ACTIVITY REPORT 2016/17 CONTENTS

CHALLENGES WHAT WILL BE LIKE IN THE FUTURE? Attractive, digital, accessible, clean, efficient, integrated and agile — p. 01 1 AMBITION SETTING THE STANDARD IN THE MARKET “We are on track towards smart mobility.” Interview with Henri Poupart-Lafarge, Chairman and Chief Executive Officer of — p. 10 2 Board of Directors — p. 13 The Executive Committee SOLUTIONS looks back on 2016 — p. 14 APPLYING EXPERTISE TO 2016 in figures — p. 16 MEET CUSTOMER NEEDS 2020 strategy: Overview: the most complete range Alstom pursues its transformation — p. 18 of solutions in the market — p. 28 In pictures: the highlights of the year — p. 20 Rolling stock: reinventing mobility — p. 30 Innovation drives our growth — p. 26 Signalling: improving traffic flow — p. 34 Services: custom support — p. 37 Systems: increasing efficiency — p. 40 In pictures: state-of-the-art solutions — p. 42 3 COMMITMENTS A RESPONSIBLE COMPANY For our customers — p. 44 For our employees — p. 46 For the environment — p. 48 For local communities — p. 50 CHALLENGES WHAT WILL RAIL TRANSPORT BE LIKE IN THE FUTURE?

ATTRACTIVE DIGITAL ACCESSIBLE CLEAN EFFICIENT INTEGRATED AGILE

01 CHALLENGES

ATTRACTIVE

In the face of competition from new mobility solutions such as ride sharing, car pooling and electric vehicles, rail transport will need to further improve passenger comfort to boost its appeal.

Everything about Alstom’s products – ­from initial design to subsequent services – is conceived to enhance the passenger experience through features like wide windows, air conditioning, natural on-board lighting, automatic sliding doors, real-time information and more.

02 03 CHALLENGES

DIGITAL

New information and communication technologies have ushered rail transport into the digital age with a focus on three priorities: optimising operations, improving passenger services and safeguarding information systems.

Alstom’s range of solutions incorporates the latest in digital technology to enhance operational performance and improve passenger connectivity. The development of HealthHub solutions and the recent acquisition of Nomad Digital have strengthened this approach. Alstom understands the security issues associated with the use of digital technology and has made cybersecurity a cornerstone of its research and development strategy.

02 03 CHALLENGES

ACCESSIBLE

Around the world, one of the main challenges in rail transport stems from the need to improve train accessibility for passengers with reduced mobility. Such measures concern people with disabilities, seniors, expectant mothers, families with children and passengers carrying heavy luggage.

Alstom ensures improved transit and access for all passengers aboard its trains. It integrates the needs of both current and future generations from the outset, during the design phase. Low floors, interior layout, wide doorways and in-station information systems are all good examples of this approach.

04 05 CHALLENGES

ACCESSIBLE CLEAN

The world’s population is expected to reach 9.7 billion by 2050, by which time 70% of people will live in urban areas1. Sustainable modes of transport will be crucial in catering to mobility needs while protecting the environment.

Rail transport is a low-carbon solution that by definition helps safeguard the environment. Alstom continues to push the boundaries of responsible mobility by developing emission-free solutions like regional trains powered by hydrogen fuel cells. The Group has committed to achieving a 20% reduction in the energy consumption of its transport solutions by 2020.

1- Source: United Nations.

04 05 CHALLENGES

EFFICIENT

Rail transport suffers from relatively high per-kilometre costs due to the need for infrastructure investment. Greater economic efficiency is necessary in order to continue providing a service that can compete with rival offerings.

Alstom continues to improve the efficiency of its railway systems throughout their lifecycle by standardising its products and services, reducing the energy consumption of its trains, developing predictive maintenance and devising smart on-board solutions.

06 CHALLENGES

EFFICIENT INTEGRATED

A seamless intermodal transition is a decisive factor in enhancing the appeal of passenger and freight transport not just in cities and regions but on a national and international level. Multimodal solutions will be more prevalent in the future as a result.

Alstom develops powerful digital solutions to facilitate multimodal management and improve service continuity for passengers. Part of this process includes designing new urban mobility solutions such as electric buses and exploring autonomous shuttle systems through partnerships to offer effective last-mile coverage.

06 07 CHALLENGES

SETTING AGILE THE STANDARD Population growth and trade development are increasing demand for passenger and freight mobility solutions. These needs vary from one country to the next according to the available infrastructure, IN THE MARKET railway culture, economic considerations and strategic choices. The future of rail transport depends on the industry’s ability to meet this multifaceted demand.

Alstom has established an extremely close relationship with its customers and has a keen understanding of the needs of operators and passengers, both now and in the future. Its range of rail solutions is the largest in the market and is tailored to a diverse array of needs worldwide.

0208 09 1 AMBITION SETTING THE STANDARD IN THE MARKET

09 Activity report 2016/17 — ALSTOM AMBITION

“We are on track towards smart mobility.”

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

“OUR PERFORMANCE TODAY GIVES US THE COMMERCIAL LEVERAGE TO WIN CONTRACTS TOMORROW.”

ALSTOM — Activity report 2016/17 10 2016/2017 was all about the “New Alstom” and its focus on the rail indus- try. How would you sum it up? Henri Poupart-Lafarge — 2016/17 was a very positive year, during which we continued to serve our customers, implement our strategy and move closer to our targets. We’ve seen real momen- tum, especially commercially, with a “2016/17 WAS A VERY POSITIVE high order intake around the world. One YEAR, DURING WHICH example that springs to mind is the con- tract we signed in August with American WE CONTINUED TO SERVE operator for a new-generation of high-speed train: Avelia Liberty. The OUR CUSTOMERS, IMPLEMENT order marks our entry into the North OUR STRATEGY AND MOVE CLOSER American high-speed market. It also reflects our capacity to innovate, to meet TO OUR TARGETS.” the needs of our customers; energy effi- ciency, lower total cost of ownership, optimal passenger experience and more. Another key contract was the extension of the red line for the Dubai metro, which will link the city to the Expo 2020 site. The project has a tight schedule, since trains are due to begin running on the was also marked by a number of key around the world including tramways line in time for the Universal Exhibition. project deliveries. The most symbolic in Algeria, urban signalling systems in Maintaining a healthy level of orders in was undoubtedly the Rio de Janeiro China, regional trains in France, Italy the face of political and economic ups tramway, which began running a few and Germany. The first trains from our and downs is also a broader reflection months before the Summer Olympic ground-breaking project in South Africa of our market stability. Games. The project was implemented in have also entered service. a complex environment and was a huge What were the year’s highlights? operational success, not to mention a Alstom aims to become the preferred Henri Poupart-Lafarge — Beyond real source of pride for our employees. partner for transport solutions by our commercial activities, the year I could list many other examples 2020 and has launched a far-reaching strategy to achieve this goal. How are things progressing? Henri Poupart-Lafarge — Our efforts have begun to pay off on every front. The Group’s globalisation is moving along at a healthy pace and is vital in meeting the needs of our customers. Last year, we also began construction of two new manufacturing sites in South Africa and India. We have now completed the renewal of our rolling stock platforms with the launch of new regional and very high-speed trains. We continued to expand our range of solutions in order to offer customers comprehensive mobility services. Digitalisation is an integral part of this approach, as seen in the acquisition of Nomad Digital, a global leader in connectivity solutions for the railway industry.

11 Activity report 2016/17 — ALSTOM AMBITION

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

Operational and environmental per- formance is another cornerstone of the Alstom strategy. What sort of progress has been made in this respect? Henri Poupart-Lafarge — Through- A word on people? sion to allocate free shares to everyone out 2016, we continued to improve Henri Poupart-Lafarge — Every year we aimed to reflect that appreciation and our operational efficiency in terms of reinforce the safety of our workplaces. involve them directly in our development. ensuring timely deliveries, reducing That is our first priority. Diversity also our costs of non-quality and increasing remains a key point of focus in every Let’s talk about the future. How the energy performance of our opera- sense of the word — especially cultural do you view Alstom’s market going tions and products. We are pursuing diversity, in line with our globalisation forward? the development of our information strategy. Individual involvement in the Henri Poupart-Lafarge — It is a grow- system backbone to foster collabora- future of the Group is equally important. ing market and there is no denying the tion and improve our global efficiency. We value our employees. Our deci- dynamism, especially with respect to

“WE MUST MAKE DIGITAL SOLUTIONS AN INTEGRAL PART OF OUR ORGANISATION, OUR WORKING METHODS AND OUR PRODUCTS.”

ALSTOM — Activity report 2016/17 12 Governance

urban perspectives. Mobility remains the number-one priority for local BOARD OF DIRECTORS authorities as they seek to rise to sustainability challenges. Opportuni- ties abound, especially in emerging countries, but also in Europe, which Henri Poupart-Lafarge is our main market. Whether in urban Chairman and Chief Executive Officer of Alstom transport or mainline services, the rail industry is increasingly global and Candace K. Beinecke competitive. It has also been hugely Chair of Hughes Hubbard & Reed LLP impacted by digitalisation, which Olivier Bourges affects structures (new operators General Counsel of PSA Peugeot-Citroën and growth in multimodal solutions), offerings (connected products) and Olivier Bouygues operations (predictive maintenance Deputy Chief Executive Officer of Bouygues and traffic optimisation). We are on track towards “smart mobility”, which Bi Yong Chungunco taps the full potential of information Head of Divestments of LafargeHolcim and communication technology to make transport more efficient, more Yann Delabrière attractive and more affordable, as well Chairman of the Board of Directors of Faurecia as safer and greener. Pascal Faure In this context, what are your Director appointed by the French State priorities for the next few years? Head of the Directorate General for Enterprise (DGE) Henri Poupart-Lafarge — First and foremost, we need to continue to Gérard Hauser implement our 2020 strategy. That Director of companies is the foundation for our future devel- Sylvie Kandé de Beaupuy opment. We have come a long way Group Ethics & Compliance Officer of Airbus but there is still a lot more to do. As I mentioned earlier, digitalisation is Klaus Mangold an underlying trend that is unavoidable Chairman of the Supervisory Board and has a huge impact on our business. of Rothschild GmbH (Frankfurt) Which is why we must make it an integral part of our organisation,­ our Philippe Marien working methods and our products. Chief Financial Officer of Bouygues Group This trend should also lead us to think about our strategic positioning. We Géraldine Picaud need to seize the opportunities unlocked Chief Financial Officer of Essilor Group by the emergence of smart mobility by anticipating the future profile of Sylvie Rucar operators. Some will no doubt be mul- Advisor tiservice, multimodal providers. It is up to us to adapt our offering to meet their needs. Increasingly strong competi- tion will also require us to expand our workforce and establish partnerships to better serve our customers.

13 Activity report 2016/17 — ALSTOM AMBITION Governance

The Executive Committee looks back on 2016

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

“With 5% organic growth, an improved operating margin and cash-flow generation, we drew closer to reaching our 2020 objectives “2016 was an extremely dynamic year. in 2016. We will continue to invest We continued to roll out our strategy and selectively as opportunities arise.” better serve our customers while seizing MARIE-JOSÉ DONSION opportunities in a fast-growing market.” Senior Vice-President HENRI POUPART-LAFARGE Finance Chairman and Chief Executive Officer

“We made great strides in transforming our company thanks to the involvement of our employees. 2016 was the year of the new Alstom.” THIERRY PARMENTIER Senior Vice-President Human Resources

“With an impressive haul of contracts “We stepped up operational such as the extension of the Dubai performance by increasing metro, 2016 confirmed the outstanding our industrial reach in line with growth of the MEA region, where sales market demand and streamlining have strongly increased in the past working methods between three years.” our different sites.” GIAN-LUCA ERBACCI THIERRY BEST Senior Vice-President Chief Operating Officer Middle East & Africa

ALSTOM — Activity report 2016/17 14 “With a 25% staff increase and the expansion of our industrial capacity, Alstom reinforced its presence in the Asia Pacific region in 2016 to better meet the needs of our customers.” JEAN-FRANÇOIS BEAUDOIN Senior Vice-President Asia Pacific

“By honouring our commitments and through successful contract “The creation of Digital Mobility execution in France and around marks a new era for Alstom in the world, we succeeded in providing solutions for emerging strengthening our relationship smart cities and supporting with customers. New strategic customers by ensuring more orders towards the end of the year efficient transport solutions.” will secure the future of our design and production sites.” PASCAL CLÉRÉ Senior Vice-President JEAN-BAPTISTE EYMÉOUD Alstom Digital Mobility Senior Vice-President France

“2016 was the year of landmark contracts in North America, with long-term infrastructure maintenance agreements and new high-speed trains. These projects will continue to drive and sustain transformation in the region.” JÉRÔME WALLUT Senior Vice-President North America “Innovative solutions for the region’s population included the first tramway in Latin America, which was brought into service in time for the Olympic “2016 reflected outstanding team spirit Games in Rio, revolutionising in Europe, which led to solid financial the city centre.” and operational results and ongoing positive EHS performance.” MICHEL BOCCACCIO Senior Vice-President ANDREAS KNITTER Latin America Senior Vice-President Europe

15 Activity report 2016/17 — ALSTOM AMBITION 2016 in figures

POSITIONS

AMERICAS Growing 5,200 globalisation EMPLOYEES

2016/17 ORDERS €10.0 BILLION

AMERICAS EUROPE

29% 51%

MIDDLE EAST & AFRICA ASIA PACIFIC

14% 6%

ALSTOM — Activity report 2016/17 16 EUROPE 20,700 EMPLOYEES

MIDDLE EAST ASIA PACIFIC & AFRICA 4,000 2,900 EMPLOYEES EMPLOYEES

32,800 EMPLOYEES WORLDWIDE 105 SITES IN 60 COUNTRIES

€7.3 €289 €208 5.8% BILLION MILLION MILLION OPERATING SALES NET INCOME NET DEBT MARGIN*

* adjusted EBIT margin.

17 Activity report 2016/17 — ALSTOM AMBITION Strategy

2020 STRATEGY Alstom pursues its transformation

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

CUSTOMER-FOCUSED A COMPLETE RANGE ORGANISATION OF SOLUTIONS

2020 GOAL : 2020 GOAL : Reinforce Alstom’s worldwide Provide the most comprehensive presence and better meet the range of systems, signalling needs of customers in local equipment and services in each markets. area of the rail industry.

PROGRESS: PROGRESS: With 105 sites in 60 countries, Alstom Alstom has continued to expand its range has established a presence that is both of solutions by seeking the best possible local and global. This local presence balance between standardisation and promotes long-term partnerships with flexibility. New regional and high-speed clients and increases flexibility and platforms have been launched after tram efficiency. In 2016, Alstom grew its and metro platforms. Contracts signed in network in India with the expansion of Dubai and Sydney have strengthened its the Coimbatore and Sri City sites and position in systems, while the acquisition construction of a new plant in Madhepura. of General Electric’s signalling assets has It also extended its reach in other countries increased the scope of its signalling busi- by doubling the size of the Katowice site in ness. Alstom has continued to support Poland, building a manufacturing site in its customers by offering them a range Dunnottar, South Africa, and expanding its of high-quality services. Hornell site in the United States. NEXT MILESTONES: NEXT MILESTONES: Further expand the range of solutions to Continue to strengthen the Group’s indus- meet the current and future needs of cus- trial presence through partnerships, joint tomers while exploring new, increasingly ventures and individual initiatives while connected mobility solutions. fostering synergies between sites and developing everyday customer relations.

ALSTOM — Activity report 2016/17 18 VALUE CREATION OPERATIONAL AND DIVERSE AND THROUGH INNOVATION ENVIRONMENTAL ENTREPRENEURIAL EXCELLENCE PEOPLE 2020 GOAL : Innovate to achieve 2020 GOAL : 2020 GOAL : differentiation and gain Ensure flawless contract Strengthen the Alstom culture a competitive edge. execution and reduce by encouraging entrepreneurial the carbon footprint spirit and diversity in every PROGRESS: of products and operations. shape and form. Alstom has structured an innovation process designed to identify and nur- PROGRESS: PROGRESS: ture the most promising ideas in line Alstom has already standardised plat- Alstom’s move to renew its focus on the with the Group’s innovation strategy. forms for rolling stock. Performance in transport business, deploy its leadership Due to ongoing R&D investment and terms of quality, costs and lead times model and implement the share allo- partnerships, Alstom unveiled three new has improved and working methods and cation programme launched in 2016 solutions for 2016/17: the zero-emission resources between different sites are now has strengthened employees’ sense of Coradia iLint regional train, the electric being streamlined. The latest solutions belonging. The Group has continued to bus Aptis and the multimodal manage- offer 8-10% lower energy consumption, implement initiatives to promote ethics, ment system for urban transport Mastria. already midway to meeting the target for cultural diversity and gender balance. 2020. Alstom achieved its 2020 goal of a NEXT MILESTONES: NEXT MILESTONES: 10% reduction in its plants in March 2017, Adapt innovation strategy to market Pursue targets for integrity and ethics, ahead of schedule. developments and improve digital solu- promote recruitment of local talent and tions to boost internal productivity while NEXT MILESTONES: encourage initiatives to support women developing a range of new solutions and Improve the overall efficiency, streamline in the company. services. working methods, continue to simulate energy consumption improvements for solutions under development and pursue the ISO 14001 certification programme.

19 Activity report 2016/17 — ALSTOM AMBITION Highlights

IN PICTURES The highlights of the year

UNITED KINGDOM SIGNALLING

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

CUSTOMER-FOCUSED A COMPLETE RANGE VALUE CREATION OPERATIONAL AND DIVERSE AND ORGANISATION OF SOLUTIONS THROUGH INNOVATION ENVIRONMENTAL EXCELLENCE ENTREPRENEURIAL PEOPLE

ALSTOM — Activity report 2016/17 20 BRAZIL – RIO DE JANEIRO TRAMWAY SYSTEM

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

FRANCE INNOVATION PARTNERSHIP

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

21 Activity report 2016/17 — ALSTOM AMBITION Highlights

ITALY AND NETHERLANDS REGIONAL TRAINS

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

UNITED ARAB EMIRATES – DUBAI METROS

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

ALSTOM — Activity report 2016/17 22 ACQUISITIONS

UNITED STATES MOROCCO HIGH-SPEED TRAINS ACQUISITION

Alstom acquires Nexans Historic high-speed train contract shares to become with Amtrak. Avelia Liberty is the the exclusive owner latest in Alstom’s Avelia range of of Cabliance. high-speed trains.

SOUTH AFRICA ACQUISITION

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

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

23 Activity report 2016/17 — ALSTOM AMBITION Highlights

FRANCE SUBURBAN TRAINS

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

GERMANY ZERO-EMISSION TRAIN

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

ALSTOM — Activity report 2016/17 24 INVESTMENTS AND ACQUISITIONS

CONNECTIVITY ACQUISITION

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

TAIWAN – KAOHSIUNG TRAMWAYS AND ON-BOARD ENERGY STORAGE NEW MOBILITY INVESTMENT

Alstom wins contract to supply 15 Citadis X05 trams to the city of Alstom invests in EasyMile, Kaohsiung including Citadis Ecopack an innovative startup on-board energy storage system. developing the EZ10 autonomous electric shuttle.

25 Activity report 2016/17 — ALSTOM AMBITION Projection

Innovation drives our growth

Our customers’ request for performance In the face of growing demand for mobility solutions, they need to offer passengers means of transportation that are comfortable, reliable, safe and attractive. Yet they also need to optimise costs to ensure a sustainable business model. How can we help?

Innovation is our answer At Alstom, we innovate by anticipating the needs of customers, operators and passengers. Our innovation process is designed to nurture good ideas and help them grow. Our R&D strategy provides the industrial framework to turn these ideas into innovative solutions for our customers’ projects. Innovation also means staying a step ahead in an increasingly competitive environment. It means using state-of-the-art methods and tools in design and production to ensure the most competitive prices.

A joint effort Because interaction fuels creativity, Alstom cultivates an open approach to innovation through partnerships with universities and research centres. This has led to joint programmes including work with INRIA to develop digital solutions for energy and mobility challenges. It has fostered public/private research initiatives like SystemX (digital solutions for future transport services), SuperGrid (new power conversion technologies) and Railenium (railway system technologies). Alstom’s proactive approach extends to suppliers, startups, customers and operators as part of a complete ecosystem that allows the Group to develop or acquire the core technologies needed to construct its comprehensive range of solutions. The same dynamic is embodied internally by the annual “I NOVE YOU” competition, which recognises the achievements of Alstom employees who have put forward the most innovative projects.

ALSTOM — Activity report 2016/17 26 2 SOLUTIONS APPLYING EXPERTISE TO MEET CUSTOMER NEEDS

27 Activity report 2016/17 — ALSTOM SOLUTIONS

OVERVIEW The most complete range of solutions in the market

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

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

URBAN & SUBURBAN MOBILITY The Citadis range of city-centre tramway solutions also includes tram-train services (Citadis Dualis) and light rail vehicles (Citadis Spirit). Translohr tyre-based trams are an ideal solution for cities with a specific topography. Alstom also supports large-scale mobility with its range of Metropolis metros and X’Trapolis suburban trains for commuters. SIGNALLING MAIN LINES Control centres, security, passenger information, Coradia trains are top-selling regional transport solutions trackside signalling solutions and interlocking. that can be tailored to a wide array of different technical specifications. The Avelia range provides high-speed solu- Alstom develops signalling solutions for urban environ- tions in line with the latest passenger expectations. ments and main lines that enable operators to ensure safe, LOCOMOTIVES seamless services. Examples include Iconis control centres, Alstom offers a comprehensive range of Prima locomotives Urbalis CBTC solutions, the Atlas ERTMS range for network adapted to a wide range of operating conditions for freight interoperability, trackside signalling equipments, interlocking and passenger transport. solutions and on-board information systems. 43% 19% of sales of sales

ALSTOM — Activity report 2016/17 28 SERVICES Maintenance, modernisation, spare parts, repairs and support services. SYSTEMS Infrastructure and integrated systems. Alstom provides maintenance for all types of trains, infrastructure and signalling systems. As the complexity of rail systems continues to grow, oper- Services also include upgrades for trains in areas such as ators often seek comprehensive solutions to meet their design, components, traction systems and eco-driving sup- needs. Alstom can draw on its full range of cross-functional port, along with modernisation options for infrastructure expertise as a railway manufacturer to cover every aspect and signalling systems. of urban rail systems, including rolling stock, signalling, Alstom provides parts supply services and repairs for all infrastructure and services. Alstom’s expertise in infra- types of trains, made by any manufacturer. structure covers both electrification and track works as Customer support services include a wide range of main- well as electromechanical equipment for tunnels, stations tenance training programmes. and depots. 20% 18% of sales of sales

29 Activity report 2016/17 — ALSTOM SOLUTIONS

ROLLING STOCK Reinventing mobility

Alstom draws on its CUSTOMER-FOCUSED energy efficiency, passenger comfort technological expertise SOLUTIONS Transport authorities and operators and connectivity. The range is enhanced and innovative need safe, reliable transport solutions by the Translohr tyre-based trams of capabilities to meet that are adapted to the expectations of NTL, which are designed to meet the the current and future passengers and easy on their pocket. needs of tram systems with specific Alstom rises to these challenges daily, geographic requirements. In line with needs of operators and using product platform standardisation the ongoing drive to innovate, Alstom passengers. Its solutions to continuously improve competitiveness, has also upgraded its Metropolis metro cover a whole range quality and lead times. Alstom pours solutions to enhance passenger comfort of services, including significant resources into improving the while optimising operating costs. passenger experience and optimising urban transit, mainline the total cost of ownership by reducing … and on the outskirts travel, regional transport, energy consumption and maintenance Urban growth demands alternatives mining networks costs. to road transport to ensure more fluid movement in and around cities. Alstom’s and freight. SOLUTIONS Citadis Dualis tram-train can travel In the heart of the city… seamlessly between tram tracks and Alstom’s Citadis X05, the latest addition the regional rail network, while Citadis to the Citadis tram range, is a fresh take Spirit offers a light rail vehicle able to pro- on a classic form of transport that builds vide the mobility and flexibility needed in on a successful 15-year track record. North American cities. X’Trapolis mean- It is a flexible solution that offers an array while provides high-capacity solutions for of customisation options that showcase transport to and from suburban centres.

ALSTOM USES PRODUCT PLATFORM STANDARDISATION TO CONTINUOUSLY IMPROVE COMPETITIVENESS, QUALITY AND LEAD TIMES.

ALSTOM — Activity report 2016/17 30 1. KEY FIGURES 2,300 CITADIS TRAMWAYS SOLD WORLDWIDE 17,000 ALSTOM METRO CARS RUNNING EVERY DAY

2. 2,400 CORADIA TRAINS SOLD 940 AVELIA TRAINS IN COMMERCIAL SERVICE

3.

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

31 Activity report 2016/17 — ALSTOM SOLUTIONS Rolling stock

1. 2.

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

Regional travel… … and the need for speed With its improved modularity, new Avelia Liberty is the latest incarnation in design, optimal passenger experience, Alstom’s Avelia high-speed range, which weight savings and reduced costs, the already features flagships like , new generation of Coradia regional trains and AGV. Based on proven has everything it takes to write the next technology, Avelia Liberty combines flex- chapter in a commercial success story ibility and comfort with accessibility and spanning more than 30 years. While the reduced operating costs. range continues to offer specific technical configurations adapted to the needs of Passengers and freight each operator, a drive to improve stand- The highly modular range of Prima ardisation has delivered a single, versatile locomotives offers several configurations 3. platform on which to build both intercity covering everything from passenger and regional trains. In 2016, Alstom also transport to shunting and freight loco- launched Coradia iLint, an emission-free motives for the mining industry. train for non-electrified lines, powered by fuel cells.

ALSTOM IS FULLY COMMITTED TO RAIL TRANSPORT IN THE DIGITAL AGE AND CONTINUES TO STEP UP ITS EFFORTS TO DEVELOP TRAINS THAT OFFER IMPROVED CONNECTIVITY TO ENHANCE THE SAFETY AND EXPERIENCE OF PASSENGERS.

ALSTOM — Activity report 2016/17 32 CUSTOMER STORY

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

In what context was the order made? Roel Okhuijsen — The number of passengers is increasing on our network. We want to provide them with a transport offer that is both adequate and comfortable. Hence the decision to acquire new trains while simultaneously modernising our old fleet. What are the determining factors for passengers? R.O. — It’s important to be able to meet the specific needs of different user groups. We will therefore be providing areas dedicated to silence, work or socialising. We also want to offer a quality environment, with Wi-Fi and USB sockets at each seat and extra luggage racks. Accessibility is a major factor thanks to a low floor access, as is the design, which gives the feeling of being on a high-speed train even at 200 km/h. What is the secret of successful collaboration between operator and manufacturer? R.O. — Working together in an open and transparent fashion, pooling experiences to successfully complete the design and develop it still further, but also “Working together in an knowing how to expose problems from the start open and transparent to be able to solve them without wasting time. What are the next steps? fashion, pooling R.O. — We are currently finalising the design experiences to successfully aesthetics with Alstom and will go on to make complete the design.” our design choices by the end of 2017. At NS, we are also preparing maintenance and operational availability to assure a smooth introduction.

33 Activity report 2016/17 — ALSTOM SOLUTIONS

SIGNALLING Improving traffic flow

Alstom’s state-of- A CUSTOMER-FOCUSED POLICY Crossing borders the-art signalling From signalling to digital Growing demand for cross-border mobility mobility requires infrastructure manag- solutions allow operators Operators are constantly seeking new ers and train operators to provide the to ensure the highest ways to boost operating efficiency to best possible interoperability between rail standards in safe, offset growing demand for mobility networks. Alstom has risen to this key solutions. Alstom understands these challenge with Atlas, its ERTMS signal- seamless travel with challenges and has strengthened its ling and network management solution. urban and mainline range of signalling solutions through solutions that meet the innovative digital breakthroughs. This Operation under control specific needs of each has led to improvements in availability Alstom’s Iconis control centres allow (predictive maintenance technology and operators to improve traffic flow, operation environment. advanced asset/energy management), provide passengers with real-time infor- capacity (autonomous systems and mul- mation, manage infrastructure and ensure timodal network management solutions), security in stations and on trains. security (transport system protection Advanced monitoring and control against cyberattacks) and passenger functions can anticipate and deal with experience (Wi-Fi solutions through incidents on both urban and main lines, the acquisition of Nomad Digital). catering to local networks as effectively as nationwide services. SOLUTIONS Increased capacity in cities Optimising freight transport Urbalis 400 is already in service in For freight and mining railways, Alstom 15 countries around the world. provides ITCS, a GPS-based solution Alstom has built on this success particularly suited to challenging weather with Urbalis Fluence, a pioneering conditions, as well as a wide range train-centric CBTC system that features of trackside equipment and on-board on-board intelligence. The ATP system systems. Pegasus 101 meanwhile provides a solution tailored to the needs of tramways. Alstom has also launched the Optimet product range developed by Metrolab to improve the flow of trains and pas- sengers in metro systems. The range features innovative real-time video analysis to estimate platform traffic, along with visuals to assist connecting passengers.

ALSTOM — Activity report 2016/17 34 1. KEY FIGURES 38 ALSTOM’S MARKET SHARE IN ERTMS LEVEL 2 SIGNALLING SOLUTIONS IN SERVICE (KM EQUIVALENT) 2,000 KM OF METRO LINES EQUIPPED WITH URBALIS BY 2018 2. 100 ICONIS CONTROL CENTRES AROUND THE WORLD 50 MARKET SHARE FOR ON-BOARD WI-FI WORLDWIDE

3.

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

35 Activity report 2016/17 — ALSTOM SOLUTIONS Signalling

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

1. 2.

GROWTH IN SIGNALLING SOLUTIONS HAS MADE CYBERSECURITY AN INCREASINGLY IMPORTANT ISSUE, WHICH IS WHY ALSTOM CONTINUES TO STRENGTHEN ITS EXPERTISE IN THE FIELD.

ALSTOM — Activity report 2016/17 36 SERVICES Custom support

Alstom offers a A CUSTOMER-FOCUSED POLICY Long-term efficiency complete range of All transport operators need to strike Alstom provides preventive and corrective a balance between improving train maintenance in its own depots and those customised services availability and optimising maintenance of its customers for all types of train including maintenance, costs. To help them rise to the challenge, and rail infrastructure. The HealthHub modernisation, parts Alstom continues to build on its range predictive maintenance solution provides of services with a specific focus on a complete package combining the & repairs and support. collecting and analysing operating data expertise of local teams with the power All of which ensure to better schedule repairs. of digital technology. operators the highest level of availability for SOLUTIONS A new lease of life Well-planned operations The relatively long service life of railway their fleets, infrastructure Alstom factors in all service requirements equipment brings a need to anticipate and signalling systems. when designing its solutions to facilitate gradual upgrades to meet the latest maintenance operations throughout the passenger expectations, comply with product lifecycle and achieve cost sav- more stringent regulations, adapt to ings of 10-20%. Access to components new environmental concerns and offset is made easier and tasks optimised to the rising operating and maintenance ensure operators the highest standards in fleet availability. 

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

37 Activity report 2016/17 — ALSTOM SOLUTIONS Services

1. 2.

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

 costs of ageing fleets. Alstom provides its Custom support customers with modernisation solutions Alstom provides its customers with a that cover interior and exterior design, wide range of support services for fleet replacement of electronic components, operations including maintenance installation of more energy-efficient training courses, in-service energy sav- traction systems and more. The Group ing solutions, and the design and con- also offers modernisation solutions for struction of depots for all types of trains. infrastructure and signalling systems. Alstom also provides a customer service portal to simplify and facilitate access to Bespoke repair services its technical expertise, along with orders Through its centres of excellence and its for parts and training courses. experience as an OEM, Alstom provides parts and repair services for all types of 3. trains. Its online PartsFolio solution gives customers access to product catalogues and maintenance handbooks, allowing them to use the internet to place orders, request repairs or quotes, and track their order status.

ALSTOM CONTINUES TO IMPROVE THE FLEXIBILITY OF ITS SERVICE SOLUTIONS TO BETTER ADAPT TO THE NEEDS OF CUSTOMERS. IT IS ALSO DEVELOPING 3D PRINTING TO INCREASE THE SERVICE LIFE OF COMPONENTS USED ON THE OLDEST FLEETS STILL IN OPERATION.

ALSTOM — Activity report 2016/17 38 1.

KEY FIGURES 7,000 SERVICE EMPLOYEES 600,000 REFERENCED TRAIN PARTS 2.

1. TrainScanner, an automated diagnostics portal. 2. Testing 8,000 KM interior lights with digital tablet for Coradia Meridian. OF TRACK MAINTAINED 20 OF MAINTENANCE SERVICES FOR TRAINS NOT MADE BY ALSTOM

39 Activity report 2016/17 — ALSTOM SOLUTIONS

SYSTEMS Increasing efficiency

Drawing on its A CUSTOMER-FOCUSED POLICY Innovative infrastructure complementary business Demand for integrated systems is grow- Alstom develops innovative infrastructure ing as a result of their ability to provide solutions to reduce costs, accelerate lines, Alstom offers a comprehensive solution to complex delivery and improve the energy efficiency bundled and fully projects, especially in countries that are of urban transport projects. Shining integrated systems that only beginning to adopt a rail culture. examples of this approach include Alstom caters to this demand with solu- Appitrack (an automated track-laying include rolling stock, tions that build on proven technology and solution) and HAS sleepers (which reduce signalling, infrastructure offer extensive flexibility to meet specific noise and vibrations). The Group is also and services. This turnkey needs by reducing costs and construction breaking new ground in electrification with approach optimises times, optimising operations and lowering Hesop reversible substation (a solution maintenance costs. perfectly suited to urban environments project execution that recovers more than 99% of energy and transport system SOLUTIONS generated by trains during braking) and performance. High urban demand catenary free solutions (see inset). Integrated solutions already average 40% of the urban market and their popularity Electrification, tracks and is growing. In line with this trend, Alstom electromechanical equipment provides customers with two flexible, Alstom offers a wide array of engineer- integrated options, one specifically for ing solutions along with comprehensive tramways (Attractis) and one for metro and partial management of electrifica- systems (Axonis), along with a range of tion and track construction projects. The solutions that meet specific needs while Group’s wide-ranging experience gives it ensuring overall performance. the necessary know-how to produce and install all equipment relating to transport operations and safety, from signalling and passenger information to ticketing, tunnel safety systems and depot equip- ment for train maintenance.

WITH MORE THAN 10 INTEGRATED SYSTEMS PROJECTS UNDERWAY AROUND THE WORLD, ALSTOM CONTINUES TO CEMENT ITS POSITION AS A GLOBAL LEADER IN URBAN SOLUTIONS. TO BUILD ON THIS LEAD, THE GROUP CONTINUES TO INVEST IN NEW DIGITAL TECHNOLOGIES AND SIMULATION TOOLS.

ALSTOM — Activity report 2016/17 40 KEY FIGURES No.1 IN INTEGRATED URBAN SYSTEMS IN THE WORLD 1. 25 MILLION KILOMETERS OF ACTIVE SERVICE WITH APS 124 HESOP SUBSTATIONS SOLD WORLDWIDE

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

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

3.

41 Activity report 2016/17 — ALSTOM SOLUTIONS

In pictures State-of-the-art solutions

APTIS CORADIA iLint MASTRIA 100% ELECTRIC ZERO-EMISSION MULTIMODAL SOLUTION

With the new 100%-electric The new Coradia iLint Mastria is Alstom’s new mobility solution Aptis, Alstom regional train concept gives multimodal system, which aims offers local authorities a new operators a greener alternative to streamline urban transport solution for clean and efficient to combustion engines for management by improving transport. The tram-inspired vehicle non-electrified railway lines, capacity and fluidity.

features a 20 m² low-floor along its eliminating CO2 emissions and Mastria is designed to meet entire length to improve accessibility noise pollution. the current and future needs of and create a more comfortable, Powered by hydrogen fuel “smart cities” and can coordinate fluid passenger experience. cells, Coradia iLint produces all types of transport, from rail With a 360° view thanks to its only steam and condensed to road, while incorporating panoramic bay windows, Aptis water, and is extremely quiet. new mobility trends such as car offers 20% more glass surfaces Alstom is one of the first sharing and bicycles. than a bus. The innovative, manufacturers in the world to The system also uses predictive sustainable design ensures easy market a passenger train based analysis to optimise route maintenance, making Aptis the on this type of technology. planning. perfect solution for operators in terms of urban integration, performance and operating costs.

ALSTOM — Activity report 2016/17 42 3 COMMITMENTS A RESPONSIBLE COMPANY

43 Activity report 2016/17 — ALSTOM COMMITMENTS

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

STRIVING FOR EXCELLENCE purchases 60% of the products needed The needs of operators are changing. for its activities, it also empowers sup- Although capacity, reliability and safety pliers as part of its drive to achieve remain core concerns, operators’ deci- operational excellence by involving them sions are increasingly based on issues in the develo­pment of its products and such as lead times, cost of ownership, establishing Alstom Alliance partnerships quality and passenger experience. To rise (see inset) with key suppliers to reduce to these challenges, Alstom implements the cost of designing key train compo- initiatives that improve the quality and nents. competitiveness of its products and services with an unwavering focus on STANDARDISING excellence in execution. The entire range AND STREAMLINING of rolling stock platforms has been revi- Boosting operational performance also talised as part of a strategy to improve involves standardising products and ser- performance, costs and production vices, ensuring a flexible industrial organ- times. Examples of this revival include isation, improving project management, Citadis X05 tramway, the new genera- and pooling working methods and tools. tion of Metropolis metros and Coradia Alstom has introduced initiatives in each regional trains, and the high-speed train of these areas, including deployment Avelia Liberty. Continuous improvement of a single ERP1 system for all sites to also covers services (HealthHub pre- promote real-time collaborative work, dictive maintenance solution), systems along with digital development tools and (Attractis and Axonis) and infrastructure improved resource planning. (Hesop reversible substation and CLever catenary cantilevers). Since Alstom 1- Enterprise Resource Planning.

ALSTOM — Activity report 2016/17 44 NEARLY 40% COST OF NON-QUALITY Alstom supports OF EMPLOYEES IN 2020 DIVIDED BY 2 its suppliers will use the new ERP system in 4 years (2014-2017). at all Alstom sites worldwide. The Alstom Alliance programme unveiled in 2015 aims to create special partnerships between the Group and its key suppliers to help them grow, share innovations and develop key components together. The programme now includes -30% 35 suppliers and embodies REDUCTION IN LEAD TIMES Alstom’s commitment to better AND PRODUCTION COSTS serve its customers and their through the use of new digital design tools. passengers by offering mobility solutions that focus on quality, cost-effectiveness and reliability.

Co-constructing attractive solutions

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

45 Activity report 2016/17 — ALSTOM COMMITMENTS

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

A RESPONSIBLE EMPLOYER responsibilities. 6,000 employees received The health and safety of employees are training in 2016, with a focus on the Alert key priorities. They are an integral part of Procedure, which allows all employees to Alstom’s strategy. The Injury Frequency report compliance issues. Rate (IFR) was reduced to 1.4 in 20161 To promote employee empowerment, through initiatives implemented in line Alstom encourages entrepreneurial with the Zero Deviation plan and annual spirit and recognises individual and col- audits. Efforts are ongoing to achieve lective performance, notably through an an IFR of 1 by 2020, by which time all incentivising compensation policy, which existing sites will hold OHSAS 180012 included the allocation of free shares in accreditation. New sites will meet 2016. The drive to build a strong culture Alstom’s environment, health and safety is also reflected in the four aspects of standards at the time of construction. Alstom’s leadership model (entrepre- A health action plan will also be intro- neurship, collaboration, agility and global duced in the near future with a focus on vision) and in its support for diversity. awareness. With respect to gender balance, local Because the quality of its workforce initiatives to support women through is crucial to its success, Alstom conti­ training, improved access to manage- nues to roll out initiatives to attract ment positions and other measures were the most talented people and develop expanded in 2016. They now include their skills throughout their career. The tracking indicators in line with the goal World Class Engineering programme is of bringing the share of managerial and a good example, with its drive to iden- professional positions held by women to tify and grow technical expertise among 25% by 2020. In terms of cultural diver- Group employees. The programme has sity, Alstom is on its way to achieving helped build a community of more than its 2020 goal: the nationality of middle 350 master and senior-experts around management and the talent pool reflects the globe. the international scope of Alstom’s busi- ness activities. A STRONG CORPORATE CULTURE Alstom conducts its worldwide business operations with an uncompromising commitment to ethics and integrity. 1- Employees and contractors, representing one million hours worked. 1. Regular information campaigns help 2- Standard for occupational health make everyone more aware of these and safety management systems.

ALSTOM — Activity report 2016/17 46 An unwavering commitment to integrity

Alstom has one of the most advanced Ethics & Compliance policies among companies around the world. Its Code of Ethics defines a comprehensive, internationally recognised set of rules and procedures for relations with stakeholders including customers, suppliers, contractors and partners. Its Integrity Programme helps to clarify 140 these commitments for each employee NATIONALITIES through training, awareness-raising enhance Alstom’s and engagement, backed by a network cultural diversity. of more than 200 local ambassadors.

1 INJURY 1. Alstom workers test cables outside the train. 2. Alstom employee at the Savigliano site – Italy. FREQUENCY RATE among employees & contractors by 2020 (in number of injuries per million hours worked).

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

2.

47 Activity report 2016/17 — ALSTOM COMMITMENTS

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

SUSTAINABLE PRODUCTS is backed by regular tracking of envi- The environmental impact of transport ronmental performance indicators, chief is one of the greatest challenges facing among which is the energy consumption the world today. Alstom rises to that of sites and activities. The 2016 action challenge by designing rail solutions that plan helped Alstom meet its 2020 goal ensure solid environmental performance of a 10% reduction in the energy inten- throughout their lifecycle. It does so by sity of operations ahead of schedule in targeting energy efficiency, a reduction March 2017. Water consumption is also in noise and vibrations, the use of clean, the focus of ongoing efforts, as is the recyclable materials, reduced airborne drive to curb greenhouse gases and VOC3 emissions, and end-of-life product man- emissions. Alstom is aiming to keep its agement. As a result, trains designed waste recovery rate above 80% while today are up to 20% more efficient than reducing the amount of waste from its previous generations of rolling stock. activities by 10% by 2020. Alstom has committed to an additional 20% reduction in the energy consump- SUSTAINABLE SOURCING tion of its solutions by 20201. The Group Alstom is committed to implementing plans to meet this target through inno- responsible practices throughout the vation and collaboration, as embodied value chain for rail solutions, with all by its partnership with SNCF on the next suppliers required to sign its sustainable generation of high-speed trains. Alstom development charter. The Group is also also began a campaign to explore the involved in the Railsponsible industry ini- opportunities of the circular economy in tiative, which it chaired in 2016/17. The 2016, with a focus on the materials used initiative aims to encourage all indus- in train manufacturing and maintenance try suppliers to apply best practices in operations. terms of ethical, social, environmental and commercial performance. As part CLEAN OPERATIONS of this approach, any suppliers at risk of Alstom is actively pursuing environ- non-compliance are required to submit to mental certification for its sites around an assessment by an independent body. the world to help it run a tight ship in terms of the environmental impact of its activities. 40 manufacturing plants and regional centres2 had achieved ISO 14001 certification by the end of 1- Compared with 2014. 2- Local centres managing infrastructure 2016 – accreditation that will cover all projects, integrated systems and signalling. Alstom activities by 2020. The campaign 3- Volatile Organic Compounds.

ALSTOM — Activity report 2016/17 48 877 689

877 2014 2016 689

2014 2016 2014 2016 2014 2016 83% 88% 83% 88% 2014 2016 2014 2016 Bus or tramway? 11.6 10.5 11.6 10.5 -10% >80% In 2016, Alstom commissioned the TARGET 2020 TARGET 2020 independent research firm Carbone 4 Reduction in the energy intensity Increasing the waste recovery rate to conduct a comparative study of of permanent facilities (vs 2014), (vs 2014) while achieving a 10% greenhouse gases given off by trams with an energy action plan targeting reduction in waste production. and BRT systems on a 10 km route the 20 most energy-intensive sites. in Belgium. The findings showed (in kW/hour worked) that trams running on the line gave

off only half as much CO2 as their diesel-driven BRT counterpart, 30% less than a rechargeable hybrid BRT and 17% less than -10% an electric BRT. The integrated 877 TARGET tramway solution Attractis reduces 689 2020 infrastructure-related emissions Reduction in water consumption by a further 20% compared (vs 2014), especially in areas with a conventional tramway. of water stress. 2014 2016 (in thousands of cubic metres)

The Sydney sustainable tramway initiative

Sustainable development is a core feature of the project

2014 to build the Sydney2016 tramway. Sustainability covers a whole range of factors such as water supply and consumption, carbon footprint, energy efficiency and integration into the % % urban environment. Alstom’s project management approach 83 88 incorporates the full range of customer needs in terms of 2014 2016 products (Citadis X05 with permanent magnet motors to reduce energy consumption and Hesop substation to recover 99% of energy from braking), civil engineering (recycled materials) and social acceptance (communication with stakeholders). The project is currently under construction and 11.6 trams10.5 are due to begin operation on schedule in early 2019.

49 Activity report 2016/17 — ALSTOM COMMITMENTS

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

LOCAL INITIATIVES A COMMITTED FOUNDATION Alstom sites around the world implement The Alstom Foundation has been drawing projects to support local communities. on its expertise and network of resources These initiatives are guided by three pri- to support these local projects since orities. They enable targeted action to its inception 10 years ago. It actively meet local needs with respect to health, encourages and nurtures employee initi- living conditions and humanitarian aid atives to improve living conditions in local in the event of natural disasters. They communities near Alstom sites. Selected promote education through aid for projects are implemented with the help schools and students as well as techni- of local and international partners such cal partnerships with universities. They as NGOs, non-profit organisations and support economic development and local associations, which provide the Founda- industry through integration initiatives tion with the expertise needed to bring (apprenticeships), innovation financing projects to fruition. Alstom supported (venture capital funds for startups and 18 new projects worldwide in 2016, with collaborative research projects) and a focus on four key themes: economic backing for companies close to Alstom and social development, access to energy sites. To make these programmes more and water, environmental protection and effective, all countries in which Alstom access to mobility. employs more than 200 people intro- duced a structured action plan for their initiatives in 2016. They also appointed local representatives tasked with imple- menting and tracking projects. In Paita, a small fishing port in northern Peru, population growth has led to an increase in demand for teaching facilities, especially for children between the ages of two and six. In response, the Alstom Foundation is funding a project to build two new classrooms in the Lunita Paita infant school in 2017 to support education for younger children. There are also plans to install a greenhouse and drip-irrigation system on the premises to foster local economic development and save water.

ALSTOM — Activity report 2016/17 50 A mobile clinic in India

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

18 21 151 OUTREACH INITIATIVES COUNTRIES PROJECTS received Alstom Foundation in which Alstom employs more have been implemented support to improve living conditions than 200 people introduced in 52 countries since in local communities in 2016. a structured action plan to support the Alstom Foundation was local communities in 2016. established in 2007.

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

ACTIVITY REPORT 2016/17 www.activity-report.alstom.com

France, Europe, Middle East & Africa Alstom AT A REGISTRATION re Aert ee 2 ite ee rce eepoe 1 7 06 0 00

Latin America Alstom Avei ior ceo ore 10001 000 o o ri eepoe 11 612 70 00

Asia Pacific Alstom GLANCE DOCUMENT o66/02 y rie i r oor r ore 60 0 rt i eepoe 1 0 61 200

North America Alstom 61 eito Avee e or 10022 A eepoe 1 212 62 20 2016/17 2016/17 www.alstom.com 2016/17

@Alstom France, Europe, Middle East & Africa Alstom 48, rue Albert Dhalenne 93482 Saint-Ouen Cedex France Telephone: +33 1 57 06 90 00

Latin America Alstom Avenida Embaixador Macedo Soares, 10.001 05095-035 São Paulo - SP - Brazil Telephone: +55 11 3612 70 00

Asia Pacific Alstom No.66/02, Embassy Prime, B Wing 3rd Floor, C V Raman Nagar, Bangalore - 560 093 Karnataka - India Telephone: +91 80 4641 2400

North America Alstom 641 Lexington Avenue , NY 10022 USA Telephone: +1 212 692 5320 www.alstom.com