ALSTOM SA: Alstom’s first half 2024/25: good commercial
performance, confirmation of FY 2024/25 outlook
Alstom’s first half 2024/25: good commercial
performance, confirmation of FY 2024/25 outlook
- H1 2024/25
highlights:
- Book-to-bill ratio at 1.25
and organic sales up
5.6%1
-
aEBIT2 of €515
million, up 18%, i.e. margin of 5.9%
- Free Cash
Flow2 at €(138)
million benefiting from favourable downpayments
phasing
- Net financial debt at
€(927) million down from €(2,994) million after deleveraging plan
execution
- FY 2024/25 outlook
- Book-to-bill above 1 and
sales organic growth around 5%
- aEBIT margin around
6.5%
- Free Cash Flow
within the range €300 million to €500 million
13 November 2024 – In the first
half of fiscal year 2024/25 (from 1st April to 30
September 2024), Alstom booked €10.9 billion of orders. The Group
sales reached €8.8 billion, resulting in a book-to-bill ratio at
1.25.
The backlog is now €94.4 billion, providing
strong visibility on future sales. Gross margin on
backlog2 reached 17.8% as of 30 September 2024, compared
to 17.5% on 31 March 2024.
In the first half of 2024/25, Alstom’s adjusted
EBIT was €515 million, up +18% versus last fiscal year, equivalent
to a 5.9% margin (+70bps), and EBIT before PPA was €382 million.
Adjusted net profit2 was €224 million, net income (group
share) was €53 million, and free cash flow was €(138) million for
the half-year.
"Demand remains robust, driven by green
mobility policies, proving resilient to geopolitical tensions, and
we had a solid commercial performance in this first half. We are
making steady progress on our roadmap, with backlog margins
returned to pre-merger levels and a focused shift towards Services
and Signalling. With a strengthened balance sheet and an Investment
grade rating with a stable outlook, we are focused on effectively
managing our projects portfolio, amid supply chain challenges,
while driving cost efficiencies to deliver on our financial
trajectory" said Henri Poupart-Lafarge, Chief
Executive Officer of Alstom.
***
Key figures3
Reported figures
(in € million) |
Half-year ended
30 September 2023 |
Half-year ended
30 September 2024 |
% Change Reported |
% Change Organic |
|
Orders received4 |
8,446 |
10,950 |
29.6% |
30.0% |
|
Sales |
8,443 |
8,775 |
3.9% |
5.6% |
|
Adjusted EBIT4 |
438 |
515 |
17.6% |
|
|
Adjusted EBIT margin4 |
5.2% |
5.9% |
|
|
|
EBIT before PPA4 |
275 |
382 |
|
Adjusted net profit4 |
174 |
224 |
|
|
|
Free Cash Flow |
(1,119) |
(138) |
|
|
|
(in € million) |
Full-year ended
31 March 2024 |
Half-year ended
30 September 2024 |
% Change Reported |
% Change Organic |
|
Backlog |
91,900 |
94,369 |
2.7% |
3.2% |
|
Gross margin % on backlog4 |
17.5% |
17.8% |
|
|
***
The €2 billion inorganic deleveraging
plan fully delivered
The hybrid bond issuance for €750 million and
the rights issue for €1 billion euros have been fully executed
during this semester.
On 30 August 2024, Alstom sold its North
American conventional Signalling business to Knorr-Bremse AG for a
purchase price of USD 689 million, following the binding agreement
signed on 19 April 2024.
Alstom has delivered all three components of the
deleveraging plan, resulting in the stabilisation of its Investment
Grade rating by Moody’s on June 13, 2024.
Progress on Alstom’s operational
priorities
During the first half of fiscal year 2024/25,
the Group mobilised around the commercial, operational and cost
efficiency plans:
- Quality of order intake during the
first half supports continuous growth in the margin in backlog, now
standing at 17.8% as of 30 September 2024, a +30bps improvement
versus 31 March 2024, in line with the expected +50bps per year
trajectory announced previously.
- With regards to production, the
Group is focusing on the ramp-up of several projects in startup
phase, with an expected output of 4,400 to 4,600 cars for the full
year, despite the recent supply chain issues encountered.
- Costs efficiency programs have been
progressing. SG&A over sales have reduced to 6.0% in September
2024 against the 6.6% baseline in March 2023.
***
Business update
-
Growth by offering greater value to customers
In the first half of fiscal year 2024/25, the
Group recorded €10.9 billion in orders, with commercial
success across multiple geographies, notably in Europe and across
various product lines, with a strong emphasis on Services. For the
same period last fiscal year, Alstom reported an order intake of
€8.4 billion. This 30% growth is largely attributed to the award of
the €3.6 billion S-Bahn Cologne
contract.
In Europe, Alstom achieved an order intake of €8.5
billion during the first half of fiscal year 2024/25, compared to
€5.2 billion for the same period in the previous fiscal year.
In Germany, Alstom was awarded a contract to
supply 90 Adessia Stream™ commuter trains to the local rail
passenger transport authorities, go.Rheinland and Verkehrsverbund
Rhein-Ruhr (VRR), for operation within the S-Bahn Köln network.
This contract also encompasses a long-term full-service agreement
lasting 34 years. Additionally, the Group entered into a framework
agreement with Hamburger Hochbahn AG to provide up to 374 new metro
trains and innovative signalling technology, with the first metro
trains call-off under this agreement for the initial section of the
U5 line valued at approximately €670 million.
In France, Alstom will supply 12 Avelia Horizon™
very high-speed trains to Proxima, a newly established private
operator. This marks a turning point for the French railway market,
as it opens the Atlantic coastlines to a private operator for the
first time in history. Avelia Horizon reduces operating costs
compared to other high-speed trains. The train has fewer bogies,
which account for 30% of the cost of preventive maintenance. With
the largest passenger capacity in the market, Avelia Horizon offers
great level of service and comfort, and consequently lowers
operating costs per seat. As part of this contract, Alstom will
also provide maintenance for 15 years, offering operational
performance while optimising the residual value to meet Proxima’s
specific needs. The total value of this order is nearly €850
million.
In Italy, the Group received a contract from
Mercitalia Rail for the supply of 70 Traxx™ Universal locomotives,
along with 12 years of comprehensive maintenance services. This
contract is valued at over €323 million and includes the option to
deliver an additional 30 locomotives and extend the maintenance
services.
In the Americas, Alstom
reported an order intake of €0.9 billion, compared to €1.5 billion
during the same period of the previous fiscal year, driven by the
awarding of several small contracts. Last year’s performance in the
Americas was largely influenced by two significant contracts: one
for the Southeastern Pennsylvania Transportation Authority (SEPTA)
and the other for the Connecticut Department of Transportation
(CTDOT).
In Asia/Pacific, the order
intake reached €1 billion, as compared to €1.7 billion over the
same period last fiscal year. In Australia, Alstom in partnership
with DT Infrastructures has been awarded by the Public Transport
Authority of Western Australia (PTA) a contract to provide the
design, supply, construction, installation, testing, commissioning,
and maintenance of high-capacity signalling technology for Perth’s
suburban rail network. Alstom’s contract share is valued at
approximately €0.7 billion.
In Africa/Middle East/Central
Asia, the Group reported €0.5 billion order intake driven
by a new services contract from an undisclosed customer, as
compared to €35 million over the same period last fiscal year.
As of 30 September 2024, the backlog stood at
€94.4 billion, providing the Group with strong visibility over
future sales.
Alstom’s sales amounted to €8,775 million for
the first half of fiscal year 2024/25, representing a growth of
3.9% on a reported basis and a strong 5.6% on an organic basis
compared with Alstom sales in the same period last fiscal year.
Rolling stock sales reached €4,531 million,
representing an increase of 2% on a reported basis and 2% on an
organic basis, driven by contracts ramp-up in France, Brazil and in
Asia/Pacific, offsetting legacy German and UK contracts phasing
out.
Services sales stood at €2,197 million, up 11%
on a reported basis and 12% on an organic basis, benefiting from
robust growth in Germany, Asia/Pacific and Middle East.
Signalling delivered consistent execution
year-on-year, achieving sales of €1,247 million, stable on a
reported basis and up 3% on an organic basis. The growth in
Asia/Pacific compensated for the ramp down in Canada and in the
US.
Systems sales grew 7% on a reported basis and
14% on an organic basis, and stood at €800 million, driven by a
good performance of projects in Mexico compensating the successful
completion of the Egyptian monorail.
***
2. Innovation by
Pioneering Smarter and Greener Mobility for All
As of end of September 2024, research and
development gross costs amounted to €(326) million, i.e. 3.7% of
sales, delivering on the Alstom In Motion strategy which is based
on three pillars: Autonomous mobility, Data factory and Mobility
orchestration. Net R&D amounts to €(256) million before PPA
amortisation.
Rolling Stock: homologation tests of the
Avelia Horizon™ double-deck high-speed trains are
planned in 2024 to enable a start of revenue service in 2025 for
SNCF in France. A new order for 12 trains based on the same product
has been received from Proxima and the development of international
configurations is ongoing.
Alstom is also continuously improving its single-deck high-speed
train now branded Avelia Stream™.
Meanwhile, Alstom has also further extended the Coradia
Stream™ range, with longer cars and 15kV traction chains,
primarily in Germany. This range will also include a battery
electric version.
Services: Alstom is progressing on the
development of its Maintenance Performance Centres in Europe, APAC
and North America, where Alstom will bring together expertise in
centralised locations to support multiple fleets, optimise
maintenance processes and better serve its customers. Alstom has
recently equipped the first trains from the Réseau express
métropolitain (REM) fleet with new predictive maintenance
technology, relying on AI algorithms to predict more accurately the
behaviour and condition of critical components, such as doors and
HVAC, to boost the overall operational performance and efficiency
of the system.
Signalling: this product line further enhances
its mainline portfolio and applications by accelerating
Onvia™ for ETCS Level 2 on the German market,
while working on ETCS onboard solutions for Level 2
and Level 3 including Automatic Train Operation. For metros
and trams, Alstom continues to advance its train-centric CBTC
solutions Urbalis™ (implemented in Paris L18,
Torino L1). This offering is completed by operational control
centres that support Alstom's extensive range of CBTC
solutions.
Alstom Innovation has continued to develop
its Autonomous Mobility solutions for passengers & freight
trains, successfully demonstrating remote driving tests and
autonomous driving & perception and remote driving capability
with its customer LNVG during InnoTrans. The company continues to
investigate on various fields, including Artificial Intelligence
for applications such as predictive maintenance, autonomous
systems, and operational efficiency, as well as simulations to test
and validate new technologies and systems prior to their deployment
in real-world scenarios.
***
3. Profitability
The adjusted EBIT margin has progressed from
5.2% over the first semester of fiscal year 2023/24 to 5.9% over
the first semester of fiscal year 2024/25, benefiting from an
increased volume for 20bps, a favourable mix for 5bps, industrial
efficiencies for 15bps as well as the costs savings programme
positive effects for 35bps, partly offset by scope impact for
negative (5)bps.
During the first half of fiscal year 2024/25, Alstom recorded €21
million capital gain mainly related to divestiture of the North
American conventional Signalling business for €18 million.
Costs related to the integration of Bombardier
Transportation were recorded for an amount of €(51) million. Other
expenses were recorded for a total of €(31) million, of which €(13)
million of legal fees.
Alstom’s EBIT before amortisation and impairment
of assets exclusively valued when determining the purchase price
allocation (“PPA”) stood at €382 million. This compares to €275
million in the same period last fiscal year.
Net financial result of the period amounted to
€(107) million as compared to €(98) million in the same period last
fiscal year, driven by lower net interest expenses due to the
execution of the deleveraging plan offset mainly by adverse FX
Forward Points and bank fees.
The effective tax rate before PPA has increased
temporarily, at 37% during this first half compared to 25% for the
same period last fiscal year, due to a non-cash write down of some
deferred tax assets in certain countries. Consistently with medium
term plan, the structural effective tax rate estimated remains at
around 27%.
The share in net income from equity investments
amounted to €60 million – excluding the amortisation of the
purchase price allocation (“PPA”) mainly from Chinese
joint-ventures of €(6) million.
Adjusted net profit, representing the group’s
share of net profit from continued operations excluding PPA and
impairment net of tax, amounts to €224 million for the first half
of fiscal year 2024/25. This compares to an adjusted net profit of
€174 million in the same period last fiscal year.
The Group’s Net profit/(loss) (Group share)
stood at €53 million for the first half of fiscal year 2024/25,
compared to €1 million in the same period last fiscal year.
***
4. Free cash flow
generation
The Group’s Free Cash Flow stands at €(138) million for the first
half of fiscal year 2024/25 as compared to €(1,119) million during
the same period last fiscal year.
Funds from Operations5 stand at €282
million, compared to €256 million in the same period last fiscal
year, driven by improved EBIT before PPA of €382 million compared
to €275 million in the same period last fiscal year and partially
offset by an increase in capital expenditure.
Cash generation was impacted by an unfavourable
€(420) million change in working capital compared to €(1,375)
million in the same period last fiscal year. This is mostly due to
the trade working capital5 build up by €(435) million,
impacted by the increase in inventory levels notably to prepare the
higher production in the second semester than in the first semester
due to seasonality of production.
Additionally, the Contract Working
Capital5 has improved by €15 million compared to €(645)
million in the same period last fiscal year. This evolution is due
to continued industrial activity, project working capital phasing
and supported by the level of downpayments received over the first
half of fiscal year 2024/25 and provisions usage.
***
5. Financial
structure
On 30 September 2024, the Group recorded a net debt position of
€(927) million, compared to the €(2,994) million net debt that was
reported on 31 March 2024, largely driven by the execution of
deleveraging plan for €2,321 million including capital increase,
issuance of subordinated perpetual securities and disposal of
business.
As announced at the time of the rights issue,
existing short-term debt as of 31 March 2024 was fully repaid for a
total amount of €1,208 million.
The Group’s cash and cash equivalents amounted
to €1,789 million on 30 September 2024, of which €949 million were
invested in cash equivalents.
In addition, the Group benefits from strong
liquidity with:
-
€1.75 billion short term Revolving Credit Facility maturing in
January 2027
-
€2.5 billion Revolving Credit Facility maturing in January
2029.
On 30 September 2024, both Revolving Credit
Facility lines remained undrawn.
As per Group’s conservative liquidity policy,
the €2.5 billion Revolving Credit Facility serves as a back-up of
the Group €2.5 billion NEU CP program in place.
Alstom has successfully executed its
deleveraging plan resulting in the termination of the additional
€2.25 billion credit facility agreement as announced
previously.
***
6. One Alstom team –
Agile, Inclusive and Responsible
Decarbonization is at the heart of Alstom’s strategy. The Group is
reducing its own direct and indirect emissions (Scope 1 & 2)
and is also committed to work with suppliers and customers (Scope
3) to contribute to Net Zero carbon in the mobility sector. Thus,
Alstom has signed a collaboration agreement with green steel
supplier SSAB which will support the objective of recycled content
materials in projects.
The Group confirmed its ambitious commitment to use 100% of
electricity from renewable energy sources by end of 2025, as part
of its global initiative to reduce its environmental footprint. At
the end of September 2024, the supply of electricity from renewable
sources reached 79%6 thanks to new green certificates
used in Canada on sites as La Pocatière and Saint-Bruno and in
Australia. In addition, Alstom continues installation of solar
panels on relevant sites.
Alstom’s Corporate Social Responsibility
performance is regularly evaluated by various rating agencies; the
Group maintained its presence among the CAC40 ESG index for the
4th consecutive year. Alstom strongly improved its
scoring to ECOVADIS questionnaire with a score of 86/100,
complemented by a “Platinum” distinction, ranking Alstom in the top
1% of the most engaged companies in environmental, sustainable
procurement, ethics, human rights, and social terms. Alstom kept an
AA score with the MSCI agency and is part of the 2024 Global 100
ranking from Corporate Knights. Those results reflect its strong
position and strategy on sustainability.
***
FY 2024/25 outlook
Following the full execution of the deleveraging
plan, outlook for FY 2024/25 is based on following main
assumptions:
- Supportive market demand
- FY 2024/25 downpayments consistent
with FY 2023/24
- End of integration of Bombardier
Transportation in FY 2024/25
Outlook for FY 2024/25:
- Book to bill above 1
- Sales organic growth: around
5%
- aEBIT margin around 6.5 %
- Free Cash Flow generation within
the €300 million to €500 million range
***
Mid to long-term ambitions are confirmed as per
the May 8, 2024, full year announcement.
***
Financial calendar
|
21 January 2025 |
FY 2024/25 Third Quarter – Orders & Sales |
|
13 May 2025 |
FY 2024/25 Full-Year results |
***
Conference Call
Alstom is pleased to invite the analysts to a
conference call presenting its half year results for fiscal year
2024/25 on Wednesday 13 November at 6:30 pm (Paris local time),
hosted by Henri Poupart-Lafarge, CEO and Bernard Delpit, EVP and
CFO.
A live audiocast will also be available on
Alstom’s website: Alstom’s Half Year results for FY 2024/25.
To participate in the Q&A session (audio
only), please use the dial-in numbers below:
- France: +33 (0) 1
7037 7166
- UK: +44 (0) 33 0551
0200
- USA: +1 786 697
3501
- Canada: 1 866 378
3566 (toll free)
Quote ALSTOM to the operator to
be transferred to the appropriate conference.
***
The Board of Directors met on November
13th, 2024, and reviewed the interim
financial statements and the management report as end of September
30th, 2024. The limited review
procedures on the condensed interim consolidated financial
statements were carried out by the statutory auditors. Their report
is currently being prepared. The consolidated financial statements
and notes related to this press release are available on the
www.alstom.com website.
ALSTOM™, Avelia™, Coradia™, Coradia Stream™ and
Traxx™ are protected trademarks of the Alstom Group.
1 3.9% on a reported basis
2 Non – GAAP. See definition in the appendix.
3 Geographic and product breakdowns of reported orders and sales
are provided in Appendix 1
4 Non - GAAP. See definition in the appendix.
5 Non - GAAP. See definition in the appendix.
6 12 months rolling
|
About Alstom
|
|
|
Alstom commits to contribute to a low carbon future by developing
and promoting innovative and sustainable transportation solutions
that people enjoy riding. From high-speed trains, metros,
monorails, trams, to turnkey systems, services, infrastructure,
Signalling and digital mobility, Alstom offers its diverse
customers the broadest portfolio in the industry. With its presence
in 64 countries and a talent base of over 84,700 people from 184
nationalities, the company focuses its design, innovation, and
project management skills to where mobility solutions are needed
most. Listed in France, Alstom generated revenues of €17.6 billion
for the fiscal year ending on 31 March 2024.
For more information, please visit www.alstom.com |
|
|
|
| |
Contacts |
Press:
Philippe MOLITOR - Tel.: +33 (0) 7 76 00 97
79
philippe.molitor@alstomgroup.com
Thomas ANTOINE - Tel. : +33 (0) 6 11 47 28 60
thomas.antoine@alstomgroup.com
Investor relations :
Martin VAUJOUR – Tel. : +33 (0) 6 88 40 17 57
martin.vaujour@alstomgroup.com
Estelle MATURELL ANDINO – Tel.: +33 (0) 6 71 37 47
56
estelle.maturell@alstomgroup.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 reported 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.
This press release 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 approval 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 Joint Global Coordinators, 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.
APPENDIX 1A – GEOGRAPHIC
BREAKDOWN
|
Reported figures |
H1 |
% |
H1 |
% |
|
(in € million) |
2023/24 |
Contrib. |
2024/25 |
Contrib. |
|
Europe |
5,232 |
62% |
8,511 |
78% |
|
Americas |
1,456 |
17% |
887 |
8% |
|
Asia/Pacific |
1,723 |
21% |
1,022 |
9% |
|
Middle East/Africa/Central Asia |
35 |
0% |
530 |
5% |
|
Orders by destination |
8,446 |
100% |
10,950 |
100% |
|
Reported figures |
H1 |
% |
H1 |
% |
|
(in € million) |
2023/24 |
Contrib. |
2024/25 |
Contrib. |
|
Europe |
4,875 |
58% |
4,911 |
56% |
|
Americas |
1,664 |
20% |
1,813 |
21% |
|
Asia/Pacific |
1,165 |
14% |
1,312 |
15% |
|
Middle East/Africa/Central Asia |
739 |
8% |
739 |
8% |
|
Sales by destination |
8,443 |
100% |
8,775 |
100% |
APPENDIX 1B – PRODUCT BREAKDOWN
|
Reported figures |
H1 |
% |
H1 |
% |
|
(in € million) |
2023/24 |
Contrib. |
2024/25 |
Contrib. |
|
Rolling stock |
3,818 |
45% |
4,415 |
40% |
|
Services |
2,141 |
26% |
4,111 |
38% |
|
Systems |
1,548 |
18% |
443 |
4% |
|
Signalling |
939 |
11% |
1,981 |
18% |
|
Orders by product line |
8,446 |
100% |
10,950 |
100% |
|
Reported figures |
H1 |
% |
H1 |
% |
|
(in € million) |
2023/24 |
Contrib. |
2024/25 |
Contrib. |
|
Rolling stock |
4,463 |
53% |
4,531 |
52% |
|
Services |
1,986 |
23% |
2,197 |
25% |
|
Systems |
751 |
9% |
800 |
9% |
|
Signalling |
1,243 |
15% |
1,247 |
14% |
|
Sales by product line |
8,443 |
100% |
8,775 |
100% |
APPENDIX 2 – INCOME STATEMENT
|
Reported figures |
Half-Year ended |
Half-Year ended |
|
(in € million) |
30 September 2023 |
30 September 2024 |
|
Sales |
8,443 |
8,775 |
|
Adjusted Gross Margin before PPA* |
1,165 |
1,228 |
|
Adjusted Earnings Before Interest and Taxes
(aEBIT)* |
438 |
515 |
|
Capital gain and other non-operating income |
1 |
21 |
|
Restructuring and rationalisation costs |
(7) |
(1) |
|
Integration, impairments, and other costs |
(92) |
(82) |
|
Reversal of net interest in equity investees pick-up |
(65) |
(71) |
|
EARNING BEFORE INTEREST AND TAXES (EBIT) BEFORE
PPA* |
275 |
382 |
|
Financial result |
(98) |
(107) |
|
Tax result |
(44) |
(101) |
|
Share in net income of equity investees |
53 |
60 |
|
Minority interests from continued operations |
(12) |
(10) |
|
Adjusted Net profit |
174 |
224 |
|
PPA net of tax |
(173) |
(169) |
|
Net profit – Continued operations, Group
share |
1 |
55 |
|
Net profit (loss) from discontinued operations |
- |
(2) |
|
Net profit (Group share) |
1 |
53 |
* See definition below
APPENDIX 3 – FREE CASH FLOW
Reported figures
(in € million)
|
Half-Year ended |
Half-Year ended |
|
30 September 2023 |
30 September 2024 |
|
EBIT before PPA |
275 |
382 |
|
Depreciation and amortisation1 |
211 |
234 |
|
JVs dividends |
106 |
92 |
|
EBITDA before PPA + JVs dividends |
592 |
708 |
|
Capital expenditure |
(86) |
(131) |
| R&D
capitalisation |
(70) |
(83) |
| Financial &
Tax cash out |
(164) |
(179) |
|
Others |
(15) |
(33) |
|
Funds from Operations |
256 |
282 |
| Trade Working
Capital changes |
(730) |
(435) |
|
Contract Working Capital changes |
(645) |
15 |
|
Free Cash Flow |
(1,119) |
(138) |
1 Before PPA
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 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.
Gross margin % on backlog
Gross Margin % on backlog is a KPI that presents the expected
performance level of firm contracts in backlog. It represents the
difference between the sales not yet recognized and the cost of
sales not yet incurred from the contracts in backlog. This % is an
average of the portfolio of contracts in backlog and is meaningful
to project mid- and long-term profitability.
Adjusted Gross Margin before
PPA
Adjusted Gross Margin before PPA is a KPI that presents 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 PPA in the
context of business combination as well as significant,
non-recurring “one off” items that are not expected to occur again
in subsequent years.
EBIT before PPA
Following the Bombardier Transportation acquisition and with effect
from the fiscal year 2021/22 condensed consolidated financial
statements, Alstom decided to introduce the “EBIT before PPA” KPI
aimed at restating its Earnings Before Interest and Taxes (“EBIT”)
to exclude the impact of amortisation of assets exclusively valued
when determining the PPA in the context of business combination.
This KPI is also aligned with market practice.
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, Alstom Sifang (Qingdao) Transportation Ltd.,
Jiangsu Alstom 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 amortisation of an asset exclusively
valued in the context of business combination, as well as
litigation costs that have arisen outside the ordinary course of
business.
- and including
the share in net income of the operational equity-accounted
investments
A non-recurring item is a “one-off” exceptional
item that is not supposed to occur again in following years and
that is significant.
Adjusted EBIT margin corresponds to Adjusted EBIT expressed as a
percentage of sales.
EBITDA + JV dividends
EBITDA before PPA plus dividends from joint ventures is the EBIT
before PPA, before depreciation and amortisation, with the addition
of the dividends received from joint ventures.
Adjusted net profit
The “Adjusted Net Profit” KPI restates Alstom’s net profit from
continued operations (Group share) to exclude the impact of
amortisation of assets exclusively valued when determining the 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. 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.
Funds from Operations
Funds from Operations “FFO” in the EBIT to FCF statement refers to
the Free Cash Flow generated by Operations, before Working Capital
variations.
Contract and Trade Working
Capital
Contract Working Capital is the sum of:
- Contract Assets
& Liabilities, which includes the Customer Down-Payments
- Current
provisions, which includes Risks on contracts and Warranties
Trade Working Capital is the Working Capital
that is not strictly contractual, hence not included in Project
Working Capital. It includes:
- Inventories
- Trade
Receivables
- Trade
Payables
- Other elements
of Working Capital defined as the sum of Other Current
Assets/Liabilities and Non-Current provisions
Net cash/(debt)
The net cash/(debt) is defined as cash and cash equivalents,
marketable securities and other current financial asset, less
borrowings.
Pay-out ratio
The pay-out ratio is calculated by dividing the amount of the
overall dividend with the “Adjusted Net profit from continuing
operations attributable to equity holders of the parent, Group
share” as presented in the management report in the consolidated
financial statements.
Organic basis
This press release includes performance indicators presented on a
reported basis and on an organic basis. Figures given on an organic
basis eliminate the impact of changes in scope of consolidation and
changes resulting from the translation of the accounts into Euro
following the variation of foreign currencies against the Euro.
The Group uses figures prepared on an organic basis both for
internal analysis and for external communication, as it believes
they provide means to analyse and explain variations from one
period to another. However, these figures are not measurements of
performance under IFRS.
| |
H1 2023/24 |
|
H1 2024/25 |
|
|
|
|
|
(in € million) |
Reported
figures |
Exchange
rate and scope impact |
Comparable
Figures |
|
Actual
figures |
|
|
% Var Act. |
% Var Org. |
|
Orders |
8,446 |
(26) |
8,420 |
|
10,950 |
|
|
29.6% |
30.0% |
|
Sales |
8,443 |
(132) |
8,311 |
|
8,775 |
|
|
3.9% |
5.6% |
| |
Full Year-ended
31 March 2024 |
|
Half Year-ended
30 September 2024 |
|
|
|
|
|
(in € million) |
Reported
figures |
Exchange
rate and scope impact |
Comparable
Figures |
|
Actual
figures |
|
|
% Var Act. |
% Var Org. |
|
Backlog |
91,900 |
(455) |
91,445 |
|
94,369 |
|
|
2.7% |
3.2.% |
- PR Alstom H1 2024-25 Results- EN - Final
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