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Consolidated financial statements
Year ended 31 March 2024
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CONSOLIDATED INCOME STATEMENT
Year ended
(in € million)
Note
At 31 March 2024
At 31 March 2023
Sales
(3)
17,619
16,507
Cost of sales
(15,406)
(14,541)
Research and development expenses
(4)
(609)
(580)
Selling expenses
(5)
(383)
(375)
Administrative expenses
(5)
(725)
(721)
Other income/(expense)
(6)
(508)
(369)
Earnings Before Interests and Taxes
(12)
(79)
Financial income
(7)
47
36
Financial expense
(7)
(289)
(139)
Pre-tax income
(254)
(182)
Income Tax Charge
(8)
(6)
(34)
Share in net income of equity-accounted investments (*)
(13)
(17)
112
Net profit (loss) from continuing operations
(277)
(104)
Net profit (loss) from discontinued operations
(9)
(2)
(4)
NET PROFIT (LOSS)
(279)
(108)
Net profit (loss) attributable to equity holders of the parent
(309)
(132)
Net profit (loss) attributable to non controlling interests
30
24
Net profit (loss) from continuing operations attributable to:
• Equity holders of the parent
(307)
(128)
• Non controlling interests
30
24
Net profit (loss) from discontinued operations attributable to:
• Equity holders of the parent
(2)
(4)
• Non controlling interests
-
-
Earnings (losses) per share (in €)
• Basic earnings (losses) per share
(10)
(0.81)
(0.35)
• Diluted earnings (losses) per share
(10)
(0.80)
(0.35)
(*) Including €(122) million loss resulting from the sale of TMH and the derecognition of the Currency Translation Adjustment (see Note 1.2) as of
31 March 2024.
The accompanying notes are an integral part of the consolidated financial statements.
3/90
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
Year ended
(in € million)
Note
At 31 March
2024
At 31 March
2023
Net profit (loss) recognised in income statement
(279)
(108)
Remeasurement of post-employment benefits obligations
(29)
(135)
256
Equity investments at FVOCI
(13)
/(14)
(8)
9
Income tax relating to items that will not be reclassified to profit or loss
(8)
2
(6)
Items that will not be reclassified to profit or loss
(141)
259
of which from equity-accounted investments
-
-
Fair value adjustments on cash flow hedge derivatives
3
1
Costs of hedging reserve
19
57
Currency translation adjustments (*)
(23)
129
(220)
Income tax relating to items that may be reclassified to profit or loss
(8)
(8)
(5)
Items that may be reclassified to profit or loss
143
(167)
of which from equity-accounted investments
(13)
72
(73)
TOTAL COMPREHENSIVE INCOME
(277)
(16)
Attributable to:
• Equity holders of the parent
(302)
(27)
• Non controlling interests
25
11
Total comprehensive income attributable to equity shareholders arises from:
• Continuing operations
(301)
(23)
• Discontinued operations
(1)
(4)
Total comprehensive income attributable to non controlling interests arises from:
• Continuing operations
25
11
• Discontinued operations
-
-
(*) Includes the CTA recycling impact for the TMH disposal (see Note 1.2) and currency translation adjustments on actuarial gains and losses for €5
million as of 31 March 2024 (€(7) million as of 31 March 2023).
The accompanying notes are an integral part of the consolidated financial statements.
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CONSOLIDATED BALANCE SHEET
Assets
(in € million)
Note
At 31 March 2024
At 31 March 2023
Goodwill
(11)
9,093
9,380
Intangible assets
(11)
2,268
2,606
Property, plant and equipment
(12)
2,756
2,481
Investments in joint-venture and associates
(13)
882
1,131
Non consolidated investments
(14)
74
82
Other non-current assets
(15)
497
569
Deferred Tax
(8)
673
596
Total non-current assets
16,243
16,845
Inventories
(17)
3,818
3,729
Contract assets
(18)
4,973
4,533
Trade receivables
(19)
2,997
2,670
Other current operating assets
(20)
3,515
2,728
Other current financial assets
(25)
40
65
Cash and cash equivalents
(26)
976
826
Total current assets
16,319
14,551
Assets held for sale
(9)
691
-
TOTAL ASSETS
33,253
31,396
Equity and Liabilities
(in € million)
Note
At 31 March 2024
At 31 March 2023
Equity attributable to the equity holders of the parent
(23)
8,672
8,997
Non controlling interests
106
105
Total equity
8,778
9,102
Non current provisions
(22)
539
442
Accrued pensions and other employee benefits
(29)
946
923
Non-current borrowings
(27)
2,694
2,657
Non-current lease obligations
(27)
471
501
Deferred Tax
(8)
91
128
Total non-current liabilities
4,741
4,651
Current provisions
(22)
1,612
1,779
Current borrowings
(27)
1,316
396
Current lease obligations
(27)
174
144
Contract liabilities
(18)
7,995
6,781
Trade payables
(16)
3,444
3,640
Other current liabilities
(21)
5,070
4,903
Total current liabilities
19,611
17,643
Liabilities related to assets held for sale
(9)
123
-
TOTAL EQUITY AND LIABILITIES
33,253
31,396
The accompanying notes are an integral part of the consolidated financial statements.
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CONSOLIDATED STATEMENT OF CASH FLOWS
Year ended
(in € million)
Note
At 31 March 2024
At 31 March 2023
Net profit (loss)
(279)
(108)
Depreciation, amortisation and impairment
(11)/(12)
836
886
Expense arising from share-based payments
(30)
19
66
Cost of net financial debt and costs of foreign exchange hedging, net of interest paid and
received (a), and other change in provisions
(26)
33
Post-employment and other long-term defined employee benefits
(13)
4
Net (gains)/losses on disposal of assets
(1)
28
Share of net income (loss) of equity-accounted investments (net of dividends received)
(13)
327
2
Deferred taxes charged to income statement
(8)
(104)
(138)
Net cash provided by operating activities - before changes in working capital
759
773
Changes in working capital resulting from operating activities (b)
(16)
(841)
(167)
Net cash provided by/(used in) operating activities
(82)
606
Of which operating flows provided / (used) by discontinued operations
-
-
Proceeds from disposals of tangible and intangible assets
8
24
Capital expenditure (including capitalised R&D costs)
(485)
(431)
Increase/(decrease) in other non-current assets
(15)
4
24
Acquisitions of businesses, net of cash acquired
(31)
(30)
Disposals of businesses, net of cash sold
73
(65)
Net cash provided by/(used in) investing activities
(431)
(478)
Of which investing flows provided / (used) by discontinued operations
(9)
(8)
(11)
Capital increase/(decrease) including non controlling interests
-
90
Dividends paid including payments to non controlling interests
(61)
(62)
Issuances of bonds & notes
(27)
-
-
Changes in current and non-current borrowings
(27)
877
56
Changes in lease obligations
(27)
(160)
(150)
Changes in other current financial assets and liabilities
(27)
40
5
Net cash provided by/(used in) financing activities
696
(61)
Of which financing flows provided / (used) by discontinued operations
-
-
NET INCREASE/(DECREASE) IN CASH AND CASH EQUIVALENTS
183
67
Cash and cash equivalents at the beginning of the period
826
810
Net effect of exchange rate variations
(33)
(53)
Transfer to assets held for sale
(2)
2
CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD
(26)
976
826
(a) Net of interests paid & received
(152)
(43)
(b) Income tax paid
(188)
(130)
The accompanying notes are an integral part of the consolidated financial statements.
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CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
(in € million, except for number of
shares)
Number of
outstanding
shares
Capital
Additional
paid-in
capital
Retained
earnings
Actuarial
gains
and
losses
Cash-
flow
hedge
Currency
translation
adjustment
Equity
attributable
to the
equity
holders of
the parent
Non
controlling
interests
Total
equity
At 31 March 2022
373,391,746
2,614
5,354
1,236
160
(3)
(450)
8,911
113
9,024
Movements in other comprehensive
income
-
-
-
61
242
2
(200)
105
(13)
92
Net income for the period
-
-
-
(132)
-
-
-
(132)
24
(108)
Total comprehensive income
-
-
-
(71)
242
2
(200)
(27)
11
(16)
Change in controlling interests and
others
-
-
-
(1)
4
-
-
3
(0)
3
Dividends convertible into shares
-
-
-
(50)
-
-
-
(50)
(0)
(50)
Dividends paid in cash
-
-
-
(43)
-
-
-
(43)
(19)
(62)
Capital increase by issuance of new
shares
2,432,331
17
35
-
-
-
-
52
-
52
Issue of ordinary shares under long term
incentive plans
4,629,377
32
56
(3)
-
-
-
85
-
85
Recognition of equity settled share-
based payments
-
-
-
66
-
-
-
66
-
66
At 31 March 2023
380,453,454
2,663
5,445
1,134
406
(1)
(650)
8,997
105
9,102
Movements in other comprehensive
income
-
-
-
7
(134)
4
130
7
(5)
2
Net income for the period
-
-
-
(309)
-
-
-
(309)
30
(279)
Total comprehensive income
-
-
-
(302)
(134)
4
130
(302)
25
(277)
Change in controlling interests and
others
-
-
-
(4)
-
-
-
(4)
1
(3)
Dividends convertible into shares
2,435,803
17
41
(58)
-
-
-
-
-
-
Dividends paid in cash
-
-
-
(38)
-
-
-
(38)
(25)
(63)
Issue of ordinary shares under long term
incentive plans
1,401,811
10
-
(10)
-
-
-
-
-
-
Recognition of equity settled share-
based payments
-
-
-
19
-
-
-
19
-
19
At 31 March 2024
384,291,068
2,690
5,486
741
272
3
(520)
8,672
106
8,778
The accompanying notes are an integral part of the consolidated financial statements.
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
A. MAJOR EVENTS AND CHANGES IN SCOPE OF CONSOLIDATION ............................................................... 9
NOTE 1. MAJOR EVENTS AND MAJOR CHANGES IN SCOPE OF CONSOLIDATION ........................ 9
B. ACCOUNTING POLICIES AND USE OF ESTIMATES .................................................................................. 11
NOTE 2. ACCOUNTING POLICIES ................................................................................................. 11
C. SEGMENT INFORMATION ..................................................................................................................... 21
NOTE 3. SEGMENT INFORMATION .............................................................................................. 21
D. OTHER INCOME STATEMENT ................................................................................................................ 23
NOTE 4. RESEARCH AND DEVELOPMENT EXPENDITURE ............................................................ 23
NOTE 5. SELLING AND ADMINISTRATIVE EXPENSES ................................................................... 24
NOTE 6. OTHER INCOME AND OTHER EXPENSES ........................................................................ 24
NOTE 7. FINANCIAL INCOME (EXPENSES) ................................................................................... 25
NOTE 8. TAXATION ...................................................................................................................... 26
NOTE 9. FINANCIAL STATEMENTS OF DISCONTINUED OPERATIONS AND ASSETS HELD FOR SALE
29
NOTE 10. EARNINGS PER SHARE ................................................................................................... 30
E. NON-CURRENT ASSETS ........................................................................................................................ 31
NOTE 11. GOODWILL AND INTANGIBLE ASSETS ........................................................................... 32
NOTE 12. PROPERTY, PLANT AND EQUIPMENT ............................................................................ 36
NOTE 13. INVESTMENTS IN JOINT VENTURES AND ASSOCIATES .................................................. 39
NOTE 14. NON-CONSOLIDATED INVESTMENTS ............................................................................ 40
NOTE 15. OTHER NON-CURRENT ASSETS ...................................................................................... 41
F. WORKING CAPITAL .............................................................................................................................. 42
NOTE 16. WORKING CAPITAL ANALYSIS ........................................................................................ 42
NOTE 17. INVENTORIES ................................................................................................................. 42
NOTE 18. NET CONTRACT ASSETS/LIABILITIES .............................................................................. 43
NOTE 19. TRADE RECEIVABLES ...................................................................................................... 44
NOTE 20. OTHER CURRENT OPERATING ASSETS ........................................................................... 44
NOTE 21. OTHER CURRENT OPERATING LIABILITIES ..................................................................... 45
NOTE 22. PROVISIONS ................................................................................................................... 45
G. EQUITY AND DIVIDENDS ...................................................................................................................... 47
NOTE 23. EQUITY ........................................................................................................................... 47
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NOTE 24. DISTRIBUTION OF DIVIDENDS ....................................................................................... 47
H. FINANCING AND FINANCIAL RISK MANAGEMENT ................................................................................ 48
NOTE 25. OTHER CURRENT FINANCIAL ASSETS ............................................................................ 48
NOTE 26. CASH AND CASH EQUIVALENTS ..................................................................................... 48
NOTE 27. FINANCIAL DEBT ............................................................................................................ 48
NOTE 28. FINANCIAL INSTRUMENTS AND FINANCIAL RISK MANAGEMENT................................. 50
I. POST-EMPLOYMENT AND OTHER LONG-TERM DEFINED EMPLOYEE BENEFITS AND SHARE–BASED
PAYMENTS .................................................................................................................................. 60
NOTE 29. POST-EMPLOYMENT AND OTHER LONG-TERM DEFINED EMPLOYEE BENEFITS ........... 60
NOTE 30. SHARE-BASED PAYMENTS ............................................................................................. 66
NOTE 31. EMPLOYEE BENEFIT EXPENSE AND HEADCOUNT .......................................................... 70
J. CONTINGENT LIABILITIES AND DISPUTES ............................................................................................ 70
NOTE 32. CONTINGENT LIABILITIES ............................................................................................... 71
NOTE 33. DISPUTES ....................................................................................................................... 72
K. OTHER NOTES ...................................................................................................................................... 81
NOTE 34. INDEPENDENT AUDITORS’ FEES .................................................................................... 81
NOTE 35. RELATED PARTIES .......................................................................................................... 81
NOTE 36. SUBSEQUENT EVENTS ................................................................................................... 82
NOTE 37. SCOPE OF CONSOLIDATION ........................................................................................... 84
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Alstom is a leading player in the world rail transport industry. As such, the Company offers a complete range of
solutions, including rolling stock, systems, services as well as signalling for passenger and freight railway
transportation. It benefits from a growing market with solid fundamentals. The key market drivers are urbanisation,
environmental concerns, economic growth, governmental spending and digital transformation.
In this context, Alstom has been able to develop both a local and global presence that sets it apart from many of its
competitors, while offering proximity to customers and great industrial flexibility. Its range of solutions, one of the most
complete and integrated on the market, and its position as a technological leader, place Alstom in a unique situation
to benefit from the worldwide growth in the rail transport market. Lastly, in order to generate profitable growth, Alstom
focuses on operational excellence and its product mix evolution.
The consolidated financial statements are presented in euro and have been authorised for issue by the Board of
Directors held on 7 May 2024. In accordance with French legislation, they will be final once approved by the
shareholders of Alstom at the Annual General Meeting convened for 20 June 2024.
A. MAJOR EVENTS AND CHANGES IN SCOPE OF CONSOLIDATION
NOTE 1. MAJOR EVENTS AND MAJOR CHANGES IN SCOPE OF CONSOLIDATION
1.1. Major events
Sale of North American Signalling Business to Knorr-Bremse AG
On 19 April 2024, Alstom announced that it had entered into a binding agreement with Knorr-Bremse AG, to sell
Alstom’s North American conventional signalling business for a purchase price of around €630 million.
This transaction is part of the comprehensive company action plan that Alstom announced on 15 November 2023,
aimed at reinforcing its leadership position in the rail industry. Closing of the transaction is only subject to customary
conditions, including regulatory approval, and is expected to take place as soon as summer 2024.
Proceeds for Alstom at closing, net of expected tax and transaction costs, are expected to be around €620 million.
As of 31 March 2024, the corresponding assets have been classified as Assets Held for Sale in the consolidated Balance
Sheet (see Note 9.2).
“Autumn” restructuring plan
On 15 November 2023, Alstom announced that it was implementing a comprehensive operational, commercial and
cost efficiency plan (the “Autumn” plan). The Autumn plan aims at accelerating the third phase of the Bombardier
Transportation merger roadmap (optimization). As part of this efficiency plan, Alstom announced an overhead cost
reduction initiative of around 1,500 FTE representing close to 10% of total S&A positions. This plan was presented to
the employee representation bodies during the second semester, and negotiations are ongoing in view of implementing
as from the first semester of the fiscal year 2024/25.
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A total cost of €115 million has been booked during the period, with a remaining balance in provision of €110 million
in the consolidated Balance Sheet (see Note 22) as of 31 March 2024.
1.2. Scope of consolidation
SpeedInnov
Through its affiliate SpeedInnov, a joint venture created in 2015 with ADEME, Alstom focused on its ‘Very high-speed
train of the future’ project, aiming to promote a new generation of very high-speed trainset which will reduce
acquisition and operating costs by at least 20%, optimize the environmental footprint and develop the commercial offer
to improve passenger experience. In this context, Alstom subscribed to a capital increase in this joint venture in an
amount of €13.6 million in October 2023 increasing its stake from 75.48% to 76.39% with no change in the consolidation
method due to the rights granted to the co-investor as per shareholder agreement, the Group assessed it has “Joint
control” over the entity.
Disposal of TMH
On 14 September 2023, the Office of Foreign Assets Control (OFAC) of the US department of Treasury added JSC
Transmashholding (TMH AO) to the Specially Designated Nationals and Blocked Person (SDN) List. TMH AO is the
Russian holding company of TMH Group and is 100% owned by TMH Limited.
The Group further assessed potential exposures arising from the new OFAC sanctions and made the decision to sell its
stake in TMH.
The transaction was closed early January 2024 for an amount of €75 million, carrying value was nil as result of previous
impairment, contributing to the de-risking of the company’s portfolio. The sale resulted in a non-cash loss of €(122)
million due to the recycling of the €(197) million Currency Translation Adjustment accounted for directly in equity since
the acquisition. The net impact of the sale is presented in the line “Share in net income on equity accounted
investments” of the consolidated Income Statement as of 31 March 2024.
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B. ACCOUNTING POLICIES AND USE OF ESTIMATES
NOTE 2. ACCOUNTING POLICIES
2.1. Basis of preparation of the consolidated financial statements
Alstom consolidated financial statements, for the year ended 31 March 2024, are presented in millions of Euros and
have been prepared:
• in accordance with the International Financial Reporting Standards (IFRS) and interpretations published by
the International Accounting Standards Board (IASB) and endorsed by the European Union and whose
application was mandatory as at 31 March 2024;
• using the same accounting policies and measurement methods as at 31 March 2023, with the exceptions of
changes required by the enforcement of new standards and interpretations presented here after.
The full set of standards endorsed by the European Union can be consulted at: http://www.efrag.org/Endorsement.
2.2. New standards and interpretations mandatorily applicable for financial periods beginning on 1 April 2023
Four amendments are applicable at 1 April 2023 and endorsed by European Union:
• Amendments to IAS 1 Presentation of Financial Statements and IFRS Practice Statement 2: Disclosure of
Accounting policies;
• Amendments to IAS 8 Accounting policies, Changes in Accounting Estimates and Errors: Definition of
Accounting Estimates;
• Amendments to IAS 12 Income Taxes: Deferred Tax related to Assets and Liabilities arising from a Single
Transaction;
• Amendments to IAS 12 Income taxes: International Tax Reform – Pillar Two Model Rules.
Due to its size, Alstom is in the scope of the Pillar two Model Rules as released by the OECD, introducing a minimum
corporate income tax rate of 15%. The legislation has been enacted in France and is applicable to Alstom at 1 April
2024. The amendment to IAS 12 Income Taxes – International Tax Reform – Pillar Two Model Rules published by the
IASB and approved by the European Union provides a temporary exception from accounting for deferred taxes arising
from the implementation of the Pillar Two Rules and requires targeted disclosures. At 31 March 2024 the Group has
not accounted for deferred taxes in relation with the Pillar Two Rules.
Alstom is engaged in a project of analysis of the consequences of the legislation and of process preparation to fulfil its
obligations with that regard. Based on a preliminary assessment performed on financial data related to 31 March 2022
and 31 March 2023, Alstom does not expect a material impact of the Pillar two legislation on the consolidated financial
statements.
All the other amendments effective at 1 April 2023 for Alstom have no material impact on the Group’s consolidated
financial statements.
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2.3. New standards and interpretations not yet mandatorily applicable
New standards and interpretations endorsed by the European Union not yet mandatorily applicable:
• Amendments to IAS 1 Presentation of Financial Statements: Classification of Liabilities as Current or Non-
current;
• Amendments to IFRS 16 Leases: Lease Liability in a Sale and Leaseback.
These 2 amendments will be applicable for annual periods beginning after 1 January 2024.
New standards and interpretations not yet approved by the European Union:
• Amendments to IAS 7 Statement of Cash Flows and IFRS 7 Financial Instruments: Disclosures: Supplier
Finance Arrangements (applicable for annual periods beginning after 1 January 2024);
• Amendments to IAS 21 The Effects of Changes in Foreign Exchange Rates: Lack of Exchangeability (applicable
for annual periods beginning after 1 January 2025).
The potential impacts of all those new pronouncements are currently being analysed.
2.4. Use of estimates
The preparation of the consolidated financial statements in conformity with IFRS requires management to make
various estimates and to use assumptions regarded as realistic and reasonable. These estimates or assumptions could
affect the value of the Group’s assets, liabilities, equity, net income and contingent assets and liabilities at the closing
date. Management reviews estimates on an on-going basis using information currently available. Actual results may
differ from those estimates, due to changes in facts and circumstances.
The accounting policies most affected by the use of estimates are the following:
Revenue and margin recognition on construction and long-term service contracts and related provisions
The Group recognises revenue and gross margin on most construction and long-term service contracts fulfilling the
requirements for revenue recognition over time, using the percentage of completion method based on cost to cost:
revenue is in that case recognized based on the percentage of costs incurred to date divided by the total costs at
completion. Moreover, when a project review indicates a negative gross margin, the estimated loss at completion is
immediately recognised.
Recognised revenue and margin are based on estimates of total expected contract revenue and cost, which are subject
to revisions as the contract progresses. Total expected revenue and cost on a contract reflect management’s current
best estimate of the probable future benefits and obligations associated with the contract.
Assumptions to calculate present and future obligations take into account current technology as well as the commercial
and contractual positions, assessed on a contract-by-contract basis (one performance obligation corresponding in most
cases to one contract). The introduction of technologically-advanced products exposes the Group to risks of product
failure significantly beyond the terms of standard contractual warranties applicable to suppliers of equipment only.
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Obligations on contracts may result in penalties due to late completion of contractual milestones, or unanticipated
costs due to project modifications, suppliers or subcontractors’ failure to perform or delays caused by unexpected
conditions or events. Warranty obligations are affected by product failure rates, material usage and service delivery
costs incurred in correcting failures.
Although the Group makes individual assessments on contracts on a regular basis, there is a risk that actual costs
related to those obligations may exceed initial estimates. Estimates of contract costs and revenues at completion in
case of contracts in progress and estimates of provisions in case of completed contracts may then have to be re-
assessed.
Estimate of provisions relating to litigations
The Group identifies and analyses on a regular basis current litigations and measures, when necessary, provisions on
the basis of its best estimate of the expenditure required to settle the obligation at the balance sheet date. These
estimates take into account information available and different possible outcomes.
Valuation of deferred tax assets
Management judgment is required to determine the extent to which deferred tax assets can be recognised. Future
sources of taxable income and the effects of the Group global income tax strategies are taken into account in making
this determination. This assessment is conducted through a detailed review of deferred tax assets by jurisdiction and
takes into account past, current and future performance deriving from the existing contracts in the order book, Business
Plan, and the length of carry back, carry forwards and expiry periods of net operating losses.
Measurement of post-employment and other long-term defined employee benefits
The measurement of obligations and assets related to defined benefit plans makes it necessary to use several statistical
and other factors that attempt to anticipate future events. These factors include assumptions about the discount rate,
the rate of future compensation increases as well as withdrawal and mortality rates. If actuarial assumptions materially
differ from actual results, it could result in a significant change in the employee benefit expense recognised in the
income statement, actuarial gains and losses recognised in other comprehensive income and prepaid and accrued
benefits.
Valuation of assets
The discounted cash flow model used to determine the recoverable value of the group of cash generating unit to which
goodwill is allocated includes a number of inputs including estimates of future cash flows, discount rates and other
variables, and then requires significant judgment.
Impairment tests performed on intangible and tangible assets, as well as Right-of-Use related to leased assets are also
based on assumptions. Future adverse changes in market conditions or poor operating results from underlying assets
could result in an inability to recover their current carrying value.
Inventories
Inventories, including work in progress, are measured at the lower of cost and net realisable value. Write-down of
inventories are calculated based on an analysis of foreseeable changes in demand, technology or market conditions in
order to determine obsolete or excess inventories. If actual market conditions are less favourable than those projected,
additional inventory write-downs may be required.
14/90
2.5. Significant accounting policies
2.5.1. Consolidation methods
Subsidiaries
Subsidiaries are entities over which the Group exercises control.
The Group controls an entity when (i) it has power over this entity, (ii) is exposed to or has rights to variable returns
from its involvement with that entity, and (iii) has the ability to use its power over that entity to affect the amount of
those returns.
Subsidiaries are fully consolidated in the consolidated financial statements from the date on which control is transferred
to the Group and deconsolidated from the date that control ceases.
Inter-company balances and transactions are eliminated.
Non-controlling interests in the net assets of consolidated subsidiaries are identified in a specific line of the equity
named “Non-controlling interests”. Non-controlling interests consist of the amount of those interests at the date of
the original business combination and their share of changes in equity since the date of the combination. In the absence
of explicit agreements to the contrary, subsidiaries’ losses are systematically allocated between equity holders of the
parent and non-controlling interests based on their respective ownership interests even if this results in the non-
controlling interests having a deficit balance.
Transactions with non-controlling interests that do not result in loss of control are considered as transactions between
shareholders and accounted for in equity.
Joint arrangements
Joint arrangements are the entities over which the Group has joint control.
The Group jointly controls an entity when decisions relating to the relevant activities of that entity require unanimous
consent of the Group and the other parties who share control.
A joint arrangement is classified either as a joint operation or as a joint venture. The classification is based on the rights
and obligations of the parties to the arrangement, taking into consideration the structure and legal form of the
arrangement, the terms agreed by the parties in the contractual arrangement and, when relevant, other facts and
circumstances (see also Note 13):
• Joint operations
Joint operations are entities in which the Group has rights to the assets and obligations for the liabilities.
The Group recognises the assets, liabilities, revenues and expenses related to its interests in the joint operation. A joint
operation may be conducted under a separate vehicle or not.
• Joint ventures
Joint ventures are entities in which the Group only has rights to the net assets.
Interests in joint ventures are consolidated under the equity method as described in the paragraph below.
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Investments in associates
Associates are entities over which the Group has significant influence. In other words, the Group has the possibility to
participate in decisions related to these entities’ financial and operating policies without having control (exclusive or
joint).
Generally, the existence of significant influence is consistent with a level of voting right held by the Group between 20%
and 50%.
If need be, accounting policies of associates will be standardized with the Group accounting policies.
Interests in associates are consolidated under the equity method in the consolidated financial statements as described
in the paragraph below.
Equity method
The Group accounts for its interests in associates and joint ventures under the equity method. Wherever necessary,
accounting policies of associates and joint ventures have been changed to ensure consistency with the IFRS framework.
Under the equity method, investments in associates are carried in the consolidated balance sheet at cost, including any
goodwill arising and transaction costs. Earn-outs are initially recorded at fair value and adjustments recorded through
cost of investment when their payments are probable and can be measured with sufficient reliability.
Any excess of the cost of acquisition over the Group’s share of the net fair value of the identifiable assets, liabilities and
contingent liabilities of the associate or joint venture recognized at the date of acquisition is recognized as goodwill.
The goodwill is included within the carrying amount of the investment and is assessed for impairment as part of the
investment. In case of an associate or joint venture purchased by stage, the Group uses the cost method to account for
changes from non-consolidated investments category to “Investments in joint ventures and associates”.
Associates and joint ventures are presented in the specific line “Investments in joint ventures and associates” of the
balance sheet, and the Group’s share of its associates’ profits or losses is recognized in the line “Share of net income
of equity-accounted investments” of the income statement whereas its share of post-acquisition movements in reserves
is recognized in reserves.
Losses of an associate or joint venture in excess of the Group’s interest in that associate or joint venture are not
recognized, except if the Group has a legal or implicit obligation.
The impairment expense of investments in associates and joint ventures is recorded in the line “Share of net income of
equity-accounted investments” of the income statement.
According to IAS 28, if the financial statements of an associate used in applying the equity method are prepared as of
a different date from that of the investor, adjustments shall be made for the effects of significant transactions or events
that occur between that date and the date of the investor’s financial statements. In any case, the difference between
the end of the reporting period of the associate and that of the investor shall be no more than three months.
2.5.2. Assets held for sale
Non-current assets held for sale are presented on a separate line of the balance sheet when (i) the Group has made a
decision to sell the asset(s) concerned and (ii) the sale is considered to be highly probable. These assets are measured
at the lower of net carrying amount and fair value less costs to sell.
When the Group is committed to a sale process leading to the loss of control of a subsidiary, all assets and liabilities of
that subsidiary are reclassified as held for sale, irrespective of whether the Group retains a residual interest in the entity
after sale.
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2.5.3. Translation of financial statements denominated in currencies other than euro
Functional currency is the currency of the primary economic environment in which a reporting entity operates, which
in most cases, corresponds to the local currency. However, some reporting entities may have a functional currency
different from local currency when that other currency is used for the entity’s main transactions and faithfully reflects
its economic environment.
Assets and liabilities of entities whose functional currency is other than the euro are translated into euro at closing
exchange rate at the end of each reporting period while their income and cash flow statements are translated at the
average exchange rate for the period.
The currency translation adjustments resulting from the use of different currency rates for opening balance sheet
positions, transactions of the period and closing balance sheet positions are recorded in other comprehensive income.
Translation adjustments are transferred to the consolidated income statement at the time of the disposal of the related
entity.
Goodwill and fair value adjustments arising from the acquisition of entities whose functional currency is not euro are
designated as assets and liabilities of those entities and therefore denominated in their functional currencies and
translated at the closing rate at the end of each reporting period.
2.5.4. Business combinations
Business combinations completed between the 1 January 2004 and the 31 March 2010 have been recognised applying
the provisions of the previous version of IFRS 3.
Business combinations completed from the 1 April 2010 onwards are recognised in accordance with IFRS 3R.
The Group applies the acquisition method to account for business combinations. The consideration transferred for the
acquisition of a subsidiary is the sum of fair values of the assets transferred and the liabilities incurred by the acquirer
at the acquisition date and the equity-interest issued by the acquirer. The consideration transferred includes contingent
consideration, measured and recognized at fair value at the acquisition date.
For each business combination, any non-controlling interest in the acquiree may be measured:
• either at the acquisition-date fair value, leading to the recognition of the non-controlling interest’s share of
goodwill (full goodwill method) or;
• either at the non-controlling interest’s proportionate share of the acquiree’s identifiable net assets, resulting in
recognition of only the share of goodwill attributable to equity holders of the parent (partial goodwill method).
Acquisition-related costs are recorded as an expense as incurred.
Goodwill arising from a business combination is measured as the difference between:
• the fair value of the consideration transferred for an acquiree plus the amount of any non-controlling interests of
the acquiree and;
• the net fair value of the identifiable assets acquired and liabilities assumed at the acquisition date.
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Initial estimates of consideration transferred and fair values of assets acquired and liabilities assumed are finalised
within twelve months after the date of acquisition and any adjustments are accounted for as retroactive adjustments
to goodwill. Beyond this twelve-month period, any adjustment is directly recognised in the income statement.
Earn-outs are initially recorded at fair value and adjustments made beyond the twelve-month measurement period
following the acquisition are systematically recognised through profit or loss.
In case of a step-acquisition that leads to the Group acquiring control of the acquiree, the equity interest previously
held by the Group is remeasured at its acquisition-date fair value and any resulting gain or loss is recognised in profit
or loss.
2.5.5. Sales and costs generated by operating activities
Identification of performance obligations
Most contracts with customers do not contain more than a single performance obligation. Only a contract which is
executed in two stages starting with the supply of goods to a customer followed by services performed on the assets
built (maintenance) include two distinct performance obligations. The transaction price is allocated among the
performance obligations in proportion to the stand-alone selling prices of goods and services.
Contracts may provide customers with the option to acquire additional goods or services. Additional goods sold in the
frame of an option subsequently exercised or through a contract modification are accounted on a cumulative catch-up
basis with the first goods sold and treated, accordingly, as a single performance obligation.
Maintenance contract renewals are accounted for separately from the initial contract.
Service-type warranties are recognised as distinct performance obligations.
Measurement of sales and costs
The amount of revenue arising from a transaction is usually determined by the contractual agreement with the
customer. IFRS 15 provides restrictive guidance on the transaction price estimates and especially on variable
consideration and contract modifications.
The estimation of the transaction price should include variable amounts and/or variation orders to the extent that it is
highly probable that no significant reversal in the amount of cumulative revenues recognized will occur when the
uncertainty associated with these elements is subsequently resolved. The introduction of this constraint on the price
escalation estimates on the one hand, as well as the incorporation of amendments under negotiation on the other
hand, leads to recognize these effects on contract value at a later point in time, when they become enforceable.
In the case of “construction contracts” claims are considered in the determination of contract revenue only when it is
highly probable that the claim will result in additional revenue and the amount can be reliably estimated.
Penalties are first taken into account as an increase of contract costs and in a second step as a reduction of contract
revenue as soon as they are accepted.
Finally, a significant financial component should be introduced positively or negatively on revenue, when timing of cash
receipts and revenue recognition under cost to cost method differ substantially.
Production costs include direct costs (such as material, labour and warranty costs) and indirect costs. Warranty costs
are estimated on the basis of contractual agreement, available statistical data and weighting of all possible outcomes
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against their associated probabilities. Warranty periods may extend up to five years. Selling and administrative
expenses are excluded from production costs.
Recognition of sales and costs
Revenue on sale of manufactured products is recognised according to IFRS 15 at a point in time, i.e. essentially when
the control of the promised goods is transferred to the customer, which generally occurs on delivery. Revenue on short-
term service contracts is also accounted for at a point in time and recognised on performance of the related service. All
production costs incurred or to be incurred in respect of the sale are charged to cost of sales at the date of recognition
of sales.
Revenue on most of “construction contracts” and long-term service agreements is recognised according to IFRS 15
based on the percentage of completion method as they fulfill the requirements for revenue recognition over time: the
stage of completion is assessed on the cost to cost method. Revenue is recognised for each performance obligation
based on the percentage of costs incurred to date divided by the total costs expected at completion. Consequently, the
revenue for the period is the excess of revenue measured according to the percentage of completion over the revenue
recognised in prior periods.
Cost of sales on «construction contracts» and long-term service agreements is computed based on actual costs incurred.
When the outcome of a contract cannot be estimated reliably, but the Group expects to recover the costs incurred in
satisfying the contract, revenue is recognised only to the extent of the costs incurred until such time that the outcome
of the contract can be reasonably measured.
Costs incurred that are attributable to significant inefficiencies in the Group’s performance and that were not reflected
in the price of the contract when the contract was negotiated with the customer should not be included in the
percentage of completion formula and expensed when incurred.
When it is probable that contract costs at completion will exceed total contract revenue, the expected loss at completion
is recognised immediately as an expense. Bid costs are recorded as selling expenses when incurred.
2.5.6. Impairment of goodwill, tangible and intangible assets as well as Right-of-Use related to leased assets
Assets that have an indefinite useful life – mainly goodwill and intangible assets not yet ready to use – are not
amortised. Those assets as well as capitalised R&D are tested for impairment at least annually or when there are
indicators that they may be impaired. Other intangible and tangible assets as well as Right-of-Use related to leased
assets subject to amortisation are tested for impairment only if there are indicators of impairment.
The impairment test methodology is based on a comparison between the recoverable amount of an asset and its net
carrying value. If the recoverable amount of an asset or a cash-generating unit (CGU) is estimated to be less than its
carrying amount, the carrying amount is reduced to its recoverable amount and the impairment loss is recognised
immediately in the income statement. In the case of goodwill allocated to a group of CGUs, the impairment loss is
allocated first to reduce the carrying amount of goodwill and then to the other assets on a pro-rata basis of the carrying
amount of each asset.
A cash-generating unit is the smallest identifiable group of assets that generates cash inflows that are largely
independent of the cash inflows from other groups of assets. If an asset does not generate cash inflows that are largely
independent of other assets or groups of assets, the recoverable amount is determined for a cash-generating unit.
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The recoverable amount is the higher of fair value less costs to sell and value in use. The value in use is elected as
representative of the recoverable value. The valuation performed is based upon the Group’s internal three-year business
plan. Cash flows beyond this period are estimated using a perpetual long-term growth rate for the subsequent years.
The recoverable amount is the sum of the discounted cash flows and the discounted terminal residual value. Discount
rates are determined using the weighted-average cost of capital.
Impairment losses recognised in respect of goodwill cannot be reversed.
The impairment losses recognized in respect of other assets than goodwill may be reversed in a later period and
recognized immediately in the income statement. The carrying amount is increased to the revised estimate of
recoverable amount, so that the increased carrying amount does not exceed the carrying amount that would have been
determined, if no impairment loss had been recognized in prior years.
2.6. Climate change consequences
The Group initiated last year an in-depth analysis of the risks and opportunities related to the consequences of climate
change that could affect its business.
Asset resilience
This consideration led the Group to conduct an assessment of the resilience and adaptation of its sites and facilities to
identify any physical risk, to which it could be exposed due to climate change towards 2050. Based on a detailed review
carried out by an independent third party, the Group measured its exposure to potential physical risks on the basis of
the Global Warming Scenario SSP5 8.5 (“pessimistic scenario”, end of century warming at 3.3 to 5.7°C) and SSO2 4.5
(“optimistic scenario”, end of century warming at 2.1 to 3.5°C). These scenarios could lead to a potential increase of
operating and/or capital expenditure, especially in extreme scenarios. At 31 March 2024, to the best of the Group
knowledge and considering the results of this analysis, Alstom did not identify any triggering events that could change
the environmental risks assessments initiated in March 2023. Therefore, Alstom does not foresee significant
environmental risks that might negatively impact in the coming years the useful lives and/or residual values of non-
financial assets such as intangible, tangible fixed assets as well as rights of use.
Carbon neutrality
The Group is committed to achieve carbon neutrality in its value chain by 2050. The projects decided and deployed in
this trajectory might have an impact on the Group’s investment strategy, research and development expenditure. Also,
the Group is integrating more systematically the transition risks and opportunities into the assessment of its financial
performance and the valuation of its assets and liabilities. At this stage, none of the projects decided or risks or
opportunities identified have led to material impacts on the financial statements. The group will continuously update
and improve its analysis. New projects or elements identified could lead, in the future, to review certain accounting
judgments or estimates.
Impairment tests
The Group's internal business plan used for the impairment tests takes into account growth assumptions which are
consistent with the trends observed in the industry by independent market studies and, confirming a growing demand
for smart and green mobility solutions in the next generations of products and services and for alternatives to diesel.
These impacts are reflected in the long-term growth rate used by the Group, of 3% (see Note 11.1). The Group has also
set carbon reduction targets for its own operations and supply chain leading to an increase in some operating and
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investment costs (eg. processes or systems targeting energy efficiency in factories, development of external or in-house
supply of green energy), with no material impact identified on cash flows so far.
Variable compensation and share-based payment plans
The commitments made by the Group in the fight against global warning are reflected in the variable compensation
targets set for the Group’s senior executives and managers. The Alstom Short Term Incentive (STI) Scheme relies on
the Group’s performance criteria, which have included since 2022/23 a target of reduction in direct and indirect CO2
emissions in the operations (scope 1&2). More than 29,500 employees benefit from such annual variable
compensation. The share-based payment plans, set on annual basis, have included since 2020 a performance condition
related to the reduction of energy consumption in the Group’s products and services offerings. These plans concern
nearly 1,500 beneficiaries. In the latest plan (PSP 2023 – launched in May 2023), this criterion stood for 15% of the
shares allocation (See Note 30).
Committed Guarantee Facility Agreement
In July 2022, the Group extended its Committed Guarantee Facility Agreement (“CGFA”) and included an incentive-
based mechanism linked to sustainability performance criteria. The CGFA is used by the Group for the issuance of
commercial bank guarantees issued for the benefit of its customers in order to guarantee the performance
commitments or any contingent liabilities that it may have towards its customers (see Note 32).
To the best of the Group’s knowledge and at the stage of completion of the projects in progress, the Group has not
identified any significant impact in the preparation of its Consolidated Financial Statements as of 31 March 2024.
Virtual Power Purchase Agreement
By signing a Virtual Power Purchase Agreement (VPPA) on the 10th of July 2023, in order to secure the procurement
of green power certificates for 10 years, Alstom achieves an important milestone to accelerate decarbonisation related
to energy consumption of its facilities and sites in Europe. The power will be purchased as produced from a Spanish
solar asset, for an estimated volume of 160 GWh/year. The solar farm which will be built in Andalusia is expected to
start operating early 2025 and is deemed to cover 80% of Alstom’s electricity consumption in Europe. Accounting-wise,
the VPPA is a split between i) a non-financial host contract (the obligation to deliver the green power certificates from
the producer to Alstom), which is accounted for as an executory contract (application of own use exemption as per
IFRS 9), and ii) a power price related embedded derivative (due to systematic net settlement between the power
contractual price and the power grid market price) which is accounted for at fair value through Profit and Loss. This
contract does not have significant impacts on the Group Financial Statements as of 31 March 2024.
2.7. Amortisation of Purchase Price Allocation
The amortisation expense of assets exclusively acquired in the context of business combinations is accounted in costs
of sales for backlog, product and project, customer relationships, as well as property, plant and equipment in R&D costs
for acquired technology, and in share in net income of equity-accounted investment for investments in Joint Ventures
and Associates. The PPA amortisation impacting the pre-tax income (meaning cost of sales and R&D costs) amounts
to €(369) million at 31 March 2024, compared to €(416) million at 31 March 2023, while the PPA amortisation
impacting the share in net income of equity-accounted investment amounts to €(10) million at 31 March 2024,
compared to €(11) million at 31 March 2023.
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C. SEGMENT INFORMATION
NOTE 3. SEGMENT INFORMATION
The Group financial information is reviewed through multiple axes of analysis (regions, sites, contracts, functions,
products) reflective of the whole organization and the integrated manufacturing process and nature of its products and
services, in particular turnkey solutions. None of these axes taken individually allows for a full comprehensive analysis
of the operating profit nor a segmental information in the balance sheet.
The segment information issued to the Alstom Executive Committee, identified as the Group’s Chief Operating Decisions
Maker (CODM) presents Key Performance Indicators at Group level. Strategic decisions and resource allocation are
driven based on this reporting. The segment information has been adapted according to a similar method as those used
to prepare the consolidated financial statements.
3.1. Sales by product
Year ended
(in € million)
At 31 March 2024
At 31 March 2023
Rolling stock
9,123
8,784
Services
4,272
3,817
Systems
1,578
1,476
Signalling
2,646
2,430
TOTAL GROUP
17,619
16,507
3.2. Key indicators by geographic area
Sales by country of destination
Year ended
(in € million)
At 31 March 2024
At 31 March 2023
Europe
10,185
9,936
of which France
2,752
2,540
Americas
3,466
2,843
Asia/Pacific
2,424
2,378
Africa/Middle-East /Central Asia
1,544
1,350
TOTAL GROUP
17,619
16,507
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Non-current assets by country of origin
Non-current assets by country of origin are defined as non-current assets other than those related to financial debt, to
employee defined benefit plans and deferred tax assets (See Section E).
(in € million)
At 31 March 2024
At 31 March 2023
Europe
3,860
3,800
of which France
1,479
1,587
Americas
765
816
Asia/Pacific
1,260
1,532
Africa/Middle-East/Central Asia
262
286
Total excluding goodwill
6,148
6,434
Goodwill
9,093
9,380
TOTAL GROUP
15,241
15,814
3.3. Orders Backlog
Product breakdown
(in € million)
At 31 March 2024
At 31 March 2023
Rolling stock
41,215
42,806
Services
34,257
30,741
Systems
8,682
6,330
Signalling
7,746
7,510
TOTAL GROUP
91,900
87,387
Geographic breakdown
(in € million)
At 31 March 2024
At 31 March 2023
Europe
52, 381
49,146
of which France
13,365
13,121
Americas
12,775
13,796
Asia/Pacific
13,390
12,191
Africa/Middle-East /Central Asia
13,354
12,254
TOTAL GROUP
91,900
87,387
During budget exercises, Alstom re-assesses how the company backlog evolution impacts the future sales cycles.
Budget processes are designed to estimate, based on the latest contract costs and planning assumptions, how the
contract sales from backlog can develop over time. The March 2024 backlog contribution to the next three fiscal years
revenue is expected to reach €40 billion to €43 billion range.
3.4. Information about major customers
No external customer represents individually 10% or more of the Group’s consolidated sales.
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D. OTHER INCOME STATEMENT
NOTE 4. RESEARCH AND DEVELOPMENT EXPENDITURE
Research expenditure is expensed as incurred. Development costs are expensed as incurred unless the project they
relate to meets the criteria for capitalisation (see Note 11). Research and Development costs also cover product
sustainability costs booked when incurred.
Year ended
(in € million)
At 31 March 2024
At 31 March 2023
Research and development gross cost
(749)
(682)
Financing received (*)
123
103
Research and development spending, net
(626)
(579)
Development costs capitalised during the period
178
142
Amortisation expenses (**)
(161)
(143)
RESEARCH AND DEVELOPMENT EXPENSES
(609)
(580)
(*) Financing received includes public funding amounting to €84 million at 31 March 2024, compared to €65 million at 31 March 2023.
(**) Including €(60) million of amortisation expenses related to purchase price allocation compared to €(61) million at 31 March 2023.
As of end of March 2024, Alstom Group invested €749 million in Research and Development, notably to develop:
• its very high-speed trains Avelia Horizon™;
• its Avelia
stream
TM
;
• its Hydrogen and Battery shunter locomotives & freight locomotives;
• its Coradia stream™ range;
• its Citadis™ USA;
• its Adessia™ commuter;
• its TRAXX
TM
Multi-system 3 locomotives;
• its Green re-tractioning initiatives (battery and hydrogen);
• its digital solutions set, with for instance HealthHub™, to optimize reliability and availability while
maximizing the useful life of components for sustainability improvement;
• its Onvia Control™ L2 A and Onvia Control™ L2 B for Atlas ERTMS;
• its Onvia Cab™ (for ETCS onboard.);
• its CBTC solutions solutions Urbalis Flo™, Urbalis Forward™ and Urbalis Fluence™;
• its Urbalis Vision for Operational Control Centers Urbalis Vision Forward™;
• its Autonomous Mobility solutions for Passengers & Freight trains, where Alstom had a successful GoA4
(Grade of Automation 4) test with SNCF under real mainline operating conditions;
• its new SaaS platform that will enhance the global digital offering;
• its AI-driven solutions, as for example Radioscopy, to optimize radio communication.
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NOTE 5. SELLING AND ADMINISTRATIVE EXPENSES
Selling Costs are expenses incurred in the marketing and selling of a product or a service. Selling Costs typically include
expenditure in the following departments: Market & Strategy, Sales & Business Development and Communication as
well as the direct labour costs of operational population such as engineering working on the tendering phase.
Administrative Costs are structure and operational support costs. Administrative Costs include mostly expenditure of
Headquarter and site functions having a transverse role, in particular Finance, Human Resources, Legal and
Information Systems departments.
Selling and administrative expenses are recognized in charges as incurred.
NOTE 6. OTHER INCOME AND OTHER EXPENSES
Other income and expenses are representative of items which are inherently difficult to predict due to their unusual,
irregular or non-recurring nature.
Other income may include capital gains on disposal of investments (except equity-method investment disposal recorded
on the line “Share in net income of equity-accounted investments”) or activities and capital gains on disposal of tangible
and intangible assets arising from activities disposed or facing restructuring plans, any income associated to past
disposals as well as a portion of post-employment and other long-term defined employee benefits (plan amendments,
impact of curtailments and settlements and actuarial gains on long-term benefits other than post-employment
benefits).
Other expenses include capital losses on disposal of investments (except equity-method investment disposal recorded
on the line “Share in net income of equity-accounted investments”) or activities and capital losses on disposal of
tangible and intangible assets relating to activities facing restructuring plans as well as any costs associated to past
disposals, restructuring costs, rationalisation costs, significant impairment losses on assets, costs incurred to realize
business combinations, litigation costs that have arisen outside the ordinary course of business and a portion of post-
employment and other long-term defined benefit expense.
Year ended
(in € million)
At 31 March 2024
At 31 March 2023
Capital gains / (losses) on disposal of business
-
(30)
Restructuring and rationalisation costs
(147)
(65)
Integration costs, impairment loss and other
(361)
(274)
OTHER INCOME / (EXPENSES)
(508)
(369)
As of 31 March 2024, restructuring and rationalisation costs are mainly related to the “Autumn” restructuring plan
(see Note 1.1).
Over the period ended at 31 March 2024, Integration costs, impairment loss and other include mainly:
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• €(142) million of integration costs related to Bombardier Transportation’s integration;
• €(118) million related to some legal proceedings and other risks occurring outside the ordinary course of
business, mainly for two legal proceedings in U.S.A. and Turkey (see Note 33);
• €(30) million related to impairments mainly on write-off of assets due to exit from Russia;
• €(71) million related to other exceptional expenses that are outside of the ordinary course of business by
nature, of which €(36) million of consequential impacts from savings plan initiated in Germany.
NOTE 7. FINANCIAL INCOME (EXPENSES)
Financial income and expenses include:
• Interest income representing the remuneration of the cash position;
• Interest expense related to the financial debt (financial debt consists of bonds, other borrowings, and lease
obligations);
• Cost of commercial and financial foreign exchange hedging (forward points);
• The financial component of the employee defined benefits expense (net interest income (expenses) and
administration costs).
• The significant financing component under IFRS 15.
• Other expenses paid to financial institutions for financing operations;
Interest income and expense related to respectively cash remuneration and financial debt are presented on a gross
basis and are respectively classified in financial income and financial expense in the consolidated income statement.
All other financial items listed above are presented on a net basis. Positive amounts are presented in financial income,
negative amounts are presented in financial expense in the consolidated income statement.
Year ended
(in € million)
At 31 March 2024
At 31 March 2023
Interest income
27
10
Interest expense on borrowings and on lease obligations
(180)
(62)
NET FINANCIAL INTERESTS ON DEBT
(153)
(52)
Net gains/(losses) of foreign exchange hedging
20
26
Net financial expense from employee defined benefit plans
(31)
(26)
Financial component on contracts
(19)
(1)
Other financial income/(expenses)
(59)
(50)
NET FINANCIAL INCOME/(EXPENSES)
(242)
(103)
Total financial income
47
36
Total financial expense
(289)
(139)
Net financial income/(expenses) on debt is the cost of borrowings net of income from cash and cash equivalents.
As of 31 March 2024, interest income amounts to €27 million, representing mainly the remuneration of the Group’s
cash position over the period, while interest expenses amount to €(180) million including €(21) million of interest
expenses on lease obligations.
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The net gain of foreign exchange hedging of €20 million includes primarily the amortized cost of carry (forward points)
of foreign exchange hedging implemented to hedge the exposures in foreign currency arising from commercial contracts
and from hedging of intercompany financial positions.
The net financial expense from employee defined benefit plans of €(31) million represents the interest costs on
obligations net of interest income from fund assets calculated using the same discount rate.
The financial component of €(19) million represents the recognition of financial revenue under IFRS15.
Other net financial income/expenses of €(59) million include mainly bank and other fees of which a large part relates
to commitment fees paid on guarantee facilities, revolving facilities and fees paid on bonds.
NOTE 8. TAXATION
The Group computes taxes in accordance with prevailing tax legislation in the countries where income is taxable.
The current income tax charge is calculated on the basis of the tax laws enacted or substantively enacted at the balance
sheet date in the countries where the company’s subsidiaries and associates operate and generate taxable income.
Management periodically evaluates positions taken in tax returns with respect to situations in which applicable tax
regulation is subject to interpretation and establishes provisions where appropriate on the basis of amounts expected
to be paid to the tax authorities.
Temporary differences arising between the carrying amount and the tax base of assets and liabilities, unused tax losses
and unused tax credits are identified for each taxable entity (or each tax group when applicable). Corresponding
deferred taxes are calculated at the enacted or substantively enacted tax rates that are expected to apply in the period
when the asset is realised or the liability settled.
Deferred tax assets are recognised for all deductible temporary differences, unused tax losses and unused tax credits
to the extent that it is probable that taxable profits will be available in the future against which the deductible
differences, unused tax losses and unused tax credits can be utilised. The carrying amount of deferred tax assets is
reviewed at each balance sheet date.
Deferred tax liabilities are recognised for all taxable temporary differences, with the exception of certain taxable
temporary differences between the Group’s share in the net assets in subsidiaries, joint arrangements and associates
and their tax bases. The most common situation when such exception applies relates to undistributed profits of
subsidiaries where distribution to the shareholders would trigger a tax liability: when the Group has determined that
profits retained by the subsidiary will not be distributed in the foreseeable future, no deferred tax liability is recognised.
Nevertheless, the exception is no more applicable to investments/subsidiaries being disposed since it becomes probable
that the temporary difference will reverse in the foreseeable future with the sale of the subsidiaries. Therefore, in this
specific case, deferred tax liabilities are recognised.
Deferred tax assets and liabilities are offset when both of the following conditions are met:
• the Group has a legally enforceable right to set off current tax assets against current tax liabilities, and
• the deferred tax assets and liabilities relate to income taxes levied by the same taxation authority.
Deferred tax is charged or credited to net income, except when it relates to items charged or credited directly to other
comprehensive income, in which case the deferred tax is classified in other comprehensive income.
27/90
8.1. Analysis of income tax charge
The following table summarises the components of income tax charge:
Year ended
(in € million)
At 31 March 2024
At 31 March 2023
Current income tax charge
(110)
(170)
Deferred income tax charge
104
136
INCOME TAX CHARGE
(6)
(34)
The following table provides reconciliation from the income tax charge valued at the French statutory rate to the actual
income tax charge, free of the temporary additional contributions:
Year ended
(in € million)
At 31 March 2024
At 31 March 2023
Pre-tax income
(253)
(182)
Statutory income tax rate of the parent company
25,83%
25,83%
Expected tax charge
65
47
Impact of:
- Difference between normal tax rate applicable in France and normal tax rate in
force in jurisdictions outside France
8
13
- Changes in unrecognised deferred tax assets
(101)
(70)
- Changes in tax rates
(9)
(1)
- Additional tax expenses (withholding tax, CVAE in France and IRAP in Italy)
(31)
(34)
- Permanent differences and other
62
11
INCOME TAX CHARGE
(6)
(34)
Effective tax rate*
n.m.
n.m.
(*) Due to negative pre-tax income, effective tax rate of the period is not meaningful: excluding the effect on the pre-tax income of the €369 million
amortisation of Purchase Price Allocation related to tangibles and intangibles assets (see Note 2.7), effective tax rate is 28%, as compared to 27% as
at 31 March 2023.
Permanent differences and other notably include a €30 million positive impact in relation with tax losses recapture in
Spain.
8.2. Deferred tax assets and liabilities
Year ended
(in € million)
At 31 March 2024
At 31 March 2023
Deferred tax assets
673
596
Deferred tax liabilities
(91)
(128)
DEFERRED TAX ASSETS, NET
582
468
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The following table summarises the significant components of the Group’s net deferred tax assets:
(in € million)
At 31 March
2023
Change in P&L
Change in
equity
Translation
adjustments
and other
changes
At 31 March
2024
Differences between carrying amount and tax
basis of tangible and intangible assets
(141)
(41)
-
6
(176)
Accruals for employee benefit costs not yet
deductible
25
(88)
2
(1)
(62)
Provisions and other accruals not yet deductible
175
23
-
(3)
195
Differences in recognition of margin on
"construction contracts"
80
8
-
(5)
83
Tax loss carry forwards
380
167
-
7
554
Other
(51)
35
(8)
12
(12)
NET DEFERRED TAXES ASSET/(LIABILITY)
468
104
(6)
16
582
The adoption of the amendment to IAS 12 - Deferred tax related to assets and liabilities arising from a single transaction
has no material impact on the Group’s financial statements.
(in € million)
At 31 March
2022
Change in P&L
Change in
equity
Translation
adjustments
and other
changes
At 31 March
2023
Differences between carrying amount and
tax basis of tangible and intangible assets
(240)
18
-
81
(141)
Accruals for employee benefit costs not yet
deductible
49
2
(5)
(21)
25
Provisions and other accruals not yet
deductible
146
(2)
-
31
175
Differences in recognition of margin on
"construction contracts"
68
11
-
1
80
Tax loss carry forwards
232
156
-
(8)
380
Other
70
(49)
(7)
(65)
(51)
NET DEFERRED TAXES ASSET/(LIABILITY)
325
136
(12)
19
468
The Business plan prepared by Management by extrapolating the latest three-year business plan leads to a reasonable
assurance on the utilization of net deferred tax assets within a maximum period of 6 years in accordance with the
Group's strategy, for an amount of €582 million at the end of March 2024, mainly in France and in the United Kingdom
for a total amount of €278 million.
The 6 years horizon (compared to 5 years for the fiscal year ended 31 March 2023) retained by management is
supported by the increased visibility provided by several factors:
- The increase of the Backlog (€91.9 billion as of 31 March 2024, compared to €87.4 billion as of 31 March
2023 (see Note 3.3) and €81.0 billion as of 31 March 2022);
- The product mix in backlog evolution in accordance with the Group’s strategy: 37% as of 31 March 2024
(compared to 35% as of 31 March 2023 and 33% as of 31 March 2022) of services contracts with higher
visibility and lower risk profile.
The fiscal year 2023/24 P&L impact is a net of DTA recognition in geographies where expected use of tax losses carried
forward has improved (mainly in France and in the United Kingdom) and depreciation in geographies where recognition
is not anymore supported by the Management Business Plan (mainly the United States, Germany and Canada).
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At 31 March 2024, based on the best estimate of operating and taxable results, the net deferred tax assets relating to
tax loss carry forwards and deductible temporary differences recognised in the balance sheet in France amount to €172
million out of a total of €702 million. Tax losses can be carried forward indefinitely in France on 50% of taxable income
of the year. Part of France revenues are subject to a patent box regime with a reduced tax rate, limiting deferred tax
assets recognition.
In the United Kingdom, tax losses can be carried forward indefinitely. Net deferred tax assets recognized as at 31 March
2024 amount to €106 million out of €206 million deferred tax assets.
Unrecognised deferred tax assets amount to €2,547 million at 31 March 2024 (€2,436 million at 31 March 2023).
Most of these unrecognised deferred taxes are originated from tax losses carried forward (€2,208 million at 31 March
2024 and €2,072 million at 31 March 2023), out of which €1,524 million are not subject to expiry at 31 March 2024
(€1,547 million at 31 March 2023).
NOTE 9. FINANCIAL STATEMENTS OF DISCONTINUED OPERATIONS AND ASSETS HELD
FOR SALE
A discontinued operation is a component of an entity that either has been disposed of, or is classified as held for sale,
and:
• represents a separate major line of business or geographical area of operations;
• is part of a single co-ordinated plan to dispose of a separate major line of business or geographical area of
operations; or
• is a subsidiary acquired exclusively with a view to resale.
The results and cash flows of discontinued operations are presented on a separate line in the consolidated income
statement and statement of cash flows for each period. The Group decides whether a discontinued operation represents
a major line of business or geographical area of operations based on both qualitative criteria (technology, market,
products, geographic region) and quantitative criteria (revenue, earnings, cash flows, assets). If the assets held by a
discontinued operation are classified as held for sale they are measured at the lower of their carrying amount and fair
value less costs to sell.
In compliance with IFRS 5, the Group applies the following specific measurements which impact the consolidated
financial statements:
• Discontinued operations (including non-current assets, current assets and the related liabilities classified as held
for sale), as a whole, are measured at the lower of their carrying amount and fair value less costs to sell;
• Consequently, goodwill, tangible and intangible assets are no longer reviewed for impairment;
• The exception of IAS 12 consisting in not recognising mechanical deferred taxes resulting from the difference
between tax and consolidated values of the investments/subsidiaries being disposed is no more applicable since it
becomes probable that the temporary difference will reverse in the foreseeable future with the sale of the
subsidiaries. Thus, deferred tax liabilities are recognised with an income statement impact presented within the
“Net profit from discontinued operations”;
• Amortisation on non-current assets classified as “assets held for sale” ceases at the date of IFRS 5 application;
• Costs specifically incurred in the context of the deal are presented in the P&L within the “Net profit from
discontinued operations”;
• All intercompany balance-sheet and income statement positions are eliminated.
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9.1 Discontinued Operations
The line “Net profit from discontinued operations”, recognized in the Consolidated Income Statement, includes the
reassessment of liabilities related to the disposal of previous activities. Over the fiscal year ended 31 March 2024,
Alstom recognized a loss for €(2) million, compared to €(4) million at 31 March 2023.
Cash flows related to the disposal of previous activities arising from discontinued operations for the fiscal year amounts
to €(8) million.
9.2 Assets held for sale
In accordance with IFRS5 principles, the assets and liabilities related to the North American Signalling Business were
reclassified as Assets/Liabilities held for sale at 31 March 2024.
The group of assets held for sale considered for each above transaction is measured at the lower of its carrying amount
and estimated fair value less costs to sell.
The net Assets Held for Sale on the North American Signalling Business perimeter amounts to €568 million, including
Intellectual property rights for €20 million.
A non-current asset, while part of disposal classified as held for sale, is neither depreciated nor amortised.
The overall impact of the assets/liabilities held for sale is presented in the table below:
(in € million)
At 31 March 2024
Goodwill & Intangible assets (*)
357
Property, plant and equipment
36
Other non-current assets
28
Total non-current assets
421
Inventories & Contract assets
192
Trade receivables & other current assets
78
Total current assets
270
TOTAL ASSETS HELD FOR SALE
691
(*) Of which €302 million of goodwill.
(in € million)
At 31 March 2024
Total non-current liabilities
12
Current provisions & contract liabilities
47
Trade payables & Other current liabilities
64
Total current liabilities
111
TOTAL LIABILITIES HELD FOR SALE
123
As this disposal group does not meet the definition of discontinued operations, Profit and Loss is presented within the
current activities of the Group. The cost to sell this disposal group amounts to €2 million at 31 March 2024.
NOTE 10. EARNINGS PER SHARE
Basic earnings per share are computed by dividing the period net profit (loss) before the financial cost (net of tax) of
bonds reimbursable with shares, by the weighted average number of outstanding shares during the period increased
by the weighted average number of shares to be issued on reimbursement of bonds reimbursable with shares (“ORA”).
31/90
Diluted earnings per share are computed by dividing the period net profit (loss) before the financial cost (net of tax) of
bonds redeemable into shares, by the weighted average number of outstanding shares during the period adjusted in
order to take into consideration all dilutive instruments (ORA, stock options, free shares).
10.1. Earnings
Year ended
(in € million)
At 31 March 2024
At 31 March 2023
Net Profit (Loss) attributable to equity holders of the parent:
• From continuing operations
(307)
(128)
• From discontinued operations
(2)
(4)
EARNINGS (LOSSES) ATTRIBUTABLE TO EQUITY HOLDERS OF THE PARENT
(309)
(132)
10.2. Number of shares
Year ended
number of shares
At 31 March 2024
At 31 March 2023
Weighted average number of ordinary shares used to calculate basic earnings per
share
383,027,548
375,523,158
Effect of dilutive instruments other than bonds reimbursable with shares:
• Stock options and performance shares (LTI plan)
1,597,281
2,326,630
WEIGHTED AVERAGE NUMBER OF ORDINARY SHARES USED TO CALCULATE DILUTED
EARNINGS PER SHARES
384,624,829
377,849,788
10.3. Earnings per share
Year ended
(in €)
At 31 March 2024
At 31 March 2023
Basic earnings (losses) per share
(0.81)
(0.35)
Diluted earnings (losses) per share
(0.80)
(0.35)
Basic earnings (losses) per share from continuing operations
(0.80)
(0.34)
Diluted earnings (losses) per share from continuing operations
(0.79)
(0.34)
Basic earnings (losses) per share from discontinued operations
(0.01)
(0.01)
Diluted earnings (losses) per share from discontinued operations
(0.01)
(0.01)
32/90
E. NON-CURRENT ASSETS
NOTE 11. GOODWILL AND INTANGIBLE ASSETS
Goodwill and intangible assets with indefinite useful lives are reviewed for impairment at least annually and whenever
events or circumstances indicate that they might be impaired. Such events or circumstances are related to significant,
unfavourable changes that are of a lasting nature and affect either the economic environment (i.e. inflation, geopolitical
crises, etc) or the assumptions (i.e. contract execution, procurement, etc). An impairment loss is recognised when the
recoverable value of the assets tested becomes lower than their carrying value.
In the Group, goodwill cannot be allocated on a non-arbitrary basis to individual cash-generating units, but only to
groups of cash-generating units. As a result, the lowest level within the entity at which the goodwill is monitored for
internal management purposes comprises a number of cash-generating units to which the goodwill relates, but to
which it cannot be allocated.
Due to the organization and the increasing number of integrated services leading to complete and global turnkey
solutions, financial information issued is presented through various axes of analysis (regions, sites, contracts, functions,
products). As a result, Free Cash Flow, basis of the impairment tests of goodwill is only relevant at Group level.
Therefore, goodwill acquired in case of business combinations is only monitored and ultimately tested at group level.
11.1. Goodwill
(in € million)
At 31 March 2023
Acquisition and
adjustments on
preliminary
goodwill
Transfer to
Assets held for
sale (*)
Translation
adjustments and
other changes
At 31 March 2024
GOODWILL
9,380
8
(302)
7
9,093
Of which:
Gross value
9,380
8
(302)
7
9,093
Impairment
-
-
-
-
-
(*) Corresponds to the reclassification of the Alstom Group goodwill allocated to North American Signalling Business activities as “Assets held for
sale” for an amount of € 302 million (see Note 9.2).
Goodwill impairment test
As of 31 March 2024, Alstom tested the value of goodwill applying valuation methods consistent with previous years.
Alstom ensured that the recoverable amount exceeded its carrying value (including goodwill).
Presentation of key assumptions used for the determination of recoverable amounts
The value in use is determined as the discounted value of future cash flows by using cash flow projections for the next
three years consistent with the Group’s internal business plan, the extrapolation of the two following years and terminal
value.
Those two years extrapolation and terminal value are consistent with internal business plan trend assuming:
• sales growth rates converging towards long term growth rate of 3% (see below);
• continuous Adjusted EBIT margin (corresponding to the ratio “aEBIT” over Sales) increase resulting from (i)
an enhanced margin in backlog thanks to sound order intake, completion of the challenging legacy projects
and favourable mix effect, (ii) an improved execution through operational excellence initiatives and footprint
33/90
rationalization, (iii) savings on indirect procurement costs and overheads following costs efficiency programs
launched and (iv) strong R&D costs monitoring.
Alstom's management's assumptions used for the determination of terminal value, notably Adjusted EBIT margin, are
in line with the mid-term target communicated to the market.
The value in use is mainly driven by the terminal value which is particularly sensitive to changes in the assumptions on
the discount rate after tax, the long-term growth rate and the terminal value Adjusted EBIT margin.
Alstom has opted for the inclusion of the share in net income of the equity-accounted investments into the aEBIT when
these are considered to be part of the operating activities of the Group (because there are significant operational flows
and/or common project execution with these entities). This mainly includes Chinese joint-ventures, namely CASCO,
Alstom Sifang (Qingdao) Transportation Ltd, Jiangsu ALSTOM NUG Propulsion System Co. Ltd. and Changchun
Changke Alstom Railway Vehicles Company Ltd.
The indicator “aEBIT” corresponds to Earning Before Interests and Tax adjusted with the following elements:
- net restructuring expenses (including rationalisation costs);
- tangibles and intangibles impairment;
- capital gains or loss/revaluation on investments disposals or controls changes of an entity;
- any other non-recurring items, such as some costs incurred to realise business combinations and amortisation of
an asset exclusively valued in the context of business combination, as well as litigation costs that have arisen
outside the ordinary course of business;
- and including the share in net income of the operational equity-accounted investments.
A non-recurring item is a “one-off” exceptional item that is not supposed to occur again in following years and that is
significant.
The main assumptions used to assess the recoverable amounts of goodwill are as follows:
Net carrying amount of goodwill at 31 March 2024 (in € million)
9,093
Value elected as representative of the recoverable value
Value in use
Number of years over which cash flow estimates are available
3 years
Extrapolation period of cash flow estimates
2 years
Long-term growth rate at 31 March 2024
3.0%
Long-term growth rate at 31 March 2023
3.0%
After tax discount rate at 31 March 2024 (*)
9.25%
After tax discount rate at 31 March 2023(*)
9.0%
(*) The application of pre-tax discount rates to pre-tax cash flows leads to the same valuation of Group Generating Units.
Discount rate is based on weighted average cost of capital (WACC) which is calculated for the Group based on a risk-
free rate and a market risk premium. The current market assessment of the risks specific to Group activity is reflected
by taking into account specific peer group information on industry beta, leverage and cost of debt. The parameters for
calculating the discount rate are based on external sources of information.
The discount rate has been updated from 9.0% to 9.25% compared to March 2023 as a result of the combination of the
increase in the risk free rates and the decrease in equity risk premium over the period.
34/90
The long-term growth rate has not changed since March 2023 as it remains consistent with current acceleration of rail
market momentum confirmed by independent market studies and the positive evolution of the Group backlog which
provides strong visibility over future revenues.
Sensitivity of the values in use to key assumptions can be presented as follows:
(in € million)
aEBIT Margin
-25bp
+25bp
(430)
430
After tax discount rate
-25bp
+25bp
858
(792)
Long-term growth rate
-25 bp
+25 bp
(651)
705
The current economic and political context creates uncertainties on business activities (namely inflation, increase of
the price of certain commodities, energy, supply chain disruptions …).This led the Group to take those into consideration
in the key assumptions as well as in the business plan used for the impairment test performed in the frame of the
preparation of the Group’s consolidated financial statements, based on its best reasonable estimates and the visibility
available for its operations at 31 March 2024.
The impairment tests confirmed that the recoverable amount comfortably exceeds its carrying value at 31 March 2024.
Some enlarged sensitivity analyses were performed with regards to key assumptions, that would not change the
conclusions of the impairment test. Namely, a (100) basis point change in the discount rate or in the long-term growth
rate or in the Adjusted EBIT margin (versus the usual sensitivities disclosed in the table above) would lead to a
recoverable amount still exceeding its carrying value at 31 March 2024.
11.2. Intangible assets
Intangible assets include acquired intangible assets (such as technology and licensing agreements) and internally
generated intangible assets (mainly development costs).
Acquired intangible assets
Acquired intangible assets are initially measured at cost and amortised on a straight-line basis over their estimated
useful lives. Useful lives can extend to twenty years due to the long-term nature of the underlying contracts and
activities. The amortisation expense of assets acquired through ordinary transactions is recorded in cost of sales,
research and development expenditure, selling or administrative expenses, based on the function of the underlying
assets. The amortisation expense of assets exclusively acquired in the context of a business combination is recognized
in costs of sales for backlog, product and project as well as customer relationships and in R&D for acquired technology
(formerly in other expenses).
Internally generated intangible assets
Development costs are capitalised if and only if the project they relate to meet the following criteria:
• The project is clearly defined and its related costs are separately identified and reliably measured;
• The technical feasibility of the project is demonstrated;
• The intention exists to complete the project and to use or sell it;
• Adequate technical and financial resources are available to complete the project;
35/90
• It is probable that the future economic benefits attributable to the project will flow to the Group.
Capitalised development costs are costs incurred directly attributable to the project (materials, services, fees…),
including an appropriate portion of relevant overheads.
Capitalised development costs are amortised on a straight-line basis over the estimated useful life of the asset. The
amortisation charge is reported in research and development expenses.
Intangible assets not yet ready to use (not yet amortised) as well as capitalised R&D are reviewed for impairment
individually, at least annually and whenever events or changes in circumstances indicate the carrying amount of the
intangible assets may not be recoverable. Due to a lack of quoted market prices for intangible assets, their recoverable
value is usually determined based on the present value of future cash flows expected through their use or sale. An
impairment of intangible assets is booked when the carrying amount exceeds its recoverable value. Other intangibles
are subject to amortisation, as a result, they are tested for impairment only if there are indicators of impairment.
(in € million)
At 31 March 2023
Additions / disposals
/ amortisation /
impairment
Other changes
including translation
adjustments (*)
At 31 March 2024
Development costs
1,659
178
2
1,839
Other intangible assets
3,574
10
(135)
3,449
Gross value
5,233
188
(133)
5,288
Development costs
(1,230)
(100)
(2)
(1,332)
Other intangible assets
(1,397)
(360)
69
(1,688)
Amortisation and impairment
(2,627)
(460)
67
(3,020)
Development costs
429
78
-
507
Other intangible assets
2,177
(350)
(66)
1,761
NET VALUE
2,606
(272)
(66)
2,268
(*) Other changes includes IFRS5 reclassification (see Note 9.2).
(in € million)
At 31 March 2022
Additions / disposals
/ amortisation /
impairment
Other changes
including translation
adjustments
At 31 March 2023
Development costs
1,552
132
(25)
1,659
Other intangible assets
3,648
12
(86)
3,574
Gross value
5,200
144
(111)
5,233
Development costs
(1,170)
(81)
21
(1,230)
Other intangible assets
(1,028)
(388)
19
(1,397)
Amortisation and impairment
(2,198)
(469)
40
(2,627)
Development costs
382
51
(4)
429
Other intangible assets
2,620
(376)
(67)
2,177
NET VALUE
3,002
(325)
(71)
2,606
36/90
NOTE 12. PROPERTY, PLANT AND EQUIPMENT
Property, plant and equipment are stated at cost less accumulated depreciation and any accumulated impairment loss.
When an item of property, plant and equipment is made up of components with different useful lives, the total cost is
allocated between the various components. Components are then separately depreciated.
Depreciation is computed using the straight-line method over the estimated useful lives of each component. The useful
lives most commonly used are the following:
Useful lives are reviewed on a regular basis and changes in estimates, when relevant, are accounted for on a prospective
basis. The depreciation expense is recorded in cost of sales, selling expenses or administrative expenses, based on the
function of the underlying assets.
Borrowing costs that are attributable to an asset whose construction period exceeds one year are capitalised as part of
the costs of the asset until the asset is substantially ready for use or sale.
When the Group is the lessee, leases (except short-term leases and leases of low-value assets below €5,000 when
new, for which rentals payable are charged to profit or loss on a straight-line basis over the term of the relevant lease)
are recognized as a Right-of-Use asset in Property, plant and equipment at the date at which the leased asset is
available for use. The corresponding liability to the lessor is included in the balance sheet as a financing obligation.
Lease payments are apportioned between finance charges and repayment of the lease obligation so as to achieve a
constant rate of interest on the remaining balance of the liability.
The cost of Right-of-Use assets includes the amount of lease liabilities recognized, initial direct costs incurred, and lease
payments made at or before the commencement date less any lease incentives received as well as any restoration costs
if an obligation is identified. Generally, Right-of-use asset is depreciated over the shorter of the asset's useful life and
the lease term on a straight-line basis. Nevertheless, when the lease transfers ownership of the underlying asset to the
lessee by the end of the lease term or the cost of the right-of-use asset reflects that the lessee will exercise a purchase
option, the lessee shall depreciate the right-of-use asset from the commencement date to the end of the useful life of
the underlying asset. Right-of-Use assets may be subject to impairment.
When the Group is the lessor, assets under operating leases, are also included in Property plant and equipment. Lease
income from operating leases is recognized on a straight-line basis over the term of the lease.
Estimated useful life
in years
Buildings
7-40
Machinery and equipment
3-25
Tools, furniture, fixtures and others
1-10
37/90
(in € million)
At 31 March
2023
Additions /
amortisation /
impairment
Disposals
Other changes
including
translation
adjustments (*)
At 31 March
2024
Land
281
1
-
3
285
Buildings
2,767
182
(13)
10
2,946
Machinery and equipment
2,064
65
(55)
36
2,110
Constructions in progress (**)
280
179
(2)
14
471
Tools, furniture, fixtures and other (**)
371
49
(10)
22
432
Gross value
5,763
476
(80)
85
6,244
Land
(12)
(1)
-
-
(13)
Buildings
(1,459)
(206)
12
53
(1,600)
Machinery and equipment
(1,519)
(124)
52
19
(1,572)
Constructions in progress
(2)
-
-
-
(2)
Tools, furniture, fixtures and other
(290)
(40)
10
19
(301)
Amortisation and impairment
(3,282)
(371)
74
91
(3,488)
Land
269
-
-
3
272
Buildings
1,308
(24)
(1)
63
1,346
Machinery and equipment
545
(60)
(3)
55
538
Constructions in progress
278
179
(2)
14
469
Tools, furniture, fixtures and other
81
9
-
41
131
NET VALUE
2,481
105
(6)
176
2,756
(*) Other changes includes IFRS5 reclassification (see Note 9.2).
(**) Reclassification as of 31 March 2024 of around €200 million from Work in progress to Fixed assets of a fleet of trains which was put on lease
during the year.
The commitments of fixed assets amount to €60 million at 31 March 2024 (compared to €31 million at 31 March
2023), of which €4 million are related to leased assets (compared to €0 million 31 March 2023).
(in € million)
At 31 March
2022
Additions /
amortisation /
impairment
Disposals
Other changes
including
translation
adjustments
At 31 March
2023
Land
279
3
(2)
1
281
Buildings
2,744
137
(6)
(108)
2,767
Machinery and equipment
2,002
58
(20)
24
2,064
Constructions in progress
201
175
(5)
(91)
280
Tools, furniture, fixtures and other
369
31
(9)
(20)
371
Gross value
5,595
404
(42)
(194)
5,763
Land
(14)
3
-
(1)
(12)
Buildings
(1,328)
(237)
5
101
(1,459)
Machinery and equipment
(1,423)
(136)
18
22
(1,519)
Constructions in progress
(2)
(2)
2
-
(2)
Tools, furniture, fixtures and other
(278)
(33)
8
13
(290)
Amortisation and impairment
(3,045)
(405)
33
135
(3,282)
Land
265
6
(2)
-
269
Buildings
1,416
(100)
(1)
(7)
1,308
Machinery and equipment
579
(78)
(2)
46
545
Constructions in progress
199
173
(3)
(91)
278
Tools, furniture, fixtures and other
91
(2)
(1)
(7)
81
NET VALUE
2,550
(1)
(9)
(59)
2,481
38/90
Property, Plant and Equipment balances include Right-of-Use related to Leased Assets for the following amounts:
(in € million)
At 31 March
2023
Additions /
amortisation /
impairment
Decrease*
Other changes
including
translation
adjustments
(**)
At 31 March
2024
Land
9
-
-
1
10
Buildings
716
145
(55)
(30)
776
Machinery and equipment
30
8
(2)
-
36
Tools, furniture, fixtures and other
57
31
(13)
(1)
74
Gross value
812
184
(70)
(30)
896
Land
(1)
(1)
-
-
(2)
Buildings
(276)
(118)
53
14
(327)
Machinery and equipment
(13)
(6)
3
-
(16)
Tools, furniture, fixtures and other
(27)
(20)
12
-
(35)
Amortisation and impairment
(317)
(145)
68
14
(380)
Land
8
(1)
-
1
8
Buildings
440
27
(2)
(16)
449
Machinery and equipment
17
2
1
-
20
Tools, furniture, fixtures and other
30
11
(1)
(1)
39
NET VALUE
495
39
(2)
(16)
516
(*) Decrease are included into the “Other changes including translation adjustments” flow of the Property, Plant and Equipment general table above.
(**) Other changes includes IFRS5 reclassification (see Note 9.2).
(in € million)
At 31 March
2022
Additions /
amortisation /
impairment
Decrease (*)
Other changes
including
translation
adjustments
At 31 March
2023
Land
9
2
(2)
-
9
Buildings
736
91
(97)
(14)
716
Machinery and equipment
27
7
(2)
(2)
30
Tools, furniture, fixtures and other
52
21
(14)
(2)
57
Gross value
824
121
(115)
(18)
812
Land
(1)
-
-
-
(1)
Buildings
(252)
(110)
79
7
(276)
Machinery and equipment
(10)
(6)
3
-
(13)
Tools, furniture, fixtures and other
(25)
(16)
13
1
(27)
Amortisation and impairment
(288)
(132)
95
8
(317)
Land
8
2
(2)
-
8
Buildings
484
(19)
(18)
(7)
440
Machinery and equipment
17
1
1
(2)
17
Tools, furniture, fixtures and other
27
5
(1)
(1)
30
NET VALUE
536
(11)
(20)
(10)
495
(*) Decrease are included into the “Other changes including translation adjustments” flow of the Property, Plant and Equipment general table above.
39/90
NOTE 13. INVESTMENTS IN JOINT VENTURES AND ASSOCIATES
Financial information
Share in equity
Share of net income
(in € million)
At 31 March 2024
At 31 March 2023
Year ended at 31
March 2024
Year ended at 31
March 2023
TMH Limited
-
-
(122)
-
Alstom Sifang (Qingdao) Transportation Ltd.
200
413
30
30
Other Associates
340
341
72
75
Associates
540
754
(20)
105
Jiangsu ALSTOM NUG Propulsion System Co. Ltd
182
190
10
18
SpeedInnov JV
81
94
(25)
(22)
Other Joint ventures
79
93
18
11
Joint ventures
342
377
3
7
TOTAL
882
1,131
(17)
112
Movements during the period
(in € million)
At 31 March 2024
At 31 March 2023
Opening balance
1,131
1,179
Share in net income of equity-accounted investments after impairment (*)
105
112
Dividends
(310)
(114)
Acquisitions (**)
17
27
Translation adjustments and other
(61)
(74)
CLOSING BALANCE
882
1,131
(*) Excluding a net loss of €(122) million related to TMH disposal (see Note 1.2). €(17) million including a net loss of €(122) million related to TMH
disposal.
(**) Mainly related to capital increase in SpeedInnov joint-venture in October 2023 (see Note 1.2).
13.1. Alstom Sifang (Qingdao) Transportation Ltd
The table below presents the management summarized financial information (at 100%) of Alstom Sifang (Qingdao)
Transportation Ltd at 31 March 2024:
Balance sheet
AST Ltd
AST Ltd
(in € million)
At 31 March 2024
At 31 March 2023
Non-current assets
225
249
Current assets
836
1,151
TOTAL ASSETS
1,061
1,400
Equity-attributable to the owners of the parent company
303
725
Current liabilities
758
675
TOTAL EQUITY AND LIABILITIES
1,061
1,400
Equity interest held by the Group
50%
50%
NET ASSET
152
363
Goodwill
35
37
Other (*)
13
14
CARRYING VALUE OF THE GROUP'S INTERESTS
200
413
(*) Correspond to the fair value of acquired assets calculated at the time of the Bombardier Transportation’s acquisition.
40/90
Income Statement
AST Ltd
AST Ltd
(in € million)
At 31 March 2024
At 31 March 2023
Sales
646
371
Net income from continuing operations
60
59
Net income attributable to the owners of the parent company
60
59
Equity interest held by the Group
50%
50%
Share in the net income
30
30
GROUP'S SHARE IN THE NET INCOME
30
30
13.2. Other Joint Ventures and Associates
The Group’s investment in other associates comprises investment in Casco, held by the Group at 49%, for €188 million
(of which €62 million of net profit), compared to €177 million (of which €60 million of net profit), at 31 March 2023,
as well as other associates which are not significant on an individual basis. On aggregate, the net carrying value of
Alstom’s Investment represents €340 million as of 31 March 2024 (€341 million as of 31 March 2023).
NOTE 14. NON-CONSOLIDATED INVESTMENTS
Entities over which the Group has no significant influence or when the value is not material are not consolidated. The
Group has expressed intention and ability to hold these Investments on a long term perspective and therefore these
investments are considered as non-trading investments. The Group has elected for the portfolio of non-consolidated
investments to record the change in fair value on these investments through Other Comprehensive Income with no
subsequent recycling in income statement. They are initially measured at their fair value, plus directly attributable
transaction costs and subsequently re-measured at fair value.
The fair value of listed securities is the market value at the closing date. A valuation model is used in case of unlisted
securities. Changes in fair value are then directly recognised in other comprehensive income with no subsequent
recycling in income statement. When the fair value cannot be determined reliably, investments in non-consolidated
companies are measured at cost.
Besides, the Group has expressed intention and ability to hold all debt securities to maturity to collect the corresponding
contractual cash flows. They are in that purpose measured at amortised cost using the effective interest rate method,
less any impairment loss recognised to reflect amounts expected not to be recoverable. An impairment loss is recognised
in profit or loss when there is objective evidence that the asset should be impaired and is measured as the difference
between the investment’s carrying value and the present value of the estimated future cash flows discounted at the
effective interest rate computed at initial recognition. Impairment losses may be reversed through profit and loss in
subsequent periods.
Finally, marketable securities are assets held for trading which cannot be considered as cash and cash equivalents.
They are designated as financial assets at fair value through profit or loss. Changes in fair value are reported as financial
income or expense.
41/90
Movements during the period
(in € million)
At 31 March 2024
At 31 March 2023
Opening balance
82
79
Change in fair value
(8)
9
Acquisitions / disposals
(1)
(4)
Translation adjustments and other
1
(2)
Closing balance
74
82
The Group’s equity investment in other investments is not significant on an individual basis and notably comprises
investments in companies that hold PPPs (public-private partnerships) agreements or have entered into concession
agreements, typically for an ownership lower than 20%.
NOTE 15. OTHER NON-CURRENT ASSETS
Loans are initially measured at their fair value, plus directly attributable transaction costs and are subsequently
measured at amortised cost using the effective interest rate method. Deposits are reported as other non-current assets
when their initial maturity is more than three months and as cash and cash equivalents in case of demand deposits or
when the initial maturity is less than three months.
If there is any indication that those assets may be impaired, they are reviewed for impairment. Any difference between
the carrying value and the impaired value (net realisable value) is recorded as a financial expense. The impairment loss
can be reversed if the value is recovered in the future. In that case, the reversal of the impairment loss is reported as a
financial income.
Certain long-term contract receivables corresponding to incentive payments are classified as FV through P&L.
Subsequent changes in the fair value of such financial instruments are recorded in financial expense (income).
Assets subject to finance leases, are initially recognized at an amount equal to the net investment in the lease and are
included in financial non-current assets associated to financial debt. Interest income is recognized over the term of the
applicable leases based on the effective interest rate method.
(in € million)
At 31 March 2024
At 31 March 2023
Financial non-current assets associated to financial debt (*)
98
119
Long-term loans, deposits and other (**)
399
450
Other non-current assets
497
569
(*) These non-current assets relate to a long-term rental of trains and associated equipment to a London metro operator (see Note 27).
(**) Including pre-paid assets on pension amounting to €231 million at March 2024 vs €316 million at 31 March 2023 (see Note 29).
42/90
F. WORKING CAPITAL
NOTE 16. WORKING CAPITAL ANALYSIS
(in € million)
At 31 March 2024
At 31 March 2023
Variation
Inventories
3,818
3,729
89
Contract assets
4,973
4,533
440
Trade receivables
2,997
2,670
327
Other current operating assets / (liabilities)
(1,555)
(2,175)
620
Contract liabilities
(7,995)
(6,781)
(1,214)
Provisions
(2,151)
(2,221)
70
Trade payables
(3,444)
(3,640)
196
WORKING CAPITAL
(3,357)
(3,885)
528
(in € million)
For the year ended at
31 March 2024
Working capital at the beginning of the period
(3,885)
Changes in working capital resulting from operating activities
841
Changes in working capital resulting from investing activities
(5)
Translation adjustments and other changes
(308)
Total changes in working capital
528
Working capital at the end of the period
(3,357)
NOTE 17. INVENTORIES
Raw materials and supplies, work in progress and finished products are stated at the lower of cost, using the weighted
average cost method, or net realisable value.
Inventory cost includes direct material and, where applicable, direct labour costs and those overheads that have been
incurred in bringing the inventories to their existing location and condition.
Work in progress refers to costs incurred on product contracts or short term service contracts whose execution will be
finalised during a next period. It refers also to costs incurred on «construction contracts» not yet allocated to projects
at end of the closing period but transferred to project costs in subsequent periods when the asset becomes sufficiently
customized and cannot be readily directed for another use.
Net realisable value is the estimated selling price in the ordinary course of business, less the estimated costs of
completion and selling expenses.
43/90
(in € million)
At 31 March 2024
At 31 March 2023
Raw materials and supplies
2,824
2,645
Work in progress (*)
1,047
1,321
Finished products
190
174
Inventories, gross
4,061
4,140
Raw materials and supplies
(208)
(257)
Work in progress
(32)
(151)
Finished products
(3)
(3)
Write-down
(243)
(411)
Inventories, net
3,818
3,729
(*) Reclassification as of 31 March 2024 of around €200 million from Work in progress to Fixed assets of a fleet of trains which was put on lease
during the year.
NOTE 18. NET CONTRACT ASSETS/LIABILITIES
Aggregates called “contract assets” and “contract liabilities” are disclosed for «construction contracts» and long term
service agreements in progress and are determined on a contract-by-contract basis. The aggregate “contract assets”
corresponds to the unbilled part of revenues recognized to date net of the advance payments received from customers.
Unbilled part of revenue corresponds to revenue recognized to date in excess of progress billings.
On the contrary, when progress billings are in excess of revenue recognized to date, the net amount is accounted for
as deferred income and aggregated with the related advance payments received from customers under the caption
“contract liabilities”.
The timing of performance differs from the timing when the consideration is received from the customer; this mismatch
may turn a contract position from a net liability to a net asset position (or vice versa) during its execution. The Group's
policy is to enter into prepayment arrangements with customers and receive advance payments for goods/services to
be delivered in future periods.
Some costs incurred in fulfilling a contract that are not falling under the scope of the standards dealing with intangible
and tangible assets as well as inventories, should be accounted for under a new caption called “costs to fulfil a contract”
when eligible to capitalization.
IFRS 9 acknowledges the recognition of the credit risk related to financial assets and especially trade receivables, based
on the expected loss approach. The recognition model retained for contract assets is the general model that allows to
estimate the risk within one year, as long as there is no sign of significant degradation of customer credit risk.
(in € million)
At 31 March 2024
At 31 March 2023
Variation
Cost to fulfil a contract
52
24
28
Contract assets
4,921
4,509
412
Total contract assets
4,973
4,533
440
Contract liabilities
(7,995)
(6,781)
(1,214)
Net contract Assets/(Liabilities)
(3,022)
(2,248)
(774)
Net contract Assets/(Liabilities) include down payments as well as, in some specific cases, progress payments
received in exchange of irrevocable and unconditional payment undertakings issued by the customer. This transaction
is analyzed as an advance payment received on behalf of the customer under the supply contract and it amounts to
€193 million at 31 March 2024 compared to €198 million at 31 March 2023.
44/90
Contracts assets increase over the period (representing ca. 103 days of sales as of 31 March 2024 compared to 100
days as of 31 March 2023) is consistent with contracts portfolio trading and revenue growth.
Contracts liabilities increase is notably explained by the level of downpayments received over the second half of the
fiscal year ended 31 March 2024.
NOTE 19. TRADE RECEIVABLES
A receivable is an entity’s right to consideration that is unconditional. A right to consideration is unconditional if only
the passage of time is required before payment of that consideration is due. Receivables are initially recognised at fair
value, which in most cases approximates the nominal value. If there is any subsequent indication that those assets
may be impaired, they are reviewed for impairment. Any difference between the carrying value and the impaired value
(net realisable value) is recorded within Earnings Before Interests and Taxes. The impairment loss can be reversed if
the value is recovered in the future. In that case, the reversal of the impairment loss is also reported within Earnings
Before Interests and Taxes.
IFRS 9 acknowledges the recognition of the credit risk related to financial assets and especially trade receivables, based
on the expected loss approach. The recognition model retained for trade receivables is the Simplified Approach “Lifetime
Expected Credit Losses”, as long as there is no sign of significant degradation of customer credit risk.
Indeed, due to the type of business operated by the Group, past due receivables are frequently representative of
outstanding amounts confirmed by customers but whose payment is subject to clearance of items raised during
inspection of works. Such receivables do remain fully recoverable; costs to be incurred for the clearance of pending
items are included in the determination of the margin at completion of the related contracts.
The Group derecognizes a financial asset when the contractual rights to the cash flows from the asset expire or when
it transfers the contractual rights in a transaction under which the control of the financial assets is transferred.
Past due on the closing date
(in € million)
Total
No past due
on the
closing date
Less than 60
days
Between 60
and 180 days
More than
180 days
At 31 March 2024
2,997
2,397
216
52
332
o/w gross
3,031
2,402
216
52
361
o/w impairment
(34)
(5)
-
-
(29)
At 31 March 2023
2,670
1,946
205
47
472
o/w gross
2,725
1,955
205
47
518
o/w impairment
(55)
(9)
-
-
(46)
NOTE 20. OTHER CURRENT OPERATING ASSETS
(in € million)
At 31 March 2024
At 31 March 2023
Down payments made to suppliers
277
230
Corporate income tax
85
61
Other taxes
668
548
Prepaid expenses
138
153
Other receivables
397
383
Derivatives relating to operating activities
1,086
682
Remeasurement of hedged firm commitments in foreign currency
864
671
Other current operating assets
3,515
2,728
45/90
Over the period ended 31 March 2024, the Group entered into an agreement of assignment of receivables that leads
to the derecognition of tax receivables for an amount of €48 million in accordance with IFRS 9 criteria. The total
disposed amount outstanding at 31 March 2024 is €176 million compared to €159 million at 31 March 2023.
NOTE 21. OTHER CURRENT OPERATING LIABILITIES
(in € million)
At 31 March 2024
At 31 March 2023
Staff and associated liabilities
931
950
Corporate income tax
213
268
Other taxes (*)
723
831
Deferred income
10
2
Trade payables with extended payment terms
285
303
Other payables
1,188
1,439
Derivatives relating to operating activities
1,011
668
Remeasurement of hedged firm commitments in foreign currency
709
442
Other current operating liabilities
5,070
4,903
(*) “Other Taxes” decrease is mainly due to the alignment of the VAT French law with the European VAT Directive according to which VAT is due
on all the invoices made to customers including down payments and progress billings as of 31 March 2023.
Bombardier Transportation negotiated extended payment terms of 210 to 240 days after delivery with certain of its
suppliers, that have the possibility to early finance their receivables through a supply chain financing program supported
by third parties. Those third parties are not committed, and suppliers have the right to return to original payment terms
for future payables upon providing a minimum notice period. The Group considers that the balance of trade payables
supported by the supply chain financing program does not have the nature of a financial debt as the extension of the
payment terms are not contractually linked to the existence of the supply chain financing program. However, following
IFRIC Update issued in December 2020, the Group presents the amounts of trade payables supported by the supply
chain financing arrangement and exceeding regular payment terms on a dedicated line item of its balance sheet in the
other current liabilities.
NOTE 22. PROVISIONS
As long as a «construction contracts» or a long-term service agreement is in progress, obligations attributable to such
a contract are taken into account in the assessment of the margin to be recognised.
Upon completion of the contract, such obligations are recognised as distinct liabilities when they satisfy the following
criteria:
• the Group has a present legal or constructive obligation as a result of a past event;
• it is probable that an outflow of economic resources will be required to settle the obligation; and
• such outflow can be reliably estimated.
These liabilities are presented as provisions when they are of uncertain timing or amount. When this uncertainty is
dispelled, they are presented as trade payables or other current liabilities.
One exception is, in accordance with IAS37 Provisions, Contingent Liabilities and Contingent Assets, the provisions on
onerous contracts that are reported in current provisions, as soon as identified. The unavoidable costs to fulfil a contract
considered in assessing whether a contract is onerous are all the costs that directly relate to that contract.
Obligations resulting from transactions other than «construction contracts» and long-term service agreements are
directly recognised as provisions as soon as the above-mentioned criteria are met. Where the effect of the time value
of money is material, provisions are measured at their present value.
46/90
Restructuring provisions are made when plans to reduce or close facilities, or to reduce the workforce have been
finalised and approved by the Group management and have been announced before the closing date, resulting in an
obligation of the Group to third parties. Restructuring costs include employees’ severance and termination benefits and
estimated facility closing costs. In addition to such provisions, restructuring costs may include asset write-off relating
to the restructured activities.
(in € million)
At 31 March
2023
Additions
Releases
Applications
Translation
adjustments
and other(*)
At 31 March
2024
Warranties
597
185
(98)
(53)
-
631
Risks on contracts
1,182
209
(89)
(300)
(21)
981
Current provisions
1,779
394
(187)
(353)
(21)
1,612
Tax risks & litigations
121
55
(29)
(7)
(5)
135
Restructuring
166
141
(6)
(41)
1
261
Other non-current provisions
155
18
(8)
(13)
(9)
143
Non-current provisions
442
214
(43)
(61)
(13)
539
Total Provisions
2,221
608
(230)
(414)
(34)
2,151
(*) Other changes includes IFRS5 reclassification (see Note 9.2).
(in € million)
At 31 March
2022
Additions
Releases
Applications
Translation
adjustments
and other
At 31 March
2023
Warranties
605
437
(93)
(319)
(33)
597
Risks on contracts
1,361
134
(115)
(231)
33
1,182
Current provisions
1,966
571
(208)
(550)
-
1,779
Tax risks & litigations
130
17
(7)
(9)
(10)
121
Restructuring
152
51
1
(40)
2
166
Other non-current provisions
155
19
(10)
(27)
19
155
Non-current provisions
437
87
(16)
(76)
10
442
Total Provisions
2,403
658
(224)
(626)
10
2,221
Provisions for warranties relate to estimated costs to be incurred over the residual contractual warranty period on
completed contracts.
Provisions for risks on contracts relate to provisions on contract losses and to commercial disputes and operating risks.
In relation to uncertain tax treatments and tax risks, the Group tax filings are subject to audit by tax authorities in most
jurisdictions in which the Group operates. These audits may result in assessment of additional taxes that are
subsequently resolved with the authorities or potentially through the courts. The Group believes that it has strong
arguments against the questions being raised, that it will pursue all legal remedies to avoid an unfavorable outcome
and that it has adequately provided for any risk that could result from those proceedings where it is probable that it
will pay some amounts. Following IFRIC 23 application in April 2019, it is reminded that liabilities for uncertainty over
income tax treatments are now presented as tax liabilities on the line corporate income tax in the other current
operating liabilities.
Restructuring provisions mainly derive from the implementation of the “Autumn” restructuring plan (see Note 1.1) and
the existing restructuring plan in Germany.
Other non-current provisions mainly relate to guarantees delivered or risks in connection with disposals, employee
litigations, commercial disputes and environmental obligations.
The management identifies and analyses on a regular basis current litigations and other risks, using its best estimate
to assess, when necessary, provisions. These estimates take into account information available and different possible
outcomes. Main disputes are described in Note 33.
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G. EQUITY AND DIVIDENDS
NOTE 23. EQUITY
When managing capital, objectives of the Group are to safeguard its ability to continue as a going concern so that it
can provide returns to shareholders, bring benefits to its other partners and optimise the structure of the capital in
order to reduce its cost.
To achieve this, the Group may choose to:
• adjust the amount of dividends paid to the shareholders;
• reimburse a portion of capital to the shareholders;
• issue new shares; or,
• sell assets in order to scale back its debt.
23.1. Movements in share capital
At 31 March 2024, the share capital of Alstom amounts to €2,690,037,476 consisting of 384,291,068 ordinary shares
with a par value of €7 each. For the year ended 31 March 2024, the weighted average number of outstanding ordinary
shares amounts to 384,624,829 after the effect of all dilutive instruments.
During the period ended 31 March 2024:
• 2,435,803 ordinary shares were issued under dividends (See Note 24);
• 611,086 ordinary shares were issued under long term incentive plans (See Note 30);
• 790,725 ordinary shares were issued under employee free shares plan “We Are Alstom 2021” (See Note 30).
23.2. Currency translation adjustment in shareholders’ equity
At 31 March 2024, the currency translation reserve amounts to €(520) million.
The currency translation adjustment, presented within the consolidated statement of comprehensive income for € 130
million, primarily reflects the effect of variations of the pound sterling (€26 million), Egyptian Pound (€(34) million),
Chinese Yuan (€(50) million), against the Euro for the year ended 31 March 2024.
The major impact of currency translation adjustment is mainly driven by the recycling of CTA, generated by TMH
Disposal to profit and loss (See Note 1.2) and amounts to € 197 million. According to IAS21, the cumulative amount
of exchange differences relating to a disposal under a foreign operation recognized in other comprehensive income
shall be reclassified from equity to P&L when the gain or loss on disposal is recognized (see Note 13).
NOTE 24. DISTRIBUTION OF DIVIDENDS
The Combined Shareholders’ Meeting, which took place on 11 July 2023, approved the dividend related to the 2022/23
fiscal year for an amount of €0.25 gross per share, and has decided to offer to each shareholder an option, for payment
of such dividend to be made in cash or in new shares. The period to exercise the option ran from 19 July to 1 September
2023 included. At the end of the option period, 2,435,803 new shares were issued at a share price of €23.75 and
amounted to €58 million. The cash dividend to be paid to the shareholders who did not elect to receive 2022/23
dividend in shares amounted to €38 million and the date for the payment was 7 September 2023.
48/90
H. FINANCING AND FINANCIAL RISK MANAGEMENT
NOTE 25. OTHER CURRENT FINANCIAL ASSETS
Other current financial assets comprise the positive market value of derivative instruments hedging financing activities
and the fair value of the Virtual Power Purchase Agreement contracted by Alstom on July 10th, 2023, as detailed in
Note 2.6.
(in € million)
At 31 March 2024
At 31 March 2023
Derivatives related to financing activities and others
40
65
OTHER CURRENT FINANCIAL ASSETS
40
65
NOTE 26. CASH AND CASH EQUIVALENTS
Cash equivalents are held to meet short-term cash commitments. To be considered as cash equivalent, an investment
must be convertible to a known amount of cash within the coming three months and subject to a negligible risk of
change in value, thereby satisfying the requirements of IAS 7.
Cash and cash equivalents include all cash balances, certain term deposit accounts, negotiable debt instruments and
monetary UCITS.
Bank overdrafts are shown within borrowings in current liabilities on the balance sheet.
(in € million)
At 31 March 2024
At 31 March 2023
Cash
896
806
Cash equivalents
80
20
CASH AND CASH EQUIVALENT
976
826
In addition to bank open deposits classified as cash for €896 million, the Group invests in cash equivalents:
• Bank term deposits that can be terminated at any time with less than three months notification period for an
amount of €78 million (€18 million at 31 March 2023).
• Euro money market funds for an amount of €2 million (€2 million at 31 March 2023) qualified as “monetary” or
“monetary short-term” under the French AMF classification.
NOTE 27. FINANCIAL DEBT
Bonds and interest-bearing bank loans are initially recognised at fair value, less any transaction costs directly
attributable to the issuance of the liability. These financial liabilities are subsequently measured at amortised cost, using
the effective interest rate method.
The lease liability, when Alstom is the lessee, is measured at the present value of lease payments to be made over the
lease term, discounted using the marginal borrowing rate of the lessee at the lease commencement date if the interest
rate is implicit in the lease and cannot be readily determined. Lease payments include fixed payments less any lease
incentives receivable, variable lease payments that depend on an index or a rate and amounts expected to be paid
under residual value guarantees. Lease payments also include the exercise price of a purchase option reasonably certain
49/90
to be exercised by the Group and payment of penalties for termination of a lease when the lease term reflects the lessee
exercising a termination option. Lease payments are apportioned between finance charges and repayment of the lease
obligation to achieve a constant rate of interest on the remaining balance of the liability.
Cash movements
Non-cash
movements
(in € million)
At 31 March
2023
Net cash
variation
Translation
adjustments and
other
At 31 March
2024
Bonds
2,631
-
3
2,634
Commercial paper program
248
785
-
1,033
Bank debt & other financial debt (*)
113
90
74
277
Derivatives relating to financing activities
58
8
-
66
Accrued interests and other (**)
3
(6)
3
-
Borrowings
3,053
877
80
4,010
Lease obligations (***)
645
(160)
160
645
Total financial debt
3,698
717
240
4,655
(*) Includes New Markets Tax Credit (NMTC) 7-year $40 million loan (€37 million at 31 March 2024) implemented during fiscal year 2021/22 and
covered by a 7-year deposit of $29 million (€27 million at 31 March 2024) reclassified in asset held for sales as of 31 March 2024; and €175 million
drawn down from the €1.75 billion Revolving Credit facility and outstanding at 31 March 2024.
(**) Paid interests are disclosed in the net cash provided by operating activities part in the cash flow statement. Net interests paid and received
amount to €(153) million and those related to lease obligations amount to €(21) million over the year.
(***) Lease obligations include lease obligations on trains and associated equipment for €98 million at 31 March 2024 and €119 million at 31 March
2023 (see Note 15). Non-cash movements for €160 million are linked to lease inceptions, reductions and FX gain/loss.
The financial debt’s variation over the period is mainly due to:
• The issuance of €785 million Negotiable European Commercial Papers under the group NEU CP program bringing
the level outstanding at 31 March 2024 to €1.03 billion (from €248 million in March 2023);
• The drawdown of €175 million from Revolving Credit Facility.
The following table summarizes the significant components of the Group’s bonds:
Initial Nominal
value (in €
million)
Maturity date
(dd/mm/yy)
Nominal interest
rate
Effective interest
rate
Accounting value
at 31 March 2024
Market value at
31 March 2024
Alstom October 2026
700
14/10/2026
0.25%
0.38%
698
643
Alstom July 2027
500
27/07/2027
0.13%
0.21%
498
446
Alstom January 2029
750
11/01/2029
0.00%
0.18%
743
616
Alstom July 2030
700
27/07/2030
0.50%
0.62%
694
566
Total and weighted average rate
0.22%
0.35%
2,634
2,271
The value of the external financial debt split by currency is as follows:
(in € million)
At 31 March 2024
At 31 March 2023
Euro
4,185
3,293
British Pound
133
154
US Dollar
71
75
Indian Rupee
54
41
Canadian Dollar
47
30
Australian Dollar
44
46
Romanian Leu
32
2
Polish Zloty
18
15
Other currencies
71
42
FINANCIAL DEBT IN NOMINAL VALUE
4,655
3,698
50/90
The €133 million external debt in GBP is mainly explained by a €98 million long-term lease scheme of trains, involving
London Underground. This lease in GBP is counter-balanced by long-term receivables recognised as non-current assets
for the same amount, with the same maturity and denominated in GBP (see Note 15 and above).
NOTE 28. FINANCIAL INSTRUMENTS AND FINANCIAL RISK MANAGEMENT
28.1. Financial instruments reported in the financial statements
The Group’s financial liabilities encompass borrowings, trade and other payables.
The Group’s financial assets include loans, trade and other receivables, other current assets, cash, and cash equivalents.
The Group is exposed to foreign exchange and interest rate volatility risks, credit and liquidity risks.
The main valuation methods applied are as follows:
• borrowings, when unhedged, are stated at amortised cost, determined by the effective interest rate method;
• the fair value of the financial debt is estimated based on either quoted market prices for traded instruments
or current rates offered to the Group for debt of the same maturity;
• the fair value of cash, cash equivalents, trade receivables and trade payables is considered equivalent to the
carrying value, due to their short maturities, or to the market value in the case of money market funds;
• the fair value of FX derivative instruments is calculated primarily based on foreign exchange spot and forward
rates at “mid-market” at closing date or alternatively based on relevant yield curves per currency.
IFRS 13 application for “Fair Value Measurement”, which requires counterparty risk to be considered in measuring
derivative instruments, does not have a material impact on the Group’s financial statements.
Year ended 31 March 2024
Balance sheet positions at 31 March 2024
Carrying amount of financial instruments by categories (*)
Fair value of items classified as financial
instruments
At 31 March 2024 (in € million)
Balance
sheet
carrying
amount
Carrying
amount not
defined as
financial
instruments
FV P/L
FV OCI
LRL at
amortised
cost
DER
Total
Listed
prices
Internal
model
based on
observable
factors
Internal
model not
based on
observable
factors
Total
Non consolidated investments
74
-
-
74
-
-
74
-
74
-
74
Other non-current assets
497
228
110
-
159
-
269
-
269
-
269
Trade receivables
2,997
-
-
-
2,997
-
2,997
-
2,997
-
2,997
Other current operating assets
3,515
1,170
862
-
397
1,086
2,345
-
2,345
-
2,345
Other current financial assets
40
-
-
-
-
40
40
-
40
-
40
Cash and cash equivalents
976
-
2
-
974
-
976
2
974
-
976
ASSETS
8,099
1,398
974
74
4,527
1,126
6,701
2
6,699
-
6,701
Non-current borrowings
2,694
-
-
-
2,694
-
2,694
2,634
60
-
2,694
Non-current lease obligations
471
-
-
-
471
-
471
-
471
-
471
Current borrowings
1,316
-
-
-
1,250
66
1,316
-
1,316
-
1,316
Current lease obligations
174
-
-
-
174
-
174
-
174
-
174
Trade payables
3,444
-
-
-
3,444
-
3,444
-
3,444
-
3,444
Other current liabilities
5,070
2,157
707
-
1,195
1,011
2,913
707
2,206
-
2,913
LIABILITIES
13,169
2,157
707
-
9,228
1,077
11,012
3,341
7,671
-
11,012
(*) FV P/L stands for Fair Value through Profit and Loss; FV OCI stands for Fair Value through Other Comprehensive Income; LRL stands for
Loans, Receivables and Liabilities and DER stands for Derivative instruments.
51/90
Financial income and expense arising from financial instruments for the year ended 31 March 2024
(in € million)
FV P/L
FV OCI
LRL at
amortised
cost & DER
Total
Interests
-
-
(132)
(132)
Interest income
-
-
27
27
Interest expense
-
-
(159)
(159)
Foreign currency and other
-
-
(88)
(88)
NET INCOME/EXPENSE FOR THE YEAR ENDED 31 MARCH 2024
-
-
(220)
(220)
Year ended 31 March 2023
Balance sheet positions at 31 March 2023
(*) FV P/L stands for Fair Value through Profit and Loss; FV OCI stands for Fair Value Through Other Comprehensive Income; LRL stands for Loans,
Receivables and Liabilities and DER stands for Derivative instruments.
Financial income and expense arising from financial instruments for the year ended 31 March 2023
(in € million)
FV P/L
FV OCI
LRL at amortised cost & DER
Total
Interests
-
-
(38)
(38)
Interest income
-
-
10
10
Interest expense
-
-
(48)
(48)
Foreign currency and other
-
-
(51)
(51)
NET INCOME/EXPENSE FOR THE YEAR ENDED 31 MARCH 2023
-
-
(89)
(89)
28.2. Currency risk management
Foreign currency transactions are initially recognised by applying to the foreign currency amount the spot exchange
rate between the functional currency of the reporting unit and the foreign currency at the date of the transaction.
Currency units held assets to be received and liabilities to be paid resulting from those transactions are re-measured at
closing exchange rates at the end of each reporting period. Realised exchange gains or losses at date of payment as
well as unrealised gains or losses deriving from re-measurement are recorded in the income statement.
Carrying amount of financial instruments
by categories (*)
Fair value of items classified as financial
instruments
At 31 March 2023 (in € million)
Balance
sheet
carrying
amount
Carrying
amount not
defined as
financial
instruments
FV
P/L
FV
OCI
LRL at
amortised
cost
DER
Total
Listed
prices
Internal
model
based on
observable
factors
Internal
model not
based on
observable
factors
Total
Non consolidated investments
82
-
-
82
-
-
82
-
82
-
82
Other non-current assets
569
314
67
-
188
-
255
-
255
-
255
Trade receivables
2,670
-
-
-
2,670
-
2,670
-
2,670
-
2,670
Other current operating assets
2,728
993
670
-
383
682
1,735
-
1,735
-
1,735
Other current financial assets
65
-
-
-
-
65
65
-
65
-
65
Cash and cash equivalents
826
-
2
-
824
-
826
2
824
-
826
ASSETS
6,940
1,307
739
82
4,065
747
5,633
2
5,631
-
5,633
Non-current borrowings
2,657
-
-
-
2,657
-
2,657
2,631
26
-
2,657
Non-current lease obligations
501
-
-
-
501
-
501
-
501
-
501
Current borrowings
396
-
-
-
338
58
396
-
396
-
396
Current lease obligations
144
-
-
-
144
-
144
-
144
-
144
Trade payables
3,640
-
-
-
3,640
-
3,640
-
3,640
-
3,640
Other current liabilities
4,903
2,356
441
-
1,438
668
2,547
441
2,106
-
2,547
LIABILITIES
12,241
2,356
441
-
8,718
726
9,885
3,072
6,813
-
9,885
52/90
Since the Group is exposed to foreign currency volatility, the Group puts in place a significant volume of hedges to cover
this exposure. These derivatives are recognised on the balance sheet at their fair value at the closing date. Provided
that the relationships between the foreign currency exposure and the related derivatives are qualifying relationships,
the Group uses the specific accounting treatment designated as hedge accounting. A relationship qualifies for hedge
accounting if, at the inception of the hedge, it is formally designated and documented and if it proves to be highly
effective throughout the financial reporting periods for which the hedge was designated.
Hedging relationships mainly correspond to fair value hedge which is used to cover the exposure to the risk of a change
in the fair value of a financial asset, a financial liability or unrecognised firm commitment. Net investment hedge is
applied to minimize the exchange rate risk relating to the net investment in a foreign entity.
Derivatives are recognised and re-measured at fair value. Changes in fair value from period to period are recognised
differently depending on whether the instrument is designated for accounting purposes as a fair value hedge, a cash
flow hedge or a hedge of a net investment in a foreign entity.
Fair value hedge
When fair value hedge accounting applies, changes in the fair value of derivatives and changes in the fair value of
hedged items are both recognised in the income statement and offset each other up to the gain or loss on the effective
portion on the hedging instrument.
Whatever the type of hedge, both the effective and the ineffective portions on the hedging instrument are recognised
in the income statement as well as realised and unrealised exchange gains and losses on hedged items and hedging
instruments.
As the effective portion on the hedging instrument offsets the difference between the spot rate at inception of the hedge
and the effective spot rate at the outcome of the hedge, sales and costs resulting from commercial contracts are
recognised at the spot rate at inception of the hedge throughout the life of the related commercial contracts, provided
that the corresponding hedging relationships keep on qualifying for hedge accounting. For two large Transport projects
located in South Africa and in Egypt, the hedged firm commitments resulting from the commercial contracts are
recognised on a forward rate basis. Provided that the corresponding hedging relationship qualifies for hedge
accounting, the change in fair value of the hedged items recorded at the project forward rate at inception offsets the
change in fair value of the derivatives.
The Group uses export insurance policies to hedge its currency exposure on certain contracts during the open bid period.
When commercial contracts are awarded, insurance instruments are settled, and forward contracts are put in place
and recorded according to the fair value hedge accounting as described above.
Cash Flow Hedge
When cash ow hedge applies, the portion of the gain or loss on the hedging instrument that is determined to be an
effective hedge is recognized in other comprehensive income. The change in fair value of the ineffective portion is
recognized in other financial income or expenses.
Gains or losses accumulated under other comprehensive income are taken to the income statement when the hedged
cash flows occur.
If a hedge of a forecast transaction subsequently resulting in the recognition of a non-financial asset qualifies for cash
flow hedge, then the entity shall reclassify the associated gains and losses that were recognized in other comprehensive
income to profit or loss in the same period or periods during which the asset acquired or liability assumed affects profit
or loss.
Hedge of a net investment in a foreign entity
53/90
A net investment hedge is used to reduce or eliminate the exchange rate risk relating to the Group’s interest in the net
assets of a foreign operation. Changes in the fair value of the hedging instrument that is determined to be an effective
hedge is recognized in other comprehensive income, allowing a natural offset in the translation differences between
the effective part of the derivative and the re-measurement of the net investment. Gains and losses previously
recognized in other comprehensive income are reclassified to profit or loss upon the disposal of the foreign entity. The
ineffective portion is reported in profit or loss.
Derivatives relating to financing activity
Whenever possible, Alstom Holdings acts as an in-house bank for its affiliates through cash-pooling and loans /
deposits agreements. The intercompany positions so generated are hedged through foreign exchange swaps, the
gain/cost of which is included in net gain/cost of foreign exchange (see Note 7).
At 31 March 2024, net derivatives positions amount to a net liability of €34 million and comprise mainly forward sale
contracts of Polish Zloty, Swiss Franc and Swedish Krona.
(in € million)
Net derivatives positions
2025
2026
2027-2029
2030 and thereafter
Currency 1 / Currency 2 (*)
Net notional
Fair value
Interests
Repayment
Interests
Repayment
Interests
Repayment
Interests
Repayment
EUR/SEK
520.00
(3.60)
-
520.00
-
-
-
-
-
-
EUR/CHF
507.00
(17.10)
-
507.00
-
-
-
-
-
-
EUR/PLN
(415.00)
(18.50)
-
(415.00)
-
-
-
-
-
-
EUR/GBP
(402.00)
(2.40)
-
(402.00)
-
-
-
-
-
-
EUR/CAD
(277.00)
0.60
-
(277.00)
-
-
-
-
-
-
EUR/ZAR
(213.00)
(1.70)
-
(213.00)
-
-
-
-
-
-
EUR/AUD
185.00
0.20
-
245.00
-
(30)
-
(30)
-
-
EUR/SGD
178.00
8.30
-
178.00
-
-
-
-
-
-
EUR/MXN
160.00
8.00
-
160.00
-
-
-
-
-
-
EUR/BRL
129.00
(0.10)
-
129.00
-
-
-
-
-
-
Other
(8.10)
Net derivatives related to
financing activities
(34)
(*) Positive amount: the currency 2 is bought forward against currency 1. Negative amount: the currency 2 is sold forward against currency 1.
Derivatives hedging commercial activity
During its operations, the Group is exposed to currency risk arising from tenders submitted in foreign currency, awarded
contracts and any future cash out transactions denominated in foreign currency. The main currencies triggering a
significant exposure as of 31 March 2024 are the Polish Zloty, US dollar, Mexican Peso and Saudi Riyal.
During the tender period, depending on the probability to obtain the project and on market conditions, the Group may
hedge in some cases a portion of its tenders using options or export insurance policies. Once the contract is in force,
forward exchange contracts are used to hedge the actual exposure during the life of the contract.
Forward currency contracts are denominated in the same currency as the hedged item. Generally, the tenor of hedging
derivatives corresponds to the tenor of the hedged items. However, depending on market conditions, the Group may
decide to enter into derivatives with shorter tenors and to roll them subsequently. Finally, in some cases, the Group
can derogate from its hedging policy because of the cost of the hedge or absence of efficient market.
The portfolio of operating foreign exchange forward contracts has a weighted maturity around 2 years. However, some
forward contracts may mature beyond five years to reflect the long-term nature of some hedged contracts. The Group
hedges about forty different currencies with a multitude of crosses depending on which entity of the Group is exposed
to the currency. Change in foreign exchange rate is compensated by the revaluation through Income Statement at fair
market value of derivatives.
54/90
At 31 March 2024, net derivatives amount to a net asset of €75 million. They are summarized as follows:
(in € million)
Net derivatives positions
2025
2026
2027-2029
2030 and thereafter
Currency 1 / Currency 2 (*)
Net
notional
Fair
value
Interests
Repayment
Interests
Repayment
Interests
Repayment
Interests
Repayment
EUR/PLN
2,047
208
-
945
-
422
-
668
-
12
EUR/CNH
783
(2)
-
367
-
141
-
275
-
-
EUR/SAR
(516)
(23)
-
(159)
-
(112)
-
(212)
-
(33)
EUR/INR
490
13
-
56
-
107
-
326
-
1
EUR/USD
(450)
(32)
-
(156)
-
(106)
-
(143)
-
(45)
EUR/RON
(376)
(17)
-
(329)
-
(44)
-
(3)
-
-
EUR/AUD
(365)
3
-
(159)
-
(84)
-
(83)
-
(39)
EUR/MXN
(266)
(51)
-
(228)
-
(10)
-
(28)
-
-
CNH/PLN
(260)
(40)
-
(103)
-
(113)
-
(44)
-
-
EUR/GBP
(210)
(2)
-
(45)
-
26
-
(85)
-
(106)
Other
19
Net derivatives related to
operating activities
75
(*) Positive amount: the currency 2 is bought forward against currency 1. Negative amount: the currency 2 is sold forward against currency 1.
Most of the hedging instruments are negotiated by Alstom Holdings and are mirrored by hedging agreements between
Alstom Holdings and the exposed subsidiaries. Whenever local regulations prohibit this intercompany hedging,
instruments are negotiated directly by affiliates with local banks under the supervision of the Group Treasury.
Overall derivatives positions
Derivative instruments hedging foreign currency risk are recognised at their fair value on the balance sheet as follows:
At 31 March 2024
At 31 March 2023
(in € million)
Assets
Liabilities
Assets
Liabilities
Derivatives qualifying for fair value hedge
1,119
1,077
747
726
Of which derivatives relating to financing activities
33
66
65
58
Of which derivatives relating to operating activities
1,086
1,011
682
668
Since derivatives have been set up, the change in foreign exchange spot rates, and the relative change in interest rate
curves related to the hedged currencies, during the periods ended 31 March 2023 and 31 March 2024 explains the
amount of fair value of derivative instruments (either positive or negative). For instruments that qualify for fair value
hedge accounting, change in fair value arising from spot rates is mostly offset by the re-measurement of the underlying
exposure (either on balance sheet or off-balance sheet).
The sensitivity of the Group’s pre-tax income to a change in currencies arising from derivative instruments not
qualifying for hedge accounting is not significant.
With its banking counterparties, Alstom enters into bilateral standard derivatives agreements that generally do not
provide a collateralization of derivatives market value.
These agreements generally require the offsetting of receivable and payable amounts in case of default of one of the
contracting parties. These derivatives fall within the scope of disclosures under IFRS 7 on compensation and are
presented in the tables below:
55/90
At 31 March 2024
Gross amounts of
recognized financial
assets/liabilities
Gross amounts
of recognized
financial
assets/liabilities
set off in the
balance sheet
Net amount of
financial
assets/liabilities
presented in the
balance sheet
Related amount not set off
in the balance sheet
(in € million)
Financial
instruments
Cash
collateral
received
Net
amount
Derivatives assets
1,119
-
1,119
1,008
-
111
Derivatives liabilities
(1,077)
-
(1,077)
(1,008)
-
(69)
At 31 March 2023
Gross amounts of
recognized financial
assets/liabilities
Gross amounts
of recognized
financial
assets/liabilities
set off in the
balance sheet
Net amount of
financial
assets/liabilities
presented in the
balance sheet
Related amount not set off
in the balance sheet
(in € million)
Financial
instruments
Cash
collateral
received
Net
amount
Derivatives assets
747
-
747
664
-
84
Derivatives liabilities
(726)
-
(726)
(664)
-
(62)
28.3. Interest rate risk management
The Group may enter into hedges for the purpose of managing its exposure to interest rate volatility. Derivatives are
recognised on the balance sheet at fair value at the closing date. Providing that the relationships between the interest
rate exposure and the related derivatives are qualifying relationships, the Group uses the specific accounting treatments
designated as hedge accounting. Fair value hedge accounting and cash flow hedge accounting are applied to fixed and
floating rate borrowings, respectively.
In the case of fair value hedge relationships, the re-measurement of the fixed rate borrowing is offset in the income
statement by the movement in the fair value of the derivative up to the effective portion of hedged risk. In the case of
cash flow hedging relationships, the change in fair value of the derivative is recognised directly in other comprehensive
income. Amounts previously recognised directly in other comprehensive income are reclassified to the income
statement when the hedged risk impacts the income statement.
At 31 March 2024, the Group keeps short dated floating rate financial assets on its balance sheet, while its debt is
merely made of fixed rate bonds and commercial papers.
The Group has not implemented an active interest rate risk management policy. However, under the supervision of the
Executive Committee, it may enter into transactions in order to hedge its interest rate risk on a case-by-case basis
according to market opportunities.
At 31 March 2024
(in € million)
Fixed rate
Floating rate
Total
Financial assets
194
1,050
1,244
Financial debt bearing interests
(3,841)
(169)
(4,010)
Total position before hedging
(3,647)
881
(2,766)
Hedging position
-
-
-
Total position after hedging
(3,647)
881
(2,766)
At 31 March 2023
(in € million)
Fixed rate
Floating rate
Total
Financial assets
178
901
1,079
Financial debt bearing interests
(2,882)
(171)
(3,053)
Total position before hedging
(2,704)
730
(1,974)
Hedging position
-
-
-
Total position after hedging
(2,704)
730
(1,974)
56/90
Sensitivity is analysed based on the group’s net cash position at 31 March 2024, assuming that it remains constant
over one year.
In absence of interest rate derivatives, the effects of increases or decreases in market rates are symmetrical: a rise of
0.1% would increase the net interest income by €1 million while a fall of 0.1% would decrease it by €1 million.
28.4. Credit risk management
Credit risk is the risk that counterparty will not meet its payment obligations under financial instrument or commercial
contract, leading to a loss. The Group is exposed to credit risk on its operating activities (primarily for trade receivables
and for contracts asset) and on its financing activities, including deposits, foreign currency hedging instruments and
other financial instruments with banks and financial institutions.
Risk related to customers
The financial assets that are falling under the scope of IFRS 9 Customer credit risk are mainly concerning trade
receivables (which are at short maturity) as well as contract assets under IFRS 15 (that have potentially longer
maturities). The recognition model of the Expected Credit Losses (ECL) retained on these exposures is respectively the
Simplified Approach “Lifetime Expected Credit Losses” for trade receivables and the general model that allows to
estimate the risk within one year for contract assets, as long as there is no sign of significant degradation of customer
credit risk. The Group believes that the risk of a counterpart failing to perform as contracted, which could have a
significant impact on the Group’s financial statements or results of operations, is limited because the Group seeks to
ensure that customers generally have strong credit profiles or adequate dedicated financing to meet their project
obligations or can also be the subject of insurance policies taken out by the Group (see also Note 19). However, this
mechanism of protection may become incomplete, uncertain, or ineffective because of the duration of the Group’s
contract in a changing environment, particularly in emerging countries, leading to impairment losses determined
considering a risk of non-recovery assessed on a case-by case.
Risk related to other financial assets
In addition to the recovery of assets held for sale, the Group’s exposure to credit risk related to other financial assets,
especially derivatives, arises from default of the counterpart, with a maximum exposure equal to the carrying amount
of those instruments. The financial instruments are taken out with more than 25 different counterparties and the risk
is therefore highly diluted, the largest exposure with one single counterparty (rated BBB) being limited to €23 million.
28.5. Liquidity risk management
In addition to its available cash and cash equivalents, amounting to €976 million at 31 March 2024, the Group benefits
from strong liquidity with:
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• €2.25 billion Revolving Credit Facility maturing in October 2024;
• €1.75 billion Revolving Credit Facility maturing in January 2027;
• €2.5 billion Revolving Credit Facility maturing in January 2029.
The first facility has two six-month extension options at borrower’s discretion. Alstom has an obligation to prepay
utilizations of and cancel available commitments under the facility with proceeds from the deleverage plan disclosed in
Note 36. The last two facilities have been successfully extended by one year in December 2023. At 31 March 2024, the
€1.75 billion Revolving Credit Facility line was drawn down for €175 million, while the other two lines remained
undrawn.
As per its conservative liquidity policy, the €2.5 billion Revolving Credit Facility serves as a back-up of the Group €2.5
billion NeuCP program in place. With these lines (€175 million drawn on the €1.75 billion facility at 31 March 2024),
the €1.03 billion of NeuCP outstanding at 31 March 2024, the Group benefits from a €6.3 billion liquidity available.
Treasury Centralization
Credit risk from balances with banks and financial institutions is managed by Group treasury in accordance with the
Group’s policy.
The Group diversifies its cash investments in order to limit its counterparty risk. In addition to short term deposits with
tier-one banks, the group invests in euro money market funds qualified as “monetary” or “monetary short term” under
the AMF classification. Cash investments are reviewed on a regular basis in accordance with Group procedures and in
strict compliance with the eligibility criteria set out in IAS 7 and the AMF’s recommendations.
The Group’s parent company has access to cash held by wholly owned subsidiaries through the payment of dividends
or pursuant to intercompany loan arrangements. However local constraints can delay or restrict this access.
Furthermore, while the Group’s parent company has the power to control decisions of subsidiaries of which it is the
majority owner, its subsidiaries are distinct legal entities and their payment of dividends and granting of loans,
advances and other payments to the parent company may be subject to legal or contractual restrictions, be contingent
upon their earnings or be subject to business or other constraints. These limitations include local financial assistance
rules and corporate benefit laws.
The Group’s policy is to centralise liquidity of subsidiaries at the parent company’s level when possible. Cash available
in subsidiaries located in countries with local constraints delaying or restricting the Group’s access to this cash was
€284 million at 31 March 2024 and €233 million at 31 March 2023.
Future Cash Flow
The Group’s objective is to maintain a strong liquidity, commensurate with the changes in working capital triggered by
its long-term activity.
The following tables show the remaining maturities of all financial assets and liabilities held at 31 March 2024 and
31 March 2023.
Planning data for future new assets and liabilities are not reported. Amounts in foreign currency are translated at the
closing rate. The variable interest payments are calculated using the last interest rates available at the closing date.
Assets and liabilities that can be repaid at any time are always assigned to the earliest possible period.
58/90
Financial instruments held at 31 March 2024
Cash flow arising from instruments included in net cash/(debt) at 31 March 2024
2025
2026
2027 - 2029
2030 and thereafter
(in € million)
Carrying
amount
Interests
Repayment
Interests
Repayment
Interests
Repayment
Interests
Repayment
Other non-current assets
-
-
-
-
-
-
-
-
-
Other current financial assets
40
-
40
-
-
-
-
-
-
Cash and cash equivalents
976
-
976
-
-
-
-
-
-
Assets
1,016
-
1,016
-
-
-
-
-
-
Non-current borrowings
(2,694)
(6)
-
(6)
-
(18)
(1,992)
(7)
(702)
Current borrowings
(1,316)
(13)
(1,316)
-
-
-
-
-
-
Liabilities
(4,010)
(19)
(1,316)
(6)
-
(18)
(1,992)
(7)
(702)
Net cash/(debt)
(2,994)
(19)
(300)
(6)
-
(18)
(1,992)
(7)
(702)
Cash flow arising from operating derivatives at 31 March 2024
2025
2026
2027 - 2029
2030 and thereafter
(in € million)
Carrying
amount
Interests
Repayment
Interests
Repayment
Interests
Repayment
Interests
Repayment
Other current operating assets
1,086
-
536
-
315
-
233
-
2
Assets
1,086
-
536
-
315
-
233
-
2
Other current operating liabilities
(1,011)
-
(554)
-
(287)
-
(167)
-
(3)
Liabilities
(1,011)
-
(554)
-
(287)
-
(167)
-
(3)
Derivatives
75
-
(18)
-
28
-
66
-
(1)
Cash flow arising from instruments included in other financial assets and liabilities at 31 March 2024
2025
2026
2027 - 2029
2030 and thereafter
(in € million)
Carrying
amount
Interests
Repayment
Interests
Repayment
Interests
Repayment
Interests
Repayment
Non consolidated investments
74
-
-
-
-
-
-
-
74
Other non-current assets
399
-
-
-
-
-
-
-
399
Trade receivables
2,997
-
2,997
-
-
-
-
-
-
Other current operating assets
1,261
-
1,261
-
-
-
-
-
-
Assets
4,731
-
4,258
-
-
-
-
-
473
Trade payables
(3,444)
-
(3,444)
-
-
-
-
-
-
Other current operating liabilities
(2,301)
-
(2,301)
-
-
-
-
-
-
Liabilities
(5,745)
-
(5,745)
-
-
-
-
-
-
Other financial assets and liabilities
(1,014)
-
(1,487)
-
-
-
-
-
473
Financial instruments held at 31 March 2023
Cash flow arising from instruments included in net cash/(debt) at 31 March 2023
2024
2025
2026 - 2028
2029 and thereafter
(in € million)
Carrying
amount
Interests
Repayment
Interests
Repayment
Interests
Repayment
Interests
Repayment
Other non-current assets
27
-
-
-
-
-
-
-
27-
Other current financial assets
65
-
65
-
-
-
-
-
-
Cash and cash equivalents
826
-
826
-
-
-
-
-
-
Assets
918
-
891
-
-
-
-
-
27
Non-current borrowings
(2,657)
(6)
-
(6)
-
(16)
(1,200)
(11)
(1,457)
Current borrowings
(396)
-
(396)
-
-
-
-
-
-
Liabilities
(3,053)
(6)
(396)
(6)
-
(16)
(1,200)
(11)
(1,457)
Net cash/(debt)
(2,135)
(6)
495
(6)
-
(16)
(1,200)
(11)
(1,430)
59/90
Cash flow arising from operating derivatives at 31 March 2023
2024
2025
2026-2028
2029 and thereafter
(in € million)
Carrying
amount
Interests
Repayment
Interests
Repayment
Interests
Repayment
Interests
Repayment
Other current operating assets
682
-
287
-
197
-
198
-
-
Assets
682
-
287
-
197
-
198
-
-
Other current operating liabilities
(668)
-
(281)
-
(209)
-
(171)
-
(7)
Liabilities
(668)
-
(281)
-
(209)
-
(171)
-
(7)
Derivatives
14
-
6
-
(12)
-
27
-
(7)
Cash flow arising from instruments included in other financial assets and liabilities at 31 March 2023
2024
2025
2026/2028
2029 and thereafter
(in € million)
Carrying
amount
Interests
Repayment
Interests
Repayment
Interests
Repayment
Interests
Repayment
Non consolidated investments
82
-
-
-
-
-
-
-
82
Other non-current assets
450
-
-
-
-
-
-
-
450
Trade receivables
2,670
-
2,670
-
-
-
-
-
-
Other current operating assets
1,054
-
1,054
-
-
-
-
-
-
Assets
4,256
-
3,724
-
-
-
-
-
532
Trade payables
(3,640)
-
(3,640)
-
-
-
-
-
-
Other current operating liabilities
(2,341)
-
(2,341)
-
-
-
-
-
-
Liabilities
(5,981)
-
(5,981)
-
-
-
-
-
-
Other financial assets and liabilities
(1,725)
-
(2,257)
-
-
-
-
-
532
28.6. Commodity risk management
Most of commodities bought by the Group are quickly transformed and included into work-in-progress. As much as
possible, the Group includes into customer contracts a customer price adjustment clause, so that the Group has a
limited exposure to the variation of commodity prices.
Occasionally, the Group can hedge its exposure with commodity derivatives (copper, aluminum) of which the notional
and the market values are not significant at 31 March 2024.
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I. POST-EMPLOYMENT AND OTHER LONG-TERM DEFINED EMPLOYEE BENEFITS AND SHARE–
BASED PAYMENTS
NOTE 29. POST-EMPLOYMENT AND OTHER LONG-TERM DEFINED EMPLOYEE
BENEFITS
The Group provides its employees with various types of post-employment benefits, such as pensions, retirement
bonuses and medical care, and other long-term benefits, such as jubilee awards and deferred compensation schemes.
The type of benefits offered to individual employees is related to local legal requirements as well as practices of the
specific subsidiaries.
The Group’s health care plans are generally contributory with participants’ contributions adjusted annually.
Post-employment defined benefit plans
For single employer defined benefit plans, the Group uses the Projected Unit Credit Method to determine the present
value of its obligations and the related current and past service costs/profits. This method considers the actuarial
assumptions’ best estimates (for example, the expected turnover, the expected future salary increases and the expected
mortality).
Most defined benefit pension liabilities are funded through pension funds legally distinct from the entities constituting
the Group. Plan assets related to funded plans are invested mainly in equity and debt securities. Other supplemental
pension plans sponsored by the Group for certain employees are directly paid by the employer as they become due.
Post-employment medical benefit plans are predominantly unfunded.
The Group periodically reviews plan assets and obligations. The effects of any change in actuarial assumptions together
with the differences between forecast and actual experience are assessed. The Group recognises in other
comprehensive income the full amount of any actuarial gains and losses as well as the effect of any asset ceiling.
The estimated cost of providing defined benefits to employees is accrued during the years in which the employees
render services. In the income statement, the service cost is included in Earnings Before Interests and Taxes. The past
service cost/profit and specific events impacts (e.g. curtailments and settlements) are recognised in other
expense/income. Net interest on the net defined benefit liability (asset) and administration costs are included in
financial income (expenses).
Post-employment defined contribution plans
For defined contribution plans, the Group pays contributions to independently administered funds at a fixed percentage
of employees’ pay. These contributions are recorded as operating expenses.
Other long-term employee benefits
The accounting method used when recognising obligations arising from other long-term employee benefits is similar
to the method used for post-employment defined benefits, except that actuarial gains/losses are immediately
recognised in full in “Other income/expenses” in the income statement.
The defined benefit obligation amounting to €(3,644) million as at 31 March 2024 (see Note 29.2) is analysed as
follows:
- several pension plans for €(3,389) million;
- other post-employment benefits for €(195) million which include mainly end-of-service benefits in France and
Italy;
- other long-term defined benefits for €(60) million which mainly correspond to jubilees in France and Germany.
61/90
The reconciliation of funded status of the plans with assets and liabilities recognised in the balance sheet is as follows:
(in € million)
At 31 March 2024
At 31 March 2023
Defined benefit obligations
(3,644)
(3,467)
Fair value of plan assets
3,021
2,953
Unfunded status of the plans
(623)
(514)
Impact of asset ceiling
(92)
(93)
NET OF ACCRUED AND PREPAID BENEFIT COSTS AFTER ASSET CEILING
(715)
(607)
Of which:
Accrued pension and other employee benefit costs
(946)
(923)
Prepaid pension and other employee benefit costs
231
316
As detailed in this note, net provisions for post-employment benefits total €(715) million, as at 31 March 2024,
compared with €(607) million, as at 31 March 2023.
The net asset of €231 million related to pension schemes in the United Kingdom and Canada is supported by appropriate
refund expectations, as requested by IFRIC 14.
29.1. Description of the plans
Post-employment benefits are paid under defined contribution and defined benefit plans. The Group’s only obligation
under defined contribution plans is to pay fixed contributions into the funding vehicle. The payments are recognised
when incurred in the income statement.
Defined benefit plans primarily relate to the United Kingdom, the United States of America, Canada, Germany,
Switzerland and France. The specific characteristics (benefit formulas, funding policies and types of assets held) of the
plans vary according to the regulations and laws in the country where the employees are located.
In the United Kingdom, there are nine defined benefit pension plans covering different populations. Six of these are
Sections of the large UK Railways Pension Scheme and provide a pension in the form of an indexed annuity. In addition,
there is one post-retirement plan for train passes. All of the Schemes are closed to new hires who are ordinarily offered
the opportunity to participate in a defined contribution group pension plan (“GPP”), a group life insurance plan and an
income replacement scheme.
In Canada, there are six defined benefit pension plans covering different populations (three plans are subject to
collective bargaining agreements). From 2012 to 2016, five plans were closed to new members. Since 2023, non-
unionized employees are no longer required to contribute to the defined contribution component of the plans. The
unionized pension plans are based on a flat dollar benefit and the remaining plans are based on the best average
earnings. Two unionized pension plans offer indexation per their collective bargaining agreements.
In Germany, the plans provide coverage for pension, death and disability. In the past, the pension was accrued in the
form of an annuity. The plans were deeply modified for future accruals in 2010 for the employees to remove most,
particularly the higher risk, defined benefit pension plans. The plans continue to be accounted for as defined benefit
plans under IAS 19R but with much lower risks for the company. With respect to employee contributions, these are
remitted into defined contributions plans. For legacy BT Germany there is one cash balance plan that is open for active
employees and new participants. It provides cover for pension, disability or death. The plan was introduced in 2008 –
old pension promises for active employees were integrated as an initial pension component (Initialbaustein). It is
unfunded and entirely employer financed. There are various old defined benefit pension plans, which - with very few
exceptions – only apply for vested entitlements and pensioners. All plans are accounted for as defined benefit plans
under IAS 19.
62/90
In the United States of America, following consolidation and merger initiatives performed at the end of 2022, there is
now one major, one minor pension scheme, one defined compensation scheme and three post-retirement medical
plans. New hires are mainly provided with the enhanced defined contribution pensions under 401(k) schemes.
In France, defined benefit pension plans are mainly end of service benefits provided for under the terms of collective
bargaining agreements and Group agreements.
In some countries, these commitments are covered in whole or in part by insurance contracts or pension funds. In this
case, the commitments and assets are measured independently.
The fair value of plan assets is deducted from the Group’s defined benefit obligation, as estimated using the projected
unit credit method, in order to calculate the unfunded obligation to be covered by a provision, or the overfunded right
to be recognized as an asset under specific requirements.
In the following tables, the “Other” zone represents mainly Sweden and Switzerland.
29.2. Defined benefit obligations
(in € million)
At 31 March
2024
United
Kingdom
Euro
Zone
North
America
Other
Defined benefit obligations at beginning of year
(3,467)
(1,596)
(777)
(668)
(425)
Service cost
(61)
(9)
(23)
(13)
(16)
Plan participant contributions
(13)
(6)
(0)
(0)
(6)
Interest cost
(153)
(79)
(28)
(33)
(12)
Administration costs
(9)
(3)
(1)
(4)
(0)
Plan amendments
(3)
-
(2)
-
(1)
Business combinations / disposals
-
-
-
-
-
Curtailments
1
(1)
2
-
-
Settlements
8
-
-
-
8
Actuarial gains (losses) - due to experience
(80)
(69)
4
(3)
(12)
Actuarial gains (losses) - due to changes in demographic assumptions
28
27
1
0
(0)
Actuarial gains (losses) - due to changes in financial assumptions
(32)
11
(20)
4
(27)
Benefits paid
191
81
48
40
21
Foreign currency translation and others
(54)
(45)
0
(4)
(5)
DEFINED BENEFIT OBLIGATIONS AT END OF YEAR
(3,644)
(1,689)
(797)
(682)
(476)
Of which:
Funded schemes
(2,917)
(1,686)
(229)
(635)
(367)
Unfunded schemes
(727)
(3)
(568)
(47)
(109)
63/90
(in € million)
At 31 March
2023
United
Kingdom
Euro Zone
North
America
Other
Defined benefit obligations at beginning of year
(4,543)
(2,309)
(964)
(786)
(485)
Service cost
(88)
(20)
(33)
(20)
(14)
Plan participant contributions
(12)
(6)
-
-
(6)
Interest cost
(113)
(61)
(15)
(29)
(7)
Administration costs
(8)
(3)
(1)
(3)
-
Plan amendments
(3)
-
(2)
(1)
-
Business combinations / disposals
(3)
-
(2)
-
(1)
Curtailments
3
-
1
-
2
Settlements
20
-
-
-
20
Actuarial gains (losses) - due to experience
(95)
(96)
(2)
5
(1)
Actuarial gains (losses) - due to changes in demographic assumptions
(0)
1
(1)
(4)
3
Actuarial gains (losses) - due to changes in financial assumptions
1,110
743
194
121
52
Benefits paid
181
79
46
38
19
Foreign currency translation and others
84
76
1
12
(5)
DEFINED BENEFIT OBLIGATIONS AT END OF YEAR
(3,467)
(1,596)
(777)
(668)
(425)
Of which:
Funded schemes
(2,778)
(1,590)
(231)
(621)
(335)
Unfunded schemes
(689)
(6)
(546)
(47)
(90)
29.3. Plan assets
As indicated in Note 29.1, for defined benefit plans, plan assets have been progressively built up by contributions from
the employer and the employees, primarily in the United Kingdom, Canada, Germany, Sweden, Switzerland and the
United States of America.
(in € million)
At 31 March 2024
United Kingdom
Euro Zone
North America
Other
Fair value of plan assets at beginning of year
2,953
1,944
97
543
369
Interest income
134
97
4
26
8
Actuarial gains (losses) on assets due to experience
(61)
(100)
5
9
25
Company contributions
58
27
1
21
10
Plan participant contributions
13
6
0
0
6
Settlements
(9)
-
-
-
(9)
Benefits paid from plan assets
(130)
(77)
(1)
(35)
(15)
Foreign currency translation and others
62
54
-
3
5
FAIR VALUE OF PLAN ASSETS AT END OF YEAR
3,021
1,950
106
566
399
(in € million)
At 31 March 2023
United Kingdom
Euro Zone
North America
Other
Fair value of plan assets at beginning of year
3,732
2,603
101
631
397
Interest income
98
69
2
23
4
Actuarial gains (losses) on assets due to experience
(694)
(593)
(5)
(69)
(27)
Company contributions
46
27
1
8
11
Plan participant contributions
12
6
-
-
6
Settlements
(20)
-
-
-
(20)
Benefits paid from plan assets
(127)
(79)
(2)
(34)
(13)
Foreign currency translation and others
(94)
(89)
1
(17)
11
FAIR VALUE OF PLAN ASSETS AT END OF YEAR
2,953
1,944
97
543
369
64/90
29.4. Components of plan assets
(in € million)
At 31 March
2024
%
United
Kingdom
Euro Zone
North
America
Other
Equities
871
29%
26%
33%
35%
32%
Bonds
1,854
61%
69%
47%
52%
39%
Insurance contracts
8
-
-
2%
-
2%
Other
289
10%
5%
18%
13%
27%
TOTAL
3,021
100%
100%
100%
100%
100%
(in € million)
At 31 March
2023
%
United
Kingdom
Euro Zone
North
America
Other
Equities
696
24%
19%
20%
37%
31%
Bonds
1,950
66%
75%
58%
52%
40%
Insurance contracts
8
-
-
2%
-
2%
Other
299
10%
6%
20%
11%
27%
Total
2,953
100%
100%
100%
100%
100%
An active market price exists for all plan assets except properties. Assets of each funded plan are managed by a
dedicated investment committee in accordance with the scheme rules and local regulation. The Group has
representatives on these committees and promotes simple and diversified investment strategies.
The aim is to limit investment risks to those necessary to fulfil the benefit commitment (asset and liability
management). As a result, strategic allocation favours liquid assets and especially long bonds. As at 31 March 2024,
plan assets do not include securities issued by the Group.
29.5. Assumptions (weighted average rates)
Actuarial valuations of the Group’s benefit obligation have been made as at 31 March 2024 and 31 March 2023.
These valuations include:
• Assumptions on staff turnover, mortality and salary increases;
• Assumptions on retirement ages varying from 60 to 65 depending on the country and the applicable laws;
• Discount rates used to determine the actuarial present value of the projected benefit obligations.
Actuarial assumptions used vary by type of plan and by country.
(in %)
At 31 March
2024
United
Kingdom
Euro Zone
North America
Other
Discount rate
4.29%
5.00%
3.28%
5.07%
2.36%
Rate of compensation increase
2.65%
3.03%
2.64%
2.04%
2.18%
(in %)
At 31 March
2023
United
Kingdom
Euro Zone
North America
Other
Discount rate
4.42%
4.95%
3.67%
5.04%
2.78%
Rate of compensation increase
2.70%
3.08%
2.88%
2.03%
2.00%
65/90
As of 31 March 2024, the weighted average durations of the defined benefit obligations are the following:
(in years)
At 31 March
2024
United
Kingdom
Euro Zone
North America
Other
Weighted average duration
13
14
11
14
11
Discount rate
In accordance with IAS 19R principles, discount rates are set each year by reference to the market yields on high quality
corporate bonds denominated in the relevant currency. In countries where there is no deep market in such bonds,
discount rates are set by reference to the yields on government bonds. The required information is sourced from the
company’s actuarial advisors and from market quotations and indices.
Rate of compensation increase
Compensation increase assumptions are determined at country level and reviewed centrally.
Assumptions related to the post-employment healthcare obligation
The healthcare trend rate is assumed to be 4.81% in the year ended 31 March 2024 and reduces thereafter to an
ultimate rate of 0.74%.
Sensitivity analysis
A 25 bp increase or decrease in the main assumptions would have the following impacts on the defined benefit
obligation:
(in € million)
At 31 March
2024
Impact of a 25bp increase or decrease in the discount rate
-108 / 114
Impact of a 25bp increase or decrease in the rate of compensation increase
16 / -16
29.6. Analysis of post-employment and other long-term defined benefit expense
As at 31 March 2024, the benefit expense for the whole Group is the following:
(in € million)
Year ended at
31 March 2024
United
Kingdom
Euro Zone
North America
Other
Service cost
(61)
(9)
(23)
(13)
(16)
Defined contribution plans
(187)
(17)
(31)
(18)
(121)
Actuarial gains (losses) on other long-term benefits
(1)
0
(2)
2
(1)
Past service gain (cost)
(3)
-
(2)
-
(1)
Curtailments/settlements
(0)
(1)
2
-
(1)
EBIT impact
(254)
(27)
(56)
(30)
(141)
Financial income (expense)
(31)
11
(26)
(11)
(5)
TOTAL BENEFIT EXPENSE
(285)
(16)
(82)
(41)
(147)
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(in € million)
Year ended at
31 March 2023
United
Kingdom
Euro Zone
North America
Other
Service cost
(88)
(20)
(33)
(20)
(14)
Defined contribution plans
(163)
(11)
(93)
(18)
(41)
Actuarial gains (losses) on other long-term benefits
12
-
10
-
2
Past service gain (cost)
(3)
-
(2)
(1)
-
Curtailments/settlements
3
-
1
-
2
EBIT impact
(238)
(31)
(117)
(40)
(51)
Financial income (expense)
(26)
1
(14)
(9)
(4)
TOTAL BENEFIT EXPENSE
(264)
(30)
(131)
(49)
(55)
29.7. Cash flows
In accordance with local practice and regulations, the company pays contributions to the funded schemes it sponsors
and benefits to the members of unfunded plans.
Total cash spent for defined benefit plans in the year ended 31 March 2024 amounted to €54 million and covers both
regular contributions for accruing service and recovery contributions in case of funding shortfall.
For defined benefit plans, the expected cash outflows are the following:
• €66 million in the year ending 31 March 2025;
• €57 million in the year ending 31 March 2026;
• €60 million in the year ending 31 March 2027.
Total cash spent for defined contribution plans in the year ended 31 March 2024 amounted to €122 million.
NOTE 30. SHARE-BASED PAYMENTS
The Group issues equity-settled and cash-settled share-based payments to certain employees.
Equity-settled share-based payments
Equity-settled share-based payments are measured at fair value at the grant date (excluding the effect of non-market-
based conditions) using the Black-Scholes model or the Monte Carlo model. The cumulative recognised expense is
based on the fair value at grant date and on the estimated number of shares that will eventually vest (including the
effect of non-market-based vesting conditions). It is recorded in Earnings Before Interests and Taxes throughout the
vesting period with a counterpart in equity.
At the end of each reporting period, the entity revises its estimates of the number of options that are expected to vest
based on the non-market vesting conditions. It recognises the impact of the revision to original estimates, if any, in the
income statement, with a corresponding adjustment to equity.
Cash-settled share-based payments
For cash-settled share-based payments, a liability equal to the portion of the goods or services rendered is recognised
at the current fair value. The fair value is remeasured at each balance-sheet date and at the date of settlement, with
any changes recognised in the income statement.
The Group may also provide employees with the ability to purchase the Group’s ordinary shares at a discounted price
compared to that of the current market value. In that case, the Group records an expense based on the discount given
and its estimate of the shares expected to vest
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30.1. Stock options and performance shares
Key characteristics
Plan issued by
Shareholders
Meeting on 10
July 2019
Plans issued by Shareholders Meeting on 4 July
2021
Plan issued by Shareholders
Meeting on 28 July 2021
PSP 2020
We Are
Alstom 2021
PSP 2021
PSP Special
PSP 2022
PSP 2023
Performance
shares
Free shares
Performance
shares
Performance
shares
Performance
shares
Performance
shares
Grant date
10/03/2020
04/07/2021
04/07/2021
04/07/2021
10/05/2022
09/05/2023
Number of beneficiaries
878
63,717
1,375
18
1,474
1,471
Adjusted number granted (*)
1,252,619
955,755
1,867,325
243,000
2,481,612
2,439,122
Adjusted number exercised since
the origin
610,470
790,770
1,575
-
666
-
Adjusted number cancelled since
the origin
642,149
164,985
239,600
50,000
219,704
74,954
Adjusted number outstanding at 31
March 2024
-
-
1,626,150
193,000
2,261,242
2,364,138
inc. to the members of the
Leadership team at 31 March 2024
-
-
223,000
163,000
309,500
359,500
Fair value at grant date (in €)
36.58
42.01
35.60
41.01
20.48
20.23
(*) The number of performance shares have been adjusted as a result of transactions that have impacted the number of capital shares after grant
dates.
The long-term incentive plans set up since 2016 allocate only performance shares.
The grant of these instruments is conditioned by the satisfaction of performance indicators.
PSP 2020 granted on 10 March 2020
This plan has been agreed by the board of directors of 10 March 2020. 1,145,625 performance shares have been
initially granted to 878 beneficiaries.
The final allocation depends on three internal performance conditions based on Group adjusted EBIT margin, Free Cash
Flows and objective of reduction in the energy consumption of the solutions offered to clients for the fiscal year ended
31 March 2023, as well as one relative condition linked to the performance of the Company’s share. After cancellation
of shares due to beneficiaries’ attendance at the end of vesting period, 77 % of the initial grant (150%) has been achieved
based on the performance conditions of the year ended in March 2023 and 73 % of the performance shares have been
cancelled. Therefore, on 15 May 2023, 609,895 performance shares have been delivered.
2021 free share plan named “We Are Alstom 2021”
On 4 July 2021, the Board of Directors approved the grant of a worldwide free share Plan named “We are Alstom
2021”. The 15-shares-award concerns all employees within Alstom at the grant date, on the condition they are still
employees of Alstom Group at the end of a 2-years-vesting period, representing a maximum of 955,755 new shares of
€7 of nominal value each to be issued in favour of a maximum of 63,717 beneficiaries. It was also decided that in the
countries where, for tax and/or legal purpose, the granting of free shares would be difficult or not possible, a cash
equivalent bonus will be granted to employees. On 5 July 2023, based on the list of initial beneficiaries that were still
employees of Alstom Group at this date, 790,710 free shares have been delivered.
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PSP 2021 granted on 4 July 2021
This plan has been agreed by the board of directors of 4 July 2021. 1,867,325 performance shares have been initially
granted to 1,375 beneficiaries.
The final allocation depends on three internal performance conditions based on Group adjusted EBIT margin, Free Cash
Flows and objective of reduction in the energy consumption of the solutions offered to clients for the fiscal year ended
31 March 2024, as well as one relative condition linked to the performance of the Company’s share. The final delivery
will take place at the latest two business days after the end of the vesting period, the 4 July 2024.
Special PSP granted on 4 July 2021
This plan has been agreed by the board of directors of 4 July 2021 and aims to reward integration of Bombardier
Transportation success. 243,000 performance shares have been initially granted to 18 beneficiaries.
The final allocation depends on three internal performance conditions based on Alstom margin evolution on specific
projects, achievement of synergies and earnings per share and a relative performance condition based on the employee
engagement score of the Group. These conditions will be assessed at the end of the fiscal year ended 31 March 2025.
The final delivery will take place at the latest two business days following the Vesting Period, i.e 4 July 2025.
PSP 2022 granted on 10 May 2022
This plan has been agreed by the board of directors of 10 May 2022. 2,481,612 performance shares have been initially
granted to 1,474 beneficiaries.
The final allocation depends on four internal performance conditions based on Group adjusted EBIT margin, Free Cash
Flows, objective of reduction in the energy consumption of the solutions offered to clients and Alstom employee
engagement level for the fiscal year ended 31 March 2025, as well as one relative condition linked to the performance
of the Company’s share. The final delivery will take place at the latest fifth business day following the end of the vesting
period.
PSP 2023 granted on 9 May 2023
This plan has been agreed by the board of directors of 9 May 2023. 2,439,122 performance shares have been initially
granted to 1,471 beneficiaries.
The final allocation depends on four internal performance conditions based on Group adjusted EBIT margin, Free Cash
Flows, objective of reduction in the energy consumption of the solutions offered to clients and Alstom employee
engagement level for the fiscal year ended 31 March 2026, as well as one relative condition linked to the performance
of the Company’s share. The final delivery will take place at the latest fifth business day following the end of the vesting
period.
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Movements
Number of performance/free shares
OUTSTANDING AT 31 March 2022
5,232,617
Granted (*)
2,481,612
Exercised
(393,155)
Cancelled
(886,759)
OUTSTANDING AT 31 March 2023
6,434,315
Granted (**)
2,439,122
Exercised
(1,401,811)
Cancelled
(1,027,066)
OUTSTANDING AT 31 March 2024
6,444,560
(*) Includes 2,481,612 shares granted through PSP 2022.
(**) Includes 2,439,122 shares granted through PSP 2023.
Valuation
PSP 2020
PSP 2021
PSP Special
We Are Alstom
2021
PSP 2022
PSP 2023
performance
shares
performance
shares
performance
shares
Free shares
performance
shares
performance
shares
Grant date
10/03/2020
04/07/2021
04/07/2021
04/07/2021
10/05/2022
09/05/2023
Expected life (in years)
3.2
3.0
4.0
2.0
3.0
3.0
End of vesting period
31/05/2023
04/07/2024
04/07/2025
04/07/2023
31/05/2025
31/05/2026
Share price at grant date (in €)
42.82
43.03
41.01
42.01
23.04
23.65
Volatility
17%
25%
23%
28%
31%
34%
Risk free interest rate
-0.7%
-0.6%
-0.5%
-0.6%
0.6%
2.7%
Dividend yield
1.5%
1.2%
1.2%
1.2%
1.5%
1.6%
The plan valuation method follows either a Black & Scholes model (for Special PSP and We Are Alstom) or a Monte
Carlo model (for PSP 2020, PSP 2021, PSP 2022 and PSP2023) as well as performance shares anticipated). Expenses
related to each plan are spread over the vesting period on a linear basis.
The volatility factor applied corresponds to Alstom’s volatility quotation for all the plans.
The Group booked a total expense of €19 million for the year ended 31 March 2024 (to be compared to €48 million for
the year ended 31 March 2023). As a reminder in March 2023, €18 million of expenses related to Employee Share
Purchase scheme (We Share Alstom) were also booked as share-based payment expenses.
The Board of Directors is committed, in the event of a major change in the Group's strategy or structure, or at the time
of implementing new accounting standards to adapting these performance conditions to new issues highlighted for the
coming years, both in their nature and in the levels of results to be achieved, while maintaining a high level of demand.
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NOTE 31. EMPLOYEE BENEFIT EXPENSE AND HEADCOUNT
In the following figures, staff of joint-operations entities are integrated in fully, staff of joint-ventures and associates
are not considered.
Year ended
(in € million)
At 31 March 2024
At 31 March 2023
Wages and salaries
4,797
4,398
Social charges
1,158
1,082
Post-employment and other long-term benefit expense (see Note 29)
254
163
Share-based payment expense (see Note 30)
19
66
TOTAL EMPLOYEE BENEFIT EXPENSE
6,228
5,709
Year ended
At 31 March 2024
At 31 March 2023
Staff of consolidated companies at year end
Managers, engineers and professionals
51,284
47,677
Other employees
33,464
32,506
HEADCOUNT
84,748
80,183
Year ended
At 31 March 2024
At 31 March 2023
Average staff of consolidated companies over the period
Managers, engineers and professionals
49,755
41,721
Other employees
33,021
34,903
HEADCOUNT
82,776
76,624
J. CONTINGENT LIABILITIES AND DISPUTES
Commitments arising from execution of operations controlled by the Group
In the ordinary course of business, the Group is committed to fulfil various types of obligations arising from customer
contracts (among which full performance and warranty obligations). Obligations may also arise from leases and
regulations in respect of tax, custom duties, environment, health and safety. These obligations may or may not be
guaranteed by bonds issued by banks or insurance companies.
As the Group is in a position to control the execution of these obligations, a liability only arises if an obligating event
(such as a dispute or a late completion) has occurred and makes it likely that an outflow of resources will occur.
When the liability is considered as only possible but not probable or, when probable, cannot be reliably measured, it is
disclosed as a contingent liability.
When the liability is considered as probable and can be reliably measured, the impact on the financial statements is
the following:
• if the additional liability is directly related to the execution of a customer contract in progress, the estimated gross
margin at completion of the contract is reassessed; the cumulated margin recognised to date based on the
percentage of completion and the accrual for future contract loss, if any, are adjusted accordingly,
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• if the additional liability is not directly related to a contract in progress, a liability is immediately recognised on the
balance sheet.
The contractual obligations of subcontractors towards the Group are of the same nature as those of the Group towards
its customers. They may be secured by the same type of guarantees as those provided to the Group’s customers.
No contingent asset is disclosed when the likelihood of the obligation of the third party remains remote or possible. A
contingent asset is disclosed only when the obligation becomes probable. Any additional income resulting from a third
party obligation is taken into account only when it becomes virtually certain.
Commitments arising from execution of operations not wholly within the control of the Group
Obligations towards third parties may arise from on-going legal proceedings, credit guarantees covering the financial
obligations of third parties in cases where the Group is the vendor, and indemnification guarantees issued in connection
with disposals of business entities.
In case of legal proceedings, a contingent liability is disclosed when the liability is considered as only possible but not
probable, or, when probable, cannot be reliably measured. In case of commitments arising from guarantees issued,
contingent liabilities are disclosed as soon as guarantees have been delivered and as long as they have not matured.
A provision is recorded if the obligation is considered as probable and can be reliably measured. Contingent assets
arising from legal proceedings or guarantees delivered by third parties are only disclosed when they become probable.
NOTE 32. CONTINGENT LIABILITIES
Commercial obligations
Contractual obligations of the Group towards its customers may be guaranteed by bank bonds or insurance bonds.
Bank and insurance bonds may guarantee liabilities already recorded on the balance sheet as well as contingent
liabilities.
To issue these bonds, the Group relies on both uncommitted bilateral lines in numerous countries and a €12.7 billion
Committed Guarantee Facility Agreement (“CGFA”) with 16 tier one banks allowing issuances of bonds until 22nd July
2025 with tenors up to 7 years. The CGFA has been further extended until 22 July 2026, with 15 banks for €12 billion.
This bilateral line contains a change of control clause, which may result in the program being suspended, in the
obligation to procure new bonds to replace outstanding bonds or to provide cash collateral.
At 31 March 2024, the total outstanding bonding guarantees related to contracts from continuing operations, issued
by banks or insurance companies, amounted to €28.6 billion (€26.2 billion at 31 March 2023). The available amount
under the Committed Guarantee Facility Agreement at 31 March 2024 amounts to €4.1 billion (€5.3 billion at 31 March
2023).
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NOTE 33. DISPUTES
33.1. Disputes in the Group’s ordinary course of business
The Group is engaged in several legal proceedings, mostly contract-related disputes that have arisen in the ordinary
course of business. These disputes, often involving claims for contract delays or additional work, are common in the
areas in which the Group operates, particularly for large long-term projects. The amounts in question, which can be
substantial, are claimed either from the Group alone or jointly with its consortium partners.
In some proceedings the amount claimed is not specified at the beginning of the proceedings. Amounts estimated in
respect of these litigations are taken into account in the estimate of margin at completion in case of contracts in
progress or included in provisions and other current liabilities in case of completed contracts when considered as reliable
estimates of probable liabilities. Actual costs incurred may exceed the amount of initial estimates because of a number
of factors including the inherent uncertainties of the outcome of litigation.
33.2. Other Disputes
Asbestos
Some of the Group’s subsidiaries are defendants in civil proceedings in relation to the use of asbestos, primarily in
France as well as in Spain, in the United Kingdom and in the United States of America. In France, these proceedings
are initiated by certain employees or former employees suffering from an occupational disease in relation to asbestos
with the aim of obtaining a court decision allowing them to obtain a supplementary compensation from the French
Social Security funds. In addition, employees and former employees of the Group not suffering from an asbestos related
occupational disease have started lawsuits before the French courts with the aim of obtaining compensation for
damages in relation to their alleged exposure to asbestos, including the specific anxiety damage.
While the outcome of the existing asbestos-related cases cannot be predicted with reasonable certainty, the Group
believes that these cases would not in the aggregate have any material adverse effect on its financial condition.
Alleged anti-competitive activities
Brazil
In July 2013, the Brazilian Competition Authority (“CADE”) raided a number of companies involved in transportation
activities in Brazil, including the subsidiaries of Alstom and Bombardier Transportation, following allegations of anti-
competitive practices. After a preliminary investigation stage, CADE notified in March 2014 the opening of an
administrative procedure against several companies, of which the Alstom’s and Bombardier Transportation’s
subsidiaries in Brazil, and certain current and former employees of the Group.
CADE ruled in July 2019 a financial fine of BRL 133 million (approximately €25 million) on Alstom’s subsidiary in Brazil
as well as a ban to participate in public procurement bids in Brazil conducted by the Federal, State, and Municipal
Public Administration over a period of 5 years. In parallel, CADE applied a financial penalty of BRL 23 million
(approximately €4 million) on Bombardier Transportation’s subsidiary in Brazil (there is no ban to participate in public
procurement bids in Brazil).
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In September and December 2020, both Alstom and Bombardier Transportation’s subsidiaries in Brazil filed a lawsuit
before the Brasilia civil court aiming at suspending and ultimately cancelling the July 2019 ruling. Both subsidiaries
obtained an injunction to suspend the effects of the administrative ruling until a final judgment is issued on the merits.
The public prosecutor of the State of Sao Paulo launched in May 2014 a civil action against the Group’s subsidiaries in
Brazil, along with a number of other companies, in connection with a transportation project. The total amount asserted
against all companies was BRL 2.5 billion (approximately €463 million), excluding interest and possible third party
damages.
In December 2014, the public prosecutor of the State of Sao Paulo also initiated a lawsuit against Alstom’s subsidiaries
in Brazil, along with a number of other companies (including Bombardier Transportation’s local subsidiary) related to
alleged anti-competitive practices regarding the first phase of a train maintenance project, and in the last quarter of
2016, regarding a second phase of the said maintenance project.
The Group’s subsidiaries are actively defending themselves against these two actions.
In case of proven illicit practices, possible sanctions can include the cancellation of the relevant contracts, a ban to
participate in public procurement bids in Brazil, the payment of compensatory damages, the payment of punitive
damages and/or the forced dissolution of the Brazilian subsidiaries involved.
Italy
On 23 June 2020, a series of searches and arrests were carried out by the Milan police under instructions of the Milan
Prosecution Office as part of a preliminary investigation into alleged bribes and bid-rigging in connection with public
tenders for Azienda Transporte Milanesi (“ATM”), the municipal public transportation company and operator of the
Milan Subway. The investigation concerned at least seven companies and 28 individuals, including two current
employees and two former employees of Alstom Ferroviaria S.p.A (the “Alstom Italy Employees”).
The Prosecution Office alleged that the Alstom Italy Employees engaged in bid-rigging under Article 353 of the Italian
Criminal Code, including colluding with an employee of ATM to obtain confidential technical information in order to
secure an undue advantage in the tender process for a 2019 contract for the Milan subway. Alstom did not ultimately
submit a bid in respect of this contract.
Alstom Ferroviaria S.p.A. was initially also subject to investigation regarding alleged violation of Legislative Decree No.
231/2001 (“Decree 231/2001”) for not having implemented (or not having efficiently applied) a system of control
capable to avoid the commission by its employees of corruption. In connection with its withdrawal of the bribery
charges against the two employees in July 2022 (see below), the Public Prosecutor issued a decree formally acquitting
the company from the charge of violating Decree 231/2001.
Alstom conducted an internal investigation into the allegations discussed above in coordination with external counsel
and took certain interim measures in response to the allegations of the Prosecution Office, in particular by suspending
an employee of Alstom Ferroviaria S.p.A. (one of the two “former employees” referenced in this description).
In July 2022, the Prosecution Office (i) as noted above, withdrew the bribery charges against the individuals (and hence
Alstom Ferroviaria S.p.A.) and (ii) sought to indict the Alstom Italy Employees for bid rigging. In November 2022, ATM
and the Milan Municipality joined the proceedings as offended parties (“costituzione di parte civile”). In 2023, the two
former employees entered into a plea agreement (including a conviction). The two current employees continued their
defense and moved to withdraw the bid rigging charges; their request is pending before the court.
Spain
The Spanish Competition Authority (“CNMC”) opened a formal procedure end of August 2018 in connection with
alleged irregularities in public tenders with the Spanish Railway Infrastructures Administrator (“ADIF”) against eight
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competing companies active in the Spanish signaling market including Bombardier European Investments, S.L.U (BEI)
and its parent company Bombardier Transportation (Global Holding) UK Limited, and Alstom Transporte SA and its
parent Alstom SA. The inclusion of the parent company is typical of European competition authorities at the early stage
of the proceedings. No Alstom or Bombardier managers were included in the file. In September 2020, the companies
obtained access to the Statement of Objections in which the CNMC discloses the evidence gathered against the various
participants in the alleged cartel in the Spanish signaling market. Both Alstom and Bombardier have submitted their
defense paper rejecting all of CNMC allegations on the basis of absence of evidence. The Sub-directorate of the CNMC
submitted a Proposed Resolution end of March 2021 which both Alstom and Bombardier rejected. Both companies
submitted their defense to the Council of the CNMC.
The Council of the CNMC ruled in September 2021 a financial fine of €22 million and €3.7 million on Alstom’s subsidiary
and Bombardier Transportation’s subsidiary in Spain respectively. The Council also ruled a ban to participate in public
procurement bids in Spain. The scope and duration of the ban to participate in public procurement both for Alstom’s
and Bombardier Transportation’s subsidiaries in Spain remain to be set by the State Public Procurement Advisory Board
(Junta Consultiva de Contratación Pública del Estado).
On 29 November and 7 December 2021 Alstom’s subsidiary and Bombardier Transportation’s subsidiary in Spain
respectively lodged an appeal against this ruling of the Council of the CNMC before the National High Court (“Audiencia
Nacional”). The Group believes that the grounds of appeal are solid. On 23 September 2022, Alstom’s subsidiaries in
Spain filed their respective statement of claim under the appeal proceedings which are ongoing.
In parallel to these appeals, Alstom’s and Bombardier Transportation’s subsidiaries in Spain have respectively requested
to the National High Court, as an interim measure, to suspend the implementation of the Council ruling regarding (i)
the payment of the financial fine and (ii) the prohibition to tender in public procurement bids in Spain. On the 1 and
on the 14 February 2022 respectively, the National High Court accepted both requests for interim measures and
granted such suspension.
Pending investigations which relate to Bombardier Transportation
The matters described in this section relate to historical conduct involving Bombardier Transportation that occurred
prior to its acquisition by Alstom. As part of the terms of the acquisition Bombardier Inc. (“BI”) agreed to indemnify
Alstom for all losses incurred in relation to a defined list and scope of compliance matters. The parties also agreed that
BI would be entitled to conduct and control the defense of any such compliance matters, which include the matters
described below. Subsequent to the acquisition Alstom conducted a review of Bombardier Transportation’s policies and
procedures in relation to “compliance” matters as well as specific contracts (the one discussed below and others) pre-
identified as “high risk” and took remedial actions.
Bombardier Transportation is the subject of an audit by the World Bank Integrity Vice Presidency and of several
investigations relating to allegations of corruption including by the Swedish Prosecution authority, the Special
Investigation Unit (“SIU”) and National Prosecuting Authority (“NPA”) in South Africa and the U.S. Department of
Justice (“DOJ”).
These investigations or proceedings may result in criminal sanctions, including fines which may be significant, exclusion
of entities from tenders (e.g., “debarment” by the World Bank) and third-party actions. Alstom is cooperating with the
relevant authorities or institutions in respect of these matters, including by responding to information requests and
making presentations regarding post-closing reviews and remediation measures, including pursuant to applicable DOJ
policies related to corporate acquisitions.
Swedish authorities, the World Bank and the DOJ are in particular investigating a 2013 contract for the supply of
equipment and services to Azerbaijan Railways in the amount of approximately $340 million (principally financed by
the World Bank) awarded to a bidding consortium composed of Bombardier Transportation’s Sweden’s subsidiary (BT
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Sweden), a Russian Bombardier Transportation affiliate (with third party shareholders) and a third party (the “ADY
Contract”). Ownership of the affiliate was subsequently transferred to an entity well established in the Russian and
CIS market with which BT Sweden had a historical relationship, and an affiliate of which had been added post-bid
approval as a project sub-contractor. There remains uncertainty as to the services provided by these entities in return
for some of the payments they received.
Sweden
The Swedish authorities commenced an investigation in relation to the ADY Contract in 2016, and in 2017 filed charges
against the former head of Sales, North Region, RCS, BT Sweden (the ”Former BTS Employee”) for aggravated bribery
and, alternatively, influence trafficking. The authorities alleged that the Former BTS Employee had contacts and
correspondence with a representative of the third-party member of the consortium who was also employed by
Azerbaijan railways during the bidding period with a view towards illicitly influencing the outcome of the tender.
After a trial the Former BTS Employee was acquitted on both counts in 2017. The authorities appealed the decision
and currently the aggravated bribery charge remains pending (although the defendant, a Russian national, is no longer
in-country).
Following an investigation the Swedish authorities filed charges of aggravated bribery and aiding and abetting against
another former BT Sweden employee. The employee was acquitted in December 2021; the acquittal was affirmed on
appeal in May 2023.
World Bank
The World Bank, via its Integrity Vice Presidency (“INT”), audited the ADY Contract and in 2018 the INT issued a
strictly confidential show cause letter which was leaked. The letter outlines INT’s position regarding alleged collusion,
corruption and fraud in the ADY Contract and obstruction of the INT’s investigation. The INT informed Alstom in 2023
that it remained within the scope of the proceeding which the INT had conveyed to the World Bank’s Sanctions Board;
Alstom subsequently made a presentation in November 2023 to the INT regarding the compliance integration of
Bombardier Transportation and its post-closing due diligence review. Pending further developments in the audit, it is
possible, notwithstanding Alstom’s post-acquisition cooperation with the investigation, that it could result in some
form of debarment of Bombardier Transportation (or its corporate successor) and/or BT Sweden from bidding on
contracts financed by the World Bank for a number of years.
U.S. Department of Justice – DOJ
The DOJ notified BI in February 2020 that it had opened an investigation. To Alstom’s knowledge the DOJ has been
making information requests since March 2020 to BI regarding the ADY Contract and had indicated that the scope of
its investigation could extend beyond the ADY Contract. Alstom has to date supported BI in responding to information
requests with respect to the ADY Contract, a Bombardier Transportation South Africa (“BTSA”) contract with Transnet
(cf. below “South-Africa” and “Project execution related litigation - South-Africa”) and a BTSA signaling contract with
the Passenger Rail Agency of South Africa.
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South Africa
The contract signed in 2014 between BTSA and Transnet Freight Rail for the supply of 240 electric locomotives (the
“Transnet LSA”) is one of the numerous matters under investigation by the Special Investigation Unit in South Africa
(“SIU”) and the South African National Prosecuting Authority (“NPA”). The Transnet LSA was previously investigated
by the Zondo Commission, which recommended further investigation of certain aspects and individuals involved.
The Transnet LSA is also the subject of an ongoing commercial dispute and litigation. Following commercial
negotiations between Alstom and Transnet, the parties signed a settlement agreement in August 2023 to which the
SIU is a party (cf. below “Project execution-related litigation – South Africa”).
AMF
As part of its market monitoring function, in 2021/22 the AMF opened an investigation relating to Alstom’s financial
communication and trading in its shares, as well as any financial instrument linked to its shares, as from January 1,
2020. The investigation remains ongoing.
Project execution related litigation
CR-1 Marmaray railway infrastructure – Turkey
In March 2007, the Turkish Ministry of Transport (“DLH”) awarded the contract to upgrade approximately 75 km of
railway infrastructure in the Istanbul region, known as the “Marmaray Commuter Rail Project (CR-1)” to the
consortium Alstom Dogus Marubeni (“AMD”), of which Alstom Transport’s main French subsidiary is a member. This
project, which included works on the transcontinental railway tunnel under the Bosphorus, has undergone significant
delays mainly due to difficulties for the DLH to make the construction site available. Thus, the AMD consortium
terminated the contract in 2010. This termination was challenged by DLH, who thereafter called the bank guarantees
issued by the consortium up to an amount of approximately €80 million. Following injunctions, the payment of such
bank guarantees was forbidden, and the AMD consortium immediately initiated an arbitration procedure to resolve the
substantive issues. The arbitral tribunal has decided in December 2014 that the contract stands as terminated by virtue
of Turkish law and has authorized the parties to submit their claims for compensation of the damages arising from
such termination.
The set off of the various amounts awarded by the tribunal to both parties after more than ten years of proceedings
resulted in a net amount, after set-off, of €27.4 million payable by the AMD consortium to DLH. AMD partners paid
their respective proportionate share to the Ministry (Alstom share being €8.5 million) during the summer of 2021.
Bonds were released and the case is therefore closed subject to the process of release of counter-guarantees
respectively issued by AMD’s partners which is ongoing.
On the other hand, through arbitration request notified on 29 September 2015, Marubeni Corporation launched
proceedings against Alstom Transport SA taken as consortium leader in order to be compensated for the consequences
of the termination of the contract with DLH. The other AMD consortium member (Dogus) brought similar proceedings
in March 2016 and sought consolidation of the disputes between consortium members in a single case. Alstom
Transport SA is rejecting these compensation requests and is defending itself in these proceedings between consortium
members which, while having gone through a consolidation in a single case, have however been suspended by the
arbitral tribunal pending the outcome of the main arbitral proceedings between AMD and DLH. In October 2018, Dogus
applied for interim measures to clarify certain aspects of the consortium agreement and this request was rejected by
the arbitral tribunal on account of the suspension. In January 2021, Dogus filed an application to resume arbitration
proceedings while Alstom filed a successful application seeking an order of payment according to partners’ net
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proportionate shares (see above). In accordance with the timetable defined by the case management team once the
matter resumed, Dogus and Marubeni filed their respective statements of claims on 30 September 2021 and Alstom
submitted its defense and counterclaims on 14 February 2022. On 28 April 2022, the arbitral tribunal issued an order
to close the document production phase of the proceedings. On 9 September 2022 and on 13 February 2023, Dogus
and Marubeni filed their respective replies and statements of defense to Alstom’s counterclaims and their rejoinder to
which Alstom responded on 30 November 2022 and on 20 February 2023 by filing its rejoinder and reply on
counterclaims. The arbitral tribunal hearing started on 20 March and ended on 29 March 2023. Post hearing briefs
were filed on 19 May 2023, cost submissions on 2 & 9 June 2023, with the final award (the “Award”) notified on 5
March 2024.
The Award was rendered as a majority decision, with a dissenting view. The present award of the majority orders
Alstom Transport SA to pay a total principal amount of €44.6 million to Marubeni and Dogus collectively, plus interest
on amounts due, and € 1.1 million of legal costs. As of 31 March 2024, the total amount due and payable by Alstom
under the Award amounted to € 61.2 million.
On 3 and 4 April 2024, Marubeni and Dogus raised applications for correction, interpretation and/or supplement of the
Award. The timeline and procedure for correction, interpretation and/or supplement is at the discretion of the Tribunal.
Alstom Transport SA believes that there are good grounds to reject these applications. In parallel to the correction
proceedings, on 19 April 2024, Alstom sought annulment of the Award (in its entirety or in part), by reference to the
Swiss Federal Tribunal. The timeline and procedure for annulment is at the discretion of the Swiss Federal Tribunal. A
final decision on the dispute is expected before the end of 2024.
Regional Minuetto trains & high-speed Pendolino trains – Italy
Alstom Transport’s subsidiary in Italy is involved in two litigation proceedings with the Italian railway company
Trenitalia. One is related to a supply contract of regional Minuetto trains awarded in 2001 (the “Minuetto case”), and
the other to a supply contract of high-speed Pendolino trains awarded in 2004 (the “Pendolino case”). Each of these
contracts has undergone technical issues and delays leading the Trenitalia company to apply delay and technical
penalties and, consequently, to withhold payments. Since the parties dispute certain technical matters as well as the
causes and responsibilities of the delays, the matter was brought before Italian courts in 2010 and 2011 respectively.
In the Minuetto case on 26 June 2019, the Court of Cuneo issued its decision, which Alstom after careful and detailed
analysis considered to be wrong for various legal reasons. On 24 January 2020 Alstom appealed, and on 12 May 2020
Trenitalia counter appealed, the decision before the Court of Appeal of Turin. Proceedings took place and on 24
December 2021 Alstom received the Court of Appeal’s decision. The Court of Appeal notably (i) rejected Alstom’s
request to order supplementary technical expertise and (ii) did not recognize Alstom’s economic dependence vis-à-vis
Trenitalia, which led consequently to the rejection of Alstom’s request to have the penalties clause declared null, as
opposed to the first-degree decision. However, the Court of Appeal confirmed the first-degree decision regarding (i)
the amount of the penalties due to Trenitalia and (ii) the fact that Trenitalia could not obtain the corresponding payment
based on procedural grounds. On 21 June 2022, Alstom appealed the decision by filling a recourse to the Supreme
Court to which Trenitalia responded by filing its defense and a counter recourse on 1 August 2022.
In the Pendolino case, the technical expertise report was released, and Alstom has obtained certain corrections
following its challenge on some of the conclusions of the report. The tribunal rendered in March 2019 a decision
acknowledging that a significant part of the delays was not attributable to Alstom and therefore reduced a large portion
of the delay damages claimed by Trenitalia. The tribunal also rejected the reliability penalties claimed by Trenitalia while
accepting certain of its residual damage compensation requests. Finally, the tribunal accepted Alstom’s claims linked
to contract price adjustment formula while rejecting some of its other cost compensation claims. Alstom appealed the
decision on 7 October 2019. On 15 January 2020 Trenitalia filed its defense and counter-appeal. After postponement
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of the initial date the Court of Appeal of Rome fixed the first hearing to 30 September 2022 during which the parties
to the dispute summarized their respective positions. The Court of Appeal of Rome ordered Alstom and Trenitalia to file
(i) their final briefs on 29 November 2022 and (ii) their respective reply to the other party’s final briefs on 19 December
2022. On 10 January 2023, the Court of Appeal of Rome issued its decision that was notified to Alstom on 22 February
2023. The Court of Appeal confirmed the ruling of the first-degree judgment in favour of Alstom in its entirety except
for the recognition of the economic dependence of Alstom vis-à-vis Trenitalia.
In April 2023, Alstom filed a recourse before the Supreme Court against this decision, to which Trenitalia responded by
filing its defense and a counter recourse on 31 May 2023.
On 29 March 2024, Alstom and Trenitalia signed a settlement agreement whereby the parties agreed among other
things, to terminate the Minuetto and the Pendolino cases.
Saturno – Italy
Following a dispute within a consortium involving Alstom’s subsidiary in Italy and three other Italian companies, the
arbitral tribunal constituted to resolve the matter has rendered in August 2016 a decision against Alstom by awarding
€22 million of damage compensation to the other consortium members. Alstom’s subsidiary strongly contests this
decision and considers that it should be able to avoid its enforcement and thus prevent any damage compensation
payment. On 30 November 2016, Alstom’s subsidiary filed a motion in the Court of Appeals of Milan to obtain the
cancellation of the arbitral award. On 1 December 2016, Alstom’s subsidiary filed an ex parte motion for injunctive
relief to obtain the suspension of the arbitral award pending the outcome of the appeal proceedings, which was
temporarily accepted by the Court. After a phase of hearings in contradictory proceedings on the request for suspension
of the arbitral award, the Court of Appeal of Milan decided on 3 March 2017 in favor of Alstom’s subsidiary by
confirming definitively the suspension of this arbitration decision pending the outcome of the proceedings relating to
the cancellation of such decision. The Court of Appeal of Milan ruled on the merits in March 2019 in favour of the
Alstom’s subsidiary and cancelled the arbitration award of August 2016 including the €22 million of damage
compensation. The members of the consortium (excluding Alstom) appealed the decision of the Court of Appeal of
Milan on 19 October 2019.
On 11 December 2023 the Supreme Court issued its decision by: (i) rejecting all claims raised by the Consortium against
Alstom (ii) upholding Alstom’s arguments on the invalidity of the two Consortium’s resolutions that were to be adopted
at unanimity; and (iii) referring the case back to the Court of Appeal in Milan to rule on item ii) and on legal fees.
On 11 March 2024 the consortium filed a writ of summons in reinstatement before the Court of Appeal of Milan and
Alstom did the same. Alstom is asking the court that proceedings shall be limited to (i) the declaration of invalidity of
the consortium’s so-called First Resolution (consortium duration extended to December 2024) and second Resolution
(scope of the consortium expanded) in line with the decision of the Supreme Court; (ii) the liquidation of the legal costs
incurred in the entire proceedings (iii) the declaration of all claims brought by the consortium as “absorbed” by the
Supreme Court decision and therefore not to be adjudged in the reinstatement proceedings. The first hearing before
the Court of Appeal has been scheduled for 25 September 2024.
Caltrain – United States
In 2008, the United States Congress enacted the Rail Safety Improvement Act of 2008 (“RSIA”) which mandated the
implementation of positive train control systems (“PTC”) on, inter alia, any main lines over which intercity or commuter
rail passenger transportation is regularly provided. To comply with RSIA, the Peninsula Corridor Joint Powers Board
(“JPB”) solicited proposals to implement PTC for the commuter rail system that runs from San Francisco to San Jose,
California (“Caltrain”). Parsons Transportation Group (“Parsons”) was the successful bidder and entered into a
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contract with JPB in December of 2011, and subsequently entered into a subcontract with GE Transportation Systems
Global Signaling, LLC (“GE Signaling”) wherein GE Signaling would provide onboard electronics, software and other
components and services related thereto. On November 2, 2015, Alstom Transportation acquired GE Signaling,
including the Caltrain project whereby Alstom Signaling Operations LLC (“Alstom”) became the contracting entity.
On February 20, 2017, JPB terminated Parsons for default based on the alleged significant delay in delivering the
contract. Upon receipt of JPB’s termination notice, Parsons suspended the performance of Alstom under the
subcontract (value $40.2 million (€37.3 million)). Shortly after the termination notice, Parsons filed a lawsuit against
JPB for wrongful termination in the Superior Court of California and JPB counterclaimed for breach of contract. In
December 2017, Alstom was added to the lawsuit by virtue of a crossclaim filed against it by Parsons. In response,
Alstom answered the cross-complaint and filed its own cross-complaint against Parsons. Parsons and JPB subsequently
settled their dispute and Parsons amended its Complaint against Alstom to incorporate JPB’s claims, including
allegations of negligence and negligent misrepresentation.
The trial between Alstom and Parsons began on March 15, 2022, but due to ongoing COVID-19 restrictions in the
California Courts, and a temporary assignment of the Judge, closing arguments did not occur until June 15, 2023. On
November 28, 2023, the Court issued a Proposed Statement of Decision (“PSOD”), which is a preliminary decision,
concluding that Parsons is entitled to payment of $40.1 million (€36.8 million) from Alstom in satisfaction of its claims
brought in the litigation, JPB is entitled to payment of $62.5 million (€57.3 million) from Alstom in satisfaction of its
claims brought in the litigation (and assumed by Parsons); and Alstom is not entitled to any recovery on its causes of
action and claims brought in the litigation. Objections to the PSOD were filed by both Alstom and Parsons. The Court
has scheduled a hearing on May 20, 2024 to hear arguments on one of Alstom’s objections (the remaining objections
submitted by Alstom and Parsons were overruled). Following the hearing, the Court must rule on the outstanding
objection. Alstom has also filed motions pertaining to the JPB/Parsons settlement which the Court must address before
issuing a Final Statement of Decision and Judgment (which may include prejudgment interest) at which point Alstom
will file a Motion for New Trial. Depending on how the Court rules on this motion, a new trial will ensue, or Alstom
will be entitled to file an appeal. To the extent that the aforementioned amounts are included in a Final Statement of
Decision and Judgment issued by the Court, Alstom believes that it has very strong arguments based on well-settled
law in California to overturn a significant portion of such an award in appeal.
South-Africa
On 17 March 2014, Bombardier Transportation South Africa (“BTSA”) entered into an agreement to supply 240 electric
locomotives to Transnet (the “BTSA/Transnet LSA”). The BTSA/Transnet LSA is part of Transnet’s 1064 locomotive
project concluded between Transnet and four Original Equipment Manufacturers, including BTSA.
On 9 March 2021, Transnet and the SIU, alleging unlawfulness and irregularities in the procurement process and
subsequent award of the 1064 locomotive project, launched review application proceedings in the High Court of South
Africa for, amongst other things, the review and setting aside of the respective LSAs concluded with the four Original
Equipment Manufacturers including BTSA. The relief sought by Transnet as it relates to BTSA includes: (i) the review
and setting aside of the BTSA/Transnet LSA; (ii) that Transnet be entitled to retain the locomotives delivered by BTSA;
and (iii) that BTSA be ordered to make restitution to Transnet of the advance payments and profit and/or excess profit
earned in the supply of the locomotives.
Following commercial negotiations between Alstom and Transnet, the parties signed a settlement agreement in August
2023 to which the SIU is a party. The parties are in the process of implementing the settlement agreement, which has
required the independent verification of methodologies used to calculate certain commercial terms agreed in that
settlement agreement. On the conclusion of that verification process, the parties (Transnet, BTSA and the SIU), will
jointly approach the High Court of South Africa to: make the settlement agreement an Order of Court; confirm
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Transnet’s retention of the locomotives supplied to it by BTSA in terms of the Transnet LSA; and confirm that BTSA can
continue to supply and deliver locomotives to Transnet in accordance with the Transnet LSA.
These matters are also a subject of an investigation by the DOJ and the NPA as referenced above.
Acquisition of Bombardier Transportation – Arbitration Proceedings
With respect to the acquisition of Bombardier Transportation (“BT”), completed on 29 January 2021, Alstom identified
various breaches by Bombardier Inc. (“BI”) of its obligations as Seller under the Memorandum of Understanding dated
17 February 2020 (amended and restated on 30 March 2020) and the Sale and Purchase Agreement dated 26
September 2020 (amended on 28 January 2021).
On 15 April 2022, Alstom filed a request for arbitration against BI with the International Chamber of Commerce (in
accordance with the Parties’ agreements). Alstom’s claims against BI concern breaches of the interim covenants in
force prior to completion, breaches of warranty, and claims related to the calculation of the final purchase price.
Notably, Alstom contends that BI’s actions prior to completion wrongfully increased the purchase price paid by Alstom
and that BI’s breaches of various obligations caused further losses to Alstom. On 24 June 2022, BI filed its answer to
the request for arbitration, denying Alstom’s claims and advancing counterclaims. As to the counterclaims specifically,
BI alleges that Alstom attempted to minimise the price it would have to pay to BI at completion in breach of contractual
and non-contractual obligations, which is denied by Alstom.
The arbitral tribunal was constituted by the International Chamber of Commerce on 26 August 2022. In October 2022,
the tribunal established a procedural timetable. On 3 March 2023, Alstom filed its full Statement of Claim. On 27
October 2023, BI filed its full Statement of Defence and Counterclaim. Alstom has since filed its Reply and Defence to
Counterclaim on 29 March 2024, which further addresses Alstom’s claims, and its defences to BI’s counterclaims. The
parties will file additional reply submissions during mid-2024. Following this, the arbitration will proceed to phases for
document production and the filing of further evidence, which will take place during late 2024 and 2025. An evidentiary
hearing is scheduled for late 2025.
Sale of Alstom’s Energy Businesses in November 2015
Finally, it shall be noted that, by taking over Alstom’s Energy Businesses in November 2015, General Electric undertook
to assume all risks and liabilities exclusively or predominantly associated with said businesses and in a symmetrical
way, Alstom undertook to keep all risks and liabilities associated with the non-transferred business. Cross-
indemnification for a duration of 30 years and asset reallocation (“wrong pocket”) mechanisms have been established
to ensure that, on the one hand, assets and liabilities associated with the Energy businesses being sold are indeed
transferred to General Electric and on the other hand, assets and liabilities not associated with such businesses are
borne by Alstom. As a result, the consequences of litigation matters that were on-going at the time of the sale and
associated with these transferred activities are taken over by General Electric. Indemnity provisions protect Alstom in
case of third-party claims directed at Alstom and relating to the transferred activities. For this reason and since Alstom
no longer manages these litigation matters, Alstom is ceasing to include them in this section.
There are no other governmental, legal or arbitration proceedings that are pending or (to the Group’s knowledge)
threatened, that could have, or during the last twelve months have had, a significant impact on the financial situation
or profitability of the Group.
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K. OTHER NOTES
NOTE 34. INDEPENDENT AUDITORS’ FEES
Fees due to auditors and members of their networks in respect of years ended 31 March 2024 and 31 March 2023
were as follows:
Year ended at 31 March 2024
Year ended at 31 March 2023
Mazars
PricewaterhouseCoopers
Mazars
PricewaterhouseCoopers
(in € million)
Amount
%
Amount
%
Amount
%
Amount
%
Independent Auditors' diligence, certification,
review of individual and consolidated accounts
5.7
80%
5.5
86%
5.3
73%
5.4
84%
ALSTOM SA
0.8
11%
0.9
14%
0.8
10%
0.9
14%
Controlled entities
4.9
69%
4.6
72%
4.5
63%
4.5
70%
Services other than audit of statutory and
consolidated financial statements (SACC) (*)
1.4
20%
0.9
14%
1.9
27%
1.0
16%
TOTAL
7.2
100%
6.4
100%
7.2
100%
6.4
100%
(*) Other services mainly include services rendered in connection with agreed-upon procedures, tax compliances services, technical consultations
on accounting, tax and regulatory matters.
NOTE 35. RELATED PARTIES
The Group has identified the following related parties:
• Shareholders of the Group
• Associates & joint ventures
• Key management personnel
• Board Members
35.1. Shareholders of the Group
The main shareholders of Alstom are:
• The “Caisse de Dépôt et Placement du Québec” (CDPQ), a major Canadian pension fund, holding 17.39% of
Alstom’s share capital;
• Causeway Capital Management, a majority employee-owned investment management firm specializing in equity
strategies, holding 9.31% of Alstom’s share capital;
• Bpifrance ”Banque publique d'investissement”, a French public sector investment bank, holding 7.51% of Alstom’s
share capital;
• BlackRock, a global asset manager and technology provider, holding 6.44% of Alstom’s share capital.
The relations with the shareholders of the Group are subject to normal market terms and conditions. Those operating
flows are not material at Group’s level.
35.2. Associates & joint ventures
Related party transactions are also transactions with companies over which Alstom exercises significant influence or
joint ventures over which Alstom exercises joint control. Those transactions with related parties are undertaken at
market prices and are considered as not material regarding the overall operational flows (sales and purchases) and the
balance sheet positions of the Group (trade receivables and payables).
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35.3. Key management personnel
The Group considers that key management personnel as defined by IAS 24 are the members of the Leadership Team.
Year ended
(in € thousand)
At 31 March
2024
At 31 March
2023
Short-term benefits
11,468
14,695
Fixed gross salaries (*)
7,160
7,609
Variable gross salaries
3,322
5,576
Exceptional amounts
987
1,510
Post-employment benefits
1,308
1,159
Post-employment defined benefit plans
220
67
Post-employment defined contribution plans (**)
1,054
1,029
Other Long Term benefits
34
63
Other benefits
4,287
5,303
Benefits-in-kind
1,177
1,067
Employer social contributions
3,110
4,236
Share-based payments
171
7,820
TOTAL
17,235
28,977
(*) The fixed gross salaries variation results from the reduction in the number of members in the Leadership team.
(**) Including amount paid for CEO under art 82 DC plan corresponding to 1/3 of compensation set following loss of rights after closure of Art 39
DB plan in 2022/23.
35.4. Board Members
There is no transaction with Board Members.
NOTE 36. SUBSEQUENT EVENTS
As announced in November 2023 and reiterated in January 2024, Alstom’s Board of Directors is committed to a
conservative financial policy and to protect the Group’s Investment Grade rating, in particular through a ca. €2 billion
inorganic deleveraging plan.
This plan and its execution, which have been unanimously approved by Alstom’s Board of Directors on May 7, 2024,
has the following components:
• Divestments for ca. €700 million:
- Sale of TMH for €75 million realized in January 2024;
- The announced sale of conventional signalling business in North America to Knorr-Bremse AG, which will
generate proceeds of ca. €630 million upon closing expected during Summer 2024.
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• The issuance of hybrid bonds with 50% equity content for Moody’s (*) in an amount of ca. €750 million to be
executed no later than September 2024 subject to market conditions and to AMF approval;
• A capital increase with preferential subscription rights in an amount of ca. €1 billion to be executed no later
than September 2024 subject to market conditions and to AMF approval.
The ca. €2.4 billion proceeds correspond to ca. €2 billion of deleveraging, mainly due to the hybrid bond’s 50% Moody’s
debt content.
Each of CDPQ (**) and Bpifrance, holding respectively 17.4% and 7.5% of Alstom’s capital, has declared to the Company
its intention to subscribe for its pro-rata share of the capital increase.
In addition, Alstom has entered into a standby underwriting commitment with BNP Paribas, Crédit Agricole Corporate
and Investment Bank, J.P. Morgan and Société Générale, acting as Joint Global Coordinators, pursuant to which they
have undertaken to underwrite the remainder of the capital raise (i.e. ca. €750 million), subject to the satisfaction of
customary conditions precedent.
Ca. €1.2 billion of the proceeds of asset disposals and of the capital markets transactions will be used to repay financial
debt by September 2024:
• repayment of Neu CP by €1,033 million;
• repayment of RCF drawings by €175 million.
The remainder of the proceeds will be invested in highly liquid short-term investment (cash equivalent treatment) and
will be earmarked for gross debt reduction at maturity.
Alstom Baa3 long-term issuer rating is reaffirmed, and the outlook will be changed to stable upon successful closing
of the hybrid bond issuance and the rights issue.
Alstom will terminate its €2.25 billion credit facility agreement following execution of the deleveraging plan.
(*) 100% equity content as per IFRS accounting standards.
(**) Caisse de dépôt et placement du Québec.
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NOTE 37. SCOPE OF CONSOLIDATION
PARENT COMPANY
Country
Ownership %
Consolidation Method
ALSTOM SA
France
-
Parent Company
Companies
ALSTOM Algérie "Société par Actions"
Algeria
100
Full consolidation
ALSTOM Grid Algérie SPA
Algeria
100
Full consolidation
ALSTOM Argentina S.A.
Argentina
100
Full consolidation
ALSTOM Transport (Customer Support) Australia Pty Limited
Australia
100
Full consolidation
ALSTOM Transport (V/Line) Australia Pty Limited
Australia
100
Full consolidation
ALSTOM Transport Australia Holdings Pty Limited
Australia
100
Full consolidation
ALSTOM Transport Australia Pty Limited
Australia
100
Full consolidation
NOMAD DIGITAL PTY LTD
Australia
100
Full consolidation
ALSTOM Transport Austria GmbH
Austria
100
Full consolidation
ALSTOM Transport Azerbaijan LLC
Azerbaijan
100
Full consolidation
ALSTOM Belgium SA
Belgium
100
Full consolidation
NOMAD DIGITAL BELGIUM
Belgium
100
Full consolidation
ALSTOM Brasil Energia e Transporte Ltda
Brazil
100
Full consolidation
ALSTOM Holdings LP
Canada
100
Full consolidation
ALSTOM Investments GP Inc.
Canada
100
Full consolidation
ALSTOM Investment GP Manitoba Inc.
Canada
100
Full consolidation
ALSTOM Transport Canada Inc.
Canada
100
Full consolidation
ALSTOM Transport Canada Participation Inc.
Canada
100
Full consolidation
ALSTOM Western Pacific Enterprises Electrical Installation
General Partnership
Canada
51
Full consolidation
ALSTOM Chile S.A.
Chile
100
Full consolidation
ALSTOM Investment Company Limited
China
100
Full consolidation
ALSTOM Investment Management and Consulting (Beijing)
Co., Ltd.
China
100
Full consolidation
ALSTOM Transportation (Engineering Service) Beijing Co.,
Ltd.
China
100
Full consolidation
ALSTOM Transportation Railway Equipment (Qingdao) Co.,
Ltd.
China
100
Full consolidation
BOMBARDIER RAILWAY TRANSPORTATION EQUIPMENT
(SHANGHAI) CO., LTD.
China
100
Full consolidation
BOMBARDIER TRANSPORTATION CONSULTING
(SHANGHAI) CO., LTD.
China
100
Full consolidation
Chengdu ALSTOM Transport Electrical Equipment Co., Ltd.
(CATEE)
China
60
Full consolidation
TRANSLOHR INDUSTRIAL (TIANJIN) CO. LTD
China
100
Full consolidation
SHANGHAI ALSTOM Transport Electrical Equipment
Company Ltd
China
60
Full consolidation
ALSTOM Qingdao Railway Equipment Co., Ltd.
China
51
Full consolidation
XI'AN ALSTOM YONGJI ELECTRIC EQUIPMENT CO., LTD
China
51
Full consolidation
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ALSTOM Hong Kong Ltd
China
100
Full consolidation
ALSTOM Transportation China Limited
China
100
Full consolidation
ALSTOM Transportation Colombia S.A.S.
Colombia
100
Full consolidation
ALSTOM Czech Republic a.s.
Czech Republic
98
Full consolidation
ALSTOM Transport Danmark A/S
Denmark
100
Full consolidation
ALSTOM Transport Danmark Hvidovre A/S
Denmark
100
Full consolidation
ALSTOM Transport Danmark NT Maintenance ApS
Denmark
100
Full consolidation
NOMAD DIGITAL (DENMARK) APS
Denmark
100
Full consolidation
NOMAD DIGITAL APS
Denmark
100
Full consolidation
ALSTOM Proyectos de Transporte, S.R.L.
Dominican Republic
100
Full consolidation
AREVA INTERNATIONAL EGYPT FOR ELECTRICITY
TRANSMISSION & DISTRIBUTION
Egypt
100
Full consolidation
ALSTOM Egypt for Transport Projects SAE
Egypt
99
Full consolidation
BOMBARDIER TRANSPORTATION ETHIOPIA PLC
Ethiopia
100
Full consolidation
ALSTOM Transport Finland Oy
Finland
100
Full consolidation
ALSTOM APTIS
France
100
Full consolidation
ALSTOM Crespin SAS
France
100
Full consolidation
ALSTOM Executive Management
France
100
Full consolidation
ALSTOM Flertex SAS
France
100
Full consolidation
ALSTOM Holdings
France
100
Full consolidation
ALSTOM Hydrogène SAS
France
100
Full consolidation
ALSTOM Ibre
France
100
Full consolidation
ALSTOM Kleber Sixteen
France
100
Full consolidation
ALSTOM Leroux Naval
France
100
Full consolidation
ALSTOM Network Transport
France
100
Full consolidation
ALSTOM Omega 1
France
100
Full consolidation
SOCIETE DE MAINTENANCE DU TUNNEL LYON-TURIN
France
100
Full consolidation
ALSTOM Shipworks
France
100
Full consolidation
ALSTOM Transport SA
France
100
Full consolidation
ETOILE KLEBER
France
100
Full consolidation
LORELEC
France
100
Full consolidation
NOMAD DIGITAL FRANCE
France
100
Full consolidation
STATIONONE
France
100
Full consolidation
CENTRE D'ESSAIS FERROVIAIRES
France
96
Full consolidation
INTERINFRA (COMPAGNIE INTERNATIONALE POUR LE
DEVELOPPEMENT D'INFRASTRUCTURES)
France
50
Full consolidation
ALSTOM Bahntechnologie Holding Germany GmbH
Germany
100
Full consolidation
ALSTOM Drives GmbH
Germany
100
Full consolidation
ALSTOM Lokomotiven Service GmbH
Germany
100
Full consolidation
ALSTOM Signal GmbH
Germany
100
Full consolidation
ALSTOM Transport Deutschland GmbH
Germany
100
Full consolidation
ALSTOM Transportation Germany GmbH
Germany
100
Full consolidation
NOMAD DIGITAL GMBH
Germany
100
Full consolidation
VGT VORBEREITUNGSGESELLSCHAFT
TRANSPORTTECHNIK GMBH
Germany
100
Full consolidation
ALSTOM Reuschling Service GmbH & Co. KG
Germany
100
Full consolidation
WLH BETEILIGUNGS-GMBH
Germany
100
Full consolidation
J&P AVAX SA - ETETH SA - ALSTOM TRANSPORT SA
Greece
34
Full consolidation
86/90
ALSTOM Hungary Kft.
Hungary
100
Full consolidation
ALSTOM Transport India Limited
India
100
Full consolidation
NOMAD DIGITAL (INDIA) PRIVATE LIMITED
India
70
Full consolidation
TWENTY ONE NET (INDIA) PRIVATE LTD
India
100
Full consolidation
MADHEPURA ELECTRIC LOCOMOTIVE PRIVATE LIMITED
India
74
Full consolidation
PT ALSTOM Transport Indonesia
Indonesia
67
Full consolidation
ALSTOM Khadamat S.A.
Iran
100
Full consolidation
ALSTOM Transport Ireland Ltd
Ireland
100
Full consolidation
ALSTOM Israel Ltd.
Israel
100
Full consolidation
ALSTOM Ferroviaria S.p.A.
Italy
100
Full consolidation
ALSTOM Services Italia S.p.A.
Italy
100
Full consolidation
NOMAD DIGITAL ITALIA S.R.L.
Italy
100
Full consolidation
ALSTOM Métro d'Abidjan
Ivory Coast
100
Full consolidation
ALSTOM Kazakhstan LLP
Kazakhstan
100
Full consolidation
EKZ Service Limited Liability Partnership
Kazakhstan
100
Full consolidation
ELECTROVOZ KURASTYRU ZAUYTY LLP
Kazakhstan
100
Full consolidation
ALSTOM Baltics SIA
Latvia
100
Full consolidation
ALSTOM Transport Systems (Malaysia) Sdn. Bhd.
Malaysia
100
Full consolidation
ALSTOM Holding Mauritius Ltd.
Mauritius
100
Full consolidation
ALSTOM Mauritius Ltd.
Mauritius
100
Full consolidation
ALSTOM Ferroviaria Mexico, S.A. de C.V.
Mexico
100
Full consolidation
BT ENSAMBLES MÉXICO, S. DE R.L. DE C.V.
Mexico
100
Full consolidation
BT MÉXICO CONTROLADORA , S. DE R.L. DE C.V.
Mexico
100
Full consolidation
BT PERSONAL MÉXICO, S. DE R.L. DE C.V.
Mexico
100
Full consolidation
ALSTOM Railways Maroc
Morocco
100
Full consolidation
BOMBARDIER TRANSPORT MAROC S.A.S
Morocco
100
Full consolidation
ALSTOM Global Holding SE
Netherlands
100
Full consolidation
ALSTOM Netherlands B.V.
Netherlands
100
Full consolidation
ALSTOM Traction B.V.
Netherlands
100
Full consolidation
ALSTOM Vastgoed B.V.
Netherlands
100
Full consolidation
NOMAD DIGITAL B.V.
Netherlands
100
Full consolidation
ALSTOM Rail Transportation New Zealand Limited
New Zealand
100
Full consolidation
AT NIGERIA LIMITED
Nigeria
100
Full consolidation
ALSTOM Enio ANS
Norway
100
Full consolidation
ALSTOM Transport Norway AS
Norway
100
Full consolidation
ALSTOM Panama, S.A.
Panama
100
Full consolidation
ALSTOM Transport Peru S.A.
Peru
100
Full consolidation
ALSTOM (SHARED SERVICES) PHILIPPINES, INC.
Philippines
100
Full consolidation
ALSTOM Transport Construction Philippines, Inc
Philippines
100
Full consolidation
BOMBARDIER TRANSPORTATION PHILIPPINES, INC.
Philippines
100
Full consolidation
ALSTOM Polska Spolka Akcyjna
Poland
100
Full consolidation
ALSTOM Ferroviária Portugal, S.A.
Portugal
100
Full consolidation
NOMAD TECH, LDA.
Portugal
51
Full consolidation
ALSTOM GSS Romania S.R.L.
Romania
100
Full consolidation
ALSTOM Transport SA.
Romania
93
Full consolidation
ALSTOM Transport Rus LLC
Russian Federation
100
Full consolidation
RESOURCE TRANSPORTATION LLC
Russian Federation
100
Full consolidation
ALSTOM Arabia Transportation Limited
Saudi Arabia
100
Full consolidation
87/90
ALSTOM Transport Middle East and North Africa Regional
Headquarter
Saudi Arabia
100
Full consolidation
ALSTOM Transport (Holdings) Systems Singapore Pte. Ltd.
Singapore
100
Full consolidation
ALSTOM Transport (S) Pte Ltd
Singapore
100
Full consolidation
ALSTOM Transport Systems (Singapore) Pte. Ltd.
Singapore
100
Full consolidation
ALSTOM Southern Africa Holdings (Pty) Ltd
South Africa
100
Full consolidation
ALSTOM Transport Holdings SA (Pty) Ltd
South Africa
100
Full consolidation
ALSTOM Ubunye (Pty) Ltd
South Africa
100
Full consolidation
BOMBELA ELECTRICAL AND MECHANICAL WORKS (PTY)
LTD.
South Africa
90
Full consolidation
BOMBELA MAINTENANCE (PTY) LTD.
South Africa
90
Full consolidation
ALSTOM Rolling Stock SA Pty Ltd
South Africa
74
Full consolidation
GIBELA RAIL TRANSPORT CONSORTIUM (PTY) LTD
South Africa
70
Full consolidation
ALSTOM Korea Transport Ltd
South Korea
100
Full consolidation
ALSTOM ATEINSA, SA
Spain
100
Full consolidation
ALSTOM Movilidad, S.L.
Spain
100
Full consolidation
ALSTOM Transporte, S.A.
Spain
100
Full consolidation
ALSTOM Ametsis, S.L.
Spain
100
Full consolidation
ALSTOM Holding Sweden AB
Sweden
100
Full consolidation
ALSTOM Rail Sweden AB
Sweden
100
Full consolidation
ALSTOM Transport AB
Sweden
100
Full consolidation
ALSTOM Transport Information Systems AB
Sweden
100
Full consolidation
ALSTOM Transportation (Signal) Sweden AB
Sweden
100
Full consolidation
ALSTOM Transportation (Signal) Sweden HB
Sweden
67
Full consolidation
ALSTOM Network Schweiz AG, ALSTOM Network
Switzerland Ltd, ALSTOM Network Suisse SA
Switzerland
100
Full consolidation
ALSTOM Schienenfahrzeuge AG
Switzerland
100
Full consolidation
ALSTOM Schweiz AG, ALSTOM Suisse SA, ALSTOM
Switzerland Ltd.
Switzerland
100
Full consolidation
ALSTOM Transport Solutions (Taiwan) Ltd.
Taiwan
100
Full consolidation
ALSTOM (Thailand) Ltd.
Thailand
100
Full consolidation
ALSTOM Holdings (Thailand) Ltd.
Thailand
100
Full consolidation
ALSTOM Transport (Thailand) Co., Ltd.
Thailand
100
Full consolidation
ALSTOM Transport Systems (Thailand) Ltd
Thailand
100
Full consolidation
ALSTOM T&T Ltd
Trinidad and Tobago
100
Full consolidation
ALSTOM Ulasim Anonim Sirketi
Turkey
100
Full consolidation
ALSTOM Signalling, Limited Liability Company
Ukraine
100
Full consolidation
ALSTOM (Investment) UK Limited
United Kingdom
100
Full consolidation
ALSTOM (Litchurch) Limited
United Kingdom
100
Full consolidation
ALSTOM Academy for Rail
United Kingdom
100
Full consolidation
ALSTOM Electronics Limited
United Kingdom
100
Full consolidation
ALSTOM Engineering and Services Limited
United Kingdom
100
Full consolidation
ALSTOM Network UK Ltd
United Kingdom
100
Full consolidation
ALSTOM NL Service Provision Ltd.
United Kingdom
100
Full consolidation
ALSTOM Product and Services Limited
United Kingdom
100
Full consolidation
ALSTOM Transport Service Ltd
United Kingdom
100
Full consolidation
ALSTOM Transport UK (Holdings) Ltd
United Kingdom
100
Full consolidation
ALSTOM Transport UK Limited
United Kingdom
100
Full consolidation
88/90
ALSTOM Transportation (Global Holding) UK Limited
United Kingdom
100
Full consolidation
ALSTOM UK CIF Trustee Limited
United Kingdom
100
Full consolidation
ALSTOM UK Pension Trustee Limited
United Kingdom
100
Full consolidation
ALSTOM UK VP Pension Trustee Limited
United Kingdom
100
Full consolidation
CROSSFLEET LIMITED
United Kingdom
100
Full consolidation
INFRASIG LTD.
United Kingdom
100
Full consolidation
NOMAD DIGITAL LIMITED
United Kingdom
100
Full consolidation
NOMAD HOLDINGS LIMITED
United Kingdom
100
Full consolidation
PRORAIL LIMITED
United Kingdom
100
Full consolidation
SOUTH EASTERN TRAIN MAINTENANCE LTD.
United Kingdom
100
Full consolidation
WEST COAST SERVICE PROVISION LIMITED
United Kingdom
100
Full consolidation
WEST COAST TRAINCARE LIMITED
United Kingdom
100
Full consolidation
NOMAD DIGITAL (INDIA) LIMITED
United Kingdom
70
Full consolidation
ALSTOM Signaling Inc.
United States of America
100
Full consolidation
ALSTOM Signaling Operation, LLC
United States of America
100
Full consolidation
ALSTOM Transport Holding US Inc.
United States of America
100
Full consolidation
ALSTOM Transport Services Inc.
United States of America
100
Full consolidation
ALSTOM Transport USA Inc.
United States of America
100
Full consolidation
ALSTOM Transportation Inc.
United States of America
100
Full consolidation
AUBURN TECHNOLOGY, INC.
United States of America
100
Full consolidation
B&C TRANSIT INC.
United States of America
100
Full consolidation
NOMAD DIGITAL, INC
United States of America
100
Full consolidation
SOUTHERN NEW JERSEY RAIL GROUP L.L.C.
United States of America
100
Full consolidation
ALSKAW LLC
United States of America
100
Full consolidation
ALSTOM Venezuela, S.A.
Venezuela
100
Full consolidation
ALSTOM Transport Vietnam Ltd
Vietnam
100
Full consolidation
ONxpress Transportation Partners Inc.
Canada
25
Joint Operation
GREEN LINE MAINTAINER LTD
Israel
20
Joint Operation
HN - LIGHT RAIL LINE LTD
Israel
20
Joint Operation
JCL - JERUSALEM CITY LIGHTRAIL LTD
Israel
20
Joint Operation
TMT - TLV METROPOLITAN TRAMWAY LTD
Israel
20
Joint Operation
BTREN MANTENIMIENTO FERROVIARIO S.A.
Spain
51
Joint Operation
IRVIA MANTENIMIENTO FERROVIARIO, S.A.
Spain
51
Joint Operation
THE ATC JOINT VENTURE
United Kingdom
38
Joint Operation
CITAL
Algeria
49
Equity Method
EDI RAIL - ALSTOM Transport Pty Limited
Australia
50
Equity Method
NGR HOLDING COMPANY PTY LTD.
Australia
10
Equity Method
EDI RAIL - ALSTOM Transport (Maintenance) Pty Limited
Australia
50
Equity Method
NGR PROJECT COMPANY PTY LTD.
Australia
10
Equity Method
TRANSED O&M PARTNERS GENERAL PARTNERSHIP
Canada
60
Equity Method
GROUPE PMM OPERATIONS AND MAINTENANCE G.P. /
GROUPE PMM OPÉRATIONS ET MAINTENANCE S.E.N.C.
Canada
50
Equity Method
TRANSED PARTNERS GENERAL PARTNERSHIP
Canada
10
Equity Method
ALSANEO L7 SPA
Chile
50
Equity Method
ALSTOM Sifang (Qingdao) Transportation Ltd.
China
50
Equity Method
89/90
BOMBARDIER NUG SIGNALLING SOLUTIONS COMPANY
LIMITED
China
50
Equity Method
CHANGCHUN CHANGKE ALSTOM RAILWAY VEHICLES
COMPANY LTD.
China
50
Equity Method
CRRC PUZHEN ALSTOM TRANSPORTATION SYSTEMS
LIMITED
China
50
Equity Method
Jiangsu ALSTOM NUG Propulsion System Co Ltd.
China
50
Equity Method
SHENTONG ALSTOM (SHANGHAI) RAIL TRANSIT VEHICLE
COMPANY LIMITED
China
50
Equity Method
CASCO SIGNAL LTD
China
49
Equity Method
SHANGHAI ALSTOM Transport Company Limited
China
40
Equity Method
GUANGXI LIUZHOU PUZHEN ALSTOM TRANSPORTATION
SYSTEM CO., LTD.
China
50
Equity Method
GUANGZHOU CHANGKE ALSTOM RAIL TRANSIT
EQUIPMENT COMPANY LTD
China
50
Equity Method
SPEEDINNOV
France
76
Equity Method
ORA L15
France
20
Equity Method
LLP JV KAZELEKTROPRIVOD
Kazakhstan
50
Equity Method
MALOCO GIE
Morocco
70
Equity Method
RAILCOMP BV
Netherlands
50
Equity Method
TMH-ALSTOM BV
Netherlands
50
Equity Method
RAIL ENGINEERING SP. Z O.O.
Poland
60
Equity Method
RAILCOMP LLC
Russian Federation
50
Equity Method
TRAMRUS LLC
Russian Federation
50
Equity Method
TRTRANS LLC
Russian Federation
50
Equity Method
ISITHIMELA RAIL SERVICES (PTY) LTD.
South Africa
50
Equity Method
BOMBELA TKC (PROPRIETARY) LIMITED
South Africa
25
Equity Method
FIRST LOCOMOTIVE HOLDING AG in Liquidation
Switzerland
15
Equity Method
ABC ELECTRIFICATION LTD
United Kingdom
33
Equity Method
LAX INTEGRATED EXPRESS SOLUTIONS HOLDCO, LLC
United States of America
10
Equity Method
LAX INTEGRATED EXPRESS SOLUTIONS, LLC
United States of America
10
Equity Method
V/LINE MAINTENANCE PTY LTD
Australia
100
Non consolidated investment
RTA RAIL TEC ARSENAL FAHRZEUGVERSUCHSANLAGE
GMBH
Austria
44
Non consolidated investment
SOCIÉTÉ CONCESSIONNAIRE DU TRANSPORT SUR VOIE
RÉSERVÉE DE L'AGGLOMÉRATION CAENNAISE (S.T.V.R)
S.A
France
39
Non consolidated investment
RESTAURINTER
France
35
Non consolidated investment
FRAMECA - FRANCE METRO CARACAS
France
26
Non consolidated investment
MOBILITE AGGLOMERATION REMOISE SAS
France
17
Non consolidated investment
CADEMCE SAS (en liquidation judiciaire)
France
16
Non consolidated investment
EASYMILE
France
13
Non consolidated investment
OC'VIA CONSTRUCTION
France
12
Non consolidated investment
OC'VIA MAINTENANCE
France
12
Non consolidated investment
4iTEC 4.0
France
11
Non consolidated investment
AIRE URBAINE INVESTISSEMENT
France
4
Non consolidated investment
CAMPUS CYBER
France
3
Non consolidated investment
SUPERGRID INSTITUTE SAS
France
3
Non consolidated investment
90/90
COMPAGNIE INTERNATIONALE DE MAINTENANCE - C.I.M.
France
1
Non consolidated investment
ESPACE DOMICILE SA HABITAT LOYER MODERE
France
1
Non consolidated investment
SOCIÉTÉ D'ÉCONOMIE MIXTE LOCALE LE PHÉNIX
THÉÂTRE DE VALENCIENNES
France
1
Non consolidated investment
SOCIETE IMMOBILIERE DE VIERZON
France
1
Non consolidated investment
VALUTEC S.A.
France
1
Non consolidated investment
IFB INSTITUT FUR BAHNTECHNIK GMBH
Germany
7
Non consolidated investment
PARS SWITCH
Iran
1
Non consolidated investment
CYLUS CYBER SECURITY LTD.
Israel
9
Non consolidated investment
METRO 5 SPA
Italy
9
Non consolidated investment
TRAM DI FIRENZE S.p.A.
Italy
9
Non consolidated investment
CRIT SRL
Italy
1
Non consolidated investment
CONSORZIO ELIS PER LA FORMAZIONE PROFESSIONALE
SUPERIORE
Italy
0
Non consolidated investment
SUBURBANO EXPRESS, S.A. DE C.V.
Mexico
11
Non consolidated investment
KRAKOWSKIE ZAKLADY AUTOMATYKI S. A.
Poland
12
Non consolidated investment
KOLMEX SA
Poland
2
Non consolidated investment
IDEON S.A.
Poland
0
Non consolidated investment
INWESTSTAR S.A.
Poland
0
Non consolidated investment
NORMETRO ACE AGRUPAMENTO DO METROPOLITANO
DO PORTO
Portugal
25
Non consolidated investment
FIRST LOCOMOTIVE COMPANY LLC
Russian Federation
15
Non consolidated investment
TRAMVIA METROPOLITA, S.A.
Spain
24
Non consolidated investment
TRAMVIA METROPOLITA DEL BESOS SA
Spain
21
Non consolidated investment
ALBALI SEÑALIZACIÓN, S.A.
Spain
12
Non consolidated investment
TRAMLINK NOTTINGHAM (HOLDINGS) LIMITED
United Kingdom
13
Non consolidated investment
WHEREISMYTRANSPORT LIMITED
United Kingdom
3
Non consolidated investment
ARGENTINE CLUB LIMITED
United Kingdom
1
Non consolidated investment
MASSACHUSETTS BAY COMMUTER RAILROAD COMPANY,
LLC
United States of America
20
Non consolidated investment
