Alstom Sa · EURONEXT:ALO
Alstom Sa — Investor Day (May 2023)
44 slides from Alstom Sa's investor day presentation, May 10, 2023
Slide 1: Alstom Investor Day
Alstom Investor Day May 10th, 2023
Slide 2: Agenda
Agenda Operations Danny Di Perna, Executive Vice President and Chief Operating Officer ――――――――――――――――――――――――――――――――――――――――――――――――――――――――――――――――――― Rolling Stock and Components Benjamin Fitoussi, President, Rolling Stock and Components ―――――――――――――――――――――――――――――――――――――――――――――――――
Slide 3: Operations
1 Operations Danny Di Perna Executive Vice President and Chief Operating Officer
Slide 4: Alstom is up and running and winning in the marketplace
Alstom is up and running and winning in the marketplace Building customer confidence through process excellence STABILIZE INTEGRATE TRANSFORM RESULTS ▪ € 40bn Orders 24 months ▪ € 87bn Backlog Critical Project 3.4 One Alstom Process Digital Tools 1.9 Risk Index Deployment at 83% Consolidation at 78%
Slide 5: Business process integration and digitalisation
Business process integration and digitalisation Investments “on-track” and delivering results Current 2025 Targets 97% converged processes 100% converged processes Alstom’s Digital Tools Suite 91% of converged processes >90% of digitalization in our deployed in sites fleet maintenance process Object
Slide 6: APSYS, our Alstom continuous improvement program
APSYS, our Alstom continuous improvement program Driving process excellence and performance through rigour and discipline across all activities APSYS FY22/23 Average Score Improvement Leg. BT Leg. AT Target Avg. > 3.0 73% 214% Top of the Class Scope = 180 Sites © ALSTOM SA 2023. All rights reserved.
Slide 7: Enterprise risk management process active
Enterprise risk management process active Mitigation actions deployed to face our challenging times • Covid lockdown • Long term • Site Delivery • Inflation • Energy supply • Geopolitical risks overcome semiconductor Centers focused challenges and cost risks mitigation with temporary needs secured w
Slide 8: Electronic component crisis management
Electronic component crisis management Dedicated global and multi-disciplinary team driving supply chain execution Tensions on the semiconductor market… … addressed by a complete set of reactive and proactive mitigation measures Semiconductor Market Demand Allocation process enabling 6 months rollin
Slide 9: Inflation impact on material and wages
Inflation impact on material and wages Largely mitigated by stringent cost measures and contract management Evolution of relevant cost items indexes Multi-disciplinary action plan Indexed, Quarterly evolution from 2019-2025, Base 100 as of 01/01/2019 550 Actual Forecast Price adjustment on new tende
Slide 10: Quality excellence drives customer confidence and satisfaction
Quality excellence drives customer confidence and satisfaction Design for Quality Gates Open Delivery Quality to Customer DFQ Backlog – Total Year End - 42% Q # of Demerits/Unit – Avg Year - 67% Leg. AT Leg. AT + Leg. BT Pre Acq April 2021 March 2022 March 2023 Pre Acq April 2021 March 2022 March 20
Slide 11: Alstom's global supply chain – a competitive advantage
Alstom’s global supply chain – a competitive advantage Leveraging our proximity to customers for localization and best cost capabilities Global Spend Supply Chain ~14€ Bn 22K Suppliers 12 months rolling Direct and Indirect Scope • 6% of Supply Base (1200 suppliers) represents 80% of Global Spend • P
Slide 12: Investing in cutting-edge technology
Investing in cutting-edge technology R&D gross effort above Our completed convergence unleashes innovation for success step-up €700m1 “Lead societies ALSTOM INNOVATION LEADERSHIP to a low carbon GREEN MOBILITY future” GREEN TRACTION HYDROGEN “Make mobility simple to operate SMART and ride” MOBILITY
Slide 13: Customer-centric value propositions
Customer-centric value propositions Focused on bringing technology, products and services quickly for our customers Customer Customer Sustainability Passenger Connected profitability needs solutions experience train Increased revenue and Proven offerings and Efficient, green and Increased comfort le
Slide 14: Alstom… up & running and on-track!
Alstom… up & running and on-track! © ALSTOM SA, 2023. 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 technica
Slide 15: Rolling Stock and Components
2 Rolling Stock and Components Benjamin Fitoussi President, Rolling Stock and Components
Slide 16: Alstom is the market leader in Rolling Stock & Components
Alstom is the market leader in Rolling Stock & Components RSC IS A LARGE AND STEADY MARKET ALSTOM: A CLEAR RSC MARKET LEADER UNIFE accessible market 2022-2024 RSC Market shares 2020/21-2022/23, in % including turnkey share (WRMS 2022) – Average in € Bn / year 6% 35% 8% 31% Regional/Commuter HS/VHS 1
Slide 17: ALSTOM: a unique global-local presence and capability
ALSTOM: a unique global-local presence and capability Enables customer proximity & localization while leveraging global best cost sources AMERICAS ALSTOM #1 IN ALL REGIONS Rolling Stock & Components Key Sites SIEGEN KATOWICE Alstom Comp 1 Comp 2 Comp 3 EUROPE DERBY BARCELONA SAHAGUN HORNELL AMECA LA
Slide 18: Project stabilisation | Task Forces shifting from legacy to early phase projects
Project stabilisation | Task Forces shifting from legacy to early phase projects TASK FORCES EXPERT GROUPS 4.0 4.0 4.0 4.0 3.4 3.0 -26% 3.0 3.0 3.0 Solve Technical issues 2.5 2.0 2.0 -20% 2.0 ~2 2.0 -18% 1.0 1.0 1.0 1.0 ~1.6 Enforce Design for Quality & PM standards April March March March 2021 2022
Slide 19: Convergence done at Train, Sub-system and Part levels
Convergence done at Train, Sub-system and Part levels Focusing today on implementation in tenders From Day 1 FY 2021/22 FY 2022/23 FY 2023/24 INVENTORY CONVERGE RATIONALISE FURTHER STANDARDIZE 8 platforms, 9 products phased out Light Rail Regional Urban ✓ Integrate commercial teams in Citadis™ Corad
Slide 20: Operational performance | Quality on target, focusing on delivery
Operational performance | Quality on target, focusing on delivery -25% on Mar 23 -33% on Mar 23 ~stable - 52% on Mar 23 (avg 6 months) Pre-acq Apr Mar Mar Mar Mar Pre-acq Apr Mar Mar Mar Mar Pre-acq Apr Mar Mar Mar Mar Pre-acq Apr Mar Mar Mar Mar AT ’21 ‘22 ‘23 ’24 ‘25 AT ’21 ‘22 ‘23 ’24 ‘26 AT x2 ’
Slide 21: Our achievements 2022-23 | regaining performance and preparing further ramp-up
Our achievements 2022-23 | regaining performance and preparing further ramp-up 1 2 3 4 5 Won 57 Projects Progressed product Deliveries back to Invested in additional Mitigated securing development & nominal customer capacity and operational & financial €10.3 bn orders rationalization satisfaction ca
Slide 22: 23/24 and beyond | accelerate the transformation journey
23/24 and beyond | accelerate the transformation journey to deliver the committed synergies 1 2 3 4 5 Win profitable Bring our Best in class Get the best of our Leverage our people tenders with operations to processes with footprint and scale skills and capabilities innovative & required level of in
Slide 23: Significant investment in R&D to bring best solutions to our customers
Significant investment in R&D to bring best solutions to our customers ENERGY EFFICIENCY PASSENGER EXPERIENCE GREEN TRACTION Avelia Horizon tests Smart lighting H2 distance world record OBES for Light Rail CYBERSECURITY CORE PRODUCT RANGE COVERAGE AGATE 4 upgrade Atlas 400 in Traxx Coradia Stream ex
Slide 24: IPCEI H2 financing strengthens Alstom leadership on Green Traction technologies
IPCEI H2 financing strengthens Alstom leadership on Green Traction technologies 350 M€ subsidies covering 4 projects H2 Traction Bricks H2 Power Car • Boost H2 solutions development • About 5 years projects H2 Tender H2 Shunting • Comprehensive program financing including prototypes and pre-series ©
Slide 25: RSC turnaround with production ramp-up supporting growth above market
RSC turnaround with production ramp-up supporting growth above market RSC PROFITABILITY IMPROVEMENT LEVERS HEADWINDS BUSINESS PROFILE MONITORING FY 2022/23: • Backlog 42.8bn€ DEVELOPMENT • Orders 10.3bn€ BUSINESS Product convergence LEVERS • Sales 8.8bn€ Selectivity ELECTRONIC COMPONENT Increased %
Slide 26: Rolling Stock and Components Product Line: key take-aways
Rolling Stock and Components Product Line: key take-aways Uniquely positioned to capture market Accelerate the effort of transformation growth thanks to product, market reach and 1 6 Best in class processes with increased scale digitalization Significant improvement in project stabilization Win prof
Slide 27: Services
3 Services Matthew Byrne President, Services
Slide 28: Most extensive rail services portfolio, expertise and footprint
Most extensive rail services portfolio, expertise and footprint ~37* ALL ENCOMPASSING PORTFOLIO CLEAR LEADERSHIP OVER THE RAIL SERVICES MARKET bn€ ROLLING STOCK MAINTENANCE 258 40+ 1,400+ 16,000+ SERVICES COUNTRIES CONTRACTS EMPLOYEES PARTS AND COMPONENT OVERHAULS SITES ASSET LIFE MANAGEMENT Sales (
Slide 29: Strategy on track with market drivers and customer needs
Strategy on track with market drivers and customer needs MARKET DRIVERS CUSTOMER NEEDS STRATEGIC ORIENTATION Increasing Operator focus 1. Develop maintenance business and on efficiency and leverage installed base performance Partner with Cybersecurity Total Cost of local and Ownership footprint 2. I
Slide 30: Service franchise has exceeded its mid-single digit growth guidance
Service franchise has exceeded its mid-single digit growth guidance FAST GROWING ORDER INTAKE SINCE MERGER ACCELERATING BOOK TO BILL OUTPACING MARKET GROWTH ~2% CAGR UNIFE* Market Growth +50% > 10 bn€ 1,7 +12% Order Intake cumulated Sales Book-to Bill Growth Year Order Intake over Growth Year FY22-2
Slide 31: Business model and evolution
Business model and evolution (bundle contracts, installed based advantage, small contracts) SUSTAINABLE BUSINESS WITH WELL BALANCED ORDER INTAKE Order intake distribution Expected CAGR FY 22-23 FY 21-22 to-24-25 ▪ Sustained trend to bundle rolling stock 45% 40% 12% and services contracts ▪ Healthy l
Slide 32: Mid-term ambition: 35% of installed base under services contract
Mid-term ambition: 35% of installed base under services contract 150,000 CARS INSTALLED BASE WITH VAST HARVESTING POTENTIAL Alstom Installed Base covered by DEVELOPMENT Services contract LEVERS Green and Smart 35% TSSSA to open new customers relationship modernisation (Singapore – Austria – US – Fra
Slide 33: Demonstrated performance boosting commercial success
Demonstrated performance boosting commercial success OPERATIONAL EXCELLENCE OPTIMISED CUSTOMER COST OF OWNERSHIP CUSTOMER INTIMACY MTR Elizabeth Line 32 years Full Maintenance 70 AventraTM Baden-Württemberg BEST IN CLASS RELIABILITY 30 years Full Maintenance 130 Coradia StreamTM HC Maryland Transit
Slide 34: Service franchise with strong predictability and high-single digit growth
Service franchise with strong predictability and high-single digit growth SERVICES PROFITABILITY IMPROVEMENT LEVERS HEADWINDS BUSINESS PROFILE MONITORING FY2022/23: DEVELOPMENT Small orders RESOURCES Bundle TSSSA AVAILABILITY • Backlog 30.7bn€ BUSINESS offers management opportunities LEVERS • Orders
Slide 35: Signalling and Systems
4 Signalling and Systems Jean-François BEAUDOIN President, Digital & Integrated Systems
Slide 36: Solid signalling market growth with accelerating modal shift as key market driver
Solid signalling market growth with accelerating modal shift as key market driver ERTMS3 ROLL-OUT ACCELERATING IN EUROPE ~15 STRONG SIGNALLING +~4% bn€1 MARKET GROWTH CAGR2 30 Bn€ German roll-out in signalling the coming years Already materializing Market boosted by infrastructure plans & 13 Bn€ Ita
Slide 37: Signalling, a market segment under consolidation around global players
Signalling, a market segment under consolidation around 3 global players KEY GLOBAL PLAYERS … FAR AHEAD OF REST OF … OUTPACING MARKET GROWTH CONSOLIDATING… COMPETITION2 # of global signalling players1 Signalling players revenues overview Alstom growth vs. Market 8 players ~high single digit ~x 5-10
Slide 38: Alstom positioned as the most global signalling partner
Alstom positioned as the most global signalling partner MOST COMPLETE SIGNALLING PLAYER 45+ POSITIONED ON ALL KEY SIGNALLING MARKETS Countries with local presence Top 10 signalling worldwide markets LARGEST PORTFOLIO EXTENSIVE FOOTPRINT Alstom & Bombardier merge unlocking access to German market & i
Slide 39: Germany mainline signalling, a “Home Market” in the making
Germany mainline signalling, a “Home Market” in the making ONBOARD SUSTAIN LEADERSHIP SUCCESSFUL COMMERCIAL DYNAMIC SUCCESSFUL & AMBITIOUS PLAN ATLAS ONBOARD Stuttgart projects GERMAN THE MOST DESIRED considered as trend setter for ROLL-OUT SOLUTION the German roll-out COMMERCIAL DYNAMIC ~700 m€ ord
Slide 40: Deliver projects locally leveraging a worldwide footprint
Deliver projects locally leveraging a worldwide footprint LEVERAGE SCALE DELIVER EFFICIENTLY THROUGH WHILE SECURING CUSTOMER INTIMACY AN UNPARALLELED ENGINEERING FOOTPRINT ACCESS TO LARGE Key BCC sites TALENT POOLS (e.g. IT resources in India…) India Thailand Poland Brazil SIGNALLING Eng. FTE 2,700+
Slide 41: A sustained pace of innovation introduced in customer projects
A sustained pace of innovation introduced in customer projects CYBERSECURITY BECOMING SYSTEMATIC ON OFFERS ACCELERATE DIGITALIZATION from 20 to 140 live projects over last 5 years Implement innovations on a LATEST major customer contract DESIGNED FOR PRODUCTS CYBERSECURITY GENERATION PORTFOLIO Delhi
Slide 42: Signalling franchise set for high-single digit growth
Signalling franchise set for high-single digit growth SIGNALLING HEADWINDS PROFITABILITY IMPROVEMENT LEVERS BUSINESS PROFILE MONITORING DEVELOPMENT Small orders High Single Digit growth pattern ELECTRONIC Selectivity FY2022/23: BUSINESS boost o/w services fast development COMPONENT LEVERS • Backlog
Slide 43: Systems commercial success driving double digit growth
Systems commercial success driving double digit growth SYSTEMS INCREASING VISIBLE BUSINESS PROFILE STRONG ALSTOM POSITIONING PIPELINE OF OPPORTUNITIES FY2022/23: Volume of visible & addressable opportunities ALSTOM LEADING PLAYER • Backlog 6.3bn€ AMONG THE 3 GLOBAL PLAYERS • Orders 1.0bn€ 8-10 bn€ /
Slide 44: www.alstom.com
www.alstom.com www.alstom.com