ACTIVITY REPORT 2016/17

CONTENTS

CHALLENGES
WHAT WILL RAIL
TRANSPORT BE LIKE
IN THE FUTURE?
Attractive, digital, accessible, clean,
efficient, integrated and agile — p. 01

AMBITION
1
SETTING THE STANDARD
IN THE MARKET
“We are on track
towards smart mobility.”
Interview with Henri Poupart-Lafarge,
Chairman and Chief Executive Officer of Alstom — p. 10
Board of Directors — p. 13
The Executive Committee
2
SOLUTIONS
looks back on 2016 — p. 14 APPLYING EXPERTISE TO
2016 in figures — p. 16 MEET CUSTOMER NEEDS
2020 strategy: Overview: the most complete range
Alstom pursues its transformation — p. 18 of solutions in the market — p. 28
In pictures: the highlights of the year — p. 20 Rolling stock: reinventing mobility — p. 30
Innovation drives our growth — p. 26 Signalling: improving traffic flow — p. 34
Services: custom support — p. 37
Systems: increasing efficiency — p. 40
In pictures: state-of-the-art solutions — p. 42

3
COMMITMENTS
A RESPONSIBLE
COMPANY
For our customers — p. 44
For our employees — p. 46
For the environment — p. 48
For local communities — p. 50
 CHALLENGES
WHAT
WILL RAIL
TRANSPORT
BE LIKE IN
THE FUTURE?

ATTRACTIVE DIGITAL ACCESSIBLE CLEAN EFFICIENT INTEGRATED AGILE

01
 CHALLENGES

ATTRACTIVE
In the face of competition from new mobility solutions
such as ride sharing, car pooling and electric vehicles, rail transport
will need to further improve passenger comfort
to boost its appeal.

Everything about Alstom’s products – ­from initial design

to subsequent services – is conceived to enhance the
passenger experience through features like wide windows,
air conditioning, natural on-board lighting, automatic sliding
doors, real-time information and more.

02
 CHALLENGES

DIGITAL
New information and communication technologies have ushered
rail transport into the digital age with a focus on three priorities:
optimising operations, improving passenger services
and safeguarding information systems.

Alstom’s range of solutions incorporates the latest in digital

technology to enhance operational performance and improve
passenger connectivity. The development of HealthHub
solutions and the recent acquisition of Nomad Digital have
strengthened this approach. Alstom understands the security
issues associated with the use of digital technology
and has made cybersecurity a cornerstone of its research
and development strategy.

03
 CHALLENGES

ACCESSIBLE
Around the world, one of the main challenges in rail transport stems from
the need to improve train accessibility for passengers with reduced mobility.
Such measures concern people with disabilities, seniors, expectant
mothers, families with children and passengers carrying heavy luggage.

Alstom ensures improved transit and access for all passengers

aboard its trains. It integrates the needs of both current and
future generations from the outset, during the design phase.
Low floors, interior layout, wide doorways and in-station
information systems are all good examples of this approach.

04
 CHALLENGES

CLEAN
The world’s population is expected to reach 9.7 billion by 2050,
by which time 70% of people will live in urban areas1. Sustainable modes
of transport will be crucial in catering to mobility needs while
protecting the environment.

Rail transport is a low-carbon solution that by definition

helps safeguard the environment. Alstom continues to push
the boundaries of responsible mobility by developing
emission-free solutions like regional trains powered
by hydrogen fuel cells. The Group has committed to achieving
a 20% reduction in the energy consumption
of its transport solutions by 2020.

1- Source: United Nations.

05
 CHALLENGES

EFFICIENT
Rail transport suffers from relatively high per-kilometre costs due
to the need for infrastructure investment. Greater economic efficiency
is necessary in order to continue providing a service
that can compete with rival offerings.

Alstom continues to improve the efficiency of its railway

systems throughout their lifecycle by standardising
its products and services, reducing the energy consumption
of its trains, developing predictive maintenance
and devising smart on-board solutions.

06
 CHALLENGES

INTEGRATED
A seamless intermodal transition is a decisive factor in enhancing
the appeal of passenger and freight transport not just in cities and regions
but on a national and international level. Multimodal solutions
will be more prevalent in the future as a result.

Alstom develops powerful digital solutions to facilitate

multimodal management and improve service continuity
for passengers. Part of this process includes designing new
urban mobility solutions such as electric buses and exploring
autonomous shuttle systems through partnerships to offer
effective last-mile coverage.

07
 CHALLENGES

AGILE
Population growth and trade development are increasing demand
for passenger and freight mobility solutions. These needs vary from
one country to the next according to the available infrastructure,
railway culture, economic considerations and strategic choices.
The future of rail transport depends on the industry’s ability
to meet this multifaceted demand.

Alstom has established an extremely close relationship with

its customers and has a keen understanding of the needs of
operators and passengers, both now and in the future.
Its range of rail solutions is the largest in the market
and is tailored to a diverse array of needs worldwide.

08
02
 1
AMBITION
SETTING
THE STANDARD
IN THE MARKET

09 Activity report 2016/17 — ALSTOM

AMBITION

“We are on track

towards smart mobility.”
Interview with Henri Poupart-Lafarge,
Chairman and Chief Executive Officer of Alstom

“OUR
PERFORMANCE
TODAY GIVES US
THE COMMERCIAL
LEVERAGE TO
WIN CONTRACTS
TOMORROW.”

ALSTOM — Activity report 2016/17 10

2016/2017 was all about the “New
Alstom” and its focus on the rail indus-
try. How would you sum it up?
Henri Poupart-Lafarge — 2016/17
was a very positive year, during which
we continued to serve our customers,
implement our strategy and move closer
to our targets. We’ve seen real momen-
tum, especially commercially, with a
high order intake around the world. One
example that springs to mind is the con-
tract we signed in August with American
operator Amtrak for a new-generation
of high-speed train: Avelia Liberty. The
order marks our entry into the North
American high-speed market. It also
reflects our capacity to innovate, to meet
the needs of our customers; energy effi-
ciency, lower total cost of ownership,
optimal passenger experience and more.
Another key contract was the extension
of the red line for the Dubai metro, which
will link the city to the Expo 2020 site.
The project has a tight schedule, since
trains are due to begin running on the
line in time for the Universal Exhibition.
Maintaining a healthy level of orders in
the face of political and economic ups
and downs is also a broader reflection
of our market stability.
What were the year’s highlights?
Henri Poupart-Lafarge — Beyond
our commercial activities, the year
“2016/17 WAS A VERY POSITIVE
YEAR, DURING WHICH
WE CONTINUED TO SERVE
OUR CUSTOMERS, IMPLEMENT
OUR STRATEGY AND MOVE CLOSER
TO OUR TARGETS.”
was also marked by a number of key
project deliveries. The most symbolic
was undoubtedly the Rio de Janeiro
tramway, which began running a few
months before the Summer Olympic
Games. The project was implemented in
a complex environment and was a huge
operational success, not to mention a
real source of pride for our employees.
I could list many other examples
11
around the world including tramways
in Algeria, urban signalling systems in
China, regional trains in France, Italy
and Germany. The first trains from our
ground-breaking project in South Africa
have also entered service.
Alstom aims to become the preferred
partner for transport solutions by
2020 and has launched a far-reaching
strategy to achieve this goal. How are
things progressing?
Henri Poupart-Lafarge — Our efforts
have begun to pay off on every front. The
Group’s globalisation is moving along at
a healthy pace and is vital in meeting
the needs of our customers. Last year,
we also began construction of two new
manufacturing sites in South Africa
and India. We have now completed the
renewal of our rolling stock platforms
with the launch of new regional and
very high-speed trains. We continued to
expand our range of solutions in order to
offer customers comprehensive mobility
services. Digitalisation is an integral
part of this approach, as seen in the
acquisition of Nomad Digital, a global
leader in connectivity solutions for the
railway industry.
Activity report 2016/17 — ALSTOM
AMBITION

2016/17 was a year rich in innovation,

which is a pillar of the Alstom strategy
leading up to 2020.
Henri Poupart-Lafarge — That’s right.
Key examples include the launch of
Coradia iLint, our zero-emission train,
and of Mastria, a multimodal centre to
optimise the traffic of an entire transport
network. And let’s not forget Aptis, our
first offer for the electric bus market.
Other highlights include our partnership
with SNCF to create a new generation of
high-speed trains and the first contract
won in Nice for SRS, our catenary-free
ground-based static charging system.
Our product platforms have also been
revamped to reduce total cost of own-
ership, increase energy efficiency by
10-15% and make the passenger expe-
rience an integral part of our solutions.

Operational and environmental per-

formance is another cornerstone
of the Alstom strategy. What sort
of progress has been made in this
respect?
Henri Poupart-Lafarge — Through-
out 2016, we continued to improve
our operational efficiency in terms of
ensuring timely deliveries, reducing
our costs of non-quality and increasing
the energy performance of our opera-
tions and products. We are pursuing
the development of our information
system backbone to foster collabora-
tion and improve our global efficiency.
A word on people?
Henri Poupart-Lafarge — Every year we
reinforce the safety of our workplaces.
That is our first priority. Diversity also
remains a key point of focus in every
sense of the word — especially cultural
diversity, in line with our globalisation
strategy. Individual involvement in the
future of the Group is equally important.
We value our employees. Our deci-
sion to allocate free shares to everyone
aimed to reflect that appreciation and
involve them directly in our development.
Let’s talk about the future. How
do you view Alstom’s market going
forward?
Henri Poupart-Lafarge — It is a grow-
ing market and there is no denying the
dynamism, especially with respect to

“WE MUST MAKE DIGITAL

SOLUTIONS AN INTEGRAL PART OF
OUR ORGANISATION, OUR WORKING
METHODS AND OUR PRODUCTS.”

ALSTOM — Activity report 2016/17 12

 Governance

urban perspectives. Mobility remains

the number-one priority for local BOARD OF DIRECTORS
authorities as they seek to rise to
sustainability challenges. Opportuni-
ties abound, especially in emerging
countries, but also in Europe, which Henri Poupart-Lafarge
is our main market. Whether in urban Chairman and Chief Executive Officer of Alstom
transport or mainline services, the rail
industry is increasingly global and Candace K. Beinecke
competitive. It has also been hugely Chair of Hughes Hubbard & Reed LLP
impacted by digitalisation, which
Olivier Bourges
affects structures (new operators
General Counsel of PSA Peugeot-Citroën
and growth in multimodal solutions),
offerings (connected products) and Olivier Bouygues
operations (predictive maintenance Deputy Chief Executive Officer of Bouygues
and traffic optimisation). We are on
track towards “smart mobility”, which Bi Yong Chungunco
taps the full potential of information Head of Divestments of LafargeHolcim
and communication technology to
make transport more efficient, more Yann Delabrière
attractive and more affordable, as well Chairman of the Board of Directors of Faurecia
as safer and greener.
Pascal Faure
In this context, what are your Director appointed by the French State
priorities for the next few years? Head of the Directorate General for Enterprise (DGE)
Henri Poupart-Lafarge — First and
foremost, we need to continue to Gérard Hauser
implement our 2020 strategy. That Director of companies
is the foundation for our future devel-
Sylvie Kandé de Beaupuy
opment. We have come a long way
Group Ethics & Compliance Officer of Airbus
but there is still a lot more to do.
As I mentioned earlier, digitalisation is Klaus Mangold
an underlying trend that is unavoidable Chairman of the Supervisory Board
and has a huge impact on our business. of Rothschild GmbH (Frankfurt)
Which is why we must make it an
integral part of our organi­sation, our Philippe Marien
working methods and our products. Chief Financial Officer of Bouygues Group
This trend should also lead us to think
about our strategic positioning. We Géraldine Picaud
need to seize the opportunities unlocked Chief Financial Officer of Essilor Group
by the emergence of smart mobility
by anticipating the future profile of Sylvie Rucar
operators. Some will no doubt be mul- Advisor
tiservice, multimodal providers. It is up
to us to adapt our offering to meet their
needs. Increasingly strong competi-
tion will also require us to expand our
workforce and establish partnerships
to better serve our customers.

13 Activity report 2016/17 — ALSTOM

AMBITION Governance

The Executive Committee

looks back on 2016
“In 2016, we continued our compliance
programme while managing contractual
risks and enhancing our legal expertise
to adapt to more stringent
global regulations.”
PIERRICK LE GOFF
General Counsel

“With 5% organic growth,

an improved operating margin
and cash-flow generation, we drew
closer to reaching our 2020 objectives
“2016 was an extremely dynamic year. in 2016. We will continue to invest
We continued to roll out our strategy and selectively as opportunities arise.”
better serve our customers while seizing
MARIE-JOSÉ DONSION
opportunities in a fast-growing market.”
Senior Vice-President
HENRI POUPART-LAFARGE Finance
Chairman and Chief Executive Officer

“We made great strides in transforming

our company thanks to the involvement
of our employees. 2016 was the year
of the new Alstom.”
THIERRY PARMENTIER
Senior Vice-President
Human Resources

“With an impressive haul of contracts

“We stepped up operational such as the extension of the Dubai
performance by increasing metro, 2016 confirmed the outstanding
our industrial reach in line with growth of the MEA region, where sales
market demand and streamlining have strongly increased in the past
working methods between three years.”
our different sites.”
GIAN-LUCA ERBACCI
THIERRY BEST Senior Vice-President
Chief Operating Officer Middle East & Africa

ALSTOM — Activity report 2016/17 14

 “With a 25% staff increase and the
expansion of our industrial capacity,
Alstom reinforced its presence
in the Asia Pacific region in 2016 to
better meet the needs of our customers.”
JEAN-FRANÇOIS BEAUDOIN
Senior Vice-President
Asia Pacific

“By honouring our commitments

and through successful contract
“The creation of Digital Mobility execution in France and around
marks a new era for Alstom in the world, we succeeded in
providing solutions for emerging strengthening our relationship
smart cities and supporting with customers. New strategic
customers by ensuring more orders towards the end of the year
efficient transport solutions.” will secure the future of our design
and production sites.”
PASCAL CLÉRÉ
Senior Vice-President JEAN-BAPTISTE EYMÉOUD
Alstom Digital Mobility Senior Vice-President
France

“2016 was the year of landmark

contracts in North America,
with long-term infrastructure
maintenance agreements and new
high-speed trains. These projects
will continue to drive and sustain
transformation in the region.”
JÉRÔME WALLUT
Senior Vice-President
North America

“Innovative solutions for the region’s

“2016 reflected outstanding team spirit
in Europe, which led to solid financial
and operational results and ongoing
positive EHS performance.”
ANDREAS KNITTER
Senior Vice-President
Europe
population included the first tramway
in Latin America, which was brought
into service in time for the Olympic
Games in Rio, revolutionising
the city centre.”
MICHEL BOCCACCIO
Senior Vice-President
Latin America

15 Activity report 2016/17 — ALSTOM

AMBITION 2016 in figures

POSITIONS
Growing AMERICAS

5,200
globalisation EMPLOYEES

2016/17 ORDERS
€10.0 BILLION
AMERICAS EUROPE

29% 51%

MIDDLE EAST
& AFRICA ASIA PACIFIC

14% 6%

ALSTOM — Activity report 2016/17 16

 EUROPE

20,700
EMPLOYEES

MIDDLE EAST ASIA PACIFIC

& AFRICA
4,000
2,900 EMPLOYEES
EMPLOYEES

32,800 EMPLOYEES WORLDWIDE

105
SITES
IN

60
COUNTRIES

€7.3 €289 €208 5.8%

BILLION MILLION MILLION OPERATING
SALES NET INCOME NET DEBT MARGIN*
* adjusted EBIT margin.

17 Activity report 2016/17 — ALSTOM

AMBITION Strategy
2020 STRATEGY
Alstom pursues
its transformation
Alstom has reached
the midway mark on
its roadmap to become
the preferred partner
for transport solutions
in line with 2020 targets.

CUSTOMER-FOCUSED
ORGANISATION
2020 GOAL :
Reinforce Alstom’s worldwide
presence and better meet the
needs of customers in local
markets.
PROGRESS:
With 105 sites in 60 countries, Alstom
has established a presence that is both
local and global. This local presence
promotes long-term partnerships with
clients and increases flexibility and
efficiency. In 2016, Alstom grew its
network in India with the expansion of
the Coimbatore and Sri City sites and
construction of a new plant in Madhepura.
It also extended its reach in other countries
by doubling the size of the Katowice site in
Poland, building a manufacturing site in
Dunnottar, South Africa, and expanding its
Hornell site in the United States.
NEXT MILESTONES:
Continue to strengthen the Group’s indus-
trial presence through partnerships, joint
ventures and individual initiatives while
fostering synergies between sites and
developing everyday customer relations.
ALSTOM — Activity report 2016/17 18
A COMPLETE RANGE
OF SOLUTIONS
2020 GOAL :
Provide the most comprehensive
range of systems, signalling
equipment and services in each
area of the rail industry.
PROGRESS:
Alstom has continued to expand its range
of solutions by seeking the best possible
balance between standardisation and
flexibility. New regional and high-speed
platforms have been launched after tram
and metro platforms. Contracts signed in
Dubai and Sydney have strengthened its
position in systems, while the acquisition
of General Electric’s signalling assets has
increased the scope of its signalling busi-
ness. Alstom has continued to support
its customers by offering them a range
of high-quality services.
NEXT MILESTONES:
Further expand the range of solutions to
meet the current and future needs of cus-
tomers while exploring new, increasingly
connected mobility solutions.
VALUE CREATION
THROUGH INNOVATION
2020 GOAL :
Innovate to achieve
differentiation and gain
a competitive edge.
PROGRESS:
Alstom has structured an innovation
process designed to identify and nur-
ture the most promising ideas in line
with the Group’s innovation strategy.
Due to ongoing R&D investment and
partnerships, Alstom unveiled three new
solutions for 2016/17: the zero-emission
Coradia iLint regional train, the electric
bus Aptis and the multimodal manage-
ment system for urban transport Mastria.
NEXT MILESTONES:
Adapt innovation strategy to market
developments and improve digital solu-
tions to boost internal productivity while
developing a range of new solutions and
services.
OPERATIONAL AND
ENVIRONMENTAL
EXCELLENCE
2020 GOAL :
Ensure flawless contract
execution and reduce
the carbon footprint
of products and operations.
PROGRESS:
Alstom has already standardised plat-
forms for rolling stock. Performance in
terms of quality, costs and lead times
has improved and working methods and
resources between different sites are now
being streamlined. The latest solutions
offer 8-10% lower energy consumption,
already midway to meeting the target for
2020. Alstom achieved its 2020 goal of a
10% reduction in its plants in March 2017,
ahead of schedule.
NEXT MILESTONES:
Improve the overall efficiency, streamline
working methods, continue to simulate
energy consumption improvements for
solutions under development and pursue
the ISO 14001 certification programme.
19
DIVERSE AND
ENTREPRENEURIAL
PEOPLE
2020 GOAL :
Strengthen the Alstom culture
by encouraging entrepreneurial
spirit and diversity in every
shape and form.
PROGRESS:
Alstom’s move to renew its focus on the
transport business, deploy its leadership
model and implement the share allo-
cation programme launched in 2016
has strengthened employees’ sense of
belonging. The Group has continued to
implement initiatives to promote ethics,
cultural diversity and gender balance.
NEXT MILESTONES:
Pursue targets for integrity and ethics,
promote recruitment of local talent and
encourage initiatives to support women
in the company.
Activity report 2016/17 — ALSTOM
AMBITION Highlights

IN PICTURES
The highlights of the year

UNITED KINGDOM
SIGNALLING

Major contract to overhaul

the entire signalling system
for London’s Great Western
Main Line.

CUSTOMER-FOCUSED A COMPLETE RANGE VALUE CREATION OPERATIONAL AND DIVERSE AND

ORGANISATION OF SOLUTIONS THROUGH INNOVATION ENVIRONMENTAL EXCELLENCE ENTREPRENEURIAL PEOPLE

ALSTOM — Activity report 2016/17 20

 BRAZIL – RIO DE JANEIRO
TRAMWAY SYSTEM

New tramway system for Rio delivered in

time for the Olympic Games. The Alstom
Citadis carries the Olympic torch.

FRANCE
INNOVATION PARTNERSHIP

Launch of the first innovation

partnership with SNCF to create
the next generation of the TGV.

21 Activity report 2016/17 — ALSTOM

AMBITION Highlights

ITALY AND NETHERLANDS

REGIONAL TRAINS

150 new regional trains for Trenitalia

and 79 next-generation Intercity
trains for NS.

UNITED ARAB EMIRATES – DUBAI

METROS

Extension of the Dubai metro red

line for RTA through the Expolink
consortium. The extension will link
the metro to the World Expo site.

ALSTOM — Activity report 2016/17 22

 ACQUISITIONS

UNITED STATES MOROCCO

HIGH-SPEED TRAINS ACQUISITION

Alstom acquires Nexans

Historic high-speed train contract
shares to become
with Amtrak. Avelia Liberty is the
the exclusive owner
latest in Alstom’s Avelia range of
of Cabliance.
high-speed trains.

SOUTH AFRICA
ACQUISITION

Alstom acquires majority
stake in CTLE, which
specialises in train
WORLDWIDE modernisation, renaming
FREE SHARES the company Alstom Ubunye.

Alstom rewards employee

commitment with the
allocation of 30 free shares
in the next two years.

23 Activity report 2016/17 — ALSTOM

AMBITION Highlights

FRANCE
SUBURBAN TRAINS

Alstom-Bombardier
consortium receives
order for new-generation
trains for lines D and E
of the SNCF network
in Île-de-France.

GERMANY
ZERO-EMISSION TRAIN

First successful test run at

80 km/h of the world’s only fuel
cell passenger train Coradia iLint
in Salzgitter.

ALSTOM — Activity report 2016/17 24

 INVESTMENTS
AND ACQUISITIONS

CONNECTIVITY
ACQUISITION

Alstom goes digital with the

acquisition of Nomad Digital,
a world leader in fleet
and passenger connectivity
solutions for the rail industry.

TAIWAN – KAOHSIUNG
TRAMWAYS AND ON-BOARD
ENERGY STORAGE NEW MOBILITY
INVESTMENT

Alstom wins contract to supply

15 Citadis X05 trams to the city of Alstom invests in EasyMile,
Kaohsiung including Citadis Ecopack an innovative startup
on-board energy storage system. developing the EZ10
autonomous electric shuttle.

25 Activity report 2016/17 — ALSTOM

AMBITION Projection

Innovation
drives our growth

Our customers’ request for performance

In the face of growing demand for mobility solutions, they need to
offer passengers means of transportation that are comfortable,
reliable, safe and attractive. Yet they also need to optimise costs
to ensure a sustainable business model. How can we help?

Innovation is our answer

At Alstom, we innovate by anticipating the needs of customers,
operators and passengers. Our innovation process is designed to
nurture good ideas and help them grow. Our R&D strategy provides
the industrial framework to turn these ideas into innovative solutions
for our customers’ projects. Innovation also means staying a step
ahead in an increasingly competitive environment. It means using
state-of-the-art methods and tools in design and production
to ensure the most competitive prices.

A joint effort
Because interaction fuels creativity, Alstom cultivates an open
approach to innovation through partnerships with universities and
research centres. This has led to joint programmes including work
with INRIA to develop digital solutions for energy and mobility
challenges. It has fostered public/private research initiatives like
SystemX (digital solutions for future transport services), SuperGrid
(new power conversion technologies) and Railenium (railway system
technologies). Alstom’s proactive approach extends to suppliers,
startups, customers and operators as part of a complete ecosystem
that allows the Group to develop or acquire the core technologies
needed to construct its comprehensive range of solutions.
The same dynamic is embodied internally by the annual “I NOVE YOU”
competition, which recognises the achievements of Alstom employees
who have put forward the most innovative projects.

ALSTOM — Activity report 2016/17 26

 2
SOLUTIONS
APPLYING
EXPERTISE TO
MEET CUSTOMER
NEEDS

27 Activity report 2016/17 — ALSTOM

SOLUTIONS

OVERVIEW
The most complete
range of solutions
in the market
Alstom develops and markets the world’s most comprehensive
range of railway systems, equipment and services in all aspects
of the industry. Its solutions include rolling stock, signalling, services
and infrastructure, provided separately, bundled or fully integrated.

ROLLING STOCK
Tramways, tram-trains, metros, suburban, regional
and high-speed trains and locomotives.

URBAN & SUBURBAN MOBILITY

The Citadis range of city-centre tramway solutions also
includes tram-train services (Citadis Dualis) and light
rail vehicles (Citadis Spirit). Translohr tyre-based trams
are an ideal solution for cities with a specific topography.
Alstom also supports large-scale mobility with its range
of Metropolis metros and X’Trapolis suburban trains for
commuters. SIGNALLING
MAIN LINES Control centres, security, passenger information,
Coradia trains are top-selling regional transport solutions trackside signalling solutions and interlocking.
that can be tailored to a wide array of different technical
specifications. The Avelia range provides high-speed solu- Alstom develops signalling solutions for urban environ-
tions in line with the latest passenger expectations. ments and main lines that enable operators to ensure safe,
LOCOMOTIVES seamless services. Examples include Iconis control centres,
Alstom offers a comprehensive range of Prima locomotives Urbalis CBTC solutions, the Atlas ERTMS range for network
adapted to a wide range of operating conditions for freight interoperability, trackside signalling equipments, interlocking
and passenger transport. solutions and on-board information systems.

43% 19%
of sales of sales

ALSTOM — Activity report 2016/17 28

SERVICES
Maintenance, modernisation, spare parts,
repairs and support services.
Alstom provides maintenance for all types of trains,
infrastructure and signalling systems.
Services also include upgrades for trains in areas such as
design, components, traction systems and eco-driving sup-
port, along with modernisation options for infrastructure
and signalling systems.
Alstom provides parts supply services and repairs for all
types of trains, made by any manufacturer.
Customer support services include a wide range of main-
tenance training programmes.
20%
of sales
29
SYSTEMS
Infrastructure and integrated systems.
As the complexity of rail systems continues to grow, oper-
ators often seek comprehensive solutions to meet their
needs. Alstom can draw on its full range of cross-functional
expertise as a railway manufacturer to cover every aspect
of urban rail systems, including rolling stock, signalling,
infrastructure and services. Alstom’s expertise in infra-
structure covers both electrification and track works as
well as electromechanical equipment for tunnels, stations
and depots.
18%
of sales
Activity report 2016/17 — ALSTOM
SOLUTIONS
ROLLING STOCK
Reinventing mobility
Alstom draws on its
technological expertise
and innovative
capabilities to meet
the current and future
needs of operators and
passengers. Its solutions
cover a whole range
of services, including
urban transit, mainline
travel, regional transport,
mining networks
and freight.
ALSTOM USES PRODUCT PLATFORM STANDARDISATION
TO CONTINUOUSLY IMPROVE COMPETITIVENESS,
QUALITY AND LEAD TIMES.
ALSTOM — Activity report 2016/17
CUSTOMER-FOCUSED
SOLUTIONS
Transport authorities and operators
need safe, reliable transport solutions
that are adapted to the expectations of
passengers and easy on their pocket.
Alstom rises to these challenges daily,
using product platform standardisation
to continuously improve competitiveness,
quality and lead times. Alstom pours
significant resources into improving the
passenger experience and optimising
the total cost of ownership by reducing
energy consumption and maintenance
costs.
SOLUTIONS
In the heart of the city…
Alstom’s Citadis X05, the latest addition
to the Citadis tram range, is a fresh take
on a classic form of transport that builds
on a successful 15-year track record.
It is a flexible solution that offers an array
of customisation options that showcase
30
energy efficiency, passenger comfort
and connectivity. The range is enhanced
by the Translohr tyre-based trams of
NTL, which are designed to meet the
needs of tram systems with specific
geographic requirements. In line with
the ongoing drive to innovate, Alstom
has also upgraded its Metropolis metro
solutions to enhance passenger comfort
while optimising operating costs.
… and on the outskirts
Urban growth demands alternatives
to road transport to ensure more fluid
movement in and around cities. Alstom’s
Citadis Dualis tram-train can travel
seamlessly between tram tracks and
the regional rail network, while Citadis
Spirit offers a light rail vehicle able to pro-
vide the mobility and flexibility needed in
North American cities. X’Trapolis mean-
while provides high-capacity solutions for
transport to and from suburban centres.
 1.

KEY FIGURES

2,300
CITADIS TRAMWAYS SOLD WORLDWIDE

17,000
ALSTOM METRO CARS
RUNNING EVERY DAY

2.

2,400
CORADIA TRAINS SOLD

940
AVELIA TRAINS IN COMMERCIAL SERVICE

3.

1. X’Trapolis Mega for PRASA in dynamic tests – South Africa. 2. Citadis in circulation on line 4 in Montpellier – France.
3. Prima M4 locomotive in operation – Kazakhstan.

31 Activity report 2016/17 — ALSTOM

SOLUTIONS Rolling stock

1. 2.

1. AGV for NTV in Milan central station – Italy. 2. Permanent magnet motor for Citadis Spirit
at the Hornell site – USA. 3. A passenger gets off the Amsterdam metro – Netherlands.

Regional travel… … and the need for speed

With its improved modularity, new
design, optimal passenger experience,
weight savings and reduced costs, the
new generation of Coradia regional trains
has everything it takes to write the next
chapter in a commercial success story
spanning more than 30 years. While the
range continues to offer specific technical
configurations adapted to the needs of
each operator, a drive to improve stand-
ardisation has delivered a single, versatile
platform on which to build both intercity
and regional trains. In 2016, Alstom also
launched Coradia iLint, an emission-free
train for non-electrified lines, powered
by fuel cells.
Avelia Liberty is the latest incarnation in
Alstom’s Avelia high-speed range, which
already features flagships like Pendolino,
Euroduplex and AGV. Based on proven
technology, Avelia Liberty combines flex-
ibility and comfort with accessibility and
reduced operating costs.
Passengers and freight
The highly modular range of Prima
locomotives offers several configurations 3.
covering everything from passenger
transport to shunting and freight loco-
motives for the mining industry.

ALSTOM IS FULLY COMMITTED TO RAIL TRANSPORT IN THE DIGITAL AGE

AND CONTINUES TO STEP UP ITS EFFORTS TO DEVELOP TRAINS
THAT OFFER IMPROVED CONNECTIVITY TO ENHANCE THE SAFETY
AND EXPERIENCE OF PASSENGERS.

ALSTOM — Activity report 2016/17 32


“Working together in an
open and transparent
fashion, pooling
experiences to successfully
complete the design.”
33
CUSTOMER STORY
In July 2016, the Dutch rail operator NS entrusted
Alstom with the manufacture of 79 Coradia
Intercity next generation trains. Roel Okhuijsen,
NS director for new rolling stock, discusses
the challenges of the contract.
In what context was the order made?
Roel Okhuijsen — The number of passengers is
increasing on our network. We want to provide them
with a transport offer that is both adequate and
comfortable. Hence the decision to acquire new trains
while simultaneously modernising our old fleet.
What are the determining factors for passengers?
R.O. — It’s important to be able to meet the
specific needs of different user groups. We will
therefore be providing areas dedicated to silence,
work or socialising. We also want to offer a quality
environment, with Wi-Fi and USB sockets at each
seat and extra luggage racks. Accessibility is a major
factor thanks to a low floor access, as is the design,
which gives the feeling of being on a high-speed
train even at 200 km/h.
What is the secret of successful collaboration
between operator and manufacturer?
R.O. — Working together in an open and transparent
fashion, pooling experiences to successfully complete
the design and develop it still further, but also
knowing how to expose problems from the start
to be able to solve them without wasting time.
What are the next steps?
R.O. — We are currently finalising the design
aesthetics with Alstom and will go on to make
our design choices by the end of 2017.
At NS, we are also preparing maintenance
and operational availability to assure a smooth
introduction.
Activity report 2016/17 — ALSTOM
SOLUTIONS
SIGNALLING
Improving traffic flow
Alstom’s state-of-
the-art signalling
solutions allow operators
to ensure the highest
standards in safe,
seamless travel with
urban and mainline
solutions that meet the
specific needs of each
operation environment.
ALSTOM — Activity report 2016/17
A CUSTOMER-FOCUSED POLICY
From signalling to digital
mobility
Operators are constantly seeking new
ways to boost operating efficiency to
offset growing demand for mobility
solutions. Alstom understands these
challenges and has strengthened its
range of signalling solutions through
innovative digital breakthroughs. This
has led to improvements in availability
(predictive maintenance technology and
advanced asset/energy management),
capacity (autonomous systems and mul-
timodal network management solutions),
security (transport system protection
against cyberattacks) and passenger
experience (Wi-Fi solutions through
the acquisition of Nomad Digital).
SOLUTIONS
Increased capacity in cities
Urbalis 400 is already in service in
15 countries around the world.
Alstom has built on this success
with Urbalis Fluence, a pioneering
train-centric CBTC system that features
on-board intelligence. The ATP system
Pegasus 101 meanwhile provides a solution
tailored to the needs of tramways.
Alstom has also launched the Optimet
product range developed by Metrolab
to improve the flow of trains and pas-
sengers in metro systems. The range
features innovative real-time video
analysis to estimate platform traffic,
along with visuals to assist connecting
passengers.
34
Crossing borders
Growing demand for cross-border
mobility requires infrastructure manag-
ers and train operators to provide the
best possible interoperability between rail
networks. Alstom has risen to this key
challenge with Atlas, its ERTMS signal-
ling and network management solution.
Operation under control
Alstom’s Iconis control centres allow
operators to improve traffic flow,
provide passengers with real-time infor-
mation, manage infrastructure and ensure
security in stations and on trains.
Advanced monitoring and control
functions can anticipate and deal with
incidents on both urban and main lines,
catering to local networks as effectively
as nationwide services.
Optimising freight transport
For freight and mining railways, Alstom
provides ITCS, a GPS-based solution
particularly suited to challenging weather
conditions, as well as a wide range
of trackside equipment and on-board
systems.
 1.

KEY FIGURES

38
ALSTOM’S MARKET SHARE IN ERTMS LEVEL 2
SIGNALLING SOLUTIONS IN SERVICE (KM EQUIVALENT)

2,000 KM
OF METRO LINES EQUIPPED
WITH URBALIS BY 2018
2.

100
ICONIS CONTROL CENTRES
AROUND THE WORLD

50
MARKET SHARE FOR ON-BOARD
WI-FI WORLDWIDE

3.

1. Driver’s cab of AGV on Naples-Milan line – Italy. 2. Control centre in Copenhagen – Denmark.
3. Passenger information in Budapest metro – Hungary.

35 Activity report 2016/17 — ALSTOM

SOLUTIONS Signalling

1. On-board ETCS solution for very high-speed trains. 2. An Alstom employee working
on the Banedanmark signalling project – Denmark.

1. 2.

GROWTH IN SIGNALLING SOLUTIONS HAS MADE

CYBERSECURITY AN INCREASINGLY IMPORTANT ISSUE,
WHICH IS WHY ALSTOM CONTINUES TO STRENGTHEN
ITS EXPERTISE IN THE FIELD.

ALSTOM — Activity report 2016/17 36

SERVICES
Custom support
Alstom offers a
complete range of
customised services
including maintenance,
modernisation, parts
& repairs and support.
All of which ensure
operators the highest
level of availability for
their fleets, infrastructure
and signalling systems.
A CUSTOMER-FOCUSED POLICY
All transport operators need to strike
a balance between improving train
availability and optimising maintenance
costs. To help them rise to the challenge,
Alstom continues to build on its range
of services with a specific focus on
collecting and analysing operating data
to better schedule repairs.
SOLUTIONS
Well-planned operations
Alstom factors in all service requirements
when designing its solutions to facilitate
maintenance operations throughout the
product lifecycle and achieve cost sav-
ings of 10-20%. Access to components
is made easier and tasks optimised to
ensure operators the highest standards
in fleet availability.
Repair and maintenance on the roof of the Coradia Polyvalent by Alstom staff – France.
37
Long-term efficiency
Alstom provides preventive and corrective
maintenance in its own depots and those
of its customers for all types of train
and rail infrastructure. The HealthHub
predictive maintenance solution provides
a complete package combining the
expertise of local teams with the power
of digital technology.
A new lease of life
The relatively long service life of railway
equipment brings a need to anticipate
gradual upgrades to meet the latest
passenger expectations, comply with
more stringent regulations, adapt to
new environmental concerns and offset
the rising operating and maintenance

Activity report 2016/17 — ALSTOM
SOLUTIONS Services

1. 2.

1. Citadis Spirit in dynamic tests at Ottawa depot – Canada. 2. Modernisation of luxury

cars for Rocky Mountaineer – USA. 3. Reception of parts in Valenciennes – France.


costs of ageing fleets. Alstom provides its Custom support
customers with modernisation solutions Alstom provides its customers with a
that cover interior and exterior design, wide range of support services for fleet
replacement of electronic components, operations including maintenance
installation of more energy-efficient training courses, in-service energy sav-
traction systems and more. The Group ing solutions, and the design and con-
also offers modernisation solutions for struction of depots for all types of trains.
infrastructure and signalling systems. Alstom also provides a customer service
portal to simplify and facilitate access to
Bespoke repair services its technical expertise, along with orders
Through its centres of excellence and its for parts and training courses.
experience as an OEM, Alstom provides
parts and repair services for all types of
3.
trains. Its online PartsFolio solution gives
customers access to product catalogues
and maintenance handbooks, allowing
them to use the internet to place orders,
request repairs or quotes, and track their
order status.

ALSTOM CONTINUES TO IMPROVE THE FLEXIBILITY OF ITS SERVICE

SOLUTIONS TO BETTER ADAPT TO THE NEEDS OF CUSTOMERS.
IT IS ALSO DEVELOPING 3D PRINTING TO INCREASE THE SERVICE LIFE OF
COMPONENTS USED ON THE OLDEST FLEETS STILL IN OPERATION.

ALSTOM — Activity report 2016/17 38

 1.

KEY FIGURES

7,000
SERVICE EMPLOYEES

600,000
REFERENCED TRAIN PARTS
2.

8,000 KM
OF TRACK MAINTAINED
1. TrainScanner, an automated diagnostics portal. 2. Testing
interior lights with digital tablet for Coradia Meridian.

20
OF MAINTENANCE SERVICES
FOR TRAINS NOT MADE BY ALSTOM

39 Activity report 2016/17 — ALSTOM

SOLUTIONS

SYSTEMS
Increasing efficiency

Drawing on its A CUSTOMER-FOCUSED POLICY Innovative infrastructure

complementary business
lines, Alstom offers
bundled and fully
integrated systems that
include rolling stock,
signalling, infrastructure
and services. This turnkey
approach optimises
project execution
and transport system
performance.
Demand for integrated systems is grow-
ing as a result of their ability to provide
a comprehensive solution to complex
projects, especially in countries that are
only beginning to adopt a rail culture.
Alstom caters to this demand with solu-
tions that build on proven technology and
offer extensive flexibility to meet specific
needs by reducing costs and construction
times, optimising operations and lowering
maintenance costs.
SOLUTIONS
High urban demand
Integrated solutions already average 40%
of the urban market and their popularity
is growing. In line with this trend, Alstom
provides customers with two flexible,
integrated options, one specifically for
tramways (Attractis) and one for metro
systems (Axonis), along with a range of
solutions that meet specific needs while
ensuring overall performance.
Alstom develops innovative infrastructure
solutions to reduce costs, accelerate
delivery and improve the energy efficiency
of urban transport projects. Shining
examples of this approach include
Appitrack (an automated track-laying
solution) and HAS sleepers (which reduce
noise and vibrations). The Group is also
breaking new ground in electrification with
Hesop reversible substation (a solution
perfectly suited to urban environments
that recovers more than 99% of energy
generated by trains during braking) and
catenary free solutions (see inset).
Electrification, tracks and
electromechanical equipment
Alstom offers a wide array of engineer-
ing solutions along with comprehensive
and partial management of electrifica-
tion and track construction projects. The
Group’s wide-ranging experience gives it
the necessary know-how to produce and
install all equipment relating to transport
operations and safety, from signalling
and passenger information to ticketing,
tunnel safety systems and depot equip-
ment for train maintenance.

WITH MORE THAN 10 INTEGRATED SYSTEMS PROJECTS UNDERWAY

AROUND THE WORLD, ALSTOM CONTINUES TO CEMENT ITS
POSITION AS A GLOBAL LEADER IN URBAN SOLUTIONS.
TO BUILD ON THIS LEAD, THE GROUP CONTINUES TO INVEST
IN NEW DIGITAL TECHNOLOGIES AND SIMULATION TOOLS.

ALSTOM — Activity report 2016/17 40

 KEY FIGURES

No.1
IN INTEGRATED URBAN SYSTEMS
IN THE WORLD

1.

25
MILLION KILOMETERS OF
ACTIVE SERVICE WITH APS

124
HESOP SUBSTATIONS SOLD WORLDWIDE

1. Employees working on an electrical substation on

the high-speed line between Nîmes and Montpellier – France.
2. Rails stacked in preparation for tracklaying.
3. Citadis tramway in service in Tours with APS solution.
2.

Alstom paves the way in catenary-free

tramway solutions and has pioneered APS,
a new ground-level power supply that
supplies electricity through a third rail.
The Group also markets Citadis Ecopack,
an innovative on-board recharging solution,
and SRS, state-of-the-art static charging
technology for trams and electric buses
with an on-board charging system.

3.

41 Activity report 2016/17 — ALSTOM

SOLUTIONS
In pictures
State-of-the-art solutions
APTIS
100% ELECTRIC
With the new 100%-electric
mobility solution Aptis, Alstom
offers local authorities a new
solution for clean and efficient
transport. The tram-inspired vehicle
features a 20 m² low-floor along its
entire length to improve accessibility
and create a more comfortable,
fluid passenger experience.
With a 360° view thanks to its
panoramic bay windows, Aptis
offers 20% more glass surfaces
than a bus. The innovative,
sustainable design ensures easy
maintenance, making Aptis the
perfect solution for operators
in terms of urban integration,
performance and operating costs.
ALSTOM — Activity report 2016/17
CORADIA iLint
ZERO-EMISSION
The new Coradia iLint
regional train concept gives
operators a greener alternative
to combustion engines for
non-electrified railway lines,
eliminating CO2 emissions and
noise pollution.
Powered by hydrogen fuel
cells, Coradia iLint produces
only steam and condensed
water, and is extremely quiet.
Alstom is one of the first
manufacturers in the world to
market a passenger train based
on this type of technology.
42
MASTRIA
MULTIMODAL SOLUTION
Mastria is Alstom’s new
multimodal system, which aims
to streamline urban transport
management by improving
capacity and fluidity.
Mastria is designed to meet
the current and future needs of
“smart cities” and can coordinate
all types of transport, from rail
to road, while incorporating
new mobility trends such as car
sharing and bicycles.
The system also uses predictive
analysis to optimise route
planning.
 3
COMMITMENTS

A RESPONSIBLE
COMPANY

43 Activity report 2016/17 — ALSTOM

COMMITMENTS

FOR OUR
CUSTOMERS
Alstom aims to be the preferred partner for its customers. The Group
continues to expand its customer-focused organisation to better understand
and meet their expectations. Alstom provides a complete range of
solutions and constantly innovates to anticipate their needs while pursuing
continuous improvement in operating performance to deliver projects
that meet the highest standards in terms of lead times, quality and costs.

STRIVING FOR EXCELLENCE purchases 60% of the products needed

The needs of operators are changing.
Although capacity, reliability and safety
remain core concerns, operators’ deci-
sions are increasingly based on issues
such as lead times, cost of ownership,
quality and passenger experience. To rise
to these challenges, Alstom implements
initiatives that improve the quality and
competitiveness of its products and
services with an unwavering focus on
excellence in execution. The entire range
of rolling stock platforms has been revi-
talised as part of a strategy to improve
performance, costs and production
times. Examples of this revival include
Citadis X05 tramway, the new genera-
tion of Metropolis metros and Coradia
regional trains, and the high-speed train
Avelia Liberty. Continuous improvement
also covers services (HealthHub pre-
dictive maintenance solution), systems
(Attractis and Axonis) and infrastructure
(Hesop reversible substation and CLever
catenary cantilevers). Since Alstom
for its activities, it also empowers sup-
pliers as part of its drive to achieve
operational excellence by involving them
in the develo­pment of its products and
establishing Alstom Alliance partnerships
(see inset) with key suppliers to reduce
the cost of designing key train compo-
nents.
STANDARDISING
AND STREAMLINING
Boosting operational performance also
involves standardising products and ser-
vices, ensuring a flexible industrial organ-
isation, improving project management,
and pooling working methods and tools.
Alstom has introduced initiatives in each
of these areas, including deployment
of a single ERP1 system for all sites to
promote real-time collaborative work,
along with digital development tools and
improved resource planning.
1- Enterprise Resource Planning.

ALSTOM — Activity report 2016/17 44

NEARLY 40% COST OF NON-QUALITY Alstom supports
OF EMPLOYEES IN 2020 DIVIDED BY 2 its suppliers
will use the new ERP system in 4 years (2014-2017).
at all Alstom sites worldwide.
The Alstom Alliance programme
unveiled in 2015 aims to create
special partnerships between the
Group and its key suppliers to help
them grow, share innovations and
develop key components together.
-30% The programme now includes
35 suppliers and embodies
REDUCTION IN LEAD TIMES Alstom’s commitment to better
AND PRODUCTION COSTS serve its customers and their
through the use of new digital design tools. passengers by offering mobility
solutions that focus on quality,
cost-effectiveness and reliability.

Co-constructing
attractive solutions

As demand for mobility solutions grows, the passenger

experience has become the “deciding factor” in choosing
transport systems. Alstom understands this and works
with its customers to shape differentiating solutions that
provide a source of added value and revenue. This approach
includes access to trains (low floors and mobile step positions
for platforms of different heights), connectivity (seamless
high-speed Wi-Fi), comfort (wide windows, HAS sleepers
to reduce vibrations and tailor train headways to platform
traffic), along with safety, security (facial recognition) and
passenger information (new on-board virtual displays).

45 Activity report 2016/17 — ALSTOM

COMMITMENTS
FOR OUR
EMPLOYEES
Alstom knows its employees are its greatest asset, which is why
it pursues a proactive policy to promote well being in the workplace
while offering attractive career opportunities. Its corporate culture fosters
integrity, entrepreneurial spirit and diversity, providing the building blocks
for the company’s success.
A RESPONSIBLE EMPLOYER
The health and safety of employees are
key priorities. They are an integral part of
Alstom’s strategy. The Injury Frequency
Rate (IFR) was reduced to 1.4 in 20161
through initiatives implemented in line
with the Zero Deviation plan and annual
audits. Efforts are ongoing to achieve
an IFR of 1 by 2020, by which time all
existing sites will hold OHSAS 180012
accreditation. New sites will meet
Alstom’s environment, health and safety
standards at the time of construction.
A health action plan will also be intro-
duced in the near future with a focus on
awareness.
Because the quality of its workforce
is crucial to its success, Alstom conti­
nues to roll out initiatives to attract
the most talented people and develop
their skills throughout their career. The
World Class Engineering programme is
a good example, with its drive to iden-
tify and grow technical expertise among
Group employees. The programme has
helped build a community of more than
350 master and senior-experts around
the globe.
A STRONG CORPORATE CULTURE
Alstom conducts its worldwide business
operations with an uncompromising
commitment to ethics and integrity.
Regular information campaigns help
make everyone more aware of these
ALSTOM — Activity report 2016/17
responsibilities. 6,000 employees received
training in 2016, with a focus on the Alert
Procedure, which allows all employees to
report compliance issues.
To promote employee empowerment,
Alstom encourages entrepreneurial
spirit and recognises individual and col-
lective performance, notably through an
incentivising compensation policy, which
included the allocation of free shares in
2016. The drive to build a strong culture
is also reflected in the four aspects of
Alstom’s leadership model (entrepre-
neurship, collaboration, agility and global
vision) and in its support for diversity.
With respect to gender balance, local
initiatives to support women through
training, improved access to manage-
ment positions and other measures were
expanded in 2016. They now include
tracking indicators in line with the goal
of bringing the share of managerial and
professional positions held by women to
25% by 2020. In terms of cultural diver-
sity, Alstom is on its way to achieving
its 2020 goal: the nationality of middle
management and the talent pool reflects
the international scope of Alstom’s busi-
ness activities.
1- Employees and contractors,
representing one million hours worked.
2- Standard for occupational health
1.
and safety management systems.
46
 An unwavering
commitment to integrity

Alstom has one of the most advanced Ethics

& Compliance policies among companies
around the world. Its Code of Ethics defines
a comprehensive, internationally recognised
set of rules and procedures for relations
with stakeholders including customers,
suppliers, contractors and partners.
Its Integrity Programme helps to clarify 140
these commitments for each employee NATIONALITIES
through training, awareness-raising
enhance Alstom’s
and engagement, backed by a network
cultural diversity.
of more than 200 local ambassadors.

1
INJURY
1. Alstom workers test cables outside the train.
2. Alstom employee at the Savigliano site – Italy. FREQUENCY
RATE
among employees &
contractors by 2020
(in number of injuries
per million hours worked).

92%
OF EMPLOYEES
feel they contribute
to Alstom’s performance
(2016 employee survey).

2.

47 Activity report 2016/17 — ALSTOM

COMMITMENTS
FOR THE
ENVIRONMENT
Alstom is committed to responsible mobility and strives to improve
the environmental performance of its business activities and solutions.
This commitment covers the entire supply chain.
SUSTAINABLE PRODUCTS
The environmental impact of transport
is one of the greatest challenges facing
the world today. Alstom rises to that
challenge by designing rail solutions that
ensure solid environmental performance
throughout their lifecycle. It does so by
targeting energy efficiency, a reduction
in noise and vibrations, the use of clean,
recyclable materials, reduced airborne
emissions, and end-of-life product man-
agement. As a result, trains designed
today are up to 20% more efficient than
previous generations of rolling stock.
Alstom has committed to an additional
20% reduction in the energy consump-
tion of its solutions by 20201. The Group
plans to meet this target through inno-
vation and collaboration, as embodied
by its partnership with SNCF on the next
generation of high-speed trains. Alstom
also began a campaign to explore the
opportunities of the circular economy in
2016, with a focus on the materials used
in train manufacturing and maintenance
operations.
CLEAN OPERATIONS
Alstom is actively pursuing environ-
mental certification for its sites around
the world to help it run a tight ship in
terms of the environmental impact of
its activities. 40 manufacturing plants
and regional centres2 had achieved
ISO 14001 certification by the end of
2016 – accreditation that will cover all
Alstom activities by 2020. The campaign
ALSTOM — Activity report 2016/17
is backed by regular tracking of envi-
ronmental performance indicators, chief
among which is the energy consumption
of sites and activities. The 2016 action
plan helped Alstom meet its 2020 goal
of a 10% reduction in the energy inten-
sity of operations ahead of schedule in
March 2017. Water consumption is also
the focus of ongoing efforts, as is the
drive to curb greenhouse gases and VOC3
emissions. Alstom is aiming to keep its
waste recovery rate above 80% while
reducing the amount of waste from its
activities by 10% by 2020.
SUSTAINABLE SOURCING
Alstom is committed to implementing
responsible practices throughout the
value chain for rail solutions, with all
suppliers required to sign its sustainable
development charter. The Group is also
involved in the Railsponsible industry ini-
tiative, which it chaired in 2016/17. The
initiative aims to encourage all indus-
try suppliers to apply best practices in
terms of ethical, social, environmental
and commercial performance. As part
of this approach, any suppliers at risk of
non-compliance are required to submit to
an assessment by an independent body.
1- Compared with 2014.
2- L ocal centres managing infrastructure
projects, integrated systems and signalling.
3- Volatile Organic Compounds.
48
 877 689
2016

2014 2016
2014

2016

2014

2016
83% 88%
2014 2016
Bus or tramway?
11.6 10.5 11.6 10.5
-10% >80% In 2016, Alstom commissioned the
TARGET 2020 TARGET 2020 independent research firm Carbone 4
Reduction in the energy intensity Increasing the waste recovery rate to conduct a comparative study of
of permanent facilities (vs 2014), (vs 2014) while achieving a 10% greenhouse gases given off by trams
with an energy action plan targeting reduction in waste production. and BRT systems on a 10 km route
the 20 most energy-intensive sites. in Belgium. The findings showed
(in kW/hour worked) that trams running on the line gave
off only half as much CO2 as their
diesel-driven BRT counterpart,
30% less than a rechargeable
hybrid BRT and 17% less than
-10% an electric BRT. The integrated
877 689 TARGET 2020 tramway solution Attractis reduces
infrastructure-related emissions
Reduction in water consumption by a further 20% compared
(vs 2014), especially in areas with a conventional tramway.
of water stress.
2014 2016 (in thousands of cubic metres)

The Sydney sustainable

tramway initiative
2014

2016

Sustainable development is a core feature of the project

to build the Sydney tramway. Sustainability covers a whole
range of factors such as water supply and consumption,

88%
carbon footprint, energy efficiency and integration into the
urban environment. Alstom’s project management approach

2016
incorporates the full range of customer needs in terms of
products (Citadis X05 with permanent magnet motors
to reduce energy consumption and Hesop substation to recover
99% of energy from braking), civil engineering (recycled
materials) and social acceptance (communication with
stakeholders). The project is currently under construction and
11.6 10.5
trams are due to begin operation on schedule in early 2019.

49 Activity report 2016/17 — ALSTOM

COMMITMENTS
FOR LOCAL
COMMUNITIES
Alstom aims to make an active contribution to local communities wherever
it does business, improving people’s lives and fostering dialogue with
stakeholders through its corporate foundation and individual site initiatives.
LOCAL INITIATIVES
Alstom sites around the world implement
projects to support local communities.
These initiatives are guided by three pri-
orities. They enable targeted action to
meet local needs with respect to health,
living conditions and humanitarian aid
in the event of natural disasters. They
promote education through aid for
schools and students as well as techni-
cal partnerships with universities. They
support economic development and local
industry through integration initiatives
(apprenticeships), innovation financing
(venture capital funds for startups and
collaborative research projects) and
backing for companies close to Alstom
sites. To make these programmes more
effective, all countries in which Alstom
employs more than 200 people intro-
duced a structured action plan for their
initiatives in 2016. They also appointed
local representatives tasked with imple-
menting and tracking projects.
ALSTOM — Activity report 2016/17
A COMMITTED FOUNDATION
The Alstom Foundation has been drawing
on its expertise and network of resources
to support these local projects since
its inception 10 years ago. It actively
encourages and nurtures employee initi-
atives to improve living conditions in local
communities near Alstom sites. Selected
projects are implemented with the help
of local and international partners such
as NGOs, non-profit organisations and
associations, which provide the Founda-
tion with the expertise needed to bring
projects to fruition. Alstom supported
18 new projects worldwide in 2016, with
a focus on four key themes: economic
and social development, access to energy
and water, environmental protection and
access to mobility.
In Paita, a small fishing port in northern Peru, population
growth has led to an increase in demand for teaching facilities,
especially for children between the ages of two and six.
In response, the Alstom Foundation is funding a project to build
two new classrooms in the Lunita Paita infant school in 2017
to support education for younger children. There are also
plans to install a greenhouse and drip-irrigation system on the
premises to foster local economic development and save water.
50

18
OUTREACH INITIATIVES
received Alstom Foundation
support to improve living conditions
in local communities in 2016.
21
COUNTRIES
in which Alstom employs more
than 200 people introduced
a structured action plan to support
local communities in 2016.
51
A mobile clinic
in India
The Madhepura district, in which
Alstom is building a new plant,
is one of India’s least-developed
regions. In late 2016, as part
of the project, the Group
introduced an initiative to set up
a mobile clinic providing
healthcare for people in
surrounding villages, including
a doctor’s surgery, medicine,
nutritional follow-up, and
training for healthcare providers.
Educational opportunities will
also be provided through
twice-weekly visits by a teacher
and teacher-training initiatives.
151
PROJECTS
have been implemented
in 52 countries since
the Alstom Foundation was
established in 2007.
Activity report 2016/17 — ALSTOM
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Latin America
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B Wing 3rd Floor,
C V Raman Nagar,
Bangalore - 560 093
Karnataka - India
Telephone: +91 80 4641 2400

North America
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