ALSTOM SA: Alstom FY 2021/22 results fully in line with outlook,
mid-term targets confirmed
Alstom FY
2021/22
results fully in line
with outlook, mid-term targets
confirmed
- Order backlog at a record
high of €81.0 billion.
Book-to-bill ratio at 1.25
- Sales at
€15.5 billion in 2021/22,
increase of 11%
compared to last year proforma and at +7.9% H2
2021/22 vs H1 2021/22
-
aEBIT1 margin at
5%, progressive recovery in H2
2021/22, with projects
stabilisation
executed as planned
- Adjusted
net
profit1 2 in FY
2021/22 amounted to €268 million
before non-cash impairment charge
of the 20% stake in TMH
- Positive
Free Cash Flow1
at €469 million
for H2 2021/22
thanks to a
positive working
capital evolution
- Alstom in Motion 2025
mid-term targets confirmed, synergies
raised to €475 -
€500 million from
2025/26 onwards
11
May 2022 –
Between 1 April 2021 and 31 March 2022, Alstom booked €19.3 billion
of orders. Sales reached €15.5 billion. The book-to-bill ratio is
strong at 1.25.
In the fiscal year 2021/22, Alstom’s adjusted
EBIT1 reached €767 million, equivalent to a 5.0% aEBIT1 margin.
The adjusted net profit in FY 2021/22 amounted
to €268 million before non-cash impairment charge of the 20% stake
in TMH. Taking into account the non-cash impairment charge of
€(441) million corresponding to the carrying value of the equity
investment in TMH, adjusted net profit totalled €(173) million as
at March 31, 2022.
During the second half of 2021/22, Free cash
flow amounted to €469 million, totalling €(992) million for the
full year.
At 31 March 2022, the Group’s net debt position
stood at €2,085 million, compared to the €899 million that the
Group reported on 31 March 2021. Alstom benefits from a solid
€5,060 million liquidity position and equity amounting to €9,024
million at 31 March 2022.
The Board of Directors, in its meeting of May
10, 2022, decided to propose a dividend distribution of €0.25 per
share at the next Shareholders’ meeting on 12 July 2022, which
corresponds to a 35% payout ratio from the adjusted net profit
before TMH impairment charge3.
“Our fiscal year results are fully in line with
our objectives, both in terms of financial and operational
performance. Driven by a very positive market, the Group recorded
in 2021/22 a strong order intake, reflecting its enlarged momentum,
with significant wins in Europe but also in Latin America, in
Taiwan and in Australia. During the second semester, project
stabilisation was pursued as planned. Thanks to the commitment of
our 74,000 employees, the integration of Bombardier Transportation
is fully on track with increased customer satisfaction and
synergies being delivered. Despite short term headwinds linked to
the macro-economic and geopolitical situation in 2022/23, the Group
remains fully committed to achieving its 2025 ambitions and playing
a major role in the mobility transition,” said Henri
Poupart-Lafarge, Alstom Chairman and Chief Executive Officer.
Key figures4
Actual figures(in € million) |
Full-year ended 31 March 2021 |
Full-year ended 31 March 2021 proforma5 |
Full-year ended 31 March 2022 |
% change reported |
% change proforma5 |
Orders backlog |
74,537 |
|
81,013 |
9% |
|
|
Orders received6 |
9,100 |
14,491 |
19,262 |
112% |
33% |
|
Sales |
8,785 |
13,976 |
15,471 |
76% |
11% |
|
Adjusted EBIT6 7 |
645 |
|
767 |
19% |
|
|
Adjusted EBIT margin6 7EBIT before PPA6 |
7.3%384 |
|
5.0%275 |
|
|
|
Adjusted net profit6 8 |
301 |
|
(173) |
|
|
|
Free Cash Flow6 |
(703) |
|
(992) |
|
|
|
***
Strategic and business
update
The enlarged Group made progress on all four
pillars of its Alstom in Motion 2025 strategy in this fiscal year
2021/22:
-
Growth by offering greater value to customers
During the fiscal year 2021/22, the Group saw
significant commercial success across multiple geographies and
product lines. The order intake stood at €19.3 billion,
representing a growth of 33% on a “Pro forma like-for-like New
Alstom” comparable basis. For the same period last year, under an
adverse market environment impacted by Covid-19, Alstom reported an
order intake of €9.1 billion.
Europe continues to fuel growth by recording
€12.7 billion order intake during the fiscal year 2021/22. The
Group was awarded a landmark framework agreement with Danish State
Railways (DSB) valued at a total of €2.6 billion, including the
first firm order of 100 Coradia StreamTM regional trains as well as
a 15-year full-service maintenance agreement. In the United
Kingdom, Alstom signed contracts with High Speed Two (HS2) to
design, build, and maintain the next generation of very high-speed
trains as part of the £1.97 billion contract in a 50/50 joint
venture with Hitachi. The Group also secured various contracts for
suburban and regional trains in Germany, Ireland, Norway, and
Romania.
In Americas, Alstom reported €4.0 billion order
intake, confirming a positive market momentum in the region. In
Latin America, Alstom achieved an exceptional performance where the
Group secured the Tren Maya railway project in Mexico, worth €1.0
billion. For this project, the Group will supply 42 X’trapolisTM
trains, the full signalling system and maintenance.
The Asia/Pacific region’s order intake stood at
€2.3 billion. The Alstom-led consortium with Taiwanese engineering
and contracting services company CTCI won a contract to provide its
state-of-the-art integrated metro system for Taipei Circular Line
Phase Two, with Alstom’s share valued at over €430 million. In
addition, Alstom signed a €300 million contract with Victoria’s
Department of Transport (DoT) to locally supply 25 six-car
X’trapolisTM trains for Melbourne’s suburban rail network.
In Africa/Middle East/Central Asia, the Group
reported €0.3 billion order intake, mainly driven by the contract
to provide Casa Transports with 66 CitadisTM trams X05 in
Morocco.
As of 31 March 2022, the orders backlog stood at
€81 billion. Its contribution to the next three fiscal years
revenue is expected to reach the €35 billion - €37 billion
range.
Alstom’s sales amounted to €15.5 billion for the
fiscal year 2021/22, representing a growth of 11% on a “Pro forma
like-for-like New Alstom” comparable basis. Sales related to
non-performing backlog, representing sales on projects with a
negative margin at completion, as identified at the time of the
Half-Year publication, amounted to €2.6 billion during this fiscal
year. In H2 2021/22 (from 1 October 2021 to 31 March 2022),
Alstom’s total sales reached €8,028 million versus €7,443 million
in H1 2021/22 (+7.9%),
In Rolling stock, the H2 2021/22 sales at €4,362
million (+2% vs H1 2021/22) were sustained by the progressive
ramp-up reflecting the focus on project stabilisation. H2 2021/22
sales in Services amounting €1,847 million (+18% vs H1 2021/22)
illustrate the positive growth both in maintenance, notably in the
United Kingdom and in Romania, and in train operations, mainly in
the Americas. In Signalling, Alstom reported €1,186 million sales
in H2 2021/22 (+10% vs H1 2021/22), benefiting from the sound level
of project execution in Americas and the strong commercial momentum
in Europe, notably in Germany. Systems delivered €633 million of
sales in H2 2021/22 (+21% vs H1 2021/22), a significant growth
fuelled by new orders starting to contribute to revenues such as
Tren Maya and the monorail project in Thailand.
- Divestments and Acquisitions
In 2021/22, 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 both transactions are expected in
H1 2022/23.
Also, in 2021/22, Alstom reinforced its share in
Cylus’ equity, an innovative company by participating in its Series
B capital increase. CylusOne is a rail-specific, multi-layered,
threat detection and monitoring solution powered by advanced
Artificial Intelligence and Machine Learning technology which is
present in Alstom’s CBTC9 system in Tel Aviv.
Lastly, Alstom took over the remaining minority
stakes in EKZ (Kazakhstan) and Ubunye (South Africa), now owned
100% by Alstom in both cases.
2. Innovation
by Pioneering Smarter and Greener Mobility for
All
Alstom achieved major milestones in its smarter,
greener and more inclusive mobility innovation roadmap. The R&D
expenses reached €530 million10, i.e. 3.4% of sales, in the fiscal
year 2021/22, reflecting the Group’s continuous investments in
innovation based on three pillars: Green Mobility, Smart Mobility
and Inclusive and Healthier Mobility.
In April 2021, Alstom and ENGIE signed a
partnership agreement to offer the rail freight sector a solution
for the decarbonisation of mainline operations by replacing
diesel-powered locomotives with a hydrogen solution. This
partnership aims to provide a low-carbon, zero-emission solution in
response to climate, environmental and public health issues,
for non-electrified branch lines and sidings. The target
market is the major European rail freight countries. For Alstom,
this partnership is in line with its strategic plan ‘Alstom in
Motion 2025’ as well as its hydrogen strategy initiated in 2013
with the development of the Coradia iLint train and pursued with
the acquisition of fuel cell manufacturer Helion Hydrogen Power in
2021.In January 2022, Alstom and Deutsche Bahn in cooperation with
Baden-Württemberg and Bavaria opened a new chapter in
climate-friendly rail operations when they put Alstom’s first fully
approved battery train to the test with passengers onboard. The
Battery Electric Multiple Unit (BEMU) began revenue service in
Baden-Württemberg and in Bavaria. The test operation ran
successfully until the beginning of May 2022.
In France, SNCF Voyageurs and Alstom presented
the first French hybrid train during a virtual event held between
the Alstom site in Reichshoffen and the Régions de
France headquarters in Paris in February 2022. This
electric-diesel-battery regional train is the first hybridisation
project of a Régiolis train in France. The first few months of
testing of the hybrid Régiolis trainset have been conclusive. The
recycling and reuse of braking energy are set to reduce the train's
energy consumption by up to 20%. Commercial service will start in
the second quarter of 2023 with services in the territories of each
of the four partner regions. A zero-emission mode will be tested on
urban routes.
Thanks to the consortiums with SNCF, and
together with other partners, Alstom has achieved first
operation in GoA211 under lateral signalling for freight
operations. The uniquely designed lineside signal detection system
developed by Alstom can “see” signals like traffic lights,
interpret them and send the information directly to the automatic
train control system. At the same time Alstom conducted the first
successful trial with an autonomous passenger train for mainline
operations in April in France. The field tests will begin in July
2022, with the ultimate objective of achieving full autonomy by
2023.Alstom has also tested the Obstacle Detection System in the
Netherlands proving obstacle detection up to 1,000 metres in
all-weather and visibility conditions. In summer 2022, the system
will be tested in combination with Automatic Train Operation12 to
pave the way for GoA413 in freight.
- Inclusive and Healthier
Mobility
Alstom’s Healthier MobilityTM programme provides
a range of solutions for operators to provide a clean, healthy
environment for its passengers and staff. Our solutions are
designed to enhance the experience of the user through various
means. Be it the provision of clean air, filtered for viruses
and bacteria using our patented PEPA-F™ filter, treated surfaces to
reduce the spread of viruses or measures to effectively manage the
flow of passengers to enhance their travel experience and provide a
more spacious journey, Alstom’s Healthier MobilityTM catalogue has
a range of options to address the needs of the operator. Our
antiviral PEPA-F™ filter catches and kills viruses, including the
coronavirus, and has been independently verified to be 99.8%
effective. The filter can be easily installed on any vehicle
type.
3. Efficiency
at scale, Powered by Digital
In the fiscal year 2021/22, Alstom’s adjusted
EBIT reached €767 million, equivalent to a 5.0% operational margin,
as compared to €645 million or 7.3% during same period last year.
Synergies plans are on track, with a €102 million adjusted EBIT
impact for the fiscal year 2021/22.
The operational margin percentage was negatively
impacted by the €2.6 billion sales traded at zero gross margin,
mostly related to certain legacy Bombardier Transportation
projects. Alstom invested significantly in these projects during
the fiscal year 2021/22, making strong progress on projects
stabilisation, therefore confirming the Group ambition to
progressively improve its backlog profitability. This stabilisation
was also reflected through a progressive ramp up of production,
allowing an increase of sales and associated margin in the second
semester.
Below adjusted EBIT, Alstom recorded
restructuring and rationalisation charges of €(138) million
consisting mainly of expenses related to a transformation plan in
Germany and Switzerland.
Impairment loss, acquisition and other costs
amounted to €(209) million, consisting mainly of costs related to
the integration of Bombardier Transportation for an amount of €(94)
million and exceptional impact from Aptis activities following
Alstom’s announced and planned discontinuance of activities.
Taking into consideration restructuring,
integration, acquisition costs and other non-operating items,
Alstom’s EBIT before amortisation of assets exclusively valued when
determining the purchase price allocation (“PPA”) stood at €275
million. This compares to €384 million in the same period last
fiscal year.
The share in net income from equity investments
amounted to €(334) million, impacted by the non-cash impairment
charge on Transmashholding (TMH) of €(441) million. The Currency
Translation Adjustment (CTA) recognised since the acquisition of
TMH Ltd for €(202) million remains in our equity accounts14 as at
March 2022.
Adjusted net profit, representing the Group’s
share of net profit from continued operations excluding PPA net of
tax, amounts to €(173) million for the fiscal year 2021/22 or €268
million before non-cash impairment charge on TMH. This compares to
an adjusted net profit of €301 million in the same period last
fiscal year.
4. One Alstom
team Agile,
Inclusive and
Responsible
In 2021/22, the Group confirmed its ESG 2025
targets enlarged to the whole new perimeter to deliver a strong
response to increased expectations on sustainability performance
from stakeholders. Its priorities remain: Enabling decarbonisation
of mobility; Caring for our people; Creating a positive impact on
society; and Acting as a responsible business partner.
Alstom has expanded its Sustainability strategy
and is committed to achieving Net Zero carbon in its value chain by
2050. It reflects the commitment of Alstom in the decarbonisation
of mobility. Alstom will not only reduce its own direct and
indirect emissions (scope 1 & 2) but also will work with
suppliers and customers (scope 3) to make its solutions Net Zero
through their entire life cycle15. Those new commitments are in
line with Paris Agreement goals and will be submitted for
validation to the independent Science Based Targets initiative
(SBTi) in 2022.
In addition, Alstom publishes for the first year
information about European Taxonomy16, with the three KPIs of
Sales, Capex and Opex reaching a best-in-class 99%17 eligibility to
EU taxonomy, 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 structure
The Group’s Free Cash Flow stands at €(992)
million for the fiscal year 2021/22 as compared to
€(703) million during the comparable period last year, with a
strong H2 2021/22 positive Free Cash Flow generation of €469
million. As expected, the cash generation was notably impacted by
an unfavourable €(1,383) million change in working capital compared
to €(1,001) million last year, owing to continued projects
stabilisation efforts related to some Bombardier Transportation
legacy projects, project working capital phasing and industrial
ramp-up.
The Group held €810 million of cash and cash
equivalent at the end of March 2022. In addition, Alstom benefits
from a strong liquidity with two Revolving Credit Facilities (RCF)
for a total of €4,250 million18 both fully undrawn at March 2022
closing, with no financial covenants.
With these RCF, the Group benefits from €5,060
million of liquidity available, backing up the NEU CP19 program
which has been increased to €2,500 million in July 2021 and of
which €250 million is outstanding as of 31 March 2022.
At 31 March 2022, the Group’s net debt position
stood at €2,085 million, including bonds with supportive maturities
and cost profile and no financial covenants. Alstom benefits from
solid €5,060 million liquidity position and equity amounting to
€9,024 million at 31 March 2022.
***
A successful first year of integration
for Bombardier Transportation
As of May 2022, the integration of Bombardier
Transportation is fully on track. Our employee engagement survey
performed 10 months after closing shows that 80% of employees
are proud to work for Alstom. In addition, 86%
of our surveyed employees are aware of the new
Alstom values in the frame of our cultural integration
programme.
The integration activities have been delivered
in line with the integration roadmap and timeline:
- Alstom
organisation in place and moving as One team, supported by new
Alstom values and long-term culture and change roadmap
- 80% of key
processes converged and encompassing all functions and product
lines, including project and tendering processes, quality processes
and supply chain processes. Convergence activities will continue to
be deployed to reach one operating model with best-in-class
processes and product portfolio in 3 years
- Start of
deployment of Alstom IT Core model to converge solutions and tools,
with a strong focus on rolling out Alstom Digital suite
- 100% product
and components convergence validated, with clear strategy and
product roadmap to meet customer needs
As announced, 2021/22 was a year dedicated to
the stabilisation of challenging Bombardier Transportation legacy
projects based on Alstom’s proven expertise and execution track
record, with a positive impact on operational KPIs and customer
satisfaction with Net Promoter Score20 at 8.1 as of March
2022.
Integration is planned to be completed within
three years. Synergies are confirmed and expected to deliver €400
million in 2024/25 and €475-500 million annually from 2025/26
onwards.
***
Proposed dividend
At the Annual General Meeting on July 12, 2022,
the Board of Directors will propose the distribution of a dividend
of €0.25 per share. This level corresponds to a payout ratio of 35%
of adjusted net profit before TMH non-cash impairment charge21.
Outlook for fiscal year
2022/23
The current economic and political context creates uncertainties
on business activities, and Alstom is no exception. In particular,
inflation is expected to weigh to some extent on FY 2022/23
profitability, and the electronic components shortages may create
tension on the deliveries. The Group has therefore put in place
strong risk mitigation and cost-out actions to navigate these
uncertainties.
As the basis for its 2022/23 outlook, the Group
assumes neither further disruptions to the world economy (including
further inflation or aggravated geopolitical crisis), nor
significant supply-chain shortages, that would materially impact
the Group’s ability to deliver products and services.
- Sales growth supported by solid
order backlog and Book to bill ratio above 1
- Progressive aEBIT margin increase
vs FY 2021/22 through healthy order intake and sound backlog
execution
- Free Cash Flow generation22
***
Mid-term financial
trajectory and objectives
The outlook given in connection
with Alstom in Motion 2025 is
confirmed, and synergies targets
raised
- Market share: By 2024/25, Alstom is aiming to grow its market
share by 5 percentage points23 by leveraging its unique
strategic positioning, supported by its enlarged group momentum and
its competitive offering.
- 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 €81 billion
backlog as of 31 March 2022, securing sales of ca. €35 to 37
billion 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 in 2024/25 and €475 - 500 million
annually from 2025/26 onwards.
- Free Cash Flow: from 2024/25
onwards, the conversion from adjusted net profit24 to Free
Cash Flow should be over 80%25 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
ratio26 of between 25% and 35%.27
Investor DayAlstom will host
virtually an Investor Day on 11 May 2022 at 15.30 (CET). Connection
details are available on the Alstom website.
***
The management report and the consolidated
financial statements, as approved by the Board of Directors, in its
meeting held on 10 May 2022, 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.
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About Alstom |
Leading
societies to a low carbon future, Alstom develops and markets
mobility solutions that provide sustainable foundations for the
future of transportation. 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. 150,000 vehicles
in commercial service worldwide attest to the company’s proven
expertise in project management, innovation, design and technology.
In 2021, the company was included in the Dow Jones Sustainability
Indices, World and Europe, for the 11th consecutive time.
Headquartered in France and present in 70 countries, Alstom employs
more than 74,000 people. The Group posted revenues of €15.5 billion
for the fiscal year ending on 31 March 2022. Log onto
www.alstom.com for more information |
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Contacts |
Press:Coralie COLLET – Tel.: +33 (0) 7 63 63 09
62 coralie.collet@alstomGroup.com Samuel MILLER - Tel.:
+33 (0) 6 65 47 40 14 Samuel.miller@alstomGroup.com
Investor relations:Martin VAUJOUR - Tel.: +33 (0)
6 88 40 17 57martin.vaujour@alstomGroup.com Claire
LEPELLETIER – Tel.: +33 (0) 6 76 64 33
06claire.lepelletier@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 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 non-audited, Group vision including
Alstom legacy fiscal year 2020/21 and legacy Bombardier
Transportation contribution for 9 months of their fiscal year 2020
(April to December 2020) and January 2021 and is in line with
Alstom accounting methods. The variations calculated using these
figures exclude any scope and Forex adjustments.
APPENDIX 1A – GEOGRAPHIC
BREAKDOWN
Actual figures |
FY |
% |
FY |
% |
(in € million) |
2020/21 |
Contrib. |
2021/22 |
Contrib. |
Europe |
6,027 |
66% |
12,745 |
66% |
Americas |
1,050 |
11% |
3,970 |
21% |
Asia / Pacific |
1,059 |
12% |
2,289 |
12% |
Africa / Middle East / Central Asia |
964 |
11% |
258 |
1% |
Orders by destination |
9,100 |
100% |
19,262 |
100% |
Actual figures |
FY |
% |
FY |
% |
(in € million) |
2020/21 |
Contrib. |
2021/22 |
Contrib. |
Europe |
40,804 |
55% |
44,202 |
55% |
Americas |
10,491 |
14% |
13,116 |
16% |
Asia / Pacific |
11,209 |
15% |
11,622 |
14% |
Africa / Middle East / Central Asia |
12,033 |
16% |
12,073 |
15% |
Backlog by destination |
74,537 |
100% |
81,013 |
100% |
Actual figures |
FY |
% |
FY |
% |
(in € million) |
2020/21 |
Contrib. |
2021/22 |
Contrib. |
Europe |
5,316 |
61% |
9,584 |
62% |
Americas |
1,351 |
15% |
2,563 |
17% |
Asia / Pacific |
1,093 |
12% |
2,172 |
14% |
Africa / Middle East / Central Asia |
1,025 |
12% |
1,152 |
7% |
Sales by destination |
8,785 |
100% |
15,471 |
100% |
APPENDIX 1B – PRODUCT BREAKDOWN
Actual figures |
FY |
% |
FY |
% |
(in € million) |
2020/21 |
Contrib. |
2021/22 |
Contrib. |
Rolling stock |
4,484 |
49% |
9,801 |
51% |
Services |
2,045 |
23% |
4,168 |
21% |
Systems |
930 |
10% |
2,654 |
14% |
Signalling |
1,641 |
18% |
2,639 |
14% |
Orders by product line |
9,100 |
100% |
19,262 |
100% |
Actual figures |
FY |
% |
FY |
% |
(in € million) |
2020/21 |
Contrib. |
2021/22 |
Contrib. |
Rolling stock |
39,052 |
53% |
40,832 |
50% |
Services |
24,737 |
33% |
26,789 |
33% |
Systems |
4,692 |
6% |
6,282 |
8% |
Signalling |
6,056 |
8% |
7,110 |
9% |
Backlog by product line |
74,537 |
100% |
81,013 |
100% |
Actual figures |
FY |
% |
FY |
% |
(in € million) |
2020/21 |
Contrib. |
2021/22 |
Contrib. |
Rolling stock |
4,530 |
51% |
8,647 |
56% |
Services |
1,745 |
20% |
3,406 |
22% |
Systems |
947 |
11% |
1,155 |
7% |
Signalling |
1,563 |
18% |
2,263 |
15% |
Sales by product line |
8,785 |
100% |
15,471 |
100% |
APPENDIX 2 – INCOME STATEMENT
Actual figures |
FY 2020/21 |
FY 2021/22 |
(in € million) |
|
|
Sales |
8,785 |
15,471 |
Adjusted Gross Margin before
PPA* |
1,536 |
2,148 |
Adjusted Earnings Before Interest and Taxes
(aEBIT)* |
645 |
767 |
Restructuring and rationalisation costs |
(14) |
(138) |
Integration, acquisition and other costs |
(196) |
(209) |
Reversal of net interest in equity investees pick-up |
(50) |
(145) |
EARNING BEFORE INTEREST AND TAXES
(EBIT) BEFORE
PPA* |
384 |
275 |
Financial result |
(68) |
(25) |
Tax result |
(63) |
(68) |
Share in net income of equity investees |
83 |
107 |
Minority interests from continued operations |
(12) |
(21) |
Adjusted net profit before TMH
impairment charge |
301 |
268 |
TMH impairment charge |
- |
(441) |
Adjusted Net profit |
301 |
(173) |
PPA net of tax |
(61) |
(403) |
Net profit – Continued operations,
Group share |
240 |
(576) |
Net profit (loss) from discontinued operations |
7 |
(5) |
Net profit (Group
share) |
247 |
(581) |
* see definition below
APPENDIX 3 – FREE CASH FLOW
Actual figures(in € million) |
FY 2020/21 |
FY 2021/22 |
EBIT before PPA |
384 |
275 |
Depreciation and amortisation1 |
307 |
445 |
Restructuring variation |
(16) |
100 |
Capital expenditure |
(158) |
(304) |
R&D capitalisation |
(106) |
(125) |
Change in working capital2 |
(1,001) |
(1,383) |
Financial cash-out |
(79) |
9 |
Tax cash-out |
(94) |
(141) |
Other |
60 |
131 |
Free Cash Flow |
(703) |
(992) |
1 Before PPA2 Change in working capital for
€1,383 million corresponds to the €1,349 million changes in working
capital resulting from operating activities disclosed in the
condensed consolidated financial statements from which the €34
million variations of restructuring provisions and of corporate tax
and other tax have been excluded.
APPENDIX 4 - 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,
Alstom Sifang (Qingdao) Transportation Ltd. (former Bombardier
Sifang), Bombardier NUG Propulsion System Co. Ltd. and Changchun
Changke Alstom Railway Vehicles Company Ltd (former Changchun
Bombardier).aEBIT corresponds to Earning Before Interests and Tax
adjusted for the following elements:
- net
restructuring expenses (including rationalization costs)
- tangibles and
intangibles impairement
- 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.
Adjusted net profitFollowing the Bombardier
Transportation, 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.
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, 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, 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.
1 Non - GAAP. See definition in the appendix2 Net profit from
continued operations (Group share) excluding the impact of
amortization of assets exclusively valued when determining the PPA
in the context of business combination, net of the corresponding
tax effect.3 With the option to receive payment in cash or in new
shares4 Geographic and product breakdowns of reported orders,
backlog and sales are provided in Appendix 15 Any reference in this
document to variations «Pro forma like-for-like», on orders and
sales, correspond to a, non-audited, Group vision including Alstom
legacy fiscal year 2020/21 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 figures exclude any
scope and Forex adjustments.6 Non - GAAP. See definition in the
appendix7 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, Alstom Sifang (Qingdao) Transportation
Ltd. (former Bombardier Sifang), Bombardier NUG Propulsion System
Co. Ltd. and Changchun Changke Alstom Railway Vehicles Company Ltd
(former Changchun Bombardier).8 Net profit from continued
operations (Group share) excluding the impact of amortization of
assets exclusively valued when determining the PPA in the context
of business combination, net of the corresponding tax effect.9
Communication-Based Train Control10 Excluding €(74) million of
amortisation expenses of the purchase price allocation of
Bombardier Transportation.11 Grade of Automation 212 ATO13 Grade of
Automation 414 In accordance with IFRS, CTA can only be recognized
in the P&L at the time of a sale15 Reduction of GHG emissions
(Scope 1 et 2) from Alstom’s sites by 40% by 2030 compared to
FY2021/22. Reduction of GHG emissions (Scope 3) from the use of
sold rolling stock products by 35% per passenger-km and per
tonne-km by 2030 compared to FY2021/22.16 The EU Taxonomy
regulation (Regulation (EU) 2020/852) was introduced to propose a
framework to facilitate sustainable investment as part of EU’s
efforts to implement the European Green Deal17 Taxonomy-eligibility
should not be used as an indication of Taxonomy-alignment. The
Group shall carry out a detailed and extensive analysis of
Taxonomy-alignment using the technical environmental and social
specific criteria laid out in the regulation and report it next
fiscal year as requested under the EU Taxonomy legislation.18
•€1,750 million Revolving Credit Facility maturing in January 25,
and two 1-year extension options at the lenders’ discretion. This
facility is undrawn at March closing. And €2,500 million Revolving
Credit Facility maturing in January 27, and two 1-year extension
options at the lenders’ discretion. This facility is also undrawn
at March closing.19 Negotiable European Commercial Paper20 NPS21
With the option to receive payment in cash or in new shares,
details of which will be provided in a future press release.22
Subject to short term volatility23 In comparison to Alstom’s market
share in 2020/2124 Adjusted net profit25 Subject to short term
volatility26 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.27 Of adjusted net profit
- PR FY 2021-22 Results - V.ENG
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