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Alstom

Earnings Release Jul 13, 2016

1099_iss_2016-07-13_437fb06e-1c82-47fb-ab07-a21d3d747220.pdf

Earnings Release

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First quarter 2016/17

Alstom continues its organic growth

13 July 2016 – Over the first quarter 2016/17 (from 1 April to 30 June 2016), Alstom booked €0.9 billion of orders, compared to €2 billion over the same period last year. Sales, at €1.7 billion, were up 7% organically over the first quarter 2016/17.

At €29.7 billion on 30 June 2016, the backlog represented over 4 years of sales.

Key figures

Actual figures
(in € million)
2015/16
Q1
2016/17
Q1
Var. actual
Q1/Q1
Var. organic
Q1/Q1
Orders received 1,955 889 -55% -51%
Sales 1,602 1,747 9% 7%

Geographic and product breakdowns of reported orders and sales are provided in Appendix 1. All figures mentioned in this release are unaudited.

"Alstom booked only small contracts during the first quarter 2016/17. The low level of orders does not reflect the commercial activity that has been very strong and should translate into orders in coming quarters. For example, the projects for the extension of the Dubai metro or for regional trains for Italy recently announced have not yet been booked. Sales grew by 7% organically compared to the first quarter 2015/16 thanks to achievement of several project milestones.", said Henri Poupart-Lafarge, Alstom's Chairman & Chief Executive Officer.

Detailed Review

During the first quarter of 2016/17, Alstom recorded an exceptionally low level of orders of €889 million, composed only of small contracts and with no order above €100 million. Last year, Alstom booked €1,955 million of orders for the first quarter.

Sales, at €1,747 million, were up 9% (7% organically) in the first quarter 2016/17 compared to the same period last year. Sales deliveries were mainly driven by regional, high-speed and suburban trains in France, regional trains in Italy, Germany and Sweden, progressive ramp-up of the PRASA project in South Africa, maintenance of high speed trains in the UK as well as a signalling project in Canada.

Main events

In line with the first pillar of its 2020 Strategy, Alstom reinforced its local network with several acquisitions and partnerships in April 2016. The Group completed the acquisition of CTLE shares (Commuter Transport & Locomotive Engineering), reinforcing its local presence in South Africa. Alstom also signed a frame agreement to extend Cital's activities and locally produce Coradia regional and intercity trains for Algeria. Lastly, Alstom took control of Cabliance in Morocco by acquiring Nexans stake.

Objectives for 2020 confirmed

By 2020 sales should grow organically by 5% per year.

Adjusted EBIT margin should reach around 7% by 2020 driven by volume, portfolio mix and results of operational excellence actions.

*

By 2020, Alstom expects c. 100% conversion from net income into free cash flow.

About Alstom

As a promoter of sustainable mobility, Alstom develops and markets systems, equipment and services for the railway sector. Alstom manages the widest range of solutions in the market – from high-speed trains to metros and tramways – customised services (maintenance, modernisation,…) and infrastructure and signalling solutions. Alstom is a world leader in integrated railway systems. It recorded sales of €6.9 billion and booked €10.6 billion of orders in the 2015/16 fiscal year. Headquartered in France, Alstom is present in over 60 countries and employs 31,000 people today. www.alstom.com

Press contacts

Linda Huguet – Tel. + 33 1 57 06 10 42 [email protected]

Justine Rohée – Tel. + 33 1 57 06 18 81 [email protected]

Investor relations

Selma Bekhechi – Tel. + 33 1 57 06 95 39 [email protected]

Julien Minot – Tel. + 33 1 57 06 64 84 [email protected]

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
(in € million)
2015/16
Q1(*)
%
Contrib.
2016/17
Q1
%
Contrib.
Europe 619 32% 377 42%
Americas 346 18% 278 31%
Asia / Pacific 293 15% 222 25%
Middle East
/ Africa
693 35% 12 1%
ORDERS BY DESTINATION 1,955 100% 889 100%
Actual figures 2015/16 % 2016/17 %
(in € million) Q1(*) Contrib. Q1 Contrib.
Europe 950 59% 1,104 63%
Americas 243 15% 273 16%
Asia / Pacific 161 10% 165 9%
Middle East
/ Africa
248 15% 205 12%
SALES BY DESTINATION 1,602 100% 1,747 100%

(*) In comparison with Q1 2015/16 publication, Kazakhstan and Azerbaijan were represented and moved from Europe to Middle East/Africa.

APPENDIX 1B – PRODUCT BREAKDOWN

Actual figures 2015/16 % 2016/17 %
(in € million) Q1 Contrib. Q1 Contrib.
Trains 649 33% 280 31%
Services 763 39% 400 45%
Systems 45 2% 8 1%
Signalling 498 25% 201 23%
ORDERS BY DESTINATION 1,955 100% 889 100%
Actual figures 2015/16 % 2016/17 %
(in € million) Q1 Contrib. Q1 Contrib.
Trains 835 52% 844 48%
Services 393 25% 361 21%
Systems 161 10% 218 12%
Signalling 209 13% 324 19%
SALES BY DESTINATION 1,602 100% 1,747 100%

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