Alstom SA: Alstom’s orders and sales for the first three months of
2021/22
Alstom’s orders and sales for the first three months of
2021/22
- Exceptional order intake of €6.4 billion for Q1 2021/22
including several large orders
- Solid three months of sales at €3.7 billion
- Sustained backlog at €76.8 billion
20 July 2021 – Over the first quarter of
2021/22 (from 1 April to 30 June 2021), Alstom booked its first
fully combined quarterly result with €6.4 billion of orders. The
Group’s sales reached €3.7 billion. The book-to-bill ratio was very
high at 1.74. The backlog, as of 30 June 2021, reached €76.8
billion, providing strong visibility on future sales.
Key figures
Actual figures(in € million) |
2020/21Q1 |
2020/21Q1 proforma |
2021/22Q1 |
% ChangeReported |
% Changeproforma |
Orders
received |
1,651 |
3,058 |
6,439 |
+290% |
+106% |
|
Sales |
1,507 |
2,789 |
3,701 |
+146% |
+33% |
|
Geographic and product breakdowns of reported orders and
sales are provided in Appendix 1. All figures mentioned in this
release are unaudited. Any reference in this document
to variations « Pro forma like-for-like», orders and
sales, correspond to non-audited financial performance indicators
used by the Group that are not defined by accounting standards
setters and defined in the appendix.
***
Detailed review
During the first quarter of 2021/22 (from 1
April to 30 June 2021), Alstom recorded €6,439 million of
orders versus €3,058 million in Q1 proforma.
Europe accounted for the majority of the orders,
i.e. 71% of the Group total. Of particular note, Alstom won the
largest train tender in Danish rail history, with a €2.6 billion
frame contract for Danish State Railways including a firm order of
100 Coradia Stream regional trains combined with 15-year
full-service maintenance agreement amounting to a value of €1.4
billion. Alstom was also awarded a contract in France for
approximately €1.1 billion to provide suburban trains for the Paris
area, a systems contract worth €300 million for Athens Metro Line
4, multiple regional train contracts in Italy and Germany and a
strategic signalling contract for the digitalisation of the
Stuttgart rail node. The Americas confirmed the positive global
market dynamic with more than €1.6 billion of orders including €1
billion on the emblematic Tren Maya railway project in Mexico which
bundles systems and services, as well as an upgrade for the
Metromover automated people mover system in Miami.
The book-to-bill ratio is 1.74.
Regarding sales, €3,701 million were traded in
the first quarter of 2021/22 (from 1 April to 30 June 2021) versus
€2,789 million in Q1 2020/21 proforma, which was impacted by the
Covid-19 pandemic. The Q1 2021/22 sales were sustained by the solid
ramp-up of Rolling Stock projects at €2,164 million. Services
delivered €762 million of sales in Q1 2021/22. On Systems, Alstom
reported €238 million sales, as anticipated impacted by continued
ramp-down of Middle East projects. Signalling sales of €537 million
demonstrate a sound level of execution.
***
Main events of the first quarter of
2021/22.
- Driving smart and green
mobility
Following several successful pilot programs in
Europe, the Coradia iLint, world's first hydrogen train, has made
its debut in Poland in June 2021 on a test track near Warsaw.
The first trials of the autonomous train
prototype led by the consortium between SNCF and its partners
Alstom, Bosch, Spirops, Thales and the Railenium Technology
Research Institute took place in the Spring. The Regio 2N
regional train prototype ran on a commercial track. These new
trials are taking place on the national railway network at Busigny
(Northern France) and will lead, in the coming months, to
semi-autonomous operation in the trial phase. These trials are a
key step towards achieving the consortium's ultimate objective:
achieving full autonomy by 2023.
In May 2021, Alstom opened new facilities for
its 3D printing hub at Santa Perpètua site, in Barcelona. The new
facilities will allow the printing of tools for industrial centres
and prototypes to validate designs, moulds, and serial parts.
- Acquisitions
In April 2021, the Group acquired France-based
hydrogen fuel-cell manufacturer Helion Hydrogen Power. This allows
Alstom to draw upon Helion’s proven expertise across the entire
value chain of high-power fuel cells, from design, development and
manufacturing to engineering support and customer
training.
In April 2021, Alstom acquired Flertex, a
France-based group specialised in the design and manufacture of
brake linings for braking systems, expanding and strengthening the
Group’s expertise in braking systems, a key element in the overall
technical performance of trains. It comes only a few months after
that of IBRE, a company specialised in the development,
manufacture, and supply of cast-iron or steel brake
discs.
***
ESG 2025 targets extended to the new
scope – first green guarantee facility signed
Alstom ESG 2025 targets were disclosed in the
Capital Markets Day of July 6, 2021 along the 4 priorities of the
Group: Enabling decarbonization of mobility, Caring for our people,
Creating a positive impact on society, and Acting as a responsible
business partner.
In June, Alstom signed a €400 million Green
guarantee facility with BBVA for the issuance of bank guarantees in
support of Alstom’s commercial contracts which recognizes the
Group’s contribution to Sustainable Development Goals SDG 9
“Industry, innovation and infrastructure” and SDG 11 “Sustainable
Cities and Communities”. This very positive first step
confirms the relevance of the ambition to lead the way to
sustainable and smart mobility.
***
Confirmation of the financial trajectory
disclosed at the Capital Markets Day Alstom held a Capital
Markets Day on July 6, 2021 during which the Group presented its
updated strategy “Alstom in Motion 2025” and its financial
trajectory for the next 4 years. The presentation is
available on Alstom’s website and the financial trajectory in the
appendix of this press release.
***
Alstom will hold its combined annual
Shareholders’ Meeting on July 28, 2021. The Shareholders’
Meeting will be streamed live in video and in full on the
Company’s website.
1 Subject to short term volatility2 Adjusted net
income3 Subject to short term volatility4 Of adjusted net income5
Dividend distribution of €0.25 per share, which corresponds to a
31% payout ratio from the adjusted net profit group share
|
About Alstom |
|
|
Leading societies to a low carbon future, Alstom develops and
markets mobility solutions that provide the sustainable foundations
for the future of transportation. Alstom’s product portfolio ranges
from high-speed trains, metros, monorail and trams to integrated
systems, customised services, infrastructure, signalling and
digital mobility solutions. Alstom has 150,000 vehicles in
commercial service worldwide. With Bombardier Transportation
joining Alstom on January 29, 2021, the enlarged Group’s combined
proforma revenue amounts to €14 billion for the 12-month
period ended March 31, 2021. Headquartered in France, Alstom is now
present in 70 countries and employs more than 70,000 people.
www.alstom.com |
|
|
|
Contacts |
Press:Coralie COLLET - Tel.: +33 (1) 57 06 18
81coralie.collet@alstomgroup.com Samuel MILLER - Tel.: +33
(1) 57 06 67 74samuel.miller@alstomgroup.com Investor
relations:Julie MOREL - Tel.: +33 (6) 67 61 88
58julie.morel@alstomgroup.com Claire LEPELLETIER –
Tel.: +33 (6) 76 64 33 06claire.lepelletier@alstomgroup.com
|
|
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 |
2020/21 |
% |
2021/22 |
% |
(in € million) |
3 months |
Contrib. |
3 months |
Contrib. |
Europe |
239 |
14% |
4,559 |
71% |
Americas |
165 |
10% |
1,696 |
26% |
Asia / Pacific |
345 |
21% |
50 |
1% |
Africa/Middle East/Central Asia |
902 |
55% |
134 |
2% |
Orders by destination |
1,651 |
100% |
6,439 |
100% |
Actual figures |
2020/21 |
% |
2021/22 |
% |
(in € million) |
3 months |
Contrib. |
3 months |
Contrib. |
Europe |
844 |
56% |
2,323 |
63% |
Americas |
262 |
17% |
648 |
18% |
Asia / Pacific |
202 |
14% |
467 |
13% |
Africa/Middle East/Central Asia |
199 |
13% |
263 |
7% |
Sales by destination |
1,507 |
100% |
3,701 |
100% |
APPENDIX 1B – PRODUCT BREAKDOWN
Actual figures |
2020/21 |
% |
2021/22 |
% |
(in € million) |
3 months |
Contrib. |
3 months |
Contrib. |
Rolling Stock |
553 |
34% |
3,362 |
52% |
Services |
668 |
40% |
1,139 |
18% |
Systems |
265 |
16% |
1,366 |
21% |
Signalling |
165 |
10% |
572 |
9% |
Orders by destination |
1,651 |
100% |
6,439 |
100% |
Actual figures |
2020/21 |
% |
2021/22 |
% |
(in € million) |
3 months |
Contrib. |
3 months |
Contrib. |
Rolling Stock |
718 |
48% |
2,164 |
58% |
Services |
283 |
19% |
762 |
21% |
Systems |
182 |
12% |
238 |
6% |
Signalling |
324 |
21% |
537 |
15% |
Sales by destination |
1,507 |
100% |
3,701 |
100% |
APPENDIX 2: FINANCIAL TRAJECTORY
DISCLOSED ON JULY 6, 2021 AND CONFIRMED BY THIS
PUBLICATION.
- Project stabilization impacting fiscal year
2021/22 Free Cash Flow
The current fiscal year 2021/22 will be a
transition year, focused on the stabilization of the Bombardier
Transportation challenging legacy projects. During H1 2021/22 free
cash flow is expected to be between (€1.6 billion) and (€1.9
billion) impacted by working capital consumption due to phasing,
industrial ramp-up and project stabilization efforts. In H2
2021/22, the Group expects positive free cash flow driven by
increased deliveries and operations stabilization. Overall, this
should result in significant negative free cash flow in
2021/22.Thereafter, the Group expects to see yearly positive free
cash flow generation towards its mid-term target1 of over 80%,
driven by progressive working capital stabilization.
- Mid-term financial trajectory and
objectives
- 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 €74.5
billion backlog securing ca. €30 billion of sales 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 between 2024/25 and 2025/26;
- Free Cash Flow: From 2024/25 onwards, the conversion from net
income2 to free cash flow should be over 80%3 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 ratio of between 25% and 35%4. For fiscal
year 2020/21, on the dividend announced on May 115, Alstom’s board
of directors decided to propose, in its meeting of July 4, to the
General Shareholder Assembly a dividend in share or in cash, which
is detailed in the notice for the shareholders’ meeting.
APPENDIX 3 – 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 ratio
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, Bombardier Sifang
(Qingdao) Transportation Ltd., Bombardier NUG Propulsion System Co.
Ltd. and Changchun Bombardier Railway Vehicles Company Ltd.
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 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 in percentage of sales.
Adjusted net profit
Following the Bombardier Transportation
acquisition and with effect from these Fiscal year 2020/21
consolidated financial statements, 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 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.
Alstom uses the Free Cash Flow both for internal
analysis purposes as well as for external communication as the
Group believes it provides accurate insight into the actual amount
of cash generated or used by operations.
Pay-out ratio
The payout 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 variation
The "proforma" variations, orders and sales,
correspond to the like-for-like variation of Alstom after the
acquisition of Bombardier Transportation integrating Bombardier
Transportation during the fiscal years prior to their acquisition.
The pre-acquisition financial data used to calculate the "proforma"
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 March 31, 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 2020/21 of Bombardier
Transportation were converted at the average quarterly foreign
exchange rate EUR/USD of 1/1.1004. Orders received Q1 2020/21 of
Bombardier Transportation were converted at the rate EUR/USD of
1/1.1284, communicated in Bombardier Inc Q2 2020 financial
report.
- 2021-20-07 PR Q1 2021-22_VF2
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