Half year results Fiscal Year 2021/22

10 November 2021

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 forward-looking statements. These such forwardlooking 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.
Any reference in this document to variations «Pro forma like-for-like», on orders and sales, correspond to a combined, non-audited, group vision including Alstom legacy fiscal year 2020/21 for the 1st Semester and legacy Bombardier Transportation contribution for 6 months of their fiscal year 2020 (April to September 2020) and are in line with Alstom accounting methods. The variations calculated using these combined figures exclude any scope and Forex adjustments.

Agenda

H1 2021/22 highlights
Business update
H1 2021/22 financial results

• Conclusion and outlook

© ALSTOM SA, 2021. 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 or disclosure to third parties, without express written authorisation, is strictly prohibited. 4

Solid H1 2021/22 results in line with Capital Markets Day on July 6 th 2021

Solid commercial performance in H1 2021/22 with book-to-bill above 1.3
Backlog at €76.4bn
- Very large pipeline and strong mid-term rail market perspectives, with Alstom unique competitive positioning thanks to confirmed complementarities on portfolio of technologies and footprint
- Sales increase at +14% compared to last year proforma,
Costs synergies confirmed, in line with capital markets day roadmap, resulting in S&A ratio improvement in H1 2021/22

Progressive aEBIT recovery
As anticipated, FCF impacted by non-recurring working capital build-up

After 8 months, Bombardier Transportation integration fully on track

© ALSTOM SA, 2019. 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 or disclosure to third parties, without express written authorisation, is strictly prohibited. 6

Acceleration of market momentum with more than 400 identified opportunities exceeding €100m each around the world until 2024/25

Alstom best positioned to capture growth in all strategic markets thanks to global reach

Very solid order intake driven by large orders and sustained commercial momentum across regions and product lines

5.4 9.7 H1 2020/21 proforma H1 2021/22 5.0 1.5 2.2 1.0 H1 2021/22 Signalling Systems Services Rolling stock 9.7 +81% 6.3 2.3 1.0 0.1 H1 2021/22 AMECA APAC Americas Europe 9.7

Sound commercial activity with Europe and Americas fueling the growth
Healthy margin on order intake
Book-to-bill above 1.3

ORDERS H1 2021/22 (IN €BN)

• Strong backlog at €76.4 billion

Main contracts in H1 2021/22

NEW S-BAHN HAMBURG (SUBURBAN - GER)

METRO SYSTEM ILE-DE-FRANCE (TURNKEY - FRA)

METRO SYSTEM TAIPEI (TURNKEY - TAI)

DSB FREMTIDENS TOG (REGIONAL AND SERVICES - DEN)

RER MI NG (SUB-URBAN – FRA)

TORONTO LRV (LIGHT RAIL - CAN)

TREN MAYA (TURNKEY AND SERVICES - MEX)

STUTTGART ETCS (SIGNALLING - GER)

Progressive sales ramp-up with focus on projects stabilisation

Recovery from last year lockdown impact
Expected sales progression in H2 2021/22 vs H1 2021/22

SALES H1 2021/22 (IN €BN) H1 2021/22 SALES SPLIT BY PRODUCT LINES

Rolling Stock

€4,285m ● Progressive ramp-up of rolling stock projects

€1,559m

● Traffic pick-up with positive impact on activity level

Systems

€1,077m

● Sound execution with some project phasing and ramp-up expected in H2

€522m

● Sales resuming growth with ramp-up of contracts in Egypt, Thailand and Canada

Progress on projects stabilisation, paving the way for profitability improvement in line with capital markets day

ACTIONS UNDERTAKEN

Successful project take-over at all levels of organization
Sustained level of engineering activity
Task forces to turn-around legacy projects
Positive feedback from customers
Expected signing of clients settlements
Meaningful technical progress on number of projects
Progressive ramp-up of production (H2 vs H1 2021/22)
Confirmed execution of non-performing projects in the next

Progressive improvement of backlog profitability

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

Mitigating turbulences on the supply chain

Supply chain shortages

Electronic components shortage disruptions to be addressed in H2
Tension on transportation and logistic cost

Components and raw materials price inflation

Raw material price increase: steel, copper, aluminium
Impacting also procured subsystems and components

Mitigation actions

Dedicated task force implemented (demand/allocation)
Long term contracts with international freight forwarders
Application of back to back Price Escalation formula
Dedicated negotiations and order strategy for long term contracts

No material impact on Sales nor on aEBIT as of H1 2021/22 thanks to mitigation actions

Clear global integration roadmap, fully on-track

	Feb 2021	Sept 2021	Mar 2022	Mar 2023	Mar 2024

	Commercial	One face to customer, Business continuity, record-high hit rate	Enhanced offering, business development based on customers	positive feedback on merger (96%)
	Products convergence	Portfolio benchmarks and selection for tenders and R&D	Integrated R&D plan with focus on core technology		Innovation roadmap deployment
	Processes convergence	40% done. Tender and Project management, Engineering governance and Quality deployed	80% completed Supplier audit, Planning management	100% completed
	IS / IT integration	Digital Factory roadmap done	Full IT integration, Roll-out of Digital Factory One single integrated Project Management Tool
	Synergies	Quick wins, governance, Actions tracking and first results	Full-scale deployment of synergies plan and progressive ramp-up
One Alstom team	People & Change	Culture gaps diagnostic, Organisation deployed	Deployment of long-term culture and change roadmap

Commercial synergies already kicking-in

Winning product and footprint combination

TREN MAYA (TURNKEY - MEX)

Alstom X'Trapolis and BT bogie, manufacturing in Sahagun site

Winning product and commercial combination

CAIRO L1 (METRO - EGYPT)

Alstom Metropolis and BT local setup leveraging on Monorail

Alstom latest electronic controller on BT platforms

Alstom product standardisation and scale-up

Robust roadmap launched to achieve €400m cost synergies run rate¹

1 Objective to generate €400 million cost synergies on annual run rate basis by the fourth to fifth year after closing of the acquisition of Bombardier Transportation on 29 January 2021

Alstom's ambition to lead the way to greener and smarter mobility confirmed during H1 2021/22

Worldwide cooperation agreement with Airbus CyberSecurity
Investment in the world's first cybersecurity campus with a rail focus

World 1st contract for Automatic Train Operation for Mainline in high-traffic Stuttgart network
Only player winning contract with trainto-train technology (Line 18 of the Île-de-SIGNALLING France network)

Alstom pursued during H1 2021/22 its ambition to offer further decarbonated and inclusive mobility

POWER CAR UNVEILED BY PRESIDENT MACRON IN SEPTEMBER 2021

H2 TRAIN TESTED IN POLAND, SWEDEN AND FRANCE

Coradia iLint near Wrocław

+ BATTERY-POWERED TRAIN DEMONSTRATION JOURNEY IN GERMANY

Battery train in Chemnitz

AVELIA HORIZON™

-30% maintenance costs

+20% seats capacity

-20% energy consumption

Alstom pursued its ambition to decarbonate further mobility and impact positively society in 2020/21¹

38 projects in 24 countries selected in October 2021

Full commitment to CO2 emission reduction targets under Paris Agreement

Leadership in ESG confirmed and rewarded with the inclusion in the CAC40 ESG® index in September 2021

1 All information in this slide are for Alstom legacy

© ALSTOM SA 2021. 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. 18

aEBIT benefits from controlled S&A and R&D costs

(in € million)	H1 2021/22
Sales	7,443
Cost of Sales	(6,494)
Adjusted Gross Margin before PPA¹	949
Research and development expenses before PPA¹	(220)
Selling & Administrative expenses	(471)
Net interest in equity investees pickup²	77
Adjusted EBIT	335
Adjusted EBIT margin	4.5%

Gross Margin impacted by the nonperforming BT legacy backlog trading
R&D within trajectory announced at capital markets day, with lower H1 vs H2 2021/22
S&A ratio improved by 1.3pp vs Alstom legacy structure.
Sustained performance of Chinese JVs

1 definition in Appendix 2 This mainly includes Chinese joint-ventures

Income statement

(in € million)	H1 2021/22
Sales	7,443
Adjusted EBIT	335
Adjusted EBIT margin	4.5%
Restructuring and rationalisation costs	(47)
Integration, acquisition and other costs	(32)
Reversal of net interest in equity investees pickup¹	(77)
EBIT before PPA	179
Financial results	(20)
Tax results	(43)
Share in net income of equity investees	65
Minority interests from continued op.	(9)
Adjusted Net profit²	172
PPA net of tax	(196)
Net Profit - Continued operations, Group share	(24)

Restructuring and rationalisation costs consisting mainly of expenses related to the closure of Aptis
Integration costs including synergies implementation costs
Effective Tax Rate before PPA stable at 27%

¹ This mainly includes Chinese joint-ventures 2 net profit from continued operations (Group share) excluding 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.

As anticipated, FCF impacted by non-recurring working capital build-up

● Anticipated adverse operating working capital change :

Production ramp-up impacting inventories, trade receivables and contract assets/(liabilities)

Payable terms of payments normalization

Contained Capex expenses with favorable phasing in H1
Unchanged assessment of provision for risks on BT legacy contracts²

In line with capital markets day on July 6, 2021

22 1 €1,697 million change in working capital corresponds to the €1,763 million changes in working capital resulting from operating activities disclosed in the condensed interim consolidated financial statements from which the €66 million variations of restructuring provisions and of corporate tax and other tax have been excluded. 2 Refer to note 1.1 of Financial Statements

Evolution of main balance sheet aggregates as of 30 September 2021

(in € million)	At Sept 2021	At March 2021	Evolution
Goodwill	9,331	9,200	131
Tangible & Intangible assets	5,417	5,350	67
Investments in joint-ventures, associates & non conso investments	1,581	1,543	38
Other non-current assets	510	435	75
Deferred tax assets / (liabilities)	251	433	(182)

Net Equity	(9,194)	(9,117)	(77)
Pensions	(1,322)	(1,359)	37
Current and non current lease obligations	(766)	(751)	(15)
Net cash / (debt)	(2,526)	(899)	(1,628)
Working capital	(3,198)	(4,548)	1,350
Assets / (liabilities) held for sale	(83)	(287)	204

Net debt increase mainly linked to Free Cash Flow
Limited PPA change as of 30 Sept 2021:

Decrease in deferred tax net assets linked to the allocation to countries of all PPA adjustments

Decrease of Assets and Liabilities held for sale in application of IFRS 5

Positive adjustments made on intangibles following deeper analysis of business plans

● Marginal goodwill increase

Evolution of net cash/(debt)

NET CASH / (DEBT) (IN € MILLION)

Negative FCF

Acquisition of Flertex and Helion

Standard other elements (dividends, lease…)

1 Net cash/(debt) at the end of the period = (2,526)m = Cash and cash equivalents for €1,139m + Other current financial assets for €37m – Current financial debt for €1,074m – Non-current financial debt for €2,628m

Sound liquidity and long-term financing structure implemented for the integration period

MOODY'S BAA2 OUTLOOK NEGATIVE CONFIRMED IN JULY 2021 LARGE HEADROOM ON NEU CP² PROGRAMME

● Commitment to Investment Grade

1 €1,500 million long term Revolving Credit Facility maturing in October 26 with a 1-year extension option at lenders discretion remaining. A first one-year extension option has been successfully exercised in September 2021 with all lenders' consent. And €1,750 million short term Revolving Credit Facility having a remaining 10-month maturity, and two 6-month extension options at the borrower's discretion up to Aug 2023. 2 Negotiable European Commercial Papers

A STRONG LIQUIDITY POSITION (IN € MILLION) LONG-TERM MATURITY OF OUTSTANDING BONDS

Increased at €2,500 million in July
€750m outstanding, all with maturities before 31 March 2022

Key priorities for H2 2021/22

COMMERCIALS EXECUTION

Continue to leverage on market momentum
Selectivity on order intake. Accelerate the backlog transformation
Finalize main clients settlements

INNOVATE

● New R&D plan based on integrated teams and capabilities

● Navigate the supply chain shortages and raw materials price challenges

Deliver the ramp-up of production
Accelerate execution of the legacy projects
Operational and technical stabilization
Keep costs under control

PEOPLE

● Integrate / Train / Retain

INTEGRATION

● Complete processes convergence

Pursue stabilization efforts and prepare the company for the new cycle

Conclusion and Outlook

Mid-term targets confirmed

Financial trajectory fully confirmed as per capital markets day on July 6, 2021

Contacts & Agenda

H1 2021/22 Sales per regions and product lines

Sales breakdown per regions (in € million)

Sales breakdown per product line (in € million)

H1 2021/22 backlog per regions and product lines

Backlog breakdown per regions

Backlog breakdown per product line

Equity in € million

* Out of which €119m of actuarial gains and losses of pensions net of tax effect ** capital increase by issuance of new shares linked with scrip dividend

Reconciliation between consolidated income statement and the MD&A management view as of 30 September 2021

(in € millions)	Total Etats Financiers Consolidés		Adjustments
	(GAAP)	(1)	(2)	(3)	State ment (Manage ment View)
September 30, 2021
Sales	7,443				7,443
Cost of sales	(6,694)	179	21		(6,494)
Adjusted Gross Margin before PPA (1)(2)	749	179	21		ਰੇਖ ਰ
R&D expenses	(258)	38			(220)
Selling expenses	(162)				(162)
Administrative expenses	(309)				(30a)
Equity pick-up				77	77
Adjusted EBIT (1)(2)	20	217	21	77	335
Other income / (expenses)	(28)		(21)		(79)
Equity pick-up (reversal)				(77)	(77)
EBIT / EBIT before PPA (2)	(38)	217			179
Financial income	6				6
Financial expenses	(26)				(26)
Pre-tax income	(58)	217			159
Income tax Charge	(22)	(21)			(43)
Share in net income of equity-accounted investments	દિદ				દિક
Net profit (loss) from continued operations	(12)	196			181
Net (profit) loss attributable to non controlling interests	(a)				(a)
Net profit (loss) / Adjusted Net Profit (loss) (2)	(24)	196			172
Purchase Price Allocation (PPA)		(196)			(196)
Net profit (loss) from discontinued operations	(2)				(2)
Net profit (Group share)	(26)				(26)

Adjustments as of 30 September 2021:

1. Impact of business combinations: amortisation of assets exclusively valued when determining the purchase price allocation (PPA), 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 b part of operating activities of the Group.

Reconciliation between consolidated income statement and the MD&A management view as of 30 September 2020

(in € millions)	Total Etats	Ajustements			Total Adjusted
	Financiers				Income
	Consolidés				Statement
	(GAAP)	(1)	(2)	(3)	(Management
					View)
30 septembre 2020
Sales	3,518				3,518
of Cost sales	(2,952)		68		(2,884)
PPA (1)(2) Adjusted Margin before Gross	566	-	6 8	-	634
R&D expenses	(125)				(125)
Selling expenses	(101)				(101)
Administrative expenses	(169)				(169)
Equity pick-up	-			24	24
EBIT (1)(2) Adjusted	171	-	6 8	24	263
Other income (expenses) /	19	7	(68)		(42)
Equity pick-up (reversal)	-			(24)	(24)
PPA (2) EBIT / EBIT before	190	7	-	-	197
Financial income	1				1
Financial expenses	(24)				(24)
Pre-tax income	167	7	-	-	174
Income tax Charge	(38)	(1)			(39)
Share in net income of equity-accounted investments	3 7				3 7
Net profit (loss) from continued operations	166	7	-	-	173
Net (profit) loss attributable to non controlling interests	(5)				(5)
(2) Net profit (loss) Adjusted Net Profit (loss) /	161	7	-	-	168
Purchase Price Allocation (PPA)	-	(7)			(7)
Net profit (loss) from discontinued operations	9				9
(Group share) Net profit	170	-	-	-	170

Note: (1) figures not reported as such in the income statement

Note: (2) Alternative performance indicator for management reporting only

Adjustments as of 30 September 2020:

1. Impact of business combinations: amortisation of assets exclusively valued when determining the purchase price allocation (PPA), including corresponding tax effect;
1. Impact from Covid-19 reclassified as non- recurring items;
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 1 - 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 joint-venture for Alstom as well as, following the integration of Bombardier Transportation, Bombardier Sifang (Qingdao) Transportation Ltd and Bombardier NUG Propulsion System Co. 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 amortization 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 1 - Non-GAAP financial indicators definitions (2/2)

● EBIT before PPA

Following the Bombardier Transportation acquisition and with effect from these Fiscal year 2021/22 condensed interim 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

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. 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.

● Net cash/(debt)

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

● Pro forma like-for-like New Alstom

The "Pro forma like-for-like New Alstom" 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 "Pro forma like-for-like New Alstom" variations, sales, are extracted from the historical accounts of Alstom and Bombardier Transportation respectively. In order to ensure the comparability of the results, the pro forma restatements as presented in chapter 3 of the URD "Unaudited Pro Forma 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 and Q2 2020/21 of Bombardier Transportation were converted at the average quarterly foreign exchange rate EUR/USD of 1/1.1004 for Q1 and 1/1.1648 for Q2, communicated in Bombardier Inc Q2 and Q3 2020 financial report. Orders received Q1 2020/21 and Q2 2020/21 of Bombardier Transportation were converted at the quarterly closing foreign exchange rate EUR/USD of 1/1.1284 for Q1 and 1/1.1702 for Q2, as communicated in Bombardier Inc Q2 and Q3 2020 financial report.