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Financial Analysis Report
1
ALSTOM SA
EUR 35.12, ‘BUY’
ALSTOM SA as an MNC has been doing good
business specially in the Transport sector as
compared to Grid and Power but has until recently
been a part of the Merger and Acquisition with
General Electric where GE has paid 13 Billion
Euros to acquire Power & Grid business of
ALSTOM SA and ALSTOM SA acquired the
Transport business of GE within that same deal.
The following describes the key figures for
ALSTOM SA:
4% organic growth in sales
Resilience in profitability with IFO at 7%
Positive FCF in H2 after significant outflow
in H1
Cost saving performance plan “d2e” on
track
Balance sheet reinforcing
o Steam auxiliary components to be
sold for an EV of around €730
million
o No dividend to be proposed at the
AGM
Strategic reorientation
o Proposed acquisition of Alstom
Energy activities for €12.35 billion
of Equity Value
THERE IS SILENCE BEFORE EVERY STORM!
Financial Analysis Report
2
Table of Contents
1. Company Description.......................................................................................................................... 3
1.1 Group Overview ............................................................................................................................. 3
1.2 Main Activities ................................................................................................................................ 4
1.3 Subsidiaries-Participation ............................................................................................................... 5
2. Sector Overview .................................................................................................................................. 5
3. Forecasts ........................................................................................................................................... 10
4. Valuation ............................................................................................................................................ 10
4.1 DCF-based Valuation ................................................................................................................... 10
4.2 Comparable Valuation .................................................................................................................. 10
4.3 Combined Valuation Analysis ....................................................................................................... 10
5. S.W.O.T. Analysis .............................................................................................................................. 10
6. Company Fundamentals ................................................................................................................... 16
7. Financial Statements ......................................................................................................................... 18
8. Stock Information .............................................................................................................................. 21
8.1 Ownership Structure ..................................................................................................................... 21
8.2 Share Price Performance ............................................................................................................. 23
9 References ......................................................................................................................................... 24
Prepared by: Team 1
Deepak Shivdutt KANDPAL
Rauf HUSEYNZADE
Sridhar IYER
Financial Analysis Report
3
1. Company Description
1.1 Group Overview
Alstom (“the Group”) serves the power generation and transmission markets through its Thermal Power,
Renewable Power and Grid Sectors, and the rail transport market through its Transport Sector. The Group
designs, supplies, and services a complete range of technologically-advanced products and systems for its
customers, and possesses a unique expertise in systems integration and through life maintenance and
services.
The operational activities of the Group are organised in four Sectors:
Thermal Power:
Thermal Power offers a comprehensive range of power generation solutions using gas or coal
from integrated power plants and all types of turbines, generators, boilers, emission control
systems to a full range of services including plant modernisation, maintenance and operational
support. The Sector also supplies conventional islands for nuclear power plants.
Renewable Power:
Renewable Power offers EPC solutions, turbines and generators, control equipment and
maintenance for Hydro power and Wind power activities. The Sector also includes geothermal
and solar thermal businesses.
Grid:
The Grid Sector designs and manufactures equipment and engineered turnkey solutions to
manage power grids and transmit electricity from the power plant to the large end-users, be it
distribution utilities or industrial process or production facilities.
Transport:
The Transport Sector serves the urban transit, regional/intercity passenger travel markets and
freight markets all over the world with rail transport products, systems and services.
Key Figures
In € million Company Performance
Parameters March,
2011
March,
2012 Variation
March,
2012
March,
2013 Variation
March,
2013
March,
2014 Variation
Orders
Book-to-bill
ratio
19,054 21,706
+14%
21,706 23,770
+10%
23,770 21,498
-10% 0.91% 1.09% 1.09% 1.17% 1.17% 1.06%
Backlog 46,816 49,269 +5% 49,269 52,875 +7% 52,875 51,458 -3%
Sales 20,923 19,934 -5% 19,934 20,269 +2% 20,269 20,269 0%
Income from
operations
1,570 1,406 -10%
1,406 1,463 +4%
1,463 1,424 -3%
7.50% 7.10% 7.10% 7.20% 7.20% 7.00%
Financial Analysis Report
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Operating
margin
Net income 462 732 +58% 732 802 +10% 768 556 -28%
Free cash flow -516 -573 - -532 408 - 408 -171 -
1.2 Main Activities
During fiscal year 2013/14, Alstom’s order intake decreased by 6% on an organic basis at €21.5
billion. Thermal Power’s orders went down by 2% on an organic basis, at €9.0 billion. Despite tough
market conditions, the Sector booked 11 gas turbines in Iraq, Germany and Chile as well as several
service contracts for gas-fired power plants in the United States of America and in the United
Kingdom. In the Steam business, major contracts were awarded in Poland, Saudi Arabia and India.
Renewable Power achieved a strong commercial performance, as the Sector’s orders received rose
by 40% on a comparable basis at €2.6 billion, with large orders of wind turbines for Brazil and
Mexico and a rebound of Hydro bookings with orders in India, Brazil, Albania and Canada. Grid
recorded €3.5 billion of orders, 26% below last year on an organic basis, when two large High
Voltage Direct Current (HVDC) contracts had been awarded in Germany and in India. With a major
contract in Saudi Arabia for three metro lines and several other important orders booked in France
and in Canada, Transport’s order intake reached €6.4 billion, a sustained level although in decrease
of 9% on an organic basis compared to last year. The Sector had commercial successes in
emerging countries with several contracts signed in Brazil, Chile and Argentina.
ALSTOM is the leading MNC
in the field of Transport, Grid
& Power…
Financial Analysis Report
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1.3 Subsidiaries-Participation
2. Sector Overview
According to a shareholding study carried out
in March 2014 to monitor the development of
its capital structure, Alstom has
approximately 250,000 shareholders.
Financial Analysis Report
6
BY GEOGRAPHY
By geography, France still represents the bulk with the presence of Bouygues, the individual shareholders and a large number of French institutions. It is followed by Europe, accounting for 25% with 7% for UK and Ireland. American investors represent close to 20%, with the rest of the World (mainly Asia & Middle East) at 3%.
19 December 2014 Extraordinary Shareholders' Meeting
Alstom's Extraordinary Shareholders' Meeting will be held on 19 December at 10.30 CET at the
Méridien-Etoile hotel, 81 boulevard Gouvion saint-Cyr, 75017 Paris, France.
You will find on this page the information, as it becomes available, relating to this General Meeting,
including those pertaining to your participation in this Meeting and/or vote by mail, proxy or
electronically.
58%23%
10%
9%
FRANCE
NORTH AMERICA
UK&IRELAND
REST OF WORLD
Financial Analysis Report
7
Should registered shareholders wish to receive their notice of meeting in electronic format they
should log on the BNP Paribas Securities Services’ dedicated
website, https://planetshares.bnpparibas.com, before 14 November 2014. They may also, as the
case may be, vote online at the same address.
The VOTACCESS platform, to vote online, will be opened for this General Meeting from
1st December to 18thDecember 15.00 (CET). Only bearer shareholders whose financial intermediary
are connected to the VOTACCESS system and provide this service can have access to it.
Participating to the Shareholders’ Meeting
1. Conditions for participating
Each shareholder, irrespective of the number of shares held, may participate to the Shareholders’
Meeting by either attending it in person, or authorising another shareholder or his/her spouse or the
partner to whom the shareholder is bound by a Civil Solidarity Pact to represent him/her at the
Meeting. The shareholder may also authorise any other individual or legal entity selected by him/her
to represent him/her at the Meeting (Article L. 225-106 of the French Commercial Code) or vote by
mail. However, the only shareholders entitled to participate in the Meeting are those who have
demonstrated that they hold shares in accordance with Article R. 225-85 of the French Commercial
Code as follows:
For holders of registered shares (meaning that the shares are registered in the shareholder’s name
in the shares register maintained by BNP Paribas Securities Services for the account of ALSTOM),
their shares must be registered in ALSTOM’s shares register, at the latest the third business day
preceding the Meeting at midnight, i.e. 16 December 2014 at midnight (Paris time).
For holders of bearer shares, their shares must be registered in the accounts held by the authorised
financial intermediary (“intermédiaire financier habilité”) maintaining their shares account, at the
latest the third business day preceding the Meeting at midnight, i.e. 16 December 2014 at midnight
(Paris time).
This registration is evidenced by a statement of participation (“attestation de participation”) provided
by the financial intermediary.
2. To attend the Shareholders’ Meeting in person
To attend in person, shareholders should apply for an attendance card (“carte d’admission”) as
early as possible to receive it in due time:
Requesting an attendance card by post
Financial Analysis Report
8
Holders of registered shares should cross the box A of the voting form enabling to vote by mail or by
proxy which is sent to them together with the printed Notice of Meeting. They should send this form
back, duly signed and dated, to BNP Paribas Securities Services (CTS – Service Assemblées –
Grands Moulins - (Paris time).
Holders of bearer shares should either cross the box A of the voting form and send it, duly signed
and dated, to their financial intermediary, or request their financial intermediary an attendance card.
The financial intermediary shall provide evidence of the shareholder’s status directly to BNP Paribas
Securities Services, by producing a statement of participation (“attestation de participation”). If a
holder of bearer shares has not received an attendance card in due time, he/she should request to
his/her financial intermediary a statement of participation that will evidence its status as shareholder
at the reception desk of the Meeting.
The attendance card will be sent by post.
3. Becoming a Shareholder
Different shareholding options
There are 3 different ways that Alstom shares can be held:
Direct Registered Share Accounts:
- The shares are registered with the Company and managed by BNP Paribas Securities Services
which acts as Alstom’s registrar.
- You are known to Alstom by name.
Advantages of holding Direct Registered Shares:
You receive regular information about the Company via the Shareholders’ Letter. You will automatically receive notices and preparatory documents for the Shareholders’
Annual General Meetings. To participate in Shareholders’ Annual General Meetings, you do not have to provide
evidence of ownership of the shares. If you register the shares directly with the Company (as opposed to with your financial
intermediary) there are no custodial or administration charges. There is no minimum holding required to open a registered securities account.
Registered Share Accounts:
The shares are registered with the Company but held by a financial intermediary. You are known to Alstom by name. If the shareholder wants to sell their securities, they must have them reconverted to bearer
shares.
Bearer Shares:
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9
The shares are registered in an account with a financial intermediary of the shareholder’s choice.
Alstom does not know the name of the shareholder.
Please find below information concerning the difference between registered and bearer
shares.
If you would like to transfer your shares to the Alstom registrar, managed by BNP Paribas Securities
Services, please fill in the form on the right and return it to your financial intermediary. You can also
find there other forms that you may need if you are a registered shareholder.
Direct registered share
Registered share Bearer share
Account manager
BNP Paribas appointed by Alstom to act as your share registration agent
Your financial intermediary
Buy and sell order
Through our shareholder service 0 800 50 90 51
Through your financial intermediary: time scales can be required to transform registered share into bearer share before sale
Through your financial intermediary
Management fees
No handling or management fees
Fixed by your financial intermediary
Bank Commision
7,62 EUR + TVA Fixed by your financial intermediary
Brokerage fees
0,3% of the gross amount of the transaction with a minimum of €6.10 without VAT
Billed by your financial intermediary. A percentage of the transaction amount is generally deducted with a minimum
amount
Information and documentation
You are informed directly by Alstom. You receive notice of meeting, shareholder letter,
etc.
Alstom. You receive notice of meeting, shareholder letter, etc. Information and documentation are available on request. Documents, such as notice of meeting, are provided by your financial intermediary on request.
Types of Stock Market Orders
If you would like to know more about the different types of stock market orders that can take
place on NYSE Euronext European cash markets, please consult the link on the right of the
page.
Financial Analysis Report
10
In order to be processed, all orders must include the following information:
the name of the share to be traded - ALSTOM the ISIN code of the shares to be traded – FR0010220475 the type of transaction (buy or sell) the quantity of shares the shareholders’ account number the order validity date
3. Forecasts
Because of the merger and acquisition with General Electric (GE), US based company, ALSTOM
SA has the required capital of 13 Billion Euros to fund its future Cash Flows in terms of investment
in the Transport Sector which it has retained and acquired from GE.
4. Valuation
4.1 DCF-based Valuation
ALSTOM SA has 10 Billion Euros as initial Cash Flow which will be evenly distributed over the next
4 years i.e. 2.5 Billion Euros using the Payback Period method to calculate the Present Value of the
Discounted Cash Flows for each year.
(in € million) 2015 2016 2017 2018
Discounted Cash Flows 25000 25000 25000 25000
4.2 Comparable Valuation
Please refer the Company Fundamentals section to see the comparison with its competitors.
4.3 Combined Valuation Analysis
Not applicable as ALSTOM SA has sold the Power and Grid sectors together with Administration
and IT to General Electric.
5. S.W.O.T. Analysis
Alstom is engaged in designing and manufacturing products and systems for the transport
infrastructure, power generation and transmission industries. The company enjoys market-leading
position across product portfolio. A market-leading position across product portfolio helps the group
Financial Analysis Report
11
deliver sustainable growth, which in turn provides significant competitive advantage. However,
intense competition across all business segments could force Alstom to reduce prices, which could
affect the bargaining power of the group and strain its margins. (Anon 2014, p.4)
Strengths Weaknesses
Market-leading position across product portfolio helps to deliver sustainable growth Integrated offerings and comprehensive product portfolio creates additional value to customers Worldwide presence enhances the global competitiveness and customer retention capability
Alleged anti-competitive activities create negative impact on the reputation Weak financial health could increase debt Obligations
Opportunities Threats
Positive outlook for renewable markets could provide significant boost to geographic expansion Ageing of power plants could increase the market presence in world power plant service sector
Intense competition could affect the bargaining power Failure to comply with regulations would affect the overall business
Strengths
Market-leading position across product portfolio helps to deliver sustainable growth
Alstom enjoys market-leading position across product portfolio. The group is one of the world's
leading suppliers of steam turbine generators to the nuclear power plants market. Presently, around
40% of the world's operating nuclear power stations use Alstom made equipment. In addition to
steam turbine, the group is one of the world's leading specialists in custom-built large centrifugal
pumps, with over 6,000 large pumps installed in more than 70 countries. Alstom also has the largest
installed base, with approximately 30% of boilers installed worldwide using Alstom technology,
totalling around 850 Giga-Watts (GW). At present, Alstom's fleet represents more than 20% of the
world's installed steam turbine capacity.
Furthermore, Alstom Hydro is one of the worldwide market leaders for hydropower solutions and
services, with around 25% of the global hydropower installed capacity. The group also enjoys key
market share in delivery of air quality control systems for power generation and many other
industrial applications. Additionally, Alstom Grid is one of the world's leading global providers of
large engineered turnkey transmission and industrial power supply projects, such as high voltage
alternative current (HVAC) substations, specialized power electronics-based energy supplies (high
voltage direct current known as HVDC) and grid interconnection solutions.
Hence, market-leading position across product portfolio helps the group deliver sustainable growth,
which in turn provides significant competitive advantage.
Integrated offerings and comprehensive product portfolio creates additional value to customers
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Alstom enhances its competitive positioning in marketplace through its robust capability across the
entire product-services continuum. The group is recognized for its project management
competence. Alstom offers a single point-of-contact to coordinate and interact with all related parties
(consulting engineering, civil engineering, etc.) and can act as the consortium leader for major
projects, taking full responsibility for the project and its optimization. As an engineering,
procurement and construction (EPC) provider, Alstom has a unique perspective for the optimization
of the full hydro mechanical and electro mechanical lots as an integrated system.
Alstom provides a full range of auxiliaries for both power generation plants as well for other
industrial applications, like petrochemical, chemical and the metallurgical area. The group also
offers a comprehensive portfolio of steam turbines for all fossil-fired power plant applications, with
outputs up to 1,200 MW.
Under thermal power segment, the group's core competencies cover all phases of implementation
of the power conversion systems, starting from turbine island basic and detail design, including
general layout, civil work interfaces studies, supply of mechanical and electrical equipment, as well
as instrumentation and control systems, project documentation and training, erection up to
commissioning and performance testing.
Furthermore, Alstom also addresses all segments of passenger rail transport worldwide from
tramways to very high-speed trains with customized solutions configured from standard platforms.
The group serves the freight-by-rail segment with locomotives, rail control systems and parts as well
as maintenance support. For renewable energy market, Alstom offers integrated wind farm
solutions, covering site development activities, system or key component design and manufacturing,
assembly, installation and services.
Therefore, integrated offerings and comprehensive product portfolio aids the group in enhancing
resource efficiency that further supports the group in creating additional value for customers.
Worldwide presence enhances the global competitiveness and customer retention capability
Alstom operates through worldwide manufacturing and service base. The group's thermal power
business operates a robust network of over 200 locations in 70 countries and over 30 centres of
technical expertise.
In addition, with more than 30 centres of technical expertise, 30 dedicated service factories,
reconditioning centres, service workshops and mobile workshops, Alstom has one of the largest
organizations in the industry dedicated to servicing the installed base. Alstom's footprint and broad
industry expertise enable it to support customers with strong technology and product portfolio, local
service and engineering capabilities and quick access to expertise centres.
Furthermore, Alstom Grid is active on all continents, with over 90 manufacturing or engineering sites
worldwide. This international manufacturing base, located close to the customers, enables solutions
to be adapted to the customers' specific requirements and needs. Currently, with 50 local service
centres and 16 technical institutes in over 30 countries, Alstom Grid continues to expand its
Financial Analysis Report
13
services activities and implementation in China, India, Indonesia, the US, Russia, Saudi Arabia,
Morocco and Algeria.
Hence, such worldwide presence assists the group in localization of its products and services, which
in turn enhances its global competitiveness and customer retention capability.
Weaknesses
Alleged anti-competitive activities create negative impact on the reputation
Alstom is subject to procedures for alleged anti-competitive practices. In France, some of the
Alstom's subsidiaries are subject to certain legal proceedings, mostly contract related disputes.
Presently, the group is subject to procedures for alleged anti-competitive practices from European
Commission. In relation to this, the European Commission levied a fine of E58.5 million
(approximately $75.3 million) against the group in 2011, for the group's involvement in anti-
competitive practices in the gas insulated switchgears market, which was served by the group's
former transmission and distribution business and later divested in 2004. Furthermore, in recent
years, two other similar civil actions have been started before national jurisdictions against the
group for a global amount of E24 million ($30.9 million).
Hence, any adverse development of these investigations and procedures, including civil lawsuits,
may have a material adverse impact on the group's reputation, as well as on its results and financial
position due notably to the significant amount of fines that can be issued in this area.
Weak financial health could increase debt obligations
Alstom currently faces risk related to increasing debt burden and relatively weak financial and
operational performance. The group's non-current borrowings increased from E3,863 million
($4,976.3 million) in FY2012 to E4,197 million ($5,406.6 million) in FY2013.Therefore, the non-
current liabilities have also increased from E6,737 million ($8,678.6 million) to E7,236 million
($9,231.4 million) in FY2013. Due to the sustained weak financial and operational health of the
group, the credit rating agency Standard & Poor revised its outlook from stable to negative for
Alstom in May 2013.
Hence, consistent increase in the non-current borrowings could restrict the availability and/or
increase the cost of future financing for Alstom. In addition, it could also lead to the diversion of its
cash flows from operations to service increasing debt obligations.
Opportunities
Positive outlook for renewable markets could provide significant boost to geographic expansion
Due to climate change concerns across the globe, a number of countries have announced targets
for domestic greenhouse gas emissions (GHG) reduction, which provides significant boost to
activities related to power generation sourced from renewable energy. Against this backdrop, the
International Energy Agency (IEA) predicts that global renewable generation will reach 25% of the
total power generated by 2018, an increase from 20% in 2011. Renewables are driven primarily by
Financial Analysis Report
14
the rapid growth in wind and solar photovoltaic (PV), and are predicted to become the world's
second most important source of electricity aside from coal by 2016.
By 2020, the US is aiming for a total installed cost of $1/W for utility scale PV, $1.25/W for
commercial-scale, and $1.50/W for residential installation prices. Similarly, Australia being a part of
the global solar boom has added around 3 GW of capacity or around 1.2 million systems by the end
of 2013.
Hence, with strong global presence and references, a broad portfolio of existing and under
development renewable energy technologies, the group is expected to benefit from the positive
outlook for renewable market which in turn could provide significant boost to its geographic and
operational expansion strategy especially in developed and emerging markets.
Ageing of power plants could increase the market presence in world power plant service sector
The ageing installed base along with stricter environmental regulations and increased fuel prices is
expected to lead to a higher demand for retrofit and modernization solutions. In recent years,
demand for maintenance and refurbishment has been strengthened by a general trend among
power producers to seek increased performance, lower operating costs and extended lifetimes of
their existing plants. This increase in demand to upgrade and retrofit facilities could benefit power
plant manufacturers such as Alstom.
The growing number of old plants reaching retirement age will continue to drive the market for
servicing and retrofit as utilities strive to replace components to maintain current levels of installed
capacity, or take the opportunity to increase the capacity of power plants to simultaneously address
rising power demand. Hence, as one of the leading providers of retrofit and other services in the
world, the group is well positioned to leverage its strong expertise as well as global operational
presence to cater to the growing demand for retrofitting and other solutions. This could enable
Alstom to further increase its market presence in world power plant service sector.
Threats
Intense competition could affect the bargaining power
Alstom faces intense competition across all its market segments, both from large international
competitors and local players. The group competes with competitors having comparatively larger
volumes of business and greater financial resources or businesses that are focused on a particular
business segment as that of the group. In turnkey fossil plants, Alstom competes with Siemens,
Mitsubishi Heavy Industries, Ansaldo, Hyundai, Doosan, several Chinese EPCs as Sepco III and
BHEL in India. In gas turbines, Alstom faces competition from three major global groups: General
Electric, Siemens, and Mitsubishi Heavy Industries. In steam turbines sector, Alstom competes with
General Electric, Siemens, Mitsubishi Heavy Industries, and Toshiba, as well as emerging regional
players, such as Shanghai Electric, Harbin Dongan Auto Engine, and Dongfang Electric from China
and BHEL in India.
In emissions control systems for electrical power producers, the main competitors are Babcock &
Wilcox, Siemens-Wheelabrator, Babcock, Hitachi, BPI, Doosan, BHEL in India, Chinese suppliers in
Financial Analysis Report
15
China. In hydroelectric power generation, the main competitors included Voith-Siemens, Andritz
Hydro, as well as Harbin Dongan Auto Engine, Dongfang Electric, and BHEL. In the wind energy
sector, Alstom competes with Vestas, Gamesa, Siemens, General Electric, and Enercon. In power
plant control systems, the main competitors are ABB, Siemens, Emerson Electric, Yokogawa
Electric, and Invensys. In addition, Alstom's main competitors in the field of rail transportation are
Bombardier and Siemens.
Thus, intense competition across all business segments could force Alstom to reduce prices, which
could affect the bargaining power of the group and strain its margins.
Failure to comply with regulations would affect the overall business
In recent years, country-specific regulations are creating uncertainty for the thermal power market.
For instance, Germany decided to abandon nuclear power, following the catastrophic accident at
the Fukushima nuclear plant in Japan. This could diminish the demand for nuclear power plant
related businesses of the group. Moreover, the group's operations are subject to various
environmental laws and regulations in each of the jurisdictions in which it operates. These laws and
regulations impose increasingly stringent environmental protection standards on the group
regarding air emissions, wastewater discharges, the use and handling of hazardous waste or
materials, waste disposal practices, and the remediation of environmental contamination.
These standards expose Alstom to the risk of substantial environmental costs and liabilities,
including in relation with divested assets and past activities. In most of the jurisdictions in which the
group operates, its industrial activities are subject to obtaining permits, licenses, and authorizations.
The group's facilities must comply with these regulations and are subject to regular administrative
inspections. These regulations among others to which Alstom is subject could become more
stringent or additional regulations could be adopted in the future, which could cause the group to
incur additional compliance costs or limit its business activities. Furthermore, a failure to comply with
these regulations could result in fines or other penalties, which could adversely affect the group's
business, financial condition, and results of operations.
Financial Analysis Report
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6. Company Fundamentals
Financial Analysis Report
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Financial Analysis Report
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7. Financial Statements
Statements Parameters 2011 2012 2013 2014
Consolidated P&L (IFRS) (in € million)
Sales 20923 19934 20269 20269
Income from Operations 1570 1406 1463 1424
EBIT 764 1072 1187 1008
Net Profit after Tax 490 744 818 566
Earnings per share (in €) 1.57 2.49 2.66 1.8
Group Balance Sheet (IFRS)
Total non-current assets 12042 12804 13466 13167
Total current assets 17591 18243 18146 17261
Total assets 29633 31047 31612 30428
Total equity 4152 4434 5104 5109
Total non-current liabilities 6165 6737 7236 6819
Financial Analysis Report
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Total current liabilities 19316 19876 19272 18500
Total equity and liabilities 29633 31047 31612 30428
Cash Flows
Net Profit after Tax 490 744 818 566
Net Cash-Operating Activities 231 216 1089 639
Net Cash-Investing Activities -3,081 -912 -1118 -907
Net Cash-Financing Activities 1180 87 180 564
Net increase/(decrease) in cash and cash equivalents -1670 -609 151 296
Cash and cash equivalents at the end of the period 2701 2091 2195 2320
Net cash/(debt) at the beginning of the period 2222 -1286 -2492 -2342
Net cash/(debt) at the end of the period -1286 -2492 -2342 -3019
Source: Company data
The revenues increased from 2010 to 2011 (20923) before falling slightly in 2012 (19934) after
which it has remained constant through 2013 (20269) and 2014 (20269).
The net income decreased from 2010 to 2011 (490) and further increased in 2012 (744) followed by
slight increase in 2013 (818) and a slight fall in 2014 (566).
The net profit margin fell from ~~6 % in 2010 to ~2% in 2011, increasing in 2012 (~3.8%) and then
remaining more or less constant in 2013 followed by a fall in 2014 (~2.8%).
Financial Analysis Report
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The total assets increased from 2010 to 2011 (29633) and further increased to 31047 in 2012 while
in 2013 it remained more or less constant (31612) before falling slightly in 2014 (30428).
The operating net cash flow remained nearly constant from 2011 (231) and 2012 (216) while
increasing dramatically in 2013 (1089) and falling in 2014 (639).
The financial net cash flow decreased from 2011 (1180) to 2012 (87) before increasing in 2013
(180) before finally increasing further in 2014 (564).
The investment net cash flow decreased from 2011 (3081) to 2012 (912) and increased slightly in
2013 (1118) before finally decreasing in 2014 (907).
Financial Analysis Report
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8. Stock Information
8.1 Ownership Structure
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8.2 Share Price Performance
ALSTOM’s share price has been decreasing for the last 2 years as seen in the graph above.
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9 References
a) https://www.google.com/finance/portfolio?action=view&pid=1&ei=rJOHVIisKOSDwAP5moHIBA
b) http://www.alstom.com/microsites/group/investors/share-information/capital-structure/
c) Anon, ALO - Stock quote for Alstom SA - MSN Money. MSN. Available at: http://a.msn.com/00/en-
us/FR|SEPA|ALO [Accessed December 12, 2014].
d) Anon, 2014. ALSTOM SA SWOT Analysis. ALSTOM SWOT Analysis, pp.1–9.
10 Appendix - Data
ALSTOM Financial
Performance FY2011-14.xlsx