2012/2013 ANNUAL RESULTS

Transcription

1 2012/2013 ANNUAL RESULTS

2 2012/2013 KEY FACTS 2

3 2012/13: HIGHLIGHTS Solid order intake in target regions (Europe, China, Russia) A less active global market in 2012 Historic entry into high speed in China (brakes) 9.7% sales growth: 4.5% from the acquisition of Graham-White 3.3% organic growth Strong growth in Services (9% organic) Successful court action against Wabtec ( 12 million) 19% increase in operating profit 25% increase in net profit Acquisition of Schwab Verkehrstechnik(couplers/freight) 3

4 2012/2013 SALES GROWTH Sales ( millions) Order book ( millions) 7.4% CAGR 938 1,055 1,301 1,453 1,707 1,616 Compound annual growth rate of sales: 7.4% over 5 years Compound annual growth rate of order book: 11.5% over 5 years 4%decrease in order book in 2012/13 Original equipment order book equivalent to 29 months of sales Services order book equivalent to 6 months of sales 9.7% sales growth, including 3.3% organic 4

5 CONTINUED EXPANSION STRATEGY UNITED STATES System integration generating higher added value for our customers RUSSIA Customer-focused local organisation CHINA 4 regions selected for their growth potential GERMAN SPEAKING AREA 5

6 2012/13 MAJOR ORDERS (1/2) Upturn confirmed in China Sustained growth in Russia Air conditioning and doors 46 CRH1-250 trains (Bombardier Sifang Transportation) > 15 million Metro Moscow metro air conditioning Repeat orders (Metrowagonmash) > 15 million High speed Brakes Prototypes CRH3A/CRH3G high-speed trains (CRC/TRC) Air conditioning 50 Zefiro250NG trains (Bombardier Sifang Transportation) > 10 million Locomotives EMU Braking systems and pantographs 40 EP20 type locomotives (Transmashholding, Alstom) > 10 million Pantographs and electromechanical parts (Transmashholding) > 5 million Locomotives Brakes 80 locomotives (Datong Framework agreement for 150 locomotives) > 10 million 6

7 2012/13 MAJOR ORDERS (2/2) A very solid investment base in Europe despite the economic crisis Milan Metro Brakes, air conditioning, pantographs, couplers 180 cars (Ansaldo-Breda) > 20 million Coradia regional trains Brakes 70 trains (Alstom) > 15 million E464 locomotives Services Braking system retrofit (Bombardier) > 5 million Lille Metro Platform screen doors - 18 stations Brakes - 27 trains (Alstom) > 15 million Paris RER Air conditioning, brakes, access doors -70 trains (Alstom, Bombardier) > 15 million Frankfurt regional trains Brakes 90 ET430 trains (Bombardier) > 5 million Regional trains Access door retrofit ET423 trains (Deutsche Bahn) < 5 million Coradia regional trains Air conditioning (Alstom) > 5 million Regional trains On-board doors 112 Thameslink trains (Siemens) > 20 million High-speed trains On-board door retrofit Eurostar trains > 5 million 7

8 FINANCIAL RESULTS

9 SALES ANALYSIS BY ACTIVITY 59% Original Equipment (2011/12: 64%) 2012/ % Brakes & Safety 17% Access & Information 22% Energy & Comfort Original Equipment: stable sales on a likefor-like basis Strong growth in the Energy & Comfort activity Decline in Brakes & Safety due to the US freight market slowdown and a decrease in deliveries of locomotives in China 41 % After-Market (2011/12: 36%) 41% Services Services: 22% growth, including 9% organic Buoyant French and Italian markets Successful commercial initiatives to extend the service range offering Acquisition of Graham-White 9

10 SALES ANALYSIS BY GEOGRAPHIC REGION 2012/ % Americas 27% Asia Pacific Americas: +4% Asia-Pacific: +5% ORGANIC GROWTH BY REGION Growth in the Passenger segment, offsetting the decline in freight Success of Services through Graham White Significant rise in project deliveries in Russia Growth in India and South-East Asia Stable sales in China 57% Europe Europe: +3% Very good level of business activity in Italy Increase in project deliveries, in particular in France, the UK and Benelux 10

11 WABTEC COURT TRIAL Trial against Wabtec won on 6/02/2013 in the New York Court of Appeal Wabtec found guilty of unfair competition, trade secret misappropriation, and unjust enrichment Faiveley Transport s intellectual property on brake cylinders and actuators USD 15.8 million awarded in damages and interests ( 12 million) Net proceeds of 10 million after legal costs Positive impact of 6.2 million on operating profit for the financial year 4.5 million recognised under gross profit (compensation for business loss) 1.7 million under other income (refund of costs previously incurred) 3.6 million balance to be recognised over the next two financial years Demonstration of Faiveley Transport s ability to defend its intellectual property 11

12 INCOME STATEMENT(1/2) ( millions) 2012/ /12 % change Sales % Gross profit % As % of sales 25.1% 26.0% Sales, general and administrative costs (120.3) (118.6) 1.4% Research costs (13.4) (11.1) 20.3% Other income and expenses (3.5) (10.8) Operating Profit (EBIT) % As % of sales 11.2% 10.4% Positive impact of 6.2 million from the Wabtec trial ( 4.5 million in gross profit, 1.7 million in other income) Gross margin decrease by 0.9 pp Improved harmonization in expense allocation between fixed costs and cost of sales Loss provision on the RER Brussels project due to technical problems Start of deliveries on major new platforms incurring significant start-up engineering costs and, for some, development issues Controlled sales, general and administrative costs 2% decrease on a like-for-like basis, due to cost reduction plans 19% increase in Operating Profit 12

13 INCOME STATEMENT (2/2) ( millions) 2012/ /2012 % change Operating Profit (EBIT) % Net financial expense (13.6) (15.2) Income tax (33.9) (26.9) Minority interests (4.3) (3.7) Net profit Group share % As % of sales 6.0% 5.3% - Earnings per share (EPS)- Net % 1.6 million reduction in financial charges Decrease in the cost of euro-denominated debt offsetting interest on the Graham-White acquisition debt The balance was due to foreign exchange effects and derivative instruments Effective tax rate stable at 34.7% In France, new tax on dividends, and interest partly non-deductible 25% increase in Net Profit 13

14 2012/2013 WORKING CAPITAL REQUIREMENT ( millions) 2012/ /2012 % change Inventories Work-in-Progress on Projects Trade receivables Downpayments (121) (125) +4 Trade payables (176) (163) -13 Other current assets and liabilities (49) (62) +13 Working Capital Requirement before factoring Factoring of receivables (93) (93) - Working Capital Requirement after factoring Working Capital Requirement almost stable excluding accrued income from Wabtec Accrued income from Wabtec classified under other current assets( 12 million) 4 million increase in WCR excluding this effect Continued capitalisation of engineering costs of new platforms ( 7 million) 14

15 2012/2013 CASH FLOW STATEMENT ( millions) 2012/ /12 Net profit Minority interests 4 4 Amortisation and depreciation charges Change in provision charges and other non-cash items 12 5 Self-financing capacity Change in WCR (20) (4) Capital expenditure (20) (17) Free cash flow million increase in self-financing capacity Controlled industrial and IT capital expenditure (2% of sales) Good level of cash flow generation at 51 million 15

16 FINANCIAL POSITION ( millions) 2012/ /2012 % change Financial liabilities (72) Financial receivables Cash and cash equivalents (175) (210) 35 Restatement of treasury shares (15) (17) 2 Net financial debt (34) Net financial debt / EBITDA ratio 1.5x 1.8x Equity Net financial debt / Equity ratio 31% 41% 34 million decrease in financial debt Clear improvement in Net Debt / EBITDA ratio, standing at 1.5x 53 million increase in equity 16

17 DIVIDEND AND SHAREHOLDERS PROPOSED DIVIDEND SHAREHOLDING STRUCTURE Dividend of 0.95 per share proposed to the Annual General Meeting of 12 September % Free float 52.6% Faiveley family 12% increase in dividend Pay-out ratio of 23%, in line with the Group s policy (20%-25%) 1.0% Management and staff 2.6% Treasury shares 17

18 FINANCIAL SUMMARY 9.7% sales growth, including 3.3% organic growth 6 million positive impact of the Wabtec trial in the financial year Controlled fixed costs thanks to cost reduction plans 19% increase in operating profit and 25% increase in net profit Debt reduction and stronger balance sheet position 12% increase in dividend 18

19 SCHWAB, A STRATEGIC ACQUISITION 19

20 PRESENTATION OF SCHWAB VERKEHRSTECHNIK AG Full acquisition of Schwab VerkehrstechnikAG on 17 May 2013 BRAKES & SAFETY Brakes Couplers Leading player in couplers and buffers Operating in both the freight and passenger transport markets 2012 sales: 20 million Good level of profitability 42 employees located in Schaffhausen, Switzerland 20

21 ACQUISITION RATIONALE BRAKES & SAFETY Brakes Couplers 1 2 Stronger position in the coupler market A key system targeting all Faiveley Transport s market segments Stronger position in Switzerland A key country in the Group s development strategy 3 New technology Buffers, a shock-absorption solution 4 Sales and technical synergies 21

22 SIGNIFICANT EXPANSION IN THE COUPLER MARKET The 2012 coupler market by segment The 2012 coupler market by region Competitive environment Passengers 44% Voith 18% BRAKES & SAFETY Brakes Couplers Dellner 10% Faiveley + Schwab 8% Freight 56% Other 60% Wabtec 4% A global market worth 550 million Sources: UNIFE, Company 22

23 ASIA, A MARKET WITH HUGE POTENTIAL 23

24 CHINA, UPTURN CONFIRMED Continued investment in rail confirmed Restructuring of the former Ministry of Railway (MoR): Administrative duties entrusted to the Ministry of Transport Safety at work, service quality, quality of rail projects, etc. Sales and operational duties entrusted to China Railway Corporation, a state company Infrastructure, investment and other operations, etc.. Regionalisation of decision-making 24

25 REBOUND IN LOCOMOTIVE ORDERS Market: 800-1,000 locomotives per year (approx. 200 in 2012) 3 builders: ZELC (CSR), Dalian (CNR), Datong (CNR) 3 brake suppliers: Faiveley, Knorr-Bremse and C.A.R.S Conversion of orders into sales in 6 to 12 months maximum Faiveley s 2013 entry into Datong and Dalian s new generation 8-axle locomotives Success of market share gains strategy initiated in 2007 Approximately 35% market share for Faiveley Transport Source: Company 25

26 HIGH SPEED, A MAJOR OPPORTUNITY Reaffirmed policy of developing high speed: Speed limitation (250 km/h) development of new platforms Improved safety Potential market: 150 to 200 trains per year from 2014 on Strengthening Faiveley Transport s position: Former platforms speed > 300 km/h Presence in doors and pantographs Presence in air conditioning Absent in brakes New platforms speed < 300 km/h Qualified in brakes on prototypes of 2 platforms Qualified in air conditioning Qualified in doors and pantographs Source: Company 26

27 FAIVELEY, LEADER IN INDIA Established in India since million in sales Major customers: Indian Railways New Delhi Hosur Bombardier India Alstom India Metro authorities Nearly 500 employees Faiveley Transport sites Source: Company 27

28 MAP OF THE INDIAN RAILWAY NETWORK A substantial installed base in 2012 Almost 10,000 locomotives 300,000 cars (freight + passengers) Analysis of railway cars market Freight 76% Passengers 24% Indian national network 115,000 km of railway, of which 49,500 km electrified 1.4 million employees 7,500 stations Sources: UNIFE, Company 28

29 INDIAN METROS, NUMEROUS PROJECTS UNDER DEVELOPMENT Faiveley s strong presence in metros Jaipur Metro Pantographs Delhi Metro Brakes, HVAC, doors, pantographs, PSDs Hyderabad Metro Doors, pantographs Ambitious metro investment programme (a network for each city with a population > 3 million) Faiveley -leader or major player in doors, pantographs, brakes, air conditioning and platform screen doors Bangalore Metro Doors Chennai Metro Brakes, doors, couplers, pantographs, PSDs Source: Company 29

30 OUTLOOK

31 OUTLOOK Commercial activity growing, with major projects in Europe and emerging countries Organic growth ranging from 0% to 3% for 2013/14: Moderate growth in Europe: Start of serial deliveries in certain major programmes won by the Group over the past few years Asia Pacific, stable sales overall: Russia Consolidation after two years of very strong growth China Acceleration of locomotive deliveries offsetting the decline in metros India Significant growth due to the delivery of metro equipment Americas: Freight market expected to reach almost 35,000 carriages per year Continued development initiatives (locomotives and services) Continued growth of services Slight increase in operating margin 31

32 SHAREHOLDERS AGENDA 25 July /14 Q1 Sales 12 September 2013 Annual General Meeting 25 November /14 Half-Year Sales and Results 32