ALSTOM SA: Alstom 2020/21 full year results
Alstom 2020/21 full
year results
- Alstom legacy fully in line with
2021 guidance, following strong commercial activity, sound project
execution, and increased profitability
- Bombardier Transportation
integration fully on track
- Positive rail market outlook, supported by important stimulus
plans worldwide
- Continued achievements in ESG
All data if not specified are reflecting
combined Group vision including Alstom legacy fiscal year 2020/21
and Bombardier Transportation contribution for 2 months (February
and March 2021) and are in line with Alstom accounting methods.
Definitions are provided at the end of this press release. Organic
change is excluding scope and forex effects, representing Alstom
legacy performance only compared to fiscal year 2019/20.
11
May 2021 –
Between 1 April 2020 and 31 March 2021, Alstom booked €9.1 billion
of orders, including €664 million for two months contribution from
Bombardier Transportation, consolidating a backlog of €74.5
billion. Sales reached €8.8 billion, including €1,125 million for
two months contribution from Bombardier Transportation. The
book-to-bill ratio was strong, above 1.
The adjusted EBIT stood at €645 million,
integrating former Bombardier Transportation contribution and
Covid-19 impact. Adjusted EBIT margin was at 7.3% at a Group level
and reached 8.0% on an Alstom legacy perimeter and 2.7% for
Bombardier Transportation legacy.
Adjusted net profit amounted to €301 million,
including several one-off items, in part related to Bombardier
Transportation acquisition.
During fiscal year 2020/21, free cash flow
amounted to €(703) million including a €(751) million contribution
from Bombardier Transportation and €48 million positive on an
Alstom legacy perimeter. Net cash/(debt) following Bombardier
Transportation’s acquisition amounted to €(899) million on 31 March
2021. Alstom benefits from solid €4.5 billion liquidity position
and equity amounting to €9,117 million at 31 March 2021.
2020/21 fiscal year results on Alstom legacy
perimeter are in line with its full year guidance.
The Board of Directors, in its meeting of May
10, 2021, decided to propose a dividend distribution of €0.25 per
share at the next Shareholders’ meeting on 28 July 2021, which
corresponds to a 31% payout ratio from the adjusted net profit.
Key figures
(in €
million) |
Fiscal-year
ended31 March 2020 |
Fiscal-year
ended31 March 2021 |
Fiscal-year ended31 March 2021
ex-Alstom |
|
% changereported |
% changeorganic |
Actual figures |
|
|
|
|
|
|
|
Orders backlog |
40,903 |
74,537 |
42,541 |
|
82% |
2% |
|
|
Orders received |
9,900 |
9,100 |
8,436 |
|
(8)% |
(14)% |
|
|
Book-to-bill ratio |
1.2x |
1.0x |
1.1x |
|
|
|
|
|
Sales |
8,201 |
8,785 |
7,660 |
|
7% |
(4)% |
|
|
Adjusted EBIT1 |
630 |
645 |
614 |
|
2% |
|
|
|
Adjusted EBIT margin1 |
7.7% |
7.3% |
8.0% |
|
|
|
|
|
Adjusted Net profit2 |
457 |
301 |
310 |
|
|
|
|
|
Net profit, group
share³ |
467 |
247 |
307 |
|
|
|
|
|
Free cash flow |
206 |
(703) |
48 |
|
|
|
|
|
Net cash / (debt) |
1,178 |
(899) |
|
|
|
|
|
|
Equity |
3,328 |
9,117 |
|
|
|
|
|
|
¹ aEBIT includes equity-accounted investments when these are
considered to be part of the operating activities of the Group.
This mainly includes Chinese joint-ventures, namely CASCO
joint-venture for Alstom as well as, following the integration of
Bombardier Transportation, Bombardier Sifang (Qingdao)
Transportation Ltd., Bombardier NUG Propulsion System Co. Ltd. and
Changchun Bombardier Railway Vehicles Company Ltd. ² net profit
from continued operations (Group share) excluding the impact of
amortisation of assets exclusively valued when determining the PPA
in the context of business combination, net of the corresponding
tax effect.³ Including net profit from discontinued operations and
excluding non-controlling interests
“We opened a new chapter in our history in
2020/21 by finalizing the acquisition of Bombardier Transportation
on January 29th, creating a global mobility leader committed to
respond to the increasing need for greener transportation
worldwide. Commercial performance remained strong this year,
demonstrating that rail is supported by solid market fundamentals:
Alstom secured various large orders in H2 2020/21 such as
double-deckers in the United-States, metros in India and the
largest ever order placed by the Spanish operator RENFE. Sales
resisted well despite the impact of the first Covid-19 wave on our
operations and the Group delivered a solid operational performance
with tangible results in terms of profitability. With the
integration of Bombardier Transportation fully on track, the Group
is starting the new fiscal year fully focused on customer
satisfaction, project execution and on seizing opportunities from
the strong commercial momentum supported by a worldwide push for
sustainable mobility.”, said Henri Poupart-Lafarge, Alstom Chairman
and Chief Executive Officer.
***
Strategic and business
update
This fiscal year 2020/21 closes the second year
of the Alstom in Motion strategy (AiM) announced by Alstom on 24
June 2019 which sets a clear ambition: be the leading global
innovative player for a sustainable and smart mobility. It also
marks the beginning of a new chapter in Alstom history with the
acquisition of Bombardier Transportation closed in January 2021. In
this context and in the context of the Covid-19 crisis, the Group
continues to make good progress on the AiM priorities:
1. Growth by offering
greater value to the
customers
The Group booked €9,100 million in orders in the
fiscal year 2020/21 (-14% organic) compared to €9,900 million over
the same period last year. Bombardier Transportation contribution
amounted to €664 million. This sustained level of orders in the
Covid-19 context results from the commercial activity full recovery
after a softer first semester 2020/21.
Alstom was awarded projects mainly for Rolling
Stock and Services, including a large order in Spain for 152
regional trains with RENFE for a total of €1.4 billion including 15
years associated maintenance for 56 trains, 200 double-deck cars
for the METRA Chicago suburban system in the United-States for €650
million, 34 regional trains in Lower Saxony, Germany, with
associated 30-year maintenance for nearly €760 million, as well as
the first order from its acquired product portfolio for Mumbai
metro 4 and 4A. It also booked metro systems in Taiwan and in
Toulouse in France.
The book-to-bill ratio stood at 1.1 on Alstom
legacy perimeter, in line with FY guidance. On a Group basis, book
to bill stood at 1.04. The backlog amounted to €74.5 billion on 31
March 2021, providing strong visibility on future sales.
During the fiscal year 2020/21, Alstom’s total
sales reached €8,785 million. On an organic basis, sales
experienced a moderate decline down 4% organically, as mainly a
consequence of the Covid-19 first lockdowns on operations in Q1.
Overall, operations resumed nominally in the second half of the
year. Bombardier Transportation two-month activity contribution was
consistent with previous quarters at €1,125 million.
In fiscal year 2020/21, rolling stock sales
reached €4,530 million (down 1% organic) with normalized
manufacturing activity in H2 2020/21 and continued ramp up of large
Rolling Stock projects. Signalling sales reached €1,563 million (up
3% organic), with a moderate decline due to a shift in installation
during Q1 containments followed by positive evolution in H2
2020/21. Services sales reached €1,745 million (up 2% organic)
despite train traffic reduction in particular during the first
quarter. Systems sales reached €947 million (down 32% organic)
with an expected ramp-down on Riyadh systems projects, the
completion of Dubai contract, a fully traded contract in
Panama.
In H2 2020/211, all product lines experienced
organic growth compared to H2 2019/20 but Systems which is
continuing its anticipated ramp down.
In 2020/21, Alstom pursued the implementation of
its Alstom in Motion strategic plan through bolt-on
value-creating acquisitions.
On 30 June 2020, Alstom acquired IBRE (since
renamed Alstom IBRE), a company specialized in the development,
manufacture and supply of cast iron or steel brake discs for
high-speed, intercity, regional and suburban trains, trams and
metros. Its turnover reached approximately €10 million in 2019.
In January 2021, the Group acquired B&C
Transit, a transit engineering design and construction firm
specializing in the passenger rail sector. This transaction
reinforces Alstom’s position in the North American signaling market
by combining the companies’ advanced technology products and
engineering capabilities to the benefit of transit agencies and
operators across the United-States and Canada. B&C Transit,
headquartered in California, had a turnover over US$45 million in
2020.
In March 2021, Alstom expanded its maintenance
expertise in Benelux with the acquisition of Dutch services company
Shunter. Each year, Shunter carries out maintenance, overhaul and
damage repair on more than 1,000 railway vehicles. Shunter’s annual
turnover in 2020 was around €20 million.
On 1 April 2021 (after fiscal year 2020/21),
Alstom completed the acquisition of Helion Hydrogen power. Through
this acquisition, Alstom, who is playing a pioneering role in the
field of hydrogen for the railway sector, extends its portfolio of
innovative solutions and its expertise. Helion Hydrogen Power
employs nearly 30 employees and is based in Aix-en-Provence
(France). The company covers the entire value chain of high-power
fuel cells and has been involved in more than 100 projects and some
30 of its solutions are in operation worldwide
On 2 April 2021 (after fiscal year 2020/21),
Alstom acquired Flertex, a French group specialised in the design
and manufacture of brake linings (pads and shoes) for braking
systems. With this acquisition, Alstom continues to expand and
strengthen its expertise in braking systems, a key element in the
overall technical performance of trains
In September 2020, the Steering Committee of the
Euronext Indices decided to include Alstom in the list of the 40
stocks making up the French CAC40 index; this took effect on Monday
21 September 2020.
2. Innovation in
smarter and greener mobility solutions
Despite the Covid-19 context, Alstom preserved
its innovation capabilities with a sustained level of research and
development net costs at €318 million, i.e. 3.6% of sales, in the
fiscal year 2020/21.
Alstom accelerated its leading positioning on
hydrogen trains with the award of two flagship contracts, in France
for 12 trains of a total value of €190 million and in Italy for a
first order of 6 trains and 8 additional options totalling roughly
€160 million. Alstom also reached several agreements in Europe to
shape the mobility of the future with hydrogen trains, performing
successful testing in the Netherlands and in Austria and a bold
plan to fast-track the hydrogen train industry with investment in
Breeze hydrogen trains in the United-Kingdom.
After having been selected by SNCF Réseau to
develop its next generation signal interlockings, Alstom also
seized the opportunity to successfully introduce its
state-of-the-art technology in Germany with the installation of a
digital interlocking on behalf of DB Netz AG. Once installed, the
technology will begin transmitting rail control information
digitally, increasing the line’s passenger capacity and
reliability. Digitalising rail interlockings is one of the key
steps in introducing European Train Control (ETCS) in Germany. The
German government is financing the implementation of new digital
interlocking technology on seven regional lines as part of a
Covid-19 stimulus package valued at €500 million.
After receiving the award for the "Innovation
Prize for Regulatory Sandboxes" by the Federal Ministry of
Economics of Germany in May 2020, related to a planned test project
to implement Automatic Train Operation (ATO) in daily passenger
operation of regional trains, Alstom, SNCF and its partners ran in
December 2020 the first semi-autonomous train in France. This trial
under real operating conditions marks a major step for the
autonomous train project. The next key stage of the project will be
the circulation, at the end of 2021, of a train with the same level
of partial autonomy on a line equipped with lateral signaling
without any modification to the infrastructure.
3. Efficiency powered
by digital
Alstom delivered an adjusted EBIT of €645
million corresponding to a 7.3% margin in fiscal year 2020/21. On
an Alstom legacy perimeter, adjusted EBIT margin reached 8%
compared to a 7.7% adjusted EBIT margin over the same period
last year. Bombardier Transportation legacy adjusted EBIT margin
stood at 2.7%.
Alstom, on its legacy scope, improved its
profitability 2020/21 despite volume reduction thanks to continued
operational efficiency. In line with its Alstom in Motion
trajectory and despite the Covid-19 crisis, Alstom kept delivering
on its large rolling stock projects with the delivery of a total of
55 trainsets under the PRASA contract in South Africa, the
inauguration of WAG12 eLocomotive by Indian Prime Minister Modi and
the completion of testing of the first Avelia Liberty™ prototype in
Pueblo (Colorado) for Amtrak while continuing testing on the second
prototype between Washington, D.C. and Boston.
Additionally, Alstom2 best cost countries
strategy is well implemented. It pursued its Engineering footprint
optimization with further workload executed in India compared to
2019/20 and increase of sourcing share in best cost countries.
In the context of the sanitary crisis, Alstom
also optimized selling, tender and administrative costs across all
regions and controlled the level of R&D investments while
preserving commercial and innovation capabilities.
Below adjusted EBIT, Alstom booked a €68 million
charge related to Covid-19 incremental costs and inefficiencies
resulting from the implementation of all necessary sanitary
measures in all Alstom sites. In addition, it recorded €117 million
in transaction and integration costs related to the Bombardier
Transportation acquisition and one-off items such as the reversal
of asset impairments and provisions.
Adjusted Net profit from continued operations
(Group share) reached €301 million compared to €457 million
the previous year, primarily impacted by the Covid-19 crisis effect
on volumes, the integration of Bombardier Transportation and other
one-off items below adjusted EBIT. Net profit from continued
operation (Group share) stood at €240 million, after the impact of
amortization of assets exclusively valued when determining the
purchase price allocations at €(61) million after tax.
4. One Alstom team,
agile, inclusive and responsible3
In 2020/21, Alstom reached significant
milestones to enable decarbonisation of mobility.
Alstom also had its emissions reduction targets
approved by the Science Based Targets initiative (SBTi) in January
2021. The targets covering greenhouse gas emissions from Alstom’s
operations (so-called scopes 1 and 2) are consistent with
reductions required to keep warming to 1.5°C, the most ambitious
goal of the Paris Agreement. Alstom’s target for the emissions from
its value chain (scope 3) meets the SBTi’s criteria for ambitious
value chain goals. As a demonstration of its commitment towards
cleaner operation, 60% of its operation are now fed by renewable
energy, to be compared to 36% last year.
As an acknowledgement of the Group’s continued
commitment to be among the best places in the world to work, Alstom
has been certified “Top Employer” in Europe, and for the first time
in Asia Pacific and North America, with certifications in 14
countries, to be compared with 6 countries in 2019/20. Alstom also
progresses on the gender diversity, with 22.3% of women
in management and professional role, to be
compared with 21.4% as of March 2020.
In 2020/21, the foundation benefited from a €1.9
million budget, a significant increase versus last year (€1.5
million), to better support communities suffering from the Covid-19
fallout. In November 2020, the Alstom Corporate Foundation’s Board
has selected 29 projects out of 167 projects submitted for funding
from its 2020/21 budget versus 25 last year.
Alstom reached the highest possible score of “A”
in the 2020 CDP assessment on climate issues, is rated AA by MSCI
ESG, and has been included for the tenth consecutive year in the
Dow Jones Sustainability Indices (DJSI), World and Europe.
Solid balance sheet
During the fiscal year 2020/21, the Group Free
Cash Flow was negative at €(703) million, with a negative
contribution from former Bombardier Transportation at €(751)
million and a positive contribution of Alstom legacy at €48
million, in line with guidance set for the fiscal year 2020/214.
Bombardier Transportation’s cash outflow was mainly attributable to
partial unwinding of working capital practices, supplier repayment,
and working capital phasing.
Alstom legacy experienced a strong cash
performance in H2 2020/21 with deliveries ramp-up and stronger
order intake.
The Group held €1,250 million of cash and cash
equivalent at the end of March 2021. It also had a total of €3,250
million credit line facilities fully undrawn5. Consequently, its
liquidity stood at €4,500 million as of 31 March 2021.
Alstom’s net cash/(debt) amounted to €(899)
million on 31 March 2021, compared to €1,178 million on
31 March 2020, resulting mainly from Bombardier
Transportation’s acquisition and the Group’s cash flow result.
Lastly, equity reached €9,117 million at 31 March 2021 following
all three capital increases as part of Bombardier Transportation
acquisition financing, compared to €3,328 million on 31 March
2020.
***
Bombardier
Transportation acquisition
and integration update On 29 January 2021, Alstom
completed the acquisition of Bombardier Transportation. The
reference price was established at €5.5 billion, at the bottom of
the range of €5.5 billion to €5.9 billion communicated on 16
September 2020. The proceeds for the acquisition were established
at €4.4 billion, which include the impact of the minimum cash
adjustment mechanism based on a negative net cash position of
Bombardier Transportation as of 31 December 2020 and other further
contractual adjustments for an amount of €1.1 billion6.
The enlarged Group has a combined proforma
revenue of around €14 billion and €74.5 billion combined backlog.
It employs 71,700 people in 70 countries, has unparalleled R&D
capabilities, a balanced industrial footprint across the world and
a complete portfolio of products and solutions to better serve its
customers worldwide. Services, Rolling Stock, Signalling and
Systems activities are significantly strengthened building on the
complementarities of Bombardier and Alstom.
Bombardier Transportation integration is fully
on track. 90% of employees consider the acquisition as positive for
the Group. 600 customers were contacted post acquisition, the vast
majority of them being very positive on the acquisition and seeing
the upside potential for their business. N3 organization has been
finalized and more than 30,000 users have been migrated to the
Alstom IT environment.
Additionally, projects reviews have been carried
out: it led to the building of a €632 million additional provisions
for risks on Bombardier Transportation contracts on the top of €451
million already in Bombardier Transportation Balance sheet as of
Dec 20207. Projects securisation roadmap is under
implementation.
Alstom confirms its objective to generate €400
million cost synergies on annual run rate basis by the fourth to
fifth year8 and to restore Bombardier Transportation’s margin to a
standard level in the medium term. The transaction is
expected to be double digit EPS accretive from year 2 post
closing9 and to preserve Alstom’s strong credit profile with a
Baa2 rating.
Proposed dividend
At the Annual General Meeting on 28 July 2021,
the Board of Directors will propose the distribution of a dividend
of €0.25 per share. This level corresponds to a payout ratio of 31%
of adjusted net profit, Group share.
***
Outlook The Alstom outlook will
be provided during a Capital Markets Day to be hosted virtually on
6 July 2021.
***
The management report and the consolidated
financial statements, as approved by the Board of Directors, in its
meeting held on 10 May 2021, are available on Alstom’s website at
www.alstom.com. These financial statements were audited by the
Statutory Auditors whose certification report is in the process of
being issued.
|
About Alstom |
|
|
Leading societies to a low carbon future, Alstom develops and
markets mobility solutions that provide the sustainable foundations
for the future of transportation. Alstom’s product portfolio ranges
from high-speed trains, metros, monorail and trams to integrated
systems, customised services, infrastructure, signalling and
digital mobility solutions. Alstom has 150,000 vehicles in
commercial service worldwide. With Bombardier Transportation
joining Alstom on January 29, 2021, the enlarged Group’s combined
proforma revenue amounts to €14 billion for the 12-month
period ended March 31, 2021. Headquartered in France, Alstom is now
present in 70 countries and employs more than 70,000 people.
www.alstom.com |
|
|
|
Contacts |
Press:Coralie COLLET - Tel.: +33 (1) 57 06 18
81coralie.collet@alstomgroup.com Samuel MILLER - Tel.: +33 (1)
57 06 67 74Samuel.miller@alstomgroup.comInvestor
relations:Julie MOREL - Tel.: +33 (6) 67 61 88
58Julie.morel@alstomgroup.com Claire LEPELLETIER – Tel.:
+33 (6) 76 64 33 06claire.lepelletier@alstomgroup.com |
|
This press release contains forward-looking
statements which are based on current plans and forecasts of
Alstom’s management. Such forward-looking statements are relevant
to the current scope of activity and are by their nature subject to
a number of important risks 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.
This press release does not constitute or form
part of a prospectus or any offer or invitation for the sale or
issue of, or any offer or inducement to purchase or subscribe for,
or any solicitation of any offer to purchase or subscribe for any
shares or other securities in the Company in France, the United
Kingdom, the United States or any other jurisdiction. Any offer of
the Company’s securities may only be made in France pursuant to a
prospectus having received the visa from the AMF or, outside
France, pursuant to an offering document prepared for such purpose.
The information does not constitute any form of commitment on the
part of the Company or any other person. Neither the information
nor any other written or oral information made available to any
recipient or its advisers will form the basis of any contract or
commitment whatsoever. In particular, in furnishing the
information, the Company, the Banks, their affiliates,
shareholders, and their respective directors, officers, advisers,
employees or representatives undertake no obligation to provide the
recipient with access to any additional information
APPENDIX 1A – GEOGRAPHIC
BREAKDOWN
Actual figures |
2019/20 |
% |
2020/21 |
% |
(in € million) |
Fiscal year |
Contrib. |
Fiscal year |
Contrib. |
Europe |
7,624 |
77% |
6,027 |
66% |
Americas |
646 |
6% |
1,050 |
11% |
Asia / Pacific |
1,569 |
16% |
1,059 |
12% |
Africa / Middle East / Central Asia |
61 |
1% |
964 |
11% |
Orders by destination |
9,900 |
100% |
9,100 |
100% |
Actual figures |
2019/20 |
% |
2020/21 |
% |
(in € million) |
Fiscal year |
Contrib. |
Fiscal year |
Contrib. |
Europe |
21,321 |
52% |
40,804 |
55% |
Americas |
5,539 |
14% |
10,491 |
14% |
Asia / Pacific |
6,120 |
15% |
11,209 |
15% |
Africa / Middle East / Central Asia |
7,923 |
19% |
12,033 |
16% |
Backlog by destination |
40,903 |
100% |
74,537 |
100% |
Actual figures |
2019/20 |
% |
2020/21 |
% |
(in € million) |
Fiscal Year |
Contrib. |
Fiscal Year |
Contrib. |
Europe |
4,675 |
56% |
5,316 |
61% |
Americas |
1,280 |
16% |
1,351 |
15% |
Asia / Pacific |
889 |
11% |
1,093 |
12% |
Africa / Middle East / Central Asia |
1,357 |
17% |
1,025 |
12% |
Sales by destination |
8,201 |
100% |
8,785 |
100% |
APPENDIX 1B – PRODUCT BREAKDOWN
Actual figures |
2019/20 |
% |
2020/21 |
% |
(in € million) |
Fiscal Year |
Contrib. |
Fiscal Year |
Contrib. |
Rolling stock |
4,591 |
46% |
4,484 |
49% |
Services |
3,315 |
34% |
2,045 |
23% |
Systems |
265 |
3% |
930 |
10% |
Signalling |
1,729 |
17% |
1,641 |
18% |
Orders by destination |
9,900 |
100% |
9,100 |
100% |
Actual figures |
2019/20 |
% |
2020/21 |
% |
(in € million) |
Fiscal Year |
Contrib. |
Fiscal Year |
Contrib. |
Rolling stock |
20,677 |
51% |
39,052 |
53% |
Services |
13,794 |
33% |
24,737 |
33% |
Systems |
2,288 |
6% |
4,692 |
6% |
Signalling |
4,144 |
10% |
6,056 |
8% |
Backlog by destination |
40,903 |
100% |
74,537 |
100% |
Actual figures |
2019/20 |
% |
2020/21 |
% |
(in € million) |
Fiscal Year |
Contrib. |
Fiscal
Year |
Contrib. |
Rolling stock |
3,942 |
48% |
4,530 |
51% |
Services |
1,469 |
18% |
1,745 |
20% |
Systems |
1,301 |
16% |
947 |
11% |
Signalling |
1,489 |
18% |
1,563 |
18% |
Sales by destination |
8,201 |
100% |
8,785 |
100% |
APPENDIX 2 – INCOME STATEMENT
Actual figures |
FY
2019/20 |
FY
2020/21 |
(in € million) |
|
|
Sales |
8,201 |
8,785*** |
Adjusted Earnings Before Interest and Taxes
(aEBIT) |
630 |
645 |
Restructuring and rationalisation costs |
(18) |
(14) |
PPA amortisation* |
(14) |
(84) |
Impairment loss and other |
9 |
(129) |
Covid-19 inefficiencies & incremental costs |
(24) |
(68) |
Reversal of net interest in equity investees pick-up |
(38) |
(50) |
Earnings Before Interest and Taxes (EBIT) |
545 |
300 |
Financial result |
(76) |
(68) |
Tax result |
(118) |
(63) |
Share in net income of equity investees |
102 |
83 |
Minority interests from continued operations |
(7) |
(12) |
Net profit – Continued
operations – group share |
446 |
240 |
Net profit – Discontinued operations |
21 |
7 |
Net profit –
group share |
467 |
247**** |
|
Adjusted net profit** |
457 |
301 |
* Including PPA related to Bombardier
Transportation acquisition** see definition below*** Thereof impact
of Bombardier Transportation acquisition €1,125m**** Thereof impact
of Bombardier Transportation acquisition €(60)m
APPENDIX 3 – FREE CASH FLOW
Actual figures(in € million) |
FY
2019/20 |
FY
2020/21 |
EBIT |
545 |
300 |
Depreciation and amortisation* |
293 |
391 |
Restructuring variation |
(12) |
(16) |
Capital expenditure |
(195) |
(158) |
R&D capitalisation |
(79) |
(106) |
Change in working capital |
(249) |
(1,001) |
Financial cash-out |
(95) |
(79) |
Tax cash-out |
(102) |
(94) |
Other |
100 |
60 |
Free cash flow |
206 |
(703) |
* Including PPA related to Bombardier
Transportation acquisition for €71m
APPENDIX 4 - NON-GAAP FINANCIAL
INDICATORS DEFINITIONS
This section presents financial indicators used
by the Group that are not defined by accounting standard
setters.
1.1. Orders
receivedA new order is recognised as an order received
only when the contract creates enforceable obligations between the
Group and its customer. When this condition is met, the order is
recognised at the contract value.
If the contract is denominated in a currency
other than the functional currency of the reporting unit, the Group
requires the immediate elimination of currency exposure using
forward currency sales. Orders are then measured using the spot
rate at inception of hedging instruments.
Order backlog
Order backlog represents sales not yet
recognised from orders already received. Order backlog at the end
of a financial year is computed as follows:
- order backlog at the beginning of the year;
- plus new orders received during the year;
- less cancellations of orders recorded during the year;
- less sales recognised during the year.
The order backlog is also subject to changes in
the scope of consolidation, contract price adjustments and foreign
currency translation effects.Order backlog corresponds to the
transaction price allocated to the remaining performance
obligations, as per IFRS 15 quantitative and qualitative
disclosures requirement.
Book-to-Bill
The book-to-bill ratio is the ratio of orders
received to the amount of sales traded for a specific period.
Adjusted EBIT
Adjusted EBIT (“aEBIT”) is the Key Performance
Indicator to present the level of recurring operational
performance. This indicator is also aligned with market practice
and comparable to direct competitors.
Starting September 2019, Alstom has opted for the inclusion of
the share in net income of the equity-accounted investments into
the aEBIT when these are considered to be part of the operating
activities of the Group (because there are significant operational
flows and/or common project execution with these entities).This
mainly includes Chinese joint-ventures, namely CASCO joint-venture
for Alstom as well as, following the integration of Bombardier
Transportation, Bombardier Sifang (Qingdao) Transportation Ltd.,
Bombardier NUG Propulsion System Co. Ltd. and Changchun Bombardier
Railway Vehicles Company Ltd.
aEBIT corresponds to Earning Before Interests
and Tax adjusted for the following elements:
- net restructuring expenses
(including rationalization costs);
- tangibles and intangibles
impairment;
- capital gains or loss/revaluation
on investments disposals or controls changes of an entity;
- any other non-recurring items, such
as some costs incurred to realize business combinations and
amortisation of an asset exclusively valued in the context of
business combination, as well as litigation costs that have arisen
outside the ordinary course of business;
- and including the share in net
income of the operational equity-accounted investments.
A non-recurring item is a “one-off” exceptional
item that is not supposed to occur again in following years and
that is significant.Adjusted EBIT margin corresponds to Adjusted
EBIT in percentage of sales.
The non-GAAP measure adjusted EBIT (aEBIT
hereafter) indicator reconciles with the GAAP measure EBIT as
follows:
|
Full-Year ended |
Full-year ended |
(in € million) |
31 March 2020 |
31 March 2021 |
Adjusted Earnings Before Interest and Taxes
(aEBIT) |
630 |
645 |
Restructuring and rationalisation costs |
(18) |
(14) |
PPA amortisation* |
(14) |
(84) |
Impairment loss and other |
9 |
(129) |
Covid-19 inefficiencies and incremental costs |
(24) |
(68) |
Reversal of Net interest in equity investees pick-up |
(38) |
(50) |
Earnings Before Interest and Taxes (EBIT) |
545 |
300 |
*Including PPA related to Bombardier
Transportation acquisition
Adjusted net profit
Following the Bombardier Transportation
acquisition and with effect from these Fiscal year 2020/21
consolidated financial statements, Alstom decided to introduce the
“adjusted net profit” indicator aimed at restating its net profit
from continued operations (Group share) to exclude the impact of
amortisation of assets exclusively valued when determining the
purchase price allocations (“PPA”) in the context of business
combination, net of the corresponding tax effect. This indicator is
also aligned with market practice.
This non-GAAP measure adjusted net profit
indicator reconciles with the GAAP measure Net profit from
continued operations attributable to equity holders (net profit –
Group share) as follows:
|
|
(in € million) |
FY
2020/21 |
Adjusted net profit |
301 |
Amortization of assets valued when determining the purchase price
allocation |
(61) |
Net Profit from continued operations attributable to equity
holders |
240 |
Free cash flow
Free Cash Flow is defined as net cash provided by
operating activities less capital expenditures including
capitalised development costs, net of proceeds from disposals of
tangible and intangible assets. Free Cash Flow does not include any
proceeds from disposals of activity.
The most directly comparable financial measure
to Free Cash Flow calculated and presented in accordance with IFRS
is net cash provided by operating activities.
A reconciliation of Free Cash Flow and net cash
provided by operating activities is presented below:
|
|
|
(in € million) |
FY
2019/20 |
FY
2020/21 |
Net cash provided by / (used in) operating
activities |
476 |
(455) |
Capital expenditure (including capitalised R&D costs) |
(274) |
(265) |
Proceeds from disposals of tangible and intangible assets |
4 |
17 |
Free cash flow |
206 |
(703) |
Alstom uses the Free Cash Flow both for internal
analysis purposes as well as for external communication as the
Group believes it provides accurate insight into the actual amount
of cash generated or used by operations.
Net cash/(debt)
The net cash/(debt) is defined as cash and cash
equivalents, marketable securities and other current financial
asset, less borrowings.
|
Year ended |
Year ended |
(in € million) |
31 March 2020 |
31 March 2021 |
Cash and cash equivalents |
2,175 |
1,250 |
|
Other current financial assets |
45 |
28 |
|
Financial non-current assets directly associated to financial
debt |
- |
- |
|
Less: |
|
|
Current financial debt |
270 |
526 |
Non-current financial debt |
772 |
1,651 |
Net cash/(debt) at the end of the period |
1,178 |
(899) |
Organic basis
Figures presented in this section include
performance indicators presented on an actual basis and on an
organic basis. Figures given on an organic basis eliminate the
impact of changes in scope of consolidation and changes resulting
from the translation of the accounts into Euro following the
variation of foreign currencies against the Euro. The Group uses
figures prepared on an organic basis both for internal analysis and
for external communication, as it believes they provide means to
analyse and explain variations from one period to another. However,
these figures are not measurements of performance under IFRS.
|
Year ended 31 March
2020 |
|
|
|
|
Year ended 31 March
2021 |
|
|
(in €
million) |
Actual figures |
Exchange rate |
Comparable Figures |
|
Actualfigures |
Thereof impact of acquisitions |
Comparable Figures |
|
% Var Act. |
% Var Org. |
Backlog |
40,903 |
791 |
41,694 |
|
74,537 |
31,996 |
42,541 |
|
82% |
2% |
Orders |
9,900 |
(71) |
9,829 |
|
9,100 |
664 |
8,436 |
|
(8%) |
(14%) |
Sales |
8,201 |
(192) |
8,009 |
|
8,785 |
1,125 |
7,660 |
|
7% |
(4%) |
Pay-out ratio
The payout ratio is calculated by dividing the
amount of the overall dividend with the “Adjusted net profit” as
presented in the management report in the consolidated financial
statements.
1 For H2 2020/21 organic growth, sales were up
+4% with Rolling Stock up +6%, Services up +9%, Signalling up +7%
and Systems down (17)%2 Alstom legacy3 All figures in this
paragraph are for Alstom legacy4 Guidance FY 2020/21 for Alstom
legacy5 Alstom put in place this fiscal year two revolving credit
facilities: a €1,500 million facility with 5-year maturity and two
one-year options at the lenders’ discretion and a €1,750 million
facility with an 18-month maturity and two 6-month extensions at
the borrower’ discretion, replacing Alstom’s and Bombardier’s
existing revolving credit facilities in the context of the
Covid-19
6 Alstom also proceeded, on 29 January 2021, to
the reimbursement of the € 0.75 billion Equity injections to CDPQ
and Bombardier Inc.7 $554m provision for onerous contracts in Note
25 of Bombardier Inc financial reports as of Dec 2020, converted at
Dec 31st exchange rate8 Post-closing of the acquisition9 After cost
synergies and implementation costs, and before PPA amortization
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