Alstom Sa · EURONEXT:ALO
Alstom Sa — H1 2024/25 Earnings Presentation
45 slides from Alstom Sa's earnings presentation, Nov 13, 2024
Slide 1: Half Year Results Fiscal Year 2024/25
Half Year Results Fiscal Year 2024/25 13 November 2024 1
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 relevant to the current scope of activity and are by their nature subject to a number of important risks and uncertainty facto
Slide 3: Agenda
Agenda Highlights of the first half of fiscal year 2024/25 Henri Poupart-Lafarge, Chief Executive Officer ――――――――――――――――――――――――――――――――――――――――――――――――――――――――――――――――――― H1 2024/25 financial results Bernard Delpit, Executive Vice-President and Chief Financial Officer ――――――――――――――――――――
Slide 4: Highlights
1 Highlights Henri Poupart-Lafarge Chief Executive Officer 4
Slide 5: Free Cash Flow at €(138) million benefiting from commercial activity
Free Cash Flow at €(138) million benefiting from commercial activity Confirmation of FY 2024/25 outlook ORDERS SALES €10.9bn €8.8bn ✓ Strong commercial momentum with margin-accretive order intakes Book-to-bill +3.9% (o/w 5.6% org) ✓ Sales and profitability in line with 1.25 vs H1 2023/24 trajectory
Slide 6: 3-year pipeline at ~€200bn: Asia-Pacific and Middle-East growth
3-year pipeline at ~€200bn: Asia-Pacific and Middle-East growth €102bn ALSTOM SITES SIGNALING EUROPE €39bn SYSTEMS ROLLING STOCK AMERICAS EUROPE: AND COMPONENTS Regional & Commuters: Belgium, France, Italy, Portugal NORTH AMERICA High-Speed: France, Italy €23bn Urban projects: New York, LRVs Service
Slide 7: €7.3bn orders in Q2: Landmark wins in Germany, Australia and France
€7.3bn orders in Q2: Landmark wins in Germany, Australia and France and good flow of small orders €0.85 bn €3.6 bn €0.7 bn PROXIMA (TRAINS & MAINTENANCE- France) S-BAHN KÖLN (TRAINS & MAINTENANCE - PERTH (SIGNALING - Australia) Germany) © ALSTOM SA 2024. All rights reserved. Information contained in
Slide 8: Strong backlog with confirmed gross margin improvement trajectory
Strong backlog with confirmed gross margin improvement trajectory Backlog stratification – Gross margin evolution 18.1% 18.3% 17.9% 17.8% Gross margin on backlog 17.5% 16.9% 16.0% €94.4bn €92bn €87bn €81bn > 20% 10% to 20% €43bn €40bn €41bn < 0% to 10% o/w Legacy BT contracts trading at zero gross m
Slide 9: Integration process finishing, amidst rising supply chain challenges
Integration process finishing, amidst rising supply chain challenges CONTINUED OPERATIONAL PROGRESS …HINDERED BY SUPPLY-CHAIN CHALLENGES • All sites with Alstom’s tools and processes by • Supply chain is the primary cause when Rolling year-end Stock contracts delays occur • Inflationary pressures la
Slide 10: Relentless effort on optimising execution of all major projects
Relentless effort on optimising execution of all major projects PARIS PROJECTS DELIVERED MULTIPLE LEGACY PROJECTS CONTINUOUS EFFORTS ON AS PLANNED SUCCESSFULLY TURNED AROUND SELECTED PROJECTS AVENTRA URBAN ✓ 130 cars delivered during H1 MP14 with 3 metro South Africa ✓ Modification program execution
Slide 11: Production shift towards better margin projects with the end of Aventra in Derby
Production shift towards better margin projects with the end of Aventra in Derby Quantity of cars produced per quarter 4,400 – 4,600 • No new cars production in Derby during H1 against ~300 cars during H1 23/24 • Numerous projects in startup phase, notably 4,522 4,151 o Urban projects in Americas an
Slide 12: Financial Results
2 Financial Results Bernard Delpit Executive Vice-President and Chief Financial Officer 12
Slide 13: H1 orders boosted by strong Q2; Services and Signaling exceed 50%
H1 orders boosted by strong Q2 Services and Signaling exceed 50% of order intake ORDERS H1 2024/25 (in €bn) +29.6% 10.9 10.9 10.9 AMECA 8.4 1.0 APAC Signaling 2.0 Americas 0.9 0.4 Systems Services 4.1 8.5 Europe 4.4 Rolling stock H1 2023/24 H1 2024/25 H1 2024/25 H1 2024/25 ● Book-to-bill 1.25, backl
Slide 14: Group organic growth in line with guidance
Group organic growth in line with guidance Double digit Services growth since merger SALES H1 2024/25 (in €m) H1 2024/25 SALES SPLIT BY PRODUCT LINES +3.9% ROLLING STOCK: €4,531m (+2% vs H1 2023/24, o/w 2% organic growth) + 5.9% Ramp-up in France, Brazil and Asia/Pacific offsetting legacy (0.9)% + 5
Slide 15: aEBIT margin improvement in line with FY 2024/25 trajectory
aEBIT margin improvement in line with FY 2024/25 trajectory H1 H1 (in € million) Evolution 2023/24 2024/25 Sales 8,443 8,775 +3.9% Cost of Sales (7,278) (7,547) +3.7% Adjusted Gross Margin before PPA¹ 1,165 1,228 +20bps As a % of sales 13.8% 14.0% Research and development expenses (254) (256) before
Slide 16: Profit improvement coming from volume and cost savings initiatives
Profit improvement coming from volume and cost savings initiatives aEBIT (in %) 35 bps 25bps 15bps (5)bps 5.9% 5.2% aEBIT H1 2023/24 olume and mix Industrial efficiencies Costs savings Scope aEBIT H1 2024/25 © ALSTOM SA 2024. All rights reserved. Information contained in this document is indicative
Slide 17: Improved EBIT drive Net income increase
Improved EBIT drive Net income increase (in € million) H1 2023/24 H1 2024/25 Evolution Sales 8,443 8,775 +3.9% Adjusted EBIT 438 515 +17.6% Adjusted EBIT margin 5.2% 5.9% +70bps Capital gain and other non-operating income 1 21 - Restructuring and rationalisation costs (7) (1) (85.7)% o/w Integration
Slide 18: Structural FCF seasonality mitigated by improved working capital phasing
Structural FCF seasonality mitigated by improved working capital phasing From EBIT* to Free Cash Flow (in € million) Capex / Cap 708 Dev D&A 234m (214) Financial & Tax Cash Out JVs dividends 92m (179) Other Funds From Operations (33) EBIT* 382m 282 (420) H1 2024/25 FCF H1 2024/25 (138) Total Working
Slide 19: Trade Working Capital
Trade Working Capital Seasonality on inventories, discipline maintained on overdues and payables 30 September 30 September (in € million / days of sales) 31 March 2024 2023 2024 Inventories 4,216 91 3,818 79 4,204 85 Trade payables (4,223) (91) (3,444) (71) (3,474) (71) Trade receivables 3,019 65 2,
Slide 20: Contract Working Capital
Contract Working Capital Larger quantity of projects in startup phase (in € million / days of 30 September 30 September 31 March 2024 sales) 2023 2024 Contract assets 5,369 116 4,973 103 5,476 111 Contract liabilities (6,958) (150) (7,995) (166) (8,538) (174) Current provisions (1,750) (1,612) (1,58
Slide 21: Net financial debt reduced by €2,067m to €927m following deleveraging plan
Net financial debt reduced by €2,067m to €927m following deleveraging plan 31 March 2024 30 September 2024 Net cash/(debt) Net cash/(debt) (927 (138 (15 (82 (19 FCF Dividends Leases and hybrid FX and others (2,994 coupon 2,321 Deleveraging plan1 1. Sale of TMH for €75m executed during FY 2023/24. Ri
Slide 22: Short-term debt reimbursed, strong increase in Cash & cash equivalents
Short-term debt reimbursed, strong increase in Cash & cash equivalents CASH, CASH EQ. and S/T DEBT (IN € MILLION) STABLE OUTSTANDING BONDS (IN € MILLION) 2,000 31 March 2024 30 September 2024 Jan-29 AVERAGE Oct-26 Jul-30 0.00% MATURITY 0.25% 0.5% 4 years Jul-27 1,789 0.125% AVERAGE COUPON 700 750 70
Slide 23: Conclusion
3 Conclusion Henri Poupart-Lafarge Chief Executive Officer 23
Slide 24: FY 2024/25 outlook and mid-term ambitions confirmed
FY 2024/25 outlook and mid-term ambitions confirmed Assumptions Outlook for FY 2024/25 • Supportive market demand • Book to bill above 1 • FY 2024/25 • Sales organic growth: around 5% downpayments consistent with FY • aEBIT margin around 6.5 % 2023/24 • FCF generation €300m to €500m • End of integra
Slide 25: Q&A session
Q&A session © ALSTOM SA 2024. 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 circums
Slide 26: Contacts & Agenda
Contacts & Agenda CONTACTS AGENDA 21 January 2025 Q3 2024/25 Martin VAUJOUR orders and sales VP Investor Relations 13 May 2025 Estelle MATURELL ANDINO FY 2024/25 results Deputy Head Investor Relations investor.relations@alstomgroup.com © ALSTOM SA 2024. All rights reserved. Information contained in
Slide 27: Financial Calendar
Financial Calendar 14 November H1 FY 24/25 roadshow in Paris - ODDO Paris, FRANCE 15 November H1 FY 24/25 roadshow in London - Jefferies London, UK 18 November H1 FY 24/25 roadshow in NYC – CITI NYC, USA 19 November H1 FY 24/25 roadshow in Chicago – CITI Chicago, USA 19 November Forum by Market Solu
Slide 28: Financial Calendar
Financial Calendar 5 December One-Stop-shop Brussels – Kepler Cheuvreux Brussels, BELGIUM 9 January 2025 ODDO BHF Forum 2025 in Lyon Lyon, FRANCE 5 June 2025 CEO conference – BNPP Exane Paris, FRANCE 12 June 2025 CEO conference – JP Morgan London, UK © ALSTOM SA 2024. All rights reserved. Informatio
Slide 29: Appendix 1
Appendix 1 ALSTOM
Slide 30: Equity in € million
Equity in € million 3 13 (41 (2 (7 1,723 10,503 8,778 9,117 March 2024 Capital raise Movements in other Net income Change in controlling Share based payments Dividends September 2024 and Hybrid Bond comprehensive income interests and others © ALSTOM SA 2024. All rights reserved. Information containe
Slide 31: H1 2024/25 backlog by region and product line
H1 2024/25 backlog by region and product line Backlog breakdown by region (in € million) Backlog breakdown by product line (in € million) Systems Asia Pacific €8,080m Americas €13,058m 9% €11,175m 14% Signaling 12% €8,649m 9% Africa, Middle East & Rolling stock Europe €41,398m Central Asia €12,9 0m
Slide 32: H1 2024/25 Sales by region and product line
H1 2024/25 Sales by region and product line Sales breakdown by region (in € million) Sales breakdown by product line (in € million) Systems €800m Asia Pacific €1,312m 9% 15% Signaling €1,247m 14% Americas €1,813m Europe €4,911m 21% 56% Rolling stock €4,531m Services €2,197m 52% 25% Africa, Middle Ea
Slide 33: Sales by currency
Sales by currency H1 2024/25 Currencies as a % of sales EUR 47.1% GBP 9.3% USD 8.9% CAD 4.7% INR 4.4% AUD 4.9% SEK 2.8% MXN 3.4% ZAR 3.1% BRL 1.9% KZT 1.4% SGD 1.6% Currencies below 1% of sales 6.4% © ALSTOM SA 2024. All rights reserved. Information contained in this document is indicative only. No
Slide 34: Bombardier Transportation PPA provisional amortisation plan
Bombardier Transportation PPA provisional amortisation plan As per P&L (in € million) Booking 1 FY 2020/21 (71) FY 2021/22 (428) FY 2022/23 (436) FY 2023/24 (357) FY 2024/25 (371) FY 2025/26 (264) FY 2026/27 (213) ● The Gross PPA amortisation plan will be subject to FX evolution in FY 2027/28 (203)
Slide 35: Bridge consideration – From Enterprise Value to Equity Value
Bridge consideration – From Enterprise Value to Equity Value (in € million) H1 2024/25 Total Gross debt, incl. lease obligations (1) 3,473 Pension liabilities net of prepaid and deferred tax asset related to pensions (2) 770 Non controlling interest (3) 110 Cash and cash equivalents (4) (1,789) Othe
Slide 36: Reconciliation between consolidated income statement and MD&A view, Sept 2024
Reconciliation between consolidated income statement and the MD&A management view as of 30 September 2024 (in € million) Total Adjustments Total Consolidated Consolidated Adjustments as of 30 September 2024: Financial Financial Statements (1) (2) Statements (GAAP) (MD&A view) 1. Impact of business c
Slide 37: Reconciliation between consolidated income statement and MD&A view, Sept 2023
Reconciliation between consolidated income statement and the MD&A management view as of 30 September 2023 (in € million) Total Adjustments Total Adjustments as of 30 September 2023: Consolidated Consolidated Financial Financial (1) (2) Statements Statements 1. Impact of business combinations: amorti
Slide 38: Appendix - Non-GAAP financial indicators definitions (1/3)
Appendix - Non-GAAP financial indicators definitions (1/3) 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
Slide 39: Appendix - Non-GAAP financial indicators definitions (2/3)
Appendix - Non-GAAP financial indicators definitions (2/3) ● EBIT before PPA Following the Bombardier Transportation acquisition and with effect from the fiscal year 2021/22 condensed consolidated financial statements, Alstom decided to introduce the “EBIT before PPA” indicator aimed at restating it
Slide 40: Appendix - Non-GAAP financial indicators definitions (3/3)
Appendix - Non-GAAP financial indicators definitions (3/3) ● Gross margin % on backlog Gross Margin % on backlog is a KPI that presents the expected performance level of firm contracts in backlog. It represents the difference between the sales not yet recognized and the cost of sales not yet incurre
Slide 41: Appendix 2
Appendix 2 ALSTOM
Slide 42: Non-linear aEBIT margin trajectory with restructuring impact in second half
Non-linear aEBIT margin trajectory with impact of restructuring plan kicking in during second half of FY 2024/25 aEBIT (in %) Main drivers to 8-10% aEBIT mid- to long-term ambition ~30 - 40 bps 10 -15 bps 30-35 bps • Rolling Stock margin uplift from progressive improvement of margin in backlog ~6.5%
Slide 43: Capital allocation priorities
Capital allocation priorities • Priority to deleverage and maintain Investment Grade rating 0 • Dividends policy to be re- evaluated once zero net financial debt is reached • M&A policy: • Pursue bolt-on acquisitions (Innovation, Digital, Services) • Dynamic portfolio management Net debt as of Delev
Slide 44: Guidance for FY 2024/25 and mid-term ambitions
Guidance for FY 2024/25 and mid-term ambitions Assumptions Outlook for FY 2024/25 Mid- to long-term ambitions • Book to bill above 1 • Supportive market • Book-to-bill above 1 demand • Sales organic growth: around 5% • Sales average growth ~5% / • FY 2024/25 • aEBIT margin around 6.5 % year downpaym
Slide 45: www.alstom.com
www.alstom.com www.alstom.com www.alstom.com www.alstom.com 45