(AOF) – Alstom announces the launch of a new employee shareholding operation, We Share Alstom 2023. This operation, offered in 21 countries, aims to involve around 90% of employees in the group’s strategic objectives and development. The offer is deployed to employees in France, Germany, Australia, Austria, Belgium, Brazil, Canada, Spain, United States, Hungary, India, Italy, Kazakhstan, Mexico, Poland, Czech Republic, Romania, United Kingdom, Sweden, Switzerland and Thailand.
In France, it is also open to retirees who have kept assets in Alstom’s France Group Savings Plan (PEG).
The offer is carried out within the framework of the PEG France and the Plan d’Epargne Groupe International (PEGI) of Alstom, by capital increase implemented on the basis of the 19th resolution of the general meeting of shareholders of July 12 2022. A capital increase reserved for a category of beneficiaries will also be carried out as part of this operation on the basis of the 20th resolution of said meeting.
All of the capital increases will relate in total to a maximum of 2% of the share capital, ie 7,475,675 shares. The shares will carry current dividend rights and will be fully assimilated to the existing shares as soon as they are issued.
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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%.
Great prospects with green hydrogen for the electricity sector
The French hydrogen plan of 7 billion euros, which has been increased to 9 billion, aims to develop an industrial sector for the production of low-carbon hydrogen. Gimélec, the group of companies in the digital electronics sector in France, has identified strong benefits for manufacturers of electrical equipment. For its members, the economic benefits are estimated at 10 billion euros by 2030, then an additional 20 billion for the period 2030 to 2040, mainly for the sector of manufacturers of digital electronic equipment (from transformers to control systems ). This will lead to massive recruitment, in particular in the areas where hydrogen development efforts will be concentrated, in the Mediterranean and in the Seine Valley.