Alstom Presentation

Henri Poupart-Lafarge, Chairman & CEO

Kepler Cheuvreux Autumn Conference, 15 September 2017

© ALSTOM 2017. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should be relied on that it is complete or correct or will apply to any particular project.This will depend on the technical and commercial circumstances. It is provided without liability and is subject to change without notice. Reproduction, use or disclosure to third parties, without express written authority, is strictly prohibited.

ALSTOM – 15 September 2017 – P 2

Disclaimer

This presentation contains forward-looking statements which are based on current plansand forecasts of Alstom’s management. Such forward-looking statements are by their naturesubject to a number of important risk and uncertainty factors (such as those describedin the documents filed by Alstom with the French AMF) that could cause actual results to differfrom the plans, objectives and expectations expressed in such forward-looking statements.

These such forward-looking statements speak only as of the date on which they are made,and Alstom undertakes no obligation to update or revise any of them, whether as a result of newinformation, future events or otherwise.

© ALSTOM 2017. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should be relied on that it is complete or correct or will apply to any particular project.This will depend on the technical and commercial circumstances. It is provided without liability and is subject to change without notice. Reproduction, use or disclosure to third parties, without express written authority, is strictly prohibited.

ALSTOM – 15 September 2017 – P 3

A dynamic market with solid long-term drivers

Market worth more than €110bn (+ 3.2%)

Solid growth drivers

Market driven by urban & integrated systems

Significant growth in all geographical regions

Note: Annual average– Accessible marketSource: UNIFE Market Study 2016

Market size in 2016/18

€51bn

€31bn

€10bn€18bn

Average annual growth between 13/15 – 19/21

AMERICAS

+ 2.3 %

MIDDLE EAST

+ 3.2 %

AFRICA

EUROPE

+ 3.0 %

ASIA

+ 5.4 %

PACIFIC

URBANISATION GOVERNMENTAL FUNDING SUSTAINABLE DEVELOPMENT ECONOMIC GROWTH

© ALSTOM 2017. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should be relied on that it is complete or correct or will apply to any particular project.This will depend on the technical and commercial circumstances. It is provided without liability and is subject to change without notice. Reproduction, use or disclosure to third parties, without express written authority, is strictly prohibited.

ALSTOM – 15 September 2017 – P 4

An ambitious strategy for 2020

ORGANIC

GROWTH

BOOSTED

BY

SELECTIVE

ACQUISITIONS

CUSTOMER-FOCUSED ORGANISATION1

DIVERSE AND ENTREPRENEURIAL PEOPLE 5

OPERATIONAL AND ENVIRONMENTAL EXCELLENCE4

VALUE CREATION THROUGH INNOVATION 3

COMPLETE RANGE OF SOLUTIONS2

OUR

STRATEGY

OUR VALUES

TEAM, TRUST & ACTIONETHICS & COMPLIANCE

OUR BRAND POSITIONING

OUR

VISIONPREFERRED

PARTNERFOR

TRANSPORTSOLUTIONS

DESIGNING FLUIDITY

© ALSTOM 2017. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should be relied on that it is complete or correct or will apply to any particular project.This will depend on the technical and commercial circumstances. It is provided without liability and is subject to change without notice. Reproduction, use or disclosure to third parties, without express written authority, is strictly prohibited.

ALSTOM – 15 September 2017 – P 5

2.84.2

5.1

1.0

1.3

2.95.11.1

1.4

1.1

4.1

0.6

2014/15 2015/16 2016/17

Orders (in € billion)

Europe Americas MEA Asia Pacific

€10bn orders during third year in a row

• 2014/15: PRASA project in South Africa (c. €4bn)

• 2015/16: India eLocos project (c. €3.2bn)

• 2016/17: High-speed trains and services for Amtrak, Dubai 2020 metro system, regional trains in Netherlands and Italy, suburban trains in France

Q1 2017/18: €1.9bn orders

Backlog of €34bn on 30 June 2017 providingstrong visibility on future sales

10.6 10.0

Customer-focused organisationContinued strong commercial performance

10.0

© ALSTOM 2017. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should be relied on that it is complete or correct or will apply to any particular project.This will depend on the technical and commercial circumstances. It is provided without liability and is subject to change without notice. Reproduction, use or disclosure to third parties, without express written authority, is strictly prohibited.

ALSTOM – 15 September 2017 – P 6

32,800 employees working on 105 sites in 60 countries serving 200 customers

AMERICAS

5,200EMPLOYEES

ASIA PACIFIC

4,000EMPLOYEES

MIDDLE EAST

2,900EMPLOYEES

AFRICA

EUROPE

20,700EMPLOYEES

Customer focused organisationLeader on all continents

Notes: (1) Based on orders vs accessible market ; (2) Americas excluding freight market ; (3) Russia not included as market handled directly by TMH. Sources: Alstom ; UNIFE Market Study 2016

#1(2)

#2(3)

#2

#2

2016 rankings (1)

AMERICAS

EUROPE

MIDDLE EAST AFRICA

ASIA PACIFIC

Objective to reach critical size in each region (#1 or #2 where relevant)

© ALSTOM 2017. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should be relied on that it is complete or correct or will apply to any particular project.This will depend on the technical and commercial circumstances. It is provided without liability and is subject to change without notice. Reproduction, use or disclosure to third parties, without express written authority, is strictly prohibited.

ALSTOM – 15 September 2017 – P 7

Complete range of solutionsSystems, signalling and services to represent around 60% of sales by 2020

3.3 3.1 3.2

0.7 1.0 1.3

0.91.2

1.41.3

1.51.5

2014/15 2015/16 2016/17

Sales (in € billion)

Rolling stock Systems Signalling Services

Rolling stock: roughly stable

• Rolling stock deliveries in Europe

• On-going execution of PRASA project

Systems: +88% over 2 years

• Deliveries of urban systems in MEA and LAM

Signalling: +54% over 2 years• GE signalling integration in November 2015

Services: +17% over 2 years

• Slight decrease in 2016/17 with adverse forex impact on UK contracts

Q1 2017/18: €1.9bn sales, i.e. 5% organicgrowth

6.9 7.36.3

+5%

+7%

57%54%46%

% change organic

© ALSTOM 2017. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should be relied on that it is complete or correct or will apply to any particular project.This will depend on the technical and commercial circumstances. It is provided without liability and is subject to change without notice. Reproduction, use or disclosure to third parties, without express written authority, is strictly prohibited.

ALSTOM – 15 September 2017 – P 8

226

248

2015/16 2016/17

R&D gross costs (in € million)

3.3% 3.4%

As % of sales

Value creation through innovationSustained level of R&D

Main R&D programmes

Renewal of rolling stock ranges

Signalling programmes

Predictive maintenance

The new generation of Coradia regional trains

© ALSTOM 2017. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should be relied on that it is complete or correct or will apply to any particular project.This will depend on the technical and commercial circumstances. It is provided without liability and is subject to change without notice. Reproduction, use or disclosure to third parties, without express written authority, is strictly prohibited.

ALSTOM – 15 September 2017 – P 9

Value creation through innovationNew innovations for smarter mobility

Coradia iLint, hydrogen train, with a first successful run at 80 km/h

Aptis, a new 100% electric experience of mobility

Mastria, the first multimodal supervision solution

Nomad Digital, acquisition of the world leader of on-board connectivity

© ALSTOM 2017. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should be relied on that it is complete or correct or will apply to any particular project.This will depend on the technical and commercial circumstances. It is provided without liability and is subject to change without notice. Reproduction, use or disclosure to third parties, without express written authority, is strictly prohibited.

ALSTOM – 15 September 2017 – P 10

298

366

421

2014/15 2015/16 2016/17

Adjusted EBIT (in € million)

4.8%5.3%

5.8%

As % of sales

Volume increase

Portfolio mix improvement

On-going initiatives for operational excellence

+15%

% change reported

Operational excellenceContinued strong operational performance

+23%

© ALSTOM 2017. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should be relied on that it is complete or correct or will apply to any particular project.This will depend on the technical and commercial circumstances. It is provided without liability and is subject to change without notice. Reproduction, use or disclosure to third parties, without express written authority, is strictly prohibited.

ALSTOM – 15 September 2017 – P 11

Operational excellenceSolid project execution

PRASA project, South Africa

• 17 trains in commercial service

(delivered from Brazil)

eLoco project, India

• First batch of design submitted

to customer in February 2017

Riyadh project, Saudi Arabia

• First train delivered on-time from

Katowice, Poland in Feb. 2017

© ALSTOM 2017. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should be relied on that it is complete or correct or will apply to any particular project.This will depend on the technical and commercial circumstances. It is provided without liability and is subject to change without notice. Reproduction, use or disclosure to third parties, without express written authority, is strictly prohibited.

ALSTOM – 15 September 2017 – P 12

Conclusion

A 2020 strategy leading to sound results

A solid balance sheet

Resuming dividends in 2016/17

2020 objectives confirmed:

Sales expected to grow at 5% per year organically

Adjusted EBIT margin to reach around 7%

c. 100% conversion from net income to free cash flow

© ALSTOM 2017. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should be relied on that it is complete or correct or will apply to any particular project.This will depend on the technical and commercial circumstances. It is provided without liability and is subject to change without notice. Reproduction, use or disclosure to third parties, without express written authority, is strictly prohibited.

ALSTOM – 15 September 2017 – P 13

Q&A

www.alstom.com

© ALSTOM 2017. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should be relied on that it is complete or correct or will apply to any particular project.This will depend on the technical and commercial circumstances. It is provided without liability and is subject to change without notice. Reproduction, use or disclosure to third parties, without express written authority, is strictly prohibited.

ALSTOM – 15 September 2017 – P 15

4.2 5.1

1.3

2.91.1

1.44.1

0.6

2015/16 2016/17

Orders (in € billion)

Europe Americas MEA Asia Pacific

6.5 5.5

1.01.5

1.41.0

1.82.0

2015/16 2016/17

Rolling stock Systems Signalling Services

10.6 10.0

Appendix: Customer-focused organisation

10.6 10.0

30.4 34.8

2015/16 2016/17

Backlog (in € billion)

Europe 43%

Americas16%

Middle East & Africa25%

Asia Pacific16%

Backlog breakdown as end of March 2017

Rolling stock 49%

Services 29%

Signalling 9%

Systems 13%

© ALSTOM 2017. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should be relied on that it is complete or correct or will apply to any particular project.This will depend on the technical and commercial circumstances. It is provided without liability and is subject to change without notice. Reproduction, use or disclosure to third parties, without express written authority, is strictly prohibited.

ALSTOM – 15 September 2017 – P 16

Tram, metro, suburban/regional, high speed, very high speed, locomotive

E-bus Components: traction, bogie, motor

Signalling solutions portfolio for urban, main line, freight and mining and digital mobility

Sold as products or solutions

Integrated solutions Infrastructure

Maintenance Modernisation Spare parts, repairs & overhaul Support services

ROLLINGSTOCK

SIGNALLING

SERVICES

SYSTEMS

43%

19%

20%

18%

% of 2016/17 sales

Appendix: A complete range of transport solutions

© ALSTOM 2017. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should be relied on that it is complete or correct or will apply to any particular project.This will depend on the technical and commercial circumstances. It is provided without liability and is subject to change without notice. Reproduction, use or disclosure to third parties, without express written authority, is strictly prohibited.

ALSTOM – 15 September 2017 – P 17

Appendix: 2016/17 key figures

In € million

10,008

2015/16 2016/17% changereported

aEBIT

aEBIT margin

Sales

366

5.3%

6,881 7,306

15%

6%

(6)%Orders 10,636

% changeorganic

5%

(6)%

421

5.8%

Net income – Group share 3,001 289

Free cash flow (2,614) 182

34,781 15%Backlog 30,363 9%

Net cash/(debt) (203) (208)

Equity 3,328 3,713

© ALSTOM 2017. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should be relied on that it is complete or correct or will apply to any particular project.This will depend on the technical and commercial circumstances. It is provided without liability and is subject to change without notice. Reproduction, use or disclosure to third parties, without express written authority, is strictly prohibited.

ALSTOM – 15 September 2017 – P 18

Appendix: Income statement

Adjusted EBIT Adjusted EBIT margin

4215.8%

Sales 7,306

Net income – Group share 289

In € million

EBIT 358

Financial result

Tax result

Share in net income of equity investees

Minority interests from continued op.

Net income – Discontinued operations*

(127)

(76)

82

(14)

66

FY 2016/17

*Group share

(6)

(57)

Restructuring charges

Other charges

3665.3%

6,881

3,001

(226)

(275)

(597)

30

(15)

4,084

FY 2015/16

(138)

(454)

% changereported

15%

6%

% changeorganic

5%

© ALSTOM 2017. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should be relied on that it is complete or correct or will apply to any particular project.This will depend on the technical and commercial circumstances. It is provided without liability and is subject to change without notice. Reproduction, use or disclosure to third parties, without express written authority, is strictly prohibited.

ALSTOM – 15 September 2017 – P 19

Appendix: Free cash flow

Cash Focus programme impact

Several large down-payments

Volatility on short period

Phasing of transformationcapex

Adjusted EBIT

Depreciation & amortisation

Restructuring cash-out

Capex

R&D capitalisation

Change in working capital

Financial cash-out

Tax cash-out

Other*

366

138

(61)

(154)

(73)

(892)

(291)

(211)

(1,436)

FY 2015/16

421

132

(49)

(150)

(70)

80

(115)

(87)

20

FY 2016/17

Free cash flow (2,614) 182

*includes free cash flow from discontinued operations

In € million

© ALSTOM 2017. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should be relied on that it is complete or correct or will apply to any particular project.This will depend on the technical and commercial circumstances. It is provided without liability and is subject to change without notice. Reproduction, use or disclosure to third parties, without express written authority, is strictly prohibited.

ALSTOM – 15 September 2017 – P 20

150

103

447

2015/16 2016/17

Capex* (in € million)

Capex Transformation Capex

Progressive ramp up of transformation capex

Appendix: Capex developments

New sites to meet customers’ growing demand for a local presencec. €300m transformation capex over 3 years

* excluding capitalised development costs

South Africa: on-going site construction

154 150

© ALSTOM 2017. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should be relied on that it is complete or correct or will apply to any particular project.This will depend on the technical and commercial circumstances. It is provided without liability and is subject to change without notice. Reproduction, use or disclosure to third parties, without express written authority, is strictly prohibited.

ALSTOM – 15 September 2017 – P 21

2,3611,963

Mar-16 Mar-17Undrawn credit line Gross cash

453

272

371

282

594

Feb 20174.13%

Oct 20172.25%

Oct 20183.63%

July 20193%

March 20204.5%

Appendix: Liquidity and gross debt

Liquidity

€1,563m cash and cash equivalents as of 31 March 2017

€400m revolving credit facility ; fully undrawn

Flexibility with Energy JVs put options

Liquidity position

Gross debt

In € million

In € million Gross debt

€453m reimbursed at maturity in February 2017

€1,519m outstanding bonds as of 31 March 2017

Next maturity in October 2017 (€272m)

Interest rate

© ALSTOM 2017. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should be relied on that it is complete or correct or will apply to any particular project.This will depend on the technical and commercial circumstances. It is provided without liability and is subject to change without notice. Reproduction, use or disclosure to third parties, without express written authority, is strictly prohibited.

ALSTOM – 15 September 2017 – P 22

Appendix: Strong balance sheet

EquityIn € millionNet cash/(debt)In € million

* includes GE related separation impact (e.g. IS&T)

(203) (208)182 (171)

(16)

Mar-16 FCF Acq. & disposals* Forex & other Mar-17

3,328

3,713

289

(32)128

Mar-16 Net income Pensions Forex & other Mar-17

© ALSTOM 2017. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should be relied on that it is complete or correct or will apply to any particular project.This will depend on the technical and commercial circumstances. It is provided without liability and is subject to change without notice. Reproduction, use or disclosure to third parties, without express written authority, is strictly prohibited.

ALSTOM – 15 September 2017 – P 23

Appendix: Q1 2017/18 Orders

0.40.6

0.3

0.8

0.0

0.2

0.2

0.4

Q1 2016/17 Q1 2017/18

Orders by region(in € billion)

Europe Americas MEA Asia Pacific

0.3

1.0

0.0

0.3

0.2

0.1

0.4

0.4

Q1 2016/17 Q1 2017/18

Orders by products(in € billion)

Trains Systems Signalling Services

0.9

1.9

0.9

1.9

© ALSTOM 2017. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should be relied on that it is complete or correct or will apply to any particular project.This will depend on the technical and commercial circumstances. It is provided without liability and is subject to change without notice. Reproduction, use or disclosure to third parties, without express written authority, is strictly prohibited.

ALSTOM – 15 September 2017 – P 24

Appendix: Q1 2017/18 Sales

1.11.0

0.30.3

0.2 0.3

0.20.2

Q1 2016/17 Q1 2017/18

Sales by region(in € billion)

Europe Americas MEA Asia Pacific

0.8 0.8

0.20.4

0.3

0.3

0.40.4

Q1 2016/17 Q1 2017/18

Sales by product(in € billion)

Trains Systems Signalling Services

1.71.9

1.71.9

% organic growth

+ 5 % + 5 %