EPG presentation Patrick Kron, CEO May 2011

Transcription

1 EPG presentation Patrick Kron, CEO May 2011

2 Agenda 1. Our activities 2. Recent developments 3. Conclusion 4. Appendices P 2

3 Three main activities focused on infrastructures Rail transport Alstom makes 1 metro in 4 and 1 tram in 4 Power generation Leadership positions - 25% of the worldwide installed power generation capacity supplied by Alstom Power transmission Leadership in key markets and fast-growing technologies (disconnectors, GIS, HVDC ) Power Split by activity Grid 17% 27% 56% Transport Sales FY 2010/11 P 3

4 Power Offering Leading positions in all major power generation markets Plant integrator for thermal applications Strong portfolio of CO 2 free technologies Gas N 3 Hydro Nuclear (conventional part) Wind N 1 N 1 Recent small position Presence in Coal N 1* Solar Geothermal Biomass * Excluding Chinese and Indian suppliers P 4

5 Power Positioning A large portfolio of technologies and global coverage NAM EUROPE CHINA INDIA ASIA/ PACIFIC MEA LAM RUSSIA/ CIS Gas Steam Nuclear Strong presence Under development No presence Hydro Wind P 5

6 Power Offering Strong service & retrofit activities Contribution to sales Total World Installed Base: ~4,800 GW 25% 18% 15% Contribution to income from operations 6% FY2010/11 data New build After-market (incl. retrofit) OEM supplied at least the turbine, the generator or the steam generator Source: ALSTOM, UDI (2009) P 6

7 Power Drivers Economic growth Economic outlook improving alongside renewed growth in electricity consumption, particularly in emerging countries Long-term growing market Ageing of power plants Rising modernisation, service and replacement needs Environmental regulations Trend of energy mix diversification (CO2 free technologies), efficiency improvement, CCS P 7

8 Transport Offering A worldwide leader Split by activities Services Infrastructure Rolling stock Signalling Locomotives Very high speed Metro Tram-Train Interurban Regional High speed Tram P 8

9 Transport Drivers A solid market Urbanisation Mobility constantly growing Increase in worldwide population Urban Environmental concerns Necessity of clean and efficient transport modes Rural Today 2025 Infrastructure saturation Congestion in road and air; increasing development of rail networks P 9

10 Grid Offering Products A strong portfolio in key technologies Equipment covering the high to ultra-high voltage Systems One of the leaders in HVDC (high voltage direct current) Supplier of turnkey high voltage substations for renewables (onshore and offshore wind) Automation Leader in Network Management Solutions Strong offering in Substation Automation Solutions Service Maintenance and optimisation of equipment usage P 10

11 Grid Drivers Increasing complexity of networks, need for energy efficiency Increase of demand for electricity and ageing of networks Race for a low carbon energy mix (renewables especially) Need for efficient and safe networks P 11

12 Agenda 1. Our activities 2. Recent developments 3. Conclusion 4. Appendices P 12

13 Key figures (1/2) In million 2010/11 operational performance in line with guidance March 2010 March 2011 Variation Excl. Grid Incl. Grid* Excl. Grid Incl. Grid Sales 19,650 17,270 20,923-12% Income from operations 1,779 1,352 1,570-24% Operating margin 9.1% 7.8% 7.5% +6% -12% Net income 1, ** -62% Dividend per share *** -50% P 13 * Consolidated for 10 months (from June 2010 to March 2011) ** After an after tax negative impact of (406) million due to restructuring charges and (158) million for Grid purchase price allocation and acquisition costs *** To be proposed to the next AGM

14 Key figures (2/2) In million Orders pick up in the second half of 2010/11 March 2010 March 2011 Variation Excl. Grid Incl. Grid* Excl. Grid Incl. Grid Orders received 14,919 15,620 19,054 +5% +28% Backlog 42,561 41,685 46,816-2% +10% Free cash flow 185 (516) * Consolidated for 10 months (from June 2010 to March 2011) Orders received 7, ,016 Free cash flow 447 H1 2010/11 H2 2010/11 (963) P 14 H1 2010/11 H2 2010/11

15 Evolution of the global context After a strong crisis in 2009, growth resumed in GDP growth by region Russia Strong rebound of demand in emerging countries USA 2.8% Brasil Europe 1.7% India 8.5% 3.6% China 10.3% Slow recovery in developed economies 7.6% Source: IHS Global Insight, real GDP Growth P 15

16 Impact on our markets All markets turning positive, supported by growth in emerging countries Power New equipment market Transport Grid In GW 300 In bn Railway market Transmission market In bn Service market 35 In bn / Source: Alstom P 16 Source: Alstom Source: UNIFE 2010

17 Recent development Alstom: a «late-cycle» company entering a new business phase 2008/09 High demand 2009/10+H1 2010/11 Drop of demand H2 2010/11 New business phase , , , , ,67 1, H1 H2 H1 H2 H1 H2 2008/ / /11 P 17 Orders received Grid Orders above 100 million X Book to Bill

18 Strategy Seizing new opportunities Main characteristics of the environment Goals in the new business phase Strong commercial activity back in emerging markets Developed economies remaining weak 1. ADAPT GEOGRAPHICAL PRESENCE Evolution of product demand Broadening competition from Asian players 2. KEEP BEST-IN-CLASS OFFERING P 18

19 1. Adapt geographical presence Orders recovery mainly driven by emerging countries Orders received by region 2009/ /11 65% 40% 10% 25% 25% 35% 35% Developed Countries BRICs Other Emerging Countries Share of emerging countries in orders received 60% P 19

20 1. Adapt geographical presence Strengthening presence in BRICs New partnerships in Russia INTER RAOUES JV with Atomenergomash JV with Transmasholding JV with Bardella Footprint New partnership in Kazakhstan Rostechnologies New partnerships in China MOR Global partnership with SEC in boilers* * April JV Transport + partnerships for EMUs and locomotives 3 JV Power + partnership in nuclear 9 JV Grid P 20 Grid Power Transport Existing partnerships Partnerships signed in 2010/11 JV with Bharat Forge Cooperation agreement with BHEL JV with NTPC in Service Grid n 1 in India New partnership in India under discussion &

21 1. Adapt geographical presence 50/50 JV with Shanghai Electric to create the n 1 boiler company worldwide Boiler Island An integrated model based on in-sourced key components A long-lasting presence in coal plants A top level of technology A strong commercial positioning outside China Boiler A standardised component strategy A high volume of activity A very competitive cost base A very strong position in China The alliance of complementary and strong assets in boilers P 21

22 1. Adapt geographical presence Downsizing in Europe and North America Today Power Thermal Transport Target 13,000-20% 10,500 18,000-8% 16,600 Today 2,600-20% Target 2,100 Permanent positions WESTERN EUROPE NAM TRANSPORT Adaptation to load in three countries: Italy, Germany and Spain POWER Adaptation to market evolution in Power Thermal (Europe and North America) P 22

23 2. Keep best-in-class offering Focusing R&D expenses on high growth segments POWER TRANSPORT GRID GAS Turbine upgrades URBAN Good enough platforms SUPER GRID Ultra High Voltage and High Voltage Direct Current COAL WIND OTHER RENEW. Carbone capture and storage programs Entry in off shore market Tidal, thermal solar etc. VHS SIG Very high speed developments Train Control Systems SMART GRID Integration of decentralised renewable, several demo projects worldwide HYDRO & NUKE P 23 On-going programs

24 2. Keep best-in-class offering Strong assets to differentiate from competition Strong service activity Over 35% of Power s sales 20% of Transport s sales Coal Boiler Denitrification system Steam turbine and Turbogenerator Modest in Grid Systems/turnkey capabilities Combustion system Dust collector Quality and experience Desulphurisation system P 24

25 Agenda 1. Our activities 2. Recent developments 3. Conclusion 4. Appendices P 25

26 Strategic and operational priorities 1. ADAPT GEOGRAPHICAL PRESENCE Expand our positions in emerging markets through partnerships and capex Implement successfully the restructuring programmes in Western Europe and NAM 2. KEEP BEST-IN-CLASS OFFERING Continue R&D programs in key areas Boost and protect our leading positions 3. MAINTAIN FOCUS ON PERFORMANCE Excellence in project execution Actions on costs P 26

27 Outlook Outlook for 2011/12 On-going recovery of orders Operating margin guidance confirmed: between 7% and 8% P 27

28 Agenda 1. Our activities 2. Recent developments 3. Conclusion 4. Appendices P 28

29 Power Orders received Strong rebound of orders in H2 In million Orders by business Renewables Thermal Services Thermal Systems & Products Main orders received by destination in 2010/11 31% Book to bill 750 2, ,280 1,160 1,936 H1 2010/11 H2 2010/ % Hydro and wind THERMAL SYSTEMS & PRODUCTS Gas O&M Wind Nuclear retrofit Coal retrofit 3,631 10% 3,184 Gas turbine 12% Hydro Gas plant repowering ECS THERMAL SERVICES Gas turbines + O&M Boilers Nuclear equipment Nuclear equipment Gas plants + O&M Gas O&M RENEWABLES 32% P 29

30 Power Orders by fuel and region for new equipment Non-CO2 technologies and Asia driving the rebound 2009/ /11 H1 H2 H2 H1 Nuclear Hydro Wind Gas Steam LAM MEA Asia NAM Europe P 30

31 Power Service orders Service orders all time high in 2010/11 In million In million Evolution of Power orders Thermal Systems & Products and Renewables Thermal Services Breakdown of Thermal Services orders Operation & Maintenance contracts Retrofit Regular service 1,564 1,620 1,203 5, Bn 4, / /11 Q1 Q2 Q3 Q4 2010/11 P 31

32 Power Key figures In million March 2010 March 2011 Variation Orders 9,435 9,911 +5% Backlog 23,318 22,169-5% Sales 13,901 11,666-16% Book-to-bill ratio Income from operations 1,468 1,052-28% Operating margin 10.6% 9.0% P 32

33 Power Main events: technology Focus on Renewables and Services WIND Exclusive agreement with EDF Energies Nouvelles for offshore development in France THERMAL SOLAR Investment in Brightsource Energy SERVICE / RETROFIT Strengthening protfolio TIDAL Centre set up in Nantes (France) Tidal turbine prototype to be tested P 33

34 Power Main events: capex Investments in BRICs In million Capex programmes Capex HYDRO WIND STEAM Extension of hydro power factory in China Construction of a wind assembly facility in Brazil Erection of a steam turbines plant in India, together with Bharat Forge 2009/ /11 P 34

35 Transport Orders received Commercial successes across regions and technologies Evolution of orders Main orders received by destination in 2010/11 In million 5,484 Share of emerging countries 5,709 13% Renovation Signaling Metros Metros Regional trains and maintenance Regional trains and Tramways Maintenance Very high speed trains 8% 37% Tramways Locomotives 20% Metros and signaling Metros 8% Metros 14% 50% 20% 2009/ /11 MAIN LINES SERVICE & SIGNALING MASS TRANSIT P 35

36 Transport Key figures In million March 2010 March 2011 Variation Orders 5,484 5,709 +4% Backlog 19,243 19,516 +1% Sales 5,749 5,604-3% Book-to-bill ratio Income from operations % Operating margin 7.2% 7.1% P 36

37 Transport Main events: technology Push forward advanced technologies VHS REGIONAL MASS TRANSIT AGV run-up in Italy Speedelia platform unveiled Allegro trains in operation on the St Petersburg Helsinki line New Coradia Polyvalent in test Partnership with RATP to develop new automatic metros (Metrolab) P 37

38 Transport Main events: capex Investments focused on key products In million Capex programmes Capex SERVICE ROLLING STOCK Maintenance centers Modernisation of European sites New rolling stock plant in Chennai 2009/ /11 P 38

39 Grid Orders received A large volume of orders sustained throughout the year Orders Orders received by country of destination in 2010/11 In million 3,434 9% 30% 978 1,023 1,011 1 Bn 10% 20% 31% 422 Q1* *1 month Q2 Q3 Q4 EMS contracts in Europe and Middle East Offshore substation in Europe GIS in Russia and Brazil P 39

40 Grid Key figures In million March 2011 Orders 3,434 Backlog 5,131 Sales 3,653 Book-to-bill ratio 0.94 Income from operations 218 Operating margin 6.0% P 40

41 Grid Main events: technology Acquisitions and partnerships focused on smarter grid management Acquisition of Uisol, a supplier of software platform for demand response management Creation with Bouygues of Embix, JV to develop energy management services for eco-districts Acquisition of Psymetrix, a specialist in Smart Grid applications Partnership with Microsoft for the Smart Management of Renewable Energy Sources P 41

42 Grid Main events: capex Expansion of industrial footprint In million Capex programmes Capex UHV POWER TRANSFORMERS GAS INSULATED SWITCHGEARS 125 Ultra High Voltage Technology Centre Shanghai, China Power transformer facilities upgrades GIS facilities extension 2010/11 P 42

43 Income statement In million Grid contribution Sales Income from operations and operating margin 19,650 20,923 1, ,570 17, (600) 9.1% 7.5% 2009/ / /10 * Including under-recovery Volume effects* Margin effects Scope 2010/11 P 43

44 Income statement In million March 2010 March 2011 Variation Income from operations 1,779 1,570-12% Grid PPA&acquisition costs NA (203) Restructuring costs (96) (520) Capital gains&other (54) (83) EBIT 1, % Financial result (42) (136) Tax result (385) (141) Non control. interest&other 15 (25) Net result 1, % P 44

45 Free cash flow In million March 2010 March 2011 Income from operations 1,779 1,570 Restructuring cash out (112) (106) Depreciation Capital expenditure (470) (504) R&D cap. & amort. of acq. Techno. (56) (121) Pensions (63) (120) Change in working capital (953) (1,157) Tax cash out (191) (248) Financial cash out (18) (121) Other (9) (62) Free cash flow 185 (516) P 45

46 Net cash/net debt evolution In million 2,222 (516) (364) (2,558) (1,286) (70) Net cash 31 Mar 10 Free cash flow Dividends Acquisitions Other Net debt 31 Mar 11 P 46

47 Funding In million Liquidity position In million Outstanding financial bonds Gross Cash Undrawn Credit line 5, ,271 3,948 3, Mar 08 Mar 09 Mar 10 Mar 11 Maturity date Sept 2014 Oct 2015 Feb 2017 Oct 2018 Mar 2020 Coupon 4% 2.875% 4.125% 3.625% 4.5% P 47

48 Equity evolution In million 462 (364) (90) 43 4,101 4,152 Equity 31 Mar 10 Net income Dividends Pensions variation Other Equity 31 Mar 11 P 48

49 Pensions In million Fair value of assets In million Defined benefit obligations 3, (47) 82 3,763 3,763 4, (258) 61 4,892 3,334 Opening 1 Apr 10 Grid opening Return on assets Net cash out FX & other Closing 31 Mar 11 Opening 1 Apr 10 Grid opening Service costs Discounting & actuarial losses Net cash out FX & other Closing 31 Mar 11 In million Underfunding status Opening 1 Apr 10 Closing 31 Mar 11 P 49 (917) (178) Grid (1,129)

50 Dividend Evolution of dividend In per share ** Annual General Meeting: 28 June 2011 Ex-date: 30 June 2011 Record date: 4 July 2011 Payment date: 5 July / /07* 2007/08* 2008/ / /11 Pay-out ratio 0% 25% 27% 29% 30% 40% P 50 (*) Adjusted from the split (**) To be proposed to the next AGM

51 Contacts & agenda Emmanuelle Châtelain - VP Investor Relations +33 (0) Juliette Langlais - Deputy VP Investor Relations +33 (0) Emmanuelle Douëzy - Individual Shareholders +33 (0) Dymphna Hawksley, Christel Cillard - Logistics +33 (0) / /06/2011 Annual General Meeting 20/07/2011 Orders and sales for the first quarter of FY2011/12 P 51

52 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. P 52

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