Alstom SA · EURONEXT:ALO
Alstom SA — Cheuvreux Pan-Europe Paris Conference 2010
38 slides from Alstom SA's conference presentation, Mar 18, 2010
Slide 1: Cheuvreux Pan-Europe Paris Conference
Cheuvreux Pan-Europe Paris Conference Henri Poupart-Lafarge, CFO 18 March 2010
Slide 2: Agenda
Agenda 1. Our activities 2. Recent developments 3. Conclusion 4. Appendices P2
Slide 3: The Group: Two main activities
The Group Two main activities Split of activities Transport Power 1/3 2/3 Orders in H1 2009/10 P3
Slide 4: Power Offering
Power Offering Leading positions in all power generation markets Plant integrator for thermal applications Strong portfolio of CO2 free technologies Gas Hydro N°3 N°1 Nuclear (conventional part) Wind N°1 Small presence Coal N°1* P4 * Excluding Chinese and Indian players
Slide 5: Power Offering: Strong service activity
Power Offering Strong service activity Contribution to sales Total World Installed Base: ~4,600 GW 25% 18% 15% Contribution to income from operations 6% New build (incl. retrofit) OEM supplied at least the turbine, the generator or the steam generator March 2009 data After-market Source: ALSTOM, UDI
Slide 6: Power Drivers
Power Drivers Solid drivers in place Emerging markets Developed countries • Economic outlook improving and • Ageing fleet candidate for replacement renewed growth in electricity consumption even though still fragile • Trend of energy mix diversification • Insufficient reserve margins – New wave of i
Slide 7: Power Market
Power Market Sound medium-term demand & increasing mix diversification Power generation market in the next five years Average of 220/240 GW p.a. NAM EUROPE RUSSIA/CIS CHINA LAM INDIA MEA Wind Hydro ASIA/PACIFIC Nuclear Steam Gas Source: Alstom P7
Slide 8: Power Positioning
Power Positioning A large portfolio of technologies and a strong global coverage ASIA/ RUSSIA/ NAM EUROPE CHINA INDIA MEA LAM PACIFIC CIS Gas Steam Strong presence Under development No presence Nuclear Hydro Wind P8
Slide 9: Power Short term priorities
Power Short term priorities • Manage the load − Properly deliver the backlog − Adapt recruitment to execution needs • Develop industrial footprint in Asia and the USA • Strengthen positioning on broad portfolio of technologies • Leverage opportunities on the installed base • Boost growth by selectiv
Slide 10: Power Long term strategy
Power Long term strategy Strengthen clean power leadership Improvement Development in efficiency of in renewable power plants energies ECS & CO2 Capture P 10
Slide 11: Transport Offering
Transport Offering A worldwide leader Global reach A full range of products and services Infrastructure Services Rolling stock Signalling P 11
Slide 12: Transport Market and drivers
Transport Market and drivers A sound demand Large opportunities in all continents Key long term drivers Europe • Very high speed and regional Russia North America trains in France and Germany • Double-decker • Metros in Mexico, Canada and USA • Mass transit projects in the UK passenger cars • Stimul
Slide 13: Transport Short term priorities
Transport Short term priorities • Secure project execution − Quality focus − Suppliers panel development − Cost optimisation • Take advantage of market conditions − Large opportunities in France, UK and Germany − Good momentum worldwide for very high speed and mass transit − Development of service w
Slide 14: Transport Strategic move: Partnership with Transmashholding
Transport Strategic move Partnership with Transmashholding Potential of the Russian market • Purchase of a 25% stake in TMH’s equity − Downpayment of $75 million • Largest railway market in Europe − Final price depending on TMH’s results over 2008-2011 • 85,000 kilometres of electrified track • 1.3
Slide 15: Agenda
Agenda 1. Our activities 2. Recent developments 3. Conclusion 4. Appendices P 15
Slide 16: Key figures
Key figures A good operational performance in a difficult economic environment In € million Sept 2008 Sept 2009 Variation Orders received 15,401 7,134 -54% Backlog 46,879 43,787 -7% Sales 8,956 9,683 +8% Income from operations 697 828 +19% Operating margin 7.8% 8.6% Net income 527 562 +7% Free cash
Slide 17: Orders
Orders A low level of orders in H1 2009/10 In € million Evolution of orders received Orders received by country of destination in H1 2009/10 15,401 9,179 21 17% 58% 7,134 14 10 14% 4% H1 2008/09 H2 2008/09 H1 2009/10 7% X Number of contracts above €100 million Contracts below €100 million • Through
Slide 18: Backlog & book-to-bill ratio
Backlog & book-to-bill ratio A high visibility In € billion Evolution of backlog Evolution of book-to-bill ratio 46.9 45.7 43.8 1.72 0.94 0.74 30 Sept 2008 31 March 2009 30 Sept 2009 H1 2008/09 H2 2008/09 H1 2009/10 • Backlog representing 27 months of sales • Book-to-bill ratio at 0.9 in Q3 2009/10
Slide 19: Adaptation to the new economic environment
Adaptation to the new economic environment Cost control and flexibility Evolution of selling and administrative Breakdown of headcount expenses in % of sales 81,500 79,500 7.4% 77,500 6.9% Permanent employees Fixed term contracts 11,500 10,000 9,000 H1 2008/09 H1 2009/10 March 2009 Sept 2009 Dec 200
Slide 20: Power Capex and R&D
Power Capex and R&D Completion of strategic capex plans Prioritisation of R&D Evolution of capex R&D: key events +7% 134 • Inauguration of Alstom/AEP CCS site at In € million 125 Mountaineer in West Virginia (USA) on 30th October 2009 • Agreement signed with Clean Current Power Systems Incorporated
Slide 21: Transport Capex and R&D
Transport Capex and R&D Selective capex and R&D programmes Evolution of capex R&D: key events In € million • AGV in Italy 52 − On-going tests -4% 50 − Certification expected in 2010 • Prima II locomotive prototype unveiled in June − Start of trials in Germany H1 2008/09 H1 2009/10 • Capacity expansi
Slide 22: Portfolio development: Alstom/Schneider Electric and Areva T&D
Portfolio development Alstom/Schneider Electric: the best partners for Areva T&D Renew- On-site Backup Centralized Generation able Storage Power Residential Commercial Industrial Transportation Production Transmission Distribution Consumption • Major global players • Global and regional players • La
Slide 23: Financial impact of the deal
Financial impact of the deal Alstom To be financed by share Alstom ~ €4 Bn* ~ €0,4 Bn Total financing c. 2/3 €2,25 Bn ~ €0.2 Bn €1.05 Bn Debt: €0,7 Bn €2.3 Bn EV: €1,55 Bn Enterprise value Minorities Pensions Net debt as Equity value underfunding at 30.06.2009 *= 8x est. 2009 EBITDA Accretive from f
Slide 24: Areva Transmission: a major step forward for Alstom's growth
Areva Transmission: a major step forward for Alstom’s growth Alstom today: 2 Sectors Alstom tomorrow: a Group based on 3 pillars Power Transport POWER TRANSPORT POWER TRANSMISSION TRANSPORT Sales: ~ €19 billion Sales: ~ €22 billion Employees: ~ 80,000 Employees: ~ 100,000 Stronger presence in Asia S
Slide 25: Agenda
Agenda 1. Our activities 2. Recent developments 3. Conclusion 4. Appendices P 25
Slide 26: Conclusion
Conclusion • Commercial activity expected to rebound • Execution of backlog under control • March 2010 operating margin forecast confirmed: around 9% for the Group − Power: between 10% and 11% − Transport: between 7% and 8% P 26
Slide 27: Agenda
Agenda 1. Our activities 2. Recent developments 3. Conclusion 4. Appendices P 27
Slide 28: Power Key figures
Power Key figures In € million Sept 2008 Sept 2009 Variation Orders 10,203 4,731 -54% Backlog 26,738 24,631 -8% Sales 6,284 6,895 +10% Income from op 581 677 +17% Operating margin 9.2% 9.8% P 28
Slide 29: Power Orders received
Power Orders received Investments in new power plants temporarily delayed Orders by Businesses Main orders of H1 2009/10 In € million Thermal Systems & Products 10,203 • Gas power plant in the UK, incl. 5xGT26 996 • Steam contracts in Germany and in India • Geothermal order in Mexico 2,607 -54% 4,73
Slide 30: Transport Key figures
Transport Key figures In € million Sept 2008 Sept 2009 Variation Orders 5,198 2,403 -54% Backlog 20,141 19,156 -5% Sales 2,672 2,788 +4% Income from op 176 195 +11% Operating margin 6.6% 7.0% P 30
Slide 31: Transport Orders received
Transport Orders received Order intake level influenced by large contracts Main orders of H1 2009/10 Evolution of orders Rolling Stock In € million • Sub-urban train in Paris (France) 5,198 • Metro contracts in Sao Paulo and Brasilia (Brazil) • Tramways in Brasilia and Montpellier (France) -54% • Re
Slide 32: Income statement
Income statement In € million Sept 2008 Sept 2009 Variation Sales 8,956 9,683 +8% Income from operations 697 828 +19% Restructuring costs (13) (27) Capital gains & other 2 (19) EBIT 686 782 +14% Financial result 19 (12) Tax result (174) (199) Minority interest & other (4) (9) Net result 527 562 +7%
Slide 33: Free cash flow
Free cash flow In € million Sept 2008 Sept 2009 Income from operations 697 828 Change in working capital vs book-to-bill Restructuring cash out (39) (38) In € million Depreciation 108 131 1.72 Capital expenditure (195) (210) R&D cap. & amort. of acq. Techno. 4 (23) +771 Pensions (46) (34) Btb: 1 Cha
Slide 34: Evolution of net cash & equity
Evolution of net cash & equity Net cash position Evolution of equity In € million In € million 77 1,866 12 49 2,051 (323) 562 3,099 22 (323) (46) 2,884 Net cash Free cash Dividends Capital Other Net cash 31 Mar 09 flow increase* 30 Sept 09 (*) Employee share purchase schemes and stock options Equity
Slide 35: Contacts & agenda
Contacts & agenda • Emmanuelle Châtelain - VP Investor Relations +33 (0)1 41 49 37 38 • Emmanuelle Douëzy - Individual Shareholders +33 (0)1 41 49 37 59 • Dymphna Hawksley - Logistics +33 (0)1 41 49 37 22 • 04/05/2010 Annual results of FY2009/10 P 35
Slide 36: 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 37: www.alstom.com
www.alstom.co Lue ane shaping the feture | ALSTOM
Slide 38: Investor Relations contact details
INVESTOR RELATIONS – 3 avenue André Malraux – 92300 Levallois (France) – www.alstom.com Phone: 33 (0)1 41 49 37 38 – Fax: 33 (0)1 41 49 79 25 – investor.relations@chq.alstom.com