Slide 1: Half Year Results Fiscal Year 2016/17
Half Year Results Fiscal Year 2016/17 9 November 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 risk and uncertainty factors (such as those described in the documents filed by
Slide 3: Agenda
Agenda 1 Introduction 2 2020 strategy 3 Financial results 4 Objectives ALSTOM – November 2016 – P 3 © ALSTOM 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 appl
Slide 4: Outstanding results in H1 2016/17
Outstanding results in H1 2016/17 Continued strong commercial and operational performance • High order intake of €6.2bn and new record-breaking backlog of €33.6bn • Sales up 8% (organic 7%) at €3.6bn (book-to-bill over 1.7) • Adjusted EBIT up 20%, at €200m, leading to margin at 5.6% Exceptionall
Slide 5: H1 2016/17 key figures
H1 2016/17 key figures % change % change In € million H1 2015/16 H1 2016/17 reported organic Backlog 27,719 33,570 21% 22% Orders 3,897 6,212 59% 66% Sales 3,303 3,570 8% 7% Adjusted EBIT 167 200 20% Adjusted EBIT margin 5.1% 5.6% Net income – Group share (57) 128 Free cash flow (1,336) 333 ALSTOM –
Slide 6: Agenda: 2020 strategy
Agenda 1 Introduction 2 2020 strategy 3 Financial results 4 Objectives ALSTOM – November 2016 – P 6 © ALSTOM 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 appl
Slide 7: Railway traffic evolution
Railway traffic evolution Worldwide traffic evolution from 2007 to 20151 Growth Average growth vs LY (2007–2015) Urban +1.8% +5.3% Mainline Freight +1.6% +4.0% -10.9% -0.2% Passenger traffic for urban & mainline keeps growing, but freight is strongly decreasing 1 Urban traffic figures are for Top 30
Slide 8: Market forecast
Market forecast Average annual accessible market (€bn) 13/15 – 19/21 13/15 – 19/21 CAGR CAGR 101 110 122 +3.2% 101 110 122 +3.2% 11 +3.2% 10 +4.6% 10 9 11 Middle-East Africa 22 +5.4% +4.1% 9 Urban trains 8 9 18 10 Asia Pacific 16 Regional trains 8 7 4 15 +12.1% Mainline trains 13 34 16 31 Freight tr
Slide 9: Share of systems within the urban market
Share of systems within the urban market System market within urban market Share of urban market addressed through systems Annual average 2017-2019 Rest of NAM urban market MEA LAM 43% Metro system Europe 30% Tram system APAC 2013-2015 2017-2019 UNIFE UNIFE (past market) forecast Market addressed th
Slide 10: An ambitious strategy for 2020
An ambitious strategy for 2020 OUR VALUES TEAM, TRUST & ACTION ETHICS & COMPLIANCE 1 CUSTOMER-FOCUSED ORGANISATION ORGANIC OUR 2 COMPLETE RANGE OF SOLUTIONS GROWTH VISION OUR BOOSTED PREFERRED 3 VALUE CREATION THROUGH INNOVATION PARTNER STRATEGY BY FOR SELECTIVE 4 OPERATIONAL AND ENVIRONMENTAL EXCEL
Slide 11: Customer-focused organisation
Customer-focused organisation Continued strong commercial performance Orders (in € billion) 3.9 6.2 Strong order intake of €6.2bn 0.3 1.3 +59% Book to bill above 1.7 0.6 2.6 1.0 New record-breaking backlog of €33.6bn 0.8 1.4 2.1 H1 2015/16 H1 2016/17 Europe Americas MEA Asia Pacific 3.9 6.2 1.
Slide 12: Main H1 2016/17 orders
Customer focused organisation Main H1 2016/17 orders UK: Trains maintenance Canada: Ottawa LRV maintenance Netherlands: Regional trains Italy: NTV Pendolino and maintenance, USA: High speed trains and services Trenitalia regional trains for Amtrak UAE: Dubai 2020 metro system Peru: New metro cars fo
Slide 13: NTV in Italy
Customer focused organisation NTV in Italy Options of previous contract signed in October 2015 4 Pendolino trains and related maintenance services Extension of maintenance services for NTV’s entire fleet from 20 to 30 years Delivery scheduled end 2017 and ready to enter into service in 2018
Slide 14: Dubai: a fully integrated system for Expo 2020 link
Complete range of solutions Dubai: a fully integrated system for Expo 2020 link Alstom, leader of ExpoLink consortium 50 Metropolis trainsets and electromechanical works New route extends 15 km and serves Expo 2020 Delivery of the system before 2020 Dubai: Expo 2020 metro station A fully int
Slide 15: Towards more systems, signalling and services
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 21% Support services Signalling solutions p
Slide 16: Organic sales growth of 7%
Complete range of solutions Organic sales growth of 7% Sales (in € billion) 3.6 5% growth in standalone Trains 3.3 0.7 • Suburban, regional and high-speed trains in Europe 0.8 0.7 (France, Italy, Sweden, etc.) 0.5 0.4 +8% 0.5 • On-going execution of PRASA project 1.6 1.6 • Tramway deliveries in Al
Slide 17: Sustained level of R&D
Value creation through innovation Sustained level of R&D R&D* (in € million) Main R&D programmes Renewal of mainline and urban train ranges As % of sales Signalling programmes Predictive maintenance 85 71 2.1% 2.4% H1 2015/16 H1 2016/17 * R&D including externally-funded programmes, excluding c
Slide 18: High speed train contract with Amtrak - US
Value creation through innovation High speed train contract with Amtrak - US 28 Avelia Liberty trains, new generation of Alstom very high speed trains Optimised maintenance costs Improved energy management Enhanced comfort for passengers A €1.8bn contract: deliveries expected to start in 2
Slide 19: Continued strong operational performance
Operational excellence Continued strong operational performance Adjusted EBIT (in € million) Volume increase Portfolio mix improvement with accretive As % of sales acquisitions On-going initiatives for operational +20% excellence 200 167 5.6% 5.1% H1 2015/16 H1 2016/17 % change reported ALSTOM
Slide 20: Operational excellence: competitive offering and delivery
Operational excellence Competitive offering • Sourcing • Global footprint Excellence in delivery • Global business transformation underway • Strong project management skills • Flawless execution Production of Citadis Spirit for Ottawa, Hornell (USA) A digitalisation plan to create an agile and
Slide 21: Competitive offering: sourcing and global footprint
Operational excellence Competitive offering Sourcing Global footprint Alstom Alliance India ramp-up • Premium partnerships with strategic suppliers to • 2,300 people as end of September 2016 support geographical expansion, share innovations and mutualise development of key components • Quality,
Slide 22: Optimised train product ranges: a platform approach
Operational excellence Optimised train product ranges: a platform approach Optimised costs Improved modularity and design Better energy efficiency Urban Mainline Metropolis Citadis Coradia Avelia ALSTOM – November 2016 – P 22 © ALSTOM 2016. All rights reserved. Information contained in this do
Slide 23: First successes for new generation of Coradia trains
Operational excellence First successes for our new generation of Coradia trains 79 Intercity trains for the Netherlands 150 regional trains for Trenitalia with first operator order of 47 trains €0.8 billion €0.9 billion for the frame contract First deliveries by 2020 First deliveries by earl
Slide 24: Update on Cash focus programme
Operational excellence Update on Cash focus progamme “Sourcing 4 Cash” led by a cross- Other actions functions team • Continuous training through videos and “Cash Talks” • Review of Terms & Conditions (T&C’s) available to all • Reinforcement of cash related matter in the early Cash improvement
Slide 25: Agenda: Financial results
Agenda 1 Introduction 2 2020 strategy 3 Financial results 4 Objectives ALSTOM – November 2016 – P 25 © ALSTOM 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 26: Income statement
Income statement In € million H1 2015/16* H1 2016/17 Sales 3,303 3,570 Adjusted EBIT 167 200 Adjusted EBIT margin 5.1% 5.6% Restructuring charges (14) - Other charges (29) (32) EBIT 124 168 Financial result (86) (71) Tax result (2) (32) Share in net income of equity investees 13 47 Minority interest
Slide 27: Free cash flow
Free cash flow In € million H1 2015/16 H1 2016/17 High contribution of operating profit Adjusted EBIT 167 200 Positive evolution of working Depreciation & amortisation 74 69 capital Restructuring cash-out (24) (18) • Several large down-payments Capex (50) (43) • Volatility on short period R&D ca
Slide 28: Capex developments
Capex developments Control of recurring capex Capex* (in € million) Slow ramp up of transformation capex 50 43 H1 2015/16 H1 2016/17 * excluding capitalised development costs South Africa: beginning of site construction New sites to meet customers’ growing demand for a local presence c. €300m tr
Slide 29: Liquidity and gross debt
Liquidity and gross debt In € billion Liquidity position Liquidity 2.7 2.4 €2.3bn cash and cash equivalents as of 30 September 2016 €400m revolving credit facility ; fully undrawn Flexibility with Energy JVs put options Mar-16 Sept-16 Undrawn credit line Gross cash In € million Gross debt Gros
Slide 30: Net cash & equity
Net cash & equity In € million Net cash/(debt) In € million Equity (43) 128 (85) 333 (33) 44 3,415 54 3,328 (203) Mar-16 FCF Acq. & disposals* Forex & other Sept-16 Mar-16 Net income Pensions Forex & other Sept-16 * includes GE related separation impact (e.g. IS&T) ALSTOM – November 2016 – P 30 © AL
Slide 31: Agenda: Objectives
Agenda 1 Introduction 2 2020 strategy 3 Financial results 4 Objectives ALSTOM – November 2016 – P 31 © ALSTOM 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 32: 2020 objectives confirmed
2020 objectives confirmed 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 – November 2016 – P 32 © ALSTOM 2016. All rights reserved. Information contained in this document is i
Slide 33: Contacts and agenda
Contacts and agenda Contacts Agenda Selma BEKHECHI 17 January 2017 Investor Relations Director +33 (0)1 57 06 95 39 Q3 2016/17 Orders and Sales Julien MINOT Investor Relations Manager 4 May 2017 +33 (0)1 57 06 64 84 Full Year 2016/17 Results investor.relations@alstom.com ALSTOM – November 2016 – P 3
Slide 34: www.alstom.com
www.alstom.com ALSTOM eae tt