Alstom 2018/19
results
-
Outstanding level of order
intake at €12.1 billion, leading to a new record-breaking backlog
of €40.5 billion
-
Strong operational performance
with sales at €8.1 billion (10% growth) and adjusted EBIT margin of
7.1%
-
Proposed dividend of €5.50 per
share
7 May 2019 -
Between 1 April 2018 and 31 March 2019, Alstom booked €12.1 billion
of orders. Over the same period, sales reached €8.1 billion,
corresponding to growth of 10% (11% organically). The adjusted EBIT
increased to €570 million, 44% above last year, leading to an
adjusted EBIT margin of 7.1%. Net income (Group share) amounted to
€681 million, compared to €365 million the previous year, including
exceptional net income from discontinued operations of €248
million.
Alstom benefits from a very strong
balance sheet. During fiscal year 2018/19, free cash flow amounted
to €153 million. Net cash, including the sales of interests in the
three Energy Joint Ventures to General Electric, amounted to €2,325
million on 31 March 2019. Equity amounted to €4.2 billion at 31
March 2019.
At its next Shareholders' Meeting
planned on 10 July 2019, Alstom will propose a dividend of €5.50
per share.
Key figures
(in € million) |
2017/18* |
2018/19 |
% change
reported |
% change
organic |
Actual figures |
|
|
|
|
|
Orders backlog |
35,239 |
40,481 |
15% |
13% |
|
Orders received |
7,183 |
12,107 |
69% |
71% |
|
Sales |
7,346 |
8,072 |
10% |
11% |
|
Adjusted EBIT |
397 |
570 |
44% |
|
|
Adjusted EBIT margin |
5.4% |
7.1% |
|
|
|
Net income - Group share |
365 |
681 |
|
|
|
Free cash flow |
128 |
153 |
|
|
|
Net cash / (debt) |
(255) |
2,325 |
|
|
|
Equity |
3,430 |
4,159 |
|
|
|
* Restated IFRS 9 & 15
« Alstom
benefited from an exceptional commercial momentum this year with a
record level of order intake at €12 billion, including two major
contracts with the renewal of the very high-speed train fleet in
France and the metro system project for Montreal. The very strong
sales growth and the further margin enhancement confirm the success
of our 2020 strategy, which is now completed. » said Henri
Poupart-Lafarge, Alstom Chairman and Chief Executive Officer.
***
Success of the 2020
strategy and 2018/19 performance
Alstom 2020 strategy is based on
the five following pillars:
-
Customer-focused
organisation
The Group booked €12,107 million
orders in the fiscal year 2018/19. This compares to €7,183 million
over the same period last year.
Alstom was
awarded projects in all regions, including an order for 100
next-generation very high speed trains in France, a driverless
regional express train for Montreal, a metro maintenance contract
for Riyadh, metro cars for the Grand Paris Express in France,
regional trains in Luxembourg, trains and maintenance in Italy, a
major rolling stock contract for Mumbai, an integrated metro system
for Taipei, a long-term rolling stock and signalling maintenance
contract for Sydney metro, a national on-board train control system
in Norway, electric locomotives in Morocco and Citadis trams for
Frankfurt. External orders for signalling were high at €1.5 bn
representing a book to bill of 1.2. At €40.5 billion on 31
March 2019, current backlog provides strong visibility on future
sales.
-
Complete range of
solutions
In fiscal year 2018/19, Alstom's
total sales reached €8,072 million, up 10% (11% organically).
Signalling, systems and services
represented 57% of sales in 2018/19. Systems sales increased by
around 16% with the progress of urban systems projects in the
Middle East and Panama metro in Latin America. Services sales
reached €1.6 billion, with notably the contribution of long-term
contracts in the United Kingdom and Italy. Signalling sales
amounted to €1.3 billion, with lower activity in the United Kingdom
and Brazil. Rolling stock sales reached €3.4 billion with
deliveries of regional and high-speed trains in Europe and the
ramp-up of the Amtrak project in the USA.
-
Value creation through
innovation
Alstom sustained its level of
research and development (gross costs) at €380 million, i.e. 4.7%
of sales, in fiscal year 2018/19. Main programmes included the
renewal of rolling stock ranges, execution of signalling R&D
and the investment in Digital solutions. In September 2018,
Alstom's hydrogen trains Coradia iLint entered passenger service in
Lower Saxony, a world premiere. In March 2019, Alstom also opened
StationOne, the first online marketplace dedicated to the railway
sector. Finally, the APTIS electric bus won its first contract in
Strasbourg, France.
-
Operational and environmental
excellence
Alstom delivered an adjusted EBIT
of €570 million in 2018/19, compared to €397 million the previous
year, representing a 44% increase. The adjusted EBIT margin reached
7.1% for the fiscal year 2018/19, compared to 5.4% for the fiscal
year 2017/18. This continued improvement was driven by volume
increase, efficiencies in operational performance and a contained
cost structure. During the fiscal year 2018/19, net income (Group
share) amounted to €681 million, compared to €365 million the
previous year, including exceptional net income from discontinued
operations of €248 million linked to the transaction with General
Electric.
In terms of environmental
excellence, energy consumption is to be reduced by 20% for
solutions and by 10% for operations by 2020. With the objective of
constantly improving safety at work, the Group targets an
occupational injury frequency rate[1] of 1 by
2020. Alstom has already reduced its energy consumption by 17% for
solutions, by 13% for operation and this year reached its
occupational injury frequency rate1 target of
1.1.
Alstom improved its score in the
Dow Jones Sustainability World and Europe indexes in 2018 with an
overall score of 81 out of 100 in the DJSI ranking, which
represents a one-point improvement compared to previous year.
Alstom scored A- at CDP's 2018 climate change questionnaire.
-
Diverse and entrepreneurial
people
To reflect Alstom's passenger
base, the company has the ambition to increase diversity, aiming
for 25% of Management or Professional roles to be occupied by women
in 2020. In 2018/19, this indicator reached 21%.
Alstom's employees around the
world all share the same culture, underpinned by strong integrity
and ethics values. In June 2017, Alstom obtained ISO 37001
certification for its anti-bribery management system, confirming
its commitment to fight corruption. Alstom also announced that the
three-year period of self-reporting obligations that the Group
agreed to as part of the Plea Agreement of 22 December 2014 has
come to a successful completion. This achievement is the result of
the company's efforts during the period and a close cooperation
with the US Department of Justice. The company remains committed to
the highest level of integrity in its activities and will continue
the development of its compliance programme.
***
Solid balance
sheet
During fiscal year 2018/19, the
Group free cash flow was positive at €153 million, benefitting from
positive EBIT evolution and impacted by phasing of
transformation capex, working capital driven by ramp-up of major
projects signed in previous years, as well as Siemens/Alstom deal
costs impact.
Alstom invested €207 million in
capital expenditures in fiscal year 2018/19, compared to €203
million the previous year. As end of March 2019, the cumulated
transformation capex stood at €269 million, out of €300 million,
with notably the progress in sites' construction in South Africa
and in India.
The Group had a gross cash in hand
of €3,432 million at the end of March 2019 and a fully undrawn
credit line of €400 million. After reimbursement at maturity of a
€371 million bond in October 2018, Alstom bond debt amounted to
€878 million as end of March 2019. Alstom net cash included the
sale of interests in the three Energy Joint Ventures to General
Electric amounting to €2,325 million on 31 March 2019. Last, equity
reached €4,159 million at 31 March 2019, versus €3,430 million at
31 March 2018.
***
Dividend
The Board of Directors decided to
propose a dividend of €5.50 per share to the Shareholder's Meeting
that will be held on 10 July 2019, given net cash position at 31
March 2019, positively impacted by the sales of interests of the
three Energy Joint Ventures to General Electric for €2,594
million.
The ex-dividend date would be 15
July 2019 and the record date would be 16 July 2019. The dividend
would be payable in cash from 17 July 2019.
***
Outlook
The Alstom outlook will be provided
during a Capital Markets Day to be hosted in Paris on 24 June
2019.
*
The management
report and the consolidated financial statements, as approved by
the Board of Directors, in its meeting held on 6 May 2019, are
available on Alstom's website at www.alstom.com. The accounts have been audited and certified.
In accordance
with AFEP-MEDEF recommendations, information related to the
remuneration of Alstom's Executive Officer is available on Alstom's
website: www.alstom.com, under About
us/Corporate Governance/Compensation of Executive Officers.
About
Alstom
As a promoter of sustainable mobility, Alstom
develops and markets systems, equipment and services for the
transport sector. Alstom offers a complete range of solutions (from
high-speed trains to metros, tramways and e-buses), passenger
solutions, customised services (maintenance, modernisation),
infrastructure, signalling and digital mobility solutions. Alstom
is a world leader in integrated transport systems. The company
recorded sales of €8.1 billion and booked €12.1 billion of orders
in the 2018/19 fiscal year. Headquartered in France, Alstom is
present in over 60 countries and employs 36,300
people.
www.alstom.com
Press
contacts
Justine Rohée - Tel. + 33 1 57 06 18 81
justine.rohee@alstomgroup.com
Samuel Miller - Tel. + 33 1 57 06 67
74
samuel.miller@alstomgroup.com
Investor
relations
Julie Morel - Tel. + 33 6 67 61 88 58
julie.morel@alstomgroup.com
Julien Minot - Tel. + 33 1 57 06
64 84
Julien.minot@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.
Appendix 1a -
Geographic Breakdown
Actual figures |
FY 2017/18 |
% |
FY 2017/18 |
% |
FY 2018/19 |
% |
(in € million) |
(published) |
Contrib. |
(rest. IFRS 9 & 15) |
Contrib. |
|
Contrib. |
Europe |
3,507 |
48% |
3,507 |
48% |
7,337 |
60% |
Americas |
1,628 |
23% |
1,628 |
23% |
2,155 |
18% |
Asia / Pacific |
980 |
14% |
980 |
14% |
1,429 |
12% |
Middle East / Africa |
1,068 |
15% |
1,068 |
15% |
1,186 |
10% |
Orders by destination |
7,183 |
100% |
7,183 |
100% |
12,107 |
100% |
Actual figures |
FY 2017/18 |
% |
FY 2017/18 |
% |
FY 2018/19 |
% |
(in € million) |
(published) |
Contrib. |
(rest. IFRS 9 & 15) |
Contrib. |
|
Contrib. |
Europe |
3,938 |
50% |
3,749 |
51% |
4,061 |
51% |
Americas |
1,531 |
19% |
1,333 |
18% |
1,470 |
18% |
Asia / Pacific |
974 |
12% |
900 |
12% |
921 |
11% |
Middle East / Africa |
1,508 |
19% |
1,364 |
19% |
1,620 |
20% |
Sales by destination |
7,951 |
100% |
7,346 |
100% |
8,072 |
100% |
Appendix 1b -
Product Breakdown
Actual figures |
FY 2017/18 |
% |
FY 2017/18 |
% |
FY 2018/19 |
% |
(in € million) |
(published) |
Contrib. |
(rest. IFRS 9 & 15) |
Contrib. |
|
Contrib. |
Rolling stock |
3,189 |
45% |
3,189 |
45% |
6,078 |
50% |
Services |
2,180 |
30% |
2,180 |
30% |
3,144 |
26% |
Systems |
523 |
7% |
523 |
7% |
1,359 |
11% |
Signalling |
1,291 |
18% |
1,291 |
18% |
1,526 |
13% |
Orders by destination |
7,183 |
100% |
7,183 |
100% |
12,107 |
100% |
Actual figures |
FY 2017/18 |
% |
FY 2017/18 |
% |
FY 2018/19 |
% |
(in € million) |
(published) |
Contrib. |
(rest. IFRS 9 & 15) |
Contrib. |
|
Contrib. |
Rolling stock |
3,464 |
43% |
3,150 |
43% |
3,448 |
43% |
Services |
1,480 |
19% |
1,354 |
18% |
1,556 |
19% |
Systems |
1,691 |
21% |
1,527 |
21% |
1,766 |
22% |
Signalling |
1,316 |
17% |
1,315 |
18% |
1,302 |
16% |
Sales by destination |
7,951 |
100% |
7,346 |
100% |
8,072 |
100% |
Appendix 2 -
Income statement
Actual figures |
FY 2017/18 |
FY 2017/18 |
FY 2018/19 |
(in € million) |
(published) |
(rest. IFRS 9 & 15) |
|
Sales |
7,951 |
7,346 |
8,072 |
Adjusted Earnings Before Interest and Taxes
(aEBIT) |
514 |
397 |
570 |
Restructuring charges |
(47) |
(47) |
(65) |
Other charges |
(86) |
(86) |
(97) |
Earnings Before Interest and Taxes (EBIT) |
381 |
264 |
408 |
Financial
result |
(91) |
(99) |
(88) |
Tax
result |
(73) |
(59) |
(70) |
Share in
net income of equity investees |
216 |
216 |
195 |
Minority
interests from continued operations |
(10) |
(9) |
(12) |
Net income
- Discontinued operations* |
52 |
52 |
248 |
Net income - Group share |
475 |
365 |
681 |
*Group share
Appendix 3 - Free
cash flow
Actual figures |
FY 2017/18 |
FY 2018/19 |
(in € million) |
(rest. IFRS 9 & 15) |
|
EBIT |
264 |
408 |
Depreciation and amortisation |
168 |
194 |
Capital
expenditure |
(203) |
(207) |
R&D
capitalisation |
(90) |
(68) |
Change in
working capital |
91 |
(12) |
Financial
cash-out |
(66) |
(90) |
Tax
cash-out |
(93) |
(105) |
Other |
57 |
33 |
Free cash flow |
128 |
153 |
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 through the use of
forward currency sales. Orders are then measured using the spot
rate at inception of hedging instruments.
Order backlog
Order backlog represents sales not yet recognised on orders already
received.
Order backlog at the end of a financial year is computed as
follows:
-
order backlog at the beginning of the
year;
-
plus new orders received during the year;
-
less cancellations of orders recorded during the
year;
-
less sales recognised during the year.
Order backlog corresponds to the transaction price
allocated to the remaining performance obligations, as per IFRS15
standard quantitative and qualitative disclosures requirements.
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
When Alstom's new organisation was implemented, adjusted EBIT
("aEBIT") became 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.
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;
-
and 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.
A non-recurring item is a
"one-off" exceptional item that is not supposed to be reappearing
in following years and that is significant.
Adjusted EBIT margin corresponds to Adjusted EBIT in percentage of
sales.
The non-GAAP measure adjusted EBIT indicator reconciles with the
GAAP measure EBIT as follows:
|
Year ended |
Year ended |
(in € million) |
31 March 2018
(rest. IFRS 9 & 15) |
31 March 2019 |
Adjusted Earnings Before Interest and Taxes
(aEBIT) |
397 |
570 |
Restructuring costs |
(47) |
(65) |
PPA amortisation and integration costs |
(25) |
(15) |
Siemens deal costs |
(39) |
(74) |
Others and asset impairment |
(22) |
(8) |
Earnings Before Interest and Taxes (EBIT) |
264 |
408 |
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. In particular, free cash flow does not include
the 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.
A reconciliation of free cash flow and net cash provided by
operating activities is presented below:
|
Year ended |
Year ended |
(in € million) |
31 March 2018
(rest. IFRS 9 & 15) |
31 March 2019 |
Net cash provided by / (used in) operating
activities |
418 |
425 |
Capital expenditure (including capitalised R&D
costs) |
(293) |
(275) |
Proceeds from disposals of tangible and intangible
assets |
3 |
2 |
Free cash flow |
128 |
153 |
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
regarding the actual amount of cash generated or used by
operations.
Net cash/(debt)
The net cash/(debt) is defined as cash and cash equivalents, other
current financial assets and non-current financial assets directly
associated to liabilities included in financial debt, less
financial debt.
|
Year ended |
Year ended |
(in € million) |
31 March 2018 |
31 March 2019 |
Cash and cash equivalents |
1,231 |
3,432 |
Other current financial assets |
8 |
10 |
Financial non-current assets directly associated to
financial debt |
213 |
201 |
Less: |
|
|
Current financial debt |
543 |
1,032 |
Non-current financial debt |
1,164 |
286 |
Net cash/(debt) at the end of the period |
(255) |
2,325 |
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.
|
Year ended 31 March 2018
(rest. IFRS 9 & 15) |
|
Year ended 31 March 2019 |
|
|
|
(in €
million) |
Actual
figures |
Exchange
rate |
Scope
impact |
Comparable
Figures |
|
Actual
figures |
Scope
Impact |
Comparable
Figures |
|
% Var
Act. |
% Var
Org. |
Backlog |
35,239 |
(56) |
- |
35,183 |
|
40,481 |
(623) |
39,858 |
|
15% |
13% |
Orders |
7,183 |
(83) |
- |
7,101 |
|
12,107 |
- |
12,107 |
|
69% |
71% |
Sales |
7,346 |
(44) |
- |
7,302 |
|
8,072 |
- |
8,072 |
|
10% |
11% |
[1] Number of
work-related injuries which prevent the injured person from
carrying out work for a period of at least one full day per million
of hours worked
2019 05 07 PR FY 2018-19
This
announcement is distributed by West Corporation on behalf of West
Corporation clients.
The issuer of this announcement warrants that they are solely
responsible for the content, accuracy and originality of the
information contained therein.
Source: ALSTOM SA via Globenewswire
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