Results Presentation Fiscal Year 2022
28 February 2023
Table of contents
- Executive summary
- Other materials
- Business performance
- Financial results
ANNEX
1
Executive Summary - Key Highlights
- ESG
II. Business performance
- Financial Results
IV. Outlook
- High social commitment with highest Health & Safety standards and employee engagement.
- Environmental policies across all operations and developments.
- Corporate Government best practices implemented.
- Challenging 2022 with increases in raw materials costs, inflation and supply chain disruptions impacting manufacturing margins.
- Maintenance remained strong with leading technologies underway.
- Cost-controlaction plan contributing to stabilize margins although still reflects inflation impact on existing backlog.
- New debt issued in 2022 anticipating increasing interest rates with c. 90 €m of new debt issued. Resulting sound financial profile with strong capacity to finance current and future projects
- Net income impacted by extraordinaries (Russia and NOLs reversals)
- Strong revenues increase expected for FY-2023f
- Outlook reflects current backlog margins.
- Outstanding commercial momentum with significant opportunities ahead to enhance order intake in 2023.
FY-2022 | |
Freq. Index. | 9.961 |
CO2 emmisions | 4.8152 |
Board members | 10 (-33%) |
FY-2022 | |
Backlog | €2,748 m |
FY-2022 | |
Revenues | €469.1 m |
aEBITDA mg. | 11.2%3 |
NFD | €97.4 m |
FY-2023f | |
Revenues | 40%4 |
aEBITDA mg. | 12.0%3 |
NFD | 2.0x5 |
Order intake | 2.0x Btb6 |
1) | Industrial accidents per million man-hours worked. Includes Talgo Group FTEs | 5) | Times LTM Adjusted EBITDA | 2 | |
2) | tCO2eq | 6) | Book to bill ratio. | Source: Company | |
3) | Adjusted EBITDA margin | ||||
4) | Calculated as total revenues in the period 2023-2024 over FY2022 backlog (€2,748 m) |
- ESG
- Employee Management Business Model :
- Health & Safety highest standards in the industry as main priority, with the objective to target zero accidents in the business activity.
- Launch of new talent and professional careers management model to encourage employee-company engagement.
- Corporate governance and business:
- Creation of Sustainability and Strategy Commission with comprehensive assumption of all key ESG levers.
- Approval of the 2022-2024ESG plan with 29 strategic projects and 94 goals.
- Talgo's economic activities considered "eligible" in >90% (Regulation of sustainable finance).
- Environmental management:
- Publication of the 1st Talgo environmental product declaration (Avril model) resulting on a product recyclability rate of 94% while rated as the train with lowest CO2 emissions in the world.
- Smart factories maximizing safety while reducing waste generation and energy consumption (ie solar panels). o R&D focused on operational efficiency (ie Industry 4.0) and products (ie Hydrogen).
Operational Risk Prevention main figures
2022 | 2021 | |||
Frequency Index | 1 | 9.96 | 8.51 | |
Severity Index | 2 | 0.22 | 0.25 | |
Board members (#) | 10 | 15 | ||
CO2 emissions (tCO2eq) | 4,815 | 5,171 | ||
Indefinite employment rate | 90.9% | 93.3% |
Talgo's workforce (# employees)
2021 | 2022 |
2,711 | 2,874 |
(1) | Industrial accidents per million man-hours worked. Includes Talgo Group FTEs | 3 | |
(2) | Number of working days per 1,000 hours worked. Includes Talgo Group FTEs | Source: Company | |
II. Business performance (I/II)
Operating challenges
Inflation /
Raw materials
Supply Chain
Industrial capacity
Other challenges
Action plan
- Updated salary base for 2021-22 agreed with unions (9.2% in two years).
- >70% backlog with indexation clauses (maintenance contracts).
- Back-to-backclient/suppliers reducing exposure to prices volatility.
- Pass-throughto clients in new projects with indexation clauses.
- Cost hedging structures.
- Increasing suppliers base to enhance flexibility.
- Suppliers relocation strategy to promote agility and reduce disruptions.
- Strengthening requirements and guarantees to ensure performance.
- Rescheduled existing manufacturing projects.
- Product and manufacturing processes standardization to optimize manufacturing lines and existing developments.
- Working capital alternative structures to mitigate cash flow unevenness.
- Services in Russia cancelled in march 2022 (<1% of revenues).
- LACMTA (USA) contract terminated by client under litigation process.
- Force majeure claimed in contracts.
4
Source: Company
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Disclaimer
Talgo SA published this content on 28 February 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 28 February 2023 21:11:02 UTC.