Slide 1: Full Year Results Fiscal Year 2015/16
Full Year Results Fiscal Year 2015/16 11 May 2016
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 risks and uncertainty factors (such as those described in the documents filed b
Slide 3: Agenda
Agenda 1 Introduction 2 2020 strategy 3 Financial results 4 Objectives ALSTOM – 11/05/2016 – P 3 © ALSTOM SA, 2016. 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 app
Slide 4: Key take-aways
Key take-aways Record commercial year and very strong operational performance • Record high order intake and backlog of resp. €10.6bn and €30.4bn • Sales up 12% (organic 7%) at €6.9bn (book-to-bill = 1.5) • Adjusted EBIT up 23%, at €366m, leading to margin at 5.3% Strengthened balance sheet • Ne
Slide 5: 2015/16 key figures
2015/16 key figures % change % change In € million 2014/15 2015/16 reported organic Backlog 28,394 30,363 +7% +14% Orders 10,046 10,636 +6% +7% Sales 6,163 6,881 +12% +7% Adjusted EBIT 298 366 +23% Adjusted EBIT margin 4.8% 5.3% Net income – Group share (719) 3,001 Free cash flow - Group (429) (2,61
Slide 6: Agenda
Agenda 1 Introduction 2 2020 strategy 3 Financial results 4 Objectives ALSTOM – 11/05/2016 – P 6 © ALSTOM SA, 2016. 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 app
Slide 7: An ambitious strategy for 2020
An ambitious strategy for 2020 OUR VALUES TEAM, TRUST & ACTION ETHICS & COMPLIANCE 1 CUSTOMER-FOCUSED ORGANISATION ORGANIC 2 COMPLETE RANGE OF SOLUTIONS GROWTH OUR 3 VALUE CREATION THROUGH INNOVATION BOOSTED OUR STRATEGY BY VISION 4 OPERATIONAL AND ENVIRONMENTAL SELECTIVE PREFERRED EXCELLENCE ACQUIS
Slide 8: Customer focused organisation: record level of orders
1 Customer focused organisation Record level of orders Orders (in € million) Solid commercial momentum 10,046 10,636 1.1 Strong order intake of €10.6bn +6% 4.1 5.1 1.1 Book to bill of 1.5 1.3 1.0 4.2 7% organic increase vs 2014/15 2.8 2014/15 2015/16 Emerging markets representing Europe Amer
Slide 9: Customer focused organisation: main 2015/16 orders
1 Customer focused organisation Main 2015/16 orders UK: Network Rail signalling Belgium: Regional trains France: Regional Germany: Regional trains trains, RER A trains, Canada: Train control Nice tramway Switzerland: Kazakhstan: Locos maintenance system Locos Azerbaijan: Freight locos Morocco: Casab
Slide 10: eLoco project in India
1 Customer focused organisation 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 •
Slide 11: Leader on all continents
1 Customer focused organisation Leader on all continents Our market share1 (%) and ranking in 2015/16 #2 #3 #2 #2 13% 10% 11% 9% Americas2 Europe3 MEA APAC Note: (1) Market shares and rankings based on 2015/16 orders; (2) Excluding freight market ; (3) Russia not included as market handled directly
Slide 12: Backlog at a new record high
1 Customer focused organisation Backlog at a new record high Backlog (in € billion) Record high backlog of €30.4bn Strong visibility on future sales Progressive conversion 28.4 30.4 Incl. one third of services 2014/15 2015/16 Breakdown as end of March 2016 Asia Pacific 17% Systems 13% Americas
Slide 13: Strategic partnerships & new sites around the world
1 Customer focused organisation Strategic partnerships & new sites around the world Russia Algeria India South Africa Turkey India TMH (trains) CITAL (trams) Chennai (trains)* Gibela Istanbul hub * Madhepura (locos) (suburban trains) Coimbatore* France France Brazil Kazakhstan Metrolab (R&D) NTL (tr
Slide 14: Towards more systems, signalling and services
2 Complete range of solutions Towards more systems, signalling and services Tram, metro, suburban/regional, high speed, very high speed, locomotive Components: traction, bogie, motor 46% Maintenance Modernisation Spare parts, repairs & overhaul 22% Support services Signalling solutions
Slide 15: Marked sales increase
2 Complete range of solutions Marked sales increase Sales (in € million) 6,881 Sales growth of 12% (organic 7%) 6,163 1.5 Slight decrease in standalone trains 1.3 • Regional deliveries in Europe 0.9 1.2 0.7 +12% 1.0 • On-going execution of PRASA project • Metro in Singapore, Argentina, India 3.3 3
Slide 16: On-going execution of PRASA project
2 Complete range of solutions On-going execution of PRASA project Scope • 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 t
Slide 17: Value creation through innovation: staying a step ahead
3 Value creation through innovation Staying a step ahead 1 2 3 Boost technical Invest in Optimise innovation to increase competitiveness- customers’ total cost differentiation oriented technology of ownership Citadis X05 Attractis tramway system Coradia maintenance An R&D strategy focused on differe
Slide 18: 2015/16 R&D
3 Value creation through innovation 2015/16 R&D R&D1 (in € million) Main R&D programmes Citadis X05 tramway As % of sales Signalling programmes HealthHub predictive maintenance tool 156 140 New launched initiatives Attractis tramway system Static Recharge System 2.3% 2.3% 2014/15 2015/16 N
Slide 19: Nice tramway project
3 Value creation through innovation Nice tramway project €91m project Awarded in October 2015 Scope 19 Citadis X05 tramway SRS, Static Recharge System Citadis Ecopack Latest generation of tramway for the city of Nice ALSTOM – 11/05/2016 – P 19 © ALSTOM SA, 2016. All rights reserved. Informatio
Slide 20: Evolution of Avelia range
3 Value creation through innovation Evolution of Avelia range Very high-speed train of the future programme 750 seats -35% energy consumption Optimised maintenance cost JV SpeedInnov with ADEME Very high-speed train of the future ALSTOM – 11/05/2016 – P 20 © ALSTOM SA, 2016. All rights reserve
Slide 21: Operational excellence at the heart of Alstom strategy
4 Operational excellence At the heart of Alstom strategy Competitive offering • Sourcing • Global footprint Sri City site (India) Excellence in delivery • Global business transformation underway • Strong project management skills Testing interior, Savigliano (Italy) Cash focus programme • Oper
Slide 22: Competitive offering in 2015/16
4 Operational excellence Competitive offering in 2015/16 Sourcing Global footprint Supplier day held in India beg. India ramp-up 2016 • India trains, components and • Gathering 90 strategic suppliers, signalling engineering centre ramp- representing 50% of purchases up: 1,800 people in 2015/16 •
Slide 23: Excellence in delivery in 2015/16
4 Operational excellence Excellence in delivery in 2015/16 New tools deployment started • Alstom integrated information system massive roll-out launched (10 countries deployed in 15/16) • APSYS, lean manufacturing system extending to Engineering and Project Manufacturing execution system Managemen
Slide 24: Very strong operational performance
4 Operational excellence Very strong operational performance Adjusted EBIT (in € million) aEBIT increase of 23% Volume impact As % of sales Progressive portfolio mix impact On-going actions on operational +23% excellence 366 Partly offset by price pressure 298 and competitive environment 4.8
Slide 25: Cash focus programme launched
4 Operational excellence Cash focus programme launched Main levers Key practices • Worldwide training (e.g. sales Terms and conditions community) • Level of down payment now • Upfront review of cash information, stabilised from the anticipation phase • Regular meetings during project Design to c
Slide 26: Environmental excellence
4 Environmental excellence 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%. Status: 2.3% in 2015 Improve energy consumption for solution
Slide 27: Diverse and entrepreneurial people
5 Diverse and entrepreneurial people 31,000 employees worldwide Diversity in terms of gender, generation, nationality, social and cultural background… Training plans, development programs… 2020 objectives • 25% women in a management or professional role. Status: 20% in 2015/16 • For middle m
Slide 28: Organic growth boosted by selective acquisitions
Organic growth boosted by selective acquisitions Small to mid-size acquisitions Support international expansion and strengthen leading positions 2015/16 acquisitions • GE Signalling • SSL, signalling in UK • Motala Train AB, Services in Sweden ALSTOM – 11/05/2016 – P 28 © ALSTOM SA, 2016. All
Slide 29: Agenda
Agenda 1 Introduction 2 2020 strategy 3 Financial results 4 Objectives ALSTOM – 11/05/2016 – P 29 © ALSTOM SA, 2016. 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 ap
Slide 30: Income statement
Income statement In € million 2014/15 2015/16 Sales 6,163 6,881 Adjusted EBIT 298 366 Adjusted EBIT margin 4.8% 5.3% Restructuring charges (106) (138) Other charges (813) (454) EBIT (621) (226) Financial result (137) (275) Tax result 8 (597) Share in net income of equity investees (64) 30 Minority i
Slide 31: Exceptional context
Exceptional context Deal impact Exceptional impairments mainly in France Capital gain of €4.2bn after tax €(0.4)bn exceptional impairments of both tangible and intangible assets Financial result impacted by legacy €(0.1)bn restructuring and gross debt costs and bond buy-back rationalisation link
Slide 32: Free cash flow
Free cash flow In € million 2014/15 2015/16 FCF from continued Adjusted EBIT 298 366 operations impacted by settlement of DoJ Depreciation & amortisation 144 138 fine of c. €(720)m in Restructuring cash-out (85) (61) Nov. 2015 Capex (99) (154) Cash focus R&D capitalisation (67) (73) progamme lau
Slide 33: Capex developments
Capex developments Development in emerging Capex1 (in € million) markets • Sri City extension in India • Start of Gibela factory in South Africa Rationalisation of real estate 154 policy 99 • Acquisition of Barcelona Plant 2014/15 2015/16 Note: (1) Excluding capitalised development costs New sit
Slide 34: Liquidity and gross debt
Liquidity and gross debt In € billion Liquidity position 2.9 Liquidity 2.4 €2bn cash and cash equivalents as of 31 March 2016 New €400m revolving credit facility replacing previous ones ; fully undrawn Mar-15* Mar-16 Undrawn credit line Gross cash Flexibility with Energy JVs put options Gross
Slide 35: Net debt & equity
Net debt & equity In € billion Net cash/(debt) In € billion Equity 8.8 (3.2) 3.0 (3.2) (0.1) (0.2) (3.1) (0.2) 3.3 4.2 (0.5) (2.6) Mar-15* FCF Acq. & Public share Forex, scope Mar-16 Mar-15* Net income Public share Pensions Forex & Mar-16 Disposals buy back & Other buy back Other offer offer * Pre A
Slide 36: Agenda
Agenda 1 Introduction 2 2020 strategy 3 Financial results 4 Objectives ALSTOM – 11/05/2016 – P 36 © ALSTOM SA, 2016. 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 ap
Slide 37: 2020 Objectives
Objectives 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 – 11/05/2016 – P 37 © ALSTOM SA, 2016. All rights reserved. Information contained in this document is indicative only
Slide 38: Contacts and agenda
Contacts and agenda Contacts Agenda Selma BEKHECHI 5 July 2016 Investor Relations Director +33 (0)1 57 06 95 39 Shareholders’ Meeting Julien MINOT Investor Relations Manager 13 July 2016 +33 (0)1 57 06 64 84 Q1 2016/17 Orders and Sales investor.relations@alstom.com ALSTOM – 11/05/2016 – P 38 © ALSTO
Slide 39: www.alstom.com
www.alstom.com ALSTOM penne, Unis