ALSTOM SA: Alstom’s orders and sales for the first nine months of
2021/22
Alstom’s orders and sales for the first nine months of
2021/22
- 9-month order intake at €14.3
billion, up 47 percent vs. last year’s proforma, with strong €4.6
billion order intake in Q3, and a sustained backlog at €77.8
billion.
- 9-month sales at €11.4 billion, up
11 percent vs. last year’s proforma, in line with announced growth
trajectory. Solid sales of €3.9 billion in Q3.
- Full year outlook and mid-term
2024/25 objectives confirmed.
20 January
2022 – Over the third quarter 2021/22
(from 1 October to 31 December 2021), Alstom booked €4.6 billion of
orders. The Group’s sales reached €3.9 billion.For the first nine
months of 2021/22 (from 1 April to 31 December 2021), Alstom’s
order intake reached €14.3 billion. The Group’s sales reached €11.4
billion in line with targeted trajectory. The backlog, on 31
December 2021, reached €77.8 billion and provides strong visibility
on future sales.
Key figures
Actual
figures |
2020/21
proforma1 |
|
2021/22 |
|
2020/21
proforma |
2021/22 |
% ChangeReported |
% Changeproforma |
|
(in €
million) |
Q1 |
Q2 |
Q3 |
Q4 |
|
Q1 |
Q2 |
Q3 |
|
9 months |
9 months |
|
|
Orders received |
3,058 |
2,306 |
4,366 |
4,760 |
|
6,439 |
3,287 |
4,576 |
|
9,731 |
14,302 |
+219% |
+47% |
Sales |
2,789 |
3,747 |
3,712 |
3,727 |
|
3,701 |
3,742 |
3,916 |
|
10,248 |
11,359 |
+104% |
+11% |
Geographic and product breakdowns of reported orders and sales
are provided in Appendix 1. All figures mentioned in this release
are unaudited.
“Alstom is making solid progress with a strong
growth momentum. With our extended scope and portfolio, we
continued to win in a strong market environment, driven by large
scale investments into sustainable mobility. During the third
quarter, Europe was the most dynamic region for Alstom
commercially. Our sales have progressed as announced, thanks to
production ramp-up and stabilisation of our rolling stock projects
and strong performance in Services. The end of this month will mark
the one-year anniversary of the Bombardier Transportation
acquisition with our integration roadmap fully on track.”, said
Henri Poupart-Lafarge, Alstom Chairman and Chief Executive
Officer.
***
Detailed review
During the third
quarter of
2021/22
(from 1 October to 31 December
2021),
Alstom recorded
€4,576 million
in orders,
versus €4,366
million in Q3
2020/21
proforma, with notably strong order
intakes in Rolling Stock and
Services. Orders for Services reached a
record level of €1,769 million. Over nine months, orders for
Services, Signalling and Systems reached 49% of the total order
intake. On a regional level, Europe continues to fuel the growth.
Notable orders include the large High Speed Two (HS2) contract
in the UK for about £1.97 billion for our 50/50 joint-venture with
Hitachi for 54 very high-speed trains and 12 years of maintenance.
In Romania, the Group recorded the renewal of the full maintenance
services for the Bucharest metro fleet over 15 years for a total
value of €500 million. In Ireland, Alstom booked a firm order for
regional and commuter trains for €270 million as part of a new
ten-year frame agreement; in France the Group won an order of 37
new trams for the T1-Line in the Ile-de-France region worth around
€130 million as well as an order for our Omneo double-deck trains
for €250 million. In Belgium, the Group was awarded a contract for
further 98 double-deck M7 train cars for €268 million and in
Germany it will supply 17 Coradia Stream trains for the Main-Weser
network2.
In the Americas region, Alstom signed an
overhaul contract in Canada for 94 bi-level commuter railcars for
€118m. Regarding sales, €3,916 million were traded in the third
quarter 2021/22 (from 1 October to 31 December 2021) versus
€3,712million in Q3 2020/21 proforma. Compared to Q2 2021/22, sales
progressed in all product lines, as a consequence of the
stabilisation efforts in Rolling Stock and good performance in
Services in particular.
***
Main events of the third quarter
2021/22
During the quarter, Alstom launched a range of
initiatives to accelerate its transformation towards a more
competitive and agile group.
In Morroco, Alstom is investing €10.5 million to
build a new production line for on-board transformers in its Fez
site. It will be operational in 2023. In Brazil, the Group is
investing €14 million in the modernisation of its Taubaté rolling
stock factory. Alstom inaugurated a new component manufacturing
facility in Coimbatore, India, its largest components manufacturing
facility in Asia. The investment in Coimbatore totalled €25
million.
In Europe, Alstom communicated to employee
representatives its plan to transform the German organisation with
a stronger focus on signalling and services while it will
adjust its capacity in some of the German production sites.
As part of its commitments to the European
Commission in relation to the acquisition of Bombardier
Transportation, the Group announced in November 2021 the sale of
the Coradia Polyvalent platform, the Reichshoffen site and the
Talent 3 platform to CAF and the transfer of Bombardier
Transportation’s contribution to the V300 ZEFIRO very high-speed
train to Hitachi Rail. Closing of the CAF transaction is expected
in H1 2022/23, while the Hitachi transaction could be closed in the
first semester of 2022 calendar year.
Alstom successfully refinanced its two Revolving
Credit Facilities (RCF) in January 2022. The 5-year main RCF was
increased from €1.5 billion to €2.5 billion with a maturity
extended to January 2027 and will be a backstop to the Group’s €2.5
billion NEU CP program. The €1.75 billion RCF maturity was extended
to January 2025. Both facilities have two one-year extension
options at lenders’ discretion and are currently undrawn. This
further reinforcement of the Group’s liquidity demonstrates
Alstom’s commitment to a conservative financial policy and the
strong support it benefits from its banking pool.
In November, Alstom delivered in France the
300th trainset of its Omneo 2N platform. This delivery is part of a
framework contract signed with SNCF in 2010 and proves the success
of this platform in the French regions. Since its commissioning in
2014, this platform has met the various requirements of the public
transport authorities thanks to its modularity.
Also, in November, China’s first fully automated
and driverless elevated monorail entered service in Wuhu and in
December the driverless Innovia airport APM entered service at
Shenzhen Bao’an International Airport.
In December, Alstom’s latest generation of tram,
the Citadis X05, entered passenger service in Athens.
Alstom, in partnership with Cylus, integrated in
its CBTC3, an advanced rail threat detection and monitoring
solution, in Tel Aviv. CylusOne is a rail-specific,
multi-layered, threat detection and monitoring solution powered by
advanced Artificial Intelligence and Machine Learning
technology. Alstom also reinforced its share in this
innovative company’s equity by participating in Cylus’ Series B
capital increase.
In the third quarter 2021/22, Alstom further
strengthened its technological leadership in zero-emission
solutions. The Group continued to build an eco-system for its
hydrogen rail offering: a collaboration agreement with Liebherr –
Aerospace & Transportation SAS to optimise hydrogen systems; a
partnership with Hynamics, the hydrogen subsidiary of the EDF
Group, to optimise the hydrogen refuelling of passenger trains; and
an agreement with Hungary’s leading oil and gas company MOL to
explore use of hydrogen technologies for rail transport in Hungary.
The Group also invested a further €6 million in a fuel cell
production unit in its recently acquired Helion Hydrogen Power
subsidiary in France.
Thanks to the Group’s continuous R&D efforts
to decarbonise mobility, Alstom is the preferred partner for
operators wishing to decrease their CO2 emissions. In November,
Alstom and Eversholt Rail signed an agreement for ten hydrogen
trains for the UK’s first-ever hydrogen train fleet. The new HMU
fleet will be based on the latest evolution of the Alstom
Aventra platform and the intention is that final contracts for
the fleet will be signed in 2022.
In December, Alstom announced that it would
deliver 13 X’trapolis battery trains to Irish Rail as part of the
large order from the new ten-year frame agreement in Dublin,
Ireland, replacing diesel powered trains. The trains are expected
to be operational in 2025.
-
One Alstom team Agile, Inclusive and
Responsible
For the eleventh consecutive year, Alstom has
been included in the Dow Jones Sustainability Indices (DJSI), World
and Europe, attesting to its leadership position in sustainable
business practices. The Company reached an overall score of 75 out
of 100 in the Corporate Sustainability Assessment and remained in
the top 5% of the best scored companies in its industry.
Significant improvement has been recorded this year in areas such
as Product Stewardship, Materiality, Human Capital Development and
Talent Attraction & Retention.
In addition, Alstom has maintained its presence
in the well-known A-List of the CDP4 which recognizes its
commitment and achievements contributing to the development of the
low-carbon economy.
***
Outlook for fiscal year
2021/22
As the basis for its 2021/22 outlook, the Group
assumes neither further disruptions to the world economy, nor
significant supply-chain shortages, that would materially impact
the Group’s ability to deliver products and services.
-
Book-to-bill ratio above 1 on the back of a very good visibility on
the short-term pipeline
-
Sales progression in H2 vs H1 2021/22 as a result of production
ramp-up and stabilization efforts
-
Progressive recovery of aEBIT
-
Free Cash Flow generation as of H2 2021/22 and onwards
Mid-term financial trajectory and
objectives
The outlook given in connection with the
Capital Markets Day held on 6 July 2021 is confirmed
- Sales: Between 2020/21 (proforma
sales of €14 billion) – and 2024/25, Alstom is aiming at sales
Compound Annual Growth Rate over 5% supported by strong market
momentum and unparalleled €78 billion backlog as of 31 December
2021, securing ca. €30 billion of sales over the next three years.
Rolling stock should grow above market rate, Services at solid
mid-single digit path and Signalling at high single digit
path.
- Profitability: The adjusted EBIT
margin should reach between 8% and 10% from 2024/25 onwards,
benefiting from operational excellence initiatives, the completion
of the challenging projects in backlog while synergies are expected
to deliver €400 million run rate between 2024/25 and 2025/26.
- Free Cash Flow: From 2024/25
onwards, the conversion from Adjusted net income to Free Cash Flow
should be over 80%5 driven by mid-term stability of working
capital, stabilisation of CAPEX to around 2% of sales, and cash
focus initiatives, while benefiting from volume and synergies take
up.
- Alstom will maintain its
disciplined capital allocation focusing on maintaining its
investment grade profile while keeping flexibility and ability to
pursue growth opportunities through focused bolt-on M&A.
- Alstom is committed to delivering
sustained shareholder returns with a dividend pay-out ratio6 of
between 25% and 35%7
1 Refer to “Proforma like-for-like new Alstom”
definition in appendix for detailed on calculation2 finally booked
in Q3 2021/223 Communications-based train control4 formerly known
as the Carbon Disclosure Project5 Subject to short term volatility6
The pay-out ratio is calculated by dividing the amount of the
overall dividend with the “Adjusted net profit from continuing
operations attributable to equity holders of the parent, group
share” as presented in the management report in the consolidated
financial statements.7 Of adjusted net income
|
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 products 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.com Investor
relations:Martin Vaujour - Tel.: +33 (6) 88 40 17
57martin.vaujour@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.Any
reference in this document to variations «Pro forma like-for-like»,
on orders and sales, correspond to a combined, non-audited, group
vision including Alstom legacy fiscal year 2020/21 for the 9 months
and legacy Bombardier Transportation contribution for 9 months of
their fiscal year 2020 (April to December 2020) and January 21 and
is in line with Alstom accounting methods. The variations
calculated using these combined figures exclude any scope and Forex
adjustments.
APPENDIX 1A – GEOGRAPHIC
BREAKDOWN
Actual figures |
2020/21 |
% |
2021/22 |
% |
(in € million) |
9 months |
Contrib. |
9 months |
Contrib. |
Europe |
2,674 |
59% |
9,663 |
68% |
Americas |
324 |
7% |
2,827 |
20% |
Asia / Pacific |
611 |
14% |
1,636 |
11% |
Middle East / Africa |
879 |
20% |
176 |
1% |
Orders by destination |
4,488 |
100% |
14,302 |
100% |
Actual figures |
2020/21 |
% |
2021/22 |
% |
(in € million) |
9 months |
Contrib. |
9 months |
Contrib. |
Europe |
3,263 |
59% |
7,066 |
62% |
Americas |
902 |
16% |
1,820 |
16% |
Asia / Pacific |
671 |
12% |
1,579 |
14% |
Middle East / Africa |
731 |
13% |
895 |
8% |
Sales by destination |
5,567 |
100% |
11,359 |
100% |
APPENDIX 1B – PRODUCT BREAKDOWN
Actual figures |
2020/21 |
% |
2021/22 |
% |
(in € million) |
9 months |
Contrib. |
9 months |
Contrib. |
Rolling stock |
1,370 |
30% |
7,227 |
51% |
Services |
1,251 |
28% |
3,291 |
23% |
Systems |
847 |
19% |
2,291 |
16% |
Signalling |
1,020 |
23% |
1,493 |
10% |
Orders by destination |
4,488 |
100% |
14,302 |
100% |
Actual figures |
2020/21 |
% |
2021/22 |
% |
(in € million) |
9 months |
Contrib. |
9 months |
Contrib. |
Rolling stock |
2,781 |
50% |
6,486 |
57% |
Services |
1,013 |
18% |
2,420 |
21% |
Systems |
657 |
12% |
822 |
7% |
Signalling |
1,116 |
20% |
1,631 |
14% |
Sales by destination |
5,567 |
100% |
11,359 |
100% |
APPENDIX 2 - NON-GAAP
FINANCIAL INDICATORS DEFINITIONS
This section presents financial indicators used
by the Group that are not defined by accounting standard
setters.
Orders received
A 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.
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 and Bombardier NUG
Propulsion System Co. 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 amortization 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 expressed as a percentage of sales.
Free cash flow
Free Cash Flow is defined as net cash provided by
operating activities minus 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.
Net cash/(debt)
The net cash/(debt) is defined as cash and cash
equivalents, marketable securities and other current financial
asset, less borrowings.
Pay-out ratio
The pay-out ratio is calculated by dividing the
amount of the overall dividend with the “Adjusted Net profit from
continuing operations attributable to equity holders of the parent,
group share” as presented in the management report in the
consolidated financial statements.
Proforma like-for-like new
AlstomThe "proforma like-for-like New Alstom" variations,
orders and sales, correspond to the like-for-like variation of
Alstom after the acquisition of Bombardier Transportation
integrating Bombardier Transportation over the comparable periods
preceding the acquisition. The pre-acquisition financial data used
to calculate the "proforma like-for-like New Alstom" variations,
sales, are extracted from the historical accounts of Alstom and
Bombardier Transportation respectively. In order to ensure the
comparability of the results, the proforma restatements as
presented in chapter 3 of the URD “Unaudited proforma Condensed
Financial Information as of 31 March 2021" have been applied. Data
related to the commercial performance correspond to orders intake
recorded by Alstom and Bombardier Transportation integrating
Bombardier Transportation over the comparable periods preceding the
acquisition. These indicators are not presented on an organic basis
and, therefore, are not restated in order to 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. Sales Q1, Q2 and Q3 2020/21 of
Bombardier Transportation were converted at the average quarterly
foreign exchange rate EUR/USD of 1/1.1004 for Q1 as communicated in
Bombardier Inc Q2 2020 financial report; 1/1.1648 for Q2 as
communicated in Bombardier Inc Q3 2020 financial report; 1/1.1910
for Q3 as communicated in Bombardier Inc Q4 2020 financial report.
Sales Q4 corresponds to like-for-like variation for Alstom and
Bombardier Transportation combined, considering the activity of
Bombardier Transportation as a whole until the closing date as of
Jan 29th 2021 and the Q4 2020/21 of New Alstom which included
Alstom legacy Q4 2020/21 and Bombardier Transportation contribution
for 2 months (February and March 2021). Bombardier Transportation
monthly financial data of January 2021 (unaudited) are extracted
from the Bombardier Transportation management account in euros.
Financial data post acquisition date is extracted from the
historical statements of Alstom and Bombardier Transportation
combined, prepared in euros under IFRS. Orders received Q1, Q2 and
Q3 2020/21 of Bombardier Transportation were converted at the
quarterly closing foreign exchange rate EUR/USD of 1/1.1284 for Q1
as communicated in Bombardier Inc Q2 2020 financial report;
1/1.1702 for Q2 as communicated in Bombardier Inc Q3 2020 financial
report; 1/1.2271 for Q3 as communicated in Bombardier Inc Q4
2020 financial report.Bombardier Transportation orders for Jan 2021
were extracted from the Bombardier Transportation management
account in euros.
- 2022-01-20 PR Q3 2021-22 VF
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