Alstom Sa · EURONEXT:ALO

Alstom Sa — Investor Day (March 2016)

86 slides from Alstom Sa's investor day presentation, Mar 30, 2016

  1. Slide 1: Alstom Analyst Day

    Alstom Analyst Day Villeurbanne - France 30 March 2016

  2. 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

  3. Slide 3: Today's agenda

    Today’s agenda TIMING TOPIC SPEAKER TITLE 10.15-10.30 Welcome coffee Henri POUPART-LAFARGE Chairman and Chief Executive Officer 10.30-12.20 Introduction, market and strategy Thierry BEST Chief Operating Officer 12.20-12.40 Financials Marie-José DONSION Chief Financial Officer 12.40-12.45 Conclusion

  4. Slide 4: Agenda: Introduction

    Agenda 1 Introduction 2 Railway market overview 3 Alstom 2020 strategy 4 Alstom financials 5 Conclusion 6 Signalling & Villeurbanne site ALSTOM – 30/03/2016 – P 4 © ALSTOM 2016. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or

  5. Slide 5: Activities: a complete range of solutions

    Activities: a complete range of solutions  Tram, metro, suburban/regional, high speed, very high speed, locomotive  Components: traction, bogie, motor  Maintenance  Modernisation  Spare parts, repairs & overhaul  Support services  Signalling solutions portfolio for: main lines, urban, control

  6. Slide 6: Alstom Executive Committee

    Alstom Executive Committee Henri POUPART-LAFARGE Chairman & CEO Pascal CLÉRÉ Thierry BEST Marie-José DONSION Mathias KLEMPTNER Pierrick LE GOFF SVP – Signalling (TIS) COO CFO SVP – HR & EHS General Counsel Dominique POULIQUEN Andreas KNITTER Jean-Baptiste EYMÉOUD Michel BOCCACCIO Gian-Luca ERBACCI J

  7. Slide 7: 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

  8. Slide 8: 2020 Objectives

    Objectives 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 – 30/03/2016 – P 8 © ALSTOM 2016. All rights reserved. Information contained in this document is indicative only. No

  9. Slide 9: Agenda: Railway market overview

    Agenda 1 Introduction 2 Railway market overview 3 Alstom 2020 strategy 4 Alstom financials 5 Conclusion 6 Signalling & Villeurbanne site ALSTOM – 30/03/2016 – P 9 © ALSTOM 2016. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or

  10. Slide 10: Market: Solid long-term drivers

    Market: Solid long-term drivers URBANISATION SUSTAINABLE DEVELOPMENT ECONOMIC GROWTH GOVERNMENTAL FUNDING ALSTOM – 30/03/2016 – P 10 © 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

  11. Slide 11: Market: Railway traffic evolution

    Market: Railway traffic evolution Average Worldwide traffic evolution from 2007 to 20141 Growth growth vs LY (2007–2014) Urban +4.4% +5.8% Mainline Freight +5.4% +4.5% -4.0% +1.4% 2007 2008 2009 2010 2011 2012 2013 2014 1 Urban traffic figures are for Top 30 cities worldwide; mainline & freight traf

  12. Slide 12: Market: Growth in all regions; driven by urban

    Market: Growth in all regions; driven by urban Accessible market at € constant (€bn) 11/13 – 17/19 11/13 – 17/19 CAGR CAGR 102 109 121 +2.8% 102 109 121 +2.8% 11 +2.7% 12 +1.2% 11 8 Middle-East Africa 8 24 +4.2% 11 +4.1% Regional trains 11 11 9 20 Asia Pacific 19 Urban trains 9 8 +0.3% 12 Mainline t

  13. Slide 13: Customers: Market largely driven by public entities

    Customers: Market largely driven by public entities Various forms of public entities footprint in the market Others Governments or public entities State owned entities/ Customer type (regions, municipalities…) national railway operators Fleet owners and operators Governments National monopoly Few ac

  14. Slide 14: Customers: Strong requests for localisation

    Customers: Strong requests for localisation Europe: Still many local specificities USA: Japan: Stringent operational Buy American Act safety case Turkey: >50% local content for Very High Speed Train China: Licenses Brazil: Localisation bonus (BNDES financing) and high custom taxes South Africa: Indu

  15. Slide 15: Customers: Highly fragmented regulatory environment

    Customers: Highly fragmented regulatory environment 1435 mm Other examples of heterogeneity: 1520 mm A world of  Load gauges (3 in Europe: UK, Spain, UIC) 1524 mm Example: historically track gauges used 1600 mm  Power supply systems (5 in Europe) heterogeneous worldwide railway standards… 1668 mm

  16. Slide 16: Customers: Urban projects largely achieved through integrated solutions

    Customers: Urban projects largely achieved through integrated solutions System within urban market (annual average) Rest of urban market 40% 35% 30% Metro system 30% Tram system 2013-2015 2014-2016 2015-2017 2016-2018 Source: Alstom estimation Demand for suppliers demonstrating track record to succe

  17. Slide 17: Customers: Tackling increasing requirements through innovations

    Customers: Tackling increasing requirements through innovations Total cost of ownership Safety, comfort and eco-friendly solutions  Reduce cost of maintenance and overhaul  Continuously increase safety  Energy saving equipment and program  Provide customers with more  Asset life extension and a

  18. Slide 18: Agenda: Alstom strategy

    Agenda 1 Introduction 2 Railway market overview 3 Alstom 2020 strategy 4 Alstom financials 5 Conclusion 6 Signalling & Villeurbanne site ALSTOM – 30/03/2016 – P 18 © ALSTOM 2016. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or

  19. Slide 19: 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

  20. Slide 20: A strategy based on 5 pillars

    A strategy based on 5 pillars 1 CUSTOMER-FOCUSED ORGANISATION 2 COMPLETE RANGE OF SOLUTIONS 3 VALUE CREATION THROUGH INNOVATION 4 OPERATIONAL AND ENVIRONMENTAL EXCELLENCE 5 DIVERSE AND ENTREPRENEURIAL PEOPLE ALSTOM – 30/03/2016 – P 20 © ALSTOM 2016. All rights reserved. Information contained in this

  21. Slide 21: Customer-focused organisation and multi-local presence

    1 Customer-focused organisation and multi-local presence  32,000 employees working on 105 sites in 60 countries serving 200 customers • Regions: close to customers, in charge of execution EUROPE • Operational functions: AMERICAS 22,800 EMPLOYEES global cohesion, processes and platforms 4,700 MIDDLE

  22. Slide 22: Strategic partnerships and new sites around the world

    1 Strategic partnerships and new sites around the world Russia Algeria India South Africa Turkey India TMH (trains) CITAL (trams) Chennai (trains)* Gibela Istanbul hub* Madhepura (locos) (suburban trains) Coimbatore* Kazakhstan France France Brazil EKZ (locos) Metrolab (R&D) NTL (trams) Kazakhstan T

  23. Slide 23: Alstom in India

    1 Alstom in India Alstom sites Contracts won by Alstom Market trends  A large and booming market1: €3.5bn p.a. MADHEPURA market for trains, +15%/year Lucknow Metro – 2015/16 E-loco Trains and signalling – €150m (to be erected by 2018)  Driven by: E-loco project 2016 – €3.5bn • urbanisation needs D

  24. Slide 24: Prasa project

    1 Prasa project  Scope • Design, manufacture and supply 600 trains for South Africa fleet renewal • Parts supply & technical support for 19 years • Gibela Joint Venture led by Alstom (61%), local factory, 65% average local content  Status • First train delivered from Brazil end 2015 • Local factor

  25. Slide 25: Leader on all continents

    1 Leader on all continents Our market share1 (%) and ranking in 2015/16 #2 #3 #2 #2 13% 10% 11% 9% Americas2 Europe3 MEA APAC Note: (1) Market shares and rankings based on FY 15/16 orders including Madhepura ; (2) NAM market share and ranking exclude freight market ; (3) Russia not included as marke

  26. Slide 26: A strategy based on 5 pillars

    A strategy based on 5 pillars 1 CUSTOMER-FOCUSED ORGANISATION 2 COMPLETE RANGE OF SOLUTIONS 3 VALUE CREATION THROUGH INNOVATION 4 OPERATIONAL AND ENVIRONMENTAL EXCELLENCE 5 DIVERSE AND ENTREPRENEURIAL PEOPLE ALSTOM – 30/03/2016 – P 26 © ALSTOM 2016. All rights reserved. Information contained in this

  27. Slide 27: Increasing demand for integration

    2 Increasing demand for integration Metro integrated system for Riyadh Sydney metro & signalling Coradia trains (Regiolis) in France Traction of the Nanjing metro FULLY BUNDLED OFFER INTEGRATED SYSTEM BETWEEN INDIVIDUAL 2 SEGMENTS SOLUTION COMPONENTS ALSTOM – 30/03/2016 – P 27 © ALSTOM 2016. All rig

  28. Slide 28: Urban trains

    2 Urban trains  Tramways • Citadis trams: more than 2,300 Citadis sold in more than 50 cities • Translohr based-trams in 8 cities in the world • Tram-trains: around 80 Citadis Dualis & 34 Citadis Spirit ordered Citadis, Nottingham (UK)  Metropolis metros • About 5,000 Metropolis cars sold since 19

  29. Slide 29: Mainline trains

    2 Mainline trains  Coradia regional trains • More than 2,000 Coradia in service in 9 European countries & in Canada  Coradia Liner V200 main line trains  Avelia high-speed and very high-speed trains • More than 500 Pendolino ordered; certified in 14 countries Coradia Nordic, Solna (Sweden) • More

  30. Slide 30: Components

    2 Components  Key critical components which act as key end-product differentiators • Bogies • Motors • Traction systems • Auxiliary • Etc. Pivoting bogie for Citadis Dualis tram-train Onix 200 power module in manufacture Detail of permanent magnet motor ALSTOM – 30/03/2016 – P 30 © ALSTOM 2016. All

  31. Slide 31: Tailored services

    2 Tailored services  Maintenance • 8,000 cars maintained • HealthHub: new predictive maintenance offer  Modernisation • 10 modernisation centres around the world Maintenance of Citadis, Reims (France)  Parts, repairs & overhauls • 600,000 referenced train parts  Support services • More than 700

  32. Slide 32: Case study: Northern Line

    2 Case study: Northern Line  Scope • 30 years maintenance contract • 106 metro trains of 6 cars • Full service provision • Management of 2 depots  Status • Availability: 97/106 trains • Reliability: 48,621 km • Mid-life refurbishment recently completed Customer: Tube Lines Every journey matters, e

  33. Slide 33: Unrivalled signalling solutions

    2 Unrivalled signalling solutions  Urban • Radio CBTC solutions: Urbalis and Tempo CBTC • Tramway protection solution: Pegasus 101  Main lines • Atlas: Interior of AGV .italo, Roma-Napoli line (Italy) ERTMS solution for 100% interoperable trains  Freight & mining market • A position strengthened,

  34. Slide 34: Integrated urban system to enhance efficiency

    2 Integrated urban system to enhance efficiency  Global approach • Comprehensive solutions for optimised costs, reduced delivery times, optimal performance… • No civil work • Attractis: last integrated tramway system • Axonis: 1st economical and quick-to-build Metro system, Panama metro system  In

  35. Slide 35: Case study: Dubai tramway system

    2 Case study: Dubai tramway system  Scope • Fully integrated tramway solution incl. trains, signalling, infrastructure and 13 years maintenance contract  Status: already a success • Availability and punctuality above 99.5% • Robust operation under heavy rain and sand storm • Up to 30,000 passenger

  36. Slide 36: Case study: Riyadh lines 4,5 & 6 metro system

    2 Case study: Riyadh lines 4,5 & 6 metro system  Scope • 69 driverless Metropolis trains • Signalling system • Infrastructure: third rail and track, using Appitrack and power supply incl. Hesop substations  Status • Train production started in Katowice in Nov. 2015 Customer: Arriyadh Development A

  37. Slide 37: Towards more systems, signalling & services

    2 Towards more systems, signalling & services Grow towards more profitable activities  Profitability today  Systems, services & signalling (% of total sales) FY 14/15 2020 Objective 47% 60% Systems Systems Systems Signalling Signalling Services Services Signalling Trains TRAINS SYSTEMS SIGNALLING

  38. Slide 38: A strategy based on 5 pillars

    A strategy based on 5 pillars 1 CUSTOMER-FOCUSED ORGANISATION 2 COMPLETE RANGE OF SOLUTIONS 3 VALUE CREATION THROUGH INNOVATION 4 OPERATIONAL AND ENVIRONMENTAL EXCELLENCE 5 DIVERSE AND ENTREPRENEURIAL PEOPLE ALSTOM – 30/03/2016 – P 38 © ALSTOM 2016. All rights reserved. Information contained in this

  39. Slide 39: Staying a step ahead

    3 Staying a step ahead 1 2 3 Boost technical Invest in Optimise innovation to increase competitiveness- customers’ total cost differentiation oriented technology of ownership Citadis X05 Attractis tramway system Coradia maintenance An R&D strategy focused on differentiation and competitiveness Susta

  40. Slide 40: Main innovative programmes

    3 Main innovative programmes Complete renewal of the ranges:  Avelia range  Citadis Spirit, Citadis X05  Zero emission train  New range of standard metro  Silicon carbide (SiC)  HealthHub  Predictive maintenance  Atlas, main lines ERTMS  Urbalis, CBTC  ATO, geolocalisation, 4G  Axonis met

  41. Slide 41: New range of standard metro

    3 New range of standard metro  Product Description • Full product range: 5,000+ configurations, aluminum and stainless steel • New carshell concept with pre-fitted modules and final bolted assembly • New auxiliary converter SiC  Benefits • Around 20% costs savings New standard metro ALSTOM – 30/03

  42. Slide 42: Evolution of Avelia range

    3 Evolution of Avelia range  Very high-speed train of the future programme • 750 seats • -35% energy consumption • Optimised maintenance cost  JV SpeedInnov with ADEME Very high-speed train of the future ALSTOM – 30/03/2016 – P 42 © ALSTOM 2016. All rights reserved. Information contained in this d

  43. Slide 43: Passenger experience

    3 Passenger experience  Key for our clients • Digital world with new behaviors and needs • Multimodal competition  Alstom innovation • Multimodal communication, comfort, lighting, acoustics, passenger information… • Collaborative development with clients : innovation partnerships, hackathon…  Dif

  44. Slide 44: An ecosystem of innovation and creativity

    3 An ecosystem of innovation and creativity  Collaboration with research centres (SystemX, IMS…)  Collaborative reflections with Alstom suppliers and operators (RATP, SNCF, ADEME…)  Annual internal contest: I NOVE YOU Passenger experience concept Internal contest I NOVE YOU ALSTOM – 30/03/2016 –

  45. Slide 45: A strategy based on 5 pillars

    A strategy based on 5 pillars 1 CUSTOMER-FOCUSED ORGANISATION 2 COMPLETE RANGE OF SOLUTIONS 3 VALUE CREATION THROUGH INNOVATION 4 OPERATIONAL AND ENVIRONMENTAL EXCELLENCE 5 DIVERSE AND ENTREPRENEURIAL PEOPLE ALSTOM – 30/03/2016 – P 45 © ALSTOM 2016. All rights reserved. Information contained in this

  46. Slide 46: Operational excellence

    4 Operational excellence  Competitive offering • Sourcing • Global footprint Sri City site (India)  Excellence in delivery • Global business transformation underway • Strong project management skills  Cash focus programme Testing interior, Savigliano (Italy) • Operational excellence, at the heart

  47. Slide 47: Competitive offering: Sourcing contribution (1/2)

    4 Competitive offering: Sourcing contribution (1/2) Integration Body shell  60% of Alstom products cost are Gangway HVAC purchased Interior linings, windows • c.€4bn external supplies Pantograph Doors Electrical Seat harness Bogies  Partnership Auxiliary supply • 90 global partners (50% of the spe

  48. Slide 48: Competitive offering: Sourcing contribution (2/2)

    4 Competitive offering: Sourcing contribution (2/2) Savings per lever  Volume • Bundle approach: different products under one negotiation • Total cost of ownership: improve full product life cycle cost under one negotiation and protect our margin on after sales Low cost 20% countries Design to cost

  49. Slide 49: Competitive offering: Global footprint

    4 Competitive offering: Global footprint  Worldwide trains manufacturing  Bangalore (India) engineering center ramp up FY 14/15 2020 Objective Signalling 2020 Objective Trains Rest of the world Rest Western 33% Western of the world Europe Europe 60% • Rapid growth of global manufacturing and engin

  50. Slide 50: Excellence in delivery: Business transformation

    4 Excellence in delivery: Business transformation Customer Relation Management Planning Service Management Management System SELL MAINTAIN PLAN ShopFloor Product MANUFACTURE ENGINEER Life Cycle Control Management SOURCE Enterprise Supplier Resource Management Management Numerous initiatives launched

  51. Slide 51: Excellence in delivery: Examples

    4 Excellence in delivery: Examples  3D Master  Alstom production system  New  Manufacturing electrical execution organisation system New process & tools for all functions: engineering, manufacturing, etc. ALSTOM – 30/03/2016 – P 51 © ALSTOM 2016. All rights reserved. Information contained in thi

  52. Slide 52: Excellence in delivery: Project management

    4 Excellence in delivery: Project management Key practices Results  Anticipation before tendering 1. Intense activity • 20 tenders per month  Stringent Go / No Go decision • 3 months average per tender  Rigorous transfer from tender to project (tender transfer meeting) • c.450 major contracts in

  53. Slide 53: Cash focus programme

    4 Cash focus programme Main levers Key practices • Worldwide training (e.g. sales community)  Terms and conditions • Upfront review of cash information, • Level of down payment now stabilised from the anticipation phase • Regular meetings during project execution  Design to cash actions such as: •

  54. Slide 54: Environmental excellence

    4 Environmental excellence  Improve our environmental footprint • Continue our efforts on energy saving, waste and CO2 ENERGY INTENSITY REDUCTION BY 10% • ISO 14001 for all operational units with more than 200 people  Improve energy consumption for solution • Better sizing and energy consumption m

  55. Slide 55: A strategy based on 5 pillars

    A strategy based on 5 pillars 1 CUSTOMER-FOCUSED ORGANISATION 2 COMPLETE RANGE OF SOLUTIONS 3 VALUE CREATION THROUGH INNOVATION 4 OPERATIONAL AND ENVIRONMENTAL EXCELLENCE 5 DIVERSE AND ENTREPRENEURIAL PEOPLE ALSTOM – 30/03/2016 – P 55 © ALSTOM 2016. All rights reserved. Information contained in this

  56. Slide 56: A culture based on diversity & entrepreneurship

    5 A culture based on diversity & entrepreneurship  Diversity in terms of gender, generation, nationality, social and cultural background…  Training plans, development programs… 25% WOMEN IN A MANAGEMENT OR PROFESSIONAL ROLE APAC 10% Europe Americas 50% FOR MIDDLE MANAGEMENT AND TALENT POOL, 25% NA

  57. Slide 57: Sharing a common culture of ethics and values

    Sharing a common culture of ethics and values  Ethics & Compliance (E&C) • Certified procedures • A Code of Ethics and an Integrity Programme applicable to each and every employee around the world  Team, Trust and Action ALSTOM – 30/03/2016 – P 57 © ALSTOM 2016. All rights reserved. Information co

  58. Slide 58: 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

  59. Slide 59: Organic growth boosted by small to mid-size selective acquisitions

    Organic growth boosted by small to mid-size selective acquisitions  International targets acquisition: 1 • Small add-ons acquisitions to nurture and strengthen Drive international expansion regional strategy • Mid-size deals to reach critical size for full deployment of global strategy 2 Develop pr

  60. Slide 60: GE signalling integration underway

    GE signalling integration underway  Overview  Integration since 2 Nov. 2015, well anticipated: • Provider of signalling products and solutions, both • Business continuity: no disruption freight (60%) and passenger (40%) (customers, suppliers, employees) • Benefits: access to freight signalling mar

  61. Slide 61: Agenda: Alstom financials

    Agenda 1 Introduction 2 Railway market overview 3 Alstom 2020 strategy 4 Alstom financials 5 Conclusion 6 Signalling & Villeurbanne site ALSTOM – 30/03/2016 – P 61 © ALSTOM 2016. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or

  62. Slide 62: Sales evolution

    Sales evolution Sales (in €bn) 5% annual organic growth 6.2 FY 14/15 FY 15/16 FY 16/17 FY 17/18 FY 18/19 FY 19/20 Secured sales Current backlog of c.€30bn providing strong visibility on future sales ALSTOM – 30/03/2016 – P 62 © ALSTOM 2016. All rights reserved. Information contained in this document

  63. Slide 63: Progressive margin improvement

    Progressive margin improvement Adjusted EBIT margin (in % of sales) Volume/Price  Cost absorption driven by solid top-line growth c. 7%  Partly offset by price dynamics and competitive Excellence Footprint environment Sourcing 5.0% Portfolio mix  Growth towards more profitable activities  Servic

  64. Slide 64: EPS normalising over the period

    EPS normalising over the period Core EPS Legacy costs  EPS impacted by legacy costs derived by GE transaction  Legacy costs include IS&T costs, legacy gross debt costs, tax rate normalisation period  Afterwards, EPS evolution expected to be in line with Alstom top-line performance and margin expa

  65. Slide 65: Cash conversion objective

    Cash conversion objective 2016/17 2017/18 2018/19 2019/20  Short-term impact of legacy cash-out and transformation capex  Working capital stabilised  Possible volatility on short periods  Key focus with strong management actions in place Core free cash flow Legacy cash-out Transformation capex c

  66. Slide 66: Financial capabilities well-geared for transformation strategy

    Financial capabilities well-geared for transformation strategy Solid balance sheet Rigorous financing policy  Strong equity and liquidity position  No vendor financing to sustain 2020 objectives  Export credit agencies to support  Bonding lines secured to support commercial efforts commercial am

  67. Slide 67: Agenda: Conclusion

    Agenda 1 Introduction 2 Railway market overview 3 Alstom 2020 strategy 4 Alstom financials 5 Conclusion 6 Signalling & Villeurbanne site ALSTOM – 30/03/2016 – P 67 © ALSTOM 2016. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or

  68. Slide 68: 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

  69. Slide 69: Agenda: Signalling & Villeurbanne site

    Agenda 1 Introduction 2 Railway market overview 3 Alstom 2020 strategy 4 Alstom financials 5 Conclusion 6 Signalling & Villeurbanne site ALSTOM – 30/03/2016 – P 69 © ALSTOM 2016. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or

  70. Slide 70: Signalling overview

    Signalling overview  Key Data  Highlights • 7,000 employees in 14 regional centers • Extensive portfolio for urban and mainline, both passenger and freight • Leader in interlocking installed base • Solid references and proven reliability • Leader in ERTMS wayside and train borne • 79 metro lines w

  71. Slide 71: A complete range of signalling solutions

    A complete range of signalling solutions  An extensive product portfolio serving urban and mainline (freight & passengers) TRAIN CONTROL ROUTE CONTROL SECURITY AND CONTROL Track side On-Board Interlocking Track side Products Control Centres Security (ATS, SCADA) Passenger Informat. Public address T

  72. Slide 72: Urban signalling: Improving network safety & fluidity

    Urban signalling: Improving network safety & fluidity  Urban • Urbalis: signalling solution for higher capacity with minimal headway - 25% of all radio CBTC solutions in operation • Tempo CBTC Lausanne Metro - Urbalis  Telecom, security & control • Pacis security centres (stations, tracks, tunnels

  73. Slide 73: Main line signalling for passengers and freight lines

    Main line signalling for passengers and freight lines  ERTMS proven solution: Atlas • 100% interoperable trains • #1 worldwide with 70% of on-board equipment in service  Positive Train control solution: ITCS  Telecom, security and control • Iconis scalable & modular control centre solution Atlas

  74. Slide 74: Case study: Albacete-Alicante

    Case study: Albacete-Alicante  Scope • 22 years design, build, finance and maintain contract • Alstom supplying ERTMS level 2 and signalling for 165km line High Speed Line for Madrid-Castilla, La Mancha-Murcia  Status and Valencia regions • Contract signed in 2011, in service in 2013 Albacete-Alic

  75. Slide 75: Villeurbanne: Key facts

    Villeurbanne: Key facts  880 permanent employees  100,000 finished goods delivered each year  22,000 electronics products realized every year for Services activity  More than 40 R&D programs  600 products in our catalogue  A new building since August 2015 ALSTOM – 30/03/2016 – P 75 © ALSTOM 20

  76. Slide 76: Villeurbanne: Our products – On-board electronic systems

    Villeurbanne: Our products On-board electronic systems On-board IT (TCMS) Passengers information Driver monitor Traction controller TrainTracer Auxiliary converter controller ALSTOM – 30/03/2016 – P 76 © ALSTOM 2016. All rights reserved. Information contained in this document is indicative only. No

  77. Slide 77: Villeurbanne: Our products – Signalling systems

    Villeurbanne: Our products Signalling systems Automatic Train Control Driver monitor Juridical recorder (Black box) 2003 calculator Accelerometer Trainborne Radio Wheel sensor Eurobalise Antenna Radar Eurobalise Trackside Encodeur (LEU) ALSTOM – 30/03/2016 – P 77 © ALSTOM 2016. All rights reserved.

  78. Slide 78: Villeurbanne: Activities

    Villeurbanne: Activities Development center for Systems and Products Industrial excellence center Projects Services and repairs center ALSTOM – 30/03/2016 – P 78 © ALSTOM 2016. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or s

  79. Slide 79: www.alstom.com

    www.alstom.com ALSTOM eae tt

  80. Slide 80: Orders backlog

    Annexes Orders backlog Breakdown as of end Sept. 2015 Asia Pacific Systems 7% 15% Americas 12% Signalling 12% Europe Trains 50% 39% Middle East & Africa 31% Services 34% ALSTOM – 30/03/2016 – P 80 © ALSTOM 2016. All rights reserved. Information contained in this document is indicative only. No repre

  81. Slide 81: Orders & Sales geographic breakdown

    Annexes Orders & Sales geographic breakdown Orders received by destination (in €m) FY 2013/14 FY 2014/15 H1 2015/16 9M 2015/16 Total 6,148 10,046 3,897 6,255 Europe 2,543 2,811 1,417 3,260 Americas 1,459 980 834 1,080 Asia Pacific 381 1,141 602 886 Middle-East & Africa 1,765 5,114 1,044 1,029 Sales

  82. Slide 82: Orders & Sales product breakdown

    Annexes Orders & Sales product breakdown Orders received by destination (in €m) FY 2013/14 FY 2014/15 H1 2015/16 9M 2015/16 Total orders 6,148 10,046 3,897 6,255 Trains 1,693 4,968 1,643 3,122 Services 1,510 2,425 780 1,150 Systems 2,319 1,386 524 887 Signalling 608 1,264 949 1,095 Other 18 3 1 1 Sa

  83. Slide 83: Adjusted EBIT definition

    Annexes Adjusted EBIT definition Adjusted EBIT (in €m) Rationale % Sales 4.5% 4.8% 5.0%  New KPI to align with market practice Definition  Adjusted EBIT corresponds to Earning Before Interests, Tax and Net Result from Equity Method 299 Investments adjusted with: 257 • Net restructuring expenses •

  84. Slide 84: Income statement

    Annexes Income statement (in €m) FY 2013/14 FY 2014/15 H1 2015/16 Sales 5,726 6,163 3,303 Adjusted EBIT 257 299 166 Adjusted EBIT % 4.5% 4.8% 5.0% Restructuring (48) (106) (14) Assets impairment (20) (54) (78) Capital gains/losses - - 37 Other exceptional (27) (760) (10) EBIT 162 (621) 101 Financial

  85. Slide 85: Energy JVs

    Annexes Energy JVs GRID RENEWABLE POWER NUCLEAR & FRENCH STEAM Share in capital 50% - 1 share 50% - 1 share 20% - 1 share* c. €0.6bn c. €0.1bn Acquisition price c. €1.7bn  For 3 months after the 5th and 6th anniversaries of the joint venture**  Sept. 2018 or Sept. 2019 *** Liquidity rights  Exit

  86. Slide 86: www.alstom.com

    www.alstom.com ALSTOM eae tt

Alstom — Investor Day (March 2016) on 6ix