Frequently Asked Questions

What are Alstom’s activities?

Alstom is a global leader in power generation and rail infrastructure and sets the benchmark for innovative, environmentally friendly technologies. Alstom builds the fastest trains in the world and develops the broadest range of solutions in the rail industry, from tramways to locomotives. Alstom provides turnkey integrated power plants and associated services and equipment for a wide variety of energy sources, and offers extremely high-level technology solutions to eliminate pollutants and reduce emissions.

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How is Alstom organised?

Alstom Group is currently organised into two Sectors:

• Power Sector
• Transport Sector

Each Sector is managed by a President, who reports to our Chairman and Chief Executive Officer, and has a global responsibility in their domain.

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What are the activities of the Power Sector ?

The Power Sector designs, manufactures and supplies the broadest range of products and systems in the power generation industry for coal, gas, oil and biomass power plants. It also supplies wind and hydro equipment as well as conventional islands for nuclear power plants.

The Sector also provides a complete range of services, support and equipment to the thermal power generation industry on a global scale. The Sector has the widest range of services on offer, including:
• power plant management: tailored service packages including Operation and Maintenance (O&M) agreements for plants’ full life cycles;
• consulting and support: technical services, training, monitoring and diagnostics, performance analysis;
• performance improvement: modernisation, upgrades and lifetime extension;
• field service: outage management, field repairs, erection, commissioning, construction and supervision; and
• new spare parts, improved and reconditioned components. 
 

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What are the activities of the Transport Sector?

The Transport Sector serves the urban transit, the regional/intercity passenger travel markets and the freight markets all over the world with rail transport products, systems and services. Alstom designs, develops, manufactures, commissions and maintains trains, and develops and implements system solutions for rail control. It also designs and manages the creation of new railway lines, as well as offering customers maintenance and renovation programmes to keep their assets safe and productive. The Sector markets each of these as stand-alone offerings or combined within turnkey system solutions, according to each customer’s requirements.

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Where is Alstom present?

Alstom is an international organisation with sales and manufacturing operations on all five continents. The group has an established presence in over 70 countries and is represented by an International Network which coordinates its activities, by its Sectors, by their manufacturing sites and by the many projects the company undertakes.

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When does the fiscal year begin and terminate?

The fiscal year begins on 1st April and terminates on 31st March.

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Since when has the Alstom Group been listed on the stock exchange?

Alstom has been listed on the Paris Stock Exchange since 22nd June 1998. The Group has not been listed on the London Stock Exchange since the 17 November 2003, nor on the New York Stock Exchange since August 2004.

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What is an ordinary share?

An ordinary share represents part of the capital of a company. A share is a title of ownership and it therefore gives the shareholder rights, such as the right to information about the company, the right to vote in the Annual General Meeting and the right to dividends and liquidating dividends.

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What is a bearer share?

A bearer share is bought by a financial intermediary for its client. The holder of bearer shares is not registered on the books of the issuing company. The name and the number of shares of the holder are only known by the financial intermediary which manages their account.

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What is a registered share?

An Alstom direct registered share is registered at and managed by BNP Paribas Securities Services. An Alstom registered share is registered with Alstom, but it is managed by a financial intermediary chosen by the shareholder.

The holder of registered shares is registered on the books of the issuing company. Alstom’s register is maintained by BNP Paribas Securities Services. Alstom knows the names of all its registered shareholders and that allows Alstom to directly distribute all documentation. Alstom also attends to the management fees for holders of registered shares.

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What are the differences between bearer shares and registered shares?

Please click here for information...

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How can you transfer your bearer shares to the Alstom register?

In order to transfer your bearer shares to the Alstom register, you must contact our toll free number: 0 800 50 90 51 (from France) or shareholder services: +33 1 45 30 85 75 (from abroad). Click here to download a transfer form...

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What is the market value of a company?

The market value of a company is calculated by multiplying the number of shares by the market price of the share.

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What is the nominal value of a share?

The nominal value of a share is the value registered in the company's articles of association when issued. To calculate the share capital, we multiply the nominal value of the share by the number of shares. The nominal value does not correspond to the market share price.

The nominal value of the Alstom share is currently €7.

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What is the market share price?

The real value of a share is represented by the market share price, which evolves according to the sell and buy orders on the market.

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How many outstanding shares does Alstom have?

You will find the total number of outstanding shares in the Regulated Information section. Then Select "Monthly information regarding the total number of voting rights" theme.

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Where can I find the Alstom market share price?

You can find the Alstom market share price on our web site www.alstom.com. You can also contact our toll free number 0 800 50 90 51 (from France) or shareholder services: +33 1 45 30 85 75 (from abroad), select key 1. Historical data is available on the Euronext web site: http://www.euronext.com.

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What is the SRD?

SRD is the Differed Settlement Service launched by Euronext Paris. This service is supplied by financial intermediaries to their customers. The SRD service allows an investor to defer the settlement of their transactions to the end of the month.

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Are Alstom shares eligible for the SRD?

Yes, Alstom shares are eligible for the SRD.

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How to pass a buy or sell order with SRD?

To benefit from this service, you must pass an order stating « SRD ». Your financial intermediary is then free to accept or refuse to execute your SRD order.

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What is a bond?

A bond is a negotiable security representing a certificate of debt issued by a government or a corporation in order to raise funds, with a promise to repay the principal along with interest (coupons) on a specified date (maturity).

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How is a bond remunerated?

A bond is remunerated by fixed or floated interest. This interest is paid at regular intervals by the issuer.

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What is an ORA?

An ORA is a bond redeemable with shares.

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What is a convertible bond?

A convertible bond includes an option of conversion into shares. If the bond is not converted on expiry, it is redeemed in cash.

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What is an Ordinary Annual General Meeting?

The Ordinary Annual General Meeting is called by the company and shareholders are invited to attend. The subjects normally discussed include audited accounts, election of directors and the distribution of dividends. The AGM is the main opportunity for shareholders to be informed of the financial situation of the Company and to decide on the resolutions presented by exercising their voting rights.

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What is an Extraordinary General Meeting?

An Extraordinary General Meeting is called to take strategic decisions for the Company. The subjects discussed include financial operations such as merger/disposal, capital increase or modification of the company statutes.

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How can you vote at the Annual General Meeting?

You have three possibilities for voting for the resolutions at the Annual General Meeting:

• attending the Annual General Meeting and voting in person
• voting by mail
• voting by proxy

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How can you attend the Annual General Meeting?

To attend the Annual General Meeting, you must apply for an attendance card, which is required to be able to attend and vote at the meeting. In order to apply, you must cross Box A on the voting form which will be sent to you directly if you are an owner of registered shares. If you are an owner of bearer shares, you must request the form from your financial intermediary. Once completed, you must return the signed and dated form to:

• BNP Paribas Securities Services if you are an owner of registered shares
• the financial intermediary who manages your shares if you are an owner of bearer shares

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How can you vote by mail?

Owners of bearer shares can obtain the form for voting by mail from BNP Paribas Securities Services from the date that the Notice of Meeting is issued, by putting their request in writing. BNP Paribas Securities Services must receive the form at least the day before the Meeting at 3 p.m. (Paris time). You must fill in the form by crossing Box B and the corresponding option and sign it. The form must be returned to:

• BNP Paribas Securities Services if you are the owner of registered shares
• the financial intermediary who manages your shares if you are an owner of bearer shares

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How can you vote by proxy?

If you would like to be represented at the Annual General Meeting, you must fill in your voting form by crossing Box B and the corresponding option (giving your power to the president or a designated person). If you give your power to a designated person, fill in your representative's name and address. The form, dated and signed, must be returned to:

• BNP Paribas Securities Services if you are the owner of registered shares
• the financial intermediary who manages your shares if you are the owner of bearer shares.

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Who can be chosen as a proxy?

A shareholder can be represented by another shareholder or by his/her spouse.

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What is the quorum?

The quorum is the minimum number of voting rights required to hold a general meeting.

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What percentage quorum is required to hold an ordinary general meeting?

To hold an ordinary general meeting, a 20% quorum is required on first notice. In case of not reaching a quorum, the ordinary general meeting is held on 2nd notice, for which no quorum is required.

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What percentage quorum is required to hold an extraordinary general meeting?

To hold an extraordinary general meeting, a 25% quorum is required on first notice and a 20% quorum on 2nd notice.

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What are the majority rules to adopt the resolutions presented in the general meeting?

In an ordinary general meeting, the resolutions are adopted with the majority decision of attending or represented shareholders. In an extraordinary general meeting, the resolutions are adopted with a majority of two thirds of attending or represented shareholders.

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What is a public offering?

A public offering is a sollicitation which relates to the shares of companies that are quoted on the stock exchange. It can take different forms : OPA – a public offering to buy, OPE – a public offering to exchange, OPV – a public offering to sell.

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What is a capital increase?

A capital increase is a financial operation in which a company calls upon the market to find new funds and strengthen equity.

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What is a preferential subscription right?

The preferential subscription right is a right attached to the share. In case of capital increase, this right gives its holder a priority to subscribe to a number of new shares proportional to the number of shares that he/she holds. This right is tradable on the market. There is no obligation to exercise it and a shareholder can sell it.

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What is the level of capital gains tax in France?

In France, capital gains are taxed at 30.1% (tax of 18% + social deductions of 12.1%) if you sell shares for more than €25,730 within 2009 (€25,830 within 2010).

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What is the tax on dividends in France?

Dividends paid in 2008 to shareholders resident in France are included in the calculation base for income taxation, or, on option, to a standard tax rate of 18% + 12.1% of social deductions).
Dividends are first eligible for an allowance of 40% with no upper limit.
Then, a second allowance is applicable: €3,050 for a couple filing jointly or €1,525 for a single person, widowed, divorced or a couple filing separately.
After these two allowances, dividends are subject to the sliding income tax scale applicable to the year they are received.

Dividends are also subject to a tax credit equal to 50% of the amount of dividends before allowances are granted and capped annually at €230 for a couple filing jointly and at €115 for a single person, widowed, divorced or a couple filing separately.

Before allowances, dividends are subject to social deduction of  12.1%.

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What are the French taxes for bonds?

Gains from bonds can be:

• taxed at source (30.1% in 2009, including social deductions)
• taxed with other revenues

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