Alstom 2016/17
results
-
€10 billion order intake
leading to a record backlog of €34.8 billion
-
€7.3 billion sales up
6%
-
Adjusted EBIT at €421 million
up 15%
-
Positive free cash flow at €182
million
-
Proposed dividend of €0.25 per
share
-
2020 objectives
confirmed
4 May 2017 -
Between 1 April 2016 and 31 March 2017, Alstom booked €10.0 billion
of orders leading to a new record-breaking backlog of €34.8
billion. Over the same period, sales were up 6% (5% organically),
amounting to €7.3 billion. The adjusted EBIT increased to €421
million, 15% above last year, leading to an adjusted EBIT margin of
5.8%. Net income (Group share) reached €289 million.
Alstom benefits from a very strong
balance sheet. During fiscal year 2016/17, free cash flow amounted
to €182 million. Net debt remained stable at €208 million on 31
March 2017. Equity amounted to €3.7 billion at 31 March 2017.
At its next Shareholders' Meeting
planned on 4 July 2017, Alstom will propose a dividend of €0.25 per
share.
Key figures
(in € million) |
2015/16 |
2016/17 |
% change
reported |
% change
organic |
Actual figures |
|
|
|
|
|
Orders backlog |
30,363 |
34,781 |
15% |
9% |
|
Orders received |
10,636 |
10,008 |
(6)% |
(6)% |
|
Sales |
6,881 |
7,306 |
6% |
5% |
|
Adjusted EBIT |
366 |
421 |
15% |
|
|
Adjusted EBIT margin |
5.3% |
5.8% |
|
|
|
Net income - Group share |
3,001 |
289 |
|
|
|
Free cash flow |
(2,614) |
182 |
|
|
|
Net cash / (debt) |
(203) |
(208) |
|
|
|
Equity |
3,328 |
3,713 |
|
|
|
«During 2016/17,
Alstom has continued to implement its 2020 strategy. With €10
billion orders for the third year in a row, Alstom has now reached
leadership positions on all continents. We are particularly proud
to have been awarded the first contract for high speed trains in
the USA. Alstom's unique integration capability and its operational
excellence have enabled a solid delivery of its record backlog. A
particular focus has also been put on innovation with the launch of
the first hydrogen train as well as a number of digital solutions
that meet new customer needs and passenger expectations. In that
context, Alstom proposes to resume the distribution of
dividends and confirms its 2020 targets,»
said Henri Poupart-Lafarge, Alstom Chairman and Chief Executive
Officer.
***
2020 strategy on
track
Alstom 2020 strategy is based on
the five following pillars:
-
Customer-focused
organisation
The Group confirmed its leading
position with a high level of orders of €10,008 million booked in
the fiscal year 2016/17. This compares to €10,636 million over the
same period last year which included a €3.2 billion contract in
India.
Alstom was awarded several major
projects during this year. The Group signed contracts with Amtrak
in the United States for new generation of Avelia high-speed train
and services. The Alstom-led consortium Expolink won a contract
with RTA for the extension of Dubai Metro's Red line. The
Alstom-Bombardier consortium was selected to renew suburban trains
in France. Other commercial successes included suburban and
regional trains in Netherlands, Germany, Italy, France and
Australia, high-speed trains in France and Italy, new metro cars in Peru and France, as well as maintenance
contracts in Canada and in the United Kingdom.
Backlog reached a record high and
amounted to €34.8 billion on 31 March 2017, including around 30%
services.
-
Complete range of
solutions
In fiscal year 2016/17, Alstom's
total sales reached €7,306 million, up 6% (5% organically). The
book-to-bill remained strong, above 1.4.
Signalling, systems and services
represented 57% of sales in 2016/17, in line with 2020 objective of
60%. Systems sales increased by 27% with progress of Riyadh and
Guadalajara metro systems in Saudi Arabia and Mexico, urban systems
deliveries in Brazil and Qatar, as well as infrastructure projects
in the United Kingdom. Signalling sales growth of 19% was supported
by the integration of GE Signalling and deliveries in the United
Kingdom and in Canada. Services slightly decreased at €1.5 billion
of sales with an adverse forex impact on maintenance contract in
the United Kingdom. Rolling stock reached €3.2 billon of sales with
deliveries of suburban, regional and high-speed trains in Europe,
on-going execution of the PRASA project in South Africa and tramway
deliveries in Algeria.
-
Value creation through
innovation
Alstom sustained its level of
research and development (gross costs) at €248 million, i.e. 3.4%
of sales, in fiscal year 2016/17. Main programmes included the
renewal of rolling stock ranges, signalling, and predictive
maintenance. For example, Alstom will deliver to Amtrak in the US,
a new generation of high speed trains with high-level of innovation
for both passenger and operator. Furthermore, in March 2017, Alstom
successfully performed the first test run at 80 km/h of the world's
only fuel cell passenger train Coradia iLint. The same month,
Alstom and NTL launched Aptis, a new, 100% electric experience of
mobility.
-
Operational and environmental
excellence
Alstom delivered an adjusted EBIT
of €421 million in 2016/17, compared to €366 million the previous
year, representing a 15% increase. The adjusted EBIT margin reached
5.8% for the fiscal year 2016/17, versus 5.3% for last fiscal year
and 4.8% two years ago. This continuous improvement was driven by
volume increase, portfolio mix and on-going initiatives for
operational excellence. During the fiscal year 2016/17, net income
(Group share) amounted to €289 million.
In terms of environmental
excellence, energy consumption is to be reduced by 20% for
solutions and by 10% for operations by 2020. With the objective of
constantly improving safety at work, the Group targets an
occupational injury frequency rate[1] of 1 by
2020. Alstom has already reduced its energy consumption by 11% for
solutions, by 9% for operations and its occupational injury
frequency rate1 to 1.4 this
year.
-
Diverse and entrepreneurial
people
To reflect Alstom's passenger
base, the company has the ambition to increase diversity, aiming
for 25% of Management or Professional roles to be occupied by women
in 2020. The objective is on track with 20% in 2016/17. Alstom's
employees around the world all share the same culture, underpinned
by strong integrity and ethics values.
***
Solid balance
sheet
During fiscal year 2016/17, the
Group free cash flow was positive at €182 million, benefitting from
first impacts of the Cash Focus programme, several large
down-payments and phasing of transformation capex.
Alstom invested €150 million in
capital expenditures in fiscal year 2016/17. The continuous need to
reinforce its network as well as local competences should trigger
an exceptional €300 million transformation capex over three years.
As end of March 2017, these transformation capex stood at €51
million with notably the beginning of the sites construction in
South Africa and in India.
The Group had a gross cash in hand
of €1,563 million at the end of March 2017 and a fully undrawn
credit line of €400 million. After reimbursement at maturity of a
€453 million bond in February, Alstom gross debt amounted to €1,519
million as end of March 2017. Alstom net debt remained stable
compared to previous year and stood at €208 million on 31 March
2017. Last, equity reached €3,713 million at 31 March 2017, versus
€3,328 million at 31 March 2016.
***
Dividend
The Board of Directors decided to
propose a dividend of €0.25 per share in respect of fiscal year
2016/17 to the Shareholder's Meeting that will meet on 4 July
2017.
The ex-dividend date would be 7
July 2017, and the dividend would be payable in cash on 11 July
2017.
***
Objectives for 2020
confirmed
By 2020 sales should grow
organically by 5% per year.
Adjusted EBIT margin should reach around 7% by 2020 driven by
volume, portfolio mix and results of operational excellence
actions.
By 2020, Alstom expects c. 100% conversion from net income into
free cash flow.
*
The management
report and the consolidated financial statements, as approved by
the Board of Directors, in its meeting held on 3 May 2017, are
available on Alstom's website at www.alstom.com. The accounts have been audited and certified.
In accordance
with AFEP-MEDEF recommendations, information related to the
remuneration of Alstom's Executive Officer is available on Alstom's
website: www.alstom.com, under About
us/Corporate Governance/Compensation of Executive Officers.
About
Alstom
As a promoter of sustainable mobility, Alstom
develops and markets systems, equipment and services for the
transport sector. Alstom offers a complete range of solutions (from
high-speed trains to metros, tramways and e-buses), passenger
solutions, customised services (maintenance, modernisation),
infrastructure, signalling and digital mobility solutions. Alstom
is a world leader in integrated transport systems. The company
recorded sales of €7.3 billion and booked €10.0 billion of orders
in the 2016/17 fiscal year. Headquartered in France, Alstom is
present in over 60 countries and employs 32,800
people.
www.alstom.com
Press
contacts
Justine Rohée - Tel. + 33 1 57 06 18 81
justine.rohee@alstom.com
Christopher English - Tel. + 33 1 57
06 36 90
christopher.a.english@alstom.com
Investor
relations
Selma Bekhechi - Tel. + 33 1 57 06 95 39
selma.bekhechi@alstom.com
Julien Minot - Tel. + 33 1 57 06
64 84
julien.minot@alstom.com
This press
release contains forward-looking statements which are based on
current plans and forecasts of Alstom's management. Such
forward-looking statements are relevant to the current scope of
activity and are by their nature subject to a number of important
risks and uncertainty factors (such as those described in the
documents filed by Alstom with the French AMF) that could cause
actual results to differ from the plans, objectives and
expectations expressed in such forward-looking statements. These
such forward-looking statements speak only as of the date on which
they are made, and Alstom undertakes no obligation to update or
revise any of them, whether as a result of new information, future
events or otherwise.
Appendix 1a -
Geographic Breakdown
Actual figures |
2015/16 |
% |
2016/17 |
% |
(in € million) |
|
Contrib. |
|
Contrib. |
Europe |
4,154 |
39% |
5,102 |
51% |
Americas |
1,265 |
12% |
2,890 |
29% |
Asia / Pacific |
4,135 |
39% |
582 |
6% |
Middle East / Africa |
1,082 |
10% |
1,434 |
14% |
Orders by destination |
10,636 |
100% |
10,008 |
100% |
Actual figures |
2015/16 |
% |
2016/17 |
% |
(in € million) |
|
Contrib. |
|
Contrib. |
Europe |
4,098 |
60% |
4,104 |
56% |
Americas |
1,055 |
15% |
1,247 |
17% |
Asia / Pacific |
673 |
10% |
702 |
10% |
Middle East / Africa |
1,055 |
15% |
1,253 |
17% |
Sales by destination |
6,881 |
100% |
7,306 |
100% |
Appendix 1b -
Product Breakdown
Actual figures |
2015/16 |
% |
2016/17 |
% |
(in € million) |
|
Contrib. |
|
Contrib. |
Rolling stock |
6,487 |
61% |
5,525 |
55% |
Services |
1,769 |
17% |
2,037 |
20% |
Systems |
975 |
9% |
1,466 |
15% |
Signalling |
1,404 |
13% |
980 |
10% |
Orders by destination |
10,636 |
100% |
10,008 |
100% |
Actual figures |
2015/16 |
% |
2016/17 |
% |
(in € million) |
|
Contrib. |
|
Contrib. |
Rolling stock |
3,146 |
46% |
3,170 |
43% |
Services |
1,544 |
22% |
1,468 |
20% |
Systems |
1,015 |
15% |
1,286 |
18% |
Signalling |
1,162 |
17% |
1,382 |
19% |
Sales by destination |
6,881 |
100% |
7,306 |
100% |
Appendix 2 -
Income statement
Actual figures |
2015/16 |
2016/17 |
(in € million) |
|
|
Sales |
6,881 |
7,306 |
Adjusted Earnings Before Interest and Taxes
(aEBIT) |
366 |
421 |
Restructuring charges |
(138) |
(6) |
Other charges |
(454) |
(57) |
Earnings Before Interest and Taxes (EBIT) |
(226) |
358 |
Financial
result |
(275) |
(127) |
Tax
result |
(597) |
(76) |
Share in
net income of equity investees |
30 |
82 |
Minority
interests from continued operations |
(15) |
(14) |
Net income
- Discontinued operations* |
4,084 |
66 |
Net income - Group share |
3,001 |
289 |
*Group share
Appendix 3 - Free
cash flow
Actual figures |
2015/16 |
2016/17 |
(in € million) |
|
|
Adjusted EBIT |
366 |
421 |
Depreciation and amortisation |
138 |
132 |
Restructuring cash-out |
(61) |
(49) |
Capital
expenditure |
(154) |
(150) |
R&D
capitalisation |
(73) |
(70) |
Change in
working capital |
(892) |
80 |
Financial
cash-out |
(291) |
(115) |
Tax
cash-out |
(211) |
(87) |
Other* |
(1,436) |
20 |
Free cash flow |
(2,614) |
182 |
*includes free cash flow from
discontinued operations
Appendix 4 -
Non-GAAP financial indicators definitions
This section presents financial indicators used by the Group that
are not defined by accounting standard setters.
Orders received
A new order is recognised as an order received only when the
contract creates enforceable obligations between the Group and its
customer.
When this condition is met, the order is recognised at the contract
value.
If the contract is denominated in a currency other than the
functional currency of the reporting unit, the Group requires the
immediate elimination of currency exposure 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.
The order backlog is also subject
to changes in the scope of consolidation, contract price
adjustments and foreign currency translation effects.
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, 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.
aEBIT corresponds to earning before interests, tax and net result
from equity method investments adjusted with 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;
-
and 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.
A non-recurring item is a
"one-off" exceptional item that is not supposed to be reappearing
in following years and that is significant.
Adjusted EBIT margin corresponds to Adjusted EBIT in percentage of
sales.
The non-GAAP measure adjusted EBIT indicator reconciles with the
GAAP measure EBIT as follows:
|
Year ended |
Year ended |
(in € million) |
31 March 2016 |
31 March 2017 |
Adjusted Earnings Before Interest and Taxes
(aEBIT) |
366 |
421 |
Restructuring costs |
(138) |
(6) |
Assets impairment |
(398) |
(6) |
PPA amortisation and integration costs |
(43) |
(35) |
Capital gains/losses on disposal of business |
38 |
2 |
Others |
(51) |
(18) |
Earnings Before Interest and Taxes (EBIT) |
(226) |
358 |
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
the proceeds from disposals of activity.
The most directly comparable financial measure to free cash flow
calculated and presented in accordance with IFRS is net cash
provided by operating activities.
A reconciliation of free cash flow and net cash provided by
operating activities is presented below:
|
Year ended |
Year ended |
(in € million) |
31 March 2016 |
31 March 2017 |
Net cash provided by / (used in) operating
activities |
(2,158)* |
401 |
Capital expenditure (including capitalised R&D
costs) |
(514) |
(220) |
Proceeds from disposals of tangible and intangible
assets |
58 |
1 |
Free cash flow |
(2,614) |
182 |
* includes mainly the operating
cash flow used by discontinued activities for €(1,568) million.
Alstom uses the free cash flow
both for internal analysis purposes as well as for external
communication as the Group believes it provides accurate insight
regarding the actual amount of cash generated or used by
operations.
Net cash/(debt)
The net cash/(debt) is defined as cash and cash equivalents, other
current financial assets and non-current financial assets directly
associated to liabilities included in financial debt, less
financial debt.
|
Year ended |
Year ended |
(in € million) |
31 March 2016 |
31 March 2017 |
Cash and cash equivalents |
1,961 |
1,563 |
Other current financial assets |
22 |
8 |
Financial non-current assets directly associated to
financial debt |
318 |
260 |
Less: |
|
|
Current financial debt |
686 |
444 |
Non-current financial debt |
1,818 |
1,595 |
Net cash/(debt) at the end of the period |
(203) |
(208) |
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.
[1] Number of
work-related injuries which prevent the injured person from
carrying out work for a period of at least one full day per million
of hours worked
2017-05-04 PR FY
2016-17.pdf
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announcement is distributed by Nasdaq Corporate Solutions on behalf
of Nasdaq Corporate Solutions clients.
The issuer of this announcement warrants that they are solely
responsible for the content, accuracy and originality of the
information contained therein.
Source: ALSTOM SA via Globenewswire
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