Alstom SA (EPA:ALO)

CMD 2021

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Jul 6, 2021

All your little secrets, Good morning, ladies and gentlemen. Welcome to Alstom Capital Market Day. I'm welcoming you today in the line 15 Of the Grand Paris Express, the new metro expansion in Paris, actually, the largest expansion of any metro in the world today. We will go through the classical agenda for this Capital Market Day where I will introduce the market and the general context, Then each of the product lines, rolling stock, signaling, services, will go through their own strategy. Laurent will come back with the financial framework And I will come back at the end for the conclusions. I just remind you that at the end of this presentation, you will have ample time to ask any questions you may have. So let's start with a general overview of where we are today. First of all, before we go into our strategy and action plans, I would like to give you a general perspective of what is Axstom today after the merger with Bombardier. We have become a leader in rolling stock, signaling and services, a leader in mobility, in rail transportation. We have now a truly balanced workforce throughout the world and over all the continents, actually. We have a very balanced portfolio of activities between rolling stock, service and signaling. And we have an extremely resilient Business model with more than 1,000 customers all across the globe as well as a backlog of more than €74,500,000,000 Despite the recent sanitary conditions and economic crisis, all the secular drivers of our markets are still there. Whether we talk about sustainable development, urbanization or economic growth. Moreover, we've seen an increased investment decided by a number of governments throughout the world on sustainable mobility, which will favor, 1st and foremost, rail transportation. We have also seen a number of new regulations which have been taken by a number of public authorities in order to favor sustainable mobility And therefore, again, rail transportation, whether it's about ban of airplanes, whether it's about the ban of cars in the cities or the ban of diesel trends themselves. The market is therefore sustained, and the latest Study from UNIFI has shown an average of 3% growth per annum in the coming years even without taking into account All the latest developments and the latest announcement of the different governments. This growth It's driven geographically by emerging markets and in particular by America, Middle East, Africa, Latin America or by product, by signaling notably because of the digitalization of and the smart mobility, the digitalization of the different networks Across the globe, we have 2 priorities for the next 4 years. 2 very important priorities which will help us To take full responsibility, to endorse our responsibility, vis a vis our market and vis a vis our fellow citizens. The first one is to capture the growth, to extend our innovation, to extend to continue to expand our portfolio and to continue to transform our business to the satisfaction of our customers. The second priority is definitely to integrate Bombardier Transportation. And you know, the more we deep dive into Bombardier, the more we find new complementarities, new things that we can build together. Globally, all the teams of Alstom, the Board of Alstom is definitively committed to lead the way to greener and smarter mobility Worldwide. Let's look at our strategic road map for the next years. 1st and foremost, We want to build upon our past successes. As you know, we launched 2 years ago Alstom in Motion, And this has proved to be a very successful strategy. Our main pillars have been fully achieved, whether we speak about growth With a book to bill year after year greater than 1, with a particular focus on signaling and service, we have also made some very dedicated and focused M and A activities in order to boost our growth. We are now truly recognized as one of the leader in terms of innovation and in particular In terms of green traction, I will come back to that later on. In terms of efficiency, we have greatly improved our operations, our project executions, And this has been translated into an improved profitability of the company of now we have reached 8% average EBIT And of course, CSR, which is part of our DNA, ESG, which is one of our first goal, has been fully achieved Thanks to the efforts of all the company. So we definitely want to build upon this success to leverage this success in order to project ourselves into the future. Not surprisingly, the market remaining the same. The main pillar of our new strategy will be the same. Axtam in Motion 2025 will be based upon 3 main pillars, growth, innovation, and efficiency. All that will be driven by 1 Aston team. Our people, our managers, our engineers are definitively at the heart of our strategy. Growth will be primarily based upon our unique portfolio combined with a unique footprint worldwide. Innovation will continue to be at the heart of our DNA, particularly towards smarter and greener mobility. Finally, efficiency, project execution, footprint optimization, project execution optimization We still be and will continue to be the day to day bread and butter of our 70,000 employees. So let's start with growth. We want to leverage our unique portfolio. We have the most comprehensive portfolio in all our competitors. 1st, in rolling stock, from light rail to various speed train, monorail, metros, regional trains, all types of rolling stocks. In services, spare parts, maintenance activities, up to train operations actually. And in signaling, from urban signaling, light rail signaling, metro signaling to mainline signaling, of course, the European system. So we have the most comprehensive technological portfolio which will combine together in order to offer to our customers the best solutions. Of course, we have already some bestsellers. I can think about our Coradia regional trains which we have sold in Denmark, in Spain, in Italy, in different countries. Bombardier is bringing as well some bestsellers such as the Trax locomotives or the Innovia Metros. In terms of signaling, I think the combination of Bombardier technology and our technology will allow us To bring signaling solutions in any type of geographies, you know that you need to combine some European technologies With legacy technologies, with geographically focusing technologies, with the 2 portfolios we can do Both of it, general technologies as well as local technologies. Finally, we have already proven in some tenders that we are capable of Combining bricks coming from Alstom and bricks coming from Bombardier. One of the main example of that or the most recent example of that is for the train Maya In Mexico, where we have combined technologies coming from Alstom and coming from Bombardier. But I couldn't multiply the example. We have also Metros for example in India where we are already combining the different technologies of the 2 legacy companies. In terms of geographical footprint, we'll be uniquely positioned to combine our technology With the footprint which is best suited for our customers, you know that there is an increasing need Of localizations, most of our customers worldwide want proximity. Proximity to be better served, proximity for efficiency, But also proximity because they want their project, their infrastructure to benefit for local employment. With such a worldwide footprint From Latin America, North America to Asia Pacific to Australia covering all countries in Europe, we can combine Our unique technology, our best technology with a unique footprint. If you look geography by geography, We have zones, we have regions, continents, countries where we have a very strong historical presence Such as, for example, in Western Europe or Southern Europe I'm talking about France, Italy, Spain Bombardier has brought to us new, footprints, Like in the US, North America, Canada, of course. In some geographies, Bombardier was strong in the past, and I'm thinking, For example, in Germany. And we need to regain the historical presence of Bombardier, the historical market access, market penetration of Bombardier within Germany but within Scandinavia, the Nordic countries as well. If you talk about Asia, We are extremely present in India and we are also the most present Western company in China through 11 joint ventures. We have been pioneers in Middle East Africa, and we are the only large company with industrial presence in Middle East Africa. So as you can see, in all markets, we have a strong presence. In all markets, we want to hold a strong market share. All my colleagues will come back on the different product lines. We have, of course, different strategy depending on product lines. The first one, rolling stock and turnkey, we want to improve our competitiveness and we want to improve our profitability in rolling stock. This is where we want to leverage our new portfolio and also to create new holding stock with the different bricks of technologies coming from Aston And coming from Bombardier, I think they see the unique combination of standardization on one hand, standardization of the bricks as well as modularization enabling us to create new types of solutions for our customers. In signaling, we simply want to become number 1. We have both the technology to do so in mainline signaling and in particular on the European technology but also on the CBTC, on the classical urban signaling. So we combine this unique technological portfolio with a global reach. Thanks to the combination of Alstom presence and Bombardier presence, we are now present on all markets, in particular in Germany, which was lacking in our storm portfolio and which is one of the most promising markets in the coming years. Finally, Service, we want to sustain our leadership. We want to be the leader on the market, leveraging our very large installed base. And you know with the evolution towards predictive maintenance, how important is the access to data. And again, with 150,000 cars In installed fleet, with 35,000 cars being maintained, we have an immense access to a large data pool which we can leverage to build our predictive maintenance. Innovation. Innovation will continue to be at the heart of our strategy. We all know that rail mobility is by far the most sustainable means of transportation. But still, we need to continue to improve rail mobility to make it more attractive. So we intend to double our R and D effort From roughly €300,000,000 to close to €600,000,000 Of course, there will be some rationalization And we'll stop duplicating efforts, which we have done separately in Montbladiers and in Alstom. But still, we are going to increase significantly our R and D efforts In order to be able to continue to be at the lineage of the technology in our sector, what does it mean to be at the lineage? It's 1 to target green mobility. Again, sustainability is at the heart of our strategy. We want to improve our traction, energy saving. We want, of course, to go towards greener traction. I will come back to that later on. But sustainability will drive our efforts. Digitalization, cybersecurity, predictive maintenance are the way to improve reliability and efficiency of our systems. So the second priority is smart mobility. We definitively want to be as well at the leading edge of the technology in terms of digital technologies. Last but not least, we want to make rail transportation an evidence. We want people to be attracted by rail transportation, Not only because it's sustainable, but because for them, it's the most attractive means of transportation, the most convenient way of going from point A to point B. And for that, we will invest a lot in passenger experience, in making sure that everybody feels safe on board of our trains. So we want to have inclusive solutions, healthier mobility. So these are the 3 main axes of our innovation, green mobility, Smart mobility, but as well as mobility for everybody. Just to focus on green traction, as you know, we have been Truly pioneering this green traction. In Europe, half of the lines are non electrified. We have more than 6,000 diesel trains to be replaced or refurbished by 2,035. There is a strong public demand. There is a strong requirements by public authorities. We have already delivered back in 2018 2 hydrogen trains. And now we have commercial contracts for more than 59 Hydrogen trains to be delivered. Not only new trains, but also Refurbished trains, retrofit. Hydrogen will be one of the key solution, if not the largest solution to this issue. But we should not neglect as well battery, And we have our solutions for short hauls to equip trains with batteries so that they can, for a limited distance use battery instead of catenaries. You can see on the map that we can say that 2021 is the year of Hydrogen where most of the countries in Europe, which you all being early adopters of Hydrogen technology, but most of the countries in Europe have now launched program to implement hydrogen trains on their network. Digitalization, One of the main, main focus of our strategy, we need to be more and more software oriented With all which goes with it, cyber security, reliability, efficiency, we have relaunched, I would say, an effort in terms of Predictive maintenance, combining the predictive maintenance of Bombardier with the predictive maintenance of Alstom, enriching our 2 solutions. We need to enrich All what is about smart mobility. And we're already there. I mean, we have launched the most advanced CBTC, train to train CBTC, What we call Fluance, we are also at the forefront of autonomous trains, of course, not only for Metro but also for regional trains, which we have launched, for example, in Germany. Efficiency. We need to continue to transform this group. We have embarked over the last years in a complete transformation of the group, 1st and foremost, by digitalization of our processes, Of our factories, of our sites, we continue to deploy our Alstom Digital Suite. It took us time to actually design This digitalization, it took us time to deploy it within Alstom, but now we want to deploy it much faster in the new part of Alstom, I. E. In the ex legacy Bombardier sites. We can leverage our size to even further improve this digitalization, To even further boost automation, once you have digitalized one site, it's, of course, much easier to replicate this digitalization in the different sites Across the globe, project execution. We have learned, and it took us time in Alstom to get to an excellent project execution, To get to an excellent on time delivery, to get to an excellent client satisfaction, that we want to deploy within Bombardier, but we should not stop there. We should continuously improve our operations. We should strive to even further satisfy our customers and eventually at the end of the day all passengers. Last but not least, Our footprint. We have now a unique footprint which, as I said, will primarily serve our customers in terms of proximity But we can also leverage in terms of BCC content to make it more efficient. So we'll continue to put some emphasis On using and leveraging our global footprint, both locally to be close to our customers, but as well as globally to use the best place to produce Either engineering, manufacturing, any kind of goods that we want to produce. We have very clear targets that we want to follow Because we are convinced that only by measuring all these different operational indicators we will push the companies To be even better day after day. ESG, sustainability. You know Alstom, it's our DNA. I would say even more. Most of the employees, if not all the employees of Alstom, are working for Alstom because they truly believe That they work to improve the world going forward. That the world needs our solutions. That we have an immense responsibility vis a vis all the world to provide the solution in order to decarbonize mobility, Which has become one of the main challenge of the world today. So decarbonization of the mobility, we believe it is possible. We believe it is possible through a model shift toward rail transportation. We believe it is possible by decarbonizing Rail transportation itself taking out of the network diesel trains by improving the efficiency of our tractions. But we will only do that if we manage to care for our people, care for our employees. We are one A big community working again to develop these solutions, but we need to do that together without forgetting anybody inside the company. To be inclusive within the company, to be diverse within the company. We are creating immense Of positive impact on the planet through again our solutions. But we want to create also a positive impact For the communities around our factories, for the communities around us. That's why we are, year after year, increasing our contribution to Alstom Foundation So that Alstom Foundation can help thousands of thousands of citizens around the world to develop themselves. And of course, we want to make sure that we act as a responsible company, not only vis a vis our employees, vis a vis the communities but also vis a vis our suppliers around the world. Just a few words on Bombardier integration, which is one of our priorities for the Next years. The more we look at it, the more enthusiastic we are about this integration. Actually, it goes much faster than what we thought. We have been in a position to deploy the 1 organization only after a few months. People are already working together on the technology. We have unified the IT organization. The customers, all our environment is welcoming this integration. And we had, as I said, the first commercial successes. So frankly, the more we look at it, The more our employees are looking at it and more than 90% of our employees are positive about this merger. It brings so much to the both companies in terms of technological bricks, in terms of competence, in terms of expertise, in terms of technology. What we need to do now is to make it up and running. We have a challenge today, which is to stabilize The Bombardier portfolio. Yes, it's true to recognize that Bombardier projects were complex. If you ask me what what is my diagnosis on this situation, I think it was 1st and foremost a managerial issue. The employees, the engineers, the engineers of Bombardier are our 1st class, world class people. They know their work. They know their technology. They have been in this market for decades. But yes, Bombardier has gone through a period of destabilization, and therefore, some of the projects were badly resourced. Some of the coordination between the different sites were not there. We need to re establish these managerial routines. That's What will enable us to stabilize the projects? We are of course discussing with all customers in order to find again A good relationship with these customers in order to find a common ground, a positive common ground to deliver all these projects. We give ourselves 2 to 3 years in order to come back to a normal sound portfolio. We know it's going to take some time And I'm so pleased to see the customers' reaction to the dialogue that we have with them. We are pursuing the same goals of stabilizing this project portfolio. Thereafter, In 2 to 3 years, we'll be one company because this is the time which is also needed in order to deploy all our tools Within the different sites of Bombardier, to deploy all our digital know how within all these sites. So in 3 years, we'll be only 1 company And we'll be able to fully capture the synergies because I can tell you that the more we look at it, the more we see synergies between the different companies. So yes, we have to go through this period of project stabilization, but I can tell you that the future will be extremely bright and very promising and we can really endorse Our responsibility and the company which will be created through the addition of these 2 companies will be really world class and will really endorse its Responsibility to bring to the world the solution needed by the world. So now it's my pleasure to hand over to the different product line heads, which will explain to you for each of the product lines which are their main priorities. I will come back at the end for the conclusions and, of course, for the questions and answer sessions. Danny, I'm leaving the floor to you. Thank you. Thank you, Audi. Good morning, good afternoon to everyone. I'm Danny DiPerna. I'm pleased today to present alongside my colleague Benjamin Fitoussi, our product line of rolling stock and components for Alstom. Let me start by taking a look at the market. As you can see on this slide, the rolling stock market is a very steady, large growing market. All told, the accessible market is roughly €45,000,000,000 spread across multi segments, which I will cover in a moment. The market is naturally growing roughly around 1.5% and buoyed by government injection of funding both here in Europe and in the United States Focused on infrastructure and green mobility, the trend will continue to rise and grow. As you can see on the right hand side of our slide, the market share for Alstom After the acquisition of Bombardier, it's now roughly 1 third from an addressable market perspective of overall market size. And as you can see, next to our nearest competitor, we are quite significantly the number one global player. The market has responded. Our customers have, Fortunately for Alstom, rewarded us over the last 6 months with several recent wins, all totaling €7,000,000,000 Secured within the last 6 months. These range from here in Europe to the United States and most recently with Train Maya in Mexico. Let me take a look at you on how we're going to create value for our customers and stakeholders. I want to cover 3 key elements which will frame the remaining portion of our presentation. Number 1, our broad portfolio and scale. The combination of Alstom and Bombardier Transportation provides us an incredible platform worldwide globally to reach and to be proximate with our customers all over the world. This provides us an ability to understand all the norms and standards and to be able to work intimately with our customers to provide the very best mobility solutions. The second key element is technology. With our continued investment of roughly €250,000,000 Annually, we continue based on the building blocks we already have for technology and continued investment in R and D with a clear roadmap for technology to continue to drive mobility solutions for the future. And finally and most importantly, customer satisfaction And value creation for our shareholders, our employees and our customers is really going to rely on quality of execution and delivery and execution of our projects on time. And I have no doubt with the rigor and discipline and process focus that the Alstom company has, We will be successful. Now let's take a look at our portfolio. As you can see, the complementary Aspects of all of our product platforms across the world certainly have put us in a position Corner to corner all over the globe to have products and to have building blocks for us to meet all of our customers' demands. As you can see here from what we have in main center Europe down to Australia, over into Latin America and up into the United States, We have a multitude of platforms and technologies to select from. Our engineers are now capable to take the best of best of platforms and component building blocks To be able to offer improved solutions to meet the design cost targets, to meet the performance targets and of course Overall passenger comfort that our customers require. On the right hand side of the slide, it demonstrates that we can offer a full broad range of both speed and capacity, starting down towards the bottom of the axis with the monorail and airport people movers Down into up into the middle of regional and intercity and all the way to the far right, Alstom for very high speed and high speed train, Alstom offers a broad portfolio that matches all of the speed and capacity requirements that the market needs. Let's dive a little bit deeper into the component building blocks. We have an unmatched component building block library for our engineers to pull from and work for improving design features for our customers. We have the broadest portfolio of components in the industry From bogies and drives and traction and our train control and information systems. These library of components are available to all of our platform and engineering designers so that they can pick and choose depending on the needs and the design requirements for our customers. Down the middle, starting with the pioneering effort of the hydrogen fuel cell championed here at Alstom, in the middle with battery power, And then down below, we're investing in healthier mobility solutions. What is featured there is our HVAC air filter design. From a sanitary concern perspective, Overall, we are investing more on healthier mobility to provide better solutions for passenger comfort for our customers. And then on the far right, we've got a few more toys in the toy box that we are investing in. We've decided to have some specific targeted M and A Activity targeted towards brakes, brake pads, and of course, fuel cell technology so that our engineers can go deeper In the design attributes of these components and technologies, also broadening our opportunity to understand from both in engineering and operations and Aftermarket services in the future. Let's dive a little bit deeper now into our platforms. Let me start with light rail. Light rail market, The tram market is roughly €1,000,000,000 a year in annual sales. Combined together are 2 platforms, SITADIS, which is very successful In securing positions on new infrastructure, Flexity is competitive on infrastructure that is legacy and as an incumbency with Flexity. Together combined, we do have many building blocks from a platform perspective to offer the best of best. In addition to that and tailored specifically for the North American market, The trams in the United States and Canada have now a breadth of components and platforms for us to choose from that is slightly different from what is required here in the European market. Let's move over to the urban market. The urban market is roughly €8,500,000,000 and over the last 3 years' slice of data has grown almost 24%. It's a growing exciting market in urban, and we have what it takes with Movia and Metropolis To be able to combine the best of bets and offer great urban solutions at cost targets, at performance levels and at passenger comfort for our customers. And finally down if we look at the suburban, specifically in our German market, a market that is growing, our German market is very important for us And provided that we have all the right components now from a solutions perspective, we can leverage the scale of our local capabilities in Germany for the suburban market. Let's take a look at Mainline. By far the largest segment for rolling stock is regional. It's roughly €11,000,000,000 as a market. The flagship program for Alstom is the Karatea Stream. Karatea Stream is built on a standardized platform basis That offers the flexibility of single deck and double deck. Also, as I'll feature in a video in a moment, it leverages the green traction And the pioneering efforts of hydrogen power also equipped with battery power, for Caradia. If we take a look at Mainline, The mainline business which is high speed and very high speed, Alstom now has both the Avelia Horizon product, a game changing project That product that is designed out of the box for better than 30% total cost of ownership as designed, coupled with the legacy Bombardier Zaffiro Nordics product, Now we have 2 great product platforms to be able to cover the high speed and very high speed markets. In addition, Alstom has been very successful with the Avelia Liberty in the United States as the very first high speed, very high speed train for North America. And finally on locomotives, the combination of the 2, the Prima, which is capitalizing on the Indian and CIS markets And Bombardier's legacy Trax product for Pan European application provides us the basic locomotive capability that we need for both freight and for passenger for years to come. Let me show you an example of how we've combined this Tremendous asset portfolio to strengthen our value offering to our customers. Two examples. In Mexico, Train Maya. On the basis of the Xtrapolis product platform, in addition to the Bombardier legacy flex eco bogie system And the production capability, capacity and skill set that we have in Sahogun, Mexico, that combination was unmatched and was the winning combination to win For Trade Maya, more than €1,000,000,000 and as you can see, a very significant kilometerage number of stations, A very significant win that we were fortunate to secure earlier this year. The second example is based on a program that was won Already in India, based on the Movia platform and now to improve our customer offering using Metropolis subsystems, we are able to combine the best of best, produce in an already existing legacy Alstom facility in Sri City, India and secure deliveries and execution of a great product for our customer in India. And now, let's take a ride on our Alstom, Coradia Island. And now let me hand it over to Benjamin Fitoussi. Benjamin? Thank you, Danny. Good morning and good afternoon to everyone. It's my pleasure to be with all of you today. Daniel has focused his presentation on the growth pillar of our strategy. I will now move to the 2nd pillar, which is related to Innovation. As a combined company, we are spending in the range of €300,000,000 per year in the field of rolling stock and our customers are more and more demanding. Not only they value more and more the life cycle cost over the capital cost of the project, but the technical performance during the tender phase is getting traction. For example, in Europe, in many projects, on many tenders, we have up to 70% of the scoring, which is related to the technical performance. So our R and D program is focused on 4 main initiative. The first one is a TCO systematic approach where we are working on reducing the weight of our solution as well as improving the efficiency of our traction system. 2nd activity is related to LCR Mobility. Obviously, with the pandemic, we have been forced to increase our effort in that field, In particular related to treatment for all contact surfaces, but we are working as well on noise reduction and climatic comfort optimization. 3rd pillar is security and availability and the last pillar is sustainable solutions. Henri has explained All the action we were doing in the field of retractioning and hydrogen, but besides this, we are also investing in eco design and recyclability of our solution. Just to illustrate the Avelia high speed train that will replace the current high speed train in France, for example, and that will come in service In 2024, we bring significant innovation on the market. Now I will move to the 3rd pillar of our strategy, which is related to Efficiency. And I will focus my presentation to start with on all the integration initiative we are conducting. Obviously, the priority number 1 of our teams is to make sure we stabilize the difficult project we have currently in our portfolio. This has been the priority from day 1 for all our teams. We have conducted detailed assessment and we have set up task forces To support the project teams on the most complex projects, just to illustrate the type of action we are conducting actually. First one is to mobilize the technical expertise of the group throughout the world to support and fix the technical issues. But we are also investing in bringing additional resources on our project, in particular in the field of engineering, to cope with the increasing peak load that we have currently on such projects. We have adjusted the project management organization and aligned it With the current way of working of Alstom and we have reinforced the governance of those projects. Also planning are being reviewed, also get reviews are being checked And in particular, we are conducting re baselining action to make sure we are aligned with our customer demands. We are mobilizing our key suppliers, but we are also investing in our plants, for example, in Derby, but also in Crepe in France or in Cesca Lipa in Eastern Europe To cope with the throughput we need to deliver in a context of huge ramp up of production, which is expected this year and next year and also to allow us to serve our customer with better quality products. Obviously, this is a huge effort and it has The impact on the cash and cost position of our projects. Everything will not be solved in 6 months, but we are very confident that All the issues can be solved. None of them is insurmountable. We will fix all of them. I'm very confident. Now I will move to the 2nd axis of our integration effort, which is related to the product convergence. Obviously, the 2 company combined a unique offering on the market and it is our intent to maintain this wide offering to all our customers. But we are convinced we can combine vehicle architecture, components and technology to the benefits of our customers as well as to the competitiveness of our offering. Just to give some example in terms of best component selection, for example, on the Mumbai Line 4 project that has been secured last year, at the end of last year, We have decided to use the architecture of Astom Mumbai Line 3, but with a bogie and traction system coming from Bombardier. And we have other examples that we can also communicate in the theme of leveraging the MEC capabilities of Ice Storm In terms of transformers and electrical harnesses. We are just at the start of the journey and we know that it will take a bit longer to develop the full synergy, but by March 2022, all the product convergence will have been applied. Procurement is also a very important driver. As you know, we are spending every year in the range of €14,000,000,000 both in terms of direct material, but also in terms of indirect services. So the efficiency of our procurement is key to our own competitiveness. We have launched at the start of the acquisition a program called Leading Together, which involve all our key suppliers with the objective to review the supplier panel and deliver the synergies we can expect from such an acquisition. Now I will move to the integration of our processes and we are conducting this integration in 2 steps. The first step is this year To be able to operate as one company, what does it mean? It means that the 26 most critical processes are being aligned And we are able to steer the global performance of the company with a set of common KPIs and common data. What is the objective? The objective Is this year to be able to tender and to execute a project combining the sites of the 2 legacy companies? Just to illustrate, for example, with TrendMaja, which is a recently secured a deal, we are developing the train out of Bangalore, which is an Alstom legacy site. But Bengaluru is getting the support from both Eningsdorf and Derby, which are 2 legacy sites from Bombardier. And the manufacturing will be done in Sagun, which is also a BT legacy site. So that's for the short term. And then for the midterm, by 2025, We want to have the full operation aligned on the same car model fully digitalized. It means that in terms of engineering, we are deploying the new PLM and we are also automating all the tasks that are repetitive. What is the goal? To deliver 6% of savings on every cars we are designing. On the manufacturing front, we are deploying the ice storm operating system and we are also bringing further robotization in our plant with the goal to reduce The hours per car by 10% by 2025. To illustrate more in detail this digitalization effort, which is at the Cornerstone of our strategy, I want to give a couple of examples. In engineering, we are deploying what we call robotic process automation With the goal to automate in terms of engineering all the repetitive tasks, we have identified 50 RPA Opportunities with significant savings at stake. On the manufacturing front, we are also digitalizing Some manufacturing operation as well as some testing operation. For example, the water tightness Of our traction bonds in TARB will be fully now automated with a lot of savings in terms of efficiency, always as quality improvement and reliability in our processes. But efficiency is not only about integration of Bombardier. It's also about continuing Our transformation journey that was initiated at the time of Alstom in Motion with clear ambition set on all the aspect of our value chain by 2025, as you can see on this slide. I will just name a list of initiative we are conducting. For example, in terms of project management, After a phase of pilot, we are rolling up now a project management based on subsystems rather than on METE. We are also consolidating our effort in terms of standardization and modularization. And on the manufacturing front, we are deploying the 5S at shop floor level and making sure that the right first time Quality culture is implemented in all our operations. This is what you see on this slide is the complete footprint of our rolling stock Activities. It represents 26,000 employee and 7,000 engineers. This footprint is of great value for the company And this for 3 main reasons. 1st, we are able to remain very close to each of our customers, which is a stronger set because our customer are very often requesting some local content. 2nd, we can leverage our best cost competitive Sites that we have both in engineering and manufacturing in Eastern Europe, in India, in Mexico, in Morocco For the benefit of our customer and our own efficiency, we have set clear ambition in terms of BCC content with the goal to deliver 40% of our engineering hours from India and up to 60% of our manufacturing hours from our BCC location. But the value of this footprint is also to reach a certain scale effect and to allow the specialization of the site per product and per technology. With specialization comes professionalization and with professionalization comes Performance. This means, for example, that the new development of trains will be secured in 10 main development sites And each of these development sites will be focused on some geographies and some products. Now you will see a video highlighting Great video, and thank you, Benjamin. Let me wrap up for Rolling Stock and Components. Four key messages. Number 1, We are a market leader in green mobility solutions and we are the provider of choice. Number 2, our integration is well on its way. We've come a long way in 6 months. It's been an incredible journey and the integration is clearly focused on bringing increased value to customers and stakeholders By combining the best of best of our components and our product platforms, including worldwide reach With our now new global scale and customer intimacy and finally, real rigor and discipline that the Alstom Business processes bring to bear. 3rd, we are now more competitive together by looking at all of the standardization opportunities From our library of components, and we are better positioned today through our investments in technology to drive real technology and cost competitiveness. And finally, as Benjamin quite eloquently said, it really all sums up into excellent project execution. Quality and delivery is what our customers pay for, and they expect no less from us to drive customer satisfaction. And now Thanks, Danny. Thanks, Benjamin. Good morning, good afternoon to all of you. I'm Jean Francois Beaudoin. I'm the Head of Digital and Integrated Systems, which notably encompasses are signaling activities. Rail transportation is the only way to address both the congestion and sustainable mobility challenges we are facing today. At Alstom, we are working hard at making rail transportation more attractive and more affordable. Digitalization of rail is actually a great enabler to meet both expectations. Here's why. 1st, digitalization of rail is a solution to increase capacity of existing infrastructure. It allows to reduce the time and distance between 2 trains without compromising safety, which leads to higher throughput for an existing line. It also improves reliability and passenger comfort, For instance, when deploying passenger flow and traffic management systems. Driving automation is the best way to find the right compromise between trip time and energy consumptions that lead to energy efficiency improvement by as much as 45% In some use cases, advanced asset management, leveraging data, condition monitoring, predictive maintenance allows to reduce the total cost of ownership of the assets while improving availability by reducing the occurrence of failures. Those recognized benefits turn into a signaling market which is worth €15,000,000,000 per annum, which is largely made of mainline, Falling by urban, freight and services. After a relative softness of the market over the last couple of years, Primarily because of the COVID pandemic, it's fair to recognize that the market is currently rebounding and expected to offer the at a growth rate of approximately 5 percent, which is actually higher than the average rail market growth. If we look at the Alstom performance over the last couple of years, and in spite of the COVID pandemic, it's fair to recognize that we've delivered a solid top line growth with a CAGR of about 7%. The implementation of the Alstom in Motion strategy also helped us improving our bottom line and profit margin. While delivering those numbers, we've managed to maintain our technological leadership in key segments, For instance, further expanding our footprint for driverless metros, being entrusted to deliver the latest CTCS level 2 standard in India for the first time, or providing new innovation on the market. Let me give the example of the Radialis Audemetry in Norway that we're currently deploying. It's a great innovation that has meant to detect accurately and safely the position of trains in harsh weather conditions. It combines satellite positioning and inertial measurement with techniques like artificial intelligence and data fusion, which basically, practically, allows the operators to run their trains with the highest possible level of availability in spite of heavy snow. Of course, one of the key events of the previous months is the acquisition of Bobaie Transportation by Alstom, which has led to a step change in rolling stock activities, but which is equally strategically significant for our signaling activities. The combined entity delivers €2,100,000,000 of revenue per annum, positioning ourselves as the clear number 2 on the signaling market. We've got more than 13,000 colleagues, most of them being engineers, distributed very well in what we can call the most global footprint in the industry. A very good balance between historical knowledge centers in Europe, in Asia, in America, combined with best in class BCC footprint In Asia and Eastern Europe, as well as deployment centers, more or less, everywhere in the world. We've got great assets to leverage going forward. Number 1 is, of course, our complete offering of solutions. With the combination of Alstom and Bombardier, we can now address all market segments in signaling. We've got a proven track record in terms of technology leadership with latest solutions like ETCS, digital interlocking, CBTCs and others being leading the competition. We also have a global footprint leveraging very well BCC. And of course, a very strong market positioning, both in terms of installed base and in terms of customer proximity with our local presence in more than 70 countries. With this, our ambition is very clear. We want to be the market leader, leading technology for signaling by 2025. That will translate into a high single digit growth of the top line consistently over the next 4 years, as well as an ambition to continuously improve our margin to get best in class profit margin. If we look at that now by segment and spend a little while on the Mainline segment. Mainline, like I said, is the largest market. But it is also the fastest growing. This is primarily due to the fact that many countries, notably in Europe, have decided to launch Nationwide digitalization program of relevant networks. That translates into opportunities to change interlockings into digital interlockings and, of course, deployed the ETCS across the network. The benefit of ETCS are now well recognized. Let me give you the example of the Paris Lune corridor, which is currently the busiest high speed line in Europe. And we are currently deploying the ETCS Level 2 technology on that corridor. With the implementation of ETCS, we are able to reduce the time gap between 2 trains and increase the capacity of the line by up to 20% without upgrading the infrastructure. We are basically making the busiest line in Europe even busier. When you look at the current coverage of ETCS across Europe, it's today only 10% to 50%. So the potential for growth is absolutely huge. It's huge, but not only in Europe. ETCS, which was originally a European stand down, has become a reference overseas as well. We've got references in India, in Australia, in some countries, in Latin America. So the potential for expansion is even higher. Alstom is very well positioned to capture that growth. Number 1, because of the complementarity of our domestic markets, particularly France, Italy, India, the UK coming from Alstom Poland, Sweden, Thailand coming from Montmartre. We become as well very significantly strategically positioned for the German market as a combined entity. And Germany is very important for us because, through the German rollout that has been launched by the German government, It's going to be the largest market in Europe for the next 10 to 15 years. We have great ambitions for Germany, and we believe we are very well positioned. And the recent successes we've just signed In Stuttgart is an indication of that positioning. Of course, we also have a very competitive offering. We are the market leader on ETCS onboard units, And we've grown our market shares on the track site segment by 8% over the last few years. If you combine this Together with the leadership in technology, we're the first one having certified the ETCS both on onboard and west side with the latest standout, the so called baseline Clear Release And the great footprint that we have in terms of instant base, in terms of presence in various countries, we are very well positioned to be successful on that market. If we now look at urban, there are 2 key market drivers for urban. 1 is urbanization and second is city congestion. That leads to an expectation for many metro networks and municipalities to launch large scale digitalization Programs for their urban network. It leads to larger and more complex projects requiring high level of performance And very often, more and more diverse operations. Here again, we are very well positioned. 1, because we've got the most innovative technology on the market With Urbally's Florence currently being deployed for the first time in the world in Lille. This technology relies on the fact that trends communicate the one with each other rather than talking directly to the infrastructure. That translates into a reduced need for equipment wayside, which are usually more costly and more difficult to deploy, as well as an increased performance because we can reduce the headway, the time gap between 2 trains down to 1 minute only. The combination of Alstom and Bombardier has enhanced the portfolio of CBTC that can cover now all your van applications, light rail, metros, heavy rail, as well as, today, monorail and people movers. We also have a very strong track record in delivering complex projects, as well as an unrivaled customer proximity and installed base. Services is a market that is at a turning point. And I think there is a change of paradigm today on the market With more and more customers having explicit demand on making sure that they get long term support for life cycle management, obsolescence management, parts and repairs on the long term from the technology provider. This combined with extremely high demand in terms of availability of the systems going towards a 0 failure system. And of course, there is an emergence of an expectation for new digital services, particularly leveraging data to create additional value for our customers and the passengers, as well as a need for the technology providers to offer solutions to maintain Effective cyber defense on the long term of the life cycle of the asset. Here again, Alstom is very well positioned. 1st, We've doubled the revenue on that segment over the last couple of years only. 2nd, we have now, with the combination with Bombardier, a huge install base, More than 200 lines equipped with CBTC, thousands of onboard units running on our trains, thousands of kilometres equipped with our ETCS technology. We've got now an offering which addresses end to end needs from services going with more and more digital content. The key of our offer is HealthHUB. And HealthHUB's soft ceiling is totally integrated in our global HealthHUB offering. And that basically leverages data To enforce condition monitoring and predictive maintenance to increase the availability of the systems while reducing cost of ownership. We're investing a lot in innovation. It's at the core of our strategy. Here are 3 axis on which we are giving some priorities. The first one is the digitalization of our portfolio of solutions and products. By digitalization, we mean less hardware, More digital content, more software, more automation. We are trying to virtualize our application software and getting ready to move to the cloud. Why? Because it reduces the dependency on hardware, which is much more efficient to manage obsolescence, as well as a way to increase the scalability of our applications for larger scale operation. We are also trying to leverage the best of data science and artificial intelligence. And I'll give you the example of the Maastrichtia platform that we've deployed in Panama. It's an intelligent platform that collects data from multiple sources, the signaling solution of course, but also video surveillance, mobile network, ticketing systems, and gathers all those data in such a way that it can, in real time, adapt the transport offer to the transport demand depending on passenger flows. It was initially deployed to address a very specific congestion neck at the junction between line 1 and line 2 in Panama. And in the COVID pandemic, it has been redeployed very quickly to help the operator Managing the fact that the capacity of the line should be controlled as to enforce the social distancing measures. The second key axis is autonomous train and autonomous driving. There are multiple grades of automation. We are leading the way for the more advanced grade of automation, the so called GeoA4. But Geoe2 over ETCS, which is a very advanced automation level already, It's becoming a reality, and we've been entrusted to deliver such kind of assistance in India, in Luxembourg, and more recently in Germany, in Stuttgart. With this, we can improve the energy saving by 45% and the capacity of line by 20%. Full driverless prototypes are meant to run In France by 2023, cybersecurity is already a reality and a key axis for our development. It's what I call the flip side of digitalization. 2 key areas of focus. Number 1, making sure that all the products and solutions that we're putting on the market Cyber insight by design. Number 2 is to provide solutions like intrusion detection measures to our customers who have installed base for which the solutions have been designed 5, 10, 15, 20 years ago. To do this, we rely on strong partnerships with Airbus And Sylas, which is an Israeli startup in which we invested a strategic participation this year. As well As in house workforce, we've got more than 100 cybersecurity experts today. We plan to double that number within the next few years. Delivering with efficiency is another key strategic axis for us. 1st, by leveraging our best in class BCC footprint, which is a great combination of Katowice in Poland, Bangkok in Thailand and Bangalore in India. In Bangalore, we've already multiplied by 3 the number of skilled engineers the last 4 years. We are not doing this only because of cost. We are doing this because in India, the potential to start skilled engineers is almost infinite. Our target is that by 2025, we'll reach 50% of our engineering hours being delivered by our BCC colleagues. The 2nd key axis is platforming and standardization, which is basically reducing the number of hardware platform and technical platform to serve more applications in more markets to capture scale effect and reduce the cost of obsolescence management. And of course, the 3rd axis is the digitalization of our own operations to gain efficiency, lead time, and reduce cost of non quality. It's now time for me to introduce Ling Fang, my colleague, Head Of Asia Pacific to say a few words about our great Asian footprint. I'm Ling Fang, President of Alstom's Asia Pacific region. My region, on top of being in charge of delivering projects To the customers, Asia Pacific is also a global delivery center for signaling. 10 years ago, Bangano was only a back office for a few projects Worldwide, over the years we have developed Bangalore into a strong engineering centre working on both urban In the mainline business, on project engineering activities and R and D programs for the Indian market, but also for the rest of the world. Today, more than 2,000 Signalling engineers are working out of Bangalore The number of engineers has been multiplied by 3 In the past 4 years, this very fast growth has not only focused on quantity, but Also oncology. Today, we have a high number of signaling experts recognized by Alstom's world class Engineering program. One advantage of India is that we can find locally trained highly skilled engineers. With the acquisition of Bombardier Transportation, we have further strengthened our capabilities with the addition of a second engineering delivery center in Bangkok. 400 engineers serving both the local and the global market in urban and the mainline engineering, including some iconic projects in Thailand. This team has developed also a strong expertise on 10 key business and contributes to many 10 key Projects in the world. Alstom is designing the future of rail and with close to 40% of Alstom's Global Signalling Engineering to be delivered from Asia by 2025, Now it's time to wrap up. What we believe is that we see very positive market perspective with a growing need for more efficient transport system where Digitalization would be at the heart of that progression. Of course, we believe we are very well positioned on that market because of our complete offering, Very strong portfolio with the combination of Alstom and Bombardier. Our global presence, our best in class solutions and not only we believe we'll be able to capture growth, but we'll be able to continue improving our profit margin, leveraging ScaleFX, Bestcott Country's footprint and the digitalization of our solutions. We're very confident that we'll meet our ambition, which is to be the leader on that market, high single digit sales growth and best in class adjusted EBIT. It's now time for me to hand over to my colleague, Matt Byrne, Head of Services. Thank you, Jean Francois. So let's now take you through the most exciting part of the Alston portfolio. Hi, I'm Matt Byrne, and I'm the President for Services. Services is not only one of the most profitable parts of the Alstom portfolio, but also has huge potential for growth. Today, I will take you through not just the landscape of the current services market, but also our growth strategy for growth going forward. The rail services market is growing but still remains largely untapped. And there's a number of advantageous tailwinds funding that growth. The market liberalization, particularly in Europe and particularly in high speeds routes. The eco friendly drive towards green solutions driven by environmental, commercial and public pressures. The rising PPP For agencies and regions to find ways to grow and to fulfill their transit ambitions, the efficiency concerns of operators, driving towards a much lower cost of ownership as a consequence of funding pressures. The increasing complexity of trains, compelling operators and owners into long term partnerships with OEMs such as Alstom. And that market we see to be around 37,000,000,000 by 2023 to 2025. And there's a number of characteristics which make the services market highly attractive, Not just the good margins, long term contract stability, low risk. We know the product. We know the technology. High rate of renewal. 95% of our contracts get renewed because of our customer intimacy and performance. A strong delta inefficiency between Public and private entities, the ability of the likes of Alstom to invest and drive efficiency savings compared to the public operators We have constraints. And it's a very asset light model, the ability to have low cash injection, low capex, high returns. So we believe Alstom is well positioned to exploit this growth going forward. And we are the number one player in the services market. We outrank our competitors consistently. A good sales revenue of over 3,400,000,000 combined. And we're not only A growing, but also our ability to win major services projects is also growing, particularly after the acquisition of of Bombardier. And we saw that with TrendMeyer. If you take the Delhi Rapid Transit Metro, for example, 210 cars for 15 years maintenance. Those cars built by Alstom. This is the first time in India where Rail procurement and maintenance have been bundled in the same procurement, which shows even the most capable of national operators are looking to outsource to address their pressures from a cost and technological perspective. Also, it demonstrated very well Digital driven maintenance solutions can be very competitive in every segment. We have over 15,000 employees, 250 sites in over 40 countries, a 25,000,000,000 backlog which we're intending to grow. So Alstom has got the right portfolio of service offerings, scalable portfolio, which allows us to give the right solution to the client to address their commercial, operational and social economic requirements. And we are a unique one stop shop. We have the full portfolio which allows us to support the asset for its entire life cycle From cradle to grave, the last piece of that puzzle and that portfolio was acquired as a consequence of the purchase of Bombardier Train Operations. This allows us to provide a fully integrated solution now to our clients, driving cost and operational efficiencies. It also gives us a bigger insight into technologies and to experiences which previously you wouldn't add. Customer intimacy improves and return of experience feeding into our rolling stock designs. We've also benefited from the combination of our traction and modernization capabilities. We've now got the full suite of green traction. We've also benefited hugely from the convergence of our design, Engineering and digital solutions capabilities. That means we can provide a full suite of products to our clients. And size does matter. Our capabilities, our capacities, our proximity and customer intimacy means that we project our capabilities to everywhere in the world. And that's a huge factor for our clients. Now, our clients Our key to our growth, customer intensity, intimacy, focus. And we believe with the right strategy, We can outpace the growth in the market by 2 times. Underpinning that will be our innovation, not just in terms of our scalable solutions and fine tuning our current offerings, but using our size to enhance and expand our premium positioning. Also, driving partnerships and m and a where it gives us the advantage. Also, what's critical is an unwavering focus on our execution, have the right people and the right to perform and execute at world class level consistently. This is fundamental to the service we offer to our clients. Now, let's go into a little bit more detail in terms of strategy. Our strategy is built upon 4 growth pillars and 4 enablers. Those 4 growth levers and the 4 enablers, we believe, give us The core foundation to open up the potential list market. It gives us a benefit of having both long term growth and stability, But that translated to the short term profit to maximize shareholder interests. It also allows us to not just Drive and be responsive and competitive to formal tender process, but also to drive and accelerate the opening of the market. And we saw that with some of our projects which we've won recently. In terms of the the growth levers, an intense focus on our maintenance business. We've got 250,000 vehicles as an installed base. We can upsell our existing fleet of 35,000 as well as going to beyond that. Increased globalization of our parts and component repair and overhaul business. Customer intimacy is critical. But also customer dependency and ease of transaction will allow us to to grow that business, expand our operations outside of North America and the APM sites and also reinforce our position on smart and green traction. The ability to solve The pressures which our clients are seeing in terms of funding and environmental pressures to drive their current assets. As we see through the presentation, the enablers are fundamental to achieving that growth. Now in terms of maintenance market, Alstom is number 1, not just in terms of sales revenue and certainly not just in terms of its ability to have the best tools, Techniques, processes and technologies. Its ability to capture this growing market is also underpinned by our innovation In terms of commercial, financial and contractual solutions for our client to be able to tailor those solutions to the client's needs. And we saw that with the R151 project in Singapore, where a compelling solution by Alstom changed the client's philosophy and also Opened up their procurement strategy, given us a number of contracts as a consequence. A laser focus on cost, Risk and upsell means that the services market in respect to maintenance is also extremely stable. 97% of our contracts either continue to meet the as bid margin or grow, majority being the latter. And a good example being the UK for the voyage and the Pendalino contracts. These both contracts are over 20 years old, But both have consistently delivered increasing margins whilst being able to improve customer value and satisfaction. It's where we pioneered the benefit share program to ensure collaboration between ourselves, the government, and the clients. The services maintenance market is also very scalable, and this allows us to tailor solutions to the needs and constraints of the client. The Amtrak T Triple S is a good example. This not only provides Amtrak with all preventative, corrective, and overhaul parts, but provides off-site overhauls, on-site technical support and fleet planning. That means Amtrak are gaining the benefit of Alstom's engineering, operational, and digital strengths whilst retaining Their own blue collar. Now this is a particular interest to the national operators. They want to modernize. They want to gain efficiencies. They want to manage the technological risk that comes with new trains, But also they're constrained by the need to retain their frontline staff. And the teacher opposite model gives that. Now our book to bill is consistently over 1. We've now got 50 contracts where which are over 20 years in duration. We maintain 35,000 vehicles out of an installed base of 150,000, and we see considerable growth, not just in the upsell of those 30 35,000 vehicles, but also in the other 115,000. In addition, we're also expanding beyond Alstom assets. Around the world, we maintain successfully, operationally and financially, non Alstom assets. In Australia and North America being 2 good examples. So we see the market for maintenance growing and Alstom being very, very well positioned to capture that given its technology and its foundations. New rolling stock, maintenance and greenfield turnkey and O and M takes about 3 to 5 years to translate order intake Into sales. The parts business, the parts and overhaul business, alongside Brownfield O and M can translate Order intake to sales in a matter of months. Now we believe this gives us an ideal combination to ensure maximized shareholder interest, loan stability, churn, sales and return. And in respect to the parts and overall business, we have a clear strategy. We're combining the strengths of the 2 legacy companies, Gaining efficiencies where possible, but using their complementary footprint to improve and expand our service coverage to our client base. We're increasing customer intimacy, but also customer dependency and ease of transaction, which will ensure customer return. We're expanding the market and our offering not only in respect to strategic partnerships with our supply chain and through M and A, but also in house expansion of our capabilities. And we're enhancing our aftermarket protection, making sure that we use IPR, strategic partnerships Another means to protect the aftermarket and ensure the sales come to Alstom. Now a key component to this strategy is the globalization, the management of our suppliers, not only to ensure we get maximum value from our size and our strength, but also to align strategically with our suppliers to ensure that we deliver the best possible solution and product to our clients and align on investment over long term. Now train operations are new to the Alstom business. It provides us with the full suite of solutions that a client needs to operate trains. And when combined with our traditional approach to maintenance, gives us a fully integrated solution driving efficiency savings and performance improvements. It also gives us that return on experience which we mentioned earlier. That business has been extremely successful, particularly in North America, both in respect of our financial and operational performance. It also has significant improvement in our customer intimacy, And we see customer satisfaction and passenger satisfaction rates increasing when Alstom take over. A good example of that is GO Transit in Toronto, a commuter railway which serves the entire Greater Toronto Area. Now Our strategy for train operations is going to be selective. The market is huge, so it enables us to be selective. We will pick and choose a project which where we provide the greatest value to our client, either in strategic partnership or the standalone solution. And we do see that market growing in Europe, in North America, in Asia Pacific and also in the Middle East. Now we see modernization also As a considerable growth market, we mentioned the acquisition of Bombardier gives us a full suite of green solutions, hybrids, Battery and hydrogen technologies, different technologies for different duty cycles. We can offer the full suite to the client base. But also our modernization to extend vehicle life by over 20 years to introduce new capabilities And passenger amenities relieves the pressure that our clients are facing in respect to funding and passenger behaviors. And that helps us reduce cost, helps our clients reduce cost. A good example of this is the French National Railways AGC fleet, a diesel fleet which we're converting to battery technology. This conversion will allow that train to operate 80 to 120 kilometers on pure battery capability. It also allows that train to reduce its energy consumption by 20% as we capture the energy from braking, which previously was lost. So we see the modernization market Growing and we will bring new solutions to market, particularly with our interface with rolling stock as new technologies are developed for new build. They're made retrofittable for existing rolling stock. But this market is also important because with the new Technology is being introduced to existing fleets. It changes our relationship with our client base. Longer term relationships, longer term Intimacy benefits in our parts business and our maintenance business. Now in terms of enablers, We've already stated people, partnerships, innovation, digital solutions are going to be critical to our growth. Services is a people business, And we need to make sure we have the right people with the right skills. So we embark upon an integrated and systematic program to not only ensure we attract the right talent going forward, but to make sure that we retain and develop our existing talent. Mergers and acquisitions have been a strong success factor for Alstom over the years. And going forward, we intend to still leverage that capability For targeted select solutions to either expand our capabilities, allow ease of entry to new markets or segments. A good example of this is the Schunter procurement in the Netherlands, which has given us strategic maintenance basis for our locomotive clients. Another example being the procurement and acquisition of Ebra and Flirtex, brake discs and brake pads. Now that has not only opened up new sales avenues to us, given us a competitive solution to bring to market, but also significantly benefited Our maintenance contracts by addressing 2 of the major cost drivers under our maintenance contracts. Our digital solutions have underpinned our competitiveness for several years. The convergence of the Alstom and Bombardier road map has given us an even stronger position. And going forward, we intend to continue to invest in that area. The R and D investment will be better utilized given the strengths of both organizations. And our innovation, not just technological innovation, but financial and commercial innovation, the ability to scale our solutions to our clients to address their needs. We have not the social economic, financial or operational. Now The acquisition has given Alstom a new scale and that's changed the dynamic of how we are competitive in this services market. Not only are we able to deliver a better solution to our clients and our clients is a focus and a center of everything we do. We're able to deliver greater solutions, more proximity, better capability. Also, we're able to develop our people and have an organization which has got the breadth of skill necessary to meet the client demands. The focus on operational excellence, the move towards depots of the future, combining the Bombardier philosophy with The Alstom philosophy, which has now given us a much more comprehensive philosophy going forward. And and no skills And that convergence of strategies and philosophies we've calculated has given us already a 5% competitive advantage compared to pre acquisition When it comes to maintenance and O and M tendering, our digital solutions will remain a key component of our enabler. It will generate sales, but we believe the premium positioning for digital solutions the next 3 to 5 years is enabling our maintenance, our O and M Businesses. And let's take a greater look at our current offerings for digital solutions. So let's look at the key takeaways. The rail services market is growing, but still remains largely untapped. Alstom is the undisputed number 1 leader in the services market. And with Bombardier has now got the full suite of solutions and people and capabilities to ensure that we fulfill the growth, aspiration, and potential of this organization. So let me now hand across to Laura Martinez. Good morning, everyone. Thanks for listening in. I will be presenting you now the financial framework of our Alstom in Motion 2025 strategy. First of all, let me guide you through the recent achievement as part of our Alstom in Motion strategic plan on the Alstom standalone legacy parameters. Overall, we made positive progress toward our Alfa Romeo Ocean financial objectives, and we have been resilient to the COVID-nineteen crisis Since March 2020, starting with the backlog where we have secured more than €42,000,000,000 of order book. On sales, we limited the impact in 2021, and we are back on growth trajectories with close to 5% in our second half twenty twenty one. Profitability wise, we made positive step with 8% profitability in 2021, I. E, 50 basis points above 2018, 2019. Finally, we secured recurring positive cash flow generation across the years, including in 2021. All of this, despite the environment impacted by C19, Alstom standalone stands firm on our Alstom in Motion trajectory. Now turning to the future. We have made our framework within Alstom in Motion 2025 strategy, integrating BOOM transport, adapting to our new company profile. So starting by looking at the top line. We are targeting above 5% of CAGR Over the past 2021 to 'twenty four, 'twenty five, 2021 pro form a sales being at €14,000,000,000 So what are the key drivers? Number 1, very positive market momentum accelerated by government stimulus packages. And you have seen our recent successes We're combining the strengths of the new group, €6,000,000,000 of order intake in Q1, 'twenty one, 'twenty two with healthy margin, demonstrating clearly that we are benefiting fully from this positive market traction. 2nd, our strong backlog of €74,000,000,000 as of March 21, which is securing €30,000,000,000 of sales for the next 3 years. So dynamic above market growth is supported by all our product line. Rolling stock growing above market pace, Services growing at strong mid single digit pace with huge potential as explained by Matt. Synallanes enjoying the growth rate at high single digit benefiting from positive market catalyst both on urban and mainline As you have seen with Jeff. So in terms of top line, sitting on a dynamic market and expecting solid growth for all our business. Looking at the profitability now of the new group. We are targeting an adjusted EBIT margin between 8% to 10% From 'twenty four, 'twenty five onwards. As a reminder, we consider the combined entity group proxy profitability of circa 5% in 2021. Profitability uplift will be driven by 3 main elements. 1st, volume with strong top line growth associated with control of S and A and R and D investment Moving toward 3% of sales by the end of the plan. 2nd, margin and efficiency, including operational excellence initiative, Building on Alstom track records such as best cost countries step up. Stabilization and execution of our challenging rolling project in the 1st years, continuous improvement of gross margin on new orders and finally, product line mix, while we confirm the product line margin ambition range provided in the AAM strategic plan. 3rd, of course, progressive execution of synergies from the acquisition that I will detail on next slide. In terms of synergies, we do confirm our road map to achieve €400,000,000 of cost synergies run rate in year 4 to 5. Delivery will be progressive across the plan and structure on the following axis. Number 1, financing synergies, which will kick in by aligning financing cost of BT with Alstom profile. 2nd, procurement synergies, With savings benefiting from new scale, massification of purchase, commercial power, best cost sourcing, Design to cost, this is both on indirect and indirect community. CERN, process and efficiencies By reducing overlap on tenders, project management together with standardization of processes, methods and tools across the group. 4th, utilization of R and D project and structure cost overall optimization. And finally, Industrial footprint are vesting on our manufacturing engineering centers of excellence in BCC countries such as India, Eastern Europe Or Mexico. Overall, we are very confident on synergy execution. It will be delivered across all dimension, Thanks to Rigos Synergies execution plan. As you know, the synergies will lead to implementation expense of around 1 year of Run rate. So now looking closer at this fiscal year, our focus will be definitively on project stabilization, including industrial ramp up, resulting in significant cash impact in 2021, 2022. Related to project stabilization, as Benjamin P2C mentioned, we are deploying our action plan with meaningful progress on product technical performance, Development in new skill supply chain deliveries, for instance, in Derby, quality of our deliveries to our customers and vulnerabilities of our product And the SBB growth Reliability Growth Program is a very good example for that. Overall, We do confirm project risk assessment and associated provision booked in our account for our fiscal year 2021. This action will have significant cash impact during this fiscal year with minus €1,600,000,000 to minus €1,900,000,000 Free cash flow impact in H1, driven by project stabilization effort on engineering, supply chain, together with phasing an industrial ramp up of our large rolling stock project. We will turn to cash generation as of second half of 2021, 2022 driven by deliveries take up, sound cash generation on Alstom legacy parameters and progressive working capital stabilization. Looking ahead, we do see yearly positive free cash flow generation toward our midterm target. On the midterm, in terms of cash generation, we do target above 80% Of cash conversion from net income from 2025, 'twenty four, 'twenty five onwards, consistent with our previous Alstom in motion target. 4 key access to deliver this target. Delivery performance, driven by sound project execution on time, On quality, on cost, delivery across the board. This is, as you know, our main foundation, stabilization of working capital, reduction of CapEx toward 2% of sales and finally, positive impact of our cash focus program, which will be deployed across the group on tender, inventory, supply chain management together with specific cash incentive implementation. Overall, we are very confident in reaching above 80% free cash flow conversion from 'twenty four, 'twenty five onward, Building on sound project execution and consistent deployment of our structured cash focused program. Now looking at The capital allocation. We intend to protect our financial flexibility while pursuing growth opportunities and keeping a sustainable return for all our shareholders. 1st, I knew it's important for us as a project led industries, We are committed to maintain our investment grade profile. 2nd, we keep flexibility to pursue external growth on Focused bolt on M and A in the field of signaling, services or specific technology as we have done in the last 12 months. Finally, we do commit on a sustained shareholder dividend policy in the range of 25% to 35% payout. Looking at value creation, EPS uplift will be delivered with sales above 5% of CAGR, margin improvement driven by synergies and operational excellence, positive contribution from our joint ventures in China and Russia, All of this turning into a very significant EPS step up along the plan. So to wrap up, we have set Ambitious target in our Alstom in Motion 2025 strategy, confirming our ambition to strengthen our leading position in the industries and to provide our customers best in class solution. To sum up, 5% of CAGR on sales, Benefiting from our buoyant market, adjusted EBIT between 8% to 10%, leading to Leading profitabilities with efficiencies and sound execution, sustained mid term cash flow generation with the objective of a cash conversion of Above 80% from 24%, 25% onwards. And finally, 25% to 35% net income payout. Thank you very much for your attention. I'll leave back the floor to Henri for the conclusion. Thank you, Laurent, and thank you to all my colleagues We have presented to you, the strategies of their different product lines. It's now a time to conclude. As you have seen during the presentation, Alstom is today benefiting from an exceptional market, a unique market. I mean, the train, Renaissance It's absolutely unprecedented. On this market, we have all what we need to be extremely successful. We have a very large footprint, a very large portfolio of technology, of product, of solutions that we can leverage to better serve our customers. Of course, innovation will stay at the heart of Alstom's strategy. We are already well known for our innovation capabilities, but we need to significantly enhance these capabilities. We have now a very clear roadmap, fully engaged teams in order to Push Alstom towards new horizon in order as well to integrate Bombardier Transportation and to combine the 2 groups In order to create world class companies, we have set for ourselves ambitious targets, which I remind you, 5% growth year after year, which will lead to a market share increase of 5 points, 8% to 10% EBIT, adjusted EBIT, which is normalized, I would say, world class profitability And last but not least, 80% cash flow conversion going forward. I just want to end my presentation by outlining the importance of all our colleagues worldwide. All what we do is entirely due To the dedication, the engagement, the commitment of our 70,000 employees worldwide. Their expertise, their professionalism It's absolutely needed to bring the solutions to the market and fundamentally to lead the way to greener and smarter mobility worldwide. Thank you for your attention. And now I will invite you to follow me to go to the Q and A session. Thanks a lot. So thank you again for your attention. It's now time to take your questions. I've been told that there are a few Our first question is from Alastair Leslie from Societe Generale. Sir, your line is open. Thank you and good morning. So just a couple of questions. First one is a little bit more detail on the free cash flow guide. I'm just wondering if you can confirm how much of the So circa sort of €500,000,000 of cash release from BT's excess contract assets you expect to benefit from in H1 or H2 this year, if at all? And Laurent, I think you also said in May full year results that down payments could be very significant this year. And we've seen obviously a strong order intake in Q1, A buoyant pipeline still. So do you need a strong level of down payments to achieve the positive cash flow in H2 as well? Or does that kind of represent further upside risk? And then the second question was just a quick one on signaling. Previously, you had an ambition there to achieve double digit margins in signaling. Can you say where that kind of pro form a margin stands now as a kind of starting point and how much of the gap you can kind of continue to close with the number one player there given your sort of strong growth ambitions as well. Thank you. No, thank you for your questions. Indeed, in terms of Working capital requirements, as you have seen, H1 will be fully dedicated to ramp up the production facilities across the globe in order serve our customers in order to make sure that we are stabilizing the projects, notably, of course, coming from the Bombardier portfolio. So yes, the quality of €1,600,000,000 to €1,900,000,000 will come from this working capital evolution. But maybe as you are referring to Laurent comments, I will add over to Laurent for further details, and then I will come back on the signaling cushion. So thanks, Alastair. So in terms of the contract assets you are mentioning, this is all part of the guidance We are referring to the €1,600,000,000 to €1,900,000,000 negative in H1. We are turning in H2 to a positive cash generation, Thanks to the delivery pickup that we are seeing in France, U. K, India in the second half and the incremental sales profit going with it. And we will have indeed in H2 a positive impact expected from the LC order intake pipeline. We are looking ahead of it. So this is all part of our positive cash for our H2 'twenty one, 'twenty two. Thank you, Alain. On signaling, I will hand over to Jean Francois Beaudoin. Let me tell you that in general terms, The Bombardier acquisition was not dilutive as far as Signalling was concerned. The margin within Signalling in Bombardier was Of the same order of magnitude as ours, we are actually pretty good in recording a lot of small contracts, quite good, Highly good or highly relative small contracts. And yes, as you said, we not only we intend to be number 1 in terms of size, but we also intend to have a world class margin in signaling, which, as you know, is definitely a double digit one. But maybe, Jeff, you can say more about that. It's correct, Henri, what you said. The profitability of C9 from Legacy Bombardier and Legacy Alstom were, at the end, Fairly similar. I'm not sure we communicated explicitly on a double digit or not. So I'm not sure we'll go and mention any specific numbers Today, the road towards best in class margin, which indeed is double digit, is very clear. One of the key aspects is, of course, leveraging our BCC footprint. Rationalization of our portfolio and digitalization of our portfolio will, Of course, increase the top line, and we expect to create R and D synergies, of course, which is one of the key levers because we have a very R and D in that business. Thank you, Jeff. Next question, please. Our next question is from Guillermo Peigneux from UBS. Sir, your line is open. Thank you. It's Guillermo from UBS. I wanted to ask maybe a couple of questions regarding the free cash flow again. I wondered Whether you could give any granularity on the first half free cash flow guidance as to how much Of the cash outflow is driven by project stabilization or how much is driven by pure working capital needs? And then a second question, the free cash flow For the second half of this fiscal year and probably the next year, could you be a bit more granular? I think we're trying to obviously understand how much do you mean by significant cash outflow In this fiscal year, so how much will be the cash inflow or at least a little bit of guidance on how much can we see In the second half? And then second, when you say gradual conversion towards the over 80% free cash flow target, what are your Or ambitions in fiscal year 2020 or next fiscal year, if you could shed some light on those, I will be right in the end too. Thank you. Thank you for the question, Willy. Indeed, I mean, as you know, the variation of our free cash flow is entirely due to the working capital change. So actually, when you look at our profitability, then what drives the difference between the free cash flow and our profitability is Stability is a working capital change. So during H1, the vast majority of the cash outflow will come From this working capital change variation, we have not given any guidance for the full year because indeed what we need to do, what we want to do It's definitely to stabilize the project. So whenever we need to invest in supply chain, in resources in order to Stabilize this project, we will do it. So yes, we think and we that is our guidance that will be cash flow positive during the H2 as well as during the subsequent semesters and years after that. But still, in terms of detailed numbers, it will vary Depending on some of the projects, we also want, as you know, to stabilize the customer relationship. And for that, we have a number of discussions with some customers. So depending On the results of this discussion, the timing of these results, it may also influence the cash of H2. That's why we have concentrated on giving you a guidance for H1, and then we'll have a gradual ramp up year after year as we are stabilizing our projects and as we are also entering into all the discussions with the customers. I don't know if you want Laurent, you want to add something on that. No, I think that H2 2 is indeed stemming from the deliveries pickup as well incremental sales. And that's why we are expecting definitively a cash positive in the second half. And then to explain the volatility, we have usually as well And our next question is from James Moore from Redburn. Sir, your line is open. Yes. Good morning, everyone. Henri, Laurent, Julie. If I could go back to signaling and free cash flow, Please. On signaling, I think you talked about a 9% margin previously. Could we confirm that the pro form a margin was roughly 9% last year? And I believe Siemens And that signaling business made just over 15% last year. Are you really saying you can do a 600 basis point increase in signaling in full fiscal years? On the free cash flow, Henri, you talked about drawing a line in the sand 2 months ago after we dropped $750,000,000 of free cash flow and increased the debt reclassification by $450,000,000 We've now got another $1,600,000,000 so that's $3,000,000,000 of cash like burn In 8 months, what moved the line so much so quickly? And Can you give a bit of shape to years 2, 3 and 4? Are we going 25%, 50%, 80% conversion in a straight line? Would you say a hockey stick at the end? No. Thank you, James. I think in terms of margin of signaling, as being said, we have never Given any precise guidance, what we said, it was high single digit. And I do confirm this is high single digit And this was the pro form a. So as being said by Jeff a few minutes ago, again, the Bombardier portfolio was more or less in line with the Alstom portfolio. So the high single digit is there. Similarly, I mean, cement has given some hint on the margin, but are not really disclosing precisely the margin of signaling. And we know that within cement, it varies from 1 year to another one. So we have basically agreed on saying that it should be double digit. I will not say that it would go, and I will not comment on the 15%, but you can read my words that it's probably a little bit of a high number at that stage. So we are probably more in the low double digit rather than the 15%. And I think it's On average, it's similar to the cement. Even though, again, these numbers are not public, so we just take out from your own comments and your dialogue with Hello. Coming back to Michael on the and the there are a different element. 1, the amount of provisions we had to book At the end of March of last year, as you know, in order to face the risks which were embedded in the Bombardier portfolio. And here, I was very clear. I said I drew a line in the sand saying that we looked at the portfolio of Bombardier, and we said these were the risks embedded in this portfolio. And I confirm, and we have not what we announced today is by no means an increase of this level of provisions. Then, and we said it as well at the end of March and during our May announcement, that we need to find what was the trajectory in order to get back to a more normal situation. And we knew that Basically, Bombardier had, I would say, unsound relationships with the suppliers with the customer and so forth. So we need to reestablish these relationships. We need, as well, to ramp up the manufacturing facility. There is, just to give you an order of magnitude, we will produce during the second half 35% more cars than during the first one. And of course, this requires heavy investment in terms of supply chain. So it's 2 different aspects. 1 is definitively the risks which are embedded in the contract, and 2 is what is the cash which is needed to get back to a more normal working capital situation, considering our normal, I would say working capital situation, which is in line with the level of production which is anticipated in the future years. Because when I said that we are growing in H2, of course, this level will be sustained for the future years. So in a way, it's a new normalized working capital evolution. And also, as I said, we need to have customer satisfaction as being our first, first priority. So we need to ramp up the production and to deliver As fast as possible, all our trains, and certainly not start to try to save some cash and delay further and further Our next question is from Simon Tennyson from Jefferies. Sir, your line is open. Yes, good morning, gentlemen. My first question is on the margin target of 8% to 10%. Could you be slightly more specific here as to how you see Alstom standalone here and BT? Obviously, you have the 9% Plus margin target for 2023. You determine competitor targets now 10% to 13%. So Is it fair to assume that you think our stand alone will be a 10% plus margin business by 2025% and then correspondingly, BT, obviously, at a lower level. So just a bit more color on that would be helpful. Secondly, on the synergies. In one of your opening remarks, Henri, you said the longer you look at the deal, the more you see the synergies. How do I interpret this in line with you confirming the synergy targets? Do you think there's eventually and you're just trying to be conservative today to stick to the target? Also maybe just a bit more color on revenue synergies, which I don't think are included in your current guidance? And then very lastly on your investments in digital and green initiatives and services, do I think about the competitiveness of the market overall with a lot of investments in these initiatives? Do you think It really favors now large players over the coming 5 to 10 years at the expense of smaller players. Just how you see competitiveness in light of this? Thank you. Yes. Thank you for the question. Frankly, it's going to be very difficult To give you any color on the margins or the ex Astra margin and ex BT margin, today, we have now a portfolio of projects, And we have merged the 2 portfolios. And now we are managing, as you know, our company by geography. So in the U. K, we've got a portfolio of projects Combining the 2 legacy companies and Germany, France, the same. So it's very difficult to follow. And in the future, it will be impossible follow what was a margin of 1 or the other. What I want to tell you today is that the margins, which is embedded in our backlog, I'm talking now the global Alstom portfolio is superior to the margins that we are trading today. And the margin that we are Recording from new order intake is also better than the margin which is today in the backlog. So we are starting what we did in the past Within Alstom, and it was a few years ago, which is this virtual circle, while you are trading lower margin projects And you are recording higher margin projects, and your backlog is improving with time. Of course, this needs to have a proper execution of the projects so that the margins within the backlog is not deteriorating. And that's the key to this virtuous circle that we are starting. So to tell you in 2025 what would have been the margin of the portfolio within Alstom and Bombardier, frankly, does not really make sense. And by the way, in 2025, 80% of the sales will come from projects which would have been recorded in the meantime. So Already today, the projects that we are recording during the Q1, which, as I remind you, is pretty high, €6,000,000,000 for the year, €6,000,000,000 plus. Where are they coming from? Is it an Alstom portfolio or a Bombardier portfolio? Nobody can say. So let's focus now globally on the Alstom Global portfolio, and we cannot really split between the 2. On the synergies, I'm fully with you. I mean, I say it, and I'm very much impressed, and my colleagues probably will confirm that the more we talk between colleagues, The more ideas we find in terms of synergies, whether it's in terms of technical synergies, product platform synergies, I mean, maybe I will give the floor to Matt. He will illustrate between F3b and Orbita, which were the 2 Predictive maintenance tools of Alstom and Bombardier. Now where I'm prudent, cautious is in terms of timing. As I said, the 1st year of the plan will be entirely dedicated to the stabilization of the projects. And let me be clear with you. I will clearly prioritize stabilization of the projects over synergies. We are not going to try to perturb the supply chain, perturb the industrial setup, perturb the engineering setup just to have some synergies when project execution could be at risk. So yes, 400 is probably a conservative number, but we need to have the time to have these synergies being, I would say, fully I'm blessed in our portfolio. But just to give you an example, again, I will give the floor to Matt to explain to you between HealthHub and Orbita, what we are the between the 2 systems. Thanks, Henri. So in terms of synergies, we do see whilst there's A backlog benefit from footprint in terms of duplication. We see a benefit from skills and capabilities. The big driver is actually the merger of the strategies of the old BT and the old Alstom, which is driving a lot of The backlog improvement which we see could be possible. Helpful versus Orbit is one aspect. So instead of investing in 2 systems going forward, we've merged And we'll be investing in one system going forward. So we see an R and D benefits. But we're also seeing substantial Opportunities going forward in terms of optimizing the backlog by merging the philosophies of moving away from standalone projects 2 hubs which support projects. And that's arising from the technologies of both Alstom and the Old Bombardier. So the services backlog is €25,000,000,000 We've already said it's stable. We already said 95%, 97% of those projects achieve their as bid or beyond in terms of margin. But we do see the technology which is In Alstom and the old Bombardier converging together to allow a reduction in R and D whilst still maintaining our pace of investment in terms of output and the philosophies of the 2 companies allowing us to extract more value from the backlog. Thank you, Matt. To your last point, and this is absolutely essential and crucial, yes, we do believe that the combination of Alstom and Bombardier, the new scope of Alstom, its worldwide presence, its new innovation capabilities will give us a competitive edge. I would say otherwise we would not have chosen this strategy. But it gives us a competitive edge on 2 sides, 1 On the technology itself, and I can tell you, tenders and customers are increasingly demanding in terms of Energy saving in terms of noise, in terms of weight, in terms of passenger comfort and so forth. So innovation is absolutely key. And in most of the tenders, You have at least 50%, 60% of the marks which are related to this technology aspect. We do have also the question of the localization. And more and more, and you know that this is a political trend worldwide, More and more, you have some requirements of localizing projects. Sometimes, it's a pure I mean, it's a compulsory. It's an obligation, a pure obligation, like in the US with the Buy American Act, for example. And sometimes, as well, you get some extra points if you localize more than 25%, more than 30%, more than 50%. And we are quoting several times in the presentation the wind in Mexico. And typically, in Mexico, we did get some extra points. And actually, not to go into details, but these extra points, which we did get because of our localization in Mexico, We are absolutely instrumental in the fact that we won the contract. So we can multiply the example. Australia is another one. Canada and Quebec, now they are asking for localization as well. So this combination and this is the that's why, I mean, this question is absolutely crucial. This is the combination of the high end of the technology, the high level of technology, and the possibility to localize, which will really give us a competitive edge against our competitors. And actually, there is no other competitors benefit from such a combination. Thanks, Ovi. Thanks. Next question? Our next question is from Martin Wilkie from Citi. Sir, your line is open. It's Martin from Citi. Just to come back on the cash flow, can you just clarify one point? You talk about the working capital moves. So in the provision that you've taken, the €1,100,000,000 roughly for the OMERS contract, how much of that is going to get used in the first half of next year? So how much of the €1,600,000,000 to €1,900,000,000 is utilization of that provision and therefore how much would still be on the balance sheet at the end of the first half? So that was the first question. And the second question was, obviously, you raised some bonds and financing to finance the deal. I couldn't see any covenants as part of that. But Just to clarify, are there any leverage covenants as part of the financing taken out as part of the deal financing? Thanks. Thank you, Martin. I will hand over to Laurent for these questions. Clearly, the vast majority of the cash outflow for the first half will come from working capital and the pure, as I said, investment in supply chain and so forth. So I'm not saying that this cash outflow is due necessarily to provision consumption. We are working, As I said, we're discussing with some customers, but I don't expect during the first half a massive cash outflow coming from these discussions. So it will be vastly coming from the working capital. On this balance sheet, global balance sheet, I will let Laurent answer. Technically, I can tell you that we are committed to the investment grade. And therefore, we are committed to keep The same kind of, I would say, fees and so forth on our bonds and bonding requirement and so forth. But Laurent, maybe you can answer more technically. Yes. So on the first one, Henri explained, it's on H1, Vasyl working capital movement. So there will be some provision, but this will be more over time, it will be more progressive. And on the financing, indeed, as you know, we have very strong cash liquidity as of end of March 21, €4,500,000,000 We are definitively continue to work in this environment. And to be specific to your question, we don't have any covenants to our bonding or credit line as we speak. Thank you, Laurent. Next question. Thank you, Martin. Martin, you had a follow-up question? Sorry, yes, sorry, I do. Just on obviously very good orders this quarter, roughly SEK 6,000,000,000 I think. There has been some market conjecture that would customers want other companies to commit to tenders, I. E. To keep A large number of potential suppliers and there were some fears of dis synergies. And it seems that that's not the case. You've done very well with order intake so far. I mean, have you had any Negative comments about customers who won't seem to have other rail companies that may not previously have bid customer contracts and no bid because also Bombardier are together? Or has that not been a feature of what you've seen so far? No, not at all. I think thank you for the question. It helps me to clarify a little bit how our market is working because I've seen this comment. First, we have 1,000 customers. Their decisions are very much independent from one each other. So When a city is asking for a metro for Malstorm, I mean, the city next door or the city 100 kilometers away, 1 kilometers away will not take its decision depending on what the other cities are taking. So it's the point that you are raising could only happen In a very, very limited number of customers which could take, you know, their decision at a very, very short period of time, Sometimes, and this is what we are heading to, in the last decade, I mean, I've been heading Axon Transform for 10 years now. I've seen maybe 2 or 3 cases where you have that. Sometimes, it's very clear, like in Riyadh, for Pearl Riyadh Metro, where we could not want more than one lot. It's the case today in Tel Aviv. For Tel Aviv Triumph, you cannot win more than 1 lot and so forth. It's extremely rare that you have that, So maybe 2 or 3 times in a decade. And then when a city, like Singapore, for example and I discussed that with Singapore I say, okay, You are now you are present in the majority of our lines. And then they have to balance. On one hand, they may say, as you say, Okay. We need to have challengers and so forth, which they have. At the end of the day, let's not forget that what we are targeting is roughly 36% of market share. I mean, where 36% is far, far from being a dominant player. I mean, that's 36 is 1 third. But still, they have this choice of saying maybe we should multiply the number of holding stock provider. On the other hand, and that's what has been told to me by Singapore, They are benefiting from a huge investment of Alstom locally, and therefore, we can serve all the airlines locally with local presence, Local maintenance capabilities, local expertise, which they value more than, you know, having 2, 3, or 4 different fleets. On the contrary, I say most of the customers are happy to have homogeneous fleet and, more importantly, to have a fleet which can be served by local people. What they hate, By far, it's to have somebody coming, delivering some trains and then going away for the next 40 years. So frankly, This is not at all. I've seen that in a comment, but this is not at all the case, and this is not what we have seen commercially. And we had a very good quarter, And the perspectives are very good as well for the coming quarters and years. Our next Question is from Daniela Costa from Goldman Sachs. Madam, your line is open. Thank you for the presentation and good morning. I would like to ask 3 questions. The first one on the organic growth target of the over 5%. I mean, in the last Excluding the COVID year in the last 8 years, you did several years above that. And now there's much more stimulus, your positions in hydrogen and a lot of the things that you've spoke about. So why are you still sticking to the 5%? Why isn't there an increment versus where you were in history? That's my first question. And the second question is just following up again, sorry, on the free cash flow point. You've anchored on the first half commentary to largely being an outflow on the working capital. But Can you elaborate on the full year 2022 margin? Normally, you have a guidance for that. Why don't you have a guidance this year? Or maybe can you clarify there? And the third point related to this as well. Historically, it looks like your highest cash conversion in the past in the second half had been sort of around 90% or slightly over that. Should we think that it could be meaningfully different from history this year given all these strange movements around the legacy contracts and perhaps some deliveries on Bombardier? Or Do you think sort of like that kind of historical seasonality still applies? Thank you. Yeah. Thank you for the question, Daniel. I mean, you are trying to push us to give you more guidance, which I fully understand. On the growth aspect, We have given you some market perspective, which, by the way, these perspectives do not include some of the stimulus packages. I mean, as you know, the Biden plan is Recently recent, and we need to know how it will fall through the cell. Maybe our consciousness, our prudence comes from the fact that these stimulus packages will Feed some orders in 1 year, 2 years probably in the U. S, which in turn will fill the growth In revenues in 3, 4, 5 years, so you will not see any impact of these stimulus packages, I mean, this year, next year and so forth, which is purely the backlog deliveries. So we hope that we will do better than this 5%, of course. And I think we have everything in hand to do better. But at that stage, I will remain Cautious, and I will stick to this 5%. On the margin and on short term guidance, Historically, we didn't give any really short term guidance. We did it when we had very specific operations, for example, on our Capital and I think that that where we really needed to give some very short term guidance on what's going to be our results announcement 1 month, 2 months, 3 months after the operation. We prefer we are in a long term business, a long term market, so we prefer giving you a long term guidance, which I think is More in line with our business model. I also think that short term, as we know, in cash flow, you have some volatility. And rightly so, as you said, Daniela, it's all the moving parts today are quite are probably even more moving than in the past Because you have the working capital evolution, as we have seen, we have large down payments, as being said by Laurent, but you have also, as we have said, the provisions that we need to Cash out. And I don't know exactly the timing of this cash out. As I said, we want to privilege customer satisfaction. We want to privilege The production over some short term cash optimization. So we have a lot of moving parts, and I don't think that what has happened in the past is a good proxy of what will happen during H2. So I will stick to my comment that we will definitely be cash positive during H2. The extent of it really remains to be seen. And to be fair, depending and I will then be, of course, transparent with you at that point in time depending if it's A cash out related to a provision which has to be expensed, for example, which has already been booked. It's going to be good news if we can do it before the year end. I mean, The sooner, the better. If you can come up with an agreement with the customers and so forth, that's definitely better. So I don't want to over commit on H2. I think it's good to have a progressive ramp up of our cash flow. And this was a previous question as well. It would be a progressive ramp up As we are stabilizing the working capital, and I said that as we are cashing out the different provisions, increasing the profitability, But to be fair, difficult to take the path as a proxy of what will happen in the next few months. Laurent, you want to add things to that? No, it's clear. Thank you, Daniela. Next question? Our next question is from Gael de Bray from Deutsche Bank. Sir, your line is open. Thanks very much. Good morning, everybody. Look, I have so many questions. I don't even know where to start. But I guess the main surprise today is obviously the negative cash development in H1. And it's just that, I mean, you previously sort of suggested that free cash flow could indeed be negative this year, but that there was Perhaps still a possibility to see it positive. So now we are talking about a very big negative number. So what's changed so much over the past couple of months really. What I'm trying to understand is to what extent this is purely related to an acceleration of the manufacturing and the supply chain buildup for BT's travel projects? Or is there something else? So that's question number 1. The second question is on the targeted cash conversion rate, could you actually confirm that the 80% level is calculated on the adjusted net income before PPA. The third question I have is on The margin performance at BT, I know you don't really want to comment about BT versus Salastom anymore, but Is it fair to say that the margins have not fully developed according to initial expectations for BT and that They are hardly around 2% this year rather than the 3% to 4% level than had been previously suggested. And if I may add a final one in the interest of time, I will stop here. But On the BT execution side, I mean, you've talked a lot about their managerial issues, The lack of coordination, the lack of resources. But I was also wondering to what extent Bombardier had been this sort of price spoiler that people have talked about in all their tenders in the past 5 years And how this consolidation move may actually change the pricing dynamics for the industry going forward in a significant way or not? Thank you very much for the time. No. Thank you, Gael. Difficult to comment on all your points. On free cash flow, I don't know what I mean, we have Never guided, to my knowledge, on what should be the cash flow of this year previously. There may be we were, and I fully I admit it and I fully confirm it that we have guided a lot on the provisions that we have taken and the fact that they would be cashed out progressively. On the working capital evolution, I don't know if there had been an acceleration or so forth. I mean, we knew and we worked on what was needed in order to accelerate the production. It's true that we are now 5 months from the acquisition. So 5 months ago, we had an idea of what to do. It has been confirmed. The ramp up of production is probably stiffer than what we thought at the time. And therefore, the amount effort which is being required in order to get to where we should be to satisfy our customers and to deliver This large amount of cars during H2 and forward is definitively very high, And that's what we are today disclosing. Again, I don't recall having really guided on this particular point. But true that this number, of course, was not known by the market today. And frankly, We worked on it a lot during the last months to work on the supply chain, to work on what, again, was needed for this to happen. On the 80% conversion, yes, I do confirm that this is on the adjusted net income. I don't know exactly, and Laurent, you may confirm, but in 4 or 5 years, anyhow, the PPA should start to decrease quite significantly. So The difference between adjusted net income and net income will be probably relatively thin in 4 to 5 years. But practically, You are right. This is to be compared with the adjusted net income. On the margin of BT, and I mean, mathematically, I have not made the computation. I will confirm that this is, as compared to the 3% to 4% which was in the backlog, we are probably on the low side. So whether you've seen that during the last 2 months of last year, we have disclosed 2.7% as being the margin of BT. And it's clear that we are more in this vicinity, 5%. Of course, was the pro form a of last year ending March 2021. So this 2, 2.7 is probably more of a number. And we are cautious. We are not giving any guidance for the 1st year. But as you'll hear from all our comments, we are cautious on this 1st year, 1st year being fully dedicated to the stabilization of the project. As I said, we put this stabilization as a priority even over Short term synergies, where we need to start to work on these synergies. But the establishment of the project is a top, top priority. So we are cautious for the coming year, definitely the case. Last question, which is an interesting one, Angel. We discussed during years and years. So You may recall some of my comments. The issue of who is the price spoiler of the market varies with time. And some of our competitors, they love to say and point out on 1 or the other being the price Price spoiler. Usually, when you lose a tender, you tend to believe that the other one has spoiled the price. I will not quote some tenders where As Tom has been said to us, spoil the price, and now this project are one of our best cash cows. So It's not black and white. I'm quite cautious on that. Myself, I said at one point in time that Stadellar was extremely aggressive, and he did. They were very aggressive at one point in time. It's true that sometimes Bombardier was quite aggressive. Sometimes Siemens has been aggressive. So in general, of course, the consolidation of the industry is a good thing the innovation is a good thing for the customers. I think it will drive our competitiveness, but I will not go into this debate of So whether Bombardier was more of a price spoiler than Alstom, than Carrefs, than Stadler, than Cement. Frankly, You tend to see the market through your own lenses, and sometimes you lack a little bit of rationalization. So I will not go in that direction. Thank you, Gael. Thank you very much. Thank you, Henry. Thank you. Next question. Our next question is from Iris Vanck from Credit Suisse. Madam, your line is open. Great. Many thanks for the presentation and for taking my questions. I've got a couple of follow ups. And the first one, and my apologies, This is on cash free cash flow again. And I would like to ask more specifically about the working capital phasing Because it seems that in the first half, the next numbers will be mainly coming from the working capital phasing. And I'm more thinking about how this relates to the progression of the backlog delivery of BT and how front loaded Is this when it comes to the working capital phasing? Can we think about the big chunk, maybe 50% to 70% plus to 50% to 70% of the negative working capital phasing will be down in H1. So that we will be seeing much, much less headwinds from it going forward or it's actually maybe it will be more gradual process than maybe I would have expected? And secondly is, could you confirm that the majority of this working capital drag is from the BT Backlog rather than on the Alstom side, so if there's any comments on the Alstom, maybe legacy projects execution and working capital phasing that will be also very helpful. And my last question is on BT again because it sounds like Today, you've mentioned a couple of times actually several times that actually you found BT more complementary, maybe you have previously expected. And could you maybe comment on areas more specifically which maybe have surprised you on the upside once it comes to Maybe BT being a bit more complementary to you? And thank you. Yes. Thank you for the questions. First, to your first question on free cash flow, and again, I fully understand that there are plenty of questions on free cash flow, so no need to apologize for that. On the contrary, you're right. I mean, most of the headwinds will be recorded in H1. And by the way, this is, I would say, purely mechanical or mathematical. If we want to deliver, and as we said, we'll deliver cash during H2, 2, the variation of working capital, by definition, has to be much, much lower than the variation of working capital during H1 because to Be at such a negative cash outflow during H1, it means that the variation of working capital is extremely large. And now, as we are going to deliver cash during H2, Of course, all the headwinds have to come from H1, definitively. And this is also in line With the ramp up of our facilities, I can quote you a number of examples. I mean, if you take Derby, and Matt, who is coming from the U. K. As well, based in the U. K, knows that very well. I think at the beginning of the year, when Aston acquired Bombardier, We were delivering a few cars per month, probably 4 or 5 cars per month per week, sorry, per week. And now we are at 20, 25 Cars per week. So that shows you the ramp up of the industrial capabilities. If you look at Crespin, I mean, we need as well in France to ramp up Crepin extremely stiffly. So to your point, the headwinds are vastly in H1, and then you have some volatility and so forth. But the bulk of the headwind is definitively in H1. And to your second point, and maybe this would be my last comment, or at least today would be my last comment between Alstom and Bombardier, It's vastly coming from Bombardier. It's not entirely coming from the ex Bombardier portfolio. Then on your question of complementarity, I can give you some example. What is extremely striking is when you talk to our Tech people. I mean, when you are talking to the solutions, when you look at in the detail of the bricks, we have A lot of technological bricks. And then I'm sorry because I will go to a very, very technical matter on, for example, if we have Very specific type of control of our boogies, of our trends, very specific features which are asked by customer, for example, very lightweight to take a simple one, lightweight boogies. For example, Bombardier has very lightweight boogies, which Aston didn't have. And we could easily combine some of the, Aston products With these lightweight bogeys of Bombardier, I will not spare you the detail with what we call duoloming, which was one very Specific way of controlling our trends, which has been developed or is being developed by Bombardier, which we will apply to Alstom product as well. So Where we see more complementarities is really in the technological part of it. Even to just to give you A very precise example, which came, frankly, as a very good surprise, We have what we call a CCN, which is core competency network, which is basically regrouping all the expert of certain discipline, hydraulics, trend dynamics, electrical, software, and so forth. And our guy, the guy in charge, the chief technological officer of Firestorm, who is in charge of, animating this, this core competency network, Told me that he was extremely surprised that the strengths and weaknesses of the 2 companies were definitively complementary. So you had plenty of experts In Bombardier, which we are covering areas which were badly covered by the expert of Alstom and vice versa. And therefore, now, with the 2 set of experts Together, we are really covering the full complexity, if I may say, all the disciplines which are necessary to ensure The good quality and the good performance of our trains. So it's my message to you is very coming From day to day dialogue with everybody within the company and the company is actually, when you discuss with the people inside, The company is extremely excited by all what can be done together. And this is proving to be extremely powerful within the company. Thank you. Next, maybe next questions. Our next question coming from William Mackie from Kepler Cheuvreux. Sir, your line is open. Yes, good morning. A little like Gail, a long list of questions, but I'll try and concentrate on 3. And a clarification, please. Firstly, I understand your reluctance to guide on profits or Cash, but at least at the top line, given your framework around the strong ramp up in rolling stock And the growth potential in Service and Signaling, could you at least put a frame around where you see revenues for this year, Given that I think it's a very nonlinear progression in your growth profile to 2024, 2025, That's the first qualification. The second would be just to ask your impression on how you would characterize The investment levels in and across the Bombardier operations. We've heard that there was perhaps an underinvestment in in some project execution, but did you see a similar level of underinvestment around the technologies and the manufacturing capacities across the group and what impact does that have on how we should think about CapEx going forward? And then the last, and I'll stop here, is around the rolling stock portfolio. It's great to hear that you have many technologies that you can cherry pick from. But when we think about the real life cycle of rolling stock within the rail sector, which is very long, At what point could we start to see a trend towards rationalizing your product portfolio or platform portfolio And perhaps with it rationalizing the whole optimization of the components and the rolling stock footprint? Thank you. No, thank you for the questions. First, in terms of revenues, yes, What we are investing today is to prepare the future growth. So you will see a progressive ramp up of our revenues During the first half and the second half, yes, we intend to have, I would say, I was prudent To make it different, I was prudent on the margin, saying that, you know, it's going to take time because we are stabilizing the project. And we've used clearly Although the average growth not only is compounded average growth, but this is a growth that we should at least achieve It's not beat year after year. So that's something that we are aiming at definitively. Now in terms of investment, CapEx is not really the issue. We have a very large footprint today, so I don't expect any large CapEx needed In our industrial platform and even in the ex Bombardier platform, if we need to invest if there was a lack of investment on the industrial platform of Bombardier, that was more in terms of digitalization. On the contrary, to some extent, I would say that here as well, if you compare, but again, I promise this is really the last time I would compare the 2 legacy Companies. But Bombardier was probably more advanced on some aspect of the industrial setup. And they had some Because they are at very large factories, for example, you go, again, north of France with Crescrest. They are aiming at delivering 1,000 cars which is a huge number. So they had invested a lot in some of the tools and so forth, and they are continuing to invest in the tools. In terms of digitalization, It was far less advanced than last time. The good news that it helps us in a way, I mean, if you want to look at it from the good angle, To deploy our tools and when we have to create 1 last storm, there will be no debate on whether you have to choose the processors and the tools which has been deployed and, I would say, developed by Alstom or the tools which have been developed by Bombardier, because there is No global tool which has been developed by Bombardier. So we are going to deploy it relatively easily, I would say, with a good acceptance from all the teams, all the tools which we have developed So don't on this one, you should not expect any pickup in capex. We have globally the footprint which is being required. Then on your question of rolling stock portfolio, this is a very, very important question. First, you need to know that in our world, we are not talking, as you know, like in the car industry, where you have 2 types of platforms. For each project, we have a platform which we are modifying, where we are complementing with different types of bricks in order to exactly suit to the customer needs. So we are working and the teams are working very easily on aligning our different portfolio, Starting, as you said, by the bricks, so by the components, which is the most important one. Starting by the components themselves and the portfolio itself before moving to the industrial platform. So that's why you may remember that I said that it would take a few years To really align the initial platform, you first need to align our different platforms. Some of them, it's obvious. For example, locomotives for Bombardier, which is one of the best sellers in Bombardier. Of course, we at that time, we don't have similar locomotives for Europe, so That is easy. But even for this one, we may think and we have already proposed to the customers to actually Implement within these trucks of commodities the onboard unit, I. E. The signaling equipment of Alstom and no more the signaling equipment of Bombardier. So Already, we are taking this kind of decision to say now our new tracks offering will be the X rolling stop coming from Bombardier plus the signaling coming from Malcom. So This kind of decision, we take them 1 by 1. But it will take, let's say, another 6 months to be very clear on exactly The full picture on all our product lines and on all our product. And then we'll implement, and then it takes 2 to 3 years For the industrial sites to really align to their new mission and new visions, I. E, you are going to do This kind of metros, this site, you are going to do this kind of metros, which is always complex because also, as you know, we need localization. So you cannot decide To totally specialize your site, because you always need to have a kind of matrix between the technology, which is The core competence of a site and the geography because you want to be close to your customers. But I don't know if Danny or Benjamin, you want to add something on this one? Just at the last point, I think what we've seen as we've put together the building blocks as we presented earlier today, I think you're absolutely right, Henri. The rationalization, we shouldn't be in such a big rush because it takes time for the engineers to decide the best of best. And and I think as you just said, we have a a great Matrix of footprint and we have such great components and platforms. Over time, we'll be able to probably rationalize and select one platform to sell. But right now, honestly, I think you're absolutely right. We should allow the engineers to cherry pick. It's already invested in. So it's the best opportunity for everybody to really find out what the design features and attributes should be for the winning solution. We don't intend I mean, again, our strength is to be on all markets. So we need really to find the right balance between stabilization and modularization because we don't want to let down some markets. I mean, I think we have the technologies to serve all the markets. This is one of the strengths of Alstom. We don't want to let down markets through this standardization. So it's a fine balance, and we allow us a few months to do that. I think this is a key Key decisions for the future. Okay? Next questions? Our last question is from Jonathan Mounsey from Exane BNP Paribas. Sir, your line is open. Thank you. Thank you for filling me at the end there. So not on free cash flow, I think, obviously, you've given a number there. It's Somewhat shocking. We see that in the stock price, but at least it's out there. The failure to give a margin target for this year, I think we learned this last year with many companies, usually when you don't give targets for a single year out of guidance, It's because the range of possible outcomes is too wide and there's lack of visibility. I'm just worried that that's the scenario this time and that the risk almost certainly to the downside. Can we at least comment directionally? Are margins likely to be down in FY 'twenty two relative to FY 'twenty one? And then secondly, just to sort of understand kind of the risk profile around all of this when it comes to profitability and execution. Couple of years ago, I think Stadler had some problem projects and they took some of their best people from around the group, moved them into those projects. And quite soon afterwards, the rest of the group started to have problems as well because those people were not where they should have been. I imagine a situation where the best people in Alstom are moving across now Bombardier to help with this ramp and solve the problems. Do you can see that the risk profile on the core Alstom business, which ups and has been going relatively well, is now starting to rise too as perhaps the focus moves to Bombardier and not to Alstom's day to day business? Thank you. Yes. Thank you. First, on your first point, let me be clear. We have decided not to give any guidance for the 1st year, Not because we believe that, I mean, the margin will be nowhere, because we don't want to give that guidance for the 1st year. We want to give long term guidance. We are starting from a 5% margin, which is a pro form a margin. As I said, I'm very cautious. There will be the project stabilization. If I believe that the margin could go nowhere, I would have told. I mean, it's a you could say as well the fact that there is no guidance as a proof that I don't think that there is a need to give any guidance, If I may say it like that. That's on your first point. The second point is more fundamental, and I think It gives me the opportunity to share with you exactly one of the core element of our turnaround of Bombardier. You're right. I mean, I don't want to comment on the story of Tatler, but I think I did it with some of you. And sometimes, Tatler comments on us. So I may take this liberty of giving 1 or 2 comments. We knew it in the past and you remember that Stadler went to a very, very fast growth pattern. I mean, I think they have quasi doubled in size or they have doubled their project portfolio in a matter of 1 or 2 years. What we are doing here at Alstom is, yes, of course, we are Mobilizing a lot of Alstom people to help the Bombardier people. But it's not like as if we were doubling in size without anybody, which was probably the case of Tatler. We are taking on board 35,000 of Brumvadi's employees, Which I can tell you and I wish I have illustrated with the technological aspect are extremely competent people. There were some managerial issues, Strong managerial issues, a lack of rigor, a lack of discipline, a lack of processes. That's true. But the managers themselves, the engineers themselves, We are not to blame in that prospect. So the point is that, of course, you're right. Some of the Alstom people will come and help some of the Bombardier people. And that's what we are doing. And by the way, again, it will be the last time because now within the company, nobody knows who is ex Alstom or nobody knows who is ex Bombardier. We are now 77,000 employees all working towards the same goal. But theoretically, you're right that there is a balance. We need to take care about the difficult projects. So we need to pay attention to these difficult projects. But we do believe that indeed this is Something which we can do without endangering the rest of the portfolio of Alstom. And I'm very conscious of what you say. I have, I mean, As I said, I've been running this business for the last 10 years. And this is the number one goal is to make sure that we keep the company under control. And that's why I can tell you that everywhere in the world, all our managers are taking the problems 1 by 1 and are solving the problems 1 by 1 with an extreme sense of responsibility, of can. And we need to do it, and we need to keep it like that. And the last thing that we want is to transform ourselves into a kind of firefighting running around the planet. And this is not at all what's happening today. And I think on this one, I'm absolutely confident that the perspective that we gave to ourselves or The decision that we made when we decided to integrate Bombardier, we knew that there would be some problems. But I can confirm to you that the Combination of the Axsome team and the Bombardier teams are totally up to the challenge and are actually, and we can see a lot of signs of that, positive signs of that, of improvement of the delivery of our projects already today. So on that one, absolutely No problems. No worry on that. And the situation which we are describing on Shutter, I know it extremely well. I have that on top of my head and I make sure that this does not happen to us on that for sure. I think this is ending now our Q and A sessions. Thank you very much for your time. Thank you very much for your attention. There will be, of course, Further dialogue. And Laurent is at your disposal to answer all your questions going forward. I'm also thanking all the teams who have participated to this Capital Market Day. And again, for those of you who are not there at the beginning, we are here at the Line 15 of the new Paris Metros. So I take also the opportunity to thank the Grand Paris for having given us the opportunity to have this Capital Matter Day within their own facilities. And we have an excellent relationship with Grand Paris. And this is extremely, I would say, positive to be able to be there. So thank you, everybody, and talk to you soon. Thanks a lot.

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