Alstom SA · EURONEXT:ALO
Alstom SA — Investor Presentation (September 2003)
18 slides from Alstom SA's investor presentation, Sep 23, 2003
Slide 1: Analysts Presentation
Analysts Presentation September 23, 2003
Slide 2: Disclaimer
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Slide 3: A revised financing package
A revised financing package z Constructive discussions with European Commission, French State and banks z Financing package increased from €2.8bn to €3.2bn Equity/Long-term instruments strengthened from €1.5bn to €1.7bn Medium-term loans increased from €1.3bn to €1.5bn Short-term facilities increase
Slide 4: Main features of the revised financing package
Main features of the revised financing package: in € million z Equity guaranteed by banks 1,200 Capital increase 300 Bonds mandatorily reimbursable with shares (ORA) 900* z Long-term instruments from French State 500 20-year bond convertible into shares if approved by EC 300 15-year bond 200 z Mediu
Slide 5: Capital increase
Capital increase z Capital increase with preferential subscription rights or through the issuance of warrants for existing shareholders giving them equivalent rights Amount: €300 million Price: 1.25€ per share z Guaranteed by a syndicate of banks z EGM on 18th November for approval 5
Slide 6: ORA
ORA z Bonds mandatorily reimbursable with shares (ORA) with preferential subscription rights for existing shareholders z Terms: Amount: €900m (may be increased up to €1,000m) Price: 1.40€ per bond Coupon: 2% capitalised for the first year Conversion ratio: one share for one ORA Maturity: 31 December
Slide 7: Bond convertible into shares
Bond convertible into shares z Terms: Amount: €300m Price: €1.25 per share Maturity: 20 years Coupon: Euribor+500bps (of which 150bps capitalised) z Reserved for the French State z Convertible into shares upon EC approval z EGM on 18th November for approval 7
Slide 8: Bond
Bond z Terms Amount: €200m Maturity: 15 years Coupon: Euribor+500bps (of which 150bps capitalised) z Reserved for the French State 8
Slide 9: Subordinated loans
Subordinated loans z Amount: €1,500m €1,200m from banks €300m from French State z Interest rate per annum: Euribor + 450 bps (of which 150 bps capitalised) z Maturity: 5 years z Early repayment allowed at ALSTOM’s option 9
Slide 10: Short-Term Facilities
Short-Term Facilities z €1,500 million to cover liquidity requirements until full implementation of the financing package: €300m from banks (including the sale for €180m of a credit to a cruise-ship owner) €1,200m from the French State z Maturity: €900m to be reimbursed in Dec. 03/Jan. 04 €420 m to
Slide 11: Bonds & Guarantees
Bonds & Guarantees z Objective To ensure coverage of Alstom’s bonding needs Necessary to secure orders, pre-payments and execute contracts z Structure Implementation of a €3,500m syndicated contract bonds facility provided by banks 65% of each bond counter-guaranteed by the French State 11
Slide 12: Debt Refinancing Package
Debt Refinancing Package z Main Purposes: To repay bridge loans maturing December 2003/January 2004 To repay on maturity the €550m bond maturing in February 2004 To repay the €1,250m revolving credit facility maturing in April 2004 To fund working capital requirements z Credit lines maturity post-re
Slide 13: H1 03/04 guidance
H1 03/04 guidance z Orders at around €7 billion, down 25% on a comparable basis* Weak markets in power generation new equipment Customer concerns as to ALSTOM’s future Difficulties in obtaining contract bonds z Operating margin just over 1% More conservative assessment of the costs to complete some
Slide 14: Disposal Programme
Disposal Programme z Agreement with Areva on the disposal of T&D to be signed shortly Enterprise value of around €950m, subject to usual closing adjustments Closing expected in January 2004 after completion of usual conditions precedent (employee consultation, EC clearance and legal reorganisation)
Slide 15: Time Schedule
Time Schedule End of September 2003: - T&D agreement signed - Signing of subordinated loans - Implementation of additional short-term facilities by State 13 November 2003: - Publication of half year results 18 November 2003: - Extraordinary Shareholders’ Meeting (EGM) End of November 2003: - Launch
Slide 16: Forward-Looking Statements
Forward-Looking Statements This presentation contains, and other written or oral reports and communications of ALSTOM may from time to time contain, forward-looking statements, within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Exa
Slide 17: Slide 17
Slide 18: Exhibit: Comparison financing package September/August
Exhibit 1 Comparison financing package 23 September/6 August in € million 23 September 6 August EQUITY: Capital increase 300 300 Capital increase reserved for the French State - 300 Underwritten ORA 900 900 LONG-TERM INSTRUMENTS: Bond (20 years) reserved for the French State 300 Bond (15 years) rese