Alstom Investor Day May 11th, 2022
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Alstom Investor Day May 11th, 2022
Agenda
Introduction
Henri Poupart-Lafarge, Chairman and Chief Executive Officer
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Rolling Stock and Components
Danny Di Perna, Executive VP and Chief Operating Officer
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Stabilise
Danny Di Perna, Executive VP and Chief Operating Officer
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Integrate
Benjamin Fitoussi, President Rolling Stock and Components – Development & Operations
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Transform
Benjamin Fitoussi, President Rolling Stock and Components – Development & Operations
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Questions & Answers
© ALSTOM SA 2022. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given orshould be relied on that it is complete or correct or will apply to any particular project. This will depend on the technical and commercial circumstances. It is
provided without liability and is subject to change without notice. Reproduction, use, alter or disclosure to third parties, without express written authorisation, is strictly prohibited. 2
1
Introduction
Henri Poupart-Lafarge,
Chairman
and Chief Executive Officer
A successful first year integrating Bombardier Transportation,
setting foundation for effective turnaround
Very robust commercial momentum and high customer satisfaction 8.1
Net Promotor
Backlog execution delivered as per target Score
80%
One Alstom team: Global key processes and IT tools convergence on track Key global
processes converged
100%
Integrated R&D plan for further competitiveness and innovation as a differentiator Products convergence
validated
€102m
Synergies delivered as planned in first year, run-rate better than expected Synergies delivered in 2021/22
Integration acceleration, synergies on-track and confirmed financial trajectory
© ALSTOM SA 2022. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given orshould be relied on that it is complete or correct or will apply to any particular project. This will depend on the technical and commercial circumstances. It is
provided without liability and is subject to change without notice. Reproduction, use, alter or disclosure to third parties, without express written authorisation, is strictly prohibited. 4
Our One Alstom team at the heart of our journey
A SUCCESSFUL FIRST YEAR OF INTEGRATION
1 million connections to our learning platforms in 6 months
86% employees are aware of the new Alstom Values 1
80% employees are proud to work for Alstom1
SOLID PEOPLE FOUNDATION AND A GREAT DYNAMIC
● An attractive employer, with 9,000 permanent new hires in 2021/22
● A learning organization grooming talents and reaching 4,500
experts & +750 internal trainers
1. Alstom Employee engagement survey 2021
© ALSTOM SA 2022. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given orshould be relied on that it is complete or correct or will apply to any particular project. This will depend on the technical and commercial circumstances. It is
provided without liability and is subject to change without notice. Reproduction, use, alter or disclosure to third parties, without express written authorisation, is strictly prohibited. 5
Services
Our strong order booking demonstrates customer confidence
… SECURING FUTURE SALES
€4.2 BILLION OF SERVICES ORDERS BOOKED IN 2021/22 AND MAINTAINING GROWTH
Book-To-Bill Ratio
> 1.1 each year
over the past 5 years
DALLAS (10 YEARS OPERATION & MAINTENANCE – US) SANTIAGO M7 (20 YEARS FULL MAINTENANCE – Chile)
Contracts 20+ years
50+ in length
TRANSDEV (10 YEARS MAINTENANCE SUPPORT – France) METROLINX (94 BiLevel OVERHAUL– Canada)
ILLUSTRATION OF LONG TERM PARTNERSHIP: METROREX (Romania)
Since 2004 Contract renewed in 2022
MAINTENANCE AND OVERHAUL 15 YEARS FULL MAINTENANCE AND OVERHAUL
● Over 60 different types of refurbishment ● 82 Metro trains
● Increasing train availability from 56% to 99.96% ● 8.5 million km per year in average
© ALSTOM SA 2022. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given orshould be relied on that it is complete or correct or will apply to any particular project. This will depend on the technical and commercial circumstances. It is
provided without liability and is subject to change without notice. Reproduction, use, alter or disclosure to third parties, without express written authorisation, is strictly prohibited. 6
Signalling
Progressing well, in line with our ambition
#2 IN A MARKET UNDER CONSOLIDATION STRONG COMMERCIAL ACHIEVEMENTS IN 2021/22
In € - Sales linked to all Signalling activities (estimated) ● Mainline: Cambridge (UK), Bursa– Yenisehir–
Osmaneli (Turkey), Stuttgart (Germany)
Global competitor 1 (*) 2.8 Bn ● Supporting new products for Urban CBTC: Urbalis Fluence*
(**) 2.5 Bn introduced through Grand-Paris L18 (France) & Torino L1 (Italy)
Global competitor 2 (***) ~2.4/2.5 Bn ● Captured long-term service contract: BHP Billiton (Australia)
Global competitor 3 0.3 Bn
* Urbalis Fluence, train-to-train communication based control system, w orld-first implementation for Métropole
Européenne de Lille
All other main competitors 1.7 Bn
Accessible UNIFE market for European Companies (70% of total market, excluding Russia, China)
(*) Proforma figure based on Alstom estimation and FY 2021 results for Global competitor 1 (subject to EU approval and
pending closing of M&A transaction) (**) including Signalling activities into Systems (***) Alstom estimation
CONVERGING PRODUCTS AND SOLUTIONS CONVERGENCE
ATLAS Urbalis Fluence
(Ex-Alstom) (Ex-Alstom)
Developments
MAINLINE
Ebicab limited to backlog Onboard
(Ex-Bombardier
Urbalis 400
execution & frame (Ex-Alstom) URBAN
Transportation) contracts (est. 2-3y) Minimal gap approach on all
MAINLINE Cityflo 650 CBTC for new projects
Trackside
Wayside (Ex-Bombardier
solutions Transportation)
© ALSTOM SA 2022. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given orshould be relied on that it is complete or correct or will apply to any particular project. This will depend on the technical and commercial circumstances. It is
provided without liability and is subject to change without notice. Reproduction, use, alter or disclosure to third parties, without express written authorisation, is strictly prohibited. 7
Turnkey
Sustain our leadership and deliver strong results
STRONG MARKET DRIVERS ALSTOM’S KEY ASSETS
Strong underlying urban railway ● Metro Turnkey leader for several years
transportation market
● Proven track record in system integration
and optimization activities
Increasing complexity of railway
solutions ● Largest portfolio of solutions on the
market
New turnkey projects in some ● Bundling with long-term service contracts
emerging countries
● Established local partners network (e.g.
Tren Maya & Tel Aviv tram)
STRONG ACHIEVEMENTS IN 2021/22
● Strong commercial performance with record order intake and 100% hit rate
● Back on the tram Turnkey market – preferred bidder of Tel Aviv Green Line
● Automated People Mover brownfield solid commercial performance
(Miami, Tampa, Atlanta)
© ALSTOM SA 2022. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given orshould be relied on that it is complete or correct or will apply to any particular project. This will depend on the technical and commercial circumstances. It is
provided without liability and is subject to change without notice. Reproduction, use, alter or disclosure to third parties, without express written authorisation, is strictly prohibited. 8
2
Rolling Stock
and Components
Danny Di Perna
Executive VP and
Chief Operating Officer
Alstom is the market leader in Rolling Stock & Components
RSC IS A LARGE AND STEADY MARKET ALSTOM: A CLEAR RSC MARKET LEADER
UNIFE accessible market 2020-2022 RSC Market shares 2019-2021, in % including turnkey share
(WRMS 2020) – Average in € Bn / year
5%
38%
8%
30% Regional/Commuter HS/VHS
10%
Urban Light Rail
+1.6%1
11%
€45 bn Wagons Coaches 15% 14%
Locomotives 8% 7% 3%
17% 19%
Alstom Comp.1
Siemens Comp.
Stadler2 Comp.
Hitachi3 Comp.
CAF 4 Comp.
Skoda 5
RECENT WINS
AUSTRALIA SWEDEN NORWAY CHILE GERMANY UK
100 Flexity™ low-floor Next 25 Zefiro Express high-speed 30 Coradia Nordic™ 37 Metropolis™ trains, signalling 130 Coradia Stream™ HS2 Very high Speed 54 trains
generation Trams trains €380 MILLION system and 20-year inter-regional trains and & 12-year maintenance
€700 MILLION €650 MILLION maintenance 30-year maintenance €1.1 BILLION
€355 MILLION €2.5 BILLION
1. CAGR of 1.6% based on 2020-2022 to 2023-2025 period
© ALSTOM SA 2022. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given orshould be relied on that it is complete or correct or will apply to any particular project. This will depend on the technical and commercial circumstances. It is
provided without liability and is subject to change without notice. Reproduction, use, alter or disclosure to third parties, without express written authorisation, is strictly prohibited. 10An industry leading product portfolio
PLATFORM & TECHNOLOGIES ENABLE
CUSTOMISATION & STANDARDISATION COVERING ALL SEGMENTS
Avelia™ Capacity
Coradia™ Traxx™
Locomotive
Metropolis™
Innovia™ Avelia™ Innovia™ Metro Commuter
Movia™
High &
Flexity™
very high-
Citadis™
Regional speed
Mitrac™ & intercity
Metropolis™
Metropolis™
X’trapolis™ Citadis™ Innovia™
Light rail
Prim a™ X’trapolis™
vehicle
X’trapolis™
Monorail
Citadis™
& APM
Flexity™ Speed up to 360km/h
A significant installed base : ~30% of global installed fleet
© ALSTOM SA 2022. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given orshould be relied on that it is complete or correct or will apply to any particular project. This will depend on the technical and commercial circumstances. It is
provided without liability and is subject to change without notice. Reproduction, use, alter or disclosure to third parties, without express written authorisation, is strictly prohibited.
11Component building blocks drive competitiveness and product performance
COMPLETE SPECTRUM OF BROADEST COMPONENT VERTICALISED
GREEN & CLEAN SOLUTIONS PORTFOLIO IN THE INDUSTRY WITH SELECTIVE M&A
H 2, GREEN TRACTION, BATTERY Bogies & Drives
Vertical integration of core
Brakes
components and key
technology bricks to further
GREEN leverage service business
MOBILITY
& enhance competitiveness
PREDICTIVE MAINTENANCE Traction • Brakes pads specialist
(major consumable)
• Disk brakes specialist
SMART
MOBILITY
INTERIORS: CLEAN SURFACES Train Control & IS Medium power H2 fuel cell
specialist allowing Alstom to
master this key technology
INCLUSIVE AND
HEALTHIER
brick throughout its whole
MOBILITY™ lifecycle
© ALSTOM SA 2022. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given orshould be relied on that it is complete or correct or will apply to any particular project. This will depend on the technical and commercial circumstances. It is
provided without liability and is subject to change without notice. Reproduction, use, alter or disclosure to third parties, without express written authorisation, is strictly prohibited. 12A unique global-local presence and capability
WORLD-CLASS WELL BALANCED CAPABILITIES BETWEEN
COMPETENCIES CUSTOMER PROXIMITY AND COST COMPETITIVENESS
Rolling Stock & Components Key Sites SIEGEN KATOWICE
+50 Production
sites in 22
countries
DERBY BARCELONA
24m hours
manufacturing
across all key SAHAGUN HORNELL
regions
LA ROCHELLE QINGDAO
16m hours
engineering
delivered in our
Excellence hubs Engineering & Manufacturing Engineering Manufacturing
MADHEPURA SAVIGLIANO
© ALSTOM SA 2022. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given orshould be relied on that it is complete or correct or will apply to any particular project. This will depend on the technical and commercial circumstances. It is
provided without liability and is subject to change without notice. Reproduction, use, alter or disclosure to third parties, without express written authorisation, is strictly prohibited. 13Technology investments targeted for a greener, smarter and more inclusive mobility
KEEPING THE EDGE OPTIMIZING ENHANCING
IN ZERO EMISSION SOLUTION TOTAL COST OF OWNERSHIP PASSENGER COMFORT
● Partnership to decarbonise ● Avelia Horizon under dynamic test ● PEPA™ filter, an antiviral HVAC filter
freight with an H2 solution in H2 2022 in Velim test center that catches and kills viruses,
including the coronavirus
● First battery train tested in passenger
operation with Deutsche Bahn
● Hybrid Régiolis
tested in France -20% +20% -20% -99.8% -99.9%
Energy consumption Capacity Energy consumption Virus reduction Bacteria reduction
Unrivalled core R&D capabilities
© ALSTOM SA 2022. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given orshould be relied on that it is complete or correct or will apply to any particular project. This will depend on the technical and commercial circumstances. It is
provided without liability and is subject to change without notice. Reproduction, use, alter or disclosure to third parties, without express written authorisation, is strictly prohibited. 14Ambition to grow profitability and strengthen our leading market position
GROW PROFITABLY AND DELIVER STRATEGIC ORIENTATION
TO CUSTOMER COMMITMENTS AND KEY INITIATIVES
PLATFORMS
Market share target +3 to 4pp
by FY2024/25 • Platforming standardisation & components building blocks
• Tendering focused on optimizing design solutions driving
aEBIT target High single profitable growth
by FY2024/25
digit • Green mobility innovation and technology roadmap
DEVELOPMENT & OPERATIONS
• Leverage best-cost engineering hubs & manufacturing
sites
• Cost reduction enabled with new supply chain scale
• Use Design-to-Cost methodology for design efficiency
• Adherence to Quality Gate process
© ALSTOM SA 2022. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given orshould be relied on that it is complete or correct or will apply to any particular project. This will depend on the technical and commercial circumstances. It is
provided without liability and is subject to change without notice. Reproduction, use, alter or disclosure to third parties, without express written authorisation, is strictly prohibited. 15A clear path towards growth and profitability restoration
GROW PROFITABLY… … MITIGATE GLOBAL HEADWINDS
Footprint
utilisation
1 Manage industrial & material & labor
Product Platforming & inflation
convergence Standardisation
Operational Digitalisation
Execute project excellence
backlog:
Acquisition value
- on-time
capture Secure delivery of electronic component
- at current GM
Synergies from
2 material & plan for longer order lead-times
Continue technical process
resource deployment standardisation
- current backlog
- new early-phase
Continue to mitigate supply chain &
3 logistics risk of material supply
FY2021/22 STABILISE INTEGRATE TRANSFORM FY2024/25
Three steps to get to high single digit aEBIT by 2024/25
© ALSTOM SA 2022. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given orshould be relied on that it is complete or correct or will apply to any particular project. This will depend on the technical and commercial circumstances. It is
provided without liability and is subject to change without notice. Reproduction, use, alter or disclosure to third parties, without express written authorisation, is strictly prohibited. 16Process rigour and execution focus create value for customers and stakeholders
INTEGRATE
STABILISE PROFITABLE TRANSFORM
GROWTH
© ALSTOM SA 2022. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given orshould be relied on that it is complete or correct or will apply to any particular project. This will depend on the technical and commercial circumstances. It is
provided without liability and is subject to change without notice. Reproduction, use, alter or disclosure to third parties, without express written authorisation, is strictly prohibited. 172.1
STABILISE
Turning around
difficult projects
Danny Di Perna
Executive VP and
Chief Operating OfficerA Rolling Stock and Components backlog of €41bn,
comprising ~130 active projects
PROJECT BACKLOG BREAKDOWN PER SEGMENT
Light Rail
26 ~€3bn Regional
27 ~€10bn
projects backlog projects backlog
26 ~€7bn 9 ~€5bn
Urban High-Speed
projects backlog projects backlog
22 ~ €12bn 16 ~€4bn
Commuter projects backlog Locomotives projects backlog
~130 projects screened to define actions for turnaround
© ALSTOM SA 2022. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given orshould be relied on that it is complete or correct or will apply to any particular project. This will depend on the technical and commercial circumstances. It is
provided without liability and is subject to change without notice. Reproduction, use, alter or disclosure to third parties, without express written authorisation, is strictly prohibited. 19FY2021/22 key Rolling Stock and Components backlog
and sales information
€41 bn €8.6 bn ~130 Projects1
Backlog Traded Sales FY 2021/22
Urban
High-speed
Regional
Locomotive
~110 Projects
Commuter ~130 Active
Light Rail
Projects
Components
€2.3 bn ~20 Projects
Sales at zero gross margin
A portion of the backlog needs technical expertise and project management support
1. Projects w ith Residual Value above €50m as of 31 March of 2022
© ALSTOM SA 2022. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given orshould be relied on that it is complete or correct or will apply to any particular project. This will depend on the technical and commercial circumstances. It is
provided without liability and is subject to change without notice. Reproduction, use, alter or disclosure to third parties, without express written authorisation, is strictly prohibited. 20A comprehensive portfolio risk assessment completed
130 PROJECTS THOROUGHLY ASSESSED (H1 2021/22) HIGHLIGHTING MAIN ROOT CAUSES
Operational exposure Illustration
• Incomplete or partial compliance in
requirements management process
HIGH CRITICALITY • Inadequate project planning,
~20 projects scheduling and gate management
process
MEDIUM CRITICALITY
~40 projects • Resource and competencies not
sufficiently focused on critical project
execution
• Supply management – more focus on
LOW CRITICALITY requirements and quality control
~70 projects
• Product policy not sufficiently aligned
to meet customer requirements
Financial exposure
Significant progress achieved to reduce High Criticality project risks
© ALSTOM SA 2022. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given orshould be relied on that it is complete or correct or will apply to any particular project. This will depend on the technical and commercial circumstances. It is
provided without liability and is subject to change without notice. Reproduction, use, alter or disclosure to third parties, without express written authorisation, is strictly prohibited. 21Project stabilisation action plan deployed with expert task forces
TASK FORCE EXPERT GROUPS LAUNCHED
Inject development experts
Review all customer requirements
Align project scheduling and resources
Enforce Design for Quality and Project Management standards
Punctual support on demand and extensive visibility on critical project progress
~60 ~50 ~250 >40 >600
Projects Subject-matter Resources mobilised in Maturity Assessment Project Reviews
supported by HQ experts from HQ regions for critical projects reviews performed (15 streams per maturity
(over the last 12 months) assessment)
© ALSTOM SA 2022. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given orshould be relied on that it is complete or correct or will apply to any particular project. This will depend on the technical and commercial circumstances. It is
provided without liability and is subject to change without notice. Reproduction, use, alter or disclosure to third parties, without express written authorisation, is strictly prohibited. 22Systematic process and actions deployed to reduce
project risks are yielding results
APPROACH TO SUPPORT CRITICAL PROJECTS RISK CRITICALITY INDEX EVOLUTION
4.0 4.0 4.0
3.4
• Systematic and comprehensive
maturity assessment based on 3.0 3.0 3.0
common set of 15 criteria -26% 2.5
2.0 2.0 -20% 2.0
~2
Illustration 1.0 1.0 1.0
QCD project
TENDER CRITICALITY feasibility
MATRIX April March March
assessment
Early phase 2021 2022 2023
Monitor &
project
EARLY PHASE drive
reviews Maturity
PROJECTS expected Deep dive Stabilise and secure End of stabilisation
assessment
results legacy projects new projects robust process
PROJECT REVIEW Risk Criticality Index score methodology
ALERT 1: Project on track as per requirements and plan
Task force
2: Minor gaps impacting project objectives with a secured action plan
deployment
CUSTOMER / REGION 3: Significant gaps impacting project objectives
ALERT 4: Project schedule and financial performance not to plan
© ALSTOM SA 2022. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given orshould be relied on that it is complete or correct or will apply to any particular project. This will depend on the technical and commercial circumstances. It is
provided without liability and is subject to change without notice. Reproduction, use, alter or disclosure to third parties, without express written authorisation, is strictly prohibited.
23Project Management best practices being deployed
on all new projects
LEVERAGING STANDARD DEVELOPMENT PROCESS TOOLS… CLEAR OBJECTIVES
Compliance to main Requirements Coverage & Design for
Technical Performance targets Validation of Dev. Assumptions Operation & Services
100%
Launch Gate Review
on time
12 weeks
Critical Project Review 0
with 1st maturity assessment
Illustrations
…AND LESSONS LEARNED FROM DIAGNOSIS AND PROBLEM SOLVING
Project staffing core team Establish clear KPIs dashboard
Contract awareness Configuration management discipline
Savings review End-to-end project schedule optimization
Risk & Opportunities review Validation strategy optimization
© ALSTOM SA 2022. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given orshould be relied on that it is complete or correct or will apply to any particular project. This will depend on the technical and commercial circumstances. It is
provided without liability and is subject to change without notice. Reproduction, use, alter or disclosure to third parties, without express written authorisation, is strictly prohibited. 24Reinforced action plan to mitigate inflation cost effect
INCREASED PRESSURE OVER H2 2021/22 MULTI-DISCIPLINARY ACTION PLAN
Evolution of relevant cost items indexes
Indexed, Yearly evolution 2019-2025E, Base = 2019
1 Price adjustment on new tenders mirroring cost increase
2 Commercial contract pricing adjustment formulas
3 Reinforced selectivity for fix and firm price contracts
4 Back-to-back with suppliers for fix and firm contracts
5 Long term planning and secure material supplies
6 Apply stringent cost measures to mitigate headwinds
Source: Oxf ord Economics, HSBC, IBIS World, Deutsche Bank, Freightos Baltic Global Index, U.S. Bureau of Labor Statistics, Federal Reserv e Economic Data, Oliv er Wy man analy sis
© ALSTOM SA 2022. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given orshould be relied on that it is complete or correct or will apply to any particular project. This will depend on the technical and commercial circumstances. It is
provided without liability and is subject to change without notice. Reproduction, use, alter or disclosure to third parties, without express written authorisation, is strictly prohibited. 25Supply chain turbulence mitigated in 2021/22
SUPPLY CHAIN CONSTRAINTS DOUBLE DOWN ON ACTION PLAN IN FY 2022/23
Electronic components material capacity issues 1 Crisis cell to optimise scarce material allocation
● Semiconductor chip shortages aggravated by the pandemic
In-depth analysis of semiconductor needs
● Electronic components and systems deliveries
2 across the complete value chain
potentially impacting production flow
Longer-term planning and commitments
● Ordering lead times significantly expanded 3 with suppliers to secure allocation
4 Develop and use alternate sources
Disruption on goods delivery
Product adaptation and redesign for
● International freight activities under pressure 5 interchangeability to reduce dependencies
● Delays on freight activities increasing Adapt production process (i.e. re-sequencing)
6 to mitigate component shortage
© ALSTOM SA 2022. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given orshould be relied on that it is complete or correct or will apply to any particular project. This will depend on the technical and commercial circumstances. It is
provided without liability and is subject to change without notice. Reproduction, use, alter or disclosure to third parties, without express written authorisation, is strictly prohibited. 262.2 INTEGRATE
Working as One
Benjamin Fitoussi
President Rolling Stock
and Components –
Development & OperationsINTEGRATE
Work as One
OUR TARGET
Bring back the operational performance to nominal in March 2023
and deliver the committed synergies
1 2 3 4
BRING OUR
ALIGN AND OPTIMISE
WORK AS OPERATIONS TO THE PURSUE CASH FOCUS
OUR PRODUCT
ONE ALSTOM REQUIRED LEVEL OF PROGRAM
PORTFOLIO
PERFORMANCE
© ALSTOM SA 2022. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given orshould be relied on that it is complete or correct or will apply to any particular project. This will depend on the technical and commercial circumstances. It is
provided without liability and is subject to change without notice. Reproduction, use, alter or disclosure to third parties, without express written authorisation, is strictly prohibited. 281 Now able to operate as ONE COMPANY
1
March 2021 March 2022 March 2023 March 2025
80% convergence Full deployment Full digitalisation
KPIS & DATA MANAGEMENT Digital systems boosting process alignment & performance
aligned
● Digital suite with PLM (Delmia/Catia)
>80% RSC PROCESSES Engineering:
● Worldwide connected network
converged
REGIONAL and SITE
deployment at full speed Manufacturing: ● Advanced Operations System powered by
>90% RSC sites engaged
Supply Chain & Procurement: ● Powered by
as backbone to sustain process GSI roll-out 15,000 users +12,000 users in 35 additional sites
Global Single Instance Today By 2025
& competence development.
© ALSTOM SA 2022. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given orshould be relied on that it is complete or correct or will apply to any particular project. This will depend on the technical and commercial circumstances. It is
provided without liability and is subject to change without notice. Reproduction, use, alter or disclosure to third parties, without express written authorisation, is strictly prohibited. 291 Operational performance growing with integration
1
Pre-acq Mar Mar Mar Mar Pre-acq Mar Mar Mar Mar Pre-acq Mar Mar Mar Mar Pre-acq Mar Mar Mar Mar
AT ‘21 ‘22 ’23 ‘25 AT ‘21 ‘22 ’23 ‘25 AT ‘21 ‘22 ’23 ‘25 AT ‘21 ‘22 ’23 ‘25
Pre-acq Pre-acq Mar Mar Mar Mar Pre-acq Mar Mar Mar Mar Pre-acq Mar Mar Mar Mar
’21-’22 ‘22-’23 ’23-’24 ’24-’25
BT + AT AT ‘21 ‘22 ’23 ‘25 AT + BT AT ‘21 ‘22 ’23 ‘25
‘21 ‘22 ’23 ‘25
Operational performance back to nominal by March 2023
© ALSTOM SA 2022. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given orshould be relied on that it is complete or correct or will apply to any particular project. This will depend on the technical and commercial circumstances. It is
provided without liability and is subject to change without notice. Reproduction, use, alter or disclosure to third parties, without express written authorisation, is strictly prohibited. 302 Align and optimize our product portfolio
2
A CLEAR ROADMAP TO EXTEND MARKET COVERAGE AND TIME-TO-MARKET WHILE IMPROVING COSTS
From Day 1 FY 2021/22 FY 2022/23 FY 2023/24
INVENTORY CONVERGE RATIONALISE STANDARDISE AS PART OF TRANSFORM
A DEFINED DECISION TREE AT ALL LEVELS OF THE BILL OF MATERIAL
Option A
Project Oriented Product Oriented → • Improved market coverage
Confirm obvious
platform choices • Best product selection for
Train
tenders and on-going
Option B project to drive costs
Sub-system reduction
Optimize through
“best-of-both” approach
Components
Option C 10%
R&D
Maintain specific Optimization
product approach Parts
© ALSTOM SA 2022. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given orshould be relied on that it is complete or correct or will apply to any particular project. This will depend on the technical and commercial circumstances. It is
provided without liability and is subject to change without notice. Reproduction, use, alter or disclosure to third parties, without express written authorisation, is strictly prohibited. 312 Convergence finalised, rationalisation on-going on tenders
2
ILLUSTRATION AT ROLLING STOCK LEVEL ILLUSTRATION AT SUB-SYSTEM AND COMPONENT LEVEL
Regional platform Before acquisition Today
BOGIES & DRIVES 35 active products
Coradia Stream™
7 product families 20 reference solutions
Talent™ 3 74 active products
TRACTION 43 active products
Urban platform 8 platforms 20 reference solutions
Metropolis™ Large Gauge Metropolis™ 66 active products
Movia™ India for India Repeat Orders without Cyber
TC&IS
Security can remain with MITRAC
2 different platforms
New Projects and Reference
>50 different products
Commuter platform Solutions to migrate to AGATE4
Fasteners/ cables/ Raw Mat
Metra US double deck coaches
Eg cables 250 ref BT and 130 Parts list unified and rationalised
ref Alstom
100% -47% -42% -50% -50%
Platform convergence Converters Bogies references TCMS references Preferred Parts list
already validated
© ALSTOM SA 2022. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given orshould be relied on that it is complete or correct or will apply to any particular project. This will depend on the technical and commercial circumstances. It is
provided without liability and is subject to change without notice. Reproduction, use, alter or disclosure to third parties, without express written authorisation, is strictly prohibited. 323 Establish best-in-class project execution and capabilities
3
2025 Targets
90%
Achieve excellence in our Continuous improvement focus Best-in-class partner Gate Reviews
tender and project execution and right-first-time culture for our customers Go On Time
PM2020: FROM A METIER BASED TO A SUB-SYSTEM BASED ORGANISATION
90%
Delivery On Time
TREN MAYA NORSKE TOG PROJECT MANAGEMENT
ARCHITECTURE & INTEGRATION
SUB-SYSTEMS MANAGEMENT
Complete deployment Currently onboarding
90%
Manufacturing
CAIRO Throughput
~12 projects ~30 projects
On-boarded by March 2022 On-boarded by March 2023
Ready to deploy
© ALSTOM SA 2022. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given orshould be relied on that it is complete or correct or will apply to any particular project. This will depend on the technical and commercial circumstances. It is
provided without liability and is subject to change without notice. Reproduction, use, alter or disclosure to third parties, without express written authorisation, is strictly prohibited. 333 Procurement on-track to capture value, leveraging Group size
3
1st Supplier day 2nd Supplier day
March 2021 March 2022 March 2023
April 2021 Q1 2021/22
SOURCING SUMMITS SUPPLIER DAY NEGOTIATIONS 4 LEVERS MOVING FORWARD
DONE WITH TOP
600 SUPPLIERS ● Co-development
● Design-to-cost
● Understanding of ● 300 suppliers invited ● 3 waves ● Standardisation specifications
ex-AT and ex-BT
● Introduction to Value ● Great success despite ● Demand management
strategies, spend
and supplier base Capture objectives and difficult context of
processes inflation
● Initial Value Capture
ambition
● Panel optimization based on QCD performance ● Recurring value capture, one-off specific efforts
55%
BCC PURCHASING IN 2021/22 ● Claim settlement on legacy projects
© ALSTOM SA 2022. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given orshould be relied on that it is complete or correct or will apply to any particular project. This will depend on the technical and commercial circumstances. It is
provided without liability and is subject to change without notice. Reproduction, use, alter or disclosure to third parties, without express written authorisation, is strictly prohibited. 343 Driving the right quality standards across our value chain
3
STRENGTHEN QUALITY LEAN AND EFFICIENT
COMPETENCE PROCESSES CUSTOMER SATISFACTION
● Engineering (Right First Time) ● Development For Quality ● Reliability Growth & Warranty
● Industrial (Zero Defect Program) ● Focus major production Ramp-Ups ● Reactivity, Return of Experience
● Supplier Quality in Region ● First Article Inspection, Statistic ● Prevention in Tender Phase
Control Critical Processes
Quality Academy Lean 6σ Belt Program Customer survey program
Year 2021/22 :
2,655 trainers Year 2021/22 : Customer Satisfaction
2,565 training 25 6σ Ambassadors
sessions 1060 people qualified
Pre-aq Mar’21 Mar‘22 Mar’23 Mar’25
49,011 people trained
© ALSTOM SA 2022. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given orshould be relied on that it is complete or correct or will apply to any particular project. This will depend on the technical and commercial circumstances. It is
provided without liability and is subject to change without notice. Reproduction, use, alter or disclosure to third parties, without express written authorisation, is strictly prohibited. 354 Pursue Cash Focus programme
4
AMBITION KEY INITIATIVES 2024/25 OBJECTIVES
● Optimise Cash across ● Cash-based selectivity in tenders
Alstom entire value chain
● Alignment strategic & tactical planning
● Cash conscious supplier contracts
Free Cash
● Optimise hard inventories level
Flow: 80%
● Increased CAPEX planning conversion from
adjusted net income
● Enhance cash culture through training
and personal objectives
© ALSTOM SA 2022. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given orshould be relied on that it is complete or correct or will apply to any particular project. This will depend on the technical and commercial circumstances. It is
provided without liability and is subject to change without notice. Reproduction, use, alter or disclosure to third parties, without express written authorisation, is strictly prohibited. 36Synergies on-track and run-rate target1
uplifted to €475 – 500m from FY 2025/26 onwards
SYNERGIES RUN RATE (IN € MILLION)² 2025/26 SOURCES OF UPLIFT
475-500
BONDS FINANCING
400 ● Incremental industrial
PROCUREMENT SYNERGIES efficiency and best
REAL ESTATE use of products
through massification
MANAGEMENT OVERLAPS ● Incremental
FOOTPRINT procurement
PRODUCTION EFFICIENCY
synergies
TENDERS AND BEST USE
102 OF PRODUCTS
R&D
PROCESSES
FY 2021/22 FY 2022/23 FY 2023/24 FY 2024/25 FY 2025/26
1. Initial target w as annual run rate of €400m by the fourth to fifth year after closing 2. graph for illustrative purpose, not at scale
© ALSTOM SA 2022. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given orshould be relied on that it is complete or correct or will apply to any particular project. This will depend on the technical and commercial circumstances. It is
provided without liability and is subject to change without notice. Reproduction, use, alter or disclosure to third parties, without express written authorisation, is strictly prohibited. 372.3
TRANSFORM
Growing profitably
Benjamin Fitoussi
President Rolling Stock
and Components –
Development & OperationsTRANSFORM
1 2 3 4
ACCELERATE THE EFFORT GET THE BEST OF OUR
FURTHER DIGITALIZE LEVERAGE OUR PEOPLE
OF STANDARDISATION / DIVERSE FOOTPRINT
OUR OPERATIONS SKILLS AND CAPABILITIES
MODULARIZATION AND SCALE ADVANTAGE
© ALSTOM SA 2021. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given orshould be relied on that it is complete or correct or will apply to any particular project. This will depend on the technical and commercial circumstances. It is
provided without liability and is subject to change without notice. Reproduction, use, alter or disclosure to third parties, without express written authorisation, is strictly prohibited. 391 Recent RSC orders are based on standardised,
reliable and proven platforms
1
Illustration of major 2021/22 wins based on “ best-seller” products
CORADIA STREAM™ METROPOLIS™ X’TRAPOLIS™
● 29 High-Capacity electric double- ● 55 large gauge Metros for Cairo L1 ● Up to 750 new commuter rail cars
deck multiple units for DB Regio for Ireland’s DART
● 36 Metropolis trains for São Paulo
● Up to 40 electric inter-regional trains Metropolitan Train System L 8 / 9 ● 25 six-car trains for Melbourne’s
to Romanian Railway Reform suburban rail network
Authority ● 29 fully automated Metropolis trains
to Taipei as part of a turnkey project ● 42 trains for Tren Maya
More than 700 Coradia More than 60 customers 5,500 X’trapolis™ cars
Stream™ sold within 5 years worldwide ordered so far in the world
© ALSTOM SA 2022. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given orshould be relied on that it is complete or correct or will apply to any particular project. This will depend on the technical and commercial circumstances. It is
provided without liability and is subject to change without notice. Reproduction, use, alter or disclosure to third parties, without express written authorisation, is strictly prohibited. 401 Platform product management and standardisation
68 components, 48 buy modules
1
PRODUCT TENDER PROJECT
Standard Operability
& Performance Reference
Solution 1
Variability management
Standardisation Assess Standardisation Coeff (Re-use level)
Standard architecture Coeff (Re-Use) minimum at every project gate!
& interface Reference
Solution xx
Standard Design rules
Standard Modules
Measurement in tender & project.
STANDARDISATION COEFF ILLUSTRATION - INTERIOR
Deviation per red Sol (%)
Interior design Generic concept
Front end architectural design
DSB RENFE
© ALSTOM SA 2021. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given orshould be relied on that it is complete or correct or will apply to any particular project. This will depend on the technical and commercial circumstances. It is
provided without liability and is subject to change without notice. Reproduction, use, alter or disclosure to third parties, without express written authorisation, is strictly prohibited. 412 Increased Engineering efficiency by leveraging Best Cost
Countries (BCC) site specialisation
2
POLAND | EUROPEAN PROJECT SUPPORT
Aligned organisation model
> Katowice
Deployed target processes
Massify specialisation & return of experience :
- New development sites organized by product INDIA | GLOBAL RSC DEVELOPMENT
- 10 train sites & 9 components sites
> Bangalore
> Hyderabad +500 engineers
BCC capacity today at 32% ahead of Plan > Vadodara Per year til March 2025
30% 32% > 40%
March 21 March 22 2025
MEXICO | LOCAL PROJECT SUPPORT
Continuous built up of BCC sites > Sahagun
e.g. in Poland, India and Mexico
© ALSTOM SA 2022. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given orshould be relied on that it is complete or correct or will apply to any particular project. This will depend on the technical and commercial circumstances. It is
provided without liability and is subject to change without notice. Reproduction, use, alter or disclosure to third parties, without express written authorisation, is strictly prohibited. 422 A unique global-local manufacturing footprint to meet growing
demand for localisation while delivering competitiveness
2
Customers are looking for reliable, tailored and competitive solutions delivered close to them
TENDERS WON THANKS TO ABILITY
PROXIMITY TO DELIVER LOCAL CONTENT
TREN MAYA (MEXICO) AMTRAK HIGH-SPEED (BUY AMERICAN ACT)
Commercial reach in 70+ countries
Delivery sites located in strategic markets
Manufacturing hubs in all key regions
ALSTOM SAHAGUN PLANT ALSTOM HORNELL PLANT
CUSTOMER
WORLD-CLASS CAPABILITIES INTIMACY HS2 VERY HIGH SPEED (UK) LIGHT RAIL TRAMS (AUSTRALIA)
Excellence hubs in key geographies
Sharing our worldwide expertise with
our customers
Global competencies networks
ALSTOM DERBY & CREWE PLANTS ALSTOM DANDENONG PLANT
© ALSTOM SA 2022. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given orshould be relied on that it is complete or correct or will apply to any particular project. This will depend on the technical and commercial circumstances. It is
provided without liability and is subject to change without notice. Reproduction, use, alter or disclosure to third parties, without express written authorisation, is strictly prohibited. 432 Leveraging Best Cost Countries (BCC) footprint
boosts competitiveness
2
AN AMBITIOUS BEST COST COUNTRIES ROADMAP EXAMPLES OF RECENT
FOR MANUFACTURING INVESTMENTS
BCC Roadmap : Mar ‘22 43% Mar ‘25 60% Light Rail Carbody Locos assembly
A FOOTPRINT ENABLING TO MANUFACTURE AT THE BEST
COSTS CLOSE TO OUR CUSTOMERS CESKA LIPA NUR SULTAN
Illustration – Engineering and manufacturing BCC footprint
Bogie frames Metro assembly
MATRANOVAK SAVLI
Transformers Alu Carbody
FEZ WROCLAW
RSC Manufacturing BCC Sites
© ALSTOM SA 2022. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given orshould be relied on that it is complete or correct or will apply to any particular project. This will depend on the technical and commercial circumstances. It is
provided without liability and is subject to change without notice. Reproduction, use, alter or disclosure to third parties, without express written authorisation, is strictly prohibited. 442 Roadmap to transformation in Germany,
Austria and Switzerland
2
● Maintain market position through GERMANY
competitive offering & strengthened • Planned reduction of around 900 to 1300
project execution. manufacturing positions over next 3 years
• Over 700 new positions in engineering,
digitalization and software
● Invest in innovation, engineering,
digitalisation and software Hennigsdorf
Salzgitter
● Competitiveness with adapted Görlitz
Kassel
manufacturing capacity & leverage of Siegen
Eastern Europe Bautzen AUSTRIA
• Concentrate & specialize on
Light Rail product platform
● Develop Services business Mannheim
+
SWITZERLAND Wien
• Reduction of ~150 Villeneuve
positions & shift to
€150M RESTRUCTURING COSTS FOLLOWED Services
BY €100M OF COSTS AVOIDANCE
PER YEAR FROM 2024/25 ONWARDS
© ALSTOM SA 2022. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given orshould be relied on that it is complete or correct or will apply to any particular project. This will depend on the technical and commercial circumstances. It is
provided without liability and is subject to change without notice. Reproduction, use, alter or disclosure to third parties, without express written authorisation, is strictly prohibited. 453 Drive the digital transformation journey
3
Increase automation Deploy innovative 2025 Targets
and digitalisation digital reality scope
SERIAL WATERTIGHNESS -6%¹
RSC Engineering hours
ADDITIVE AUGMENTED
-10%¹
TARBES, FRANCE RSC Manufacturing hours
MANUFACTURING REALITY
WELDING ROBOT
100%¹
Converged processes
3D ALSTOM META-
LE CREUSOT, FRANCE
SCANNING OMNIVERSE 75%¹
Business process digitalisation
PLM4A: an enterprise-wide programme to enable ONE product
lifecycle management
1. compared to March 2021
© ALSTOM SA 2022. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given orshould be relied on that it is complete or correct or will apply to any particular project. This will depend on the technical and commercial circumstances. It is
provided without liability and is subject to change without notice. Reproduction, use, alter or disclosure to third parties, without express written authorisation, is strictly prohibited. 464 Investing in people with World Class Engineering
& Manufacturing programme
4
DACH :
AMERICAS : 13 Manufacturing experts
25 Manufacturing experts 103 Engineering experts
87 Engineering experts
EUROPE :
61 Manufacturing experts
204 Engineering experts
FRANCE :
86 Manufacturing experts
APAC :
282 Engineering experts
16 Manufacturing experts
56 Engineering experts
AMECA :
3 Manufacturing experts
6 Engineering experts
Expertise is key for Alstom’s success and development
© ALSTOM SA 2022. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given orshould be relied on that it is complete or correct or will apply to any particular project. This will depend on the technical and commercial circumstances. It is
provided without liability and is subject to change without notice. Reproduction, use, alter or disclosure to third parties, without express written authorisation, is strictly prohibited. 47Rolling Stock and Components journey ahead
❶ Significant improvement in project stabilization
achieved in 2021/22 - back to nominal performance
expected by March 2023
❷ Operating already as One Team, with best-in-class
converged processes and product portfolio by
March 2025
❸ Clear plan to deliver the targeted operational
recovery, synergies fully on-track
❹ Uniquely positioned to capture market growth
thanks to product, market reach and scale
© ALSTOM SA 2022. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given orshould be relied on that it is complete or correct or will apply to any particular project. This will depend on the technical and commercial circumstances. It is
provided without liability and is subject to change without notice. Reproduction, use, alter or disclosure to third parties, without express written authorisation, is strictly prohibited. 48You can also read
