Alstom Sa · EURONEXT:ALO
Alstom Sa — FY2016/17 Earnings Presentation
46 slides from Alstom Sa's earnings presentation, May 4, 2017
Slide 1: Full Year Results Fiscal Year 2016/17
Full Year Results Fiscal Year 2016/17 4 May 2017
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 2020 strategy 3 Financial results 4 Objectives ALSTOM – May 2017 – P 3 © ALSTOM 2017. 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
Slide 4: 2016/17 results highlights
2016/17 results highlights Continued strong commercial and operational performance • High order intake of €10.0bn and new record-breaking backlog of €34.8bn • Sales up 6% (organic 5%) at €7.3bn (book-to-bill above 1.4) • Adjusted EBIT up 15%, at €421m, leading to margin at 5.8% Solid balance she
Slide 5: 2020 strategy
Agenda 1 Introduction 2 2020 strategy 3 Financial results 4 Objectives ALSTOM – May 2017 – P 5 © ALSTOM 2017. 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
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: orders and backlog
Customer-focused organisation Continued strong commercial performance Orders (in € billion) Backlog (in € billion) 10.6 10.0 0.6 4.1 1.4 1.1 2.9 1.3 30.4 34.8 4.2 5.1 2015/16 2016/17 2015/16 2016/17 Europe Americas MEA Asia Pacific Backlog breakdown as end of March 2017 10.6 10.0 1.8 2.0 1.4 1.0 1.0
Slide 8: Leader on all continents
Customer focused organisation Leader on all continents 32,800 employees working on 105 sites in 60 countries serving 2016 rankings (1) 200 customers AMERICAS #1(2) EUROPE EUROPE #2(3) AMERICAS 20,700 EMPLOYEES MIDDLE EAST 5,200 EMPLOYEES AFRICA ASIA PACIFIC MIDDLE EAST AFRICA #2 4,000 2,900 EMPL
Slide 9: Main 2016/17 orders
Customer focused organisation Main 2016/17 orders UK: Trains maintenance France: Suburban trains renewal, 15 TGVs, 30 TETs, MP14 in Paris, metro & sig for Lyon, etc. Netherlands: Regional trains Canada: Ottawa LRV maintenance Germany: Regional trains Italy: NTV Pendolino and maintenance, USA: High s
Slide 10: Suburban trains project X'Trapolis Cityduplex in France
Customer focused organisation Surburban trains project X’Trapolis Cityduplex in France Scope Status • Alstom-Bombardier consortium (70%/30%) • Contract signed in January 2017 • Design and manufacture of 255 new double-deck • Studies already launched trainsets for lines D and E of the French Regi
Slide 11: Coradia Continental regional trains to Deutsche Bahn
Customer focused organisation Coradia Continental regional trains to Deutsche Bahn Scope • Two contracts from Deustche Bahn Regio AG • 53 Coradia Continental electric multiple units (EMUs) • Total amount over €300m • Part of 2012 frame contract • 220+ EMUs delivered in Germany since 2008 Status
Slide 12: Continued growth in sales
Customer focused organisation Continued growth Sales (in €bn) 7.3 6.9 5.2 2011/12* 2015/16 2016/17 2017/18 2018/19 2019/20 * Transport Sector Sales (before IFRS 11 application) Current backlog providing strong visibility on future sales ALSTOM – May 2017 – P 12 © ALSTOM 2017. All rights reserved. In
Slide 13: Complete range of solutions: organic sales growth of 5%
Complete range of solutions Organic sales growth of 5% Sales (in € billion) 6.9 7.3 Roughly stable standalone Rolling stock (43% of sales) 1.5 1.5 • Suburban, regional and high-speed trains in Europe (France, 1.2 +6% 1.4 Sweden, Italy, etc.) 1.0 1.3 • On-going execution of PRASA project 3.1 3.2 •
Slide 14: Riyadh lines 4, 5 & metro system
Complete range of solutions Riyadh lines 4,5 & 6 metro system Scope • 69 driverless Metropolis trains • Signalling system • Infrastructure: third rail and track, using Appitrack and power supply incl. Hesop substations Status • Contract booked in 2013/14 • Train production started in Katowice in
Slide 15: Sustained level of R&D
Value creation through innovation Sustained level of R&D R&D gross costs (in € million) Main R&D programmes As % of sales Renewal of rolling stock ranges Signalling programmes Predictive maintenance 248 226 3.3% 3.4% 2015/16 2016/17 ALSTOM – May 2017 – P 15 © ALSTOM 2017. All rights reserved.
Slide 16: Recent product launches
Value creation through innovation Recent product launches Coradia iLint, hydrogen train, with a first Aptis, a new 100% electric experience of successful run at 80 km/h mobility Coradia iLint (Germany) Aptis (France) ALSTOM – May 2017 – P 16 © ALSTOM 2017. All rights reserved. Information contai
Slide 17: Smart mobility
Value creation through innovation Smart mobility Optimet Orban map, an intelligent metro map Optimet real-time train occupancy, to give real-time information to passengers visual aid for passenger to decide their position on the platforms Mastria, the first multimodal supervision Nomad Digit
Slide 18: Continued strong operational performance
Operational excellence Continued strong operational performance Adjusted EBIT (in € million) Volume increase As % of sales Portfolio mix improvement +15% On-going initiatives for operational +23% 421 excellence 366 298 5.8% 5.3% 4.8% 2014/15 2015/16 2016/17 % change reported ALSTOM – May 2017
Slide 19: Operational excellence
Operational excellence Competitive offering • Sourcing • Global footprint Excellence in delivery • Global business transformation underway • Strong project management skills • Flawless execution Production of Citadis Spirit for Ottawa, Hornell (US) A digitalisation plan to create an agile and
Slide 20: Competitive offering: sourcing and global footprint
Operational excellence Competitive offering Sourcing Global footprint Alstom Alliance Continued India ramp-up • Premium partnerships with strategic suppliers to • 2,700 people at end March 2017 (vs 1,800 at end support geographical expansion, share innovations March 2016) and mutualise developme
Slide 21: Excellence in delivery: solid project execution
Operational excellence Excellence in delivery: solid project execution eLoco project, India PRASA project, South Riyadh project, Saudi Arabia • First batch of design submitted Africa • First train delivered on-time from to customer in February 2017 • 18 trains delivered from Brazil Katowice, P
Slide 22: Update on Cash Focus programme
Operational excellence Update on Cash Focus programme “Sourcing 4 Cash” led by a cross- Other actions functions team • Reinforcement of cash related matter in the early • Review of Terms & Conditions (T&C’s) phase of business development and tender phase • Instructions deployed worldwide • Compl
Slide 23: 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%. - 2016 status: 9% reduction c
Slide 24: A culture based on diversity & entrepreneurship
A culture based on diversity & entrepreneurship 32,800 employees worldwide Diversity in terms of gender, generation, nationality, social and cultural background targeted: 25% women in management or professional role by 2020 – Status: 20% in 2016/17 ALSTOM – May 2017 – P 24 © ALSTOM 2017. All r
Slide 25: Financial results
Agenda 1 Introduction 2 2020 strategy 3 Financial results 4 Objectives ALSTOM – May 2017 – P 25 © ALSTOM 2017. 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
Slide 26: Income statement
Income statement % change % change In € million FY 2015/16 FY 2016/17 reported organic Sales 6,881 7,306 6% 5% Adjusted EBIT 366 421 15% Adjusted EBIT margin 5.3% 5.8% Restructuring charges (138) (6) Other charges (454) (57) EBIT (226) 358 Financial result (275) (127) Tax result (597) (76) Share in
Slide 27: Free cash flow
Free cash flow In € million FY 2015/16 FY 2016/17 Cash Focus programme Adjusted EBIT 366 421 impact Several large down-payments Depreciation & amortisation 138 132 Restructuring cash-out (61) (49) Volatility on short period Capex (154) (150) Phasing of transformation R&D capitalisation (73)
Slide 28: Capex developments
Capex developments Progressive ramp up of transformation capex Capex* (in € million) 154 150 4 47 150 103 2015/16 2016/17 South Africa: on-going site construction Capex Transformation Capex * excluding capitalised development costs New sites to meet customers’ growing demand for a local presence c.
Slide 29: Liquidity and gross debt
Liquidity and gross debt In € million Liquidity position Liquidity 2,361 1,963 €1,563m cash and cash equivalents as of 31 March 2017 €400m revolving credit facility ; fully undrawn Flexibility with Energy JVs put options Mar-16 Mar-17 Undrawn credit line Gross cash In € million Gross debt Gros
Slide 30: Strong balance sheet
Strong balance sheet In € million Net cash/(debt) In € million Equity 3,713 128 (32) (203) 289 (171) (208) 182 3,328 (16) Mar-16 FCF Acq. & disposals* Forex & other Mar-17 Mar-16 Net income Pensions Forex & other Mar-17 * includes GE related separation impact (e.g. IS&T) ALSTOM – May 2017 – P 30 © A
Slide 31: Objectives
Agenda 1 Introduction 2 2020 strategy 3 Financial results 4 Objectives ALSTOM – May 2017 – P 31 © ALSTOM 2017. 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
Slide 32: 2020 objectives confirmed
2020 objectives confirmed 2020 OBJECTIVES Sales expected to grow at 5% per year organically Adjusted EBIT margin to reach around 7% c. 100% conversion from net income to free cash flow ALSTOM – May 2017 – P 32 © ALSTOM 2017. All rights reserved. Information contained in this document is indica
Slide 33: Contacts and agenda
Contacts and agenda Contacts Agenda 4 July 2017 Selma BEKHECHI Shareholders’ Meeting Investor Relations Director +33 (0)1 57 06 95 39 Julien MINOT 13 July 2017 Investor Relations Manager Q1 2017/18 Orders and Sales +33 (0)1 57 06 64 84 14 November 2017 investor.relations@alstom.com H1 2017/18 Result
Slide 34: www.alstom.com
, AEN Se ao. www.alstom.com ALSTOM pean, vies flac
Slide 35: Annexes: Market, Case studies
Annexes 1 Market 2 Case studies ALSTOM – May 2017 – P 35 © ALSTOM 2017. 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 depe
Slide 36: Railway traffic evolution
Railway traffic evolution Worldwide traffic evolution from 2007 to 20151 Growth Average growth vs LY (2007–2015) Urban +1.8% +5.3% Mainline Freight +1.6% +4.0% -10.9% -0.2% Passenger traffic for urban & mainline keeps growing, but freight is strongly decreasing 1 Urban traffic figures are for Top 30
Slide 37: Market forecast
Market forecast Average annual accessible market (€bn) 13/15 – 19/21 13/15 – 19/21 CAGR CAGR 101 110 122 +3.2% 101 110 122 +3.2% 11 +3.2% 10 +4.6% 10 9 11 Middle-East Africa 22 +5.4% +4.1% 9 Urban trains 8 9 18 10 Asia Pacific 16 Regional trains 8 7 4 15 +12.1% Mainline trains 13 34 16 31 Freight tr
Slide 38: Share of systems within the urban market
Share of systems within the urban market System market within urban market Share of urban market addressed through systems Annual average 2017-2019 Rest of NAM urban market MEA LAM 43% Metro system Europe 30% Tram system APAC 2013-2015 2017-2019 UNIFE UNIFE (past market) forecast Market addressed th
Slide 39: Annexes: Market, Case studies
Annexes 1 Market 2 Case studies ALSTOM – May 2017 – P 39 © ALSTOM 2017. 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 depe
Slide 40: NTV in Italy
NTV in Italy Options of previous contract signed in October 2015 4 Pendolino trains and related maintenance services Extension of maintenance services for NTV’s entire fleet from 20 to 30 years Delivery scheduled end 2017 and ready to enter into service in 2018 NTV’s renewed confidence in Al
Slide 41: Dubai: a fully integrated system for Expo 2020 link
Dubai: a fully integrated system for Expo 2020 link Alstom, leader of ExpoLink consortium 50 Metropolis trainsets and electromechanical works New route extends 15 km and serves Expo 2020 Delivery of the system before 2020 Dubai: Expo 2020 metro station A fully integrated metro project for Al
Slide 42: High speed train contract with Amtrak - US
High speed train contract with Amtrak - US 28 Avelia Liberty trains, new generation of Alstom very high speed trains Optimised maintenance costs Improved energy management Enhanced comfort for passengers A €1.8bn contract: deliveries expected to start in 2021 Avelia Liberty for Amtrak (US)
Slide 43: First successes for our new generation of Coradia trains
First successes for our new generation of Coradia trains 79 Intercity trains for the Netherlands 150 regional trains for Trenitalia with first operator order of 47 trains €0.8 billion €0.9 billion for the frame contract First deliveries by 2020 First deliveries by early 2019 Optimised train
Slide 44: Prasa project
Prasa project Scope X’Trapolis Mega (South Africa) • Design, manufacture and supply 600 trains for South Africa fleet renewal • Parts supply & technical support for 19 years • Gibela Joint Venture led by Alstom (61%), local factory, 65% average local content Status • First train delivered from B
Slide 45: eLoco project in India
eLoco project in India Scope • 800 electric locomotives • Associated maintenance: 13 years for the first 250 locos and 4 years for the following 250 • €200m investment incl. set up of manufacturing plant and two depots • JV with Indian Railways (74%/26%) Status • Contract booked in Q4 2015/16 E-
Slide 46: Dubai tramway system
Dubai tramway system Scope • Fully integrated tramway solution incl. trains, signalling, infrastructure and 13 years maintenance contract Status: already a success • Availability and punctuality above 99.5% • Robust operation under heavy rain and sand storm • Up to 30,000 passengers / day at pea