"Train Life Services A Supply Chain Challenge", Magnus Larsson, Alstom presentation at Spare Parts Business Platform 2013. More information http://www.sparepartseurope.com/

1. Page 1
Train TTTrrraaaiiinnn LLLLiiiiffffeeee SSSSeeeerrrrvvvviiiicccceeeessss
AAAA SSSSuuuuppppppppllllyyyy CCCChhhhaaaaiiiinnnn CCCChhhhaaaalllllllleeeennnnggggeeee

2. Train Life Services
> 3 areas of expertize dedicated to performance:
• Maintenance MMMaaaiiinnnttteeennnaaannnccceee sssseeeerrrrvvvviiiicccceeeessss:::: fleet maintenance and train performance optimization
• PPPPaaaarrrrttttssss ssssuuuuppppppppllllyyyy sssseeeerrrrvvvviiiicccceeeessss:::: day to day support for operators in parts management, repairs and
technical assistance
• MMMMooooddddeeeerrrrnnnniiiizzzzaaaattttiiiioooonnnn ssssoooolllluuuuttttiiiioooonnnnssss: life time extension, improvement of performances, energy
Page 2
consumption and comfort
To address specific needs, Alstom can provide a full range of engineering services supported by new
design and innovations.
6,000
EMPLOYEES
IN 30 COUNTRIES
90
SITES
1B€
ANNUAL
TURNOVER

3. ALSTOM TLS Footprint
Page 3
6,000
EMPLOYEES
30
NATIONALITIES
25%
OF OUR STAFF
TRANSFERRED
FROM OUR CUSTOMERS
URBAN
TRAINS
MAINTENANCE PARTS SUPPLY MODERNIZATION
INTERCITY/
MAINLINE
HS/VHS
TRAINS
FREIGHT
LOCO
PARTS HUB REPAIR
CENTERS
MOD.
PROJECTS
MOD.
CENTERS

4. Key figures 2010/2011
AT sales 5.8 b€
Rolling Stock
& Other*
* including Signalling & Systems
Page 4
TLS
16%
Parts
31%
Modern
14%
Maintenance
55%
Parts
31%
Main Line 26%
Mass Transit 28%
Freight
11%
Regional 6%
APAC 9%
France 7%
NAM 8%
LAM 12%
South Europe 22%
North
Europe
41%
April 2010 to March 11: 900 M€ Sales
ALSTOM
Rolling Stock 20%
ALSTOM Rolling
Stock 80%
> Breakdown of 2010-2011
AT and TLS Sales (%)
> Breakdown of 2010-2011 TLS Sales
per type of Rolling Stock & Region

5. Why reengineer WWWhhhyyy rrreeeeeennngggiiinnneeeeeerrr aaaa gggglllloooobbbbaaaallll SSSSCCCC mmmmooooddddeeeellll ????
Page 5

6. Services to Rolling Stock
AAAA ggggrrrroooowwwwiiiinnnngggg mmmmaaaarrrrkkkkeeeetttt…………........
• Expected 3.3 % growth year on year
• Maintenance outsourcing trends
• Diversification of stakeholders
Page 6
MMMMaaaaiiiinnnnttttaaaaiiiinnnneeeerrrrssss
Maintenance costs
Parts availability
Obsolescence
OOOOppppeeeerrrraaaattttoooorrrrssss
Fleet Availability
Operational Costs
Increase Revenues
FFFFlllleeeeeeeetttt OOOOwwwwnnnneeeerrrrssss
Fleet Administration
Fleet Residual Value
Recycling
… in a competitive environment
• Low product captivity
• Some protected markets

7. Variation in Customer needs.
FFFFlllleeeeeeeetttt OOOOwwwwnnnneeeerrrrssss OOOOppppeeeerrrraaaattttoooorrrrssss MMMMaaaaiiiinnnnttttaaaaiiiinnnneeeerrrrssss
New Regulations
MMMMooooddddeeeerrrrnnnniiiizzzzaaaattttiiiioooonnnn
Train Life Extension
Performance increase
ECM
Entity in Charge of Maintenance
Fleet Administration
Configuration
Page 7
Recycling
Passenger Care
Energy Management
MMMMaaaaiiiinnnntttteeeennnnaaaannnncccceeee
Franchise
Technical Full Services
Accident and Vandalism
Obsolescence
management
Maintenance plan
optimization
Train Health Management
PPPPaaaarrrrttttssss &&&& RRRReeeeppppaaaaiiiirrrrssss
Material availability
lead time

8. The 5 Key constraints for our service footprint
1. Contractual commitment to Customer on Rolling Stock and/or Material
Page 8
availability
2. Technical know-how on world-wide installed fleet and access to legacy
technical files on OEM sites
3. Supplier base and captivity
4. Supply Chain costs & lead time
5. Tax & Customs duties

9. TLS Supply Chain ModelS
• Parts & Repairs on Quote
Page 9
− Sales administration and distribution logistics
• Material Availability Service Contracts
− Inventory management and service exchange for repairs
• Maintenance / Full Material Management long term contracts
− Trains/Material availability on a price/mileage basis
− Customized Supply Chain on Customer depots
− Fleet and material planning for preventive, corrective, on condition
• Modernization
− Project driven re-engineering and modernized trainset or kit delivery

10. The Big Question?
“Which Supply chain model to best execute ALSTOM Train Life Services current after-sales
synergies?
lead time reduction ?
anticipation of business growth ?
Page 10
activities and support business growth successfully in green field zones?

11. Page 11
TTTThhhheeee SSSSCCCCOOOORRRREEEE PPPPrrrroooojjjjeeeecccctttt

12. SCORE Project
SSSSCCCCOOOORRRREEEE : Supply Chain Organization for RRRREEEEactivity
• Dedicated team : 1 Supply Chain developer + External assistance
• 1 year project including extensive data crunching, interviews and self assessment questionnaire over 60
sites, workshops
Page 12

13. SCORE Project challenges
• 100 facilities 111000000 fffaaaccciiillliiitttiiieeesss ttttoooo bbbbeeee ccccoooonnnnssssiiiiddddeeeerrrreeeedddd :::: from very small to very large, with complex flows between entities and high
diversity of contractual commitments.
• 666600000000 000000000000 references and service specific typology to be taken into account :
Page 13
− Demand pattern
− Commercial : show stopper, passenger comfort..
− Maturity : In serial production, after sales, legacy, captivity
− Valuation
• EEEExxxxiiiissssttttiiiinnnngggg bbbbeeeelllliiiieeeeffffssss::::
− Centralization is cost efficient
− Synergies are limited to stock

14. Page 14
TTTTLLLLSSSS wwwwoooorrrrllllddddwwwwiiiiddddeeee SSSSuuuuppppppppllllyyyy CCCChhhhaaaaiiiinnnn vvvviiiissssiiiioooonnnn

15. 3 Steps towards TLS New SC model
1/ Definition ppppeeeerrrr bbbbuuuussssiiiinnnneeeessssssss ttttyyyyppppeeee (Maintenance, Parts, Modernization) of :
Page 15
− SSSSttttaaaannnnddddaaaarrrrdddd pppprrrroooocccceeeesssssssseeeessss (Demand and Supply management, Planning, Logistics)
− SSSSttttaaaannnnddddaaaarrrrdddd ssssiiiitttteeeessss ttttyyyyppppoooollllooooggggyyyy
− SSSSttttaaaannnnddddaaaarrrrdddd kkkkeeeeyyyy ffffuuuunnnnccccttttiiiioooonnnnssss (mission, local/global, skills)
2/ Definition of standard « SSSSeeeerrrrvvvviiiicccceeee NNNNeeeettttwwwwoooorrrrkkkk OOOOrrrrggggaaaannnniiiizzzzaaaattttiiiioooonnnnssss » for a given contract or new geographic zone.
3/ Validation of ggggoooollllddddeeeennnn rrrruuuulllleeeessss by senior management to give
− Simple and shared gggguuuuiiiiddddeeeelllliiiinnnneeeessss ffffoooorrrr aaaaddddddddrrrreeeessssssssiiiinnnngggg nnnneeeewwww bbbbuuuussssiiiinnnneeeessssssss.
− Standard rrrroooolllleeeessss aaaannnndddd rrrreeeessssppppoooonnnnssssiiiibbbbiiiilllliiiittttiiiieeeessss
− IIIInnnntttteeeerrrraaaaccccttttiiiioooonnnnssss between entities.

16. Mapping of the key network actors
Page 16

17. Page 17
SSSSIIIITTTTEEEESSSS TTTTYYYYPPPPOOOOLLLLOOOOGGGGYYYY
3 Site Typologies

18. Fleet approach FFFllleeeeeettt aaapppppprrroooaaaccchhh ffffoooorrrr BBBBuuuussssiiiinnnneeeessssssss ggggrrrroooowwwwtttthhhh
Page 18
IIIInnnnssssttttaaaalllllllleeeedddd FFFFlllleeeeeeeetttt kkkknnnnoooowwww-hhhhoooowwww
IIIInnnnssssttttaaaalllllllleeeedddd BBBBaaaasssseeee
MMMMaaaannnnaaaaggggeeeemmmmeeeennnntttt
MMMMaaaasssstttteeeerrrr DDDDaaaattttaaaa
MMMMaaaaiiiinnnntttteeeennnnaaaannnncccceeee BBBBiiiillllllll ooooffff MMMMaaaatttteeeerrrriiiiaaaallll
MMMMaaaaiiiinnnntttteeeennnnaaaannnncccceeee
EEEEnnnnggggiiiinnnneeeeeeeerrrriiiinnnngggg,,,,
OOOObbbbssssoooolllleeeesssscccceeeennnncccceeee,,,, SSSSaaaaffffeeeettttyyyy
TTTTeeeecccchhhhnnnniiiiccccaaaallll DDDDaaaattttaaaa MMMMaaaannnnaaaaggggeeeemmmmeeeennnntttt
GGGGlllloooobbbbaaaallll SSSSoooouuuurrrrcccciiiinnnngggg
IIIInnnnvvvveeeennnnttttoooorrrryyyy
MMMMaaaannnnaaaaggggeeeemmmmeeeennnntttt ffffoooorrrr
ccccoooommmmmmmmoooonnnn////ccccrrrriiiittttiiiiccccaaaallll PPPPaaaarrrrttttssss
BBBBuuuussssiiiinnnneeeessssssss DDDDeeeevvvveeeellllooooppppmmmmeeeennnntttt
PPPPllllaaaannnn

19. Service Network Organization Modeling tool
FFFFUUUUNNNNCCCCTTTTIIIIOOOONNNNSSSS
Fleet Planner
Tender Team
Page 19
AAAASSSSSSSSEEEETTTTSSSS
SSSSIIIITTTTEEEE TTTTYYYYPPPPOOOOLLLLOOOOGGGGIIIIEEEESSSS
RRRROOOOLLLLEEEESSSS
Design and implementation of the standard
Service Network Organization to best serve a
given new service contract or emerging geographic
zone
Trading
Unit
Leading
Unit
Participative
Unit
SSSSiiiitttteeee 1111
Participative
Unit
SSSSiiiitttteeee 2222
Leading
Unit
Material
Planner
Procurement
Repair Loop
Controller
Custom
Clearance
Maintenance
Engineers
Transport
Sourcing
Parts Technicians
Demand
Planner
Parts
Technicians
Maintenance
Engineers
Warehousing/
Preparation
Line
Sourcing
replenishment
Operation
planning
DDDDeeeeppppooootttt
FFFFCCCCooooEEEE
RRRReeeeggggiiiioooonnnnaaaallll
HHHHuuuubbbb
LLLLooooccccaaaallll RRRReeeeppppaaaaiiiirrrr
CCCCeeeennnntttteeeerrrr
CCCCuuuussssttttoooommmmeeeerrrr
HHHHuuuubbbb
SSSSttttaaaannnndddd aaaalllloooonnnneeee
ddddeeeeppppooootttt
LLLLooooccccaaaallll
SSSSttttoooorrrraaaaggggeeee
Material
Planner
Maintenance
Engineers
Tender Team
Procurement
Demand
Planner
Parts Bid
Team
Sales force
FFFFCCCCooooEEEE
FFFFCCCCooooEEEE RRRReeeegggg.... HHHHuuuubbbb
C
U
S
T
O
M
E
R

20. Benefits
Benefits of using ALSTOM TLS “Service Network SSSeeerrrvvviiiccceee NNNeeetttwwwooorrrkkk MMMMooooddddeeeelllliiiinnnngggg TTTToooooooollll “
• Demonstrate dedicated Service Network capabilities to prospects
• Validate tender phase targeted Service Network
• Align all functions on a clear road map
ERP set-up and deployment, skills and staffing needs, stock allocation, freight request for quotations, depot hand over
campaign, interfaces with maintenance operation, Sourcing, Engineering)
• Maximize global management synergies while securing daily performance commitment
Page 20

21. Page 21
Thanks for your attention…