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Alstom SA — H1 2010/11 Earnings Presentation
39 slides from Alstom SA's earnings presentation, Nov 4, 2010
Slide 1: Half-Year Results Fiscal Year 2010/11
Half-Year Results Fiscal Year 2010/11 4 November 2010
Slide 2: Agenda
Agenda 1. Key highlights of the first half 2010/11 Page 3 2. Operational review by Sector Page 12 3. Financial results Page 30 4. Conclusion Page 36 P2
Slide 3: Key figures (1/2)
Key figures (1/2) Operational performance in line with guidance… Sept 2009 Sept 2010 Variation In € million Excl. Grid Incl. Grid* Excl. Grid Incl. Grid Sales 9,683 8,905 10,432 -8% +8% Income from operations 828 675 763 -18% -8% Operating margin 8.6% 7.6% 7.3% Net income 562 NA 401** NA -29% * Cons
Slide 4: Key figures (2/2)
Key figures (2/2) …whilst orders and cash impacted by the weak thermal market Sept 2009 Sept 2010 Variation In € million Excl. Grid Incl. Grid* Excl. Grid Incl. Grid Orders received 7,134 5,638 7,038 -21% -1% Backlog 43,787 40,024 45,287 -9% +3% Free cash flow 77 NA (963) NA NA * Consolidated for 4
Slide 5: Orders
Orders Lack of large orders Commercial successes in emerging markets Evolution of orders Orders received by country of destination in H1 2010/11 In € billion 7.8 10% 7.1 15% 35% 11 5.6 10 8 21% 7% 12% 1.4 Grid H1 2009/10 H2 2009/10 H1 2010/11 H1 29% Evolution of the share of Number of contracts abov
Slide 6: Backlog
Backlog Limited decrease of the order book Evolution of backlog Book-to-bill ratio In € billion 42.6 1 -6% 40.0* 0.78 0.74 In months 26 25 of sales 0.67 5.3 Grid 0.63* 31 March 10 30 Sept 10 H1 2009/10 H2 2009/10 H1 2010/11 * Forex impact=€0.3 billion (excl. Grid) * Excluding Grid P6
Slide 7: Sales and income from operations (IFO)
Sales and income from operations (IFO) Operational performance in line with guidance Evolution of sales Evolution of IFO and operating margin In € billion In € million 9.7 828 -8% 763 8.9 +88 (203)* Grid +50 8.6% 7.3% 1.5 Grid H1 2009/10 H1 2010/11 H1 2009/10 Volume Margin Scope H1 2010/11 effects e
Slide 8: Demand
Demand Contrasted evolution of our markets Power • Gas and coal markets in Europe/NAM slow to recover Need to adapt! • Rebound in emerging countries Focus to benefit • Growth in non-CO2 technologies from positive trend • Good level of service and retrofit activities Transport • Resilient market in E
Slide 9: Adaptation plan in Power
Adaptation plan in Power Adjust to demand and maintain capacity to rebound A targeted plan • Reduce the size of Thermal Systems & Products Business in Europe and NAM by 4,000 positions (20%) • Adapt execution sites to load (factories & engineering centers) • Diminish overheads in Power Sector and Th
Slide 10: Human Resources
Human Resources On-going management of headcount Evolution of workforce 94,500 Split by Sector Corporate 2% Transport Grid Power 26% 76,500 51% Grid +2,200 -3,300 -700 +19,800 21% Split by geography -1,100 permanent • natural attrition • adjustment focused in Asia 21% Europe and USA Europe MEA 3% S
Slide 11: Agenda
Agenda 1. Key highlights of the first half 2010/11 Page 3 2. Operational review by Sector Page 12 3. Financial results Page 30 4. Conclusion Page 36 P 11
Slide 12: Power: Tendering – new equipment and retrofit
Power Tendering – new equipment and retrofit Commercial focus on higher growth areas Firm bids by Region Firm bids by Technology A few examples of recent successes… Base 120 100 +35% Steam +90% turbines with BFL Gas in India Singapore Hydro Gas in +15% project in India Brazil -10% Sept 2009 Sept 201
Slide 13: Power: Service
Power Service Service market moving towards pre-crisis levels Evolution of the service market Forecast 06 07 08 09 10 11 12 P 13
Slide 14: Power: Orders received
Power Orders received Continued lack of orders in Thermal Systems & Products, Renewables and Services more resilient Orders by Businesses Orders received by country of destination in H1 2010/11 In € million Renewables Wind contract Thermal Services in the UK Thermal Systems & Products O&M in Spain 4
Slide 15: Power: Sales
Power Sales Sales impacted by limited orders Sales by Businesses Sales by country of destination in H1 2010/11 Renewables In € million Thermal Services Thermal Systems & Products 42% 15% 13% 6,895 -13% 896 5,988 23% 7% 791 2,223 2,217 3,776 2,980 Steam power plants GT 26 projects Hydro projects H1 2
Slide 16: Power: Key figures
Power Key figures In € million Sept 2009 Sept 2010 Variation Orders 4,731 3,631 -23% Backlog 24,631 21,456 -13% Sales 6,895 5,988 -13% Income from operations 677 509 -25% Operating margin 9.8% 8.5% P 16
Slide 17: Power: restructuring plan in Thermal Systems & Products
Power Main events: restructuring plan in Thermal Systems & Products Headcount evolution related to market shift Restructuring plan by geography In € million Financial impact -20% -20% Restructuring costs Restructuring cash* 13,000 2,600 2,100 280 190 10,500 80 Other (write-offs…) NAM 6,400 6,400 60
Slide 18: Power: technology and capex
Power Main events: technology and capex Consolidating portfolio in Major investments under execution renewables and services Capex programmes In € million 134 Solar: investment in -36% BrightSource Energy Inc 86 Wind: new manufacturing units in Brazil and USA under construction Service: acquisition
Slide 19: Transport: Commercial
Transport Commercial Sound market Railway market Large opportunities Locomotives and signalling in India ASIA In € billion Regional trains in Australia Various projects in China + 2,5% CAGR • VHS, Urban and Locomotives in Kazakhstan CIS Signalling. Other targeted projects (locomotives, mass transit)
Slide 20: Transport: Orders received
Transport Orders received Sustained level of orders, no big ticket Evolution of orders Orders received by country of destination in H1 2010/11 In € million Regional trains in Sweden 2,403* -16% Tramways 2,007 in France 46% 23% Locomotives 4% in Russia 19% 4% 4% Metros in India H1 2009/10 H1 2010/11
Slide 21: Transport: Sales
Transport Sales Growing sales Evolution of sales Sales by country of destination in H1 2010/11 In € million 64% 2,917 6% 2,788 +5% 6% 17% 7% H1 2009/10 H1 2010/11 Locomotives Regional trains in VHS in France in China Australia P 21
Slide 22: Transport: Key figures
Transport Key figures In € million Sept 2009 Sept 2010 Variation Orders 2,403 2,007 -16% Backlog 19,156 18,568 -3% Sales 2,788 2,917 +5% Income from operations 195 213 +9% Operating margin 7.0% 7.3% P 22
Slide 23: Transport: strategic partnerships in emerging markets
Transport Main events: strategic partnerships in emerging markets Access to the large CIS market • MoU signed with RZD and TMH for the development of freight locomotives in Russia • Creation of a joint-venture between Alstom-TMH and KTZ to manufacture locomotives in Kazakhstan Consolidate presence i
Slide 24: Transport: capex and technology
Transport Main events: capex et technology New products unveiled Selective capex in Western Europe In € million Capex programmes New trains platforms 50 -28% 36 Speedelia VHS platform Service sites H1 2009/10 H1 2010/11 Regiolis prototype P 24
Slide 25: Grid: Commercial
Grid Commercial Rebounding market with solid drivers Alstom Grid Market (€ billion) Key Dynamics • Growing market 45 • Strong HVDC and smart grid Worldwide market opportunities 40 • Turnkey projects Market by geographical area (2009) 35 Americas 20% Asia-Pacific 0 40% Middle East 15% 2008 2009 2010
Slide 26: Grid: Orders received and Sales
Grid Orders received and Sales Sound volume of activity Orders received Sales In € million In € million By country of destination in H1 2010/11 1,527 By country of destination in H1 2010/11 1,400 Offshore substation in Germany 17% 11% 8% 10% 28% 27% 30% 9% 28% 9% 23% H1 2010/11 H1 2010/11 GIS in UAE
Slide 27: Grid: Key figures
Grid Key figures In € million Sept 2009 Sept 2010 Orders NA 1,400 Backlog NA 5,263 Sales NA 1,527 Income from operations NA 88 Operating margin NA 5.8% P 27
Slide 28: Grid: capex and technology
Grid Main events: capex and technology Grow in emerging markets Preserve and develop competitive edge Capex programmes Main R&D programmes In € million 47 Ultra High Voltage Digital substations H1 2010/11 Network Management Power electronics Cooperation agreement signed with FSK in Russia YA-8 P 28
Slide 29: Agenda
Agenda 1. Key highlights of the first half 2010/11 Page 3 2. Operational review by Sector Page 12 3. Financial results Page 30 4. Conclusion Page 36 P 29
Slide 30: Income statement
Income statement In € million Sept 2009 Sept 2010 Variation Sales 9,683 10,432 +8% Income from operations 828 763 -8% Grid PPA+acquisition costs - (98) Restructuring costs (27) (47) Capital gains & other (19) (19) EBIT 782 599 -23% Financial result (12) (52) Tax result (199) (131) Minority interest
Slide 31: Free cash flow
Free cash flow In € million Sept 2009 Sept 2010 Income from operations 828 763 Restructuring cash out (38) (45) Change in working capital Depreciation 131 169 Capital expenditure (210) (196) • Book-to-bill significantly R&D cap. & amort. of acq. techno. (23) (49) below 1 Pensions (34) (65) Change in
Slide 32: Net cash (debt) evolution
Net cash (debt) evolution In € million 2,222 (963) X (1,473) (364) (2,351) (17) Net cash Free cash Grid acquisition Dividends Other Net debt 31 March 2010 flow 30 Sept 2010 P 32
Slide 33: Equity evolution
Equity evolution In € million 3,989 401 (364) (226) 67 10 4,101 Equity Net income Dividends Pensions Minorities Other Equity 31 March 2010 variation from Grid 30 Sept 2010 P 33
Slide 34: Funding
Funding Outstanding financial bonds Liquidity position In € million 750 750 750 In € million Nominal amount 500* 500* 4,351 1,000* 1,685 Maturity date 2014 2015 2017 2018 2020 Coupon 4% 2.875% 4.125% 3.625% 4.5% 1,000 1,000 31 Mar 10 30 Sept 10 Gross cash * Post-closing Undrawn credit line P 34
Slide 35: Agenda
Agenda 1. Key highlights of the first half 2010/11 Page 3 2. Operational review by Sector Page 12 3. Financial results Page 30 4. Conclusion Page 36 P 35
Slide 36: Conclusion
Conclusion Operational priorities • Leverage solid fundamentals to achieve commercial rebound • Adapt to Power thermal demand in Europe and USA • Strengthen positioning in emerging countries • Maintain high level of R&D to stay ahead in innovation Guidance confirmed • Operating margin for FY 2010/11
Slide 37: Contacts & agenda
Contacts & agenda • Emmanuelle Châtelain - VP Investor Relations +33 (0)1 41 49 37 38 • Juliette Langlais - Deputy VP Investor Relations +33 (0)1 41 49 21 36 • Emmanuelle Douëzy - Individual Shareholders +33 (0)1 41 49 37 59 • Dymphna Hawksley - Logistics +33 (0)1 41 49 37 22 • 20/01/2011 Orders and
Slide 38: 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 39: www.alstom.com
www.alstom.co Lue ane shaping the feture | ALSTOM