Alstom Sa · EURONEXT:ALO

Alstom Sa — FY2012/13 Earnings Presentation

28 slides from Alstom Sa's earnings presentation, May 6, 2013

  1. Slide 1: EPG Presentation

    EPG Presentation Patrick Kron - CEO May 2013

  2. Slide 2: Agenda

    Agenda 1. Key figures 2012/13 2. Preparing future performance 3. Adapting to current challenging environment 4. Appendices P2

  3. Slide 3: Key figures 2012/13

    Key figures 2012/13 In € million A robust performance in 2012/13 March 2012 March 2013 Variation Orders 21,706 23,770 +10% Book-to-bill ratio 1.09 1.17 Backlog 49,269 52,875 +7% Sales 19,934 20,269 +2% Income from operations 1,406 1,463 +4% Operating margin 7.1% 7.2% Net income 732 802 +10% Free cas

  4. Slide 4: Alstom's portfolio

    Alstom’s portfolio A balanced portfolio with leading positions Sales breakdown FY 2012/13  Services: A growth lever in an uncertain environment P4

  5. Slide 5: Agenda

    Agenda 1. Key figures 2012/13 2. Preparing future performance 3. Adapting to current challenging environment 4. Appendices P5

  6. Slide 6: Strong backlog

    Strong backlog Orders momentum supported by geographical redeployment Examples of major FY2012/13 commercial successes Order intake by geography In € billion 21.7 23.8 THERMAL POWER RENEWABLE POWER 19.1 1.1 1.2 14.9 • 12 turbines sold vs 14 • 2 major projects in 2012/13: 0.9 in FY11/12 (5.0 GW Hydro

  7. Slide 7: R&D – a key pillar of Alstom strategy

    R&D – a key pillar of Alstom strategy Recent R&D efforts paying-off R&D expenses  R&D expenses: 3.6% of sales in FY2012/13 Grid integration 703 737 • Enhancing leadership in traditional segments, 682 and 554 586 558 3.4% 3.4% • Allowing new entry or further penetration of 3.6% fast growing and high

  8. Slide 8: Innovative product offering

    Innovative product offering New products* : 20% of 2012/13 (equipment) orders Equipment orders FY 2012/13 Key examples of new products THERMAL POWER RENEWABLE POWER • Upgraded GT26, GT13 • Eco 122 wind turbines • Power automation and • Variable pump storage in control Hydro GRID TRANSPORT • HVDC (UH

  9. Slide 9: Sustained CAPEX for future growth

    Sustained CAPEX for future growth CAPEX focused on strategic priorities In € million CAPEX 2012/13 CAPEX by Sector 521 470 504 43% 505 38% 361 297 315 334 34% 9% 23% 29% 170 224 190 109 23% FY2009/10 FY2010/11* FY2011/12 FY2012/13 Emerging markets Mature markets % of emerging markets 17% 22% * With

  10. Slide 10: Agenda

    Agenda 1. Key figures 2012/13 2. Preparing future performance 3. Adapting to current challenging environment 4. Appendices P 10

  11. Slide 11: Market environment remaining challenging

    Market environment remaining challenging Short-term contrasted demand THERMAL POWER RENEWABLE 33% POWER 40% Gas Hydro • Growing overall share in energy mix despite postponed New market recovery in mature countries • Current slowdown, but growth expected to resume Installed base Steam • Growing rehab

  12. Slide 12: Market environment remaining challenging

    Market environment remaining challenging Short-term contrasted demand GRID TRANSPORT 33% 40% HVDC Rolling stock • Strong demand in HVDC market with solid key drivers • Continued expansion in urban and regional rolling stock (renewable energy integration, Supergrid development, • Europe remaining sou

  13. Slide 13: Optimisation of operational footprint

    Optimisation of operational footprint Efficiency improvement and positioning in high growth markets  Ufa Hydro  Kassel Grid  Sorel Tracy Transport  France Wind  Astana Transport  France Hydro  Chingang Grid  Chattanooga Thermal  Spain Wind  Shanghai Grid  Annaba, Transport  Bhutan Hydro

  14. Slide 14: Operational excellence – cost competitiveness

    Operational excellence – cost competitiveness Efficiency measures in place • Thermal Ddd Power Renewable • Ddd Power • Ddd Grid Transport • Ddd Supply chain/Sourcing • Standardisation • Restructuring of • Restructuring of • Optimising • Increase LCC sourcing content & modularisation industrial base

  15. Slide 15: Operational excellence – cash focus

    Operational excellence – cash focus Constant effort on Free Cash Flow  All Sectors striving to optimise working capital components, notably through • Lead-time reduction • Decrease of inventories • Tighter management on payables and receivables  Prioritisation of capex • Level expected to remain s

  16. Slide 16: Outlook

    Outlook CONTEXT OUTLOOK  Robust 2012/13 performance • Sales to grow organically at low single digit  Short-term performance expected to be impacted by • Lower volumes driven by • IFO margin expected to gradually increase with • A more challenging environment than initially expected • Stable IFO ma

  17. Slide 17: Contacts & agenda

    Contacts & agenda CONTACTS AGENDA Delphine BRAULT Vice President Investor Relations 28 May 2013 +33 (0)1 41 49 26 42 Filing of Registration Document Anouch MKHITARIAN Investor Relations Manager +33 (0)1 41 49 25 13 02 July 2013 Perrine DE GASTINES Individual Shareholders Coordinator Annual General M

  18. Slide 18: 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

  19. Slide 19: Agenda

    Agenda 1. Key figures 2012/13 2. Preparing future performance 3. Adapting to current challenging environment 4. Appendices P 19

  20. Slide 20: Thermal Power Key figures

    Thermal Power Key figures +2% In € million 9,366 9,574 • Sustained orders with a book-to-bill above 1 for the 5th consecutive semester Orders and book-to-bill 1.07 • 12 gas turbines booked vs 14 in FY11/12: nearly twice 1.04 the level booked last year in MW (5.0 GW vs. 2.8 GW) • Strong activity in s

  21. Slide 21: Renewable Power Key figures

    Renewable Power Key figures +0% In € million 2,026 2,029 • Rebound of Hydro orders in H2 (Columbia, Ethiopia) as Orders and expected book-to-bill 1.13 1.00 • Strong commercial activity in wind with major contracts in Brazil 2011/12 2012/13 -11% 2,027 • H1 impacted by lack of significant milestones r

  22. Slide 22: Grid Key figures

    Grid Key figures +26% In € million 5,058 • Strong successes in HVDC (800kV UHVDC contract in 4,003 Orders and 1.32 India and offshore HVDC in Germany) book-to-bill • Good flow of small and mid-sized contracts 1.00 2011/12 2012/13 -5% 4,013 3,829 • Customers slowing down some projects, impacting sale

  23. Slide 23: Transport Key figures

    Transport Key figures +13% In € million 6,311 7,109 • High level of orders, leading to strong book-to-bill Orders and 1.30 • Orders particularly active in Europe and Americas book-to-bill 1.22 • Urban transport and regional trains representing the bulk of orders 2011/12 2012/13 +6% 5,458 5,168 • Str

  24. Slide 24: Income statement

    Income statement In € million March 2012 March 2013 Variation Sales 19,934 20,269 2% Income from operations 1,406 1,463 4% Operating margin 7.1% 7.2% Grid PPA & acquisition costs (156) (60) Restructuring costs (83) (137) Capital gains & other (95) (79) EBIT 1,072 1,187 11% Financial result (177) (22

  25. Slide 25: Free cash flow

    Free cash flow In € million  Positive free cash flow March 2012 March 2013 after two years of negative figures Income from operations 1,406 1,463  Change in Working Capital driven by: Restructuring cash out (159) (201) • Mix of orders weighing Depreciation 340 348 on the level of downpayments Capi

  26. Slide 26: Net debt & equity evolution

    Net debt & equity evolution In € million Net debt evolution Equity evolution 343 1 802 (236) (240) (2,492) (2,342) 5,104 408 4,434 (236) 343 (365) 31-Mar-12 Capital Free cash Dividends Acquisitions 31-Mar-13 31-Mar-12Net income Capital Dividends Pensions Other 31-Mar-13 increase flow & Other increas

  27. Slide 27: Solid financial structure

    Solid financial structure Actively managing balance sheet Liquidity position: ample room for manoeuvre Gross debt: gradual repayment starting end 2014 In € billion 3.4 3.5 In € million Gross Cash 750 750 750 Undrawn 500 500 500 Credit line 350 31 March 12 31 March 13 • A €1.35 billion syndicated cre

  28. Slide 28: www.alstom.com

    www.alstom.co ALSTOM Shaping the futire

Alstom — FY2012/13 Earnings Presentation on 6ix