2013/14 HALF-YEAR RESULTS

Transcription

1 2013/14 HALF-YEAR RESULTS

2 HY1 2013/14 IN BRIEF

3 HY1 2013/14: HIGHLIGHTS FOR FAIVELEY TRANSPORT Order book: 2.5% increase to 1,656 million Sales: virtually unchanged (down 0.5%) at 459 million Growth in Europe (3%) Growth of Services (4.8% organic) Operating profit: 10.1% of Sales Net profit: 25.3 million (down 3%) Acquisition of Schwab Verkehrstechnik in couplers and buffers Joint Venture in Russia in air conditioning systems 3

4 GROWTH IN SALES AND ORDER BOOK Sales ( million) Order book ( million) ,690 1,616 1, HY1 2011/ / /14 March 2012 March 2013 September 2013 HY1 sales growth: -0.5% Organic growth: -0.4% Schwab acquisition: 1.7% Forex effect: -1.8% Order book growth: 2.5% (3.3% organic) 4

5 HY1 2013/14 MAJOR ORDERS (1/2) China 8-axle locomotives Brakes axle locomotives (CNR Datong) > 15 million 6-axle locomotives Brakes 60 locomotives (Datong / Zhuzhou) > 5 million Changchung Metro L1&2 Brakes 132 cars (CNR CRC) < 5 million Hong Kong Metro Access doors and couplers 333 cars (Rotem) > 15 million Russia EP20 locomotives Brakes 158 locomotives (Transmashholding) > 15 million Berlin - Moscow high speed rail link Brakes 7 trains (Talgo) > 5 million Aero Express rail link (Moscow Airport) Air conditioning systems 118 cars (Stadler) > 5 million Regional trains Air conditioning systems 20 regional trains (Ural Locomotives) > 5 million Shanghai Metro L3&4 Access doors for 210 cars (CNR CRC) > 5 million 5

6 HY1 2013/14 MAJOR ORDERS (2/2) Europe Desiro ÖBB TRAXX locomotives Flexity2 tramway Couplers, air conditioning system Brakes Air conditioning system 100 trains 130 locomotives 108 tramways (Siemens) > 15 million (Bombardier) > 10 million (Bombardier) > 5 million Copenhagen Metro Coradia X60 regional trains Flirt3 tramways Platform doors Brakes Air conditioning system (Ansaldo STS) > 10 million 46 trains 40 tramways (Alstom) > 10 million (Stadler) > 5 million Rest of the World Matangi 2 Brazil metros Santiago Metro Brakes Access doors Air conditioning system 70 cars Rio de Janeiro 80 cars 92 cars (Rotem) > 5 million Porto Alegre 60 cars (Alstom) < 5 million (Alstom) < 5 million 6

7 FINANCIAL RESULTS 7

8 SALES ANALYSIS BY ACTIVITY 59% Original Equipment (HY1 2012/13: 60%) HY1 2013/14 20% Brakes & Safety 17 % Access & Information 21 % Energy & Comfort Original Equipment: 4% sales decline on a like-forlike basis Decline in Energy & Comfort sales partly offset by the growth of Access & Information 41% After-Market (HY1 2012/13: 40%) 41% Services Services: 5% organic growth Momentum in China and Italy Growth policy through service range expansion 8

9 SALES ANALYSIS BY GEOGRAPHIC REGION HY1 2013/14 16 % Americas 24 % Asia Pacific 60% Europe SALES GROWTH BY GEOGRAPHIC REGION Americas (down 2%) 8% growth in South America Slowdown of Freight in the US vs. HY1 2012/2013 Phasing of transit projects Asia Pacific (down 7%) Continued growth in Russia China: Decline in metro projects, which should be offset over the full year by the growth in locomotives India: Fewer metro deliveries vs. HY1 2012/13 Europe (up 3%) Healthy level of project deliveries in France and the UK Solid growth of Services In Italy 9

10 FOREIGN EXCHANGE EXPOSURE AND HEDGING POLICY Exposure as % of total sales Impact on HY1 sales by currency ( million) SEK 2% INR 4% GBP 4% HKD CZK 2% 2% AUD 2% BRL 2% Other* 3% EUR 56% USD (2.1) GBP (1.5) BRL (1.3) INR (1.2) AUD (1.2) CNY (0.3) HKD (0.3) CNY 11% USD 12% CZK (0.2) Half-year negative impact = 8.3 million Policy of hedging multi-currency projects against foreign exchange exposure Exposure to the conversion of sales and profits of subsidiaries outside the Eurozone Note (*): Other includes the following currencies: CHF, KRW, PLN, RUB, SGD, TWD, THB, CAD 10

11 INCOME STATEMENT (1/2) ( million) HY1 2013/14 HY1 2012/13 % change Sales % Gross profit % As % of sales 25.6% 25.8% Sales, general and administrative costs (61.4) (59.0) 4.1% Research & development costs (6.6) (6.4) 3.7% Other income and expenses (3.1) (2.3) Operating Profit (EBIT) % As % of sales 10.1% 11.1% Slight decline in sales (down 0.5%) 0.2 pp decline in gross margin: Negative mix, with growing deliveries of major new train projects incurring high engineering cost on initial orders 4% increase in sales, general and administrative costs Targeted strengthening of sales teams IT development 10.1% operating margin 11

12 INCOME STATEMENT (2/2) ( million) HY1 2013/14 HY1 2012/13 % change Operating Profit (EBIT) % Net financial expense (5.7) (7.5) -23.9% Income tax (14.2) (15.5) -8.0% Minority interests (1.0) (2.3) -57.4% Net profit Group share % As % of sales 5.5% 5.7% Earnings per share (EPS) - Net Significant decrease in financial charges Reduction in average debt vs. HY1 2012/13 Decrease in market rates Improved hedging policy Effective tax rate unchanged at 35% Slight decline in net profit: down 3% 12

13 WORKING CAPITAL REQUIREMENT ( million) 30/09/ /03/2013 Change Inventories Project work-in-progress Trade receivables (33) Down payments (116) (121) 5 Trade payables (144) (176) 32 Other current assets and liabilities (47) (49) 2 Working Capital Requirement before factoring Factoring of receivables (73) (93) 20 Working Capital Requirement after factoring million increase in WCR before factoring of receivables Increase in inventories ( 18 million) in line with business activity and projects expected in the second half of the year Improvement in trade receivables ( 33 million) and deterioration in trade payables ( 32 million) Seasonal drop in the factoring programme: 20 million decrease 13

14 HY CASH FLOW STATEMENT ( million) HY1 2013/14 HY1 2012/13 Net profit Minority interests 1 2 Amortisation and depreciation charges 8 8 Change in provision charges and other non-cash items 1 4 Self-financing capacity Change in WCR (51) (59) Capital expenditure (8) (8) Free cash flow (23) (27) 35 million self-financing capacity 5 million decline related to movements in provisions and deferred tax Control on capital expenditure 4 million increase in free cash flow, usually negative in the first half-year 14

15 FINANCIAL POSITION ( million) 30/09/ /03/2013 Change Financial liabilities Financial receivables (8) (10) 1 Cash and cash equivalents (150) (175) 25 Restatement of treasury shares (15) (15) - Net financial debt Net financial debt / EBITDA ratio 2.0x 1.5x Equity Net financial debt / Equity ratio 42% 31% 68 million increase in net debt Annual dividend payment ( 15 million) Acquisition of Schwab ( 27 million) Negative free cash flow, mainly due to the seasonal decrease in factoring Sound balance sheet Net Debt / EBITDA ratio of 2.0x Gearing ratio of 42% 15

16 PROGRESS UPDATE ON NEW PLATFORMS November 2013 Billing progress SSL % RER Bruxelles % Regiolis % Régio 2N % Trains régionaux SBB Dosto % Tramways Toronto % V300 Zefiro % Metra highliner % ICx % EP20 Locos % Thameslink % Traxx % Date order taken Date of series deliveries Delivery period End of deliveries* Note (*): end of deliveries on initial platform order 16

17 HY1 2013/14 FINANCIAL SUMMARY Sales virtually unchanged at 459 million (down 0.5%) Slight drop in gross margin (down 0.2 pp) due to a less favourable project mix 10% decline in EBIT to 46.2 million due to the decline in gross margin and the increase in sales, general and research costs Slight decline in net profit (down 3%) thanks to the decrease in financial charges Net financial debt of 230 million with a solid Net financial debt / EBITDA ratio of 2.0x 2013 full-year guidance: Organic sales growth between 0% and 3% Operating margin slightly down vs. 2012/13 17

18 TWO MAJOR MARKETS: RUSSIA AND CHINA

19 STRATEGY REMINDER System integration providing greater added value to our customers Customer focused local organisation 4 growth regions selected for their potential BRAKES & SAFETY Brakes Couplers ACCESS & INFORMATION Doors & Accessibility Information & Control Platform Doors US RUSSIA ENERGY & COMFORT Air conditioning Power collection Energy conversion SERVICES CHINA GERMAN SPEAKING REGION 19

20 FOCUS ON RUSSIA: THE KEY PLAYERS RZD: the main national operator Fully controlled by the State Sales: 32 billion 86,000 km of rail network TRANSMASHHOLDING (TMH): the leading car builder in Russia ALSTOM is a 25% shareholder and industrial partner Sales: 3.0 billion SIEMENS: well established in Russia JV with Sinara: Ural Locomotives Other significant contracts (Velaro RUS / Desiro RUS) URALWAGONZAVOD: significant presence, especially in freight Partnership with Bombardier for Moscow s future metro Partnership with Pesa (Poland) for tramways 20

21 FOCUS ON RUSSIA: THE MARKET Market trends Investments focused on more modern technologies Strong political will for development Availability of funding Growing freight market but with little added value for FT Long distance market passengers coaches locomotives EMU trains Metro Major segment ( cars per year) Retrofit and extension of the Moscow Metro Tramways Projects in most major cities Moscow/St. Petersburg forecasts: 100 tramways / year An equipment market worth 450 million Sources: World Rail Market Study-Forecast 2012 to UNIFE/Roland Berger Faiveley Transport estimates 21

22 FOCUS ON RUSSIA: FAIVELEY ORDERS EMU Desiro RUS Air conditioning 20 regional trains (Ural Locomotives) > 5 million Moscow Aero Express rail link Air conditioning 118 cars (Stadler) > 5 million Sochi regional trains Air conditioning 270 cars (RZD) > 10 million Metros Moscow Metro Air conditioning (Metrowagonmash) > 15 million High speed Berlin - Moscow high speed rail link Brakes 7 trains (Talgo) > 5 million Locomotives EP20 Brakes and pantographs 198 locomotives (Transmashholding) > 20 million Russia: 5% of HY1 2013/14 sales 22

23 FOCUS ON RUSSIA: FAIVELEY TRANSPORT-TRANSAIR JV Partnership with TRANSKON GROUP, leader in air conditioning systems for the rail industry in Russia Transkon sales: 15 million JV in air conditioning systems Located in Tver, North-West of Moscow Objectives: 1. Managing Metrovagonmash orders for the Moscow Metro 2. Local design, marketing and production of air conditioning systems for new CIS projects St Petersburg Tver Moscow RUSSIA Annual HVAC market: million per year 23

24 FOCUS ON CHINA: THE TRAIN BUILDERS DATONG DALIAN CRC Changchung TANGSHANG SATCO SRI Sifang Components Couplers Locomotives Locomotives Metro High speed EMU Metro JV Bombardier (CBRC) High speed EMU Metro Metro JV Alstom / CNR PUZHEN ZHUZHOU SIFANG QISHUAN Metro Locomotives High speed Locomotives EMU Metro Metro Discs Components EMU JV Bombardier (BST) Two major groups of train builders 24

25 FOCUS ON CHINA: THE MARKET Confirmation of strong recovery in investments Accelerated growth in locomotive market Metro market linked to constraints in local funding Growth in services due to an expanding installed base Metro 2,000-2,500 cars per year (excl. exports) Stable market EMU New platforms expected 160 km/h regional train market set to become the largest Locomotives locomotives per year 2013: new generations of 8-axle locomotives High speed Market: 150 to 200 trains per year from 2014 Development policy for high speed (250 km/h) Improved safety An equipment market worth 960 million Sources: World Rail Market Study - Forecast 2012 to UNIFE/Roland Berger Faiveley Transport estimates 25

26 FOCUS ON CHINA: FAIVELEY S SITES Faiveley Transport Systems Technology, Beijing Sales coordination Brakes Faiveley Transport Metro Technology (FTMT), Shanghai Platform Doors 100% Faiveley Far East, Hong Kong Platform Doors Beijing Datong Shijiazhuang Qingdao Faiveley SRI Rail Brake Company Extension of JV scope in 2013 EMU Brakes + Pantographs 50/50 JV 2006 SRI Sifang Brakes EMU Pantographs Qingdao Datong Faiveley Coupler System Couplers 50/50 JV 2007 DATONG Locomotives Hong Kong Shanghai Shijiazhuang Jiaxiang Precision Machinery Compressors 50% equity investment 2007 Private partner Shanghai Faiveley Railway Technology (SFRT) Air conditioning and Doors 51/49 JV 1994 SEC Shanghai Electric Corporation 26

27 FOCUS ON CHINA: FAIVELEY S ORDERS Metro A competitive market Changchung Metro Brakes 132 cars (CNR CRC) < 5 million Hong Kong Metro Access doors and couplers 37 metro trains (Rotem) > 15 million Shanghai Metro L3&4 Access doors 210 cars (CNR CRC) > 5 million Locomotives Market share gains Datong Brakes axle locomotives (CNR Datong) > 15 million Zhuzhou Brakes 60 locomotives (Zhuzhou) > 5 million High speed Numerous new platforms Qualified for the prototypes of 2 new platforms in brakes Qualified for air conditioning Qualified for doors and pantographs China: 11% of HY1 2013/14 sales 27

28 OUTLOOK

29 OUTLOOK Numerous opportunities for orders Significant tenders Europe South America South Africa and the Middle East Asia Ramp-up of deliveries on new platforms Continued growth of services 29

30 SHAREHOLDERS AGENDA 30 January /14 Q3 Sales 30 May /14 Annual Sales and Results 30

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