Annual Results 2008/2009

Transcription

1 Annual Results 2008/2009

2 Contents Financial statements Financial statements The market Strategy The market Faiveley Transport Outlook Strategy Outlook Outlook 2

3 Financial statements Financial statements Strong The Financial sales market statements and profitability growth Strategy The market in 2008/2009 Outlook Strategy Outlook 3

4 Key figures 2008/2009 % change Sales % Order backlog 1, % Ebitda % Net profit Group share % 4

5 Financial year sales Par Product ligne Line de produits Geographical Zone Par zone géographique Cust. Services 30% Couplers 2% Electromecanic 3% On Board Doors 12% Platform Screen Doors 4% Asia Pacific 14% Americas 7% Brake Systems 25% Air Conditionning 18% Electronics 6% By type of activity Original equipment growth: + 26% Customer service growth: + 16% Europe 79% 5

6 Group consolidated income statement (1/2) ( millions) 31/03/ /03/2008 % change Published Published Sales % Profit from operations % as % of sales 13.4% 13.0% Other operating income and expenses (0.7) (1.9) Operating profit % as % of sales 13.4% 12.8% EBITDA (1) % as % of sales 15.2% 14.7% (1) : Operating profit + amortisation and depreciation > A highly dynamic financial year (sales up 18.5% on a like for like basis) and strong growth in operating profit 6

7 Group consolidated income statement (2/2) ( millions) 31/03/ /03/2008 % change Published Published Operating profit 113,8 88,4 28,7% as % of sales 13,4% 12,8% Financial Cost (14) (5) Income tax (28) (26) Net profit 71,2 57,6 23,6% as % of sales 8,4% 8,3% Minority interests (20) (21) Group share 51,5 36,3 41,8% as % of sales 6,0% 5,2% Earnings per share ( ) (1) 4,06 2,98 36,4% (1) : based on the weighted average number of outstanding shares over the financial year (12,667,172) > Strong growth in Net profit Group share Subsidiary minority interests (excluding Sagard and Managers): 1.5 million > The shareholding reorganisation carried out in December 2008 had a 13% earnings enhancing effect on net profit for the year. 7

8 Analysis of Financial Result ( millions) Cash inflow Interest received 1,6 Net exchange gains 1,5 3,1 Net cost of borrowing (17,7) Cash outflow Other income 42,2 Interest and related hedging (17,9) Interest and cash expense (18,6) Other expenses (38,9) Guarantees and other bank charges (2,0) Exchange gains 5,5 Net finance result (14,4) Net premium on options (0,2) Non-cash items (1,4) (20,1) (14,4) Non-cash transactions Unrealised exchange gains + IAS32/39 4,0 Interest on pension commitments (1,5) Others 0,1 2,6 8

9 Focus on foreign exchange: Operations mainly in the Euro zone Analysis of sales by currency 31/03/2009 % ( millions) EUR % CNY % GBP % INR % USD % SEK % CZK % Other % Consolidated sales 852 Modest sensitivity: > Impact of 10% increase in value of all currencies against the Euro: Sales : 3.0% of sales; Operating profit: 0.3% in sales 9

10 Group consolidated balance sheet ( millions) 31/03/ /03/ /03/ /03/2009 Published Published Published Published ASSETS EQUITY & LIABILITIES Group equity Goodwill Minority interest equity Property, plant and equipment Equity Deferred tax assets Non-current provisions Non-current assets Deferred tax liabilities Non-current borrowings Inventories Non-current liabilities Operating receivables Current provisions Current financial assets Current borrowings Cash and cash equivalents Overdraft + non-deconsolidated factoring Current assets Operating liabilities Current liabilities TOTAL ASSETS 1, TOTAL EQUITY & LIABILITIES 1, > Impact of shareholding reorganisation and acquisitions > Trade receivable deconsolidation programme increased to 98 million ( 58 million at 31/03/08) 10

11 Consolidated balance sheet Main changes CHANGE IN GOODWILL FT Gennevilliers 1.0 Ellcon National 28.6 Faiveley Transport Other (0.7) % change CHANGE IN FINANCIAL DEBT Refund of existing debt (89.7) New debt Other changes (1.7) % change CHANGE IN EQUITY Share capital increase + premiums 87.1 Cash dividends (4.9) Translation adjustment (21.0) Net profit for the year 71.2 Reduction in minority interest (121.6) Other movements (0.6) % change

12 Working capital requirement 31/03/09 31/03/08 Change WCR ( millions) 43,8 50,9 (7,1) Eliminations Group structure change (10,6) Var. Disposal of receivables 40,7 Var. Losses on completion (2,1) Var. Impact IAS 32/39 projects 5,6 Change in management WCR 26,5 Volume effect 25,8 Performance effect 0,6 > Well controlled WCR in spite of strong sales growth 12

13 Features of new bank debt EUR USD Loan 407 million 50 million Revolving loan (undrawn) 49 million - Half-yearly amortisation 50% over 5 years 50% over 5 years Repayment deferral 6 months - Bullet 50% over 5 years 50% over 5 years Maturity December 2013 December 2013 Rate Euribor Libor $ Interest rate hedge 61% at 3 years 100% at 4 years > Covenants: Max Net Debt/EBITDA = 3.5 Value at = 2.33 Max Net Debt /Equity = 1.8 Value at = 0.99 > Estimated borrowing costs over 2009/2010: 3.4% (including hedges and margins) 13

14 Cash flow statement ( millions) 31/03/ /03/2008 Published Published Self-financing capacity (1) % change in WCR (2) Cash flow from operating activities Capital expenditure (15.6) (10.1) Acquisition / disposal of subsidiaries (457.6) (2.1) Cash flow used in investing activities (473.3) (12.2) Share capital increase Acquisition of treasury shares (0.0) 0.4 Other equity movements (1.3) 0.0 Cash dividends paid (4.9) (10.3) Increase (decrease) in borrowings (30.0) Cash flow from (used in) financing activities (39.9) Exchange losses / change in value of cash equivalents (26.7) (5.8) Net increase in cash and cash equivalents Cash and cash equivalents at start of period Cash and cash equivalents at end of period (1) : after restatement for movements in provisions for losses on completion (2) : after restatement of provisions for losses on completion 14

15 Financial structure ( millions) 31/03/09 31/03/08 Change Cash and cash equivalents Financial receivables Financial debt Restatement for treasury shares NET DEBT (20.5) > Capacity to make acquisitions > Dividend proposed to the Annual General Meeting: 1.00 / share 15

16 Sound shareholding structure Faiveley Float Family 56.3% 5.6% 38.1% 71% 71% Analysis of the float 29% 29% France International Number of shareholders by nationality Operating Subsidiaries Shareholders holding more than 0.01% of the share capital 16

17 Share performance 60,0 50,0 Faiveley (up 35.22% over 1 year) CAC Mid100 (down 26.37% over 1 year) 40,0 30,0 20,0 10,0 0,0 sept.-04 déc.-04 mars-05 juin-05 sept.-05 déc.-05 mars-06 juin-06 sept.-06 déc.-06 mars-07 juin-07 sept.-07 déc.-07 mars-08 juin-08 sept.-08 déc.-08 mars-09 juin-09 > Market capitalisation at 26/06/2009 (closing: 54.94): 791 million > CAC MID100 index > Number of shares 14,404,711 > 12 month high: (02/04/09) / 12 month low: (08/10/08) > Average daily trading over three months: 30,000 shares vs 13,400 shares in July v 3.3

18 The market Financial The railway statements market : The Financial market statements Crisis or no crisis Strategy The market Outlook Strategy Outlook 18

19 Medium term market outlook A growing global market SCI Verkehr GmbH The Worldwide Market for Railway Technology 2008 Unife Roland Berger study June 2008 North America Current market size: 24.7 billion AGR* 4.1% Western Europe Current market size: 38.5 billion AGR* 3.1% Eastern Europe Current market size: 11 billion AGR* 3.4% CIS Current market size: 12.8 billion AGR* 6.6% Asia Current market size: 29.8 billion AGR* 5.6% 2008/2016 growth 2% to 3% annual growth of which + 7% for high speed trains Central & South America Current market size: 2,5 billion AGR* 18.4% Africa / Middle East Current market size: 3.6 billion AGR* 3.7% Australia / Pacific Current market size: 2.4 billion AGR* 5.4% * AGR: Average Growth Rate 19 19

20 Limited impact of the crisis based on the most likely U scenario > Global economic scenario A long and significant economic crisis Economic depressions avoided due to recovery plans > Railway scenario Boston Consulting study Group Scenario April U The railway industry will be less affected by the crisis than other industries Risks are different depending on the region and market segments:» Sharp reduction in freight over the coming 3 to 5 years» The Chinese market still experiencing strong growth due to its high potential domestic market and recovery plans Average growth between 2% and 3% until 2016; certain projects deferred?" Protectionism risk:» Preference for local industries» Slowdown in liberalisation of transactions 20

21 Growth supported by the States recovery plans over the next 5 years Boston Consulting study Group Scenario April 2009 > China: 85 billion 30% infrastructure 70% rolling stock > Investments spread over 5 years from 2009/10 > Segments: passenger, underground & high speed trains > Western Europe: 20 billion 30% infrastructure 25% rolling stock 45% Services & Maintenance > USA: US$ 11 billion 30% infrastructure 50% rolling stock 20% service and modernisation Investments spread over 5 years > France: 600 million > Germany: 11 billion > Italy: 1.4 billion > Spain: 140 million > UK: 1 billion > EU: 5 billion > Investments spread over 5 10 years > Segments: passenger, underground, locomotives & high speed 21

22 A diversified portfolio that guarantees sales growth Project portfolio ( millions) 31/03/08 31/03/09 % change Order backlog 1,005 1, % Original equipment backlog % Customer Services (CS) backlog % Number of original equipment contracts > 1 million 377 Number of CS contracts > 1 million 23 > Original equipment: 20 months of sales; Customer services: 6 months of sales > Increase in order backlog to benefit sales in the medium term 22 v 3.3

23 The railway market will remain driven by sound fundamentals 23

24 Faiveley Transport Financial An international statements Group The Financial profiled market statements for varied, Strategy The complex marketand evolving Outlook Strategy markets Outlook 24

25 An accessible market of over 85 billion ( billions) Average global market Track Infrastructure Rolling stock Services Car Builders Operators Faiveley Transport market total accessible Source: Roland Berger Unife

26 Rolling stock and services Faiveley Transport s core market High Speed Trains Locomotives Electrical, electrical diesel hydraulic diesel Passenger carriages Freight Wagons Light Cars Trams Underground People Movers Miniunderground Airport shuttles Customer Services 26

27 Current Collection 3 rd worldwide A leading player Air conditioning systems 1 st worldwide Platform doors 1 st worldwide Electronics Integrated into all Faiveley equipment On board access doors 2 nd worldwide 1 st high speed doors Braking systems 2 nd worldwide Couplers 3 rd worldwide 27

28 Market realities A specific solution for each type of railway transport requirement Operator National and private operators Public / private transport > Passenger > Freight > Traction Long term performance objectives (30 years+) Manufacturer 30 manufacturers in the world A specific solution to each manufacturer >Technology > Safety > Reliability > Cost > Aesthetics Research of a high differentiation level Equipment manufacturers 3 global players System offering Specific added value for each solution An answer to differentiation needs Guaranteed long term service 28

29 A sound business model R&D System Engineering Project engineering Purchases Manufacturing Key processes Management of international projects Customer services Maintenance Spare parts Renovation Original equipment Integration Tests Commissioning C U S T O M E R 29

30 A flexible, global network close to customers Western Europe Eastern Europe 39 sites in 22 countries 19 sites: 16 production sites, including 6 centres of excellence 3 commercial sites 2,658 employees 4 sites: 3 production sites, including 1 centre of excellence 1 commercial site 371 employees North America 1 production and centre of excellence site 289 employees Asia 12 sites, including: 8 production sites 4 commercial sites 1,122 employees South America 1 production site 87 employees Australia 2 production sites, including 1 centre of excellence 92 employees 30

31 In order to anticipate the trends of the railway market: The performance driven Moving Forward plan Sales Project Management Procurement Overheads ERP IT infrastructure Guaranteeing profitable sales growth 31

32 Moving Forward Faiveley Management System (FMS) > A performance assessment system Rolling out good practices in each business: 45 basic rules > 11 industrial sites have rolled out the FMS since September 2008 > Objective: Comprehensive audit over the next 2 years of: 90% of centres of excellence 70% of sites > Examples of steps implemented following an audit Reduction in production time of blower parts in Italy 30% reduction in floor area in workshops, shipping areas and engineering & design department in Spain Display of customer complaints: the faults library : Operational responsiveness 32

33 Supply chain Moving Forward Delivery on schedule > Group planning process > Supplier & production performance Inventories (days)* 2006/ / / /10 * On Time Delivery = O days delay for all parts Inventory management and reduction of production time > Sales & operations planning > Change of engineering process > ERP implementation (Movex) > Reduction in the number of suppliers 33

34 Moving Forward Quality > Focus on the quality function (project, engineering, production, suppliers) > Focus 0 km Quality & Reliability > Reduction of COPQ (Cost of Poor Quality) Example: Faiveley performance for a major customer (ppm: faulty parts per million) 25,000 20,000 15,000 10,000 5, , , / / / / / /11 34

35 Moving Forward Flexibility and Responsiveness > Transfer of operations from the Philadelphia site to Ellcon: 5 months > Re shaping of Ellcon s freight business: 3 months > Transfer of technology from Amiens to Qingdao and 50 million contract carried out in 18 months 35

36 Moving Forward Ambitious management > Performance interview and support > Promotion of multi skilled personnel > Strong responsibilities given to local managers > Significant commercial and industrial responsiveness > Opportunism in acquisitions 36

37 Organic growth potential to develop > A potential of new or still under represented clients Siemens, General Electric, EMD > Strengthened international coverage and agents network > Ongoing partnership agreements in new markets Russia, Romania, US, Iran, etc. Opportunities to grow through acquisitions > Product and geographic complementarity 37

38 Faiveley Transport, positive dynamics > Stable sales level in 2009/2010 > A sustained order intake to prepare for the future > Maintained economic and financial performance > Debt reduction 38

39 Shareholders agenda 2009/2010 Date 22 July September October November January 2010 Event Q1 sales Annual General Meeting Half year sales Half year results Q3 sales 39