Shareholders Meeting. 24 June 2008

Transcription

1 Shareholders Meeting 24 June 2008

2 Agenda - Resolutions Agenda of the Shareholders Meeting: Notice of Meeting page 1 Resolutions: Notice of Meeting pages 31 to 38 P 2

3 Group Situation

4 Agenda 1. Introduction 2. Main events of fiscal year 2007/08 3. Focus on our strategy 4. Financial results of fiscal year 2007/08 5. Outlook and conclusion P 4

5 Alstom responds to its shareholders confidence

6 P 6 Share price Strong increase in share price In euros Alstom CAC Jun-07 Jul-07 Aug-07 Sep-07 Oct-07 Nov-07 Dec-07 Jan-08 Feb-08 Mar-08 Apr-08 May-08 Base Alstom: euros at 1 st June 2007

7 Dividend Proposal to double the dividend x P / /08 In euros per share

8 Shareholding structure at 31 March ,000 shareholders 30% Employees 1% Institutional investors Rest of Europe 22% France Individual shareholders 7% 62% 22% Americas 2% Asia/Middle East 54% P 8

9 Your information Alstom at its shareholders service Letter to shareholders: Shareholder meetings: 25 September 2008 in Rennes Internet site: Toll free number: Site visits: Actionaria exhibition: P 9

10 Alstom applies strict governance

11 Board of Directors Diversified competencies and experiences 12 members, of which 7 independent 4 non-french Directors 7 meetings in 2007/08 Main tasks in 2007/08: Examining of the Group s financial and strategic situations Studying of risk mapping process launched within the Group Annual evaluation of the Board and its Committees performance Remuneration and employee shareholding policies P 11

12 Committees Audit Committee 6 members, of which 4 independents, including the President 3 meetings in 2007/08 Missions: To assure the quality, completeness, exactitude and sincerity of accounts and financial communication To assure good internal audit performance and internal control procedures Jean-Paul Béchat Committee President Nominations and Remuneration Committee P 12 5 members, of which 3 independents, including the President 4 meetings in 2007/08 Missions: Evaluate the Group s Management Prepare propositions relating to remuneration of executive and non-executive Directors, to stock option plans and to employee share purchase schemes James W. Leng Committee President

13 Alstom is committed to a policy of sustainable and responsible development

14 Environment A major contribution from our activities to the planet s future improvement Clean combustion Rail transport P 14

15 Initiatives Strong commitments for the future Adhesion to the Global Compact Creation of an Innovation Board Creation of a Foundation for the environment P 15

16 Research and Development Build tomorrow s company 8 pilot sites for CO 2 capture (USA, Canada, Germany, France, Norway, Sweden) Presentation of the AGV (February 2008) Development in R&D efforts in 2007/08: +20% P 16

17 Social More value placed on human resources Creation of an identity and common values: trust, team and action Continuing improvement in safety Frequency rate of accidents at work P Mar-05 Jul-05 Nov-05 Mar-06 Jul-06 Nov-06 Mar-07 Jul-07 Nov-07 Mar-08

18 Social Active management of the Group s 76,000 employees 12,500 employees 45,000 employees 4,250 employees 1,050 employees 13,200 employees Recruitment, integration, training, mobility Employee shareholding policy Charter for suppliers and subcontractors P 18

19 Agenda 1. Introduction 2. Main events of fiscal year 2007/08 3. Focus on our strategy 4. Financial results of fiscal year 2007/08 5. Outlook and conclusion P 19

20 Financial results 2007/08 Strong profitable growth Record commercial activity Orders at 23.5 billion euros (+ 23%) Sales at 16.9 billion euros (+ 19%) Strong growth in operational performance Income from operations at billion euros, an increase of 35% Operating margin increased from 6.7% to 7.7% Net income of 852 million euros Increase of 56% Very high free cash flow Generating a net cash position of more than 900 million euros P 20

21 Supporting profitable growth Recruitments 10,500 people in 2007/08 GROWTH Strict and systematic project control P 21 Investments in production capacity increased by 34%

22 Acquisitions Power generation P 22 - Coal: acquisition of Wuhan Boilers Co. in China - Wind: acquisition of Ecotècnia in Spain - Nuclear: partnership with Atomenergomash in Russia Transport Targeted external growth to support internal growth - Signalling: JV 50/50 with Balfour Beatty in the United Kingdom and Ireland - Maintenance: JV with RENFE in Spain - Rolling stock: cooperation agreement with Transmashholding in Russia

23 Bouygues A fruitful cooperation with Bouygues A long-term shareholder with a stake in the capital increased to 30% A commercial and operational partnership Development of jointly-led projects: contract for the rail system in Trinidad and Tobago, gas power plant in Fos-sur-Mer, nuclear power plant in Flamanville Port of Spain, Trinidad and Tobago P 23

24 Agenda 1. Introduction 2. Main events of fiscal year 2007/08 3. Focus on our strategy 4. Financial results of fiscal year 2007/08 5. Outlook and conclusion P 24

25 2 activities, 3 Sectors A Group focused on the growing infrastructure markets Power Systems Power Service Transport P 25

26 Power generation

27 Market A strong global demand Emerging countries Strong economic growth creating an important need for power generation Developed countries Ageing of the installed base leading to the need for replacement, modernisation and services P 27

28 Market Demand for a large range of technologies Environmental constraints Growth in clean energies, investments in emission control systems Energy independence Use of own resources by each State for their electricity production Raw material prices Impact on the choice of technology, growth in modernisation P 28

29 Our products Gas power plants (No. 3 worldwide) An offering as per market needs Coal power plants (No. 1 worldwide, excluding China) Hydro activities (No. 1 worldwide) Nuclear power plants* (No. 1 worldwide) Wind P 29 * Conventional islands

30 Power Systems strategy Promote clean combustion Improvement in efficiency of power plants Development in renewable energies CO 2 Capture P 30

31 Power Systems strategy Overall optimisation of the power plant Coal Boiler Denitrification system Steam turbine and generator Dust Collector P 31 Desulphurisation system

32 Power Service s strategy Benefit from our important installed base (25%) 38 engineering centres 27 service workshops 21,000 specialists Power Service workshops Power Service sites Power plants containing at least one Alstom-made equipment P 32

33 Power Service s strategy Innovate to differentiate Extending products lifetimes Reducing environmental impacts Improving power plants performances P 33

34 Rail transport

35 Market Active demand throughout the world Strong urbanisation and increase in mobility Increase in fuel prices Environmental constraints Growth in all rail transport activities Sustained market for very high speed and mass transit Increased needs for service and signalling Stronger growth than anticipated P 35

36 Our products Good positioning in rolling stock Long distance Locomotives Regional Interurban High speed Very high speed Worldwide reference for very high speed More than 1,000 CITADIS tramways sold Tramways Metros Threshold of 2,500 metros reached Short distance Speed P 36

37 Our products Infrastructure and in services and systems Signalling Service and maintenance P 37

38 Transport s strategy Standardised platforms Very high speed >250kph (La Rochelle, France) TGV/AGV Intercity trains: from 140kph to 250kph (Savigliano, Italy) PENDOLINO/MINUETTO/X TRAPOLIS Regional trains: from 100kph to 180kph (Salzgitter, Germany) CORADIA P 38 Urban trains (Valenciennes, France) CITADIS/METROPOLIS Locomotives (Belfort, France) PRIMA

39 Transport s strategy Grasp increasing opportunities outside Europe Very high speed train projects: Booming markets: North Africa (tramways ) Russia (cooperation with Transmashholding in rolling stock) India (rolling stock, signalling) Argentina (Buenos Aires-Rosario-Cordoba) Morocco (Tangier-Casablanca) Saudi Arabia (link between holy cities) P 39

40 Agenda 1. Introduction 2. Main events of fiscal year 2007/08 3. Focus on our strategy 4. Financial results of fiscal year 2007/08 5. Outlook and conclusion P 40

41 Group s order intake Record commercial activity + 23% P / /08 In billions of euros / Actual figures

42 Order intake by Sector Further growth in Power, strong increase in Transport Power Systems + 21% Power Service Transport + 8% + 39% / / / / / /08 P 42 In billions of euros / Actual figures

43 Major commercial successes in power generation 38 gas turbines ordered (of which 18 GT26) Breakthrough in the desalination market (Fujairah in the Middle East) Turbine islands for the biggest coal-fired power plant in South Africa (9.6 GW) Hydro: strong activity in Vietnam, Brazil, Uganda and China Contract for 4 conventional islands for nuclear power plants in China 10 maintenance contracts in Italy, Ireland, UK, Brazil, United Arab Emirates and Morocco P 43

44 Major commercial successes in transport Significant TGV orders in France and Argentina AGV chosen by a private operator in Italy PENDOLINO trains for the Helsinki-Saint Petersburg link METROPOLIS contracts in New York, Brazil, France, Turkey and China Many CITADIS tramways sold (Dublin, Rotterdam) and a tram-train in France Success of CORADIA regional trains in Germany, and suburban trains in Spain and Australia Signalling systems in Belgium and maintenance contracts in UK and Spain P 44

45 Order intake by destination Balanced distribution in 2007/08, strong growth in Africa/Middle East Europe (50%) North America (13%) Asia/Pacific (14%) Power Systems Power Service Transport P 45 South America (4%) Africa/Middle East (19%)

46 Group s backlog Good visibility with a backlog of 28 months of sales + 21% P / /08 In billions of euros / Actual figures

47 Group s sales Sales growth exceeds forecasts + 19% P / /08 In billions of euros / Actual figures

48 Sales by Sector Power Systems Growth in all Sectors Power Service Transport + 37% + 13% + 4% / / / / / /08 P 48 In billions of euros / Actual figures

49 Income from operations and operating margin of the Group Increase in the Group s operational performance 6.7% % 7.7% 1,295 P / /08 In billions of euros / Actual figures

50 Income from operations and operating margin by Sector Significant progress in operational performance in all 3 Sectors Power Systems + 106% Power Service Transport + 16% + 13% 16.4% 3.5% 5.3% % % % / / / / / /08 P 50 In billions of euros / Actual figures

51 Group s net income Strong increase of net income + 56% * *Restated following a change in accounting for pensions 2006/ /08 P 51 In billions of euros / Actual figures

52 Group s free cash flow Record level of cash flow + 119% 1, / /08 P 52 In billions of euros / Actual figures

53 Balance sheet structure Strengthening of equity Net cash 2,245 1,375* 904 *Restated following a change in accounting for pensions 1 April March March 2007 (64) 31 March 2008 P 53 In billions of euros / Actual figures

54 Agenda 1. Introduction 2. Main events of fiscal year 2007/08 3. Focus on our strategy 4. Financial results of fiscal year 2007/08 5. Outlook and conclusion P 54

55 New forecasts March 2010 operating margin forecast reviewed upwards: ~9% for the Group Power: between 10% and 11% Transport: between 7% and 8% Based on current market conditions and trends, the operating margin should further increase beyond March 2010 P 55

56 P 56 We are shaping the future

57 P 57 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 forwardlooking 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.

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59 Independent Auditors reports

60 Dialogue with Shareholders

61 Vote of the resolutions

62 1 st resolution As an Ordinary Shareholders Meeting Approval of the statutory financial statements and operations for the fiscal year ended 31 March 2008 P 62

63 2 nd resolution As an Ordinary Shareholders Meeting Approval of the consolidated financial statements and operations for the fiscal year ended on 31 March 2008 P 63

64 3 rd resolution As an Ordinary Shareholders Meeting Dividend: 1.60 per share Allocation of net income: Income for the financial year 179,967, Amount previously carried forward 1,262,405, Allocation to the legal reserve 4,178, Distributable income 1,438,194, Dividend paid 226,563, Balance carried forward 1,211,630, P 64

65 4 th resolution As an Ordinary Shareholders Meeting Independent Auditors special report on a related party agreement concluded in a prior fiscal year P 65

66 5 th resolution As an Ordinary Shareholders Meeting Independent Auditors special report on a related party agreement Commitments described in Article L of the French Commercial Code made to the benefit of Mr Kron P 66

67 6 th resolution As an Ordinary Shareholders Meeting Ratification of the co-optation of Bouygues as a Director P 67

68 7 th resolution As an Ordinary Shareholders Meeting Renewal of the appointment of Mr Jean-Paul Béchat as a Director P 68

69 8 th resolution As an Ordinary Shareholders Meeting Renewal of the appointment of Mr Pascal Colombani as a Director P 69

70 9 th resolution As an Ordinary Shareholders Meeting Renewal of the appointment of Mr Gérard Hauser as a Director P 70

71 10 th resolution As an Ordinary Shareholders Meeting Authorisation to be given to the Board of Directors to trade the Company s shares Maximum amount: 10% of the share capital P 71

72 11 th resolution As an Extraordinary Shareholders Meeting Authorisation to issue any type of securities giving access to the Company s shares or one of its subsidiaries, with maintenance of the preferential subscription rights - Capital increase: 600 millions * - Debt securities: 2 billion ** * Global maximum amount (11 th, 12 th and 13 th resolutions) ** Global maximum amount (11 th and 12 th resolutions) P 72

73 12 th resolution As an Extraordinary Shareholders Meeting Authorisation to issue any type of securities giving access to the Company s shares or one of its subsidiaries, with cancellation of preferential subscription rights - Capital increase: 250 millions * - Debt securities: 1 billion ** * Such maximum amount shall reduce the 600 million overall limit ** Such maximum amount shall reduce the 2 billion overall limit P 73

74 13 th resolution As an Extraordinary Shareholders Meeting Authorisation to increase the share capital to remunerate contributions in kind of shares or securities giving access to the Company s share capital Maximum amount: 10% of the share capital * * Such maximum amount shall reduce the 250 million cap and the 600 million overall limit P 74

75 14 th resolution As an Extraordinary Shareholders Meeting Authorisation to issue shares or securities giving access to the Company s share capital reserved for members of a savings plan Maximum amount: 2% of the share capital * * Overall limit (14 th and 15 th resolutions) P 75

76 15 th resolution As an Extraordinary Shareholders Meeting Delegation of authority to increase the share capital with waiver of the preferential subscription rights to a category of beneficiaries Maximum amount: 0,5% of the share capital * * Such maximum amount shall reduce the 2% overall limit (14 th resolution) P 76

77 16 th resolution As an Extraordinary Shareholders Meeting Two-for-one split of the par value of ALSTOM s shares P 77

78 17 th resolution As an Extraordinary Shareholders Meeting Update of Article 15 of the Articles of Association Distance voting by electronic telecommunication means before Shareholders Meetings Expiry of the two-year period to carry out the consolidation of the shares P 78

79 18 th resolution As an Extraordinary Shareholders Meeting Authorisation to implement the Shareholders Meeting s decisions and complete the formalities P 79

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