RoS OE total market was stable between and at c.eur 48 Bn Lowered overall market accessibility RoS Services barriers of entry remain in Europe (operators in-house capabilities) RoS OE: India (passenger intercity market closed) and China (market closing for western car builders) driving lower market accessibility (c.83% of the total RoS market is considered accessible in vs c.88% in ) By 2017, the accessible market growth is expected to pursue growth RoS Services market: 3.3% growth rate per annum RoS market: 1.7% growth rate per annum Strong underlying growth drivers Cities expansion, sustainability, fleet renewal and free-trade agreements Urbanisation and infrastructure needs in emerging countries Source: World Rail Market Study-Forecast 2014 to 2019 UNIFE/Roland Berger. 15

16 WORLDWIDE ROLLING STOCK MARKET FOR OE IN 2013 NORTH AMERICA EUR 4.9 Bn WESTERN EUROPE EUR 10.8 Bn EASTERN EUROPE EUR 1.9 Bn CIS EUR 6.6 Bn SOUTH AMERICA EUR 1.9 Bn MEA EUR 3.5 Bn ASIA PACIFIC EUR 8.9 Bn A total accessible market for OE estimated by UNIFE at c.eur 39bn in figures for worldwide accessible RoS market for Original Equipment incl. wagons. Source : World Rail Market Study-Forecast 2014 to UNIFE/Roland Berger 55 focus countries. 16

17 WORLDWIDE ACCESSIBLE RoS MARKET PROJECTION BY 2017 Europe West. Europe : +2.7% CAGR* East. Europe: -0.4% CAGR* Asia-Pacific China: +6.2% CAGR* India: +12.2% CAGR* +2.3%* +4.3%* +1.7% CAGR* by 2017 Rest of the World CIS : -2.5% CAGR* MEA : -3.0% CAGR* -2.7%* +2.6%* Americas NAFTA: +3.3% CAGR* South America: +0.9% CAGR* Sustained growth in key historic areas PRASA strong impact on MEA CAGR and CIS affected by geostrategic environment * : CAGR estimated for the period to Source : World Rail Market Study-Forecast 2014 to UNIFE/Roland Berger 55 focus countries. 17

18 WORLDWIDE ACCESSIBLE ROLLING STOCK SERVICES MARKET ACCESSIBLE RoS SERVICES MARKET MAIN TRENDS EUR billions +3.3% CAGR * Increased installed base, as a consequence of large past investment 24,7 30,0 Ageing fleets: refurbishment needs Increased fleet usage: expanding travel offering Technology and complexity: operators looking for support from rail industry experts Improved market accessibility: expected on-going liberalisation process in several mature markets * CAGR: Compound Annual Growth Rate estimated for the period to Source: World Rail Market Study-Forecast 2014 to 2019 UNIFE/Roland Berger. 18

19 FREIGHT TRANSIT RoS MARKET TRENDS BY SEGMENT HIGH & VERY HIGH SPEED UNIFE EUR 39 Bn Accessible Market breakdown 13% UNIFE RoS Accessible Market Outlook +2.4% CAGR* China and North America INTERURBAN 33% +0.8% CAGR* China and Western Europe URBAN 22% +4.0% CAGR* Asia-Pacific and South America LOCOS** 17% +0.9% CAGR* India and North America WAGONS 15% +0.1% CAGR* South America and India * CAGR: Compound Annual Growth Rate estimated for the period to ** Locomotives (freight and transit) are included in the transit segment. Source : World Rail Market Study-Forecast 2014 to UNIFE/Roland Berger. 19

20 GLOBAL ORIGINAL EQUIPMENT MARKET TRANSIT EUR 3.9 Bn accessible market breakdown FREIGHT** EUR 0.4 Bn accessible market Energy & Comfort* 39% Brakes & Safety 42% Access & Mobility* 19% Brakes & Safety 100% *The Information & Safety segment has been transferred into the Energy & Comfort activity starting 1 April **Freight includes only wagons. Locomotives (freight and transit) are included in Transit segment. Source : World Rail Market Study-Forecast 2014 to UNIFE/Roland Berger / Faiveley Transport internal estimates. Excluding Platform doors and gates. 20

21 FOCUS ON GROWING MARKETS CHINA Total Railway Equipment size: EUR 0.8 Bn o/w 50% are estimated accessible Strong market with continued growth Sustained demand for HS trains Steady growth in interurban segment Continuous development of metro segment driven by urbanisation Emerging LRV segment INDIA Total Railway Equipment size: EUR 0.6 Bn o/w 38% are estimated accessible Emerging and promising market New impulses for the Indian economy and rail sector from Authorities Locomotives mega projects expected Fast growth of metro segment NORTH AMERICA Total Railway Equipment size: EUR 0.5 Bn o/w 100% are estimated accessible Dynamic market dominated by freight VHS expected large order (Amtrak) Freight market still pulled by growing trade: Sustained need for new locomotives Wagons market at its highest level in WESTERN EUROPE Railway Equipment size: EUR 1.2 Bn o/w 100% are estimated accessible Cities expansion as key growth driver Significant Interurban projects forecasted in Germany and France Large investment in metro (upgrade plans in London & S-Bahn Berlin) Source : World Rail Market Study-Forecast 2014 to UNIFE/Roland Berger / Faiveley Transport internal estimates. 21

22 2014/15 OUTLOOK

23 2014/15 OUTLOOK Entering the second half of a 2014/15 Year of Transition Main projects going from engineering to series production Transition anticipated to be completed before March 2015 Focus on client satisfaction through quality and operational excellence Pursue deployment of world-class processes and tools through Faiveley Worldwide Excellence (FWE) 2014/15 full-year sales organic growth, between 4% and 7% Large platform deliveries Strong US freight market Strong Chinese market on High Speed pantographs and locomotives brakes 2014/15 full-year Group operating profit* between EUR 94 m and EUR 100 m Extensive strategic plan review on-going * : Group Operating profit (including the share of net income of joint-ventures) 23

24 QUESTIONS & ANSWERS

25 FINANCIAL CALENDAR 28 January /15 Q3 Trading update 28 May /15 Full-Year Results Strategic Plan review 23 July /16 Q1 Trading update 25