Annual performance in line with that outlook

In line with that outlook, Alstom announced the results for 2021/2022, which ended at the end of March. Train manufacturers are confirming their medium-term goals. However, the group fell into the red. Adjusted net loss was € 173 million and adjusted net income for the previous year was € 301 million. Adjusted net income reached 268 million before the 20% stake in Russia’s TMH was depreciated.

Alstom’s total adjusted operating margin increased 19% to € 767 million, an operating margin of 5% compared to 7.3% in the previous year.

Alstom’s total revenue was $ 15.5 billion, an increase of 11% on a similar New Alstom proforma basis. As of September 30, 2021, sales related to bad contracts, defined as sales of projects with a negative completion margin, reached € 2.6 billion.

As of March 31, 2022, the purchase order reached € 81 billion. The contribution to sales over the next three years should be between € 35 billion and € 37 billion. The order-to-sale ratio was 1.25.

During the fiscal year, the group was pleased with the significant commercial success in multiple geographic areas and product lines.

Orders amounted to € 19.3 billion, an increase of 33% on a similar New Alstom proforma basis. At the same time last year, Alstom recorded an order of € 9.1 billion in the unfavorable market conditions characterized by the impact of Covid-19.

Free cash flow in the second half of 2021/22 reached 469 million yen, and for the full year it was 992 million yen.

Net liabilities as of March 31, 2022 were $ 2,085 million, compared to $ 899 million in net liabilities as of March 31, 2021.

At its meeting on May 10, 2022, the Board of Directors decided to propose a dividend of € 0.25 per share at its next General Assembly on July 12, 2022. This is 35% of adjusted net income before the investment in TMH was impaired.

Alstom acknowledged that inflation in the 2022/23 fiscal year could have some impact on profitability and a shortage of electronic components could put pressure on deliveries.

In this regard, the Group expects sales growth supported by solid purchase orders and an order-to-sales ratio above 1.

By steadily receiving orders and executing orders, we are aiming for moderate growth in adjusted operating margin compared to FY2021 / 22.

The company is finally foreseeing a generation of free cash flow.

The financial outlook for Alstom in Motion 2025 has been confirmed and the synergistic target has been revised upwards.

Therefore, the adjusted operating margin should reach 8% to 10% from 2024/25, benefiting from the Operational Excellence Initiative, the full execution of difficult projects in the backlog, with a synergistic effect of 2. 024/25 and 475-500 should generate 400 million euros. 1 million euros annually from 2025/26.

Source: AOF