Annual Results Fiscal Year 2010/11 4 May 2011
Agenda 1. Key figures of the year 2. A new business phase 3. Operational review by Sector 4. Financial results 5. Outlook P 2
Key figures (1/2) Operational performance in line with guidance March 2010 March 2011 Variation Excl. Grid Incl. Grid* Excl. Grid Incl. Grid Sales 19,650 17,270 20,923-12% Income from operations 1,779 1,352 1,570-24% Operating margin 9.1% 7.8% 7.5% +6% -12% Net income 1,217 462** -62% Dividend per share 1.24 0.62 *** -50% P 3 * Consolidated for 10 months (from June 2010 to March 2011) ** After an after tax negative impact of (406) million due to restructuring charges and (158) million for Grid purchase price allocation and acquisition costs *** To be proposed to the next AGM
Key figures (2/2) whilst orders picked up in the second part of the year March 2010 March 2011 Variation Excl. Grid Incl. Grid* Excl. Grid Incl. Grid Orders received 14,919 15,620 19,054 +5% +28% Backlog 42,561 41,685 46,816-2% +10% Free cash flow 185 (516) * Consolidated for 10 months (from June 2010 to March 2011) Orders received 7, 038 12,016 Free cash flow 447 H1 2010/11 H2 2010/11 (963) P 4 H1 2010/11 H2 2010/11
Agenda 1. Key figures of the year 2. A new business phase 3. Operational review by Sector 4. Financial results 5. Outlook P 5
Evolution of the global context After a strong crisis in 2009, growth resumed in 2010 2010 GDP growth by region Russia Strong rebound of demand in emerging countries USA 2.8% Brasil Europe 1.7% India 8.5% 3.6% China 10.3% Slow recovery in developed economies 7.6% Source: IHS Global Insight, real GDP Growth P 6
Impact on our markets All markets turning positive, supported by growth in emerging countries Power New equipment market Transport Grid In GW 300 In bn Railway market Transmission market In bn 150 150 45 0 2006 2007 2008 2009. 2010-2014 120 40 Service market 35 In bn 0 2007/2009 2015 2008 2009 2010 2011 2012 2013 2014 Source: Alstom 0 2006 2007 2008 2009. 2010-2014 P 7 Source: Alstom Source: UNIFE 2010
Recent development Alstom: a «late-cycle» company entering a new business phase 2008/09 High demand 2009/10+H1 2010/11 Drop of demand H2 2010/11 New business phase 15.4 1,72 12.1 2.0 9.2 10.1 0,94 7.1 0,74 7.8 0,78 7.0 1.4 0,67 1,15 5.6 H1 H2 H1 H2 H1 H2 2008/09 2009/10 2010/11 P 8 Orders received Grid Orders above 100 million X Book to Bill
Strategy Seizing new opportunities Main characteristics of the environment Goals in the new business phase Strong commercial activity back in emerging markets Developed economies remaining weak 1. ADAPT GEOGRAPHICAL PRESENCE Evolution of product demand Broadening competition from Asian players 2. KEEP BEST-IN-CLASS OFFERING P 9
1. Adapt geographical presence Orders recovery mainly driven by emerging countries Orders received by region 2009/10 2010/11 65% 40% 10% 25% 25% 35% 35% Developed Countries BRICs Other Emerging Countries Share of emerging countries in orders received 60% P 10
1. Adapt geographical presence Strengthening presence in BRICs New partnerships in Russia INTER RAOUES JV with Atomenergomash JV with Transmasholding JV with Bardella Footprint New partnership in Kazakhstan Rostechnologies New partnerships in China MOR Global partnership with SEC in boilers* * April 2011 5 JV Transport + partnerships for EMUs and locomotives 3 JV Power + partnership in nuclear 9 JV Grid P 11 Grid Power Transport Existing partnerships Partnerships signed in 2010/11 JV with Bharat Forge Cooperation agreement with BHEL JV with NTPC in Service Grid n 1 in India New partnership in India under discussion &
1. Adapt geographical presence 50/50 JV with Shanghai Electric to create the n 1 boiler company worldwide Boiler Island An integrated model based on in-sourced key components A long-lasting presence in coal plants A top level of technology A strong commercial positioning outside China Boiler A standardised component strategy A high volume of activity A very competitive cost base A very strong position in China The alliance of complementary and strong assets in boilers P 12
1. Adapt geographical presence Downsizing in Europe and North America Today Power Thermal Transport Target 13,000-20% 10,500 18,000-8% 16,600 Today 2,600-20% Target 2,100 Permanent positions WESTERN EUROPE NAM TRANSPORT Adaptation to load in three countries: Italy, Germany and Spain POWER Adaptation to market evolution in Power Thermal (Europe and North America) P 13
2. Keep best-in-class offering Focusing R&D expenses on high growth segments POWER TRANSPORT GRID GAS Turbine upgrades URBAN Good enough platforms SUPER GRID Ultra High Voltage and High Voltage Direct Current COAL WIND OTHER RENEW. Carbone capture and storage programs Entry in off shore market Tidal, thermal solar etc. VHS SIG Very high speed developments Train Control Systems SMART GRID Integration of decentralised renewable, several demo projects worldwide HYDRO & NUKE P 14 On-going programs
2. Keep best-in-class offering Strong assets to differentiate from competition Strong service activity Over 35% of Power s sales 20% of Transport s sales Coal Boiler Denitrification system Steam turbine and Turbogenerator Modest in Grid Systems/turnkey capabilities Combustion system Dust collector Quality and experience Desulphurisation system P 15
Agenda 1. Key figures of the year 2. A new business phase 3. Operational review by Sector 4. Financial results 5. Outlook P 16
Power Orders received Strong rebound of orders in H2 Orders by business Renewables Thermal Services Thermal Systems & Products Main orders received by destination in 2010/11 31% Book to bill 3,631 750 2,008 873 0.61 6,280 1,160 3,184 1,936 H1 2010/11 H2 2010/11 1.11 15% Hydro and wind 12% THERMAL SYSTEMS & PRODUCTS Gas O&M Wind Nuclear retrofit Gas turbine Coal retrofit Hydro 10% Gas plant repowering ECS THERMAL SERVICES Gas turbines + O&M Boilers Nuclear equipment Nuclear equipment Gas plants + O&M Gas O&M RENEWABLES 32% P 17
Power Orders by fuel and region for new equipment Non-CO2 technologies and Asia driving the rebound 2009/10 2010/11 H1 H2 H2 H1 Nuclear Hydro Wind Gas Steam LAM MEA Asia NAM Europe P 18
Power Service orders Service orders all time high in 2010/11 Evolution of Power orders Thermal Systems & Products and Renewables Thermal Services Breakdown of Thermal Services orders Operation & Maintenance contracts Retrofit Regular service 1,564 1,620 1,203 5,192 805 1 Bn 4,018 2009/10 2010/11 Q1 Q2 Q3 Q4 2010/11 P 19
Power Key figures March 2010 March 2011 Variation Orders 9,435 9,911 +5% Backlog 23,318 22,169-5% Sales 13,901 11,666-16% Book-to-bill ratio 0.68 0.85 Income from operations 1,468 1,052-28% Operating margin 10.6% 9.0% P 20
Power Main events: technology Focus on Renewables and Services WIND Exclusive agreement with EDF Energies Nouvelles for offshore development in France THERMAL SOLAR Investment in Brightsource Energy SERVICE / RETROFIT Strengthening protfolio TIDAL Centre set up in Nantes (France) Tidal turbine prototype to be tested P 21
Power Main events: capex Investments in BRICs Capex programmes Capex HYDRO WIND STEAM 314 222 Extension of hydro power factory in China Construction of a wind assembly facility in Brazil Erection of a steam turbines plant in India, together with Bharat Forge 2009/10 2010/11 P 22
Transport Orders received Commercial successes across regions and technologies Evolution of orders Main orders received by destination in 2010/11 5,484 Share of emerging countries 5,709 13% Renovation Signaling Metros Metros Regional trains and maintenance Regional trains and Tramways Maintenance Very high speed trains 8% 37% Tramways Locomotives 20% Metros and signaling Metros 8% Metros 14% 50% 20% 2009/10 2010/11 MAIN LINES SERVICE & SIGNALING MASS TRANSIT P 23
Transport Key figures March 2010 March 2011 Variation Orders 5,484 5,709 +4% Backlog 19,243 19,516 +1% Sales 5,749 5,604-3% Book-to-bill ratio 0.95 1.02 Income from operations 414 398-4% Operating margin 7.2% 7.1% P 24
Transport Main events: technology Push forward advanced technologies VHS REGIONAL MASS TRANSIT AGV run-up in Italy Speedelia platform unveiled Allegro trains in operation on the St Petersburg Helsinki line New Coradia Polyvalent in test Partnership with RATP to develop new automatic metros (Metrolab) P 25
Transport Main events: capex Investments focused on key products Capex programmes Capex SERVICE ROLLING STOCK 104 110 Maintenance centers Modernisation of European sites New rolling stock plant in Chennai 2009/10 2010/11 P 26
Grid Orders received A large volume of orders sustained throughout the year Orders Orders received by country of destination in 2010/11 3,434 9% 30% 978 1,023 1,011 1 Bn 10% 20% 31% 422 Q1* *1 month Q2 Q3 Q4 EMS contracts in Europe and Middle East Offshore substation in Europe GIS in Russia and Brazil P 27
Grid Key figures March 2011 Orders 3,434 Backlog 5,131 Sales 3,653 Book-to-bill ratio 0.94 Income from operations 218 Operating margin 6.0% P 28
Grid Main events: technology Acquisitions and partnerships focused on smarter grid management Acquisition of Uisol, a supplier of software platform for demand response management Creation with Bouygues of Embix, JV to develop energy management services for eco-districts Acquisition of Psymetrix, a specialist in Smart Grid applications Partnership with Microsoft for the Smart Management of Renewable Energy Sources P 29
Grid Main events: capex Expansion of industrial footprint Capex programmes Capex UHV POWER TRANSFORMERS GAS INSULATED SWITCHGEARS 125 Ultra High Voltage Technology Centre Shanghai, China Power transformer facilities upgrades GIS facilities extension 2010/11 P 30
Agenda 1. Key figures of the year 2. A new business phase 3. Operational review by Sector 4. Financial results 5. Outlook P 31
Income statement Grid contribution Sales Income from operations and operating margin 19,650 20,923 1,779 218 1,570 17,270 173 (600) 9.1% 7.5% 2009/10 2010/11 2009/10 * Including under-recovery Volume effects* Margin effects Scope 2010/11 P 32
Income statement March 2010 March 2011 Variation Income from operations 1,779 1,570-12% Grid PPA&acquisition costs NA (203) Restructuring costs (96) (520) Capital gains&other (54) (83) EBIT 1,629 764-53% Financial result (42) (136) Tax result (385) (141) Non control. interest&other 15 (25) Net result 1,217 462-62% P 33
Free cash flow March 2010 March 2011 Income from operations 1,779 1,570 Restructuring cash out (112) (106) Depreciation 278 353 Capital expenditure (470) (504) R&D cap. & amort. of acq. Techno. (56) (121) Pensions (63) (120) Change in working capital (953) (1,157) Tax cash out (191) (248) Financial cash out (18) (121) Other (9) (62) Free cash flow 185 (516) P 34
Net cash/net debt evolution 2,222 (516) (364) (2,558) (1,286) (70) Net cash 31 Mar 10 Free cash flow Dividends Acquisitions Other Net debt 31 Mar 11 P 35
Funding Liquidity position Outstanding financial bonds Gross Cash Undrawn Credit line 5,355 750 750 750 3,271 3,948 3,718 500 500 Mar 08 Mar 09 Mar 10 Mar 11 Maturity date Sept 2014 Oct 2015 Feb 2017 Oct 2018 Mar 2020 Coupon 4% 2.875% 4.125% 3.625% 4.5% P 36
Equity evolution 462 (364) (90) 43 4,101 4,152 Equity 31 Mar 10 Net income Dividends Pensions variation Other Equity 31 Mar 11 P 37
Pensions Fair value of assets Defined benefit obligations 3,334 204 190 (47) 82 3,763 3,763 4,251 382 74 382 (258) 61 4,892 3,334 Opening 1 Apr 10 Grid opening Return on assets Net cash out FX & other Closing 31 Mar 11 Opening 1 Apr 10 Grid opening Service costs Discounting & actuarial losses Net cash out FX & other Closing 31 Mar 11 Underfunding status Opening 1 Apr 10 Closing 31 Mar 11 P 38 (917) (178) Grid (1,129)
Dividend Evolution of dividend 1.12 1.24 In per share 0.80 0.40 0.62** Annual General Meeting: 28 June 2011 Ex-date: 30 June 2011 Record date: 4 July 2011 Payment date: 5 July 2011 2005/06 2006/07* 2007/08* 2008/09 2009/10 2010/11 Pay-out ratio 0% 25% 27% 29% 30% 40% P 39 (*) Adjusted from the split (**) To be proposed to the next AGM
Agenda 1. Key figures of the year 2. A new business phase 3. Operational review by Sector 4. Financial results 5. Outlook P 40
Strategic and operational priorities 1. ADAPT GEOGRAPHICAL PRESENCE Expand our positions in emerging markets through partnerships and capex Implement successfully the restructuring programmes in Western Europe and NAM 2. KEEP BEST-IN-CLASS OFFERING Continue R&D programs in key areas Boost and protect our leading positions 3. MAINTAIN FOCUS ON PERFORMANCE Excellence in project execution Actions on costs P 41
Outlook Outlook for 2011/12 On-going recovery of orders Operating margin guidance confirmed: between 7% and 8% P 42
Contacts & agenda Emmanuelle Châtelain - VP Investor Relations +33 (0)1 41 49 37 38 Juliette Langlais - Deputy VP Investor Relations +33 (0)1 41 49 21 36 Emmanuelle Douëzy - Individual Shareholders +33 (0)1 41 49 37 59 Dymphna Hawksley, Christel Cillard - Logistics +33 (0)1 41 49 37 22/35 24 28/06/2011 Annual General Meeting 20/07/2011 Orders and sales for the first quarter of FY2011/12 P 43
Disclaimer This presentation contains forward-looking statements which are based on current plans and forecasts of Alstom s management. Such forward-looking statements are by their nature subject to a number of important risk and uncertainty factors (such as those described in the documents filed by Alstom with the French AMF) that could cause actual results to differ from the plans, objectives and expectations expressed in such 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. P 44
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