Alstom Sa · EURONEXT:ALO
Alstom Sa — Shareholder Meeting (July 2022)
59 slides from Alstom Sa's shareholder meeting presentation, Jul 12, 2022
Slide 1: Combined Shareholders' Meeting 2022
Combined Shareholders’ Meeting 2022 July 12th, 2022 1
Slide 2: Introduction
Introduction Henri Poupart-Lafarge, Chairman and Chief Executive Officer Combined Shareholders’ Meeting, July 12th, 2022 © ALSTOM SA 2022. 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
Slide 3: Opening
Opening Emmanuelle Petrovic, General Counsel Combined Shareholders’ Meeting, July 12th, 2022 © ALSTOM SA 2022. 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
Slide 4: Overview 2021/22 and Strategy
Overview 2021/22 and Strategy Henri Poupart-Lafarge, Chairman and Chief Executive Officer Combined Shareholders’ Meeting, July 12th, 2022 © ALSTOM SA 2022. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should be relied on th
Slide 5: An undisputed leadership position
An undisputed leadership position Henri Poupart-Lafarge, • Chairman and Chief Executive Officer Combined Shareholders’ Meeting, • July 12th, 2022 © ALSTOM SA 2022. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should be reli
Slide 6: Rail at the heart of decarbonation and sustainable growth
Rail at the heart of decarbonation and sustainable growth TRAIN CONSUMES THE LEAST ENERGY1 ANNOUNCEMENTS SUPPORTING MODAL SHIFT AND EMITS THE LEAST CO2² TO RAIL 1.8 1.8 ⏹ Average energy consumption in BANS OF SHORT-HAUL DOMESTIC FLIGHTS 148 Megajoules per passenger kilometer ⏹ Average grams of CO2 p
Slide 7: Opportunities around the world for ecological transformation
Opportunities around the world for ecological transformation ALSTOM SITES EUROPE: €58bn rail investments €100bn backed by EU Next Gen SIGNALLING SYSTEMS EUROPE Large tenders for rolling stock ROLLING STOCK and ETCS AND COMPONENTS €35bn AMERICAs €26bn CANADA APAC Large systems opportunities RER Toron
Slide 8: An undisputed leadership on strongly growing markets
An undisputed leadership on strongly growing markets % OF SALES¹ ROLLING STOCK: 56% #1 globally (excluding China) ⚫ 38% market share 2019 - 2021 ⚫ SERVICES: 22% Undisputed #1 on a highly growing market ⚫ 250 sites in 40 countries, 15,000 employees ⚫ SIGNALLING: 15% #2 in a market under consolidation
Slide 9: Our strategic plan: Alstom in Motion 2025 (AiM)
Our strategic plan : Alstom in Motion 2025 (AiM) © ALSTOM SA 2022. 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 10: Orders backlog at record €81bn level
Orders backlog at record €81bn level €19.3 BILLION OF ALSTOM ORDERS BOOKED DURING FISCAL YEAR 2021/22 €1.1 bn €1.4bn €0.4 bn HS2 DSB FREMTIDENS TOG CORADIA NORDIC (very high speed & services – UK) (regional & services – Denmark) (regional – Norway) €0.3 bn €0.5bn €0.3 bn CORADIA EMUs NEW S-BAHN HAMB
Slide 11: Major milestones for smarter and greener mobility
Major milestones for smarter and greener mobility KEEPING THE EDGE HEALTHIER MOBILITY PAVING THE WAY IN ZERO EMISSION SOLUTION TO FULL AUTONOMY BY 2023 ● Consolidated leadership on hydrogen trains (passenger / freight) and ● PEPA™ filter, an antiviral HVAC filter ● Semi-autonomous operation various
Slide 12: Manufacturing processes and tools continuously modernised
Manufactoring processes and tools continuously modernised Increase automation Deploy innovative and digitalisation digital reality scope SERIAL WATERTIGHNESS TARBES, FRANCE ADDITIVE AUGMENTED MANUFACTURING REALITY WELDING ROBOT 3D ALSTOM META- SCANNING OMNIVERSE LE CREUSOT, FRANCE PLM4A: an enterpri
Slide 13: A differentiating and competitive footprint
A differentiating and competitive footprint AN AMBITIOUS BEST COST COUNTRIES ROADMAP TENDERS WON THANKS TO ABILITY FOR MANUFACTURING TO DELIVER LOCAL CONTENT BCC Roadmap : Mars ‘22 43% Mars ‘25 60% TREN MAYA(MEXICO) AMTRAK HIGH SPEED (BUY AMERICAN ACT) A FOOTPRINT ENABLING TO MANUFACTURE AT THE BEST
Slide 14: FY 2021/22 targets achieved
FY 2021/22 targets achieved €19.3bn €15.5bn 5.0% €(992)m FY 2021/22 ORDER INTAKE SALES ADJUSTED EBIT MARGIN FREE CASH FLOW Book-to-bill +11% gradual recovery including +469 M€ 1.25 proforma on H2 on H2 © ALSTOM SA 2022. All rights reserved. Information contained in this document is indicative only.
Slide 15: An ambitious CSR strategy
An ambitious CSR strategy Henri Poupart-Lafarge, • Chairman and Chief Executive Officer Combined Shareholders’ Meeting, • July 12th, 2022 © ALSTOM SA 2022. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should be relied on th
Slide 16: Four key CSR priorities
Four key CSR priorities Caring For our people Enabling decarbonisation of mobility Creating a positive impact on society Acting as a responsible business partner © ALSTOM SA 2022. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given o
Slide 17: Commitment to Net-Zero Carbon in value chain by 2050
Commitment to Net-Zero Carbon in value chain by 2050 Alstom carbon footprint (FY 2021/22) Zero-carbon roadmap SCOPE 1 & 2 Reduction of C02 emissions in our value chain Direct and indirect SCOPE 1&2 SCOPE 3 SCOPE 3 emissions Energy and fuel Supply Chain Sold Products 230 ktCO2 CONTRIBUTION 2021 Opera
Slide 18: Enabling decarbonisation of mobility
Enabling decarbonisation of mobility Hesop™ reversible World’s first substation power hydrogen-powered converters Coradia iLint™ On-board battery Green energy storage retractioning systems Avelia Horizon™ : +20% of capacity and -20% energy consumption Solar panels at • Energy reduction in solutions
Slide 19: Caring for our people
Caring for our people Health and Safety, unconditionally Cultivating diversity and inclusion ● Recordable injury rate: 2.3¹ ● 23.2% women in manager & professional role ● Target: zero severe accident and to ● Certified Top Employer in 3 regions protecting all employees and contractors • Total record
Slide 20: Creating a positive impact on society
Creating a positive impact on society Investing in local economies Contributing to communities ● Local action plans to support charities and education ● Alstom’s Gibela JV in South Africa Social and Environmental Electricity and Acces - 21,900 people will be trained by 2028 protection water accessil
Slide 21: Acting as a responsible business partner
Acting as a responsible business partner Value Chain built on shared values with our Highest integrity standards suppliers ● Ethics and Compliance committee of the Board of ● Ethics and Sustainable Development Charter1 Directors ● 62% of total purchases covered by screenings, ● Approach covering com
Slide 22: Bombardier Transportation: a successful integration
Bombardier Transportation: a sucessfull integration Henri Poupart-Lafarge, • Chairman and Chief Executive Officer Combined Shareholders’ Meeting, • July 12th, 2022 © ALSTOM SA 2022. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given
Slide 23: Significant progress in delivery and settlement of legacy projects
Significant progress in the delivery and commercial settlement of legacy projects UPDATE ● Technical issues: solutions agreed with customers ● Production resumed Pre-acq Mar Mar Mar Mar AT ‘21 ‘22 ’23 ‘25 ● Trains acceptance process resumed ● Settlements negotiations with customers reached in most c
Slide 24: Successful first year integrating Bombardier Transportation
Successful first year integrating Bombardier Transportation Very robust commercial momentum and high 8.1 NPS¹ for customer satisfaction Top 100 Customers One Alstom team: Global key processes 80% Key global and IT tools convergence on track processes converged Integrated R&D plan for further competi
Slide 25: A resilient business model in an uncertain macro-economic environment
A resilient business model in an uncertain macro-economic environment Henri Poupart-Lafarge, • Chairman and Chief Executive Officer Combined Shareholders’ Meeting, • July 12th, 2022 © ALSTOM SA 2022. All rights reserved. Information contained in this document is indicative only. No representation or
Slide 26: Resilient business
Resilient business Recognised CSR profile Strong backlog Public customers Very long Multi-local and multi-regional industrial cycle supply chain Acknowledged franchise A growing market supported in signaling and services by ecological transition © ALSTOM SA 2022. Tous droits réservés. Les indication
Slide 27: Alstom business model resilient to inflation
Alstom business model resilient to inflation Key parameters Situation update Action Plan • 2/3 of backlog covered by • More complex environment recently, indexation with contrasted trends: • Customers negotiations clauses • observed stabilization / decrease on some raw materials (aluminium) • String
Slide 28: Update on supply chain challenges
Update on supply chain challenges Electronic components Mitigation actions ● Situation more complex for rail specific components • Regular communication with all clients • Precise monitoring of need • Re-design of technical solutions Covid-19 in China • New sourcing channels • Impact on clients deli
Slide 29: Financial Results
Financial Results Laurent MARTINEZ, Chief Financial Officer Combined Shareholders’ Meeting, July 12th, 2022 © ALSTOM SA 2022. 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 o
Slide 30: 2021/22 Profit & Loss
2021/22 Profit & Loss (in € million) FY 2021/22 Sales 15 471 Adjusted EBIT1 767 Adjusted EBIT margin 5,0% Restructuring and rationalisation costs (138) Impairments loss, transaction costs and others (209) Reversal equity pick-up¹ (145) EBIT 275 Financial results (25) Tax results (68) Share in net in
Slide 31: Strengthened liquidity position with long-term debt maturity profile
Strengthened liquidity position with long-term debt maturity profile A STRONG LIQUIDITY POSITION (IN € MILLION) OUTSTANDING BONDS (IN € MILLION) 750 5,060 700 700 4,500 500 Undrawn credit lines 3,250 refinanced in Jan 221 4,250 1,250 Cash & Cash equivalent 810 31 March 2021 31 March 2022 Maturity Oc
Slide 32: Financial trajectory confirmed
Mid-term 2024/25 targets Financial trajectory confirmed MARKET SHARE FY 2022/23 OUTLOOK +5pp1 SALES CAGR ● Sales growth supported by solid order backlog and Book to bill above 1 >5%2 aEBIT margin ● Progressive aEBIT margin increase vs FY 2021/22 through healthy order intake 8-10%3 and sound backlog
Slide 33: 1-year share price performance
1 – year share price performance 40 € 35 € 30 € 25 € 20 € 15 € Jul-21 Aug-21 Sep-21 Oct-21 Nov-21 Dec-21 Jan-22 Feb-22 Mar-22 Apr-22 May-22 Alstom CAC 40 Closing share price: 8th July 2022 © ALSTOM SA 2022. All rights reserved. Information contained in this document is indicative only. No representa
Slide 34: Shareholders distribution
Shareholders distribution DIVIDEND 2021/22 ● Proposition of a dividend distribution of €0.25 € per share which corresponds to a 35% payout ratio from the adjusted net profit (before TMH impairment charge) ● Option for payment of dividends in cash or in shares ● The issue price of the new shares to b
Slide 35: Nominations and remuneration
Nominations and remuneration Yann DELABRIÈRE, Lead Independent Director, Chairman of the Nominations and Remuneration Committee Combined Shareholders’ Meeting, July 12th 2022 © ALSTOM SA 2022. All rights reserved. Information contained in this document is indicative only. No representation or warran
Slide 36: 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 and of its - Elements making the remuneration of executive and Committees, search for new Board members
Slide 37: Nominations and Remuneration Committee: Activity in 2021/22
Nominations and Remuneration Committee: Activity in 2021/22 ● Governance ● Remuneration - Evaluation of the functioning of the Board and of - Remuneration policy for the Chair-CEO its Committees (internal questionnaire and (resolution 8) individual interviews) - Remuneration policy for Board members
Slide 38: Board of Directors Composition - post AGM
Board of Directors Composition - post AGM (Subject to the approval of the resolutions) ● Mandate renewals proposals - Ms. Bi Yong Chungunco - Ms. Clotilde Delbos - Mr. Baudouin Prot ● 50% of female directors (**) ● 6 different nationalities © ALSTOM SA 2022. Tous droits réservés. Les indications fig
Slide 39: Mandates renewals – resolutions 5, 6 and 7
Mandates renewals – resolutions 5, 6 and 7 • Ms Bi Yong Chungunco • Independent Director, Member of the Ethics and Compliance Committee • Principal Function: Chief Executive Officer of Luzon International Premiere Airport Development Corporation • Ms Clotilde Delbos • Independent Director, Member of
Slide 40: Remuneration Policies: Chair-CEO and Board members
Remuneration Policies: Chair-CEO and Board members resolutions 8 and 9 ● Remuneration policy of the Chair-CEO (resolution 8) - Introduction of a clawback clause Applicable to the short-term variable Over two years In case of proven fraud or embezzlement, significant manifest error in the calcu
Slide 41: Remuneration policy for the Chair-CEO (resolution 8)
Remuneration policy for the Chair-CEO (resolution 8) During the term of office Fixed Remuneration € 950,000 Group Performance – 60% . Financial metrics (44%): adjusted EBIT, Free Cash Flow, and gross margin on orders received . Non-financials (16%): ethics and compliance programs, safety at work,
Slide 42: Remuneration policy for the Chair-CEO (resolution 8)
Remuneration policy for the Chair-CEO (resolution 8) After the term of office Pension Defined contribution pensions Severance N/A 18 months of average fixed comp. and STI over the last 3 years, 2-year duration, excluded in case of gross misconduct, major financial issue and in case Non-compete of re
Slide 43: Remuneration of the Chair-CEO for fiscal year 2021/22 (resolution 11)
Remuneration of the Chair-CEO in respect of fiscal year 2021/22 (resolution 11) Fixed Remuneration € 950,000 Objective achievement level of 119.9% objectives tied to the Company’s overall performance: 78.5% (the target was 60% and the Short-term variable € 1,138,872 cap was 120%) objectives tied
Slide 44: Audit
Audit Sylvie RUCAR, Chairwoman of the Audit Committee Combined Shareholders’ Meeting, July 12th, 2022 © ALSTOM SA 2022. 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 45: Audit Committee Activities related to 2021/22 fiscal year
Audit Committee Activities related to 2021/22 fiscal year ● Created in 1998 Chairwoman : Sylvie RUCAR since 30/07/2018 ● Composition: 2 independent members out of 3 (66%), composition to remain unchanged after the AGM ● Duties and attendance - The general purpose of the Audit Committee is to assist
Slide 46: Audit Committee Activities related to 2021/22 fiscal year
Audit Committee Activities related to 2021/22 fiscal year ● Accounting and Finance - Review of the half-year consolidated accounts as of September 30th,2021 and of the annual consolidated and statutory accounts as of March 31st,2022 - Review of Bombardier Transportation financial integration process
Slide 47: Ethics and Compliance
Ethics and Compliance Sylvie KANDÉ DE BEAUPUY, Chairwoman of the Ethics and Compliance Committee Combined Shareholders’ Meeting, July 12th, 2022 © ALSTOM SA 2022. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should be relie
Slide 48: Ethics and Compliance Committee: Missions
Ethics and Compliance Committee : Missions ● Chairwoman : Sylvie KANDÉ DE BEAUPUY since 2017 ● The Committee, created in 2010, examines and monitors the Group’s Ethics and Compliance policies as well as the systems and procedures in place to implement these ● As part of its missions, the Committee :
Slide 49: Ethics and Compliance Committee: Activity in 2021/22
Ethics and Compliance Committee : Activity in 2021/22 ● The Committee reviewed : - The integration plan for Bombardier Transportation from an ethics and compliance point of view - The Group’s Ethics and Compliance objectives and performance indicators - Status of the implementation of the Alstom Int
Slide 50: Integration
Integration Frank MASTIAUX, Chairman of the Integration Committee Combined Shareholders’ Meeting, July 12th, 2022 © ALSTOM SA 2022. 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 cor
Slide 51: Integration Committee Activity in 2021/22 fiscal year (1/2)
Integration Committee Activity in 2021/22 fiscal year (1/2) ● Date of creation: 29 January 2021 (for a period of two years) Chairman: Frank MASTIAUX since date of creation ● Missions and functioning: - The general purpose of the Integration Committee is to facilitate and monitor the Integration of B
Slide 52: Integration Committee Activity in 2021/22 fiscal year (2/2)
Integration Committee Activity in 2021/22 fiscal year (2/2) ● Progress status and challenges reviewed by the Integration Committee throughout the year on defined and consistent dimensions: - People and Change - Target Operating Model Deployment - Processes convergence and IT integration roadmap - Va
Slide 53: Integration progress status overview
Integration Committee Activity in 2021/22 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 Identify, plan and execute Align processes and system
Slide 54: Integration Committee: Overall Summary
Integration Committee Activity in 2021/22 fiscal year: Overall Summary ● After more than one year of integration, progress and results are tangible. ● Initial comprehensive Integration Plan deployment on track, driven and customized as needed to suit each organization’s stakes (Regions, Functions an
Slide 55: Statutory auditors' reports
Statutory auditors’reports Edouard Cartier PwC Combined Shareholders’ Meeting, July 12th, 2022 © ALSTOM SA 2022. 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
Slide 56: Statutory auditors' reports – ordinary part
Combined Shareholders’ meeting - Statutory auditors’ reports Ordinary part of General Meeting Resolution Universal Registration Document ▪ Report on the annual financial statements of Alstom SA 1 p. 147 ▪ Report on the consolidated financial statements 2 p. 129 ▪ Special report on related-party agre
Slide 57: 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 13 p. 18 ▪ Report on the issuance of shares and 15 to 18 miscellaneous securities with preservation and/or p. 19 21 to 24 canc
Slide 58: Questions
Questions © ALSTOM SA 2022. 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 59: www.alstom.com
www.alstom.com www.alstom.com