Talgo S A : increases shareholder remuneration by 20% in 2023

• With an allocation of €12 m, it will be implemented through a flexible dividend and a new share buy-back program
• The payment will be made in July
• At the General Shareholders' Meeting the company confirmed that it is moving forward with new contracts in some of the most demanding markets such as Germany, Egypt, and Denmark
• The company expects to increase revenue volumes and continue to recover margins with a target of 12% EBITDA by 2023
• The company's top executives received the support of shareholders for their leadership of the company, and all the proposed resolutions were approved by a large majority

Madrid, June 29th, 2023

Talgo will increase shareholder remuneration by 20% in 2023 through a flexible dividend and a new share buyback program, for a total amount of €12 m. This was confirmed at the General Shareholders' Meeting held today at the company's headquarters in Las Rozas (Madrid), where some of the industrial and operational milestones aimed at recovering net profit were also confirmed.

The management team received the support of the shareholders for their management of the company and approved all proposals by a large majority.

The company will thereby continue this year the remuneration program established in the previous year, when a €10 m program was implemented, which also provided a choice between shares or cash.
Talgo's President, Carlos Palacio, addressed the shareholders who chose to strengthen their position in the company's capital in 2022, stating that their choice "implies a show of support and confidence in the future of the company". Carlos Palacio said: "I would like to thank you for your trust, your support and your loyalty to Talgo".

Carlos Palacio added that, in its 80th anniversary year, the company consolidated its industrial and operational activity and thus recorded milestones. Among others, milestones included the presentation of the first car of the ICE L train (the train of the future in Germany) in Berlin together with Deutsche Bahn, the early delivery of intercity trains for the Egyptian operator ENR, and the world speed record on a non-standard gauge, registering 360 km/h between Ourense and Santiago de Compostela in Spain.

Added to this trend, only in the first six months of 2023, are other milestones such as the largest supply contract in Talgo's history for the manufacture of 56 additional ICE L trains or the doubling of the scale of the contract with DSB, which was endorsed last week by the Danish parliament. The company is also analyzing other contracts such as the potential future acquisition of up to ten Avril trains by French operator Le Train, as well as in markets such as Saudi Arabia and Uzbekistan.

In a global context dominated by volatility in the cost of raw materials, disruptions in the supply chains, and inflation, the company's activity continued to prove its flexibility and resilience. This, while progress was also made in disruptive innovation initiatives, such as SHYNE consortium -the largest initiative in Spain to promote renewable hydrogen, together with Repsol- and the presentation of new train structures that are even lighter and made of composite materials.

In his speech to shareholders, Carlos Palacio concluded by emphasising his "gratitude and acknowledgement to all those who have made this exciting journey possible, which, for 80 years, has taken us all over the world, allowed us to create and innovate and, above all, from our responsibility and commitment, has allowed us to contribute in the making of a more sustainable world, where we are all more and better connected".

Talgo's CEO, Gonzalo Urquijo, highlighted the company's operational excellence model, which has led to improved workers safety. Urquijo also mentioned the growing industrial activity in 2023 and beyond, and the recovery of the maintenance activity pre-Covid levels in all markets, returning it to a solid and recurring activity in terms of revenue contribution, profitability, and cash generation.

About Talgo

Talgo S.A. is a leading company in the design, manufacture and maintenance of high-speed light trains with a manufacturing presence, among other countries: in Spain, Germany, Kazakhstan, Uzbekistan, Saudi Arabia, Egypt and the United States. The Company is recognized worldwide for its innovative capabilities, unique and distinctive technology and reliability. Talgo is Renfe's main supplier of high-speed and ultra high-speed trains and the supplier of trains in the "Haramain" high-speed railway line project between Mecca and Medina in Saudi Arabia. Talgo is also the manufacturer chosen by the German operator Deutsche Bahn and the Danish operator DSB to decarbonize its network with the Talgo 230 long-distance trains.  

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