EuroMaint Annual Report 2013

Transcription

1 EuroMaint Annual Report

2 Contents Page 1 A maintenance partner that gets the trains on track Operational activities Group overview 1 in brief 2 The CEO s comments 4 Strategic focus 6 Business areas 10 Offering 11 Five-year overview 21 Page 4 Page 6 Increasingly strict requirements for being a sensitive and cost-effective maintenance and business partner Quality focus enhances EuroMaint s position in the market Financial reporting Directors report Notes 32 Auditor s report 54 The Board of Directors 55 Company management Page 11 Page Four business areas with the best interests of the railway as a common denominator Customised maintenance offering for rail passenger traffic and freight traffic

3 GROUP OVERVIEW A maintenance partner that gets the trains on track Euromaint is Europe s largest independent supplier of maintenance services for one of the future s most important industries the rail transport industry. The climate challenges facing society advocate more transport by train. At the same time, the industry is facing challenges in the form of insufficient track capacity, lack of confidence from passengers and profitability problems. With integrated and customised maintenance solutions, industrialised processes and complete component and spare parts offerings, Euromaint is part of the solution to strengthening confidence in the train as a means of transport. The train operators which choose the company to be a business partner can focus on the overall experience of their passengers. The rolling stock owners who choose Euromaint to be their maintenance partner gain full insight into and control over the status of their rolling stock fleets. The public transport authorities which choose the company s maintenance solutions can expect the region s train services to be both more stable and more punctual, while the freight transporters which choose Euromaint can count upon the freight being on track at the right time. Euromaint is a stable business and collaboration partner. The customer value created through close cooperation, efficient maintenance processes, employees with specialist skills and purposeful quality and safety work will benefit the owner and provide the opportunity to invest in continued development of the offering. EuroMaint Annual Report 1

4 GROUP OVERVIEW EuroMaint in two minutes Euromaint offers maintenance of rolling stock to train operators, rolling stock owners, infrastructure contractors and rolling stock manufacturers. The company has more than 25 workshops and mobile service units in five countries. The main geographic markets are Sweden and Germany. Besides the maintenance of rolling stock for rail passenger and freight traffic, the customers are also offered logistics services and reprocessing of components. In addition, Euromaint has an offering for players with rolling stock used to maintain railway infrastructure. Customers here include SJ, A-Train, Green Cargo, AAE, VTG, DB (Deutsche Bahn) and Infranord. Operational activities are run through the subsidiary Euromaint Rail s four business areas Passenger, Freight/Germany, Components and Work Machines. Each business area should create customer value and profitability. Since 2007 Euromaint has been owned by Ratos AB, a Swedish listed private equity company. Net revenue 2009 SEK millions 3,000 2,814 2,860 2,510 2,000 1, ,484 2,416 The average annual growth for 2009 was 0.7 per cent. Weak market development, stiff competition and pressure on prices have affected Euromaint s revenue trend. Earnings have been documented on an as if basis for For the basic data for the graphs, information on the as if basis and additional key ratios, please refer to the five-year overview on page 21. in brief The first of a total of 55 second class passenger carriages refurbished for SJ were delivered in February. The refurbishment is taking place at Euromaint s workshop in Notviken and is expected to continue until the first quarter of The project is a continuation of the refurbishment of 160 carriages completed by Euromaint in In March, RDC Deutschland GmbH signed a contract with Euromaint for the modernisation of two driving trailers and four passenger carriages. Once this work is complete all the carriages will form a modern six-carriage train unit for long-distance passenger traffic in Germany. The contract also gives RDC Deutschland the option of ordering the modernisation of two more six-carriage train units. In June, the Jernbaneverket Bane Energi division showed its confidence in Euromaint once more by engaging the company to refurbish and modernise three train operation converters. Euromaint has taken on the overall responsibility, which means everything from refurbishment at the workshop to commissioning the converters at the power converter station and arranging the logistics for the assignment. 2 EuroMaint Annual Report

5 GROUP OVERVIEW Infrastructure providers Responsible for track and overhead lines Passengers Freight Infrastructure contractors Maintain track and lines for infrastructure providers Train operators and rolling stock owners for passenger traffic Train operators for freight traffic and freight wagon owners Euromaint supplies maintenance for the work machines used by the infrastructure contractors. Euromaint supplies maintenance, reprocessing of components and the supply of materials for passenger trains as well as freight wagons and locomotives. In June, Euromaint s workshop in Landskrona became the first in Sweden to be ECM certified for maintenance of freight wagons designated for hazardous goods. The certificate, which applies to the maintenance of freight wagons, also includes the maintenance of tank wagons and other freight wagons designated for hazardous goods. In June, after four years with Euromaint as its partner, SL decided to extend its contract with the company for maintenance of work machines. The contract runs until November In July, Euromaint was commissioned by SJ to maintain the rolling stock that operates the route between Sala and Linköping. The assignment covers both preventive and corrective light maintenance, including the provision of materials for 11 vehicles four Regina trains and seven X12 trains. Since 15 December this maintenance has been carried out at Euromaint s workshop in Linköping. At the start of 2014, Euromaint was commissioned by Tågkompaniet (TKAB) to carry out maintenance on the Regina trains TKAB operates on behalf of X-trafik from 15 June 2014 up until This maintenance will be carried out at Euromaint s workshop in Gävle. Euromaint has already worked with TKAB on Tåg i Bergslagen, and in the last few years has been awarded several maintenance contracts for Regina trains. EuroMaint Annual Report 3

6 THE CEO S COMMENTS Increasingly strict requirements for being a sensitive and cost-effective maintenance and business partner Our improvement work and focus on quality have given results. This is pleasing, especially when it is considered that what we do is important. Together with other players in the industry, we work to make companies and private individuals choose to use the train. Euromaint is part of the solution. By carrying out high-quality maintenance on time, Euromaint is part of the solution. The train a clear place, even in the future The train is important. In an increasingly global and urban world, the train should have a more clear place. The position as the most environmentally friendly means of transport is a fantastic opportunity and the solution to many transport and environmental problems. At the same time, the train faces major challenges and confidence in the train as a means of transport is low. For us to overcome this, industry players have to work together to increase the reliability and attractiveness of the train. By carrying out high-quality maintenance on time, Euromaint is part of the solution. EuroMaint s independence a market advantage To a certain extent the market is still influenced by its history. Yet more and more people are discovering our strengths and realising that Euromaint wins business on its own merits despite stiff competition. In Germany we are viewed as a modern, trailblazing alternative. We inhabit a relatively unique position. Thanks to our independence in relation to rolling stock manufacturers and operators, the customer can feel reassured that we are acting in their interest. Market situation remains tough After a difficult start to the year with the loss of a contract for Norrlandståg, produced many important orders for Euromaint. During the year we signed contracts with, among others, SJ for maintenance of the rolling stock operating Sala Linköping, we received an extended commission from A-Train for maintenance of Arlanda Express, and SL chose to continue to place its maintenance of work machines with us, to mention just a few agreements. Despite this, the pressured market situation had a tangible effect on Euromaint in the autumn. Some of our existing customers decided to change their maintenance strategy and cut back on maintenance or chose to carry it out themselves. This situation resulted in us having to review our staffing levels. Redundancies were announced in Luleå, Åmål and Örebro, as well as at the head office in Solna, with these mainly affecting administrative staff. This cutback in staff began at the end of the autumn and will continue throughout 2014, assuming that market conditions remain the same. In Germany we have experienced difficulties on the freight side as this is sensitive to the state of the market. This has led to staff cutbacks. Alongside this, the passenger side in Germany has developed positively. I see major potential in this area. has been characterised by continued weak conditions, primarily on the freight side of the German market, which had an adverse effect on our profit. Revenue fell by 2.7 per cent and amounted to SEK 2,416 million (2,484). This fall is explained by the economic trend in Germany. Our operations in Sweden grew by 2.3 per cent. The operating profit (EBITA), adjusted for expenses affecting comparability, was SEK 67 million (90). This is not in line with our targets. Many important procurement procedures in the next few years Although the industry is currently going through a difficult time, the rail market is 4 EuroMaint Annual Report

7 THE CEO S COMMENTS full of opportunities, especially for Euromaint. When investments are made in new trains, this creates a business opportunity for us. What s more, there are many trains that need to be overhauled or refurbished so they can remain in service for a few decades more is the start of some very exciting years with new players in the market and many comprehensive contracts being put out for tender. I believe that we are well prepared for this. Available trains our most important task Our most important task is to ensure that the trains are available and delivered clean, safe and well maintained to the customers as scheduled. We have continued to work methodically and with a long-term perspective to continuously improve the quality. Developing our industrial maintenance process and improving our planning have played a central role in this work and have taken place as part of an excellent and close collaboration with our customers. Together we have achieved success. Increasing numbers of trains are being delivered on time because more and more trains come into the correct workshop on time where the correct components and spare parts are already in place. We have a good planning process, but we are not satisfied; we are continuing to develop it so that we can further increase the quality of our customers rolling stock. Investments to meet customer needs We have also made investments to enhance our attractiveness. Many customers are influenced by the market situation and are examining their costs. The requirements for the utilisation ratio of the rolling stock are getting even stricter. A new business system being implemented in the first half of 2014 will further raise the quality of the maintenance. We have also invested in our bogie workshop in Örebro, and from the halfway point of 2014 the lead time for reprocessing of a bogie will be more than halved, from 15 to just seven days. As a result, Euromaint is establishing the most attractive reprocessing offering in Sweden. We have put ourselves in an excellent position to win new business. Quality to remain the top priority We entered with the ambition of developing our existing contracts in order to create added value for our customers, winning new contracts and continuing to develop positively. Thanks to the enthusiastic commitment of our employees, we have made good progress but our focus on quality improvements will continue to have the highest priority for the foreseeable future. We must always be the best at everything we do in order to be part of the solution. Solna, February 2014 Ove Bergkvist President and CEO EuroMaint Annual Report 5

8 STRATEGIC FOCUS Quality focus enhances Euro- Maint s position in the market The clear direction established by Euromaint means that the company is fully focused on delivering high-quality maintenance solutions so that all trains maintained by the company are on track and in service when they are supposed to be. The objective is to secure the company s position as the leading maintenance player in Sweden and to grow in Germany. In there were approx. 200 million railway journeys in Sweden, or an average of over half a million train journeys per day. Alongside this, approx. 65,000 tonnes of freight were transported on Swedish railways. The passengers expect the train to be a comfortable and safe method of transport, while the freight transporters set strict requirements for delivery reliability. Punctuality and safety are essential when it comes to both passenger and freight transport. A lack of punctuality means high costs to society as well as the risk that the next journey or transport will take place by another method of transport than rail. Euromaint is part of the solution. But efficiently run train services need all players to do their job. Euromaint s role is to ensure that the trains are well-maintained and that they are on track and in service when they are supposed to be. Euromaint is a Swedish company with an international offering and operational activities in five European countries. These operational activities are represented by more than 25 workshops and mobile service units in Belgium, Latvia, the Netherlands, Sweden and Germany. The offering is pan-european but the main markets are Sweden and Germany. The economy affects the need for maintenance The maintenance market for rolling stock is affected by the development in traffic. In Sweden, rail passenger traffic has grown on average by 1.1 per cent per year for the past few years. This is a level of growth that Trafikverket expects to continue, as outlined in its forecasts for the work on the national transport plan According to Eurostat, rail passenger traffic in Germany grew on average by 2.8 per cent in the period The assessment here is also that the rate of growth seen in recent years will continue in the years ahead. In, freight traffic, which varies to a greater extent according to the state of the economy, was at the same level as in 2009 in both Sweden and Germany. The weak market development means that Euromaint s customers must balance strict requirements Sundsvall Vännäs Luleå for safety and punctuality against profitability issues and pressured budgets. One example of this is that in recent years DB has reduced its number of freight wagons as well as changing its maintenance strategies. Long contracts In Sweden and Germany alike, the majority of the rail passenger traffic is put out to tender by a public transport authority or equivalent in a certain region. In a procurement process the operators must be able to demonstrate that they can achieve the traffic targets. An important aspect here is having well-maintained trains. The contract periods for traffic services put out to tender are often long. In Sweden the contracts for procured traffic normally run for between five and 10 years. In Germany, the contract periods are even longer and may run for up to 20 years. Because the contract periods are long, several years can go by without any major maintenance assignments being put out to tender. This means that winning or losing a procurement process has a far-reaching effect on Euromaint s operational activities. Before 2017, around 10 major maintenance contracts in Sweden worth the equivalent of SEK 1.4 billion in annual revenue will be put out to tender. Borlänge Gävle Västerås Örebro Stockholm Hallsberg Falköping Linköping Göteborg Åmål Jelgava Vision Landskrona Malmö Antwerpen Rotterdam Wolfsburg Duisburg Wustermark Delitsch Leipzig Mission Euromaint s presence Workshop Service station Mobile maintenance only Kaiserslautern Oberhausen Ingolstadt 6 EuroMaint Annual Report

9 STRATEGIC FOCUS Strong competition means high efficiency is essential Depending on geographic market and segment, Euromaint faces different types of competition. Some competitors are small, local niche companies, while others are major international players with a complete offering or operators with their own workshops. The latter are mainly present in Germany, where many operators choose to handle parts of the maintenance themselves. Euromaint s internal change work is primarily about continuously improving the quality of customer deliveries. This allows for further efficiency measures and greater competitiveness in a market characterised by stiff competition and pressure on prices. To meet the expectations of the customers, owners and other stakeholders, Euromaint has defined four focus areas: stability, image, profitability and growth. Clear quality improvements To both maintain existing business and win new contracts, Euromaint must be a reliable partner and run a stable business with high quality and delivery reliability. Regardless of size, every single assignment is important. We aim to have contracts extended after the original one expires and to win new contracts with existing and new customers thanks to our proven quality. Planning is a basic prerequisite for a successful maintenance process. Euromaint works closely with its customers to develop solutions that reduce the time that the trains are out of service. These days there is not always spare capacity in the form of locomotives, wagons or carriages and high-value components such as wheels, bogies and traction motors. As a consequence, the rolling stock must be maintained as efficiently as possible without compromising on quality or safety. In light of these factors, Euromaint ensures that the correct resources are in place to deliver reliable maintenance solutions in an effective manner throughout the assignment period. The improvement work that has been carried out has produced clear results. In recent years the delivery quality and availability for e.g. the SJ2000 has stabilised at an increasingly higher level. In practice this means that the trains have been available for use in line with the set maintenance plans. This has been achieved thanks to the close partnership between Euromaint and SJ and due to the systematic internal cooperation and ongoing dialogue. A decision on an important investment in a new business system was taken during the course of the year. This will mean advantages and efficiency gains within both production and administration, such as more streamlined and more secure Essential for everyone to take responsibility We ve discussed our core values in our group. As far as I m concerned, it s important that these are not just a few words that we learn; we actually need to link them to our day-to-day work. Both how we interact colleague to colleague and when it comes to the working environment as a whole. We work in an exposed environment and I want to feel safe even though I spend most of my working hours out on the tracks. But perhaps the most important thing of all is that everyone has to take responsibility for us delivering safe trains on time to the customer. I usually compare it to if I were to take my own car in for a service I d want to be sure that I d get it back at the promised time. Emma Thörnqvist, maintenance engineer at Euromaint s workshop in Hagalund EuroMaint Annual Report 7

10 STRATEGIC FOCUS Cooperation for greater availability Euromaint has established a close working relationship with SJ where the common goal is for the SJ2000 trains to have high availability so that as many people as possible will choose to travel by high-speed train. There should also be room for flexibility in the form of expanded capacity when demand is even higher, e.g. at Christmas and Easter and during major events. So that Euromaint and SJ have the same view of the current rolling stock situation and are able to discuss e.g. the expansion of train services, the two parties perform a reconciliation each week. Thanks to open dialogue and close cooperation, key ratios and availability are at an increasingly stable level. Euromaint s target is to ensure that the maximum number of rolling stock units is available for use every day. Stefan Bengtsson, business manager at Business Area Passenger, Euromaint Rail ordering and purchasing procedures within the provision of components and spare parts, as well as easier access to information for maintenance staff and for the financial follow-up of assignments from order to invoice. Presenting a strong image of EuroMaint The view of Euromaint varies. In Sweden in some cases the memory remains of the company s time as part of a state-run monopoly, while in Germany the company appears to a greater extent to be a welcome and modern alternative. Changing the image of a company is a long journey that always starts from inside the company itself. Being sensitive to customer expectations and delivering to meet these are crucial to being viewed as an attractive business partner. Euromaint s journey from being perceived as part of the state system to being a competitive, privately owned business in a fully competitive market is driven in part by a long-term internal assessment and culture change project. The customer promise has also been defined as quality, delivery and innovation. Maintenance of trains requires the employees to have high-level and specific specialist skills. All work tasks involved in the maintenance process are necessary to ensure the quality and safety of the delivery and thus customer satisfaction too. This means the employees constantly have to challenge themselves and regularly complete the internal rolling stock and safety training programmes that qualify them and also make them available for new assignments. A broader internal training programme has been introduced in order to keep raising quality and knowledge levels throughout the company. The objective here is to increase the insight into and understanding of how everything fits together. The training, which is held in groups and led by internal experts in fields such as economics, quality and change work, will continue during The past year has also seen the intensification of work within CR and sustainability. The priority areas for Euromaint are environment, quality and safety. A code of conduct governing how Euromaint acts and expects others to act both internally and externally has been introduced at the company. The objective for not only the ongoing change work but also the CR work is to reduce the risks at the company and also boost confidence in Euromaint in the market. Tough market situation To be a stable business partner, a forwardlooking employer and to generate a good return for the owner, the objective is to create profitable growth, maintain good control of costs and deliver strong cash flows. Euromaint aims for growth with profitability, where profitability is given priority. Euromaint s overall profitability target is to achieve an annual EBITA margin of 10 per cent in the long term. The economic situation signifies profitability problems for the entire industry, which means that Euromaint s profitability is not satisfactory. The EBITA margin was 1.0 (2.4) per cent. The market situation is characterised by greater competition and pressure on prices. This has been particularly noticeable when it comes to Euromaint s maintenance of freight rolling stock in Germany. The saving measures initiated in and which were continued in are producing gradual results. These measures concern efficiency improvements, primarily within administrative functions. During the year Euromaint has also shut down operations at a workshop in Germany. 8 EuroMaint Annual Report

11 STRATEGIC FOCUS New business opportunities in sight Euromaint s objective is to grow in the Nordic countries as well as in the rest of Europe, organically and through acquisitions. Through continual change work and a constant focus on quality, Euromaint is creating a stable platform for winning important contracts that will be put out for tender in the next few years. The weak development in rail passenger traffic and rail freight transports in both Sweden and Germany has continued to have an effect on the company s growth prospects. The year also saw a few large procurement processes in the market. Net revenue fell by 2.7 per cent during the year. The opportunities for growth in the next three-year period are in Sweden and the other Nordic countries for the business areas Passenger, Components and Work Machines. The procurement situation for the Passenger business area in the next few years appears to be relatively positive with around 10 major procurement processes due in Sweden. An important investment is being made in the Components business area s bogie workshop in Örebro. CORE VALUES This refurbishment means the time to complete a bogie overhaul will be more than halved from 15 to an average of seven days. A clear sign that this investment is timely is that the market is showing an interest in the benefits produced by shorter lead times for bogie maintenance even before the workshop has been put into service. Euromaint also has great potential for winning new business within maintenance of passenger rolling stock in Germany. A large number of multiple units, EMU/ DMU trains (Electric Multiple Unit and Diesel Multiple Unit), will be overhauled in the coming years, and this is an area where Euromaint has a strong offering. Fleets of brand new passenger rolling stock will also be put into service in the next few years. Warranty assignments, i.e. correcting major faults on this rolling stock within the warranty period, will also involve further business opportunities for the company in the German maintenance market. Euromaint s ambition is to capitalise on the benefits that will be brought about by its position as the leading private and independent player in Europe. CUSTOMER PROMISES Net revenue 2009 SEK millions 3,000 2,000 1, Net revenue from Euromaint s Swedish operations increased by 2.3 per cent in compared to last year. At the same time, net revenue from the rest of Europe in fell by 17.5 per cent. The average annual growth for 2009 was 0.7 per cent. EBITA margin 2009 Per cent The EBITA margin fell from 2.4 per cent to 1.0 per cent. The continued weak market in Germany has had an adverse effect on earnings despite the efficiency improvements implemented at the German operations. During the year Euromaint has also cut back on staff within administrative functions as well as announcing redundancies at the Swedish operations. Cooperation Equity/assets ratio 2009 Per cent 40 Quality 30 Taking responsibility Contributing Reliable Delivery Innovation The equity/assets ratio increased from 33 per cent to 39 per cent during the year. Earnings have been documented on an as if basis for For the basic data for the graphs, information on the as if basis and additional key ratios, please refer to the five-year overview on page 21. EuroMaint Annual Report 9

12 BUSINESS AREAS Four business areas with the best interests of the train as a common denominator Euromaint conducts operations in four business areas whose task is to create maximum profitability in each part of the total offering. The common denominator is that those with the same core values and customer promises work towards achieving long and valuecreating partnerships with customers active within the rail transport industry. Business Area Passenger The business area offers a complete maintenance concept to train operators, rolling stock owners and public transport authorities. The customers can purchase either all or parts of the maintenance offering, everything from light maintenance to full service commitments, including reprocessing and overhauls. The business area normally operates with full service commitments, with a payment model based on the customers rolling stock being available for traffic. In practice, this sees the customers paying according to the number of kilometres travelled by the trains, which means that the common goal of Euromaint and the customers is for the rolling stock to be used in traffic. The business area is also responsible for the Swedish offering within maintenance of rolling stock for freight traffic. Business Area Freight/Germany The business area has a comprehensive range of maintenance services for freight rolling stock and an offering under development for rail passenger rolling stock in the German market. The offering covers planned and remedial maintenance (both in the workshop and by mobile units) as well as overhauls, refurbishments and reprocessing of components. The planned maintenance is based on framework agreements that define the actions to be carried out in accordance with an established maintenance plan. Remedial damage maintenance is carried out either against tender or on a running account basis. Major and more far-reaching actions, such as overhauls and refurbishments, always follow established maintenance plans. Business Area Components The business area offers reprocessing of components and complete material supply to all types of customers in the rail transport industry, everything from sourcing and stockkeeping to intelligent logistics solutions and the sale of spare parts. As a logistics supplier, the business area generates income from contracts that can cover parts of the supply chain or complete responsibility for the supply of spare parts and reprocessed components. The business area not only maintains a large number of customer relationships with train operators and other maintenance companies, it also fulfils the role as supplier to Euromaint s other business areas with regard to reprocessing of components and provision of spare parts. The business area has its own warehouse stocking approx. 55,000 items for maintenance of rolling stock. Business Area Work Machines The business area offers a complete maintenance programme for machines and tools used for maintenance and construction of the railway infrastructure, such as track and overhead lines. The business model usually consists of framework agreements that contain fixed actions, which are usually sub-ordered by the customer, as well as service packages based on the machines running hours. Corrective maintenance and mobile maintenance are carried out either against tender or on a running account basis. Number of employees on 31 Dec: 934 (1,036) Business Area Manager: Henrik Dagberg Examples of customers: A-Train, AAE, Green Cargo, MTR, SJ, Tågkompaniet, Västtrafik, Öresundståg Workshops/facilities: Borlänge, Falköping, Gävle, Göteborg, Hallsberg, Landskrona, Linköping, Luleå, Malmö, Stockholm, Sundsvall, Vännäs, Västerås Number of employees on 31 Dec: 849 (968) Business Area Manager: Robert Lehmann Examples of customers: AAE, Aretz, BASF, DB, Ermewa, GATX, Nacco, TWA, VTG, Wascosa Workshops/facilities: Delitzsch, Duisburg, Ingolstadt, Kaiserslautern, Leipzig, Oberhausen, Wolfsburg, Wustermark, Antwerp, Rotterdam Number of employees on 31 Dec: 288 (300) Business Area Manager: Ingela Erlinghult Examples of customers: Alstom, Arriva, Bombardier, Inlandsbanan, JBV, Metro, Transitio, TRV, Tågab, other business areas within Euromaint Workshops/facilities: Jelgava, Åmål, Örebro Number of employees on 31 Dec: 36 (37) Business Area Manager: Gustav Jansson Examples of customers: Jernbaneverket, SL, Strukton Workshops/facilities: Stockholm, Åmål 10 EuroMaint Annual Report

13 OFFERING Customised maintenance offering for rail passenger traffic and freight traffic Quality and safety are always focal points at Euromaint. Providing high-quality maintenance is about the customers rolling stock always complying with all statutory requirements for traffic safety. In addition to this, Euromaint wants to create the conditions for more passenger and freight transports by rail by ensuring availability and reliability. Specialist skills and industrialised processes guarantee the customers maintenance solutions with a high level of quality and safety. As far as the customer is concerned, this means that they have control over which rolling stock units are available for traffic and thus can plan their operations and ensure punctual departures and arrivals. This also means the customers can be certain their rolling stock is railworthy. The maintenance offering covers everything from light maintenance, according to the customer s traffic flows, to heavy maintenance such as overhauls, as well as the reprocessing of components and material provision. This makes Euromaint the obvious business partner regardless of whether the customer is active within passenger or freight traffic or maintains infrastructure for the railway. The company also offers reprocessing of components, spare parts and logistics services to all players in the rail transport industry. Besides maintenance of rolling stock for passenger traffic and freight traffic, the company has a targeted offering for rolling stock maintenance aimed at companies which maintain railway infrastructure such as track and overhead lines and which also carry out towing and clearing. Euromaint is Europe s largest maintenance partner independent of rolling stock manufacturers and train operators. As a result of this, the company has no loyalties other than giving every customer the most qualitative and cost-effective maintenance solution. EuroMaint Annual Report 11

14 OFFERING PASSENGER TRAFFIC A complete maintenance concept increases availability Euromaint offers a complete maintenance concept for rail passenger traffic. Maintenance solutions adapted to the needs of the rolling stock and the customers are developed in close collaboration with the customers. This often involves a full service commitment where Euromaint takes responsibility for the maintenance and receives payment based on the number of kilometres the trains travel. This payment model means that both Euromaint and the customers are successful when the customers rolling stock units are available for traffic. Optimised maintenance solutions for greater rolling stock availability All rolling stock has a maintenance plan. This indicates what maintenance is to be carried out and when. The starting point for Euromaint s optimised maintenance concept is to customise a maintenance solution based on the customer s traffic and the current maintenance plan for their rolling stock. In the first instance the maintenance is governed by the times of the day when there are few journeys and the need for available rolling stock is lower. The interventions are adapted to the quality and safety requirements defined for the assignment. Factors that play a role include where the rolling stock s operating pauses are scheduled and where the workshops are located, when and how long the trains can be available for maintenance, and other specific requirements set by the customer. The customer may, for example, request mobile maintenance patrols at strategic end stations which carry out comfortrelated actions to ensure a comfortable and positive travelling experience for the passengers. Euromaint develops and regularly optimises the maintenance plans for the fleets of rolling stock which the company is contracted to maintain. The objective is to increase the availability and improve the efficiency for both parties. The company s long experience of train maintenance, combined with regular analyses of the pattern of faults that arise, the real operating environment of the rolling stock and the maintenance carried out, means the customers can be reassured that their rolling stock maintenance develops throughout the contract period. Long-term planning Rolling stock must be delivered according to schedule Euromaint constantly develops its industrialised maintenance process. The foundations for this are always a clear and common planning of maintenance work. When the trains come into the workshops as scheduled, the correct spare parts, components, tools and staff are already on site to carry out the planned maintenance action. This produces greater efficiency and quality. The objective is for the customers rolling stock to be back in service as planned. Ultimately it is a question of ensuring punctuality and safety for passengers and improving profitability for the customers and Euromaint alike. When more extensive preventive maintenance actions are necessary, the work may be divided into smaller tasks that are carried out over several planned workshop visits. In this way, the actions can be carried Spare parts Rolling stock in traffic Locations/depots Maintenance windows Availability requirements Quality requirements Workshop Maintenance documentation Design actions Expertise Physical conditions Components Euromaint takes full responsibility for the maintenance of rolling stock for passenger traffic. Customised maintenance solutions, adapted to the customer s traffic, are combined with an efficient spare parts and component supply system to increase the availability of the customer s rolling stock fleet. 12 EuroMaint Annual Report

15 OFFERING PASSENGER TRAFFIC Nothing can go wrong en route to the airport From the centre of Stockholm to Arlanda Airport in 20 minutes. And a new ticket if the train is more than two minutes late. That is the Arlanda Express promise to its customers. Speed, punctuality and comfortable travel are vital competitive advantages for Arlanda Express, which every year has 55,000 departures between the centre of Stockholm and Arlanda Airport. I always take the Arlanda Express. It s quick and I ve never had a train be cancelled or not arrive on time, says Ulrika Morgenstern, a passenger who often flies from Arlanda. Arlanda Express is owned and run by A-Train AB, whose greatest challenge is described as in all situations giving the customers what they ve been promised a punctual, fast and environmentally friendly journey that always takes place. This makes heavy demands on Euromaint, which has been taking care of the rolling stock maintenance since The contract was renewed recently and Martin Byström, Technical Director at A-Train, explains what he is especially pleased with: For us to be able to keep our customer promises, there must be service-mindedness in all links of the chain, even at our suppliers, and we think that is the case at Euromaint Rail. We ve had extremely high availability for our trains and a good relationship with both the people actually carrying out the maintenance and those at management level. A-Train s challenge: Punctual, fast and environmentally friendly journeys that always take place. EuroMaint s solution: Preventive and remedial maintenance, plus overhauls and supply of materials. Customer value: Complete and punctual trains in service. EuroMaint Annual Report 13

16 OFFERING PASSENGER TRAFFIC Remote Vehicle Monitoring Remote Vehicle Monitoring RVM means the maintenance can be more efficient thanks to real-time monitoring of the condition of the rolling stock. When a fault arises in the electrical systems, Euromaint receives information immediately and can act straight away. RVM also means that planned maintenance can be prepared and systematic faults can be detected earlier. As a result, more trips can be run with the existing train fleet. 1 Kundportal The train computer receives signals from the electronic systems on the train and generates fault codes. 5 Customer portal The information on the train s condition is displayed in a customer portal, where you can: see the utilisation ratio see improvement proposals engage in dialogue on rolling stock obtain positional information to facilitate traffic planning see key ratios. GSM 2 The data is forwarded via RVM. out during the ordinary operational pauses, which increases the time the train can be used in traffic. Corrective maintenance to remedy faults and deficiencies is, where possible, carried out during planned visits to the workshop or in connection with preventive maintenance. Remote monitoring creates added value for customers Remote monitoring of different train systems is one of the tools utilised by Euromaint to create added value for its customers. The Remote Vehicle Monitoring (RVM) system means that Euromaint, via a real time connection to the train computer, can obtain information about fault indications and the train s geographical position. This information is analysed by experienced fault tracers and rolling stock engineers who determine what should be done, either immediately or 3 4 EuroMaint Euromaint makes a diagnosis, books the train in for maintenance in dialogue with the customer, and prepares actions. The data is transformed into information and sent to Euromaint for analysis and processing. 6 EuroMaint workshop When the train comes in, the work has been prepared and the action time can be reduced. in conjunction with the next planned visit to the workshop. Remote monitoring makes it possible to plan the action and order material in advance, even though the rolling stock has not been checked for faults before it arrives at the workshop. This reduces the time the train spends at the workshop and makes the maintenance more efficient. With the customers quickly receiving relevant status information about the prioritised maintenance needs of their rolling stock, the train services can be planned in a better way and provide useful support for the driver and other staff onboard. Efficient component and material supply Euromaint offers a complete component and material supply service to its customers. The offering includes sourcing, stockkeeping, comprehensive logistics solutions and a unique range of spare parts. Euromaint s purchasing organisation already has established relationships with important manufacturers and subcontractors. This means that the company creates cost benefits when purchasing spare parts. The company also offers reprocessing of high-value components such as wheels, bogies and traction motors. Aided by a well-established logistics system, the correct components and spare parts are delivered to each workshop for planned maintenance work. Safety in focus Safety awareness is high at Euromaint. Certain elements of the maintenance work are carried out in demarcated areas, where entry is restricted to authorised maintenance staff. In the zone, mobile phones are banned and talking with the engineers while they are inside is not permitted. Traceable, registered torque wrenches are used to tighten the bolts connected to the axletrees. This gives certified proof that every bolt has been tightened to exactly the correct torque. Passenger traffic offering in Germany In Germany, Euromaint s offering has concentrated on overhauls and refurbishment of passenger carriages. In the coming years, the need for overhauls of multiple units (EMU and DMU trains) will increase. Euromaint also offers what are termed roll-out services, which involves the company completing and fine-tuning passenger trains for delivery, on assignment from the train manufacturers. A German maintenance offering for passenger traffic in line with the Swedish maintenance concept is currently under development. The fact that Euromaint also carries out warranty actions on assignment from the train manufacturers is a strength since new trains are now about to be brought into service. EUROMAINT S CUSTOMERS WITHIN MAINTENANCE OF PASSENGER TRAFFIC ROLLING STOCK 14 EuroMaint Annual Report

17 OFFERING PASSENGER TRAFFIC Punctuality demands reliable rolling stock Since December, Euromaint has been in charge of the maintenance of SJ rolling stock operating the Sala Linköping route. We re very pleased so far; the availability has been good, says Johan Rydén, a rolling stock engineer at SJ. Safe, comfortable, sustainable journeys that represent value for money and arrive at the final destination in all situations. That is SJ s promise to its customers. One of the major challenges at the moment, which SJ shares with the Swedish Transport Administration and other train operators, is improving punctuality. This is something we re working really hard on together, and having railworthy and reliable rolling stock is a vital element of that work. We chose Euromaint because they have extensive expertise within the railway industry and an established network of subcontractors. We also have good experience with them elsewhere in Sweden where they maintain both our SJ2000 train units and InterCity trains, says Johan Rydén. Ahead of this assignment Euromaint used its NPI process, New Product Introduction, which step by step describes what needs to be done before new pieces of rolling stock are taken to a workshop and also how the maintenance should be handled once it is up and running. By keeping an eye on all elements before a contract starts, we can guarantee troublefree production that maintains high quality right from day one, says Ketil Torp, contract manager at Euromaint. SJ s challenge: Safe, comfortable, sustainable journeys that represent value for money and take the passengers to their destination. EuroMaint s solution: Preventive and corrective maintenance, including material supply, with well-defined processes as back-up. Customer value: Railworthy and reliable trains every day. EuroMaint Annual Report 15

18 OFFERING FREIGHT TRAFFIC A strong position providing customer benefits With a network of workshops covering large areas of Germany and a presence in important ports in the Benelux region, combined with the Swedish workshops, Euromaint can follow freight wagon owners from Luleå in the north to Oberhausen in the south. This gives the company advantages in the European market for maintenance of rolling stock for freight traffic. Euromaint has a comprehensive range of maintenance services for rail freight traffic. Maintenance of freight wagons involves a relatively small proportion of preventive actions. Generally speaking the overall maintenance plan sees the freight wagons undergo a major overhaul every three to seven years. However, some wagon owners and operators like their wagons to be inspected regularly, for example on an annual basis, to reduce corrective maintenance. Yet most maintenance on freight wagons consists of corrective actions such as replacing brake blocks or damaged wheels. Mobile maintenance an increasingly important factor Mobile maintenance has become an increasingly important part of the total maintenance solution for freight rolling stock. This involves remedying faults and damage directly on site whenever possible. This increases availability. The operator which owns or leases the wagon can thus be confident that the wagon is in service as much as possible. If the maintenance partner can offer service on site, the stoppage will be significantly shorter than if the wagon has to be transported to a workshop. Mobile maintenance is important, particularly in northern Sweden where it can be a long way to the nearest workshop. Euromaint has developed several different mobile maintenance solutions for supplying help alongside the track, or on site with the customer in ports and at terminals. This includes light, equipped vans for simpler actions as well as heavy trucks with equipment for handling more complex damage. Buffers, springs and wheels can be replaced today directly at the scene of the damage. With a portable lathe, even wheels can be turned in the field. Moreover, Euromaint has a mobile concept for testing brakes, which means the rolling stock no longer needs to be transported to the workshop to undergo these tests. This complete offering means the customers can reduce the number of maintenance partners, resulting in more efficient administrative processes and follow-up. Sweden Euromaint has a complete range of maintenance services for corrective maintenance and overhauls as well as the reprocessing of components. Maintenance and refurbishment of freight locomotives are also offered in Sweden. This means that the company s offering for rail freight traffic is unique in comparison with its rivals which maintain either locomotives or freight wagons. In Sweden, overhauls of freight wagons are carried out at the workshops in Landskrona and Luleå. The company has expertise and experience, regardless of whether the overhaul concerns wagons for bulk transports, tank wagons or container carriers. This is combined with an attractive offering for the refurbishment of freight wagons. This could, for example, involve a freight wagon for transporting steel being adapted to transport timber instead. What s more, during the year the company was the first in Sweden to gain ECM certification for maintenance of rolling stock designated to transport hazardous goods. One example of the company s expertise in refurbishing freight locomotives is the four model T46 terminal locomotives that are being refurbished on behalf of LKAB. Refurbishments are extensive assignments that set stringent requirements for expertise and experience, since they often involve rebuilding a locomotive from the ground up. Germany and the rest of Europe Euromaint s operational activities in Europe are based at the company s workshops in Germany, which focus on overhauls and reprocessing of components. At the Kaiserslautern workshop, reprocessing of high-value components such as couplers, bumpers and draft gear is also offered. EUROMAINT S CUSTOMERS WITHIN MAINTENANCE OF FREIGHT TRAFFIC ROLLING STOCK 16 EuroMaint Annual Report