Alstom Sa · EURONEXT:ALO
Alstom Sa — Shareholder Meeting (July 2021)
58 slides from Alstom Sa's shareholder meeting presentation, Jul 28, 2021
Slide 1: Combined Shareholders' Meeting 2021
Combined Shareholders’ Meeting 2021 July 28th, 2021
Slide 2: Introduction
Introduction Henri Poupart-Lafarge, Chairman and Chief Executive Officer Combined Shareholders’ Meeting, July 28th, 2021 ©ALSTOM SA 2021 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
Slide 3: Opening
Opening Emmanuelle Petrovic, General Counsel Combined Shareholders’ Meeting, July 28th, 2021 ©ALSTOM SA 2021 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
Slide 4: 2020/21 overview, Strategy and Bombardier Integration
2020/21 overview Strategy and Bombardier Integration Henri Poupart-Lafarge, Chairman and Chief Executive Officer Combined Shareholders’ Meeting, July 28th, 2021 ©ALSTOM SA 2021 All rights reserved Information contained in this document is indicative only No representation or warranty is given or sho
Slide 5: 2020/21 Overview
2020/21 Overview • Henri Poupart-Lafarge, Chairman and Chief Executive Officer Combined Shareholders’ Meeting, • July 28th, 2021 © ALSTOM SA, 2021. 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
Slide 6: Sound results in fiscal year 2020/21
Sound results in fiscal year 2020/21 in the context of sanitary crisis and the Bombardier Transportation acquisition ORDERS SALES aEBIT1 in €bn in €bn in €m 7.7% 7.3% Including Including 8.8 1.1 for BT 2.7% for BT 9.9 Including 8.2 9.1 0.7 for BT 630 645 exAT 8% FY 2019/20 FY 2020/21 FY 2019/20 FY 2
Slide 7: Solid order intake in all regions with acceleration in Q4
Solid order intake in all regions with acceleration in Q4 CHICAGO, UNITED STATES - 200 multilevel SPAIN – Largest order ever placed by RENFE GERMANY – 34 Coradia StreamTM High Capacity commuter rail cars to Chicago’s Metra (US) – 152 high-capacity trains and 15-year double-decker and a 30 years main
Slide 8: A confirmed advance in hydrogen trains
A confirmed advance in hydrogen trains ITALY: AUSTRIA: FRANCE: First order for hydrogen trains Coradia Stream Coradia iLint fully approved for the Austrian First order for 12 Coradia Polyvalent dual- for Lombardy network mode electric-hydrogen trains for the - 6 trains Operational test with passenge
Slide 9: Significant progress in the field of autonomous trains
Significant progress in the field of autonomous trains Beginning of critical pilot phases Germany: A world first: the automatic train control (ATO) system will be tested for regional passenger trains in Germany - The project will start in 2021 for a first test with passengers in 2023 Autonomous trai
Slide 10: Strong project execution and controlled SG&A and R&D costs supporting Alstom legacy profitability
Strong project execution and controlled SG&A and R&D costs supporting Alstom legacy profitability ADJUSTED EBIT in € million ● Alstom legacy improved backlog 8% +0.2pp -0.1pp +0.1pp +0.1pp -0.7pp profitability and gross margin 7.7% SG&A R&D Casco following strong project execution Gross Margin 7.3%
Slide 11: Strategy and Bombardier Transportation integration
Strategy and Bombardier Transportation integration • Henri Poupart-Lafarge, Chairman and Chief Executive Officer Combined Shareholders’ Meeting, • July 28th, 2021 © ALSTOM SA, 2021. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given
Slide 12: With Bombardier Transportation acquisition, Alstom becomes a clear global leader
With Bombardier Transportation acquisition, Alstom becomes a clear global leader with an unparalleled profile CLEAR LEADERSHIP WITH… WORLDWIDE PRESENCE BALANCED AND RESILIENT PROFILE Revenues for calendar year 2020 in € bn Main railway actors4 18.9 71,700 EMPLOYEES IN 70+ COUNTRIES Turnkey 8% #2 Sig
Slide 13: Our priorities for 2021 - 2025
Our priorities for 2021 - 2025 Capture growth, extend our innovative leadership, Expand and reinforce continued transformation momentum our strategy Execute plan Integrate Bombardier Transportation with clear roadmap Leading the way to greener and smarter mobility, worldwide © ALSTOM SA, 2021. All r
Slide 14: Significant market tailwinds despite recent global crisis
Significant market tailwinds despite recent global crisis Secular rail long-term drivers + New Catalysts MAJOR RAIL1 STIMULUS PACKAGES ANNOUNCED Government Funding €55 bn² $165 bn³ $15 bn $15 bn4 EUROPEAN NATIONAL HYDROGEN STRATEGIES Sustainable Development ANNOUNCEMENT IN FAVOUR OF GREEN MOBILITY B
Slide 15: A comprehensive and best-in-class portfolio positioning Alstom ahead of the game
A comprehensive and best-in-class portfolio positioning Alstom ahead of the game COMPLETE PORFOLIO WITH EXTENDED REACH BEST SELLERS IN + ALL PRODUCT LINES €6.4 bn orders since launch REGIONAL (CORADIA™) Maintenance DELIVERING HIGH + Urban signalling PERFORMING PRODUCTS ATLAS ETCS Strategic products
Slide 16: A unique global-local footprint to respond to growing demand for localisation
A unique global-local footprint to respond to growing demand for localisation while delivering competitiveness “Customers are looking for reliable, tailored and competitive solutions delivered close to them” PROXIMITY ILLUSTRATION Commercial reach in 70+ countries Rolling Stock & Components key site
Slide 17: A clear strategy for each product line
A clear strategy for each product line Rolling Stock & Turnkey Signalling Services INCREASE PROFITABILITY LEAD IN TECHNOLOGY SUSTAIN LEADERSHIP FOCUS ON EXECUTION GROW TO REACH #1 ACCELERATE GROWTH DELIVER GROW SOUNDLY REAP SCALE BENEFITS VALUE ON A CONTINUOUS BASIS Growth above market High single d
Slide 18: Largest R&D scale of the industry and strong innovation pipeline
Largest R&D scale of the industry and strong innovation pipeline A sustained R&D effort1 … to extend innovation leadership in 3 areas “Lead societies to a GREEN low carbon future” 302 550-600 MOBILITY M€2,3 M€ SALES2 SALES3 “Make mobility 3.7% c.3% simple to operate SMART FY 2019/20 FY 2024/25 MOBIL
Slide 19: Continued transformation momentum extended to 2025, with clear targets
Continued transformation momentum extended to 2025, with clear targets TOMORROW EXTEND DIGITALISATION TO THE GLOBAL SCOPE • Deploy Alstom digital suite • Leverage scale to invest and accelerate • Boost automation EXCELLENCE IN PROJECT EXECUTION • Enhanced project management capabilities • Systematic
Slide 20: Alstom's DNA dedicated to making the world more sustainable
Alstom’s DNA dedicated to making the world more sustainable 2025 TARGETS ENABLING ● 25%1 energy reduction in solutions decarbonisation of mobility ● 100% of newly-developed solutions eco-designed ● 100% electricity supply from renewables2 ● Alstom committed to science-based targets within the frame
Slide 21: Bombardier Transportation integration: significant progress in 5 months
Bombardier Transportation integration : significant progress in 5 months €6.4 bn of Alstom orders won over Q1, book-to-bill ratio > 1.7 ● One organisation Selection of wins deployed as per Target – 96% 1.4 bn€ 1.0 bn€ employees positive about Bombardier Transportation acquisition DSB FREMTIDENS TOG
Slide 22: A clear roadmap for Bombardier Transportation integration
A clear roadmap for Bombardier Transportation integration PRIORITIES Complete stabilisation of challenging Achieve ONE group, with operating model Fully leverage the significant Bombardier Transportation legacy backlog deployed and best in class converged complementarities for synergies processes an
Slide 23: Conclusion: Mid-Term targets (2025)
Mid-Term targets (2025) Conclusion SALES CAGR >5%1 ❶ Unprecedented Market dynamic ❷ Best positioned to capture customer demand, aEBIT leveraging unique geographical presence and product line assets 8-10% ❸ Innovation leadership as key differentiator and Net income enabler to drive mobility decarboni
Slide 24: Stock performance over the last year
Stock performance over the last year 55 € 50 € 45 € 40 € 35 € 30 € 25 € 20 € Jul-20 Jul-20 Aug-20 Aug-20 Sep-20 Sep-20 Oct-20 Oct-20 Nov-20 Nov-20 Dec-20 Dec-20 Jan.-21 Jan-21 Feb-21 Feb-21 Mar-21 Mar-21 Apr-21 Apr-21 May-21 May-21 Jun-21 Jun-21 Jul-21 Jul-21 Alstom CAC 40 Closing price : 21 July 20
Slide 25: A long-term shareholding renewed
A long-term shareholding renewed SHAREHOLDING STRUCTURE¹ Individual shareholders Employees 2% 1,5% CDPQ 17,5% Institutional shareholders 79% 1 According to a shareholder study carried out by Euroclear France and Q4 on the 20 May 2021, adjusted by the sale on 2 June 2021 by Bouygues S.A. of 11 millio
Slide 26: Financial framework
Financial framework Laurent MARTINEZ, Chief Financial Officer Combined Shareholders’ Meeting, July 28th, 2021 © ALSTOM SA, 2021. 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 correc
Slide 27: Income statement
Income statement (in € million) FY 2019/20 FY 2020/21 Sales 8,201 8,785 Adjusted EBIT¹ 630 645 Adjusted EBIT margin 7.7% 7.3% Restructuring and rationalisation costs (18) (14) Impairments loss, transaction costs and others 5 (213) Covid-19 inefficiencies and incremental costs (24) (68) Reversal equi
Slide 28: Balance sheet and solid liquidity positions
Balance sheet and solid liquidity positions A REINFORCED LIQUIDITY POSITION in € million ● Successful €2 billion capital increase in 2020 4,500 to finance Bombardier Transportation acquisition ● Liquidity positions at €4.5 billion on 31 March 2021 2,575 ● Successful senior bond issuance in July 2021
Slide 29: Shareholders distribution
Shareholders distribution DIVIDEND 2020/21 ● Proposition of a dividend distribution of €0.25 per share which corresponds to a 31% payout ratio from the adjusted net profit ● Option for payment of dividends in cash or in shares ● The issue price of the new shares to be issued in payment of the divide
Slide 30: Nominations and remuneration
Nominations and remuneration Yann DELABRIÈRE, Lead Independent Director, Chairman of the Nominations and Remuneration Committee Combined Shareholders’ Meeting, July 28th, 2021 © ALSTOM SA, 2021. All rights reserved. Information contained in this document is indicative only. No representation or warr
Slide 31: Nominations and Remuneration Committee: Missions
Nominations and Remuneration Committee: Missions The Committee issues recommendations, proposals and advices in the field of: ● Governance: ● Remuneration: - Composition of the Board of Directors - Elements making the remuneration and of its Committees, search for new of executive and non-executive
Slide 32: Nominations and Remuneration Committee: Activity in 2020/21 (1/3)
Nominations and Remuneration Committee: Activity in 2020/21 (1/3) ● Governance ● Remuneration - Evaluation of the functioning of the Board - Remuneration policy (modified) of the CEO (resolution 9) and of its Committees (internal questionnaire - Remuneration policy (modified) of the Board members an
Slide 33: Nominations and Remuneration Committee: Specific focus on governance topics (2/3)
Nominations and Remuneration Committee: Activity in 2020/21 - Specific focus on some governance topics (2/3) ● Composition of the Board of Directors: - Review of the profiles of the Board members and Censor proposed by Caisse de Dépôt et Placement du Québec in the context of the acquisition of Bomba
Slide 34: Nominations and Remuneration Committee: Specific focus on remuneration topics (3/3)
Nominations and Remuneration Committee : Activity in 2020/21 - Specific focus on some remuneration topics (3/3) ● Remuneration policy of the Chairman and CEO (resolution 9) - Suppression of the exceptional and non-recurring component as approved by the 29 October 2020 AGM (LTI for rewarding success
Slide 35: Remuneration policy of executive corporate officers (1/2) - Resolution 9
Remuneration policy of executive corporate officers (1/2) - Resolution 9 During the term of the office POLICY SUBJECT TO THE VOTE CURRENT SITUATION OF THE 2021 AGM Employment No employment contract Unchanged contract • On decision by the May 2019 Board Base remuneration €850,000 • Set for a minimum
Slide 36: Remuneration policy of the executive corporate officers (2/2) - Resolution 9
Remuneration policy of the executive corporate officers (2/2) - Resolution 9 After the term of the office POLICY SUBJECT TO THE VOTE CURRENT SITUATION OF THE 2021 AGM Severance No severance indemnity Unchanged indemnity • 18-month remuneration Non-compete • Protection over two calendar years Non-com
Slide 37: Remuneration policy of the Board members - Resolution 10
Remuneration policy of the Board members - Resolution 10 ● Annual budget of €1,300,000, unchanged since 2014, made of a fixed portion and a variable portion, the Chairs of the Committees and the LID being eligible for an additional fixed portion ● Policy that applies to all Board members including E
Slide 38: Remuneration report - Resolution 11
Remuneration report - Resolution 11 ● Introduced by Ordinance of 27 November 2019 in respect of remuneration of corporate officers of listed companies ● Elements paid during / awarded in respect of fiscal year 2020/21: - To Board members - To the CEO, these elements comprising the remuneration ratio
Slide 39: Remuneration of Mr Henri Poupart-Lafarge for 2020/21 (1/3) - Resolution 12
Remuneration of Mr Henri POUPART-LAFARGE in respect of fiscal year 2020/21 (1/3) - Resolution 12 ELEMENTS AMOUNTS DESCRIPTION Fixed annual On proposal by Mr. Henri Poupart-Lafarge, the Board of Directors of 11 May 2020 €796,883 remuneration reduced by 25% the fixed remuneration of Mr. Henri Poupart
Slide 40: Remuneration of Mr Henri Poupart-Lafarge for 2020/21 (2/3) - Resolution 12
Remuneration of Mr Henri POUPART-LAFARGE in respect of fiscal year 2020/21 (2/3) - Resolution 12 ELEMENTS AMOUNTS DESCRIPTION LTI plans granted during fiscal year 2020/21, by decision of the Board of Directors of 4 July 2021 Performance NA shares Information in respect of these LTI plans are include
Slide 41: Remuneration of Mr Henri Poupart-Lafarge for 2020/21 (3/3) - Resolution 12
Remuneration of Mr Henri POUPART-LAFARGE in respect of fiscal year 2020/21 (3/3) - Resolution 12 ELEMENTS AMOUNTS DESCRIPTION 18-month remuneration Non-compete Protection for a period of two calendar years No payment undertaking Wide perimeter Implementation on decision by the Board of Direc
Slide 42: Audit
Audit Sylvie RUCAR, Chairwoman of the Audit Committee Combined Shareholders’ Meeting, July 28th, 2021 © ALSTOM SA, 2021. 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 wil
Slide 43: Audit Committee: Activities related to 2020-21 fiscal year
Audit Committee Activities related to 2020-21 fiscal year ● Created in 1998 Chairwoman : Sylvie RUCAR since 30/07/2018 ● Duties and attendance - The general purpose of the Audit Committee is to assist the Board with overseeing issues relating to the preparation and control of financial and accountin
Slide 44: Audit Committee: Activities related to 2020-21 fiscal year
Audit Committee Activities related to 2020-21 fiscal year ● Accounting and Finance - Review of the half-year consolidated accounts as of 30 September 2019 and of the annual consolidated and statutory accounts as of 31 March 2020 - Review of Bombardier Transportation financial integration process, in
Slide 45: Ethics and Compliance
Ethics and Compliance Sylvie KANDÉ DE BEAUPUY, Chairwoman of the Ethics and Compliance Committee Combined Shareholders’ Meeting, July 28th, 2021 © ALSTOM SA, 2021. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should be reli
Slide 46: Ethics and Compliance Committee Missions
Ethics and Compliance Committee Missions ● Chairwoman: Sylvie Kandé de Beaupuy since 2017 ● Committee created in 2010 and of which missions are, since July 2020, focused on ethics and conformity topics as well as on human rights topics ● A part of its current missions, the Committee: - Reviews the d
Slide 47: Ethics and Compliance Committee: Activity in 2020/21 (1/2)
Ethics and Compliance Committee: Activity in 2020/21 (1/2) ● In the field of ethics and conformity, the Committee reviewed: - Bombardier Transportation integration plan from an ethics and compliance point of view. - Group’s Ethics and Compliance goals and performance indicators over the 2020/21 fisc
Slide 48: Ethics and Compliance Committee: Activity in 2020/21 (2/2)
Ethics and Compliance Committee: Activity in 2020/21 (2/2) ● In the field of sustainable development*, the Committee reviewed: - Information about the evaluations conducted by non-financial ratings agencies. - Monitoring of Group performance in terms of sustainable development, the environment and w
Slide 49: Integration
Integration Frank MASTIAUX, Chairman of the Integration Committee Combined Shareholders’ Meeting, July 28th, 2021 © ALSTOM SA, 2021. 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 co
Slide 50: Integration Committee Activity in 2020/21 fiscal year
Integration Committee Activity in 2020/21 fiscal year ● Date of creation: 29 January 2021 (for a period of two years) Chairman: Mr Frank MASTIAUX since date of creation ● Missions and functioning: - The general purpose of the Integration Committee is to facilitate and monitor the Integration of Bomb
Slide 51: Integration Committee Activity in 2020/21 fiscal year
Integration Committee Activity in 2020/21 fiscal year ● Integration Management - Initial Integration Structure and Staffing : A central team composed of 7 permanent experienced managers lead by the Chief Strategy and Integration Officer A network of 20 permanent Integration leaders working direc
Slide 52: Integration progress status overview
Integration Committee Activity in 2020/21 fiscal year: Integration progress status overview People & Change Target Model Processes & Value Capture deployment IT tools convergence Objectives Foster a sense of belonging Ensure the deployment of the Align processes and systems all Identify, plan and ex
Slide 53: Integration Committee: Overall Summary
Integration Committee Activity in 2020/21 fiscal year: Overall Summary ● Well structured and comprehensive Integration Plan starts to pay off ● People dimension shows very positive energy from the entire organization ● Maintaining people engagement at an intense level will be of essence ● Project St
Slide 54: Statutory auditors' reports
Statutory auditors’ reports Jean-Luc BARLET, MAZARS Combined Shareholders’ meeting, July 28th, 2021 © ALSTOM SA, 2021. 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
Slide 55: Statutory auditors' reports - Ordinary part
Combined Shareholders’ meeting - Statutory auditors’ reports Universal Ordinary part of General Meeting Resolution Registration Document ▪ Report on the annual financial statements of Alstom SA 1 p. 148 ▪ Report on the consolidated financial statements 2 p. 122 ▪ Special report on related-party agre
Slide 56: Statutory auditors' reports - Extraordinary part
Combined Shareholders’ meeting - Statutory auditors reports Extraordinary part of General Meeting Resolution Notice of Meeting ▪ Report on the reduction of the share capital 14 p. 38 ▪ Report on the issuance of ordinary shares or other securities reserved for 15 p. 39 members of a company or a group
Slide 57: Questions
Questions © ALSTOM SA, 2021. 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 circumst
Slide 58: www.alstom.com
www.alstom.com www.alstom.com