FULL-YEAR 2020 RESULTS STADLER RAIL

 
FULL-YEAR 2020 RESULTS STADLER RAIL
FULL-YEAR 2020 RESULTS
STADLER RAIL

Peter Spuhler, Executive Chairman and Group CEO a. i., Raphael Widmer, Group CFO
11 March 2021
FULL-YEAR 2020 RESULTS STADLER RAIL
REPRESENTING STADLER TODAY

          Peter Spuhler                                      Raphael Widmer
          Executive Chairman                                 Group CFO
          and Group CEO a. i.

Stadler full-year results 2020 | © Stadler | 11 March 2021                    2
FULL-YEAR 2020 RESULTS STADLER RAIL
AGENDA

  1
                                                             Peter Spuhler, Executive Chairman
            Highlights 2020
                                                                            and Group CEO a. i.

  2
            Full-year 2020 financial results                      Raphael Widmer, Group CFO

  3
                                                             Peter Spuhler, Executive Chairman
            Summary and outlook
                                                                            and Group CEO a. i.

Stadler full-year results 2020 | © Stadler | 11 March 2021                                        3
FULL-YEAR 2020 RESULTS STADLER RAIL
HIGHLIGHTS 2020
FULL-YEAR 2020 RESULTS STADLER RAIL
WE ARE AN INDUSTRY LEADER
                    >8,500 Stadler trains and locomotives running in 43 countries every day

                       465                vehicles delivered in 2020

                      >200                million kilometres covered every year by vehicles serviced by Stadler

                         12               core sites across high- and low-cost countries

                  >12,300 employees(1), including engineering team of over 1,700 employees

                      ~11 %               net sales CAGR over the last decade(2)

                       16.1               billion CHF backlog as at 31 December 2020

                       549                trains and locomotives ordered in 2020
Notes:
(1)      average FTEs 1 January to 31 December.
(2)      2010-2020.

Stadler full-year results 2020 | © Stadler | 11 March 2021                                                 5
FULL-YEAR 2020 RESULTS STADLER RAIL
COMPREHENSIVE PORTFOLIO
 Market segments and vehicle families                                                                                   Order backlog contributions 2020

                      Market                                                                                                           Reporting segment
    Type                                                     Vehicle families
                     segment

                    Very High                                                                                                26%
                                                             Not a strategic focus
                     Speed                                                                                                                               Rolling Stock
                                                                                                                                                         Service & Components
                   High Speed                                                                                                             74%

   Trains            Intercity                                                                                                            Market segment

                    Regional /                                                                                                                           Trains
                    Suburban                                                                                                 26%                         Locomotives
                                                                                                                                           35%

                                                                                                   Services & Systems
                                                                                                                                                         Metro
                     Coaches                                                                                                12%                          LRV

                                                                                     Tailor-made
                                                                                                                                          6%             Tailor-made
                                                                                                                               9%
                                                                                                                                    12%                  Service & Components
                     Main-line
                   locomotives
   Loco-
  motives                                                                                                                                 Regional markets
                     Shunting
                   locomotives                                                                                                                           DACH
                                                                                                                              10%
                                                                                                                                                         Western Europe
                                                                                                                                 2%
                                                                                                                            10%                          Eastern Europe
    Metro              Metro                                                                                                      1%       43%
                                                                                                                                                         Americas
                                                                                                                                                         CIS
                      Tram /                                                                                                  34%
     LRV                                                                                                                                                 Rest of the world
                    Tram Train

Stadler full-year results 2020 | © Stadler | 11 March 2021                                                                                                                   6
FULL-YEAR 2020 RESULTS STADLER RAIL
FULL-YEAR 2020 KEY FIGURES

                                                    Vehicles delivered                               Order intake                  Order backlog
                                                                 Order intake                                               Order Backlog
                                                    465                                              CHF 4.3bn                   CHF 16.1bn
                                                    +5%(1)               CHF X.Xbn                   -15%(1)                CHF XXbn
                                                                                                                                 +7%(1)
                                                                         +XX%                                               +XX%

                                                                                                     Net revenues                  EBIT margin
                                                                                                     CHF 3.1bn                     5.1%
                                                                                                     -4%(1)                        -1 %-pts(1)

                                                                                                     Free Cash Flow(2)             Net profit
                                                                                                     CHF -458.9m                   CHF 138.4m
                                                                                                     -CHF 130.0m(1)                +8%(1)

(1)   Change year-on-year.
(2)   Defined as EBITDA –Capex –Change in NWC. EBITDA is calculated as the sum of EBIT and depreciation and amortization.

Stadler full-year results 2020 | © Stadler | 11 March 2021                                                                                         7
FULL-YEAR 2020 RESULTS STADLER RAIL
COVID-19 IMPACT
                                                             – Demand remaining strong, no order cancelations and no
                                                               large tenders lost
                   Market
                                                             – Ongoing tenders largely on track but some final decisions
                   environment                                 postponed due to Covid-19 and appeals by competitors
                                                             – New tenders being launched
                                                             – Interruptions to internal and external supply chains
                   Impact on                                 – Travel restrictions affecting Stadler employees, homologation
                   Operations                                  officials and customers which impacts final payments
                                                             – All plants currently operating at largely normal levels

                                                             – Health and safety measures initiated immediately
                   Counter                                   – Adapting assembly sequences and working shift times with
                   measures                                    employees partially working remotely
                                                             – Decentralised supply chain

                                                             –   Partial recovery of deferred revenues achieved in H2 2020
                   Financial                                 –   Adverse effect on net working capital
                   impact                                    –   Service & Components impacted by lower mileage
                                                             –   Significant order backlog and resilient end market

Stadler full-year results 2020 | © Stadler | 11 March 2021                                                                     8
FULL-YEAR 2020 RESULTS STADLER RAIL
ORDER INTAKE HIGHLIGHTS 2020
 Tyne & Wear Metro                                           Metro Berlin                              LRVs

 −    42 METRO trains, a new                                  Framework agreement for up to            Up to 80 TRAMLINK for Milan (EUR
      maintenance plant and a 35-year                          1,500 METRO cars valued at up to          172.6m). Firm order for 30 trams
      service contract                                         EUR 3.0bn                                24 TRAMLINK for Jenaer
 −    Valued at c. GBP 700m                                   First call-off for 606 cars including     Nahverkehr (EUR 92m), with option
                                                               spare parts amounts to EUR 1.2bn          for up to 19 additional vehicles

 Tailor Made                                                 Mainline                                  Signalling

  MGB ordered 12 out of 27 new                                 21 additional KISS trains ordered        Full homologation for GUARDIA
   «ORION» trains for c. CHF 150m                                by the Hungarian Railways for over        European Train Control System
  20 “Capricorn” trains worth CHF                               EUR 300m                                 First ETCS refit contract for Stadler
   170m in an option call-off from RhB                          Twelve more KISS trains for Mälab         won in the Netherlands
  Eight New tailor-made trains for the                          for over CHF 130m                        First urban mass transit signalling
   Centovalli railway                                                                                      system awarded (MARTA)
Stadler full-year results 2020 | © Stadler | 11 March 2021                                                                                         9
FULL-YEAR 2020 RESULTS STADLER RAIL
SIGNALLING: ACHIEVEMENTS 2020 AND
OUTLOOK
                                            Milestones in 2020                                       Outlook
  CBTC(1)                                   First urban mass transit signalling
                                            system awarded to Stadler: Supplying a                   Stadler in dialogue with several
                                            CBTC-like train control system(2) on the                 European metro operators
                                            new Stadler vehicles for MARTA (Atlanta,
                                            USA)

  ETCS(3)                                                                                            Homologation in 10 countries
                                             Homologation in Switzerland and Poland                  until 2022 expected
                                             Homologation under way in Hungary,
                                             Slovenia, Italy, and Germany                            Retrofit market potential

  ATO(4)
                                            First automatically operated train ride with
                                                                                                     Increasing demand for ATO in
                                            passengers in the Netherlands – achieved
                                                                                                     numerous tenders
                                            by using the Stadler ATO

                                                  Stadler is delivering across all signalling market segments
(1)   Communication Based Train Control
(2)   Derived from Stadler’s full CBTC solution
(3)   European Train Control System
(4)   Automatic Train Operation

Stadler full-year results 2020 | © Stadler | 11 March 2021                                                                          10
MARKET OUTLOOK
TOTAL OEM AND TARGETED MARKETS 2020 VIEW
                                                                                                                                                                              Stadler’s strategic markets
                                                 Global rolling
                                                 Global rolling stock
                                                                stock                                      Targeted market
                                             1                                                       2        segments                                                                3   Targeted regions
                                                    OEM market
                                                    OEM   market

                         2019(1) market size (€Bn)           54                                                     35                                                                             27
                         2014-19(1)   CAGR                +1.7%                                                  +2.2%                                                                            +4.7%
                         2019-24(1) CAGR                  +3.6%                                                  +4.4%                                                                            +2.3%

                                                                                                    Freight
                                                                                                      Cars
                                                                                                                    12
   Rolling Stock

                                                                                                     VHS(2)          8

                                                                                                         HS          2
                   OEM                                                                                                                                                       East
                                                                                                                                                                            Asia(3)
                                                                                                                                                                                          7

                                                                                                                                                       Opportunistic
                                                                                                         MU         10                                                                                       HS          2

                                                                                                                                                         markets
                                                                                                                                                                              RoW
                                                                                                                                                                           South-         8
                                                                                                                                                                         east Asia                           MU          9
                                                                                                      Metro          9                                                         CIS
                                                                                                                                                                                          1
                                                                                                                                                                                          4
                                                                                                                                                                             North                         Metro         4
                                                                                                         LRV                                                              America         3
                                                                                                                     3                                                                                      LRV          2

                                                                                                                                                       markets
                                                                                                                                                       Home-
                                                                                             Locomotives             7                                                     Europe         12        Locomotives          6
                                                                                                  Coaches            3                                                                                    Coaches        3
                                                                                                               By segment                                                             By region                     By segment

                                                                                                                                                                                                                    2019-241)
                                                                                                                                                                                                                      CAGR
                                                                                                                                                                       Service                     ~7
                                                                                                                                                                                                                      +2.8%

                                                                                                                                                                                                                     2019-241)
                                                                                                                                                          System                                                      CAGR
                                                                                                                                                                                                   ~18
                                                                                                                                                        Technology4)                                                +1.0% (5))
Source: SCI (2020).
Market volumes based on € value of equipment and services delivered.
(1)   2019 market size defined as average of 2018-2020, 2014 defined as 2013-2015 average and 2024 defined as 2023-2025 average.
(2)   Very High Speed trains (VHS) defined as trains with top speed above 251km/h.
(3)   East Asia defined as China + South Korea + Japan. Rest of the World (RoW) includes Asia (excluding East Asia), South and Central America, Middle East and Africa.
(4)   System Technology includes Control, Command and Signalling (CCS) and Passenger Information Technology (PIT); excluding East Asia.
(5)   Expected CAGR 2019-2024 for western Europe: +2.2%.
Stadler full-year results 2020 | © Stadler | 11 March 2021                                                                                                                                                                       11
COMPETITIVE LANDSCAPE
MARKET SHARE BY REGION

                                                                 Home markets                                                                              Opportunistic markets
             North America: EUR 2.6 bn                                                                     Europe: EUR 11.9 bn                                     CIS: EUR 4.2 bn
                                                                                                           Other
        7%
                                                                         12% HS                                17%                   Bombardier
                                                    Bombardier                                                                                         19% Stadler (2%) Other
                             Other                                                                                             28%                             Alstom
       39%                                                                                                                                             11%            1%
                                     23%                                                  Hitachi Rail 5%                                               6% Siemens 2% 11%
                                                   37%                                                                                                                   2%
                                                                         47% MU                                                                                      13%
              Stadler (1%*)             4%                                                            CAF 6%
       16%                           7%                                                                                                                44%   Sinara
              Progress Rail           7%                                                                                                                                             71%
                                                                          8% Metro
       26%                             10% 12%                                                 13%                                                                                         TMH
                       Kawasaki                       CRRC               13% LRV                                               16%
                                                                                       Siemens
                         GE / Wabtec                                     12% Locomotives                                             Alstom            21%
       12%                                                                                                           15%
                                                                          3% Coaches
                                                                                                          Stadler (15%)

                                                                                                                                 Opportunistische Märkte
                                                              RoW: EUR 8.0 bn                                                    Southeast Asia: EUR 0.6 bn

                                                                                                                      10%
                          25%                                                                                                                 Other              CRRC
                                                              Other                    CRRC
                                                                      22%                                                                         21%
                          20%
                                                                                                                                                                 34%
                           3%               Hyundai Rotem                                                                        Hitachi Rail         4%
                                                                      5% 3%          50%                              64%
                                  Modern Coach Factory                                                                      Vietnam Railways 6%
                          30%                                   5%                                                                            8%
                                                         Alstom   15%                                                           Hyundai Rotem              27%
                                                                                                                                                                   Industri Kereta Api
                                                                          ICF                                         2%
                                                                                                                      4%
                          22%
                                                                                                                      10%
                                                                    2018: Stadler 1%

    Market leaders: CRRC (31%), Bombardier & ICF (9%
  each), TMH (8%), Alstom (7%) followed by Siemens and                                                                Stadler is particularly strong in Europe (No. 3).
                     Stadler (4% each).
Source: SCI (2020), SCI marketstudy Worldwide Market for Railway Industries 2020.
Market share based on delivered units in 2019 (average 2018-2020). High Speed (HS) 200 to 250 km/h.
*(2018 values)
Stadler full-year results 2020 | © Stadler | 11 March 2021                                                                                                                                       12
COMPETITIVE LANDSCAPE
GLOBAL MARKET SHARE BY SEGMENT
                                 EMU/DMU: EUR 9.8 bn                                                                     Focus segments                      Locomotives: EUR 7.2 bn

                                                                              Bombardier                                              Southeast                  Other
        23%                                                                                                                           Asia                                                TMH
                                                                         18%                                                                                           17%
         1%                            Other                                                                                  38%                 Stadler (1%)                      25%
         9%                                                                                                                           RoW
         2%                                     34%                                                                                                 Siemens
                                                                                                                              0%                                 5% 1%
                                                                                                                              29%     CIS
                                                                                 15% ICF                                                             Sinara 8%
        64%                                                                                                                   10%
                                                                                                                                      North America               9%                 17%
                                                   5%                                                                         23%                         DLW                              CRRC
                                                                           12%
                                                        6%                                                                            Europe                             9%   10%
                                            TMH
                                                                11%              Alstom
                                                CRRC                                                                                                               CLW         GE / Wabtec
                                                          Stadler (17%)

                       Metro: EUR 9.2 bn                                                              LRV: EUR 2.6 bn                                              HS: EUR 2.4 bn

                               Other                                               11%
                                                                                    0%
                  Stadler (3%)                                                      9%                                      Bombardier                          Stadler (6%) Other
        36%             TMH                                                                               Other                                              Hitachi Rail    8%
                               1%                                                  17%                                  13%        Alstom
               Bombardier                                                                                                                                                 6%
         9% Hyundai Rotem 4% 4% 12%                                                                                         12%                                              2%
                            6%
                                                                                                              41%                                            Siemens 8%
        11%                                                                                                                                          100%                             55% CRRC
                    Alstom
                            6%                                                                                              10%
                                                                                                                                    TMH                          Alstom 8%
        23%                                               67%                                                                                                             12%
                                                                                   62%                                      9%
                                                                  CRRC                                              6% 9%
                                                                                                                                 Stadler (9%)                    Bombardier
        21%                                                                                                  CRRC       CAF

                                                                                                                                                            On the basis of Global market
                                                                                                                                                            excl. China, South Korea and Japan

                                                                                                                     Global potential in Locomotives, Metro, LRV und
             Stadler is strong in EMU/DMU segment.
                                                                                                                                 High Speed segments.
Source: SCI (2020), SCI marketstudy Worldwide Market for Railway Industries 2020.
Market share based on delivered units in 2019 (average 2018-2020). High Speed (HS) 200 to 250 km/h.
Excluding Coaches .
Stadler full-year results 2020 | © Stadler | 11 March 2021                                                                                                                                        13
COMPETITIVE LANDSCAPE
MARKET SHARE EUROPE BY SEGMENT

                                                                                              Home markets
       Focus segments

                             LRV: EUR 1.5 bn                                                                                                         Locomotives: CHF 1.5 bn

                                                Bombardier                                                                                                     Other
                                                                                                                                                        Alstom
                       Other                                                                                                                     Stadler (2%)    10%
                                            18%
                                30%                    Stadler (15%)                                                                                 Newag 4%             41%
                                                                                                                                                                                Siemens
                                                                                                                                                                5% 5%
                                                16%                                                                                                 Vossloh 6%
                               10%                                                                                                                            7%
                                       14%                                                                                                           CZ Loko
                      Skoda        12%                                                                                                                            23%
                                          CAF
                              Alstom                                                                                                                       Bombardier
                                                                                                  EMU/DMU: CHF 5.5 bn

                           Metro: CHF 0.9 bn                                                          Other                                           Highspeed: CHF 2.1 bn
                                                                                            CAF            9%
                               Other                                                                                                             Stadler (7%) Other
                                                                                                      7%                                                              Alstom
               Stadler (9%)                         Alstom                                                                             Consortium AL-BT       3%
                                     9%                                                                                        Bombardier
                                9%           26%                                Siemens                                    38%                            9% 6%   25%
                                                                                               9%
            Bombardier 11%
                                                                                                                                                         15%
                               11%            18%       Hyundai Rotem                                                                       Bombardier             23%
                  Siemens                                                                       15%                                                         19%
                                      16%                                                                                                                                Siemens
                                                                                     Alstom
                          Hitachi Rail                                                                                                            Hitachi Rail
                                                                                                                22%
                                                                                                           Stadler (22%)

                                                                                                                       Compared to the previous year, Stadler won 2%
        Stadler improved its position in LRV to No. 2.
                                                                                                                              market share in Locomotives.

Source: SCI (2020), SCI marketstudy Worldwide Market for Railway Industries 2020.
Market share based on delivered units in 2019 (average 2018-2020). High Speed (HS) 200 to 250 km/h.
Stadler full-year results 2020 | © Stadler | 11 March 2021                                                                                                                                14
FULL-YEAR 2020 FINANCIAL RESULTS
FULL-YEAR RESULTS 2020 SUMMARY
CHFm

      Order intake                                                                  Order backlog                                                                    Net revenues

                                                                                                                +7.2%                                                                             -3.6%
                                 -15%
             5’117                                                                          15’026                                 16’106                                      3’201                                 3’085
                                                    4’332

              2019                                  2020                                31.12.2019                            31.12.2020                                       2019                                   2020

      EBIT                                                                          Net working capital(1)                                                           Capital expenditure(2)
                              -19%                                                                       + CHF 423m
             194                                                                                                                                                                                  +16%
                                                 156                                                                                  450                                                                              288
                                                                                                                                                                                 249
            6.1%                               5.1%

                                                                                                27

            2019                                2020                                   31.12.2019                             31.12.2020                                       2019                                   2020
            EBIT as % of net revenues                                                          Change year-on-year
(1)    Net working capital is calculated by subtracting the sum of trade payables, liabilities from work in progress and other current liabilities (including other current liabilities, current provisions and deferred income and accrued
       expenses) from the sum of trade receivables, inventories, work in progress and other current assets (including other current receivables, compensation claims from work in progress and accrued income and deferred expenses).
(2)    Capital expenditure is calculated as the sum of investments in tangible and intangible assets.
Stadler full-year results 2020 | © Stadler | 11 March 2021                                                                                                                                                                                16
ORDER INTAKE
CHFm

                                       -15%
                    5’117
                                                                           Others(1)   8%
                      833                     4’332                                           2%
                                                                          Americas     17%
                                                                                              14%
                                              1’456          +75%    Eastern Europe    17%
                                                                                              31%
                                                                     Western Europe    16%
                    4’284

                                              2’875          -33%
                                                                             DACH      42%    53%

                  2019                         2020                                    2019   2020
                 Rolling Stock                Service & Components

      Comments
 Rolling Stock
  Major orders in DACH region (BVG Metro Berlin, Germany) and Western Europe (Nexus, UK)
  Large Tailor Made orders in Switzerland: a new order from Matterhorn Gotthard Bahn (MGB) and
   an option call-off by Rhaetian Railway (RhB)
 Service & Components
  Strong order intake mainly driven by two long-term service contracts in connection with the
   Rolling Stock orders from BVG, Germany, and Nexus, UK
(1)    Others: CIS and rest of the world.
Stadler full-year results 2020 | © Stadler | 11 March 2021                                           17
ORDER BACKLOG BY REPORTING SEGMENT
CHFbn

                                                                                                             16.1
                                                                   +15% CAGR              15.0
                                                                      13.2                2.8       18%      4.1       26%
                                                  11.0                2.3        17%
               9.3                                 2.0       18%
               0.8               9%

                                                                                          12.3               12.0
                                                                      10.9
               8.5                                 9.0

        31.12.2016                          31.12.2017             31.12.2018          31.12.2019         31.12.2020

               Rolling Stock                    Service & Components         %   Share of Service & Components

                          Order backlog of 16.1bn with a growing Service & Components share

Stadler full-year results 2020 | © Stadler | 11 March 2021                                                              18
ORDER BACKLOG BY PRODUCT SEGMENT

                          31 Dec 2019                                                                31 Dec 2020

                18%
                                                                                            26%
                                                                     Executing on
                                                                    strategic focus                                 35%

   11%
                                                             50%

                                                                   Trains                 12%
       7%
                                                                   Locomotives
                                                                   Metro                                           6%
                8%                                                                              9%
                           6%                                      LRV                                    12%
                                                                   Tailor-made
                                                                   Service & Components

                                       High quality and increasingly diversified order backlog

Stadler full-year results 2020 | © Stadler | 11 March 2021                                                                19
NET REVENUES
CHFm
                            -3.6%
             3’201
                                            3’085
              261
                                             343             +32%
                                                                                                               +3.1%

                                                                                                      2’086             2’150
                                                                                                       148               197

                                                             -6.7%                    -16%
             2’940                          2’742                             1’115
                                                                               113           935
                                                                                                      1’938             1’953
                                                                                             146
                                                                              1’002          789

             2019                           2020                             H1 2019       H1 2020   H2 2019           H2 2020
                                                             Rolling Stock    Service & Components
   Comments
   Rolling Stock
    Partial recovery of Covid-related delays with revenues up year-on-year in the second half
    Revenues in the full-year only declined slightly
    Corona-related supply chain disruptions and delays in homologation processes and final vehicle
     takeovers by customers due to travel restrictions
   Service & Components
    Revenue growth below expectations as a result of lower frequencies in public rail transport and
     hence less revenues from mileage of vehicles in service. Less sales of spare parts and repairs
Stadler full-year results 2020 | © Stadler | 11 March 2021                                                                       20
EBIT
CHFm

250                                                                                                        15%
                                                                            -19%
200                       194

                                                                                          151       156    10%
150
                                                                                         7.0%
                         6.1%
                                                                                                    5.1%
100
                                                                                                           5%

 50
                                                                 0.5%
                                                             5
   0                                                                                                       0%
                         2019                                H1 2020                   H2 2020      2020

                                                             EBIT       EBIT in % of net revenues
   Comments
   Rolling Stock
    Corona-related delays led to a decline in revenues in the first half. Profitability impacted by
     lower volumes, supply chain disruptions and implementation of health and safety measures
    Significant margin recovery in the second half of 2020 to H2 2019 levels
    Adverse NOK/CHF impact of ~CHF 30m on EBIT from last remaining option call-off
   Service & Components
   − High-margin service business impacted by lower fixed cost absorption due to revenues below
     expectations as a result of less mileage of vehicles in service and spare parts sales
Stadler full-year results 2020 | © Stadler | 11 March 2021                                                  21
NET INCOME
 CHFm                                                         2019        2020         Change YOY
 Earnings before interest and taxes (EBIT)                   193.7       156.1               (19%)
 Financial result                                            (47.1)       (3.1)
 Share of results from associates                              4.0         2.8
 Ordinary result                                             150.6       155.8                   3.5%
 Non-operating result                                         (2.1)       (1.2)
 Profit before income taxes                                  148.5       154.7                   4.1%
 Income taxes                                                (20.0)      (16.3)
 Profit for the period                                       128.5       138.4                   7.7%
 thereof attributable to
 - Shareholders of Stadler Rail AG                           127.2       137.6
 - Non-controlling interests                                   1.4         0.8

   Comments

   − Net income increased compared to the previous year
   − Mainly impacted by favourable currency exchange rate effects on balance sheet, lower bank
     guarantee costs, and tax effects

Stadler full-year results 2020 | © Stadler | 11 March 2021                                          22
NET CASH POSITION
CHFm

                                                              6

                                                                       929       Cash and cash equivalents
                                                             753

                                                             -468      -534      Non-current financial liabilities

                                                             -279

                                                                      -1’003     Current financial liabilities

                                                                       -608
                                                       31.12.2019   31.12.2020

   Comments

    Decline in net cash position mainly a result of deferred homologation, customer acceptance and
     final invoicing of new vehicles
    Significant growth investments
    Continuous ramp-up of production and work in progress
    Additional project financing facilities

Stadler full-year results 2020 | © Stadler | 11 March 2021                                                           23
NET WORKING CAPITAL
Net working capital(1) (CHFm)

                                        450
           27                                                                                                                                                                                                          47
          286                           301             Trade receivables                                                                                                                                                                     (48)              (91)                         450

          818                           862             Comp. claims from WIP
                                                                                                                                                                                              486

                                        201             Inventories
          232
          132                           179             Other current assets
                                                                                                                    27                                 44                      (31)
                                        -317            Work in progress (net)                                                    15

                                                                                                                                                                                Inventories
         -804

                                                                                                                     31.12.2019

                                                                                                                                                                                                                       Other current assets

                                                                                                                                                                                                                                                                                             31.12.2020
                                                                                                                                   Trade receivables

                                                                                                                                                                                              Work in progress (net)

                                                                                                                                                                                                                                                                 Other current liabilities
                                                                                                                                                                                                                                               Trade payables
                                                                                                                                                       Comp. claims from WIP
                                        -298            Trade payables

                                        -478            Other current liabilities
         -250

         -386

      31.12.2019                 31.12.2020

      Comments

       Covid impacts led to bottlenecks in homologation, deliveries, and final customer acceptance
       Largely finished but not yet delivered vehicles remain in work in progress which drives growth in
        net working capital and ties up cash

(1)     Net working capital is calculated by subtracting the sum of trade payables, liabilities from work in progress and other current liabilities (including other current liabilities, current provisions and deferred income and accrued
        expenses) from the sum of trade receivables, inventories, work in progress and other current assets (including other current receivables, compensation claims from work in progress and accrued income and deferred expenses).
Stadler full-year results 2020 | © Stadler | 11 March 2021                                                                                                                                                                                                                                                24
CAPITAL EXPENDITURE
CHFm
                                                                                                              288

                                                                                         248                   57
                                                                                         35
                                                                     188
                                                                     14

                                                                                                              231
                                                                                         213
                                                  76                 174
               55                                 11
                8
                                                  65
               48

             2016                               2017                2018                2019                  2020
                                          Investments in tangible assets   Investments in intangible assets

   Comments

    Over EUR40m invested in capacity expansion in Germany related to a framework contract for
     the delivery of up to 1,500 METRO cars for Berlin. Capacity additions in Hungary (CHF40m).
    Circa CHF37m invested in equipment and land at recently opened manufacturing site in
     St. Margrethen, Switzerland
    Investments in intangible assets mainly relate to development of new high-speed SMILE vehicle
     concept, new products in locomotives and signalling

Stadler full-year results 2020 | © Stadler | 11 March 2021                                                           25
OUTLOOK: CLEAR STRATEGY FOR BRINGING
STADLER TO THE NEXT LEVEL
WE HAVE A CLEAR STRATEGY FOR BRINGING
STADLER TO THE NEXT LEVEL
                                       Stadler sales 2018                                                      Stadler strategy 2023
                                                                                                                    Signalling
                               Service &
                              Components
                                                                                                 Service &
                                                                                                Components

                                                      Rolling                                                                       Rolling
                                                      Stock                                                                         Stock

                                                                              Strategic focus

                                                                                              Service &
                                                             Rolling Stock                                                        Signalling
                                                                                             Components
                                                         •   Market segments             •   Growing                        •    Establish own
                  Europe                                     unchanged                       accessible market                   signalling
                                                                                             and installed base                  solutions
                                                         •   Deliver on
                                                             backlog and                 •   New service                    •    AngelStar JV with
                  North America
      Regions

                                                             establish next                  solutions                           Mermec
                                                             sales level
                                                                                         •   Capture                        •    Potential
                                                         •   Growth through                  opportunities                       opportunistic
                  CIS
                                                             new product                     from signalling                     acquisitions
                                                             pipeline
                                                                                         •   Potential selective
                  New markets                                                                acquisitions

   Note: Sizes of pie charts are illustrative only.

Stadler full-year results 2020 | © Stadler | 11 March 2021                                                                                           27
ADDITIONAL GROWTH POTENTIAL DUE TO
GOVERNMENT SUPPORTED PROGRAMS

   Supportive mega trends                                    Rail as a structural beneficiary of government stimulus

                                                                       Connecting Europe – €24bn for transport until 2020
                                                                       EU Green Deal – €1trn funding in total over 2021-2027
                   Green transportation with low
                                                                       EU Recovery Plan – €1.85trn with Rail share of €40bn+ until 2027
                   carbon emission

                                                                       Rail modernization – €86bn over the next decade
                                                                       €5.5bn injection into Deutsche Bahn

                   Urbanisation combined with
                   stronger connectivity between                       Plan de reliance – €4.7bn to rail (of which €3bn into Signalling) and
                   cities                                              €1.2bn to daily transport

                                                                       Network Rail’s Infrastructure Enhancement – £9.4bn until 2024
                                                                       COVID-19 rescue package – £3.5bn approved for rail operators
                   Increased investments in
                   infrastructure
                                                                       Surface transportation bill – $60bn allocated to Rail
                                                                       American Rescue Plan Act of 2021 – $30.5bn in emergency funding
                                                                       for public transport

                               Short-term emergency funding combined with long-term investment plans

Stadler full-year results 2020 | © Stadler | 11 March 2021                                                                                     28
FY 2021 FINANCIAL GUIDANCE

      Order intake                              Between CHF 4.0bn and 5.0bn

     Net revenues                               Between CHF 3.5bn and 3.8bn

      EBIT-margin                               Above 6 %

                                                Capex of around CHF 200m
      Capex / FCF                               Positive Free Cash Flow

          Dividend                              Payout ratio of c. 60% of net income

    Our 2021 financial guidance is based on the assumption that the effects of the
    COVID-19 pandemic will soon normalise and at constant currency exchange rates.

Stadler full-year results 2020 | © Stadler | 11 March 2021                              29
MID-TERM FINANCIAL GUIDANCE

      EBIT-margin                               8 to 9% from 2023 onwards

          Dividend                              Payout ratio of c. 60% of net income

    Our 2021 financial guidance is based on the assumption that the effects of the
    COVID-19 pandemic will soon normalise and at constant currency exchange rates.

Stadler full-year results 2020 | © Stadler | 11 March 2021                              30
THANK YOU!
REPORTING SEGMENTS

      Rolling Stock
 CHFm                                                         2019     2020    Change
 Order intake                                                 4’284   2’875      -33%
 Order backlog                                               12’254   11’996      -2%
 Net revenues (third party)                                   2’940   2’742       -7%
 Additions to fixed assets                                     186      184       -1%
                                   (1)
 Total staff as FTEs                                          8’408    9’111      8%

      Service & Components
 CHFm                                                         2019     2020    Change

 Order intake                                                  833    1’456      75%
 Order backlog                                               2’772     4’110     48%
 Net revenues (third party)                                    261      343      32%
 Additions to fixed assets                                      35       67      91%
                                 (1)
 Total staff as FTEs                                         2’326     3’011     29%

(1)    average FTEs 1 January to 31 December
Stadler full-year results 2020 | © Stadler | 11 March 2021                          32
INFORMATION

Share information                                                            Investor contact

Listing:                                  SIX Swiss Exchange                 Daniel Strickler
Currency:                                 CHF                                Investor Relations Officer
Ticker symbol:                            SRAIL                              Phone:     +41 71 626 86 47
ISIN:                                     CH0002178181                       E-mail:    ir@stadlerrail.com
Listing date:                             12 April 2019

Financial calendar                                                           Media contact

06 May 2021:                         Annual General Meeting                  Andreas Petrosino
25 August 2021:                      Publication of half-year results 2021   Deputy Head of Communications & PR
                                                                             Phone:    +41 71 626 19 19
                                                                             E-mail:   medien@stadlerrail.com

Stadler full-year results 2020 | © Stadler | 11 March 2021                                                    33
DISCLAIMER

IMPORTANT NOTICE

This presentation (the "Presentation") has been prepared by Stadler Rail AG ("Stadler" and together with its subsidiaries, "we", "us" or the "Group") and includes forward-looking
information and statements concerning the outlook for our business. These statements are based on current expectations, estimates and projections about the factors that may
affect our future performance, including global economic conditions, and the economic conditions of the regions and markets in which the Group operates. These expectations,
estimates and projections are generally identifiable by statements containing words such as “expects,” “believes,” “estimates,” “targets,” “plans,” “outlook” or similar expressions.

There are numerous risks and uncertainties, many of which are beyond our control, that could cause our actual results to differ materially from the forward- looking information
and statements made in this Presentation, which, in turn, could affect our ability to achieve our stated targets. The important factors that could cause such differences include:
changes in the markets the Group serves, including as a result of changes in the global demand for transportation and demographic changes; the Group's ability to successfully
develop, launch and market new products and services; the Group's ability to retain existing customers and/or secure new customers; the Group's ability to compete with existing
and new competitors; the Group's ability to maintain the high quality, reliability, performance and timely delivery of its products and services; the impact of fluctuations in foreign
exchange rates; and such other factors as may be discussed from time to time. Although we believe that our expectations reflected in any such forward-looking statement are
based upon reasonable assumptions, we can give no assurance that those expectations will be achieved.

PRESENTATION OF FINANCIAL INFORMATION
This Presentation has been prepared by Stadler solely for informational purposes. Certain financial data contained herein is based on historical financial information of Stadler
that has been prepared in accordance with the accounting standards of Swiss GAAP FER, unless otherwise stated. In addition, certain financial data included in the Presentation
consists of "non-Swiss GAAP financial measures". These non-Swiss GAAP financial measures may not be comparable to similarly titled measures presented by other companies,
nor should they be construed as an alternative to other financial measures determined in accordance with Swiss GAAP. You are cautioned not to place undue reliance on any
non-Swiss GAAP financial measures and ratios included herein.

In addition, certain financial information contained herein has not been audited, confirmed or otherwise covered by a report by independent auditors and, as such, actual data
could vary, possible significantly, from the data set forth herein.

THIS PRESENTATION IS NOT AN INVITATION TO PURCHASE SECURITIES OF STADLER OR THE GROUP.

Stadler full-year results 2020 | © Stadler | 11 March 2021                                                                                                                           34
You can also read