Electrical Products Group Patrick Kron, Chairman & CEO May 2012

Transcription

1 Electrical Products Group Patrick Kron, Chairman & CEO May 2012

2 Agenda 1. Key figures of 2011/12 2. Preparing future performance 3. Profitable growth strategy 4. Positive three-year guidance 5. Appendices P 2

3 Alstom today A balanced portfolio of systems, products and services with leading positions Sales by Sector FY 2011/12 THERMAL POWER Gas 10% RENEWABLE POWER Thermal Service 50% Steam 35% Nuclear 5% Power electronics and Automation 20% GRID TRANSPORT Services 15% Thermal Power Renewable Power Grid Transport P 3

4 Key figures 2011/12 In million A resilient performance impacted by low past orders March 2011* March 2012 Variation Orders Book-to-bill ratio 19, , % Backlog 46,816 49,269 +5% Sales 20,923 19,934-5% Income from operations Operating margin 1, % 1, % -10% Net income % Free cash flow (516) (573) P 4 * With Grid consolidated for 10 months (from June 2010 to March 2011)

5 Key figures 2011/12 Results strictly in line with guidance WHAT DID WE SAY? WHAT DID WE DO? Orders to remain sustained in 2011/12, with a strong Q4 FY 2010/11: 19.1 Bn => FY 2011/12: 21.7 Bn 9 months 2011/12: 15.1 Bn => Q4 2011/12: 6.6 Bn Progressive recovery of sales with a marked improvement in Q4 Q1 2011/12: 4.5 Bn => Q4 2011/12: 5.7 Bn Operating margin to be between 7% and 8%, with an increase in H2 vs H1 Positive FCF in H2 H1 2011/12: 6.7% H2 2011/12: 7.4% H1 2011/12: (914)m H2 2011/12: + 341m => FY 2011/12: 7.1% => FY 2011/12: (573)m P 5

6 Agenda 1. Key figures of 2011/12 2. Preparing future performance 3. Profitable growth strategy 4. Positive three-year guidance 5. Appendices P 6

7 Orders A solid commercial activity over the last 18 months to be translated into sales growth Orders received per half year In billion Book -to- Bill = 1 Book-to-bill ratio consistently above 1 for 3 consecutive semesters Book-to-bill ratio at 1 or above in all Sectors in FY 2011/12 Strong performance in emerging markets H1 2009/10 H2 H1 H2 2010/11 (*) H1 2011/12 H2 Developed countries Emerging countries P 7 * With Grid consolidated from June 2010

8 Research & Development R&D expenses kept at a high level Key products launched in 2011/12 Gas turbines upgrades (GT26, GT24 and GT13) THERMAL POWER RENEWABLE POWER Haliade 150 (6MW) First success in offshore wind tender In million 703 Evolution of R&D expenses 682 GRID TRANSPORT New HVDC technology (Voltage Source Converter ) developed and sold AGV.italo Single deck very high speed train in operation 2010/ /12 P 8

9 Capital expenditures Positions in emerging markets reinforced through capex Evolution of capex in emerging countries 224 Tianjin - China Porto Alegre - Brazil Bahia - Brazil Chennai - India Mundra - India P 9

10 Partnerships and through joint-ventures New partnerships in Russia INTER RAOUES JV with Atomenergomash JVs with Transmasholding RENOVA KER Rostechnologies New partnerships in China Global partnership with SEC in boilers* JV with Bardella New partnerships in Kazakhstan Footprint * To be finalised 5 JV Transport + partnerships for EMUs and locomotives 3 JV Power + partnership in nuclear 9 JV Grid Grid Power New partnership in India P 10 Transport Existing partnerships Recent partnerships JV with Bharat Forge Cooperation agreement with BHEL JV with NTPC in Service Grid n 1 in India &

11 Restructuring Footprint in mature markets adapted to lower demand THERMAL POWER TARGET SITUATION 31/03/ ,600 employees (31 March 2012) - 1,700 3,500 permanent by March 2012 (-20% of employees in Western Europe and NAM) Plan largely completed 56, / /12 TRANSPORT ,600 1,380 positions by March 2013 (-8% of employees in Western Europe) Over 50% 2010/ /12 Mature countries Emerging countries P 11

12 Agenda 1. Key figures of 2011/12 2. Preparing future performance 3. Profitable growth strategy 4. Positive three-year guidance 5. Appendices P 12

13 Market environment A sound growth potential THERMAL POWER RENEWABLE POWER GRID TRANSPORT MATURE MARKETS EMERGING MARKETS After Asian boom of the past 5 years, market stabilising at a high level and covering all technologies Europe and NAM demand driven by gas, retrofit and service Strong push for all renewables Europe and NAM remaining robust thanks to offshore wind and hydro retrofit Continuous active markets in all products High-tech segments (HVDC and SmartGrid) driving growth in Europe and NAM New equipment growth concentrated in BRICs and Asia Traditional markets remaining stable, with Northern Europe being more dynamic than Southern Europe P 13

14 Strategy An ambition combining growth and performance GROWTH Enlarge offering through better coverage and development in high growth segments Sustain CAPEX to fuel growth in emerging markets Extend geographical coverage in emerging markets Develop Service business across all Sectors Progressively increase R&D to remain a leader in all key technologies Expand in current and adjacent markets through partnerships or targeted acquisitions OPERATIONAL EXCELLENCE People (safety, development in emerging countries) Project execution & Quality (training, processes) Cost competitiveness (ind. efficiency, supply chain management, capacity adjustments, control of S&A) Cash focus (actions on working capital) P 14

15 Strategy with clear objectives for each Sector THERMAL POWER Increase sales and margin by better market coverage RENEWABLE POWER Grow selectively and address temporary margin pressure TRANSPORT Resume volume growth and restore profitability GRID Develop positions while improving mix and competitiveness P 15

16 Thermal Power action plan GAS STEAM NUCLEAR THERMAL SERVICE Address growing areas: 60 Hz (Chattanooga + new GT24), Russia (recent success with GT13), MEA, South East Asia, China Grow components sales Increase market coverage through R&D and partnerships Leverage JVs in Asia to better serve the region and lower the cost base Build on heavy fuel oil market in MEA Remain the leader in ECS Be selective on turnkey plants Leverage JVs in BRICs (Atomenergomash, Dongfang and BHEL) and best in class technology Address opportunities related to new safety regulations (retrofit, EDG) Bundle with new equipment sales and target existing potential on own fleet Selectively address other fleets Develop Integrated Solutions projects Objective: sell more than 20 turbines per year Increase geographical reach and improve profitability Maintain leadership position Pursue strong profitable growth P 16

17 Renewable Power action plan HYDRO ONSHORE WIND OFFSHORE WIND NEW ENERGIES Grow in new promising regions (Russia) Leverage technology (variable speed pump storage ) Develop retrofit & services Expand sales territory Pursue R&D on ECO 100/110/122 platforms Develop Operation & Maintenance contracts Market the Haliade 150, a 6MW direct drive turbine beyond success in French tender Establish industrial footprint Develop Concentrated Solar Power through Brightsource partnership Strenghten positions in biomass and geothermal through R&D Develop ocean energies solutions (wave & tidal) Remain the worldwide leader Improve onshore performance and successfully enter offshore Grow in nascent technologies P 17

18 Grid action plan PRODUCTS & SYSTEMS SERVICES HVDC / FACTS SMART GRID Renew offering through product introduction (GIS, Circuit breakers, etc.) Establish strong foothold in higher DC transformer voltages (800 kv and up) Foster differentiation through innovation (digital, SF6 free) and quality Leverage low cost manufacturing base Maximise potential on installed base Focus on valueadded offering and O&M Boost local presence by capitalising on Thermal Service network Continue innovation in power electronics Capitalise on HVDC commercial successes (in both LCC and VSC) to establish strong execution credentials Increase coverage for industrial applications Leverage global leadership in network management systems (demand response, etc.) Strenghten automation business Push innovative converter technology for storage applications Expand through partnerships and M&A Improve competitive position Grow aggressively Be a recognised market leader Build on network expertise P 18

19 Transport action plan ROLLING STOCK SIGNALING SERVICES SYSTEMS Keep leadership in traditional markets with new developments across the range Leverage TMH partnership and further penetrate BRICs Innovate and adapt product to demand Leverage ERTMS leadership in Europe Take advantage of fast growing urban markets in new economies Differentiate through constant innovation Execute locally Provide bundled offers Develop multi-service centres for private operators Take advantage of maintenance outsourcing from traditional operators Develop green products (energy savings solutions) Selectively participate in turnkey projects for mass transit and intercity Adapt to new financing models (PPP/concessions) Develop worldwide footprint Maintain worldwide leadership Keep up with technological evolution Boost growth Be opportunistic P 19

20 Agenda 1. Key figures of 2011/12 2. Preparing future performance 3. Profitable growth strategy 4. Positive three-year guidance 5. Appendices P 20

21 Guidance from FY 2012/13 to FY 2014/15 Assuming a sound level of orders over the period: CAPEX R&D To remain at a high level To progressively increase SALES GROWTH Over 5% per year on current scope OPERATING MARGIN to gradually improve to around 8% in FY 2014/15 FREE CASH FLOW Back to positive free cash flow from FY 2012/13 P 21

22 Contacts & agenda CONTACTS Emmanuelle CHATELAIN Vice President Investor Relations +33 (0) AGENDA 25 May 2012 Filing of Registration Document Juliette LANGLAIS Deputy VP Investor Relations +33 (0) Dymphna HAWKSLEY, Christel CILLARD Logistics +33 (0) / June 2012 Annual General Meeting 19 July 2012 Orders and sales for the first quarter of FY 2012/13 P 22

23 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 23

24 Agenda 1. Key figures of 2011/12 2. Preparing future performance 3. Profitable growth strategy 4. Positive three-year guidance 5. Appendices P 24

25 Thermal Power Key figures In million Orders and book-to-bill 7, % , Strong rebound of orders driven by emerging markets accounting for 66% Successes in all activities: 14 gas turbines, 3 steam plants, 1 nuclear project 2010/ /12 9,725 Sound level of ECS contracts 4.4Bn of Thermal Services orders Sales -10% 8,726 Low point in sales for new equipment reflecting the trough of orders taken in 2009 Rebound in H2 sales vs H1 2010/ /12 Resilient Thermal Services sales at 4.2Bn Income from op. and margin 879-3% 9.0% % Strong IFO despite lower volumes Positive evolution of operating margin due to favourable mix and actions on costs P / /12

26 Renewable Power Key figures In million Orders and book-to-bill 1,936 +5% 2,026 Sustained level of orders in hydro and wind despite absence of big tickets this year, with a strong Q Major contracts booked in Latin America, Asia/Pacific and MEA (65% of the orders) Sales 2010/ /12 1,941 2,027 +4% Sound sales level with a growing share of wind in the mix Very strong Q4 thanks to key milestones reached on large hydro projects in Latin America 2010/ / Income from op. and margin -13% 8.9% % Sustained profitability in hydro Operating margin impacted by price pressure in wind P / /12

27 Grid Key figures* In million 3,434 4,003 Orders and book-to-bill / / First commercial success in new HVDC technology (VSC) in Sweden Good flow of small and medium sized orders worldwide, with prices still under pressure 3,653 4,013 Sales Sound volume Balanced geographical split (app. 30% in Europe, 20% in Americas, 30% in Asia/Pacific and 20% in MEA) 2010/ / Income from op. and margin % 6.2% Slight increase of margin On-going actions on costs 2010/ /12 P 27 * Consolidated for 10 months in 2010/11 (from June 2010 to March 2011)

28 Transport Key figures In million Orders and book-to-bill 5, % , Sound volume of orders Sustained activity in Western Europe despite public budget constraints (60% of the orders) Large contracts booked in Russia and Eastern Europe Strong signaling business (Denmark, Singapore ) 2010/ /12 5,604 Sales -8% 5,168 Sales impacted by longer delivery times in emerging markets (Russia, India ) and ramp up of new programs 2010/ /12 Income from op. and margin % 7.1% % IFO driven down by lower sales Launch of several new products (less profitable in the starting phase than mature ones) P / /12

29 Sales and income from operations In million Sales Income from operations and operating margin 1,570 20,923 19,934 1, (33) (244) 7.5% 7.1% 2010/ / /11 Volume effects* Margin effects Others** 2011/12 * Including under-recovery ** Including forex, scope and misc. P 29

30 Income statement In million March 2011 March 2012 Variation Income from operations 1,570 1,406-10% Grid PPA & acquisition costs (203) (156) Restructuring costs (520) (83) Capital gains & other (83) (95) EBIT 764 1, % Financial result (136) (177) Tax result (141) (179) Non control. Interest & other (25) 16 Net result % P 30

31 Free cash flow In million March 2011 March 2012 Income from operations 1,570 1,406 Free cash flow evolution Restructuring cash out (106) (159) Depreciation Capital expenditure (504) (521) R&D cap. & amort. of acq. Techno. (121) (98) Pensions (120) (68) Change in working capital (1,157) (968) Tax cash out (248) (264) Financial cash out (121) (157) Other (62) (84) H1 2011/12 H2 2011/12 Free cash flow (516) (573) P 31

32 Net debt evolution In million (1,286) (2,492) (2,558) (573) (183) (303) (147) Net debt 31 Mar 11 Free cash flow Dividends Acquisitions* Other Net debt 31 Mar 12 P 32 * Including TMH ( 59 million as an advance payment for 25% equity + an earn out to be paid in FY 2012/13)

33 Funding In billion Liquidity position Gross Cash Undrawn Credit line Gross debt: no repayment before In million Mar 11 Mar 12 Maturity date Sept 2014 Oct 2015 Mar 2016 Feb 2017 Oct 2018 Mar 2020 A 1.35 billion syndicated credit line fully undrawn maturing in 2016 P 33

34 Equity evolution In million 732 (183) 19 (286) 4,152 4,434 Equity 31 Mar 11 Net income Dividends Pensions variation Other Equity 31 Mar 12 P 34

35 Pensions In million Fair value of assets In million Defined benefit obligations 3, (98) 225 4,097 3,763 4, (266) 279 5,521 3,334 Opening 1 Apr 11 Return on assets Net cash out FX & other Closing 31 Mar 12 Opening 1 Apr 11 Service costs Discounting & actuarial losses Net cash out FX & other Closing 31 Mar 12 In million Underfunding status Opening 1 Apr 11 (1,129) Closing 31 Mar 12 (1,424) P 35

36 Proposed dividend In per share Annual General Meeting: 26 June 2012 Ex-date: 28 June 2012 Record date: 2 July *** Payment date: 3 July Pay-out ratio XX% % 27% 29% 30% 40%** 32% 2005/ /07* 2007/08* 2008/ / / /12 P 36 * Adjusted from the split ** Net result impacted by exceptionally high restructuring charges *** To be proposed to the next AGM

37