Alstom Sa · EURONEXT:ALO
Alstom Sa — H1 2004/05 Earnings Presentation
31 slides from Alstom Sa's earnings presentation, Nov 18, 2004
Slide 1: Half-Year Results Fiscal Year 2004/05
Half-Year Results Fiscal Year 2004/05 18 November 2004
Slide 2: Agenda
Agenda ! Overview P. Kron ! Operational plan P. Kron ! Sectors review P. Kron ! Financial Results H. Poupart-Lafarge ! Conclusion P. Kron 2
Slide 3: Main events in H1-04/05
Main events in H1-04/05 ! Financial restructuring successfully completed ! Rebound of orders supported by strengthened customer confidence ! Turnaround actions starting to bear fruits with improved Sept 04 results, in line with guidance A new profile 3
Slide 4: H1-04/05 Results
H1-04/05 Results ! Orders Received at €8.4Bn, up 51% on a comparable basis ! Backlog at €27Bn (25 months of sales) ! Sales at €6.4Bn, down 12% on a comparable basis ! Operating margin at 3.6%, up from 1.8% reported in fiscal year 2003/04 ! Net loss of €(315)m ! Free Cash flow at €(294)m Overall in l
Slide 5: Agenda
Agenda ! Overview P. Kron ! Operational plan P. Kron ! Sectors review P. Kron ! Financial Results H. Poupart-Lafarge ! Conclusion P. Kron 5
Slide 6: Orders
Orders € million Comparable orders Same scope and exchange rate 8461 8362 7680 " High level of orders 6168 except in turnkey power 5525 plants " Continuing improvement of gross margin in order intake " Healthy book-to-bill at 1.3 H1-02/03 H2-02/03 H1-03/04 H2-03/04 H1-04/05 H1 04/05 vs H1 03/04 : +5
Slide 7: GT24/GT26
GT24/GT26 € million Cash impact: Mitigation plan evolution: 1,055 766 March 03 454 around 400 March 04 234 H2 206 H1 September 04 108 March 03 March 04 March 05 " 1,100,000 operating hours " 65 commercial settlements out of 76 – 50 unconditional (42 in March 04) " New award of turnkey combined cycle
Slide 8: Restructuring plans
Restructuring plans ! Plans under execution progressing according to schedule – 6,300 departures completed at end of Sept 04 out of the planned 8,400 headcount reduction ! New plans concerning 1,000 positions announced since March 04 including: – Restructuring plan in PTS/PE Switzerland – Other adju
Slide 9: Agenda
Agenda ! Overview P. Kron ! Operational plan P. Kron ! Sectors review P. Kron ! Financial Results H. Poupart-Lafarge ! Conclusion P. Kron 9
Slide 10: ALSTOM - Actuals
ALSTOM - Actuals € million H1-03/04 H2-03/04 H1-04/05 Orders 7,439 9,061 8,362 Sales 8,854 7,834 6,402 Backlog 27,174 25,368 27,077 Operating Income 132 168 233 Operating Margin 1.5% 2.1% 3.6% 10
Slide 11: ALSTOM - Comparables
ALSTOM - Comparables € million Same Scope and exchange rate H1-03/04 H2-03/04 H1-04/05 Var H1/H1 Orders 5,525 8,461 8,362 +51% Sales 7,296 7,197 6,402 -12% Backlog 24,650 25,174 27,077 +10% Operating Income 35 142 233 - Operating Margin 0.5% 2.0% 3.6% - 11
Slide 12: Power Turbo-Systems/Power Environment
Power Turbo-Systems/Power Environment € million Same Scope and exchange rate " PTS & PE Sectors combined as H1-03/04 H2-03/04 H1-04/05 per management organisation Orders 1,865 3,223 2,194 " Good first half in hydro but no major turnkey (coal, gas) order Sales 2,514 2,538 1,817 " Very low point in sa
Slide 13: Power Service
Power Service € million Same Scope and exchange rate H1-03/04 H2-03/04 H1-04/05 " High level of orders, including Orders 1,328 1,656 1,725 long-term contracts Sales 1,322 1,374 1,427 " Sustained growth " Profitability maintained at high Backlog 2,775 3,079 3,412 level Operating Income 191 229 232 Op
Slide 14: Transport
Transport € million Same Scope and exchange rate H1-03/04 H2-03/04 H1-04/05 " Continuing high level of order Orders 1,658 3,041 2,886 intake Sales 2,295 2,564 2,485 " Sales to grow following current Backlog 13,646 14,180 14,681 increase in orders and strong backlog Operating Income (31) 98 119 Opera
Slide 15: Marine
Marine € million Same Scope and exchange rate H1-03/04 H2-03/04 H1-04/05 " Order of 2 cruise-ships from MSC Orders 340 41 1,101 " Current under-recovery strongly Sales 822 175 274 impacting performance Backlog 1,041 817 1,624 " Significant headcount reduction Operating Income 4 (23) (34) over the co
Slide 16: Power Conversion
Power Conversion € million Same Scope and exchange rate H1-03/04 H2-03/04 H1-04/05 Orders 218 215 300 " High order intake due to long term contracts Sales 214 279 257 " Strong profitability turnaround Backlog 559 490 536 " project execution Operating Income 1 14 17 " cost reduction Operating Margin
Slide 17: Agenda
Agenda ! Overview P. Kron ! Operational plan P. Kron ! Sectors review P. Kron ! Financial Results H. Poupart-Lafarge ! Conclusion P. Kron 17
Slide 18: Income Statement -1-
Income Statement -1- € million H1-03/04 H2-03/04 H1-04/05 Operating Income 132 168 233 " Low restructuring Restructuring (276) (379) (69) in H104/05 due to Pensions (138) (125) (84) phasing Capital gain and others 17 (210) (24) " Reduction in Intangible amortisation (31) (29) (29) pension costs due
Slide 19: Income Statement -2-
Income Statement -2- € million H1-03/04 H2-03/04 H1-04/05 EBIT (296) (575) 27 " Exceptional Financial Income (expenses) (220) (240) (185) fees included Income Tax 29 (280) (40) (2) 4 in financial Minority Interest, and others (3) income Net Income before goodwill (489) (1,091) (201) Goodwill amortis
Slide 20: Financial result
Financial result € million H1-03/04 H2-03/04 H1-04/05 Net interest income (expenses) (152) (119) (122)* Foreign currency exchange gain and loss (20) 1 (13) Fees and others (48) (122) (50) Financial income (expenses) (220) (240) (185) *Including €(10)m on SPEs 20
Slide 21: Free Cash Flow
Free Cash Flow € million H1-03/04 H2-03/04 H1-04/05 EBIT before restructuring (20) (196) 96 Depreciation/amortisation 159 221 180 Restructuring cash (139) (218) (122) Interest and tax (268) (294) (225) Change in Marine working capital 245 (39) (116) Change in working capital (excl. (171) 695 139 Mar
Slide 22: Accounting changes
Accounting changes 1) Consolidation of SPEs ! Cruiseinvest (Renaissance) – 6 vehicles, all ships today under leases arrangements – Impact on opening debt: €113m # Consolidation of only 1 vehicule (1 ship) ! Festival – Impact on opening debt: €96m ! RCCL – 2 ships today under leases arrangements – Im
Slide 23: Accounting changes
Accounting changes 2) Vendor Financing ! Change in presentation as a result of SPE consolidation ! Change in exposure only due to the sale of two ships 3) Pensions ! Swiss cash balance pension plan accounting treatment change from defined contribution to defined benefits – Impact on projected benefi
Slide 24: Equity
Equity Capital € million increase Net income (315) Other 1,903 1,706 (36) Conversion 139 of TSDDRA 69 300 249 ORA 152 1,695 Minority interests 68 Equity 29 March 04 Sept 04 Increase of equity by almost €1.7Bn 24
Slide 25: Evolution of debt
Evolution of debt € billion FCF Financial 3.7 0.3 operations* Consolidation 0.8 Net Financial of SPEs 1.3 Other** Debt incl. SPEs 0.1 2.4 0.2 Net Financial Debt 2.9 0.6 1.8 March 04 Sept 04 Restated Reduction of debt by €1.3Bn *Net of €700m cash collateral **Including movements on securitisation of
Slide 26: IFRS impact
IFRS impact ! Pension ! Capitalisation of development costs ! Capital leases and long term rental ! Goodwill and intangible 26
Slide 27: Agenda
Agenda ! Overview P. Kron ! Operational plan P. Kron ! Sectors review P. Kron ! Financial Results H. Poupart-Lafarge ! Conclusion P. Kron 27
Slide 28: Guidance FY 04/05
Guidance FY 04/05 ! Orders forecast: €15-16Bn, ie significantly above FY03/04 orders on a comparable basis ! Sales: approximately 5% below FY03/04 level (€14.4Bn) on a comparable basis ! Operating margin forecast: confirmed between 3.5% and 4.0% ! FCF forecast: confirmed at app. €(400)m 28
Slide 29: To conclude
To conclude ! Significant progress during H1-04/05 : – Financial situation strengthened – Continuing improvement of risk profile – Turnaround actions starting to bear fruits Financial targets for March 2006 confirmed: Operating margin: 6% Positive free cash flow 29
Slide 30: Safe Harbour Statement
Safe Harbour Statement US Private Securities Litigation Reform Act 1995 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 21
Slide 31: www.alstom.com
www.alstom.com