Slide 1: Annual results Fiscal Year 2019/20
Annual results Fiscal Year 2019/20 12 May 2020
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 • FY 2019/20 highlights • Market update • Covid-19 crisis and adaption measures • FY 2019/20 Alstom in Motion and business update • Bombardier transaction status • FY 2019/20 financial results • Conclusion and outlook © ALSTOM SA, 2019. All rights reserved. Information contained in this docum
Slide 4: FY 2019/20 highlights
1 FY 2019/20 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: Key messages
Key messages ● Strong commercial momentum with orders reaching €9.9bn supported by large wins in Europe and Asia-Pacific ● Sales at +2% (+1% organic) in the context of an expected slowdown in systems, and including some Covid-19 impact at year end ● Continued improvement of adjusted EBIT margin reac
Slide 6: FY 2019/20 key figures
FY 2019/20 key figures1 ORDERS SALES aEBIT2 in €bn in €bn in €m +1% 7.7% Organic* +4% 7.5% c.€100m 630 Avelia 12.1 8.2 606 9.9 8.1 Covid-19 Horizon™ and impact Montreal metro for €4.3bn FY 2018/19 FY 2019/20 FY 2018/19 FY 2019/20 FY 2018/19 FY 2019/20 *+2% reported FREE CASH FLOW NET INCOME – EPS fr
Slide 7: 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 8: 2019 showed strong rail traffic momentum along with large investment plans
2019 showed strong rail traffic momentum along with large investment plans Solid passenger traffic growth since 2008 Large investment plans announced for rail Passenger traffic per market segment In basis 100 Urban +5% Average growth (2008 – 2018) Mainline 90% reduction in transport +3.6% emissions
Slide 9: Headwinds in 2020 but rail market resilient mid term
Headwinds in 2020 but rail market resilient mid term Strong commitment to rail despite difficult environment ● Sharp drop of passenger traffic following £106 billion High Speed 2 (UK) project phase 1 confirmed in April 2020 Covid-19 containment measures, traffic Amtrak received $1 billion in federal
Slide 10: Covid-19 crisis impact and adaption measures
3 Covid-19 crisis impact and adaption measures © 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
Slide 11: Alstom has immediately adapted its activities with the principle of « safety first »
Alstom has immediately adapted its activities with the principle of « safety first » ● Extraordinary mobilization of teams with crisis cells put in place at every level ● Temporary closures of manufacturing sites and maintenance depots until health and safety measures are put in place or upon govern
Slide 12: Covid-19 impact on Alstom’s business
Covid-19 impact on Alstom’s business Revenue ● Material reduction of production across all activities starting mid March 2020 Impact of lock down measures on • Rolling stock and Systems most affected, following suspensions in level of activity¹ most manufacturing sites and supply chain • Services de
Slide 13: Adaptation measures to the current environment
Adaptation measures to the current environment ● Use of holidays and part-time work when local regulations allow ● Reduction in discretionary spending (R&D & IT, indirect costs) ● Tight control on recruitment ● Cash protection measures (working capital, CAPEX, commercial…) © ALSTOM SA, 2019. All rig
Slide 14: FY2019/20 AiM and business update
4 FY2019/20 AiM and 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 technic
Slide 15: Our « Alstom in Motion » strategic plan for 2019 – 2023
Our « Alstom in Motion » strategic plan for 2019 – 2023 Our ambition: be the leading global innovative player for a sustainable and smart mobility GROWTH EFFICIENCY by offering INNOVATE in smarter and greener powered by digital greater value to our customers mobility solutions Driven by One Alstom t
Slide 16: Strong order intake of €9.9bn
Strong order intake of €9.9bn GROWTH Orders (in € billion) 12.11 ● Strong book-to-bill ratio at 1.2 1.4 9.9 1.2 ● Comparable order intake when excluding last year 1.6 0.1 2.2 0.6 jumbo order (Avelia Horizon™ and Montreal metro) 7.3 7.6 ● Mainly fueled by Europe and Asia-Pacific ● Africa/Middle-East/
Slide 17: Some of our main contracts this year
Some of our main contracts this year GROWTH Perth, Australia – 43 C-series trains for Europe – various regional trains. Perth’s rail network with 20-year €2,000m maintenance contract.€800m Sydney, Australia – Driverless trains Barcelona, Spain – 42 MetropolisTM trains. and digital signaling systems.
Slide 18: Sustained sales growth supported by Rolling Stock and Signalling
Sustained sales growth supported by Rolling Stock and Signalling GROWTH Sales (in € billion) c.14% organic growth ● High speed and Regional trains in Europe 8.1 8.2 (France, Germany and Italy) 0.9 0.9 Rolling Stock ● Ramp-up of Amtrak and Prasa projects 1.6 1.4 1.5 1.3 4.7 c.(6)% organic growth 4.1
Slide 19: Signalling demonstrates strong performance
Signalling demonstrates strong performance GROWTH ● Strategic successes in ETCS1 L2 wayside with Orders (in € million) Mainline Paris-Lyon and UK framework contracts Europe ● Most ERTMS2 on-board tenders won +14% ● Leadership in CBTC3 reinforced with Marseille 1,729 Urban 1,526 Organic automation an
Slide 20: Innovation in smarter and greener mobility solutions
Innovation in smarter and greener mobility solutions INNOVATE Complete range of green mobility solutions Data-driven rail mobility ● Predictive analytics provided to Panama metro ● Railway System Simulator co-developed with Coradia iLint™ hydrogen train Digital signalling ● First application ERTMS L
Slide 21: AiM operational efficiency programs achieving first results
EFFICIENCY AiM operational efficiency programs achieving first results Project management efficiency Adjusted EBIT1 (in € million) Footprint stabilisation and optimisation aEBIT 7.7% 7.5% +4% margin ● 24% of Engineering workload allocated to India 630 Acceleration on digitization and automation 606
Slide 22: ESG fully embedded in Alstom’s new AiM strategy
ESG fully embedded in Alstom’s new AiM strategy ENABLING CARING CREATING DEVELOPING decarbonization for our a positive ethical and of mobility people impact on sustainable society supply chains © ALSTOM SA, 2019. All rights reserved. Information contained in this document is indicative only. No repr
Slide 23: Rail emits very low CO2 per passenger kilometer; Alstom aims to decarbonize mobility
Rail emits very low amount of CO2 per passenger kilometer¹, yet Alstom has further ambitions to decarbonize mobility Innovating in sustainable Greening Portfolio: 25% reduction Decarbonising operations: Mobility solutions of energy consumption by 2025² 100% electricity from renewable sources by 2025
Slide 24: Alstom engaged in the global fight against Covid-19
Alstom engaged in the global fight against Covid-19 >140,000 masks and >€180,000 in financial Alstom foundation budget 3D printing of facial shields protective materials donated donations (medical increase from €1.5million to in Barcelona, Argentina, in all countries and to equipment; protective €1.
Slide 25: Bombardier transaction status
5 Bombardier transaction status © 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 a
Slide 26: Bombardier Transportation acquisition status
Bombardier Transportation acquisition status UPDATE NEXT STEPS ● Alstom’s unions to render their opinion around ● Share Purchase Agreement signing: H2 CY20 summer 2020 ● Alstom EGM: at the latest end of October 2020 ● Clearance process from relevant regulatory ● Targeted regulatory approvals: H1 CY2
Slide 27: FY 2019/20 financial results
6 FY 2019/20 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 28: Income statement
Income statement (in € million) FY 2019/20 FY 2018/191 Sales 8,201 8,072 ● Continued improvement of adjusted Adjusted EBIT2 630 606 EBIT margin Adjusted EBIT margin 7.7% 7.5% Restructuring charges (18) (65) ● Some Covid-19 impact related to COVID-19 impact (24) - identified inefficiencies and Other
Slide 29: Continued improvement of aEBIT margin reflecting strong operational performance
Continued improvement of aEBIT margin reflecting strong operational performance Adjusted EBIT1 (in € million) 7.7% 7.5% ● Gross margin improvement driven by project aEBIT margin execution and efficiency aEBIT margin +4% 606 630 ● Increase in R&D investments, mainly in Signalling, supporting AiM stra
Slide 30: Strong normalised net income though one-off items last year
Strong normalised net income though one-off items last year Change in Net income from continued operations, group share (in € million) 12 (48) Financial 433 137 Taxes (93) 446 items • Of which 5 effective tax Impact of GE Energy JV rate of 25% Share Net Minority EBIT for €(106)m compared to income J
Slide 31: From EBIT to Free Cash Flow
From EBIT to Free Cash Flow (in € million) FY 2019/20 FY 2018/19 ● Capex stabilization EBIT 545 408 Depreciation & amortisation 2931 194 ● Anticipated adverse working capital position linked to ramp up of large Rolling stock projects Restructuring (12) 15 - WC consumption mainly in H1 Capex (195) (2
Slide 32: Cash Focus programme leads to first solid results
Cash Focus programme leads to first solid results 19/20 achievements Tender ● Free Cash Flow generation objectives set for 10,000 people Tools & process ● Improved payment profile in tender (incl. down payments) ● 13% Day Sales Outstanding¹ reduction including overdue collection People Gover- nance
Slide 33: Strong liquidity position with €2.2bn credit lines facilities available
Strong liquidity position with €2.2bn credit lines facilities available Strong liquidity position (in € million) 4,325 ● €2,175m cash and cash equivalents as of 31 March 3,832 2020 Additional €1,750m RCF ● €400m Revolving Credit Facility (RCF) fully undrawn 400 400 Mar-19 Mar-20 pro forma ● Addition
Slide 34: Shareholders distribution
Shareholders distribution DIVIDEND 2019/20 In the context of the current crisis and in the spirit of responsibility towards all stakeholders, proposed suspension of dividend © ALSTOM SA, 2019. All rights reserved. Information contained in this document is indicative only. No representation or warran
Slide 35: Conclusion and outlook
7 Conclusion and outlook © 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 comm
Slide 36: Conclusion and outlook
Conclusion and outlook ● Strong 2019/20 full-year results confirming positive trend and ability to deliver as per roadmap set in the context of AiM strategic plan ● Bombardier transaction progressing as planned ● Covid-19 crisis likely to impact negatively 2020/21. Objective of a 5% average annual g
Slide 37: Contacts & Agenda
Contacts & Agenda CONTACTS AGENDA Julie MOREL VP Investor Relations & Corporate 8 July 2020 strategy General Assembly Meeting Claire LEPELLETIER 16 July 2020 Deputy Head Investor Relations Q1 2020/21 Orders and Sales investor.relations@alstomgroup.com © ALSTOM SA, 2019. All rights reserved. Informat
Slide 38: 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 39: Industry-leading backlog reaching €40.9bn
GROWTH Industry-leading backlog reaching €40.9bn Backlog (in € billion) Backlog breakdown as end of March 2020 Asia Pacific 15% Europe 52% +1%* Americas 14% 40.5 40.9 Africa, Middle East & Central Asia 19% Systems 6% Signalling FY 2018/19 FY 2019/20 10% * +5% organic Services Rolling stock 33% 51% ©
Slide 40: Improved Earnings Per Share from continuing operations
Improved Earnings Per Share from continuing operations Earnings Per Share (in € per share) 3.05 Earnings Per Share from discontinued operations Discontinued o/w Impact related to GE 2.08 Earnings Per Share from Energy JV transaction - continuing operations discontinued Including €106m impact linked
Slide 41: Evolution of net cash
Evolution of net cash Net cash/(debt)1 (in € million) €5.5 per share dividend distribution on 17 July 2019 (1,240) 60 206 (98) (75) 2,325 1,178 March. 19 Dividend paid FCF Acq. & disposals Capital increase Forex & other March-20 1 Due to IFRS 16 implementation on 1 April 2019, the Group has chosen t
Slide 42: Equity
Equity Equity (in € million) 467 (1,234) 85 (185) 36 3,328 4,159 Mar-19 Net income* Dividends Pension Share-based payments Forex & other March-20 * Group share © ALSTOM SA, 2019. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or
Slide 43: 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 44: Non-GAAP financial indicators definitions
Appendix 1 - Non-GAAP financial indicators definitions ● Free cash flow Free cash flow is defined as net cash provided by operating activities less capital expenditures including capitalised development costs, net of proceeds from disposals of tangible and intangible assets. In particular, free cash fl
Slide 45: www.alstom.com
www.alstom.com www.alstom.com