Professional Documents
Culture Documents
Paris - France
June 24 2019
Disclaimer
This presentation contains forward-looking statements which are based on current plans and forecasts of
Alstom’s management. Such forward-looking statements are by their nature subject to a number of
important risk 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.
ALSTOM – 24/06/2019 – P 2
© ALSTOM 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 authority, is strictly prohibited.
AGENDA
ALSTOM – 24/06/2019 – P 3
© ALSTOM 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 authority, is strictly prohibited.
Today’s speakers
ALSTOM – 24/06/2019 – P 4
© ALSTOM 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 authority, is strictly prohibited.
Alstom today, Market
perspectives, Strategy overview
Henri POUPART-LAFARGE – Chairman & CEO
2019 Capital Markets Day
ALSTOM – 24/06/2019 – P 5
© ALSTOM 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 authority, is strictly prohibited.
Alstom today
ALSTOM – 24/06/2019 – P 6
© ALSTOM 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 authority, is strictly prohibited.
2016 – 2019: establishing a successful rail pure player
CUSTOMER-FOCUSED ORGANISATION
ALSTOM – 24/06/2019 – P 7
© ALSTOM 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 authority, is strictly prohibited.
The most global player, a leader in all geographies, result of
outstanding growth
ALSTOM
CAGR
5.5%
Americas2 Asia Pacific Market4
#1 #2 2.3%
8.1
7.3 7.3
6.9
1.6
1.3 1.4
1.1
0.9
0.7 0.7 0.9
1.1 1.2 1.5
Middle-East Europe3 1.3
Africa #3
#2 #1* on a 2018/19
basis
4.1 4.1 3.7 4.1
5 6
2015/16 2016/17 2017/18 2018/19
1 Based on last 3 years orders vs accessible market ; 2 Americas excluding freight market ; 3 Russia not included as market handled directly by TMH ; 4 CAGR between 2015/17
ALSTOM – 24/06/2019 – P 8
and 2018/20 ; 5 15/16 and 16/17 numbers are per IAS 11 6 Restated for IFRS 9 & 15. - Sources: Alstom ; UNIFE Market Study 2018
© ALSTOM 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 authority, is strictly prohibited.
A unique multiregional footprint key to the group’s commercial
success and competitiveness
Europe
21,400
Americas Sri City
5,200 USA
Bangalore
Asia Pacific India
5,200 Brazil
ROLLING 43%
STOCK 22%
Montreal (REM) SRS Health Hub
€3.4Bn SYSTEMS
€1.8Bn
R&D
4-5%
€1.3Bn €1.6Bn investments
SIGNALLING
SERVICES sales 2015/16 – 2018/19
16% 19% Split of Alstom FY2018/19 Sales * FY2015/16 and FY2016/17 restated for IFRS 15
ALSTOM – 24/06/2019 – P 10
© ALSTOM 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 authority, is strictly prohibited.
Strong project execution and ability to improve operational profitability
On time delivery
2015/16 2016/17 2017/18 2018/19
7.8% 7.8%
2015/16 2018/19 Margin at completion increase 7.4%
on projects portfolio 7.0%
-0.34pp
Record backlog in the industry, geared for sustainable growth Outperformed market and main competition’ growth
Backlog in 2018/19 Sales 2015/161 – 2018/19
Strategy 2020 objectives: 5% sales organic growth per year, around 7% Adjusted EBIT margin,
c. 100% conversion from net income to free cash flow
1 Based on published data on local currency
ALSTOM – 24/06/2019 – P 12 2 Under IAS11 standards, not restated for IFRS 9 & 15 and based on published data on local currency
© ALSTOM 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 authority, is strictly prohibited.
Market perspectives
ALSTOM – 24/06/2019 – P 13
© ALSTOM 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 authority, is strictly prohibited.
Robust macro-economic drivers supporting the steady growth
of rail traffic
Mainline
+3.2%
Improvement of OECD
WW GDP growth average budget deficit:
projected between -0.15% in 2017
2017 and 2022 vs. -4.8% 2013
Freight
+1.4%
+3.8%
p.a. Economic Governmental
growth funding
2005 2015 2025
Sources: Statista, United Nations, OECD, 2011 EU White Paper, UIC & CER Rail transport and Environment Facts & Figures report, BCG analysis Data: Rail transport markets – global market trends 2016–2025 - SCI Verkehr
Note: Urban traffic figures are for Top 30 cities worldwide; Mainline & Freight traffic figures are for all major national operators worldwide multi client studies 2017
ALSTOM – 24/06/2019 – P 14
© ALSTOM 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 authority, is strictly prohibited.
A positive rail manufacturing market outlook
LATAM TURNKEY
125 125
Uncertain momentum Strong potential 0.7
4.9
114 constrained by uncertain 114
9.5 momentum in MEA 0.6
MEA 4.5 25.1
7.6 INFRA
Economic slowdown may 22.0
20.4
hamper scheduled growth
20.1 17.6
16.1
APAC SIGNALLING
Urbanisation Standardisation
driven growth and digitalisation trend
57.4 37.7
34.7
53.8
EUROPE1 SERVICES
Strong green Robust growth supported
& brownfield pipeline by liberalisation
ALSTOM – 24/06/2019 – P 16
© ALSTOM 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 authority, is strictly prohibited.
Growing environmental concerns while rapid advancement
of green technologies
Netherland
Munich 2030
Stuttgart
150
Dusseldorf
Hamburg
California 2040 H2 mobility Germany:
Finland ~€350m investment (2015)
100
Build up to 400 hydrogen refuelling
Brazil 2050
stations by 2023
© ALSTOM 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 authority, is strictly prohibited.
Digital revolution carrying changes in our industry
Big data
⚫ Data: new gold for all players
Advanced analytics
⚫ Value in complex algorithms for
maintenance, operations or
Cloud
customer facing services
Artificial intelligence
ALSTOM – 24/06/2019 – P 18
© ALSTOM 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 authority, is strictly prohibited.
Looking further afield: convergence of rail-guided mobility
and the world of private individual vehicles
ALSTOM – 24/06/2019 – P 19
© ALSTOM 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 authority, is strictly prohibited.
Strategy overview
ALSTOM – 24/06/2019 – P 20
© ALSTOM 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 authority, is strictly prohibited.
Our mid-term ambition
ALSTOM – 24/06/2019 – P 21
© ALSTOM 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 authority, is strictly prohibited.
AiM – Alstom in Motion : our strategic plan for 2019 - 2023
ALSTOM – 24/06/2019 – P 22
© ALSTOM 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 authority, is strictly prohibited.
Growth by offering greater value to our customers
Outstanding market potential Alstom best positioned with unique assets and
excellent track-record
Accessible market by 2023: ~€42bn1, ⚫ Installed base + 50,000 vehicles, only 1/5 clients have
largely untapped service contracts today
⚫ Numerous success stories of subcontracting to
Strong growth drivers: liberalisation, traditional operators
efficiency concerns of operators, growing
and ageing installed base ⚫ Digital-driven maintenance, green retractioning, proven
ability to maintain non Alstom fleet
Alstom Services Orders and Sales In €m, Acc. Market CAGR +3%
Sound strategic and financial rationale: CAGR in % 11/13 – 18/20
+7%
URBAN: large
✓ Complex project know-how
roll-outs planned
34%
✓ #1 in China and India for Urban
~€12Bn 46%
Over past
years
✓ Leader in NAM Freight and mining
F&M: steered by 6%
NAM, continued
8%
✓ Global footprint
strong financial 6% Mainline
and strategic Wayside
rationale Mainline ⚫ Standardise our platforms to gain in
Onboard agility and competitiveness
Mainline Others
Alstom assets
Rolling stock - Coradia ILint ⚫ Long-term
customer intimacy
New platform - Aptis 99% of recoverable
energy captured ⚫ Dynamic
Now extensively used
worldwide
entrepreneurial culture
Pionner / leader
in predictive
maintenance ⚫ 7,000 engineers,
Systems - Hesop
2/3 software
Services - Health Hub
World first driverless-
To-driveless metro ⚫ A strong ecosystem
with key partnerships
Signalling - Fluence
ALSTOM – 24/06/2019 – P 27
© ALSTOM 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 authority, is strictly prohibited.
Six priority innovation areas to respond to mid
and long term business drivers
Road electromobility
2
GREEN 1 3
Green traction Eco-design and manufacturing
MOBILITY
6 4
SMART Multimodality
Autonomous train
and Flow management
MOBILITY 5
Additional levers
2020 objective of 7% aEbit margin reached
⚫ Digital transformation
Thanks to:
⚫ Footprint stabilisation & optimisation
⚫ Sourcing cost reduction – €250m
⚫ Best-in-class project execution, including cash focus
⚫ 60% of manufacturing in best cost countries
2025 targets
1
ENABLING 25%1 energy reduction in solutions (CO2)
decarbonisation of mobility 100 % electricity supply from renewables
3
CREATING 100,000 beneficiaries /y from local actions
a positive impact on society 100% of newly developed solutions eco-designed
4
DEVELOPING 100% of suppliers monitored or assessed for
ethical and sustainable supply chains compliance on CSR standards and E&C practices
Sales average
annual growth Above 80% Net
aEBIT margin1
rate of around 5% Income2 to FCF3 by
around 9% in 2022/23
over 2019/20 to 2022/23
2022/23
ALSTOM – 24/06/2019 – P 32
© ALSTOM 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 authority, is strictly prohibited.
Alstom 2020 achievements
ALSTOM – 24/06/2019 – P 33
© ALSTOM 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 authority, is strictly prohibited.
2020 Strategy largely a success - Alstom Financial Achievement
30.4
+33% 6.9 CAGR ⚫ Backlog: strongest industry backlog
5.5%
⚫ Growth to €8.1Bn sales
⚫ Raised margin to 7%
FY 2015/16* FY 2018/19 FY 2015/16* FY 2018/19
*as per IAS11 standards *as per IAS11 standards
⚫ Growing FCF generation
aEBIT (in € million) FCF (in € million)
570
153,0
7.1%
5.3%
7.1%
⚫ Volume/Price
▪ Solid top line growth
▪ Partly offset by pricing dynamics
⚫ Operational excellence
▪ Sourcing savings
▪ Global footprint (India, Poland)
▪ Project delivery excellence
aEBIT aEBIT
2015/16 2018/19
ALSTOM – 24/06/2019 – P 36
© ALSTOM 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 authority, is strictly prohibited.
Creating Value with JV and Partnerships
ALSTOM – 24/06/2019 – P 37
© ALSTOM 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 authority, is strictly prohibited.
Sustainable Working Capital Performance
Down Payments position (in € billion) Working Capital Change (impact on FCF) (in € million)
ALSTOM – 24/06/2019 – P 38 Nota: FY15/16 and FY16/17 under IAS11 FY17/18 and FY18/19 under IFRS15
© ALSTOM 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 authority, is strictly prohibited.
Strong Balance Sheet post 18/19 Dividend –
Foundation for next phase
IFRS 16 adjustment
between €400m and €500m
ALSTOM – 24/06/2019 – P 39
© ALSTOM 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 authority, is strictly prohibited.
AiM financial framework
ALSTOM – 24/06/2019 – P 40
© ALSTOM 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 authority, is strictly prohibited.
Alstom’s Strategic Framework
We AiM to
Sales step up: Average annual growth rate of around 5% over 2019/20 to 2022/23
ALSTOM – 24/06/2019 – P 42 Nota: Graph for illustrative purpose
© ALSTOM 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 authority, is strictly prohibited.
Boosting Signalling Performance
⚫ Margin drivers
▪ Sourcing efficiency
▪ Design for maintenance & services
▪ Digital services & predictive maintenance
⚫ Systems dynamics
▪ Systems sales softening after peak activities in 2018/19
▪ Opportunities in Middle East & Latin America
▪ Unique Alstom turn-key experience & capability
€1.8Bn
⚫ Rolling stock growth drivers
▪ Renewed product portfolio on Rolling Stock
▪ Innovative products: H2 train, eBus
▪ Market momentum: Europe, North America, India…
€3.4Bn
R&D Costs
around
5%
⚫ R&D costs growing at same pace than sales
400 0.6% (around 5%): stable R&D / sales ratio
350
€291m ⚫
0.5% Harvesting on current platform generation on
300
Rolling stocks
0.4%
250
⚫ Prioritised innovation axes
200 0.3%
▪ Green mobility: H2 train and eBus
150
0.2% ▪ Signalling product development
100
▪ Very high speed (TGV du futur – co financed with ADEME)
0.1%
50
▪ SMART mobility
0 0.0%
FY 2018/19 FY 2019/20 FY 2020/21 FY 2021/22 FY 2022/23
R&D Costs as % of Sales
9.0%*
⚫ Volume/Price
▪ Sustainable top line growth
▪ Consistent price dynamics trends
7.5%*
⚫ Portfolio Mix
Operational
Excellence ▪ Growth towards Services & Signalling (toward 40% of
Mix
Casco sales in 2022/23)
Volume/price
⚫ Operations Performance
7.1%
▪ Sourcing savings (60% Best cost countries)
▪ Global footprint extension (60% Best cost countries)
▪ Standardisation & efficiency in execution
0.3
⚫ EPS growth driven mainly by EBIT step up
▪ Restructuring almost completed, returning to normative
0.2 level
▪ Financial expenses reduced by bonds repayment
0.2 ▪ Effective Tax Rate between 25 and 30%, benefiting from
Deferred Tax Asset
▪ Long Term Incentive payout to be implemented through
0.1
Share Buy-back
0.1
0.0
2018/19 2022/23
EPS 2018/19 without GE JV put option & Disc. Net income impact
Programme Architecture
⚫ Key drivers
Tender
▪ Tender
- Progress payment & Working Capital optimisation
▪ Inventory
- 20% reduction of testing duration
Sourcing Tools & - 15% Hard Inventory coverage reduction
process
Payment
- Vendors Managed Inventories implementation
▪ Sourcing / supply chain
- Payment terms & Supply chain right in time
People
Gover-
nance ⚫ Transformation enablers
▪ Cash training, culture, & process aligned
▪ Management incentives aligned to FCF
generation & FCF / Net Income
Inventory CapEx
€(1.7)Bn
FY 2018/19 FY 2022/23
Subject to customary short term volatility related to
Ca 50% FCF / Net Mid Term target down payments & progress payments phasing
income before GE > 80% FCF/ Net
and discontinued income
Committed to FCF generation – Targeting FCF / Net Income1 ratio above 80% by 2022/23
1Net profit from continuing operations attributable to equity holders of the parent
ALSTOM – 24/06/2019 – P 52 Nota: Free cash flow generation is subject to usual short-term volatility linked to customers down payments and milestone payments from customers
Nota 2: Graph for illustrative purpose
© ALSTOM 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 authority, is strictly prohibited.
Disciplined M&A Policy
Bolt-on acquisitions
Medium to small
and partnership to Opportunities in all
acquisitions
enter new market areas of our core
contemplated for
segments or business & digital
the coming years
countries
Disciplined M&A to accelerate growth & value creation - EPS Accretive target
ALSTOM – 24/06/2019 – P 53
© ALSTOM 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 authority, is strictly prohibited.
Capital Allocation Policy & Shareholder return
FCF improvement
Strong Sustainable
Disciplined Balance Shareholder
M&A Sheet return
ALSTOM – 24/06/2019 – P 54
© ALSTOM 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 authority, is strictly prohibited.
We Aim at value creation
ALSTOM – 24/06/2019 – P 56
© ALSTOM 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 authority, is strictly prohibited.
Efficiency
Thierry BEST – Operations SVP
2019 Capital Markets Day
ALSTOM – 24/06/2019 – P 57
© ALSTOM 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 authority, is strictly prohibited.
Alstom in Motion 2019-2023: Efficiency
Cash
focus
⚫ Fully digitalised development from R&D 4 months development cycle time reduction
to project execution demonstrated on metro projects
⚫ Digital design reviews
with state-of the art 3D technologies
15% reduction
on development
cycletime
ALSTOM – 24/06/2019 – P 59
© ALSTOM 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 authority, is strictly prohibited.
Digital Transformation: Industrial Operations
ALSTOM – 24/06/2019 – P 60
© ALSTOM 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 authority, is strictly prohibited.
Digitalisation transformation: Alstom Digital Suite
Smart Operations
Alstom Digital Suite GSI Roll Out Planning
ALSTOM – 24/06/2019 – P 61
© ALSTOM 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 authority, is strictly prohibited.
Digital Transformation: Use Case TGV2020
Welding automation
Virtual Training
welding and painting -25%
Manufacturing
hours vs previous
generation
3D printing:
2% of parts ambition E-BoM / 3D
ALSTOM – 24/06/2019 – P 62
© ALSTOM 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 authority, is strictly prohibited.
Footprint Stabilisation and Optimisation: Rolling Stock Engineering
Engineering
⚫ Site specialisation by product
30% Engineering
hours in India
RS Engineering Sites
Engineering Hubs
Centers of Excellence
ALSTOM – 24/06/2019 – P 63
© ALSTOM 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 authority, is strictly prohibited.
Footprint Stabilisation & Optimisation: Sourcing
⚫ Massification
▪ “Alliance” program with selected suppliers
▪ Bundling from new built to aftersales
▪ Supplier base rationalisation
ALSTOM – 24/06/2019 – P 64
© ALSTOM 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 authority, is strictly prohibited.
Footprint Stabilisation & Optimisation: Industrial Operations
Current Status
Upstream hub
Completed set-up
of Regional and Best Cost Final Assembly Unit
Country footprint
New sites
Ramping up
ALSTOM – 24/06/2019 – P 65
© ALSTOM 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 authority, is strictly prohibited.
Footprint Stabilisation & Optimisation: Use case Sydney Project
Europe ➔ EXPERTISE
ALSTOM – 24/06/2019 – P 66
© ALSTOM 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 authority, is strictly prohibited.
Best-in-Class Project Execution
500 projects
High level of
collaboration and Enhanced project
From Sound agility between sites management To Lean and Industrialised
Project Execution processes and Tools project management
On-Time-Delivery securing full continuity
improved by 15% from tender to Project
deliveries
Customer
Satisfaction
Further OTD
improvement PRASA AMTRAK
by 5% (Regional - South Africa) (HighSpeed - USA)
▪ 20 trains delivered from Brazil ▪ 2 first trains in progress
in the US as per plan
▪ 7 trains delivered from South-Africa
ALSTOM – 24/06/2019 – P 67
© ALSTOM 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 authority, is strictly prohibited.
Cash Focus
ALSTOM – 24/06/2019 – P 69
© ALSTOM 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 authority, is strictly prohibited.
Alstom in India
An Established Footprint
⚫ India: key contributor to Alstom strategy with high Total 4,040 Employees
standard sites for R&D, engineering and manufacturing
▪ Bangalore:
Alstom’s largest engineering center for Rolling Stock &
Signalling Madhepura
370 Employees
→ 22% of global engineering workload
▪ Coimbatore:
Global traction manufacturing site
→ 18% of global traction manufacturing workload
▪ Sri City:
Metro manufacturing facility, serving customers worldwide RSC & Services
Bangalore Signalling
→ Installed capacity of 20 Cars / month 2,900 Employees
Systems & Infra
Sri City
Coimbatore 400 Employees Components
▪ Madhepura: 370 Employees Locomotives
Loco manufacturing facility dedicated to domestic market
ALSTOM – 24/06/2019 – P 70
© ALSTOM 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 authority, is strictly prohibited.
Alstom in India
A Proven Track-Record
▪ Urban: Design Lead in 17 projects, both in Domestic & Export Markets Signaling
ALSTOM – 24/06/2019 – P 71
© ALSTOM 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 authority, is strictly prohibited.
Alstom in India
An Exciting Journey
Manufacturing Workload
in million hours:
SUPPLIERS
with high focus on quality:
▪ Fostering local presence of our Global Supplier panel 80%
70%
▪ Growing local Indian supplier base with strong technical 30%
support from Alstom 2015 2019 2023
Engineering Workload
in million hours:
⚫ Bangalore as innovation hub & center of excellence:
BANGALORE
▪ Center of Excellence in 7 domains
5
(Software Factory, Sig U200 & U400 activities…) 0.8
3
Labor competitiveness
⚫ A competitive workforce:
X4.2
x1.5
▪ Indian competitiveness serving Alstom global profitability -
⚫ A promising market:
▪ Average GDP growth of 6-7% since 1991 economic liberalisation 11 Cities with Metro
Lines in Operation
▪ Rapid urbanisation & willingness to develop modern Infrastructures 7 additional Cities with
Metro Lines under
construction / in pipeline
ALSTOM – 24/06/2019 – P 73
© ALSTOM 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 authority, is strictly prohibited.
Questions & Answers
2019 Capital Markets Day
ALSTOM – 24/06/2019 – P 74
© ALSTOM 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 authority, is strictly prohibited.
Lunch Break
2019 Capital Markets Day
ALSTOM – 24/06/2019 – P 75
© ALSTOM 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 authority, is strictly prohibited.
Alstom Capital Markets Day
Paris - France
June 24 2019
ALSTOM – 24/06/2019 – P 76
© ALSTOM 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 authority, is strictly prohibited.
Signalling
Jean-François BEAUDOIN – Digital Mobility SVP
2019 Capital Markets Day
ALSTOM – 24/06/2019 – P 77
© ALSTOM 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 authority, is strictly prohibited.
Railway Signalling Principles
Overall Architecture
Route control Route control Train protection Train protection IT for rail
Wayside equipment Interlocking Trackside On-board Control Center
Equipment Equipment to manage Equipment Equipment Equipment to monitor train lines,
on the wayside to: priority to prevent collision on the wayside to: in the train to: manage traffic, inform passengers
• Adjust Route • Detect train • Manage speed monitor security functions &Scada:
• Communicate • Compute Movement • Assist driver power supply, etc.
with driver Authority
protection
solutions Train Control Train Control
Cyber
ATLAS for Mainline
Integrated
systems
URBALIS for Urban
⚫ Complete & versatile portfolio covering all signalling sub-systems for Mainline & Urban
⚫ Last generation integrated systems & strong legacy knowhow enabling ability to manage new built & re-signalling
ALSTOM – 24/06/2019 – P 79
© ALSTOM 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 authority, is strictly prohibited.
Signalling Market Overview
Global volume increase, Stable segment breakdown
CAGR
~2.5%
1 Excluding Services
ALSTOM – 24/06/2019 – P 80
Source: UNIFE study 2018 & Company data
© ALSTOM 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 authority, is strictly prohibited.
Alstom Competitive Positioning
€1.8-
>€2.5Bn €1.4 Bn ~€1.2Bn €0.8Bn
1.9Bn
ALSTOM
AMBITION
Gain Product
&
Market Leadership
Source: Company data & players’ publication, estimates comparing only signaling and telecom related businesses,
ALSTOM – 24/06/2019 – P 81
Including internal sales
© ALSTOM 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 authority, is strictly prohibited.
Strong Mainline Perspectives
Driven by Europe & ETCS upswing
ASIA PACIFIC
2,000 200
BANGALORE
Of which
engineers EMPLOYEES
LATIN AMERICA
by 2023
1,650
EMPLOYEES
1,250
500 EMPLOYEES
EMPLOYEES
A global footprint
ready to address all markets
ALSTOM – 24/06/2019 – P 85
© ALSTOM 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 authority, is strictly prohibited.
Innovating towards Competitiveness & Efficiency
Platforming Approach
Vital computer State charts Urban: Singapore Thomson line & Riyadh
Object controller
2oo3 Mainline: Argentina Roca line – Route control application
Italy Roma & Fortezza line – Train Protection application
SmIO 24V
Speed up delivery
Reduce # of engineering hours
Reduce capital & operating costs
ALSTOM – 24/06/2019 – P 87
© ALSTOM 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 authority, is strictly prohibited.
Leading Technology Breakthrough
More than 15 years track-record
MAINLINE URBAN
1st Intercity Automatic Train Operation 2016 1st CBTC over LTE (China, Wuhan L6)
(with Casco, China)
1st ERTMS L2 baseline 3 deployment
incl. Maintenance release 2017
(Germany)
ALSTOM – 24/06/2019 – P 88
© ALSTOM 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 authority, is strictly prohibited.
Creating customer value through digital technology
Towards “Digital Train”
⚫ Driving automation
Prototype by 2023
DIGITAL
➔ SNCF Driverless freight train pilot
TRAIN
⚫ Ultra-availability & ultra-capacity Capacity +6 Headway
Trains -12s
➔ URBALIS Fluence: first train-to-train concept increase /hr reduction
⚫ Advanced operational
Smarter trains,
flexibility
lighter infrastructure
⚫ Reduced OPEX
ALSTOM – 24/06/2019 – P 89
© ALSTOM 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 authority, is strictly prohibited.
Boost our Service Offering to Drive Value
ALSTOM – 24/06/2019 – P 90
© ALSTOM 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 authority, is strictly prohibited.
Conclusion
Achieving 2023 Ambition
Strong market
perspectives
GAIN PRODUCT 4 Levers
for Alstom unique
portfolio & knowhow
&
MARKET LEADERSHIP
Innovation
towards
Global reach
Competitiveness
Europe
& Efficiency
Mainline
1 2
3 4
North Create
Customer value
Global America Boost
through
Urban Freight Services
digital
& mining technology
ALSTOM – 24/06/2019 – P 91
© ALSTOM 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 authority, is strictly prohibited.
Services
Bernd BURGSTAHLER – Services VP
2019 Capital Markets Day
ALSTOM – 24/06/2019 – P 92
© ALSTOM 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 authority, is strictly prohibited.
Services at Alstom
Already strong market position thanks to a diversified portfolio of solutions
Leader in services
13,000 vehicles, 139 depots among OEMs1
Maintenance
in 41 countries under contract
Service: highest growth
and profitability contribution
10,000 traction systems
Modernisation
and 5,000 vehicles modernised
Long-term contracts
with exceptional high rate on
contract renewals
Signalling Services 40 ongoing Service contracts
and repeat orders
ALSTOM – 24/06/2019 – P 94
© ALSTOM 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 authority, is strictly prohibited.
Value creation through innovation and technology
To achieve this leadership position we’ve developed innovative solutions with strong customer benefits
Improved reliability
Decreased in-service
- 40% breakdowns
(# of SAF on reference solution)
Health Management
Increased availability
2008/09 2018/19
Alstom Service Italy Alstom Service Italy
…to
⚫ Under 100 empl. ⚫ Over 1,000 empl.
"Solution
⚫ Only gardening ⚫ 6 Full-Service Contr.
Provider"
⚫ Parts and Repairs ⚫ Complete Portfolio
High value
services
Building digital
solutions
2018/ 2022/
2019 2023
CONTINUING
BUILDING PROFITABLE GROWTH
A LEADERSHIP POSITION IN CORE AND NEW SOLUTIONS
IN SERVICES TO BECOME
THE UNDISPUTED LEADER
ALSTOM – 24/06/2019 – P 97
© ALSTOM 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 authority, is strictly prohibited.
Very strong market potential
Existence of large untapped pools and key long-term drivers enable profitable growth
ALSTOM – 24/06/2019 – P 98 1 Non-accessible: e.g. because of political entry barriers (China) or inhouse policy of National Operators
Source: UNIFE 2018
© ALSTOM 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 authority, is strictly prohibited.
Key attributes
Alstom can leverage some tangible assets to meet its ambition
ALSTOM – 24/06/2019 – P 99
© ALSTOM 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 authority, is strictly prohibited.
Growth strategy
Focused on four high-value opportunities
Alstom ambition
Alstom ambition
ALSTOM – 24/06/2019 – P 103 1 Excluding Mid-life OVHs and w/o Diesel ban impact
© ALSTOM 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 authority, is strictly prohibited.
Promising financial outcome
Revenues, earnings and cash increase
1980's 2007
Total cost of ownership -20% -20% Variable production cost -26% -20%
Energy consumption Energy consumption
Maintenance cost -30% +20% Passenger capacity Maintenance cost -26% -4% Weight
INDUSTRY 4.0
The first online marketplace Implementation of cutting edge
dedicated to the railway sector technologies into internal processes
IDENTIFICATION OF PARTS
SMART GLASSES FOR REMOTE CONTROL
3D PRINTING
ORDERING
DELIVERY
QES: AUTOMATED TRACEABILITY IN PRODUCTION LINE
Globalisation Sustainability Terrorism Autonomy and Big Data / 3D printing Automation Open platform Crowdfunding Sharing
new power sources Analytics ecosystems economy
Road electromobility
2
GREEN 1 3
Green traction Eco-design and manufacturing
MOBILITY
2019 – 2023
6 key innovation
6 priorities 4
SMART Multimodality
Autonomous train
and Flow management
MOBILITY 5
2021
2023
… And combining all the mobility data & our expertise CITY FLOW SECURITY
Energy
Maintenance data
Asset data
Signaling
Data from Infra Data from Alstom
Alstom services connected
products
Rolling Stock
Environment data Mobility Passenger Data Mobility analytics Automatic threat detection
Data Data
within smart cities Cybersecurity monitoring
from City
and Public Data from Public
Ticketing Data
Transport Journey Data Transport Operators
Authority City data
Operation data (ATS)
WITH ALREADY SOME COMMERCIAL SUCCESSES
CCTV
ALSTOM – 24/06/2019 – P 119
© ALSTOM 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 authority, is strictly prohibited.
5
Data driven rail mobility
Innovative technology to build new solutions
Advanced technologies
MOBILITY SOLUTIONS
OPERATIONS MAINTENANCE SECURITY CITY FLOW
⚫ Investment in 2017
⚫ Joint contract in Germany on May 2019
⚫ Focus on electrical autonomous systems
Exploring
new opportunities
and attract talents
BY 2023: STRENGTHEN AND MULTIPLY OUR PARTNERSHIPS AND OPEN INNOVATION INITIATIVES
This section presents financial indicators used by the Group that are not defined by accounting standard setters.
⚫ Orders received
A new order is recognised as an order received only when the contract creates enforceable obligations between the Group and its customer.
When this condition is met, the order is recognised at the contract value. If the contract is denominated in a currency other than the functional currency of the reporting unit, the Group requires the immediate elimination of currency
exposure through the use of forward currency sales. Orders are then measured using the spot rate at inception of hedging instruments.
⚫ Order backlog
Order backlog represents sales not yet recognised on orders already received. Order backlog at the end of a financial year is computed as follows:
• order backlog at the beginning of the year;
• plus new orders received during the year;
• less cancellations of orders recorded during the year;
• less sales recognised during the year.
Order backlog corresponds to the transaction price allocated to the remaining performance obligations, as per IFRS15 standard quantitative and qualitative disclosures requirements.
⚫ Book-to-Bill
The book-to-bill ratio is the ratio of orders received to the amount of sales traded for a specific period.
⚫ Adjusted EBIT
When Alstom’s new organisation was implemented 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.
Going forward (1st application for Half Year 2019/2020 publication), Alstom has opted for the inclusion of the share in net income of the equity-accounted investments into the aEBIT when these are considered as 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.
⚫ 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.
⚫ Pay-out ratio
The pay-out ratio is calculated by dividing the amount of the overall dividend with the "Net profit from continuing operations attributable to equity holders of the parent” as presented in the consolidated income statement.