Alstom Sa · EURONEXT:ALO
Alstom Sa — FY2013/14 Earnings Presentation
27 slides from Alstom Sa's earnings presentation, May 7, 2014
Slide 1: Annual Results Fiscal Year 2013/14
Annual Results Fiscal Year 2013/14 7 May 2014
Slide 2: Key takeaways
Key takeaways ● 4% organic growth in sales ● Resilience in profitability with IFO at 7% ● Positive FCF in H2 after significant outflow in H1 ● Cost saving performance plan “d2e” on track ● Balance sheet reinforcing • Steam auxiliary components to be sold for an EV of around €730 million • No dividen
Slide 3: Agenda
Agenda • Key events of 2013/14 • Financial results • Conclusion P3
Slide 4: 2013/14 key figures
2013/14 key figures Resilience at the operational level, FCF positive in H2 In € million % change 2012/13* 2013/14 % change organic Orders 23,770 21,498 -10% -6% Book-to-bill ratio 1.17 1.06 Backlog 52,875 51,458 -3% 2% Sales 20,269 20,269 0% 4% Income from operations 1,463 1,424 -3% Operating margi
Slide 5: Orders down due to a limited number of large projects
Orders down due to a limited number of large projects Contrasted order intake In € billion Orders • Transport benefiting from strong demand for urban products and systems 23.8 21.5 21.7 7.1 6.3 6.4 • Grid affected by lack of HVDC projects 4.0 5.1 3.5 2.0 2.0 2.6 • Renewable Power performing well bot
Slide 6: Major commercial successes
Major commercial successes THERMAL POWER RENEWABLE POWER 33% • Opole – two 900 MW units for the largest coal- • Brazil – several contracts of ECO 122 wind fired power plant in Poland (€1.25Bn) turbines (> €500m) • GDF Suez – maintenance services and gas • Gilboa – first pumped storage power station
Slide 7: Thermal Power business supported by balanced portfolio
Thermal Power business supported by balanced portfolio Services: resilient Resilient Thermal Services In € billion • Large installed base 5.2 4.9 4.4 4.2 4.2 4.2 • Services to both own and third-party fleets • Innovative retrofit • Diversified technologies 2011/12 2012/13 2013/14 • Global presence (
Slide 8: "Dedicated to Excellence" plan progressing well
“Dedicated to Excellence” plan progressing well One third of the target achieved to date d2e realised and target savings In € million 1,500 > 500 End March 14 End March 16 €1.5 billion of savings targeted by end March 2016 vs. 2012/13 cost base P8
Slide 9: Examples of realised initiatives by Sector
Examples of realised initiatives by Sector THERMAL POWER RENEWABLE POWER • Adaptation plan in European boiler • Grouping of most French hydro capacity progressing well engineering and support activities in Grenoble (completed) • 30% overall lead time decrease thanks to leaner manufacturing • Reorgan
Slide 10: Transversal actions
Transversal actions Indirect costs Measures for all indirect sourcing -8% categories yielding tangible results • Indirect Sourcing reduced by 8% thanks to tight spend disciplines (IS&T, travel, communication, utilities, consumables, etc) 2012/13 2013/14 P 10
Slide 11: Financial situation
Financial situation Liquidity position ● Steam auxiliary components business (€430 million In € billion sales) to be sold for €730 million, closing expected 3.5 3.7 in the first half of 2014/15 3.2 ● A €1.35 billion syndicated credit line fully undrawn maturing in 2016 Mar-13 Sep-13 Mar-14 ● Large h
Slide 12: Agenda
Agenda • Key events of 2013/14 • Financial results • Conclusion P 12
Slide 13: Income statement
Income statement In € million % change % change 2012/13* 2013/14 reported organic Sales 20,269 20,269 0% +4% Income from operations 1,463 1,424 -3% Operating margin 7.2% 7.0% Restructuring charges (137) (220) Other non-operating expenses (137) (196) EBIT 1,189 1,008 -15% Financial result (266) (308)
Slide 14: Thermal Power key figures
Thermal Power Key figures In € million Orders and -2% • Better order intake in H2 2013/14 after low level in book-to-bill -6% H1, thanks to a large steam order in Poland and 9,574 9,017 gas contracts (11 turbines booked in 2013/14) 1.04 1.03 • Thermal Services orders remaining strong at €4.9 billion
Slide 15: Renewable Power key figures
Renewable Power Key figures • Growth in orders fuelled by hydro projects booked In € million +40% Orders and +26% (Albania, Turkey, Canada, India, Israel) and by book-to-bill 2,565 strong orders in wind in Brazil 2,029 1.40 1.13 2012/13 2013/14 +9% • Sales growing substantially on an organic basis,
Slide 16: Grid key figures
Grid Key figures In € million Orders and -26% • Stable orders when excluding Dolwin 3 and book-to-bill -31% Champa HVDC contracts booked in 2012/13 5,058 1.32 3,514 • No awards of large HVDC projects over the period 0.93 2012/13 2013/14 +6% • Sales up 6% on an organic basis Sales 3,829 -1% 3,777 • W
Slide 17: Transport key figures
Transport Key figures In € million Orders and -9% • Sound level of orders (book-to-bill of 1.1) with book-to-bill -10% major contracts signed in Saudi Arabia, Chile and 7,109 6,402 France 1.30 1.09 • Prasa contract to be booked in Q1 2014/15 2012/13 2013/14 +9% • Large backlog supporting strong incr
Slide 18: Investing for future growth
Investing for future growth R&D and capex in line with plans • Main R&D programmes R&D expenses In € million − Gas turbines development – focus on flexibility 682 737 733 and increased combined cycle efficiency H2 H2 − Successful tidal turbine test H2 − MaxSineTM eStorage energy storage solution, H1
Slide 19: Free cash flow
Free cash flow Positive free cash flow in H2 after a €(511) million outflow in H1 In € million 2012/13 2013/14 • H2 FCF reaching €340 Income from operations 1,463 1,424 million • Positive working capital Restructuring cash out (201) (214) change in H2 thanks to efficient cash Depreciation 348 343 ma
Slide 20: Net debt & equity
Net debt & equity In € million Net debt In € million Equity 53 556 (259) 5,087 (328) 5,109 (2,342) (171) (3,019) (259) (89) (158) Mar-13 FCF Dividends Acq. & Forex & Mar-14 Mar-13* Net income Dividends Pensions Forex & Mar-14 Disposals Other Other * Adjusted for revised IAS 19 P 20
Slide 21: Pensions
Pensions Evolution of the underfunding In € million 31 March 2013* 31 March 2014 (204) 6,039 1,453 5,975 1,657 4,382 4,522 Fair value of plan Underfunding Defined benefit Fair value of plan Underfunding Defined benefit assets obligations assets obligations * Adjusted for revised IAS 19 P 21
Slide 22: Agenda
Agenda • Key events of 2013/14 • Financial results • Conclusion P 22
Slide 23: Strategic reorientation
Strategic reorientation • Binding offer on Alstom’s Energy business from GE ‒ Scope: Thermal Power, Renewable Power and Grid sectors, as well as corporate and shared services ‒ Price: €12.35 billion Equity Value, equivalent to €11.4 billion Enterprise Value • GE’s offer positively received by Alstom
Slide 24: Proposed acquisition of Alstom Energy activities – Transaction scope
Proposed acquisition of Alstom Energy activities – Transaction scope TRANSPORT THERMAL POWER RENEWABLE POWER Sales Sales Sales 1.8 5.9 • Trains 8.8 • Gas Power • Hydro • Rail Infrastructure • Coal Power • Wind & Integrated • Nuclear Power • New Energies Employees Employees Employees Solutions • Serv
Slide 25: Alstom Transport: Ideally Positioned to Grow
Alstom Transport: Ideally Positioned to Grow • Critical size and worldwide presence • Strong underlying rail market trends • Proven global / multi-local strategic agility • Differentiation through Integrated Solutions, Services and Innovation & Technology • Operational excellence supported by contin
Slide 26: Contacts and agenda
Contacts and agenda CONTACTS AGENDA Delphine BRAULT Vice President Investor Relations 20 May 2014 +33 (0)1 41 49 26 42 Filing of Registration Document Anouch MKHITARIAN Investor Relations Manager +33 (0)1 41 49 25 13 1 July 2014 Charles-Antoine DUBOIS (during Annual General Meeting Perrine DE GASTIN
Slide 27: www.alstom.com
www.alstom.com ALSTOM Shaping the futiare