Annual General Meeting of Vossloh AG · Annual General Meeting of Vossloh AG 2014 ... Development in fiscal 2013 Group KPI‘s Development in the divisions ... Treasury. 4 Annual

Annual General Meeting of Vossloh AGMay 28, 2014

2

Annual General Meeting of Vossloh AG 2014Agenda

Introduction of the new Executive Board 1.

Development in fiscal 2013▬ Group KPI‘s

▬ Development in the divisions

▬ Capital expenditures

Development in Q1/2014

Vossloh stock

Authorized capital, profit and loss transfer agreements

2.

Outlook for 2014▬ Status review, operating improvements

▬ Market environment and further internationalization

▬ “One Vossloh”

▬ Motivation and dedication

▬ Further development of our strategy

3.

3

SalesMarketing CommunicationsPersonnelM&A, Corporate Development

PurchasingDevelopmentProductionQuality AssuranceCapital Expenditure

VosslohResponsibilities of the new Executive Board

Vossloh Fastening Systems

Vossloh Rail Services

Vossloh Switch Systems

Vossloh Electrical Systems

Hans M. SchabertChairman of the Executive Board

Volker SchenkExecutive Board member

Oliver SchusterExecutive Board member

Vossloh Locomotives

Vossloh Rail Vehicles

Legal/ComplianceInformation TechnologyAccountingControllingInvestor Relations/Public RelationsInternal AuditTreasury

4


Introduction of the new Executive Board1.





Vossloh stock


2.






3.

5

Vossloh GroupKey data for fiscal 2013

* In accordance with IAS 37, since fiscal 2013 certain obligations in the personnel area (outstanding vacation claims; profitsharing/bonuses; flextime accounts of employees; termination indemnities) are no longer presented under provisions, but insteadunder other liabilities. To ensure comparability, the resulting effects on working capital, capital employed, ROCE and value addedhave been considered in the presentation of the prior year’s figures.

2012 2013 ∆ in %Sales (€ million) 1,243.0 1,321.2 +6.3EBIT (€ million) 97.5 54.2 -44.5EBIT-Marge (%) 7.8 4.1 –ROCE (%) 11.5* (11.9) 6.1 –Value added (€ million) 13.0* (15.4) -21.9 –Group earnings (€ million) 59.2 15.0 -74.7Earnings per share (€) 4.94 1.25 -74.7

6

291.4376.4

451.3460.7

54.6

62.1

0

150

300

450

600

750

900

2012 2013

Rail Infrastructure division, fiscal 2013Fastening Systems records significant growth in sales

+ 13.7%

+ 2.1%

+ 29.1%

Sales Rail ServicesSales Fastening Systems Sales Switch Systems

€ million

792.4

896.0

7

174.6 150.7

119.2111.3

166.8165.7

0

100

200

300

400

500

2012 2013

Transportation division, fiscal 2013Decline in sales due to project delays

- 0.7%

- 13.7%

Sales Vossloh Rail Vehicles(primarily Valencia)

Sales Vossloh Locomotives(primarily Kiel)

Sales Vossloh Electrical Systems

- 6.6%

€ million

451.1425.2

293.7 261.9

Transportation Systems

8

505.7 490.3

0

100

200

300

400

500

600

2012 2013

Vossloh Group, fiscal 2013Equity slightly below prior year

Equity in € million Equity ratio

€ million

33.7%30.9%

9

200.8 201.2

0

50

100

150

200

250

2012 2013

Vossloh Group, fiscal 2013Net financial indebtedness unchanged from prior year

39.7%41.0%

Net financial indebtedness in € million Net leverage

€ million

10

Vossloh Group, fiscal 2013Capital expenditures increase in connection with ongoing investment programs and provide basis for future growth

Other in € millionRail Infrastructure in € million Transportation in € million

€ million

34.441.9

24.0

24.6

0

10

20

30

40

50

60

70

2012 2013

66.861.1 0.3

2.7

11

Vossloh Group, fiscal 2013Free cash flow of €55.8 million despite earnings decline

154.6

85.9

162.6

122.6104.1

55.8

0

30

60

90

120

150

180

2012 2013

€ million

Cash flow from operating activities in € million Free cash flow in € millionGross cash flow

12

Vossloh GroupProposed dividend for 2013 reflects decline in earnings

1.301.70 2.00 2.00

2.50 2.502.00

0.50

1.00

0,00

0,50

1,00

1,50

2,00

2,50

3,00

3,50

2006 2007 2008 2009 2010 2011 2012 2013

€

*

Ordinary dividends in € Special dividends in € * Proposed dividend

3.50

3.00

2.50

2.00

1.50

1.00

0.50

0.00

13

1,369 1,3071,126 1,092 1,085

1,496 1,5481,728

0

500

1.000

1.500

2.000

2006 2007 2008 2009 2010 2011 2012 2013

Vossloh GroupOrder backlog reaches new record level of €1,728 million

Order backlog in € million

€ million

2,000

1,500

1,000

500

0

14

Vossloh GroupKey data for Q1/2014

* With the conversion from proportional to at-equity consolidation, 2013 amounts have been retrospectively adjusted to be comparable; original prior year‘s amounts in brackets

1-3/2013 1-3/2014 ∆ in %Sales (€ million) 263.4* (267.2) 294.2 +11.7EBIT (€ million) 9.4* (9.7) 6.5 -30.8EBIT margin (%) 3.6 2.2 –ROCE (%) 4.3* (4.4) 3.0 –Incoming orders 227.7 435.2 +91.7Order backlog 1,512.0 1,869.3 +23.6

15

Price trend of Vossloh stock 12/28/2012 – 5/15/2014

Vossloh stock price MDAX (rebased)SDAX (rebased)

VosslohStock price hardly changed since end of 2012, perfomance worse than comparative indices

50

60

70

80

90

100

110

28.12.12 28.02.13 30.04.13 30.06.13 31.08.13 31.10.13 31.12.13 28.02.14 30.04.14

2/17/14Changes in Executive Board announced

3/27/14Successful sale of treasury shares, gross proceeds from issue: €91 million

11/27/13Vossloh Family Group sells block of shares

10/10/13Major order fromSouth Africa

7/23/13EBIT 2013 below prior year’s level, forecast lowered

4/25/13Q1/13: Sales increased, EBIT slightly below prior year; forecast for 2013 confirmed

5/29/13Annual General Meetingelects new Supervisory Board

1/21/13Takeover of switch manufacturerin Brazil and formation of a consortium for construction of a switch plant in Argentina

€

12/28/2012 2/28/2013 4/30/2013 6/30/2013 8/31/2013 10/31/2013 12/31/2013 2/28/2014 4/30/2014

16


Vorstellung des neuen Vorstands1.





Vossloh stock


2.






3.

17

CIS + MongoliaH. M. Schabert

North AmericaH. M. Schabert

Middle EastV. Schenk

Latin AmericaV. Schenk

Sub-SaharaH. M. Schabert

Asia PacificV. Schenk

ChinaV. Schenk

Vossloh GroupRegional division of responsibilities in the Vossloh Group - worldwide

18

1,369 1,3071,126 1,092 1,085

1,496 1,5481,728

1,869

0

500

1.000

1.500

2.000

2006 2007 2008 2009 2010 2011 2012 2013 Q1/2014

Vossloh Group, Q1/2014Further increase in order backlog creates basis for continued growth

Order backlog in € million

€ million

2,000

1,500

1,000

500

0

19

Vossloh Group, forecast 2014 – Western Europe Very strong rise in sales in Germany, sales in France almost unchanged

+10 to +25%

CAGR +1.9%*

UNIFE forecast: Western Europe

• CAGR 2015-2017 compared with 2009-2011, accessible market; source: World Rail Market Study forecast 2012 to 2017, UNIFE The European Rail Industry, Roland Berger Strategy Consultants

589.3

0

200

400

600

800

2013 2014p

Significant countries for Vossloh: GermanyFranceGreat Britain

Sales forecast€ million

20

UNIFE forecast: Western Europe**

Vossloh Group, forecast 2014 – Northern EuropeStrong sales growth in Northern Europe

* CAGR 2015-2017 compared with 2009-2011, accessible market; source: World Rail Market Study forecast 2012 to 2017, UNIFE The European Rail Industry, Roland Berger Strategy Consultants

**According to UNIFE definition, Western Europe also encompasses the countries of Northern Europe and Southern Europe

Significant countries for Vossloh: FinlandNorwaySweden

Sales forecast +10 to +25%

71.7

020

40

6080

100

2013 2014p

CAGR +1.9%*

€ million

21

Vossloh Group, forecast 2014 – Eastern EuropeDevelopment in Eastern Europe restrained, trend almost unchanged compared to prior year

Significant countries for Vossloh: PolandRussiaSerbia

Sales forecast -5 to +5%

UNIFE forecast:Eastern Europe and CIS

CAGR +3.2%*

CAGR +4.5%*


67.4

0

20

40

60

80

2013 2014p

€ million

22

Significant countries for Vossloh: SpainTurkeyItaly

UNIFE forecast: Western Europe**

Vossloh Group, forecast 2014 – Southern Europe Weak demand in Southern Europe, decline in sales continues

98.9

020406080

100120

2013 2014p

Sales forecast -10 to -25%


**According to UNIFE definition, Western Europe also encompasses the countries of Northern Europe and Southern Europe

CAGR +1.9%*

€ million

23

Sales forecast

UNIFE forecast:NAFTA and South America

CAGR +2.9%*

Vossloh Group, forecast 2014 – Americas Very strong sales growth in the Americas

> +25%

Significant countries for Vossloh: USAMexicoBrazilArgentina

CAGR +7.5%*


124.1

0

40

80

120

160

2013 2014p

€ million

24

Vossloh Group, forecast 2014 – Africa & Near EastStrong growth in sales of over 25%

UNIFE forecast:Africa & Near East

CAGR +10.0%** CAGR 2015-2017

compared with 2009-2011, accessible market; source: World Rail Market Study forecast 2012 to 2017, UNIFE The European Rail Industry, Roland Berger Strategy Consultants

22.4

0

10

20

30

40

2013 2014p

Significant countries for Vossloh: Morocco, AlgeriaSouth Africa, IsraelSaudi Arabia

Sales forecast > +25%

€ million

25

Vossloh Group, forecast 2014 – Asia & Pacific Sales decline expected for 2014 after exceptionally high sales in 2013

Sales forecast

UNIFE forecast:Asia & Pacific CAGR

+0.2%** CAGR 2015-2017

compared with 2009-2011, accessible market; source: World Rail Market Study forecast 2012 to 2017, UNIFE The European Rail Industry, Roland Berger Strategy Consultants

314.3

0

100

200

300

400

2013 2014p

Significant countries for Vossloh: ChinaKazakhstanKorea

> -25%€ million

26

Vossloh Group“One Vossloh” – uniform image for the entire Group

27

VosslohMotivation and dedication

28

VosslohSmart performance at Vossloh brings “Smart” rewards!

29

Positioned worldwide

Documents

Annual General Meeting of Vossloh AG · Annual General Meeting of Vossloh AG 2014 ... Development in fiscal 2013 Group KPI‘s Development in the divisions ... Treasury. 4 Annual