Alstom Sa · EURONEXT:ALO
Alstom Sa — Investor Presentation (September 2018)
44 slides from Alstom Sa's investor presentation, September 2018
Slide 1: Alstom presentation September 2018
Alstom presentation September 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 2020 strategy 3 Financial results 4 Outlook 5 Siemens Alstom project ALSTOM – September 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 that it is complete
Slide 4: FY 2017/18 results highlights
FY 2017/18 results highlights Order intake of €7.2bn and backlog of €34.2bn Sales at €8bn with an outstanding growth of 9% (10% organically) Continued profitability improvement with an adjusted EBIT margin reaching 6.5% Positive free cash flow and sound balance sheet • Free cash flow of €128
Slide 5: Agenda: Introduction, 2020 strategy
Agenda 1 Introduction 2 2020 strategy 3 Financial results 4 Outlook 5 Siemens Alstom project ALSTOM – September 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 that it is complete
Slide 6: 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 7: Customer-focused organisation: commercial performance
Customer-focused organisation Commercial performance Orders (in € billion) Backlog (in € billion) 10.0 7.2 0,6 1,4 1,0 2,9 1,1 1,6 34,8 34,2 5,1 3,5 2016/17 2017/18 2016/17 2017/18 Europe Americas MEA Asia Pacific Backlog breakdown as end of March 2018 10.0 7.2 2,0 1,0 Asia Pacific Europe Systems 9%
Slide 8: Main FY 2017/18 orders
Customer focused organisation Main FY 2017/18 orders Sweden: Trains maintenance France: Metro and regional trains Canada: Citadis Spirit LRV contracts Germany: Regional trains in Toronto and Ottawa, associated maintenance for Ottawa Italy: Regional trains, High-speed trains USA: Los Angeles LRV flee
Slide 9: Leader on all continents
Customer focused organisation Leader on all continents 34,500 employees working on 105 sites in 60 countries serving Rankings(1) 200 customers AMERICAS(2) #1 EUROPE EUROPE (3) Top 3 AMERICAS 21,100 EMPLOYEES MIDDLE EAST 5,100 EMPLOYEES AFRICA ASIA PACIFIC MIDDLE EAST AFRICA Top 3 4,700 3,600 EMP
Slide 10: 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 11: Outstanding organic sales growth of 10%
Complete range of solutions Outstanding organic sales growth of 10% Sales (in € billion) 7.3 8.0 c. 9% growth in Rolling Stock • Regional and high-speed trains in Europe 1,5 1,5 1,3 • Beginning of Amtrak project +9% 1,4 1,7 • Regional trains in Algeria 1,3 • On-going execution of PRASA project 3,2
Slide 12: Progress on urban systems projects in Middle-East
Complete range of solutions Progress on urban systems projects in Middle-East Riyadh metro, Kingdom of Saudi Arabia Dubai 2020, United Arab Emirates ALSTOM – September 2018 – P 12 © ALSTOM 2018. All rights reserved. Information contained in this document is indicative only. No representation or
Slide 13: Value creation through innovation: sustained R&D
Value creation through innovation Sustained level of R&D R&D gross costs (in € million) Main R&D programmes As % of sales Renewal of rolling stock ranges Smart mobility programmes Predictive maintenance 278 248 3,4% 3,5% 2016/17 2017/18 ALSTOM – September 2018 – P 13 © ALSTOM 2018. All rights
Slide 14: Recent major launches
Value creation through innovation Recent major launches First commercial success for Coradia iLint in Currently in tests across Europe Germany Innovation label at Busworld’s awards Award of 2018 GreenTec Mobility prize in for Aptis Munich ALSTOM – September 2018 – P 14 © ALSTOM 2018. All rig
Slide 15: Continued strong operational performance
Operational excellence Continued strong operational performance Adjusted EBIT (in € million) Volume increase As % of sales Portfolio mix improvement On-going initiatives for operational excellence +72% 514 421 366 298 6,5% 5,8% 5,3% 4,8% 2014/15 2015/16 2016/17 2017/18 % change reported ALSTOM
Slide 16: Competitive offering
Operational excellence Competitive offering Sourcing Global footprint Alstom Alliance Continued India ramp-up • Premium partnerships with strategic suppliers to • 3,300 people at end March 2018 (vs 2,700 at end support geographical expansion, share innovations March 2017) and mutualise developme
Slide 17: Excellence in delivery: solid project execution
Operational excellence Excellence in delivery: solid project execution PRASA project, South Africa eLoco project, India Amtrak NGHST project, USA ALSTOM – September 2018 – P 17 © ALSTOM 2018. All rights reserved. Information contained in this document is indicative only. No representation or w
Slide 18: Environmental excellence
Environmental excellence On track to achieve 2020 objectives Improve our environmental footprint • Continue our efforts on energy saving, waste and CO2 • ISO 14001 for all operational units with more than 200 people • 2020 objective: energy intensity reduction by 10%. - 2017 status: 9% reduction c
Slide 19: A culture based on diversity & entrepreneurship
A culture based on diversity & entrepreneurship 34,500 employees worldwide Diversity in terms of gender, generation, nationality, social and cultural background targeted: 25% women in management or professional role by 2020 – Status: 20% in 2017/18 ALSTOM – September 2018 – P 19 © ALSTOM 2018.
Slide 20: CSR and Ethics & Compliance
CSR and Ethics & Compliance First AFAQ ISO 37001 certification for anti-bribery management system awarded by AFNOR Alstom selected in the Dow Jones Sustainability World and Europe indices for the 7th consecutive year and now part of the top 5% assessed companies Alstom scores B at CDP’s 2017 c
Slide 21: Agenda: Financial results
Agenda 1 Introduction 2 2020 strategy 3 Financial results 4 Outlook 5 Siemens Alstom project ALSTOM – September 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 that it is complete
Slide 22: Income statement
Income statement % change % change In € million FY 2016/17 FY 2017/18 reported organic Sales 7,306 7,951 9% 10% Adjusted EBIT 421 514 22% Adjusted EBIT margin 5.8% 6.5% Restructuring charges (6) (47) Other charges (57) (86) EBIT 358 381 Financial result (127) (91) Tax result (76) (73) Share in net i
Slide 23: Free cash flow
Free cash flow In € million FY 2016/17 FY 2017/18 Cash Focus programme Adjusted EBIT 421 514 impact Working cap impacted by Depreciation & amortisation 132 137 (49) (37) volatility on short period Restructuring cash-out Capex (150) (202) Ramp-up of transformation R&D capitalisation (70) (81) c
Slide 24: Capex developments
Capex developments Ramp up of transformation capex Capex* (in € million) 150 202 108 47 103 94 2016/17 2017/18 Capex Transformation Capex South Africa factory * excluding capitalised development costs New sites to meet customers’ growing demand for a local presence €159m spent out of c. €300m transf
Slide 25: Liquidity and gross debt
Liquidity and gross debt In € million Liquidity position Liquidity 1,963 €1,231m cash and cash equivalents as of 31 March 2018 1,631 €400m revolving credit facility ; fully undrawn Flexibility with Energy JVs: €2.6bn on 2 October 2018 Mar-17 Mar-18 Undrawn credit line Gross cash In € million G
Slide 26: Net debt
Net debt In € million Net cash/(debt) (208) (104) (255) 128 47 (60) (58) Mar-17 FCF Acq. & disposals* Capital increase** Dividend paid Forex & other Mar-18 * includes GE related separation impact (e.g. IS&T) and advance payment on EKZ shares ** includes Indian Railways contribution to Madhepura capi
Slide 27: Equity
Equity Equity In € million 59 (55) 55 (220) 475 4,027 3,713 Mar-17 Net income* Pensions Dividends Share base payments Forex & other** Mar-18 * Group share ** includes currency translation adjustment of €(234) million ALSTOM – September 2018 – P 27 © ALSTOM 2018. All rights reserved. Information cont
Slide 28: IFRS 15 implementation
IFRS 15 implementation New standard for revenue recognition Effective from fiscal year 2018/19 for Alstom Full retrospective method elected No impact on the cash position and no impact at completion on the economics Change in percentage of completion method from milestones to cost to cost
Slide 29: Agenda: Outlook
Agenda 1 Introduction 2 2020 strategy 3 Financial results 4 Outlook 5 Siemens Alstom project ALSTOM – September 2018 – P 29 © 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
Slide 30: 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 up to 7% Improve cash generation, with possible volatility over some short pe
Slide 31: Agenda: Siemens Alstom project
Agenda 1 Introduction 2 2020 strategy 3 Financial results 4 Outlook 5 Siemens Alstom project ALSTOM – September 2018 – P 31 © 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
Slide 32: Siemens Alstom: vision for the future company
Siemens Alstom: Siemens vision for Alstom the future : vision company pour la future entreprise Create a global player in the rail ... and participate in the transformation industry… of the broader mobility market Growth Capacity to innovate Efficiency Leveraging rail attributes spreading to
Slide 33: Creation of a global leader in Mobility (1/2)
Creation of a global leader in Mobility (1/2) A global leader in Rolling Stock, Signalling, Services and Systems Revenue of rail activities (€bn) Ongoing industry consolidation over recent years… Last available financial year1 Year2 Acquirer Target 2018 Wabtec GE Transportation 2016 Wabtec Faiveley
Slide 34: Creation of a global leader in Mobility (2/2)
Creation of a global leader in Mobility (2/2) This combination with Siemens is the best fit for Alstom Siemens has complementary footprint and strong positioning in rail automation Alstom’s commercial dynamism and sound financial situation allow to seize this opportunity Leverage strengths of the Si
Slide 35: Siemens Alstom combined company key figures
Siemens Alstom combined company key figures 62,300 employees Over 65 main sites €59bn backlog €16bn sales Rank second in global mobility industry ALSTOM – September 2018 – P 35 © ALSTOM 2018. All rights reserved. Information contained in this document is indicative only. No representation or warrant
Slide 36: High value creation potential for shareholders
High value creation potential for shareholders €470m annual pre-tax EBIT savings, 4 years after closing Procurement SG&A R&D and others 2 exceptional distributions, up to €8 per share to existing Alstom shareholders Control premium (Distribution A) Exceptional distribution (Distribution B) Up to €4
Slide 37: Strong financial profile
Strong financial profile Alstom Siemens Mobility2 Group Proforma Ending Sept. 17 Ending Sept. 17 Ending Sept.17 Sales1 €7,493m €8,146m €15,639m EBIT1 €384m €717m €1,196m Net profit1 €388m €536m €994m Targeted net cash at Net (debt)/cash closing: €0.5bn to €1.0bn Notes: 1 Figures extract from the Doc
Slide 38: A governance well balanced
A governance well balanced Combination of Alstom and Siemens mobility business (including traction drive) to create a new company Siemens Alstom: • Listing in France on Euronext Paris • Group headquarters in Paris Area • Led by current Alstom CEO with Siemens controlling combined business ALSTOM –
Slide 39: Future Siemens Alstom Board of Directors
Future Siemens Alstom Board of Directors 11 Directors with complementary skills Roland Busch2 Yann Delabrière3 Clotilde Delbos3 Sigmar H. Gabriel2 Former INDEPENDENT INDEPENDENT INDEPENDENT CTO and member currently Lead Independent Renault Executive Vice German Minister of Foreign Affairs, of the Ma
Slide 40: Indicative timetable
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 contribution • 17 July: Approval by A
Slide 41: www.alstom.com
, AEN Se ao. www.alstom.com ALSTOM pean, vies flac
Slide 42: Contacts and agenda
Contacts and agenda Contacts Agenda Selma BEKHECHI Investor Relations Director +33 (0)1 57 06 95 39 Julien MINOT 14 November 2018 Investor Relations Manager H1 2018/19 Results +33 (0)1 57 06 64 84 [email protected] ALSTOM – September 2018 – P 42 © ALSTOM 2018. All rights reserved. I
Slide 43: Appendix: Q1 2018/19 Orders
Appendix: Q1 2018/19 Orders Orders by region Orders by products (in € billion) (in € billion) 2.6 2.6 0.3 0.0 1.9 1.9 1.0 0.4 0.4 1.5 0.2 0.1 0.4 0.3 0.8 0.8 1.0 0.8 0.6 0.5 Q1 2017/18 Q1 2018/19 Q1 2017/18 Q1 2017/18 Europe Americas MEA Asia Pacific Rolling Stock Systems Signalling Services All fig
Slide 44: Appendix: Q1 2018/19 Sales
Appendix: Q1 2018/19 Sales Sales by region Sales by product (in € billion) (in € billion) 2.0 2.0 1.8 0.2 1.8 0.4 0.2 0.4 0.4 0.3 0.3 + 17 % + 17 % % organic growth 0.3 0.4 0.4 0.4 0.3 1.0 0.9 0.8 0.9 Q1 2017/18 Q1 2018/19 Q1 2017/18 Q1 2018/19 Europe Americas MEA Asia Pacific Rolling Stock Systems