ALSTOM TRANSPORT Philippe MELLIER TRANSPORT. Nomura Rail Seminar September 6th 2010

Transcription

1 ALSTOM TRANSPORT Philippe MELLIER TRANSPORT Nomura Rail Seminar September 6th 2010

2 Agenda: 2 sections Railways Market Alstom Transport Today p. 2

3 Agenda Railways Market Alstom Transport Today p. 3

4 Railway activities have been hit by recession less severely than other sectors TODAY Traffic Pass.km Approximately flat Improvement expected when employment recovers PASSENGER FREIGHT INFRASTRUCTURE Traffic Ton.km Spending -25 to -35% throughout 2009 Slow recovery expected, pre-crisis level by Stimulus plans but public debt limiting / delaying investments (*) CAGR in EU27 over p. 4

5 and on the long run, Railways still growing 3% p.a. on average Railway market as per UNIFE study Bn 100,0 80,0 60,0 40,0 20,0 86 b 21,9 9,7 25,4 22,1 111 b 99 b 99 b 29,0 24,4 26,5 12,7 11,2 11,0 31,7 30,0 28,1 24,6 27,1 29,8 Infra (TGS) Signalling (TIS) Service (TLS) RS Urban Non Rolling-Stock 73 b + 16 b over 10 years Rolling-Stock 37 b 0,0 5,9 9,1 6,7 7, RS Mainline + 9 b over 10 years Stimulus packages p. 5

6 Large opportunities in all continents North America Metros in Mexico, Canada and USA High speed lines in the USA South America Very high speed line in Brazil Mass transit projects in Argentina, Chile, Venezuela and Brazil Europe Very high speed and regional trains in France, Germany, Italy Mass transit projects in the UK and in the Netherlands Large signalling contracts in the UK, Netherlands and in Denmark High speed in Italy MEA Very high speed lines in Saudi Arabia and in Morocco Mass transit projects in the Arabic peninsula and in Northern Africa Russia Double-deck passenger cars Diesel locomotives High- & Very-High Speed Asia Very high speed in China Locomotives, coaches and infrastructure in India Metros in China, India and Australia p. 6

7 Customers overview URBAN Historic metropoles NY, London, Paris Imposed designs Huge contracts Urban & Suburban networks Growing metropoles Shanghai, Mexico City, Sao Paulo Open to standard products Medium to small contracts Regional centres Istanbul, Rotterdam, Brussels Flexible solution from downtown to suburbs Transport development with urban renewal Open to outsource operations (new customers) MAINLINES Infrastructure owners RFF, DB Netz, RFI Invest to boost interoperability & grow capacity Optimised use-based fees charged to operators Passenger operators Railteam International Group for VHST to compete with airlines Regional Decentralisation of Rolling Stock investment decisions Outsource operations ( CONNEX, ARRIVA ) Freight operators Europe : Market growth triggered by increased competition and investment North America : Investment for efficiency, capacity & safety p. 7

8 Transport market drivers Market liberalisation, cross-boarder traffic Our key customers becoming integrated mobility providers DB EXAMPLE Our key customers becoming integrated mobility providers Growth of urban populations, mainly in emerging nations Door-to-door information Online-Ticket Increasing mobility & infrastructure saturation Rising need for inter-modality Mobility Provider Mobility BahnCard 100 Parking at station Connexion to public transportation Transportation habits impacted by regulation (eg London congestion tax) Extension of portal to extended mobility offering Cars losing ground in Europe (fewer driver licences) Rising concerns for the environment Rail Operator Daniel Kurth eticketing and payment system Stimulus packages Yesterday Tomorrow Door to door Station to station Integrated Mobility Solution p. 8

9 Mature markets still significant, emerging ones growing faster CONTEXT CHANGE MARKETS PRODUCTS 86 b 111 b Rest of world BRIC EMERGING markets Several markets, traditionally closed or non-railways, are opening (Algeria, Venezuela, US, Russia ) New infrastructure Standards to be set Demand for localisation & technology transfer COMPE- TITION North America Western Europe MATURE markets Debt level issues to finance infrastructure Package offers including financing (PPP ) Focus on renewal / upgrade of existing systems Tougher Terms & Conditions manufacturers asked to carry more & more risks p. 9

10 Increasing demand for lower price or just-enough solutions CONTEXT CHANGE MARKETS PRODUCTS HIGH PRICE LIMIT of ALSTOM BRAND DESCOPE & LOCALISE (Alstom s answer: Traction type B, Satee) JUST ENOUGH 35% PREMIUM 30% PREMIUM LOWER PRICE 25% LOCALISE (Alstom s answer: Metropolis China, Xiajeco, Dispen, Lapa, Katowice ) COMPE- TITION LOW PRICE BASIC 10% BUILD PARTNERSHIPS with local partners to develop / upgrade products (eg. CNR, TMH ) LOW TECH HIGH TECH p. 10

11 Tough & global competition b Sales evolution MARKETS 40 CNR CSR TMH 21% CONTEXT CHANGE PRODUCTS COMPE- TITION 20 10% 40% 50% TOP 3 growing but loosing market share globally 2nd rank competitors growing gradually (CAF, Stadler, Rotem ) Chinese booming on domestic & export (CNR+CSR = similar to Big3) TMH growing fast Historic Customers invite more & more competitors in tenders Possible industry concentration in the future ST AT BT 42% 37% RANK 2 TOP3 p. 11

12 Agenda Railways Market Alstom Transport Today p. 12

13 Agenda Railways Market Alstom Transport Today What & where we sell How we are organised Our achievements & results Our strategy p. 13

15 Distribution of Sales by zone North-America 12% Asia-Pacific 9% LATAM 6% South Europe 29% North Europe 21% France 22% 5.75 billion FY 2009/2010 p. 15

16 Distribution of Sales by product line Signalling TIS Infra & Turnkey TGS 15% 13% 34% Rolling Stock URBAN 59% Service TLS 15% Components 2% 19% Rolling Stock MAINLINES 5.75 billion FY 2009/2010 p. 16

17 Rolling Stock an extensive range of products, from tram to VHST Long distance Locomotives Very high speed High speed Tram-train Interurban Tram Metro Regional URBAN & REGIONAL MAINLINES Short distance Speed p. 17

18 Rolling Stock : Strong position in Urban Lyon Barcelona Dublin Citadis selected by 32 towns Over 1,250 trams ordered More than 1 billion passengers carried Paris Extensive knowledge and experience of steel wheel and rubber tyre metros p. 18

19 RS / VHS : from French Exception to Worldwide Leadership 1981 South East TGV years of experience 660 TGV & AGV sold AGV (IT) TGV Réseau 80 TGV Atlantic /3 60% ww market share** 2007 TGV East 19 equiv. (coaches) AVE (ES) KTX (Korea) 46 Eurostar TGV Thalys TGV Duplex 131 (+ 84 to be delivered) (*) worldwide installed fleet > 300 km/h p. 19

20 Components Developing components based on market needs. Reliable, competitive and cost attractive For internal integration or external customer Standard components catalogue aims to cover 80% of market requirements p. 20

21 Train Life Service (TLS) 3 after-market activities Maintenance Transit -Freight -Equipment Track Renovation Transit Freight Equipment Track WCML Pendolinos Maintenance in UK (Virgin) Spare Parts & Components Repair All makes Covering Alstom equipments as well as non-alstom equipments p. 21

22 Transport Information Solutions (TIS) Track Products Interlocking (IXL) Signals Level Crossings Point Machines Manage Priority Train detection Space trains Avoid collision IT for Rail Non Safety Systems Develop, install, configure, integrate a wide range of products & systems Train Protection ERTMS, CBTC, Legacy Manage Speed Assist driver Eco Driving Manage Traffic in Control Centers Inform & Secure Passengers (board & station) Enforce lateral signal p. 22

23 Transport Global Solutions (TGS) C I V I L W O R K S TURNKEY PROJECT OPERATION MANAGEMENT DESIGN CONSTRUCT - MAINTAIN - System engineering - Interfaces coordination - Construction methods -Testing and commissioning Trackworks Electrification Electromechanical Signalling Workshop Rolling Stock ( turnkey ) O P E R A T O R p. 23

25 More than employees around the globe North America Asia- Pacific 6% 5% Southern Europe 49% IBAM 19% Northern Europe 21% Headcount as of April 2010 : p. 25

26 Current footprint RS & Components : 1/2 (Europe) FRANCE La Rochelle Belfort Valenciennes Reichshoffen Charleroi Salzgitter Katowice JV Component Unit Le Creusot Ornans Tarbes Santa Perpètua Savigliano Sesto San Giovanni RS Unit p. 26

27 Current footprint RS & Components : 2/2 (rest of the world) Shanghai SATCO SATEE Hornell Xi ian Qingdao JV Component Unit RS Unit Lapa Coimbatore p. 27

29 Transport / Key figures 2003/ / / / / / /10 Sales (b ) Orders (b ) Backlog (b ) Income from op Operating margin 1.3% 4.3% 6.3% 6.6% 7.2% 7.2% 7.2% p. 29

31 Alstom Transport Strategy Over the last years, we successfully Grew profitably Built strong expertise & leadership Reinforced our position as multi-specialist Set-up a performing organisation but Being multi-specialist is no longer sufficient to grow profitably Defending our home markets is vital Becoming multi-geographic is a key objective AT Strategy BE THE UNDISPUTED RAILWAY LEADER Profitability Leadership Multi-specialist Multi-geographic p. 31

32 NEED to become multi-geographic MATURE MARKETS (OECD) EMERGING MARKETS (BRIC or BICK or BRICUS ) YESTERDAY 50 b AT 30 b AT TOMORROW 60 b AT 60 b AT Tomorrow s leaders = those able to address all markets p. 32

33 TMH-AT : a case for new ways of doing business STRATEGIC AGREEMENT A 3-year negotiation Anti-trust authorization to be closed by Oct 10 AT bought 25% + 1 stake in TMH equity PRINCIPLES OF COOPERATION COO of TMH appointed by Alstom Creation of 2 JV (50%-50%) TRT = engineering COMPCO = components (traction) RUSSIA : A VERY LARGE MARKET AWARDED CONTRACTS & OPPORTUNITIES High & historical reliance on Railways 11 time zones The largest electrified network in the world Still a large influence on CIS area Strategic positioning between Europe & Asia Contract awarded to TMH-AT 200 EP20 Passenger locos, 1b (AT 450 M ) Localisation in Russia under AT management Future opportunities Russia Fret Locos, Kazak Passenger Locos Azerbaijan, Ukraine p. 33

34 Conclusion Despite crisis and tougher business conditions, our global ambition remains unchanged be the undisputed leader in the transportation business both in terms of profitability & market share Keep / reach N 1 positions (HST/VHST, trams & tram-trains) To achieve this ambition, we need to Continue to act as a multi-specialist player : boost share of non-rolling Stock activities Become a multi-geographic leader : be able to address all markets / adapt to new rules Key success factors to succeed Customer focus New organisation : Regions-Operations intimacy New ways of managing, common financial literacy p. 34

35 TRANSPORT