ALSTOM SA: Alstom’s orders and sales for the first three months of
2023/24. Market dynamics and pipeline confirmed.
Alstom’s orders and sales
for the first three
months of
2023/24. Market
dynamics and pipeline confirmed.
- Q1 order intake at €3.9
billion
- Book-to-bill above 1
confirmed for FY 2023/24
- Q1 sales at €4.2 billion,
up 4.3% vs. last year, of which 7.6% organic, in line with
announced growth trajectory
- Full year outlook and
mid-term objectives confirmed
25
July
2023 – Over the first quarter of
2023/24 (from 1 April to 30 June 2023), Alstom booked €3.9 billion
of orders. The Group’s sales reached €4.2 billion in the quarter,
up 4.3% vs. last year, in line with announced growth trajectory.
The backlog, as of 30 June 2023, settled at €87 billion, providing
strong visibility on future sales.
Key figures
|
Actual figures(in € million) |
2022/23Q1
|
2023/24Q1 |
% ChangeReported |
% ChangeOrganic |
|
Orders received |
5,601 |
3,875 |
(30.8)% |
(28.9)% |
|
Sales |
4,002 |
4,175 |
+4.3% |
+7.6% |
Geographic and product breakdowns of reported orders and sales
are provided in Appendix 1. All figures mentioned in this release
are unaudited.
“Alstom’s first quarter saw the booking of
important Systems contracts in the Philippines and Romania, we also
secured a landmark tramways project in Philadelphia, US. The market
environment remains positive with a large pipeline of opportunities
over the next three years. Our focus on execution has enabled our
organic sales to increase in line with our announced trajectory.
Confident in the resilience of our business model, we confirm our
short and mid-term targets.” said Henri
POUPART-LAFARGE, Alstom Chairman and Chief
Executive Officer.
***
Detailed review
During the
first quarter of
2023/24
(from 1 April
to 30 June
2023),
Alstom recorded
€3,875 million
in orders,
compared to
€5,601 million
over the same period last fiscal
year. Last year’s performance was mainly
driven by a landmark contract awarded by Landesanstalt
Schienenfahrzeuge Baden-Württemberg (SFBW) network in Germany for
almost €2.5 billion.Over three months, orders for Services,
Signalling and Systems reached 64% of the total order intake. On a
regional level, Europe accounted for 48% of the Group total order
intake. Alstom was awarded a contract with the Cluj-Napoca City
Hall for the construction of Cluj-Napoca Metro Line 1, in Romania,
as part of a consortium with the civil works companies Gulermak and
Arcada. The full value of this state-of-the-art turnkey project
comes to around €1.8 billion, with Alstom’s share reaching
approximately €400 million.
In Americas, the Group has signed a contract
with the Southeastern Pennsylvania Transportation Authority
(SEPTA), to deliver 130 full low floor electric streetcars in
Philadelphia valued at over €667 million, with options to build an
additional 30 streetcars.
In the Asia/Pacific region, Alstom has been
awarded, in a consortium with Colas Rail, by Mitsubishi Corporation
a contract to provide an integrated railway system for the
extension of the North-South Commuter Railway project (NSCR) in the
Philippines. Alstom’s contract share is worth approximately €1
billion.
Sales were
€4,175
million in Q1
2023/24
(from 1 April to 30 June 2023)
versus
€4,002
million in
Q1
2022/23
(+4.3%).
Sales in Rolling Stock in the quarter stood at
€2,294 million, up 5.5% versus Q1 2022/23, reflecting a sound level
of execution during the quarter notably in Europe, Brazil and
Kazakhstan.
Signalling sales stood at €599 million, up 13%
versus last year, on the back of a consistent execution across all
regions.
In Systems, Alstom reported €326 million sales,
down 16% vs. last year, impacted by a few projects ending during
this quarter.
Services delivered a sustained performance in
the quarter and reported €956 million of sales, up 5.1% versus last
year, driven by a good performance of Assets Life Management
activity, notably in Italy and North America.
The book-to-bill ratio is 0.93 over the
quarter.
***
Main highlights of
the first quarter
of
2023/24
During the quarter, Alstom reached important
delivery milestones, and launched a range of initiatives to
accelerate its transformation into a more competitive and agile
group.
In June 2023, Alstom announced the entry into
passenger service of the MRT Yellow Line in Bangkok. The project
delivery, led by Alstom’s Turnkey regional hub in Bangkok, included
system integration, installation and test and commissioning of the
Innovia monorail trains, Cityflo 650 GOA4 driverless signalling,
communication systems, power supply and conductor rail, track
switches, platform screen doors and depot equipment. Bangkok’s
first driverless urban line features 30 four-car monorail train
sets, fully automated train control and integrated wayside railway
systems. Alstom is also delivering the system for the MRT Pink
Line, expected to enter service in 2024.
Also in June, the “lumière” tram, from Alstom’s
Citadis range, has entered commercial service on the new T10
tramway line, which now links La Croix de Berny (Antony) to Jardin
Parisien station (Clamart) in 20 minutes, via Châtenay-Malabry and
Le Plessis-Robinson, in the south of Paris. This new line, almost 7
km long and serving 13 stations, will accommodate almost 25,000
passengers a day.
With its first participation in VivaTech, Alstom
established itself as the leader of smart and green mobility.
Alstom succeeded in blending its native field of expertise – rail
and mobility - with ideas around tech, innovation, agility and
sustainability. Alstom’s presentation was focused on 3 main
areas:
-
Artificial Intelligence: From predictive maintenance to
optimisation of operation, improved safety and energy
consumption,
-
Cybersecurity: The cybersecurity portfolio of Alstom is made of
several type of offers (consulting services, vulnerability
management, cybersecurity enhancement, security monitoring),
- Open
Innovation: Alstom's approach to working with start-ups is focused
on creating a mutually beneficial relationship. Alstom appeared
at VivaTech with a few promising start-ups: SolCold
(Energy/nanotech materials), SoWhen (Digital/VR/AI), Poolp (3D
printing using plastic waste as raw material).
By staying at the forefront of this evolution,
Alstom is pioneering the products and services of the future.
-
One Alstom team Agile, Inclusive and
Responsible
Alstom has announced on the 6th of July the
validation of its CO2 emissions reduction targets by the SBTi
(Science Based Targets initiative) as consistent with levels
required to meet the goals of the Paris Agreement (including
targets for Scope 1&2 in line with a 1.5°C trajectory).
Furthermore, Alstom signed this quarter a major
Power Purchase Agreement focused on solar development in Spain. The
solar farm which will be built in Andalusia 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 our target of 100%
electricity consumption from renewables.
***
Financial trajectory for FY
2023/24
The Group has based its FY 2023/24 outlook on a
central inflation scenario reflecting a consensus of public
institutions. The Group also assumes its continuous ability to
navigate the supply chain, macro-economic and geopolitical
challenges as it has done during FY 2022/23.
- Book to bill ratio above 1
- Sales growth consistent with
mid-term guidance: CAGR1 above 5%
- Adjusted EBIT Margin expected
around 6%
- Free Cash Flow generation
significantly positive
***
Mid-term financial trajectory and
objectives to be reached in FY
2025/26
- Sales: Between 2020/21 (proforma
sales of €14 billion) – and 2025/26, Alstom is aiming at sales
Compound Annual Growth Rate over 5% supported by strong market
momentum and unparalleled €87 billion backlog as of 30 June 2023,
securing sales of ca. €38 to 40 billion over the next three years.
Rolling stock should grow above market rate, Services and
Signalling at high-single digit path.
- Profitability: the adjusted EBIT
margin should reach between 8% and 10% from 2025/26 onwards,
benefiting from operational excellence initiatives, strong margins
on new orders including improved indexation, 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 2025/26
onwards, the conversion from adjusted net profit to Free Cash Flow
should be over 80%2 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.
1 Compound Annual Growth Rate2 Subject to short
term volatility
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About Alstom |
|
|
|
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 63 countries and a talent base of over 80,000 people from 175
nationalities, the company focusses its design, innovation, and
project management skills to where mobility solutions are needed
most. Listed in France, Alstom generated revenues of €16.5 billion
for the fiscal year ending on 31 March 2023. For more information,
please visit www.alstom.com |
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Contacts |
Press:Philippe MOLITOR - Tel.: +33 (0) 7 76 00 97
79 philippe.molitor@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 56estelle.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 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.
APPENDIX 1A – GEOGRAPHIC
BREAKDOWN
|
Actual figures |
2022/23 |
% |
2023/24 |
% |
|
(in € million) |
3 months |
Contrib. |
3 months |
Contrib. |
|
Europe |
3,933 |
70% |
1,850 |
48% |
|
Americas |
405 |
7% |
848 |
22% |
|
Asia / Pacific |
1,235 |
22% |
1,168 |
30% |
|
Middle East / Africa |
28 |
1% |
9 |
0% |
|
Orders by destination |
5,601 |
100% |
3,875 |
100% |
|
Actual figures |
2022/23 |
% |
2023/24 |
% |
|
(in € million) |
3 months |
Contrib. |
3 months |
Contrib. |
|
Europe |
2,412 |
60% |
2,516 |
60% |
|
Americas |
661 |
17% |
772 |
19% |
|
Asia / Pacific |
574 |
14% |
546 |
13% |
|
Middle East / Africa |
355 |
9% |
341 |
8% |
|
Sales by destination |
4,002 |
100% |
4,175 |
100% |
APPENDIX 1B – PRODUCT BREAKDOWN
|
Actual figures |
2022/23 |
% |
2023/24 |
% |
|
(in € million) |
3 months |
Contrib. |
3 months |
Contrib. |
|
Rolling stock |
3,013 |
54% |
1,387 |
36% |
|
Services |
1,844 |
33% |
554 |
14% |
|
Systems |
271 |
5% |
1,465 |
38% |
|
Signalling |
473 |
8% |
469 |
12% |
|
Orders by product line |
5,601 |
100% |
3,875 |
100% |
|
Actual figures |
2022/23 |
% |
2023/24 |
% |
|
(in € million) |
3 months |
Contrib. |
3 months |
Contrib. |
|
Rolling stock |
2,175 |
54% |
2,294 |
55% |
|
Services |
909 |
23% |
956 |
23% |
|
Systems |
388 |
10% |
326 |
8% |
|
Signalling |
530 |
13% |
599 |
14% |
|
Sales by product line |
4,002 |
100% |
4,175 |
100% |
APPENDIX 2 - NON-GAAP
FINANCIAL INDICATORS DEFINITIONS
This section presents financial indicators used
by the Group that are not defined by accounting standard
setters.
Orders 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.
Adjusted Gross Margin before
PPAAdjusted Gross Margin before PPA is a Key Performance
Indicator to present 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 purchase price allocations
(“PPA”) in the context of business combination as well as
non-recurring “one off” items that are not supposed to occur again
in following years and are significant.
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” indicator aimed
at restating its Earnings Before Interest and Taxes (“EBIT”) to
exclude the impact of amortisation of assets exclusively valued
when determining the purchase price allocations (“PPA”) in the
context of business combination. This indicator 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, Alstom Sifang (Qingdao)
Transportation Ltd, Jiangsu ALSTOM NUG Propulsion System Co. Ltd.
(former Bombardier NUG Propulsion) and Changchun Changke Alstom
Railway Vehicles Company Ltd.
aEBIT corresponds to Earning Before Interests
and Tax adjusted for the following elements:
- net
restructuring expenses (including rationalisation 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 realise
business combinations and amortisation 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 profit.The
“Adjusted Net Profit” indicator aims at restating the Alstom’s net
profit from continued operations (Group share) to exclude the
impact of amortisation & impairment of assets exclusively
valued when determining the purchase price allocations (“PPA”) in
the context of business combination, net of the corresponding tax
effect.
Free cash flowFree 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.
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 an actual
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.
| |
Q1
2022/23 |
|
Q1
2023/24 |
|
|
|
|
(in € million) |
Actual figures |
Exchange rate and scope impact |
Comparable Figures |
|
Actualfigures |
|
% Var Act. |
% Var Org. |
|
Orders |
5,601 |
152 |
5,449 |
|
3,875 |
|
(30.8)% |
(28.9)% |
|
Sales |
4,002 |
123 |
3,879 |
|
4,175 |
|
+4.3% |
+7.6% |
Grafico Azioni Alstom (EU:ALO)
Storico
Da Nov 2023 a Dic 2023
Grafico Azioni Alstom (EU:ALO)
Storico
Da Dic 2022 a Dic 2023
