A new player in
rail and urban
mobility industry
An AUCTUS Capital Partners AG backed industrial platform that, through strategic acquisitions, aggregates the best European SMEs to deliver comprehensive solutions for 21st century transportation needs. We aim to create a new paradigm for integrated mobility solutions encompassing traffic control, telecommunications, electric traction, power supply and transformation, on-board and in-station systems, for rail, metro, tram and urban transportation systems
Railtech is an industrial platform that, through strategic acquisitions, aggregates the best European SMEs to deliver comprehensive solutions for 21st century transportation needs.
What and How
Multi-infrastructure
Pioneers of a new concept of integration: traffic control, telecom, electrification, power supply and electrical substations, on board and in station equipment's.
Multi-market
We intend to cover the whole public transportation sector including railway, subway, tramways and urban transportation.
Multi-service
Companies with strong technological know-how and will be able to offer design, components’ production, system integration, installation and maintenance services.
International
The group aims at pooling the expertise of the best European medium and small enterprises in order to create a European market leader.
Vision
Our vision
in 5 points
Over-proportional value creation
Beneficial impact through commercial and organizational synergies and operational efficiencies.
Increased market presence and bargaining power
Positive economies of scale will lead to improvements in all financial statements.
Market access and partnerships
Access to AUCTUS’ extensive network and industry relationships expanding your market reach.
Talent acquisition and development
Leverage AUCTUS knowledge and reputation in attracting and retaining top talent.
Tailored organic and inorganic growth strategies
Leverage the knowledge of AUCTUS and other companies in the group.
A collaboration between Auctus, the leading private equity firm in Europe and key managers with vast experience in the railway industry.
Key Technologies
Transport Market
- DESCRIPTION Technology that allows safe train circulation
- KEY TRENDS ERTMS/IXL, AI Diagnostics
- RAILTECH STRATEGY Market leader of a new generation of wayside products
- RAILTECH KEY FOCUS Level crossing & field elements, Smart installation, Diagnostics & control rooms
- DESCRIPTION
Technology that allows to control urban traffic (tram, bus and other) - KEY TRENDS
Electrification, Driverless metro, Diagnostics - RAILTECH STRATEGY
Market leader of urban mobility covering all the value chain - RAILTECH KEY FOCUS
Traffic control systems, Wayside & onboard product, Diagnostic &c.
- DESCRIPTION
Technology that allows data exchange along the infrastructure and between train and wayside - KEY TRENDS
GSMR (ERTMS), FRMCS, Diagnostics, Wi-fi - RAILTECH STRATEGY
Market leader of mobility infra telecom covering all value chain - RAILTECH KEY FOCUS
GMSR/FRMCS Wi-Fi & Tetra, 5G, Infotainment, Diagnostic & control rooms
- DESCRIPTION
Electric catenary providing electrical energy for train/tram/buses - KEY TRENDS
Electrification of new lines and old diesel lines, Diagnostics - RAILTECH STRATEGY
Ability to offer field works and diagnostic products - RAILTECH KEY FOCUS
Field Works, New products, Diagnostics & control rooms
- DESCRIPTION
Systems used to provide the necessary electrical power both wayside and on board - KEY TRENDS
Low energy consumption, Modular, Diagnostics
- RAILTECH STRATEGY
Market leader of power supply covering from low to high voltage for wayside and onboard - RAILTECH KEY FOCUS
Product portfolio, Smart installation, Diagnostic and control rooms
Market
Technology
transport
market
Growing market
- Highly growing market in all key segments.
- Mainly driven by electrification need and continuous technological and energetic improvement of infrastrutctures.
High barriers to entry
- Market strongly regulated by certifications which take years to be achieved.
- New products need omologation by the customer (Network operator), which also incurs into costs. Therefore, new product omologation is long and achievable only if customer requires.
Oligoply
- Market is an oligopoly, having few global corporations acting as system integrators (owning IXL/ERTMS system) interacting with network operators.
- System integrators have then a few tier 1 supplier for each technology (typically 1-2 per country).
Tier 1 Technology transport companies are facing major challenges and difficulties
Challenges for
tier 1 suppliers
in transport
technology market
- Reference market is very
cyclical being related to
country’s investment
cycle in infrastructure
- Market has a recurring minimum size (driven by maintenance) and has sudden periodical growths driven by new large projects
Tier 1 companies are
typically concentrated in
terms of:
- Country: Typically
working in 1 market
- Customers:Typically
tied to 1-2 system
integrators
- Service/product: Typically market leaders
of 1 or 2 products or
service
- Difficulty to enter newmarkets due to lack oflocal contacts andcertification
- Difficulty to diversifycustomers (highdependency from keysystem integrators)
- Difficulty to diversify into other products/services due to certifications andhomologation time costs
- Difficulty in attracting resources against large corporations (Hitachi, Alstom) who offer brand recognition, good salaries, modern HR policies and make large recruiting campaigns
- Most tier 1 companies are family businesses with need for succession
The group enables growth and value enhancement, operating as a holding company that offers key services in each area of railway technology development
Services
Railtech strategy is to buy a market leader in each segment and to complete it with acquisition
Group members can benefit of Railtech structure to strengthen their
business position.
CUSTOMERS AND ASSOCIATIONS
CUSTOMERS AND ASSOCIATIONS
- Both end customers (e.g. infrastructure managers, municipalities) and global system integrators can benefit to deal with a stronger group of companies that can offer a wider portfolio and the complete value chain in the main technologies.
- Railtech will be stronger in the national industrial associations (i.e. ASSIFER, VDB,..).
- Railtech will be a reliable partner in JV, RTI, Consortium, with a large number of certifications and strong financials.
- Railtech will push for international development of the companies within the group.
- The group can act with a multi local / national approach with a standard background strategy.
- Of course, the wider proposal to the market it’s a plus and a chance for each company to benefit of potential opportunities that are out of target for a single member. Besides that within the Group the cross exchange of technical solution, customers and end markets will definitively push the business for all.
Group members can support each other in the operational processing
and benefit from cooperation.
CUSTOMERS
PROCUREMENT
OPERATIONAL MEASURES
RESOURCES BALANCING
CUSTOMERS
- Larger customers will appreciate and benefit of a standard operational approach.
PROCUREMENT
- Joint purchasing, bundled orders, improves the negotiating position and leads to cost savings.
OPERATIONAL MEASURES
- Standardization or centralization of the costing department, project management best practices, tax & legal common approach.
RESOURCES BALANCING
- Strategic planning can help to balance loads in resources within the
Group.
Railtech transforms owner-managed businesses and establishes
effective HR policies to address the skills shortage.
WHO IS AUCTUS?
WHAT IS THE COLLABORATION WITH AUCTUS LIKE?
HOW LONG WILL AUCTUS STAY ON BOARD?
WHO IS AUCTUS?
- Investment company founded by entrepreneurs for medium-sized businesses with over 20 years of experience and more than 400 company investments since 2001. In the fifth fund, ¾ of the capital comes from the AUCTUS team and entrepreneurs (many of them successful managers of AUCTUS platforms).
- AUCTUS provides access to experienced experts in organizational processes, financing, sales optimization, IT, procurement and strategic issues.
WHAT IS THE COLLABORATION WITH AUCTUS LIKE?
- In the acquisition process, AUCTUS reviews relevant company documents with consultants and gets an on-site impression together with RailTech management.
- For the banks and partners of AUCTUS a regular reporting and coordination of the current development is as important as for RailTech Holding.
HOW LONG WILL AUCTUS STAY ON BOARD?
- In principle, AUCTUS has no pressure to sell the stake – but an exit in ~7
years is realistic:
I) Financial security remains in place, II) Individual DNA of the portfolio companies remains in place, II) Family business culture remains.
Railtech transforms owner-managed businesses and establishes
effective HR policies to address the skills shortage.
RAILTECH HR MEASURES
HUMAN RESOURCES POLICY: BEST PRACTICES
MEETINGS
SMART HR
RAILTECH HR MEASURES
- Railtech transforms owner-managed companies into entrepreneurial, manager-led businesses.
HUMAN RESOURCES POLICY: BEST PRACTICES
MEETINGS
- Weekly, monthly, quarter management local meetings customized on
each single company needs.
- Annual company team building meeting, summer party and Christmas party.
SMART HR
- Partnership with educational stakeholders to increase quality in
recruitment.
- Flexible location.
- Performance-based wage increases, annual profit sharing
- Company pension plan and/or credit card.
Simple tools from RailTech Group enable proactive liquidity
management and action.
REPORTING
CASH FLOW TOOL
INVOICE CYCLE
REPORTING
- Railtech will support to put in place the most effective and efficient reporting system in order to constantly monitor the KPI of your company.
- Depending on company needs Railtech can support in the choice of a new ERP or BI software to favour efficient reporting and data monitoring.
CASH FLOW TOOL
- Railtech will share its simple tools to constantly monitor and manage cash. For example, a simple excel-based tool shows account balances, free lines and expenses (differentiated by category) individually as well as cumulatively at company and group level.
- Depending on the level of effort and detail, this can be populated by days or weeks ahead (invoices/payments due, expected cash receipts from invoices issued) to proactively manage liquidity at all times and identify any bottlenecks early.
INVOICE CYCLE
- The goal should be to invoice as often as possible on each project.
- This allows tight cash cycles to be designed, minimizing the use of CC lines and maximizing the use of cash discounts.
Railtech can manage marketing activities helping to reduce costs and
improve the effectiveness of operations.
SYNERGY POTENTIAL IN MARKETING
BEST PRACTICE SOCIAL MEDIA
SYNERGY POTENTIAL IN MARKETING
- Website, business cards and job postings in uniform logic with one service provider.
- Bundling orders from different portfolio companies allows greater negotiating leeway and access to more established service providers.
- Simultaneous maintenance of individual identity (e.g. name, logo, company colors).
BEST PRACTICE SOCIAL MEDIA
- The holding company can take over social media activities for the portfolio companies.
- Authentic reporting for all stakeholders.
- Posts should include a healthy mix of site impressions, strategic innovations, and competitive differentiation.
- Presence on Facebook, Instagram and LinkedIn differentiation.
Benefits
For group joiners
- Reduced country and customer dependency.
- Exposure to different technologies and infrastructures.
- Export support through local branches in other countries.
- Commercial synergies.
- Talent and worker acquisition.
- Managerialization and generational transition.
For customers
- Benefit for network operator: Having an alternative to the 3-4 tier 1 players in some tenders.
- Benefit for general contractor: Offering one-stop-shop partner on all key technologies. No need to coordinate and identify 6-7 players to participate to the tender.
