talgo.com Introducing Talgo

Transcription

1 talgo.com Introducing Talgo 0

2 Table of content 1. Global railway rolling stock market 2. Company overview 3. The Talgo proposition: Products and Technology 4. Business Model 5. Financial Overview 6. Four pillar development strategy 7. Appendix 1

3 Talgo positioning in the market The railway industry comprises four main activity areas: Infrastructure: tracks, stations, electrical facilities, equipment for manufacturing and maintenance, etc. Signaling: Control, management and security systems. Rolling stock: trains (traction units and coaches) and their subcomponents (wheels, axles, breaks, etc). Services: includes mainly the maintenance services provided after-sales, consulting and engineering. The rolling stock sector for passenger transportation is divided by different segments according to the product offered, with different levels competition, operational margins and work load implied. Talgo s activity is mainly focused on the high pyramid segments where the product mix offered is narrow and the demand is not recurrent, resulting on a lumpiness business with limited competitions and high margins. Rolling stock segments Measuring market levels Competition Margins Contracts Vol. Talgo Presence VHS > 300 km/h Very low Very High Very Low Long distance High Speed (HS) > 250 km/h Low High Low Passenger coaches km/h Medium Medium Medium Medium distance Regional trains Commuters km/h Medium High Medium Medium / Low High Very High Urban rails Metros/undergrounds and light rail and trams Very high Very low Very High and UNIFE

4 Rolling Stock Talgo s addressable market niche products into selected sectors Favourable long-term underlying trends Opportunities identified over next four years Demand for mobility Urbanization and population growth Emerging market growth Market Liberalization Replacement demand Environmental concerns 65 b 14% 9.4 b UNIFE accesible market Talgo Pipeline Product segment Description Talgo s products Identified pipeline 1 AVRIL VHS Trains operating at more than 300m/h Talgo b HS Trains operating at more than 250km/h Talgo 250 Natural tilting passenger coaches Passenger railway vehicles for day and night services Night & day Train tilting cars 2.4 b Regional commuter trains Electric and diesel multiple units that operate at speeds 120 km/h km/h Talgo regional Commuter trains 3.0 b (1) Talgo s pipeline based on selected tenders potentially to be involved in, from the total accessible market., UNIFE 3

5 Table of content 1. Global railway rolling stock market 2. Company overview 3. The Talgo proposition: Products and Technology 4. Business Model 5. Financial Overview 6. Four pillar development strategy 7. Appendix 4

6 Talgo Spain-based pure play global leader in manufacturing and maintenance of VHS / HS and selected segments Innovative solutions for niche rolling stock markets Talgo is a leading specialized rolling stock engineering Company focused on designing, manufacturing and servicing technologically differentiated, fast, lightweight trains. Distinctive suite of proprietary technologies developed over several decades. A proven strategy of leveraging innovative technologies into niche markets (VHS, HS and natural tilting passenger coaches) and new geographies (Saudi Arabia and Kazakhstan). #1 supplier in the HS¹ and regional train² rail markets in Spain³. Expanding addressable markets with new products in the VHS and regional commuter train segments. Diversified net turnover mix Order backlog evolution ( b) (1) Net turnover by business line (average ) Net turnover by geography (2017) 9.0x x 10.1x 11.5x 9.6x 4.5x x 3.1 Backlog / Rev. Backlog 7% m 30% 24% 32% 39% 67% 35% 23% 24% 49% 61% 61% 33% 65% 70% 76% 77% 76% 51% Manufacturing Maintenance services Maintenance equipment & others Spain International International Spain Notes (1) >250 km/h as defined by Renfe (2) >220 km/h intercity as defined by Renfe (3) Largest European high speed market and 2 nd largest worldwide (4) In 2017 includes contracts awarded not signed at the year end (Spanish VHS maintenance contract for a total value for Talgo amounting 317 m.) 5

7 Defined phases of business development onwards 1 Technological development & product endorsement 2 VHS capabilities established 3 Internationalisation / Product and capacity expansion 4 Leveraging capabilities into expanding addressable markets Development of proprietary technology (natural tilting, independent wheels and variable gauge) First VHS contract award for 16 trains in Spain (2001) Currently delivered and maintaining a fleet of 90 Talgo VHS / HS trains in Spain Successful internationalisation strategy since 2007 Selective product development leveraging on tech. advantages Facilities expansion Efficient delivery of current backlog Further development of existing geographies and entry into new markets (LatAm/Africa/India) New product development and penetration (e.g. Regional Commuter trains) Balanced net turnover profile through global maintenance services 6

8 Addressing market trends and customer needs on a global basis Milwaukee (not owned) Tulpar Talgo (not owned) Rivabellosa Las Matas II 7

9 Investment Highlights Backlog by geography 57% Spain 43% International VHS market share Spain 40% 60% Talgo Other 1 Spain-based pure play global leader high speed segments 2 Unique proprietary technologies underpin innovative and costeffective products Technology as differentiating factor: +20% lighter than competitors trains High capacity due to the exclusively wider car body c.25% higher speed on curves for non HS tracks Fully automated gauge compatibility Low floor => Best accessibility in the market 19,4% Talgo EBIT margin 8,2% Main Peers 3 Constant track-record of delivering best-inclass operating margins and returns 4 Resilient business model based on assetlight operations to reach high efficiency and productivity ratios Lean asset-light model based on design/engineering and outsourcing Talgo s involvement in the rolling stock value chain Design Manufacturing Commissioning Maintenance 2016 Leverage benchmark (NFD/Ebitda) 1,20 x 0,3 x 0,39 x Talgo Alstom CAF Avg: 0.6x 5 Financial profile in line with peers and a smooth debt maturity profile 6 Attractive growth opportunities in both new geographies and products 65 m UNIFE Acces. Market c.14% addressable market 9.4 m Talgo's pipeline Pipeline range Continued internationalisation Selective product diversification Expansion of mainten. operations c.100% Talgo fleet maintained since 1952 Additional third party cars also maintained by Talgo 3% 71% Manufactur. Maint. Equip. 26% Talgo s Backlog (2016) Maintenan. 7 8 Strong performance Experienced with robust backlog management team with supported by a longterm and stable a defined strategy and strong track-record maintenance activity +140 years of combined experience in the industry +20 years on average in Talgo Supported by an industry-leading Board, including the former CEOs of Alstom Transport and Dutch Railways and the former Chairman of MotivePower Industires Source: Most recent reported available figures 8

10 Table of content 1. Global railway rolling stock market 2. Company overview 3. The Talgo proposition: Products and Technology I. Product offering II. Talgo Technology III. Case Studies: Spain, Arabia, Kazakhstan 4. Business Model 5. Financial Overview 6. Four pillar development strategy 7. Appendix 9

11 Services Rolling stock I. A dedicated product offering for each target market Description Talgo s presence Talgo products Key historical markets Avril: Trains to be operated at km/h Established AVRIL 1 To be marketed worldwide VHS T-350 Trains operating at km/h Established Talgo 350 Spain / Saudi Arabia HS T-250: Trains operating at km/h Established Talgo 250 (Intercity) Spain / Uzbekistan Natural tilting passenger coaches Passenger railway vehicles for day and night services Established Night & day train tilting cars Spain / United States / Kazakhstan / Russia Regional Commuter trains Electric and diesel multiple units that operate at speeds between 120 km/h and 160 km/h Nascent Talgo Commuter trains To be marketed selectively Maintenance services Heavy and light maintenance operations Established Maintenance of Talgo s and 3 rd party trains Spain, Germany, Kazakhstan, Saudi Arabia, Russia, USA, Uzbekistan Notes Pending final certification in Spain 10

12 II. Unique proprietary technologies underpin innovative and costeffective products and services (I) 1 Talgo Differentiation Aluminium-based lightweight construction Infrastructure Operations Maintenance Unique of Talgo 2 Natural tilting system 3 Articulated and mono axle 4 Wide body, short coach concept / improved accessibility 5 Automatic variable gauge system 6 Independent guided wheels 7 Hybrid Technology Lower investment requirement Higher energy efficiency, reduced journey time and increased capacity Reduced track and train maintenance Unique technology adapted to client needs 11

13 II. Unique proprietary technologies underpin innovative and costeffective products and services (II) 1 Lightweight construction 2 Natural (passive) tilting system Competitive advantages: Talgo trains c.20% lighter than competitors trains with less number of axles. Competitive advantages: Zero maintenance and manufacturing costs. Maximum reliability due to its simplicity. Benefits: Lower costs. Higher acceleration. Energy efficiency. Benefits: c.25% higher speed on curves for non HS tracks. No additional capex on infrastructures. Improve passenger comfort. Combination of lightweight construction and natural (passive) tilting systems provides a significant reduction to travel times without additional capex requirements for infrastructure. 12

14 II. Unique proprietary technologies underpin innovative and costeffective products and services (III) 3 Articulated union and mono axle 4 Wide body, short coach concept Competitive advantages: Lower track interaction with less aerodynamic drag. Competitive advantages: Low floor => Best accessibility in the market Access every 12 mt. vs. 24 mt. Benefits: High passive security. Guidance facility. Low maintenance requirements and higher reliability. Benefits: Low floor implies a stop time at station reduction of c.20%. Social impact: best accessibility for disable people. Maximum use of track gauge. Comfort increase. Unique design concept reduces track interaction, maintenance requirements whilst providing superior passenger accessibility and comfort 13

15 II. Unique proprietary technologies underpin innovative and costeffective products and services (IV) CAMBIO 5 DE Automatic ANCHO variable PARA RODALES gauge system 6 Independent guided wheels Competitive advantages: Fully automated gauge compatibility. Competitive advantages: High track adaptability. Benefits: Capability to operate through both national and international tracks (with variable gauge tracks). Benefits: Increases comfort and decreases noise. High security, avoiding derailments. Independent wheels with guided axles, together with our variable gauge systems significantly increases product versatility and security 14

16 III. Case studies: Spain VHS Scope of the contract: manufacture of 30 VHS trains, of which 15 have variable gauge system. The contract also includes the maintenance for a period of 30 years. According to the public results of the tender, Talgo offer reached the highest technical score and offered the most competitive economic package thanks to highly attractive maintenance proposition given expected efficiencies and economies of scale to be reached in the project (90 HS trains already in operation in Spain). The first public tender in which Talgo offered its new Avril VHS train (next generation of the T-350), which has been developed during recent years and contains the most advance technology of the industry. o o o Higher power while lowering energy consumption, being the lightest train on the market. Wider coach offering higher capacity in one floor (3+2 seats). Technical advances resulting in high reliability and optimized maintenance costs. Exterior design in Renfe offer Tender paper (minimum) Talgo Final Award First 15 trains 320 km/h 330 km/h Optional 15 trains 320 km/h 330 km/h Var. gauge Interior 3+2 design in Renfe offer Fleet availability % Number of seats 85% 99.09% Price-Value 2.6 b (máximum) 1.3 b Price / seat

17 III. Case studies: Kazakhstan Main project milestones Dec-2001: A Talgo 6-car modernized natural tilting train is delivered to Kazakhstan Temir Zholy (KTZ). Jul-2010: A Joint Venture named Tulpar Talgo is formed between KTZ and Talgo for the local manufacturing of passenger cars in Kazakhstan. Nov 2010: First order of 436 Talgo passenger coaches to Tulpar is placed by KTZ. Dec-2011: Tulpar Talgo new manufacturing plant opening in Astana. 2013: New contract of 603 cars adapted to the Russian market. Aktobe maintenance center Footprint Tulpar Manufacturing plant Project benefits Start date Route Almaty- Petropavlovsk Astaná- Aktobe Astana- Atyrau Almaty-Atyrau Astana- Kyzylorda Aktobe-Almaty Astana- Leninogorsk Almaty- Zachshita Distance (km) 1,834 1,411 1,839 2,695 1,931 2,258 1,284 1,081 Hours with current fleet Hours with new Talgo fleet Time saving (%) (37.6)% (47.1)% (44.2)% (39.6)% (44.8)% (35.0)% (57.4)% (54.3)% Talgo s natural tilting technology has reduced travel times in Kazakhstan by c.45% using existing infrastructure and without the need for further investments 16

18 III. Case studies: Saudi Arabia Main project milestones October Spanish consortium wins the largest rail contract awarded in recent times, the "TRAIN OF PILGRIMS. Spanish Consortium is formed by Talgo and other 12 companies. The project is based on Talgo technology and consolidates the company as a world leader in the export of the High Speed Spanish model. The Haramain High Speed Railway will be a high-speed line of 450 miles, linking the cities of Medina and Mecca. Manufactured trains are 100% customized with exclusive design. Image gallery Footprint Saudí Arabia Saudí Arabia 17

19 III. Recent product development: AVRIL AVRIL s differentiating technology AVRIL s superior competitive positioning Velaro T350-Gen II AGV AVRIL Status In circulation In circulation In circulation In production Optional variable gauge system Wide body, short coach Speed (km / h) # Seats (1) Floor height (mm) (2) seats configuration Easy accessibility Weight (tons) Talgo s technology leads to lower weight, better accessibility, lower attrition, greater train capacity and comparable speeds at significantly lower life cycle costs, providing significant benefits to the operator Notes (1) Based on a 100% Economy class train, for comparison purposes (2) Over 760mm platform (3) As of December

20 III. Ongoing product development: Regional and commuter (EMU) Strategic rationale Talgo Regional Commuter train offering Talgo s technology can be directly applied and transferred to the EMU segment Accessibility / low floor Shorter dwell time Large market with high growth potential and recurring number of tenders Emerging market needs for this product segment Low maintenance cost Energy efficient Recurrent maintenance contracts and limited capex requirements High capacity and modularity concept 19

21 Table of content 1. Global railway rolling stock market 2. Company overview 3. The Talgo proposition: Products and Technology 4. Business Model 5. Financial Overview 6. Four pillar development strategy 7. Appendix 20

22 Business model overview Leading provider in maintenance equipment Asset-light manufacturing model Manufacturing flexibility Integrated business lines Long term maintenance services Productivity and efficiency EBIT margin EBIT / Employee ( k) 19,4% 8,2% 39,8 16,6 Talgo Aver. Main Peers Talgo Aver. Main Peers Source: Most recent reported available figures 21

23 Asset-light manufacturing model Rolling stock cycle Design and development Manufacturing components Assembling Commissioning Maintenance Services Talgo s involvement Asset intensity In-house Designing, testing activities and commissioning High added value and security components Outsourced All other components: interior parts, air conditioning, lighting, coupling, break systems, WC systems Lean asset-light business model manufacturing only critical and high added value components in-house 22

24 Flexible, productive and efficient manufacturing business model Flexibility Productivity and Efficiency Ability to adapt to volume requirements Maintain ability to increase capacity utilisation through additional workforce shifts and additional working days Only 35% of costs are fixed Talgo employees 2,154 people across all divisions and geographies 27% are engineers which reflects the Group s design and technical profile Our production sites offer good economies of scale and scope for further efficiency improvements Cost Structure Employee base Rev. / Prod. sites ( m) 17% 35% 35% 27% % 65% 59% 14% Employee Exp. Procurement costs OPEX Fixed Variable Engineers Other university grad. Others Talgo Aver. Main Peers Large element of cost structure outsourced providing resilience to variations in activity levels Active talent management which gives a highly productive workforce and greater profitability 23

25 Long term maintenance services Integrated business lines Almost 100% Talgo fleet maintained since 1952 with services operated at customer premises High qualified personnel providing services that includes both corrective and preventive maintenance Over 60 years of expertise in the whole life cycle of rolling stock, applied to continuous improvement in quality and reliability and therefore value proposition Manufacturing Maintenance services 2-3 years years Rolling stock life cycle Vehicles maintained Manufacturing CAGR: +4.6% 1,974 2,288 2,397 2,443 2,717 Feed-back On board Operation Know-how Maintenance c.100% Talgo fleet maintained since 1952 with services operated at customer premises 24

26 Overhaul and leading provider of maintenance equipment Heavy maintenance - Overhaul For 65 years Talgo has been the sole maintainer of the rolling stock it has manufactured This lengthy experience has allowed us to gain an invaluable expertise and to export the knowledge to new areas and segments Maintenance equipment Equipment sold in 44 countries and global market share reaching 15-20%, Talgo is a company of reference in the sector 6% of Group revenues but further opportunity for return on industry expertise We are already undertaking our first project to overhaul a metropolitan heavy rail fleet in Los Angeles (USA): up to 74 vehicles Overhaul and refurbishment services by Talgo will gain relevance in the future as part of our ongoing diversification strategy Lathe Measure Keeps the rolling assembly entire fleet in mint condition by lathing wheels on the move Checks the geometry and the integrity of the wheels Talgo emerges as a reliable partner to perform renewal, overhaul and refurbishment programs Shunt Empower maintenance operations with shunting devices designed to move vehicles easily and cheaply 25

27 Table of content 1. Global railway rolling stock market 2. Company overview 3. The Talgo proposition: Products and Technology 4. Business Model 5. Financial Overview 6. Four pillar development strategy 7. Appendix 26

28 Backlog and order intake Backlog evolution as of December 2017 ( m) Order intake evolution ( m) Times LTM net turnover 4.5x 7.1x 8.0x 5.2x 1.3x 2.1x 0.9x 0.1x 0.1x 1.8x 2.6x Book-tobill ratio 2,604 2, , Awarded pending to be signed 413 (1) Average VHS Mainten. (1) Total Awarded Total Backlog 2017 by business line 3% 26% 2,783 m 71% Order intake in 2017 reached 701 m, out of which 57% is from international projects, mainly from Saudi Arabia and Kazakhstan. In the other hand, 76% of current order book corresponds to maintenance services, which ensures the cash generation capacity of the Company on a long term basis. Manufacturing Equipment & Other Maintenance Services 27

29 Revenues and margins performance Net turnover ( m) Adj. Ebitda ( m) and Adj. Ebitda margin (%) 520,7 579,8 120,5 113,3 326,7 384,3 384, ,6 21,7% 23,4% 23,1% 19,6% 22,8% Adj. EBITDA Adj. EBITDA margin Net Turnover by business line (avg ) 6% Net Turnover reached 384 m in 2017, 34% below 2016 driven by lower manufacturing activity in accordance with manufacturing schedules of executed projects: 26% Manufacturing Equipment & Other 68% Maintenance Services o Execution of contracted backlog Projects execution on budget and meeting schedules set with the customers. o Increasing maintenance services, providing recurrent and stable cash generation. o Commercialization of maintenance equipment 28

30 Working Capital management Working Capital Working Capital ( m) (100) (84.6) Cash flow recovery to continue in 2018 as final testing and delivery stages are met (200) Working Capital FCF Cash cycle can vary significantly depending on the size of each contract and agreed milestones. Working capital increases in 2015 and 2016 already started to reverse in 2017 and is expected to continue in 2018, driven by the expected delivery process in our current key manufacturing projects (mainly Mecca-Medina project). Strong cash outflow registered during 2015 and 2016 was in-line with Company expectations: o Accounts receivable and payables: main drivers of working capital increase, mainly due to the increase of the manufacturing activity. o Advances received: decrease driven by the manufacturing project stages. Net cash inflows expected for 2018 will continue reducing the working capital and the financial net debt. Source Company information 29

31 Financing structure overview NFD / Ebitda Net Financial Debt evolution ( m) n.m. n.m. 1.0x 1.7x 0.3x x Net Debt /EBITDA m Credit entities payable Financial lease creditors Gross Financial Debt GFD / Adj. EBITDA 0.63x 0.60x 1.20x 2.03x 3.09x Cash & cash equivalents (96) (88) (22) (37) (241) Net Financial Debt (51) (34) NFD / Adj. EBITDA n.m. n.m. 1.02x 1.7x 0.3x Strong financing capacity will allow the Company to finance current and forthcoming projects. Gross bank debt amounted 271 m and available credit lines 135 m (undrawn) as of December Smooth maturity profile (Only 41 m of debt maturity in 2018/2019), Strong FCF is expected to be generated in the same period, providing a comfortable debt profile. Additional other non-current liabilities comprise mainly reimbursable advances with Spanish Public Administration entities related with R&D, and are expected to remain constant. m FY2017 Long term debt with bullet maturities 166 Long term debt with annual repayments 80 European Investment Bank 24 Accrued debt interests 1 Total banking debt 271 Source Company information 30

32 Table of content 1. Global railway rolling stock market 2. Company overview 3. The Talgo proposition: Products and Technology 4. Business Model 5. Financial Overview 6. Four pillar development strategy 7. Appendix 31

33 4 pillar development strategy Focus Approach Benefits Efficient delivery of current contract book Further development of existing geographies and entry into new markets New product development and penetration Further develop strategic maintenance business On time/on budget delivery of backlog Ongoing improvement in manufacturing efficiency. Utilisation of existing flexible capacity and outsourcing. Natural tilting passenger coaches Focus on customer/geographies with infrastructure investment restrictions (Asia, Africa, LatAm, India). VHS & HS Leverage the success of recent highprofile projects into new geographies with similar drivers. Selective and disciplined tender strategy for new projects. Ongoing R&D (Avril & EMU). Regional commuter trains segment development. Leverage on best-in-class record of maintenance (100% of installed base & average contract >10yrs). Develop third-party maintenance services. Preservation of industry-leading margins. Enhance market profile. Open large and growing addressable markets. Broaden customer turnover base. Strengthen the penetration of new VHS products. Preserve innovation advantage. Lower product operating costs. Broader range of growth opportunities. Maintain balanced and visible turnover profile. 32

34 Table of content 1. Global railway rolling stock market 2. Company overview 3. The Talgo proposition: Products and Technology 4. Business Model 5. Financial Overview 6. Four pillar development strategy 7. Appendix 33

35 Appendix 4. Profit & Loss Profit & Loss Account ( m) % Change Total net turnover (33.7%) Other income % Procurement costs (146.7) (327.7) (264.7) (55.3%) Employee welfare expenses (104.1) (96.9) (98.7) 7.4% Other operating expenses (53.3) (50.0) (59.8) 6.4% EBITDA (22.5%) % margin 21.7% 18.6% 20.0% Other adjustments (25.1%) IPO costs & Shares for Employees n.a. Management Incentive Plan n.a. Adjusted EBITDA (22.7%) % margin 22.8% 19.5% 23.1% D&A (inc. depreciation provisions) (24.2) (20.3) (24.1) 19.4% EBIT (32.3%) % Ebit margin 15.4% 15.1% 15.4% IPO costs & Shares for Employees n.a. Other adjustments (25.1%) Management Incentive Plan n.a. AVRIL Amortization % Adjusted EBIT (27.1%) % margin 19.4% 17.7% 20.0% Net financial expenses (9.4) (6.9) (5.0) 35.8% Profit before tax (38.1%) Tax (15.7) (18.9) (15.5) (16.9%) Profit for the year (44.5%) Adjusted Profit for the year (37.9%) 34

36 Appendix 5. Balance Sheet (1) Balance Sheet ( m) Dec 2017 Dec 2016 Dec 2015 FIXED ASSETS Tangible + intangible assets Goodwill Other long term assets CURRENT ASSETS Inventories Non- current assets held for sale Accounts receivable Other current assets Cash & cash equivalents TOTAL ASSETS Balance Sheet ( m) Dec 2017 Dec 2016 Dec 2015 SHAREHOLDERS EQUITY Capital Stock Share premium Consolidated reserves Retained earnings Other equity instruments NON-CURRENT LIABILITIES: Debt with credit institutions Provisions Other financial liabilities Other long-term debts CURRENT LIABILITIES: Accounts payable Debt with credit institutions Other financial liabilities Provisions for other liabilities and other TOTAL S. EQUITY + LIABILITIES

37 Appendix 5. Balance Sheet (2) Working Capital ( m) Dec 2017 Dec 2016 Dec 2015 Inventories Non current assets hed for sale Account trade receivables Other current assets Trade and other payables (107.1) (162.5) (210.5) Advances received (81.8) (11.5) (20.5) Provisions for other liabilities and other (5.1) (4.5) (3.5) Working Capital Financial debt ( m) Dec 2017 Dec 2016 Dec Long term financial liabilities short term financial liabilities Cash & cash equivalents (243.2) (38.8) (21.8) Net financial debt Adjusted EBITDA LTM Net financial debt / Adj EBITDA (LTM)

38 Appendix 6. Cash Flow Statement Cash flow statement ( m) % Change million Net income (44.5%) Corporate income tax (16.9%) Depreciation & Amortization % Financial income/financial expenses % Other result adjustments (4.5) (3.5) % Changes in working capital (146.8) (118.5) n.a. Operating cashflows after changes in WC (42.4) (5.4) n.a. Net interest expenses (9.7) (6.1) (5.3) 59.3% Provision and pension payments n.a. Income tax paid (7.4) (9.3) (9.8) (20.4%) Other collection and payments n.a. Net cash flows from operating activities (57.8) (20.4) n.a. Investments (11.5) (9.0) (10.3) 27.7% Changes in financial assets and liablities (49.4%) Purchase of non-controlling interests (23.0) n.a. Dividends payments (11.3) 0.0 (107.0) n.a. Net cash flows from financing activities (35.4) (62.9%) Net variation in cash & cash eq (66.1) % Cash and cash equivalents BoP Cash and cash equivalents EoP

39 Disclaimer This presentation has been prepared and issued by Talgo, S.A. (the Company ) for the sole purpose expressed therein. Therefore, neither this presentation nor any of the information contained herein constitutes an offer sale or exchange of securities, invitation to purchase or sale shares of the Company or its subsidiaries or any advice or recommendation with respect to such securities. The content of this presentation is purely for information purposes and the statements it contains may reflect certain forward-looking statements, expectations and forecasts about the Company and/or its subsidiaries at the time of its elaboration. These expectations and forecasts are not in themselves guarantees of future performance as they are subject to risks, uncertainties and other important factors beyond the control of the Company and/or its subsidiaries that could result in final results materially differing from those contained in these statements. This document contains information that has not been audited. In this sense, this information is subject to, and must be read in conjunction with, all other publicly available information. This disclaimer should be taken into consideration by all the individuals or entities to whom this document is targeted and by those who consider that they have to make decisions or issue opinions related to securities issued by the Company. In general, neither the Company or any of its subsidiaries, nor their directors, representatives, associates, subsidiaries, managers, partners, employees or advisors accept any responsibility for this information, the accuracy of the estimations contained herein or unauthorized use of the same. The Company expressly declare that is not obligated to updated or revise such information and/or estimations. 38

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