(AOF) – Alstom, a global smart and sustainable mobility company, has successfully delivered the extension of the PHX Sky Train automated people mover (APM) system at Phoenix Sky Harbor International Airport (in Arizona), ensuring connections between the airport, the light rail system and the rental car centre. This expansion of the PHX Sky Train system not only increases capacity, but also provides multi-modal, easy-access connections between the city of Phoenix and the airport.
This extension also improves the overall experience of travelers taking a national or international flight at the airport.
As part of its contract for the 4 kilometer extension, Alstom delivered a complete turnkey solution including electromechanical and guidance equipment, expansion of the current maintenance and storage center, maintenance recovery vehicle , the modernization of the wayside signaling system and the upgrading of vehicles already in service.
In addition, 24 new Innovia APM 200 cars allow the trains to grow from 2 to 3 cars, allowing more passengers to be carried more comfortably and quickly in and around airport facilities.
Alstom delivered the extension of the transport system, while maintaining current operations of the PHX Sky Train for the duration of construction and testing, with no impact on system availability or reliability.
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Key points
– World leader in rail transport, from trams and metros to TGVs, reinforced by the acquisition, in 2021, of Bombardier Transport;
– Activities of €15.5 billion at the end of the 2021-2022 financial year carried out 62% in Europe, 17% in the Americas, 14% in Asia-Pacific and 7% in the rest of the world;
– Offer covering all railway construction trades: rolling stock for 56% of sales, signaling for 15%, systems for 7% and services (maintenance, remote control of vehicles, networks, passengers, etc.) for 22%;
– Business model based on:
– the complementarity of geographical areas between Alstom -France, Italy, Spain, India, South-East Asia, North Africa and Brazil- and Bombardier Transport -United Kingdom, Germany, Scandinavia, China and North America,
– the creation of value ranging from the design and construction of a railway system to maintenance;
– Open capital, 17.48% owned by the Caisse de dépôt et placement du Québec, Henri Poupart-Lafarge, Chief Executive Officer, chairing the 13-member Board of Directors;
– Solid balance sheet: €9 billion in shareholders’ equity and €4.6 billion in cash compared with $2.3 billion in net debt.
Challenges
– Alstom in Motion 2024/25 growth strategy with confirmed objectives:
– annual increase of +5% in revenues, operating margin of 8 to 10% and industrial investments at 2% of revenues,
– conversion of 80% of the result into free cash flow,
– distribution to shareholders between 25 and 35%;
– Innovation strategy supported by 3.4% R&D and 9,400 patents with 3 axes:
– full range of green traction, ownership of fuel cell technology and, soon, fully connected transport fleets,
– innovation ecosystems: industrial partnerships (Engie, DeutscheBann, etc.), with start-ups via the Aster fund, with suppliers via the Alliance program, participation in 30 European programs, including Shift2Rail, and, internally, intrapreneurship with I move you,
– roll-out of the digital suite to 100% of the group;
– Environmental strategy for the decarbonization of the activity:
– integrated into the innovation strategy – eco-design of the main solutions from 2025, and aimed at strengthening natural capital – use of renewable electricity, waste recovery, recycling,
– aiming for a 10% reduction in energy intensity and a 25% reduction in CO2 emissions by 2025 (vs 2019);
– ecocircularity: waste recovered at 98%,
– launch of the 1st green guarantee facility;
– Control of portfolio rotation – disposals constrained by the merger with Bombardier and strengthening of holdings, particularly in Cylus, in Kazakhstan and in South Africa;
– Good visibility, with order intake of 10.1 billion at the end of September, ie more than 1 year of revenue.
Challenges
– After the loss incurred in 2021-22 due to provisions related to the acquisition of Bombardier Transportation, execution of the synergies of the merger with Bombardier -€200m in 2022/23, €400m per year in 2024/25 and 475- €500m thereafter – but positive impact on 2023 profit;
– Negative impact of inflation on the 2022/23 margin (80 basis points at the end of September) but low exposure to the shortage of electronic components;
– After an 8.1% increase in revenues and an 18.5% increase in operating margin in the first half ended September 30, 2022-23 outlook raised from an operating margin of 5.1 to 5, 3% and free cash flow between €100 and €300 million;
– After a dividend of €0.25 for 2021-2022, a desire for a distribution of between 25 and 35%.
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