6 hours ago - (32). Restructuring charges. Other charges. 180. 5.4%. 3,341. 177. 143. (53). (25). 110. (6). 8. H1 2017/1
Half Year Results Fiscal Year 2018/19 14 November 2018
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 Alstom with the French AMF) that could cause actual results to differ from the plans, objectives and expectations expressed in such forward-looking statements. These such forward-looking statements speak only as of the date on which they are made, and Alstom undertakes no obligation to update or revise any of them, whether as a result of new information, future events or otherwise.
ALSTOM – 14 November 2018 – P 2 © ALSTOM 2018. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should be relied on that it is complete or correct or will apply to any particular project. This will depend on the technical and commercial circumstances. It is provided without liability and is subject to change without notice. Reproduction, use or disclosure to third parties, without express written authority, is strictly prohibited.
Agenda
1
Introduction
2
Market update
3
2020 strategy
4
Financial results
5
Outlook
6
Siemens Alstom project
ALSTOM – 14 November 2018 – P 3 © ALSTOM 2018. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should be relied on that it is complete or correct or will apply to any particular project. This will depend on the technical and commercial circumstances. It is provided without liability and is subject to change without notice. Reproduction, use or disclosure to third parties, without express written authority, is strictly prohibited.
Excellent H1 2018/19 results
Strong commercial momentum leading to a new record-breaking backlog
• Order intake of €7.1bn, backlog of €38.1bn, book-to-bill of 1.8 Outstanding operational performance
• Sales at €4.0bn • Adjusted EBIT at €285m, leading to margin at 7.1% Positive free cash flow and solid balance sheet
• Free cash flow of €172m • Net debt at €(280)m • Equity of €4,021m
ALSTOM – 14 November 2018 – P 4 © ALSTOM 2018. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should be relied on that it is complete or correct or will apply to any particular project. This will depend on the technical and commercial circumstances. It is provided without liability and is subject to change without notice. Reproduction, use or disclosure to third parties, without express written authority, is strictly prohibited.
Agenda
1
Introduction
2
Market update
3
2020 strategy
4
Financial results
5
Outlook
6
Siemens Alstom project
ALSTOM – 14 November 2018 – P 5 © ALSTOM 2018. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should be relied on that it is complete or correct or will apply to any particular project. This will depend on the technical and commercial circumstances. It is provided without liability and is subject to change without notice. Reproduction, use or disclosure to third parties, without express written authority, is strictly prohibited.
Railway traffic evolution Worldwide traffic evolution from 2007 to 2017
Urban Mainline Freight
+3.2%
Average growth (2007–2017) +5.0%
+2.9%
+3.6%
+6.9%
+0.8%
Growth vs LY
Steady growth in passenger traffic for urban and mainline. Freight rebound. Note: Urban figures are for Top 25 cities worldwide; Mainline & Freight traffic figures are for all major national operators worldwide . Sources: Eurostat, UIC, operators’ websites. ALSTOM – 14 November 2018 – P 6 © ALSTOM 2018. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should be relied on that it is complete or correct or will apply to any particular project. This will depend on the technical and commercial circumstances. It is provided without liability and is subject to change without notice. Reproduction, use or disclosure to third parties, without express written authority, is strictly prohibited.
Market forecast Average annual accessible market (€bn) 15/17 – 21/23 CAGR 103
110 8
Middle-East Africa Asia Pacific
Americas
7 17
29
120
+2.6%
9
+4.7%
20
+2.4%
20
31
36
+3.3%
15/17 – 21/23 CAGR 103
9 Urban trains
49
2015-2017
52
10
Mainline trains
10 8
Freight trains
2018-2020
55
9
Regional trains
11 12
120
+2.6%
11
+2.2%
11
+1.2%
13
+5.7%
8
+1.4%
38
+2.5%
8
33
35
21
22
25
+2.8%
Infrastructure Signalling
12
12
13
+2.4%
2015-2017
2018-2020
2021-2023
Services
Europe
110
+2.0%
2021-2023
Growth in all geographical regions and product segments confirmed by latest market study Source: UNIFE Market Study 2018 ; Rail Control Maintenance excluded ALSTOM – 14 November 2018 – P 7 © ALSTOM 2018. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should be relied on that it is complete or correct or will apply to any particular project. This will depend on the technical and commercial circumstances. It is provided without liability and is subject to change without notice. Reproduction, use or disclosure to third parties, without express written authority, is strictly prohibited.
Share of systems within the urban market Share of urban market addressed through systems 2019-2021, Alstom Forecast
System market within urban market Annual average Rest of urban market
35%
41%
MEA LAM
Metro system Tram system
2015-17 Alstom forecast
NAM
Europe APAC
2019-21 Alstom forecast
Market addressed through systems Rest of the urban market
Systems continue to grow up to c.40% of the urban market, especially in MEA and LAM Source: Alstom estimations, UNIFE Market study 2018 ALSTOM – 14 November 2018 – P 8 © ALSTOM 2018. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should be relied on that it is complete or correct or will apply to any particular project. This will depend on the technical and commercial circumstances. It is provided without liability and is subject to change without notice. Reproduction, use or disclosure to third parties, without express written authority, is strictly prohibited.
Agenda
1
Introduction
2
Market update
3
2020 strategy
4
Financial results
5
Outlook
6
Siemens Alstom project
ALSTOM – 14 November 2018 – P 9 © ALSTOM 2018. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should be relied on that it is complete or correct or will apply to any particular project. This will depend on the technical and commercial circumstances. It is provided without liability and is subject to change without notice. Reproduction, use or disclosure to third parties, without express written authority, is strictly prohibited.
An ambitious strategy for 2020 OUR VALUES TEAM, TRUST & ACTION ETHICS & COMPLIANCE
1
OUR STRATEGY
CUSTOMER-FOCUSED ORGANISATION
2
COMPLETE RANGE OF SOLUTIONS
3
VALUE CREATION THROUGH INNOVATION
4
OPERATIONAL AND ENVIRONMENTAL EXCELLENCE
5
DIVERSE AND ENTREPRENEURIAL PEOPLE
OUR BRAND POSITIONING DESIGNING FLUIDITY ALSTOM – 14 November 2018 – P 10 © ALSTOM 2018. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should be relied on that it is complete or correct or will apply to any particular project. This will depend on the technical and commercial circumstances. It is provided without liability and is subject to change without notice. Reproduction, use or disclosure to third parties, without express written authority, is strictly prohibited.
ORGANIC GROWTH BOOSTED BY
SELECTIVE ACQUISITIONS
OUR VISION PREFERRED PARTNER FOR TRANSPORT SOLUTIONS
Customer-focused organisation Strong commercial momentum leading to a new record-breaking backlog Orders (in € billion)
Backlog (in € billion)
3.2
7.1 0.9 0.2 1.7
0.5 0.2 0.9
35.0
38.1
End Sept 2017*
End Sept 2018
4.3
1.5 H1 2017/18 Europe
Americas
H1 2018/19 MEA
Asia Pacific
3.2
7.1
Backlog breakdown as end of September 2018
1.4 0.7 1.1 1.0 0.4 0.4 1.3
4.0
H1 2017/18 Rolling Stock
Systems
H1 2018/19 Signalling
Asia Pacific 14%
Europe 44%
Americas 17%
Middle East & Africa 25%
Services
* Restated for IFRS 9 & 15 ALSTOM – 14 November 2018 – P 11 © ALSTOM 2018. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should be relied on that it is complete or correct or will apply to any particular project. This will depend on the technical and commercial circumstances. It is provided without liability and is subject to change without notice. Reproduction, use or disclosure to third parties, without express written authority, is strictly prohibited.
Rolling stock 52%
Systems 10% Signalling 9%
Services 29%
Customer focused organisation Main H1 2018/19 orders
Norway: on-board train control system Canada: driverless light metro system
Germany: Frankfurt tram
for Montreal
France: next-generation very high speed trains, tram-trains
India: Mumbai metro
Italy: Pendolino trains and maintenance
Morocco: locomotives
Taiwan: Taipei metro system Australia: rolling stock and signalling maintenance for Sydney metro
Strong commercial momentum with very large projects in France and Canada ALSTOM – 14 November 2018 – P 12 © ALSTOM 2018. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should be relied on that it is complete or correct or will apply to any particular project. This will depend on the technical and commercial circumstances. It is provided without liability and is subject to change without notice. Reproduction, use or disclosure to third parties, without express written authority, is strictly prohibited.
Customer focused organisation Order for 100 next-generation very high speed trains
100 next-generation Avelia Horizon very high
speed trains •
Two innovative power cars of reduced length and articulated double-deck passenger cars
•
20% decrease in acquisition cost
•
20% increase in passenger-dedicated areas with up to 740 passengers
•
30% decrease in maintenance costs
•
20% decrease in energy consumption
A contract worth above €2.7 billion for Alstom ALSTOM – 14 November 2018 – P 13 © ALSTOM 2018. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should be relied on that it is complete or correct or will apply to any particular project. This will depend on the technical and commercial circumstances. It is provided without liability and is subject to change without notice. Reproduction, use or disclosure to third parties, without express written authority, is strictly prohibited.
Complete range of solutions Towards more systems, signalling and services
E-bus, tram, metro, suburban/regional, high speed, very high speed, locomotive Components: traction, bogie, motor
43%
Maintenance Modernisation Spare parts, repairs & overhaul Support services
19%
Signalling solutions portfolio for: main lines, urban, control and security Sold as products or solutions
16%
Integrated solutions Infrastructure
22%
Note: % of H1 2018/19 sales ALSTOM – 14 November 2018 – P 14 © ALSTOM 2018. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should be relied on that it is complete or correct or will apply to any particular project. This will depend on the technical and commercial circumstances. It is provided without liability and is subject to change without notice. Reproduction, use or disclosure to third parties, without express written authority, is strictly prohibited.
Complete range of solutions
Sales (in € billion) 3.3
4.0
0.6 +20%
0.6
Above 20% growth in Rolling Stock
0.7
•
0.6
•
Regional and high-speed trains in Europe On-going execution of PRASA project
0.9
0.7 1.7
1.4
Above 30% growth in Systems •
H1 2017/18* Rolling Stock
Systems
H1 2018/19 Signalling
4.0
3.3
0.5 0.9
0.4 0.6 0.7
Europe
+20%
2.0
H1 2017/18*
H1 2018/19
* Restated for IFRS 9 & 15 ALSTOM – 14 November 2018 – P 15
MEA
c. 20% growth in Services •
Increasing contribution of UK and Italy contracts
0.7
1.7
Americas
•
Services
Strong ramp-up on Dubai metro and Lusail tram systems Progress on Riyadh metro system
Increase in Signalling sales • Start of new projects in France and in Australia
Asia Pacific % change reported
© ALSTOM 2018. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should be relied on that it is complete or correct or will apply to any particular project. This will depend on the technical and commercial circumstances. It is provided without liability and is subject to change without notice. Reproduction, use or disclosure to third parties, without express written authority, is strictly prohibited.
Complete range of solutions Strong ramp-up on urban systems projects in Middle-East
Dubai 2020, United Arab Emirates
Lusail tramway system , Qatar
ALSTOM – 14 November 2018 – P 16 © ALSTOM 2018. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should be relied on that it is complete or correct or will apply to any particular project. This will depend on the technical and commercial circumstances. It is provided without liability and is subject to change without notice. Reproduction, use or disclosure to third parties, without express written authority, is strictly prohibited.
Value creation through innovation Sustained level of R&D Main R&D programmes Renewal of rolling stock ranges Smart mobility programmes Predictive maintenance
R&D gross costs (in € million) As % of sales
147 123 3.7%
H1 2017/18*
3.7%
Latest innovations Coradia iLint in passenger service in Germany Launch of StationOne, the online marketplace dedicated to the railway sector
H1 2018/19
* Restated for IFRS 9 & 15 ALSTOM – 14 November 2018 – P 17 © ALSTOM 2018. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should be relied on that it is complete or correct or will apply to any particular project. This will depend on the technical and commercial circumstances. It is provided without liability and is subject to change without notice. Reproduction, use or disclosure to third parties, without express written authority, is strictly prohibited.
Operational excellence Outstanding operational performance
Significant volume increase
Adjusted EBIT (in € million)
Stable portfolio mix
As % of sales
On-going initiatives for operational 285
excellence
+58%
180
7.1%
5.4%
H1 2017/18*
H1 2018/19 % change reported
* Restated for IFRS 9 & 15 ALSTOM – 14 November 2018 – P 18 © ALSTOM 2018. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should be relied on that it is complete or correct or will apply to any particular project. This will depend on the technical and commercial circumstances. It is provided without liability and is subject to change without notice. Reproduction, use or disclosure to third parties, without express written authority, is strictly prohibited.
Operational excellence Competitive offering Sourcing
Global footprint
Alstom Alliance
Continued India ramp-up
• Premium partnerships with strategic suppliers to support geographical expansion, share innovations and mutualise development of key components
• Headcount have almost doubled since March 2016
3,500
• Quality, cost-effective and reliable solutions
Global sourcing • Increase of global sourcing volume
1,800
• c.50% purchased in low cost countries March - 16
ALSTOM – 14 November 2018 – P 19 © ALSTOM 2018. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should be relied on that it is complete or correct or will apply to any particular project. This will depend on the technical and commercial circumstances. It is provided without liability and is subject to change without notice. Reproduction, use or disclosure to third parties, without express written authority, is strictly prohibited.
Sept - 18
Operational excellence Excellence in delivery: solid project execution
PRASA project, South Africa
Riyadh metro, Kingdom of Saudi Arabia
ALSTOM – 14 November 2018 – P 20 © ALSTOM 2018. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should be relied on that it is complete or correct or will apply to any particular project. This will depend on the technical and commercial circumstances. It is provided without liability and is subject to change without notice. Reproduction, use or disclosure to third parties, without express written authority, is strictly prohibited.
Agenda
1
Introduction
2
Market update
3
2020 strategy
4
Financial results
5
Outlook
6
Siemens Alstom project
ALSTOM – 14 November 2018 – P 21 © ALSTOM 2018. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should be relied on that it is complete or correct or will apply to any particular project. This will depend on the technical and commercial circumstances. It is provided without liability and is subject to change without notice. Reproduction, use or disclosure to third parties, without express written authority, is strictly prohibited.
Income statement
H1 2017/18*
H1 2018/19
% change reported
3,341
4,010
20%
Adjusted EBIT
180
285
Adjusted EBIT margin
5.4%
7.1%
58%
Restructuring charges Other charges
(19) (18)
(34) (32)
EBIT
143
219
Financial result Tax result Share in net income of equity investees Minority interests from continued op. Net income – Discontinued operations **
(53) (25) 110 (6) 8
(46) (12) 161 (4) 245
Net income – Group share
177
563
In € million
Sales
* Restated for IFRS 9 & 15 ** Group share ALSTOM – 14 November 2018 – P 22 © ALSTOM 2018. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should be relied on that it is complete or correct or will apply to any particular project. This will depend on the technical and commercial circumstances. It is provided without liability and is subject to change without notice. Reproduction, use or disclosure to third parties, without express written authority, is strictly prohibited.
% change organic
23%
Free cash flow
In € million
Adjusted EBIT
H1 2017/18*
H1 2018/19
180
285
Cash Focus Programme
Limited change in working
capital 75
82
Restructuring cash-out
(18)
(19)
Capex
(85)
(85)
R&D capitalisation
(26)
(27)
Change in working capital
128
(10)
Financial cash-out
(16)
(29)
Tax cash-out
(47)
(73)
Other**
36
48
Free cash flow
227
172
Depreciation & amortisation
* Restated for IFRS 9 & 15 ** Includes free cash flow from discontinued operations ALSTOM – 14 November 2018 – P 23 © ALSTOM 2018. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should be relied on that it is complete or correct or will apply to any particular project. This will depend on the technical and commercial circumstances. It is provided without liability and is subject to change without notice. Reproduction, use or disclosure to third parties, without express written authority, is strictly prohibited.
Potential volatility on short
period remains Phasing of financial cash-out
and capex
Capex developments
Progressive ramp up of transformation capex
South Africa factory
Capex* (in € million)
85
85
45
52
40
33
H1 2017/18**
H1 2018/19
Capex
Transformation Capex
New sites to meet customers’ growing demand for a local presence €212m spent out of c. €300m transformation capex * Excluding capitalised development costs ** Restated for IFRS 9 & 15 ALSTOM – 14 November 2018 – P 24 © ALSTOM 2018. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should be relied on that it is complete or correct or will apply to any particular project. This will depend on the technical and commercial circumstances. It is provided without liability and is subject to change without notice. Reproduction, use or disclosure to third parties, without express written authority, is strictly prohibited.
Liquidity and gross debt Liquidity position
In € million
Liquidity 1,797
1,631
€1,397m cash and cash equivalents as of 30 September
2018 €400m revolving credit facility ; fully undrawn €2,594 cash payment for Energy JVs received on 2 Mar-18
Sep-18
Undrawn credit line
Gross debt
Gross debt
In € million
596 453
Interest rate
Feb 2017 4.13%
Oct 2017 2.25%
282
Oct 2018 3.63%
€1,249m outstanding bonds as of 30 September 2018 €371m reimbursed at maturity in October 2018
371 272
October 2018
Gross cash
July 2019 3%
Next maturity in July 2019 (€282m)
March 2020 4.5%
ALSTOM – 14 November 2018 – P 25 © ALSTOM 2018. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should be relied on that it is complete or correct or will apply to any particular project. This will depend on the technical and commercial circumstances. It is provided without liability and is subject to change without notice. Reproduction, use or disclosure to third parties, without express written authority, is strictly prohibited.
Net debt In € million
Net cash/(debt)
(255)
(280)
(136) 172 5 (84) 18
Mar-18
FCF
Acq. & disposals*
Capital increase
* Includes €115 million investments in TMH Locotech ALSTOM – 14 November 2018 – P 26 © ALSTOM 2018. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should be relied on that it is complete or correct or will apply to any particular project. This will depend on the technical and commercial circumstances. It is provided without liability and is subject to change without notice. Reproduction, use or disclosure to third parties, without express written authority, is strictly prohibited.
Dividend paid
Forex & other
Sept-18
Equity
Equity In € million
16
(78)
16
25 4,021
563
3,479
Mar-18*
Net income**
Pensions
Dividends
Share base payments
* Restated for IFRS 9 & 15 ** Group share ALSTOM – 14 November 2018 – P 27 © ALSTOM 2018. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should be relied on that it is complete or correct or will apply to any particular project. This will depend on the technical and commercial circumstances. It is provided without liability and is subject to change without notice. Reproduction, use or disclosure to third parties, without express written authority, is strictly prohibited.
Forex & other
Sept-18
Agenda
1
Introduction
2
Market update
3
2020 strategy
4
Financial results
5
Outlook
6
Siemens Alstom project
ALSTOM – 14 November 2018 – P 28 © ALSTOM 2018. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should be relied on that it is complete or correct or will apply to any particular project. This will depend on the technical and commercial circumstances. It is provided without liability and is subject to change without notice. Reproduction, use or disclosure to third parties, without express written authority, is strictly prohibited.
Outlook At constant perimeter and exchange rates. In accordance with IFRS 15.
Medium term
FY 2018/19
Outperform the market growth Sales to reach around €8bn
Gradually improve profitability
aEBIT margin to reach around 7%
Improve cash generation, with possible
volatility over some short periods
ALSTOM – 14 November 2018 – P 29 © ALSTOM 2018. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should be relied on that it is complete or correct or will apply to any particular project. This will depend on the technical and commercial circumstances. It is provided without liability and is subject to change without notice. Reproduction, use or disclosure to third parties, without express written authority, is strictly prohibited.
Agenda
1
Introduction
2
Market update
3
2020 strategy
4
Financial results
5
Outlook
6
Siemens Alstom project
ALSTOM – 14 November 2018 – P 30 © ALSTOM 2018. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should be relied on that it is complete or correct or will apply to any particular project. This will depend on the technical and commercial circumstances. It is provided without liability and is subject to change without notice. Reproduction, use or disclosure to third parties, without express written authority, is strictly prohibited.
Siemens Alstom project update Indicative timetable
First half 2019
Closing conditions:
Some key milestones already achieved Note 1: As described in the Business Combination Agreement
ALSTOM – 14 November 2018 – P 31 © ALSTOM 2018. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should be relied on that it is complete or correct or will apply to any particular project. This will depend on the technical and commercial circumstances. It is provided without liability and is subject to change without notice. Reproduction, use or disclosure to third parties, without express written authority, is strictly prohibited.
•
28 May: MINEFI clearance (French State – foreign investment control)
•
29 May: confirmation from the AMF that no public mandatory tender offer will have to be filed by Siemens following completion of the contribution
•
17 July: Approval by Alstom Shareholders’ meeting
•
Siemens Mobility carve-out1
•
Antitrust and other regulatory approvals
Q&A
ALSTOM – 14 November 2018 – P 32 © ALSTOM 2018. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should be relied on that it is complete or correct or will apply to any particular project. This will depend on the technical and commercial circumstances. It is provided without liability and is subject to change without notice. Reproduction, use or disclosure to third parties, without express written authority, is strictly prohibited.
Contacts and agenda
Agenda
Contacts Julien MINOT Investor Relations Manager +33 (0)1 57 06 64 84
17
Q3 2018/19 Orders and Sales
7
[email protected]
January 2019
May 2019
Full Year 2018/19 Results
ALSTOM – 14 November 2018 – P 33 © ALSTOM 2018. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should be relied on that it is complete or correct or will apply to any particular project. This will depend on the technical and commercial circumstances. It is provided without liability and is subject to change without notice. Reproduction, use or disclosure to third parties, without express written authority, is strictly prohibited.
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