Slide 1: Annual Results Fiscal Year 2018/19
Annual Results Fiscal Year 2018/19 7 May 2019
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 by their nature subject to a number of important risk and uncertainty factors (such as those described in the documents filed by
Slide 3: Agenda
Agenda 1 Introduction 2 FY 2018/19 business performance 3 Financial results 4 Conclusion ALSTOM – 7 May 2019 – P 3 © ALSTOM 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 corre
Slide 4: FY 2018/19 results highlights
FY 2018/19 results highlights ◼ Outstanding commercial momentum • Order intake of €12.1bn, leading to a new record-breaking backlog of €40.5bn • Book-to-bill of 1.5 ◼ Strong operational performance • Sales at €8.1bn with growth of 10% (11% organically) • Adjusted EBIT margin at 7.1%, up from 5.4%* ◼
Slide 5: Agenda
Agenda 1 Introduction 2 FY 2018/19 business performance 3 Financial results 4 Conclusion ALSTOM – 7 May 2019 – P 5 © ALSTOM 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 corre
Slide 6: An ambitious strategy for 2020
An ambitious strategy for 2020 OUR VALUES TEAM, TRUST & ACTION ETHICS & COMPLIANCE 1 CUSTOMER-FOCUSED ORGANISATION ORGANIC OUR 2 COMPLETE RANGE OF SOLUTIONS GROWTH VISION OUR BOOSTED PREFERRED 3 VALUE CREATION THROUGH INNOVATION PARTNER STRATEGY BY FOR SELECTIVE 4 OPERATIONAL AND ENVIRONMENTAL EXCEL
Slide 7: Customer-focused organisation: order intake and backlog
Customer-focused organisation Excellent order intake of €12.1bn and record backlog reaching €40.5bn Orders (in € billion) 12.1 Backlog (in € billion) 1.2 1.4 +15% 7.2 2.2 1.0 1.1 40.5 1.6 35.2 7.3 3.5 2017/18 2018/19 2017/18* 2018/19 Europe Americas MEA Asia Pacific Backlog breakdown as end of March
Slide 8: Customer focused organisation: main FY 2018/19 orders
Customer focused organisation Main FY 2018/19 orders Norway: on-board train control system France: next generation very high speed trains (TGV du Futur), regional trains, Grand Paris Express Germany: regional trains, Frankfurt Canada: Réseau Express Métropolitain tram (REM) in Montreal Luxembourg: r
Slide 9: Leader on all continents
Customer focused organisation Leader on all continents ◼ 36,300 employees working on 105 sites in 60 countries serving ◼ Market rankings(1) 280 customers AMERICAS(2) #1 EUROPE EUROPE (3) #1 on a 2018/19 basis #3 AMERICAS 21,400 EMPLOYEES MIDDLE EAST 5,200 EMPLOYEES AFRICA ASIA PACIFIC MIDDLE EAST AF
Slide 10: Complete range of solutions
Complete range of solutions Continuing towards more systems, signalling and services ◼ Very high speed, high speed, suburban/regional, metro, tram, e-bus, locomotive 43% ◼ Components: traction, bogie, motor ◼ Maintenance ◼ Modernisation ◼ Spare parts, repairs & overhaul 19% ◼ Support services ◼ Sign
Slide 11: Complete range of solutions: large services contracts
Complete range of solutions Large services contracts, including some associated to systems orders ◼ Réseau Express Métropolitain (REM) in ◼ Riyadh metro, Kingdom of Saudi Arabia Montreal, Canada ALSTOM – 7 May 2019 – P 11 © ALSTOM 2019. All rights reserved. Information contained in this document is
Slide 12: Outstanding organic sales growth of 11%
Complete range of solutions Outstanding organic sales growth of 11% Sales (in € billion) 8.1 7.3 ◼ c. 11% organic growth in Rolling Stock 1.6 1.4 • Regional and high-speed trains in Europe +10% 1.3 1.3 • Ramp-up of Amtrak project 1.5 1.8 3.2 3.4 ◼ c. 16% organic growth in Systems 2017/18* 2018/19 •
Slide 13: Value creation through innovation: sustained R&D
Value creation through innovation Sustained level of R&D R&D gross costs (in € million) Main R&D programmes As % of sales ◼ Completed renewal of rolling stock ranges ◼ Execution of Signalling R&D ◼ Investment in Digital solutions 380 345 Latest innovations 4.7% 4.7% ◼ Coradia iLint in passenger serv
Slide 14: Value creation through innovation: recent major launches
Value creation through innovation Recent major launches ◼ Coradia iLint experiences first passenger ◼ First commercial success for Alstom’s service in Germany Aptis in Strasbourg ALSTOM – 7 May 2019 – P 14 © ALSTOM 2019. All rights reserved. Information contained in this document is indicative only.
Slide 15: Operational excellence: continued strong performance
Operational excellence Continued strong operational performance Adjusted EBIT (in € million) ◼ Volume increase +44% ◼ Efficiencies in operational performance 570 ◼ Contained cost structure As % of sales 397 7.1% 5.4% 2017/18* 2018/19 % change reported * Restated for IFRS 9 & 15 ALSTOM – 7 May 2019 –
Slide 16: Operational excellence: competitive offering
Operational excellence Competitive offering Sourcing Global footprint ◼ Alstom Alliance ◼ Continued India ramp-up • Premium partnerships with strategic suppliers to • 3,700 people at end March 2019 (vs 3,300 at end support geographical expansion, share innovations March 2018) and mutualise developme
Slide 17: Excellence in delivery: solid project execution
Operational excellence Excellence in delivery: solid project execution ◼ PRASA, South Africa ◼ Amtrak High speed, USA • JV Gibela’s first X’Trapolis Mega trains The first Avelia Liberty to start successfully revealed testing end of 2019 ALSTOM – 7 May 2019 – P 17 © ALSTOM 2019. All rights reserved.
Slide 18: Environmental excellence
Environmental excellence On track to achieve 2020 objectives ◼ Improve our environmental footprint • Continue our efforts on energy saving, waste and CO2 • ISO 14001 for all operational units with more than 200 people • 2020 objective: energy intensity reduction by 10%. - 2018 status: 13% reduction
Slide 19: A culture based on diversity & entrepreneurship
A culture based on diversity & entrepreneurship ◼ 36,300 employees worldwide ◼ Diversity in terms of gender, generation, nationality, social and cultural background targeted: → 25% women in management or professional role by 2020 – Status: 21% in 2018/19 ALSTOM – 7 May 2019 – P 19 © ALSTOM 2019. All
Slide 20: CSR and Ethics & Compliance
CSR and Ethics & Compliance ◼ First AFAQ ISO 37001 certification for anti-bribery management system awarded by AFNOR on every continent ◼ Alstom selected in the Dow Jones Sustainability World and Europe indices for the 8th consecutive year and remains part of the top 5% assessed companies ◼ Alstom h
Slide 21: Agenda
Agenda 1 Introduction 2 FY 2018/19 business performance 3 Financial results 4 Conclusion ALSTOM – 7 May 2019 – P 21 © ALSTOM 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 corr
Slide 22: Income statement
Income statement % change % change In € million FY 2017/18* FY 2018/19 reported organic Sales 7,346 8,072 10% 11% Adjusted EBIT 397 570 44% Adjusted EBIT margin 5.4% 7.1% Restructuring charges (47) (65) Other charges (86) (97) EBIT 264 408 Financial result (99) (88) Tax result (59) (70) Share in net
Slide 23: Free cash flow
Free cash flow In € million FY 2017/18* FY 2018/19 EBIT 264 408 168 194 ◼ Positive EBIT evolution Depreciation & amortisation Capex (203) (207) ◼ Phasing of transformation capex R&D capitalisation (90) (68) 91 (12) ◼ Working capital limited evolution, Change in working capital (66) (90) impacted by
Slide 24: Capex developments
Capex developments Ramp up of transformation capex Capex* (in € million) 203 207 108 110 95 97 2017/18 2018/19 Capex Transformation Capex South Africa factory * excluding capitalised development costs Strategic transformation of our footprint €269m spent out of c. €300m transformation capex ALSTOM –
Slide 25: Liquidity and gross debt
Liquidity and gross debt In € million Liquidity position Liquidity 3,832 ◼ €3,432m cash and cash equivalents as of 31 March 2019 1,631 ◼ €400m revolving credit facility ; fully undrawn ◼ Energy JVs fully cashed in for €2.6bn Mar-18 Mar-19 Undrawn credit line Gross cash In € million Gross debt Gross
Slide 26: Net cash
Net cash In € million Net cash/(debt) 19 2,472 (84) 20 2,325 (255) 153 Mar-18 FCF Acq. & disposals* Capital increase Dividend paid Forex & other Mar-19 * includes GE disposals put option exercise for €2,594m and stakes of TMH for (€115m) ALSTOM – 7 May 2019 – P 26 © ALSTOM 2019. All rights reserved.
Slide 27: Equity
Equity Equity In € million (49) 136 4,159 (78) 39 681 3,430 Mar-18* Net income** Pensions Dividends Share base payments Forex & other*** Mar-19 * Restated for IRFS 9 & 15 ** Group share *** Of which Forex for €36m and €53m related to fair value adjustment of Locotech investment in TMH ALSTOM – 7 May
Slide 28: Shareholder distribution
Shareholder distribution 2,325 ◼ Board of directors to propose a dividend of €5.50 (1,230) per share, based on net cash position at 31 March 31 2019 1,095 ◼ Net cash post dividend will be at €1,095m without considering IFRS16 impact estimated between €400m and €500m Net Cash at 31 Dividend Net cash
Slide 29: Agenda
Agenda 1 Introduction 2 FY 2018/19 business performance 3 Financial results 4 Conclusion ALSTOM – 7 May 2019 – P 29 © ALSTOM 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 corr
Slide 30: Conclusion
Conclusion ◼ Excellent commercial momentum and strong operational performance ◼ Board of directors to propose a dividend of €5.50 per share ◼ Outlook to be presented during Alstom’s Capital Markets Day on 24 June 2019 ALSTOM – 7 May 2019 – P 30 © ALSTOM 2019. All rights reserved. Information contain
Slide 31: Q&A
Q&A ALSTOM – 7 May 2019 – P 31 © ALSTOM 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 co
Slide 32: Contacts and agenda
Contacts and agenda Agenda Contacts 24 June 2019 Julie MOREL Capital Markets Day VP Investor Relations & Corporate strategy +33 (0)1 57 06 95 39 10 July 2019 Julien MINOT Shareholders’ Meeting Investor Relations Senior Manager +33 (0)1 57 06 64 84 18 July 2019 Q1 2019/20 Orders and Sales investor.re
Slide 33: www.alstom.com
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