Alstom Sa · EURONEXT:ALO
Alstom Sa — FY2020/21 Earnings Presentation
37 slides from Alstom Sa's earnings presentation, May 11, 2021
Slide 1: Full year results Fiscal Year 2020/21
Full year results Fiscal Year 2020/21 11 May 2021
Slide 2: Disclaimer
Disclaimer ● This presentation contains forward-looking statements which are based on current plans and forecasts of Alstom’s management. Such forward-looking statements are relevant to the current scope of activity and are by their nature subject to a number of important risks and uncertainty facto
Slide 3: Agenda
Agenda • FY 2020/21 highlights • Market update • Business update • Financial results • Conclusion © ALSTOM SA, 2019. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should be relied on that it is complete or correct or will ap
Slide 4: FY 2020/21 highlights
1 FY 2020/21 highlights © ALSTOM SA, 2019. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should be relied on that it is complete or correct or will apply to any particular project. This will depend on the technical and comme
Slide 5: FY 2020/21 key takeaways
FY 2020/21 key takeaways ● Alstom results fully in line with 2021 guidance on its legacy perimeter: ● Book to bill ratio > 1 with very solid commercial performance in Q4 2020/21 ● Sales at €7.7bn (-4% organically) with a moderate impact from Covid-19 on operations ● Strong adjusted EBIT margin at 8%
Slide 6: FY 2020/21 key figures
FY 2020/21 key figures BT = Bombardier Transportation legacy 2 months contribution AT = Alstom legacy 12 months ORDERS SALES aEBIT¹ in €bn in €bn in €m 7.7% 7.3% 2.7% inc. 1.1 BT inc. 0.7 BT BT 9.9 8.2 8.8 630 AT 645 9.1 8% FY 2019/20 FY 2020/21 FY 2019/20 FY 2020/21 FY 2019/20 FY 2020/21 FREE CASH
Slide 7: Strong achievements on Alstom ESG roadmap
Strong achievements on Alstom¹ ESG roadmap 2020 Achievements in 2021 20%² ● 21.7%² of energy reduction in solutions (CO2) 36% ● 60% of electricity supply from renewables 25% ● 36% of newly developed solutions eco-designed ND ● Total Recordable Injury Rate for employees and contractors at 2.2³ 21.4%
Slide 8: Integration of Bombardier Transportation (BT) on track
Integration of Bombardier Transportation (BT) on track People & Organisation 90% of employees consider the integration as positive for the Group New N3 organization operational, with whole new organization to be deployed by summer Customer Satisfaction 600 customers contacted post acquisition, the v
Slide 9: Market update
2 Market update © ALSTOM SA, 2019. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should be relied on that it is complete or correct or will apply to any particular project. This will depend on the technical and commercial ci
Slide 10: Positive market outlook, supported by major announcements in favour of rail
Positive market outlook, supported by major announcements in favour of rail Rail increasingly favored by governments Numerous stimulus packages worldwide and society > €50bn of draft national recovery plans¹ related to Rail European Smart and Sustainable Mobility Strategy: high-speed rail traffic x2
Slide 11: Business update
3 Business update © ALSTOM SA, 2019. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should be relied on that it is complete or correct or will apply to any particular project. This will depend on the technical and commercial
Slide 12: Solid order intake for FY 2020/21 on the back of strong commercial momentum in Q4
Solid order intake for FY 2020/21 on the back of strong commercial momentum in Q4 Orders FY 2020/21 (in €bn) 9.1 9.1 1.0 Including 1.6 1.1 Signalling 0.7 for BT¹ AMECA 0.9 1.1 APAC 2.1 Systems 9.9 9.1 Americas Services 6.0 4.5 Europe Rolling stock FY 2020/21 per Region FY 2020/21 per Product FY 2019
Slide 13: FY 2020/21 main orders
FY 2020/21 main orders 34 Coradia Stream™ High Capacity Metro system in Toulouse double-decker and 30-year maintenance (France) – c.€470m for LNVG (Germany) - €760m Next generation digital interlocking for SNCF (France) 64 Tramways in Cologne (Germany) – c.€220m 200 multilevel Taipei Metro Line 7 ex
Slide 14: FY 2020/21 sales performance reflect moderate Covid-19 impact on operations
FY 2020/21 sales performance reflect moderate Covid-19 impact on operations balanced by solid execution Sales (in €bn) Sales H2 2020/21 + 4% organic growth YoY (Alstom legacy) Rolling Stock +6% organic vs H2 LY ● Ramp up of large contracts on-going 1.1 BT¹ 4.1 H2 AT 8.8 8.2 Services +9% organic vs H
Slide 15: Targeted value-creating bolt-on acquisitions
Targeted value-creating bolt-on acquisitions Strategic components Innovative partnership Services and Signalling Braking systems player IBRE (France) and Investment in railway cybersecurity specialist Services company Shunter (Netherlands) Brake linings player FLERTEX (France) 1 Cylus (Israël) High
Slide 16: Major milestones in our smarter and greener mobility innovation roadmap
Major milestones in our smarter and greener mobility innovation roadmap Two new countries ordered their first On the way to autonomous trains hydrogen trains • First locomotive run in partial autonomy in France • Automatic shunting locomotives test in the Netherlands in 2021 • Automatic Train Operat
Slide 17: Alstom pursued its ambition to decarbonate further mobility and impact positively society
Alstom pursued its ambition to decarbonate further mobility and impact positively society in 2020/21¹ Emissions reduction targets Exceptional €1.9m budget to 60% of electricity supply from consistent with Paris Agreement better support communities renewables, increasing by 24pp suffering from the Co
Slide 18: FY 2020/21 financial results
5 FY 2020/21 financial results © ALSTOM SA, 2019. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should be relied on that it is complete or correct or will apply to any particular project. This will depend on the technical an
Slide 19: aEBIT benefits from Gross Margin resilience and controlled SG&A and R&D costs
aEBIT benefits from Gross Margin resilience and controlled SG&A and R&D costs 6301 (in € million) Adjusted EBIT ● Alstom legacy improved backlog profitability and gross margin following 8% strong project execution and operational -0.7pp excellence initiatives 7.7% +0.2pp -0.1pp +0.1pp +0.1pp 7.3% ST
Slide 20: Income statement
Income statement (in € million) FY 2019/20 FY 2020/21 Sales 8,201 8,785 Adjusted EBIT¹ 630 645 ● Other non operating items including: Adjusted EBIT margin 7.7% 7.3% €117m of Bombardier Restructuring and rationalisation costs (18) (14) Transportation (BT) transaction and Impairments loss, Bombardie
Slide 21: Ebit to Free Cash Flow
Ebit to Free Cash Flow From EBIT to Free Cash Flow (in € million) ● Positive FCF for legacy Alstom D&A CAPEX Strong FCF H2 at 301m (151) 301 (99) WCC (151) Working capital driven by Rolling Stock R&D (99) (243) ramp up as anticipated 348 capitalised Other FY 2020/21 FCF (108) 48 ● FCF for legacy
Slide 22: Evolution of net cash/(debt)
Evolution of net cash/(debt) Net cash/(debt) evolution (in € million) ● Net debt evolution driven by : BT acquisition proceeds Positive FCF performance from Alstom (99) stand alone Capital BT net debt at increases (99)2021¹ (243) Jan 29th (4,400) BT acquisition impact 5,100 (1,407) Other BT ne
Slide 23: Bombardier Transportation (BT) project review update
Bombardier Transportation (BT) project review update ● Task force reviewed and assessed 120 ● Evolution of provision for risks on contracts – group (in € million) former BT legacy projects representing 70% of acquired backlog March 31 2020 578 Additions / Releases / Applications (273) ● Stabilizatio
Slide 24: Liquidity and gross debt
Liquidity and gross debt A reinforced liquidity position Bonds outstanding (in € million) Cash & Cash equivalent Undrawn credit lines ● Successful 8-year €750m senior bond issuance with 4,500 0% fixed coupon in January 2021 1,750 ● 7-year €700m senior bond outstanding with a 0,25% 2,575 fixed coupon
Slide 25: Shareholders distribution
Shareholders distribution DIVIDEND 2020/21 ● Dividend of 0.25€ per share with 31% payout ratio¹ will be proposed to the next shareholders’ meeting 1 The pay-out ratio is calculated by dividing the amount of the overall dividend with the “Adjusted net income” as presented in the management report on
Slide 26: Conclusion
6 Conclusion © ALSTOM SA, 2019. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should be relied on that it is complete or correct or will apply to any particular project. This will depend on the technical and commercial circu
Slide 27: Conclusion
Conclusion FY 2020/21 results ● FY 2020/21 guidance met on all targets for Alstom legacy, on the back of market rebound ● New organisation post- Bombardier acquisition deployed, fully focused on customers satisfaction and operational delivery of €74.5bn backlog ● Positive market dynamic expected fro
Slide 28: Contacts & Agenda
Contacts & Agenda CONTACTS AGENDA Julie MOREL July 2021 6 Capital Markets Day VP Investor Relations & Corporate strategy July 2021 27 Q1 2021/22 Orders & Sales Claire LEPELLETIER Deputy Head Investor Relations July 2021 28 Shareholders’ assembly investor.relations@alstomgroup.com © ALSTOM SA, 2019.
Slide 29: Q&A session
Q&A session © ALSTOM SA, 2019. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should be relied on that it is complete or correct or will apply to any particular project. This will depend on the technical and commercial circum
Slide 30: Appendix
Appendix © ALSTOM SA, 2019. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should be relied on that it is complete or correct or will apply to any particular project. This will depend on the technical and commercial circumsta
Slide 31: Alstom as of March 2021
Alstom as of March 2021 Over 17,500 70,000 engineers EUROPE employees 43,100 worldwide employees 70 9,500 patents countries AMERICAS AMECA (Africa, Middle East, Central Asia) APAC 12,200 (Asia Pacific) employees 4,900 employees 11,500 Over employees Partner 250 sites to over 300 cities Over 150,000
Slide 32: FY 2020/21 Sales per regions and product lines
FY 2020/21 Sales per regions and product lines Sales breakdown per regions Sales breakdown per product line Americas 15% Systems Asia Pacific 11% Africa, Middle East & 12% Central Asia Signalling 12% 18% FY 2020/21 FY 2020/21 Rolling stock Europe 61% 51% Services 20% Asia Pacific Systems 11% 16% Ame
Slide 33: Industry-leading backlog reaching €74.5bn
Industry-leading backlog reaching €74.5bn Backlog breakdown per regions Backlog breakdown per product line Asia Pacific Systems Americas 15% 6% Signalling 14% 8% FY 2020/21 Europe FY 2020/21 Africa, Middle East & Central Asia 55% Services 16% Rolling stock 33% 53% Systems Asia Pacific Europe 6% 15%
Slide 34: Equity
Equity Equity (in € million) 10 5,112 - 102 11 306 247 9,117 3,328 Mar-20 Net income Group Change in Dividends Net pensions Other Capital increase Share based March 21 controlling variations by issuance of payments interests and other new shares © ALSTOM SA, 2019. All rights reserved. Information co
Slide 35: Appendix - Non-GAAP financial indicators definitions
Appendix 1 - Non-GAAP financial indicators definitions This section presents financial indicators used by the Group that are not defined by accounting standard setters. ● Orders received A new order is recognised as an order received only when the contract creates enforceable obligations between the
Slide 36: Appendix - Non-GAAP financial indicators definitions
Appendix 1 - Non-GAAP financial indicators definitions ● Adjusted Net Profit Following the Bombardier Transportation acquisition and with effect from these Fiscal year 2020/21 consolidated financial statements, Alstom decided to introduce the “adjusted net profit” indicator aimed at restating its ne
Slide 37: www.alstom.com
www.alstom.com www.alstom.com