2020 strategy

6 hours ago - (32). Restructuring charges. Other charges. 180. 5.4%. 3,341. 177. 143. (53). (25). 110. (6). 8. H1 2017/18*. (19). (18). * Restated for IFRS 9 & ...
2MB Sizes 0 Downloads 237 Views
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.

www.alstom.com