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Alstom Capital Markets Day

Paris - France
June 24 2019
Disclaimer

This presentation contains forward-looking statements which are based on current plans and forecasts of
Alstom’s management. Such forward-looking statements are by their nature subject to a number of
important risk and uncertainty factors (such as those described in the documents filed by Alstom with the
French AMF) that could cause actual results to differ from the plans, objectives and expectations expressed
in such forward-looking statements.
These such forward-looking statements speak only as of the date on which they are made, and Alstom
undertakes no obligation to update or revise any of them, whether as a result of new information, future
events or otherwise.

ALSTOM – 24/06/2019 – P 2
© ALSTOM 2019. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should 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 or disclosure to third parties, without express written authority, is strictly prohibited.
AGENDA

9:30-10:00 am ⚫ Welcome Coffee 2:00-3:30 pm ⚫ Signalling


Jean François Beaudoin – Digital Mobility SVP
⚫ Services
Bernd Burgstahler – Services VP
10:00-12:15 pm ⚫ Alstom today, market perspectives, ⚫ Innovation
Strategy overview Marc Granger – CSO
Henri Poupart-Lafarge – Chairman & CEO
⚫ Finance
Laurent Martinez – CFO
3:30-4:00 pm ⚫ Questions & answers
⚫ Efficiency
Thierry Best – Operations SVP
⚫ India
Ling Fang – APAC SVP
4:00-4:15 pm ⚫ Closing remarks
⚫ Questions & answers Henri Poupart-Lafarge – Chairman & CEO
12:15-12:45 pm

12:45-2:00 pm ⚫ Lunch break

ALSTOM – 24/06/2019 – P 3
© ALSTOM 2019. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should 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 or disclosure to third parties, without express written authority, is strictly prohibited.
Today’s speakers

Henri Poupart-Lafarge Laurent Martinez Thierry Best Ling Fang


Chairman Chief Financial Operations Asia Pacific
& Chief Executive Office Officer Senior Vice President Senior Vice President

Jean François Beaudoin Bernd Burgstahler Marc Granger


Digital Mobility Services Chief Strategy
Senior Vice President Vice President Officer

ALSTOM – 24/06/2019 – P 4
© ALSTOM 2019. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should 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 or disclosure to third parties, without express written authority, is strictly prohibited.
Alstom today, Market
perspectives, Strategy overview
Henri POUPART-LAFARGE – Chairman & CEO
2019 Capital Markets Day

ALSTOM – 24/06/2019 – P 5
© ALSTOM 2019. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should 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 or disclosure to third parties, without express written authority, is strictly prohibited.
Alstom today

ALSTOM – 24/06/2019 – P 6
© ALSTOM 2019. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should 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 or disclosure to third parties, without express written authority, is strictly prohibited.
2016 – 2019: establishing a successful rail pure player

Alstom 2020 Strategy

CUSTOMER-FOCUSED ORGANISATION

COMPLETE RANGE OF SOLUTIONS

VALUE CREATION THROUGH INNOVATION

OPERATIONAL & ENVIRONMENTAL EXCELLENCE

DIVERSE AND ENTREPRENEURIAL PEOPLE

ALSTOM – 24/06/2019 – P 7
© ALSTOM 2019. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should 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 or disclosure to third parties, without express written authority, is strictly prohibited.
The most global player, a leader in all geographies, result of
outstanding growth

Alstom within the top 3 market Growth outperforming the market


share in every region1 Alstom sales, by region, in € Bn

ALSTOM
CAGR
5.5%
Americas2 Asia Pacific Market4

#1 #2 2.3%

8.1
7.3 7.3
6.9
1.6
1.3 1.4
1.1
0.9
0.7 0.7 0.9
1.1 1.2 1.5
Middle-East Europe3 1.3
Africa #3
#2 #1* on a 2018/19
basis
4.1 4.1 3.7 4.1

5 6
2015/16 2016/17 2017/18 2018/19

1 Based on last 3 years orders vs accessible market ; 2 Americas excluding freight market ; 3 Russia not included as market handled directly by TMH ; 4 CAGR between 2015/17
ALSTOM – 24/06/2019 – P 8
and 2018/20 ; 5 15/16 and 16/17 numbers are per IAS 11 6 Restated for IFRS 9 & 15. - Sources: Alstom ; UNIFE Market Study 2018
© ALSTOM 2019. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should 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 or disclosure to third parties, without express written authority, is strictly prohibited.
A unique multiregional footprint key to the group’s commercial
success and competitiveness

Europe
21,400
Americas Sri City
5,200 USA
Bangalore
Asia Pacific India
5,200 Brazil

Middle East Africa South Africa


4,500 Katowice

36,300 people in New regional hubs Best shoring Global M&A


over 60 countries and partnerships
Customer Intimacy Localisation demand Competitive offering Access to market
and talent reservoir Project execution
ALSTOM – 24/06/2019 – P 9
© ALSTOM 2019. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should 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 or disclosure to third parties, without express written authority, is strictly prohibited.
A diverse and innovative portfolio of solutions

New platforms and breakthrough innovations


in all product lines
Tramway Regional Regional
ROLLING SYSTEMS SERVICES SIGNALLING
STOCK

High Speed Infrastructure Maintenance Mainline networks


& Very High Speed
Integrated Modernisation Urban networks Citadis XO5 Alu Coradia Stream Coradia iLint
Suburban solutions
Parts & Repairs Network E-Bus High-speed Locomotive
& regional trains
and passenger
Support services
Metros monitoring
and surveillance
Tramways
systems
Avelia Liberty –
Locomotives
Aptis Amtrak & TGV Prima H3
Electrical bus
Systems Infrastructure Services

ROLLING 43%
STOCK 22%
Montreal (REM) SRS Health Hub
€3.4Bn SYSTEMS
€1.8Bn
R&D
4-5%
€1.3Bn €1.6Bn investments
SIGNALLING
SERVICES sales 2015/16 – 2018/19
16% 19% Split of Alstom FY2018/19 Sales * FY2015/16 and FY2016/17 restated for IFRS 15
ALSTOM – 24/06/2019 – P 10
© ALSTOM 2019. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should 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 or disclosure to third parties, without express written authority, is strictly prohibited.
Strong project execution and ability to improve operational profitability

Operational excellence Margin evolution Structural cost control


Gross Margin on Order Intake, in % SG&A evolution contained despite fast
growing sales (in €m)
2015/16 2018/19 As of % sales
+15%

On time delivery
2015/16 2016/17 2017/18 2018/19
7.8% 7.8%
2015/16 2018/19 Margin at completion increase 7.4%
on projects portfolio 7.0%
-0.34pp

Decreased cost of non (536) (539)


(570) (571)
quality in percentage points
FY 2015/16 FY 2016/17 FY 2017/18 FY 2018/19 2015/16 2016/17 2017/18 2018/19
ALSTOM – 24/06/2019 – P 11
© ALSTOM 2019. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should 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 or disclosure to third parties, without express written authority, is strictly prohibited.
Strategy 2020 largely a success, ready for the next step

Record backlog in the industry, geared for sustainable growth Outperformed market and main competition’ growth
Backlog in 2018/19 Sales 2015/161 – 2018/19

€40.5Bn €33Bn €30Bn 5.5% 5.3% 2.5% 2.3%

Global Global Global Global


Market
Alstom competitor 1 competitor 2 Alstom competitor 1 competitor 2

Strong increase in profitability Significant recovery in free cash flow


aEBIT (in €m) FCF (in €m)
FCF
FY 2018/19 7.1% 570 +1.8pt FY 2018/19 153
+479m
2
366 -326
2
FY 2015/16 5.3% FY 2015/16

Strategy 2020 objectives: 5% sales organic growth per year, around 7% Adjusted EBIT margin,
c. 100% conversion from net income to free cash flow
1 Based on published data on local currency
ALSTOM – 24/06/2019 – P 12 2 Under IAS11 standards, not restated for IFRS 9 & 15 and based on published data on local currency
© ALSTOM 2019. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should 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 or disclosure to third parties, without express written authority, is strictly prohibited.
Market perspectives

ALSTOM – 24/06/2019 – P 13
© ALSTOM 2019. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should 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 or disclosure to third parties, without express written authority, is strictly prohibited.
Robust macro-economic drivers supporting the steady growth
of rail traffic

Passenger traffic per market segment


Sustainable
Urbanisation development In basis 100
70% -60% Average growth
(2015 – 2025)

of urban population -60% CO2 emissions


projected by 2050 expected in transport Urban
by 2050 (vs.1990) +5.2%

Mainline
+3.2%
Improvement of OECD
WW GDP growth average budget deficit:
projected between -0.15% in 2017
2017 and 2022 vs. -4.8% 2013
Freight
+1.4%
+3.8%
p.a. Economic Governmental
growth funding
2005 2015 2025

Sources: Statista, United Nations, OECD, 2011 EU White Paper, UIC & CER Rail transport and Environment Facts & Figures report, BCG analysis Data: Rail transport markets – global market trends 2016–2025 - SCI Verkehr
Note: Urban traffic figures are for Top 30 cities worldwide; Mainline & Freight traffic figures are for all major national operators worldwide multi client studies 2017

ALSTOM – 24/06/2019 – P 14
© ALSTOM 2019. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should 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 or disclosure to third parties, without express written authority, is strictly prohibited.
A positive rail manufacturing market outlook

Global rail OEM market, in € Bn Global rail OEM market, in € Bn


CAGR CAGR
+3.0% +3.0%

LATAM TURNKEY
125 125
Uncertain momentum Strong potential 0.7
4.9
114 constrained by uncertain 114
9.5 momentum in MEA 0.6
MEA 4.5 25.1
7.6 INFRA
Economic slowdown may 22.0
20.4
hamper scheduled growth
20.1 17.6
16.1
APAC SIGNALLING
Urbanisation Standardisation
driven growth and digitalisation trend
57.4 37.7
34.7
53.8
EUROPE1 SERVICES
Strong green Robust growth supported
& brownfield pipeline by liberalisation

NORTH AMERICA 40.6 43.4


32.3
Mainline and freight 28.2 ROLLING STOCK
locos dynamism Urban and regional

2018-2020 2021-2023 2018-2020 2021-2023


1 Including France and including CIS
ALSTOM – 24/06/2019 – P 15 Source: UNIFE Market Study 2018
© ALSTOM 2019. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should 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 or disclosure to third parties, without express written authority, is strictly prohibited.
A more diverse set of clients

Clients becoming more and more


Longstanding clients partners
National operators on traditional markets
Demand shift towards:
• Lower Total Cost of
Ownership is becoming
the rule
• Higher demand for
services contracts
• Flexible Rolling Stock

New business models emerging


New clients (e.g. leasing, pay-per-use)
Internationalised Operators
Private operators Level of tender specification
highly dependent on type of
Transport Authorities
clients
Infrastructure funds

ALSTOM – 24/06/2019 – P 16
© ALSTOM 2019. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should 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 or disclosure to third parties, without express written authority, is strictly prohibited.
Growing environmental concerns while rapid advancement
of green technologies

Multiplication of "diesel ban" Continued investment in hydrogen Increased availability


Hydrogen Council: ~$10bn of green technologies
investment (2017) Li-ion battery cell cost development,
Copenhagen USD/kWh; 2016 - 2030
2020
Paris
200
Norway

Netherland
Munich 2030
Stuttgart
150
Dusseldorf
Hamburg
California 2040 H2 mobility Germany:
Finland ~€350m investment (2015)
100
Build up to 400 hydrogen refuelling
Brazil 2050
stations by 2023

XX Ban of diesel cars


XX Ban of all internal-combustion cars
XX Ban of sales of new ICE cars, use of existing cars allowed 50
XX Objective to run on 100% renewable energy 2015 2018 2021 2024 2027 2030

ALSTOM – 24/06/2019 – P 17 Source: Corporate websites, Roland Berger

© ALSTOM 2019. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should 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 or disclosure to third parties, without express written authority, is strictly prohibited.
Digital revolution carrying changes in our industry

Rapid progress in digital


technologies… …Enabling new mobility solutions… … And impacting the rail value chain

Big data
⚫ Data: new gold for all players
Advanced analytics
⚫ Value in complex algorithms for
maintenance, operations or
Cloud
customer facing services

Sensors ⚫ Cybersecurity as a key concern

IoT ⚫ Multimodality, mobility as a


service and sharing economy
Very high speed blurring the frontier between different
Network ground transportation modes

Artificial intelligence

ALSTOM – 24/06/2019 – P 18
© ALSTOM 2019. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should 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 or disclosure to third parties, without express written authority, is strictly prohibited.
Looking further afield: convergence of rail-guided mobility
and the world of private individual vehicles

THE RAIL INDUSTRY IS ALREADY:


Private, Public,
individual, NEW collective, ⚫ High safety compliant
road-based MOBILITY rail-guided
solutions solutions
shared ⚫ 50% electrified, and soon
connected/ hydrogen or battery powered
autonomous
secure ⚫ Autonomous technology
green existing (metros)

⚫ Evolving in complex systems


(infrastructure + vehicle)

ALSTOM GEARED FOR THE FUTURE MOBILITY LANDSCAPE


With new mobility requirements approaching rail requirements while rail is resilient
and will remain the backbone of mass transit

ALSTOM – 24/06/2019 – P 19
© ALSTOM 2019. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should 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 or disclosure to third parties, without express written authority, is strictly prohibited.
Strategy overview

ALSTOM – 24/06/2019 – P 20
© ALSTOM 2019. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should 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 or disclosure to third parties, without express written authority, is strictly prohibited.
Our mid-term ambition

Be the leading global innovative player

for a sustainable and smart mobility

ALSTOM – 24/06/2019 – P 21
© ALSTOM 2019. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should 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 or disclosure to third parties, without express written authority, is strictly prohibited.
AiM – Alstom in Motion : our strategic plan for 2019 - 2023

GROWTH INNOVATION EFFICIENCY,


by offering in smarter and powered by
greater value greener mobility digital
to our customers solutions

Driven by One Alstom team, Agile, Inclusive and Responsible

ALSTOM – 24/06/2019 – P 22
© ALSTOM 2019. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should 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 or disclosure to third parties, without express written authority, is strictly prohibited.
Growth by offering greater value to our customers

◄ Leverage our recognised expertise and our customer intimacy worldwide ►

SERVICES SIGNALLING ROLLING STOCK & SYSTEMS


Become Gain product Grow profitably leveraging
the undisputed leader and market leadership our new platforms

#1 OR #2 IN OUR MARKETS – GEOGRAPHIES AND LINES OF BUSINESSES


ALSTOM – 24/06/2019 – P 23
© ALSTOM 2019. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should 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 or disclosure to third parties, without express written authority, is strictly prohibited.
Services: become the undisputed leader

Outstanding market potential Alstom best positioned with unique assets and
excellent track-record
Accessible market by 2023: ~€42bn1, ⚫ Installed base + 50,000 vehicles, only 1/5 clients have
largely untapped service contracts today
⚫ Numerous success stories of subcontracting to
Strong growth drivers: liberalisation, traditional operators
efficiency concerns of operators, growing
and ageing installed base ⚫ Digital-driven maintenance, green retractioning, proven
ability to maintain non Alstom fleet
Alstom Services Orders and Sales In €m, Acc. Market CAGR +3%
Sound strategic and financial rationale: CAGR in % 11/13 – 18/20

20 years+ term contracts, high margins, Orders +16%


customer intimacy, low capex Sales

+7%

2011/12* 2012/13* 2013/14* 2014/15* 2015/16* 2016/17* 2017/18** 2018/19


* Under IAS 11 ; ** Restated for IFRS 9 & 15

❶New revenue ❷Expand our leadership


NEXT PRIORITIES: streams in parts in maintenance
❸Green modernisation

1 Including signalling services


ALSTOM – 24/06/2019 – P 24 Source: UNIFE Market Study 2018
© ALSTOM 2019. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should 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 or disclosure to third parties, without express written authority, is strictly prohibited.
Signalling: gain product and market leadership

Accessible Market Segment Breakdown1 NEXT PRIORITIES:


UNIFE Accessible market

⚫ Leverage our assets to capture growth:


Mainline: driven by
Europe and ETCS
upswing ✓ ETCS expertise

URBAN: large
✓ Complex project know-how
roll-outs planned
34%
✓ #1 in China and India for Urban
~€12Bn 46%
Over past
years
✓ Leader in NAM Freight and mining
F&M: steered by 6%
NAM, continued
8%
✓ Global footprint
strong financial 6% Mainline
and strategic Wayside
rationale Mainline ⚫ Standardise our platforms to gain in
Onboard agility and competitiveness
Mainline Others

⚫ Deepen technological leadership


1 Excluding Services
ALSTOM – 24/06/2019 – P 25
Source: UNIFE study 2018 & Company data
© ALSTOM 2019. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should 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 or disclosure to third parties, without express written authority, is strictly prohibited.
Rolling stock & Systems:
leverage our new platforms to further expand

Already a leading position in our markets1 NEXT PRIORITIES:


Market shares 3Y Orders – March 19, in %

⚫ High technology products


⚫ Competitive on price (Total Cost
20%
17%
15% of Ownership) quality and time
⚫ Higher penetration
10% in established markets
6% ⚫ Ability to customise and respond
to clients’ demands and extension to new
Alstom Competitor 1 Competitor 2 Competitor 3 Competitor 4 geographies – with same
products or products with
New platforms already
Latest developments: limited adaptation
well commercialised €1.2Bn €4Bn
Orders FY 2016/17-2018/19 Smart Avelia ⚫ Maintenance consideration fully
high
metro
speed embedded in design and ⚫ Increased competitiveness
manufacturing
through standardisation
50% €1.8Bn €310m
⚫ From energy usage reduction to
limiting the impact on the
of orders Coradia
stream2
Citadis
X05 infrastructure

from new platforms ⚫ Integration of digital solutions


1 The addressable rolling stock excludes D-Loco, Wagons, Coaches and APM. Coradia Stream – Netherlands and Italy projects
ALSTOM – 24/06/2019 – P 26 Source: Alstom competitor orders database
© ALSTOM 2019. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should 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 or disclosure to third parties, without express written authority, is strictly prohibited.
Already recognised breakthrough innovations
in green and smart mobility

First Hydrogen train


Unique electric bus €360m first contract
Built from base zero
Won one of the largest
European tenders

Alstom assets
Rolling stock - Coradia ILint ⚫ Long-term
customer intimacy
New platform - Aptis 99% of recoverable
energy captured ⚫ Dynamic
Now extensively used
worldwide
entrepreneurial culture
Pionner / leader
in predictive
maintenance ⚫ 7,000 engineers,
Systems - Hesop
2/3 software
Services - Health Hub
World first driverless-
To-driveless metro ⚫ A strong ecosystem
with key partnerships
Signalling - Fluence

ALSTOM – 24/06/2019 – P 27
© ALSTOM 2019. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should 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 or disclosure to third parties, without express written authority, is strictly prohibited.
Six priority innovation areas to respond to mid
and long term business drivers

Road electromobility
2

GREEN 1 3
Green traction Eco-design and manufacturing
MOBILITY

6 4
SMART Multimodality
Autonomous train
and Flow management
MOBILITY 5

Data driven rail mobility

LEAD IN GREEN AND SMART SOLUTIONS


ALSTOM – 24/06/2019 – P 28
© ALSTOM 2019. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should 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 or disclosure to third parties, without express written authority, is strictly prohibited.
Efficiency, powered by digital

A TOP PRIORITY FOR THE GROUP

Additional levers
2020 objective of 7% aEbit margin reached
⚫ Digital transformation
Thanks to:
⚫ Footprint stabilisation & optimisation
⚫ Sourcing cost reduction – €250m
⚫ Best-in-class project execution, including cash focus
⚫ 60% of manufacturing in best cost countries

⚫ Strong project execution and SG&A On top of natural drivers


control ⚫ New platforms gaining in competitiveness
⚫ Volume and mix effect ⚫ Learning curve of our recent manufacturing and
engineering sites

INDUSTRY LEADING MARGINS AND CASH GENERATION


ALSTOM – 24/06/2019 – P 29
© ALSTOM 2019. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should 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 or disclosure to third parties, without express written authority, is strictly prohibited.
Environment and social impact at the heart of our strategy

2025 targets

1
ENABLING 25%1 energy reduction in solutions (CO2)
decarbonisation of mobility 100 % electricity supply from renewables

2 Total recordable injury rate at 2


CARING
for our people
25% Women in management & professional roles
Global Top Employer certification

3
CREATING 100,000 beneficiaries /y from local actions
a positive impact on society 100% of newly developed solutions eco-designed

4
DEVELOPING 100% of suppliers monitored or assessed for
ethical and sustainable supply chains compliance on CSR standards and E&C practices

ALSTOM – 24/06/2019 – P 30 1 Compared to 2014


© ALSTOM 2019. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should 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 or disclosure to third parties, without express written authority, is strictly prohibited.
Clear financial objectives for 2022/23

Sales average
annual growth Above 80% Net
aEBIT margin1
rate of around 5% Income2 to FCF3 by
around 9% in 2022/23
over 2019/20 to 2022/23
2022/23

Sustainable shareholder return: 25 to 35% dividend pay-out as of 2019/20


1 including CASCO JV share of net income
2 Net profit from continuing operations attributable to equity holders of the parent
3 Nota: free cash flow generation is subject to usual short-term volatility linked to customers down payments and milestone payments from customers
ALSTOM – 24/06/2019 – P 31
Under new IFRS standard (IFRS15/IFRS16)
© ALSTOM 2019. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should 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 or disclosure to third parties, without express written authority, is strictly prohibited.
Finance
Laurent MARTINEZ - CFO
2019 Capital Markets Day

ALSTOM – 24/06/2019 – P 32
© ALSTOM 2019. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should 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 or disclosure to third parties, without express written authority, is strictly prohibited.
Alstom 2020 achievements

ALSTOM – 24/06/2019 – P 33
© ALSTOM 2019. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should 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 or disclosure to third parties, without express written authority, is strictly prohibited.
2020 Strategy largely a success - Alstom Financial Achievement

Backlog (in € billion) Sales (in € billion)


40.5 8.1

30.4
+33% 6.9 CAGR ⚫ Backlog: strongest industry backlog
5.5%
⚫ Growth to €8.1Bn sales
⚫ Raised margin to 7%
FY 2015/16* FY 2018/19 FY 2015/16* FY 2018/19
*as per IAS11 standards *as per IAS11 standards
⚫ Growing FCF generation
aEBIT (in € million) FCF (in € million)
570
153,0

366 +1.8 (326,0)


+479m
pt

7.1%
5.3%

FY 2015/16* FY 2018/19 FY 2015/16** FY 2018/19


* as per IAS11 standards
** 15/16 excl. extraordinary DOJ fine for ca. (720)m
and discontinued (1,568)m
ALSTOM – 24/06/2019 – P 34
© ALSTOM 2019. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should 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 or disclosure to third parties, without express written authority, is strictly prohibited.
Delivering Margin Expansion

7.1%

⚫ Volume/Price
▪ Solid top line growth
▪ Partly offset by pricing dynamics

5.3% Operational ⚫ Portfolio/Mix


Mix Excellence
▪ Reaching 60% sales on Services / Signalling / Systems
Volume/price ▪ New products development

⚫ Operational excellence
▪ Sourcing savings
▪ Global footprint (India, Poland)
▪ Project delivery excellence
aEBIT aEBIT
2015/16 2018/19

ALSTOM – 24/06/2019 – P 35 *as per IAS11 standards


© ALSTOM 2019. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should 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 or disclosure to third parties, without express written authority, is strictly prohibited.
Alstom Success Foundation: Tender and Project Execution

Gross Margin% on Orders Intake Margin at completion increase


On projects portfolio

FY 2015/16 FY 2016/17 FY 2017/18 FY 2018/19 FY 2015/16 FY 2016/17 FY 2017/18 FY 2018/19

⚫ Sound Management of 500 projects portfolio


Strong Project & Risk Management DNA
⚫ Continuous progression in Margin on Order Intake
⚫ Robust project execution: uplift on margin at
completion on projects portfolio over last 8 semesters

ALSTOM – 24/06/2019 – P 36
© ALSTOM 2019. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should 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 or disclosure to third parties, without express written authority, is strictly prohibited.
Creating Value with JV and Partnerships

United Kingdom France Russia


in € millions) Nomad Digital & 21Net (connectivity) Easymile (driverless shuttles) TMH (trains & services)
* Excluding JV Energy Share: 100% Share: 20%
89* Speedinov
Share: 50%
China
Casco (Sig)
Share: 49%
(7)*
711
352*
Kazakhstan
15/16 18/19 Morocco EKZ (locos)
Share: 75%
Cabliance
Share in Equity Share of net Income (cabling)
Share: 100%

South Africa India


Gibela (trains) Madhepura (locos)
Share: 61% Share: 74%

⚫ Diversified partnership & acquisition:


▪ CASCO: access to Chinese Market ▪ Project partnership ▪ Digital & Innovation
▪ TMH: strategic partnership / - Madhepura: India eloco - EasyMile: Smart Mobility
access to Russian market - Gibela: South Africa Prasa train - Nomad and 21Net: On Board Connectivity
- EKZ: Kazahkstan Locomotives - Speedinnov: High Speed Development

ALSTOM – 24/06/2019 – P 37
© ALSTOM 2019. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should 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 or disclosure to third parties, without express written authority, is strictly prohibited.
Sustainable Working Capital Performance

Down Payments position (in € billion) Working Capital Change (impact on FCF) (in € million)

2,50.0 2.3 2.3 16 FY 2015/16 FY 2016/17 FY 2017/18 FY 2018/19


2.2
2.0 14
2,0.0
12.1 12
10.6 +€100m
1,50.0 10.0 10
8
1,0.0 7.2
6
4
,50.0
2 (84)
,0.0 0
FY 2015/16 FY 2016/17 FY 2017/18 FY 2018/19 127 91
(12)
Down payment B/S position Order intake
€(100)m

⚫ Stable Down Payments position ⚫ Limited Working Capital fluctuation


⚫ Sustainable negative Working Capital (ca. 20% of Sales)
driven by customer payments phasing

ALSTOM – 24/06/2019 – P 38 Nota: FY15/16 and FY16/17 under IAS11 FY17/18 and FY18/19 under IFRS15
© ALSTOM 2019. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should 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 or disclosure to third parties, without express written authority, is strictly prohibited.
Strong Balance Sheet post 18/19 Dividend –
Foundation for next phase

Net Cash / (Debt) (in € million)


2,325 (1,230)

⚫ Dividend of 5.5€ per share proposed by Board


of Directors
1,095
⚫ Strong net cash position allows growth and
investment
⚫ Solid rating: Baa2
⚫ Access to bank guarantees at competitive price
Net Cash at 31 Net cash remaining
Dividend distributed
March 2019 after dividend
pre IFRS 16 pre IFRS 16

IFRS 16 adjustment
between €400m and €500m

ALSTOM – 24/06/2019 – P 39
© ALSTOM 2019. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should 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 or disclosure to third parties, without express written authority, is strictly prohibited.
AiM financial framework

ALSTOM – 24/06/2019 – P 40
© ALSTOM 2019. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should 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 or disclosure to third parties, without express written authority, is strictly prohibited.
Alstom’s Strategic Framework

We AiM to

GROWTH INNOVATION EFFICIENCY,


by offering in smarter and powered by
greater value greener mobility digital
to our customers solutions

One Alstom team, driven by Agile, Inclusive and Responsible values

Sales step up Future growth & Margin expansion &


competitive edge Cash Generation

ALSTOM – 24/06/2019 – P 41 Following slides under new IFRS standards (IFRS15/IFRS16)


© ALSTOM 2019. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should 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 or disclosure to third parties, without express written authority, is strictly prohibited.
Growing Sales Sustainably Above Market

⚫ Record €40Bn backlog securing €16.5-17.5Bn


sales over next 3 years
€8.1Bn ⚫ Boost Signalling sales
⚫ Foster Services momentum
⚫ Revenue from Services and Signalling to reach
40% by 2022/23
⚫ Build on Rolling Stock and Systems capabilities
⚫ Softer FY 2019/20 due to Middle East large
system projects phasing
FY 2018/19 FY 2019/20 FY 2020/21 FY 2021/22 FY 2022/23
Sales from Backlog Sales from New Orders

Sales step up: Average annual growth rate of around 5% over 2019/20 to 2022/23
ALSTOM – 24/06/2019 – P 42 Nota: Graph for illustrative purpose
© ALSTOM 2019. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should 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 or disclosure to third parties, without express written authority, is strictly prohibited.
Boosting Signalling Performance

⚫ Signalling growth drivers


▪ European Mainline signalling
▪ Global urban market
▪ Services on installed base
€1.3Bn ▪ Innovation

⚫ Margin expension drivers


▪ R&D efficiency & standardisation
▪ Bangalore engineering footprint
▪ Casco contribution

FY 2018/19 FY 2019/20 FY 2020/21 FY 2021/22 FY 2022/23


Signalling Sales

Changing Gear on Signalling


ALSTOM – 24/06/2019 – P 43 Nota: Graph for illustrative purpose
© ALSTOM 2019. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should 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 or disclosure to third parties, without express written authority, is strictly prohibited.
Harvesting on Service Leadership

⚫ Services growth drivers


▪ Record backlog of €13.5Bn
▪ Long term maintenance services contracts, parts, green
€1.6Bn modernisation
▪ Alstom unique added value on reliability & availability

⚫ Margin drivers
▪ Sourcing efficiency
▪ Design for maintenance & services
▪ Digital services & predictive maintenance

⚫ High margin, low risk, low capital intensity


FY 2018/19 FY 2019/20 FY 2020/21 FY 2021/22 FY 2022/23 Business model
Services Sales

Services momentum accelerated - additional value delivered to operators


ALSTOM – 24/06/2019 – P 44 Nota: Graph for illustrative purpose
© ALSTOM 2019. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should 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 or disclosure to third parties, without express written authority, is strictly prohibited.
Leading Rolling Stock and System Performance

⚫ Systems dynamics
▪ Systems sales softening after peak activities in 2018/19
▪ Opportunities in Middle East & Latin America
▪ Unique Alstom turn-key experience & capability
€1.8Bn
⚫ Rolling stock growth drivers
▪ Renewed product portfolio on Rolling Stock
▪ Innovative products: H2 train, eBus
▪ Market momentum: Europe, North America, India…
€3.4Bn

⚫ Rolling stock margin expension drivers


▪ Sourcing performance
▪ Footprint: Best costs countries expansion
FY 2018/19 FY 2019/20 FY 2020/21 FY 2021/22 FY 2022/23
Sales from Rolling Stock Sales from Systems

Leveraging our global reach & renewed product portfolio


ALSTOM – 24/06/2019 – P 45 Nota: Graph for illustrative purpose
© ALSTOM 2019. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should 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 or disclosure to third parties, without express written authority, is strictly prohibited.
Committed to Create Value Through Innovation

R&D Costs
around
5%
⚫ R&D costs growing at same pace than sales
400 0.6% (around 5%): stable R&D / sales ratio

350
€291m ⚫
0.5% Harvesting on current platform generation on
300
Rolling stocks
0.4%
250
⚫ Prioritised innovation axes
200 0.3%
▪ Green mobility: H2 train and eBus
150
0.2% ▪ Signalling product development
100
▪ Very high speed (TGV du futur – co financed with ADEME)
0.1%
50
▪ SMART mobility
0 0.0%
FY 2018/19 FY 2019/20 FY 2020/21 FY 2021/22 FY 2022/23
R&D Costs as % of Sales

Investment fire power focus on future growth


ALSTOM – 24/06/2019 – P 46 Nota: Graph for illustrative purpose
© ALSTOM 2019. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should 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 or disclosure to third parties, without express written authority, is strictly prohibited.
Uplifting margin to Benchmark Level

9.0%*
⚫ Volume/Price
▪ Sustainable top line growth
▪ Consistent price dynamics trends
7.5%*
⚫ Portfolio Mix
Operational
Excellence ▪ Growth towards Services & Signalling (toward 40% of
Mix
Casco sales in 2022/23)
Volume/price
⚫ Operations Performance
7.1%
▪ Sourcing savings (60% Best cost countries)
▪ Global footprint extension (60% Best cost countries)
▪ Standardisation & efficiency in execution

aEBIT 2018/19 aEBIT 2022/23

* including CASCO JV share of net income

Profit boost by 150 bps to around 9% aEBIT margin


ALSTOM – 24/06/2019 – P 47 Nota: Graph for illustrative purpose
© ALSTOM 2019. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should 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 or disclosure to third parties, without express written authority, is strictly prohibited.
Deliver EPS growth

0.3
⚫ EPS growth driven mainly by EBIT step up
▪ Restructuring almost completed, returning to normative
0.2 level
▪ Financial expenses reduced by bonds repayment
0.2 ▪ Effective Tax Rate between 25 and 30%, benefiting from
Deferred Tax Asset
▪ Long Term Incentive payout to be implemented through
0.1
Share Buy-back

0.1

0.0
2018/19 2022/23
EPS 2018/19 without GE JV put option & Disc. Net income impact

EPS ramp-up boosted by operational performance and balance sheet discipline


ALSTOM – 24/06/2019 – P 48 Nota: Graph for illustrative purpose
© ALSTOM 2019. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should 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 or disclosure to third parties, without express written authority, is strictly prohibited.
Driving Performance through Cash Focus Programme

Programme Architecture
⚫ Key drivers
Tender
▪ Tender
- Progress payment & Working Capital optimisation
▪ Inventory
- 20% reduction of testing duration
Sourcing Tools & - 15% Hard Inventory coverage reduction
process
Payment
- Vendors Managed Inventories implementation
▪ Sourcing / supply chain
- Payment terms & Supply chain right in time
People
Gover-
nance ⚫ Transformation enablers
▪ Cash training, culture, & process aligned
▪ Management incentives aligned to FCF
generation & FCF / Net Income
Inventory CapEx

Step up Cash performance as a company wide target


ALSTOM – 24/06/2019 – P 49
© ALSTOM 2019. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should 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 or disclosure to third parties, without express written authority, is strictly prohibited.
Cash Focus: Prioritising Capex

⚫ Transformation capex to end in 2019/20:


CAPEX no new industrial hub creation
€207m
⚫ Capacity increase in Best cost countries
▪ Sri City (India)
▪ Katowice (Poland)

⚫ Capex prioritised to efficiency drivers


▪ Machining capacity
▪ Robot welding
▪ Factory 4.0

FY 2018/19 FY 2019/20 FY 2020/21 FY 2021/22 FY 2022/23


⚫ Decrease from 2 to 2.5% over sales for 2 years to
ca 2% of sales on mid-term
Nota: Specific projects jigs & tools accounted for in Capex under the new IFRS15 standards since 18/19

Prioritised capex geared to growth & efficiency – towards 2% of sales


ALSTOM – 24/06/2019 – P 50 Nota: Graph for illustrative purpose
© ALSTOM 2019. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should 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 or disclosure to third parties, without express written authority, is strictly prohibited.
Cash Focus: Working Capital Performance

FY 2018/19 FY 2019/20 FY 2020/21 FY 2021/22 FY 2022/23


⚫ Stable Down payment on average
⚫ Inventory to ramp up over next 2 years
⚫ Impact of Cash Focus stringent actions
⚫ Mid-term Target: working capital stability
Working capital subject to customary short term
volatility related to down payments & progress
payments

€(1.7)Bn

Working Capital from Backlog Working Capital from New Projects

Working capital fostered by Cash Focus – towards mid term stability


ALSTOM – 24/06/2019 – P 51 Nota: Graph for illustrative purpose
© ALSTOM 2019. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should 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 or disclosure to third parties, without express written authority, is strictly prohibited.
Delivering FCF Performance

⚫ FCF key drivers


▪ EBIT growth driven by volume & margin expansion
▪ Working Capital: inventory impact during 2 years,
and stable mid-term target
▪ Capex stabilising to 2% of sales
▪ Financial cash out benefiting from bonds repayment
▪ Tax cash out supported by tax losses carried
forward

FY 2018/19 FY 2022/23
Subject to customary short term volatility related to
Ca 50% FCF / Net Mid Term target down payments & progress payments phasing
income before GE > 80% FCF/ Net
and discontinued income

Committed to FCF generation – Targeting FCF / Net Income1 ratio above 80% by 2022/23
1Net profit from continuing operations attributable to equity holders of the parent
ALSTOM – 24/06/2019 – P 52 Nota: Free cash flow generation is subject to usual short-term volatility linked to customers down payments and milestone payments from customers
Nota 2: Graph for illustrative purpose
© ALSTOM 2019. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should 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 or disclosure to third parties, without express written authority, is strictly prohibited.
Disciplined M&A Policy

Bolt-on acquisitions
Medium to small
and partnership to Opportunities in all
acquisitions
enter new market areas of our core
contemplated for
segments or business & digital
the coming years
countries

Disciplined M&A to accelerate growth & value creation - EPS Accretive target
ALSTOM – 24/06/2019 – P 53
© ALSTOM 2019. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should 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 or disclosure to third parties, without express written authority, is strictly prohibited.
Capital Allocation Policy & Shareholder return

FCF improvement

Strong Sustainable
Disciplined Balance Shareholder
M&A Sheet return

⚫ Strong net cash position maintained to sustain growth


⚫ Solid investment grade rating maintained
⚫ Sustainable shareholder return: 25 to 35% dividend pay out as of 2019/20

ALSTOM – 24/06/2019 – P 54
© ALSTOM 2019. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should 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 or disclosure to third parties, without express written authority, is strictly prohibited.
We Aim at value creation

GROWTH INNOVATION EFFICIENCY,


by offering in smarter and powered by
greater value greener mobility digital
to our customers solutions

Sustainable shareholder return: 25 to 35% dividend pay-out as of 2019/20

Sales: average annual Disciplined M&A Mid term target:


growth rate of around 5% and investment policy aEBIT margin1 around 9% in 2022/23
over 2019/20 to 2022/23 above 80% Net Income2 to FCF3 by 2022/23

1Including CASCO JV share of net income


2Net profit from continuing operations attributable to equity holders of the parent
3Nota: free cash flow generation is subject to usual short-term volatility linked to customers down payments and milestone payments from customers
ALSTOM – 24/06/2019 – P 55
Under new IFRS standard (IFRS15/IFRS16)
© ALSTOM 2019. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should 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 or disclosure to third parties, without express written authority, is strictly prohibited.
Key Take Aways

⚫ Well positioned in a growing market, supported by an


industry-leading backlog, a global footprint and range of
products / services EPS
⚫ Translating in industry-leading margins and cash flow Growth
generation
⚫ Significant firepower to implement disciplined M&A and
innovation
⚫ Management focus on executing backlog & financial
strategy FCF
Growth
⚫ Sustainable shareholder return policy

ALSTOM – 24/06/2019 – P 56
© ALSTOM 2019. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should 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 or disclosure to third parties, without express written authority, is strictly prohibited.
Efficiency
Thierry BEST – Operations SVP
2019 Capital Markets Day

ALSTOM – 24/06/2019 – P 57
© ALSTOM 2019. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should 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 or disclosure to third parties, without express written authority, is strictly prohibited.
Alstom in Motion 2019-2023: Efficiency

Cash
focus

Sourcing Digital transformation


Footprint Footprint stabilisation
Alstom 2020 globalisation and optimisation Alstom in Motion
(2019 -2023)
(2016 -2019)
Low Labor Cost Best-in-Class Project
Country Extension Execution

⚫ Key targets hit: ⚫ Key targets:


▪ Sourcing Saving at €250m/y ▪ -15% development lead time
▪ 60% of train manufacturing outside Western Europe ▪ 30% of engineering in India
▪ 3Mhrs ENG in India ▪ 60+% sourcing & operations in Best Cost Country
▪ -15% hard inventory coverage
ALSTOM – 24/06/2019 – P 58
© ALSTOM 2019. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should 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 or disclosure to third parties, without express written authority, is strictly prohibited.
Digital Transformation: Engineering

⚫ Fully digitalised development from R&D 4 months development cycle time reduction
to project execution demonstrated on metro projects
⚫ Digital design reviews
with state-of the art 3D technologies

15% reduction
on development
cycletime

ALSTOM – 24/06/2019 – P 59
© ALSTOM 2019. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should 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 or disclosure to third parties, without express written authority, is strictly prohibited.
Digital Transformation: Industrial Operations

Smart Operations 3D printing


Parts 3D printed Connected Workforce ▪ Extensive use for jigs and prototypes
allowing 80% leadtime reduction

Welding robot in Le Creusot


Up to -10% ▪ -20% on bogie frame cost

Digital Supply Chain Manufacturing automation


Manufacturing
(Ubunye – SA) hours

Virtual Training Manufacturing Execution System


welding and painting Digital works instruction and monitoring

Le Creusot - FR welding robot

ALSTOM – 24/06/2019 – P 60
© ALSTOM 2019. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should 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 or disclosure to third parties, without express written authority, is strictly prohibited.
Digitalisation transformation: Alstom Digital Suite

Smart Operations
Alstom Digital Suite GSI Roll Out Planning

⚫ Alstom Digital Suite covers every process: FR 100%


▪ Tendering
APAC 100%
▪ Engineering
▪ Manufacturing Execution System NAM 100%

▪ Quality Execution System


MEA 60%
▪ Service Execution System
▪ Supply Chain 75% digitalised EUROPE 50%

▪ HR processes LAM 30%


▪ Global Single Instance (GSI)
- ERP core model
⚫ Alstom Suite deployed worldwide
⚫ Integrated Data Management
supporting KPIs generation ⚫ 70% company turn over covered by GSI
⚫ Deployment to be completed by 2022

ALSTOM – 24/06/2019 – P 61
© ALSTOM 2019. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should 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 or disclosure to third parties, without express written authority, is strictly prohibited.
Digital Transformation: Use Case TGV2020

Extensive use of digital Parts handling


Manufacturing Execution System
with Cobot
and new technologies Digital worksinstruction and
monitoring

Welding automation
Virtual Training
welding and painting -25%
Manufacturing
hours vs previous
generation
3D printing:
2% of parts ambition E-BoM / 3D

ALSTOM – 24/06/2019 – P 62
© ALSTOM 2019. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should 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 or disclosure to third parties, without express written authority, is strictly prohibited.
Footprint Stabilisation and Optimisation: Rolling Stock Engineering

Engineering
⚫ Site specialisation by product

⚫ Engineering hub in Bangalore


& Saint-Ouen to serve all projects

⚫ Creation of centers of Excellence


for critical subsystems

30% Engineering
hours in India
RS Engineering Sites

Engineering Hubs

Centers of Excellence

ALSTOM – 24/06/2019 – P 63
© ALSTOM 2019. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should 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 or disclosure to third parties, without express written authority, is strictly prohibited.
Footprint Stabilisation & Optimisation: Sourcing

⚫ Standardisation Recent achievements


▪ Design To Cost (DTC) involving suppliers
DTC with supplier for intercity brake architecture
▪ Components catalogue

⚫ Massification
▪ “Alliance” program with selected suppliers
▪ Bundling from new built to aftersales
▪ Supplier base rationalisation

⚫ Best Cost Countries Local Supplier Base: new supplier in Mexico


▪ Increasing Local Supplier Bases for electrical Panel: 20% competitiveness
60%
Sourcing in Best
Cost Countries

ALSTOM – 24/06/2019 – P 64
© ALSTOM 2019. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should 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 or disclosure to third parties, without express written authority, is strictly prohibited.
Footprint Stabilisation & Optimisation: Industrial Operations

Current Status
Upstream hub
Completed set-up
of Regional and Best Cost Final Assembly Unit
Country footprint
New sites
Ramping up

Mid term goal 60% hrs


Sites per region specialised Manufacturing
in upstream operations
allowing automation and
in Best Cost
capacity increase Countries
Network of agile sites
dedicated to final
assembly close
to customer

ALSTOM – 24/06/2019 – P 65
© ALSTOM 2019. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should 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 or disclosure to third parties, without express written authority, is strictly prohibited.
Footprint Stabilisation & Optimisation: Use case Sydney Project

Worldwide organisation serving Sydney Project

Europe ➔ EXPERTISE

Project Set up: India ➔ EXPERTISE & COMPETITIVENESS


20% savings vs
previous
organisation Sydney ➔ CUSTOMER INTIMACY &
MAINTENANCE CONTRACT OVER 15y

ALSTOM – 24/06/2019 – P 66
© ALSTOM 2019. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should 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 or disclosure to third parties, without express written authority, is strictly prohibited.
Best-in-Class Project Execution

500 projects
High level of
collaboration and Enhanced project
From Sound agility between sites management To Lean and Industrialised
Project Execution processes and Tools project management
On-Time-Delivery securing full continuity
improved by 15% from tender to Project
deliveries

Customer
Satisfaction
Further OTD
improvement PRASA AMTRAK
by 5% (Regional - South Africa) (HighSpeed - USA)
▪ 20 trains delivered from Brazil ▪ 2 first trains in progress
in the US as per plan
▪ 7 trains delivered from South-Africa

ALSTOM – 24/06/2019 – P 67
© ALSTOM 2019. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should 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 or disclosure to third parties, without express written authority, is strictly prohibited.
Cash Focus

Key Axis La Rochelle Vendor


managed inventory
⚫ Vendor Managed Inventory → 15% Hard Inventory Decrease
TGV2020 Production line
⚫ Optimise production line balancing optimisation
→ Manufacturing: -25% hours
⚫ Testing duration reduced by 20% -15% Hard and -33% leadtime
Inventory
⚫ Processes Cash focused from Coverage
opportunity to project execution

⚫ Enhanced training program for all


functions

EFFICIENCY AND AGILITY TO GENERATE PROFITABILITY AND CASH


ALSTOM – 24/06/2019 – P 68
© ALSTOM 2019. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should 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 or disclosure to third parties, without express written authority, is strictly prohibited.
Alstom in India
Ling FANG – APAC SVP
2019 Capital Markets Day

ALSTOM – 24/06/2019 – P 69
© ALSTOM 2019. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should 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 or disclosure to third parties, without express written authority, is strictly prohibited.
Alstom in India
An Established Footprint

⚫ India: key contributor to Alstom strategy with high Total 4,040 Employees
standard sites for R&D, engineering and manufacturing

▪ Bangalore:
Alstom’s largest engineering center for Rolling Stock &
Signalling Madhepura
370 Employees
→ 22% of global engineering workload

▪ Coimbatore:
Global traction manufacturing site
→ 18% of global traction manufacturing workload

▪ Sri City:
Metro manufacturing facility, serving customers worldwide RSC & Services
Bangalore Signalling
→ Installed capacity of 20 Cars / month 2,900 Employees
Systems & Infra
Sri City
Coimbatore 400 Employees Components
▪ Madhepura: 370 Employees Locomotives
Loco manufacturing facility dedicated to domestic market

ALSTOM – 24/06/2019 – P 70
© ALSTOM 2019. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should 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 or disclosure to third parties, without express written authority, is strictly prohibited.
Alstom in India
A Proven Track-Record

⚫ Metro RS: LUCKNOW – €150m


a proven Track-Record of Projects executed from India, to address
Domestic & Export Markets: Rolling Stock

▪ Chennai, Kochi, Lucknow, Sydney, successfully commissioned Signaling

▪ Montreal, Mumbai in execution 1st completed “Make in India” project


1st Train delivered in 14 months

⚫ Signalling: HONG KONG SIL – €37m


global involvement in both Urban & Mainline projects:

▪ Urban: Design Lead in 17 projects, both in Domestic & Export Markets Signaling

▪ Mainline: Design Lead in India, Design Support in major Export Projects


1st Driverless (GOA4) Alstom solution
deployed from Bangalore

ALSTOM – 24/06/2019 – P 71
© ALSTOM 2019. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should 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 or disclosure to third parties, without express written authority, is strictly prohibited.
Alstom in India
An Exciting Journey

Manufacturing Workload
in million hours:

SRI & CBE


⚫ World-class manufacturing facilities,
2
for metro RS and components 0.3 0.7

2015 2019 2023

⚫ Established supplier base in India, Evolution of Indian


Content (Metro Projects):

SUPPLIERS
with high focus on quality:
▪ Fostering local presence of our Global Supplier panel 80%
70%
▪ Growing local Indian supplier base with strong technical 30%
support from Alstom 2015 2019 2023

Engineering Workload
in million hours:
⚫ Bangalore as innovation hub & center of excellence:

BANGALORE
▪ Center of Excellence in 7 domains
5
(Software Factory, Sig U200 & U400 activities…) 0.8
3

▪ 200 World Class Experts, 30 patents incubated


2015 2019 2023
ALSTOM – 24/06/2019 – P 72
© ALSTOM 2019. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should 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 or disclosure to third parties, without express written authority, is strictly prohibited.
Alstom in India
India, Unmatched Differentiator for Alstom

Higher Education Enrolment (%)


⚫ A skilled & abundant workforce:
▪ 2nd most populated country in the world with 1.3bn people in 2017
(1.5bn by 2030) 18%
27%
10%
▪ 63% of the population below 35 years
▪ Increased focus on education ; English proficiency 2000 2010 2017

Labor competitiveness

⚫ A competitive workforce:
X4.2
x1.5
▪ Indian competitiveness serving Alstom global profitability -

India China W-Europe


Source: BCG competitiveness survey 2018

⚫ A promising market:
▪ Average GDP growth of 6-7% since 1991 economic liberalisation 11 Cities with Metro
Lines in Operation

▪ Rapid urbanisation & willingness to develop modern Infrastructures 7 additional Cities with
Metro Lines under
construction / in pipeline

ALSTOM – 24/06/2019 – P 73
© ALSTOM 2019. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should 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 or disclosure to third parties, without express written authority, is strictly prohibited.
Questions & Answers
2019 Capital Markets Day

ALSTOM – 24/06/2019 – P 74
© ALSTOM 2019. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should 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 or disclosure to third parties, without express written authority, is strictly prohibited.
Lunch Break
2019 Capital Markets Day

ALSTOM – 24/06/2019 – P 75
© ALSTOM 2019. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should 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 or disclosure to third parties, without express written authority, is strictly prohibited.
Alstom Capital Markets Day
Paris - France
June 24 2019

ALSTOM – 24/06/2019 – P 76
© ALSTOM 2019. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should 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 or disclosure to third parties, without express written authority, is strictly prohibited.
Signalling
Jean-François BEAUDOIN – Digital Mobility SVP
2019 Capital Markets Day

ALSTOM – 24/06/2019 – P 77
© ALSTOM 2019. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should 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 or disclosure to third parties, without express written authority, is strictly prohibited.
Railway Signalling Principles
Overall Architecture

Route control Route control Train protection Train protection IT for rail
Wayside equipment Interlocking Trackside On-board Control Center
Equipment Equipment to manage Equipment Equipment Equipment to monitor train lines,
on the wayside to: priority to prevent collision on the wayside to: in the train to: manage traffic, inform passengers
• Adjust Route • Detect train • Manage speed monitor security functions &Scada:
• Communicate • Compute Movement • Assist driver power supply, etc.
with driver Authority

SAFETY EQUIPMENTS NON SAFETY EQUIPMENT

3 MAIN BENEFITS FOR CUSTOMERS:


Ensure safety, Optimise performances & Improve quality of service
ALSTOM – 24/06/2019 – P 78
© ALSTOM 2019. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should 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 or disclosure to third parties, without express written authority, is strictly prohibited.
Extensive Standalone Solution Portfolio
& Integrated Systems Capability

Train Protection Route Control Security and Control


ETCS, CBTC TRACKSIDE CONTROL CENTRES SECURITY
INTERLOCKING
Trackside & On-Board PRODUCTS (ATS, SCADA) Passenger Informat.
Public address
Telecom

Standalone ATLAS URBALIS


SMARTLOCK SMARTWAY ICONIS PACIS

protection
solutions Train Control Train Control

Cyber
ATLAS for Mainline
Integrated
systems
URBALIS for Urban

⚫ Complete & versatile portfolio covering all signalling sub-systems for Mainline & Urban
⚫ Last generation integrated systems & strong legacy knowhow enabling ability to manage new built & re-signalling

ALSTOM – 24/06/2019 – P 79
© ALSTOM 2019. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should 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 or disclosure to third parties, without express written authority, is strictly prohibited.
Signalling Market Overview
Global volume increase, Stable segment breakdown

Accessible Market Segment Breakdown1 Accessible Market Geography Breakdown1


UNIFE Accessible market UNIFE Accessible market

CAGR
~2.5%

URBAN Mainline Wayside 1.6


34% (ATP Wayside & IxL) 1.2 1.8
◼ MEA
1.6
~€12Bn 46%
Over past ◼ NAM
years
6.5
6,0 ◼ Europe
6%
Freight ◼ APAC
8% 6%
& Mining 3.4
2.8
Mainline Others Mainline Onboard
2016-2018 2021-2023

GLOBAL VOLUME DRIVEN BY MAINLINE, URBAN DRIVEN BY NEW-BUILT IN APAC


ESPECIALLY EUROPE WAYSIDE & NETWORK REVAMPINGS IN EUROPE

1 Excluding Services
ALSTOM – 24/06/2019 – P 80
Source: UNIFE study 2018 & Company data
© ALSTOM 2019. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should 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 or disclosure to third parties, without express written authority, is strictly prohibited.
Alstom Competitive Positioning

Main Signalling Players Revenue (2018)

€1.8-
>€2.5Bn €1.4 Bn ~€1.2Bn €0.8Bn
1.9Bn

ALSTOM
AMBITION

Gain Product
&
Market Leadership

Player #1 Player #2 Alstom Player #4 Player #5

5 GLOBAL SIGNALLING PLAYERS


ALSTOM IS #3

Source: Company data & players’ publication, estimates comparing only signaling and telecom related businesses,
ALSTOM – 24/06/2019 – P 81
Including internal sales
© ALSTOM 2019. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should 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 or disclosure to third parties, without express written authority, is strictly prohibited.
Strong Mainline Perspectives
Driven by Europe & ETCS upswing

Mainline addressable market 2019-2023 (avg/yr) ALSTOM KEY ASSETS


(in €Bn)
7.2 ⚫ Strong track record in all segments…
5 Europe ~70% ▪ #1 on ETCS Onboard
of Global Mainline
market ▪ Interlocking homologated
Europe Global in 12 countries
▪ ETCS wayside deployed
in 10 key countries

⚫ …in major European markets


Interlocking upgrade - Route control
⚫ Sustained trend across Europe On-Board
On-Board & Wayside
ETCS roll-out - Train protection
Wayside
⚫ 10 to 15% coverage as of today
⚫ Major near-term nation-wide deployments: NL, IT, DE
Unique expertise to deliver national roll-out:
Leadership in 1st nation-wide big-bang deployments
(Denmark & Norway)

ALSTOM – 24/06/2019 – P 82 Source: Company data & UNIFE


© ALSTOM 2019. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should 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 or disclosure to third parties, without express written authority, is strictly prohibited.
Steady Urban Market Growth
Buoyant Global Demand

ALSTOM KEY ASSETS


Over
€4Bn Largest world wide installed base
market
per year

New lines construction


⚫ Standalone market driven by 2 countries:
➔ China over 10 lines per year Revamping
➔ India over 20 lines in 15 cities within 5 years New built
System & bundle
⚫ More than 8 turnkeys worldwide by 2023
#1 in China Extensive & global achievements
Network revampings with CASCO URBALIS in every continent of the world
⚫ 10 cities with planned resignalling projects by 2023 #1 in India Proven capability to deliver utmost complex projects
#1 in turnkeys Integrated portfolio including rolling stock & systems

ALSTOM – 24/06/2019 – P 83 Source: Company data & UNIFE


© ALSTOM 2019. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should 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 or disclosure to third parties, without express written authority, is strictly prohibited.
Sustained Freight & Mining Trend
Primarily steered by North America

ALSTOM KEY ASSETS


~€0.3Bn
market ⚫ Leader in North America Market
in NAM Long-term cooperation with all “Class-I” rail road operators
per year

Product Business ⚫ Best in-class products & Customer value innovation


⚫ Private customers, mainly U.S. & Canada ▪ Virtual block based systems Train
+20%
➔ Capacity increase without full resignalling throughput
⚫ Short-cycle delivery framed in 5 to 10 yrs
contracts ▪ Next generation point machines Installation
➔ Down time reduction to keep trains running ÷4
downtime
⚫ Value-for-money driven & Specific operation
▪ IoT & data analytics powered systems
features:
➔ Predictive maintenance for maximum availability
▪ Remote location ➔ Lighter infrastructure
▪ Harsh environment & climatic conditions ⚫ Operational excellence in short cycles management
▪ CAPEX reduction & OPEX optimisation incentive ▪ High-performing supply chain
▪ Quality of service & responsiveness

ALSTOM – 24/06/2019 – P 84 Source: Company data


© ALSTOM 2019. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should 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 or disclosure to third parties, without express written authority, is strictly prohibited.
A Unique Global Footprint
Competitive & Customer-focused

Alstom Signalling Headcount (2019)

7,000 AMONGST 4,500 EUROPE

Employees WHICH Engineers


NORTH AMERICA
CASCO JV
⚫ 2 development hubs: Europe & Bangalore 2,850
EMPLOYEES

⚫ Customer-centric deployment teams across 800


the globe EMPLOYEES
1,750
EMPLOYEES
MIDDLE EAST AFRICA

ASIA PACIFIC
2,000 200
BANGALORE

Of which
engineers EMPLOYEES

LATIN AMERICA
by 2023
1,650
EMPLOYEES

1,250
500 EMPLOYEES
EMPLOYEES

A global footprint
ready to address all markets

ALSTOM – 24/06/2019 – P 85
© ALSTOM 2019. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should 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 or disclosure to third parties, without express written authority, is strictly prohibited.
Innovating towards Competitiveness & Efficiency
Platforming Approach

⚫ 1 single trackside computer & associated object controller family


for all applications in all countries
Convergence Historical Today
Bools

HARDWARE ROUTE CONTROL


CLC
& SOFTWARE SmIO 24 V Bools
PLATFORMING State charts
Bools / SSI SSI

CLC / 2oo3 MooN


Applicative SmIO OC
software SmIO OC 1st DEPLOYMENTS
Principle

Vital computer State charts Urban: Singapore Thomson line & Riyadh

Object controller
2oo3 Mainline: Argentina Roca line – Route control application
Italy Roma & Fortezza line – Train Protection application
SmIO 24V

ECONOMIES OF SCALE (product cost)


ENGINEERING FOCUS ON FEWER TECHNOLOGIES
ALSTOM – 24/06/2019 – P 86
© ALSTOM 2019. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should 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 or disclosure to third parties, without express written authority, is strictly prohibited.
Innovating towards Competitiveness & Efficiency
Digital Processes

⚫ Digital Twins Strengthened simulation capacity


➔ Advanced systems lab tests thanks ➔ Early, quicker & advanced system
tests from any location
to ʺvirtual replicaʺ of all equipments & their functions
⚫ Cloud-based testing Cloud
÷25
DIGITAL vs internal test bench cost
PROCESS ➔ Internet-based platform to boost our capacity
& ease multi-sites deployments: software testing ÷2
from anywhere at anytime Data verification lead-time per
project

Speed up delivery
Reduce # of engineering hours
Reduce capital & operating costs

ALSTOM – 24/06/2019 – P 87
© ALSTOM 2019. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should 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 or disclosure to third parties, without express written authority, is strictly prohibited.
Leading Technology Breakthrough
More than 15 years track-record

MAINLINE URBAN

2003 1st CBTC for heavy metro (Singapore NEL)

1st ERTMS L2 deployment for very high speed 2005


300kph – no conventional system back-up (Italy)

1st ERTMS L2 deployment for high density line 2006


2 minutes headway – 270 trains/day (Switzerland)

2008 1st revamping upgrade to CBTC (China, Beijing L2)

1st ERTMS L2 deployment for cross-border service 2009


(Germany/Belgium)

1st Intercity Automatic Train Operation 2016 1st CBTC over LTE (China, Wuhan L6)
(with Casco, China)
1st ERTMS L2 baseline 3 deployment
incl. Maintenance release 2017
(Germany)

ALSTOM – 24/06/2019 – P 88
© ALSTOM 2019. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should 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 or disclosure to third parties, without express written authority, is strictly prohibited.
Creating customer value through digital technology
Towards “Digital Train”

⚫ Energy efficiency & System performance Capacity Up to Energy Up to


➔ ATO over ETCS L2 pilot (Netherlands) increase 20% saving 40%

⚫ Driving automation
Prototype by 2023
DIGITAL
➔ SNCF Driverless freight train pilot
TRAIN
⚫ Ultra-availability & ultra-capacity Capacity +6 Headway
Trains -12s
➔ URBALIS Fluence: first train-to-train concept increase /hr reduction

Compared to conventional CBTC

⚫ Advanced operational
Smarter trains,
flexibility
lighter infrastructure
⚫ Reduced OPEX

ALSTOM – 24/06/2019 – P 89
© ALSTOM 2019. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should 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 or disclosure to third parties, without express written authority, is strictly prohibited.
Boost our Service Offering to Drive Value

Market evolution CLEAR ROADMAP

⚫ Market Size: €3.9bn Customer


Focus
⚫ Obsolescence as increasing issue ❶ Integration into Global Parts Governance
⚫ Legacy systems with low flexibility ❷ Advanced diagnostics & monitoring solutions
⚫ Increasing cyber vulnerability ❸ Pro-active Obsolescence services / Virtualisation
⚫ Synergies with Infra maintenance
❹ Legacy-specific lifecycle support for configuration,
performance and interface adaptations

Alstom ambition ❺ Cybersecurity support

⚫ Increase share of long-term Maintenance (Level 1-3)


⚫ Supply and repair excellence
⚫ Full lifecycle partner

ALSTOM – 24/06/2019 – P 90
© ALSTOM 2019. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should 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 or disclosure to third parties, without express written authority, is strictly prohibited.
Conclusion
Achieving 2023 Ambition

Strong market
perspectives
GAIN PRODUCT 4 Levers
for Alstom unique
portfolio & knowhow
&
MARKET LEADERSHIP
Innovation
towards
Global reach
Competitiveness
Europe
& Efficiency
Mainline
1 2

3 4
North Create
Customer value
Global America Boost
through
Urban Freight Services
digital
& mining technology

ALSTOM – 24/06/2019 – P 91
© ALSTOM 2019. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should 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 or disclosure to third parties, without express written authority, is strictly prohibited.
Services
Bernd BURGSTAHLER – Services VP
2019 Capital Markets Day

ALSTOM – 24/06/2019 – P 92
© ALSTOM 2019. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should 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 or disclosure to third parties, without express written authority, is strictly prohibited.
Services at Alstom
Already strong market position thanks to a diversified portfolio of solutions

Diverse portfolio Wide coverage

4,000 customers with


Parts
25% coverage of installed fleet

Leader in services
13,000 vehicles, 139 depots among OEMs1
Maintenance
in 41 countries under contract
Service: highest growth
and profitability contribution
10,000 traction systems
Modernisation
and 5,000 vehicles modernised
Long-term contracts
with exceptional high rate on
contract renewals
Signalling Services 40 ongoing Service contracts
and repeat orders

ALSTOM – 24/06/2019 – P 93 1 Except CRRC home market


© ALSTOM 2019. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should 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 or disclosure to third parties, without express written authority, is strictly prohibited.
Long term growth
Orders and sales historically outperforming the market

Solid growth Acc. Market CAGR


KEY RESULTS
11/13 – 18/20
Alstom Services Orders and Sales In €m, CAGR in %
⚫ Alstom orders and sales
+3%
Orders Sales outperforming the market
+16% ▪ Sales CAGR: double the
market growth
▪ Orders CAGR: x5 market
+7% CAGR
2011/12* 2012/13* 2013/14* 2014/15* 2015/16* 2016/17* 2017/18** 2018/19 ▪ Book-to-bill of 1.6 over the last
* Under IAS 11 ; ** Restated for IFRS 9 & 15
5 years
Strong shares of services in Alstom sales and backlog
⚫ Strong service penetration
20 % 32 % in Alstom portfolio
Others Others
▪ Service share constantly
80% Services Services
increasing
2018/19
SALES
2018/19 backlog
▪ 32% Service in total backlog
8.1 40.5 in €Bn (€40.5bn)
in €Bn

ALSTOM – 24/06/2019 – P 94
© ALSTOM 2019. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should 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 or disclosure to third parties, without express written authority, is strictly prohibited.
Value creation through innovation and technology
To achieve this leadership position we’ve developed innovative solutions with strong customer benefits

Integrated Digital solutions… … Creating benefits for customers


Condition monitoring

Improved reliability

Decreased in-service
- 40% breakdowns
(# of SAF on reference solution)
Health Management
Increased availability

- 20% Reduced maintenance time


(# of hours/train in depot)
HealthHub
Fleet Support Centers
Cost savings

- 15% Reduced lifecycle costs


(€ per km)

ALSTOM – 24/06/2019 – P 95 Source: Selected Projects versus Reference Solution


© ALSTOM 2019. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should 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 or disclosure to third parties, without express written authority, is strictly prohibited.
Value creation through customer focus
From "vendor" to "solution provider“ – Example ITALY

2008/09 2018/19
Alstom Service Italy Alstom Service Italy
…to
⚫ Under 100 empl. ⚫ Over 1,000 empl.
"Solution
⚫ Only gardening ⚫ 6 Full-Service Contr.
Provider"
⚫ Parts and Repairs ⚫ Complete Portfolio

High value
services

Building digital
solutions

Growing expertise ⚫ Partner to NTV on fleet maintenance & depot


➔ establish 1st private VHS Operation
From Dedicated service
⚫ Partner to TRENITALIA on maintenance
"Vendor“… organisation
➔ focus on passengers and international expansion
⚫ Partner to RFI on Signalling maintenance
➔ improve LCC and reliability
ALSTOM – 24/06/2019 – P 96
© ALSTOM 2019. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should 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 or disclosure to third parties, without express written authority, is strictly prohibited.
Our ambition: becoming the undisputed leader
Acceleration plan in services to keep on growing profitably

2018/ 2022/
2019 2023

CONTINUING
BUILDING PROFITABLE GROWTH
A LEADERSHIP POSITION IN CORE AND NEW SOLUTIONS
IN SERVICES TO BECOME
THE UNDISPUTED LEADER

Sales and orders growth Increase service contribution to group sales


outperforming the market
Most attractive high-value services
Building innovative and best geographical presence
and customer-centric including as well
solutions Non-Alstom fleets

ALSTOM – 24/06/2019 – P 97
© ALSTOM 2019. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should 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 or disclosure to third parties, without express written authority, is strictly prohibited.
Very strong market potential
Existence of large untapped pools and key long-term drivers enable profitable growth

Large untapped pools… …and strong growth drivers

9.2 16.3 24.6 1.6 25.8 €78Bn Liberalisation


▪ New market entrants
▪ Maintenance outsourcing
23% ▪ Traffic increase
58% 60%
67%
Operators looking for more
efficiency
77% ▪ Performance contracts
▪ TSSSAs
12% Freight
Non-accessible1
42% 40%
Accessible
22% Passenger
Emerging new value-added
services
Maint. Maint. Parts Modern. Maint.
▪ Technology-driven solutions
Signaling Infra Rolling Stock
▪ Data Services
▪ Cybersecurity
Market Segments of global Rail Service Activities

ALSTOM – 24/06/2019 – P 98 1 Non-accessible: e.g. because of political entry barriers (China) or inhouse policy of National Operators
Source: UNIFE 2018
© ALSTOM 2019. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should 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 or disclosure to third parties, without express written authority, is strictly prohibited.
Key attributes
Alstom can leverage some tangible assets to meet its ambition

Large installed Customer Cutting-edge Highly-skilled


base Intimacy technology workforce

Best in class Condition Monitoring


+ 50,000 and Prognostics + 7,000
local
Alstom vehicles presence with Technical experts
in Service Healthhub in services
worldwide

ALSTOM – 24/06/2019 – P 99
© ALSTOM 2019. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should 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 or disclosure to third parties, without express written authority, is strictly prohibited.
Growth strategy
Focused on four high-value opportunities

1 Open new revenue streams in parts

Continued growth Expand our leadership position in maintenance


in core solutions 2 through operational excellence and digital
and new solutions

3 Enhance our position on green modernisation

ALSTOM – 24/06/2019 – P 100


© ALSTOM 2019. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should 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 or disclosure to third parties, without express written authority, is strictly prohibited.
1 Open new revenue streams in parts

Market evolution CLEAR ROADMAP

⚫ Market Size: €19Bn Customer


Focus
❶ Worldwide integrated organisation
⚫ Suppliers extending their offering to service
❷ Smart diagnosis tools and localisation of repairs
⚫ Increasing dynamic on buyers’ side
❸ Strengthening of Alstom IP rights / co-developments
❹ Entering into new revenue streams, like e.g.
commodities, 2nd tier equipment & overhauls
Alstom ambition

⚫ Increase coverage on Alstom and non-Alstom fleets


⚫ Reduce cash in material
⚫ Shorten repair loops (localisation)
⚫ Improve margin (efficiency and pricing policy)

ALSTOM – 24/06/2019 – P 101


© ALSTOM 2019. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should 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 or disclosure to third parties, without express written authority, is strictly prohibited.
2 Expand our leadership position in maintenance

Market evolution CLEAR ROADMAP

⚫ Market Size: €8.6Bn Customer


Focus
❶ Extend Prognostics & Health Management
⚫ Various schemes: bundle with RS, O&M, PPPs
❷ Full coverage with Fleet Support Centers
⚫ System Maintenance growing (full TCO evaluation)
❸ New partnering schemes on Leasing and Operating
⚫ Technology push (remote data access and AI for
analytics & prognostics) ❹ Explore expansion in Freight Maintenance

Alstom ambition

⚫ Preferred Partner for Operators


⚫ Further increase backlog with long-term contracts
⚫ Value selling of HealthHub solutions (Gain sharing)

ALSTOM – 24/06/2019 – P 102


© ALSTOM 2019. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should 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 or disclosure to third parties, without express written authority, is strictly prohibited.
3 Enhance our position on green modernisation

Market evolution CLEAR ROADMAP

⚫ Today’s Market Size: €0.6Bn1, but high potential Customer


Focus
growth ❶ Partnering with Lessors / Roscos
⚫ CO2-free requirements ❷ Green re-tractioning
◼ Smart power module exchange (GTO – IGBT)
⚫ Diesel Multiple Units becoming obsolete
◼ Hydrogen conversions & extensions
⚫ Increased passenger expectations ◼ Battery and Hybrid solutions

Alstom ambition

⚫ Become market reference for “green modernisation”


⚫ Leverage on industry lead on Hydrogen solutions
⚫ Excellence in contract execution

ALSTOM – 24/06/2019 – P 103 1 Excluding Mid-life OVHs and w/o Diesel ban impact
© ALSTOM 2019. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should 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 or disclosure to third parties, without express written authority, is strictly prohibited.
Promising financial outcome
Revenues, earnings and cash increase

ALSTOM – 24/06/2019 – P 104


© ALSTOM 2019. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should 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 or disclosure to third parties, without express written authority, is strictly prohibited.
Key takeaways

⚫ Already in a leadership position


in services among OEMs thanks to
innovation and customer focus
Become the undisputed leader
⚫ Outperforming the market growth
for the past 10 years Strengthen market position
in high-value services
⚫ Growing business with large untapped
pools
Increase Service contribution
to group sales with positive impact on
⚫ Strong assets to be leveraged
group profitability
⚫ Clear roadmap to accelerate growth
and profitability

ALSTOM – 24/06/2019 – P 105


© ALSTOM 2019. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should 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 or disclosure to third parties, without express written authority, is strictly prohibited.
Innovation
Marc GRANGER – CSO
2019 Capital Markets Day

ALSTOM – 24/06/2019 – P 106


© ALSTOM 2019. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should 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 or disclosure to third parties, without express written authority, is strictly prohibited.
A long history of value creation through innovation

First large size


2000's and fully automatic
metro in the world

1980's 2007

First deploying Gate


Turn-Off Thyristor World rail speed
in train systems record – 574.8km/h

Historically, Alstom at the forefront of innovation


and technological progress in rail

ALSTOM – 24/06/2019 – P 107


© ALSTOM 2019. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should 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 or disclosure to third parties, without express written authority, is strictly prohibited.
And more recently new product launches to keep on differentiating

Rolling stock - Coradia iLint New platform - Aptis Signalling - Fluence

Services - Health Hub Systems - SRS Systems - Hesop

ALSTOM – 24/06/2019 – P 108


© ALSTOM 2019. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should 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 or disclosure to third parties, without express written authority, is strictly prohibited.
Renewed platforms with strong efficiency gains

Successful renewal of our platforms…


Tramway Metro Regional High-speed Locomotive

Citadis XO5 Alu Metropolis Coradia Stream Avelia Liberty Prima H4

… with direct business impacts for our customers


TGV du futur1 Metropolis2

Total cost of ownership -20% -20% Variable production cost -26% -20%
Energy consumption Energy consumption

Maintenance cost -30% +20% Passenger capacity Maintenance cost -26% -4% Weight

Leveraging these renewed platforms to expand our worldwide presence


1 Efficiency gains compared to already existing high-speed trains
ALSTOM – 24/06/2019 – P 109 2 KPI for Metropolis Aluminium – Reduction since 2013
© ALSTOM 2019. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should 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 or disclosure to third parties, without express written authority, is strictly prohibited.
And innovative business models and operational solutions

New business model … … and solutions to improve efficiency

INDUSTRY 4.0
The first online marketplace Implementation of cutting edge
dedicated to the railway sector technologies into internal processes

AUTOMATION: HIGHEST-CAPACITY WELDING ROBOT

IDENTIFICATION OF PARTS
SMART GLASSES FOR REMOTE CONTROL

3D PRINTING
ORDERING

MANUFACTURING EXECUTION SYSTEM

DELIVERY
QES: AUTOMATED TRACEABILITY IN PRODUCTION LINE

ALSTOM – 24/06/2019 – P 110


© ALSTOM 2019. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should 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 or disclosure to third parties, without express written authority, is strictly prohibited.
A continued R&D investment to drive innovation

A continued investment in R&D Initiative to foster internal creativity


⚫ Yearly, company wide
innovation contest
4%-5% R&D investments
SALES1 2015/16 – 2018/19 ⚫ 2018: 599 innovations submitted, 57 sites, 27 countries
⚫ Successful track record: HealthHub ™, Hesop ™,
Coradia iLint ™

Leading in inventions and patents… …And prestigious recognitions

⚫ Aptis: Innovation award at the Busworld trade show –


6,500 163 Top 100 Top 20 2017
⚫ Coradia iLint: GreenTech award 2018 in the category
Mobility
Patents Number of Global INPI Palmares ⚫ Mastria: finalist at the Smart City Expo World
patent requests innovators 2019
filed in 2018/19 in 2018/19 Congress

ALSTOM – 24/06/2019 – P 111 1 FY2015/16 and FY2016/17 restated for IFRS 15


© ALSTOM 2019. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should 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 or disclosure to third parties, without express written authority, is strictly prohibited.
New product offering opportunities

Social and business


Mega trends Technological innovations model innovation

Globalisation Sustainability Terrorism Autonomy and Big Data / 3D printing Automation Open platform Crowdfunding Sharing
new power sources Analytics ecosystems economy

Urbanisation Gen Z Cybersecurity Networking & Sensing AI and Outcome Crowdsourcing


Communications Machine Learning economy

Creating "must-have" and new business opportunities

ALSTOM – 24/06/2019 – P 112


© ALSTOM 2019. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should 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 or disclosure to third parties, without express written authority, is strictly prohibited.
2019 – 2023:
Six key innovation priorities in green and smart mobility

Road electromobility
2

GREEN 1 3
Green traction Eco-design and manufacturing
MOBILITY
2019 – 2023

6 key innovation
6 priorities 4
SMART Multimodality
Autonomous train
and Flow management
MOBILITY 5

Data driven rail mobility

ALSTOM – 24/06/2019 – P 113


© ALSTOM 2019. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should 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 or disclosure to third parties, without express written authority, is strictly prohibited.
1
Green traction
A future breakthrough in rail (Opportunities)

A future growth driver… Ambition: Alstom as a key green player

-60% CO2 emissions expected in Top sustainable train provider


transport by 2050 (vs.1990)

DIESEL Increasing number of cities declaring


"Diesel ban"

Large portion of networks are likely to


remain un-electrified (~50k km in COMPLETE GLOBAL REACH
France, UK and Germany)
PORTFOLIO ▪ Fast deployment in
…Already a challenge for Alstom clients ▪ Battery trains early adopter
▪ Hybrid trains countries
RMV will have the world's largest About 120 diesel trainsets in our
fleet of fuel cell trains in passenger
vehicle pool will reach the end of
▪ Hydrogen trains ▪ Expansion in 10
their life time with in the next
transport 30y, meaning we will have to countries by 2025
Knut Ringat, MD replace them
Carmen Schwabl, MD
ALSTOM – 24/06/2019 – P 114
© ALSTOM 2019. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should 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 or disclosure to third parties, without express written authority, is strictly prohibited.
1
Green traction
Comprehensive solutions to help reduce energy consumption

Rolling stock – Silicon Carbide (SiC) Systems – Rail efficiency application

⚫ Up to - 20% lower train energy consumption ⚫ Strategic partnership


with Cosmo Tech
⚫ - 12% lower traction maintenance costs
⚫ A powerful simulation tool to improve the
Key impacts ⚫ +10% better reliability
global efficiency of a rail system
⚫ Noise reduction on transformer and traction
⚫ Optimisation of energy consumption and
case
operational performance
ALSTOM – 24/06/2019 – P 115
© ALSTOM 2019. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should 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 or disclosure to third parties, without express written authority, is strictly prohibited.
2
Road electromobility
Aptis as a first step beyond rail mobility

Low carbon road mobility potential

eBus share of the


European bus market by
x2 Demand for mobility while ÷2 CO2 …and reducing air pollution in cities 50%
2025, ie 7,500 ebuses/yr
90% EU people today live in areas exposed to
by 2050… emissions… in 2025 in Europe
non compliant air quality levels

A disruptive concept APTIS A promising start


⚫ New architecture Commercial successes

⚫ Improved passenger experience Roadshows in more than 30 cities

⚫ More maneuverable 95% availability

Towards autonomous drive implying system approach


ALSTOM – 24/06/2019 – P 116
© ALSTOM 2019. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should 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 or disclosure to third parties, without express written authority, is strictly prohibited.
3
Eco-design and manufacturing
Strengthening our carbon neutrality strategy

ECO-DESIGN ENVIRONMENTAL EXCELLENCE


IN MANUFACTURING
Now
23% solutions in Alstom's portfolio -12.5% energy intensity
are classified as eco-designed reduction since 2014

-17% energy consumption 40% electricity consumed in sites


reduction since 2014 coming from renewable sources

65% of newly developed 80% electricity consumed in sites


solutions eco-designed 2023
coming from renewable sources
- 23% energy consumption
reduction in solutions

ALSTOM – 24/06/2019 – P 117


© ALSTOM 2019. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should 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 or disclosure to third parties, without express written authority, is strictly prohibited.
4
Autonomous train
On track to reach our strong ambition

Participation in Easymile Remote cab pilot


OUR OBJECTIVES

2021

Autonomous shuttle system in service

Autonomous train consortium


2022

Driverless tram in depot


Automatise first train depot

2023

Complete autonomous train prototype


ALSTOM – 24/06/2019 – P 118
© ALSTOM 2019. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should 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 or disclosure to third parties, without express written authority, is strictly prohibited.
5
Data driven rail mobility
Data leads to new range of digital solutions

Alstom Railway Data … Lead to new digital solutions


Now 2025
MAINTENANCE OPERATIONS

+2M train +170 Bn +100 fleets


+50 fleets
data of data in supervised
supervised
per day database (all assets)
Condition monitoring Traffic management
Predictive maintenance Energy management

… And combining all the mobility data & our expertise CITY FLOW SECURITY
Energy
Maintenance data
Asset data
Signaling
Data from Infra Data from Alstom
Alstom services connected
products
Rolling Stock

Environment data Mobility Passenger Data Mobility analytics Automatic threat detection
Data Data
within smart cities Cybersecurity monitoring
from City
and Public Data from Public
Ticketing Data
Transport Journey Data Transport Operators
Authority City data
Operation data (ATS)
WITH ALREADY SOME COMMERCIAL SUCCESSES
CCTV
ALSTOM – 24/06/2019 – P 119
© ALSTOM 2019. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should 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 or disclosure to third parties, without express written authority, is strictly prohibited.
5
Data driven rail mobility
Innovative technology to build new solutions

Advanced technologies

Artificial Computer IoT security & Container


IoT sensor Big Data
Intelligence Vision connectivity Automation

Mobility Data Platform Framework | Cloud & On Premise

Mobility Data Train and


Data Science and Reliable IoT wayside
Operating Analytics for Railway Cyber
System for Mobility Security

MOBILITY SOLUTIONS
OPERATIONS MAINTENANCE SECURITY CITY FLOW

ALSTOM – 24/06/2019 – P 120


© ALSTOM 2019. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should 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 or disclosure to third parties, without express written authority, is strictly prohibited.
6
Multimodality & Flow management
Mastria

⚫ Coordinates all public transport modes from rail & road


⚫ Offers alternative mobility solutions rapidly in case of incidents
⚫ Optimises operations with mobility analytics

ON-GOING PILOTS IN PARIS AREA


AND IN TUSCANY

Mastria offers a next generation solution for multimodal city


transportation (video)
ALSTOM – 24/06/2019 – P 121
© ALSTOM 2019. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should 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 or disclosure to third parties, without express written authority, is strictly prohibited.
6
Multimodality & Flow management
Exploring new emerging markets

SHARED MOBILITY ⚫ Complex transport systems,


as currently available in rail,
will emerge in road
⚫ These new systems will first
Driving appear in public
Driverless PT Autonomous car
automation
transportation

Intelligent Connected infrastructure Multimodal connected ⚫ City orchestration will emerge


infrastructure for PT infrastructure to improve mobility services
and reduce congestion
Supervision &
regulation
Alstom assets today
Public transport orchestration
Emerging markets
Multimodal orchestration
Prospective markets

ALSTOM – 24/06/2019 – P 122


Out-of-scope
© ALSTOM 2019. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should 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 or disclosure to third parties, without express written authority, is strictly prohibited.
2019 – 2023:
Strategic enablers to support Alstom innovation priorities

6 innovation priorities 3 enablers


Road electromobility
A
2

Green traction Data Innovation Factory


1 3
Eco-design and
manufacturing
GREEN
B
MOBILITY
Open and agile innovation
SMART and partnerships
MOBILITY 6 4
Autonomous train
C
5
Multimodality
and Flow New business incubator
management
Data driven rail mobility
ALSTOM – 24/06/2019 – P 123
© ALSTOM 2019. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should 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 or disclosure to third parties, without express written authority, is strictly prohibited.
B Open and agile innovation and partnerships

Green mobility Smart mobility

⚫ Partnership signed in 2017 ⚫ Partnership signed in 2017

⚫ Focus on technologies for electric and ⚫ Focus on cybersecurity of transport systems


hybrid systems

⚫ Investment in 2017
⚫ Joint contract in Germany on May 2019
⚫ Focus on electrical autonomous systems

Start-ups Research institutes Universities

Exploring
new opportunities
and attract talents

BY 2023: STRENGTHEN AND MULTIPLY OUR PARTNERSHIPS AND OPEN INNOVATION INITIATIVES

ALSTOM – 24/06/2019 – P 124


© ALSTOM 2019. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should 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 or disclosure to third parties, without express written authority, is strictly prohibited.
Key takeaways

R&D and innovation embedded in A new open and agile


Alstom's organisation to sustain
innovation mindset enabled
our leadership and build a by key capabilities: business
new one in green and smart incubator, data innovation factory,
mobility partnerships & ecosystem

ALSTOM – 24/06/2019 – P 125


© ALSTOM 2019. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should 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 or disclosure to third parties, without express written authority, is strictly prohibited.
Questions & Answers
2019 Capital Markets Day

ALSTOM – 24/06/2019 – P 126


© ALSTOM 2019. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should 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 or disclosure to third parties, without express written authority, is strictly prohibited.
Closing remarks
Henri POUPART-LAFARGE – Chairman & CEO
2019 Capital Markets Day

ALSTOM – 24/06/2019 – P 127


© ALSTOM 2019. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should 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 or disclosure to third parties, without express written authority, is strictly prohibited.
Closing remarks

On track to be THE LEADING GLOBAL INNOVATIVE PLAYER in our markets


for a sustainable and smart mobility
to create greater value for passengers, clients and shareholders

Leveraging the Growing and stable market Clear objectives, supported


achievements of our 2020 with opportunities by a sound strategy
plan
⚫ Robust macro-economic drivers ⚫ Continue to outperform market
⚫ Key player in all geographies growth – #1 or #2 in our markets
and businesses ⚫ Positive rail market outlook - geographies and lines of business
smart and green mobility
⚫ Innovative, recognised, momentum ⚫ Lead in smart and green solutions
and diverse product portfolio
⚫ New trends and technologies ⚫ Industry leading margins
⚫ Competitive offering creating new opportunities and cash generation
and strong execution

ALSTOM – 24/06/2019 – P 128


© ALSTOM 2019. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should 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 or disclosure to third parties, without express written authority, is strictly prohibited.
Appendix 1 - Non-GAAP financial indicators definitions

This section presents financial indicators used by the Group that are not defined by accounting standard setters.
⚫ Orders received
A new order is recognised as an order received only when the contract creates enforceable obligations between the Group and its customer.
When this condition is met, the order is recognised at the contract value. If the contract is denominated in a currency other than the functional currency of the reporting unit, the Group requires the immediate elimination of currency
exposure through the use of forward currency sales. Orders are then measured using the spot rate at inception of hedging instruments.

⚫ Order backlog
Order backlog represents sales not yet recognised on orders already received. Order backlog at the end of a financial year is computed as follows:
• order backlog at the beginning of the year;
• plus new orders received during the year;
• less cancellations of orders recorded during the year;
• less sales recognised during the year.
Order backlog corresponds to the transaction price allocated to the remaining performance obligations, as per IFRS15 standard quantitative and qualitative disclosures requirements.

⚫ Book-to-Bill
The book-to-bill ratio is the ratio of orders received to the amount of sales traded for a specific period.

⚫ Adjusted EBIT
When Alstom’s new organisation was implemented in 2015, adjusted EBIT (“aEBIT”) became the Key Performance Indicator to present the level of recurring operational performance. This indicator is also aligned with market
practice and comparable to direct competitors.
Going forward (1st application for Half Year 2019/2020 publication), Alstom has opted for the inclusion of the share in net income of the equity-accounted investments into the aEBIT when these are considered as part of the
operating activities of the Group (because there are significant operational flows and/or common project execution with these entities), namely the CASCO Joint Venture. The company believes that bringing visibility over a key
contributor to the Alstom signalling strategy will provide a fairer and more accurate picture of the overall commercial & operational performance of the Group. This change will also enable more comparability with what similar
market players define as being part of their main non-GAAP ‘profit’ aggregate disclosure.

aEBIT corresponds to Earning Before Interests and Tax adjusted for the following elements:
- net restructuring expenses (including rationalization costs);
- tangibles and intangibles impairment;
- capital gains or loss/revaluation on investments disposals or controls changes of an entity;
- any other non-recurring items, such as some costs incurred to realize business combinations and amortisation of an asset exclusively valued in the context of business combination as well as litigation costs that have arisen
outside the ordinary course of business;
- and including the share in net income of the operational equity-accounted investments.

A non-recurring item is a “one-off” exceptional item that is not supposed to occur again in following years and that is significant.
Adjusted EBIT margin corresponds to Adjusted EBIT in percentage of sales.

ALSTOM – 24/06/2019 – P 130


© ALSTOM 2019. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should 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 or disclosure to third parties, without express written authority, is strictly prohibited.
Appendix 1 - Non-GAAP financial indicators definitions

⚫ Free cash flow


Free cash flow is defined as net cash provided by operating activities less capital expenditures including capitalised development costs, net of proceeds from disposals of tangible and intangible assets. In particular, free cash flow
does not include the proceeds from disposals of activity.
The most directly comparable financial measure to free cash flow calculated and presented in accordance with IFRS is net cash provided by operating activities.
Alstom uses the free cash flow both for internal analysis purposes as well as for external communication as the Group believes it provides accurate insight regarding the actual amount of cash generated or used by operations.

⚫ Net cash/(debt)
The net cash/(debt) is defined as cash and cash equivalents, other current financial assets and non-current financial assets directly associated to liabilities included in financial debt, less financial debt.

⚫ Pay-out ratio
The pay-out ratio is calculated by dividing the amount of the overall dividend with the "Net profit from continuing operations attributable to equity holders of the parent” as presented in the consolidated income statement.

ALSTOM – 24/06/2019 – P 131


© ALSTOM 2019. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should 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 or disclosure to third parties, without express written authority, is strictly prohibited.