ALSTOM SA : Alstom first half 2021/22 results – in line with
Capital Markets Day on 6 July 2021
Alstom first half
2021/22
results – in line with Capital Markets
Day on 6 July 2021
- Very solid
order intake of €9.7
billion for H1 2021/22, +81% versus proforma,
robust backlog at €76.4
billion
- Sales H1 2021/22 at €7.4
billion, +14% versus proforma
-
aEBIT1 2
margin at 4.5%
- Adjusted
net
profit2 3
of €172
million
- Free Cash
Flow2 at
€(1.46)
billion for H1 2021/22,
due to anticipated non-recurring
adverse working capital change.
Positive Free Cash Flow
H2 2021/22
confirmed
- Bombardier
Transportation integration fully
on track and progress on projects
stabilisation
- €400m synergies run
rate4 and
outlook 2024/25
confirmed
10 November 2021 – During the
first half of fiscal year 2021/22 (between 1 April 2021 and 30
September 2021), Alstom booked €9.7 billion of orders and sales
reached €7.4 billion. Book-to-bill ratio exceeded 1.3. Adjusted
EBIT reached €335 million leading to an adjusted EBIT margin of
4.5%. Adjusted net profit2 3 amounted to €172 million. Free Cash
Flow amounted to €(1,461) million. The backlog amounted to €76,362
million on 30 September 2021, providing strong visibility on future
sales.
“Our first semester results are in line with our
expectations as announced at the Capital Markets Day in July.
During the first semester, the Group had a very strong commercial
performance across all regions and product lines, illustrated by
significant wins in Mexico, Taiwan, or Europe. Those successes
leveraged the market momentum acceleration and the reinforced
Group’s profile which combines qualified teams, diverse product
portfolios and improved customer intimacy around the world. Our
operational performance is also consistent with our plan, with the
integration of Bombardier Transportation fully on track and the
progress on project stabilisation. The Group is now firmly engaged
on the continuous improvement of its financial trajectory.Alstom,
in the context of the COP 26, reiterates its commitments and
targets to contribute to the decarbonisation of our economy through
its green mobility solutions and innovations.”, said Henri
Poupart-Lafarge, Alstom Chairman and Chief Executive Officer.
Key figures5
Actual figures(in € million) |
Half-year ended 30 September 2020 |
Half-year ended 30 September 2020 proforma5 |
Half-year ended 30 September 2021 |
% change reported |
% change proforma5 |
Orders backlog |
40,001 |
|
76,362 |
91% |
|
|
Orders received2 |
2,652 |
5,364 |
9,726 |
267% |
81% |
|
Sales |
3,518 |
6,536 |
7,443 |
112% |
14% |
|
Adjusted EBIT1 2 |
263 |
|
335 |
27% |
|
|
Adjusted EBIT margin1 2EBIT before PPA2 |
7.5%197 |
|
4.5%179 |
|
|
|
Adjusted net profit2 3 |
168 |
|
172 |
|
|
|
Free Cash Flow2 |
(253) |
|
(1,461) |
|
|
|
***
Strategic and business
update
The enlarged Group profile made progress on all
four strategic pillars of its Alstom in Motion 2025 strategy in the
first half year of 2021/22:
1. Growth by offering
greater value to customers
The Group booked a very solid order intake of
€9,726 million in H1 2021/22 versus €5,364 million in H1 2020/21
proforma (+81%), sustained by a strong commercial dynamic.
Alstom order intake is fuelled by the strong
demand in Europe, totalling €6.3 billion of orders, notably with
large orders such as €1.4 billion order in Denmark for 100 Coradia
Stream trains and 15 years of maintenance. Alstom also signed
several contracts in Germany, including a signalling order in
Stuttgart with the Coburg rail node and an order for suburban
trains in Hamburg totalling €0.5 billion.
Alstom booked €3.4 billion of orders outside
Europe. In the Asia Pacific region, Alstom registered more than
€1 billion, including 25 new generation X’trapolis suburban
trains for €0.3 billion and the phase two of Taipei’s fully
automated Circular Line for €0.4 billion. Americas, with €2.3
billion of orders, confirmed a positive market momentum with the
Tren Maya large-scale intercity railway project for €1 billion and
60 new Flexity streetcars for the city of Toronto for €0.3
billion.The book-to-bill ratio exceeded 1.3. The backlog amounted
to €76.4 billion on 30 September 2021.
In H1 2021/22 (from 1 April to 30 September
2021), Alstom’s total sales reached €7,443 million versus €6,536
million in H1 2020/21 proforma (+14%), with recovery from last
year’s lockdown.
H1 2021/22 sales in Services amounting €1,559
million illustrates the positive impact of traffic pick-up. In
Rolling stock, the H1 2021/22 sales at €4,285 million were
sustained by the progressive ramp-up of production. In Signalling,
Alstom reported €1,077 million sales, benefiting from the sound
level of project execution. Systems delivered €522 million of sales
in H1 2021/22 with growth resuming thanks to the ramp-up of systems
projects in Canada, Egypt and Thailand.
Sales related to non-performing backlog,
representing sales on project under cost-to-cost method with a
negative margin at completion amounted to €1.29 billion in H1
2021/22. Alstom confirms that the execution of such non-performing
projects should last 2 to 3 years.
2. Innovation
by Pioneering Smarter and Greener Mobility for
All
Alstom reiterates its commitment to accelerate
smart, green and inclusive mobility innovation. The R&D
expenses in H1 2021/22 amounted to €220 million6.
During the first half of fiscal year 2021/22,
Alstom confirmed its leadership in hydrogen trains. Coradia iLint,
world's first hydrogen fuel cell passenger train which has already
cumulated more than 200,000 km in passenger service, made its first
runs this semester in Poland, Sweden and France. The Group has
reached another milestone to build an innovative and strong
hydrogen rail value chain by signing a Memorandum of Understanding
with Plastic Omnium to design onboard hydrogen storage solutions
for railway.
In September 2021, Alstom also reached important
milestones with its high capacity and energy-efficient electrical
rail solutions by presenting Avelia Horizon power car. Avelia
Horizon brings its predecessor’s benefits to a further level,
offering 20% more capacity along with energy consumption reduced by
20% compared to the previous generation.
Alstom has also been awarded an integrated
turnkey metro system with the train-to-train Signalling technology
for line 18 of the Ile-de-France network. The train-to-train
technology adds up to 30% in line capacity and reduces by up to 30%
the energy consumption.
In September 2021 also, Alstom and Airbus
Cybersecurity signed a worldwide cooperation agreement to provide
cybersecurity solutions and services to rail operators.
3. Efficiency
at scale, Powered by Digital
Alstom delivered in H1 2021/22 an adjusted EBIT7
of €335 million versus €263 million in H1 2020/21. It corresponds
to a 4.5% aEBIT margin, impacted by the trading of non-performing
backlog and progressive ramp-up of sales during the year.
Below adjusted EBIT, Alstom booked €(47) million
of restructuring and rationalisation costs including the closure of
Aptis activities and €(32) million of Bombardier
Transportation integration costs and other costs.
Adjusted net profit8 reached € 172 million
compared to €168 million the previous year, impacted by the volume
effect, the integration costs and other one-off items below
adjusted EBIT. Net profit from continued operations (Group share)
stood at €(24) million, including net effect from purchase price
allocation (PPA) after tax for €(196) million.
The gross margin backlog improved during H1
2021/22, based on trading low margin backlog and healthy gross
margin on order intake.
4. One Alstom
team Agile,
Inclusive and
Responsible
Alstom fully supports the Paris Agreement
emission reduction targets and has implemented its own fully
aligned targets9. The Group is being represented at COP26 to voice
the importance of sustainable transport for decarbonization of the
economy and promote alternatives to diesel in rail. It considers
the COPs ambition as a catalyst to bring novel solutions for green
and smart rail while further improving our environmental impact in
production.
In 2021/22, the Alstom Foundation will benefit
from a €2.2 million budget – a 50% increase which enabled the
selection of more projects than usual and to address several new
countries. 38 projects in 24 countries have been selected on
October 2021 by the Foundation Board, relating to the protection of
the environment, the access to energy and water, as well as the
economic and social development, focusing on street children and
orphans, and the employability of disadvantaged youth and
women.
Alstom is proud of having joined the Paris stock
exchange’s CAC 40 ESG® index after markets close on 17 September
2021, comprising the 40 companies within the CAC Large 60 Index
that have demonstrated the best environmental, social and
governance (ESG) practices. This inclusion demonstrates the Group’s
commitment to smart and sustainable mobility and underlines its
policy in ESG.
***
Balance
sheet
During the first half of fiscal year 2021/22,
the Group Free Cash Flow is negative at €(1,461) million. As
anticipated, the Free Cash Flow has been impacted by non-recurring
working capital build-up due to project stabilisation efforts,
phasing effect and industrial ramp-up.
The Group held €1,139 million of cash and cash
equivalent at the end of September 2021. In addition, Alstom
benefits from a strong liquidity with two Revolving Credit
Facilities for a total of €3,250 million10 both fully undrawn.
Consequently, the Group liquidity stood at
€4,389 million as of 30 September 2021, versus €4,500 million as of
end of March 2021.
Alstom has increased its NEU CP11 program
outstanding, from €250 million in March 2021 to €750 million end of
September 2021.
In July 2021, Alstom successfully issued a
two-tranches senior bond for a total amount of €1.2 billion. One
6-year tranche amounting to €500 million with a fixed coupon of
0.125% payable annually and one 9-year tranche amounting to €700
million with a fixed coupon of 0.5% payable annually.
***
Clear
global integration roadmap
The new organisation of Alstom was fully
deployed during H1 2021/22. The culture change roadmap has been
defined and is now deployed from H1 2021/22. Alstom confirms the
objective to generate €400 million cost synergies on annual run
rate basis by the fourth to fifth year after closing of the
acquisition of Bombardier Transportation on 29 January 2021
On processes convergence, Alstom has already
achieved about 40% of its objectives, focusing on the commercial
and tender processes and tools, as well as on the deployment of
strong engineering and quality governance principles. Alstom
expects to reach 80% of convergence of its processes by the end of
the fiscal year 2021/22. 100% of Rolling stock sites are already
using the new inventory management methodology.
On IT integration, Alstom has finalised the
digital factory roadmap, and has already started its roll-out in
some Bombardier Transportation legacy sites, leveraging the
maturity of the solutions and its past deployment experience in
Alstom.
The products convergence is on track. The
products and components portfolios of both legacies have been
reviewed extensively, enabling Alstom to offer the best of both
legacies in tenders. Alstom has already prepared its new integrated
R&D plan which is now being deployed across the organisation to
intensify and focus innovation efforts.
***
Outlook for fiscal year
2021/22
As the basis for its 2021/22 guidance, the Group
assumes neither further disruptions to the world economy, nor
significant supply-chain shortages, that would materially impact
the Group’s ability to deliver products and services.
- Book to bill ratio above 1 on the
back of a very good visibility on the short-term pipeline,
- Sales progression in H2 vs H1
2021/22 as a result of production ramp-up and stabilisation
efforts,
- Progressive recovery of aEBIT,
- Free Cash Flow generation as of H2
2021/22 and onwards.
***
Mid-term financial
trajectory and objectives
The outlook given in connection with the
Capital Markets Day
held on
6 July 2021 is
confirmed
- Sales: Between 2020/21 (proforma
sales of €14 billion) – and 2024/25, Alstom is aiming at sales
Compound Annual Growth Rate over 5% supported by strong market
momentum and unparalleled €76.4 billion backlog as of 30 September
2021, securing ca. €30 billion of sales over the next three years.
Rolling stock should grow above market rate, Services at solid
mid-single digit path and Signalling at high single digit
path.
- Profitability: The adjusted EBIT
margin should reach between 8% and 10% from 2024/25 onwards,
benefiting from operational excellence initiatives, the completion
of the challenging projects in backlog while synergies are expected
to deliver €400 million run rate between 2024/25 and 2025/26.
- Free Cash Flow: From 2024/25
onwards, the conversion from adjusted net income12 to Free Cash
Flow should be over 80%13 driven by mid-term stability of working
capital, stabilisation of CAPEX to around 2% of sales and cash
focus initiatives while benefiting from volume and synergies take
up.
- Alstom will maintain its
disciplined capital allocation focusing on maintaining its
investment grade profile while keeping flexibility and ability to
pursue growth opportunities through focused bolt-on M&A.
- Alstom is committed to delivering
sustained shareholder returns with a dividend pay-out ratio14 of
between 25% and 35%15
***
The management report and the consolidated
financial statements, as approved by the Board of Directors, in its
meeting held on 9 November 2021, are available on Alstom’s website
at www.alstom.com. These financial statements were audited by the
Statutory Auditors whose certification report is in the process of
being issued.
1 aEBIT includes equity-accounted investments
when these are considered to be part of the operating activities of
the Group. This mainly includes Chinese joint-ventures, namely
CASCO joint-venture for Alstom as well as, following the
integration of Bombardier Transportation, Bombardier Sifang
(Qingdao) Transportation Ltd., Bombardier NUG Propulsion System Co.
Ltd.2 Non - GAAP. See definition in the appendix3 Net profit from
continued operations (Group share) excluding the impact of
amortisation of assets exclusively valued when determining the PPA
in the context of business combination, net of the corresponding
tax effect.4 Objective to generate €400 million cost synergies on
annual run rate basis by the fourth to fifth year after closing of
the acquisition of Bombardier Transportation on 29 January 20215
Geographic and product breakdowns of reported orders, backlog and
sales are provided in Appendix 1. Any reference in this document to
variations « Pro forma like-for-like», orders and sales, correspond
to a combined, non-audited, group vision including Alstom legacy
fiscal year 2020/21 for the 1st Semester and legacy Bombardier
Transportation contribution for 6 months of their fiscal year 2020
(April to September 2020) and are in line with Alstom accounting
methods. The variations calculated using these combined figures
exclude any scope and Forex adjustments and are defined in the
appendix.6 Excluding €(38) million of amortisation expenses of
the purchase price allocation of Bombardier Transportation.7 Non -
GAAP. See definition in the apendix 8 net profit
from continued operations (Group share) excluding the
impact of amortisation of assets exclusively valued when
determining the PPA in the context of business combination, net of
the corresponding tax effect.9 On legacy perimetre10 €1,500
million long term Revolving Credit Facility maturing in October 26
with a 1-year extension option at lenders discretion remaining. A
first one-year extension option has been successfully exercised in
September 2021 with all lenders' consent. This facility is undrawn
at September closing. And €1,750 million short term Revolving
Credit Facility having a remaining 10-month maturity, and two
6-month extension options at the borrower's discretion up to August
2023. This facility is also undrawn at September closing.11
Negociable European Commercial Papers 12 Adjusted net
income 13 Subject to short term volatility14 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.15 Of adjusted net income
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About Alstom |
Leading
societies to a low carbon future, Alstom develops and markets
mobility solutions that provide the sustainable foundations for the
future of transportation. Alstom’s product portfolio ranges from
high-speed trains, metros, monorail and trams to integrated
systems, customised services, infrastructure, signalling and
digital mobility solutions. Alstom has 150,000 vehicles in
commercial service worldwide. With Bombardier Transportation
joining Alstom on 29 January 2021, the enlarged Group’s combined
proforma revenue amounts to €14 billion for the 12-month
period ended 31 March 2021. Headquartered in France, Alstom is now
present in 70 countries and employs more than 70,000 people.
www.alstom.com |
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Contacts |
Press:Coralie COLLET - Tel.: +33 (1) 57 06 18
81coralie.collet@alstomgroup.com Samuel MILLER - Tel.: +33
(1) 57 06 67 74Samuel.miller@alstomgroup.com Investor
relations:Martin VAUJOUR - Tel.: +33 (6) 88 40 17
57martin.vaujour@alstomgroup.com Claire LEPELLETIER –
Tel.: +33 (6) 76 64 33 06claire.lepelletier@alstomgroup.com |
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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.
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 visa from the AMF or, outside
France, pursuant to an offering document prepared for such purpose.
The information does not constitute any form of commitment on the
part of the Company or any other person. Neither the information
nor any other written or oral information made available to any
recipient or its advisers will form the basis of any contract or
commitment whatsoever. In particular, in furnishing the
information, the Company, the Banks, their affiliates,
shareholders, and their respective directors, officers, advisers,
employees or representatives undertake no obligation to provide the
recipient with access to any additional information
APPENDIX 1A – GEOGRAPHIC
BREAKDOWN
Actual figures |
H1 |
% |
H1 |
% |
(in € million) |
2020/21 |
Contrib. |
2021/22 |
Contrib. |
Europe |
1,088 |
41% |
6,256 |
64% |
Americas |
249 |
10% |
2,270 |
23% |
Asia / Pacific |
432 |
16% |
1,042 |
11% |
Africa / Middle East / Central Asia |
883 |
33% |
158 |
2% |
Orders by destination |
2,652 |
100% |
9,726 |
100% |
Actual figures |
H1 |
% |
H1 |
% |
(in € million) |
2020/21 |
Contrib. |
2021/22 |
Contrib. |
Europe |
20,398 |
51% |
41,681 |
55% |
Americas |
5,106 |
13% |
11,653 |
15% |
Asia / Pacific |
6,262 |
16% |
11,398 |
15% |
Africa / Middle East / Central Asia |
8,235 |
20% |
11,630 |
15% |
Backlog by destination |
40,001 |
100% |
76,362 |
100% |
Actual figures |
H1 |
% |
H1 |
% |
(in € million) |
2020/21 |
Contrib. |
2021/22 |
Contrib. |
Europe |
2,017 |
57% |
4,620 |
62% |
Americas |
557 |
16% |
1,226 |
16% |
Asia / Pacific |
424 |
12% |
1,045 |
14% |
Africa / Middle East / Central Asia |
520 |
15% |
552 |
7% |
Sales by destination |
3,518 |
100% |
7,443 |
100% |
APPENDIX 1B – PRODUCT
BREAKDOWN
Actual figures |
H1 |
% |
H1 |
% |
(in € million) |
2020/21 |
Contrib. |
2021/22 |
Contrib. |
Rolling stock |
890 |
34% |
5,023 |
51% |
Services |
820 |
31% |
1,522 |
16% |
Systems |
374 |
14% |
2,195 |
23% |
Signalling |
568 |
21% |
986 |
10% |
Orders by destination |
2,652 |
100% |
9,726 |
100% |
Actual figures |
H1 |
% |
H1 |
% |
(in € million) |
2020/21 |
Contrib. |
2021/22 |
Contrib. |
Rolling stock |
19,838 |
50% |
38,983 |
51% |
Services |
13,899 |
35% |
24,420 |
32% |
Systems |
2,218 |
5% |
6,348 |
8% |
Signalling |
4,046 |
10% |
6,611 |
9% |
Backlog by destination |
40,001 |
100% |
76,362 |
100% |
Actual figures |
H1 |
% |
H1 |
% |
(in € million) |
2020/21 |
Contrib. |
2021/22 |
Contrib. |
Rolling stock |
1,713 |
49% |
4,285 |
58% |
Services |
662 |
19% |
1,559 |
21% |
Systems |
452 |
13% |
522 |
7% |
Signalling |
691 |
19% |
1,077 |
14% |
Sales by destination |
3,518 |
100% |
7,443 |
100% |
APPENDIX 2 – INCOME STATEMENT
Actual figures |
Half-Year ended |
Half-year ended |
(in € million) |
30 September 2020 |
30 September 2021 |
Sales |
3,518 |
7,443 |
Adjusted Gross Margin before
PPA* |
634 |
949 |
Adjusted Earnings Before Interest and Taxes
(aEBIT)* |
263 |
335 |
Restructuring and rationalisation costs |
(7) |
(47) |
Impairment loss and other |
33 |
(32) |
Covid-19 inefficiencies & incremental costs |
(68) |
- |
Reversal of net interest in equity investees pick-up |
(24) |
(77) |
EARNING BEFORE INTEREST AND TAXES
(EBIT) BEFORE
PPA* |
197 |
179 |
Financial result |
(23) |
(20) |
Tax result |
(38) |
(43) |
Share in net income of equity investees |
37 |
65 |
Minority interests from continued operations |
(5) |
(9) |
Adjusted net profit* |
168 |
172 |
PPA net of tax |
(7) |
(196) |
Net profit – Continued operations, Group
share |
161 |
(24) |
Net profit (loss) from discontinued operations |
9 |
(2) |
Net profit (Group
share) |
170 |
(26) |
* see definition below
APPENDIX 3 – FREE CASH FLOW
Actual figures(in € million) |
Half-Year ended30 September
2020 |
Half-Year ended30 September
2021 |
EBIT before PPA |
197 |
179 |
Depreciation and amortisation1 |
94 |
226 |
Restructuring variation |
(15) |
10 |
Capital expenditure |
(54) |
(135) |
R&D capitalisation |
(39) |
(34) |
Change in working capital2 |
(433) |
(1,697) |
Financial cash-out |
(21) |
(10) |
Tax cash-out |
(30) |
(86) |
Other |
48 |
85 |
Free Cash
Flow |
(253) |
(1,461) |
1 Before PPA2 Change in working capital for €1,697
million corresponds to the €1,763 million changes in working
capital resulting from operating activities disclosed in the
condensed interim consolidated financial statements from which the
€66 million variations of restructuring provisions and of corporate
tax and other tax have been excluded.
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 receivedA
new order is recognised as an order received only when the contract
creates enforceable obligations between the Group and its customer.
When this condition is met, the order is recognised at the contract
value.
If the contract is denominated in a currency
other than the functional currency of the reporting unit, the Group
requires the immediate elimination of currency exposure using
forward currency sales. Orders are then measured using the spot
rate at inception of hedging instruments.
Book-to-Bill
The book-to-bill ratio is the ratio of orders
received to the amount of sales traded for a specific period.
Adjusted Gross Margin before
PPA
Adjusted Gross Margin before PPA is a Key
Performance Indicator to present the level of recurring operational
performance. It represents the sales minus the cost of sales,
adjusted to exclude the impact of amortisation of assets
exclusively valued when determining the purchase price allocations
(“PPA”) in the context of business combination as well as
non-recurring “one off” items that are not supposed to occur again
in following years and are significant.
Adjusted EBIT
Adjusted EBIT (“aEBIT”) is the Key Performance
Indicator to present the level of recurring operational
performance. This indicator is also aligned with market practice
and comparable to direct competitors. Starting September 2019,
Alstom has opted for the inclusion of the share in net income of
the equity-accounted investments into the aEBIT when these are
considered to be part of the operating activities of the Group
(because there are significant operational flows and/or common
project execution with these entities). This mainly includes
Chinese joint-ventures, namely CASCO joint-venture for Alstom as
well as, following the integration of Bombardier Transportation,
Bombardier Sifang (Qingdao) Transportation Ltd., Bombardier NUG
Propulsion System Co. Ltd.
aEBIT corresponds to Earning Before Interests
and Tax adjusted for the following elements:
- net restructuring expenses
(including rationalisation costs);
- tangibles and intangibles
impairment;
- capital gains or loss/revaluation
on investments disposals or controls changes of an entity;
- any other non-recurring items, such
as some costs incurred to realise business combinations and
amortisation of an asset exclusively valued in the context of
business combination, as well as litigation costs that have arisen
outside the ordinary course of business;
- and including the share in net
income of the operational equity-accounted investments.
A non-recurring item is a “one-off” exceptional
item that is not supposed to occur again in following years and
that is significant.Adjusted EBIT margin corresponds to Adjusted
EBIT in percentage of sales.
EBIT before PPA
Following the Bombardier Transportation
acquisition and with effect from these Fiscal year 2021/22
condensed interim consolidated financial statements, Alstom decided
to introduce the “EBIT before PPA” indicator aimed at restating its
Earnings Before Interest and Taxes (“EBIT”) to exclude the
impact of amortisation of assets exclusively valued when
determining the purchase price allocations (“PPA”) in the context
of business combination, net of the corresponding tax effect. This
indicator is also aligned with market practice.
The non-GAAP measure adjusted EBIT (aEBIT
hereafter) indicator reconciles with the GAAP measure EBIT as
follows:
|
Half-Year ended |
Half-year ended |
(in € million) |
30 September 2020 |
30 September 2021 |
Adjusted Earnings Before Interest and Taxes
(aEBIT) |
263 |
335 |
aEBIT (in % of Sales) |
7.5% |
4.5% |
Restructuring and rationalisation costs |
(7) |
(47) |
Integration, acquisition and other costs |
33 |
(32) |
Covid-19 inefficiencies and incremental costs |
(68) |
- |
Reversal of Net interest in equity investees pick-up |
(24) |
(77) |
Earnings Before Interest and Taxes (EBIT) before
PPA |
197 |
179 |
PPA amortisation* |
(7) |
(217) |
Earnings before Interest and Taxes (EBIT) |
190 |
(38) |
* Gross amount before tax
Adjusted net profitFollowing the Bombardier
Transportation, Alstom decided to introduce the “adjusted net
profit” indicator aimed at restating its net profit from continued
operations (Group share) to exclude the impact of amortisation of
assets exclusively valued when determining the purchase price
allocations (“PPA”) in the context of business combination, net of
the corresponding tax effect. This indicator is also aligned with
market practice.
This non-GAAP measure adjusted net profit
indicator reconciles with the GAAP measure net profit from
continued operations attributable to equity holders (net profit –
Group share) as follows:
(in € million) |
Half-Year ended30 September
2020 |
Half-Year ended30 September
2021 |
Adjusted net profit |
168 |
172 |
Amortisation of assets valued when determining the purchase price
allocation |
(7) |
(196) |
Net profit from continued operations attributable to equity
holders |
161 |
(24) |
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.
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 into the actual amount of
cash generated or used by operations.
A reconciliation of Free Cash Flow and net cash
provided by operating activities is presented below:
|
Half-Year ended |
Half-year ended |
(in € million) |
30 September 2020 |
30 September 2021 |
Net cash provided by / (used in) operating
activitiesOf which operating flows provided / (used) by
discontinued operations |
(162) |
(1,293) |
Capital expenditure (including capitalised R&D costs) |
(92) |
(169) |
Proceeds from disposals of tangible and intangible assets |
1 |
1 |
Free Cash
Flow |
(253) |
(1,461) |
Net cash/(debt)
The net cash/(debt) is defined as cash and cash
equivalents, marketable securities and other current financial
asset, less borrowings.
|
Half-Year ended |
Half-Year ended |
(in € million) |
30 September
2020 |
30 September
2021 |
Cash and cash equivalents |
1,953 |
1,139 |
|
Other current financial assets |
25 |
37 |
|
Less: |
|
|
Current financial debt |
384 |
1,074 |
Non-current financial debt |
751 |
2,628 |
Net cash/(debt) at the end of the period |
843 |
(2,526) |
Proforma like-for-like new
Alstom
The "proforma like-for-like New Alstom"
variations, orders and sales, correspond to the like-for-like
variation of Alstom after the acquisition of Bombardier
Transportation integrating Bombardier Transportation over the
comparable periods preceding the acquisition. The pre-acquisition
financial data used to calculate the "proforma like-for-like New
Alstom" variations, sales, are extracted from the historical
accounts of Alstom and Bombardier Transportation respectively. In
order to ensure the comparability of the results, the proforma
restatements as presented in chapter 3 of the URD “Unaudited
proforma Condensed Financial Information as of 31 March 2021" have
been applied. Data related to the commercial performance correspond
to orders intake recorded by Alstom and Bombardier Transportation
integrating Bombardier Transportation over the comparable periods
preceding the acquisition. These indicators are not presented on an
organic basis and, therefore, are not restated in order to
eliminate the impact of changes in scope of consolidation and
changes resulting from the translation of the accounts into euro
following the variation of foreign currencies against the euro.
Sales Q1 2020/21 and Q2 2020/21 of Bombardier Transportation were
converted at the average quarterly foreign exchange rate EUR/USD of
1/1.1004 for Q1 and 1/1.1648 for Q2, communicated in Bombardier Inc
Q2 and Q3 2020 financial report. Orders received Q1 2020/21 and Q2
2020/21 of Bombardier Transportation were converted at the
quarterly closing foreign exchange rate EUR/USD of 1/1.1284 for Q1
and 1/1.1702 for Q2, as communicated in Bombardier Inc Q2 and Q3
2020 financial report.
Adjusted income statement, EBIT and Adjusted Net
Profit
This section presents reconciliation between consolidated income
statement and the MD&A management view.
|
Total Consolidated |
|
Adjustments |
|
Total Adjusted |
(in € million) |
Income statement (GAAP) |
(1) |
(2) |
(3) |
Income Statement
(Management view) |
September 30,2021 |
|
|
|
|
|
Sales |
7,443 |
|
|
|
7,443 |
Cost of sales |
(6,694) |
179 |
21 |
|
(6,494) |
Adjusted Gross Margin before
PPA(1)(2) |
749 |
179 |
21 |
- |
949 |
R&D expenses |
(258) |
38 |
|
|
(220) |
Selling expenses |
(162) |
|
|
|
(162) |
Administrative expenses |
(309) |
|
|
|
(309) |
Equity pick-up |
- |
|
|
77 |
77 |
Adjusted EBIT (1)(2) |
20 |
217 |
21 |
77 |
335 |
Other income / (expenses) |
(58) |
|
(21) |
|
(79) |
Equity pick-up (reversal) |
- |
|
|
(77) |
(77) |
EBIT / EBIT before PPA (2) |
(38) |
217 |
- |
- |
179 |
Financial income |
6 |
|
|
|
6 |
Financial expenses |
(26) |
|
|
|
(26) |
Pre-tax income |
(58) |
217 |
- |
- |
159 |
Income tax charge |
(22) |
(21) |
|
|
(43) |
Share in net income of equity-accounted investments |
65 |
|
|
|
65 |
Net profit (loss) from continued operations |
(15) |
196 |
- |
- |
181 |
Net (profit) loss attributable to non controlling interests |
(9) |
|
|
|
(9) |
Net profit (loss)/Adjusted Net Profit
(loss)(2) |
(24) |
196 |
- |
- |
172 |
Purchase Price Allocation (PPA) |
- |
(196) |
|
|
(196) |
Net profit (loss) from discontinued operations |
(2) |
|
|
|
(2) |
Net profit (Group share) |
(26) |
- |
- |
- |
(26) |
Note: (1) figures not reported as such in the
income statementNote: (2) Alternative performance indicator for
management reporting only
Adjustments 30 September 2021:
(1) Impact of business
combinations: amortization of assets exclusively valued when
determining the purchase price allocation (PPA), including
corresponding tax effect;(2) Impact of Aptis
closure: reclassification of operational results as non-recurring
items following Alstom’s announced and planned discontinuance of
Aptis activities;(3) Reclassification of share in
net income of the equity-accounted investments when these are
considered to be part of operating activities of the
Group.
|
Total Consolidated |
|
Adjustments |
|
Total Adjusted |
(in € million) |
Income statement (GAAP) |
(1) |
(2) |
(3) |
Income Statement
(Management view) |
September 30,2020 |
|
|
|
|
|
Sales |
3,518 |
|
|
|
3,518 |
Cost of sales |
(2,952) |
|
68 |
|
(2,884) |
Adjusted Gross Margin before
PPA(1)(2) |
566 |
- |
68 |
- |
634 |
R&D expenses |
(125) |
|
|
|
(125) |
Selling expenses |
(101) |
|
|
|
(101) |
Administrative expenses |
(169) |
|
|
|
(169) |
Equity pick-up |
- |
|
|
24 |
24 |
Adjusted EBIT(1)(2) |
171 |
- |
68 |
24 |
263 |
Other income / (expenses) |
19 |
7 |
(68) |
|
(42) |
Equity pick-up (reversal) |
- |
|
|
(24) |
(24) |
EBIT / EBIT before
PPA(2) |
190 |
7 |
|
|
197 |
Financial income |
1 |
|
|
|
1 |
Financial expenses |
(24) |
|
|
|
(24) |
Pre-tax income |
167 |
7 |
- |
- |
174 |
Income tax charge |
(38) |
(1) |
|
|
(39) |
Share in net income of equity-accounted investments |
37 |
|
|
|
37 |
Net profit (loss) from continued operations |
166 |
7 |
- |
- |
173 |
Net (profit) loss attributable to non controlling interests |
(5) |
|
|
|
(5) |
Net profit (loss)/Adjusted Net profit
(loss)(2) |
161 |
7 |
|
|
168 |
Purchase Price Allocation (PPA) |
- |
(7) |
|
|
(7) |
Net profit (loss) from discontinued operations |
9 |
|
|
|
9 |
Net profit (Group share) |
170 |
- |
- |
- |
170 |
Note: (1) figures not reported as such in the
income statementNote: (2) Alternative performance indicator for
management reporting only
Adjustments 30 September
2020:
(1) Impact of
business combinations: amortisation of assets exclusively valued
when determining the purchase price allocation (PPA), including
corresponding tax
effect;(2) Impact from Covid-19
reclassified as non- recurring
items;(3) Reclassification of
share in net income of the equity-accounted investments when these
are considered to be part of operating activities of the Group.
million long term Revolving Credit Facility maturing in October
26 with a 1-year extension option at lenders discretion remaining.
A first one-year extension option has been successfully exercised
in September 2021 with all lenders’ consent. This facility is
undrawn at September closing. And €1,750 million short term
Revolving Credit Facility having a remaining 10-month maturity, and
two 6-month extension options at the borrower’s discretion up to
August 2023. This facility is also undrawn at September
closing.
- 20211110 PR H1 2021-22 final
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