Alstom Presentation

March 2017
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 – February 2016 – P 2

© 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.
A dynamic market with solid long-term drivers

URBANISATION GOVERNMENTAL FUNDING SUSTAINABLE DEVELOPMENT ECONOMIC GROWTH

Market size in 2016/18

 Solid growth drivers
€51bn  Market worth more than €100 bn

€31bn  Market driven by urban

€18bn & integrated systems
€10bn
 Dynamic growth in
Asia Pacific

Average annual growth AMERICAS ASIA EUROPE MIDDLE EAST

between 13/15 – 19/21 PACIFIC AFRICA

+ 2.3 % + 5.4 % + 3.0 % + 3.2 %

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.
Activities: a complete range of solutions

 Tram, metro, suburban/regional, high speed, very high speed, locomotive

 Components: traction, bogie, motor 46%

 Maintenance
 Modernisation
 Spare parts, repairs & overhaul 21%
 Support services

 Signalling solutions portfolio for: main lines, urban, control and security
 Sold as products or solutions 19%

 Integrated solutions
 Infrastructure 14%
Note: % of H1 2016/17 sales
ALSTOM – February 2016 – P 4
© 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.
H1 2016/17 key figures

In € million
% change % change
H1 2015/16 H1 2016/17 reported 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.
An ambitious strategy for 2020

OUR VALUES
TEAM, TRUST & ACTION
ETHICS & COMPLIANCE

1 CUSTOMER-FOCUSED ORGANISATION
ORGANIC
OUR
2 COMPLETE RANGE OF SOLUTIONS GROWTH VISION
OUR BOOSTED PREFERRED
3 VALUE CREATION THROUGH INNOVATION PARTNER
STRATEGY BY
FOR
SELECTIVE
4 OPERATIONAL AND ENVIRONMENTAL EXCELLENCE TRANSPORT
ACQUISITIONS SOLUTIONS
5 DIVERSE AND ENTREPRENEURIAL PEOPLE

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.
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
EUROPE

• Operational functions: AMERICAS 21,250

EMPLOYEES
global cohesion, processes
and platforms 4,850 MIDDLE EAST ASIA PACIFIC
EMPLOYEES AFRICA

3,200
• Support functions: finance, legal, HR 1,700
EMPLOYEES
EMPLOYEES

global efficiency

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.
A complete range of solutions

Tramway integrated system

for Lusail
Sydney metro
& signalling
Coradia Nordic
Bogie in Sweden
for Citadis

FULLY
BUNDLED OFFER INTEGRATED SYSTEM
BETWEEN
INDIVIDUAL 2 SOLUTIONS
SOLUTION
COMPONENTS

Systems, Signalling and Services to represent around 60% of sales by 2020

ALSTOM – February 2016 – P 8
© 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.
Staying a step ahead

1 2 3
Boost technical Invest in Optimise
innovation to increase competitiveness- customers’ total cost
differentiation oriented technology of ownership

Citadis X05 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 9
© 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.
Operational excellence

 Competitive offering
• Sourcing
• Global footprint

 Excellence in delivery
• Global business transformation underway
• Strong project management skills
• Flawless execution
Production of Citadis Spirit for Ottawa, Hornell (USA)

 A digitalisation plan to create an agile and

effective information system
 Cash focus programme

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.
2020 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.
www.alstom.com
Appendices

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.
Customer-focused organisation
Continued strong commercial performance

Orders (in € billion)

3.9 6.2  Strong order intake of €6.2bn
0.3
1.3
+59%  Book to bill above 1.7
0.6 2.6
1.0  New record-breaking backlog of €33.6bn
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 % change reported

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.
Complete range of solutions
Organic sales growth of 7%

Sales (in € billion) 3.6  5% growth in standalone Trains

3.3
0.7 • Suburban, regional and high-speed trains in Europe
0.8
0.7 (France, Italy, Sweden, etc.)
0.5
0.4 +8% 0.5
• On-going execution of PRASA project
1.6 1.6 • Tramway deliveries in Algeria

H1 2015/16 H1 2016/17  20% growth in Systems

• Progress on metro system in Saudi Arabia
Trains Systems Signalling Services
• Tramway systems in Brazil and Qatar
• Infrastructure in UK
3.6  33% growth in Signalling
3.3
0.3 • Deliveries in Canada
0.4 0.5
0.5 +8%
0.5 0.6 • Contribution of GE signalling

2.0 2.1  Slight decrease in Services

• Adverse forex impact on UK contract
H1 2015/16 H1 2016/17
Europe Americas MEA Asia Pacific
% 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.
Operational excellence
Continued strong operational performance

Adjusted EBIT (in € million)

 Volume increase

 Portfolio mix improvement with accretive

As % of sales
acquisitions
 On-going initiatives for operational
+20%
excellence
200
167

5.6%
5.1%

H1 2015/16 H1 2016/17
% change reported

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.
Income statement

In € million H1 2015/16* H1 2016/17

Sales 3,303 3,570

Adjusted EBIT 167 200

Adjusted EBIT margin 5.1% 5.6%
Restructuring charges (14) -
Other charges (29) (32)
EBIT 124 168

Financial result (86) (71)

Tax result (2) (32)
Share in net income of equity investees 13 47
Minority interests from continued op. (8) (8)
Net income – Discontinued operations ** (98) 24

Net income – Group share (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.
Free cash flow

In € million H1 2015/16 H1 2016/17  High contribution of operating

profit
Adjusted EBIT 167 200
 Positive evolution of working
Depreciation & amortisation 74 69 capital
Restructuring cash-out (24) (18) • Several large down-payments
Capex (50) (43) • Volatility on short period
R&D capitalisation (28) (21)
(164) 188  Phasing of both capex and
Change in working capital
(83) (11) legacy cash-out
Financial 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.
 Capex developments

 Control of recurring capex Capex* (in € million)

 Slow ramp up of transformation capex

50
43

H1 2015/16 H1 2016/17
* excluding capitalised development costs

South Africa: beginning of site construction

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.
 Liquidity and gross debt

In € billion Liquidity position

Liquidity
2.7
2.4  €2.3bn cash and cash equivalents as of 30 September
2016
 €400m revolving credit facility ; fully undrawn

 Flexibility with Energy JVs put options

Mar-16 Sept-16
Undrawn credit line Gross cash

In € million Gross debt Gross debt

596
 €2bn outstanding bonds as of 30 September 2016
453
371  Next maturity in February 2017 (c.€0.5bn)
272 283

Feb 2017 Oct 2017 Oct 2018 July 2019 March 2020
Interest rate 4.125% 2.25% 3.625% 3% 4.5%

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.
Net cash & equity

In € million Net cash/(debt) In € million Equity

(43)
128 (85)
333 (33) 44 3,415
54
3,328

(203)

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.
Appendices

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.
9M 2016/17 Orders

Orders by region Orders by products

(in € million) (in € million)

7,235 7,235
6,255 6,255

9M 2015/16 9M 2016/17 9M 2015/16 9M 2016/17

Europe Americas MEA Asia Pacific Trains Systems Signalling Services

ALSTOM – February 2016 – P 23

© 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.
9M 2016/17 Sales

Sales by region Sales by product

(in € million) (in € million)

5,225 5,225
4,916 4,916

+5% +5%

% organic growth

9M 2015/16 9M 2016/17 9M 2015/16 9M 2016/17

Europe Americas MEA Asia Pacific Trains Systems Signalling Services

ALSTOM – February 2016 – P 24

© 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.
Appendices

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.
Railway traffic evolution

Worldwide traffic evolution from 2007 to 20151 Growth

Average
growth
vs LY (2007–2015)
Urban
+1.8% +5.3%
Mainline
Freight
+1.6% +4.0%

-10.9% -0.2%

Passenger traffic for urban & mainline keeps growing, but freight is strongly decreasing
1Urban 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.
Market 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 9 11
Middle-East Africa 22 +5.4% +4.1%
9 Urban trains 8 9
18 10
Asia Pacific 16 Regional trains 8 7
4 15 +12.1%
Mainline trains 13
34 16
31 Freight trains -0.6%
Americas 30 +2.3%
38
36 +3.1%
Services 32

Europe 51 55 +3.0%
46 23 25
Infrastructure 21 +3.2%
Signalling 11 12 14 +2.9%
2013-2015 2016-2018 2019-2021 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.
Share of systems within the urban market

System market within urban market Share of urban market addressed through systems
Annual average 2017-2019

Rest of NAM
urban
market
MEA

LAM
43%
Metro
system Europe
30%
Tram
system
APAC
2013-2015 2017-2019
UNIFE UNIFE
(past market) 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.
An ambitious strategy for 2020

OUR VALUES
TEAM, TRUST & ACTION
ETHICS & COMPLIANCE

1 CUSTOMER-FOCUSED ORGANISATION
ORGANIC
OUR
2 COMPLETE RANGE OF SOLUTIONS GROWTH VISION
OUR BOOSTED PREFERRED
3 VALUE CREATION THROUGH INNOVATION PARTNER
STRATEGY BY
FOR
SELECTIVE
4 OPERATIONAL AND ENVIRONMENTAL EXCELLENCE TRANSPORT
ACQUISITIONS SOLUTIONS
5 DIVERSE AND ENTREPRENEURIAL PEOPLE

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.
 1 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
EUROPE

• Operational functions: AMERICAS 21,250

EMPLOYEES
global cohesion, processes
and platforms 4,850 MIDDLE EAST ASIA PACIFIC
EMPLOYEES AFRICA

3,200
• Support functions: finance, legal, HR 1,700
EMPLOYEES
EMPLOYEES

global efficiency

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.
 1 Strategic acquisitions and partnerships

 Russia - TMH (trains) 2014  Kazakhstan - EKZ (locos) - 25 % additional shares

2010  Kazakhstan - EKZ (locos)

 UK - SSL (signalling)*
 Algeria - CITAL (trams)  India - Madhepura (locos)
2011  France - Metrolab (R&D) 2015  Sweden – Motala Train AB (services)*
 Morocco – Cabliance (cabling)  Russia - TMH (trains) - 8 % additional shares
 Worldwide - General Electric signalling*
 France - SpeedInnov (trains)

2012  France - NTL (trams)

 South Africa - Ubunye (modernisation)
2016  Morocco – Cabliance (cabling)*

 South Africa - Gibela (suburban trains)

2013  Kazakhstan - KEP (signalling)
* Acquisitions

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.
 1 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.
 1 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.
 1 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

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.
 2 A complete range of solutions

Tramway integrated system

for Lusail
Sydney metro
& signalling
Coradia Nordic
Bogie in Sweden
for Citadis

FULLY
BUNDLED OFFER INTEGRATED SYSTEM
BETWEEN
INDIVIDUAL 2 SOLUTIONS
SOLUTION
COMPONENTS

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.
 2 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

A fully integrated metro project for Alstom, with a non-negotiable deadline

ALSTOM – February 2016 – P 36
© 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.
 2 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

Customer: Roads and Transport Authority

Phase 1 (done): 11 km and 11 stops

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.
 2 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.
 3 Staying a step ahead

1 2 3
Boost technical Invest in Optimise
innovation to increase competitiveness- customers’ total cost
differentiation oriented technology of ownership

Citadis X05 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.
 3 Main innovative programmes

Complete renewal of the ranges:  Avelia range

 Citadis Spirit, Citadis X05  Coradia iLint
 New range of standard metro  Silicon carbide (SiC)

 HealthHub
 Predictive maintenance

 Atlas, main lines ERTMS

 Urbalis, CBTC
 ATO, geolocalisation, 4G

 Axonis metro system

 Attractis tramway system
 Hesop, reversible power-supply substation

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.
 3 Sustained level of R&D

R&D* (in € million) Main R&D programmes

 Renewal of mainline and urban train ranges
As % of sales
 Signalling programmes
 Predictive maintenance

85
71

2.1% 2.4%

H1 2015/16 H1 2016/17
* R&D including externally-funded programmes, excluding capitalisation and amortisation

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.
 3 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 Avelia Liberty for Amtrak

A new generation of train with high level of innovation for both passenger and operator
ALSTOM – February 2016 – P 42
© 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.
 3 Case study: Nice tramway project

€91m project

Awarded in October 2015

Scope
 19 Citadis X05 tramway
 SRS, Static Recharge System
 Citadis Ecopack

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.
 4 Operational excellence

 Competitive offering
• Sourcing
• Global footprint

 Excellence in delivery
• Global business transformation underway
• Strong project management skills
• Flawless execution
Production of Citadis Spirit for Ottawa, Hornell (USA)

 A digitalisation plan to create an agile and

effective information system
 Cash focus programme

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.
 4 Competitive offering: Sourcing contribution (1/2)

Integration
Body shell
 60% of Alstom products cost are
Gangway HVAC purchased
Interior linings,
windows
• c.€4bn external supplies
Pantograph

Doors
Electrical
Seat harness

Bogies  Partnership
Auxiliary supply
• 90 global partners (50% of the spend), able to
Battery box
follow Alstom worldwide
Brake resistor
• 750 suppliers covering 80% of the spend
Traction

Air supply

MAKE BUY

• 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.
 4 Competitive offering: Sourcing contribution (2/2)

Savings per lever

 Volume
• Bundle approach: different products under one negotiation
• Total cost of ownership: improve full product life cycle cost under Low cost
one negotiation and protect our margin on after sales 20% countries
Design to cost
 Design to cost 50%
Volume
• Catalogue approach: on sub-systems: HVAC, doors, etc.
30%

 Low cost countries

• Steady increase of sourcing volume in India

• Objective to increase sourcing savings to €250m /year (cost to complete)

ALSTOM – February 2016 – P 46
© 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.
 4 Competitive offering: Global footprint

 Worldwide trains manufacturing  Bangalore (India) engineering center

ramp up

FY 14/15 2020 Objective Signalling

2020 Objective
Trains

Rest
of the world
33% Rest Western
Western of the world Europe
Europe 60%

• 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.
 4 Competitive offering: update as end Sept. 2016

Sourcing Global footprint

 Alstom Alliance  India ramp-up
• Premium partnerships with strategic suppliers to • 2,300 people as end of September 2016
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 sourcing
• Increase of India sourcing volume
• Above one third purchased in low cost countries

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.
 4 Optimised train product ranges: a platform approach

 Optimised costs

 Improved modularity and design

 Better energy efficiency

Urban Mainline

Metropolis Citadis Coradia Avelia

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.
 4 First successes for our new generation of Coradia trains

79 Intercity trains for the Netherlands 150 regional trains for Trenitalia with first
operator order of 47 trains

 €0.8 billion  €0.9 billion for the frame contract

 First deliveries by 2020  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.
 4 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 Manufacturing execution system

• New electrical organisation (NEO) in main sites in

Europe

New electrical organisation (NEO)

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.
 4 Excellence in delivery: Project management

Key practices Results

 Anticipation before tendering 1. Intense activity

• 20 tenders per month

 Stringent Go / No Go decision
• 3 months average per tender
 Rigorous transfer from tender to project
(tender transfer meeting) • c.450 major contracts in execution

 Management involvement (winning roadmap, 2. Hit rate: [30-40] %

monthly project review, global project review)

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.
 4 Cash focus programme

Main levers Key practices

• Worldwide training (e.g. sales community)
 Terms and conditions
• Upfront review of cash information,
• Level of down payment now stabilised from the anticipation phase

• Regular meetings during project execution

 Design to cash actions such as:

• Planning of supplies
Example
• Manufacturing lead-time
• Time to market of new standard metro: 12 months
• Inventory management, … (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.
 4 A responsible company

 Ecodesigned & environmental-friendly solutions

 Alstom sites showcase its commitment Since 2011, Alstom has been included in the
Dow Jones Sustainability Indices (DJSI).
to safeguarding the environment
 A culture based on health & safety

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.
 4 Environmental excellence

 Improve our environmental footprint

• Continue our efforts on energy saving,
waste and CO2 ENERGY INTENSITY REDUCTION BY 10%
• ISO 14001 for all operational units
with more than 200 people

 Improve energy consumption for solution

• Better sizing and energy
consumption measurement ENERGY CONSUMPTION REDUCTION BY 20%

 Safety at work
• Alstom Zero Deviation Plan
• Zero Severe Accidents on High Risk Activities
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.
A culture based on diversity & entrepreneurship

 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.
The 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 – 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.
Sharing a common culture of ethics and values

 Ethics & Compliance (E&C)

• Certified procedures
• A Code of Ethics and an Integrity Programme applicable to each and every
employee around the world

 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.
Organic 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

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.
Appendices

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.
Sales evolution

Sales (in €bn) 5% annual

organic growth
6.9
6.2

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.
Progressive margin improvement

Adjusted EBIT margin (in % of sales) Volume/Price

 Cost absorption driven by solid top-line growth
c. 7%
 Partly offset by price dynamics and competitive
Excellence
Footprint
environment
Sourcing
5.0% Portfolio mix
 Growth towards more profitable activities
 Services, signalling, systems to represent c. 60%
of sales in 2020
Operational excellence
 Sourcing savings
 Global footprint
Adjusted EBIT Volume/Price Portfolio mix Operational Adjusted EBIT  Excellence in delivery with solid project execution
H1 2015/16 excellence FY 2019/20

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.
Cash 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.
www.alstom.com