Alstom Sa · EURONEXT:ALO
Alstom Sa — H1 2019/20 Earnings Presentation
34 slides from Alstom Sa's earnings presentation, Nov 6, 2019
Slide 1: Half year results Fiscal Year 2019/20
Half year results Fiscal Year 2019/20 6 November 2019
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: Agenda
Agenda 1. H1 2019/20 highlights 2. Alstom in Motion and business update 3. H1 2019/20 financial results 4. Conclusion © ALSTOM SA, 2019. 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 o
Slide 4: H1 2019/20 highlights
1 H1 2019/20 highlights © ALSTOM SA, 2019. 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 comme
Slide 5: H1 2019/20 key messages
H1 2019/20 key messages Positive commercial momentum with orders at €4.6bn supported by large wins in Europe Pursued sales growth at +3% (+2% organic) in the context of an expected slowdown in systems Continuous improvement of adjusted EBIT margin reaching 7.7% driven by volume and operational effic
Slide 6: H1 2019/20 key figures
H1 2019/20 key figures1 ORDERS SALES aEBIT2 in €bn in €bn in €m +2% 7.7% 330 Organic* +5% 320 TGV du Futur 7.5% 310 for €2.8bn 300 290 7.1 4.1 319 4.0 303 280 4.6 270 260 250 H1 2018/19 H1 2019/20 H1 2018/19 H1 2019/20 H1 2018/19 H1 2019/20 *+3% reported FREE CASH FLOW NET INCOME – EPS from continue
Slide 7: Alstom in Motion and business update
2 Alstom in Motion and business update © ALSTOM SA, 2019. 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 tech
Slide 8: Our Alstom in Motion strategic plan for 2019 – 2023
Our « Alstom in Motion » strategic plan for 2019 – 2023 GROWTH INNOVATION EFFICIENCY, by offering in smarter and powered by greater value greener mobility digital to our customers solutions Driven by One Alstom team, Agile, Inclusive and Responsible © ALSTOM SA, 2019. All rights reserved. Informatio
Slide 9: A positive OEM market, with dynamic signals coming from Europe
GROWTH A positive OEM market, with dynamic signals coming from Europe Global rail OEM market, in € Bn CAGR New announcements of investments from +3.0% European operators to match growth in rail passenger traffic LATAM Uncertain momentum 125 ● +5.9% rail passenger transport in Europe on H1 2019 vs H1
Slide 10: Positive order intake of €4.6bn
GROWTH Positive order intake of €4.6bn ● Mainly fuelled by Rolling Stock and Services in Orders (in € billion) Europe 7.1 ● Foreseen low orders in Systems in the context of the 0.9 0.2 4.6 macro economic situations of MEA and LAM 1.7 0.1 0.3 0.4 ● Book-to-bill at 1.1x 4.3 ● Leading to a record backl
Slide 11: Sales growth in line with projected phasing and fuelled by Rolling Stock and Signalling
GROWTH Sales growth in line with projected phasing and fuelled by the delivery of Rolling Stock and Signalling projects Sales (in € billion) c.9% organic growth Regional trains in Europe (mainly France, 4.0 4.1 Germany and Italy) 0.5 +2% 0.5 0.7 Ramp-up of Amtrak and Prasa projects 0.9 Rolling S
Slide 12: Strategic green and smart mobility orders in H1 2019/20
INNOVATION Strategic green and smart mobility orders in H1 2019/20 Hydrogen train APTIS ebus ERTMS3 for Paris Lyon high speed line ● Second Ilint hydrogen train contract in ● Already 85 buses sold to 5 ● 500km of lines equipment of Germany (360M€), following first successful French cities (Paris, La
Slide 13: AiM efficiency programmes being deployed to support margin improvement
EFFICIENCY AiM efficiency programmes being deployed to support margin improvement Adjusted EBIT1 (in € million) ● Digital transformation 7.7% 70% of company turnover covered by group core model SAP solution, deployment to be completed by 2021/22 7.5% aEBIT margin Smart operations program coverin
Slide 14: Alstom gains strong ESG recognition this half year
Alstom gains strong ESG recognition this half year ● June 2019: Alstom attains global ISO 37001 anti-bribery certification ● September 2019: Included in the Dow Jones Sustainability Indices (DJSI), World and Europe for the ninth consecutive Enabling Caring decarbonisation year, part of the top 4% as
Slide 15: H1 2019/20 Financial Results
3 H1 2019/20 Financial Results © ALSTOM SA, 2019. 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 an
Slide 16: Income statement
Income statement (in € million) H1 2019/20 H1 2018/191 ∆% ∆% Org. Sales 4,140 4,010 +3% +2% Adjusted EBIT2 319 303 +5% Adjusted EBIT margin 7.7% 7.5% Restructuring charges (7) (34) Other items (31) (50) EBIT 281 219 +28% Financial results (40) (46) Tax results (61) (12) Share in net income of equity
Slide 17: Strong normalized net income though several one-off items last year
Strong normalized net income though several one-off items last year Change in Net income – continued operations (in € million) 6 318 Financial (49) 62 items Taxes Impact of GE Energy JV EBIT • Of which for €(100)m effective tax rate (125) of 25% compared to 7% 1 last year Share Net Minority income J
Slide 18: aEBIT progression benefiting from volume and operational efficiency
aEBIT progression benefiting from volume and operational efficiency Adjusted EBIT1 (in € million) 7.7% ● Volume increase 7.5% aEBIT margin aEBIT margin +5% ● Contract effective execution 319 ● Increase in R&D investments, mainly in 303 Signalling, supporting AiM strategy - Emphasis on sustainable ma
Slide 19: FCF impacted by anticipated ramp up of large Rolling Stock projects
FCF impacted by anticipated ramp up of large Rolling Stock projects EBIT to FCF (in € million) ● Positive CAPEX phasing in H1 2019/20 (92) 145 ● Adverse working capital position as anticipated: ● mainly due to inventories growth reflecting the on-going ramp-up of major projects: of which Amtrak, Pra
Slide 20: Cash Focus Programme launched
Tender Cash Focus Programme launched Tools & process Alstom in Motion targets Recent achievements Mid term target: working capital stability after Tender working capital targets People increase due to industrial ramp-up implemented Gover- nance Inventory Vendor Managed Inventory • 15% Hard I
Slide 21: Bonds and liquidity position
Bonds and liquidity position Bonds In € million Bonds ● Alstom rated Baa2 with positive outlook upgrade on 4 700 September 2019 proving positive credit story 596 ● Reimbursement in July 2019 of €283m bond at a 3% coupon ● On October 8th, Alstom successfully launched a 7-year €700 283 million senior
Slide 22: Evolution of net cash
Evolution of net cash In € million Net cash/(debt)1 €5.5 per share dividend distribution on 15 July 2019 (1,238) 2,325 (19) (54) 3 (26) 991 March. 19 Dividend paid FCF Acq. & disposals Capital increase Forex & other Sept-19 1 Due to IFRS 16 implementation at 1 April 2019, the Group has chosen to exc
Slide 23: Conclusion
4 Conclusion © ALSTOM SA, 2019. 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 circu
Slide 24: FY 2019/20 perspective and 2022/23 outlook confirmed
FY 2019/20 perspective and 2022/23 outlook confirmed FY 2022/23 Outlook FY 2019/20 confirmed The 2019/20 fiscal year will be a year of stabilisation of growth after a 2018/19 fiscal year Sales average annual growth rate of around with an exceptional sales and profitability growth. 5% over 2019/20
Slide 25: Key Take Aways
Key Take Aways Alstom in Motion strategy deployment on track Very dynamic commercial momentum, rail passenger traffic showing upbeat signals in Europe Focus on execution of new record high backlog and profitable growth © ALSTOM SA, 2019. All rights reserved. Information contained in this docume
Slide 26: Contacts & Agenda
Contacts & Agenda CONTACTS AGENDA Julie MOREL VP Investor Relations & Corporate 16 January 2020 strategy Q3 2019/20 Orders and Sales +33 (0)1 57 06 95 39 12 May 2020 investor.relations@alstomgroup.com 2019/20 Results © ALSTOM SA, 2019. All rights reserved. Information contained in this document is i
Slide 27: Appendix
Appendix © ALSTOM SA, 2019. 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 28: Record backlog reaching €41.3bn
GROWTH Record backlog reaching €41.3bn ● Backlog (in € billion) ● Backlog breakdown as end of September 2019 Asia Pacific 14% Europe 48% +8% Americas 15% 41.3 Middle East & Africa 38.1 23% Systems 7% Signalling H1 2018/19 H1 2019/20 9% Services Rolling stock 32% 52% © ALSTOM SA, 2019. All rights res
Slide 29: From EBIT to Free Cash Flow
From EBIT to Free Cash Flow (in € million) H1 2019/20 H1 2018/19 EBIT 281 219 Depreciation & amortisation 145 89 Restructuring (9) 15 Capex (60) (85) R&D capitalisation (32) (27) Change in working capital (323) 17 Financial cash-out (37) (29) Tax cash-out (54) (73) Other 70 46 Free cash flow (19) 17
Slide 30: Stable Earnings Per Share excluding Energy JV related items
Stable Earnings Per Share excluding Energy JV related items Earnings Per Share from Continued operations (in € per share) 1.43 Impact related to GE Energy JV transaction 0.45 for €(100)m 0.98 0.95 0.51 H1 H2 H1 2018/19 2018/19 2019/20 © ALSTOM SA, 2019. All rights reserved. Information contained in
Slide 31: Equity
Equity Equity In € million 227 (1,234) 4,159 (43) 14 12 3,135 Mar-19 Net income* Dividends Pension Share-based payments Forex & other Sept-19 * Group share © ALSTOM SA, 2019. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or sho
Slide 32: Non-GAAP financial indicators definitions
Appendix 1 - Non-GAAP financial indicators definitions 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 the
Slide 33: Non-GAAP financial indicators definitions
Appendix 1 - Non-GAAP financial indicators definitions ● Free cash flow Free cash flow is defined as net cash provided by operating activities less capital expenditures including capitalised development costs, net of proceeds from disposals of tangible and intangible assets. In particular, free cash fl
Slide 34: www.alstom.com
www.alstom.com www.alstom.com