Alstom Sa · EURONEXT:ALO
Alstom Sa — FY2014/15 Earnings Presentation
25 slides from Alstom Sa's earnings presentation, May 6, 2015
Slide 1: Annual Results Fiscal Year 2014/15
Annual Results Fiscal Year 2014/15 6 May 2015
Slide 2: Key takeaways
Key takeaways ● 2014/15 results – guidance met • Transport showing solid commercial and operational performance • Orders up 63%, sales growth of 8% (7% organic) • IFO margin (including corporate costs) improving by 50bps to 5.2% • Energy businesses classified as discontinued operations (IFRS 5) • FC
Slide 3: Agenda
Agenda • Key events 2014/15 • Financial results • Update on GE/Alstom project • Outlook P3
Slide 4: 2014/15 key figures: good operational performance, strong cash flow in H2
2014/15 key figures Good operational performance, strong cash flow in H2 % change In € million 2013/14* 2014/15 % change organic Orders 6,148 10,046 63% 61% Sales 5,726 6,163 8% 7% IFO ** 268 318 19% Operating margin 4.7% 5.2% Net income – Cont. operations 160 (823) Net income – Discontinued operati
Slide 5: High level of orders fuelled by large projects
High level of orders fuelled by large projects Orders and book-to-bill Strong order intake In € million 10,046 • Book-to-bill of 1.6 6,148 • Strong demand for urban products, 1,6 signalling and services 1.1 • Emerging markets representing 63% of orders, driven notably by Middle-East/ Africa (includi
Slide 6: Main orders – Diversification across all geographies
Main orders – Diversification across all geographies Sweden: Coradia Nordic regional trains (€150m) UK: Maintenance for Sleeper trains (€125m) France: Trains for Paris metro Switzerland: (€500m) Pendolino high speed trains (€115m) Spain: Atlas signalling system for Mexico: Full metro North-West high
Slide 7: Sales and operating income growing substantially
Sales and operating income growing substantially Organic growth of 7% in 2014/15 Sales In € million 6,163 • Main deliveries: suburban, intercity and 5,726 * high-speed trains in France, Italy and Germany; very high-speed trains in Morocco; tramways in Dubai • Emerging countries representing 30% of s
Slide 8: "Dedicated to Excellence" plan progressing well
“Dedicated to Excellence” plan progressing well Savings achieved according to plan d2e realised and target savings (run-rate) In € million 450 c.300 End Mar 15 End March 16 End Mar 15 End March 16 €450 million of savings targeted by end March 2016 vs. 2012/13 cost base P8
Slide 9: Main realised initiatives
Main realised initiatives Sourcing Manufacturing • More efficient organisation with a better • Lean practices deployed to all functions and balance between central and local sourcing activities through all commodities • Higher standardisation and modularisation through best-in-class processes and to
Slide 10: Focused investments for future growth
Focused investments for future growth R&D Main R&D programmes In € million 132 − Trains 128 116 • CitadisTM X05 tramway • CitadisTM Spirit light rail vehicles (North America) − Systems • AXONISTM, integrated metro solution − Services • HealthHubTM, predictive maintenance tool − Signalling 2012/13* 2
Slide 11: Agenda
Agenda • Key events 2014/15 • Financial results • Update on GE/Alstom project • Outlook P 11
Slide 12: Income statement
Income statement In € million 2013/14* 2014/15 % change % change reported organic Sales 5,726 6,163 8% 7% IFO ** 268 318 19% Operating margin 4.7% 5.2% Restructuring charges (48) (106) Other non-operating expenses (58) (833) EBIT 162 (621) Financial result (159) (137) Tax result 94 8 Share in net in
Slide 13: Free cash flow
Free cash flow In € million 2013/14* 2014/15 • FCF from continued IFO 268 318 operations − Temporary negative Restructuring cash-out (35) (85) cash profile of a few Depreciation 74 102 contracts in H1 partly Capex (111) (99) reversed in H2 R&D capitalised, net of amortisation (9) (4) − Stringent wor
Slide 14: Liquidity and gross debt
Liquidity and gross debt ● A €1.35 billion undrawn credit line Liquidity position In € billion 3.6 2.9 ● Liquidity backed by new €1.6 billion revolving credit facilities available until completion of GE transaction Mar-14 * Mar-15 Undrawn credit line Gross cash ● Waiver obtained on financial covenan
Slide 15: Net debt & equity
Net debt & equity In € million Net debt In € million Equity (719) 5,109 (499) 333 4,224 (3,038) (3,143) (429) 573 (249) Mar-14* FCF Acq. & Forex & Other Mar-15 Mar-14* Net income Pensions Forex & Other Mar-15 Disposals * Adjusted after IFRS 11 P 15
Slide 16: Pensions
Pensions Evolution of the underfunding In € million 31 March 2014 31 March 2015 (761) 2,213* 7,823 1,452 5,974 4,522 5,610 Fair value of plan Underfunding Defined benefit Fair value of plan Underfunding Defined benefit assets obligations assets obligations * Continued operations accounting for €452
Slide 17: Discontinued operations - Alstom Energy
Discontinued operations - Alstom Energy Key figures for information purposes In € million -6% -12% Orders and Sales -7% book-to-bill 15,115 13,321 14,332 13,330 1.05 1.00 2013/14* 2014/15 2013/14* 2014/15 FCF – Net income 396 before tax 98 and 104 financial cash-out 19 2013/14* 2014/15 2013/14* 2014
Slide 18: Agenda
Agenda • Key events 2014/15 • Financial results • Update on GE/Alstom project • Outlook P 18
Slide 19: Project with GE on track
Project with GE on track Completed • Information – consultation with works councils • Finalisation and signing of sale contract and other associated agreements • Finalisation of GE Signalling acquisition and global rail alliance • French Foreign Investment authorisation obtained • Transaction largel
Slide 20: Use of proceeds
Use of proceeds • Provide the Group with a solid balance sheet structure • Deleverage the Group • Support development of the Group • GE Signalling acquisition • Reinvestment in the JVs with GE • Headroom for future growth embedded in the cash position and in the liquidity rights of the JVs • Maintai
Slide 21: Agenda
Agenda • Key events 2014/15 • Financial results • Update on GE/Alstom project • Outlook P 21
Slide 22: 2014/15 Guidance achieved
2014/15 Guidance achieved 2014/15 Guidance 2014/15 Actual Organic sales growth • High single digit 7% Operating margin* • Over 5% 5.2% Free cash flow - • Positive over the full- Continued operations year (before tax and €77 million financial cash-out) Group free cash flow • Substantially posit
Slide 23: Medium-term guidance confirmed
Medium-term guidance confirmed Medium term Organic sales growth • Over 5% per year Operating margin* • Gradual improvement within the 5-7% range Group free cash flow • In line with net income** (with possible volatility on short periods) * IFO margin including corporate costs ** Before Energy JVs P
Slide 24: Contacts and agenda
Contacts and agenda CONTACTS AGENDA Delphine BRAULT Vice President Investor Relations +33 (0)1 41 49 26 42 30 June 2015 Shareholders’ Meeting Perrine DE GASTINES Investor Relations Manager +33 (0)1 41 49 21 79 20 July 2015 Q1 2015/16 Orders and Sales Dymphna HAWKSLEY / Carine DIELNA Logistics +33 (0
Slide 25: www.alstom.com
www.alstom.com ALSTOM Shaping the future