Professional Documents
Culture Documents
Table of Contents
1.
1H 2015 Highlights
2.
Backlog Execution
3.
4.
Commercial Activity
5.
6.
Cash Flow
7.
8.
9.
Outlook
Balance Sheet
1. 1H 2015 Highlights
Successful execution of backlog with all projects at or above expected margins and on time
Positive evolution of Mecca-Medina project both in terms of product delivery and train testing
Adj. EBIT 48.7 mm; +57.3% vs. 1H14 (22.8% margin vs. 17.3% in 1H14)
Company expects to achieve EBIT target for 2015 with higher than expected margin due to cost savings
achieved in fully executed manufacturing projects
Backlog of 3.5 bn
2. Backlog Execution
Key manufacturing and maintenance projects being executed on time and budget
Benefit / Solution
Update
MeccaMedina
(Manufacturing)
Kazakhstan
(Manufacturing)
Russia
(Manufacturing)
Maintenance
Transaction
Strategic
Rationale
Recent
Developments
Aktobe,
New maintenance center
Footprint
Tulpar,
Manufacturing plant
Following the reassessment of their rolling stock needs, on July 15th 2015 Saudi Railways
Organization (SRO) communicated to Talgo its decision not to proceed with the signature of the
$ 201 mn Damman-Riyadh contract which was awarded in February 2015
SRO will delay any final decision regarding a new tender for this order until their internal analysis
is finalized
In a press release issued at the time of the announcement of its decision on the reassessment of
rolling stock needs (http://www.saudirailways.org/portal/page/portal/PRTS/root/Article_05), SRO
emphasized its appreciation for Talgo, considering the company as one of the global
manufacturers, while praising its technologies and the role of Talgo as manufacturer of the train
sets for the Mecca-Medina project
The execution of the Damman-Riyadh order was not expected to have a material impact on
Talgos P&L until 2017 onwards
SRO remains as key strategic partner for Talgo through the execution of the flagship
Mecca-Medina project and we expect to continue our successful relationship with future
new business in the region
Russia
Austria
Spain
Italy
Kazakhstan
Turkey
Uzbekistan
United States
Saudi
Arabia
Vietnam
India
Malaysia
1H15
214.0
6.4
(103.7)
(50.8)
(26.7)
39.2
18.3%
11.5
3.2
53.9
25.2%
(9.0)
30.2
14.1%
11.5
3.2
4.0
(0.2)
48.7
22.8%
(2.3)
27.9
(4.4)
23.5
36.9
1H14 % Change
178.6
2.4
(82.0)
(47.7)
(22.1)
29.3
16.4%
0.8
5.0
35.1
19.7%
(8.4)
20.8
11.7%
0.8
5.0
3.8
0.5
31.0
17.3%
(2.6)
18.2
(3.2)
15.0
22.3
19.8%
166.5%
26.4%
6.6%
20.6%
34.1%
n.a.
-36.2%
53.5%
6.5%
45.3%
n.a.
(36.2%)
4.9%
(130.1%)
57.3%
(10.0%)
53.2%
33.9%
57.4%
65.4%
Following auditors request, Talgo has booked the impact of the Management
Incentive Plan MIP (linked to the listing and already liquidated) directly
against shareholders equity, with no effect on P&L (except for the amount
already provisioned prior to the IPO), which implies a significant positive
impact on reported Net Income
No impact on tax shield from MIP, which is fully accountable
6. Cash Flow
Cash flow generation in H1 2015 driven by (i) funding of working capital needs of manufacturing projects, (ii)
extraordinary one off payments linked to IPO, and (iii) execution of investment program
Cash flow statement
1H15
1H14 % Change
million
Net Profit
23.5
15.0
57.4%
4.4
3.2
33.9%
9.0
8.4
6.7%
2.6
2.7
(3.6%)
7.3
6.6
9.9%
(113.7)
(48.3)
135.5%
(66.9)
(12.3)
444.5%
(2.1)
(2.9)
(27.5%)
0.0
0.0
(2.3)
(3.6)
0.0
0.0
(71.3)
(18.8)
280.0%
Investments
(28.9)
(12.9)
124.9%
137.0
8.9
1431.5%
0.0
0.0
0.0
29.6
8.9
230.6%
(70.7)
(22.7)
211.5%
87.9
96.0
(8.4%)
17.2
73.3
(76.5%)
(35.3%)
1H15
mm
Inventory
(14.8)
Accounts receivable
(55.7)
(44.7)
10
1.5
(113.7)
Talgos working capital can vary significantly depending on the size and stage of each contract and agreed payment milestones.
The manufacturing business is the main driver of working capital swings
Order intake and cash generation needs to be analysed in about three year rolling basis given the size of contracts, the associated
impact of prepayments and the phasing of each project
All the EBITDA coming from the projects executed since January 2015 will be converted into cash during the life of the projects
Financial debt
June 2015
Dec 2014
131.5
42.6
60.5
10.9
(17.2)
(87.9)
174.8
(34.4)
108.8
million
1.6x
62
9
2015
18
20
20
20
2016
2017
2018
2019
----------------------Notes:
Financial Net Debt excludes reimbursable advances with Spanish Public Administration entities related with R&D, which are expected to remain constant
11
2020
9. Outlook
Following positive performance of Talgo during H1 2015, the company confirms provided guidance:
The Future Ahead
Net Turnover
EBITDA &
EBIT
Capex
Net
Debt
Net financial debt at year end will be in line with guidance previously provided (in line with 2014 level
adjusted for MIP and IPO fees) plus the purchase price of Tulpar acquisition (23mm paid in June
2015 and 10mm to be paid in 4Q15) and Dammam-Riyadh (net cash 2015 12mn)
Company will close 2015 with significant higher reported net income than expected as a result of
booking the MIP impact directly against reserves. No impact on tax shield from MIP, which is fully
accountable
Net Profit
Dividends
12
Company expects to achieve EBIT target for 2015 with higher than expected margin due to cost
savings achieved in fully executed manufacturing projects
Adj. EBIT margin for 2016 expected to be in line with historical 2013-14 average
Unique set of technologies that sets us apart from competitors in an attractive market
with many opportunities for which Talgo is uniquely positioned,
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Appendix
14
Balance Sheet
Balance Sheet
June 2015
Dec 2014
Balance Sheet
June 2015
Dec 2014
195,4
249,6
Capital Stock
41,2
41,2
68,5
68,5
SHAREHOLDERS EQUITY
million
FIXED ASSETS
281.5
267.1
Tangible assets
70.1
70.9
Share premium
Intangible assets
63.9
66.2
Consolidated reserves
Goodwill
Other long term assets
CURRENT ASSETS
Inventories
Non- current assets held for sale
112.4
112.4
35.0
17.6
349.6
326.2
87.8
71.7
6.1
6.1
Accounts receivable
236.7
158.5
0.1
0.2
17.2
87.9
1.7
1.8
631.1
593.3
4,4
2,6
Retained earnings
47,6
106,9
33,7
30,5
NON-CURRENT LIABILITIES:
192,3
105,4
131,5
42,6
Provisions
23,7
22,9
29,0
31,2
8,1
8,7
CURRENT LIABILITIES:
243,3
238,3
Accounts payable
177,2
222,2
60,5
10,2
2,2
2,1
3,4
3,7
631,1
593,3
15
16
2Q15
1Q15
% Change
127.5
5,6
(69.4)
(26.6)
(13.9)
23.1
18.1%
10.1
1.6
34.8
27.3%
(4.5)
18.6
14.6%
10.1
1.6
2.0
(0.2)
32.2
25.2%
(1.9)
16.7
(1.7)
15.0
24.8
86.5
0,8
(34.3)
(24.2)
(12.8)
16.1
18.6%
1.3
1,6
19.1
22,0%
(4.5)
11.7
13.5%
1.3
1.6
2.0
0.0
16.6
19.2%
(0.5)
11.2
(2.7)
8.5
12.1
47.3%
584.7%
102.6%
10.2%
8.9%
43.2%
n.a.
-0.1%
82.8%
1.4%
59.2%
n.a.
-0,1%
0,0%
n.a.
93.9%
316.6%
48.8%
-38.5%
76.4%
121.0%
17
2Q15
2Q14 % Change
127.5
5.6
(69.4)
(26.6)
99.4
1.2
(46.7)
(24.4)
28.3%
366.3%
48.5%
9.2%
(13.9)
23.1
18.1%
10.1
1.6
34.8
27.3%
(4.5)
18.6
14.6%
10.1
1.6
2.0
(0.2)
32.1
25.2%
(1.9)
16.7
(1.7)
15.0
24.8
(12.8)
16.6
16.7%
0.4
2.5
19.6
19.7%
(4.2)
12.4
12.5%
0.4
2.5
1.9
0.5
17.8
17.9%
(0.9)
11.5
(1.7)
9.9
13.7
8.5%
38.9%
n.a.
-36.5%
77.7%
7.5%
49.5%
n.a.
-36.5%
4.9%
-137.6%
80.3%
86.4%
44.8%
-0.6%
52.5%
81.0%
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.
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