#1Alstom Presentation March 2017 ALSTOM Designing fluidity 16°C#2Disclaimer 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 - February 2016 - P2 ALSTOM 2016. 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#3A dynamic market with solid long-term drivers URBANISATION €31bn Average annual growth between 13/15 - 19/21 GOVERNMENTAL FUNDING SUSTAINABLE DEVELOPMENT Market size in 2016/18 €51bn €18bn €10bn AMERICAS ASIA PACIFIC EUROPE MIDDLE EAST AFRICA + 2.3% + 5.4 % + 3.0 % + 3.2 % ECONOMIC GROWTH Solid growth drivers Market worth more than €100 bn Market driven by urban & integrated systems Dynamic growth in Asia Pacific Note: Annual average- Accessible market Source: UNIFE Market Study 2016 ALSTOM - February 2016 - P 3 ALSTOM 2016. 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#4Activities: a complete range of solutions TRAINS J\ SERVICES * ■Tram, metro, suburban/regional, high speed, very high speed, locomotive ■Components: traction, bogie, motor 46% Maintenance Modernisation ■Spare parts, repairs & overhaul ■Support services SIGNALLING 21% Signalling solutions portfolio for: main lines, urban, control and security ■Sold as products or solutions 19% 1 4022 SYSTEMS ■Integrated solutions Infrastructure Note: % of H1 2016/17 sales ALSTOM - February 2016 - P4 © ALSTOM 2016. 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. 14% ALSTOM#5H1 2016/17 key figures In € million H1 2015/16 H1 2016/17 % change reported % change organic Backlog 27,719 33,570 21% 22% Orders 3,897 6,212 59% 66% Sales 3,303 3,570 8% 7% Adjusted EBIT 167 200 20% Adjusted EBIT margin 5.1% 5.6% Net income - Group share (57) 128 Free cash flow (1,336) 333 ALSTOM - February 2016 - P 5 ALSTOM 2016. 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#6An ambitious strategy for 2020 OUR VALUES TEAM, TRUST & ACTION ETHICS & COMPLIANCE 1 CUSTOMER-FOCUSED ORGANISATION OUR ORGANIC 2 COMPLETE RANGE OF SOLUTIONS GROWTH VISION OUR STRATEGY BOOSTED 3 VALUE CREATION THROUGH INNOVATION 4 OPERATIONAL AND ENVIRONMENTAL EXCELLENCE 5 DIVERSE AND ENTREPRENEURIAL PEOPLE BY SELECTIVE ACQUISITIONS PREFERRED PARTNER FOR TRANSPORT SOLUTIONS OUR BRAND POSITIONING DESIGNING FLUIDITY ALSTOM - February 2016 - P 6 ALSTOM 2016. 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#7Customer-focused organisation and multi-local presence ■ 31,000 employees working on 105 sites in 60 countries serving 200 customers • Regions: close to customers, in charge of execution • Operational functions: and platforms AMERICAS global cohesion, processes 4,850 • Support functions: finance, legal, HR global efficiency EMPLOYEES Being a reference player in each region ALSTOM - February 2016 - P 7 ALSTOM 2016. 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. EUROPE 21,250 EMPLOYEES MIDDLE EAST AFRICA ASIA PACIFIC 1.700 , EMPLOYEES 3,200 EMPLOYEES ALSTOM#8A complete range of solutions COMPONENTS Bogie for Citadis Coradia Nordic in Sweden INDIVIDUAL SOLUTION Sydney metro & signalling Tramway integrated system for Lusail ROUSE HOLL 0:0 M M FULLY BUNDLED OFFER INTEGRATED SYSTEM BETWEEN 2 SOLUTIONS INCREASING DEMAND FOR INTEGRATION Systems, Signalling and Services to represent around 60% of sales by 2020 ALSTOM - February 2016 - P8 ALSTOM 2016. 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#9Staying a step ahead 1 Boost technical innovation to increase differentiation 2 Invest in competitiveness- oriented technology 3 Optimise customers' total cost of ownership Citadis X05 TRAMWAY INFRASTRUCTURE INTEGRATION Attractis tramway system Coradia maintenance An R&D strategy focused on differentiation and competitiveness Sustain R&D expenses and reach 30% of total orders coming from newly developed products by 2020 ALSTOM - February 2016 - P9 ALSTOM 2016. 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#10Operational excellence ■ Competitive offering Sourcing • Global footprint ■ Excellence in delivery Global business transformation underway Strong project management skills • Flawless execution ■ A digitalisation plan to create an agile and effective information system ■ Cash focus programme www Production of Citadis Spirit for Ottawa, Hornell (USA) To remain competitive while supporting margin improvement ALSTOM - February 2016 - P 10 ALSTOM 2016. 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#112020 objectives confirmed 2020 OBJECTIVES ■ Sales expected to grow at 5% per year organically ■ Adjusted EBIT margin to reach around 7% ■ c. 100% conversion from net income to free cash flow ALSTOM - February 2016 - P 11 ALSTOM 2016. 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#12www.alstom.com ALSTOM Designing fluidity 16°C#13Appendices 1 Alstom H1 2016/17 2 Alstom 9M 2016/17 3 Alstom 2020 strategy 4 Alstom 2020 objectives ALSTOM - February 2016 - P 13 ALSTOM 2016. 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#14Customer-focused organisation Continued strong commercial performance Orders (in billion) 3.9 6.2 1.3 +59% 0.6 2.6 1.0 0.8 2.1 1.4 H1 2015/16 H1 2016/17 ■ Europe ■ Americas ■ MEA ■Asia Pacific 3.9 6.2 1.6 +59% 0.4 0.8 1.3 0.9 0.5 3.0 1.6 H1 2015/16 H1 2016/17 ■Trains ■ Systems ■ Signalling ■Services ■Strong order intake of €6.2bn Book to bill above 1.7 New record-breaking backlog of €33.6bn % change reported ALSTOM ALSTOM - February 2016 - P 14 ALSTOM 2016. 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.#15Complete range of solutions Organic sales growth of 7% Sales (in billion) 3.6 3.3 0.7 0.8 0.7 0.5 +8% 0.5 0.4 1.6 1.6 H1 2015/16 H1 2016/17 ■ Trains ■ Systems ■ Signalling ■ Services 3.6 3.3 0.3 0.4 0.5 0.5 +8% 0.6 0.5 2.0 2.1 H1 2015/16 H1 2016/17 ■ Europe ■ Americas ■ MEA ■ Asia Pacific ■ 5% growth in standalone Trains Suburban, regional and high-speed trains in Europe (France, Italy, Sweden, etc.) On-going execution of PRASA project Tramway deliveries in Algeria ■ 20% growth in Systems • Progress on metro system in Saudi Arabia Tramway systems in Brazil and Qatar Infrastructure in UK ■■ 33% growth in Signalling • Deliveries in Canada Contribution of GE signalling ■ Slight decrease in Services Adverse forex impact on UK contract % change reported ALSTOM - February 2016 - P 15 ALSTOM 2016. 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#16Operational excellence Continued strong operational performance Adjusted EBIT (in € million) As % of sales 167 5.1% +20% 200 5.6% H1 2015/16 H1 2016/17 ■ Volume increase ■ Portfolio mix improvement with accretive acquisitions ■ On-going initiatives for operational excellence ALSTOM - February 2016 - P 16 ALSTOM 2016. 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. % change reported ALSTOM#17Income statement In € million Sales Adjusted EBIT Adjusted EBIT margin Restructuring charges Other charges EBIT Financial result Tax result Share in net income of equity investees Minority interests from continued op. Net income - Discontinued operations ** Net income - Group share H1 2015/16* 3,303 H1 2016/17 3,570 167 5.1% 200 5.6% (14) (29) (32) 124 168 (86) (71) (2) (32) 13 47 (8) (8) (98) 24 (57) 128 * Includes mainly the reclassification of separation costs of €(23) million from other charges to net income - discontinued operations Group share ** ALSTOM - February 2016 - P 17 ALSTOM 2016. 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#18Free cash flow In € million H1 2015/16 H1 2016/17 Adjusted EBIT 167 200 Depreciation & amortisation 74 69 Restructuring cash-out (24) (18) • High contribution of operating profit Positive evolution of working capital Several large down-payments Capex (50) (43) • Volatility on short period R&D capitalisation (28) (21) Change in working capital (164) 188 Financial cash-out (83) (11) Phasing of both capex and legacy cash-out Tax cash-out (162) (40) Other* (1,066) 9 Free cash flow (1,336) 333 *includes free cash flow from discontinued operations ALSTOM - February 2016 - P 18 ALSTOM 2016. 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#19Capex developments ■ Control of recurring capex ■ Slow ramp up of transformation capex Capex* (in € million) 50 43 South Africa: beginning of site construction H1 2015/16 * excluding capitalised development costs H1 2016/17 New sites to meet customers' growing demand for a local presence c. €300m transformation capex expected over next 3 years ALSTOM - February 2016 - P 19 ALSTOM 2016. 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#20Liquidity and gross debt In € billion In € million 453 2.4 Liquidity position 2.7 Mar-16 Sept-16 *Undrawn credit line ■Gross cash Gross debt 371 272 283 596 Interest rate Feb 2017 4.125% Oct 2017 2.25% Oct 2018 3.625% July 2019 3% March 2020 4.5% Liquidity ■ €2.3bn cash and cash equivalents as of 30 September 2016 ■ €400m revolving credit facility; fully undrawn ■Flexibility with Energy JVs put options Gross debt €2bn outstanding bonds as of 30 September 2016 ■Next maturity in February 2017 (c.€0.5bn) ALSTOM - February 2016 - P 20 ALSTOM 2016. 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#21Net cash & equity In € million (203) Net cash/(debt) 333 (43) (33) 54 54 In € million 3,328 Equity 128 (85) 44 3,415 Mar-16 FCF Acq. & disposals* Forex & other Sept-16 Mar-16 Net income Pensions Forex & other Sept-16 * includes GE related separation impact (e.g. IS&T) ALSTOM - February 2016 - P 21 ALSTOM 2016. 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#22Appendices 1 Alstom H1 2016/17 2 Alstom 9M 2016/17 3 Alstom 2020 strategy 4 Alstom 2020 objectives ALSTOM - February 2016 - P 22 ALSTOM 2016. 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#239M 2016/17 Orders 6,255 9M 2015/16 Europe ALSTOM - February 2016 - P 23 Orders by region (in € million) 7,235 6,255 9M 2016/17 Orders by products (in € million) 9M 2015/16 7,235 9M 2016/17 Americas ■ MEA ■Asia Pacific ■ Trains ■ Systems ■ Signalling ALSTOM 2016. 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 ALSTOM#249M 2016/17 Sales 4,916 9M 2015/16 Europe ALSTOM - February 2016 - P 24 Sales by region (in € million) 5,225 + 5% % organic growth 9M 2016/17 4,916 Sales by product (in € million) 5,225 9M 2015/16 + 5% 9M 2016/17 Americas ■ MEA ■Asia Pacific ■ Trains ■ Systems ■ Signalling ALSTOM 2016. 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 ALSTOM#25Appendices 1 Alstom H1 2016/17 2 Alstom 9M 2016/17 3 Alstom 2020 strategy 4 Alstom 2020 objectives ALSTOM - February 2016 - P 25 ALSTOM 2016. 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#26Railway traffic evolution Worldwide traffic evolution from 2007 to 20151 Urban Mainline Freight Growth vs LY Average growth (2007-2015) +1.8% +5.3% Urban traffic pass.km +1.6% +4.0% Traffic pass.km Traffic ton.km 2007 2008 2009 2010 2011 2012 2013 2014 2015 -10.9% -0.2% Passenger traffic for urban & mainline keeps growing, but freight is strongly decreasing 1 Urban traffic figures are for Top 30 cities worldwide; mainline & freight traffic figures are for all major national operators worldwide. ALSTOM - February 2016 - P 26 ALSTOM 2016. 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#27Market forecast Average annual accessible market (€bn) 13/15 - 19/21 13/15 - 19/21 CAGR CAGR 101 110 122 +3.2% 101 110 122 +3.2% 11 +3.2% 10 +4.6% 10 Middle-East Africa 9 22 22 +5.4% 9 11 +4.1% Urban trains 18 Asia Pacific 16 Regional trains 884 10 9 7 15 +12.1% Mainline trains 34 13 16 31 Americas 30 30 +2.3% Freight trains -0.6% Services 38 32 36 32 38 +3.1% Europe 51 55 46 55 2013-2015 2016-2018 2019-2021 +3.0% 25 Infrastructure 21 23 25 +3.2% Signalling 11 12 14 +2.9% 2013-2015 2016-2018 2019-2021 Significant growth in all geographical regions confirmed by latest market study Source: UNIFE Market Study 2016 ALSTOM - February 2016 - P 27 ALSTOM 2016. 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#28Share of systems within the urban market System market within urban market Annual average Share of urban market addressed through systems 2017-2019 Rest of urban NAM market MEA LAM 43% Metro system 30% Europe Tram system APAC 2013-2015 UNIFE (past market) 2017-2019 UNIFE forecast Market addressed through systems Rest of the urban market Systems continue to grow up to ~40% of the urban market, especially in MEA, LAM and APAC Source: Alstom estimation, UNIFE Market Study 2016 ALSTOM - February 2016 - P 28 ALSTOM 2016. 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#29An ambitious strategy for 2020 OUR VALUES TEAM, TRUST & ACTION ETHICS & COMPLIANCE 1 CUSTOMER-FOCUSED ORGANISATION OUR ORGANIC 2 COMPLETE RANGE OF SOLUTIONS GROWTH VISION OUR STRATEGY BOOSTED 3 VALUE CREATION THROUGH INNOVATION 4 OPERATIONAL AND ENVIRONMENTAL EXCELLENCE 5 DIVERSE AND ENTREPRENEURIAL PEOPLE BY SELECTIVE ACQUISITIONS PREFERRED PARTNER FOR TRANSPORT SOLUTIONS OUR BRAND POSITIONING DESIGNING FLUIDITY ALSTOM - February 2016 - P 29 ALSTOM 2016. 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#301 Customer-focused organisation and multi-local presence ■ 31,000 employees working on 105 sites in 60 countries serving 200 customers • Regions: close to customers, in charge of execution • Operational functions: and platforms AMERICAS global cohesion, processes 4,850 • Support functions: finance, legal, HR global efficiency EMPLOYEES Being a reference player in each region ALSTOM - February 2016 - P 30 ALSTOM 2016. 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. EUROPE 21,250 EMPLOYEES MIDDLE EAST AFRICA ASIA PACIFIC 1.700 , EMPLOYEES 3,200 EMPLOYEES ALSTOM#311 Strategic acquisitions and partnerships 2010 Russia - TMH (trains) ■ Kazakhstan - EKZ (locos) 2014 Algeria - CITAL (trams) 2011 - France Metrolab (R&D) 2015 Morocco - Cabliance (cabling) 2012 - France NTL (trams) 2013 South Africa - Gibela (suburban trains) Kazakhstan - KEP (signalling) 3020 002 Kazakhstan - EKZ (locos) - 25% additional shares UK - SSL (signalling)* India Madhepura (locos) ■ Sweden - Motala Train AB (services)* Russia - TMH (trains) - 8% additional shares Worldwide - General Electric signalling* ■France - Speed Innov (trains) 2016 South Africa Ubunye (modernisation) ■Morocco - Cabliance (cabling)* Solid, efficient and well-established network of partners ALSTOM - February 2016 - P 31 ALSTOM 2016. 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. * Acquisitions ALSTOM#321 Case study: Prasa project ■ Scope • Design, manufacture and supply 600 trains. for South Africa fleet renewal • Parts supply & technical support for 19 years Gibela Joint Venture led by Alstom (61%), local factory, 65% average local content ■ Status • • First train delivered from Brazil end 2015 Local factory construction started in March 2016 • First train to be manufactured in South Africa end 2017/18 Largest contract ever in Alstom history (c. €4bn), well on its way ALSTOM - February 2016 - P 32 ALSTOM 2016. 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#331 Case study: eLoco project in India ■ Scope • 800 electric locomotives Associated maintenance: 13 years for the first 250 locos and 4 years for the following 250 €200m investment incl. set up of manufacturing plant and two depots • JV with Indian Railways (74%/26%) Status . • Contract signed in November 2015 with Indian Railways Booking in Q4 2015/16 . Deliveries expected between 2018 and 2029 €3.2bn contract for 800 electric locomotives and maintenance ALSTOM - February 2016 - P 33 ALSTOM 2016. 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#341 Case study: NTV in Italy ■ Options of previous contract signed in October 2015 ■ 4 Pendolino trains and related maintenance services Extension of maintenance services for NTV's entire fleet from 20 to 30 years ■Delivery scheduled end 2017 and ready to enter into service in 2018 EE NTV's renewed confidence in Alstom expertise ALSTOM - February 2016 - P 34 ALSTOM 2016. 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. Italo ALSTOM#352 A complete range of solutions COMPONENTS Bogie for Citadis Coradia Nordic in Sweden INDIVIDUAL SOLUTION Sydney metro & signalling Tramway integrated system for Lusail ROUSE HOLL 0:0 M M FULLY BUNDLED OFFER INTEGRATED SYSTEM BETWEEN 2 SOLUTIONS INCREASING DEMAND FOR INTEGRATION Systems, Signalling and Services to represent around 60% of sales by 2020 ALSTOM - February 2016 - P 35 ALSTOM 2016. 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#362 Case study: a fully integrated metro system in Dubai for Expo 2020 link ■ Alstom, leader of ExpoLink consortium ■50 Metropolis trainsets and electromechanical works New route extends 15 km and serves Expo 2020 ■Delivery of the system before 2020 Dubai: Expo 2020 metro station ALSTOM - February 2016 - P 36 A fully integrated metro project for Alstom, with a non-negotiable deadline ALSTOM 2016. 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#372. Case study: Dubai tramway system ■ Scope • Fully integrated tramway solution incl. trains, signalling, infrastructure and 13 years maintenance contract ■ Status: already a success • Availability and punctuality above 99.5% • Robust operation under heavy rain and sand storm • Up to 30,000 passengers / day at peak A fully integrated world premiere ALSTOM - February 2016 - P 37 ALSTOM 2016. 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 Customer: Roads and Transport Authority Phase 1 (done): 11 km and 11 stops ALSTOM#382 Case study: Riyadh lines 4,5 & 6 metro system ■ Scope • • 69 driverless Metropolis trains Signalling system Infrastructure: third rail and track, using Appitrack and power supply incl. Hesop substations ■ Status • Train production started in Katowice in Nov. 2015 Customer: Arriyadh Development Authority Contract: 2013 - 2018 Lines length: 65.1 km # of stations: 25 First driverless metro in Saudi Arabia and biggest contract ever for an urban system project (€1.2bn) ALSTOM - February 2016 - P 38 ALSTOM 2016. 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#393 Staying a step ahead 1 Boost technical innovation to increase differentiation 2 Invest in competitiveness- oriented technology 3 Optimise customers' total cost of ownership Citadis X05 TRAMWAY INFRASTRUCTURE INTEGRATION Attractis tramway system Coradia maintenance An R&D strategy focused on differentiation and competitiveness Sustain R&D expenses and reach 30% of total orders coming from newly developed products by 2020 ALSTOM - February 2016 - P 39 ALSTOM 2016. 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#403 Main innovative programmes TRAINS J SERVICES X SIGNALLING 09 SYSTEMS Complete renewal of the ranges: ■Citadis Spirit, Citadis X05. ■New range of standard metro HealthHub ■Predictive maintenance ■ Atlas, main lines ERTMS ■Urbalis, CBTC ATO, geolocalisation, 4G ■ Axonis metro system ■ Attractis tramway system Avelia range ■ Coradia iLint ■ Silicon carbide (SiC) ■Hesop, reversible power-supply substation CETADES XUS COMPUTING SUBSYSTEM LON 370 MP CHANNEL A HSCU REDMAN PSU MP CHANNEL B HSCU CHANNEL C REDMAN PSU MP SP1301 SP1201 8998 SP: 301 201 CODE ALSTOM - February 2016 - P 40 © ALSTOM 2016. 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#413 Sustained level of R&D R&D* (in million) 71 2.1% H1 2015/16 As % of sales 85 2.4% H1 2016/17 * R&D including externally-funded programmes, excluding capitalisation and amortisation Main R&D programmes ■Renewal of mainline and urban train ranges Signalling programmes Predictive maintenance ALSTOM - February 2016 - P 41 ALSTOM 2016. 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#423 Case study: High speed train contract with Amtrak - US ■ 28 Avelia Liberty trains, new generation of Alstom very high speed trains ■ Optimised maintenance costs ■Improved energy management Enhanced comfort for passengers ■ A €1.8bn contract: deliveries expected to start in 2021 F0001 ALSTOM - February 2016 - P 42 A new generation of train with high level of innovation for both passenger and operator ALSTOM 2016. 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. Avelia Liberty for Amtrak ALSTOM#433 Case study: Nice tramway project €91m project Awarded in October 2015 Scope ■■19 Citadis X05 tramway ■ SRS, Static Recharge System ■Citadis Ecopack 000 30 Latest generation of tramway for the city of Nice ALSTOM - February 2016 - P 43 ALSTOM 2016. 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#444 Operational excellence ■Competitive offering Sourcing • Global footprint ■ Excellence in delivery Global business transformation underway Strong project management skills • Flawless execution ■ A digitalisation plan to create an agile and effective information system ■ Cash focus programme www Production of Citadis Spirit for Ottawa, Hornell (USA) To remain competitive while supporting margin improvement ALSTOM - February 2016 - P 44 ALSTOM 2016. 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#454 Competitive offering: Sourcing contribution (1/2) Integration Body shell Gangway Doors Seat Bogies Auxiliary supply Battery box Brake resistor Traction Air supply MAKE BUY HVAC Interior linings, windows Pantograph ■ 60% of Alstom products cost are purchased • c.€4bn external supplies Electrical harness ■ Partnership • 90 global partners (50% of the spend), able to follow Alstom worldwide ⚫ 750 suppliers covering 80% of the spend • Sourcing, a key cost reduction driver ALSTOM - February 2016 - P 45 ALSTOM 2016. 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#464 Competitive offering: Sourcing contribution (2/2) ■ Volume • Bundle approach: different products under one negotiation • Total cost of ownership: improve full product life cycle cost under one negotiation and protect our margin on after sales ■ Design to cost Savings per lever 20% Low cost countries ■Design to cost 50% ■ Volume . Catalogue approach: on sub-systems: HVAC, doors, etc. 30% ■Low cost countries • Steady increase of sourcing volume in India ALSTOM - February 2016 - P 46 Objective to increase sourcing savings to €250m /year (cost to complete) ALSTOM 2016. 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#474 Competitive offering: Global footprint ■ Worldwide trains manufacturing FY 14/15 Rest of the world 33% 2020 Objective Western Europe Rest of the world 60% Western Europe ■ Bangalore (India) engineering center ramp up →Signalling Trains Rapid growth of global manufacturing and engineering capabilities Adaptation to workload in Europe ALSTOM - February 2016 - P 47 ALSTOM 2016. 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 Objective ALSTOM#484 Competitive offering: update as end Sept. 2016 Sourcing ■ Alstom Alliance • • • Premium partnerships with strategic suppliers to support geographical expansion, share innovations and mutualise development of key components Quality, cost-effective and reliable solutions Total of 34 members with 10 new ones during Innotrans fair Global footprint India ramp-up 2,300 people as end of September 2016 ■ Global sourcing Increase of India sourcing volume Above one third purchased in low cost countries CBS-02 NASH 022 ALSTOM - February 2016 - P 48 ALSTOM 2016. 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 •#494 Optimised train product ranges: a platform approach ■ Optimised costs ■Improved modularity and design ■ Better energy efficiency Metropolis Urban RAIL Citadis 6059 A1 MVI 6059 A1 ALSTOM - February 2016 - P 49 ALSTOM 2016. 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. Coradia Mainline Avelia ALSTOM ALSTOM#504 First successes for our new generation of Coradia trains ச, TRENITALIA GRUPPO FERROVIE DELLO STATO 2 79 Intercity trains for the Netherlands operator ■ €0.8 billion ■ First deliveries by 2020 150 regional trains for Trenitalia with first order of 47 trains ■ €0.9 billion for the frame contract ■ First deliveries by early 2019 Optimised layout, weight, modularity and cost ALSTOM - February 2016 - P 50 ALSTOM 2016. 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#514 Excellence in delivery ■New tools deployment started • • • Alstom integrated information system massive roll- out launched (10 countries deployed in 15/16) APSYS, lean manufacturing system extending to Engineering and Project Management New electrical organisation (NEO) in main sites in Europe Manufacturing execution system APSYS Manufacturing Excellence for Alstom Transport ALSTOM - February 2016 - P 51 ALSTOM 2016. 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 electrical organisation (NEO) ALSTOM#524 Excellence in delivery: Project management Key practices ■ Anticipation before tendering ■ Stringent Go/No Go decision Rigorous transfer from tender to project (tender transfer meeting) ■ Management involvement (winning roadmap, monthly project review, global project review) Results 1. Intense activity . • 20 tenders per month • 3 months average per tender • ⚫ c.450 major contracts in execution 2. Hit rate: [30-40] % Strong project management skills from tender to execution ALSTOM - February 2016 - P 52 ALSTOM 2016. 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#534 Cash focus programme Main levers ■ Terms and conditions Level of down payment now stabilised ■ Design to cash actions such as: Planning of supplies • Manufacturing lead-time • Inventory management, ... Key practices • Worldwide training (e.g. sales community) • Upfront review of cash information, from the anticipation phase • Regular meetings during project execution Example Time to market of new standard metro: 12 months (actual 15 months) Strong management actions in place to optimise working capital ALSTOM - February 2016 - P 53 ALSTOM 2016. 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#544 A responsible company ■ Ecodesigned & environmental-friendly solutions Alstom sites showcase its commitment to safeguarding the environment A culture based on health & safety MEMBER OF Dow Jones Sustainability Indices In Collaboration with RobecoSAM Since 2011, Alstom has been included in the Dow Jones Sustainability Indices (DJSI). State-of-the-art spray booths, Katowice site (Poland) Villeurbanne site (France) ALSTOM - February 2016 - P 54 ALSTOM 2016. 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 ALSTOM#554 Environmental excellence ■ Improve our environmental footprint • Continue our efforts on energy saving, waste and CO2 • ISO 14001 for all operational units with more than 200 people ■Improve energy consumption for solution Better sizing and energy consumption measurement ■ Safety at work O • • ZERO DEVIATIONS IN HIGH RISK ACTIVITIES Alstom Zero Deviation Plan Zero Severe Accidents on High Risk Activities ALSTOM 2020 ENERGY INTENSITY REDUCTION BY 10% ALSTOM 2020 ENERGY CONSUMPTION REDUCTION BY 20% ALSTOM 2020 IFR1 AT 1 BY 2020 ALSTOM - February 2016 - P 55 ALSTOM 2016. 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#56A culture based on diversity & entrepreneurship ALSTOM ALST AL ■ Diversity in terms of gender, generation, nationality, social and cultural background targeted: → 25% women in management or professional role by 2020 ■ Training plans, development programmes... ALSTOM - February 2016 - P 56 © ALSTOM 2016. 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#57The Alstom Foundation to support local communities Support and financing for projects proposed by Alstom employees aimed at improving living conditions of communities local to where Alstom has a presence whilst protecting the environment. ALSTOM FOUNDATION ALSTOM - February 2016 - P 57 ALSTOM 2016. 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#58Sharing a common culture of ethics and values ETH THE CERTIFICATION COMMITTEE OF ETHIC Intelligence ALSTOM ANTI-CORRUPTION COMPLIANCE CERTIFICATION Ch ■ Ethics & Compliance (E&C) • Certified procedures • ⚫ A Code of Ethics and an Integrity Programme applicable to each and every employee around the world Integr Trust Action Team Qualty Safety Fair congue Service weer ■Team, Trust and Action ALSTOM - February 2016 - P 58 ALSTOM 2016. 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#59Organic growth boosted by selective acquisitions Small to mid-size acquisitions ■ Support international expansion and strengthen leading positions 2015/16 acquisitions GE Signalling • SSL, Signalling in UK Motala Train AB, Services in Sweden OM ALSTOM S SO ALSTOM - February 2016 - P 59 ALSTOM 2016. 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#60Appendices 1 Alstom H1 2016/17 2 Alstom 9M 2016/17 3 Alstom 2020 strategy 4 Alstom 2020 objectives ALSTOM - February 2016 - P 60 ALSTOM 2016. 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#61Sales evolution Sales (in €bn) 6.9 6.2 5% annual organic growth FY 14/15 FY 15/16 FY 16/17 FY 17/18 FY 18/19 FY 19/20 Current backlog of c.€30bn* providing strong visibility on future sales *at 31 March 2016 ALSTOM - February 2016 - P 61 ALSTOM 2016. 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#62Progressive margin improvement Adjusted EBIT margin (in % of sales) 5.0% Adjusted EBIT Volume/Price Portfolio mix H1 2015/16 Excellence Footprint Sourcing c. 7% Operational Adjusted EBIT excellence FY 2019/20 Volume/Price ■ Cost absorption driven by solid top-line growth Partly offset by price dynamics and competitive environment Portfolio mix Growth towards more profitable activities ■ Services, signalling, systems to represent c. 60% of sales in 2020 Operational excellence ■ Sourcing savings ■ Global footprint ■ Excellence in delivery with solid project execution Adjusted EBIT margin to reach around 7% in 2020 ALSTOM - February 2016 - P 62 ALSTOM 2016. 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#63Cash conversion objective 2016/17 2017/18 2018/19 2019/20 ■ Short-term impact of legacy cash-out and transformation capex Working capital stabilised ■■Possible volatility on short periods ■ Key focus with strong management actions in place ■Core free cash flow Legacy cash-out Transformation capex c. 100% FCF/net income conversion in 2020 ALSTOM - February 2016 - P 63 ALSTOM 2016. 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#64www.alstom.com ALSTOM Designing fluidity 16°C