Alstom Sa · EURONEXT:ALO
Alstom Sa — Nomura Rail Seminar 2010
35 slides from Alstom Sa's conference presentation, Sep 6, 2010
Slide 1: Alstom Transport - Nomura Rail Seminar
ALSTOM TRANSPORT Philippe MELLIER TRANSPORT Nomura Rail Seminar September 6th 2010
Slide 2: Agenda: 2 sections
Agenda: 2 sections Railways Market Alstom Transport Today p. 2
Slide 3: Agenda: Railways Market
Agenda Railways Market Alstom Transport Today p. 3
Slide 4: Railway activities have been hit by recession less severely than other sectors
Railway activities have been hit by recession less severely than other sectors… • Approximately flat TODAY • Improvement expected s.km Traffic Pas when employment recovers PASSENGER a ffic T on. k m Tr • -25 to -35% throughout 2009 • Slow recovery expected, FREIGHT pre-crisis level by ’12-’13 g Spen
Slide 5: On the long run, Railways still growing 3% p.a. on average
… and on the long run, Railways still growing 3% p.a. on average Railway market as per UNIFE study Bn€ 111 b€ 99 b€ 99 b€ 100,0 86 b€ 29,0 Infra (TGS) 24,4 Non Rolling-Stock 26,5 80,0 21,9 12,7 Signalling (TIS) 73 b€ 11,2 11,0 + 16 b€ over 10 years 60,0 9,7 31,7 30,0 Service (TLS) 28,1 40,0 25,4 Rol
Slide 6: Large opportunities in all continents
Large opportunities in all continents Europe • Very high speed and regional trains in Russia North America France, Germany, Italy • Double-deck passenger cars • Mass transit projects in the UK and in • Metros in Mexico, Canada • Diesel locomotives the Netherlands and USA • High- & Very-High Speed •
Slide 7: Customers overview
Customers overview URBAN MAINLINES Historic metropoles Infrastructure owners NY, London, Paris RFF, DB Netz, RFI ¾ Imposed designs ¾ Invest to boost interoperability & grow capacity ¾ Huge contracts ¾ Optimised use-based fees charged to operators ¾ Urban & Suburban networks Passenger operators Growi
Slide 8: Transport market drivers
Transport market drivers Our key customers becoming integrated mobility providers • Market liberalisation, cross-boarder traffic DB EXAMPLE • Our key customers becoming integrated mobility providers Door-to-door information • Growth of urban populations, mainly in emerging nations Online-Ticket
Slide 9: Mature markets still significant, emerging ones growing faster
Mature markets still significant, emerging ones growing faster EMERGING markets 111 b€ • Several markets, traditionally closed MARKETS or non-railways, are opening (Algeria, Venezuela, US, Russia…) Rest of • New infrastructure world 86 b€ • Standards to be set • Demand for localisation CONTEXT BRIC
Slide 10: Increasing demand for lower price or just-enough solutions
Increasing demand for “lower price” or “just-enough” solutions DESCOPE & LOCALISE PREMIUM (Alstom’s answer: 30% MARKETS Traction type B, Satee) HIGH LOCALISE PRICE AL LIM (Alstom’s answer: ST PREMIUM OM IT o Metropolis China, BR f LOWER Xiajeco, Dispen, Lapa, AN JUST PRICE D Katowice…) CONTEXT ENOUG
Slide 11: Tough & global competition
Tough & global competition b€ Sales evolution CNR 40 CSR 21% TMH MARKETS 10% 42% RANK 2 20 40% CONTEXT ST PRODUCTS CHANGE AT 37% TOP3 50% BT 2001 2005 2008 • TOP 3 growing but loosing market share globally COMPE- • 2nd rank competitors growing gradually (CAF, Stadler, Rotem…) TITION • Chinese boomin
Slide 12: Agenda: Alstom Transport Today
Agenda Railways Market Alstom Transport Today p. 12
Slide 13: Agenda: What & where we sell
Agenda Railways Market Alstom Transport Today What & where we sell How we are organised Our achievements & results Our strategy p. 13
Slide 14: Agenda
Agenda Railways Market Alstom Transport Today What & where we sell How we are organised Our achievements & results Our strategy p. 14
Slide 15: Distribution of Sales by zone
Distribution of Sales by zone LATAM Asia-Pacific 6% 9% South Europe 29% North-America 12% North Europe France 21% 22% € 5.75 billion FY 2009/2010 p. 15
Slide 16: Distribution of Sales by product line
Distribution of Sales by product line Infra & Turnkey TGS Rolling Stock 13% URBAN Signalling 34% TIS 15% 59% 15% Service 19% TLS Rolling Stock Components MAINLINES 2% € 5.75 billion FY 2009/2010 p. 16
Slide 17: Rolling Stock: an extensive range of products, from tram to VHST
Rolling Stock an extensive range of products, from tram to VHST Long distance Locomotives Very high speed High speed Interurban Tram-train MAINLINES Regional Tram Metro URBAN & REGIONAL Short distance Speed p. 17
Slide 18: Rolling Stock: Strong position in Urban
Rolling Stock : Strong position in Urban Lyon Barcelona Dublin Paris • Citadis selected by 32 towns Extensive knowledge and • Over 1,250 trams ordered experience • More than 1 billion passengers of steel wheel and rubber carried tyre metros p. 18
Slide 19: RS / VHS: from French Exception to Worldwide Leadership
RS / VHS : from French Exception to Worldwide Leadership South East AGV (IT) TGV 30 years of experience 25 109 1981 660 TGV & AGV sold 2011 TGV 60% ww market share** TGV East “Réseau” 19 equiv. 80 1990/3 2007 (coaches) TGV Atlantic 105 AVE (ES) KTX (Korea) 18 1994 2004 46 Eurostar TGV Thalys 31 1994
Slide 20: Components
Components Developing components based on market needs. • Reliable, competitive and cost attractive • For internal integration or external customer Standard components catalogue aims to cover 80% of market requirements p. 20
Slide 21: Train Life Service (TLS)
Train Life Service (TLS) 3 after-market activities Maintenance Transit - Freight - Equipment – Track Renovation Transit – Freight – Equipment – Track Spare Parts & Components Repair All makes WCML Pendolinos Maintenance in UK (Virgin) Covering Alstom equipments as well as non-Alstom equipments p. 21
Slide 22: Transport Information Solutions (TIS)
Transport Information Solutions (TIS) Track Products Interlocking (IXL) Level Crossings Point Machines Manage Signals Priority Space Train trains Avoid detection collision Develop, install, configure, integrate a wide range of IT for Rail products & systems Train Protection Non Safety Systems ERTMS,
Slide 23: Transport Global Solutions (TGS)
Transport Global Solutions (TGS) TURNKEY PROJECT OPERATION MANAGEMENT DESIGN – CONSTRUCT - MAINTAIN C - System engineering I - Interfaces coordination O V - Construction methods P I -Testing and commissioning E L Trackworks Electrification Electromechanical Signalling Workshop Rolling Stock ( turnke
Slide 24: Agenda: How we are organised
Agenda Railways Market Alstom Transport Today What & where we sell How we are organised Our achievements & results Our strategy p. 24
Slide 25: More than 28,800 employees around the globe
More than 28 800 employees around the globe Asia- Pacific Southern Europe 5% 49% North 6% America IBAM 19% Northern Europe 21% Headcount as of April 2010 : 28 853 p. 25
Slide 26: Current footprint RS & Components: 1/2 (Europe)
Current footprint RS & Components : 1/2 (Europe) FRANCE Charleroi La Rochelle Belfort Katowice Valenciennes Reichshoffen Salzgitter Le Creusot Ornans Sesto San Giovanni Tarbes JV Santa Perpètua Savigliano Component Unit RS Unit p. 26
Slide 27: Current footprint RS & Components: 2/2 (rest of the world)
Current footprint RS & Components : 2/2 (rest of the world) Shanghai SATCO SATEE Hornell Qingdao Xi’ian Coimbatore JV Lapa Component Unit RS Unit p. 27
Slide 28: Agenda: Our achievements & results
Agenda Railways Market Alstom Transport Today What & where we sell How we are organised Our achievements & results Our strategy p. 28
Slide 29: Transport / Key figures
Transport / Key figures 2003/04 2004/05 2005/06 2006/07 2007/08 2008/09 2009/10 Sales (b€) 4.9 5.1 5.1 5.3 5.5 5.7 5.8 Orders (b€) 4.7 5.5 5.2 5.4 7.5 8.1 5.5 Backlog (b€) 14.3 14.5 14.1 15.2 17.3 19.5 19.5 Income from op. 64 218 324 349 397 408 414 Operating margin 1.3% 4.3% 6.3% 6.6% 7.2% 7.2% 7.2
Slide 30: Agenda: Our strategy
Agenda Railways Market Alstom Transport Today What & where we sell How we are organised Our achievements & results Our strategy p. 30
Slide 31: Alstom Transport Strategy
Alstom Transport Strategy Over the last years, we successfully… …but • Grew profitably • Being multi-specialist is no longer sufficient to grow profitably • Built strong expertise & leadership • Defending our home markets is vital • Reinforced our position as multi-specialist • Becoming multi-geogra
Slide 32: NEED to become multi-geographic
NEED to become multi-geographic MATURE MARKETS EMERGING MARKETS (OECD) (BRIC or BICK or BRICUS…) YESTERDAY 50 b€ 30 b€ AT AT 60 b€ 60 b€ TOMORROW AT AT Tomorrow’s Tomorrow’s leaders leaders == those those able able to to address address all all markets markets p. 32
Slide 33: TMH-AT: a case for new ways of doing business
TMH-AT : a case for new ways of doing business STRATEGIC AGREEMENT PRINCIPLES OF COOPERATION • COO of TMH appointed by Alstom • A 3-year negotiation • Creation of 2 JV (50%-50%) • Anti-trust authorization to be closed by Oct ’10 − TRT = engineering • AT bought 25% + 1 stake in TMH equity − COMPCO =
Slide 34: Conclusion
Conclusion • Despite crisis and tougher business conditions, our global ambition remains unchanged − be the undisputed leader in the transportation business both in terms of profitability & market share − Keep / reach N°1 positions (HST/VHST, trams & tram-trains) • To achieve this ambition, we need
Slide 35: www.alstom.com
www.alstom.co TRANSPORT | ALSTOM