Registration Document BOUYGUES

2
Business activities
and CSR
Alstom
Intensive innovation drive
Alstom has more than
doubled its spending on
research and development
over six years, from
€333 million in 2004/05
to €703 million in 2010/11.
As a result of this focus
on innovation, a number of
decisive milestones were
passed in new product
launches in 2011. To give
just a few examples,
Thermal launched the
latest generation of GT24
and GT26 gas turbines for
50 Hz and 60 Hz markets,
while Renewables unveiled
the 6 MW Haliade turbine
for offshore wind farms.
Alstom Grid has developed
a solution for the remote
connection of wind farms
to the grid, and Transport
has designed a compact
tramway for smaller cities
and an electric locomotive
that meets the specific
needs of the Russian
market.
Alstom Grid offers
solutions to make
power networks smarter
partnership to thermal power. The agreement
followed an initial agreement for hydro power
concluded in October 2010. Alstom Grid and KER,
a Russian electrical engineering contractor, concluded
a final agreement to carry out high voltage
direct current (HVDC) projects in Russia. Alstom
and Transmashholding (TMH) signed a memorandum
of understanding with the city of Saint
Petersburg establishing a cooperation programme
for the development of a modern tramway network.
In November 2011, Alstom opened a wind turbine
plant in Brazil, its first in South America. Located
in the industrial complex of Camaçari, in the State
of Bahia, its annual output will be equipment with
a generation capacity of 300 MW.
In January 2012, Alstom and SSE Renewables,
Scotland's leading marine energy producer, concluded
a joint venture agreement to develop the
world's largest wave farm off the coast of Orkney,
in Scotland, with a planned output capacity of
200 MW.
FY2010/11 RESULTS
Alstom's operating results were in line with expectations,
while order intakes recovered significantly
in the second half of FY2010/11.
The operating margin stood at 7.5%, compared
with 9.1% in the previous financial year, yielding
an operating profit of €1,570 million, down 12%.
Sales amounted to €20.9 billion, 6% higher than
in the previous period. Net profit attributable to the
Group amounted to €462 million, compared with
€1,217 million in FY2010/11.
FIRST-HALF FY2011/12
RESULTS
Alstom recorded a satisfactory level of orders in
the first half of FY2011/12 (1 April to 30 September
2011). At €10.2 billion, 45% up on the same
period in the previous financial year, the order
intake confirmed the recovery in the second half
of FY2010/11.
Half-year sales amounted to €9.4 billion, 10% down
on the corresponding period in the previous financial
year, reflecting the low level of orders during
the financial crisis. The decline in sales impacted
operating profit, which fell to €627 million. The
operating margin was 6.7%, compared with 7.3% in
the first half of FY2010/11. Net profit fell 9% to €363
million. Alstom reported negative cash flow of €914
million due to low sales and exceptional items.
ALSTOM SHARE PRICE
The Alstom share price stood at €23.43 at the close
on 30 December 2011.
OUTLOOK
Alstom remains in sound financial health. The company
is adapting in response to changing markets.
With the assurance of a substantial order book,
Alstom has confirmed that its operating margin
in FY2011/12 is likely to be between 7% and 8%.
BOUYGUES • 2011 Registration Document • BUSINESS ACTIVITIES AND CSR • 133