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    Vladimir Maximovich Sergievskii

    Research Analyst at Bank of America

    Vladimir Maximovich Sergievskii's questions to ALSTOM (ALSMY) leadership

    Vladimir Maximovich Sergievskii's questions to ALSTOM (ALSMY) leadership • Q2 2022

    Question

    Vladimir Maximovich Sergievskii asked about project execution, questioning the reason for a ~EUR 200 million increase in provisions and the driver behind a EUR 650 million rise in contract assets.

    Answer

    CFO Laurent Martinez clarified that the provision increase was not due to heightened risk but was a mechanical accounting impact under IFRS 15, resulting from booking economically positive options on negative-margin contracts. He reaffirmed that the overall risk assessment on the ex-BT portfolio is unchanged. The increase in contract assets is driven by the production ramp-up.

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