Alstom Sa · EURONEXT:ALO
Alstom Sa — H1 2020/21 Earnings Presentation
32 slides from Alstom Sa's earnings presentation, Nov 10, 2020
Slide 1: Half year results Fiscal Year 2020/21
Half year results Fiscal Year 2020/21 10 November 2020
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: Disclaimer
Disclaimer ● FY 2020/21 forecasts are based on Alstom’s scope of consolidation at the end of September 2020, therefore exclude any scope impacts from the expected Bombardier Transportation acquisition. They are mainly based on the following assumptions: Alstom internal assumptions - The sales improv
Slide 4: Agenda
Agenda • H1 2020/21 highlights • Market update • Business update • Bombardier Transportation transaction status • H1 2020/21 financial results • Conclusion and outlook © ALSTOM SA, 2019. All rights reserved. Information contained in this document is indicative only. No representation or warranty is
Slide 5: H1 2020/21 highlights
1 H1 2020/21 highlights © ALSTOM SA, 2019. 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 comme
Slide 6: H1 2020/21 key takeaways
H1 2020/21 key takeaways ● Order intake level linked to anticipated shift in tender activity towards H2, with €2.7bn robust backlog at €40bn Order intake ● Strong pipeline and mid-term rail market perspectives supported by recent announcements in favour of rail €3.5bn Sales ● Sales down -13% organic
Slide 7: H1 2020/21 sustainability and corporate social responsibility highlights
H1 2020/21 sustainability and corporate social responsibility highlights Environmental footprint: FEZ site in Sustainable mobility solutions: Morocco relying on 120 solar panels, with strong focus on employees well-being several agreements reached on and eco-friendly material usage Hydrogen in Europ
Slide 8: Market update
2 Market update © ALSTOM SA, 2019. 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 ci
Slide 9: Resilient growth of rail markets supported by recent announcements in favour of rail
Resilient growth of rail markets supported by recent announcements in favour of rail €672bn Resilience and Recovery instrument earmarked to Strong support shown by governments to climate neutrality investments local rail operators¹ Germany Climate Plan Confirmed long term rail investment plans • €86
Slide 10: Business update
3 Business update © ALSTOM SA, 2019. 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
Slide 11: Order intake at €2.7bn impacted by a shift in tender activity from H1 to H2
Order intake at €2.7bn impacted, as anticipated, by a shift in tender activity from H1 to H2 Orders H1 (in €bn) Tram in Nantes (France) Systems in Taipei (Line 7 extension) 2.7 2.7 0.6 0.9 AMECA Signalling 0.4 APAC 0.4 Systems 0.2 0.8 Americas Services Signalling in France Europe (ARGOS) 1.1 0.9 Rol
Slide 12: H1 2020/21 sales impacted by lockdown, operations in Q2 back to normal level
H1 2020/21 sales impacted by lockdown, operations in Q2 back to normal level Sales H1 (in €bn) (13%)* Rolling Stock - Q2 +10% organic vs LY ● Production normalisation 4.1 3.5 ● Ramp up of large contracts H1 2019/20 H1 2020/21 Services - Q2 +8% organic vs LY *organic, (15%) reported ● Recovery of tra
Slide 13: Continuous progress in Alstom in Motion strategy deployment
Continuous progress in « Alstom in Motion » strategy deployment Extending Alstom’s Being at the forefront Best-in class project GROWTH INNOVATION of technological EFFICIENCY execution offer through M&A progress August 2020 – Mobility orchestration technology for Panama metro September 2020 – Hydroge
Slide 14: Hydrogen solutions benefit from a strong momentum
Hydrogen solutions benefit from a strong momentum Potential large market ahead for hydrogen based Alstom a pioneer, involved in numerous concrete passenger trains projects throughout Europe ● Diesel bans from some operators between 2035 and Successful trial 20401 operations 1st Passenger ● 46% of th
Slide 15: Bombardier Transportation transaction status
4 Bombardier Transportation transaction status © ALSTOM SA, 2019. 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
Slide 16: Bombardier Transportation acquisition well on track
Bombardier Transportation acquisition well on track UPDATE NEXT STEPS ● Sale and Purchase Agreement, and Bombardier and CDPQ Investment Agreements signature announced on September 16th 2020: ● Net proceeds expected now up to €5.3bn1 against a range of €5.8 - €6.2bn previously agreed ● Rights issue:
Slide 17: H1 2020/21 financial results
5 H1 2020/21 financial results © ALSTOM SA, 2019. 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 an
Slide 18: Income statement
Income statement (in € million) H1 2020/21 H1 2019/20 Sales 3,518 4,140 ● Resilient aEBIT in Covid-19 context Adjusted EBIT2 263 319 Adjusted EBIT margin 7.5% 7.7% ● Non-operating items including: Restructuring and rationalisation costs (7) (7) Impairments loss and other 26 (12) Bombardier Transpo
Slide 19: aEBIT benefits from improvement of Gross Margin and controlled SG&A and R&D costs
aEBIT benefits from improvement of Gross Margin and controlled SG&A and R&D costs Adjusted EBIT1 (in € million) Volume related ● Continued improvement of backlog impact -1.1pp profitability +0.7pp -0.8pp ● Continuous improvement of Gross Margin 7.7% R&D 7.5% ● Reduction in absolute ST&A spending Gro
Slide 20: Free Cash Flow impacted by expected adverse Working Capital linked to Covid-19
Free Cash Flow impacted by expected adverse Working Capital linked to Covid-19 From EBIT to Free Cash Flow (in € million) ● Anticipated temporary adverse working capital position: (54) ● Drift in cash in due to Covid-19 190 101 WCC CAPEX (39) R&D ● Ramp up of large Rolling Stock D&A capitalised H1 2
Slide 21: Strong liquidity position with €4.1bn credit lines facilities available
Strong liquidity position with €4.1bn credit lines facilities available Strong liquidity position (in € million) ● €1,953m cash and cash equivalents as of 30 4,325 September 2020 4,103 Additional ● €400m Revolving Credit Facility (RCF) and additional €1,750m RCF €1,750m short term RCF secured¹ in Ap
Slide 22: Conclusion and outlook
6 Conclusion and outlook © ALSTOM SA, 2019. 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 comm
Slide 23: Conclusion and outlook
Conclusion and outlook H1 2020/21 results Outlook1 ● Resilient full year outlook1: ● Commercial performance allowing a book to bill ratio above one ● H1 2020/21 results as anticipated ● Sales between €7.6bn and €7.9bn resulting from Covid-19 crisis outcome ● An adjusted EBIT margin in the 7.7% - 8.0
Slide 24: Contacts & Agenda
Contacts & Agenda CONTACTS AGENDA Julie MOREL VP Investor Relations & Corporate strategy 19 January 2021 Q3 2020/21 Orders & Sales Claire LEPELLETIER Deputy Head Investor Relations investor.relations@alstomgroup.com © ALSTOM SA, 2019. All rights reserved. Information contained in this document is in
Slide 25: Appendix
Appendix © ALSTOM SA, 2019. 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 circumsta
Slide 26: H1 2020/21 Sales per regions and product lines
H1 2020/21 Sales per regions and product lines Sales breakdown per regions (in € million) Sales breakdown per product line (in € million) Systems €452m Americas €557m Asia Pacific €424m 13% 12% Signalling €691m 16% 19% Europe €2,017m Africa, Middle East & H1 2020/21 H1 2020/21 57% Central Asia €520m
Slide 27: Industry-leading backlog reaching €40bn
Industry-leading backlog reaching €40bn Backlog breakdown per regions Backlog breakdown per product line Asia Pacific Systems 16% 5% Signalling Americas 10% 13% H1 2020/21 Europe H1 2020/21 51% Africa, Middle East & Services Central Asia Rolling stock 35% 20% 50% Systems Asia Pacific Europe 6% 15% S
Slide 28: Evolution of net cash
Evolution of net cash Net cash/(debt)1 (in € million) (253) (33) 1 (50) 1,178 843 March-20 FCF Acq. & disposals Capital increase Forex & other Sept-20 1 Due to IFRS 16 implementation on 1 April 2019, the Group has chosen to exclude lease obligations from the net cash/(debt). As of September 30 2020,
Slide 29: Equity
Equity Equity (in € million) 8 770 (46) (119) 170 3,341 3,328 Mar-20 Net income* Dividends Pension Share-based payments Forex & other Sept-20 * Group share © ALSTOM SA, 2019. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or sho
Slide 30: Non-GAAP financial indicators definitions
Appendix 1 - Non-GAAP financial indicators definitions 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 the
Slide 31: Non-GAAP financial indicators definitions
Appendix 1 - Non-GAAP financial indicators definitions ● Free cash flow Free cash flow is defined as net cash provided by operating activities less capital expenditures including capitalised development costs, net of proceeds from disposals of tangible and intangible assets. In particular, free cash fl
Slide 32: www.alstom.com
www.alstom.com www.alstom.com