Alstom Sa · EURONEXT:ALO
Alstom Sa — H1 2018/19 Earnings Presentation
34 slides from Alstom Sa's earnings presentation, Nov 14, 2018
Slide 1: Half Year Results Fiscal Year 2018/19
Half Year Results Fiscal Year 2018/19 14 November 2018
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 Introduction 2 Market update 3 2020 strategy 4 Financial results 5 Outlook 6 Siemens Alstom project ALSTOM – 14 November 2018 – P 3 © ALSTOM 2018. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should be relied on th
Slide 4: Excellent H1 2018/19 results
Excellent H1 2018/19 results Strong commercial momentum leading to a new record-breaking backlog • Order intake of €7.1bn, backlog of €38.1bn, book-to-bill of 1.8 Outstanding operational performance • Sales at €4.0bn • Adjusted EBIT at €285m, leading to margin at 7.1% Positive free cash flow a
Slide 5: Agenda: Market update
Agenda 1 Introduction 2 Market update 3 2020 strategy 4 Financial results 5 Outlook 6 Siemens Alstom project ALSTOM – 14 November 2018 – P 5 © ALSTOM 2018. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should be relied on th
Slide 6: Railway traffic evolution
Railway traffic evolution Average Growth Worldwide traffic evolution from 2007 to 2017 vs LY growth (2007–2017) +3.2% +5.0% +2.9% +3.6% +6.9% +0.8% Urban Mainline Freight Steady growth in passenger traffic for urban and mainline. Freight rebound. Note: Urban figures are for Top 25 cities worldwide;
Slide 7: Market forecast
Market forecast Average annual accessible market (€bn) 15/17 – 21/23 15/17 – 21/23 CAGR CAGR 103 110 120 +2.6% 103 110 120 +2.6% 9 +4.7% 11 +2.2% 8 9 11 +1.2% Middle-East Africa 7 20 +2.4% 9 Urban trains 11 20 13 +5.7% Asia Pacific 17 Regional trains 10 12 8 +1.4% Mainline trains 10 36 +3.3% 8 31 Fr
Slide 8: Share of systems within the urban market
Share of systems within the urban market System market within urban market Share of urban market addressed through systems Annual average 2019-2021, Alstom Forecast Rest of NAM urban market MEA LAM 41% 35% Metro system Europe Tram system APAC 2015-17 2019-21 Alstom Alstom forecast forecast Market ad
Slide 9: Agenda: 2020 strategy
Agenda 1 Introduction 2 Market update 3 2020 strategy 4 Financial results 5 Outlook 6 Siemens Alstom project ALSTOM – 14 November 2018 – P 9 © ALSTOM 2018. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should be relied on th
Slide 10: 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 11: Customer-focused organisation
Customer-focused organisation Strong commercial momentum leading to a new record-breaking backlog Orders (in € billion) Backlog (in € billion) 3.2 7.1 0.9 0.2 1.7 0.5 38.1 35.0 0.2 4.3 0.9 1.5 H1 2017/18 H1 2018/19 End Sept 2017* End Sept 2018 Europe Americas MEA Asia Pacific Backlog breakdown as en
Slide 12: Customer focused organisation: Main H1 2018/19 orders
Customer focused organisation Main H1 2018/19 orders Norway: on-board train control system Canada: driverless light metro system Germany: Frankfurt tram for Montreal France: next-generation very high speed trains, tram-trains India: Mumbai metro Italy: Pendolino trains and maintenance Taiwan: Taipei
Slide 13: Order for next-generation very high speed trains
Customer focused organisation Order for 100 next-generation very high speed trains 100 next-generation Avelia Horizon very high speed trains • Two innovative power cars of reduced length and articulated double-deck passenger cars • 20% decrease in acquisition cost • 20% increase in passenger-dedic
Slide 14: Complete range of solutions
Complete range of solutions Towards more systems, signalling and services E-bus, tram, metro, suburban/regional, high speed, very high speed, locomotive 43% Components: traction, bogie, motor Maintenance Modernisation Spare parts, repairs & overhaul 19% Support services Signalling solu
Slide 15: Complete range of solutions: sales
Complete range of solutions Sales (in € billion) 4.0 3.3 Above 20% growth in Rolling Stock 0.7 • Regional and high-speed trains in Europe 0.6 0.6 • On-going execution of PRASA project 0.6 +20% 0.9 0.7 1.4 1.7 Above 30% growth in Systems • Strong ramp-up on Dubai metro and Lusail tram systems H1
Slide 16: Strong ramp-up on urban systems projects in Middle-East
Complete range of solutions Strong ramp-up on urban systems projects in Middle-East Dubai 2020, United Arab Emirates Lusail tramway system , Qatar ALSTOM – 14 November 2018 – P 16 © ALSTOM 2018. All rights reserved. Information contained in this document is indicative only. No representation or
Slide 17: Value creation through innovation
Value creation through innovation Sustained level of R&D R&D gross costs (in € million) Main R&D programmes Renewal of rolling stock ranges As % of sales Smart mobility programmes Predictive maintenance 147 Latest innovations 123 Coradia iLint in passenger service in Germany 3.7% 3.7% Laun
Slide 18: Operational excellence: adjusted EBIT
Operational excellence Outstanding operational performance Adjusted EBIT (in € million) Significant volume increase As % of sales Stable portfolio mix On-going initiatives for operational excellence 285 +58% 180 7.1% 5.4% H1 2017/18* H1 2018/19 % change reported * Restated for IFRS 9 & 15 ALST
Slide 19: Operational excellence: competitive offering
Operational excellence Competitive offering Sourcing Global footprint Alstom Alliance Continued India ramp-up • Premium partnerships with strategic suppliers to • Headcount have almost doubled since March 2016 support geographical expansion, share innovations and mutualise development of key com
Slide 20: Excellence in delivery: solid project execution
Operational excellence Excellence in delivery: solid project execution PRASA project, South Africa Riyadh metro, Kingdom of Saudi Arabia ALSTOM – 14 November 2018 – P 20 © ALSTOM 2018. All rights reserved. Information contained in this document is indicative only. No representation or warranty i
Slide 21: Agenda: Financial results
Agenda 1 Introduction 2 Market update 3 2020 strategy 4 Financial results 5 Outlook 6 Siemens Alstom project ALSTOM – 14 November 2018 – P 21 © ALSTOM 2018. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should be relied on t
Slide 22: Income statement
Income statement % change % change In € million H1 2017/18* H1 2018/19 reported organic Sales 3,341 4,010 20% 23% Adjusted EBIT 180 285 58% Adjusted EBIT margin 5.4% 7.1% Restructuring charges (19) (34) Other charges (18) (32) EBIT 143 219 Financial result (53) (46) Tax result (25) (12) Share in net
Slide 23: Free cash flow
Free cash flow In € million H1 2017/18* H1 2018/19 Cash Focus Programme Adjusted EBIT 180 285 Limited change in working capital Depreciation & amortisation 75 82 Potential volatility on short Restructuring cash-out (18) (19) period remains Capex (85) (85) R&D capitalisation (26) (27) Phasing
Slide 24: Capex developments
Capex developments Progressive ramp up of transformation capex Capex* (in € million) 85 85 45 52 40 33 H1 2017/18** H1 2018/19 South Africa factory Capex Transformation Capex New sites to meet customers’ growing demand for a local presence €212m spent out of c. €300m transformation capex * Excluding
Slide 25: Liquidity and gross debt
Liquidity and gross debt In € million Liquidity position Liquidity 1,797 1,631 €1,397m cash and cash equivalents as of 30 September 2018 €400m revolving credit facility ; fully undrawn €2,594 cash payment for Energy JVs received on 2 Mar-18 Sep-18 October 2018 Undrawn credit line Gross cash In
Slide 26: Net debt
Net debt In € million Net cash/(debt) (255) (136) (280) 172 5 (84) 18 Mar-18 FCF Acq. & disposals* Capital increase Dividend paid Forex & other Sept-18 * Includes €115 million investments in TMH Locotech ALSTOM – 14 November 2018 – P 26 © ALSTOM 2018. All rights reserved. Information contained in th
Slide 27: Equity
Equity Equity In € million 16 (78) 25 16 4,021 563 3,479 Mar-18* Net income** Pensions Dividends Share base payments Forex & other Sept-18 * Restated for IFRS 9 & 15 ** Group share ALSTOM – 14 November 2018 – P 27 © ALSTOM 2018. All rights reserved. Information contained in this document is indicati
Slide 28: Agenda: Outlook
Agenda 1 Introduction 2 Market update 3 2020 strategy 4 Financial results 5 Outlook 6 Siemens Alstom project ALSTOM – 14 November 2018 – P 28 © ALSTOM 2018. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should be relied on t
Slide 29: Outlook
Outlook At constant perimeter and exchange rates. In accordance with IFRS 15. Medium term FY 2018/19 Outperform the market growth Sales to reach around €8bn Gradually improve profitability aEBIT margin to reach around 7% Improve cash generation, with possible volatility over some short p
Slide 30: Agenda: Siemens Alstom project
Agenda 1 Introduction 2 Market update 3 2020 strategy 4 Financial results 5 Outlook 6 Siemens Alstom project ALSTOM – 14 November 2018 – P 30 © ALSTOM 2018. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should be relied on t
Slide 31: Siemens Alstom project update
Siemens Alstom project update Indicative timetable First half 2019 Closing conditions: • 28 May: MINEFI clearance (French State – foreign investment control) • 29 May: confirmation from the AMF that no public mandatory tender offer will have to be filed by Siemens following completion of the contrib
Slide 32: Q&A
Q&A ALSTOM – 14 November 2018 – P 32 © ALSTOM 2018. 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 33: Contacts and agenda
Contacts and agenda Agenda Contacts Julien MINOT 17 January 2019 Investor Relations Manager Q3 2018/19 Orders and Sales +33 (0)1 57 06 64 84 7 May 2019 investor.relations@alstomgroup.com Full Year 2018/19 Results ALSTOM – 14 November 2018 – P 33 © ALSTOM 2018. All rights reserved. Information contai
Slide 34: www.alstom.com
, AEN Se ao. www.alstom.com ALSTOM pean, vies flac