Bombardier integration continues, AG instructions and reports

At the Alstom AGM held in Paris near the Champs Elysées, Investir collected 140 seats for 36,841 shares (plus 9 seats for 1,488 shares in the event of a surprise agenda-only decision).

The meeting was opened by CEO Henri Poupart-Lafarge. The cashiers are Caisse des dépôts du Québec (65.4 million shares) and Amundi (13.8 million). The preliminary quorum is 68% of the capital. There is a bailiff in the room.

Henri Poupart-Lagarge takes the floor. He says rail is by far the most sustainable mode of transport in terms of energy consumption, safety and land use. The market is well oriented towards urbanization, for example in India, where there are subways in several cities. The rolling stock market share is 38% excluding China. This activity provides 56% of the turnover. The rest falls on services related to the installed base, alarms and turnkey systems. The order book reached a record 81 billion euros after 19.3 billion orders during the financial year ended at the end of March. We are talking about replacing trains that are still functioning with diesel, hybrid, battery, hydrogen. Experiments are being carried out to develop autonomous trains, as is already being done for the metro, to make the movement smoother. The automation of production sites is also progressing. There is also an extensive program to develop a system that allows engineers around the world to have access to all the data available in the materials team.

The leader also explains targets to reduce production-related CO2 emissions (230 kilotons), but above all emissions over the life of the trains (32,000). This includes, for example, regeneration of braking energy.

Bombardier integration

Henri Poupart-Lafarge also talks about a very intense and successful first year of Bombardier’s integration, with synergies of €102 million. He recalls saying after the acquisition that it would take 3 or 4 years to catch up with the group. IT systems and products must converge. As for inflation, it is specified that two-thirds of the glass is indexed.

A word from CFO Laurent Martinez. The net loss of EUR 576 million includes the depreciation of 20% of Russian TMH shares in the amount of EUR 404 million. A stable dividend of €0.25 corresponds to a payout rate of 35% of adjusted net income before this impairment. He will be released on July 20 and paid on August 26.

Mandatory retention of free shares

At the microphone now is Yann Delabrière, lead independent director. Concerning the remuneration of the chief cling back which allows for the withdrawal of the annual bonus and shares that have not yet been finalized within two years if targets deemed to have been met are called into question. In addition, 100% of the shares allocated but not yet finally transferred, instead of 50%, must be retained for the entire term of office. The CEO’s fixed remuneration is EUR 950,000 and the bonus cannot exceed 170%. For 2021/2022, it was 119.9% ​​and 20,482 shares were placed.

Let’s move on to questions. Asked by Investir, Henri Poupart-Lafarge says the contracts are inherited from Bombardier with zero gross margins. will continue to be just over 2.5 billion euros in annual turnover over two to three years. As for the increase in the need for working capital, it is associated with “ investment to stabilize Bombardier projects. The situation should gradually normalize, especially since the provisions will be used up. Answer regarding the risk of capital increase: ” the balance is solid and nothing needs to be done “. This wording seemed to us a little more hesitant than during the meeting with investors on May 11.

Question about TMH in Russia. 20% shares is not ” not for sale “. Investments were made in 2007 during the planned opening of the Russian market to Western technologies, but this did not happen.

I’m going to vote. Dividends approved, as well as the possibility of reinvestment in shares in the amount of 21.13 euros. The paid CEO gets 91.58% of the vote. The issue of shares without PSR, including for a limited number of investors, received 88.52% of the vote.