ALSTOM SA: Alstom 2019/20 full year results
Alstom 2019/20 full year
results
- Strong commercial momentum with €9.9 billion of orders,
consolidating an industry-leading backlog of €40.9 billion
- Sales reaching €8.2 billion, at 2% growth (1% organic),
including limited Covid-19 impact at year end
- Continued improvement of adjusted EBIT margin at 7.7%
- Alstom in Motion strategy deployed as planned in 2019/20
- Impact of Covid-19 crisis on 2020/21 to be further
assessed
- Objective of 5% average annual sales growth over the
period 2019/20 – 2022/23 should be slightly impacted,
yet 2022/23 objectives of 9% aEBIT margin and above
80% FCF / Net income ratio confirmed
- Strong rail market fundamentals driven by sustainable transport
needs
12 May 2020 – Between 1 April
2019 and 31 March 2020, Alstom booked €9.9 billion of orders,
consolidating an industry-leading backlog of €40.9 billion. Sales
reached €8.2 billion. The book-to-bill ratio was strong at 1.2. The
adjusted EBIT increased to €630 million, leading to an adjusted
EBIT margin of 7.7%. Net income (from continued operations, group
share) amounted to €446 million. 2019/20 fiscal year results
are in line with the perspectives for the year set during Alstom’s
Capital Markets Day last June, although impacted by the Covid-19
pandemic at year end.
Alstom benefits from a very strong balance
sheet. During fiscal year 2019/20, free cash flow amounted to €206
million. Net cash amounted to €1,178 million on 31 March 2020.
Equity amounted to €3,328 million at 31 March 2020.
In the context of the current crisis, and in a
spirit of responsibility towards all its stakeholders, the Board of
Directors, in its meeting of May 11, 2020, decided as an
exceptional measure not to propose a dividend distribution at the
next Shareholders’ meeting on July 8.
Key figures
(in € million) |
2018/191 |
2019/20 |
% changereported |
% changeorganic |
Actual figures |
|
|
|
|
|
Orders backlog |
40,481 |
40,903 |
1% |
5% |
|
Orders received |
12,107 |
9,900 |
(18)% |
(19)% |
|
Sales |
8,072 |
8,201 |
2% |
1% |
|
Adjusted EBIT2 |
606 |
630 |
4% |
|
|
Adjusted EBIT margin2 |
7.5% |
7.7% |
|
|
|
Net income from
continued operations4, group share |
4333 |
446 |
|
|
|
Free cash flow |
153 |
206 |
|
|
|
Net cash / (debt) |
2,325 |
1,178 |
|
|
|
Equity |
4,159 |
3,328 |
|
|
|
1 Previous year figures have not been
restated to reflect the application of IFRS 16 2 aEBIT
adjusted for CASCO contribution in both periods 3 Including
impact linked to GE Energy JV put option valuation for €106m
4 Net income Group share, including discontinued operations, is
provided in annex
“This fiscal year was the first of our new
strategy Alstom in Motion, which was launched last June and is now
being deployed throughout the Group. Although considered a
stabilisation year, Alstom enjoyed strong commercial momentum in a
very dynamic railway market. We won major orders especially in
Europe and in Asia-Pacific. In addition, we secured pioneering
orders for our green mobility solutions, illustrating the potential
of such technologies and the dynamism of the shift to carbon free
transportation modes. The continuous improvement in our operational
performance demonstrates the Group’s focus on profitable growth.The
end of the fiscal year was marked by the unprecedented Covid-19
crisis. Alstom considers the health and safety of its employees and
stakeholders as its top priority during this period. We are
confident for the resilience of Alstom’s business in the mid-term,
given the fundamentals of the rail market and in particular, the
need for greener mobility.” said Henri Poupart-Lafarge, Alstom
Chairman and Chief Executive Officer.
***Covid-19 impact and
Alstom response
Alstom responded to the crisis caused by the
outbreak of Covid-19 by making the health and safety protection of
its employees the priority and deploying measures in compliance
with guidance from local and international authorities.
The containment resulted in the reduction of
activities in most production and maintenance facilities as from
the end of the 2019/20 fiscal year. The impact on Alstom's sales in
this fiscal year 2019/20 is assessed to be c.€100 million,
mostly on rolling stock due to the slowdown of sales recognition
during the containment period, and to a lesser extent on services
due to train traffic reduction. The identified inefficiencies and
incremental costs impacting the cost of sales represent €24 million
in fiscal year 2019/20.
The Group has organized itself by putting in
place crisis cells at all levels of the organization in order to
deal with this unprecedented situation. To mitigate the impact of
the temporary reduction of activities while keeping the
capabilities to deliver its €40.9 billion backlog, the Group
resorted to holiday and part-time work schemes starting March when
regulations allow. A comprehensive operational, commercial, cost
and cash mitigation plan has been defined and is being implemented.
Alstom has started to slowly re-open most of its sites from end of
April onwards when the necessary safety conditions were met, with
progressive alignment with supply chain needed before partial
restart of production early May. In addition, impact on commercial
activities and market development is being closely monitored, with
a potential delay on tenders.
In addition, on top of its already available
substantial amount of cash and cash equivalents, amounting to
€2,175 million as of 31 March 2020, and of its undrawn €400 million
Revolving Credit Facility (RCF), Alstom has taken additional
actions to bolster its liquidity in the context of Covid-19. It
secured in April 2020 a €1,750 million short term RCF with a 1-year
maturity, a 6-month extension option at the borrower’s discretion
and another 6-month extension at the lenders’ discretion. Liquidity
resources stand at €2,575 million as of 31 March 2020 comprising
€2,175 million in available cash and cash equivalents and €400
million of fully undrawn credit lines plus the additional €1,750
million under the new short term RCF put in place in April
2020.
Beyond these internal measures, Alstom teams
have been committed throughout the world to support the fight
against the Covid-19 pandemic, for example by leveraging 3D
technology to produce face shields and valves for respirators, and
donating masks and other protective equipment to hospitals, local
communities and suppliers. Alstom foundation’s budget will also
increase from €1.5 to €1.9 million euros in 2020/21,
partially funded by a decrease of the CEO and executive committee
members’ remuneration this quarter.
Strategic and business
update
This fiscal year 2019/20 is the first year of
the Alstom in Motion strategy (AiM) announced by Alstom on June 24
2019, which sets a clear ambition: be the leading global innovative
player for a sustainable and smart mobility by 2025. The Group is
already progressing on the AiM priorities:
1.
Growth by offering greater value to our
customers
The Group booked €9,900 million of orders in the
fiscal year 2019/20. This compares to the exceptional performance
of €12,107 million orders last year, which included Avelia
HorizonTM for SNCF and Montreal metro orders totalling €4.3
billion. The book-to-bill ratio was strong at 1.2.
Alstom was awarded projects in both Urban and
Mainlines segments mainly in Europe, notably additional very high
speed trains in France, the renewal of metros of the Ile-de-France
region and regional trains in Germany, including an order for
iLintTM hydrogen trains, and in Asia Pacific with a combined supply
of suburban trains and associated maintenance in Perth, Australia
and the Sydney metro extension.
In line with its AiM strategy, Alstom enjoyed an
increase in orders in both Services and Signalling, which total 51%
of the Group’s order intake in the fiscal year 2019/20. In
Services, Alstom was awarded the 7-year contract to refurbish and
maintain PendolinoTM for Avanti West Coast in the United Kingdom,
the maintenance of lines 2 and 4 of the Santiago metro in Chile, as
well as the maintenance operations associated with Rolling Stock
orders in Perth, Australia and in Germany. In Signalling,
commercial successes include the supply of ERTMS1 to the Paris-Lyon
high-speed line, equipping 77 trains in Sweden with ERTMS onboard
solutions, the automation of the Marseille metro as well as a
service partnership for driverless train control system for the
Circle Line in Singapore.
Alstom’s backlog amounted to €40,903 million on
31 March 2020, providing strong visibility on future sales and
representing the leading backlog in the industry.
In the fiscal year 2019/20, Alstom’s total sales
reached €8,201 million, up 2% (1% organically).
Although manufacturing activity was impacted by
Covid-19 containment measures during the last two weeks of the
fiscal year, Rolling Stock sales reached €3,942 million (+14%
organic) thanks to the sound execution of large high-speed and
regional projects in France, Italy, the Netherlands and Germany, as
well as very high speed in the United States. Both Signalling and
Services sales amounted to 36% of Alstom sales with Signalling up
by +13% organically at €1,489 million, mainly benefiting from
on-going projects in India, Europe and AMECA region. Services sales
reached €1,469 million, down moderately by 6% organically, due
to fully traded contracts in the United States and one-off events
last year in the UK, partially offset by other maintenance
contracts ramp-up. In addition, services activities were slightly
impacted at the end of the fiscal year with reduction of fleet
utilisation following containment measures. Systems sales decreased
to €1,301 million with an expected ramp-down on Dubai, Lusail and
Riyadh systems projects and a fully delivered contract in
Panama.
2.
Innovation in smarter and greener mobility
solutions
Alstom sustained its level of research and
development (net costs) at €302 million, i.e. 3.7% of sales, for
fiscal year 2019/20.
Alstom strengthened its position as a leading
actor in providing comprehensive alternative solutions to diesel
pushing towards carbon neutrality. Alstom showed strong commercial
momentum for green mobility solutions and now offers all types of
traction systems on the market, as well as the full range of
emission-free drives, from efficient electric motors to hydrogen
fuel-cells and advanced battery traction. Alstom was awarded a
second large order in Germany for its Coradia iLintTM hydrogen
train, leading to a total of 41 sold trains and the completion of
successful tests in Netherlands. In addition, Alstom was awarded
its first contract for battery-electric regional trains in Germany
for a total of 11 CoradiaTM Continental electric regional
trains in order to bridge the 80 kilometres of non-electrified line
between the cities of Chemnitz and Leipzig. The new AptisTM
electric bus has also been sold to five French cities (Paris, La
Rochelle, Toulon, Strasbourg and Grenoble) with the first delivery
made in January 2020 in Strasbourg, and first commercial success in
Spain.
Facing mobility evolutions, transport operators
are increasingly looking for digital solutions to improve their
financial and operational performance. Aware of this trend, Alstom
provided a predictive analytics solution to Panama metro operators
which improved the “fail to board” by +30% during peak hours thanks
to artificial intelligence. In addition, Alstom finalized the
co-development of a railway system simulator with the start-up
Cosmotech which enables, in tender phase, to simulate energy
efficiency and punctuality of a metro
system.
In September 2019, a new version of Alstom’s
Atlas™ European Train Control System (ETCS) has entered service on
the Wuppertal suspension railway (“Wuppertaler Schwebebahn”) in
Germany. This project represents the very first application of
ERTMS Level 3 in which train location and integrity are solely
supervised by the ETCS equipment onboard the train, hence sparing
wayside equipment. It consolidates Alstom’s position as a
leading player in digital signalling.
3.
Efficiency powered by digital
In the fiscal year 2019/20 Alstom’s adjusted
EBIT reached €630 million, equivalent to an adjusted EBIT margin of
7.7%, as compared to €606 million and 7.5% in the previous fiscal
year. The improved operational performance was driven by an
increase in revenue combined with industrial efficiency.
In line with AiM efficiency strategy, Alstom
moved forward during this year in its business process digitization
roadmap with 80% of the group turnover being covered by a group
core model SAP solution. The Covid-19 containment measures also
showed the digital agility and resiliency of the Group: within a
few days, thousands of engineers were able to access very demanding
software solutions from home ensuring quasi-complete continuity of
engineering.
Alstom is enlarging its Best Cost Country and
regional footprint, with the inauguration of its Alstom Ubunye
factory in South Africa in October 2019. A significant investment
has been made in upskilling employees and installing
state-of-the-art equipment such as advanced robot technology.
Through the modernisation of Alstom Ubunye, Alstom has established
an African rail company with local partners, creating a stronger
industrial and commercial base and preparing to serve the
increasing demand for rail innovation in Africa.
Finally, Alstom accelerated its Engineering
footprint optimisation with 24% of the Engineering workload
executed in India in 2019/20, compared to a 30% objective for
2022/23.
Net Income from continued operations (group
share) reached €446 million compared to €433 million the previous
year, which had several one-off items, of which €106 million linked
to the General Electric joint venture transaction.
Earnings per share from continued operations
reached €1.99 in fiscal year 2019/20.
4.
One Alstom team, agile, inclusive and
responsible
Green and smart mobility, encouraged by customer
and passenger expectations, is leading to a transformation of the
market. Already recognised as an industrial reference in this
domain, Alstom’s mission is to support the transition towards
sustainable transport systems by offering innovative solutions that
are efficient throughout their entire life cycle.
As part of its climate strategy, Alstom has
continued to progress in achieving its environmental targets set as
part of the AiM strategy:
- On the way to reaching 25% reduction of energy consumption in
its solutions by 20252, Alstom progressed to 20% as of March 2020
(compared to 17% last year),
- Alstom has increased its newly developed solutions with
eco-design to 25% in March 2020, with the objective to reach 100%
in 2025,
- Finally, Alstom secured 36% share of electricity from renewable
sources in its operations, with a target to reach 100% by
2025.
In addition, Alstom is focused on the
implementation of its AiM initiatives related to corporate social
responsibility, and has been attributed three important
recognitions during the fiscal year 2019/20:
- In June 2019, after becoming the first French company to obtain
the AFAQ ISO 37001 Anti-bribery certification for France and Europe
in 2017, followed by Asia-Pacific in 2018, Alstom obtained
certification for its countries of operation in the regions of
North America, Middle East & Africa and Latin America.
- In September 2019, Alstom was included in the Dow Jones
Sustainability Indices (DJSI) World and Europe for the ninth
consecutive year and is now in the 4th percentile of the ranking,
attesting to its leading position in sustainable business
practices.
- In January 2020, Alstom was certified as a Top Employer Europe
by the Top Employers Institute in six countries: France, Spain,
Italy, Poland, Belgium and UK.
***
Bombardier acquisition update and
indicative timetable
Alstom announced on February 17, 2020 that it
had signed a Memorandum of Understanding with Bombardier Inc. and
Caisse de dépôt et placement du Québec (“CDPQ”) in view of the
acquisition of Bombardier Transportation.
Alstom's unions indicated they will render their
opinion around summer 2020 on the proposed takeover of Bombardier
Transportation, according to the “method agreement” reached with
management. An EGM vote on the reserved capital increases to CDPQ
and Bombardier Inc. and the rights issue should take place no later
than October 31, 2020. Subject to the EGM approval, rights issue
will take place between the second semester 2020 and first semester
2021, subject to market conditions, and the reserved capital
increases will take place at closing. The syndication of €2.4
billion of Bridge Facilities and a new €1.5 billion Revolving
Credit Facility related to the proposed acquisition of Bombardier
was completed in April 2020 as planned. The transaction will also
be subject to clearance from relevant regulatory authorities and
anti-trust authorities. Closing is expected in the first half of
2021.
***Solid balance
sheet
During the fiscal year 2019/20, the Group free
cash flow was positive at €206 million, impacted as expected by an
increase in inventories resulting from the ramp up of large Rolling
Stock projects and benefiting from solid project execution and
delivery.
The Group had available cash and cash
equivalents amounting to €2,175 million as of 31 March 2020. Alstom
bond debt amounted to €700m as end of March 2020 after having
successfully carried out the issuance of a 7-year €700 million
senior unsecured Eurobond at a fixed coupon of 0.25% and reimbursed
at maturity a €596 million bond as end of March 2020 and a €283
million bond as end of July 2019.
In April 2020, Alstom secured a €1,750 million
short term Revolving Credit Facility (RCF) with a 1-year maturity,
a 6-month extension option at the borrower’s discretion and another
6-month extension at the lenders’ discretion. This additional RCF
aims at stepping in for Alstom’s €1 billion Negotiable European
Commercial Paper programme, should the Commercial Papers market no
longer be accessible, in addition to providing an extra liquidity
buffer.
These actions substantially bolster the
Company’s already strong liquidity in the context of Covid-19.
Liquidity resources stand at €2,575 million as of 31 March 2020
comprising €2,175 million in available cash and cash equivalents
and €400 million of fully undrawn credit lines plus the additional
€1,750 million under the new short term RCF put in place in April
2020.
Alstom net cash amounted to €1,178 million on 31
March 2020, compared to €2,325 million on 31 March 2019.
Finally, equity stood at €3,328 million at 31 March 2020, compared
to €4,159 million on 31 March 2019, in particular as a result of
the dividend distribution in July
2019.***Dividend
In the context of the current crisis, and in a
spirit of responsibility towards all its stakeholders, the Board of
Directors, in its meeting of May 11, 2020, decided as an
exceptional measure not to propose a dividend distribution at the
next Shareholders’ meeting on July 8.
Alstom would like to point out, however, that
this decision is not due to a lack of
liquidity. ***Outlook
in the context of the Covid-19 pandemic
In 2019/20, Alstom has fully deployed its Alstom
in Motion (AiM) strategic plan in order to progressively deliver
revenues and margin growth in line with the objectives set in the
context of AiM for 2022/23.
However, the Covid-19 crisis is likely to affect
negatively the financial performance of the fiscal year 2020/21,
including order intake, net income, free cash flow and sales,
though it is not possible today to assess precisely its impact.
While a partial restart of production is
on-going as of May 12, the Group cannot predict the shape and
timing of a recovery during 2020/21 as it depends on the further
development of the Covid-19 crisis, the duration of containment
measures and the intensity of the economic downturn and market
response. After the current crisis, the Group expects a fast
recovery of the rail market, sustained by strong fundamentals and
the increasing demand for sustainable mobility.
In this context, the objective of a 5% average
annual growth rate over the period 2019/20-2022/23 should
be slightly impacted by the temporary slowdown of tender activity,
yet the 2022/23 objectives of 9% aEBIT margin and of a
conversion from net income to free cash flow above 80% are
confirmed.
With a strong liquidity position, a demonstrated
ability to deliver execution and profitability and the rapid launch
of a cost and cash mitigation plan, the Group is confident in its
capacity to weather the crisis as well as to capture opportunities
in a resilient rail market and contribute to the transition
towards sustainable transport systems.
The management report and the consolidated
financial statements, as approved by the Board of Directors, in its
meeting held on 11 May 2020, are available on Alstom’s website at
www.alstom.com. These financial statements were audited by the
Statutory Auditors whose certification report is in the process of
being issued.
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 |
|
|
Leading the way to greener and smarter mobility worldwide, Alstom
develops and markets integrated systems that provide the
sustainable foundations for the future of transportation. Alstom
offers a complete range of equipment and services, from high-speed
trains, metros, trams and e-buses to integrated systems, customised
services, infrastructure, signalling and digital mobility
solutions. Alstom recorded sales of €8.2 billion and booked orders
of €9.9 billion in the 2019/20 fiscal year. Headquartered in
France, Alstom is present in over 60 countries and employs 38,900
people. |
|
|
|
Contacts |
Press:Samuel MILLER - Tel.: +33 (1) 57 06 67
74samuel.miller@alstomgroup.comCoralie COLLET - Tel.: +33 1 57 06
18 81coralie.collet@alstomgroup.com Investor
relations:Julie MOREL - Tel.: +33 (6) 67 61 88
58julie.morel@alstomgroup.comClaire 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.
No public offering is contemplated in jurisdiction outside France.
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 |
FY 2018/19 |
% |
FY 2019/20 |
% |
(in € million) |
|
Contrib. |
|
Contrib. |
Europe |
7,337 |
60% |
7,624 |
77% |
Americas |
2,155 |
18% |
646 |
6% |
Asia / Pacific |
1,429 |
12% |
1,569 |
16% |
Africa / Middle East / Central Asia |
1,186 |
10% |
61 |
1% |
Orders by destination |
12,107 |
100% |
9,900 |
100% |
Actual figures |
FY 2018/19 |
% |
FY 2019/20 |
% |
(in € million) |
|
Contrib. |
|
Contrib. |
Europe |
18,212 |
45% |
21,321 |
52% |
Americas |
6,297 |
16% |
5,539 |
14% |
Asia / Pacific |
5,752 |
14% |
6,120 |
15% |
Africa / Middle East / Central Asia |
10,220 |
25% |
7,923 |
19% |
Backlog by destination |
40,481 |
100% |
40,903 |
100% |
Actual figures |
FY 2018/19 |
% |
FY 2019/20 |
% |
(in € million) |
|
Contrib. |
|
Contrib. |
Europe |
4,061 |
51% |
4,675 |
56% |
Americas |
1,470 |
18% |
1,280 |
16% |
Asia / Pacific |
921 |
11% |
889 |
11% |
Africa / Middle East / Central Asia |
1,620 |
20% |
1,357 |
17% |
Sales by destination |
8,072 |
100% |
8,201 |
100% |
APPENDIX 1B – PRODUCT BREAKDOWN
Actual figures |
FY 2018/19 |
% |
FY 2019/20 |
% |
(in € million) |
|
Contrib. |
|
Contrib. |
Rolling stock |
6,078 |
50% |
4,591 |
46% |
Services |
3,144 |
26% |
3,315 |
34% |
Systems |
1,359 |
11% |
265 |
3% |
Signalling |
1,526 |
13% |
1,729 |
17% |
Orders by destination |
12,107 |
100% |
9,900 |
100% |
Actual figures |
FY 2018/19 |
% |
FY 2019/20 |
% |
(in € million) |
|
Contrib. |
|
Contrib. |
Rolling stock |
20,672 |
51% |
20,677 |
51% |
Services |
12,779 |
32% |
13,794 |
33% |
Systems |
3,311 |
8% |
2,288 |
6% |
Signalling |
3,719 |
9% |
4,144 |
10% |
Backlog by destination |
40,481 |
100% |
40,903 |
100% |
Actual figures |
FY 2018/19 |
% |
FY 2019/20 |
% |
(in € million) |
|
Contrib. |
|
Contrib. |
Rolling stock |
3,448 |
43% |
3,942 |
48% |
Services |
1,556 |
19% |
1,469 |
18% |
Systems |
1,766 |
22% |
1,301 |
16% |
Signalling |
1,302 |
16% |
1,489 |
18% |
Sales by destination |
8,072 |
100% |
8,201 |
100% |
APPENDIX 2 – INCOME
STATEMENT
Actual figures |
FY 2018/19* |
FY 2019/20 |
(in € million) |
|
|
Sales |
8,072 |
8,201 |
Adjusted Earnings Before Interest and Taxes
(aEBIT)** |
606 |
630 |
Restructuring charges |
(65) |
(18) |
Other charges |
(134) |
(67) |
Earnings Before Interest and Taxes (EBIT) |
408 |
545 |
Financial result |
(88) |
(76) |
Tax
result |
(70) |
(118) |
Share in net income of equity investees*** |
195 |
102 |
Minority interests from continued operations |
(12) |
(7) |
Net income – Continued operations – group
share*** |
433 |
446 |
Net income – Discontinued operations**** |
248 |
21 |
Net income – Group share***** |
681 |
467 |
*Previous year figures have not been restated to
reflect the application of IFRS 16**aEBIT adjusted for CASCO
contribution in both periods Casco JV share of net income for both
periods: €36m in 2018/19 and €38m in 2019/20***Of which GE Energy
JV put option valuation impact for €106m in 2018/19****Mostly
linked to GE Energy JV transaction***** Variation YoY not
reflecting Alstom's transport core business, explains why this
indicator is in annex and not a "key figure"
APPENDIX 3 – FREE CASH FLOW
Actual figures(in € million) |
FY 2018/19* |
FY 2019/20 |
EBIT |
408 |
545 |
Depreciation and amortisation |
194 |
293 |
Restructuring variation |
15 |
(12) |
Capital expenditure |
(207) |
(195) |
R&D capitalisation |
(68) |
(79) |
Change in working capital |
(12) |
(249) |
Financial cash-out |
(90) |
(95) |
Tax
cash-out |
(105) |
(102) |
Other |
18 |
100 |
Free cash flow |
153 |
206 |
* Previous year figures have not been restated
to reflect the application of IFRS 16The Group adopted IFRS 16
“Leases” on 1 April 2019, according to the simplified retrospective
approach, without restatement of prior period comparatives. Annual
amortization related to the new right-of-use asset amounts to €92
million for the year ended 31 March 2020. The total impact of the
IFRS16 lease implementation to the Free Cash Flow reported
aggregate is estimated at €84 million over the period (refer to
note 2.2.1 “IFRS16 Lease”)
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 using 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 from 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.
The order backlog is also subject to changes in
the scope of consolidation, contract price adjustments and foreign
currency translation effects.Order backlog corresponds to the
transaction price allocated to the remaining performance
obligations, as per IFRS 15 quantitative and qualitative
disclosures requirement.
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
in 2015, 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.
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), namely the CASCO Joint Venture. The company
believes that bringing visibility over a key contributor to the
Alstom signalling strategy will provide a fairer and more accurate
picture of the overall commercial & operational performance of
the Group. This change will also enable more comparability with
what similar market players define as being part of their main
non-GAAP ‘profit’ aggregate disclosure.
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.
The non-GAAP measure adjusted EBIT (aEBIT
hereafter) indicator reconciles with the GAAP measure EBIT as
follows:
|
Full-Year ended |
Full-year ended |
(in € million) |
31 March 2019** |
31 March 2020 |
Adjusted Earnings Before Interest and Taxes
(aEBIT)* |
606 |
630 |
Capital gains / (losses) on disposal of business |
60 |
- |
Restructuring costs |
(65) |
(18) |
Impairment loss and other |
(158) |
(5) |
Covid-19 inefficiencies and incremental costs |
- |
(24) |
CASCO contribution reversal |
(36) |
(38) |
Earnings Before Interest and Taxes (EBIT) |
408 |
545 |
*aEBIT adjusted for CASCO contribution in both
periods** Previous year figures have not been restated to reflect
the application of IFRS 16
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 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.
A reconciliation of free cash flow and net cash
provided by operating activities is presented below:
|
|
|
(in € million) |
FY 2018/19* |
FY 2019/20 |
Net cash provided by / (used in) operating
activities |
425 |
476 |
Capital expenditure (including capitalised R&D costs) |
(275) |
(274) |
Proceeds from disposals of tangible and intangible assets |
3 |
4 |
Free cash flow |
153 |
206 |
* Previous year figures have not been restated
to reflect the application of IFRS 16
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 2019 |
31 March 2020 |
Cash and cash equivalents |
3,432 |
2,175 |
Other current financial assets |
10 |
45 |
Financial non-current assets directly associated to financial
debt |
201 |
- |
Less: |
|
|
Current financial debt |
1,032 |
270 |
Non-current financial debt |
286 |
772 |
Net cash/(debt) at the end of the period |
2,325 |
1,178 |
Due to IFRS 16 implementation at 1 April 2019,
the Group has chosen to exclude lease obligations from the net
cash/(debt) which results in a change in net cash/(debt) of €(15)m
at IFRS 16 first application. From 1 April 2019, the net
cash/(debt) is defined as cash and cash equivalents, marketable
securities and other current financial asset, less borrowings.
Previous year figures have not been restated to reflect the
application of IFRS 16. As of Mars 31 2020, impact of the leasing
obligations on financial debt amounts to €419m.
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 2019* |
|
|
Year
ended 31 March 2020 |
|
(in €
million) |
Actual figures |
Exchange rate |
Comparable Figures |
|
Actual figures |
|
% Var Act. |
% Var
Org. |
Backlog |
40,481 |
(1,639) |
38,842 |
|
40,903 |
|
1% |
5% |
Orders |
12,107 |
77 |
12,184 |
|
9,900 |
|
(18)% |
(19)% |
Sales |
8,072 |
55 |
8,127 |
|
8,201 |
|
2% |
1% |
* Previous year figures have not been restated
to reflect the application of IFRS 16
1 European Rail Traffic Management System
2 compared to 2014 level
Alstom (EU:ALO)
Graphique Historique de l'Action
De Mar 2024 à Avr 2024
Alstom (EU:ALO)
Graphique Historique de l'Action
De Avr 2023 à Avr 2024