Full Year Results Fiscal Year 2022/23

10 May 2023

Disclaimer

This presentation 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 forwardlooking 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 presentation 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.

Henri Poupart-Lafarge, Chairman and CEO

Conclusion Henri Poupart-Lafarge, Chairman and CEO

© ALSTOM SA 2023. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should be relied on that it is complete or correct or will apply to any particular project. This will depend on the technical and commercial circumstances. It is provided without liability and is subject to change without notice. Reproduction, use, alter or disclosure to third parties, without express written authorisation, is strictly prohibited.

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FY 2022/23 Highlights

Henri Poupart -Lafarge Chairman and CEO

Highlights – A global leader in a buyoant market

Highlights – Financial Results delivered

FY 2022/23 RESULTS FULLY IN LINE WITH GUIDANCE

FY 2023/24 OBJECTIVES :

aEBIT : ~6%
FCF : Significantly positive

MID-TERM TARGETS TO BE REACHED IN FY 2025/26 MAINLY DUE TO MACRO ENVIRONMENT

Solid FY 2022/23 results, fully in line with guidance provided

Environmental figures are reported on a calendar year basis: FY 2021/22 corresponds to 2021 calendar year. Based on last 12 Rolling Months.
Women in Management and professional positions

Market opportunities underpinned by a strong business case for operators and continuous stimulus packages

GLOBAL RIDERSHIP LEVEL 2019 - 2022

ERTMS, European Rail Traffic Management System

Market potential confirmed on all product lines: > €220bn until FY 2025/26

Acceleration of market momentum with €120bn of opportunities in the next 18 months

Compared to March 2022

Solid Order intake supporting trajectory

ORDERS FY 2022/23 (in €bn)

€40bn orders since merger
Book-to-bill 1.25, backlog above €87bn

● Margin and cash on order intake supporting short and mid-term trajectory

Contract win momentum

€10.6 billion of orders booked in H2 2022/23

Newark (SERVICES - US)

E-loco KTZ 6th batch (LOCOS & MAINTENANCE-Kazakhstan)

RER Toronto (Turnkey – Canada)

MARC (SERVICES - US)

RER NG (REGIONAL- France) LAR Extension (SIGNALLING - Hong Kong)

Strong sales progress, driven by Systems and Services

● Growth across all regions notably from Americas, Asia-Pacific and Africa – Middle-East

SALES FY 2022/23 (in €bn) FY 2022/23 SALES SPLIT BY PRODUCT LINES

ROLLING STOCK: €8,784m (+2% vs FY 2021/22) Continued execution of large projects mainly in Europe

SERVICES: €3,817m (+12% vs FY 2021/22) Growth in Europe maintenance and Trains operations & System Maintenance services in Americas

SIGNALLING: €2,430m (+7% vs FY 2021/22) Stable execution in Europe & APAC, growing performance in Germany

SYSTEMS: €1,476m (+28% vs FY 2021/22) Acceleration in execution (Cairo Monorail, Tren Maya, Thailand monorails)

Progress on carbon reduction Scopes 1 and 2

138 230 179 Target Actual (22)%

Very good progress
Levers : sites energy efficiency, supply and on-site production of renewables

SCOPE 1 & 2 EMISSIONS (in ktCO2) SCOPE 3 EMISSIONS- use of Sold Products (in g.CO2/passenger.km and g.CO2/freight-ton.km)

Stable performance countries' decarbonisation plans slow in some key markets
Levers : Solutions' energy efficiency, alternatives to diesel, customer engagement

EU Taxonomy Alignment – our contribution to decarbonisation of transport

Positive progress on Commitments to Society

	KPIs	March 2023	March 2025
ENABLING decarbonisation of mobility	Energy reduction in solutions1 ● Electricity supply from renewables ● % of newly-developed solutions eco-designed ● % of circular (recycled) content in newly-developed trains ●	23.4% 57% 65% 22.5%	25% 100%2 100% 25%
CARING for our people	Total recordable injury rate ● Top Employer certification ● Learning culture: hours per year and employee ●	1.8 Global 22.2	2 Global 22
CREATING a positive impact on society	Beneficiaries per year from local actions and Alstom ● foundation Countries with CSR Label (AFNOR) ●	299,000 7	250,000 12
ACTING as a responsible business partner	Suppliers monitored or assessed on CSR and E&C standards ● according to their level of risk Suppliers trained in sustainability and CSR ●	74% 202	100% 500

Several 2025 targets already achieved

Accelerating Innovation

GREEN TRACTION

IPCEI on H2

5.2% LEVERAGE TECHNOLOGICAL ADVANTAGE

DIGITAL

Cybersecurity

BEST-IN-CLASS IN ALL GEOGRAPHIES

NEW PLATFORMS

Train autonomy High Speed, Urban

GET READY FOR DEMAND INCREASE

BOOST PORTFOLIO WITH MOST INNOVATIVE SOLUTIONS R&D investment to reach 3.5% of sales in FY 2023/24

Financial Results

Laurent Martinez Chief Financial Officer

Strong commercial momentum driving sales and aEBIT trajectory

(in € million)	FY 2021/22	FY 2022/23	Evolution
Sales	15,471	16,507	+7%
Cost of Sales	(13,323)	(14,182)	+6%
Adjusted Gross Margin before PPA¹ As a % of sales	2,148 13.9%	2,325 14.1%	+20bps
Research and development expenses before PPA2 As a % of sales	(530) 3.4%	(519) 3.1%	(2)%
Selling & Administrative expenses As a % of sales	(996) 6.4%	(1,096) 6.6%	+10%
Net interest in equity investees pickup3	145	142	(2)%
Adjusted EBIT ¹	767	852	+11%
Adjusted EBIT margin¹	5.0%	5.2%	+20bps

Definition in Appendix
Excluding €(61) million of amortisation expenses of the purchase price allocation of Bombardier Transportation.
Definition in Appendix. This mainly includes Chinese joint-ventures

In line with guidance provided

Inflation peak in FY2022/23 Strong action plan in place, impact moderating thereafter

aEBIT to Net Income

(in € million)	FY 2021/22	FY 2022/23	Evolution
Sales	15,471	16,507	+7%
Adjusted EBIT	767	852	+11%
Adjusted EBIT margin	5.0%	5.2%	+20bps
Restructuring and rationalisation costs	(138)	(65)	(53)%	Integration costs €181m
Integration, acquisition and other costs	(209)	(279)	+33%	Legal fees €43m
Reversal of net interest in equity investees pickup¹	(145)	(142)	(2)%	Remedies €30m
EBIT before PPA and impairment	275	366	+33%	FX / hedge and fees + €35m
Financial results	(25)	(103)	x3.1	Net effect of interest rates + €35m
Tax results	(68)	(70)	+3%	ETR 27%
Share in net income of equity investees	(334)	123	-	Stability on Chinese JVs.
Minority interests from continued op.	(21)	(24)	+14%	FY2021/22: TMH impairment for €441m
Adjusted Net profit2	(173)	292	-
PPA net of tax	(403)	(420)	(4)%
Net Profit - Continued operations, Group share	(576)	(128)	-

1 This mainly includes Chinese joint-ventures

2 Definition in appendix

Free Cash-flow of c. €200m driven by profit increase

**From EBIT* to Free Cash Flow** (in € million)

* EBIT Before PPA and impairment

1 Change in Working Capital for €(219)m corresponds to the €(167) million changes in working capital resulting from operating activities disclosed in the consolidated financial statements from which the €(12) million variations of restructuring provisions and €(40)m of variation of Tax working capital have been excluded

Working Capital evolution reflecting activity growth

(in € million)	31 March 2022	31 March 2023	Variation
Contract assets	3,846	4,533	+687
Inventories	3,274	3,729	+455
Contract liabilities	(6,155)	(6,781)	(626)
Trade payables	(3,323)	(3,640)	(317)
Trade receivables	2,747	2,670	(77)
Other current assets/liabilities	(1,972)	(2,175)	(203)
Working Capital before provisions As a % of sales	(1,583) (10%)	(1,664) (10%)	(81)
Provisions Of which Risks on contracts	(2,403) (1,361)	(2,221) (1,182)	+182 +179
Working Capital	(3,986)	(3,885)	+1011

Overall evolution consistent with activity growth and production ramp-up
Contract liabilities driven by healthy downpayments
Other payables €1,439m vs €1,503m as of March 2022
France change in VAT regulation impacting contract assets, Trade receivables and Other current liabilities, mainly non-cash
Specific downpayment scheme at €198m vs €471m as of March 2022
Suppliers with extended payment terms at €303m vs €324m as of March 2022
Tax factoring €159m vs €167m as of March 2022

Of which €231m of provisions application

(1) As per note 16, Total changes in working capital for €101m include €167m changes in working capital resulting from operating activities and €(66)m Others non-cash, mainly Forex

Sound and stable liquidity position

(IN € MILLION)

4,787

● No financial covenants on any debt

● €248m Neu CP as of March 2023 (vs. €250m as of March 2022 and €357m as of September 2022)

31 March 2023

Negotiable European Commercial Papers.
€1,750 million Revolving Credit, extension at the lenders' discretion. This facility is undrawn at March 2023 closing. €2,500 million Revolving Credit, extension at the lenders' discretion. This RCF is a backstop to Neu CP programme.

Net debt evolution (in € million)

Favorable long-term debt profile

No financial covenants and fixed coupons on all bonds
Favorable maturity profile given the current market conditions
Baa3 rating with stable outlook, with no impact on financial trajectory
Net liability reducing from €852m to €607m

March 2022 March 2023

Strong commitment of Alstom to Investment Grade rating

FY2022/23 dividend stable

DIVIDEND 2022/23

Dividend¹ of 0.25€ per share with 33% payout ratio² will be proposed to the next shareholders' meeting

1 Option for scrip dividend will be proposed 2 The pay-out ratio is calculated by dividing the amount of the overall dividend with the Adjusted net profit as presented in the management report on the consolidated financial statements

Trajectory and outlook

Laurent Martinez CFO

Sales trajectory in line with previous guidance

SALES (IN € BILLION)¹

Sales from future orders
€87bn backlog providing strong visibility over future sales
Growth expected to be well balanced between volume and value
€38 to €40bn sales of next three years secured from backlog
Contribution from all product lines
Signalling, Systems and Services to reach ~50% of Group sales by FY 2025/26

1 graph for illustrative purpose, not at scale

Improved backlog quality consistent with mid-term guidance

Quality of order intake

Margin on new orders within 8% 10% aEBIT range
Gross Margin in backlog on-track to progress at 50bps per annum

Gradual decrease of legacy backlog

● Ramp-down of low-margin Rolling Stock contracts and expected progressive improvement of legacy backlog contribution

Non-performing sales

● Trajectory of reduction post FY 2023/24 confirmed

Margin trajectory supported by improving backlog quality

1 bar chart for illustrative purpose, not at scale 2 representing sales on projects with a negative margin at completion

Synergies on-track with announced trajectory

© ALSTOM SA 2023. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should be relied on that it is complete or correct or will apply to any particular project. This will depend on the technical and commercial circumstances. It is 1. graph for illustrative purpose, not at scale 2. Initial target was annual run rate of €400m by the fourth to fifth year after closing

provided without liability and is subject to change without notice. Reproduction, use, alter or disclosure to third parties, without express written authorisation, is strictly prohibited.

From improved sales mix to improved margin

EPS trajectory

Adjusted Earnings Per Share¹

KEY DRIVERS

Integration costs decreasing to ~nil in FY 2025/26
Restructuring to significantly reduce
FY 2022/23 one-offs not to be repeated next years:
- o Remedies divestments
- o Legal fees
- o Financial and tax expenses to increase

1. From Adjusted Net Profit

Cash trajectory – Momentum towards 80% conversion

Conclusion

Chairman and CEO Henri Poupart -Lafarge

Alstom business geared to 8-10% aEBIT and > 80% cash conversion

Book to bill above 1
CAGR¹ on Sales above 5%

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.

^1. CAGR between Sales proforma FY 2020/21 and FY 2025/26

^2. From FY 2025/26 onwards. Subject to short term volatility

Confirmed Leadership and significant de-risking of our portfolio

Contacts & Agenda

Martin VAUJOUR VP Investor Relations

Estelle MATURELL ANDINO Deputy Head Investor Relations

[email protected]

10 May 2023 – 15.00 PM CET Alstom Investor Day

11 July 2023 Shareholders' assembly

25 July 2023 First quarter FY23/24 orders and sales

Financial Calendar – FY 2022/23 Roadshows

May 11	FY 2022/23 Roadshow in London – Deutsche Bank	London, UK
May 12	FY 2022/23 Roadshow in Paris – ODDO BHF	Paris, FRANCE
May 15	FY 2022/23 Roadshow in Milano – Kepler Cheuvreux	Milano, ITALY
May 15	FY 2022/23 Roadshow in Frankfurt – Jefferies	Frankfurt, GERMANY
May 16	FY 2022/23 Roadshow in Zurich – Jefferies	Zurich, SWITZERLAND
May 17	FY 2022/23 Roadshow in Geneva – Jefferies	Geneva, SWITZERLAND
May 19	FY 2022/23 Roadshow in Dublin – Kepler Cheuvreux	Dublin, IRELAND
May 22	FY 2022/23 Roadshow in New York – Redburn	New York, US
May 23	FY 2022/23 Roadshow in Toronto – Redburn	Toronto, CANADA
May 24	FY 2022/23 Roadshow in Chicago – Redburn	Chicago, US
May 25 – 26	FY 2022/23 Roadshow in San Francisco / Los Angeles – Redburn	San Francisco / LA, US
May 30	FY 2022/23 Roadshow in Madrid – Santander	Madrid, SPAIN
May 31	FY 2022/23 Roadshow in Lyon – CIC Market Solutions	Lyon, FRANCE
June 1	3 rd Digital ESG Conference – Kepler Cheuvreux	Virtual
June 2	FY 2022/23 Fireside chat – Kepler Cheuvreux	Virtual

Financial Calendar – Where to meet us in 2023 ?

June 7	CEO conference – BNPP Exane	Paris, FRANCE
June 9	European Capital Goods – JP Morgan	London, UK
June 12 – 13	Roadshow Asia – Tokyo – Mizuho	Tokyo, JAPAN
June 14 - 16	Roadshow Asia – Tapei/ Singapore/ Hong-Kong – HSBC	Asia
June 20 - 21	Investors Site Visit - Alstom	La Rochelle, FRANCE
September 7	CEOs unplugged – Morgan Stanley	London, UK
September 12	Autumn conference – Kepler Cheuvreux	Paris, FRANCE
September 15	Quo Vadis Industrial Tour Conference - UBS	Virtual
September 20	Sustainability Summit – Norges, T. Rowe Price & Fidelity International	London, UK
September 27	ESG large caps conference - Société Générale	Paris, FRANCE
November 15-28	HY roadshows (London, Paris, Frankfurt, Zurich, Madrid, Dublin and US/Canada)
November 29	CEO Conference - Redburn	Virtual
November 30	The Premium Review - Société Générale	Paris, FRANCE
December 4	European Industrials – Goldman Sachs	London, UK

FY 2022/23 backlog per regions and product lines

Backlog breakdown per regions (in € million)

Backlog breakdown per product line (in € million)

FY 2022/23 Sales per regions and product lines

Sales breakdown per regions (in € million)

Sales breakdown per product line (in € million)

Sales by currency

Currencies	FY 2022/23 as a % of sales
EUR	46.9%
USD	13.5%
GBP	12.0%
AUD	4.9%
INR	4.7%
ZAR	2.7%
SEK	2.6%
CAD	2.2%
SGD	1.4%
CHF	1.2%
MXN	1.2%
Currencies below 1% of sales	6.7%

Equity in € million

© ALSTOM SA 2022. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should be relied on that it is complete or correct or will apply to any particular project. This will depend on the technical and commercial circumstances. It is provided without liability and is subject to change without notice. Reproduction, use, alter or disclosure to third parties, without express written authorisation, is strictly prohibited.

Bridge consideration – From Entreprise Value to Equity Value

(in € million)	FY 2022/23
Total Gross debt, incl. lease obligations (1)	3 579
Pensions liabilities net of prepaid and deferred tax asset related to pensions (2)	582
Non controlling interest (3)	105
Cash and cash equivalents (4)	(826)
Other current financial assets (4)	(65)
Other non-current financial assets (5)	(56)
Net deferred tax liability / (asset) (6)	(443)
Investments in associates & JVs, excluding Chinese JVs (7)	(123)
Non-consolidated Investments (8)	(82)
Bridge	2 671

(1) Long-term and short-term debt and Leases (Note 27), excluding the lease to a London metro operator for €119m due to matching financial asset (Notes 15 and 27)

(2) As per Note 29 net of €(25)m of deferred tax allocated to accruals for employees benefit costs (Note 8)

(3) As per balance sheet

(4) As per balance sheet

(5) Other non-current assets: Loans to Non-consolidated Investments for €29m and deposit on a US loan for €27m (Notes 15 and 27)

(6) Deferred Tax asset and Liabilities - as per balance sheet net of €(25)m of deferred tax allocated to accruals for employees benefit costs (Note 8)

(7) JVs - to the extent they are not included in equity pickup / FCF, ie excluding Chinese JVs.

(8) Non-consolidated investments as per balance sheet

Bombardier Transportation PPA provisional amortisation plan

(in € million)	As per P&L 1 Booking
FY 2020/21	(71)
FY 2021/22	(444)
FY 2022/23	(451)
FY 2023/24	(368)
FY 2024/25	(373)
FY 2025/26	(264)
FY 2026/27	(213)
FY 2027/28	(203)
FY 2028/29	(166)
FY 2029/30	(138)
FY 2030/31	(107)
FY 2031/32	(96)
FY 2032/33	(95)
Beyond	(189)

Higher than previously forecasted due to impairments in Germany

● The Gross PPA amortisation plan will be subject to FX evolution in future years or subject to potential impairments

Excludes PPA other than related to the purchase of Bombardier Transportation

Reconciliation between consolidated income statement and the MD&A management view as of 31 March 2023

(in € million)	Tota l	Adjustments				Tota l
	Con s olida ted Fin a n cia l Sta tem en ts (GAAP)	(1)	(2)	(3)	(4)	Con s olida ted Fin a n cia l Sta tem en ts (MD&A view)
31 March 2023
Sales	16,507					16,507
Cost of Sales	(14,541)	355		4		(14,182)
airment (*) Adjusted Gross Margin b efore PPA & imp	1,966	355	-	4	-	2,325
R&D expenses	(580)	6 1				(519)
Selling expenses	(375)	-				(375)
Administrative expenses	(721)	-				(721)
Equity pick-up	-				142	142
Adjusted EBIT (*)	290	416	-	4	142	852
Other income / (expenses)	(369)		29	(4)		(344)
Equity pick-up (reversal)	-	-	-	-	(142)	(142)
airment (*) EBIT / EBIT b efore PPA & imp	(79)	416	2 9	-	-	366
Financial income (expenses)	(103)					(103)
Pre-tax income	(182)	416	2 9	-	-	263
Income tax Charge	(34)	(34)	(2)			(70)
Share in net income of equity-accounted investments	112	1 1				123
Net profit (loss) from continued operations	(104)	393	2 7	-	-	316
Net profit (loss) attributable to non controlling interests (-)	(24)					(24)
Net profit (loss) from continued operations (Group share) / Adjusted Net Profit (loss) (*)	(128)	393	2 7	-	-	292
Purchase Price Allocation (PPA) & impairment net of corresponding tax effect	-	(420)				(420)
Net profit (loss) from discontinued operations	(4)					(4)
Net profit (Group share)	(132)	(27)	2 7	-	-	(132)

Adjustments as of 31 March 2023:

1. Impact of business combinations: amortisation of assets exclusively valued when determining the purchase price allocation (PPA), including net income of equity accounted investments, and including corresponding tax effect;
1. Impact of business combinations: impairment of assets exclusively valued when determining the purchase price allocation (PPA) linked to the restructuring plan in Germany (see Note 2.7 of the financial statements), including corresponding tax effect;
1. Impact of Aptis closure: reclassification of operational results as non-recurring items following Alstom's announced and planned discontinuance of Aptis activities;
1. Reclassification of share in net income of the equityaccounted investments when these are considered to be part of operating activities of the Group

Reconciliation between consolidated income statement and the MD&A management view as of 31 March 2022

(in € million)	Total Consolidated			Total Consolidated
	Financial					Financial
	Statements	(1)	(2)	(3)	(4)	Statements
	(GAAP)					(MD&A view)
31 March 2022
Sales	15,471					15,471
Cost of Sales	(13,746)	357	46	20		(13,323)
(*) Adjusted Gross Margin before PPA & impairment	1,725	357	46	20	-	2,148
R&D expenses	(604)	74				(530)
Selling expenses	(354)	-				(354)
Administrative expenses	(642)	-				(642)
Equity pick-up	-				145	145
EBIT (*) Adjusted	125	431	46	20	145	767
Other income / (expenses)	(281)		(46)	(20)		(347)
(reversal) Equity pick-up	-	-	-	-	(145)	(145)
(*) EBIT / EBIT before PPA & impairment	(156)	431	-	-	-	275
Financial income (expenses)	(25)					(25)
Pre-tax income	(181)	431	-	-	-	250
Income tax Charge	(27)	(41)				(68)
Share in net income of equity-accounted investments	(347)	13				(334)
Net profit (loss) from continued operations	(555)	403	-	-	-	(152)
(loss) (-) Net profit attributable to non controlling interests	(21)					(21)
(*) Net profit (loss) from continued operations (Group share) / Adjusted Net Profit (loss)	(576)	403	-	-	-	(173)
Purchase Price Allocation (PPA) net of corresponding tax effect	-	(403)				(403)
Net profit (loss) from discontinued operations	(5)					(5)
Net profit (Group share)	(581)	-	-	-	-	(581)

Adjustments as of 31 March 2022:

1. Impact of business combinations: amortisation & impairment of assets exclusively valued when determining the purchase price allocation (PPA), including net income of equity accounted investments, and including corresponding tax effect;
1. Impact of Aptis closure: reclassification of operational results as non-recurring items following Alstom's announced and planned discontinuance of Aptis activities;
1. Reclassification of other operational costs to nonrecurring items – none for the fiscal year 2021/22;
1. Reclassification of share in net income of the equityaccounted investments when these are considered to be part of operating activities of the Group

Appendix - Non-GAAP financial indicators definitions (1/2)

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.

• 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 PPA

Adjusted 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.

• 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, 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.

Appendix - Non-GAAP financial indicators definitions (2/2)

● EBIT before PPA

Following 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 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 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.

● Net cash/(debt)

The net cash/(debt) is defined as cash and cash equivalents, marketable securities and other current financial asset, less borrowings

● Organic basis

This presentation 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.

AI Terminal

Alstom

1099_iss_2023-05-10_c1a1ab4b-fff5-4c25-b046-d83615f7ce12.pdf