Slide 1: Half-Year Results Fiscal Year 2007/08
Half-Year Results Fiscal Year 2007/08 8 November 2007
Slide 2: Agenda
Agenda 1. Key highlights Page 3 2. Market review Page 16 3. Financial results Page 26 4. Full year outlook Page 36 P2
Slide 3: Key figures
Key figures Continuous strong profitable growth in H1 2007/08 In € million Sept 2006* Sept 2007 Variation Orders received 9,664 12,847 +33% Backlog 30,106 37,226 +24% Sales 6,608 8,004 +21% Income from operations 413 573 +39% Operating margin 6.3% 7.2% Net income 261** 388 +49% Free cash flow 747 1,
Slide 4: Orders received
Orders received Excellent level of orders In € billion 12.8 +33% actual 9.7 4.8 +35% organic* 2.3 Transport Power Service 2.4 2.5 Power Systems 5.5 5.0 Sept 06 Sept 07 P4 (*) same scope (retreatment of disposals and acquisitions) and exchange rate
Slide 5: Orders received by country of destination
Orders received by country of destination EU remaining dominant; strong growth in MEA in H1 2007/08 Europe (54%) North America Asia (16%) (14%) Middle East & Africa South America (12%) Transport (4%) Power Service Power Systems P5
Slide 6: Major commercial successes in Power
Major commercial successes in Power • 29 gas turbines booked over 6 months (of which 10 GT26) in 12 countries • Breakthrough on the desalination market (Fujairah award in Middle East incl. 5 GT26*) • Hydro: major recent contract in Vietnam*; strong activity in Brazil and China • Continuing participa
Slide 7: Major commercial successes in Transport
Major commercial successes in Transport • Large order for TGVs in France (80 trains+40 optional) • Contracts for METROPOLIS in New York, Brasil and China • Booking of several CITADIS tramways (Dublin) and a tram-train in France • Success of CORADIA regional trains in Germany • Signalling system in B
Slide 8: Backlog
Backlog 28 months of sales In € billion +24% actual 37.2 30.1 17.2 +25% organic* Transport 14.5 Power Service Power Systems 5.9 5.2 10.4 14.1 Sept 06 Sept 07 P8 (*) same scope (retreatment of disposals and acquisitions) and exchange rate
Slide 9: Sales
Sales Ramp-up of volume – High book-to-bill at 1.6 In € billion +21% actual 8.0 6.6 2.7 +22% organic* Transport 2.4 Power Service 1.8 Power Systems 1.5 2.7 3.5 Sept 06 Sept 07 P9 (*) same scope (retreatment of disposals and acquisitions) and exchange rate
Slide 10: Income from operations
Income from operations Improvement in all Sectors In € million +39% actual 573 186 413 151 +39% organic* Transport 286 Power Service 238 Power Systems Corporate & others 159 83 (59) (58) Sept 06 Sept 07 IO Margin 6.3% 7.2% P 10 (*) same scope (retreatment of disposals and acquisitions) and exchange
Slide 11: Capital expenditure
Capital expenditure Increase in capex by 38% (from €84 million to €116 million) Supply chain Manufacturing capacity • Increase capacity of internal foundries • New capacities on-stream in (Poland) Beijing (China) / Morelia (Mexico) • Long term agreements with suppliers • Increased blades production
Slide 12: R&D
R&D Increase in R&D expenses by 23% (from €205 million to €252 million) • CO2 capture strategy: − Pilot plants for post combustion capture to be developed in Northern Europe and Australia − Pilot plant for oxyfiring process in Germany • AGV: first tests on Pégase by December 2007 • X04 tramway: prot
Slide 13: HR management
HR management Headcount at end of September 2007: 71,600 • Sustained recruitment: − 4,800 newcomers over the first half 2007/08, including 2,550 engineers and managers Headcount Recruitments Asia 18% Asia 27% Europe / Europe / 47% Africa Americas 20% 62% Africa Americas 26% (figures end September 07
Slide 14: External growth
External growth Acquisitions & partnerships in key areas • Wuhan Boiler Co. acquisition in China closed; new factory to be built • Wind: acquisition of Ecotècnia closed • Implementation of the partnership with Atomenergomash in Russia • Signalling: 50/50 JV created with Balfour Beatty to serve the U
Slide 15: Agenda
Agenda 1. Key highlights Page 3 2. Market review Page 16 3. Financial results Page 26 4. Full year outlook Page 36 P 15
Slide 16: Power market: update 2007-2011
Power market: update 2007-2011 Strong demand worldwide with balanced mix of technologies • Strong market with orders expected around 185 GW p.a. on average over 2007-11 period, compared with 150 GW p.a. in 2005-06 period • Above our previous forecast of 145 GW p.a. over 2006-10 period (including win
Slide 17: New equipment market – by geography
New equipment market – by geography Alstom to benefit from its worldwide presence Order per Country in GW* 200 • Ongoing investment cycle in Av. 185 GW China Europe and Middle-East 160 Asia other • Upward trend in Americas 120 Latin • Sustained high demand in China America North • Large investment p
Slide 18: New equipment market – by technology
New equipment market – by technology Alstom well positioned to serve demand for diversified technologies Order per Technology in GW* • Gas: 50-60 GW p.a. – 30% 200 Av. 185 GW − Half in Europe and Middle-East Wind • Coal: 70 GW p.a. – 40% 160 − Mostly for supercritical plants Hydro 120 • Nuclear revi
Slide 19: Environmental product market
Environmental product market Alstom to leverage its leading position in ECS Environmental product market in billions euros* 8 China • Over half of the market in North Other Asia America and Europe 6 Latin America • Sustained De-SOx and De-NOx demand driven by regulation 4 North America compliance de
Slide 20: Retrofit market
Retrofit market Alstom to benefit from its largest installed base Retrofit market in billions euros* • Environmental constraints and 4 ageing installed base key drivers for steam turbine retrofit Hydro refurbishment − Growing nuclear opportunities 2 ST retrofit • Better economics for modernisation p
Slide 21: Service market
Service market Alstom installed base worldwide to serve a growing service market • Long-term demand for outsourced Total world outsourced services market in billions euros* 30 China • Maintenance and life extension opportunities in Europe and US Asia other − Environmental constraints − Increasing fu
Slide 22: Transport market
Transport market Sustained demand worldwide with growth in all market segments • Alstom accessible market to reach 43 b€ in 2015 (vs. 36 b€ in 2005) − No change from previous forecast • Rolling stock demand driven by growing need for mobility worldwide in main line and mass transit • Non-Rolling sto
Slide 23: Transport market – by geography
Transport market – by geography Alstom well positioned to benefit from growth in mature and new markets Rail transport market by 50 region in billions euros* • Europe to remain main market Asia − Large ageing fleet 40 − Increased regional and trans- IBAM national interconnections 30 North America •
Slide 24: Transport market – by technology
Transport market – by technology Alstom to leverage its broad portfolio Rail transport market by 50 segment in billions euros* • Growing demand for mass transit: tramways and metros, driven by urbanisation 40 Information Systems • Positive signs on high speed 30 market worldwide Global Systems • Ser
Slide 25: Agenda
Agenda 1. Key highlights Page 3 2. Market review Page 16 3. Financial results Page 26 4. Full year outlook Page 36 P 25
Slide 26: Power Key figures (1)
Power Key figures (1) In € million Sept 2006 (*) Sept 2007 Variation Orders Power Systems 5,035 5,513 +9% Power Service 2,364 2,512 +6% Total Power 7,399 8,025 +8% Backlog Power Systems 10,442 14,117 +35% Power Service 5,176 5,882 +14% Total Power 15,618 19,999 +28% Sales Power Systems 2,732 3,538 +
Slide 27: Power Key figures (2)
Power Key figures (2) In € million Sept 2006 (*) Sept 2007 Variation Income from op Power Systems 83 159 +92% Power Service 238 286 +20% Total Power 321 445 +39% Operating margin Power Systems 3.0% 4.5% Power Service 16.0% 16.3% Total Power 7.6% 8.4% (*) actual figures P 27
Slide 28: Transport Key figures
Transport Key figures In € million Sept 2006 (*) Sept 2007 Variation Orders 2,241 4,796 +114% Backlog 14,468 17,200 +19% Sales 2,370 2,686 +13% Income from op 151 186 +23% Operating margin 6.4% 6.9% (*) actual figures P 28
Slide 29: Income Statement
Income Statement In € million Sept 2006 Sept 2007 Variation Income from operations 413 573 +39% Restructuring costs (17) (12) Capital gains & other 10 - EBIT 406* 561 +38% Financial result (61) (41) Tax result (78) (129) Discontinued operations (15) - Minority interest & other 9 (3) Net result 261*
Slide 30: Free Cash Flow
Free Cash Flow In € million Sept 2006 Sept 2007 EBIT before restructuring 423* 573 Capital gain/loss (10) - Depreciation 97 107 R&D cap. & amort. of intang. 12 10 Restructuring cash out (57) (44) Financial cash out (57) (52) Tax cash out (50) (74) Change in WC 523 867 Capex (84) (116) Others (50) (2
Slide 31: Evolution of net debt
Evolution of net debt Strong net cash position at the end of September 2007 In € million Net debt FCF Dividend Acquisitions Net cash 31 March 07 & disposals 30 Sept 07 +other (116) 1,248 (167) 901 (64) P 31
Slide 32: Main credit lines at 30 September 2007
Main credit lines at 30 September 2007 Nominal amount In € million Liquidity further improved Cash available 2,378 at parent company 1,000 1,000 Available 721 credit lines 301 272 389 Cash trapped Situation at July 2008 March 2009 March 2010 March 2012 Sept 07 Drawn lines Undrawn lines P 32
Slide 33: Other events in finance
Other events in finance • Bonding program renegotiated: − Needs covered until July 2010 (extended from July 2008) − Decrease in bonding costs • Debt buy-back initiatives: − In October 2007, €194 million of the bond maturing in March 2010 bought back through public offering July 2008 370 530 301 Marc
Slide 34: Evolution of equity
Evolution of equity In € million Equity Pensions** Restated Equity Dividends Change in Net income Other Equity 31 March 07* 1 April 07 pensions 30 Sept 07 (896) 32 388 2,271 1,831 (116) 152 1,375 (*) as reported as of 31 March 07 (**) Adoption of full amortisation of unrecognised pension underfundin
Slide 35: Agenda
Agenda 1. Key highlights Page 3 2. Market review Page 16 3. Financial results Page 26 4. Full year outlook Page 36 P 35
Slide 36: Full year outlook
Full year outlook • March 2008 forecasts: − Sales: organic* growth of approximately 15% versus prior year (previous guidance: above 10%) − Operating margin: around 7.5% with a further improvement expected in H2 (previous guidance: above 7%) P 36 (*) same scope (retreatment of disposals and acquisiti
Slide 37: 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 38: www.alstom.com
www.alstom.co ALSTOM