Alstom Sa · EURONEXT:ALO
Alstom Sa — H1 2021/22 Earnings Presentation
38 slides from Alstom Sa's earnings presentation, Nov 10, 2021
Slide 1: Half year results Fiscal Year 2021/22
Half year results Fiscal Year 2021/22 10 November 2021
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 relevant to the current scope of activity and are by their nature subject to a number of important risks and uncertainty facto
Slide 3: Agenda
Agenda • H1 2021/22 highlights • Business update • H1 2021/22 financial results • Conclusion and outlook © ALSTOM SA, 2021. 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
Slide 4: H1 2021/22 highlights
1 H1 2021/22 highlights © ALSTOM SA, 2021. 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: Solid H1 2021/22 results in line with Capital Markets Day on July 6th 2021
Solid H1 2021/22 results in line with Capital Markets Day on July 6th 2021 ● Solid commercial performance in H1 2021/22 with book-to-bill above 1.3 €9.7bn Order ● Backlog at €76.4bn intake ● Very large pipeline and strong mid-term rail market perspectives, with Alstom unique competitive positioning
Slide 6: Business update
2 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 technical and commercial
Slide 7: Acceleration of market momentum with identified opportunities exceeding €100m each
Acceleration of market momentum with more than 400 identified opportunities exceeding €100m each around the world until 2024/25 EUROPE: €56bn rail investments CANADA backed by EU Next Gen LARGE URBAN SYSTEMS AND SERVICES LARGE TENDERS FOR ROLLING STOCK AND ETCS OPPORTUNITIES US: Infra and Jobs 5-yea
Slide 8: Very solid order intake driven by large orders and sustained commercial momentum
Very solid order intake driven by large orders and sustained commercial momentum across regions and product lines ORDERS H1 2021/22 (IN €BN) 9.7 9.7 0.1 1.0 1.0 Signalling +81% AMECA 2.3 2.2 APAC Systems 1.5 9.7 Americas Services 6.3 5.4 Europe 5.0 Rolling stock H1 2021/22 H1 2021/22 H1 2020/21 prof
Slide 9: Main contracts in H1 2021/22
Main contracts in H1 2021/22 €9.7 BILLION OF ALSTOM ORDERS BOOKED IN H1 €0.5 bn €1.4 bn €1.0 bn NEW S-BAHN HAMBURG (SUBURBAN - GER) DSB FREMTIDENS TOG (REGIONAL AND SERVICES - DEN) TREN MAYA (TURNKEY AND SERVICES - MEX) €0.2 bn €1.1 bn €0.1 bn METRO SYSTEM ILE-DE-FRANCE (TURNKEY - FRA) RER MI NG (SU
Slide 10: Progressive sales ramp-up with focus on projects stabilisation
Progressive sales ramp-up with focus on projects stabilisation SALES H1 2021/22 (IN €BN) H1 2021/22 SALES SPLIT BY PRODUCT LINES +14% €4,285m ● Progressive ramp-up of rolling stock projects Rolling Stock 7.4 6.5 €1,559m ● Traffic pick-up with positive impact on activity Services level H1 2020/21 pro
Slide 11: Progress on projects stabilisation, paving the way for profitability improvement
Progress on projects stabilisation, paving the way for profitability improvement in line with capital markets day TRADING OF NON-PERFORMING BACKLOG ACTIONS UNDERTAKEN ● Successful project take-over at all levels of organization Sales €7.4bn ● Sustained level of engineering activity ● Task forces to
Slide 12: Mitigating turbulences on the supply chain
Mitigating turbulences on the supply chain Supply chain shortages Mitigation actions • Electronic components shortage – disruptions to be • Dedicated task force implemented (demand/allocation) addressed in H2 • Tension on transportation and logistic cost • Long term contracts with international frei
Slide 13: Clear global integration roadmap, fully on-track
Clear global integration roadmap, fully on-track Feb 2021 Sept 2021 Mar 2022 Mar 2023 Mar 2024 One face to customer, Business Enhanced offering, business development based on customers Commercial continuity, record-high hit rate positive feedback on merger (96%) Products Portfolio benchmarks and sel
Slide 14: Commercial synergies already kicking-in
Commercial synergies already kicking-in Winning product and footprint Winning product and commercial Alstom latest electronic controller combination combination on BT platforms 1.0 bn€ 0.9 bn€ TREN MAYA (TURNKEY - MEX) CAIRO L1 (METRO - EGYPT) Alstom X’Trapolis and BT bogie, Alstom Metropolis and BT
Slide 15: Robust roadmap launched to achieve €400m cost synergies run rate
Robust roadmap launched to achieve €400m cost synergies run rate¹ Feb 2021 Sept 2021 Mar 2022 Quick win – Alstom bonds conditions FINANCING SYNERGIES ~15% already fully implemented and benefitting to all ex-BT projects « Leading Together »: Finalize negotiations. PROCUREMENT SYNERGIES ~30% 600 negot
Slide 16: Alstom's ambition to lead the way to greener and smarter mobility
Alstom’s ambition to lead the way to greener and smarter mobility confirmed during H1 2021/22 ▪ Worldwide cooperation agreement with Airbus CyberSecurity ▪ Investment in the world’s first cybersecurity campus with a rail focus CYBERSECURITY ▪ World 1st contract for Automatic Train Operation for Main
Slide 17: Alstom pursued its ambition to offer further decarbonated and inclusive mobility
Alstom pursued during H1 2021/22 its ambition to offer further decarbonated and inclusive mobility POWER CAR UNVEILED BY PRESIDENT MACRON IN SEPTEMBER 2021 H2 TRAIN TESTED IN + POLAND, SWEDEN AND FRANCE AVELIA HORIZON™ Coradia iLint near Wrocław +20% seats capacity -20% energy consumption BATTERY-PO
Slide 18: Alstom pursued its ambition to decarbonate further mobility and impact positively society
Alstom pursued its ambition to decarbonate further mobility and impact positively society in 2020/21¹ Full commitment to CO2 38 projects in 24 countries First socio-economic impact emission reduction targets selected in October 2021 report with E&Y under Paris Agreement Alstom Pendolino Enhancing mo
Slide 19: H1 2021/22 financial results
3 H1 2021/22 financial results © ALSTOM SA, 2021. 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 20: aEBIT benefits from controlled S&A and R&D costs
aEBIT benefits from controlled S&A and R&D costs (in € million) H1 2021/22 ● Gross Margin impacted by the non- Sales 7,443 performing BT legacy backlog trading Cost of Sales (6,494) Adjusted Gross Margin before PPA¹ 949 ● R&D within trajectory announced at capital Research and development expenses b
Slide 21: Income statement
Income statement (in € million) H1 2021/22 Sales 7,443 ● Restructuring and rationalisation costs Adjusted EBIT 335 consisting mainly of expenses related to the Adjusted EBIT margin 4.5% closure of Aptis Restructuring and rationalisation costs (47) Integration, acquisition and other costs (32) ● Inte
Slide 22: As anticipated, FCF impacted by non-recurring working capital build-up
As anticipated, FCF impacted by non-recurring working capital build-up ● Anticipated adverse operating working FROM EBIT (BEFORE PPA) TO FREE CASH FLOW (IN € MILLION) capital change : R&D capitalised Production ramp-up impacting D&A (135) (34) WCC inventories, trade receivables and 179 226 H1 2021
Slide 23: Evolution of main balance sheet aggregates as of 30 September 2021
Evolution of main balance sheet aggregates as of 30 September 2021 (in € million) At Sept 2021 At March 2021 Evolution ● Net debt increase mainly linked to Free Goodwill 9,331 9,200 131 Cash Flow Tangible & Intangible assets 5,417 5,350 67 Investments in joint-ventures, associates & ● Limited PPA ch
Slide 24: Evolution of net cash/(debt)
Evolution of net cash/(debt) NET CASH / (DEBT) (IN € MILLION) 31 March 2021 30 September 2021 Net cash/(debt) Net cash/(debt) ● Net debt evolution driven by : Negative FCF (899) (99) Acquisition of Flertex and (99) (243) Helion (2,526)¹ Standard other elements (1,461) (dividends, lease…) (23)
Slide 25: Sound liquidity and long-term financing structure implemented for the integration period
Sound liquidity and long-term financing structure implemented for the integration period A STRONG LIQUIDITY POSITION (IN € MILLION) LONG-TERM MATURITY OF OUTSTANDING BONDS March 2021 Sept 2021 4,500 4,389 700 750 700 1,750 1,750 500 Undrawn credit lines1 1,500 1,500 Cash & Cash equivalent 1,250 1,13
Slide 26: Conclusion and outlook
4 Conclusion and outlook © ALSTOM SA, 2021. 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 comm
Slide 27: Key priorities for H2 2021/22
Key priorities for H2 2021/22 COMMERCIALS EXECUTION ● Continue to leverage on market ● Navigate the supply chain shortages and raw materials momentum price challenges ● Selectivity on order intake. ● Deliver the ramp-up of production Accelerate the backlog ● Accelerate execution of the legacy projec
Slide 28: Conclusion and Outlook
Mid-term targets Conclusion and Outlook confirmed MARKET SHARE +5pp 1 Sales progression STRONG COMMERCIAL MOMENTUM SALES Book-to-bill > 1 CAGR in H2 vs H1 at FY 2021/22 2021/22 >5%2 INTEGRATION FULLY ON TRACK aEBIT PROJECTS STABILISATION 8-10%3 PROGRESSING AS PER FCF generation Progressive TARGETS a
Slide 29: Contacts & Agenda
Contacts & Agenda CONTACTS AGENDA Martin VAUJOUR VP Investor Relations 20 January 2022 Claire LEPELLETIER Q3 2021/22 Orders & Sales Deputy Head Investor Relations investor.relations@alstomgroup.com © ALSTOM SA, 2021. All rights reserved. Information contained in this document is indicative only. No
Slide 30: Appendices
Appendices © ALSTOM SA, 2021. 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 circums
Slide 31: H1 2021/22 Sales per regions and product lines
H1 2021/22 Sales per regions and product lines Sales breakdown per regions (in € million) Sales breakdown per product line (in € million) Systems €522m Asia Pacific €1,045m 7% 14% Signalling €1,077m 14% Americas €1,226m Europe €4,620m 16% 62% Rolling stock €4,285m Services €1,559m 58% 21% Africa, Mi
Slide 32: H1 2021/22 backlog per regions and product lines
H1 2021/22 backlog per regions and product lines Backlog breakdown per regions Backlog breakdown per product line Systems Asia Pacific €6,348m Americas €11,398m 8% Signalling €11,653m 15% 15% €6,611m 9% Africa, Middle East & Europe Central Asia €11,630m €41,681m Services 15% 55% Rolling stock €24,42
Slide 33: Equity in € million
Equity in € million (17) 140* (93) (1) 48 9,194 9,117 Mar-21 Mvt in other comprehensive income Net income Dividends Capital increase** Other Sept-21 * Out of which €119m of actuarial gains and losses of pensions net of tax effect ** capital increase by issuance of new shares linked with scrip divide
Slide 34: Reconciliation between consolidated income statement and the MD&A management view as of 30 September 2021
Reconciliation between consolidated income statement and the MD&A management view as of 30 September 2021 Adjustments as of 30 September 2021: 1. Impact of business combinations: amortisation of assets exclusively valued when determining the purchase price allocation (PPA), including corresponding t
Slide 35: Reconciliation between consolidated income statement and the MD&A management view as of 30 September 2020
Reconciliation between consolidated income statement and the MD&A management view as of 30 September 2020 (in € millions) Total Etats Ajustements Total Adjusted Financiers Income Consolidés Statement (GAAP) (1) (2) (3) (Management View) Adjustments as of 30 September 2020: 30 septembre 2020 Sales 3,
Slide 36: Appendix 1 - Non-GAAP financial indicators definitions (1/2)
Appendix 1 - Non-GAAP financial indicators definitions (1/2) 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 betwe
Slide 37: Appendix 1 - Non-GAAP financial indicators definitions (2/2)
Appendix 1 - Non-GAAP financial indicators definitions (2/2) ● EBIT before PPA Following the Bombardier Transportation acquisition and with effect from these Fiscal year 2021/22 condensed interim consolidated financial statements, Alstom decided to introduce the “EBIT before PPA” indicator aimed at
Slide 38: www.alstom.com
www.alstom.com www.alstom.com