Annual Results Fiscal Year 2007/08 7 May 2008
Agenda 1. Key events of the year Page 3 2. Operational review by Sector Page 16 3. Financial results Page 36 4. Outlook Page 45 P 2
Key events of the year Key figures Very strong performance In € million March 2007 March 2008 Variation Guidance +23% actual/ Orders received 19,029 23,472 +24% organic* +21% actual/ Backlog 32,350 39,222 +23% organic* +19% actual/ Sales 14,208 16,908 +15% organic* +19% organic* +35% actual/ Income from operations 957 1,295 7.5% operating margin +35% organic* Operating margin 6.7% 7.7% Net income 547** 852 +56% actual Free cash flow 745 1,635 +119% actual Dividend per share 0.8€ 1.6€*** x2 (*) same scope and exchange rates P 3 (**) restated following a change in accounting for pensions (***) to be proposed in the next AGM
Key events of the year Orders received In € billion Record commercial activity in all Sectors 23.5 +23% actual 19.0 7.5 +24% organic* 5.4 Transport 4.4 Power Service 4.1 Power Systems 11.6 9.5 March 07 March 08 P 4 (*) same scope (retreatment of disposals and acquisitions) and exchange rate
Key events of the year Orders received by country of destination Orders well balanced by region and Sector Europe (50%) North America (13%) Asia (14%) Middle East & Africa South America (19%) (4%) Power Systems Power Service Transport P 5
Key events of the year Backlog In € billion Increase in volume and quality 39.2 +21% actual 32.3 17.3 +23% organic* Transport Power Service 15.2 Power Systems 5.9 5.2 16.0 11.9 March 07 March 08 P 6 (*) same scope (retreatment of disposals and acquisitions) and exchange rate
Key events of the year Project execution A strict process in place at all levels, from Units to Corporate Risk Committee chaired by CEO Tendering Execution Warranty Contract Commissio- phase award phase -ning period Review of projects during execution Review & approval of tenders Close monitoring of costs and margins Selectivity in orders Focus on lead-times Protection of the backlog (currency, raw materials) � hedging, firm quotations, escalation clauses Assessment of terms & conditions A systematic control in place since 2004 • Year after year, execution of the backlog globally in line with initial assumptions • P 7
Key events of the year Capital expenditure Optimising the industrial base Grow production from • Capital expenditure (in € million) Adapt cost base low cost countries (Poland, Mexico, India…) 374 30 +34% Increase blade Debottleneck • production manufacturing (Europe / 280 85 Mexico / China) and 49 Corporate & Other capacity of our foundry in 70 Poland to produce critical Transport 68 parts of turbines Power Service 65 189 Power Systems Capture growing USA for gas and steam • markets applications (incl. 98 nuclear); China for hydro… March 07 March 08 P 8
Key events of the year Human Resources Managing our forces Headcount 31 March 08 Headcount March 2008: 76,000 • Africa/ME − 10,500 recruitments over 12 months Asia − 4,500 new employees through acquisitions 1% 17% Particular efforts put on high growth regions (e.g. 60% • 22% Europe Americas Asia…) and key functions (e.g. project directors…) Recruitment 2007/08 Africa/ME Asia 3% 25% Europe 47% 25% Americas P 9
Key events of the year Research & Development Fuelling future growth 5 partnerships for pilot • Chilled ammonia CO 2 capture programmes plants in USA, Canada, Sweden, Norway Joint development • Advanced amines with Dow 2 pilots in Germany • Oxy-combustion and France Prototype unveiled in La Rochelle in • AGV February 2008 New CITADIS adapted for existing networks Tramway • Development of URBALIS system for metros and • Signalling ATLAS for main lines (ERTMS solution) Increase in R&D expenses by 21% (from €456 million to €554 million ) • P 10
Key events of the year Sustainable development (1) A key priority Adhesion to Global Compact in March 2008 • Initiatives − Respect of principles for environmental protection, human rights, labour standards and business ethics Creation of a Foundation for the Environment • − Objective: support initiatives taken by our employees in the area of environmental protection in partnership with local organisations − 15 projects selected Innovation Board created to sponsor innovation within the Group • − partnership with 100 universities Action plan put in place in all major • Environment sites to reduce energy consumption and Greenhouse Gases (GHG) intensities − Target : -20% by 2015 P 11
Key events of the year Sustainable development (2) Strong voluntary actions for safety • Social Injury Frequency Rate at work: − Major improvement to be 12 10 continued 8 Alstom University • 6 3.8 − 3,500 trainees/year, 80 4 programs in 7 languages 2 − 10 e-learning courses in self- 0 service 5 5 6 7 7 8 5 6 6 7 0 0 0 0 0 0 0 0 0 0 - - - - - - - - - - r v v r v r l r l l u u u a a a o a o o − 4 regional campuses M J J M J M N M N N New employee share programme • in 2008: ‘Alstom Sharing’: 32% subscription rate Charter for sustainable development communicated to our key suppliers • Sourcing Audit programme on application of the charter by suppliers • P 12
Key events of the year M&A External development to boost organic growth Coal : Wuhan Boiler Co in China • Acquisitions Wind : Ecotècnia in Spain • Nuclear : JV with Atomenergomash in Russia • Joint Ventures Signalling : JV with Balfour Beatty in UK and • Ireland Train maintenance : JV with RENFE in Spain • Rolling stock : cooperation agreement with • Partnerships Transmashholding in Russia P 13
Key events of the year Share Strong performance of the stock price Shareholders distribution 31 March 08 Base €98.31 Individual as of 02/04/07 Alstom CAC 40 shareholders 180 Institutional 7% 160 investors 30% 140 62% 1% 120 Employees 100 80 Rest of Europe 60 22% 40 France Americas 22% 54% 7 7 7 7 7 8 8 7 7 7 7 8 8 0 0 0 0 0 0 0 0 0 0 0 0 0 - - - - - - - - - - - - - r y n l g t n r p v c b r 2% u c p a p a u u e a e O o e J A M A M J A D J F S N Asia/Middle East 215,000 shareholders worldwide • Split of shares by 2 proposed in the next AGM (to be implemented in July) • P 14
Agenda 1. Key events of the year Page 3 2. Operational review by Sector Page 16 3. Financial results Page 36 4. Outlook Page 45 P 15
Power General context Favourable market conditions to continue High volume for new equipment • − Demand in fast growing countries driven by strong power needs (China, India, Russia, South Africa…) − Replacement market in developed countries Diversification of technologies influenced • by several factors: fuel prices, regulations, energy independence, public acceptance… Service/retrofit activities driven by • ageing of the fleet (30% of installed base older than 30 years) P 16
Power Key figures (1) In € million March 2007 March 2008 Variation Orders Power Systems 9,535 11,569 +21% Power Service 4,058 4,401 +8% Total Power 13,593 15,970 +17% Backlog Power Systems 11,873 16,039 +35% Power Service 5,219 5,900 +13% Total Power 17,092 21,939 +28% Sales Power Systems 5,673 7,768 +37% Power Service 3,198 3,602 +13% Total Power 8,871 11,370 +28% P 17
Power Key figures (2) In € million March 2007 March 2008 Variation Income from op Power Systems 201 415 +106% Power Service 510 592 +16% Total Power 711 1,007 +42% Operating margin Power Systems 3.5% 5.3% Power Service 15.9% 16.4% Total Power 8.0% 8.9% P 18
Power Key achievements 2007/08 38 gas turbines (of which 18 GT26) booked: Gas • RECORD YEAR ! Successes mainly in Europe and • Middle East/Africa Operational priorities: capacity ramp-up, preparation of GT 24 comeback Acquisition of Wuhan completed • Coal Biggest contracts ever awarded in South Africa • (turbine islands of 9.6 GW)* Operational priorities: deployment of activity in Asia and management of environmental concerns in USA and Europe (*) Bravo contract (4.8GW) to be booked in fiscal year 2008/09 P 19
Power Key achievements 2007/08 ‘Arabelle’ technology chosen in the USA & China • Nuclear JV in Russia implemented • Operational priorities: participation in worldwide nuclear revival (South Africa, India, Russia…) Large contracts awarded in Vietnam, Uganda, • Hydro Brazil and China New opportunities in Asia and South America • Operational priorities: increase in China, establishment of India and further development of refurbishment in Europe and North America Smooth integration of Ecotècnia • Wind Operational priorities: management of growth within Alstom (increase of Europe, expansion in North America and Asia) P 20
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