Vossloh (VOS) Investor Presentation summary

Market trends and strategic positioning

• Global megatrends like urbanization, sustainability, and digitalization are accelerating demand for sustainable rail infrastructure, with political momentum supporting decarbonization and climate targets worldwide.

• Rail offers significant advantages over other transport modes, including lower CO2 emissions, high land use efficiency, improved air quality, and lower external costs.

• Decades of underinvestment have created urgent needs for rail infrastructure upgrades globally, with major investment backlogs in Germany, the US, France, Australia, the UK, and Sweden.

• Massive government funding and flagship projects are underway in key markets such as Germany, the US, Brazil, Egypt, Italy, Turkey, India, and China, supporting long-term growth for rail suppliers.

• Vossloh is positioned as a holistic solution provider, leveraging a comprehensive portfolio, global presence, and digital expertise to address evolving customer needs and market consolidation.

Sustainability and innovation

• Vossloh has made significant progress in sustainability, reducing CO2 emissions by ~2,500 tons in 2023 despite sales growth, and achieving a CO2 intensity 18.6% lower than 2022.

• The company has received multiple sustainability awards and certifications, including a top 5% EcoVadis gold medal and a prime ISS-ESG rating.

• Innovative products include EPS composite ties (fully recyclable, launched in Poland), M-generation tension clamps (up to 65% lower CO2), engineered polymer pads (recycled materials), and recycled manganese crossings (up to 50% lower CO2, 90% recycling rate).

• Digital solutions such as Vossloh Connect, Smart HSG, Railwatch Pulsar, and Soniq Rail Explorer enable predictive maintenance, real-time monitoring, and enhanced safety, supporting higher track availability and efficiency.

• Strategic acquisitions, including the major Sateba deal, expand Vossloh’s product and service portfolio, supporting growth and long-term profitability targets.

Financial performance and outlook

• Sales revenues for H1 2024 reached €600.6 million, with EBIT at €49.5 million (8.8% margin), net income up to €40.1 million, and earnings per share rising to €1.96.

• Equity and equity ratio increased to €660.3 million and 47.3%, respectively, while net financial debt rose to €247 million; working capital intensity remains below 20%.

• Orders received hit a record high in H1 2024, up 11.7% year-on-year, with a book-to-bill ratio of 1.37 and a growing order backlog, especially in Customized Modules and Lifecycle Solutions.

• Since 2020, group sales have grown ~40% (CAGR 9%), and EBIT has increased by over 70%, with all divisions nearing the 10% EBIT margin target.

• The Sateba acquisition is expected to boost annual sales to €1.5–1.6 billion and support a long-term EBIT margin of at least 10%; by 2030, Vossloh targets sales above €2 billion, EBIT over €200 million, and working capital intensity below 15%.