Alstom Sa · EURONEXT:ALO
Alstom Sa — Shareholder Meeting (December 2014)
35 slides from Alstom Sa's shareholder meeting presentation, Dec 19, 2014
Slide 1: Extraordinary General Meeting
EXTRAORDINARY GENERAL MEETING 19 December 2014
Slide 2: Introduction
INTRODUCTION Patrick KRON ALSTOM Shaping the futiire
Slide 3: Opening
Opening Kareen CEINTRE – Company Secretary
Slide 4: Agenda of the Shareholders' Meeting and Resolutions
• Agenda of the Shareholders’ Meeting: Notice of meeting, page 3 • Resolutions: Notice of meeting, page 16 Extraordinary General Meeting – 19 December 2014 – P 4
Slide 5: Presentation
PRESENTATION Patrick KRON ALSTOM Shaping the futiire
Slide 6: Agenda
Agenda • Project with General Electric in Energy • Transport perspectives Extraordinary General Meeting – 19 December 2014 – P 6
Slide 7: General Electric's binding offer on Energy
General Electric’s binding offer on Energy GE to acquire Alstom • Scope: Thermal Power, Renewable Power & Grid, central and shared services Energy • Price of €12.35 billion (with some ongoing adjustments, estimated as having globally no material impact on the transaction) • Around 1/3 of proceeds ex
Slide 8: Reminder of the transaction scope
Reminder of the transaction scope TRANSPORT THERMAL POWER RENEWABLE POWER Sales Sales Sales • Gas power 1.8 5.9 • Trains 8.8 • Coal power • Hydro • Signalling • Nuclear • Wind Employees • Services Employees Employees power • New energies • Systems 9 28 36 • Services GRID CENTRAL & SHARED SERVICES Sa
Slide 9: Strong industrial rationale in Energy
Strong industrial rationale in Energy Reinforced growth perspectives • Critical size • Diversification of geographical exposure • Capacity to finance heavy investments Value maximisation • Complementarity of offers: products, systems, services • Financial solidity and GE’s global commercial network
Slide 10: Project with GE: key milestones completed
Project with GE: key milestones completed • Initial offer from General Electric 29 April 2014 • Start of the in-depth examination of the offer by the committee of independent directors chaired by the lead independent director 20 June 2014 • Unanimously favourable opinion of the Board of Directors on
Slide 11: A transaction welcomed by financial markets
A transaction welcomed by financial markets 33 Base: €19.82 (Alstom's share price at 31/03/2014) 31 29 27 25 In € 23 21 19 17 Mar-14 May-14 Jun-14 Jul-14 Aug-14 Sep-14 Oct-14 Nov-14 Dec-14 ALSTOM CAC 40 • Shares outperforming CAC 40 index by c. 40% since the start of FY 2014/15 Extraordinary General
Slide 12: Use of proceeds
Use of proceeds • Support development of the Group • €0.6 billion for the GE Signalling acquisition • €2.6 billion in the JVs with GE • Provide the Group with a solid balance sheet structure • Cash & cash equivalents, after reinvestment, offsetting gross financial debt • Pension deficit reduced to €
Slide 13: Alstom post transaction
Alstom post transaction TRANSPORT (incl. GE Signalling) • 2013/14 pro-forma sales: €6.2 billion 100% • Employees: around 29,500 GRID RENEWABLE POWER NUCLEAR (Alstom Grid + (Hydro, offshore wind, tidal (+ STEAM France) GE Digital Energy) energy) (Conventional islands, EPC in France) Joint ventures 50
Slide 14: Alstom's future governance
Alstom’s future governance • Board • Mandate of six Directors to expire at the next Annual General Meeting • Agreement between Bouygues and the French State: after cash return to shareholders, Bouygues to support the appointment of two Directors designated by the French State, one of which would rep
Slide 15: Next key steps
Next key steps Today • Extraordinary Shareholders’ Meeting to vote on the transaction Ongoing • Antitrust and regulatory authorisations process H1 2015 • Closing Cash to be returned to shareholders after closing: Indicative range of € 3.5-4 billion Extraordinary General Meeting – 19 December 2014 –
Slide 16: Agenda
Agenda • Project with General Electric in Energy • Transport perspectives Extraordinary General Meeting – 19 December 2014 – P 16
Slide 17: Alstom Transport – strong position in a solid market
Alstom Transport – strong position in a solid market Rail: a large, resilient Solid growth expected in Signalling, Services and Urban 1 and growing market trains as well as in Emerging countries 2 Customer-focused geographical footprint Alstom Transport: uniquely positioned TRANSPORT to address crit
Slide 18: A growing worldwide market
1 A growing worldwide market DRIVERS Urbanisation Public funding support Sustainable development Economic growth 2.8% market CAGR for 2011/13 – 2017/19 period Europe [€33bn] CIS +1.7% [€12bn] +0.8% North America France [€22bn] +3.5% [€5bn] +3.5% Asia Pacific +4.2% [€19bn] MEA Latin +2.2% +6.2% [€8bn
Slide 19: A multi-local approach, focused on customers
Alstom: a multi-local approach, focused on customers 2 Global footprint South Africa: Suburban trains and maintenance services • Capture the full potential of fast growing markets • Based on X’Trapolis platform adapted to South African gauge • Mitigate local cycles • First trains exported from Brazi
Slide 20: A complete range of products and solutions
Alstom: a complete range of products and solutions 3 Complete Bundled system offer between Integrated two solutions segments with several Simple products product Increasing demand for integration • A complete portfolio of activity to meet all customer needs Extraordinary General Meeting – 19 Decembe
Slide 21: Differentiation through innovation
4 Alstom: differentiation through innovation • Offering best-in-class technology − Safety and performance Health Hub − Sustainable mobility − Passenger experience • Strengthening the offer Atlas 400 / Atlas 500 − Lowering total cost of ownership for customers • Entering new markets Axonis metro syst
Slide 22: Examples of innovative offers
4 Alstom: examples of innovative offers Energy savings PRASA (South Africa) contract: • Most recent HESOP system leading to significant • Technical support and spare parts for 18 years energy savings (99% brake energy recovery) • Use of latest Alstom technology, e.g., Traintracer • Energy costs may
Slide 23: Profitability improvement
5 Profitability improvement Sound levers • Record backlog providing for highly visible growth • Growing share of services and signalling based on current market trends • Innovative offering of total cost of ownership adapted to latest customer demands • Tight cost control and cost savings through d2
Slide 24: Record backlog supported by commercial successes
Record backlog supported by commercial successes 5 Backlog Order intake In € billion In € billion 26.9 22.7 22.9 6.2 6.9 6.1 H2 3.4 6.4 H1 2.7 Mar'13 Mar'14 Sep'14 2011/12 * 2012/13 * 2013/14 S1 2014/15 * Indicative pro-forma, non-audited figures Extraordinary General Meeting – 19 December 2014 – P
Slide 25: Investing for future growth: R&D
5 Investing for future growth • R&D spending of around € 130 million per year − Axonis and Urbalis Fluence, major innovative solutions in metro systems and signalling − New Citadis trams − HealthHub, a new predictive maintenance tool Extraordinary General Meeting – 19 December 2014 – P 25
Slide 26: Investing for future growth: manufacturing footprint
5 Investing for future growth • Over € 100 million per year invested in expansion of manufacturing footprint during the last three years − Metro factory in Chennai, India − Bogie manufacturing plant in Sorel-Tracy, Canada − Tramway manufacturing facility in Tabauté, Brazil Extraordinary General Meet
Slide 27: Progress of sales and operating profit
5 Progress of sales and operating profit Sales Operating profit and margin In € billion In € million/in % of sales 5.7 330 Pro-forma, restated from IFRS 5.1 5.3 297 5 & 11 264 268 5.6% 3.0 5.4% H2 152 5.1% 5.0% 2.7 3.1 4.7% H1 2011/12 * 2012/13 * 2013/14 H1 2014/15 2011/12* 2012/13* 2013/14* 2013/14
Slide 28: Convincing strategy of global expansion
6 Convincing strategy of global expansion 1986 1995 2000 2007 2011 2014-15 •CASCO (China): JV •Acquisition of •Fiat Ferroviaria •JV with Balfour •CITAL (Algeria): •Acquisition of signalling CMW (Brazil), (Italy): trains, Beatty Rail JV tramways GE Signalling 1999 beginning of propulsion and Projects
Slide 29: Acquisition of GE Signalling and Global Rail Alliance with GE
6 Acquisition of GE Signalling and Global Rail Alliance with GE GE Signalling: a strategic acquisition* Global Rail Alliance • Sales of around €400 million (1,200 • Commercial support from GE in selected employees) geographies (notably in the USA) • Reinforcing Alstom’s global position in Signalling
Slide 30: Alstom - Perspectives
Alstom - Perspectives • Sales and operating profit to increase − Organic sales growth over 5% per year − Gradual improvement of the operating margin within the 5-7% range • A solid balance sheet after deal closing and cash to be returned to shareholders − Debt-free company with strong equity capital
Slide 31: Dialogue with shareholders
DIALOGUE WITH SHAREHOLDERS ALSTOM Shaping the futiire
Slide 32: Vote of the resolutions
VOTE OF THE RESOLUTIONS Kareen CEINTRE- Company Secretary
Slide 33: 1st resolution
1st resolution • Approval of the sale of the Energy (Power and Grid) businesses and corporate and shared services of Alstom to General Electric. Extraordinary General Meeting – 19 December 2014 – P 33
Slide 34: 2nd resolution
2nd resolution • Authorisation to implement the Shareholders’ Meeting’s decisions and complete the formalities. Extraordinary General Meeting – 19 December 2014 – P 34
Slide 35: www.alstom.com
www.alstom.com