Alstom Sa · EURONEXT:ALO
Alstom Sa — Shareholder Meeting (July 2013)
75 slides from Alstom Sa's shareholder meeting presentation, Jul 2, 2013
Slide 1: Shareholders' Meeting
Shareholders’ Meeting 2 July 2013
Slide 2: Alstom: Shaping the future
ALSTOM Shaping, the future
Slide 3: Shareholders' meeting 2013
Shareholders’ meeting 2013 • Agenda : See notice of meeting p. 3 • Resolutions : See notice of meeting p. 32 to 36 P3
Slide 4: Alstom & You
Alstom & Ye Patrick Kron ALSTOM Shaping, the future
Slide 5: Shareholding structure
Shareholding structure As of 31 march 2013 Institutions France North America Bouygues Continental Europe (ex. France) Individual shareholders UK & Ireland Employees Rest of the world You are 230,000 shareholders P5
Slide 6: Share price evolution over 1 year
Share price evolution over 1 year An increase of 9%, lower than the CAC 40 index growth (+23%) 160 Base 100 150 140 130 120 CAC 40 Index 110 ALSTOM* 100 90 80 70 60 Jun-12 Jul-12 Aug-12 Sep-12 Oct-12 Nov-12 Dec-12 Jan-13 Feb-13 Mar-13 Apr-13 May-13 Jun-13 Share price at closing : 28 June 2013 * Divi
Slide 7: Dividend
Dividend New increase in dividend In € per share 1.12 1.24 Payment: 9 July 2013 0.80 0.84*** 0.80 0.62 Pay-out ratio 0.40 40 %** 30 % 32 % 32 % 27 % 29 % 25 % xx % 2006/07* 2007/08* 2008/09 2009/10 2010/11 2011/12 2012/13 * Adjusted from the split ** Net result impacted by exceptionally high restruc
Slide 8: Your information
Your information A permanent dialogue with individual shareholders Dedicated web Shareholders Site visits Information Alstom Open page section letter meetings de France www.alstom.com/ Shareholders tribune investors Contact us Email address: [email protected] P8
Slide 9: Alstom in 2012/13
Alstom in 2012/13 Patrick Kron
Slide 10: Three main activities organised in four operational Sectors
Three main activities organised in four operational Sectors Among the top 3 global players for its core activities Power generation Thermal Power Sector Renewable Power Sector Largest thermal technology ~25 % of the installed portfolio in the market base in hydro worldwide (coal, gas, fuel, nuclear)
Slide 11: A balanced portfolio
A balanced portfolio As of 31 March 2013 A worldwide presence Sales ~ € 20 billion 93,000 employees Thermal Power 56,000 Renewable Power Mature countries 37,000 Emerging countries Grid Transport P 11
Slide 12: Corporate Social Responsibility and Sustainable Development commitments (1/2)
Corporate Social Responsibility and Sustainable Development commitments (1/2) At the heart of the strategy • A range of environmentally-friendly products and solutions • An increased commitment to a sustainable supply chain • A reinforced involvement in local activity • A strengthened effort in rais
Slide 13: Corporate Social Responsibility and Sustainable Development commitments (2/2)
Corporate Social Responsibility and Sustainable Development commitments (2/2) • Better working conditions with top priority given to safety • Teams’ mobilisation for innovation • A performance recognised by rating agencies Injury Frequency Rate (12 rolling months) – ALSTOM employees 7.6 6.3 5.5 5.1
Slide 14: Main events 2012/13
Main events 2012/13 Orders momentum supported by geographical redeployment In € billion Order intake • Good level of order intake, despite a 21.7 23.8 still challenging environment 19.1 • Emerging countries representing half of the total orders 58% 59% 49% • Strong commercial performance 2010/11* 20
Slide 15: Main events 2012/13
Main events 2012/13 Major commercial successes thanks to recent R&D initiatives • Thermal Power • A combined cycle power plant in Thailand, featuring upgraded GT 26 gas turbines • Renewable Power • 3 offshore zones of the 1st offshore French tender with 240 turbines Haliade 150 • Grid • DolWin 3, an
Slide 16: Main events 2012/13
Main events 2012/13 Sustained CAPEX for future growth In € million • Capex remaining at a sustained level CAPEX – Around € 500 million per year 504 521 505 • Around 40% in 2012/13 invested in emerging markets – India: Mundra (Thermal), Chennai (Transport) 170 224 190 – China: Tianjin (Hydro) FY2010/
Slide 17: 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 Bhutan Hydro Toluca Grid Phu
Slide 18: Preparing the future
Preparing the future Positions in emerging markets reinforced through JVs and partnerships Russia China • Nuclear (Rosatom) • Steam turbines (Beijing Heavy Electric Machinery Works), • Hydro (RusHydro) nuclear (Dongfang) Key JVs and • HVDC (KER), switchgear (Soyuz), • HVDC (SGCC), transformers (SEC)
Slide 19: Thermal power Key figures
Thermal power Key figures Improvement of operating margin thanks to higher volumes and actions on costs In € million Examples of commercial successes Orders Sales and operating margin • Gas – 12 turbines sold (5 GW), vs. +2% 14 (2.8 GW) in 2011/12 +5% 9,366 9,574 9 179 8 726 • Steam – a new key cont
Slide 20: Renewable power Key figures
Renewable power Key figures Operating margin impacted by low level of sales and price pressure in Wind In € million Examples of commercial successes Orders Sales and operating margin • 2 major projects in Hydro (Ethiopia, +0% Colombia) -11% 2 026 2 029 2 027 • Building up a leadership position in 1
Slide 21: Grid Key figures
Grid Key figures Strong level of orders and operating margin resilience In € million Examples of commercial successes Orders Sales and operating margin • Key projects in HVDC +26% (Dolwin 3, Champa) -5% 5 058 4 013 3 829 • Commercial projects under 4 003 development in Smart Grid 6.2% 6.2% 2011/12 2
Slide 22: Transport Key figures
Transport Key figures Increase in operating margin thanks to volume growth and good project execution In € million Examples of commercial successes Orders Sales and operating margin • Numerous successes in Rolling stock +13% in Europe +6% 7 109 5 168 5 458 6 311 • Maintaining leading positions in Si
Slide 23: Innovation at Alstom
Innovation at Alstom Ronan Stephan, Group Chief Innovation Officer
Slide 24: Innovation: a key pillar of Alstom strategy
Innovation: a key pillar of Alstom strategy Immediate commercial successes and longer term impacts In € million • 20% of equipment orders are made Equipment orders R&D expenses with new products * 2012/13 • Target: enhance the leadership in 737 682 traditional segments and penetrate new markets – Of
Slide 25: Target: anticipate major trends
Target: anticipate major trends Provide solutions for challenges of the future Major trends Consequences for our businesses Alstom technologies and key methods Mobility • Development of urban and regional rail • New ranges of adapted rolling stock equipment • Increased efficiency for transport • Ene
Slide 26: Three vectors to stimulate innovation
Three vectors to stimulate innovation Coordinated actions on three fronts A combination of: Internal programmes Acquisitions Partnerships 3.6% of sales dedicated to R&D in 2012/13 Marine energies • Universities (more than 200 Thermal power • Tidal Generation Ltd. agreements ) • Upgraded GT13 and GT2
Slide 27: Case study: growing urbanisation
Case study: growing urbanisation Tangible solutions for tomorrow’s cities World urban population in 2025 • Changing needs – Manage traffic – Limit pollution (congestion) – Optimise energy – Supply energy demand consumption % of urban population 0-25% Cities • Alstom solutions 1 – 5 million 25-50% 50
Slide 28: Conclusion: staying open to the world
Conclusion : staying open to the world Keeping up a sustained R&D effort over the coming years • One of the main pillars to support Group growth over medium and long term • A key differentiating factor vs. competitors (particularly in emerging markets) • In constant development thanks to agreements
Slide 29: Innovation example: Offshore wind turbine Haliade 150
Innovation example: Offshore wind turbine Haliade 150 Jérôme Pécresse, Renewable Power President
Slide 30: Haliade 150-6MW
Haliade™ 150-6MW Video : first new generation offshore wind turbine Haliade™ 150 • Robust • Simple • Efficient
Slide 31: Haliade 150-6MW: robust, simple, efficient
Haliade™ 150-6MW : robust, simple, efficient A technological edge in the market • First new generation offshore wind turbine with a 150 meters rotor − Robust: ALSTOM PURE TORQUE® − Simple: permanent magnets and direct drive − Efficient: a large rotor for an increased yield 2012 2013 2014 2016 Onshor
Slide 32: First success in offshore wind in France
First success in offshore wind in France 3 zones awarded out of 4 = 1.4 GW • A project for 240 offshore turbines for a total value of around € 2 billion Fécamp FRANCE • Construction start : 2016 500 MW Courseulles-sur-Mer 450 MW Saint-Nazaire 480 MW P 32
Slide 33: Construction of new manufacturing sites in France
Construction of new manufacturing sites in France A convincing industrial plan • Nacelles : assembly factory operational in 2014 Cherbourg • Generators : manufacturing site operational in 2014 • Blades : manufacturing site operational in 2015 • Towers : assembly factory operational in St. Nazaire 20
Slide 34: Second tender offer in offshore wind in France
Second tender offer in offshore wind in France Alstom ideally positioned to bid for the upcoming tenders Overview of French government tender zones • Launch of the 2nd tender for 1st tender zones construction and operation of two wind Won by EDF/Alstom consortium 2nd tender zones farms of a total of
Slide 35: A market with strong international potential
A market with strong international potential An international ambition, mainly in Europe, but also in the rest of the world UK 0.4 Denmark >50 (installed capacity in 2012 : 2.9 GW) GW (installed capacity in 2012 : 921 MW) GW • North Ireland offshore rounds ongoing (600 MW) • A tender for Horns Rev I
Slide 36: Innovation example: VSC and DolWin 3 project
Innovation example: VSC and DolWin 3 project Grégoire Poux-Guillaume, Grid President
Slide 37: HVDC market potential
HVDC market potential • A cumulated market of € 50bn over the next 10 years – A high added-value segment – A target of 20% market share for Alstom • Growth factors – Supergrid development – Increased country interconnections in specific markets (Europe, Middle- HVDC market growth over 10 years East,
Slide 38: How to transport electricity over very long distances?
How to transport electricity over very long distances? DEFINITION: a system of electrical conversion of an alternative current (AC) into direct current (DC) and vice-versa Land connection Offshore connection P 38
Slide 39: Stafford (UK): first Alstom global site for HVDC
Stafford (UK): first Alstom global site for HVDC RESEARCH & DEVELOPMENT – Simulators and demonstrators HVDC VSC – R&D on HVDC control room COMMERCIAL PROJECTS – Participation in new supergrid European project TWENTIES PRODUCTION – Major HVDC projects on each continent, including: – HVDC valves up to
Slide 40: Project Dolwin 3: connection of offshore wind farms in Germany
Project Dolwin 3: connection of an offshore wind farms in Germany LOCATION • German North Sea, 83 km north of Germany CUSTOMER • TenneT Offshore GmbH (Germany) CONTRACT SCOPE • Offshore HVDC VSC converter platform • Onshore HVDC VSC converter COMMERCIAL VALUE • Connecting cable systems • Over € 1 bi
Slide 41: Financial results 2012/13
Financial results 2012/13 Nicolas Tissot
Slide 42: Group operating performance
Group operating performance In € million Income from operations and Sales operating margin 19,934 20,269 1,406 1,463 7.1 % 7.2 % 2011/12 2012/13 2011/12 2012/13 P 43
Slide 43: Income statement
Income statement In € million March 2012 March 2013 Variation Income from operations 1,406 1,463 +4% Grid PPA & acquisition costs (156) (45) Restructuring costs (83) (137) Capital gains & other (95) (94) EBIT 1,072 1,187 + 11 % Financial result (177) (223) Income tax charge (179) (193) Non control.
Slide 44: Free cash flow
Free cash flow Three consecutive semesters of positive free cash flow In € million 800 800 408 300 300 (200) (200) (700) (700) (573) (1 200) (1 200) 2011/12 2012/13 H1 H2 H1 H2 2011/12 2012/13 P 45
Slide 45: Net debt evolution
Net debt evolution In € million (2,492) (2,342) 408 (236) 343 (365) Net Debt Capital increase Free cash flow Dividends Acquisitions & Other Net Debt 31-Mar-2012 31-Mar-2013 P 46
Slide 46: Equity evolution
Equity evolution In € million 343 1 802 (236) (240) 5 104 4 434 31-Mar-12 Net income Capital increase Dividends Pensions Other 31-Mar-13 variations P 47
Slide 47: Outlook
Patrick Kron ALSTOM Shaping, the future
Slide 48: Long-term global context unchanged
Long-term global context unchanged Attractive long-term fundamentals for all end-markets LONG TERM DRIVERS GROUP MARKET IMPACT Demography ● Increasing weight of emerging market demand Electricity consumption ● Driving new equipment for Power (Thermal and Renewable) and Grid connections Ageing of the
Slide 49: Confirmed strategic targets
Confirmed strategic targets GROWTH LEVERS IDENTIFIED Enlarge product offering through a better coverage of current CAPEX markets and development in high growth market segments Develop Service business across Expand in current and adjacent all Sectors markets through partnerships & targeted acquisiti
Slide 50: Updated guidance
Updated guidance Key changing factors from last year Outlook • Volume growth reviewed downwards(-) • Sales to grow organically at low single digit – Economic environment further deteriorated • IFO margin expected to gradually – Clients slowing down some projects increase with • Enhanced action on co
Slide 51: Corporate Governance
Corporate Governance Patrick Kron
Slide 52: Board of Directors
Board of Directors A diversified Board • 9 independent Directors out of 14 (64%) • 6 foreigners (43%) • 3 women (21%) P 53
Slide 53: Evolution of the Board of Directors
Evolution of the Board of Directors Proposed appointment of a Director • Amparo Moraleda – Nationality: Spanish – Principal function: Director of companies – Independent Director – Other current mandates: • French company: Faurecia • International companies : Solvay, Melià Hotels International SA, C
Slide 54: Board of Directors Activity in 2012/13
Board of Directors Activity in 2012/13 • Review of the Group’s financial situation and risks; approval of half-year and annual results Activity of the Board of • Decision to increase capital Directors in 2012/13 • Review of the Group’s growth strategy and its activities • 6 meetings • Review of corp
Slide 55: Audit Committee Activity in 2012/13
Audit Committee Activity in 2012/13 • Review of full year and half year financial information Activity of the Audit • Review of internal control procedures, risk management Committee in 2012/13 and internal audit activity • 4 meetings • Review of the treasury, off-balance sheet commitments • 96 % at
Slide 56: Nominations and Remuneration Committee Activity in 2012/13
Nominations and Remuneration Committee Activity in 2012/13 • Review of the governance practices and internal Activity of the Nominations regulations of the Board over conflicts of interest and Remuneration Committee management and prevention in 2012/13 • Review of CEO’s and non-executive Directors c
Slide 57: Ethics, Compliance and Sustainability Committee Activity in 2012/13
Ethics, Compliance and Sustainability Committee Activity in 2012/13 • Review and approval of the budget increase of the Ethics and Compliance Direction Activity of the Ethics, • Approval of new initiatives to reinforce the Alstom Integrity Compliance and Sustainability Programme and of the new train
Slide 58: Allocation of stock options and performance shares
Allocation of stock options and performance shares • Stable share of beneficiaries: circa 2% of total Group’s headcount • Allocation based on level of responsibility and performance • No discount for the exercise price of stock options • 2012/13 LTI stock options and performance shares subject to pe
Slide 59: 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 60: Shareholders' meeting
Shareholders’ ALSTOM Shaping, the future
Slide 61: Independent Auditors' Report
Independent Auditors’ Report
Slide 62: Dialogue with Shareholders
Dialogue with Share ALSTOM Shaping, the future
Slide 63: Vote of the resolutions
Vote of the resolutions Kareen Ceintre
Slide 64: 1st resolution – Ordinary part of the Meeting
1st resolution – Ordinary part of the Meeting • Approval of the statutory financial statements and operations for the fiscal year ended 31 March 2013
Slide 65: 2nd resolution - Ordinary part of the Meeting
2nd resolution - Ordinary part of the Meeting • Approval of the consolidated financial statements and operations for the fiscal year ended on 31 March 2013
Slide 66: 3rd resolution - Ordinary part of the Meeting
3rd resolution - Ordinary part of the Meeting Dividend : €0.84 per share Allocation of net income : • Income for the financial year € 67,186,173.39 • Amount previously carried forward € 840,001,589.76 • Allocation to the legal reserve € 3,359,308.67 • Distributable income € 903,828,454.48 • Dividend
Slide 67: 4th resolution - Ordinary part of the Meeting
4th resolution - Ordinary part of the Meeting • Independent Auditors’ special report on related party agreements and commitments
Slide 68: 5th resolution - Ordinary part of the Meeting
5th resolution - Ordinary part of the Meeting • Appointing Mrs Amparo Moraleda as a Director
Slide 69: 6th resolution - Ordinary part of the Meeting
6th resolution - Ordinary part of the Meeting • Determination of the amount of the Directors’ fees
Slide 70: 7th resolution - Ordinary part of the Meeting
7th resolution - Ordinary part of the Meeting • Authorisation to be given to the Board of Directors to trade the Company’s shares - Maximum amount: 10% of the share capital - Duration : 18 months
Slide 71: 8th resolution - Extraordinary part of the Meeting
8th resolution - Extraordinary part of the Meeting • Authorisation to be given to the Board of Directors to reduce the share capital by cancellation of shares - Maximum amount: 10% of the share capital - Duration : 24 months
Slide 72: 9th resolution – Extraordinary part of the Meeting
9th resolution – Extraordinary part of the Meeting • Authorisation to the Board of Directors to freely allocate existing or future shares of the Company - Maximum amount: 1% of the share capital * - Of which 0.02% maximum to corporate officers - Duration : 38 months * such amount is deducted from th
Slide 73: 10th resolution - Extraordinary part of the Meeting
10th resolution - Extraordinary part of the Meeting • Authorisation to the Board of Directors to grant stock options giving rights to subscribe to new shares or purchase existing shares in the Company - Maximum amount: 2,5% of the share capital * - Of which 0.10 % maximum to corporate officers - Dur
Slide 74: 11th resolution - Extraordinary part of the Meeting
11th resolution - Extraordinary part of the Meeting • Authorisation to implement the Shareholders’ Meeting’s decisions and complete the formalities
Slide 75: www.alstom.com
www.alstom.co ALSTOM Shaping, the future