56
ACTIVITY REPORT 2016/17

ACTIVITY REPORT 2016/17 - Alstom R… · In the face of competition from new mobility solutions ... The future of rail transport depends on the industry’s ... network. And let’s

Embed Size (px)

Citation preview

ACTIVITY REPORT 2016/17

CONTENTS

Attractive, digital, accessible, clean, efficient, integrated and agile — p. 01

For our customers — p. 44For our employees — p. 46For the environment — p. 48For local communities — p. 50

“We are on track towards smart mobility.”Interview with Henri Poupart-Lafarge, Chairman and Chief Executive Officer of Alstom — p. 10Board of Directors — p. 13The Executive Committee looks back on 2016 — p. 142016 in figures — p. 162020 strategy: Alstom pursues its transformation — p. 18In pictures: the highlights of the year — p. 20Innovation drives our growth — p. 26

CHALLENGES

COMMITMENTS

AMBITION

WHAT WILL RAIL TRANSPORT BE LIKE IN THE FUTURE?

A RESPONSIBLE COMPANY

SETTING THE STANDARD IN THE MARKET

1

Overview: the most complete range of solutions in the market — p. 28Rolling stock: reinventing mobility — p. 30Signalling: improving traffic flow — p. 34Services: custom support — p. 37Systems: increasing efficiency — p. 40In pictures: state-of-the-art solutions — p. 42

SOLUTIONSAPPLYING EXPERTISE TO MEET CUSTOMER NEEDS

2

3

WHAT WILL RAIL

TRANSPORT BE LIKE IN

THE FUTURE?

CHALLENGES

01

ATTRACTIVE DIGITAL ACCESSIBLE CLEAN EFFICIENT INTEGRATED AGILE

ATTRACTIVEIn the face of competition from new mobility solutions

such as ride sharing, car pooling and electric vehicles, rail transport will need to further improve passenger comfort

to boost its appeal.

Everything about Alstom’s products – from initial design to subsequent services – is conceived to enhance the

passenger experience through features like wide windows, air conditioning, natural on-board lighting, automatic sliding

doors, real-time information and more.

CHALLENGES

0302

DIGITALNew information and communication technologies have ushered rail transport into the digital age with a focus on three priorities:

optimising operations, improving passenger services and safeguarding information systems.

Alstom’s range of solutions incorporates the latest in digital technology to enhance operational performance and improve

passenger connectivity. The development of HealthHub solutions and the recent acquisition of Nomad Digital have

strengthened this approach. Alstom understands the security issues associated with the use of digital technology

and has made cybersecurity a cornerstone of its research and development strategy.

CHALLENGES

0302

ACCESSIBLEAround the world, one of the main challenges in rail transport stems from the need to improve train accessibility for passengers with reduced mobility.

Such measures concern people with disabilities, seniors, expectant mothers, families with children and passengers carrying heavy luggage.

Alstom ensures improved transit and access for all passengers aboard its trains. It integrates the needs of both current and future generations from the outset, during the design phase.

Low floors, interior layout, wide doorways and in-station information systems are all good examples of this approach.

0504

CHALLENGES

ACCESSIBLE CLEANThe world’s population is expected to reach 9.7 billion by 2050,

by which time 70% of people will live in urban areas1. Sustainable modes of transport will be crucial in catering to mobility needs while

protecting the environment.

Rail transport is a low-carbon solution that by definition helps safeguard the environment. Alstom continues to push

the boundaries of responsible mobility by developing emission-free solutions like regional trains powered

by hydrogen fuel cells. The Group has committed to achieving a 20% reduction in the energy consumption

of its transport solutions by 2020.

1- Source: United Nations.

0504

CHALLENGES

06

CHALLENGES

EFFICIENTRail transport suffers from relatively high per-kilometre costs due

to the need for infrastructure investment. Greater economic efficiency is necessary in order to continue providing a service

that can compete with rival offerings.

Alstom continues to improve the efficiency of its railway systems throughout their lifecycle by standardising

its products and services, reducing the energy consumption of its trains, developing predictive maintenance

and devising smart on-board solutions.

INTEGRATEDA seamless intermodal transition is a decisive factor in enhancing

the appeal of passenger and freight transport not just in cities and regions but on a national and international level. Multimodal solutions

will be more prevalent in the future as a result.

Alstom develops powerful digital solutions to facilitate multimodal management and improve service continuity

for passengers. Part of this process includes designing new urban mobility solutions such as electric buses and exploring autonomous shuttle systems through partnerships to offer

effective last-mile coverage.

0706

CHALLENGES

EFFICIENT

SETTING THE STANDARD IN THE MARKET

0208

AGILEPopulation growth and trade development are increasing demand

for passenger and freight mobility solutions. These needs vary from one country to the next according to the available infrastructure, railway culture, economic considerations and strategic choices.

The future of rail transport depends on the industry’s ability to meet this multifaceted demand.

Alstom has established an extremely close relationship with its customers and has a keen understanding of the needs of

operators and passengers, both now and in the future. Its range of rail solutions is the largest in the market and is tailored to a diverse array of needs worldwide.

CHALLENGES

09

SETTING THE STANDARD IN THE MARKET

1AMBITION

09 Activity report 2016/17 — ALSTOM

10ALSTOM — Activity report 2016/17

Interview with Henri Poupart-Lafarge, Chairman and Chief Executive Officer of Alstom

“We are on track towards smart mobility.”

AMBITION

“OUR PERFORMANCE TODAY GIVES US

THE COMMERCIAL LEVERAGE TO

WIN CONTRACTS TOMORROW.”

11 Activity report 2016/17 — ALSTOM

was also marked by a number of key project deliveries. The most symbolic was undoubtedly the Rio de Janeiro tramway, which began running a few months before the Summer Olympic Games. The project was implemented in a complex environment and was a huge operational success, not to mention a real source of pride for our employees. I could list many other examples

around the world including tramways in Algeria, urban signalling systems in China, regional trains in France, Italy and Germany. The first trains from our ground-breaking project in South Africa have also entered service.

Alstom aims to become the preferred partner for transport solutions by 2020 and has launched a far-reaching strategy to achieve this goal. How are things progressing?Henri Poupart-Lafarge — Our efforts have begun to pay off on every front. The Group’s globalisation is moving along at a healthy pace and is vital in meeting the needs of our customers. Last year, we also began construction of two new manufacturing sites in South Africa and India. We have now completed the renewal of our rolling stock platforms with the launch of new regional and very high-speed trains. We continued to expand our range of solutions in order to offer customers comprehensive mobility services. Digitalisation is an integral part of this approach, as seen in the acquisition of Nomad Digital, a global leader in connectivity solutions for the railway industry.

2016/2017 was all about the “New Alstom” and its focus on the rail indus-try. How would you sum it up?Henri Poupart-Lafarge — 2016/17 was a very positive year, during which we continued to serve our customers, implement our strategy and move closer to our targets. We’ve seen real momen-tum, especially commercially, with a high order intake around the world. One example that springs to mind is the con-tract we signed in August with American operator Amtrak for a new-generation of high-speed train: Avelia Liberty. The order marks our entry into the North American high-speed market. It also reflects our capacity to innovate, to meet the needs of our customers; energy effi-ciency, lower total cost of ownership, optimal passenger experience and more. Another key contract was the extension of the red line for the Dubai metro, which will link the city to the Expo 2020 site. The project has a tight schedule, since trains are due to begin running on the line in time for the Universal Exhibition. Maintaining a healthy level of orders in the face of political and economic ups and downs is also a broader reflection of our market stability.

What were the year’s highlights?Henri Poupart-Lafarge — Beyond our commercial activities, the year

“2016/17 WAS A VERY POSITIVE YEAR, DURING WHICH

WE CONTINUED TO SERVE OUR CUSTOMERS, IMPLEMENT

OUR STRATEGY AND MOVE CLOSER TO OUR TARGETS.”

12ALSTOM — Activity report 2016/17

2016/17 was a year rich in innovation, which is a pillar of the Alstom strategy leading up to 2020. Henri Poupart-Lafarge — That’s right. Key examples include the launch of Coradia iLint, our zero-emission train, and of Mastria, a multimodal centre to optimise the traffic of an entire transport network. And let’s not forget Aptis, our first offer for the electric bus market. Other highlights include our partnership with SNCF to create a new generation of high-speed trains and the first contract won in Nice for SRS, our catenary-free ground-based static charging system. Our product platforms have also been revamped to reduce total cost of own-ership, increase energy efficiency by 10-15% and make the passenger expe-rience an integral part of our solutions.

Operational and environmental per-formance is another cornerstone of the Alstom strategy. What sort of progress has been made in this respect? Henri Poupart-Lafarge — Through-out 2016, we continued to improve our operational efficiency in terms of ensuring timely deliveries, reducing our costs of non-quality and increasing the energy performance of our opera-tions and products. We are pursuing the development of our information system backbone to foster collabora-tion and improve our global efficiency.

A word on people? Henri Poupart-Lafarge — Every year we reinforce the safety of our workplaces. That is our first priority. Diversity also remains a key point of focus in every sense of the word — especially cultural diversity, in line with our globalisation strategy. Individual involvement in the future of the Group is equally important. We value our employees. Our deci-

sion to allocate free shares to everyone aimed to reflect that appreciation and involve them directly in our development.

Let’s talk about the future. How do you view Alstom’s market going forward? Henri Poupart-Lafarge — It is a grow-ing market and there is no denying the dynamism, especially with respect to

“WE MUST MAKE DIGITAL SOLUTIONS AN INTEGRAL PART OF

OUR ORGANISATION, OUR WORKING METHODS AND OUR PRODUCTS.”

AMBITION

13 Activity report 2016/17 — ALSTOM

urban perspectives. Mobility remains the number-one priority for local authorities as they seek to rise to sustainability challenges. Opportuni-ties abound, especially in emerging countries, but also in Europe, which is our main market. Whether in urban transport or mainline services, the rail industry is increasingly global and competitive. It has also been hugely impacted by digitalisation, which affects structures (new operators and growth in multimodal solutions), offerings (connected products) and operations (predictive maintenance and traffic optimisation). We are on track towards “smart mobility”, which taps the full potential of information and communication technology to make transport more efficient, more attractive and more affordable, as well as safer and greener.

In this context, what are your priorities for the next few years?Henri Poupart-Lafarge — First and foremost, we need to continue to implement our 2020 strategy. That is the foundation for our future devel-opment. We have come a long way but there is still a lot more to do. As I mentioned earlier, digitalisation is an underlying trend that is unavoidable and has a huge impact on our business. Which is why we must make it an integral part of our organi sation, our working methods and our products. This trend should also lead us to think about our strategic positioning. We need to seize the opportunities unlocked by the emergence of smart mobility by anticipating the future profile of operators. Some will no doubt be mul-tiservice, multimodal providers. It is up to us to adapt our offering to meet their needs. Increasingly strong competi-tion will also require us to expand our workforce and establish partnerships to better serve our customers.

BOARD OF DIRECTORS

Henri Poupart-Lafarge Chairman and Chief Executive Officer of Alstom

Candace K. Beinecke Chair of Hughes Hubbard & Reed LLP

Olivier Bourges General Counsel of PSA Peugeot-Citroën

Olivier Bouygues Deputy Chief Executive Officer of Bouygues

Bi Yong Chungunco Head of Divestments of LafargeHolcim

Yann Delabrière Chairman of the Board of Directors of Faurecia

Pascal Faure Director appointed by the French State

Head of the Directorate General for Enterprise (DGE)

Gérard Hauser Director of companies

Sylvie Kandé de Beaupuy Group Ethics & Compliance Officer of Airbus

Klaus Mangold Chairman of the Supervisory Board

of Rothschild GmbH (Frankfurt)

Philippe Marien Chief Financial Officer of Bouygues Group

Géraldine Picaud Chief Financial Officer of Essilor Group

Sylvie Rucar Advisor

Governance

14ALSTOM — Activity report 2016/17

“2016 was an extremely dynamic year. We continued to roll out our strategy and better serve our customers while seizing opportunities in a fast-growing market.”

HENRI POUPART-LAFARGEChairman and Chief Executive Officer

“We stepped up operational performance by increasing our industrial reach in line with market demand and streamlining working methods between our different sites.”

THIERRY BESTChief Operating Officer

“With 5% organic growth, an improved operating margin and cash-flow generation, we drew closer to reaching our 2020 objectives in 2016. We will continue to invest selectively as opportunities arise.”

MARIE-JOSÉ DONSIONSenior Vice-President Finance

“We made great strides in transforming our company thanks to the involvement of our employees. 2016 was the year of the new Alstom.”

THIERRY PARMENTIERSenior Vice-President Human Resources

“With an impressive haul of contracts such as the extension of the Dubai metro, 2016 confirmed the outstanding growth of the MEA region, where sales have strongly increased in the past three years.”

GIAN-LUCA ERBACCISenior Vice-President Middle East & Africa

“In 2016, we continued our compliance programme while managing contractual risks and enhancing our legal expertise to adapt to more stringent global regulations.”

PIERRICK LE GOFFGeneral Counsel

The Executive Committee looks back on 2016

GovernanceAMBITION

15 Activity report 2016/17 — ALSTOM

“With a 25% staff increase and the expansion of our industrial capacity, Alstom reinforced its presence in the Asia Pacific region in 2016 to better meet the needs of our customers.”

JEAN-FRANÇOIS BEAUDOINSenior Vice-President Asia Pacific

“By honouring our commitments and through successful contract execution in France and around the world, we succeeded in strengthening our relationship with customers. New strategic orders towards the end of the year will secure the future of our design and production sites.”

JEAN-BAPTISTE EYMÉOUDSenior Vice-President France

“Innovative solutions for the region’s population included the first tramway in Latin America, which was brought into service in time for the Olympic Games in Rio, revolutionising the city centre.”

MICHEL BOCCACCIOSenior Vice-President Latin America

“The creation of Digital Mobility marks a new era for Alstom in providing solutions for emerging smart cities and supporting customers by ensuring more efficient transport solutions.”

PASCAL CLÉRÉSenior Vice-President Alstom Digital Mobility

“2016 was the year of landmark contracts in North America, with long-term infrastructure maintenance agreements and new high-speed trains. These projects will continue to drive and sustain transformation in the region.”

JÉRÔME WALLUTSenior Vice-President North America

“2016 reflected outstanding team spirit in Europe, which led to solid financial and operational results and ongoing positive EHS performance.”

ANDREAS KNITTERSenior Vice-President Europe

16ALSTOM — Activity report 2016/17

2016 in figures

POSITIONS

Growing globalisation

AMERICAS

5,200 EMPLOYEES

2016/17 ORDERS €10.0 BILLION

EUROPE

51%

MIDDLE EAST & AFRICA

14%

ASIA PACIFIC

6%

AMERICAS

29%

AMBITION

17 Activity report 2016/17 — ALSTOM

EUROPE

20,700 EMPLOYEES

MIDDLE EAST & AFRICA

2,900 EMPLOYEES

ASIA PACIFIC

4,000 EMPLOYEES

32,800 EMPLOYEES WORLDWIDE

105 SITES

IN

60 COUNTRIES

€7.3BILLION SALES

€289MILLION

NET INCOME

€208MILLION

NET DEBT

5.8%OPERATING MARGIN*

* adjusted EBIT margin.

18ALSTOM — Activity report 2016/17

CUSTOMER-FOCUSED ORGANISATION

2020 GOAL : Reinforce Alstom’s worldwide presence and better meet the needs of customers in local markets.

PROGRESS: With 105 sites in 60 countries, Alstom has established a presence that is both local and global. This local presence promotes long-term partnerships with clients and increases flexibility and efficiency. In 2016, Alstom grew its network in India with the expansion of the Coimbatore and Sri City sites and construction of a new plant in Madhepura. It also extended its reach in other countries by doubling the size of the Katowice site in Poland, building a manufacturing site in Dunnottar, South Africa, and expanding its Hornell site in the United States.

NEXT MILESTONES: Continue to strengthen the Group’s indus-trial presence through partnerships, joint ventures and individual initiatives while fostering synergies between sites and developing everyday customer relations.

A COMPLETE RANGE OF SOLUTIONS

2020 GOAL : Provide the most comprehensive range of systems, signalling equipment and services in each area of the rail industry.

PROGRESS: Alstom has continued to expand its range of solutions by seeking the best possible balance between standardisation and flexibility. New regional and high-speed platforms have been launched after tram and metro platforms. Contracts signed in Dubai and Sydney have strengthened its position in systems, while the acquisition of General Electric’s signalling assets has increased the scope of its signalling busi-ness. Alstom has continued to support its customers by offering them a range of high-quality services.

NEXT MILESTONES: Further expand the range of solutions to meet the current and future needs of cus-tomers while exploring new, increasingly connected mobility solutions.

Strategy

Alstom has reached the midway mark on its roadmap to become the preferred partner for transport solutions in line with 2020 targets.

2020 STRATEGY

Alstom pursues its transformation

AMBITION

19 Activity report 2016/17 — ALSTOM

VALUE CREATION THROUGH INNOVATION

2020 GOAL : Innovate to achieve differentiation and gain a competitive edge.

PROGRESS: Alstom has structured an innovation process designed to identify and nur-ture the most promising ideas in line with the Group’s innovation strategy. Due to ongoing R&D investment and partnerships, Alstom unveiled three new solutions for 2016/17: the zero-emission Coradia iLint regional train, the electric bus Aptis and the multimodal manage-ment system for urban transport Mastria.

NEXT MILESTONES: Adapt innovation strategy to market developments and improve digital solu-tions to boost internal productivity while developing a range of new solutions and services.

OPERATIONAL AND ENVIRONMENTAL EXCELLENCE

2020 GOAL : Ensure flawless contract execution and reduce the carbon footprint of products and operations.

PROGRESS: Alstom has already standardised plat-forms for rolling stock. Performance in terms of quality, costs and lead times has improved and working methods and resources between different sites are now being streamlined. The latest solutions offer 8-10% lower energy consumption, already midway to meeting the target for 2020. Alstom achieved its 2020 goal of a 10% reduction in its plants in March 2017, ahead of schedule.

NEXT MILESTONES: Improve the overall efficiency, streamline working methods, continue to simulate energy consumption improvements for solutions under development and pursue the ISO 14001 certification programme.

DIVERSE AND ENTREPRENEURIAL PEOPLE

2020 GOAL : Strengthen the Alstom culture by encouraging entrepreneurial spirit and diversity in every shape and form.

PROGRESS: Alstom’s move to renew its focus on the transport business, deploy its leadership model and implement the share allo-cation programme launched in 2016 has strengthened employees’ sense of belonging. The Group has continued to implement initiatives to promote ethics, cultural diversity and gender balance.

NEXT MILESTONES: Pursue targets for integrity and ethics, promote recruitment of local talent and encourage initiatives to support women in the company.

20ALSTOM — Activity report 2016/17

UNITED KINGDOMSIGNALLING

Major contract to overhaul the entire signalling system for London’s Great Western Main Line.

IN PICTURES

The highlights of the year

Highlights

CUSTOMER-FOCUSED ORGANISATION

A COMPLETE RANGE OF SOLUTIONS

VALUE CREATION THROUGH INNOVATION

OPERATIONAL AND ENVIRONMENTAL EXCELLENCE

DIVERSE AND ENTREPRENEURIAL PEOPLE

AMBITION

21 Activity report 2016/17 — ALSTOM

FRANCEINNOVATION PARTNERSHIP

Launch of the first innovation partnership with SNCF to create the next generation of the TGV.

BRAZIL – RIO DE JANEIROTRAMWAY SYSTEM

New tramway system for Rio delivered in time for the Olympic Games. The Alstom Citadis carries the Olympic torch.

22ALSTOM — Activity report 2016/17

Highlights

ITALY AND NETHERLANDSREGIONAL TRAINS

150 new regional trains for Trenitalia and 79 next-generation Intercity trains for NS.

UNITED ARAB EMIRATES – DUBAI METROS

Extension of the Dubai metro red line for RTA through the Expolink consortium. The extension will link the metro to the World Expo site.

AMBITION

23 Activity report 2016/17 — ALSTOM

WORLDWIDE FREE SHARES

Alstom rewards employee commitment with the allocation of 30 free shares in the next two years.

UNITED STATESHIGH-SPEED TRAINS

Historic high-speed train contract with Amtrak. Avelia Liberty is the latest in Alstom’s Avelia range of high-speed trains.

ACQUISITIONS

MOROCCO ACQUISITION

Alstom acquires Nexans shares to become the exclusive owner of Cabliance.

SOUTH AFRICAACQUISITION

Alstom acquires majority stake in CTLE, which specialises in train modernisation, renaming the company Alstom Ubunye.

24ALSTOM — Activity report 2016/17

FRANCESUBURBAN TRAINS

Alstom-Bombardier consortium receives order for new-generation trains for lines D and E of the SNCF network in Île-de-France.

Highlights

GERMANYZERO-EMISSION TRAIN

First successful test run at 80 km/h of the world’s only fuel cell passenger train Coradia iLint in Salzgitter.

AMBITION

25 Activity report 2016/17 — ALSTOM

TAIWAN – KAOHSIUNG TRAMWAYS AND ON-BOARD ENERGY STORAGE

Alstom wins contract to supply 15 Citadis X05 trams to the city of Kaohsiung including Citadis Ecopack on-board energy storage system.

CONNECTIVITY ACQUISITION

INVESTMENTS AND ACQUISITIONS

NEW MOBILITYINVESTMENT

Alstom goes digital with the acquisition of Nomad Digital, a world leader in fleet and passenger connectivity solutions for the rail industry.

Alstom invests in EasyMile, an innovative startup developing the EZ10 autonomous electric shuttle.

26ALSTOM — Activity report 2016/17

Our customers’ request for performanceIn the face of growing demand for mobility solutions, they need to

offer passengers means of transportation that are comfortable, reliable, safe and attractive. Yet they also need to optimise costs

to ensure a sustainable business model. How can we help?

Innovation is our answerAt Alstom, we innovate by anticipating the needs of customers, operators and passengers. Our innovation process is designed to

nurture good ideas and help them grow. Our R&D strategy provides the industrial framework to turn these ideas into innovative solutions

for our customers’ projects. Innovation also means staying a step ahead in an increasingly competitive environment. It means using

state-of-the-art methods and tools in design and production to ensure the most competitive prices.

A joint effortBecause interaction fuels creativity, Alstom cultivates an open

approach to innovation through partnerships with universities and research centres. This has led to joint programmes including work

with INRIA to develop digital solutions for energy and mobility challenges. It has fostered public/private research initiatives like

SystemX (digital solutions for future transport services), SuperGrid (new power conversion technologies) and Railenium (railway system

technologies). Alstom’s proactive approach extends to suppliers, startups, customers and operators as part of a complete ecosystem that allows the Group to develop or acquire the core technologies

needed to construct its comprehensive range of solutions. The same dynamic is embodied internally by the annual “I NOVE YOU” competition, which recognises the achievements of Alstom employees

who have put forward the most innovative projects.

Innovation drives our growth

ProjectionAMBITION

27 Activity report 2016/17 — ALSTOM

APPLYING EXPERTISE TO

MEET CUSTOMER NEEDS

2SOLUTIONS

28ALSTOM — Activity report 2016/17 28ALSTOM — Activity report 2016/17

Alstom develops and markets the world’s most comprehensive range of railway systems, equipment and services in all aspects of the industry. Its solutions include rolling stock, signalling, services and infrastructure, provided separately, bundled or fully integrated.

SOLUTIONS

OVERVIEW

The most complete range of solutions in the market

Tramways, tram-trains, metros, suburban, regional and high-speed trains and locomotives.

URBAN & SUBURBAN MOBILITYThe Citadis range of city-centre tramway solutions also includes tram-train services (Citadis Dualis) and light rail vehicles (Citadis Spirit). Translohr tyre-based trams are an ideal solution for cities with a specific topography. Alstom also supports large-scale mobility with its range of Metropolis metros and X’Trapolis suburban trains for commuters.

MAIN LINES Coradia trains are top-selling regional transport solutions that can be tailored to a wide array of different technical specifications. The Avelia range provides high-speed solu-tions in line with the latest passenger expectations.

LOCOMOTIVES Alstom offers a comprehensive range of Prima locomotives adapted to a wide range of operating conditions for freight and passenger transport.

ROLLING STOCK

Control centres, security, passenger information, trackside signalling solutions and interlocking.

Alstom develops signalling solutions for urban environ-ments and main lines that enable operators to ensure safe, seamless services. Examples include Iconis control centres, Urbalis CBTC solutions, the Atlas ERTMS range for network interoperability, trackside signalling equipments, interlocking solutions and on-board information systems.

SIGNALLING

19%of sales

43%of sales

29 Activity report 2016/17 — ALSTOM

20%of sales

Maintenance, modernisation, spare parts, repairs and support services.

Alstom provides maintenance for all types of trains, infrastructure and signalling systems.Services also include upgrades for trains in areas such as design, components, traction systems and eco-driving sup-port, along with modernisation options for infrastructure and signalling systems.Alstom provides parts supply services and repairs for all types of trains, made by any manufacturer. Customer support services include a wide range of main-tenance training programmes.

SERVICES

Infrastructure and integrated systems.

As the complexity of rail systems continues to grow, oper-ators often seek comprehensive solutions to meet their needs. Alstom can draw on its full range of cross-functional expertise as a railway manufacturer to cover every aspect of urban rail systems, including rolling stock, signalling, infrastructure and services. Alstom’s expertise in infra-structure covers both electrification and track works as well as electromechanical equipment for tunnels, stations and depots.

SYSTEMS

18%of sales

30ALSTOM — Activity report 2016/17

ROLLING STOCK

Alstom draws on its technological expertise and innovative capabilities to meet the current and future needs of operators and passengers. Its solutions cover a whole range of services, including urban transit, mainline travel, regional transport, mining networks and freight.

Reinventing mobility

CUSTOMER-FOCUSED SOLUTIONS Transport authorities and operators need safe, reliable transport solutions that are adapted to the expectations of passengers and easy on their pocket. Alstom rises to these challenges daily, using product platform standardisation to continuously improve competitiveness, quality and lead times. Alstom pours significant resources into improving the passenger experience and optimising the total cost of ownership by reducing energy consumption and maintenance costs.

SOLUTIONS In the heart of the city… Alstom’s Citadis X05, the latest addition to the Citadis tram range, is a fresh take on a classic form of transport that builds on a successful 15-year track record. It is a flexible solution that offers an array of customisation options that showcase

energy efficiency, passenger comfort and connectivity. The range is enhanced by the Translohr tyre-based trams of NTL, which are designed to meet the needs of tram systems with specific geographic requirements. In line with the ongoing drive to innovate, Alstom has also upgraded its Metropolis metro solutions to enhance passenger comfort while optimising operating costs.

… and on the outskirts Urban growth demands alternatives to road transport to ensure more fluid movement in and around cities. Alstom’s Citadis Dualis tram-train can travel seamlessly between tram tracks and the regional rail network, while Citadis Spirit offers a light rail vehicle able to pro-vide the mobility and flexibility needed in North American cities. X’Trapolis mean-while provides high-capacity solutions for transport to and from suburban centres.

ALSTOM USES PRODUCT PLATFORM STANDARDISATION TO CONTINUOUSLY IMPROVE COMPETITIVENESS,

QUALITY AND LEAD TIMES.

SOLUTIONS

31 Activity report 2016/17 — ALSTOM

1. X’Trapolis Mega for PRASA in dynamic tests – South Africa. 2. Citadis in circulation on line 4 in Montpellier – France. 3. Prima M4 locomotive in operation – Kazakhstan.

1.

2.

3.

KEY FIGURES

2,300CITADIS TRAMWAYS SOLD WORLDWIDE

17,000ALSTOM METRO CARS RUNNING EVERY DAY

2,400CORADIA TRAINS SOLD

940AVELIA TRAINS IN COMMERCIAL SERVICE

32ALSTOM — Activity report 2016/17

Regional travel… With its improved modularity, new design, optimal passenger experience, weight savings and reduced costs, the new generation of Coradia regional trains has everything it takes to write the next chapter in a commercial success story spanning more than 30 years. While the range continues to offer specific technical configurations adapted to the needs of each operator, a drive to improve stand-ardisation has delivered a single, versatile platform on which to build both intercity and regional trains. In 2016, Alstom also launched Coradia iLint, an emission-free train for non-electrified lines, powered by fuel cells.

… and the need for speed Avelia Liberty is the latest incarnation in Alstom’s Avelia high-speed range, which already features flagships like Pendolino, Euroduplex and AGV. Based on proven technology, Avelia Liberty combines flex-ibility and comfort with accessibility and reduced operating costs.

Passengers and freight The highly modular range of Prima locomotives offers several configurations covering everything from passenger transport to shunting and freight loco-motives for the mining industry.

ALSTOM IS FULLY COMMITTED TO RAIL TRANSPORT IN THE DIGITAL AGE AND CONTINUES TO STEP UP ITS EFFORTS TO DEVELOP TRAINS

THAT OFFER IMPROVED CONNECTIVITY TO ENHANCE THE SAFETY AND EXPERIENCE OF PASSENGERS.

1. AGV for NTV in Milan central station – Italy. 2. Permanent magnet motor for Citadis Spirit at the Hornell site – USA. 3. A passenger gets off the Amsterdam metro – Netherlands.

Rolling stock

1. 2.

3.

SOLUTIONS

33 Activity report 2016/17 — ALSTOM

“Working together in an open and transparent

fashion, pooling experiences to successfully

complete the design.”

CUSTOMER STORY

In July 2016, the Dutch rail operator NS entrusted Alstom with the manufacture of 79 Coradia Intercity next generation trains. Roel Okhuijsen, NS director for new rolling stock, discusses the challenges of the contract.

In what context was the order made? Roel Okhuijsen — The number of passengers is increasing on our network. We want to provide them with a transport offer that is both adequate and comfortable. Hence the decision to acquire new trains while simultaneously modernising our old fleet.

What are the determining factors for passengers? R.O. — It’s important to be able to meet the specific needs of different user groups. We will therefore be providing areas dedicated to silence, work or socialising. We also want to offer a quality environment, with Wi-Fi and USB sockets at each seat and extra luggage racks. Accessibility is a major factor thanks to a low floor access, as is the design, which gives the feeling of being on a high-speed train even at 200 km/h.

What is the secret of successful collaboration between operator and manufacturer? R.O. — Working together in an open and transparent fashion, pooling experiences to successfully complete the design and develop it still further, but also knowing how to expose problems from the start to be able to solve them without wasting time.

What are the next steps? R.O. — We are currently finalising the design aesthetics with Alstom and will go on to make our design choices by the end of 2017. At NS, we are also preparing maintenance and operational availability to assure a smooth introduction.

34ALSTOM — Activity report 2016/17

SIGNALLINGImproving traffic flow

A CUSTOMER-FOCUSED POLICY From signalling to digital mobilityOperators are constantly seeking new ways to boost operating efficiency to offset growing demand for mobility solutions. Alstom understands these challenges and has strengthened its range of signalling solutions through innovative digital breakthroughs. This has led to improvements in availability (predictive maintenance technology and advanced asset/energy management), capacity (autonomous systems and mul-timodal network management solutions), security (transport system protection against cyberattacks) and passenger experience (Wi-Fi solutions through the acquisition of Nomad Digital).

SOLUTIONS Increased capacity in cities Urbalis 400 is already in service in 15 countries around the world. Alstom has built on this success with Urbalis Fluence, a pioneering train-centric CBTC system that features on-board intelligence. The ATP system Pegasus 101 meanwhile provides a solution tailored to the needs of tramways. Alstom has also launched the Optimet product range developed by Metrolab to improve the flow of trains and pas-sengers in metro systems. The range features innovative real-time video analysis to estimate platform traffic, along with visuals to assist connecting passengers.

Crossing borders Growing demand for cross-border mobility requires infrastructure manag-ers and train operators to provide the best possible interoperability between rail networks. Alstom has risen to this key challenge with Atlas, its ERTMS signal-ling and network management solution.

Operation under control Alstom’s Iconis control centres allow operators to improve traffic flow, provide passengers with real-time infor-mation, manage infrastructure and ensure security in stations and on trains. Advanced monitoring and control functions can anticipate and deal with incidents on both urban and main lines, catering to local networks as effectively as nationwide services.

Optimising freight transport For freight and mining railways, Alstom provides ITCS, a GPS-based solution particularly suited to challenging weather conditions, as well as a wide range of trackside equipment and on-board systems.

Alstom’s state-of- the-art signalling solutions allow operators to ensure the highest standards in safe, seamless travel with urban and mainline solutions that meet the specific needs of each operation environment.

SOLUTIONS

35 Activity report 2016/17 — ALSTOM

1. Driver’s cab of AGV on Naples-Milan line – Italy. 2. Control centre in Copenhagen – Denmark. 3. Passenger information in Budapest metro – Hungary.

1.

2.

3.

KEY FIGURES

38ALSTOM’S MARKET SHARE IN ERTMS LEVEL 2 SIGNALLING SOLUTIONS IN SERVICE (KM EQUIVALENT)

2,000 KMOF METRO LINES EQUIPPED WITH URBALIS BY 2018

100ICONIS CONTROL CENTRES AROUND THE WORLD

50MARKET SHARE FOR ON-BOARD WI-FI WORLDWIDE

36ALSTOM — Activity report 2016/17

1. On-board ETCS solution for very high-speed trains. 2. An Alstom employee working on the Banedanmark signalling project – Denmark.

Signalling

GROWTH IN SIGNALLING SOLUTIONS HAS MADE CYBERSECURITY AN INCREASINGLY IMPORTANT ISSUE, WHICH IS WHY ALSTOM CONTINUES TO STRENGTHEN

ITS EXPERTISE IN THE FIELD.

1. 2.

SOLUTIONS

37 Activity report 2016/17 — ALSTOM

SERVICES

Alstom offers a complete range of customised services including maintenance, modernisation, parts & repairs and support. All of which ensure operators the highest level of availability for their fleets, infrastructure and signalling systems.

Custom support

A CUSTOMER-FOCUSED POLICY All transport operators need to strike a balance between improving train availability and optimising maintenance costs. To help them rise to the challenge, Alstom continues to build on its range of services with a specific focus on collecting and analysing operating data to better schedule repairs.

SOLUTIONS Well-planned operationsAlstom factors in all service requirements when designing its solutions to facilitate maintenance operations throughout the product lifecycle and achieve cost sav-ings of 10-20%. Access to components is made easier and tasks optimised to ensure operators the highest standards in fleet availability.

Long-term efficiencyAlstom provides preventive and corrective maintenance in its own depots and those of its customers for all types of train and rail infrastructure. The HealthHub predictive maintenance solution provides a complete package combining the expertise of local teams with the power of digital technology.

A new lease of lifeThe relatively long service life of railway equipment brings a need to anticipate gradual upgrades to meet the latest passenger expectations, comply with more stringent regulations, adapt to new environmental concerns and offset the rising operating and maintenance

Repair and maintenance on the roof of the Coradia Polyvalent by Alstom staff – France.

38ALSTOM — Activity report 2016/17

costs of ageing fleets. Alstom provides its customers with modernisation solutions that cover interior and exterior design, replacement of electronic components, installation of more energy-efficient traction systems and more. The Group also offers modernisation solutions for infrastructure and signalling systems.

Bespoke repair servicesThrough its centres of excellence and its experience as an OEM, Alstom provides parts and repair services for all types of trains. Its online PartsFolio solution gives customers access to product catalogues and maintenance handbooks, allowing them to use the internet to place orders, request repairs or quotes, and track their order status.

Custom supportAlstom provides its customers with a wide range of support services for fleet operations including maintenance training courses, in-service energy sav-ing solutions, and the design and con-struction of depots for all types of trains. Alstom also provides a customer service portal to simplify and facilitate access to its technical expertise, along with orders for parts and training courses.

Services

ALSTOM CONTINUES TO IMPROVE THE FLEXIBILITY OF ITS SERVICE SOLUTIONS TO BETTER ADAPT TO THE NEEDS OF CUSTOMERS.

IT IS ALSO DEVELOPING 3D PRINTING TO INCREASE THE SERVICE LIFE OF COMPONENTS USED ON THE OLDEST FLEETS STILL IN OPERATION.

1. Citadis Spirit in dynamic tests at Ottawa depot – Canada. 2. Modernisation of luxury cars for Rocky Mountaineer – USA. 3. Reception of parts in Valenciennes – France.

1.

3.

2.

SOLUTIONS

39 Activity report 2016/17 — ALSTOM

1. TrainScanner, an automated diagnostics portal. 2. Testing interior lights with digital tablet for Coradia Meridian.

1.

2.

KEY FIGURES

7,000SERVICE EMPLOYEES

600,000 REFERENCED TRAIN PARTS

8,000 KMOF TRACK MAINTAINED

20OF MAINTENANCE SERVICES FOR TRAINS NOT MADE BY ALSTOM

40ALSTOM — Activity report 2016/17

SYSTEMS

Drawing on its complementary business lines, Alstom offers bundled and fully integrated systems that include rolling stock, signalling, infrastructure and services. This turnkey approach optimises project execution and transport system performance.

Increasing efficiency

A CUSTOMER-FOCUSED POLICY Demand for integrated systems is grow-ing as a result of their ability to provide a comprehensive solution to complex projects, especially in countries that are only beginning to adopt a rail culture. Alstom caters to this demand with solu-tions that build on proven technology and offer extensive flexibility to meet specific needs by reducing costs and construction times, optimising operations and lowering maintenance costs.

SOLUTIONS High urban demandIntegrated solutions already average 40% of the urban market and their popularity is growing. In line with this trend, Alstom provides customers with two flexible, integrated options, one specifically for tramways (Attractis) and one for metro systems (Axonis), along with a range of solutions that meet specific needs while ensuring overall performance.

Innovative infrastructureAlstom develops innovative infrastructure solutions to reduce costs, accelerate delivery and improve the energy efficiency of urban transport projects. Shining examples of this approach include Appitrack (an automated track-laying solution) and HAS sleepers (which reduce noise and vibrations). The Group is also breaking new ground in electrification with Hesop reversible substation (a solution perfectly suited to urban environments that recovers more than 99% of energy generated by trains during braking) and catenary free solutions (see inset).

Electrification, tracks and electromechanical equipmentAlstom offers a wide array of engineer-ing solutions along with comprehensive and partial management of electrifica-tion and track construction projects. The Group’s wide-ranging experience gives it the necessary know-how to produce and install all equipment relating to transport operations and safety, from signalling and passenger information to ticketing, tunnel safety systems and depot equip-ment for train maintenance.

WITH MORE THAN 10 INTEGRATED SYSTEMS PROJECTS UNDERWAY AROUND THE WORLD, ALSTOM CONTINUES TO CEMENT ITS

POSITION AS A GLOBAL LEADER IN URBAN SOLUTIONS. TO BUILD ON THIS LEAD, THE GROUP CONTINUES TO INVEST

IN NEW DIGITAL TECHNOLOGIES AND SIMULATION TOOLS.

SOLUTIONS

41 Activity report 2016/17 — ALSTOM

1. Employees working on an electrical substation on the high-speed line between Nîmes and Montpellier – France. 2. Rails stacked in preparation for tracklaying. 3. Citadis tramway in service in Tours with APS solution.

1.

2.

KEY FIGURES

Alstom paves the way in catenary-free tramway solutions and has pioneered APS, a new ground-level power supply that supplies electricity through a third rail. The Group also markets Citadis Ecopack, an innovative on-board recharging solution, and SRS, state-of-the-art static charging technology for trams and electric buses with an on-board charging system.

N .1IN INTEGRATED URBAN SYSTEMS IN THE WORLD

25MILLION KILOMETERS OF ACTIVE SERVICE WITH APS

124HESOP SUBSTATIONS SOLD WORLDWIDE

o

3.

42ALSTOM — Activity report 2016/17

CORADIA iLintZERO-EMISSION

The new Coradia iLint regional train concept gives

operators a greener alternative to combustion engines for

non-electrified railway lines, eliminating CO2 emissions and

noise pollution. Powered by hydrogen fuel

cells, Coradia iLint produces only steam and condensed

water, and is extremely quiet. Alstom is one of the first

manufacturers in the world to market a passenger train based

on this type of technology.

APTIS100% ELECTRIC

With the new 100%-electric mobility solution Aptis, Alstom offers local authorities a new solution for clean and efficient

transport. The tram-inspired vehicle features a 20 m² low-floor along its entire length to improve accessibility

and create a more comfortable, fluid passenger experience.

With a 360° view thanks to its panoramic bay windows, Aptis offers 20% more glass surfaces

than a bus. The innovative, sustainable design ensures easy maintenance, making Aptis the perfect solution for operators in terms of urban integration,

performance and operating costs.

MASTRIAMULTIMODAL SOLUTION

Mastria is Alstom’s new multimodal system, which aims to streamline urban transport

management by improving capacity and fluidity.

Mastria is designed to meet the current and future needs of

“smart cities” and can coordinate all types of transport, from rail

to road, while incorporating new mobility trends such as car

sharing and bicycles. The system also uses predictive

analysis to optimise route planning.

In pictures State-of-the-art solutions

SOLUTIONS

43 Activity report 2016/17 — ALSTOM

A RESPONSIBLE COMPANY

COMMITMENTS

3

43 Activity report 2016/17 — ALSTOM

44ALSTOM — Activity report 2016/17

Alstom aims to be the preferred partner for its customers. The Group continues to expand its customer-focused organisation to better understand and meet their expectations. Alstom provides a complete range of solutions and constantly innovates to anticipate their needs while pursuing continuous improvement in operating performance to deliver projects that meet the highest standards in terms of lead times, quality and costs.

STRIVING FOR EXCELLENCEThe needs of operators are changing. Although capacity, reliability and safety remain core concerns, operators’ deci-sions are increasingly based on issues such as lead times, cost of ownership, quality and passenger experience. To rise to these challenges, Alstom implements initiatives that improve the quality and competitiveness of its products and services with an unwavering focus on excellence in execution. The entire range of rolling stock platforms has been revi-talised as part of a strategy to improve performance, costs and production times. Examples of this revival include Citadis X05 tramway, the new genera-tion of Metropolis metros and Coradia regional trains, and the high-speed train Avelia Liberty. Continuous improvement also covers services (HealthHub pre-dictive maintenance solution), systems (Attractis and Axonis) and infrastructure (Hesop reversible substation and CLever catenary cantilevers). Since Alstom

purchases 60% of the products needed for its activities, it also empowers sup-pliers as part of its drive to achieve operational excellence by involving them in the develo pment of its products and establishing Alstom Alliance partnerships (see inset) with key suppliers to reduce the cost of designing key train compo-nents.

STANDARDISING AND STREAMLININGBoosting operational performance also involves standardising products and ser-vices, ensuring a flexible industrial organ-isation, improving project management, and pooling working methods and tools. Alstom has introduced initiatives in each of these areas, including deployment of a single ERP1 system for all sites to promote real-time collaborative work, along with digital development tools and improved resource planning.

FOR OUR CUSTOMERS

1- Enterprise Resource Planning.

COMMITMENTS

45 Activity report 2016/17 — ALSTOM

Co-constructing attractive solutions

Alstom supports its suppliers

As demand for mobility solutions grows, the passenger experience has become the “deciding factor” in choosing transport systems. Alstom understands this and works with its customers to shape differentiating solutions that provide a source of added value and revenue. This approach includes access to trains (low floors and mobile step positions for platforms of different heights), connectivity (seamless high-speed Wi-Fi), comfort (wide windows, HAS sleepers to reduce vibrations and tailor train headways to platform traffic), along with safety, security (facial recognition) and passenger information (new on-board virtual displays).

The Alstom Alliance programme unveiled in 2015 aims to create special partnerships between the Group and its key suppliers to help them grow, share innovations and develop key components together. The programme now includes 35 suppliers and embodies Alstom’s commitment to better serve its customers and their passengers by offering mobility solutions that focus on quality, cost-effectiveness and reliability.

NEARLY 40% OF EMPLOYEES IN 2020 will use the new ERP system at all Alstom sites worldwide.

-30% REDUCTION IN LEAD TIMES AND PRODUCTION COSTS through the use of new digital design tools.

COST OF NON-QUALITY DIVIDED BY 2in 4 years (2014-2017).

46ALSTOM — Activity report 2016/17

Alstom knows its employees are its greatest asset, which is why it pursues a proactive policy to promote well being in the workplace while offering attractive career opportunities. Its corporate culture fosters integrity, entrepreneurial spirit and diversity, providing the building blocks for the company’s success.

A RESPONSIBLE EMPLOYERThe health and safety of employees are key priorities. They are an integral part of Alstom’s strategy. The Injury Frequency Rate (IFR) was reduced to 1.4 in 20161

through initiatives implemented in line with the Zero Deviation plan and annual audits. Efforts are ongoing to achieve an IFR of 1 by 2020, by which time all existing sites will hold OHSAS 180012

accreditation. New sites will meet Alstom’s environment, health and safety standards at the time of construction. A health action plan will also be intro-duced in the near future with a focus on awareness. Because the quality of its workforce is crucial to its success, Alstom conti-nues to roll out initiatives to attract the most talented people and develop their skills throughout their career. The World Class Engineering programme is a good example, with its drive to iden-tify and grow technical expertise among Group employees. The programme has helped build a community of more than 350 master and senior-experts around the globe.

A STRONG CORPORATE CULTUREAlstom conducts its worldwide business operations with an uncompromising commitment to ethics and integrity. Regular information campaigns help make everyone more aware of these

responsibilities. 6,000 employees received training in 2016, with a focus on the Alert Procedure, which allows all employees to report compliance issues. To promote employee empowerment, Alstom encourages entrepreneurial spirit and recognises individual and col-lective performance, notably through an incentivising compensation policy, which included the allocation of free shares in 2016. The drive to build a strong culture is also reflected in the four aspects of Alstom’s leadership model (entrepre-neurship, collaboration, agility and global vision) and in its support for diversity. With respect to gender balance, local initiatives to support women through training, improved access to manage-ment positions and other measures were expanded in 2016. They now include tracking indicators in line with the goal of bringing the share of managerial and professional positions held by women to 25% by 2020. In terms of cultural diver-sity, Alstom is on its way to achieving its 2020 goal: the nationality of middle management and the talent pool reflects the international scope of Alstom’s busi-ness activities.

FOR OUR EMPLOYEES

1- Employees and contractors, representing one million hours worked.

2- Standard for occupational health and safety management systems.

1.

COMMITMENTS

47 Activity report 2016/17 — ALSTOM

An unwavering commitment to integrity

Alstom has one of the most advanced Ethics & Compliance policies among companies around the world. Its Code of Ethics defines a comprehensive, internationally recognised set of rules and procedures for relations with stakeholders including customers, suppliers, contractors and partners. Its Integrity Programme helps to clarify these commitments for each employee through training, awareness-raising and engagement, backed by a network of more than 200 local ambassadors.

1. Alstom workers test cables outside the train. 2. Alstom employee at the Savigliano site – Italy.

2.

140 NATIONALITIES enhance Alstom’s cultural diversity.

1 INJURY FREQUENCY RATEamong employees & contractors by 2020 (in number of injuries per million hours worked).

92% OF EMPLOYEES feel they contribute to Alstom’s performance (2016 employee survey).

48ALSTOM — Activity report 2016/17

Alstom is committed to responsible mobility and strives to improve the environmental performance of its business activities and solutions. This commitment covers the entire supply chain.

SUSTAINABLE PRODUCTSThe environmental impact of transport is one of the greatest challenges facing the world today. Alstom rises to that challenge by designing rail solutions that ensure solid environmental performance throughout their lifecycle. It does so by targeting energy efficiency, a reduction in noise and vibrations, the use of clean, recyclable materials, reduced airborne emissions, and end-of-life product man-agement. As a result, trains designed today are up to 20% more efficient than previous generations of rolling stock. Alstom has committed to an additional 20% reduction in the energy consump-tion of its solutions by 20201. The Group plans to meet this target through inno-vation and collaboration, as embodied by its partnership with SNCF on the next generation of high-speed trains. Alstom also began a campaign to explore the opportunities of the circular economy in 2016, with a focus on the materials used in train manufacturing and maintenance operations.

CLEAN OPERATIONSAlstom is actively pursuing environ-mental certification for its sites around the world to help it run a tight ship in terms of the environmental impact of its activities. 40 manufacturing plants and regional centres2 had achieved ISO 14001 certification by the end of 2016 – accreditation that will cover all Alstom activities by 2020. The campaign

is backed by regular tracking of envi-ronmental performance indicators, chief among which is the energy consumption of sites and activities. The 2016 action plan helped Alstom meet its 2020 goal of a 10% reduction in the energy inten-sity of operations ahead of schedule in March 2017. Water consumption is also the focus of ongoing efforts, as is the drive to curb greenhouse gases and VOC3 emissions. Alstom is aiming to keep its waste recovery rate above 80% while reducing the amount of waste from its activities by 10% by 2020.

SUSTAINABLE SOURCINGAlstom is committed to implementing responsible practices throughout the value chain for rail solutions, with all suppliers required to sign its sustainable development charter. The Group is also involved in the Railsponsible industry ini-tiative, which it chaired in 2016/17. The initiative aims to encourage all indus-try suppliers to apply best practices in terms of ethical, social, environmental and commercial performance. As part of this approach, any suppliers at risk of non-compliance are required to submit to an assessment by an independent body.

FOR THE ENVIRONMENT

1- Compared with 2014. 2- Local centres managing infrastructure

projects, integrated systems and signalling.3- Volatile Organic Compounds.

COMMITMENTS

49 Activity report 2016/17 — ALSTOM

The Sydney sustainable tramway initiative

Bus or tramway?

Sustainable development is a core feature of the project to build the Sydney tramway. Sustainability covers a whole range of factors such as water supply and consumption, carbon footprint, energy efficiency and integration into the urban environment. Alstom’s project management approach incorporates the full range of customer needs in terms of products (Citadis X05 with permanent magnet motors to reduce energy consumption and Hesop substation to recover 99% of energy from braking), civil engineering (recycled materials) and social acceptance (communication with stakeholders). The project is currently under construction and trams are due to begin operation on schedule in early 2019.

In 2016, Alstom commissioned the independent research firm Carbone 4 to conduct a comparative study of greenhouse gases given off by trams and BRT systems on a 10 km route in Belgium. The findings showed that trams running on the line gave off only half as much CO2 as their diesel-driven BRT counterpart, 30% less than a rechargeable hybrid BRT and 17% less than an electric BRT. The integrated tramway solution Attractis reduces infrastructure-related emissions by a further 20% compared with a conventional tramway.

11.6 10.5

2014

2016

88%2016

83%2014

689

2016

877

2014

11.6 10.5

2014

2016

88%2016

83%2014

689

2016

877

2014

11.6 10.5

2014

2016

88%2016

83%2014

689

2016

877

2014

-10% TARGET 2020 Reduction in the energy intensity of permanent facilities (vs 2014), with an energy action plan targeting the 20 most energy-intensive sites. (in kW/hour worked)

-10% TARGET 2020 Reduction in water consumption (vs 2014), especially in areas of water stress. (in thousands of cubic metres)

>80% TARGET 2020 Increasing the waste recovery rate (vs 2014) while achieving a 10% reduction in waste production.

50ALSTOM — Activity report 2016/17

Alstom aims to make an active contribution to local communities wherever it does business, improving people’s lives and fostering dialogue with stakeholders through its corporate foundation and individual site initiatives.

LOCAL INITIATIVESAlstom sites around the world implement projects to support local communities. These initiatives are guided by three pri-orities. They enable targeted action to meet local needs with respect to health, living conditions and humanitarian aid in the event of natural disasters. They promote education through aid for schools and students as well as techni-cal partnerships with universities. They support economic development and local industry through integration initiatives (apprenticeships), innovation financing (venture capital funds for startups and collaborative research projects) and backing for companies close to Alstom sites. To make these programmes more effective, all countries in which Alstom employs more than 200 people intro-duced a structured action plan for their initiatives in 2016. They also appointed local representatives tasked with imple-menting and tracking projects.

A COMMITTED FOUNDATIONThe Alstom Foundation has been drawing on its expertise and network of resources to support these local projects since its inception 10 years ago. It actively encourages and nurtures employee initi-atives to improve living conditions in local communities near Alstom sites. Selected projects are implemented with the help of local and international partners such as NGOs, non-profit organisations and associations, which provide the Founda-tion with the expertise needed to bring projects to fruition. Alstom supported 18 new projects worldwide in 2016, with a focus on four key themes: economic and social development, access to energy and water, environmental protection and access to mobility.

FOR LOCAL COMMUNITIES

In Paita, a small fishing port in northern Peru, population growth has led to an increase in demand for teaching facilities, especially for children between the ages of two and six. In response, the Alstom Foundation is funding a project to build two new classrooms in the Lunita Paita infant school in 2017 to support education for younger children. There are also plans to install a greenhouse and drip-irrigation system on the premises to foster local economic development and save water.

COMMITMENTS

51 Activity report 2016/17 — ALSTOM

A mobile clinic in India

The Madhepura district, in which Alstom is building a new plant, is one of India’s least-developed regions. In late 2016, as part of the project, the Group introduced an initiative to set up a mobile clinic providing healthcare for people in surrounding villages, including a doctor’s surgery, medicine, nutritional follow-up, and training for healthcare providers. Educational opportunities will also be provided through twice-weekly visits by a teacher and teacher-training initiatives.

18 OUTREACH INITIATIVESreceived Alstom Foundation support to improve living conditions in local communities in 2016.

151 PROJECTS have been implemented in 52 countries since the Alstom Foundation was established in 2007.

21 COUNTRIES in which Alstom employs more than 200 people introduced a structured action plan to support local communities in 2016.

ALSTOM – ACTIVITY REPORT 2016/17 is published by the Alstom communication department. © ALSTOM SA, 2017. All rights reserved. ALSTOM, the ALSTOM logo, all alternative versions and all mentioned trademarks of Alstom’s transport activities, are the brands and trademarks of ALSTOM SA or ALSTOM Transport Technologies. METROLAB and OPTIMET are trademarks registered by METROLAB. TGV is a trademark registered by SNCF. The other names mentioned, registered or not, belong to their respective owners. Technical and other forms of data contained in the present document are given for the purposes of information only. ALSTOM reserves the right to reconsider or change this data at any time and without warning. Copyright registration: 2nd quarter 2017. Publication Director: Emmanuelle Châtelain. Editorial Director: Caroline Aubert. Writer: Alexia Attali. The articles and illustrations published in this issue may not be reproduced without prior written authorisation.Design-Production: Photo credits: cover: © Shutterstock / Trong Nguyen. Photographs: © Alstom / A. Février – K. Schoemaker – A. Rustemov – E. Richardson – M. Klimek – E. Lamperti – M. Wittwer – Gughi Fassino – P. Kurz – P. Mostert / TOMA – J. Goldstein – D. Richard – V. Baillais – C. Jachymiak – P. Eranian – L. Derimais – G. Bernardi / ABACA – L. Pascal / PO Callede-CAPA Pictures / Crossrail / Planimonteur / Premier Communications / 7eme Bureau / Design & Styling / Meconopsis. © Bouygues. © RTA. © Nomad Digital. © EasyMile. © Getty images-HNH Images. Illustrator : P. Grelet. Printed in France. This document has been printed on PEFC paper (paper made exclusively with fibres from responsibly managed forests) by a certified printer which holds an Imprim’Vert label.

TO KNOW MORE

REGISTRATION DOCUMENT2016/17

AT A GLANCE2016/17

ACTIVITY REPORT2016/17www.activity-report.alstom.com

@Alstom

2016/17

France, Europe, Middle East & AfricaAlstom48, rue Albert Dhalenne93482 Saint-Ouen Cedex FranceTelephone: +33 1 57 06 90 00

Latin AmericaAlstomAvenida Embaixador Macedo Soares, 10.00105095-035 São Paulo - SP - BrazilTelephone: +55 11 3612 70 00

Asia PacificAlstomNo.66/02, Embassy Prime, B Wing 3rd Floor, C V Raman Nagar, Bangalore - 560 093Karnataka - IndiaTelephone: +91 80 4641 2400

North AmericaAlstom641 Lexington AvenueNew York, NY 10022USATelephone: +1 212 692 5320

www.alstom.com

France, Europe, Middle East & AfricaAlstom48, rue Albert Dhalenne93482 Saint-Ouen Cedex FranceTelephone: +33 1 57 06 90 00

Latin AmericaAlstomAvenida Embaixador Macedo Soares, 10.00105095-035 São Paulo - SP - BrazilTelephone: +55 11 3612 70 00

Asia PacificAlstomNo.66/02, Embassy Prime, B Wing 3rd Floor, C V Raman Nagar, Bangalore - 560 093Karnataka - IndiaTelephone: +91 80 4641 2400

North AmericaAlstom641 Lexington AvenueNew York, NY 10022USATelephone: +1 212 692 5320

www.alstom.com