ALSTOM SA: Alstom's FY 2023/24 results
Alstom FY 2023/24 Free cash flow at
€(557) million following strong €562 million Free cash flow
generation in the second half on the back of operational
turnaround, and €2 billion deleveraging plan ready to be
executed.
- Deleveraging plan now fully
defined, Baa3 rating affirmed, and outlook will be changed to
stable upon successful closing of the hybrid bond issuance and the
rights issue
- Divestments ca. €700
million already announced
- Hybrid bond ca. €750
million with 50% Moody’s equity content
- Rights issue ca. €1
billion, CDPQ and Bpifrance intention to subscribe
prorata
- No dividend proposed with
regards to FY 2023/24
- FY 2023/24
highlights:
- Book-to-bill ratio at 1.1
and sales up 6.7%1 vs. last
year
-
aEBIT2 result of €997
million, up 17%, i.e. margin of 5.7%
- Free Cash Flow at €(557)
million, at the upper range of the revised guidance
- FY 2024/25 outlook
- Book-to-bill above 1 and
sales organic growth around 5%
- aEBIT margin around
6.5%
- Free Cash Flow
within the range €300 million to €500 million
8 May 2024 – Between 1 April
2023 and 31 March 2024, Alstom booked €18.9 billion of orders.
Sales were €17.6 billion, resulting in a book-to-bill ratio at
1.1.
The backlog reached €92 billion, providing
strong visibility on future sales. Gross margin on backlog2 reached
17.5% as of 31 March 2024, compared to 16.9% on 31 March 2023.
In the fiscal year 2023/24, Alstom’s adjusted
EBIT was €997 million, up 17%, equivalent to a 5.7% aEBIT margin,
and EBIT before PPA was €356 million. Adjusted net profit was €44
million, net income (group share) was €(309) million, and free cash
flow was €(557) million for the full year.
On 31 March 2024, the Group’s net debt position
stood at €(2,994) million, compared to the €(2,135) million the
Group reported on 31 March 2023. Alstom benefits from a solid €6.3
billion liquidity position and equity amounting to €8,778 million
on 31 March 2024.
The Board of Directors, in its meeting of 7 May
2024, proposed that no dividend will be paid with regards to the
fiscal year 2023/24.
“Alstom recorded a strong rebound during the
second half of the year, with solid order intake, strong organic
growth, improved profitability and €562 million free cash-flow
generation. Thanks to the support of our reference shareholders, we
will swiftly execute the €2 billion deleveraging plan, allowing for
the stabilization of its Investment Grade rating. In April, we
announced the sale of Alstom’s conventional signalling business in
North America at a favourable valuation, demonstrating the quality
and attractiveness of the Group’s assets. We are confident in the
strength of our backlog and our strategy of selectivity and mix
evolution towards services. The Group is capitalizing on the solid
operational progress made over the last three years and is
launching new initiatives to improve its industrial performance and
reduce overheads and indirect procurement costs. Altogether, Alstom
is now set on stronger foundations to deliver sustainable profit
and cash generation.” said Henri Poupart-Lafarge,
Chairman of the Board and Chief Executive Officer of Alstom.
***
Key figures3
Reported figures(in € million) |
Full-year ended 31 March
2023 |
Full-year ended 31 March
2024 |
% Change Reported |
% Change Organic |
Orders received4 |
20,694 |
18,947 |
(8.4)% |
(6.9)% |
Sales |
16,507 |
17,619 |
6.7% |
9.4% |
Adjusted EBIT4 |
852 |
997 |
17% |
|
Adjusted EBIT margin4EBIT before PPA4 |
5.2% |
5.7% |
|
|
366 |
356 |
Adjusted net profit4 |
292 |
44 |
|
|
Free Cash Flow |
199 |
(557) |
|
|
(in € million) |
Full year ended 31 March
2023 |
Full-year ended 31 March
2024 |
% Change Reported |
% Change Organic |
Backlog |
87,387 |
91,900 |
5.2% |
5.5% |
Gross margin % on backlog4 |
16.9% |
17.5% |
|
|
***
Progress on Alstom’s action plan to
support its financial targets
During the second half of fiscal year 2023/24,
the Group mobilised around the operational, commercial, and cost
efficiency plan:
- Quality of order intake during the
second half provides comfort in continuing to grow the margin in
backlog: +60bps in FY 2023/24 versus last year, and expected +50bps
per year in the coming three years
- In FY 2023/24, Alstom continued to
ramp-up production rates, delivering 4,645 cars, compared to 4,151
in 2022/23
- Supply chain efficiencies allowed
to decrease inventory days since 30 September 2023
- Costs efficiency programs now
launched across overheads and indirect procurement, with notably
the aim to reduce SG&A over sales by ca. 1pp over three years
vs FY 2022/23.
The €2 billion inorganic deleveraging
plan highlighting commitment to Investment Grade
As announced in November 2023 and reiterated in
January 2024, Alstom’s Board of Directors is committed to a
conservative financial policy and to protect the Group’s Investment
Grade rating, in particular through a ca. €2 billion inorganic
deleveraging plan.
This plan and its execution, which have
been unanimously approved by Alstom’s Board of Directors,
has the following components:
- Divestments for
ca. €700 million:
- Sale of TMH for
€75 million realized in January 2024
- The announced
sale of conventional signalling business in North America to
Knorr-Bremse AG, which will generate proceeds of ca. €630 million
upon closing expected during Summer 2024
- The issuance of
hybrid bonds with 50% equity content for Moody’s5 in an amount of
ca. €750 million to be executed no later than September 2024
subject to market conditions and AMF approval
- A capital
increase with preferential subscription rights in an amount of ca.
€1 billion to be executed no later than September 2024 subject to
market conditions and AMF approval
The ca. €2.4 billion proceeds correspond to ca.
€2 billion of deleveraging, mainly due to the hybrid bond’s 50%
Moody’s debt content.
Each of CDPQ6 and Bpifrance, holding
respectively 17.4% and 7.5% of Alstom’s capital, has declared to
the Company its intention to subscribe for its pro-rata share of
the capital increase.
In addition, Alstom has entered into a standby
underwriting commitment with BNP Paribas, Crédit Agricole Corporate
and Investment Bank, J.P. Morgan and Société Générale, acting as
Joint Global Coordinators, pursuant to which they have undertaken
to underwrite the remainder of the capital raise (i.e. ca. €750
million), subject to the satisfaction of customary conditions
precedent.
Circa €1.2 billion of the proceeds of asset
disposals and of the capital markets transactions will be used to
repay financial debt by September 2024:
- repayment of Neu
CP by €1,033 million
- repayment of RCF
drawings by €175 million
The remainder of the proceeds will be invested
in highly liquid short-term investment (cash equivalent treatment)
and will be earmarked for gross debt reduction at maturity.
Alstom Baa3 long-term issuer rating is
reaffirmed, and the outlook will be changed to stable upon
successful closing of the hybrid bond issuance and the rights
issue.
Alstom will terminate its €2.25 billion credit facility
agreement following the execution of the deleveraging plan.
***
Business update
-
Growth by offering greater value to customers
During the fiscal year 2023/24, the Group
recorded €18.9 billion in orders, with commercial success
across multiple geographies, notably in Europe, Asia/Pacific and in
Americas. During the last fiscal year, Alstom reported an order
intake of €20.7 billion. The (8)% decrease is mostly driven by last
year’s landmark contract awarded by Landesanstalt Schienenfahrzeuge
Baden Württemberg (SFBW) network in Germany of almost €2.5
billion.In Europe, Alstom recorded €11.3 billion
order intake during the fiscal year 2023/24, compared with €12.8
billion over the last fiscal year.
In the U.K, Alstom has signed an eight-year
extension to its Train Services Agreement (TSA) with CrossCountry.
The contract extension, valued at around €950 million, further
secures this long-term partnership and is evidence of the trust
placed by the customer.
In France, Alstom will supply île-de-France
Mobilités and RATP with 103 new MF19 trainsets, which is the new
generation metro on rail, for a total contract value of more than
€800 million, 100% financed by Île-de-France Mobilités. This new
fleet will replace the existing rolling stock on lines 13, 12 and 8
of the Île-de-France metro as of 2027. The Group also signed a
framework contract with Akiem European rolling stock leasing
company for 100 TraxxTM Universal multi-system (MS3)
locomotives, together with an initial firm order for 65
locomotives. The total amount of the framework agreement is up €500
million.
In Germany, Alstom was awarded a contract to
supply 40 Coradia StreamTM High-Capacity electric multiple units
together with full maintenance for 30 years to Nahverkehrsverbund
Schleswig-Holstein (NAH.SH), valued at close to €900 million, and
including an option for up to 55 additional trains with a
corresponding full-service package. The Group also signed a
contract with RAILPOOL for 50 TraxxTM Universal multi-purpose
locomotives.
In Romania, Alstom, as part of a consortium with
the civil works companies Gulermak and Arcada, also signed a
contract with the Cluj-Napoca City Hall in Romania for the
construction of the Cluj-Napoca Metro Line 1. Alstom’s share of
this state-of-the-art turnkey project reaches approximately €400
million.
In Italy, Alstom was awarded a contract for the
supply of high-speed trains.
In Americas, Alstom reported
€2.0 billion order intake, compared with €2.7 billion over the last
fiscal year, driven by a contract with the Southeastern
Pennsylvania Transportation Authority (SEPTA) in the United States
to deliver 130 full low floor electric streetcars for Philadelphia,
valued at over €667 million and with options to build an additional
30 streetcars. And the Group was awarded a contract by the
Connecticut Department of Transportation (CTDOT) in the United
States to supply 60 single-level rail coach cars valued at
approximately €285 million with options to build an
additional 313 cars, as part of CTDOT’s coach renewal program for
its statewide rail system.
In Asia/Pacific, the order
intake stood at €3.2 billion, compared to €3.0 billion for the last
fiscal year. In the Philippines, Alstom in consortium with Colas
Rail has been awarded by Mitsubishi Corporation a contract to
provide an integrated railway system for the extension of the
North-South Commuter Railway project (NSCR). Alstom’s contract
share is worth approximately €1 billion. In Australia, Alstom has
been awarded a contract worth around €900 million to maintain the
regional rolling stock VLocity and Classic fleets in Victoria,
Australia for the next decade.
In Africa/Middle East/Central
Asia, the Group reported €2.4 billion order intake,
compared with €2.2 billion over the last fiscal year. In Israel,
Alstom, a member of the TMT Consortium (TLV Metropolitan Tramway
Ltd.) and its partners Electra Ltd. & Dan Public Transportation
Ltd., have reached financial closure on the contract, awarded in
May 2022, to design, build, maintain, and finance the Tel Aviv
Metropolitan LRT Green line by Metropolitan Mass Transit System Ltd
(NTA). Alstom’s share is valued at €858 million. In Saudi Arabia,
Alstom signed a contract of over €500 million with The Royal
Commission for AlUla (RCU) for AlUla's pioneering battery-powered
tramway – the world's longest catenary-free line.
As of 31 March 2024, the backlog stood at €92
billion, providing the Group with strong visibility over future
sales.
Alstom’s sales amounted to €17.6 billion for the
fiscal year 2023/24, representing a growth of 6.7% on a reported
basis and a strong 9.4% on an organic basis compared with Alstom
sales in the last fiscal year. Sales related to non-performing
backlog, corresponding to sales on legacy projects with a negative
margin at completion, amounted to €1.7 billion during the fiscal
year 2023/24.
Rolling stock sales reached €9.1 billion,
representing an increase of 3.9% on a reported basis and 6.5% on an
organic basis, driven by contracts ramp-up in France, Belgium and
in the US, and the solid level of execution in South Africa, India
and Europe.
Services sales stood at €4.3 billion, up 11.9%
on a reported basis and 14.3% on an organic basis versus last year,
benefiting from the continuous ramp-up in the UK, in Italy and in
the US as well as a solid level of execution in Canada.
In Signalling, Alstom reported €2.6 billion
sales, up 8.9% on a reported basis and 11.8% on an organic basis
versus last year, led by a consistent execution across all regions,
mainly in Europe and in APAC.
Systems sales grew 6.9% on a reported basis and
9.3% on an organic basis, and stood at €1.6 billion, driven by a
good performance of Turnkey Systems projects in Mexico, Egypt and
Canada.
On 14 September 2023, the Office of Foreign
Assets Control (OFAC) of the US department of Treasury added JSC
Transmashholding (TMH AO) to the Specially Designated Nationals and
Blocked Person (SDN) List. TMH AO is the Russian holding company of
TMH Group and is 100% owned by TMH Limited, and Alstom was holding
a 20% stake in TMH limited. The Group further assessed potential
exposures arising from the new OFAC sanctions and made the decision
to sell its stake in TMH. The transaction was closed early January
2024 for an amount of €75 million, carrying value was nil as result
of previous impairment, contributing to the de-risking of the
company’s portfolio.
On 19 April 2024, Alstom announced that it had
entered into a binding agreement with Knorr-Bremse AG, to sell
Alstom’s North American conventional signalling business for a
purchase price of around €630 million. Closing of the transaction
is only subject to customary conditions, including regulatory
approval, and is expected to take place as soon as summer 2024.
Proceeds for Alstom at closing, net of expected tax and transaction
costs, are expected to be around €620 million.
***
2. Innovation by
Pioneering Smarter and Greener Mobility for All
As of end of March 2024, research and
development gross costs amounted to €749 million, i.e.
4.3% of sales, delivering on the Alstom In Motion
strategy which is based on three pillars: Autonomous mobility, Data
factory and Mobility orchestration. Net R&D amounts to €549
million before PPA amortisation.
Programs funded by IPCEI Hydrogen are
ongoing. This important European program supports the
development of new hydrogen trains for regional applications,
shunting locos and freight, leveraging on the experience collected
with Coradia iLint™ regional trains that are now in revenue
service.
Homologation tests of Avelia
Horizon™ are planned in 2024 to enable a start of revenue
service in 2025. The development of international configurations is
ongoing. Alstom has launched the development of Avelia
stream™ 300, addressing the high-speed single deck segment
with a first project for Italy.
The replacement of Adessia™
commuter train has been launched to address the U.K. and USA
markets. This new product range will include EMU, BMU, BEMU and HMU
versions to also replace the existing Diesel trains.
TRAXX™ Multi-system 3 -
locomotives is pursuing homologation tests in 2024 to enable it to
run on the different European corridors. It includes the passenger
version which can be operated at 200kph.
Services product line is
focused on addressing green, sustainable and more efficient
operation concepts. Green re-tractioning initiatives include for
example the retrofit with hydrogen-fuelled internal combustion
engines for locomotives and the ability to provide autonomy for
non-electrified lines via the so-called “Last-mile” functionality
supported by the IPCEI H2 program.
Signalling Product Line worked
on Onvia Control™ L2 A and Onvia Control™
L2 B European Standard convergence, driving market
presence with its integration into TRAXX platform and securing new
contracts for cross border operation, Onvia Cab™ level 2
and level 3 on-board solution together with Automatic
Train Operation, and it continued its footprint expansion with a
new contract in Canada.
Alstom Innovations cluster continued to develop
Autonomous Mobility solutions for Passengers & Freight
trains. Major milestones on the roadmap to achieve GoA4
(Grade of Automation 4) have been successfully passed under real
mainline operating conditions on passengers and freight train with
SNCF in France, and for operation in yard in the Netherlands.
Alstom has also made great strides in developing
a new SaaS platform that will enhance its global digital offering.
The platform streamlines applications integration and deployment in
a trusted and future-proof ecosystem.
***
3. Profitability
The adjusted EBIT margin has progressed from
5.2% over the fiscal year 2022/23 to 5.7% over the fiscal year
2023/24, benefiting from further synergies for 30bps, a steady
reduction of non-performing legacy contracts sales for an impact of
30bps, an increased volume and favourable mix delivering 20bps
gross margin expansion, partially offset by the negative gross
margin impact related to the legacy portfolio deviations for
(30)bps.
Alstom recorded restructuring and
rationalisation charges of €(147) million mainly related to the
reduction of overhead costs for €(115) million (“Autumn” plan) and
adaptation of the production setup for €(32) million, including the
United Kingdom for €(14) million, Germany for €(8) million, France
for €(3) million, Spain for €(3) million and the U.S.A. for €(2)
million.
Costs related to the integration of Bombardier
Transportation were recorded for an amount of €(142) million.
€(118) million charges were related to some legal proceedings
outside the ordinary course of business mainly for two projects -
in U.S.A. and in Turkey, and for legal fees in the context of the
claim against Bombardier Inc. €(30) million were related to
impairment of assets due to the exit from Russia. Other exceptional
expenses were recorded for €(73) million, of which €(36) million of
consequential impacts from restructuring plan already initiated in
Germany.
Alstom’s EBIT before amortisation and impairment
of assets exclusively valued when determining the purchase price
allocation (“PPA”) stood at €356 million. This compares to €366
million for the last fiscal year.
The share in net income from equity investments
amounted to €7 million, excluding the amortisation of the purchase
price allocation (“PPA”) from Chinese joint ventures of €(10)
million.
Adjusted net profit, representing the group’s
share of net profit from continued operations excluding PPA net of
tax, amounts to €44 million for the fiscal year 2023/24. This
compares to an adjusted net profit of €292 million during the last
fiscal year.
The Group’s Net profit/(loss) (Group share)
stood at €(309) million for the fiscal year 2023/24, compared to
€(132) million last fiscal year.
***
4. Financial
structureThe Group’s Free Cash Flow stands at €(557)
million for the fiscal year 2023/24 as compared to €199 million
during the last fiscal year and €(1,119) million at the first half
of fiscal year 2023/24. Cash generation was impacted over the full
year by an unfavourable €(856) million change in working capital
compared to €(219) million in the last fiscal year; mostly due to
change in Trade Working Capital as well as the reversal effect of
the change in law on VAT in France for €(380) million. The Contract
Working Capital is positively impacted by the acceleration of
deliveries from major contracts in the second half of the year,
strong collections of down payments as well as reduction of
provision for risk on contracts.
On 31 March 2024, the Group recorded a net debt
position of €(2,994) million.
In addition to its available cash and cash
equivalents, amounting to €976 million on 31 March 2024, the Group
benefits from strong liquidity with:
- €2.25 billion Revolving Credit
Facility maturing in October 2024;
- €1.75 billion Revolving Credit
Facility maturing in January 2027;
- €2.5 billion Revolving Credit
Facility maturing in January 2029.
The first facility has two six-month extension
options remaining at borrowers’ discretion. Alstom will, however,
terminate its €2.25 billion credit facility agreement following
execution of the deleveraging plan.
The last two facilities have been successfully
extended by one year. On 31 March 2024, the €1.75 billion RCF line
had been drawn down for €175 million, while the other two lines
remained undrawn.
As per its conservative liquidity policy, the
€2.5 billion Revolving Credit Facility serves as a back-up of the
Group €2.5 billion Negotiable European Commercial Papers program in
place. With these RCF lines (€175 million drawn on the RCF on 31
March 2024), the €1.03 billion of Neu CP outstanding on 31 March
2024, the Group benefitted from a €6.3 billion liquidity
available.
***
5. One Alstom team –
Agile, Inclusive and Responsible Decarbonization is at the
heart of Alstom’s strategy. The Group is reducing its Scope 1 &
2 emissions reaching 139 ktonCO2e (representing a 39% decrease
compared to March 2022), while collaborating with suppliers and
customers on reducing its Scope 3 footprint. First results of this
collaboration can be seen through the reduction of emissions
intensity of sold product reaching 4.0 gCO2e/pass.km (i.e. (13)%
compared to March 2022). Alstom CO2e emissions reduction targets
had been validated on the 6th of July 2023 by the independent
Science Based Targets initiative (SBTi) as in line with
requirements to reach Paris Agreement commitments.
The supply of electricity from renewable sources
has also been expanded. Alstom signed a significant Power Purchase
Agreement focused on solar development in Spain. The solar farm is
expected to begin operations early 2025 with a 10-years contract.
The project will cover the equivalent of 80% of Alstom’s
electricity consumption in Europe, so this is a major step in
reaching the target of 100% electricity consumption from
renewables.
Regarding Diversity & Inclusion, the Alstom
in Motion (AiM) 2025 strategy targets to reach 28% of women
managers, engineers and professionals’ roles by 2025. As of end of
March 2024, 24.7% of manager, engineer and professional roles are
held by women. Alstom will continue to accelerate its efforts in
the coming months.
Alstom’s Corporate Social Responsibility
performance is regularly evaluated by various rating agencies; the
Group maintained its presence among the CAC40 ESG index for the
third consecutive year and the DJSI for the 13th consecutive year.
Alstom improved is scoring to ECOVADIS questionnaire with a score
of 77/100 and kept AA score with MSCI agency. In addition, in 2024,
Alstom improved is CDP rating, moving from B to A-. Those results
reflect its strong position and strategy on Sustainability.
In addition, Alstom published for the second
year European Taxonomy-aligned KPIs about Sales, Capex and Opex,
pursuing strong analysis initiated last year. EU Taxonomy-aligned
sales amounted to 60% and ranked Alstom among best in class,
confirming the importance of the sector in which Alstom operates in
achieving the EU’s ambition of carbon neutrality by 2050. The EU
Taxonomy purpose is to redirect capital flows towards sustainable
activities and help navigate transition to a low carbon
economy.
***
Financial trajectory for FY
2024/25
The outlook for FY 2024/25 is based on following
main assumptions:
- Supportive market demand
- FY 2024/25 downpayments consistent
with FY 2023/24
- Balance sheet deleveraging plan
fully executed in FY 2024/25
- End of integration of Bombardier
Transportation in FY 2024/25
FY 2024/25 Outlook:
- Book to bill above 1
- Sales organic growth: around
5%
- aEBIT margin around 6.5 %
- Free Cash Flow generation within
the €300 million to €500 million range
- Seasonality driving:
- negative FCF in the first half of
FY 2024/25 within a range of €(300) million to €(500) million
- margin development to be more
second-half weighted
***
Mid to long-term ambitions
- The Group’s ambition is to deliver
around 5% average sales growth
over the mid to long term, thanks to a book-to-bill above
1, largely driven by Services, Signalling and Systems
product lines. Rolling stock is expected to grow above market rate,
Services and Signalling at high-single digit rates and Systems at
double digit rates.
- On profitability, Alstom’s ambition
is to consistently deliver an adjusted EBIT margin between
8% and 10% over the mid to long term. This improvement
from 5.7% in fiscal year 2023/24 will be driven by:
- Continuous improvement of gross
margin in backlog thanks to quality order intake and completion of
legacy projects.
- Improved execution through
operational excellence initiatives and industrial
optimisation.
- Cost efficiency programs across
indirect procurement and overheads.
Considering the slight dilution from disposals
and the revised timing of the impact from industrial optimisation,
the Group expects to reach this profitability range in FY 2026/27,
versus FY 2025/26 previously.
- Free Cash Flow:
- Alstom expects free cash
flow conversion to trend towards 100% of adjusted net
income over the cycle. Yearly performance is subject to short-term
working capital volatility, notably from the phasing of
downpayments.
- Over the next three years, the
Group expects to deliver at least €1.5 billion in free
cash-flow over FY 2024/25 to FY 2026/27, despite Contract
Working Capital being a headwind over that period.
- Capital allocation priorities
- Priority to deleveraging and
maintaining Investment Grade rating
- Dividends policy to be re-evaluated
once zero net financial debt is reached
- M&A policy:
- Pursue bolt-on acquisitions
(Innovation, Digital, Services)
- Dynamic portfolio management
***
Financial calendar
15 May 2024 |
Universal Registration Document (URD) publication |
20 June 2024 |
General assembly of shareholders |
26 July 2024 |
FY 2024/25 First Quarter – Orders & Sales |
***
Conference Call
Alstom is pleased to invite you to a conference
call presenting its full year results for Fiscal Year 2023/24 on
Wednesday 8 May at 08:30 am (Paris time), hosted by Henri
Poupart-Lafarge, CEO and Bernard Delpit, CFO.
A live audiocast will also be available on
Alstom’s website: Alstom’s Full Year results for FY 2023/24.
To participate in the Q&A session (audio
only), please use the dial-in numbers below:
- France: +33 (0) 1
7037 7166
- UK: +44 (0) 33 0551
0200
- USA: +1 786 697
3501
- Canada: 1 866 378
3566 (toll free)
Quote ALSTOM to the operator to
be transferred to the appropriate conference.
***
The management report and the consolidated
financial statements, as approved by the Board of Directors, in its
meeting held on 7 May 2024, 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.
Alstom™, Coradia™ and Coradia Stream™ are
protected trademarks of the Alstom Group.
1 Of which 9.4% organic growth2 Non – GAAP. See
definition in the appendix.3 Geographic and product breakdowns of
reported orders and sales are provided in Appendix 14 Non - GAAP.
See definition in the appendix.5 100% equity content as per IFRS
accounting standards6 Caisse de dépôt et placement du Québec
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About Alstom |
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Alstom commits to contribute to a low carbon future by developing
and promoting innovative and sustainable transportation solutions
that people enjoy riding. From high-speed trains, metros,
monorails, trams, to turnkey systems, services, infrastructure,
signalling and digital mobility, Alstom offers its diverse
customers the broadest portfolio in the industry. With its presence
in 64 countries and a talent base of over 84,700 people from 184
nationalities, the company focuses its design, innovation, and
project management skills to where mobility solutions are needed
most. Listed in France, Alstom generated revenues of €17.6 billion
for the fiscal year ending on 31 March 2024. For more information,
please visit www.alstom.com |
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Contacts |
Press:Coralie COLLET - Tel.: +33 (0) 7 63 63 09 62
coralie.collet@alstomgroup.com Thomas ANTOINE - Tel.:
+33 (0) 6 11 47 28 60thomas.antoine@alstomgroup.com
Investor relations:Martin VAUJOUR – Tel.: +33 (0)
6 88 40 17 57martin.vaujour@alstomgroup.com Estelle MATURELL
ANDINO – Tel.: +33 (0)6 71 37 47 56
estelle.maturell@alstomgroup.com |
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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 reported 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 approval 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 Joint Global Coordinators, 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.
The Joint Global Coordinators are acting
exclusively for the Company and no one else in connection with the
contemplated capital increase and will not regard any other person
as their respective clients and will not be responsible to anyone
other than the Company for providing the protections afforded to
their respective clients in connection with any offer of securities
of the Company or otherwise, nor for providing any advice in
relation to the offer of securities, the content of this press
release or any transaction, arrangement or other matter referred to
herein. None of the Joint Global Coordinators or any of their
respective directors, officers, employees, advisers or agents
accepts any responsibility or liability whatsoever for or makes any
representation or warranty, express or implied, as to the truth,
accuracy or completeness of the information in this press release
or any other information relating to the Company, its subsidiaries
or associated companies, or for any loss howsoever arising from any
use of this press release or its contents or otherwise arising in
connection therewith.
APPENDIX 1A – GEOGRAPHIC
BREAKDOWN
Reported figures |
FY |
% |
FY |
% |
(in € million) |
2022/23 |
Contrib. |
2023/24 |
Contrib. |
Europe |
12,759 |
61% |
11,326 |
59% |
Americas |
2,682 |
13% |
2,050 |
11% |
Asia/Pacific |
3,028 |
15% |
3,172 |
17% |
Middle East/Africa/Central Asia |
2,225 |
11% |
2,399 |
13% |
Orders by destination |
20,694 |
100% |
18,947 |
100% |
Reported figures |
FY |
% |
FY |
% |
(in € million) |
2022/23 |
Contrib. |
2023/24 |
Contrib. |
Europe |
9,936 |
60% |
10,185 |
58% |
Americas |
2,843 |
17% |
3,466 |
19% |
Asia/Pacific |
2,378 |
15% |
2,424 |
14% |
Middle East/Africa/Central Asia |
1,350 |
8% |
1,544 |
9% |
Sales by destination |
16,507 |
100% |
17,619 |
100% |
APPENDIX 1B – PRODUCT BREAKDOWN
Reported figures |
FY |
% |
FY |
% |
(in € million) |
2022/23 |
Contrib. |
2023/24 |
Contrib. |
Rolling stock |
10,348 |
50% |
6,365 |
34% |
Services |
6,394 |
31% |
6,556 |
35% |
Systems |
1,008 |
5% |
3,685 |
19% |
Signalling |
2,944 |
14% |
2,341 |
12% |
Orders by product line |
20,694 |
100% |
18,947 |
100% |
Reported figures |
FY |
% |
FY |
% |
(in € million) |
2022/23 |
Contrib. |
2023/24 |
Contrib. |
Rolling stock |
8,784 |
53% |
9,123 |
52% |
Services |
3,817 |
23% |
4,272 |
24% |
Systems |
1,476 |
9% |
1,578 |
9% |
Signalling |
2,430 |
15% |
2,646 |
15% |
Sales by product line |
16,507 |
100% |
17,619 |
100% |
APPENDIX 2 – INCOME STATEMENT
Reported figures |
Full-Year ended |
Full-Year ended |
(in € million) |
31 March 2023 |
31 March 2024 |
Sales |
16,507 |
17,619 |
Adjusted Gross Margin before PPA* |
2,325 |
2,523 |
Adjusted Earnings Before Interest and Taxes
(aEBIT)* |
852 |
997 |
Restructuring and rationalisation costs |
(65) |
(147) |
Integration, impairments and other costs |
(279) |
(363) |
Reversal of net interest in equity investees pick-up |
(142) |
(131) |
EARNING BEFORE INTEREST AND TAXES (EBIT) BEFORE
PPA* |
366 |
356 |
Financial result |
(103) |
(242) |
Tax result |
(70) |
(33) |
Share in net income of equity investees |
123 |
(7) |
Minority interests from continued operations |
(24) |
(30) |
Adjusted Net profit |
292 |
44 |
PPA net of tax |
(420) |
(351) |
Net profit – Continued operations, Group
share |
(128) |
(307) |
Net profit (loss) from discontinued operations |
(4) |
(2) |
Net profit (Group share) |
(132) |
(309) |
* See definition below
APPENDIX 3 – FREE CASH FLOW
Reported figures(in € million) |
Full-Year ended |
Full-Year ended |
31 March 2023 |
31 March 2024 |
EBIT before PPA |
366 |
356 |
Depreciation and amortisation1 |
441 |
469 |
JVs dividends |
114 |
310 |
EBITDA before PPA + JVs dividends |
921 |
1,135 |
Capital expenditure |
(289) |
(307) |
R&D
capitalisation |
(142) |
(178) |
Financial &
Tax cash out |
(173) |
(428) |
Others |
101 |
77 |
Funds from Operations |
418 |
299 |
Trade Working
Capital changes |
162 |
(1,421) |
Contract Working Capital changes |
(381) |
565 |
Free Cash Flow |
199 |
(557) |
1 Before PPA
APPENDIX 4 - NON-GAAP FINANCIAL
INDICATORS DEFINITIONSThis section presents financial
indicators used by the Group that are not defined by accounting
standard setters.
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.
Book-to-Bill The book-to-bill
ratio is the ratio of orders received to the amount of sales traded
for a specific period.
Gross margin % on backlogGross
Margin % on backlog is a KPI that presents the expected performance
level of firm contracts in backlog. It represents the difference
between the sales not yet recognized and the cost of sales not yet
incurred from the contracts in backlog. This % is an average of the
portfolio of contracts in backlog and is meaningful to project mid-
and long-term profitability.
Adjusted Gross Margin before
PPAAdjusted Gross Margin before PPA is a KPI that presents
the level of recurring operational performance. It represents the
sales minus the cost of sales, adjusted to exclude the impact of
amortisation of assets exclusively valued when determining the PPA
in the context of business combination as well as significant,
non-recurring “one off” items that are not expected to occur again
in subsequent years.
EBIT before PPAFollowing the
Bombardier Transportation acquisition and with effect from the
fiscal year 2021/22 condensed consolidated financial statements,
Alstom decided to introduce the “EBIT before PPA” KPI aimed at
restating its Earnings Before Interest and Taxes (“EBIT”) to
exclude the impact of amortisation of assets exclusively valued
when determining the PPA in the context of business combination.
This KPI is also aligned with market practice.
Adjusted EBITAdjusted 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,
Alstom Sifang (Qingdao) Transportation Ltd. (formerly Bombardier
Sifang), Bombardier NUG Propulsion System Co. Ltd and Changchun
Changke Alstom Railway Vehicles Company Ltd (formerly Changchun
Bombardier).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.
EBITDA + JV dividendsEBITDA
before PPA plus dividends from joint ventures is the EBIT before
PPA, before depreciation and amortisation, with the addition of the
dividends received from joint ventures.
Adjusted net profitThe
“Adjusted Net Profit” KPI restates Alstom’s net profit from
continued operations (Group share) to exclude the impact of
amortisation of assets exclusively valued when determining the PPA
in the context of business combination, net of the corresponding
tax effect. This indicator is also aligned with market
practice.
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.
Funds from OperationsFunds from
Operations “FFO” in the EBIT to FCF statement refers to the Free
Cash Flow generated by Operations, before Working Capital
variations.
Contract and Trade Working
CapitalContract Working Capital is the sum of:
- Contract Assets & Liabilities,
which includes the Customer Down-Payments
- Current provisions, which includes
Risks on contracts and Warranties
Trade Working Capital is the Working Capital that is not
strictly related to contract. It includes all the elements of the
working capital but
- Income Tax receivables and
payables
- Restructuring provisions
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.
Organic basis This press
release includes performance indicators presented on a reported
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.
|
FY 2022/23 |
|
FY 2023/24 |
|
|
|
|
(in € million) |
Reported figures |
Exchange rate and scope
impact |
Comparable Figures |
|
Actualfigures |
|
|
% Var Act. |
% Var Org. |
Orders |
20,694 |
(336) |
20,358 |
|
18,947 |
|
|
(8.4)% |
(6.9)% |
Sales |
16,507 |
(395) |
16,112 |
|
17,619 |
|
|
6.7% |
9.4% |
|
Full Year-ended 31 March
2023 |
|
Full Year-ended 31 March
2024 |
|
|
|
|
(in € million) |
Reported figures |
Exchange rate and scope
impact |
Comparable Figures |
|
Actualfigures |
|
|
% Var Act. |
% Var Org. |
Backlog |
87,387 |
(275) |
87,112 |
|
91,900 |
|
|
5.2% |
5.5% |
- PR Alstom FY 2023-24 Results- EN - Final
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