Alstom Sa · EURONEXT:ALO
Alstom Sa — Kepler Cheuvreux Autumn Conference 2017
24 slides from Alstom Sa's conference presentation, Sep 15, 2017
Slide 1: Alstom Presentation
Alstom Presentation Henri Poupart-Lafarge, Chairman & CEO Kepler Cheuvreux Autumn Conference, 15 September 2017
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: A dynamic market with solid long-term drivers
A dynamic market with solid long-term drivers URBANISATION GOVERNMENTAL FUNDING SUSTAINABLE DEVELOPMENT ECONOMIC GROWTH Market size in 2016/18 Market worth more than €110bn (+ 3.2%) €51bn Solid growth drivers €31bn Market driven by urban & integrated €18bn systems €10bn Significant growth in
Slide 4: 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 5: Customer-focused organisation
Customer-focused organisation Continued strong commercial performance Orders (in € billion) €10bn orders during third year in a row • 2014/15: PRASA project in South Africa (c. €4bn) 10.0 10.6 10.0 • 2015/16: India eLocos project (c. €3.2bn) • 2016/17: High-speed trains and services for Amtrak, Du
Slide 6: Customer focused organisation: Leader on all continents
Customer focused organisation Leader on all continents 32,800 employees working on 105 sites in 60 countries serving 2016 rankings (1) 200 customers AMERICAS #1(2) EUROPE EUROPE #2(3) AMERICAS 20,700 EMPLOYEES MIDDLE EAST 5,200 EMPLOYEES AFRICA ASIA PACIFIC MIDDLE EAST AFRICA #2 4,000 2,900 EMPL
Slide 7: Complete range of solutions
Complete range of solutions Systems, signalling and services to represent around 60% of sales by 2020 Sales (in € billion) Rolling stock: roughly stable • Rolling stock deliveries in Europe 6.3 6.9 7.3 • On-going execution of PRASA project +5% Systems: +88% over 2 years +7% • Deliveries of urban
Slide 8: Value creation through innovation
Value creation through innovation Sustained level of R&D R&D gross costs (in € million) Main R&D programmes As % of sales Renewal of rolling stock ranges Signalling programmes Predictive maintenance 248 226 3.3% 3.4% 2015/16 2016/17 The new generation of Coradia regional trains ALSTOM – 15 Sep
Slide 9: Value creation through innovation
Value creation through innovation New innovations for smarter mobility Coradia iLint, hydrogen train, with a first Aptis, a new 100% electric experience of successful run at 80 km/h mobility Mastria, the first multimodal supervision Nomad Digital, acquisition of the world solution leader of
Slide 10: Operational excellence
Operational excellence Continued strong operational performance Adjusted EBIT (in € million) Volume increase As % of sales Portfolio mix improvement +15% On-going initiatives for operational +23% 421 excellence 366 298 5.8% 5.3% 4.8% 2014/15 2015/16 2016/17 % change reported ALSTOM – 15 Septem
Slide 11: Operational excellence: Solid project execution
Operational excellence Solid project execution eLoco project, India PRASA project, South Riyadh project, Saudi Arabia • First batch of design submitted Africa • First train delivered on-time from to customer in February 2017 • 17 trains in commercial service Katowice, Poland in Feb. 2017 (deli
Slide 12: Conclusion
Conclusion A 2020 strategy leading to sound results A solid balance sheet Resuming dividends in 2016/17 2020 objectives confirmed: 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 – 15
Slide 13: Q&A
Q&A ALSTOM – 15 September 2017 – P 13 © ALSTOM 2017. 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
Slide 14: www.alstom.com
www.alstom.com ALSTOM rarer es
Slide 15: Customer-focused organisation
Appendix: Customer-focused organisation Orders (in € billion) Backlog (in € billion) 10.6 10.0 0.6 4.1 1.4 1.1 2.9 1.3 30.4 34.8 4.2 5.1 2015/16 2016/17 2015/16 2016/17 Europe Americas MEA Asia Pacific Backlog breakdown as end of March 2017 10.6 10.0 1.8 2.0 1.4 1.0 1.0 Asia Pacific Europe Systems 1
Slide 16: A complete range of transport solutions
Appendix: A complete range of transport solutions % of 2016/17 sales Tram, metro, suburban/regional, high speed, very high speed, locomotive E-bus 43% ROLLING STOCK Components: traction, bogie, motor Signalling solutions portfolio for urban, main line, freight and mining and digital mobility
Slide 17: 2016/17 key figures
Appendix: 2016/17 key figures % change % change In € million 2015/16 2016/17 reported organic Backlog 30,363 34,781 15% 9% Orders 10,636 10,008 (6)% (6)% Sales 6,881 7,306 6% 5% aEBIT 366 421 15% aEBIT margin 5.3% 5.8% Net income – Group share 3,001 289 Free cash flow (2,614) 182 Net cash/(debt) (20
Slide 18: Income statement
Appendix: Income statement % change % change In € million FY 2015/16 FY 2016/17 reported organic Sales 6,881 7,306 6% 5% Adjusted EBIT 366 421 15% Adjusted EBIT margin 5.3% 5.8% Restructuring charges (138) (6) Other charges (454) (57) EBIT (226) 358 Financial result (275) (127) Tax result (597) (76)
Slide 19: Free cash flow
Appendix: Free cash flow In € million FY 2015/16 FY 2016/17 Cash Focus programme Adjusted EBIT 366 421 impact Several large down-payments Depreciation & amortisation 138 132 Restructuring cash-out (61) (49) Volatility on short period Capex (154) (150) Phasing of transformation R&D capitalisa
Slide 20: Capex developments
Appendix: Capex developments Progressive ramp up of transformation capex Capex* (in € million) 154 150 4 47 150 103 2015/16 2016/17 South Africa: on-going site construction Capex Transformation Capex * excluding capitalised development costs New sites to meet customers’ growing demand for a local pr
Slide 21: Liquidity and gross debt
Appendix: Liquidity and gross debt In € million Liquidity position Liquidity 2,361 €1,563m cash and cash equivalents as of 31 March 2017 1,963 €400m revolving credit facility ; fully undrawn Flexibility with Energy JVs put options Mar-16 Mar-17 Undrawn credit line Gross cash In € million Gross
Slide 22: Strong balance sheet
Appendix: Strong balance sheet In € million Net cash/(debt) In € million Equity 3,713 128 (32) (203) 289 (171) (208) 182 3,328 (16) Mar-16 FCF Acq. & disposals* Forex & other Mar-17 Mar-16 Net income Pensions Forex & other Mar-17 * includes GE related separation impact (e.g. IS&T) ALSTOM – 15 Septem
Slide 23: Q1 2017/18 Orders
Appendix: Q1 2017/18 Orders Orders by region Orders by products (in € billion) (in € billion) 1.9 1.9 0.4 0.4 0.2 0.1 0.3 0.9 0.8 0.9 0.2 0.0 0.4 0.3 1.0 0.2 0.6 0.0 0.4 0.3 Q1 2016/17 Q1 2017/18 Q1 2016/17 Q1 2017/18 Europe Americas MEA Asia Pacific Trains Systems Signalling Services ALSTOM – 15 Se
Slide 24: Q1 2017/18 Sales
Appendix: Q1 2017/18 Sales Sales by region Sales by product (in € billion) (in € billion) 1.9 1.9 1.7 1.7 0.2 0.2 0.4 0.4 0.2 0.3 0.3 0.3 +5% +5% 0.3 0.3 % organic growth 0.4 0.2 1.1 1.0 0.8 0.8 Q1 2016/17 Q1 2017/18 Q1 2016/17 Q1 2017/18 Europe Americas MEA Asia Pacific Trains Systems Signalling Se