Artificial Intelligence
ALSTOM SA: Alstom 2019/20 full year results
Alstom 2019/20 full year resultsStrong commercial momentum with €9.9 billion of orders, consolidating an industry-leading backlog of €40.9 billionSales reaching €8.2 billion, at 2% growth (1% organic), including limited Covid-19 impact at year endContinued improvement of adjusted EBIT margin at 7.7%Alstom in Motion strategy deployed as planned in 2019/20Impact of Covid-19 crisis on 2020/21 to be further assessedObjective of 5% average annual sales growth over the period 2019/20 – 2022/23 should be slightly impacted, yet 2022/23 objectives of 9% aEBIT margin and above 80% FCF / Net income ratio confirmedStrong rail market fundamentals driven by sustainable transport needs12 May 2020 – Between 1 April 2019 and 31 March 2020, Alstom booked €9.9 billion of orders, consolidating an industry-leading backlog of €40.9 billion. Sales reached €8.2 billion. The book-to-bill ratio was strong at 1.2. The adjusted EBIT increased to €630 million, leading to an adjusted EBIT margin of 7.7%. Net income (from continued operations, group share) amounted to €446 million. 2019/20 fiscal year results are in line with the perspectives for the year set during Alstom’s Capital Markets Day last June, although impacted by the Covid-19 pandemic at year end.Alstom benefits from a very strong balance sheet. During fiscal year 2019/20, free cash flow amounted to €206 million. Net cash amounted to €1,178 million on 31 March 2020. Equity amounted to €3,328 million at 31 March 2020.In the context of the current crisis, and in a spirit of responsibility towards all its stakeholders, the Board of Directors, in its meeting of May 11, 2020, decided as an exceptional measure not to propose a dividend distribution at the next Shareholders’ meeting on July 8. Key figures 1 Previous year figures have not been restated to reflect the application of IFRS 16
2 aEBIT adjusted for CASCO contribution in both periods
3 Including impact linked to GE Energy JV put option valuation for €106m
4 Net income Group share, including discontinued operations, is provided in annex“This fiscal year was the first of our new strategy Alstom in Motion, which was launched last June and is now being deployed throughout the Group. Although considered a stabilisation year, Alstom enjoyed strong commercial momentum in a very dynamic railway market. We won major orders especially in Europe and in Asia-Pacific. In addition, we secured pioneering orders for our green mobility solutions, illustrating the potential of such technologies and the dynamism of the shift to carbon free transportation modes. The continuous improvement in our operational performance demonstrates the Group’s focus on profitable growth.
The end of the fiscal year was marked by the unprecedented Covid-19 crisis. Alstom considers the health and safety of its employees and stakeholders as its top priority during this period. We are confident for the resilience of Alstom’s business in the mid-term, given the fundamentals of the rail market and in particular, the need for greener mobility.” said Henri Poupart-Lafarge, Alstom Chairman and Chief Executive Officer.***
Covid-19 impact and Alstom responseAlstom responded to the crisis caused by the outbreak of Covid-19 by making the health and safety protection of its employees the priority and deploying measures in compliance with guidance from local and international authorities.The containment resulted in the reduction of activities in most production and maintenance facilities as from the end of the 2019/20 fiscal year. The impact on Alstom’s sales in this fiscal year 2019/20 is assessed to be c.€100 million, mostly on rolling stock due to the slowdown of sales recognition during the containment period, and to a lesser extent on services due to train traffic reduction. The identified inefficiencies and incremental costs impacting the cost of sales represent €24 million in fiscal year 2019/20.The Group has organized itself by putting in place crisis cells at all levels of the organization in order to deal with this unprecedented situation. To mitigate the impact of the temporary reduction of activities while keeping the capabilities to deliver its €40.9 billion backlog, the Group resorted to holiday and part-time work schemes starting March when regulations allow. A comprehensive operational, commercial, cost and cash mitigation plan has been defined and is being implemented. Alstom has started to slowly re-open most of its sites from end of April onwards when the necessary safety conditions were met, with progressive alignment with supply chain needed before partial restart of production early May. In addition, impact on commercial activities and market development is being closely monitored, with a potential delay on tenders.In addition, on top of its already available substantial amount of cash and cash equivalents, amounting to €2,175 million as of 31 March 2020, and of its undrawn €400 million Revolving Credit Facility (RCF), Alstom has taken additional actions to bolster its liquidity in the context of Covid-19. It secured in April 2020 a €1,750 million short term RCF with a 1-year maturity, a 6-month extension option at the borrower’s discretion and another 6-month extension at the lenders’ discretion. Liquidity resources stand at €2,575 million as of 31 March 2020 comprising €2,175 million in available cash and cash equivalents and €400 million of fully undrawn credit lines plus the additional €1,750 million under the new short term RCF put in place in April 2020.Beyond these internal measures, Alstom teams have been committed throughout the world to support the fight against the Covid-19 pandemic, for example by leveraging 3D technology to produce face shields and valves for respirators, and donating masks and other protective equipment to hospitals, local communities and suppliers. Alstom foundation’s budget will also increase from €1.5 to €1.9 million euros in 2020/21, partially funded by a decrease of the CEO and executive committee members’ remuneration this quarter.Strategic and business updateThis fiscal year 2019/20 is the first year of the Alstom in Motion strategy (AiM) announced by Alstom on June 24 2019, which sets a clear ambition: be the leading global innovative player for a sustainable and smart mobility by 2025. The Group is already progressing on the AiM priorities: 1. Growth by offering greater value to our customersThe Group booked €9,900 million of orders in the fiscal year 2019/20. This compares to the exceptional performance of €12,107 million orders last year, which included Avelia HorizonTM for SNCF and Montreal metro orders totalling €4.3 billion. The book-to-bill ratio was strong at 1.2.Alstom was awarded projects in both Urban and Mainlines segments mainly in Europe, notably additional very high speed trains in France, the renewal of metros of the Ile-de-France region and regional trains in Germany, including an order for iLintTM hydrogen trains, and in Asia Pacific with a combined supply of suburban trains and associated maintenance in Perth, Australia and the Sydney metro extension.In line with its AiM strategy, Alstom enjoyed an increase in orders in both Services and Signalling, which total 51% of the Group’s order intake in the fiscal year 2019/20. In Services, Alstom was awarded the 7-year contract to refurbish and maintain PendolinoTM for Avanti West Coast in the United Kingdom, the maintenance of lines 2 and 4 of the Santiago metro in Chile, as well as the maintenance operations associated with Rolling Stock orders in Perth, Australia and in Germany. In Signalling, commercial successes include the supply of ERTMS1 to the Paris-Lyon high-speed line, equipping 77 trains in Sweden with ERTMS onboard solutions, the automation of the Marseille metro as well as a service partnership for driverless train control system for the Circle Line in Singapore.Alstom’s backlog amounted to €40,903 million on 31 March 2020, providing strong visibility on future sales and representing the leading backlog in the industry.In the fiscal year 2019/20, Alstom’s total sales reached €8,201 million, up 2% (1% organically).Although manufacturing activity was impacted by Covid-19 containment measures during the last two weeks of the fiscal year, Rolling Stock sales reached €3,942 million (+14% organic) thanks to the sound execution of large high-speed and regional projects in France, Italy, the Netherlands and Germany, as well as very high speed in the United States. Both Signalling and Services sales amounted to 36% of Alstom sales with Signalling up by +13% organically at €1,489 million, mainly benefiting from on-going projects in India, Europe and AMECA region. Services sales reached €1,469 million, down moderately by 6% organically, due to fully traded contracts in the United States and one-off events last year in the UK, partially offset by other maintenance contracts ramp-up. In addition, services activities were slightly impacted at the end of the fiscal year with reduction of fleet utilisation following containment measures. Systems sales decreased to €1,301 million with an expected ramp-down on Dubai, Lusail and Riyadh systems projects and a fully delivered contract in Panama. 2. Innovation in smarter and greener mobility solutionsAlstom sustained its level of research and development (net costs) at €302 million, i.e. 3.7% of sales, for fiscal year 2019/20.Alstom strengthened its position as a leading actor in providing comprehensive alternative solutions to diesel pushing towards carbon neutrality. Alstom showed strong commercial momentum for green mobility solutions and now offers all types of traction systems on the market, as well as the full range of emission-free drives, from efficient electric motors to hydrogen fuel-cells and advanced battery traction. Alstom was awarded a second large order in Germany for its Coradia iLintTM hydrogen train, leading to a total of 41 sold trains and the completion of successful tests in Netherlands. In addition, Alstom was awarded its first contract for battery-electric regional trains in Germany for a total of 11 CoradiaTM Continental electric regional trains in order to bridge the 80 kilometres of non-electrified line between the cities of Chemnitz and Leipzig. The new AptisTM electric bus has also been sold to five French cities (Paris, La Rochelle, Toulon, Strasbourg and Grenoble) with the first delivery made in January 2020 in Strasbourg, and first commercial success in Spain. Facing mobility evolutions, transport operators are increasingly looking for digital solutions to improve their financial and operational performance. Aware of this trend, Alstom provided a predictive analytics solution to Panama metro operators which improved the “fail to board” by +30% during peak hours thanks to artificial intelligence. In addition, Alstom finalized the co-development of a railway system simulator with the start-up Cosmotech which enables, in tender phase, to simulate energy efficiency and punctuality of a metro system. In September 2019, a new version of Alstom’s Atlas™ European Train Control System (ETCS) has entered service on the Wuppertal suspension railway (“Wuppertaler Schwebebahn”) in Germany. This project represents the very first application of ERTMS Level 3 in which train location and integrity are solely supervised by the ETCS equipment onboard the train, hence sparing wayside equipment. It consolidates Alstom’s position as a leading player in digital signalling. 3. Efficiency powered by digitalIn the fiscal year 2019/20 Alstom’s adjusted EBIT reached €630 million, equivalent to an adjusted EBIT margin of 7.7%, as compared to €606 million and 7.5% in the previous fiscal year. The improved operational performance was driven by an increase in revenue combined with industrial efficiency.In line with AiM efficiency strategy, Alstom moved forward during this year in its business process digitization roadmap with 80% of the group turnover being covered by a group core model SAP solution. The Covid-19 containment measures also showed the digital agility and resiliency of the Group: within a few days, thousands of engineers were able to access very demanding software solutions from home ensuring quasi-complete continuity of engineering.Alstom is enlarging its Best Cost Country and regional footprint, with the inauguration of its Alstom Ubunye factory in South Africa in October 2019. A significant investment has been made in upskilling employees and installing state-of-the-art equipment such as advanced robot technology. Through the modernisation of Alstom Ubunye, Alstom has established an African rail company with local partners, creating a stronger industrial and commercial base and preparing to serve the increasing demand for rail innovation in Africa.Finally, Alstom accelerated its Engineering footprint optimisation with 24% of the Engineering workload executed in India in 2019/20, compared to a 30% objective for 2022/23.Net Income from continued operations (group share) reached €446 million compared to €433 million the previous year, which had several one-off items, of which €106 million linked to the General Electric joint venture transaction.Earnings per share from continued operations reached €1.99 in fiscal year 2019/20. 4. One Alstom team, agile, inclusive and responsibleGreen and smart mobility, encouraged by customer and passenger expectations, is leading to a transformation of the market. Already recognised as an industrial reference in this domain, Alstom’s mission is to support the transition towards sustainable transport systems by offering innovative solutions that are efficient throughout their entire life cycle.As part of its climate strategy, Alstom has continued to progress in achieving its environmental targets set as part of the AiM strategy:On the way to reaching 25% reduction of energy consumption in its solutions by 20252, Alstom progressed to 20% as of March 2020 (compared to 17% last year),Alstom has increased its newly developed solutions with eco-design to 25% in March 2020, with the objective to reach 100% in 2025,Finally, Alstom secured 36% share of electricity from renewable sources in its operations, with a target to reach 100% by 2025.In addition, Alstom is focused on the implementation of its AiM initiatives related to corporate social responsibility, and has been attributed three important recognitions during the fiscal year 2019/20:In June 2019, after becoming the first French company to obtain the AFAQ ISO 37001 Anti-bribery certification for France and Europe in 2017, followed by Asia-Pacific in 2018, Alstom obtained certification for its countries of operation in the regions of North America, Middle East & Africa and Latin America.In September 2019, Alstom was included in the Dow Jones Sustainability Indices (DJSI) World and Europe for the ninth consecutive year and is now in the 4th percentile of the ranking, attesting to its leading position in sustainable business practices.In January 2020, Alstom was certified as a Top Employer Europe by the Top Employers Institute in six countries: France, Spain, Italy, Poland, Belgium and UK.***Bombardier acquisition update and indicative timetableAlstom announced on February 17, 2020 that it had signed a Memorandum of Understanding with Bombardier Inc. and Caisse de dépôt et placement du Québec (“CDPQ”) in view of the acquisition of Bombardier Transportation.Alstom’s unions indicated they will render their opinion around summer 2020 on the proposed takeover of Bombardier Transportation, according to the “method agreement” reached with management. An EGM vote on the reserved capital increases to CDPQ and Bombardier Inc. and the rights issue should take place no later than October 31, 2020. Subject to the EGM approval, rights issue will take place between the second semester 2020 and first semester 2021, subject to market conditions, and the reserved capital increases will take place at closing. The syndication of €2.4 billion of Bridge Facilities and a new €1.5 billion Revolving Credit Facility related to the proposed acquisition of Bombardier was completed in April 2020 as planned. The transaction will also be subject to clearance from relevant regulatory authorities and anti-trust authorities. Closing is expected in the first half of 2021.***
Solid balance sheetDuring the fiscal year 2019/20, the Group free cash flow was positive at €206 million, impacted as expected by an increase in inventories resulting from the ramp up of large Rolling Stock projects and benefiting from solid project execution and delivery.The Group had available cash and cash equivalents amounting to €2,175 million as of 31 March 2020. Alstom bond debt amounted to €700m as end of March 2020 after having successfully carried out the issuance of a 7-year €700 million senior unsecured Eurobond at a fixed coupon of 0.25% and reimbursed at maturity a €596 million bond as end of March 2020 and a €283 million bond as end of July 2019.In April 2020, Alstom secured a €1,750 million short term Revolving Credit Facility (RCF) with a 1-year maturity, a 6-month extension option at the borrower’s discretion and another 6-month extension at the lenders’ discretion. This additional RCF aims at stepping in for Alstom’s €1 billion Negotiable European Commercial Paper programme, should the Commercial Papers market no longer be accessible, in addition to providing an extra liquidity buffer.These actions substantially bolster the Company’s already strong liquidity in the context of Covid-19. Liquidity resources stand at €2,575 million as of 31 March 2020 comprising €2,175 million in available cash and cash equivalents and €400 million of fully undrawn credit lines plus the additional €1,750 million under the new short term RCF put in place in April 2020.Alstom net cash amounted to €1,178 million on 31 March 2020, compared to €2,325 million on 31 March 2019. Finally, equity stood at €3,328 million at 31 March 2020, compared to €4,159 million on 31 March 2019, in particular as a result of the dividend distribution in July 2019.
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DividendIn the context of the current crisis, and in a spirit of responsibility towards all its stakeholders, the Board of Directors, in its meeting of May 11, 2020, decided as an exceptional measure not to propose a dividend distribution at the next Shareholders’ meeting on July 8.Alstom would like to point out, however, that this decision is not due to a lack of liquidity.
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Outlook in the context of the Covid-19 pandemicIn 2019/20, Alstom has fully deployed its Alstom in Motion (AiM) strategic plan in order to progressively deliver revenues and margin growth in line with the objectives set in the context of AiM for 2022/23.However, the Covid-19 crisis is likely to affect negatively the financial performance of the fiscal year 2020/21, including order intake, net income, free cash flow and sales, though it is not possible today to assess precisely its impact.While a partial restart of production is on-going as of May 12, the Group cannot predict the shape and timing of a recovery during 2020/21 as it depends on the further development of the Covid-19 crisis, the duration of containment measures and the intensity of the economic downturn and market response. After the current crisis, the Group expects a fast recovery of the rail market, sustained by strong fundamentals and the increasing demand for sustainable mobility.In this context, the objective of a 5% average annual growth rate over the period 2019/20-2022/23 should be slightly impacted by the temporary slowdown of tender activity, yet the 2022/23 objectives of 9% aEBIT margin and of a conversion from net income to free cash flow above 80% are confirmed.With a strong liquidity position, a demonstrated ability to deliver execution and profitability and the rapid launch of a cost and cash mitigation plan, the Group is confident in its capacity to weather the crisis as well as to capture opportunities in a resilient rail market and contribute to the transition towards sustainable transport systems.The management report and the consolidated financial statements, as approved by the Board of Directors, in its meeting held on 11 May 2020, are available on Alstom’s website at www.alstom.com. These financial statements were audited by the Statutory Auditors whose certification report is in the process of being issued.In accordance with AFEP-MEDEF recommendations, information related to the remuneration of Alstom‘s Executive Officer is available on Alstom’s website: www.alstom.com, under About us/Corporate Governance/Compensation of Executive Officers.This press release contains forward-looking statements which are based on current plans and forecasts of Alstom’s management. Such forward-looking statements are relevant to the current scope of activity and are by their nature subject to a number of important risks and uncertainty factors (such as those described in the documents filed by Alstom with the French AMF) that could cause actual results to differ from 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 new information, future events or otherwise.This press release does not constitute or form part of a prospectus or any offer or invitation for the sale or issue of, or any offer or inducement to purchase or subscribe for, or any solicitation of any offer to purchase or subscribe for any shares or other securities in the Company in France, the United Kingdom, the United States or any other jurisdiction. Any offer of the Company’s securities may only be made in France pursuant to a prospectus having received the visa from the AMF or, outside France, pursuant to an offering document prepared for such purpose. No public offering is contemplated in jurisdiction outside France. The information does not constitute any form of commitment on the part of the Company or any other person. Neither the information nor any other written or oral information made available to any recipient or its advisers will form the basis of any contract or commitment whatsoever. In particular, in furnishing the information, the Company, the Banks, their affiliates, shareholders, and their respective directors, officers, advisers, employees or representatives undertake no obligation to provide the recipient with access to any additional information.
APPENDIX 1A – GEOGRAPHIC BREAKDOWN
APPENDIX 1B – PRODUCT BREAKDOWN
APPENDIX 2 – INCOME STATEMENT*Previous year figures have not been restated to reflect the application of IFRS 16
**aEBIT adjusted for CASCO contribution in both periods Casco JV share of net income for both periods: €36m in 2018/19 and €38m in 2019/20
***Of which GE Energy JV put option valuation impact for €106m in 2018/19
****Mostly linked to GE Energy JV transaction
***** Variation YoY not reflecting Alstom’s transport core business, explains why this indicator is in annex and not a “key figure”APPENDIX 3 – FREE CASH FLOW* Previous year figures have not been restated to reflect the application of IFRS 16
The Group adopted IFRS 16 “Leases” on 1 April 2019, according to the simplified retrospective approach, without restatement of prior period comparatives. Annual amortization related to the new right-of-use asset amounts to €92 million for the year ended 31 March 2020. The total impact of the IFRS16 lease implementation to the Free Cash Flow reported aggregate is estimated at €84 million over the period (refer to note 2.2.1 “IFRS16 Lease”)APPENDIX 4 – NON-GAAP FINANCIAL INDICATORS DEFINITIONSThis section presents financial indicators used by the Group that are not defined by accounting standard setters.Orders receivedA new order is recognised as an order received only when the contract creates enforceable obligations between the Group and its customer.
When this condition is met, the order is recognised at the contract value.
If the contract is denominated in a currency other than the functional currency of the reporting unit, the Group requires the immediate elimination of currency exposure using forward currency sales. Orders are then measured using the spot rate at inception of hedging instruments.Order backlogOrder backlog represents sales not yet recognised from orders already received. Order backlog at the end of a financial year is computed as follows:order backlog at the beginning of the year;plus new orders received during the year;less cancellations of orders recorded during the year;less sales recognised during the year.The order backlog is also subject to changes in the scope of consolidation, contract price adjustments and foreign currency translation effects.
Order backlog corresponds to the transaction price allocated to the remaining performance obligations, as per IFRS 15 quantitative and qualitative disclosures requirement.Book-to-BillThe book-to-bill ratio is the ratio of orders received to the amount of sales traded for a specific periodAdjusted EBITWhen Alstom’s new organisation was implemented in 2015, adjusted EBIT (“aEBIT”) became the Key Performance Indicator to present the level of recurring operational performance. This indicator is also aligned with market practice and comparable to direct competitors.Starting September 2019, Alstom has opted for the inclusion of the share in net income of the equity-accounted investments into the aEBIT when these are considered to be part of the operating activities of the Group (because there are significant operational flows and/or common project execution with these entities), namely the CASCO Joint Venture. The company believes that bringing visibility over a key contributor to the Alstom signalling strategy will provide a fairer and more accurate picture of the overall commercial & operational performance of the Group. This change will also enable more comparability with what similar market players define as being part of their main non-GAAP ‘profit’ aggregate disclosure.aEBIT corresponds to Earning Before Interests and Tax adjusted for the following elements:net restructuring expenses (including rationalization costs);tangibles and intangibles impairment;capital gains or loss/revaluation on investments disposals or controls changes of an entity;any other non-recurring items, such as some costs incurred to realize business combinations and amortisation of an asset exclusively valued in the context of business combination as well as litigation costs that have arisen outside the ordinary course of business;and including the share in net income of the operational equity-accounted investments.A non-recurring item is a “one-off” exceptional item that is not supposed to occur again in following years and that is significant.Adjusted EBIT margin corresponds to Adjusted EBIT in percentage of sales.The non-GAAP measure adjusted EBIT (aEBIT hereafter) indicator reconciles with the GAAP measure EBIT as follows:*aEBIT adjusted for CASCO contribution in both periods
** Previous year figures have not been restated to reflect the application of IFRS 16Free cash flowFree cash flow is defined as net cash provided by operating activities less capital expenditures including capitalised development costs, net of proceeds from disposals of tangible and intangible assets. In particular, free cash flow does not include any proceeds from disposals of activity.
The most directly comparable financial measure to free cash flow calculated and presented in accordance with IFRS is net cash provided by operating activities.A reconciliation of free cash flow and net cash provided by operating activities is presented below:* Previous year figures have not been restated to reflect the application of IFRS 16Alstom uses the free cash flow both for internal analysis purposes as well as for external communication as the Group believes it provides accurate insight regarding the actual amount of cash generated or used by operations.Net cash/(debt)The net cash/(debt) is defined as cash and cash equivalents, other current financial assets and non-current financial assets directly associated to liabilities included in financial debt, less financial debt.Due to IFRS 16 implementation at 1 April 2019, the Group has chosen to exclude lease obligations from the net cash/(debt) which results in a change in net cash/(debt) of €(15)m at IFRS 16 first application. From 1 April 2019, the net cash/(debt) is defined as cash and cash equivalents, marketable securities and other current financial asset, less borrowings. Previous year figures have not been restated to reflect the application of IFRS 16. As of Mars 31 2020, impact of the leasing obligations on financial debt amounts to €419m.Organic basisFigures given on an organic basis eliminate the impact of changes in scope of consolidation and changes resulting from the translation of the accounts into Euro following the variation of foreign currencies against the Euro. The Group uses figures prepared on an organic basis both for internal analysis and for external communication, as it believes they provide means to analyse and explain variations from one period to another. However, these figures are not measurements of performance under IFRS.* Previous year figures have not been restated to reflect the application of IFRS 161 European Rail Traffic Management System
2 compared to 2014 levelAttachment2020 05 12 PR FY 2019-20
Artificial Intelligence
ADQ Appoints Modon as Master Developer for Ras El Hekma Megaproject in Egypt
In the presence of Mohamed bin Zayed Al Nahyan and Abdel Fattah El-Sisi
The event marked the signing of several significant agreements aimed at driving the development of the new destinationABU DHABI, UAE, Oct. 4, 2024 /PRNewswire/ — In the presence of President His Highness Sheikh Mohamed bin Zayed Al Nahyan, and His Excellency Abdel Fattah El-Sisi, President of the Arab Republic of Egypt, ADQ, an Abu Dhabi-based investment and holding company, appointed Modon Holding PSC as the master developer for the Ras El Hekma megaproject.
In addition to being master developer for the entire development spanning 170 million square metres, Modon Holding will undertake the responsibility of the developer role for the first phase of the envisaged city consisting of 50 million square metres.
The remaining 120 million square metres, which are part of the master plan presented by Modon Holding, will be developed in partnership with prominent developers from Egypt, the UAE, and the international community under the oversight of the recently established ADQ subsidiary Ras El Hekma Urban Development Project Company and Modon Holding.
This iconic project represents a major milestone for Modon Holding by significantly increasing its land under development outside the UAE. Ras El Hekma is located around 350 kilometres northwest of Cairo and envisioned as a fully functional, smart, sustainable, and inclusive urban community situated against the scenic coastline.
The project is expected to become a powerful economic engine, with cumulative investments anticipated to reach US$110 billion by 2045, an annual GDP contribution of around US$25 billion, and approximately 750,000 jobs to be created, both directly and indirectly.
Upon completion, the development will be home to two million people and feature more than 40 kilometres of green spines, set to make Ras El Hekma the greenest megaproject in the region.
As a result of Ras El Hekma’s location within a four-hour flight for over 400 million outbound tourists, the establishment of tourism infrastructure will be a priority during the first phases of the development, encompassing an international airport as well as high-speed rail connectivity. The masterplan also includes residential areas, office spaces, hospitality venues, retail, leisure, and recreation facilities.
Ras El Hekma will have an international marina and a special free zone. Additionally, Modon Holding will look to develop infrastructure to support a range of high-growth industries, including business services, financial services, light manufacturing, and technology.
His Excellency Jassem Mohamed Bu Ataba Al Zaabi, Chairman of Modon Holding, said, “Ras El Hekma is destined to become a regional crown jewel in a country already famed for its rich and diverse attractions. Modon Holding is proud to bring this 170-million-square-metre visionary megaproject to life, leveraging our expertise and innovative approach. With our partners, we are poised to transform Ras El Hekma into a dynamic economic powerhouse and a global model for urban development.”
His Excellency Mohamed Hassan Alsuwaidi, Managing Director and Group Chief Executive Officer of ADQ, said, “As a project of unprecedented scale and impact, Ras El Hekma will be a catalyst for the development of Egypt’s economy by offering opportunities for businesses and stimulate tourism. Modon Holding brings a wealth of expertise in master planning and will pioneer state-of-the-art, innovative solutions, creating a destination that will deliver long-term value for Egypt and its people.”
Bill O’Regan, Group CEO of Modon Holding, said, “The Ras El Hekma destination is one of the Group’s most significant investment and development projects outside the UAE. The project provides an incredible development pipeline, and Modon Holding looks forward to delivering a destination that will be an exceptional experience for visitors and residents alike.”
During the ceremony, Modon Holding PSC engaged with the initial major partners to join in the development of the Ras El Hekma megaproject on Egypt’s stunning Mediterranean coast.
Ras El Hekma is set to become a leading urban and tourist hub, boasting a wide array of attractions and amenities. Modon Holding aims to harness its large-scale development expertise, collaborating with local, regional, and global partners to bring this visionary destination masterplan to life.
These collaborative efforts, combined with a focus on diverse entertainment, sports, cultural events, and top-tier community management, will position Ras El Hekma as a premier Mediterranean destination.
While the immediate focus is on tourism and hospitality, Modon’s long-term vision for the 170-square-metre site also includes business services, financial services, light manufacturing, and technology.
Modon Engages First Batch of Investors and Partners in Landmark Ceremony
On 4th October, in a momentous ceremony attended by President His Highness Sheikh Mohamed bin Zayed Al Nahyan and Egyptian President His Excellency Abdel Fattah El-Sisi, Modon proudly initiated the engagement of its first group of investors and partners.
The event marked the signing of several significant agreements aimed at driving the development of the new destination:
– A framework agreement with Orascom Construction, designating them as one of the primary contractors for the initial phase of the project.
– A memorandum of understanding with Elsewedy Electric to explore opportunities for supplying building materials and collaborating on industrial parks, manufacturing, operations, and maintenance.
– A memorandum of understanding with Abu Dhabi Airports to collaborate in airport strategic planning, design, development, and operational support.
– A memorandum of understanding with TAQA to explore cooperation opportunities in relation to the development, financing, and operation of greenfield utilities infrastructure projects, water desalination projects, electricity transmission and distribution projects and wastewater projects.
– A memorandum of understanding with Valderrama for the development and operation of golf communities.
– A memorandum of understanding with e& Egypt to facilitate the design and implementation of smart city infrastructure, including digital connectivity, fiber networks, and 5G; smart building technologies and IoT-enabled solutions for residential and commercial properties; city-wide data collection, monitoring, and analytics systems; smart utilities, encompassing automated energy management, water, and waste systems; smart transportation systems; and any other mutually agreed smart city services.
– A memorandum of understanding with Candy International aims to explore luxury real estate development opportunities, leveraging Candy’s extensive international reach.
– A memorandum of understanding with Montage International for the development and management of luxury hotels in Ras El Hekma.
– A memorandum of understanding with Accor and Ennismore to operate hotels and resorts in Ras El Hekma.
– Finally, a memorandum of understanding with Burjeel Holding to develop multi-specialty healthcare facilities, implement innovative healthcare solutions, provide medical training programmes, and collaborate on public health initiatives and community wellness programmes.
These strategic partnerships underscore Modon’s commitment to creating a world-class destination, fostering innovation, and enhancing the quality of life for Ras El Hekma’s future residents.
His Excellency Jassem Mohamed Bu Ataba Al Zaabi, said, “Ras El Hekma represents a visionary and multifaceted endeavour that promises to make a substantial contribution to the Egyptian economy. Crafting a masterplan of such scale demands specialised expertise and capabilities across diverse industries, which can only be realised through robust strategic partnerships. We look forward to working with our partners present and future in harnessing the full potential of this extraordinary location.”
Bill O’Regan, said, “Ras El Hekma is an extraordinarily ambitious and complex project that will significantly contribute to the Egyptian economy through various stages of planning, design, and construction, ultimately bringing this new destination to life. Developing and delivering a masterplan of this magnitude requires sector-specific expertise and capabilities across a wide range of industries and is achievable only through strong strategic partnerships.”
About ADQEstablished in 2018, ADQ is an Abu Dhabi-based investment and holding company with a broad portfolio of major enterprises. Its investments span key sectors of the UAE’s diversified economy including energy and utilities, food and agriculture, healthcare and life sciences, and transport and logistics, amongst others. As a strategic partner to the Government of Abu Dhabi, ADQ is committed to accelerating the transformation of the Emirate into a globally competitive and knowledge-based economy.
For more information, visit adq.ae or write to [email protected]. You can also follow ADQ on Instagram, LinkedIn and X.
About Modon HoldingModon develops vibrant communities, unique hospitality and lifestyle experiences, and world-class sports facilities. Based in Abu Dhabi, Modon Holding is a Private Joint Stock company listed on the ADX Growth Market with the shareholding of ADQ and the IHC Group being our majority shareholders. Through a diversified business portfolio in the UAE, we are engaged in strategic investment and innovation on an unrivalled scale, shaping future smart living. Our goal is to deliver long-term, sustainable value, laying the foundations for intelligent, connected living.
Ras El-Hekma Urban Development Project CompanyA wholly owned subsidiary of ADQ, an Abu Dhabi-based investment and holding company, Ras El Hikma Urban Development Project Company S.A.E. (RED) is mandated to oversee the execution of the Ras El Hekma project, a 170 million square meter visionary megacity located on Egypt’s north coast. Established in March 2024 and based in Egypt, RED holds the ownership rights of the Ras El-Hekma as well as responsibility for the implementation of the multi-phase project together with its partners, which include Modon Holding as the master developer.
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Artificial Intelligence
Electronic Access Control Systems Market Set for Significant Expansion, with Projected Growth to USD 16 Billion by 2031: Market Research Intellect
The Electronic Access Control System market is driven by increasing security concerns and advancements in technology. As businesses and institutions face growing threats, there is a rising demand for sophisticated access control solutions to protect assets and data. Technological innovations, including biometrics, IoT integration, and cloud-based systems, enhance system functionality and appeal. Additionally, the trend toward smart buildings and stringent regulatory requirements further fuels the market’s expansion, reflecting a broadening need for advanced security solutions.
LEWES, Del., Oct. 4, 2024 /PRNewswire/ — The Electronic Access Control System market is projected to grow from approximately USD 10 billion in 2024 to USD 16 billion by 2031, achieving a compound annual growth rate (CAGR) of around 7.5%. This growth is driven by rising security needs, advancements in technology, and increased adoption of smart and connected security solutions across various sectors.
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202 – Pages126 – Tables37 – Figures
Scope Of The Report
REPORT ATTRIBUTES
DETAILS
STUDY PERIOD
2020-2031
BASE YEAR
2023
FORECAST PERIOD
2024-2031
HISTORICAL PERIOD
2020-2023
UNIT
Value (USD Billion)
KEY COMPANIES PROFILED
Honeywell International Inc., Johnson Controls International plc, ASSA ABLOY Group, Allegion plc, Schlage (a brand of Allegion), Bosch Security Systems, Tyco International Ltd., and HID Global (an ASSA ABLOY Group brand).
SEGMENTS COVERED
By Type, By Application And By Geography
CUSTOMIZATION SCOPE
Free report customization (equivalent to up to 4 analyst working days) with purchase. Addition or alteration to country, regional & segment scope
Electronic Access Control System Market Overview
Market Size and Growth:The Electronic Access Control System market is experiencing robust growth, expected to expand from approximately USD 10 billion in 2024 to USD 16 billion by 2031, representing a compound annual growth rate (CAGR) of about 7.5%. This growth trajectory is driven by the increasing need for enhanced security solutions across various sectors, including commercial, residential, and industrial applications. The rising concerns over security breaches and unauthorized access are prompting organizations to invest in advanced access control technologies. Additionally, the growing adoption of smart buildings and connected infrastructure contributes to the market’s expansion, as these technologies offer more efficient and scalable security solutions. As the demand for higher security standards continues to rise, the EACS market is poised for substantial growth in the coming years.Technological Advancements:The EACS market is significantly influenced by rapid technological advancements. Innovations such as biometric authentication, including fingerprint and facial recognition, are enhancing the capabilities of access control systems, providing more secure and user-friendly solutions. The integration of Internet of Things (IoT) technology allows for remote monitoring and management of access control systems, increasing their flexibility and effectiveness. Cloud-based solutions are also gaining traction, offering scalable and cost-effective options for businesses of all sizes. These technological advancements not only improve security but also streamline system management and integration with other smart technologies. As the technology continues to evolve, the EACS market is expected to benefit from more sophisticated, efficient, and adaptable access control solutions that meet the growing demands for security and convenience.Market Drivers:The primary drivers of the EACS market include heightened security concerns and the need for compliance with regulatory standards. Organizations across various sectors are increasingly investing in advanced access control solutions to safeguard their assets, sensitive information, and personnel. The growing frequency of security breaches and unauthorized access incidents further amplifies the need for reliable and robust security systems. Additionally, the trend toward smart buildings and the integration of IoT technology are driving market growth by offering more sophisticated and interconnected security solutions. Regulatory requirements related to data protection and physical security are also influencing the adoption of EACS, as businesses seek to meet these standards while ensuring the safety and security of their operations.Regional Insights:The EACS market shows varying growth patterns across different regions. North America and Europe lead the market due to their high adoption rates of advanced security technologies and stringent regulatory requirements. In these regions, the emphasis on high-security standards and the presence of major market players contribute to significant market growth. Conversely, the Asia-Pacific region is emerging as a key growth area due to rapid urbanization, industrialization, and increasing investments in infrastructure development. Countries such as China and India are witnessing a surge in demand for electronic access control systems as they modernize their infrastructure and enhance security measures. The diverse regional dynamics reflect varying levels of market maturity and growth opportunities, influencing the overall global market landscape.Download Sample Report Now: https://www.marketresearchintellect.com/download-sample/?rid=194769Market Segmentation:The EACS market can be segmented based on type, application, and technology. Key types include biometric systems, card-based systems, and electronic locks. Biometric systems are gaining popularity for their high security and convenience, while card-based systems remain widely used due to their affordability and ease of integration. Electronic locks offer versatile security options for both residential and commercial applications. In terms of application, the market serves commercial buildings, residential complexes, government facilities, and industrial sites. Each segment has unique requirements and preferences, driving the development of specialized solutions. Technology-wise, advancements such as IoT integration, cloud-based systems, and mobile access are shaping the market, offering improved functionality and user experience. Understanding these segments helps stakeholders tailor their offerings to meet diverse market needs effectively.Challenges:Despite its growth, the EACS market faces several challenges. High initial investment costs can deter small and medium-sized enterprises (SMEs) from adopting advanced access control solutions. Integration complexities, particularly with existing security infrastructure, can also pose hurdles for implementation. Additionally, concerns about data privacy and cybersecurity risks associated with connected systems may affect market adoption. The rapid pace of technological advancements requires continuous updates and upgrades, adding to the cost and complexity of maintaining access control systems. Addressing these challenges involves developing cost-effective solutions, enhancing system compatibility, and ensuring robust cybersecurity measures. Overcoming these obstacles is crucial for market players to successfully expand their customer base and capture emerging opportunities in the evolving security landscape.Competitive Landscape:The EACS market is characterized by intense competition, with numerous players vying for market share. Major companies include Honeywell, Johnson Controls, ASSA ABLOY, and Allegion, each offering a range of innovative products and solutions. These players focus on technological advancements, strategic partnerships, and mergers and acquisitions to strengthen their market positions. Additionally, emerging players and startups are introducing novel solutions, contributing to market dynamism and innovation. Competitive strategies involve differentiating products through advanced features, improving customer service, and expanding distribution channels. As the market evolves, companies must stay ahead of technological trends and customer demands to maintain a competitive edge and drive growth in a rapidly changing environment.Future Outlook:The future outlook for the EACS market is promising, with continued growth expected as security concerns and technological advancements drive demand. Emerging trends such as the integration of artificial intelligence (AI) and machine learning are likely to enhance system capabilities, providing more proactive and intelligent security solutions. The growing emphasis on smart cities and connected infrastructure will further propel market growth, as EACS plays a crucial role in modernizing urban environments. Additionally, increasing awareness of data privacy and security will lead to greater adoption of advanced access control systems. As the market evolves, stakeholders should focus on innovation, user experience, and addressing emerging security challenges to capitalize on future opportunities and sustain long-term growth.Geographic Dominance:
The Electronic Access Control System market exhibits significant geographic dominance, with North America and Europe leading due to their advanced infrastructure and stringent regulatory standards. North America, particularly the United States, holds a substantial share of the market, driven by high security concerns, technological advancements, and a robust presence of major EACS providers. Europe follows closely, with countries like the UK, Germany, and France investing heavily in security solutions due to strict regulations and high adoption rates. Meanwhile, the Asia-Pacific region is emerging as a major growth area, fueled by rapid urbanization, industrial expansion, and increasing investments in smart infrastructure. Countries such as China and India are witnessing rising demand for advanced access control systems as they modernize and enhance their security measures. The diverse regional dynamics highlight varying levels of market maturity and growth potential across the globe.
Electronic Access Control System Market Key Players Shaping the Future
The Electronic Access Control System market is significantly influenced by key players such as Honeywell International Inc., Johnson Controls International plc, ASSA ABLOY Group, Allegion plc, Schlage (a brand of Allegion), Bosch Security Systems, Tyco International Ltd., and HID Global (an ASSA ABLOY Group brand). These companies are at the forefront of technological innovation and market development, shaping the future of access control solutions through their advanced products and strategic initiatives.
Electronic Access Control System Market Segment Analysis
The Electronic Access Control System market is segmented based on By Type, By Application and Geography, offering a comprehensive analysis of the industry.
By Type:
Biometric Systems: These systems use unique biological characteristics, such as fingerprints, facial recognition, and iris scans, to provide secure access. They offer high security and are increasingly adopted in sensitive areas.Card-Based Systems: These systems use magnetic stripe cards, smart cards, or proximity cards to control access. They are popular due to their affordability, ease of use, and integration capabilities.Electronic Locks: These include keypads, smart locks, and other electronic mechanisms that can be controlled remotely or via electronic credentials. They are versatile and used in various residential and commercial settings.By Application:
Commercial Buildings: EACS in commercial buildings includes office complexes, retail spaces, and hospitality venues. These systems focus on managing employee access, visitor control, and security integration.Residential Complexes: Access control systems for residential complexes include apartment buildings and gated communities, emphasizing security and convenience for residents.Government Facilities: High-security access control solutions are used in government buildings, military bases, and other critical infrastructure to ensure tight security and regulatory compliance.Industrial Sites: EACS for industrial sites manage access to sensitive areas, protect valuable assets, and ensure safety compliance in manufacturing and industrial environments.By Geography:
North America: This region leads the market due to high adoption rates of advanced security technologies, stringent regulations, and a strong presence of major market players.Europe: Europe follows closely, with significant market activity in countries such as the UK, Germany, and France, driven by regulatory standards and high security needs.Asia-Pacific: The Asia-Pacific region is emerging as a key growth area, with increasing urbanization, industrial expansion, and investments in smart infrastructure driving demand for EACS.Latin America: Growth in Latin America is fueled by increasing security concerns and infrastructural development, with a growing adoption of electronic access solutions.Middle East and Africa: The market in this region is expanding due to rising security needs and infrastructure projects, with increasing investments in advanced access control technologies. Automotive And Transportation:
The Electronic Access Control System market within the automotive and transportation sector is experiencing notable growth, driven by advancements in vehicle security and the need for enhanced access management. In vehicles, EACS technology includes electronic locks, biometric systems, and keyless entry solutions that improve convenience and security for drivers and passengers. These systems are increasingly integrated into both commercial and personal vehicles, offering features such as remote access control, advanced theft prevention, and personalized settings. In the transportation sector, EACS is utilized for secure access to restricted areas within transportation hubs, including airports, train stations, and cargo facilities. This enhances the management of personnel and vehicle access, contributing to overall safety and operational efficiency. As the demand for smarter and more secure transportation solutions grows, the EACS market is expected to expand, driven by ongoing innovations and the increasing adoption of connected technologies.
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Artificial Intelligence
System-on-Chip (SoC) Market worth $205.97 billion by 2029 – Exclusive Report by MarketsandMarkets™
DELRAY BEACH, Fla., Oct. 4, 2024 /PRNewswire/ — The System-on-Chip (SoC) market is projected to grow from USD 138.46 billion in 2024 and is estimated to reach USD 205.97 billion by 2029; it is expected to grow at a Compound Annual Growth Rate (CAGR) of 8.3% from 2024 to 2029 according to a new report by MarketsandMarkets™. The growth of the System-on-Chip (SoC) market is driven with the increasing trend of SoC in automotive industry along with the adoption of IoT and connected devices that require SoCs to carry out real time processing. Moreover, the surging adoption of AI and machine learning technologies is likely to fuel the demand for system-on-chips.
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Browse in-depth TOC on “System-on-Chip (SoC) Market”
250 – Tables73 – Figures326 – Pages
System-on-Chip (SoC) Market Report Scope:
Report Coverage
Details
Market Revenue in 2024
$ 138.46 billion
Estimated Value by 2029
$ 205.97 billion
Growth Rate
Poised to grow at a CAGR of 8.3%
Market Size Available for
2020–2029
Forecast Period
2024–2029
Forecast Units
Value (USD Million/Billion)
Report Coverage
Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
Segments Covered
By Core Count, Core Architecture, Device and Region
Geographies Covered
North America, Europe, Asia Pacific, and Rest of World
Key Market Challenge
Rapid technological changes challenge SoC longevity
Key Market Opportunities
Growing penetration of AI PCs and GenAI smartphones
Key Market Drivers
Rising adoption of ADAS in autonomous vehicles to fuel the growth of automotive SoCs
By core architecture, RISC-V is projected to grow at a high CAGR for system-on-chip market during the forecast period
The market for System-on-Chips (SoC) for RISC-V architecture segment is expected to grow at highest CAGR during the forecast period. The RISC-V architecture is bound to grow at a higher rate in view of the flexibility, cost, and scalability advantages it has over others, driving wide adoption across diversified applications. The open-source nature of the architecture is one of the major growth drivers because it reduces licensing costs and accelerates innovation since customizations are allowed for use cases as per various needs. This flexibility is valuable in the emerging and high-growth sectors of AI, 5G, and IoT, where a solution that is tailor-made to complex requirements needs to be provided. For instance, in May 2024, Arteris, Inc. (US) and Andes Technology Corporation (Taiwan) partnered to develop the Andes Qilai RISC-V platform. It incorporates the high-performance RISC-V processor IPs from Andes Technology Corporation (Taiwan) and the FlexNoC interconnect IP from Arteris, Inc. (US). Their joint effort shows their efforts towards advancing RISC-V based SoC designs for a wide range of applications, which include AI, 5G, Networking, Mobile, Storage, AIoT, and Space. With open-source RISC-V model, such developments further continue to accelerate innovation and drive adoption in these high-growth areas, positioning RISC-V as the choice for future technology roadmaps.
The automotive segment in System-on-Chip (SoC) market will account for the high CAGR from 2024 to 2029
The SoC market for automotive segment will grow at highest CAGR during the forecast period. The SoCs integrated in automotive applications enable enhanced performance, reduced power consumption, and compact designs, which makes them essential for numerous vehicle systems. The automotive segment will experience growth due to the increasing adoption of advanced driver assistance systems (ADAS), infotainment systems, and the rising popularity of electric vehicles. EVs rely heavily on sophisticated electronics for battery management, powertrain control, and energy efficiency optimization, all of which require advanced SoCs. For instance, in June 2024, Intel Corporation (US) launched OLEA U310 SoC chip for automotive applications. It is developed to improve the performance of electric vehicles. This chip combines hardware and software in one SoC to enable seamless operation across various EV station platforms. They are designed to manage the complex systems within EVs. It ensures optimal performance, safety, and extended range. The increasing complexity of autonomous driving systems, along with the demand for safer and more reliable vehicles fuels the adoption of SoCs in the automotive industry, driving significant growth in this segment.
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Asia Pacific is expected to register the highest CAGR during the forecast period
The system-on-chip (SoC) industry in Asia Pacific includes economies such as South Korea, Japan, China, and India and Rest of Asia Pacific. The Rest of Asia Pacific countries include Australia, Singapore, the Philippines, Taiwan, Thailand, and Indonesia. There is a presence of leading SoC manufacturers in this region including MediaTek Inc. (Taiwan), Samsung (South Korea), Infineon Technologies AG (Germany), and Renesas Electronics Corporation (Japan). The Asia-Pacific region is still the biggest revenue generator in terms of SoC market globally due to the fast-growing consumer electronics and mobile device-related sectors. Other regions considered as major manufacturing centers in the world are China, South Korea, Japan, and India for making the latest smartphones, tablets, and other consumer electronic products that require state-of-the-art SoCs for delivering high performance, energy efficiency, and integrated functionalities. A highly and technologically advanced population in the region has always formed the basis for a sustained demand in terms of innovative and feature-rich devices, thereby showing sustainable growth in the SoC market. Automotive and industrial automation are another major sector driving the SoC market in Asia Pacific. This region contains some of the largest automobile manufacturers in the world, such as Hyundai Motor Company (South Korea), Toyota (Japan), and Tata Motors Limited (India). These car manufacturers are now putting SoCs into their automobiles so that they are equipped with ADAS capabilities, infotainment features, and autonomous driving technologies.
Key Players
Key companies operating in the System-on-Chip (SoC) companies are Qualcomm Technologies, Inc. (US), MediaTek Inc. (Taiwan), Samsung (South Korea), Apple Inc. (US), Broadcom (US), Intel Corporation (US), Advanced Micro Devices, Inc. (US), NVIDIA Corporation (US), HiSilicon (China), Microchip Technology Inc. (US), among others.
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