(AOF) – Alstom, a global company in sustainable and intelligent mobility, has contributed to the commercial commissioning of the two Mostaganem tramway lines in Algeria. On this occasion, Mr. Kamel Beldjoud, Minister of Transport, accompanied by the Wali of Mostaganem Aissa Boulahia and the local authorities of the Mostaganem region, inaugurated the tram line. The Algiers Metro Company (EMA) had awarded the contract for the Mostaganem tramway project to Alstom and Cosider.
Alstom was responsible for supplying the entire system, telecommunications and signaling systems, substations, ticketing, depot equipment as well as the Citadis tram sets which were supplied by its Joint-Venture Cital .
For its part, the Cosider consortium (Public Works/Art Structures) carried out the civil engineering, the railway system, the catenary and the traffic light signaling.
The Mostaganem tramway will allow more than 10,000 passengers to travel each day, with a route extending over 14 km and serving 24 stations. It offers two lines that connect the different areas of the city, facilitating access to the different university campuses for students and allowing quick access to the city center and the different train stations.
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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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