Annual Results Fiscal Year 2014/15. 6 May 2015

Transcription

1 Annual Results Fiscal Year 2014/15 6 May 2015

2 Key takeaways 2014/15 results guidance met Transport showing solid commercial and operational performance Orders up 63%, sales growth of 8% (7% organic) IFO margin (including corporate costs) improving by 50bps to 5.2% Energy businesses classified as discontinued operations (IFRS 5) FCF from continued operations (bef. tax and financial cash-out) positive, with H2 more than offsetting negative H1 Strong cash flow generation for the Group in H2 ( 1 billion) Update on General Electric / Alstom project Competition authorities and regulatory authorisations ongoing Closing expected in the coming months Confirmation of medium-term guidance P 2

3 Agenda Key events 2014/15 Financial results Update on GE/Alstom project Outlook P 3

4 2014/15 key figures Good operational performance, strong cash flow in H2 Orders 6, /14* 2014/15 % change 10,046 63% % change organic 61% Sales 5,726 6,163 8% 7% IFO ** Operating margin % % 19% Net income Cont. operations 160 (823) Net income Discontinued operations Net income Group share 556 (719) Free cash flow *** Continued operations Free cash flow *** Discontinued operations Free cash flow (157) (429) P 4 * Adjusted after IFRS 5 and IFRS 11 ** After corporate costs *** Before tax and financial cash-out

5 High level of orders fuelled by large projects Orders and book-to-bill 6, ,046 1,6 2013/14* 2014/15 Europe Americas MEA Asia Pacific Book-to-bill Strong order intake Book-to-bill of 1.6 Strong demand for urban products, signalling and services Emerging markets representing 63% of orders, driven notably by Middle-East/ Africa (including a 4bn jumbo rail contract in South Africa) In billion 48 Backlog In months of sales 55 * Record high backlog Backlog representing 4.5 years of sales /14* 2014/15 P 5 * Adjusted after IFRS 11

6 Main orders Diversification across all geographies Mexico: Full metro system in Guadalajara ( 240m) UK: Maintenance for Sleeper trains ( 125m) Switzerland: Pendolino high speed trains ( 115m) Algeria: Tramways ( 140m) Sweden: Coradia Nordic regional trains ( 150m) France: Trains for Paris metro ( 500m) Spain: Atlas signalling system for North-West high speed line ( 220m) Qatar: Tramway system ( 450m) Australia: Metropolis train sets and signalling ( 280m) + tramway system for Sydney ( 450m) Egypt: Signalling equipment ( 100m) India: Metro trains ( 80m) South Africa: Suburban trains and maintenance services ( 4,000m) P 6

7 Sales and operating income growing substantially 5,726 Sales 6,163 * Organic growth of 7% in 2014/15 Main deliveries: suburban, intercity and high-speed trains in France, Italy and Germany; very high-speed trains in Morocco; tramways in Dubai Emerging countries representing 30% of sales 2013/14* 2014/15 Europe Americas MEA Asia Pacific % IFO ** 19% As a % of sales 318 * 5.2% Marked increase in operating income Good project execution Tight cost control (d2e performance plan) Partly mitigated by ramp-up costs associated with new platforms 2013/14* 2014/15 P 7 * Adjusted after IFRS 11 ** After corporate costs

8 Dedicated to Excellence plan progressing well Savings achieved according to plan d2e realised and target savings (run-rate) 450 c.300 End Mar 15 End March 16 End Mar 15 End March million of savings targeted by end March 2016 vs. 2012/13 cost base P 8

9 Main realised initiatives Sourcing More efficient organisation with a better balance between central and local sourcing through all commodities Action plans on levers started to deliver (LCC sourcing content, optimise prices in supply chain, make or buy optimisation, design-to-cost) Manufacturing Lean practices deployed to all functions and activities Higher standardisation and modularisation through best-in-class processes and tools Industrial footprint Optimisation of the global footprint and organisation streamlining Adjustment of capacity to market demand S&A and R&D Reduction of S&A while maintaining commercial efficiency to leverage worldwide positions Continuation of selective R&D efforts Address the 5bn cost base and make a 450m improvement P 9

10 Focused investments for future growth R&D /13* 2013/ /15 Main R&D programmes Trains Citadis TM X05 tramway Citadis TM Spirit light rail vehicles (North America) Systems AXONIS TM, integrated metro solution Services HealthHub TM, predictive maintenance tool Signalling URBALIS Fluence TM Smartlock TM 400 GP Atlas TM 400 / Atlas 500 solutions Capex /13* 2013/ /15 * Indicative Pro-forma, non-audited figures P 10 Recent capex developments 100m invested in modernisation and expansion of manufacturing footprint: Signalling centre in Bangalore, India Tramway manufacturing facility in Taubaté, Brazil Modernisation of manufacturing sites in Europe

12 Income statement 2013/14* 2014/15 % change reported % change organic Sales 5,726 6,163 8% 7% IFO ** Operating margin % % 19% Restructuring charges Other non-operating expenses (48) (58) (106) (833) EBIT 162 (621) Financial result Tax result Share in net income of equity investees Impairment of equity investees Minority interests from continued operations (159) (7) (137) 8 18 (82) (9) Net income Continued operations 160 (823) Net income Discontinued operations Net income Group share 556 (719) P 12 * Adjusted after IFRS 5 and IFRS 11 ** Including corporate costs

13 Free cash flow IFO 2013/14* / FCF from continued operations Restructuring cash-out Depreciation Capex R&D capitalised, net of amortisation Pensions (35) 74 (111) (9) (10) (85) 102 (99) (4) (5) Temporary negative cash profile of a few contracts in H1 partly reversed in H2 Stringent working capital management Change in working capital 33 (94) Other 24 (56) Free cash flow ** Continued operations Free cash flow ** Discontinued operations Financial cash-out Tax cash-out (227) (262) (276) (249) Free cash flow Group (157) (429) P 13 * Adjusted after IFRS 5 and IFRS 11 ** Before tax and financial cash-out

14 Liquidity and gross debt In billion 3.6 Liquidity position 2.9 A 1.35 billion undrawn credit line Liquidity backed by new 1.6 billion revolving credit facilities available until completion of GE transaction * Adjusted after IFRS 11 Mar-14 * Undrawn credit line Mar-15 Gross cash Waiver obtained on financial covenants for all facilities until completion of GE transaction Gross debt: gradual repayment started in Sept New bonding and revolving credit facilities to replace existing facilities after completion of GE transaction currently being negotiated 350 Sept 2014 Oct 2015 Mar 2016 Feb 2017 Oct 2017 Oct 2018 Jul 2019 Mar 2020 P 14

15 Net debt & equity Net debt Equity 5,109 (719) (3,038) (3,143) (499) 333 4,224 (429) 573 (249) Mar-14* FCF Acq. & Disposals Forex & Other Mar-15 Mar-14* Net income Pensions Forex & Other Mar-15 * Adjusted after IFRS 11 P 15

16 Pensions Evolution of the underfunding 31 March March 2015 (761) 2,213* 7,823 1,452 5,974 4,522 5,610 Fair value of plan assets Underfunding Defined benefit obligations Fair value of plan assets Underfunding Defined benefit obligations Impacted by lower discount rate assumptions and forex * Continued operations accounting for 452 million P 16

17 Discontinued operations - Alstom Energy Key figures for information purposes Orders and book-to-bill 15,115-12% 13,321 Sales 14,332-6% -7% 13, /14* 2014/ /14* 2014/15 Net income FCF before tax and financial cash-out /14* 2014/ /14* 2014/15 Orders down 12%, impacted by low order intake in Thermal Power new built Sales decrease reflecting slower order intake in recent quarters Net income impacted by lower sales and specific items Strong free cash flow in H2 offsetting cash outflow over H1 P 17 -x% % change reported -x% % change organic * Adjusted after IFRS 11

19 Project with GE on track Completed Information consultation with works councils Finalisation and signing of sale contract and other associated agreements Finalisation of GE Signalling acquisition and global rail alliance French Foreign Investment authorisation obtained Transaction largely approved by shareholders (99%) Ongoing Competition and regulatory authorisations process In the coming months Closing After closing: cash return to shareholders (Shareholders Meeting to be convened) P 19

20 Use of proceeds Provide the Group with a solid balance sheet structure Deleverage the Group Support development of the Group GE Signalling acquisition Reinvestment in the JVs with GE Headroom for future growth embedded in the cash position and in the liquidity rights of the JVs Maintain strong liquidity Ample liquidity at closing Outstanding debt to be reimbursed progressively Return cash to shareholders Public share buy-back offer favoured (OPRA) Indicative range of 3.5-4bn P 20

22 2014/15 Guidance achieved 2014/15 Guidance 2014/15 Actual Organic sales growth High single digit 7% Operating margin* Over 5% 5.2% Free cash flow - Continued operations Positive over the fullyear (before tax and financial cash-out) 77 million Group free cash flow Substantially positive in H2 947 million (H2) * IFO margin including corporate costs P 22

23 Medium-term guidance confirmed Medium term Organic sales growth Over 5% per year Operating margin* Gradual improvement within the 5-7% range Group free cash flow In line with net income** (with possible volatility on short periods) P 23 * IFO margin including corporate costs ** Before Energy JVs

24 Contacts and agenda CONTACTS Delphine BRAULT Vice President Investor Relations +33 (0) Perrine DE GASTINES Investor Relations Manager +33 (0) Dymphna HAWKSLEY / Carine DIELNA Logistics +33 (0) / AGENDA 30 June 2015 Shareholders Meeting 20 July 2015 Q1 2015/16 Orders and Sales Investor.relations@chq.alstom.com P 24

25