Alstom Sa · EURONEXT:ALO
Alstom Sa — FY2021/22 Earnings Presentation
48 slides from Alstom Sa's earnings presentation, May 11, 2022
Slide 1: Full Year Results Fiscal Year 2021/22
Full Year Results Fiscal Year 2021/22 11 May 2022
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 relevant to the current scope of activity and are by their nature subject to a number of important risks and uncertainty facto
Slide 3: Agenda
Agenda FY 2021/22 Highlights Henri Poupart-Lafarge, Chairman and CEO ――――――――――――――――――――――――――――――――――――――――――――――――――――――――――――――――――― Business Update Henri Poupart-Lafarge, Chairman and CEO ――――――――――――――――――――――――――――――――――――――――――――――――――――――――――――――――――― Financial Results Laurent M
Slide 4: FY 2021/22 Highlights
1 FY 2021/22 Highlights Henri Poupart-Lafarge Chairman and CEO
Slide 5: FY 2021/22 targets achieved
FY 2021/22 targets achieved ORDER ● Solid order intake reflecting the enlarged group momentum, with a book-to-bill at 1.25. €19.3bn INTAKE Backlog now at a record €81bn. ● Sales increase by +11% compared to last year proforma and by +7.9% H2 2021/22 vs H1 €15.5bn SALES 2021/22. aEBIT ● aEBIT progres
Slide 6: … while managing macro-environment headwinds
… while managing macro-environment headwinds INFLATION ● No material impact in FY 2021/22 financial results ELECTRONICS ● No material impact in FY 2021/22 financial results SHORTAGES ● Very limited direct exposure to Russia and to Ukraine RUSSIA ● Non-cash impairment charge of the 20% stake in TMH i
Slide 7: Successful first year integrating Bombardier Transportation
Successful first year integrating Bombardier Transportation 8.1 Very robust commercial momentum and high customer satisfaction NPS¹ for Backlog execution delivered as per target Top 100 Customers 80% One Alstom team: Global key processes and IT tools convergence on track Key global processes converg
Slide 8: Business Update
2 Business Update Henri Poupart-Lafarge, Chairman and CEO
Slide 9: Rail clearly positioned as emitting the least carbon and energy
Rail clearly positioned as emitting the least carbon and energy, supporting long term sustainable growth TRAIN CONSUMES THE LEAST ENERGY1 ANNOUNCEMENTS SUPPORTING AND EMITS THE LEAST CO2² MODAL SHIFT TO RAIL ⏹ Average energy consumption in Megajoules per passenger kilometer 1.8 1.8 ⏹ Average grams o
Slide 10: Acceleration of market momentum with >€180bn of selected opportunities
Acceleration of market momentum with >€180bn of selected opportunities actively pursued until FY 2024/25 ALSTOM SITES €100bn SIGNALLING SYSTEMS EUROPE ROLLING STOCK €35bn AND COMPONENTS AMERICAs EUROPE: €58bn rail investments backed by EU Next Gen Large tenders CANADA for rolling stock €26bn Large s
Slide 11: Leadership position – Clear enabler to our growth strategy and market share
Leadership position – Clear enabler to our growth strategy and market share ROLLING STOCK: #1 in Rolling Stock (excluding China) SERVICES: Undisputed #1 with high potential of growth SIGNALLING: #2 in a market under consolidation TURNKEY: #1 System provider with strong growing demand Leveraging uniq
Slide 12: Very solid order intake driven by large orders across all product lines
Very solid order intake driven by large orders supporting growth trajectory across all product lines ORDERS FY 2021/22 (in €bn) +33% 19.3 19.3 AMECA 0.3 2.6 Signalling 2.3 4.0 2.7 APAC Systems 4.2 19.3 Americas Services 14.5 Europe 12.7 9.8 Rolling stock FY 2020/21 proforma FY 2021/22 FY 2021/22 FY
Slide 13: Main contracts in H2 2021/22
Main contracts in H2 2021/22 €9.5 BILLION OF ALSTOM ORDERS BOOKED IN H2 €1.1 bn €0.2bn €0.4 bn HS2 (VERY HIGH SPEED & SERVICES - UK) DALLAS (OPERATION & MAINTENANCE - US) CORADIA NORDIC (REGIONAL - Norway) €0.3 bn €0.3 bn CORADIA EMUs (EMUs & SERVICES - Romania) KINZIGTAL (DOUBLE DECK – Germany) DUB
Slide 14: Sales ramp-up with focus on Rolling Stock projects stabilisation
Sales ramp-up with focus on Rolling Stock projects stabilisation and usual seasonality H2 vs H1 SALES FY 2021/22 (in €bn) +11% +7.9% 15.5 7.4 8 14 FY 2020/21 proforma FY 2021/22 H1 2021/22 H2 2021/22 PRODUCT LINE H2 2021/22 SALES SIGNALLING: €1,186m (+10% vs H1 2021/22) ROLLING STOCK: €4,362m (+2% v
Slide 15: Significant progress in delivery and commercial settlement of legacy projects
Significant progress in the delivery and commercial settlement of legacy projects NON-PERFORMING SALES OVER THE PERIOD UPDATES DURING Q4 2021/22 ON LEGACY PROJECTS ● Technical issues: solutions agreed with customers ● Production resumed ● Trains acceptance process resumed FY Sales FY Sales 2021/22¹
Slide 16: Major milestones in our smarter and greener mobility innovation roadmap
Major milestones in our smarter and greener mobility innovation roadmap KEEPING THE EDGE ENHANCING PAVING THE WAY IN ZERO EMISSION SOLUTION PASSENGER COMFORT TO FULL AUTONOMY BY 2023 ● Partnership to decarbonate ● PEPA™ filter, an antiviral HVAC filter ● Semi-autonomous operation freight with an H2
Slide 17: Business model serving EU's ambitious goal of carbon neutrality by 2050
Business model serving EU’s ambitious goal of carbon neutrality by 2050 RECORD LEVEL OF ELIGIBILITY AS PER EU TAXONOMY¹ Sales 99%² OpEx 99%² CapEx 99%² High eligibility reflects the importance of the Group’s activities for sustainable mobility 1. The EU Taxonomy regulation (Regulation (EU) 2020/852)
Slide 18: ESG commitments confirmed and extended
ESG commitments confirmed and extended KPIs March 2022 March 2025 ENABLING ● Energy reduction in solutions1 22% 25% decarbonisation ● Electricity supply from renewables 42% 100%2 of mobility ● Total recordable injury rate 2.3 2 CARING ● Women in management, engineering & professional role 23.2% 28%
Slide 19: Financial Results
3 Financial Results Laurent Martinez CFO
Slide 20: aEBIT benefits from growth, improved Gross margin and controlled S&A
aEBIT benefits from growth, improved Gross margin and controlled S&A H1 H2 FY (in € million) 2021/22 2021/22 2021/22 Sales 7,443 8,028 15,471 ● Strong sales growth by 7.9% H2 Cost of Sales (6,494) (6,829) (13,323) vs H1 2021/22 Adjusted Gross Margin before PPA¹ 949 1,199 2,148 ● Gross Margin improve
Slide 21: Net Profit reflecting transformation efforts and TMH non-cash impairment charge
Net Profit reflecting, as announced, transformation efforts and TMH non-cash impairment charge (in € million) H1 2021/22 H2 2021/22 FY 2021/22 ● Restructuring and rationalisation : Sales 7,443 8,028 15,471 Adjusted EBIT 335 432 767 Germany transformation plan €(105)m Aptis severance costs €(16)m
Slide 22: Positive Free Cash Flow in H2 2021/22
Positive Free Cash Flow in H2 2021/22 H2 2021/22 From EBIT to Free Cash Flow (in € million) FCF Other ● Positive FCF in H2 2021/22 as targeted Working capital change driven by delivery ramp-up and down-payments flow D&A Restr. Provision variation Industrial capex in line with 2% over sales R&D c
Slide 23: Net debt evolving mainly with Free Cash-Flow consumption / generation
Net debt evolving mainly with Free Cash-Flow consumption / generation (in € million) 31 March 2021 30 September 2021 31 March 2022 Net cash/(debt) Net cash/(debt) Net cash/(debt) FCF FCF Others Others © ALSTOM SA 2022. All rights reserved. Information contained in this document is indicative only. N
Slide 24: 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) 31 March 2021 31 March 2022 5,060 750 4,500 700 700 500 Undrawn credit lines refinanced in Jan 221 3,250 4,250 Cash & Cash equivalent 1,250 810 Maturity Oc
Slide 25: H2 2021/22 results delivered as per target
H2 2021/22 results delivered as per target, marked by solid performance and supported by usual seasonality €9,536m €8,028m 5.4% + €469m H2 2021/22 results ORDER INTAKE SALES aEBIT MARGIN FREE CASH FLOW Book-to-bill +7.9% +0.9pp Vs €(1,461)m 1.25 vs H1 2021/22 vs H1 2021/22 in H1 2021/22 + + + SUPPLY
Slide 26: Trajectory and outlook
4 Trajectory and outlook Laurent Martinez CFO Henri Poupart-Lafarge Chairman and CEO
Slide 27: Sales trajectory confirmed as per guidance
Sales trajectory confirmed as per guidance SALES (IN € BILLION)¹ FY 2022/23 DRIVERS > 5% CAGR ROLLING STOCK: Market growth despite remedies impact FY 2020/21 to FY 2024/25 SERVICES: Market growth after exceptional 2021/22 14 15.5 SIGNALLING: High single digit growth FY 2020/21 FY 2021/22 FY 2022/23
Slide 28: Majority of sales from new orders from FY 2023/24 onwards
Majority of sales from new orders from FY 2023/24 onwards, while legacy backlog is being executed €15.5bn Quality of order intake Sales from new orders ● Tenders selectivity in a very dynamic market - booked since April 21 ● Rigorous application of Alstom tender rules ● Order intake in FY 2021/22 su
Slide 29: Inflation parameters and mitigation actions
Inflation parameters and mitigation actions High inflation in 2022, assuming to normalize in 2023 and onwards1 COST STRUCTURE3 Purchases without 65% of backlog covered by contract price adjustment2 clauses raw material 60% of revenue in FY2022/23 immune from inflation Suppliers: 70% with esc
Slide 30: Profitability bridge FY 2021/22 to FY 2024/25
Profitability bridge FY 2021/22 to FY 2024/25 FY 2022/23 DRIVERS aEBIT (in %)¹ ● Positive from volume growth and synergies ramp-up ● Comparable level of sales at zero Gross Margin 8-10% ● Inflation impact ● Progressive aEBIT recovery in FY 2022/23 Synergies FY 2024/25 DRIVERS 5% Margin ● Volume - So
Slide 31: Synergies on-track and run-rate target uplifted to €475–500m
Synergies on-track and run-rate target1 uplifted to €475 – 500m from FY 2025/26 onwards SYNERGIES RUN RATE (IN € MILLION)² 2025/26 SOURCES OF UPLIFT 475-500 BONDS FINANCING 400 ● Incremental industrial PROCUREMENT SYNERGIES efficiency and best REAL ESTATE use of products through massification MANAGE
Slide 32: Working capital stabilizing on better visibility of ex-BT backlog
Working capital stabilizing on the back of better visibility of ex-BT backlog and rigorous order intake (IN € BILLION)¹ FY 2020/21 FY 2021/22 FY 2022/23 FY 2023/24 FY 2024/25 Working Capital without provisions ● Major evolution during H1 2021/22 due to: Suppliers overdues and terms of payment norm
Slide 33: Alstom financial trajectory consistent with solid Investment Grade rating
Alstom financial trajectory consistent with solid Investment Grade rating DELEVERAGE LEVERS NET DEBT (€ MILLION) ● Net debt - FCF generation towards > 80% Cash conversion - Rigorous Working capital management - Controlled Capex and M&A 2,085 - Balanced dividend policy FY 2021/22 ● Profit - Top line
Slide 34: Key priorities for FY 2022/23
Key priorities for FY 2022/23 GROW DELIVER ● Selectivity on order intake supported by market ● Mitigate supply chain shortages and C19 / China momentum lockdowns ● Rigorous tender process ● Adapt to new inflation environment ● Finalize stabilisation of the legacy backlog execution ● Pursue quality d
Slide 35: Financial trajectory confirmed
MARKET SHARE Mid-term 2024/25 +5pp 1 Financial trajectory confirmed targets confirmed SALES CAGR FY 2022/23 OUTLOOK >5%2 aEBIT ● Sales growth supported by solid order backlog and Book to bill above 1 8-10%3 ● Progressive aEBIT margin increase vs FY 2021/22 through healthy order intake and sound back
Slide 36: Contacts & Agenda
Contacts & Agenda CONTACTS AGENDA Martin VAUJOUR 11 May 2022 at 15:30 (CET) VP Investor Relations Alstom Investor Day Claire LEPELLETIER 12 July 2022 Deputy Head Investor Relations Shareholders’ assembly 19 July 2022 investor.relations@alstomgroup.com Q1 FY 2022/33 © ALSTOM SA 2022. All rights reser
Slide 37: Appendix
Rai o S ® 2. Q <x if i HT abd aaaia aaa aa siti f ALSTOM
Slide 38: FY 2021/22 Sales per regions and product lines
FY 2021/22 Sales per regions and product lines Sales breakdown per regions (in € million) Sales breakdown per product line (in € million) Systems €1,155m Asia Pacific €2,172m 7% 14% Signalling €2,263m 15% Americas €2,563m Europe €9,584m 17% 62% Rolling stock €8,647m Services €3,406m 56% 22% Africa,
Slide 39: FY 2021/22 backlog per regions and product lines
FY 2021/22 backlog per regions and product lines Backlog breakdown per regions (in € million) Backlog breakdown per product line (in € million) Systems €6,282m Asia Pacific 8% Signalling Americas €11,622m €13,116m 14% €7,110m 16% 9% Africa, Middle East & Europe Services Central Asia €12,073m €44,202
Slide 40: Equity in € million
Equity in € million 9,024 * 9,117 9,024 9,117 Movements in other Net income Dividends Capital increase Other March 2022 March 2021 comprehensive income *capital increase by issuance of new shares linked with scrip dividend © ALSTOM SA 2022. All rights reserved. Information contained in this document
Slide 41: Evolution of main balance sheet aggregates as of 31 March 2022
Evolution of main balance sheet aggregates as of 31 March 2022 (in € million) FY 2021/22 FY 2020/21 Evolution Goodwill 9,368 9,200 168 Tangible & Intangible assets 5,552 5,350 202 Investments in joint-ventures, 1,258 1,543 (285) associates & non conso investments Other non-current assets 644 435 209
Slide 42: Bridge consideration – From Enterprise Value to Equity Value
Bridge consideration – From Entreprise Value to Equity Value (in € million) FY 2021/22 Total Gross debt, incl. lease obligations (1) 3 539 Pensions liabilities net of prepaid and deferred tax asset related to pensions (2) 803 Non controlling interest (3) 113 Cash and cash equivalents (4) (810) Other
Slide 43: Bombardier Transportation PPA provisional amortisation plan
Bombardier Transportation PPA provisional amortisation plan As per P&L (in € million) Booking 1 FY 2020/21 (71) ● The PPA amortisation plan will be subject to FX evolution in future years or subject to potential impairments FY 2021/22 (428) FY 2022/23 (398) ● Refer to Note 1.1.1 for explanations on
Slide 44: Reconciliation between consolidated income statement and MD&A view, March 2022
Reconciliation between consolidated income statement and the MD&A management view as of 31 March 2022 (in € million) Tota l Ajustments Tota l Con s olida ted Con s olida ted Fin a n cia l Fin a n cia l Sta tem en ts (1) (2) (3) (4) Sta tem en ts Adjustments as of 31 March 2022: (GAAP) (MD&A view) 31
Slide 45: Reconciliation between consolidated income statement and MD&A view, March 2021
Reconciliation between consolidated income statement and the MD&A management view as of 31 March 2021 (in € million) Tota l Ajustments Tota l Consolida ted Consolida ted Fina ncia l Fina ncia l Sta tem ents (1) (2) (3) (4) Sta tem ents (GAAP) (MD&A view) Adjustments as of 31 March 2021: 31 March 202
Slide 46: Non-GAAP financial indicators definitions (1/2)
Appendix - Non-GAAP financial indicators definitions (1/2) This section presents financial indicators used by the Group that are not defined by accounting standard setters. • Orders received A new order is recognised as an order received only when the contract creates enforceable obligations between
Slide 47: Non-GAAP financial indicators definitions (2/2)
Appendix 1 - Non-GAAP financial indicators definitions (2/2) . ● Adjusted EBIT Adjusted EBIT (“aEBIT”) is the Key Performance Indicator to present the level of recurring operational performance. This indicator is also aligned with market practice and comparable to direct competitors. Starting Septem
Slide 48: www.alstom.com
www.alstom.com www.alstom.com