Artificial Intelligence
ALSTOM SA : Alstom first half 2020/21 results
Alstom first half 2020/21 results
10 November 2020 – During the first half of fiscal year 2020/21 (between 1 April 2020 and 30 September 2020), Alstom booked €2.7 billion of orders and sales reached €3.5 billion. Book-to-bill ratio stood at 0.8. Adjusted EBIT reached €263 million leading to an adjusted EBIT margin of 7.5%. Net income (from continued operations, group share) amounted to €161 million. Free Cash Flow amounted to €(253) million.
At €40 billion on 30 September 2020, the current backlog provides strong visibility on future sales.
Key figures
1 aEBIT including CASCO contribution in both periods
“During the first semester, the Group’s commercial activity was impacted as anticipated by the shift in tender activity towards H2 in the context of the sanitary crisis. Yet we managed to secure some large orders notably in Central and East Asia. We are confident that the various stimulus plans together with the increasing demand for sustainable mobility solutions will lead to a solid market recovery, which reflects in our strong tender pipeline for the second semester. Production in the second quarter was back to a normal level. We were proud to deliver some flagship projects such as metro systems in Dubaï and Mexico. Finally, we achieved major milestones in the Bombardier Transportation acquisition process in recent months and we are looking forward to closing the transaction in Q1 2021.” said Henri Poupart-Lafarge, Alstom Chairman and Chief Executive Officer.
***
Strategic and business update
This half year 2020/21 opens the second year of the Alstom in Motion strategy (AiM) announced by Alstom on 24 June 2019 which sets a clear ambition: be the leading global innovative player for a sustainable and smart mobility. The Group continues to make good progress on the AiM priorities: ·Orders and sales
The Group booked €2,652 million in orders in the first half of fiscal year 2020/21. This compares to €4,618 million in orders over the same period last year. This decrease was expected, as a consequence of the shift in tendering activity from the first half towards the second half in the Covid-19 context.
Alstom was awarded projects mainly for Rolling Stock and Services, including orders for the Nantes tramway in France, rolling stock and maintenance follow-on orders of currently active projects in AMECA, and the renewal of a full maintenance contract in Mexico. Alstom also booked a metro system in Taiwan, a new-generation digital interlocking project in France, and signalling and infrastructure order as part of a modernization project in Romania.
The backlog amounted to €40 billion on 30 September 2020, providing strong visibility on future sales. The book-to-bill ratio stood at 0.8, reflecting the impact of the Covid-19 crisis.
In the first half of fiscal year 2020/21, Alstom’s total sales reached €3,518 million, down 13% organically. This decrease is a consequence of the Covid-19 crisis, in particular during the lockdown period in Q1 when some of our production units and suppliers had to slow down temporarily operations. Operations in Q2 were back to a normal level with sales of €2,011 million, up from €1,507 million in Q1. In H1 2020/21, rolling stock sales reached €1,713 million (down 8% organic) as sales recognition was affected during the containment period, particularly in Europe. Signalling sales reached €691 million (down 2% organic), with a moderate decline due to a shift in installation during containment followed by a recovery during the second quarter. Services sales reached €662 million (down 5% organic) due to train traffic reduction during the first quarter followed by a normalization of train traffic during the second quarter and the execution of the growing service backlog. Systems sales decreased at €452 million (down 42% organic) with an expected ramp-down on Dubai and Riyadh systems projects, a fully traded contract in Panama and the impact of containment measures.
In Q2 2020/21, all product lines experienced positive organic growth compared to Q2 2019/20 except Systems which is continuing its anticipated ramp down at -35%. Between Q2 2019/20 and Q2 2020/21, Rolling stock grew at +10% organically with ramp up in large projects, Services at +8% organically and Signalling at +3% organically.
·Acquisition
On 30 June 2020, Alstom acquired IBRE (since renamed Alstom IBRE), a company specialised in the development, manufacture and supply of cast iron or steel brake discs for high-speed, intercity, regional and suburban trains, trams and metros. With this acquisition, Alstom reinforces its internal capabilities regarding railway braking systems, which are essential to the overall dynamic performance of trains. IBRE had a turnover of approximately €10 million in 2019.
·Stock market index In September 2020, the Steering Committee of the Euronext Indices decided to include Alstom in the list of the 40 stocks making up the French CAC40 index; this took effect on Monday 21 September 2020. 2. Innovation in smarter and greener mobility solutions
Despite the Covid-19 context, Alstom preserved its innovation capabilities with a sustained level of research and development net costs at €125 million, i.e. 3.6% of sales, in the first half of 2020/21.
During the first semester, Alstom entered into several agreements in Europe to shape the mobility of the future with hydrogen trains. The Coradia iLint hydrogen train has performed successful extensive testing phase in Groningen, in the Netherlands, obtaining the authorization to run on the national railway network and perfectly fitting the commercial service of the current timetable. In addition, after successful trial operations in Germany, the Coradia iLint will now demonstrate its worth in Austria over three months during which it will transport passengers on geographically challenging routes. In the United-Kingdom, Eversholt Rail and Alstom announced a bold plan to fast-track the hydrogen train industry with investment in Breeze hydrogen trains. To make it, Alstom will rebuild Eversholt Rail’s Class 321 electric trains to use hydrogen power.
In May 2020, in Germany, the Federal Ministry of Economics has awarded Alstom with the “Innovation Prize for Regulatory Sandboxes”, related to a planned test project to implement Automatic Train Operation (ATO) in daily passenger operation of regional trains. The project will begin in 2021 together with the Regional Association of the greater area of Braunschweig, the German Aerospace Center (DLR) and the Technical University of Berlin (TU Berlin) and the first test of automated train operations is expected beginning 2023. In June 2020, Alstom has launched a new version of the multimodal control system, Mastria. Using artificial intelligence, the solution allows operators to adapt, easily and in real time, their offer to the various social distancing and public gathering requirements that have arisen due to the Covid-19 pandemic. It enabled Panama Metro to limit the occupancy rate to 40%, as recommended by the country’s health authorities.
In July 2020, Alstom introduced a new portfolio called “Healthier Mobility™” creating solutions and products for customers in 4 domains: Cleaning & disinfection, Contact surfaces, Air treatment, and Contactless & Passenger flow. It gathers all the key expertise, knowledge and resources needed to develop solutions allowing its customers to operate while ensuring a high standard of the sanitary conditions for the passengers.
3. Efficiency powered by digital
Alstom delivered an adjusted EBIT1 of €263 million corresponding to a 7.5% margin in first half 2020/21 compared to €319 million corresponding to a 7.7% margin over the same period last year This resilient adjusted EBIT margin despite the volume impact linked to the Covid-19 crisis results mainly from an increase in gross margin. The cost of sales ratio improvement was achieved through the optimisation of production capacities, enhanced industrial efficiency, and control over overhead production costs. The increased signalling and services share within the overall company sales mix also had a positive impact.
Moreover, the contribution of the CASCO joint-venture increased due to sustained Signalling activities in China.
To mitigate the impact of the sanitary crisis on volume, Alstom optimized selling, tender and administrative costs across all regions and controlled the level of R&D investments while preserving commercial and innovation capabilities.
Below adjusted EBIT, Alstom booked a €68 million charge related to Covid-19 incremental costs and inefficiencies resulting from the implementation of all necessary sanitary measures in all Alstom sites. In addition, it booked €44 million in costs related to the Bombardier Transportation acquisition and one-off gains such as the reversal of asset impairments and provisions.
As a result, net income from continued operations (group share) reached €161 million compared to €213 million the previous year, primarily impacted by the Covid-19 crisis effect on volumes and one-off items below adjusted EBIT.
4. One Alstom team, agile, inclusive and responsible
Acknowledging that the value Alstom adds to its customers strongly relies on its employees, Alstom is committed to providing employees with the best working environment and employee experience. In October 2020, this commitment was rewarded by the Wall Street Journal sustainable management rating which ranked Alstom 1st in the Human Capital category and the 34th globally.
In July 2020, Alstom received another subsequent 3-year renewal of its accreditation ISO 37001 anti-bribery certification. The ISO 37001 is an international standard ensuring organisations prevent, detect and tackle bribery through rigorous assessment in order to achieve this anti-bribery certification. This renewal constitutes another important milestone in Alstom’s continued efforts to improve the efficiency of its integrity programme.
*** Solid balance sheet
During the first half of fiscal year 2020/21, Group Free Cash Flow was negative at €(253) million. This cash outflow was driven largely by decreased profitability, drift in cash-in due to the sanitary situation, anticipated inventories increase linked to the ramp-up of large Rolling Stock projects as well as lower down payment level due to order intake shift from the first to the second semester.
The Group had gross cash in hand of €1,953 million at the end of September 2020. It also had a credit line of €400 million and an additional €1,750 million Revolving Credit Facility2 put in place in April 2020, both fully undrawn. Consequently, its liquidity resources stood at €4,103 million as of 30 September 2020. Alstom’s bond debt amounted to €700 million as of 30 September 2020.
Alstom’s net cash amounted to €843 million on 30 September 2020, compared to €1,178 million on 31 March 2020. Lastly, equity reached €3,341 million at 30 September 2020, compared to €3,328 million on 31 March 2020.
*** Bombardier Transportation acquisition update and indicative timetable On 16 September 2020, Alstom announced that it had signed the sale and purchase agreement with Bombardier Inc and Caisse de dépôt et placement du Québec (CDPQ) for the acquisition of Bombardier Transportation. Price has been revised to take into account the current context. Net proceeds are now expected up to €5.3 billion3 against a range of €5.8 – €6.2 billion previously agreed.
On 7 October 2020, an amendment to the Universal Registration Document 2019/20 was filed with the French financial markets authority (Autorité des marchés financiers – AMF). On such date, the AMF also approved the prospectus related to the reserved capital increases for the benefit of, respectively, Bombardier and CDPQ.
On 29 October 2020, an extraordinary shareholders’ meeting approved all the resolutions the transaction. The removal of doubled voting rights was also approved by a special meeting of holders of shares with double voting rights held on the same day.
The rights issue is contemplated to take place between Q4 2020 and H1 2021, subject to market conditions. The closing of the transaction is now expected for Q1 2021 subject to regulatory approvals and customary closing conditions.
***
Outlook for fiscal year 2020/21 Mid-term outlook for fiscal year 2022/23
The outlook given in connection with the May 12, 2020 annual results announcement is confirmed In the context of the Covid-19 crisis, the objective of a 5% average annual growth rate over the period from 2019/20 to 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 *
The management report and the consolidated financial statements, as approved by the Board of Directors, in its meeting held on 10 November 2020, are available on Alstom’s website at www.alstom.com. The accounts have been reviewed by the auditors.
Investor relations: 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.
FY 2020/21 forecasts are based on Alstom’s scope of consolidation at the end of September 2020, therefore exclude any scope impacts from the expected Bombardier Transportation acquisition. They are mainly based on the following assumptions:
Alstom internal assumptions
Macro-economic assumptions
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. 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 2 – INCOME STATEMENT
*aEBIT including CASCO contribution in both periods. Casco JV share of net income for both periods: €19m in 2019/20 and €24m in 2020/21
APPENDIX 3 – FREE CASH FLOW
APPENDIX 4 – NON-GAAP FINANCIAL INDICATORS DEFINITIONS
This section presents financial indicators used by the Group that are not defined by accounting standard setters. Orders received
A new order is recognised as an order received only when the contract creates enforceable obligations between the Group and its customer. Order backlog 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-Bill The book-to-bill ratio is the ratio of orders received to the amount of sales traded for a specific period.
Adjusted EBIT
Adjusted EBIT (“aEBIT”) is 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: A non-recurring item is a “one-off” exceptional item that is not supposed to occur again in following years and that is significant. The non-GAAP measure adjusted EBIT (aEBIT hereafter) indicator reconciles with the GAAP measure EBIT as follows:
*aEBIT including CASCO contribution in both periods
Free cash flow
Free 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. Free Cash Flow does not include any proceeds from disposals of activity.
Alstom 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, marketable securities and other current financial asset, less borrowings.
Organic basis Figures presented in this section include performance indicators presented on an actual basis and on an organic basis. Figures 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.
1 aEBIT including CASCO contribution in both periods
2 With a 1-year maturity, a 6-month extension option at the borrower’s discretion and another 6-month extension at the lenders’ discretion
4 The fiscal year 2020/21 outlook assumes the absence of Covid-19 crisis-related production slowdowns, arising from partial or full lockdown situations, that would exceed the lockdown measures in place on the date of this document and affecting either Alstom or key suppliers. Also relating to the Covid-19 environment, they assume that customer tendering schedules will not materially shift after the second semester and that train mileage for purposes of calculating indexed payments under maintenance contracts will not decrease very significantly during the remainder of the second semester
5 subject to the usual short-term volatility in the timing of receipt of down payments and milestone payments owed by customers
Attachment
(in € million)
Half-year ended
30 September 2019 Half-year ended
30 September 2020 % change
reported % change
organic
Actual figures
Orders backlog
41,330
40,001
(3)%
2%
Orders received
4,618
2,652
(43)%
(42)%
Sales
4,140
3,518
(15)%
(13)%
Adjusted EBIT1
319
263
(18)%
Adjusted EBIT margin1
7.7%
7.5%
Net income from continued operations, group share
213
161
Free cash flow
(19)
(253)
1. Growth by offering greater value to our customers
On 31 July 2020, the European Commission cleared Alstom’s acquisition of Bombardier Transportation. The Commission’s approval for the transaction is conditional on the proposed engagements (cf. press release dated July 31st 2020).
In 2019/20, the Group launched the Alstom in Motion (AiM) strategic initiative and has since been taking steps to deliver revenues and margin growth in line with the objectives set by this plan for 2022/23.
The Covid-19 crisis is negatively affecting the financial performance of the 2020/21 fiscal year. Yet, Alstom is anticipating a strong pipeline for H2 2020/21 and observed a solid production pick-up during Q2 2020/21.Thus, Alstom targets the following outlook for the 2020/21 fiscal year, assuming that the ongoing Covid-19 “second wave” does not have a material effect on production or on the commercial tendering schedule4:
Alstom standalone scope
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.
About Alstom
Leading the way to greener and smarter mobility worldwide, Alstom develops and markets integrated systems that provide the sustainable foundations for the future of transportation. Alstom offers a complete range of equipment and services, from high-speed trains, metros, trams and e-buses to integrated systems, customised services, infrastructure, signalling and digital mobility solutions. Alstom recorded sales of €8.2 billion and booked orders of €9.9 billion in the 2019/20 fiscal year. Headquartered in France, Alstom is present in over 60 countries and employs 38,900 people.
Contacts
Press:
Samuel MILLER – Tel.: +33 (1) 57 06 67 74
[email protected]
Coralie COLLET – Tel.: +33 (1) 57 06 18 81
[email protected]
Julie MOREL – Tel.: +33 (6) 67 61 88 58
[email protected]
Claire LEPELLETIER – Tel.: +33 (6) 76 64 33 06
[email protected]
Actual figures
H1 2019/20
%
H1 2020/21
%
(in € million)
Contrib.
Contrib.
Europe
3,900
84%
1,088
41%
Americas
413
9%
249
10%
Asia / Pacific
255
6%
432
16%
Africa / Middle East / Central Asia
50
1%
883
33%
Orders by destination
4,618
100%
2,652
100%
Actual figures
H1 2019/20
%
H1 2020/21
%
(in € million)
Contrib.
Contrib.
Europe
20,024
48%
20,398
51%
Americas
6,220
15%
5,106
13%
Asia / Pacific
5,617
14%
6,262
16%
Africa / Middle East / Central Asia
9,469
23%
8,235
20%
Backlog by destination
41,330
100%
40,001
100%
Actual figures
H1 2019/20
%
H1 2020/21
%
(in € million)
Contrib.
Contrib.
Europe
2,269
54%
2,017
57%
Americas
687
17%
557
16%
Asia / Pacific
458
11%
424
12%
Africa / Middle East / Central Asia
726
18%
520
15%
Sales by destination
4,140
100%
3,518
100%
APPENDIX 1B – PRODUCT BREAKDOWN
Actual figures
H1 2019/20
%
H1 2020/21
%
(in € million)
Contrib.
Contrib.
Rolling stock
2,435
53%
890
34%
Services
1,453
31%
820
31%
Systems
51
1%
374
14%
Signalling
679
15%
568
21%
Orders by destination
4,618
100%
2,652
100%
Actual figures
H1 2019/20
%
H1 2020/21
%
(in € million)
Contrib.
Contrib.
Rolling stock
21,340
52%
19,838
50%
Services
13,273
32%
13,899
35%
Systems
2,961
7%
2,218
5%
Signalling
3,756
9%
4,046
10%
Backlog by destination
41,330
100%
40,001
100%
Actual figures
H1 2019/20
%
H1 2020/21
%
(in € million)
Contrib.
Contrib.
Rolling stock
1,898
46%
1,713
49%
Services
718
17%
662
19%
Systems
801
19%
452
13%
Signalling
723
18%
691
19%
Sales by destination
4,140
100%
3,518
100%
Actual figures
H1 2019/20
H1 2020/21
(in € million)
Sales
4,140
3,518
Adjusted Earnings Before Interest and Taxes (aEBIT)*
319
263
Restructuring and rationalisation costs
(7)
(7)
Impairment loss and other
(12)
26
Covid-19 inefficiencies & incremental costs
–
(68)
CASCO contribution reversal
(19)
(24)
Earnings Before Interest and Taxes (EBIT)
281
190
Financial result
(40)
(23)
Tax result
(61)
(38)
Share in net income of equity investees
36
37
Minority interests from continued operations
(3)
(5)
Net income – Continued operations – group share
213
161
Net income – Discontinued operations – group share
14
9
Net income – Group share
227
170
Actual figures
(in € million) H1 2019/20
H1 2020/21
EBIT
281
190
Depreciation and amortisation
145
101
Restructuring variation
(9)
(15)
Capital expenditure
(60)
(54)
R&D capitalisation
(32)
(39)
Change in working capital
(323)
(433)
Financial cash-out
(37)
(21)
Tax cash-out
(54)
(30)
Other
70
48
Free cash flow
(19)
(253)
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 backlog represents sales not yet recognised from orders already received.
Order backlog at the end of a financial year is computed as follows:
Adjusted EBIT margin corresponds to Adjusted EBIT expressed as a percentage of sales.
Half-year ended
Half-year ended
(in € million)
30 Sept. 2019
30 Sept. 2020
Adjusted Earnings Before Interest and Taxes (aEBIT)*
319
263
Restructuring & rationalisation costs
(7)
(7)
Impairment loss and other
(12)
26
Covid-19 inefficiencies & incremental costs
–
(68)
CASCO contribution reversal
(19)
(24)
Earnings Before Interest and Taxes (EBIT)
281
190
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:
(in € million)
H1 2019/20
H1 2020/21
Net cash provided by / (used in) operating activities
70
(162)
Capital expenditure (including capitalised R&D costs)
(92)
(92)
Proceeds from disposals of tangible and intangible assets
3
1
Free cash flow
(19)
(253)
Year ended
Half-year ended
(in € million)
31 March 2020
30 Sept. 2020
Cash and cash equivalents
2,175
1,953
Other current financial assets
45
25
Less:
Current financial debt
270
384
Non-current financial debt
772
751
Net cash/(debt) at the end of the period
1,178
843
Half-year ended 30 Sept. 2019
Half-year ended 30 Sept. 2020
(in € million)
Actual
figures Exchange
rate Comparable
Figures
Actual
figures Comparable
Figures
% Var Act.
% Var Org.
Backlog
41,330
(2,180)
39,150
40,001
40,001
(3)%
2%
Orders
4,618
(44)
4,574
2,652
2,652
(43)%
(42)%
Sales
4,140
(104)
4,036
3,518
3,518
(15)%
(13)%
3 Revised price range between €5.5 – €5.9 bn. Preliminary contractual purchase price estimated at €5.3bn, after taking into account estimated potential post-closing adjustments and obligations linked to Bombardier Transportation’s net cash protection mechanism. The final purchase price amount will be determined on the basis of Bombardier Transportation’s accounting books as of 31 December 2020 and as of the transaction completion date and of the mechanisms set forth in the acquisition agreement.
Artificial Intelligence
ACT³ to Embrace the GIGA and AI eras
SAO PAULO, Oct. 9, 2024 /PRNewswire/ — At 2024 LATAM Fiber Broadband Leaders Summit, Gary Lu, President of Huawei Carrier Network Marketing & Solution Sales Dept, delivered a speech titled “ACT3 to Embrace the GIGA and AI eras”. “ACT” is the revenue model of fixed broadband business. A means ARPU, C is about coverage of service, and T stands for take-up rate. Coverage multiplies Take-up rate is about user base, and ARPU is the key to increase the revenue.
Gary Lu analyzed the rapid development of carriers’ optical broadband networks and AI technologies in LATAM and across the world. He also proposed three development strategies — all-optical transition, gigabit transition, and scenario transition. “ACT” to the power of three, means the three transitions is the way to increase the user base and the revenue of FBB service, and it will also bring the quality of digital life to LATAM.
All-Optical Transition: Accelerating Cable-to-Fiber Transition to Secure Business Success of Broadband Services
Currently, the number of FTTH users in LATAM is experiencing a significant increase. Fiber broadband has replaced traditional cable broadband as the leading form of broadband. The fiber broadband service is one of fastest-growing business in LATAM and the CAGR of FTTH subscription is over 20% since 2021. Many local carriers have greatly improved O&M efficiency, and gained significant business returns by developing FTTH services. The fiber broadband market has great potential. Meanwhile, with large-scale production, the cost of FTTH equipment is being optimized. Therefore, now is a good time to invest in the construction of FTTH.
Gigabit Transition: Acceleration and Quality Improvement, Meeting Digital and AI Service Requirements
Gigabit optical broadband achieves higher network speeds, and plays a critical role in meeting digital and AI service requirements. For example, 4K/8K live streaming, VR service, and home office require sufficient bandwidth. Wi-Fi 6, Wi-Fi 7, and Huawei’s iFTTR F50 solution, can help carriers expand Wi-Fi coverage and explore business opportunities for gigabit smart home. So, the gigabit transition is also an opportunity for the future.
Industry predicts that in the next three years, the proportion of 500Mbps+ broadband users will reach 30%, while the proportion of gigabit broadband users will reach 10% in LATAM.
Scenario Transition: Providing Diversified and Scenario-Specific Services to Explore Personalized User Market
The application scenarios of optical broadband are no longer limited to traditional home entertainment. Amid the continuous growth of network speeds and Internet services, many diversified application scenarios like home office and live streaming emerge. In LATAM, the growth of the live streaming economy and rider economy intuitively showcases the business potential of optical broadband for carriers in new scenarios. Huawei is willing to explore innovative business models and provide services that better meet users’ personalized requirements with carriers.
In the AI era, its development relies on massive data, powerful computing, and high-speed networks, which happen to be the carriers’ strengths. Carriers can build home hub with media computing hosts to connect smart devices, and provide better services. Provide high-speed and stable network support for AI applications through technologies such as FTTR. Use powerful AI in the cloud with smart devices to offer personalized services. Within these, carriers can seize the opportunity of the AI era.
Huawei is developing ICT business in LATAM over 20 years, and willing to share business experience and the support technology. Huawei will be one of the best strategic partners for carriers to embrace more business opportunities in the GIGA and AI era for digital LATAM.
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View original content:https://www.prnewswire.co.uk/news-releases/act-to-embrace-the-giga-and-ai-eras-302270858.html
Artificial Intelligence
AWAK Transforms into Vivance, Unveiling a New Brand Identity
SINGAPORE, Oct. 9, 2024 /PRNewswire/ — AWAK Technologies, a pioneer in innovative kidney care is excited to announce its rebranding to Vivance. The name, derived from ‘viva’ and ‘advance’, embodies vitality and progress – hallmarks of the company’s commitment to revolutionizing kidney health.
AWAK Technologies was founded with a groundbreaking idea: the development of a wearable dialysis device, Automated Wearable Artificial Kidney (AWAK). As the company continues its mission to transform kidney care, the portfolio has been expanded with products that aim to enhance patient outcomes and quality of life. To reflect this evolution and commitment to innovation, it has rebranded to Vivance – a name that captures its dynamic and forward-thinking approach in managing kidney health.
Suresha Venkataraya, CEO of Vivance, said, “This rebrand reflects how far we’ve come, and where we’re heading. Building on the foundation of our wearable dialysis device, we’ve made significant strides by expanding our portfolio to include cost-effective home modalities and complementary digital offerings. This rebrand reinforces our ultimate mission of treating patients in the comfort of their homes.”
Abel Ang, Chairman of Vivance, added, “We are excited to introduce Vivance to the world. Building on two breakthrough device designations from the FDA, our rebranding accelerates our mission to revolutionize healthcare. This exciting new chapter for the company will see us take patient-centric dialysis from a dream into reality.”
Looking Ahead
As Vivance, the company will continue to refine its brand strategy, product positioning, and approach to market entry, ensuring a strong and strategic alignment with industry needs. The wearable dialysis device is progressing through clinical trials, while additional innovations, such as point-of-care PD fluid generation system, remote monitoring tools and AI prediction models, are in advanced stages of research and development. These products are poised to enter their clinical phases in the near future, reinforcing Vivance’s mission to drive meaningful disruption in the kidney care sector.
Media Contact:
Priyanka AryaSenior Marketing Manager+65 6950 [email protected]
About Vivance
Vivance, formerly AWAK Technologies, is a pioneering, patient-centric medical technology company with a mission to enhance the lives of people with kidney disease and their caregivers by providing solutions to deliver better outcomes and improve their quality of life.
Headquartered in Singapore with offices in Los Angeles, United States and Bengaluru, India, the company is dedicated to the research, development and marketing of novel technologies in kidney care.
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Artificial Intelligence
Hyundai Motor Group and Singapore Strengthen Joint Research in Sustainable Energy and Manufacturing Solutions
Hyundai Motor Group and Nanyang Technological University, Singapore collaborate in the field of hydrogen energy and advanced energy systemThe partnership aims to advance towards carbon neutrality through joint research with world-renowned NTUHMGICS, NTU and A*STAR to establish a tripartite Corporate Lab Program for collaborative research in AI, robotics and 3D printingSINGAPORE and SEOUL, South Korea, Oct. 9, 2024 /PRNewswire/ — Hyundai Motor Group (the Group) has signed a collaborative research agreement with Nanyang Technological University, Singapore (NTU) in the field of new energy at the Singapore-Korea Business Forum, Ritz Carlton Singapore, on October 8. The partnership encompasses a three-year research collaboration, focusing on the hydrogen energy business and advanced energy system.
This collaboration between the Group and NTU, a globally renowned university, aims to develop alternative energy sources to achieve carbon neutrality, leveraging the Group’s advanced energy technologies that are suitable for Singapore’s unique characteristics.
“HMGICS is a global hub for Hyundai Motor Group’s future mobility innovation,” said Hyun Sung Park, Vice President and CEO of Hyundai Motor Group Innovation Center Singapore (HMGICS). “Through this partnership, we aim to accelerate our research in the field of innovative technologies, ultimately enhancing the commercial viability of our sustainable mobility solutions.”
One of the key areas of focus will be studying the adoption of hydrogen production technologies and businesses in Singapore. This includes the implementation of Hyundai Motor Group’s innovative resource-cycle hydrogen production technologies: Plastic-to-Hydrogen (P2H) and Waste-to-Hydrogen (W2H) systems. W2H utilizes organic waste such as food and sewage sludge to produce hydrogen, while P2H utilizes non-recyclable plastic.
In the field of advanced energy system research, the Group and NTU will develop a solution that is well-suited for urban countries like Singapore. The system offers the advantages of easy installation and high safety levels thanks to its modular design, playing a vital role in achieving carbon neutrality in Singapore.
HMGICS also held a joint signing ceremony for the establishment of a tripartite research center with NTU and the Agency for Science, Technology, and Research (A*STAR). The Corporate Lab Program is set to conduct research in innovative manufacturing domains such as AI, robotics and 3D printing.
“The research partnerships between NTU Singapore and Hyundai Motor Group reflect how close collaboration with industry is vital in developing innovative and relevant solutions to address real world issues, including the race to carbon neutrality,” said Professor Lam Khin Yong, Vice President (Industry) of NTU. “We will continue to build on our long-standing partnership with Hyundai Motor Group, leveraging NTU’s core strengths in areas such as sustainable energy, AI, robotics, 3D printing, and advanced materials, to develop innovative and sustainable solutions for Singapore and the global society.”
For more information, please visit: http://www.hyundaimotorgroup.com or Newsroom: Media Hub by Hyundai, Kia Global Media Center (kianewscenter.com), Genesis Newsroom
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