ALSTOM TRANSPORT Philippe MELLIER TRANSPORT Railways Seminar December 16th 2009
Agenda : 2 sections Railways Market Alstom Transport Today p. 2
Agenda Railways Market Alstom Transport Today p. 3
Railways market is growing 3% p.a. Railways market per activity - average yearly sales values - 86 b +3% p.a. 110 b 13 Future market Variation over 9 years Signalling Infrastructure 10 17 22 37 Non Rolling Stock 72 b +18 b Services 27 Rolling stock 31 38 Rolling Stock 38 b +7 b 2005-07 2014-16 p. 4
Rolling Stock market trends differ from an area to another 10,1 10,6 8,4 8,3 9,3 6,6 North America CIS incl. Russia 1,8 2,6 3,4 2,6 2,7 3,3 2008 10 2011 13 2014 16 2008 10 2011 13 2014 16 2008 10 2011 13 2014 16 1,3 Latin America 1,0 0,7 2008 10 2011 13 2014 16 Europe 1,0 India 1,4 1,6 1,3 China Asia Pacific (w/o India & China) 1,6 1,8 2008 10 2011 13 2014 16 2008 10 2011 13 2014 16 2008 10 2011 13 2014 16 HST/VHST Regional Locos Metro LRV p. 5
Large opportunities in all continents North America Metros in Mexico, Canada and USA High speed lines in the USA South America Very high speed line in Brazil Mass transit projects in Argentina, Chile, Venezuela and Brazil Europe Very high speed and regional trains in France and Germany Mass transit projects in the UK and in the Netherlands Large signalling contracts in the UK, Netherlands and in Denmark High speed in Italy MEA Very high speed lines in Saudi Arabia and in Morocco Mass transit projects in the Arabic peninsula and in Northern Africa Russia Double-deck passenger cars Diesel locomotives Asia Very high speed in China Locomotives, coaches and infrastructure in India Metros in China, India and Australia p. 6
Customers overview URBAN Historic metropoles NY, London, Paris Imposed designs Huge contracts Urban & Suburban networks Growing metropoles Shanghai, Mexico City, Sao Paulo Open to standard products Medium to small contracts Regional centres Istanbul, Rotterdam, Brussels Flexible solution from downtown to suburbs Transport development with urban renewal Open to outsource operations (new customers) MAINLINES Infrastructure owners RFF, DB Netz, RFI Invest to boost interoperability & grow capacity Optimised use-based fees charged to operators Passenger operators Railteam International Group for VHST to compete with airlines Regional Decentralisation of Rolling Stock investment decisions Outsource operations ( CONNEX, ARRIVA ) Freight operators Europe : Market growth triggered by increased competition and investment North America : Investment for efficiency, capacity & safety p. 7
Customers are moving towards integrated mobility management Mobility Provider DB EXAMPLE Door-to-door information Online-Ticket Mobility BahnCard 100 Parking at station Connexion to public transportation Extension of portal to extended mobility offering eticketing and payment system Rail Operator Daniel Kurth Station-to-station Yesterday DB Jan 09 Door-to-door Integrated Mobility Solution Futur p. 8
Transport market drivers Market liberalisation, cross-boarder traffic Our key customers becoming integrated mobility providers Growth of urban populations, mainly in emerging nations Increasing mobility & infrastructure saturation Rising need for inter-modality Transportation habits impacted by regulation (eg London congestion tax) Cars losing ground in Europe (fewer driver licences) Rising concerns for the environment Stimulus packages p. 9
Crisis impact on Railways Passenger Traffic ~ +0.99 x GDP growth* Freight Traffic ~ +1.03 x GDP growth* Infrastructure Spending Evolution of Railways activities pass.km, ton.km, invested in Infra P F I Likely impacts Approximatively flat No improvement until unemployment drops -15% to 35% in 09Q1 Then bottoming, possibly starting in S1 Stimulus plans with delayed impact but likely «back-effect» 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 (*) CAGR in EU27 over 2000-2007 p. 10
Railways environment is changing Market Globally, the market is more open & more fragmented in 2009 than in 2003 Historic clients invite more & more competitors in tenders Several markets, traditionally closed or non-railways, are opening the door (Algeria, Venezuela, US, Russia ) Change in context Concurrence a fiercer concurrence Traditional small competitors growing progressively (CAF, Stadler, Rotem ) Boom of Chinese competitors CNR+CSR = similar size to Big3 Products The high-tech race is losing ground Demand is moving towards «good enough at best price» p. 11
Chinese manufacturers & TMH are the fastest-growing OEMs ROLLING STOCK SALES CNR CSR TMH TMH + 2 Chinese Siemens Alstom TOP 3 Bombardier 2001 2005 2008 p. 12
TOP3 Orders Intake m Bombardier Alstom Siemens 10 000 9938 9349 8 000 7812 8150 8115 6 000 5 600 6154 6412 5500 5914 6 200 7500 6852 5 700 4 000 5585 4905 5 200 4 600 4 300 3530 4 600 5200 5388 4 800 2 000 0 01/02 02/03 03/04 04/05 05/06 06/07 07/08 08/09 p. 13
TOP3 Sales m 7 000 6 276 6 077 6 097 6 700 6 000 5 000 4 000 5 050 4 400 4 000 4 300 5 000 4 900 4 700 5 100 4 300 5 428 5 100 4 200 5 388 4 500 5 218 5 626 5 500 4 452 5 700 4 264 3 000 2 000 1 000 Bombardier Alstom Siemens 0 01/02 02/03 03/04 04/05 05/06 06/07 07/08 08/09 p. 14
TOP3 EBIT Margin 10.0% EBIT margin evolution Bombardier Alstom Siemens 8.0% 6.0% 4.0% 2.0% 0.0% -2.0% 01/02 02/03 03/04 04/05 05/06 06/07 07/08 08/09 year -4.0% -6.0% - -8.0% -10.0% -12.0% p. 15
Agenda Railways Market Alstom Transport Today p. 16
Agenda Railways Market Alstom Transport Today What & where we sell How we are organised Our achievements & results Our strategy p. 17
Agenda Railways Market Alstom Transport Today What & where we sell How we are organised Our achievements & results Our strategy p. 18
Transport Sales per activity Infrastructure 5% Signalling Rolling stock & Components Services Total sales FY08/09 5.7 billion p. 19
Transport : 5.7 b Sales in FY08/09 IBAM 17% Asia-Pacific 7% North America 12% 189 customers Northern Europe 22% South Europe 41% Total sales 5.7 billion p. 20
Rolling Stock : an extensive range of products, from tram to VHST Long distance Locomotives High speed Very high speed Tram-train Interurban Regional Tram Metro Short distance Speed p. 21
Rolling Stock : Strong position in Urban Lyon Barcelona Dublin Citadis selected by 32 towns Over 1,250 trams ordered More than 1 billion passengers carried Paris Extensive knowledge and experience of steel wheel and rubber tyre metros p. 22
Rolling Stock : VHS French Exception to Worldwide Leadership 1981 South East TGV 109 30 years of experience 660 TGV & AGV sold AGV (IT) 25 2011 TGV Réseau 80 1990/3 60% ww market share** 2007 TGV East 19 equiv. (coach TGV Atlantic 105 AVE (ES) 18 1994 2004 KTX (Korea) 46 Eurostar 31 1994 1996 TGV Thalys 27 1996 TGV Duplex 131 (+ 84 to be delivered) (*) worldwide installed fleet > 300 km/h p. 23
Components Developing components based on market needs. Reliable, competitive and cost attractive For internal integration or external customer Standard components catalogue aims to cover 80% of market requirements p. 24
Train Life Service (TLS) 3 after-market activities Maintenance Transit -Freight -Equipment Track Renovation Transit Freight Equipment Track WCML Pendolinos Maintenance in UK (Virgin) Spare Parts & Components Repair All makes Covering Alstom equipments as well as non-alstom equipments p. 25
Transport Information Solutions (TIS) Track Products Interlocking (IXL) Signals Level Crossings Point Machines Manage Priority Train detection Space trains Avoid collision IT for Rail Non Safety Systems Develop, install, configure, integrate a wide range of products & systems Train Protection ERTMS, CBTC, Legacy Manage Speed Assist driver Eco Driving Manage Traffic in Control Centers Inform & Secure Passengers (board & station) Enforce lateral signal p. 26
Transport Global Solutions (TGS) C I V I L W O R K S TURNKEY PROJECT OPERATION MANAGEMENT DESIGN CONSTRUCT - MAINTAIN - System engineering - Interfaces coordination - Construction methods -Testing and commissioning Trackworks Electrification Electromechanical Signalling Workshop Rolling Stock ( turnkey ) O P E R A T O R p. 27
Agenda Railways Market Alstom Transport Today What & where we sell How we are organised Our achievements & results Our strategy p. 28
Around 27 000 employees in more than 60 countries North Europe 21% North America 6% South Europe 49% Asia-Pacific 5% IBAM 19% p. 29
Current footprint RS & Components : 1/2 (Europe) FRANCE La Rochelle Belfort Valenciennes Reichshoffen Charleroi Salzgitter Katowice JV Component Unit Le Creusot Ornans Tarbes Santa Perpètua Savigliano Sesto San Giovanni RS Unit p. 30
Current footprint RS & Components : 2/2 (rest of the world) Shanghai SATCO SATEE Hornell Xi ian Qingdao JV Component Unit RS Unit Lapa Coimbatore p. 31
Agenda Railways Market Alstom Transport Today What & where we sell How we are organised Our achievements & results Our strategy p. 32
Recent events High speed Very high speed First 25 AGVs ordered in Italy, plus a maintenance contract Contract for Pendolinos in the UK, plus a maintenance contract Metros Metros in Chile, China and USA Contract for 60 double-decker trains (+70 options) in France* p. 33
Recent events Tramways New orders for CITADIS in Oran and Constantine (Algeria), in Dubai (United Arab Emirates) and in Rabat (Morocco) Regional trains Contracts for CORADIA in Germany and Sweden, for X Trapolis in Australia Coradia Polyvalent for SNCF / French regions Systems-Infrastructure-Signalling Automated train control system for the Sao Paulo metro Infrastructure and signalling for the Mexico City metro Track works for the Singapore metro p. 34
History of Transport Results 01/02 02/03 03/04 04/05 05/06 06/07 07/08 08/09 Sales 4 416 5 078 4 865 5 100 5 128 5 288 5 512 5 685 Orders 6 157 6 412 4 711 5 491 5 184 5 388 7 468 8 115 Income fr. Oper. n/a n/a 64 218 324 349 397 408 Operating Margin n/a n/a 1,3% 4,3% 6,3% 6,6% 7,2% 7,2% Backlog 14 507 14 749 14 322 14 489 14 141 15 242 17 283 19 506 Headcount 32 529 32 529 30 373 25 090 26 141 25 210 25 323 27 008 p. 35
Agenda Railways Market Alstom Transport Today What & where we sell How we are organised Our achievements & results Our strategy p. 36
Alstom Transport strategy Keep leading position both in terms of market share and profitability. Be selective Rolling Stock Keep our current leadership positions Develop new products to address low tech / low cost markets Differentiate through innovation and accelerate standardisation Leverage TMH strategic partnership in Russia Further partnership in India & China Non Rolling-Stock activities Continue to better balance the mix between Rolling-Stock and non Rolling-Stock Develop worldwide position through targeted acquisitions Alstom Transport Convention 2008 - - P 37 p. 37
Strategic priorities : Rolling Stock VHST: maintain leadership around the world, deploy AGV Tram & Tram-Train : reach leadership position Metro : improve competitiveness Regional: leverage Coradia references Locomotive: prepare for market rebound through an integrated offer (Prima II + service) p. 38
Strategic priorities : Non-Rolling Stock Activities Train Life Services (TLS) Develop bundled offers, especially for Freight Design for Serviceability through Train Life Service integration into Rolling Stock Continue Merge & Acquisitions investigations Transport Information Solutions (TIS) Grow organically with Research & Development Focus on developing markets : Maghreb, Turkey, India Continue Merge & Acquisitions investigations Transport Global Solutions (TGS) Improve relationship Regions x Operations to better prepare tenders Focus in project execution, including process adapted to turnkey projects Improve the control of partners p. 39
Partnership with TMH (Transmashholding) Technological support to modernise TMH s facilities Creation of a 50/50 JV for the development of new products in Russia Purchase of a 25% stake in TMH s equity Downpayment of $75 million Final price depending on TMH s results over 2008-2011 Potential of the Russian market Largest railway market in Europe 85,000 kilometres of electrified track 1.3 billion passengers per year Annual freight of 1.3 billion tons p. 40
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