Alstom Sa · EURONEXT:ALO
Alstom Sa — Shareholder Meeting (June 2011)
87 slides from Alstom Sa's shareholder meeting presentation, Jun 28, 2011
Slide 1: Shareholders' Meeting
Shareholders’ Meeting 28 June 2011
Slide 2: Emmanuel Vuillard, Deputy General Counsel
Emmanuel Vuillard Deputy General Counsel
Slide 3: Agenda of the Shareholders' Meeting
• Agenda of the Shareholders’ Meeting: Notice of Meeting page 3 • Resolutions: Notice of Meeting pages 23 to 25 P3
Slide 4: Patrick Kron, Chairman and Chief Executive Officer
Patrick Kron Chairman and Chief Executive Officer
Slide 5: Alstom & You
Alstom & Yt Patrick Kron ALSTOM
Slide 6: Shareholding structure as of 31 March 2011
Shareholding structure as of 31 March 2011 You are circa 260,000 shareholders Employees Asia & Middle East 1% 4% Americas 21% 31% Bouygues Institutional 52% investors United 10% France 61% Kingdom & 7% Individual Ireland 13% shareholders Rest of Europe P6
Slide 7: Share price
Share price A better performance in 2011 In euros after a 2010 disappointing year Jan 11 Feb 11 Mar 11 April 11 May 11 June 11 Alstom Base: €36.48 as of 1st January 2011 P7
Slide 8: Dividend
Dividend A dividend of €0.62 is put to your vote In € per share Evolution of dividend Evolution of pay-out ratio 1.24 1.12 40% 0.80 27% 29% 30% 0.62 25% 0.40 (*) Adjusted for the two-for-one split of the share 2005/06 2006/07* 2007/08* 2008/09 2009/10 2010/11 2005/06 2006/07 2007/08 2008/09 2009/10
Slide 9: Your information
Your information Permanent dialogue with shareholders Site visits Dedicated email address Information meetings Shareholders letter Free-phone number Conctact us: Investor.relations@chq.alstom.com www.alstom.com Investors section P9
Slide 10: Governance
Governance Patrick Kron
Slide 11: Composition of the Board of Directors (1/2)
Composition of the Board of Directors (1/2) Proposed renewals of Board members • Mr. Patrick Kron − Nationality: French − Chairman and Chief Executive Officer of Alstom • Mrs. Candace Beinecke − Nationality: American − Chair of Hughes Hubbard & Reed LLP − Member of the Nominations and Remuneration C
Slide 12: Composition of the Board of Directors (2/2)
Composition of the Board of Directors (2/2) Proposed renewals of Board members • Mr. James W. Leng − Nationality: British − Chairman of AEA Investors Europe − Independent Director, Chairman of the Nominations and Remuneration Committee • Mr. Klaus Mangold − Nationality: German − Chairman of the Advi
Slide 13: Board of Directors
Board of Directors Activity in 2010/11 A strongly committed and diverse Board • Review of the Group’s financial Composition situation and risks Activity of the Board of Directors in 2010/11 • 9 independent • Review of the Group’s strategy Board members out • 6 meetings of 14 (64%) • Update on the Gr
Slide 14: Audit Committee
Audit Committee Activity in 2010/11 • Monitoring of financial information Activity of the Audit • Review of internal control procedures, risk management Committee in 2010/11 and internal audit activity • 4 meetings • Organisational reviews of the treasury and foreign • 100% attendance exchange risks
Slide 15: Nominations and Remuneration Committee
Nominations and Remuneration Committee Activity in 2010/11 • Assessment of the compliance with AFEP-MEDEF principles Activity of the Nominations and • Review of the CEO’s and Executive Committee members’ Remuneration Committee in compensation 2010/11 • 4 meetings • Proposal of stock options and perf
Slide 16: Ethics, Compliance and Sustainability Committee
Ethics, Compliance and Sustainability Committee • New committee created on 28 September 2010, under the Board’s responsibility Composition: • Jean-Martin Folz, President • Demonstrates the importance of ethics, compliance and sustainable development in the • Katrina Landis Group’s life and values •
Slide 17: Ethics and Compliance
Ethics and Compliance Missions • Analysis and follow-up of ethics and compliance policies, as well as of the function organisation within Alstom • Review of fundamental values and code of ethics • Review of related risks within the general cartography of risks; information on potential breaches of r
Slide 18: Sustainable development
Sustainable development Missions • Review of environmental and social responsibility policies and management systems • Follow-up relations with stakeholders (suppliers, customers, local communities …) • Review of related risks within the general cartography of risks • Assessment of reporting and con
Slide 19: Ethics, Compliance and Sustainability Committee
Ethics, Compliance and Sustainability Committee Activity in 2010/11 • Presentation of the Ethics and Compliance Department and the Alstom Integrity programme Activity of the Committee in • Information on certification process of rules and 2010/11 procedures governing relations with sales and marketi
Slide 20: A new younger and enlarged Executive Committee
A new younger and enlarged Executive Committe As of 4 July 2011 Patrick Kron Chairman & CEO Philippe Joubert Deputy CEO Philippe Cochet Jérôme Pécresse G. Poux-Guillaume H. Poupart-Lafarge Thermal Power Renewable Power Grid Transport Nicolas Tissot Bruno Guillemet Keith Carr Finance Human Resources
Slide 21: Sustainable development
Sustainable development Patrick Kron
Slide 22: Corporate responsibility
Corporate responsibility ENVIRONMENT STAKEHOLDERS EMPLOYEES • Environment friendly products, • Customer satisfaction • Offer the best working systems and solutions conditions • Active partnership with • Mitigate the impact of suppliers • Give everyone the opportunity operations (factories and to be
Slide 23: Alstom Foundation
Alstom Foundation Accompany local communities and preserve the environment • Support local communities • Promote education • Health campaigns • Actions for the environment P 23
Slide 24: Financial results 2010/11
Financial results 2010/11 Nicolas Tissot
Slide 25: Evolution of the global context
Evolution of the global context Growth is back in emerging countries 2010 GDP growth by region Russia Europe 3.6% USA China 1.7% India 2.8% Brazil 10.3% 8.5% 7.6% Source: IHS Global Insight P 25
Slide 26: Orders received
Orders received Rebound in orders during the second half, driven by emerging countries Evolution of the orders received Share of emerging countries in the orders received In € Bn 12.1 60% 7.8 7.1 7.0 35% 19 10 11 9 H1 H2 H1 H2 2009/10 2010/11 2009/10 2010/11 Number of orders > €100 million P 26
Slide 27: Orders received by Sector
Orders received by Sector Orders rebound in the three Sectors In € Bn + 28% 19.1 14.9 3.5 Grid Power + 5% 9.9 Power 9.4 Transport + 4% Transport 5.5 5.7 2009/10 2010/11 P 27
Slide 28: Backlog by Sector
Backlog by Sector Backlog representing more than 2 years of sales In € Bn + 10% 46.8 42.6 5.1 Grid Power 23.3 - 5% 22.2 Power Transport 19.2 + 1% 19.5 Transport 2009/10 2010/11 P 28
Slide 29: Power – Main contracts and agreements
Power – Main contracts and agreements Thermal Systems & Products • Gas: 3 combined-cycle power plants in Singapore • Nuclear: equipment and services for turbines and generators in 3 power plants in China • Coal: boilers in India, air quality control systems in South Africa, on- going talks with Inte
Slide 30: Transport - Main contracts and agreements
Transport - Main contracts and agreements Very high speed Metros et tramways • Morocco: 14 Duplex trainsets for the Tangiers- • Contracts for metros in Chennai (India), Panama Casablanca line and Santo Domingo • Tramways in France (Tours, Paris, Le Havre) and Partnerships and cooperations in Tunisia
Slide 31: Grid - Main contracts and agreements
Grid - Main contracts and agreements Contracts • Offshore substation in Germany • Gas insulated substations (GIS) in Italy, Russia and United Arab Emirates • Energy management systems (EMS) for national grids in Sweden and Kuwait Partnerships and acquisitions • Acquisitions of Uisol (USA) and Psymet
Slide 32: Sales by Sector
Sales by Sector Growth in sales due to the integration of Grid In € Bn + 6% 20.9 19.7 Grid 3.6 Power 13.9 - 16% 11.7 Power Transport 5.8 - 3% 5.6 Transport 2009/10 2010/11 P 32
Slide 33: Income from operations and operating margin
Income from operations and operating margin Performance in line with guidance In € Mn 9.1% - 12% 7.5% 1,779 1,570 2009/10 2010/11 P 33
Slide 34: Income from operations and operating margin by Sector
Income from operations and operating margin by Sector In € Mn Power results down as expected Power Transport Grid - 28% - 4% nd 10.6% 1,468 9% 7.2% 7.1% 1,052 6.0% 414 398 218 2009/10 2010/11 2009/10 2010/11 2010/11 P 34
Slide 35: Net income
Net income Net income impacted by large non recurring charges In € Mn - 62% 1,217 462 2009/10 2010/11 P 35
Slide 36: Free cash flow
Free cash flow Free cash flow impacted by the low level of orders during the 1st semester In € Mn 2010/11 185 2009/10 (516) P 36
Slide 37: Net cash (debt) evolution
Net cash (debt) evolution Limited net debt 2,222 In € Mn (516) X (1,286) (2,558) (364) (70) Net cash Free Acquisitions Dividends Other Net debt 31 March 2010 cash flow 2009/10 31 March 2011 P 37
Slide 38: A strong financial structure
A strong financial structure Stable equity In € Mn 4,101 4,152 31 March 2010 31 March 2011 P 38
Slide 39: Focus on Alstom Shanghai Boilers Co.
Focus on Alstom Shanghai Boilers Co. Philippe Joubert
Slide 40: Power plants market for the next 5 years
Power plants market for the next 5 years • Bulk of demand in emerging countries (Asia) Av. orders: 230/260 GW p.a China • Coal still represents a strong share of the energy mix Europe Russia & CIS North America India Other renewables Middle East Solar & Africa Wind Latin America Hydro Rest of Asia N
Slide 41: Coal power plants
Coal power plants A strategic market • An essential component of the energy mix Denitrification Boiler system Steam turbine – 40% of electicity is produced from and generator Coal coal • A market mainly located in Asia – 85% of demand in China, India and other Asian countries • A major activity for
Slide 42: Boilers manufacturing capacities
Boilers manufacturing capacities China et India representing more than 80% of manufacturing capacities GW/y Alstom 80 70 70% Shanghai Electric 60 Other Chinese 50 Japanese 40 Indian 30 Others 20 >10% 10 0 Rest of the China India world
Slide 43: Strategic rationale for a partnership with SEC
Strategic rationale for a partnership with SEC The alliance of complementary and strong assets in boilers Boiler Island Boiler An integrated model based on in-sourced key A standardised component strategy components A high volume of activity A long-lasting presence in coal plants A very competitive
Slide 44: Scope of the Joint Venture
Scope of the Joint Venture A balanced partnership ALSTOM Shanghai Electric Co. 50/50 Registered in Shanghai A 6-member Board Alstom-Shanghai Headquartered Rotating chairman every 2 years in Singapore Boilers Co.* Management appointed by the Board *Service on boilers and turnkey not included in the J
Slide 45: Key figures 2010
Key figures 2010 Alstom-Shanghai Boilers Co., the world n°1 boiler company Alstom- Shanghai ALSTOM Shanghai Electric Co. Boilers Co. Sales €1.3 bn €1.2 bn €2.5 bn Headcount 4,000 3,700 7,700 50/50 shareholding, cash free/debt free deal P 45
Slide 46: A win/win agreement
A win/win agreement • Access to very competitive boiler supply to support its turnkey and service businesses ALSTOM • Development on the Chinese market through the joint company • Access to the international market for direct boiler Shanghai sales Electric Co. • Key technologies owned by the joint c
Slide 47: Focus on Alstom Grid
Focus on Alstom Grid Henri Poupart-Lafarge
Slide 48: Alstom Grid: synergies with Power and Transport
Alstom Grid: synergies with Power and Transport Power Transport Grid In Below Monte (Brazil), Alstom will equip the third largest hydro power plant in the world -turbo-generators -GIS -transformers P 48
Slide 49: Alstom Grid
Alstom Grid Alstom Grid, the reference in grid performance • Worldwide leader in transmission of electricity, Alstom Grid develops, manufactures and designs environmental friendly solutions to increase reliability, stability and performances of grids • 20,000 employees in more than 70 countries on t
Slide 50: A comprehensive and competitive offering
A comprehensive and competitive offering N°°1 in the world for aluminum electrolysis applications Protection relays N° °1 in the world for Network and Market Management Systems High Voltage Direct Current Flexible Alternative Current Transmission Systems Special Solutions for Network Management Syst
Slide 51: A worldwide presence
A worldwide presence More than 90 manufacturing and engineering sites in the world Redmond, USA Aix-les-Bains, France Wuhan, China GIS & Technical Institute The world’s first power transformer Network Management factory to receive green certification Systems Main industrial sites Main engineering si
Slide 52: Our customers
Our customers Grid market split by customers’ types Alstom Grid and geographies Orders split Industries 13% Americas Europe + 19% Americas Africa 20% Generation Europe + Africa Transmission 31% 34% 15% Middle East 54% Middle East 15% 13% Asia/Pacific Distribution 31% 18% Asia/Pacific 37% Source : Al
Slide 53: Grid transmission market: SuperGrid and Smart Grid
Grid transmission market is sustained by high growth applications: SuperGrid and Smart Grid Adjacent Smart Grid market 15 Bn€ Bn€ Smart Grid 5 Bn€ HVDC / Super Grid market Traditional market Traditional market drivers Super Grid / HVDC drivers Smart Grid drivers • Emerging countries’ growth • Long d
Slide 54: Alstom Grid maintains #3 position despite fierce competition
Alstom Grid maintains #3 position despite fierce competition • ABB Generalists • Siemens • Alstom Grid • XD Group Local ABB • Pinggao • Hyosung suppliers • JAEPS • Mitsubishi Siemens • Toshiba Specialists • Hyundai Alstom • GE Grid • TBEA • Crompton Greaves • TWBB • Nari Tech Main emerging suppliers
Slide 55: Priorities
Priorities Russia 1. Key regional priorities USA China Expand S. Arabia Fight India Brazil Defend 2. New offers development SuperGrid / HVDC SmartGrid Next generation substation 3. Operational priorities - Competitiveness - Customer Intimacy P 55 - Innovation
Slide 56: Alstom key actor of SuperGrid
Alstom key actor of SuperGrid Alstom co-signs Medgrid’s status « We need to build electricity highways in order to connect Europe with renewable sources of energy » E. Besson, French Ministry in charge of Energy P 56
Slide 57: Moving towards smarter renewable energy management
Moving towards smarter renewable energy management Example: Energinet.dk Denmark - 1980 Denmark - 2010 Central power plant DCHP unit Wind turbine Customer challenge YA-8 • Manage large portfolio of intermittent and distributed generation units Solution • e-terra Renewable Desk integrated in Energine
Slide 58: Energy Management systems: projects in Nice (France)
New Energy Management systems: 2 complementary projects in Nice (France) NiceGrid project (with ERDF and EDF SA) Reflexe project (with Veolia) Microgrid Energy Management Commercial Virtual Power Plant Integration of large concentration of renewable mainly Demonstration of feasibility of a commercia
Slide 59: Our operational priorities
Our 3 operational priorities Customer Intimacy Innovation Competitiveness P 59
Slide 60: Conclusion: a successful integration with confirmed opportunities
Conclusion: a successful integration with confirmed opportunities • A successful integration within Alstom – Synergies with Power and Transport to be further developed Off-shore substation erection and commissioning Sheringham Shoal 1 in North Sea - May 2011 • Key assets for a profitable growth – An
Slide 61: Strategy and outlook
Strategy and outlook Patrick Kron
Slide 62: Adapt to demand evolution: partnerships in high growth countries
Adapt to demand evolution Partnerships in high growth countries New partnerships in Russia JV with Atomenergomash INTER RAOUES JV with Transmasholding New partnerships in China Rostechnologies JV with Bardella MOR New partnership in Kazakhstan 5 JV Transport + partnerships for EMUs and locomotives 3
Slide 63: Adapt to demand evolution: adjusting capacities
Adapt to demand evolution Adjusting some capacities in Europe and North America • Adjusting Thermal Systems & Products − Reduction of 4,000 positions (20%) in Europe and North America to adapt to the load • Adjusting Transport in Europe − Adapting to load in 3 European countries (Germany, Spain, Ita
Slide 64: Investments
Investments Targeted investments POWER TRANSPORT GRID • Wind: construction of two new • Construction of a factory for • Ultra High Votage Centre in factories in Brazil and in the metros in Chennai (India) Shanghai (China) USA • Steam turbines: construction of a factory in India together with Bharat
Slide 65: Research and Development
Research and Development Maintain technology and innovation as priorities POWER TRANSPORT GRID • CO2 capture • New very high speed platform • Ultra High Voltage • Gas turbines performance • Regional train prototype • Smart Grids improvement (Regiolis) • Renewables (solar, offshore wind…) P 65
Slide 66: Power - Strategic priorities
Power - Strategic priorities • Adapt cost base to demand • Promote clean power • Benefit from growth in Asia • Develop in Service P 66
Slide 67: Transport - Strategic priorities
Transport - Strategic priorities • Accelerate geographical reach • Adapt to the lower demand in some European countries • Develop growth in Service and Signaling • Pursue operational excellence P 67
Slide 68: Grid - Strategic priorities
Grid - Strategic priorities • Strenghten Grid’s presence in Russia, China and the Americas • Maintain position in Europe and India • Develop ‘smart grid’/’super grid’ offering P 68
Slide 69: Outlook
Outlook Guidance confirmed for fiscal year 2011/12 Operating margin between 7% and 8% P 69
Slide 70: Forward-looking statements
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 Alstom wit
Slide 71: www.alstom.com
www.alstom.co fue ane Abaping the future | ALSTOM
Slide 72: Independent Auditors' reports
Independent Auditors’ reports
Slide 73: Dialogue with Shareholders
Dialogue with Shareholders
Slide 74: Vote of the resolutions
Vote of the resolutions
Slide 75: 1st resolution: statutory financial statements
1st resolution As an Ordinary Shareholders’ Meeting • Approval of the statutory financial statements and operations for the fiscal year ended 31 March 2011
Slide 76: 2nd resolution: consolidated financial statements
2nd resolution As an Ordinary Shareholders’ Meeting • Approval of the consolidated financial statements and operations for the fiscal year ended on 31 March 2011
Slide 77: 3rd resolution: allocation of net income
3rd resolution As an Ordinary Shareholders’ Meeting • Allocation of net income Dividend: €0.62 per share
Slide 78: 4th resolution: renewal of Patrick Kron
4th resolution As an Ordinary Shareholders’ Meeting • Renewing Mr Patrick KRON’s appointment as a Director
Slide 79: 5th resolution: renewal of Candace Beinecke
5th resolution As an Ordinary Shareholders’ Meeting • Renewing Mrs Candace BEINECKE’s appointment as a Director
Slide 80: 6th resolution: renewal of Jean-Martin Folz
6th resolution As an Ordinary Shareholders’ Meeting • Renewing Mr Jean-Martin FOLZ’s appointment as a Director
Slide 81: 7th resolution: renewal of James W. Leng
7th resolution As an Ordinary Shareholders’ Meeting • Renewing Mr James W. LENG’s appointment as a Director
Slide 82: 8th resolution: renewal of Klaus Mangold
8th resolution As an Ordinary Shareholders’ Meeting • Renewing Mr Klaus MANGOLD’s appointment as a Director
Slide 83: 9th resolution: renewal of Alan Thomson
9th resolution As an Ordinary Shareholders’ Meeting • Renewing Mr Alan THOMSON’s appointment as a Director
Slide 84: 10th resolution: authorisation to trade company shares
10th resolution As an Ordinary Shareholders’ Meeting • Authorisation to be given to the Board of Directors to trade the Company’s shares − Maximum amount: 10% of the share capital − Duration: 18 months
Slide 85: 11th resolution: authorisation to reduce share capital
11th resolution As an Extraordinary Shareholders’ Meeting • Authorisation to be given to the Board of Directors to reduce the share capital by cancellation of shares − Maximum amount: 10% of the share capital − Duration: 24 months
Slide 86: 12th resolution: implementation of decisions and formalities
12th resolution As an Extraordinary Shareholders’ Meeting • Authorisation to implement the Shareholders’ Meeting’s decisions and complete the formalities
Slide 87: www.alstom.com
www.alstom.co ALSTOM