Ladies and gentlemen, welcome to the Alstom analyst call. I now hand over to Henri Poupart-Lafarge. Sir, please go ahead.
Good afternoon, everybody. Welcome to this conference call. Thank you for making yourselves available on a very short notice. I don't know when you were called, but probably half an hour ago, something like that. I think we wanted to update you as fast as possible on the announcement, which we made, again, half an hour ago, on the acquisition of Bombardier Transportation by Alstom, which aims at accelerating our strategic roadmap, accelerating Alstom in Motion by taking advantage of the complementarities, both in terms of geographies and product and activities of Bombardier. I'll go through the presentation quite rapidly with Laurent, and then, of course, we'll open a Q&A session with Laurent. We have also Emmanuelle Petrovic with us, our General Counsel, in case you have some more detailed questions. As a summary of the announcements, but we'll go into the details of each of the sections.
The idea is to accelerate our strategy. The number one item to keep in mind is the general context. As you know, train, rail transportation, has a lot of tailwinds as we speak. The momentum in Europe is absolutely unprecedented. We have a ridership increase all over Europe. As soon as I talk to customers, they're always requiring more capacity. We are in a situation whereby the world is increasing its need for rail transportation in general. This is extremely important. I don't think I would have done this transaction if it was not in this context. This transaction is here to accelerate our growth, again, in a booming market. It will significantly create value, I would say both in terms of complementarities, but also in terms of turnaround. We know that Bombardier Transportation margins are below standard levels.
We know that they've experienced some difficulties on some projects, and I think Alstom, with its track record, has the means to turn it around and to achieve the recovery of Bombardier Transportation. Of course, we'll have synergies which are related to R&D, product development, industrial platform, and so forth. I would say that in addition to a classical deal, there is an element of turnaround, which is important. In terms of numbers, and Laurent will come back to that, but we estimate that there will be a double-digit EPS accretion from year two, post-closing, closing which should occur beginning of 2021. In terms of transaction, the price is, as I will come back to that, is between EUR 5.8 billion-EUR 6.2 billion, and we'll finance it mostly by equity, either by paying directly in shares or by raising capital.
The financing is fully committed. Due to this payment in shares, CDPQ, Caisse de dépôt et placement du Québec, will become the long-term first anchor shareholder, first shareholder of Alstom. Going back to some of the elements I've just described. Going back to the market, frankly, as I said, unprecedented. A lot of actions in favor of rail transportations worldwide. We were used to this market for urban, with a lot of actions in favor of trains, metros, and against cars in cities. It has now reached, if I may say, passenger traffic, main lines. To quote an example, the Green Deal in Europe is very much favoring rail transportation. Germany has announced a very large investment plan in favor of rail transportation as well. Everything is pushing on the same direction, and we see that now in ridership.
We have a growth which is expected between 3%- 5%. If you see the immediate growth, whether we talk in Germany after the decrease of VAT, there is a boom in passenger growth and the need for new rolling stock. In Germany, of course, it is extremely important in our transaction because Bombardier is, as you know, extremely well-positioned in Germany. Just a track record of Alstom, because just to tell you that this is a step, a significant step, a meaningful step in a long-term strategy. It's not a change in our strategy. We are not entering into a new market, new activities, which is, I think it's important. All what Bombardier does is complementary to our activities, but it's not a new activity. We want to accelerate our growth and our profitability going forward.
To do that, I think Bombardier will bring, again, nice product, nice geographies, and nice margin enhancement potential. We have defined, and I remind you, Alstom in Motion, which is growth, innovation, and efficiency. Clearly, these three pillars will be complemented by Bombardier. Growth, of course, immediately by bringing new customers, new geographies. Innovation, as we will have a larger scale, a larger platform in order to develop our products, to launch more R&Ds. Of course, efficiency, we need to turn around Bombardier, then we'll have a larger footprint and also a larger scale in order to have a different type of relationship with suppliers and so forth. Important to see that it's not a change, it's an acceleration, a huge acceleration, but an acceleration. About Bombardier, you know probably as much as I know Bombardier.
It's a leader, a reference in rail mobility. It has strong products, very large product portfolio, a lot of expertise, a very large industrial footprint, large install base, which is a good basis for services, a large backlog, and revenue this year of EUR 7.4 billion. In terms of commercial and in terms of complementarities, traditionally, as you know, historically, Bombardier is more in Northern Europe. The roots of Bombardier are in Germany with AEG a long time ago. They bought in the U.K., the ex-British Rail at the time of the privatization. They were very present in Scandinavia. Alstom is more present in Spain, in Italy, of course, in France. We have a good complement in terms of Europe. Asia is the same. Bombardier is very present in China, with very successful joint ventures, including in Innovia APM, but also in metro.
Very present in Thailand as well, in Australia, where we are more focusing on India, and we are more present in India than they are. Well, they have a small presence in India, but we're much more present. They are present in Malaysia. We are present in Singapore. It's really a different type of geographies. U.S. and Canada, of course, they are more present than we are in U.S. and Canada. We expect a lot of investment both in Canada and in the U.S. in terms of rail infrastructure. It will be a significant potential for us to have access globally to this U.S. market, which, as you know, requires very specific rolling stocks. It's not something that you can develop easily. Also the industrial footprint is extremely complex to build.
The supply chain is very different. All that requires a lot of expertise and competence. Of course, in Middle East Africa, they have other type of, I would say, footprint. In South Africa, they are very present in locomotives where we are in passenger trains. They are quite present in Turkey, in particular in Istanbul, where they are the traditional signaling player in Istanbul. All in all, even though you could believe from a remote standpoint that we are in the similar type of countries, the strong points and the weak points are quite different from one company to another. In terms of rolling stock, not surprisingly, these weak points and strong points translate into different type of product portfolio. Specific products which are in Bombardier are not in our portfolio.
We have the electrical locomotives, for example, where we are in heavy duty, but they are in classical middle power range European locomotives. Monorail, very specific product. People mover, where they are extremely strong in people mover. They have a very large market share, where, by the way, they are doing some operation and maintenance. They have products which are suited for their specific market, whether we talk regional trains in the U.K., where we don't. They have Talent 3, which is in Germany, and metros in San Francisco which we don't have, and bi-level coaches in the U.S. and Canada, which of course is a very specific metro products. If you look platform -by- platform, they are more in metros in very specific products. We are more present in the standard metros, whereas they have very specific products dedicated to very specific network.
For some of you in London, for another, very present in London. We are not. We were present a very long time ago. In tram and light rail, they have specific product as well for Germany, for example. As you know, the German market is very scattered as far as tramway is concerned. They have a number of tramways dedicated to different cities. We don't have. We have very little tram for Germany today. People mover, I talked about it. The regional trains are quite specific to different geographies. They have the Aventra, they have the Nordics as well, and locomotives, as I said. In terms of services, extremely important point. They are extremely present in services, both in the U.K. and in the U.S. In the U.S., they are even in the operation.
It opens up for us a huge potential, and I think we will be uniquely placed to benefit from the growth of service, the growth of predictive maintenance. They have their own predictive maintenance tool. We have our own predictive maintenance tool, we can leverage both of them in order to build a very world-class and a leading solution for our customers. Finally, as I said, for certain operations. They do the operations not only in the airport, but also in certain dedicated network, this will give us as well a license there, which could open some potential. Signaling. Signaling is a question as well of scale. You know that signaling activities are quite synergetic in terms of scale. They are smaller than we are. Nevertheless, they bring, as I said, some very specific technologies for specific countries.
I would say Poland and Germany and Scandinavia is probably the most important one in Europe, where we are not. We are not today, as we speak, we are not present in Germany. Of course, Germany is by far the largest market in Europe in the coming years. We are talking about a market of EUR 1 billion per year, which is absolutely enormous. It will give various access to this market. There are some products in the U.S. as well. I would say, what bring Bombardier by a few very strategic elements, which will open up a few strategic geographies. In terms of industrial footprint, no surprise. They have also initial footprint, which is quite different from ours. They are in China very much, a little in India, very much in China.
There are a lot of activities in the U.S., where we have one factory. They have a large factory in Mexico, and we are not present in Mexico. They are in Eastern Europe. As we are in Poland, but they are also in Česká Lípa, in Czech Republic. They have a very large factory in the U.K., which obviously will be essential to penetrate the British market going forward. It also complements our footprint. Finally, in terms of margin, as I said, they have experienced some difficulties on their projects. We have to work to bring them back to standard margin. I think we will benefit from a strong cultural fit. We are in a position to rapidly dedicate and focus some of our efforts to turn them around.
You know, this was probably I should have started by that, with the picture on our first slide. We are actually delivering a number of projects with them. We know very well how they act and deliver the projects, and we'll be there to help them. I have to say also that a number of transportation employees are extremely talented within Bombardier. The question is really to help them to turn their own companies around. They have a lot of talent and expertise. It's just a question of making and implementing the right processes, the right control mechanisms. In terms of synergies, I would say classically, mostly procurement, product platforms, R&D, small industrial synergies, but very limited. As I said, it's not an acquisition which aims at reducing the footprint. Again, the synergies will come between four to five years.
First and foremost, because we are not in a hurry to implement all the synergies. Again, the most important part is to better deliver the projects, to enhance the margin per se, and progressively, I would say, to re-up the synergies and the profit coming from the synergies. We are not going to implement them forcefully. What is extremely important on the first time is really to turn the project execution around. I would say, as a conclusion, I would say on my side that this will be a strong value-creating transaction. I think it's a unique moment in the rail industry where we benefit from these headwinds on our market. I think it's really a unique opportunity. Bombardier, as you know, Bombardier Group, has its own strategy. This Bombardier Transportation was for sale.
I can assure you that if not for the global difficulties of Bombardier Group, this company would not have been for sale. I think it was a unique opportunity for us. We thought thoroughly about this opportunity, and we think it can be an historical leapfrog for us in order to achieve another dimension. We will recover. We'll work to recover Bombardier Transportation's EBIT. We'll work in order to achieve all the run rate cost synergies, and this should bring us large values. In terms of numbers, we are targeting to be a double-digit EPS accretion for year two. It's just a symbol to tell you that we are extremely confident in the value creation of this deal. Now, I will hand over to Laurent who will give you a little bit more flesh around the transaction itself.
Good evening to all of you. Starting with the transaction considerations. The price of the acquisition will be in between a floor of EUR 5.8 billion and a cap of EUR 6.2 billion. All of this subject to the Bombardier Transportation account and mechanism at closing. In addition, we will retain the net cash position at closing. We have a specific protection mechanism, which is granting a minimum zero net cash balance as of end of December 2020. Just to illustrate this mechanism, and again, EUR 5.2 billion-EUR 6.2 billion are the magic numbers. If we would have closed end of December 2019, we would have paid EUR 5.8 billion of proceeds to Bombardier Inc. Including in our hands EUR 400 million of net cash, which would be retained by us. All of this is assuming pension liabilities of EUR 900 million.
In terms of multiples, the transaction reflects on a standalone basis, EBIT before synergies between 11% and 12%. After synergies, we are between 6.5%- 7% on the basis of, I would say, steady state margin. This is, as you see, attractive economics if we compare with the sectors, which is between 12% and 13%, and our, as well, multiple, which is in the range of 14% as we speak. Moving to the financing. We have financing which is fully committed. Our primary objective is definitively to keep a very strong balance sheet and of course to retain our Baa2 rating. We have been designing our financing package as such. As you see, EUR 5 billion out of the EUR 5.8 billion-EUR 6.2 billion will be financed with equity component.
Half a billion provided by Bombardier Inc., EUR 2.6 billion-EUR 2.8 billion to CDPQ, and EUR 2 billion which will be raised to the market. The reminder, there will be a new debt and cash for EUR 0.7 billion-EUR 0.9 billion. This package is fully secured at signing of the MOU with a committed bridge facilities for EUR 2.4 billion for the equity to be raised on the market and for the new debt. We are as well, have an agreement for a new RCF of EUR 1.5 billion ensuring sound liquidity moving forward. Again, with this financing package, we retain a very strong balance sheet, which is a top priority for us, but as well, flexibilities to pursue a bolt-on M&A as part of our Alstom in Motion strategy. Moving to the transaction structure.
The transaction structures will take the form of an acquisition of 100% of Bombardier Transport share capital and voting right, which are held as we speak by Bombardier and CDPQ. As we just said, EUR 3.1 billion will come from CDPQ and Bombardier investing in new Alstom shares, which will take the form of a reserve capital increase, which will be completed at closing. As a result, as you see on the right-hand side, CDPQ will become the Alstom first shareholders with 18% of share capital, with two board members and one non-voting board members, together with a 21 months lockup commitment from closing. As you know, CDPQ has a strong record as a cornerstone investor in mobility and infrastructures at large and will be definitely an asset for the further development of Alstom.
Bouygues is fully supportive of the transaction and will retain 10% of the share capital after closing. Let's move to the indicative timetable. Today is the D-Day with the signing of the MOU. As you know, as part of the usual process, we'll be initiating work council consultation procedures before the signings of the shares of the SPA, the Share Purchase Agreement, which is expected to be signed second half of 2020. EGM will approve the reserve capital increase by end October 2020, the right issues will occur post EGM approval and will be subject, of course, to market conditions. Finally, this transaction is, as always, I would say, subject to the clearance of the relevant regulatory authorities, including, of course, the antitrust authorities. We are expecting, we are confident to close this transaction in the first half of 2021. Give the mic back to Henri for the conclusion.
Thank you, Laurent. Again, as a conclusion, I think this is a unique opportunity to accelerate Alstom strategic roadmap in a manner that we could not dream of. I think we are combining this very value-creating acquisition with a growing market. We are investing, I believe, at exactly the right moment in the mobility world. We are acquiring a commercial presence, product, industrial assets. We leverage a large portfolio, and we'll enhance our R&D capabilities. As you know, sustainable mobility requires today increasingly some R&Ds and innovations. We will create value not only by having some synergies, but also by restoring Bombardier Transport full potential, full margin potential. I think it's a win-win-win situation. It will be a win for our customers, which will benefit from better innovations, better products.
Having talked to a number of customers, they are all welcoming this deal, which will enhance our capabilities and enhance Bombardier Transportation capabilities. This will be a value creator for our shareholders and for all the employees, it will give, of course, immense potential and immense opportunities. Thank you for this call. Now we are ready to take your questions, Emmanuelle, Laurent, or myself. Thanks a lot.
Thank you. As a reminder, if you would like to ask a question, please press star one. We will now take our first question from Martin Wilkie of Citi. Please go ahead. Your line is open.
Thank you. This is Martin from Citi. You mentioned in the presentation just a bit about the antitrust dependency. Just from the experience of the Siemens proposed transaction a few months ago, just what pre-work you've done beforehand, just so you could walk through some of the risks or where perhaps there's less risk with this transaction? Thank you.
Thank you. Of course, as you can imagine, knowing what has happened, it was a key question for us. We already talked informally with the Commission. The file is very different from the one with Siemens. By far, the most difficult point with Siemens was signaling. It was very difficult because it was basically the Commission said that there were three main players, Thales, Siemens, and Alstom. The Commission did not want these three players to merge between each other. Here, Bombardier is a relatively small player in Europe in signaling. It's a completely different issue. We don't expect any issue in that respect. In terms of rolling stock, here as well, first, the Commission was much more open at the time on rolling stock. There was an issue on very high speed, but here as well, Bombardier is a much smaller player in very high speed in Europe.
Actually, it only serves the very active market through its consortium with Hitachi. Hitachi is leading the consortium as we speak. It's a small activity. It will be a much simpler project than the one we had with Siemens. We are much more confident, and we have, of course, taken the recs from the Siemens story. I would say that we would like also to discuss extremely rapidly with the commission. We benefit. I remind you, last time when we discussed about Siemens, there was a great level of uncertainty. I think I told you that at the time. It was 20 years since the Commission had not looked at any file in transportation. Here, we are in a different situation.
Commission is extremely knowledgeable about the rail transportation market. We can have a very rapid discussion with the Commission and come to an agreement extremely much faster. Finally, if I may say, it's also an acquisition from Alstom. It will be, from a governance standpoint, much easier where we discuss Alstom and the Commission. It will not be a tripartite discussion, which was more complex at the time.
As a reminder, it is one question per participant. We'll now take our next question from William Mackie of Kepler Cheuvreux. Please go ahead.
Thank you very much. Congratulations. My one question would be relating to the visibility that you have had during your initial due diligence phases on the backlog and the accounts for Bombardier, specifically, what you see in terms of the quality of the future gross margins and profits within the order backlog in the group, and whether you think that the five troubled contracts which they have had to manage in the last 18-24 months are really just the remaining problem, and that as they have suggested in the public, that looking forward, the profit improvement profile for the group, in BT, is all about working through those contracts and the rest of the business looking in pretty good shape?
Thank you. It's difficult for me to go into the details, of course, of Bombardier backlog. We had access to Bombardier backlog. We made some due diligences. Some of the projects we know very well for being part of it. Some of the projects, we were not so familiar with. If I had just to simplify, we have the rolling stock and the rest. The rest is going perfectly well. It's 50% of the business. On rolling stock, as you said, you have five projects. I would say it's a little bit more than five projects per se that we have really looked at. We have looked at the entire portfolio, but we made some thorough review between 10 and 15 projects very thoroughly. Most of these projects are at a turning point. These projects have started to be delivered. Yes, it will take time.
It will take time because it's a large backlog. I don't count on any margin uplift of these projects, particularly. I think these projects now, they need first, because closing on in one year, to stabilize them and to deliver with the current margin in the backlog. We have valued the risks which are still embedded in this backlog, which, as I said, goes a little bit beyond the five projects. We made a cautious analysis. When we said that we want to turn around Bombardier, it's because of the new orders and the new ways of working and so forth, but we are not counting on particularly uplifting the margin of the existing orders. That's why I'll just say that it will take time. Don't expect an immediate margin uplift.
The turnaround of Bombardier, as it was for Alstom, the good comparison is for Alstom, we have gradually improved the margin over the last five, six, seven years, and even. This will be the same for Bombardier. We gradually improve the margin of Bombardier. Of course, I'm not talking about this year margin. This year has been impacted by some very specific events, but as compared to, I would say, a relatively low margin, which was the one of Alstom at the beginning, and then we progressively go back to the 7%-8%.
We will take our next question from Akash Gupta of JP Morgan. Please go ahead. Your line is open.
Hi, Aurelie. I have a question about targeted capital structure. You are targeting that cash position after close of that transaction. Maybe, if you can elaborate why you are not considering to lever a bit up, given recently you raised EUR 750 million at less than 1% interest? Also, a follow-up, is there any breakup fee involved that we should be aware of?
I think that's a lot of questions. The first one, I would say, in terms of balance sheet, and then I will leave it to Laurent, because the balance sheet, as you know, it's one of my strong points. I always said that we want a very strong balance sheet. We are in a large project business. We need to make sure that we are financed by our customers. We need to make sure that we give the necessary sustainability to our balance sheet. Laurent has structured the deal in a way that our, I would say, credit rating remains investment grade at the same notch actually, strong investment grade, and this was the purpose. Even if we have very low interest rates, I think that we are not going to take that advantage, if I may say, I really want to keep this strong.
Maybe, Laurent, you say more on the structure and the solution.
Yeah. You say it all, I think. Akash, good evening. The strategy of the financing is very much to maximize the equity portion. There is a number of merit into it. Number one is a strong balance sheet and keep the visible Baa2 ratio. Number two as well is benefiting from the very strong market momentum we had, in our evolution, which is, of course, translated into our share price. That was the basics, and this is why we have prioritized equity versus bonds, despite the fact that indeed, the money is quite cheap nowadays. To the breakup fees, there was a question on breakup fees?
I think we have a classical breakup fees. What we have mentioned, we have breakup fees at the end, if we cannot achieve the antitrust approval, for example. At the beginning, you know that in the French regulation, we cannot sign actually the SPA now. We need to first consult with the union representative, the works council representative, extremely important, and of course, this is a law and also it's the way to do business. At the end of this process, before signing the SPA, what we are signing an MOU, as you can see in the documentation. Before signing the SPA, we have a breakup fee of EUR 75 million in case we are not signing the SPA. This would be in six months now after having consulted the representative bodies. EUR 75 million.
We will take our next question from Konark Gupta of Scotiabank. Please go ahead. Your line is open.
Thank you. Thanks for hosting the call. I just wanted to understand, you talked about some markets where Bombardier is present and you don't have as much exposure and the opposite. I just wanted to understand, which markets would you need to work more on in terms of getting regulatory approvals and getting union or labor approvals? Which markets you overlap a lot more than the other markets? Which markets are the ones where you need to work with those guys? Thank you.
Thank you for your question. By far, it's Europe where we need to work the most. For the rest of the markets, we don't expect a huge issue. We need to file in a very large number of markets, classically. I would not pinpoint beyond Europe, any specific places. Okay. Next question, please.
We will take our next question from Gael de-Bray of Deutsche Bank. Please go ahead. Your line is open.
Thank you. Good evening, everybody. The first one is obviously a follow-up on the question you just had. Why do you think there will not be any antitrust issues for metros and regional trends in Europe? That's question number one. Question number two is about the price you're going to pay. Between EUR 5.8 billion and EUR 6.2 billion. On top of that, what shall we expect in terms of pension liabilities and in terms of any other kind of retained liabilities, as well as in terms of the transaction costs for the transaction? Thank you.
Give first to Laurent the price, maybe.
Good evening, Gael. The price, as I said, and that is again, the magic numbers, EUR 5.8 billion-EUR 6.2 billion, including all the cash which will be sitting in the balance sheet of Bombardier at the time of closing. If we take, I think that was published as well in the Bombardier presentation half an hour ago, their target is $1 billion of cash sitting in the Bombardier Transportation at end of 2020. Which will be, I would say, belonging to Alstom at closing. That is one important point. We'll see what will be the outcome of the months and year to come until closing. To your second point on pension, indeed, our pension will be the main liabilities that we'll take on board, and we are talking about EUR 900 million.
On antitrust, Gael, we looked at the market share on metro Bombardier, and ourselves, we have a relatively low market share in Europe. It's far from being an issue. On regional train, it's true that we are at a higher market share if you combine regional train both from Alstom and Bombardier. We don't see it as a huge issue. Again, I'm not telling you that there will be no issue at all. I'm telling you that if there are some issues, they would be much easier to solve than the one we had with Siemens. We've looked at all these different platforms, if there are some issues, they would be, I would say, marginal as compared to the deal. Like signaling, the commission wanted us to dispose the equivalent of Alstom in signaling.
They don't want just to have any type of consolidation in signaling because of this sector. If the commission is asking something in a very specific product range and platform, it's not a problem. I would say huge problem per se.
As a reminder, if you would like to ask a question, please press star one. We will now take our next question from Akash Gupta of JP Morgan. Please go ahead. Your line is open.
Hi, thanks for follow-up. My question is about Bombardier joint ventures and particularly the ones in China. Because of this transaction, there may be a change of control clause that might trigger. Is there any risk that your JV partner may have option to buy Bombardier portion in these ventures, and that could trigger this scope of Bombardier Transportation being different at the time of closing than what it is today? Thank you.
Akash, we've looked at that. This is not our anticipation. There are, of course, we are not going into all the details of all the clauses and so forth. In China, anyhow, it's a question of change of control or not. You need to be welcome to work in China. We will work on that, and we don't see any reason why the policy of China will change because it's Alstom and not Bombardier. We don't expect a major issue there.
We will take our next question from William Mackie of Kepler Cheuvreux. Please go ahead. Your line is open.
Yeah, good evening. Thank you again for the follow-up. Can we go back to your estimates for the synergies from the transaction? Could you just walk us through your expected costs to realization of those synergies over the next four to five years? Put another way, what assumptions have you incorporated within your calculation of the EUR 3 billion NPV related to the combination of the companies?
Good evening, Will. Getting to the bottom of your question, the estimated, I would say, integration transformation also, to in cost is around EUR 400 million, so i.e., one year of run rate of synergies. This is what we have assumed in our overall synergies value creation. If I get into the buckets of these synergies, procurement represents a good third of the synergies, and there is limited cost associated to it, obviously, because it is a volume game. Everything which is product related around the design, the project management, the platforming, represents as well a good 25% of what we see in terms of synergies. R&D, G&A is pulling on R&D projects and of course more efficiencies in terms of the support function. Finally, there is some synergies in terms of industrial elements.
All of this, in terms of this one year of transformation cost, includes as well the IT integration and some of the process, I would say, deployment that we will basically enable and deploy in the years to come with Bombardier.
We will take our next question from Guillermo Peigneux of UBS. Please go ahead. Your line is open.
Hi, good evening, gentlemen. I hope you can hear me. The question that I have is related to your working capital expansion plans, whether with the complexities around this, actually you may have to defer some of those expansion plans that you basically have on the working capital as we speak. Obviously, a similar question regarding to Bombardier. Are you aware of any plans of both actually either new CapEx or new plans being deployed by Bombardier and similarly, any potential working capital expansion plans that they may have in front? Thank you.
Good evening, Guillermo. Thanks for your question. On the working capital on the Alstom side, no change compared to the latest discussion we had for 2019, 2020 and 2021. No surprise on this. If I look at the Bombardier side, in terms of CapEx, the footprint is existing, so there is no thing as major CapEx to be planned in the next years. We will have ample capacities to serve the booming market we have. In terms of working cap, there is definitely, I would say, expected deliveries in the year 2020 for Bombardier, which should unwind the working capital as of end of 2019. This is what we are expecting in the 12-18 months to come.
Thank you for your time. Thank you for your attention tonight. We'll be happy to talk soon to update you on this transaction.
Thanks a lot, and talk to you soon. Bye-bye.