Alstom Sa · EURONEXT:ALO
Alstom Sa — Shareholder Meeting (June 2008)
80 slides from Alstom Sa's shareholder meeting presentation, Jun 24, 2008
Slide 1: Shareholders' Meeting
Shareholders’ Meeting 24 June 2008
Slide 2: Agenda - Resolutions
Agenda - Resolutions • Agenda of the Shareholders’ Meeting: Notice of Meeting page 1 • Resolutions: Notice of Meeting pages 31 to 38 P2
Slide 3: Group Situation
Group Situati¢ ALSTOM
Slide 4: Agenda
Agenda 1. Introduction 2. Main events of fiscal year 2007/08 3. Focus on our strategy 4. Financial results of fiscal year 2007/08 5. Outlook and conclusion P4
Slide 5: Alstom responds to its shareholders' confidence
Alstom responds to its shareholders’ confidence
Slide 6: Share price
Share price Strong increase in share price In euros Alstom CAC 40 200 180 160 140 120 100 80 60 07 07 8 7 8 08 07 07 8 8 7 07 -0 l-0 r-0 -0 -0 t-0 g- n- b- v- c- p- n ar ay Ju Ap Au Oc Ju De Ja Fe No Se M P6 Base Alstom: 119.89 euros at 1st June 2007 M
Slide 7: Dividend
Dividend Proposal to double the dividend x2 1.60 0.80 2006/07 2007/08 In euros per share P7
Slide 8: Shareholding structure at March 2008
Shareholding structure at 31 March 2008 215,000 shareholders Employees Rest of Europe France 1% Institutional 22% 30% investors 62% 22% 54% 7% Americas 2% Individual shareholders Asia/Middle East P8
Slide 9: Your information
Your information Alstom at its shareholders service Letter to shareholders: Shareholder meetings: 25 September 2008 in Rennes Internet site: Toll free number: www.alstom.com Actionaria exhibition: Site visits: P9
Slide 10: Alstom applies strict governance
Alstom applies strict governance
Slide 11: Board of Directors
Board of Directors Diversified competencies and experiences • 12 members, of which 7 independent • 4 non-French Directors • 7 meetings in 2007/08 • Main tasks in 2007/08: − Examining of the Group’s financial and strategic situations − Studying of risk mapping process launched within the Group − Annu
Slide 12: Committees
Committees • Audit Committee Jean-Paul Béchat − 6 members, of which 4 independents, including the Committee President President − 3 meetings in 2007/08 − Missions: • To assure the quality, completeness, exactitude and sincerity of accounts and financial communication • To assure good internal audit
Slide 13: Alstom is committed to sustainable and responsible development
Alstom is committed to a policy of sustainable and responsible development
Slide 14: Environment
Environment A major contribution from our activities to the planet’s future improvement Clean combustion Rail transport P 14
Slide 15: Initiatives
Initiatives Strong commitments for the future Adhesion to the Global Compact Creation of an Innovation Board Creation of a Foundation for the environment P 15
Slide 16: Research and Development
Research and Development Build tomorrow’s company 8 pilot sites for CO2 capture Presentation of the AGV (USA, Canada, Germany, France, (February 2008) Norway, Sweden) Development in R&D efforts in 2007/08: +20% P 16
Slide 17: Social
Social More value placed on human resources Creation of an identity and common values: Continuing improvement in safety trust, team and action Frequency rate of accidents at work 12 10 8 6 4 2 0 5 M 5 M 6 7 M 7 8 5 6 7 6 -0 0 0 -0 0 -0 l-0 l-0 l-0 -0 v- v- v- ar ar ar ar Ju Ju Ju No No No M P 17
Slide 18: Social
Social Active management of the Group’s 76,000 employees 12,500 45,000 employees employees 13,200 employees 1,050 employees 4,250 employees • Recruitment, integration, training, mobility • Employee shareholding policy • Charter for suppliers and subcontractors P 18
Slide 19: Agenda
Agenda 1. Introduction 2. Main events of fiscal year 2007/08 3. Focus on our strategy 4. Financial results of fiscal year 2007/08 5. Outlook and conclusion P 19
Slide 20: Financial results 2007/08
Financial results 2007/08 Strong profitable growth • Record commercial activity Orders at 23.5 billion euros (+ 23%) Sales at 16.9 billion euros (+ 19%) • Strong growth in operational performance Income from operations at 1.295 billion euros, an increase of 35% Operating margin increased from 6.7% t
Slide 21: Supporting profitable growth
Supporting profitable growth Recruitments GROWTH Strict and systematic 10,500 people in 2007/08 project control Investments in production capacity increased by 34% P 21
Slide 22: Acquisitions
Acquisitions Targeted external growth to support internal growth • Power generation - Coal: acquisition of Wuhan Boilers Co. in China - Wind: acquisition of Ecotècnia in Spain - Nuclear: partnership with Atomenergomash in Russia • Transport - Signalling: JV 50/50 with Balfour Beatty in the United Ki
Slide 23: Bouygues
Bouygues A fruitful cooperation with Bouygues • A long-term shareholder with a stake in the capital increased to 30% • A commercial and operational partnership • Development of jointly-led projects: contract for the rail system in Trinidad and Tobago, gas power plant in Fos-sur-Mer, nuclear power pl
Slide 24: Agenda
Agenda 1. Introduction 2. Main events of fiscal year 2007/08 3. Focus on our strategy 4. Financial results of fiscal year 2007/08 5. Outlook and conclusion P 24
Slide 25: 2 activities, 3 Sectors
2 activities, 3 Sectors A Group focused on the growing infrastructure markets Power Systems Transport Power Service P 25
Slide 26: Power generation
Power genera ALSTOM
Slide 27: Market
Market A strong global demand • Emerging countries − Strong economic growth creating an important need for power generation • Developed countries − Ageing of the installed base leading to the need for replacement, modernisation and services P 27
Slide 28: Market
Market Demand for a large range of technologies • Environmental constraints − Growth in clean energies, investments in emission control systems • Energy independence − Use of own resources by each State for their electricity production • Raw material prices − Impact on the choice of technology, grow
Slide 29: Our products
Our products An offering as per market needs Gas power plants Coal power plants (No. 3 worldwide) (No. 1 worldwide, excluding China) Hydro activities (No. 1 worldwide) Nuclear power plants* (No. 1 worldwide) Wind P 29 * Conventional islands
Slide 30: Power Systems' strategy
Power Systems’ strategy Promote clean combustion Improvement Development in efficiency of in renewable power plants energies CO2 Capture P 30
Slide 31: Power Systems' strategy
Power Systems’ strategy Overall optimisation of the power plant Boiler Denitrification Steam turbine and system generator Coal Dust Collector Desulphurisation P 31 system
Slide 32: Power Service's strategy
Power Service’s strategy Benefit from our important installed base (25%) • 38 engineering centres • 27 service workshops • 21,000 specialists 0 2 0 9 1 0 8 9 1 0 7 9 1 0 6 9 1 0 5 9 1 0 4 9 1 Power Service workshops Power Service sites Power plants containing at least one Alstom-made equipment P 32
Slide 33: Power Service's strategy
Power Service’s strategy Innovate to differentiate • Extending products’ lifetimes • Reducing environmental impacts • Improving power plants’ performances 0 2 0 9 1 0 8 9 1 0 7 9 1 0 6 9 1 0 5 9 1 P 33
Slide 34: Rail transport
Rail transport ALSTOM
Slide 35: Market
Market Stronger growth than anticipated • Active demand throughout the world − Strong urbanisation and increase in mobility − Increase in fuel prices − Environmental constraints • Growth in all rail transport activities − Sustained market for very high speed and mass transit − Increased needs for se
Slide 36: Our products
Our products Good positioning in rolling stock… Long distance Locomotives Very high speed • Worldwide reference for very high speed High speed Interurban • More than 1,000 CITADIS Regional tramways sold • Threshold of 2,500 metros reached Tramways Metros Speed Short distance P 36
Slide 37: Our products
Our products …and in services and systems Infrastructure Signalling Service and maintenance P 37
Slide 38: Transport's strategy
Transport’s strategy Standardised platforms Very high speed >250kph Intercity trains: from 140kph to 250kph Regional trains: from 100kph to 180kph (La Rochelle, France) (Savigliano, Italy) (Salzgitter, Germany) TGV/AGV PENDOLINO/MINUETTO/X’TRAPOLIS CORADIA Urban trains Locomotives (Valenciennes, Fra
Slide 39: Transport's strategy
Transport’s strategy Grasp increasing opportunities outside Europe Very high speed train projects: Booming markets: • North Africa (tramways…) • Russia (cooperation with Transmashholding in rolling stock) • India (rolling stock, signalling) • Argentina (Buenos Aires-Rosario-Cordoba) • Morocco (Tangi
Slide 40: Agenda
Agenda 1. Introduction 2. Main events of fiscal year 2007/08 3. Focus on our strategy 4. Financial results of fiscal year 2007/08 5. Outlook and conclusion P 40
Slide 41: Group's order intake
Group’s order intake Record commercial activity + 23% 23.5 19 2006/07 2007/08 In billions of euros / Actual figures P 41
Slide 42: Order intake by Sector
Order intake by Sector Further growth in Power, strong increase in Transport Power Systems Power Service Transport + 21% + 8% + 39% 11.6 9.5 7.5 5.4 4.4 4.1 2006/07 2007/08 2006/07 2007/08 2006/07 2007/08 P 42 In billions of euros / Actual figures
Slide 43: Major commercial successes in power generation
Major commercial successes in power generation • 38 gas turbines ordered (of which 18 GT26) • Breakthrough in the desalination market (Fujairah in the Middle East) • Turbine islands for the biggest coal-fired power plant in South Africa (9.6 GW) • Hydro: strong activity in Vietnam, Brazil, Uganda an
Slide 44: Major commercial successes in transport
Major commercial successes in transport • Significant TGV orders in France and Argentina • AGV chosen by a private operator in Italy • PENDOLINO trains for the Helsinki-Saint Petersburg link • METROPOLIS contracts in New York, Brazil, France, Turkey and China • Many CITADIS tramways sold (Dublin, Ro
Slide 45: Order intake by destination
Order intake by destination Balanced distribution in 2007/08, strong growth in Africa/Middle East Europe (50%) North America (13%) Asia/Pacific (14%) South America Africa/Middle East Power Systems (4%) (19%) Power Service Transport P 45
Slide 46: Group's backlog
Group’s backlog Good visibility with a backlog of 28 months of sales + 21% 39.2 32.3 2006/07 2007/08 In billions of euros / Actual figures P 46
Slide 47: Group's sales
Group’s sales Sales growth exceeds forecasts + 19% 16.9 14.2 2006/07 2007/08 In billions of euros / Actual figures P 47
Slide 48: Sales by Sector
Sales by Sector Growth in all Sectors Power Systems Power Service Transport + 37% + 13% + 4% 7.8 5.7 5.5 5.3 3.6 3.2 2006/07 2007/08 2006/07 2007/08 2006/07 2007/08 P 48 In billions of euros / Actual figures
Slide 49: Income from operations and operating margin of the Group
Income from operations and operating margin of the Group Increase in the Group’s operational performance + 35% 7.7% 6.7% 1,295 957 2006/07 2007/08 In billions of euros / Actual figures P 49
Slide 50: Income from operations and operating margin by Sector
Income from operations and operating margin by Sector Significant progress in operational performance in all 3 Sectors Power Systems Power Service Transport + 106% + 16% + 13% 16.4% 15.9% 592 5.3% 510 7.2% 415 6.6% 397 350 3.5% 201 2006/07 2007/08 2006/07 2007/08 2006/07 2007/08 P 50 In billions of
Slide 51: Group's net income
Group’s net income Strong increase of net income + 56% 852 547* *Restated following a change in accounting for pensions 2006/07 2007/08 P 51 In billions of euros / Actual figures
Slide 52: Group's free cash flow
Group’s free cash flow Record level of cash flow + 119% 1,635 745 2006/07 2007/08 P 52 In billions of euros / Actual figures
Slide 53: Balance sheet structure
Balance sheet structure Strengthening of equity Net cash 2,245 1,375* 904 *Restated following a change in accounting for pensions 31 March 2007 (64) 1 April 2007 31 March 2008 31 March 2008 P 53 In billions of euros / Actual figures
Slide 54: Agenda
Agenda 1. Introduction 2. Main events of fiscal year 2007/08 3. Focus on our strategy 4. Financial results of fiscal year 2007/08 5. Outlook and conclusion P 54
Slide 55: New forecasts
New forecasts • March 2010 operating margin forecast reviewed upwards: ~9% for the Group − Power: between 10% and 11% − Transport: between 7% and 8% • Based on current market conditions and trends, the operating margin should further increase beyond March 2010 P 55
Slide 56: We are shaping the future
We are shaping the future P 56
Slide 57: Forward-looking statements
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 ALSTOM wit
Slide 58: www.alstom.com
www.alstom.co Lue ane shaping the feture | ALSTOM
Slide 59: Independent Auditors' reports
Independent Auditors’ reports
Slide 60: Dialogue with Shareholders
Dialogue with Shareholders
Slide 61: Vote of the resolutions
Vote of the resolutions
Slide 62: 1st resolution
1st resolution As an Ordinary Shareholders’ Meeting • Approval of the statutory financial statements and operations for the fiscal year ended 31 March 2008 P 62
Slide 63: 2nd resolution
2nd resolution As an Ordinary Shareholders’ Meeting • Approval of the consolidated financial statements and operations for the fiscal year ended on 31 March 2008 P 63
Slide 64: 3rd resolution: Dividend of €1.60 per share
3rd resolution As an Ordinary Shareholders’ Meeting Dividend: €1.60 per share Allocation of net income: Income for the financial year € 179,967,453.69 Amount previously carried forward €1,262,405,592.23 Allocation to the legal reserve € 4,178,896.40 Distributable income €1,438,194,149.52 Dividend pa
Slide 65: 4th resolution
4th resolution As an Ordinary Shareholders’ Meeting • Independent Auditors’ special report on a related party agreement concluded in a prior fiscal year P 65
Slide 66: 5th resolution
5th resolution As an Ordinary Shareholders’ Meeting • Independent Auditors’ special report on a related party agreement Commitments described in Article L. 225-42-1 of the French Commercial Code made to the benefit of Mr Kron P 66
Slide 67: 6th resolution
6th resolution As an Ordinary Shareholders’ Meeting • Ratification of the co-optation of Bouygues as a Director P 67
Slide 68: 7th resolution
7th resolution As an Ordinary Shareholders’ Meeting • Renewal of the appointment of Mr Jean-Paul Béchat as a Director P 68
Slide 69: 8th resolution
8th resolution As an Ordinary Shareholders’ Meeting • Renewal of the appointment of Mr Pascal Colombani as a Director P 69
Slide 70: 9th resolution
9th resolution As an Ordinary Shareholders’ Meeting • Renewal of the appointment of Mr Gérard Hauser as a Director P 70
Slide 71: 10th resolution
10th resolution As an Ordinary Shareholders’ Meeting • Authorisation to be given to the Board of Directors to trade the Company’s shares Maximum amount: 10% of the share capital P 71
Slide 72: 11th resolution
11th resolution As an Extraordinary Shareholders’ Meeting • Authorisation to issue any type of securities giving access to the Company’s shares or one of its subsidiaries, with maintenance of the preferential subscription rights - Capital increase: €600 millions * - Debt securities: €2 billion ** *
Slide 73: 12th resolution
12th resolution As an Extraordinary Shareholders’ Meeting • Authorisation to issue any type of securities giving access to the Company’s shares or one of its subsidiaries, with cancellation of preferential subscription rights - Capital increase: €250 millions * - Debt securities: €1 billion ** * Suc
Slide 74: 13th resolution
13th resolution As an Extraordinary Shareholders’ Meeting • Authorisation to increase the share capital to remunerate contributions in kind of shares or securities giving access to the Company’s share capital Maximum amount: 10% of the share capital * * Such maximum amount shall reduce the €250 mill
Slide 75: 14th resolution
14th resolution As an Extraordinary Shareholders’ Meeting • Authorisation to issue shares or securities giving access to the Company’s share capital reserved for members of a savings plan Maximum amount: 2% of the share capital * * Overall limit (14th and 15th resolutions) P 75
Slide 76: 15th resolution
15th resolution As an Extraordinary Shareholders’ Meeting • Delegation of authority to increase the share capital with waiver of the preferential subscription rights to a category of beneficiaries Maximum amount: 0,5% of the share capital * * Such maximum amount shall reduce the 2% overall limit (14
Slide 77: 16th resolution
16th resolution As an Extraordinary Shareholders’ Meeting • Two-for-one split of the par value of ALSTOM’s shares P 77
Slide 78: 17th resolution
17th resolution As an Extraordinary Shareholders’ Meeting • Update of Article 15 of the Articles of Association − Distance voting by electronic telecommunication means before Shareholders’ Meetings − Expiry of the two-year period to carry out the consolidation of the shares P 78
Slide 79: 18th resolution
18th resolution As an Extraordinary Shareholders’ Meeting • Authorisation to implement the Shareholders’ Meeting’s decisions and complete the formalities P 79
Slide 80: www.alstom.com
www.alstom.co ALSTOM