ANNUAL REPORT2009_10

EDITORIAL 03

ALSTOM UNIVERSITY – KEY FACTS & FIGURES 04

2009-2010: ALSTOM UNIVERSITY SETS THE PACE 06Training Programmes 06

Functional Training 06Sales 07Human Resources 07Sourcing 08Finance 08Environment, Health & Safety 09Project & Contract Management 09

Leadership & Management 10Advanced Management Seminar (AMS) 11

Alstom University Events 12People Quest 12Alstom Connection 12Partners Advisory Board 15

Distance Learning 16Shared Services 20Our Internal Trainers 21Alstom Collaborative Way 22Community Networks 23

REGIONAL CAMPUSES: OUR MINDSET AROUND THE WORLD 24Latin America 25India 26Asia 29North America 30Europe 30

NEW WAYS, NEW TOOLS, ALWAYS ON THE GO 31

Table of contents

In a difficult economic climate, Alstom University continues to developinnovative solutions to meet the still pressing demand for learning, whilecontinuing to diversify its offer.The period 2009-10 showed a marked increase in the total number of sessions(+17.8%) and in the number of employees trained face-to-face (+15.4%). Weanticipated stronger growth in demand for immediately applicable Functional skills.However, we found that managers continued to see the value in Leadership trainingand were keen to acquire the type of skills that bear fruit in the mid to long-term.

New programmes were created to meet evolving needs and others redesignedto correspond to the new climate. Exciting new Distance Learning techniqueswere incorporated, and Web Conferencing is now integrated into severalprogrammes to render learning increasingly flexible for those on the move.Significant innovations include the Beta launch of AUtube, Alstom University’svideo learning portal, where employees will be able to upload educational videosbringing a new “Edutainment” dimension to knowledge sharing among peers.Also, a new Programme Manager has been assigned to develop a new

Curriculum for Project & Contract Management.It is satisfying to note that both the Alstom Connection and People

Quest events enjoyed significant increases in participation (+40%and +20% respectively). At the same time, in a new chapter in Sustainable Development, participants in Alstom Connectionnow make a direct contribution to the local community, withactions such as tree-planting or gift-offering now an integral partof the programme’s experience.

In the name of “doing more with less”, Alstom University activelyparticipated in GAIN Phase 2, identifying ways to improve costsand efficiency. These included reviewing the top 10 trainingproviders, language training instruction, new technologies, internaltrainers and the duplication of programmes.Encouragingly, quality ratings for the courses continue to reflect a high level of satisfaction with 94% considering they would“recommend an Alstom University programme to othercolleagues”.With your input, we embark confidently into what we are sure will beanother fruitful and dynamic year, with new challenges. We look forward to counting you among our participants in the nearfuture.

Michael S. Salone, Vice President Alstom University

Editorial

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figuresKey

64 ........64 ...... 74 ....■ Europe12 ........12 ...... 11 ....■ Asia11 ........14 ...... 8 ......■ North America7 ............5 ........ 4 ......■ Latin America6 ............5 ........ 3 ......■ India

2009

/10

2008

/09

2007

/08

2009

/10

2008

/09

2007

/08

2009

/10

2008

/09

2007

/08

61 ........58 ...... 67 ....■ Europe13 ........16 ...... 11 ....■ Asia12 ........12 ...... 10 ....■ North America7 ............6 ........ 5 ......■ Latin America7 ............8 ........ 7 ......■ India

Location of sessions (from April 2009 to March 2010 in %)

Participants’ workplace location(from April 2009 to March 2010 in %)

75 ........78 ...... 81 ........■ Power15 ........13 ...... 15 ........■ Transport6 ............8 ........ 3 ..........■ International

Network & Group

4 ............1 ........ 1 ..........■ IS&T

Participants’ Sector (from April 2009 to March 2010 in %)

&

Alstom University

facts

In addition to the above locations, 8 Web Conferencing programmes were held in the Sustainable Development programmewithin the Sourcing Curriculum.

employees were trained face-to-face in 2009-10 (+13.4% vs 2008-09)

• 433

• 6,295employees were trained face-to-face in 2009-10 (+15.4% vs 2008-09)

• 433training sessions (+17.8% vs 2008-09)

5

Number of participants by training category (excluding Alstom Connection)

2007-2008 2008-2009 2009-2010 2007-2008 2008-2009 2009-2010

2,520

960

3,837

1,612

4,017

1,806

Functional Leadership & Management

Alstom University net cost per participant

Number of participants 15.4%

2008-2009 2009-2010

5,449 6,295

Total number of training days 10.3%16,620 18,332

Average cost per participant

Net Alstom University cost (including Regional Campuses)

(€ 300)

(800 k€)

€ 1,267 € 964

€ 6.9 million € 6.1 million

The number of participants increased by 15.4%

The number of training days increased by 10.3%

The average cost perparticipant decreased by 23.9% due to efficiencyimprovements,negotiations,administration and use of new designmethods

Training Programmes

In the period 2009-10, the number of Functional training sessions remained stable witha total of 4,017 participants (+4.7%) and 299 sessions (+23%) across Alstom compared to3,837 participants and 243 sessions in 2008-09.

FUNCTIONAL TRAINING

6

2010:sets the paceAlstom University

2009

Sourci

ng

CurriculumNumber of participants

Human

Resourc

es

197

Sales

137

393

Project

& Contr

act M

anag

emen

t

1,31

2

Finan

ce79

4Env

ironm

ent, H

ealth

& Safety

1,18

4

4,017Total trainees

(+4.7% vs 2008-09)

197Total trainees

(131 in 2008-09, +33.5%)

HUMAN RESOURCES

Compensation & Benefits HR as Career CounsellorHR in Motion Interviewing SkillsPerformance Management & TalentDevelopment for HRResourcing Fundamentals

Key Figures: 16 sessions compared to 12 in2008-09 (+25%)

ActivitiesTechniques learned in the Interviewing Skillspilot programme have been recognised ashelpful for internal mobility interviews andthe programme will soon be opened to allmanagers as part of the Leadership &Management Curriculum. HR in Motion, anin-depth induction into the Group’s HumanResources processes, tools and approach isspread over two five-day sessions and isflexible enough to allow specific individualneeds to be addressed, while reinforcingcore Human Resources Know-How.

SALES

After reviewing the current Salesprogrammes at the beginning of the year,the function decided to adapt its salesskills and activities to the new globalrealities of the market to ensure Alstom’ssuccess over the next three years.We analysed the needs during the year to meet business issues and to developteam members. A new Sales enhancementprogramme, “WinSales”, was designed tobetter support the success of the Salescommunity. This programme will bedeployed starting 2010-11.

Analysing Customer Business & Finance Induction SeminarNegotiation SkillsProfessional Selling SkillsStrategy SellingValue Based Pricing

137Total trainees

(328 in 2008-09, -58.2%)

Key Figures: 11 sessions compared to 28 in2008-09 (-60.7%)

ActivitiesAfter two successful years of Sales trainingin Power, this year was a transitory oneregarding the Sales Curriculum (-58%compared to 2008-09).

7

* excluding e-Learning programmes

FUNCTIONAL TRAINING BY EXPERTISE*

Key Figures: 35 sessions compared to 31 in2008-09 (+11.4%)

SOURCING

393Total trainees

(470 in 2008-09, -16.3%)

Achieve Cost Breakdown & TCO Commodity StrategyFinance for SourcingImprove Negotiation SkillsInternational LogisticsLeading Competitive Country ApproachLegal Training for Supply ChainNegotiation Advanced LevelNegotiation in 7 stepsSourcing Management in ProjectSupplier ManagementSupply Chain ForumSustainable Development - EcoVadis

ActivitiesIn 2009, a number of existing trainingprogrammes, including CommodityStrategy, Cost Analysis, and Low CostCountry Sourcing were consolidated toimprove the quality of the courses offeredas well as to harmonise methodologiesand share best practices. In addition, anew advanced level Negotiation coursewas developed and our best programmeswere successfully “exported” abroad,notably to Asia and Brazil. WebConferencing training modules weredesigned to help Sourcing Managersmonitor sustainable development actionplans by suppliers allowing for moresessions with fewer people, and the PowerSupply Chain Forum was initiated to assistin the roll out of the new supply chain forthe Power Sector. In the coming year, theSourcing Curriculum will be reinforcedwith a new Programme Manager and theaddition of Operations & Quality modules.

FINANCE

Key Figures: 60 sessions compared to 70 in2008-09 (-14.2%)

ActivitiesWhen Alstom University was created in 2007the initial focus was on Finance programmesand significant numbers of people weretrained. As a natural consequence, thenumber of employees and sessions has

Accounting and Performance Reporting Fast Track to Alstom FinanceForeign Exchange Risk ManagementInternal Control FundamentalsInternational Trade FinanceIntroduction to Alstom FinanceProject AccountingTax Fundamentals on ProjectsWorking Capital Management

794Total trainees

(1,146 in 2008-09, -30.7%)

decreased over the past year, the demand, inlarge part, being already met (with theexception of Tax Fundamentals on Projects, anew programme launched this year).At all times, and particularly in periods ofeconomic turbulence, good project execution(quality, costs, delivery) and management of exposure to currency fluctuations are critical. Reflecting this, the FinanceCurriculum this year tackled the need to improve financial projections, ensurecontracts are profitable and reduceexposure to currency fluctuations. The programme Excellence in ProjectControlling, rolling out in the second half of2010, is a classroom course that will helpProject Controllers’ position themselves asbusiness partners, giving them the soft skillsneeded to increase interactivity andcredibility with decision-makers. Hedgingfor Dummies, deployed in 2009, is a 21/2

hour free e-Learning programme that helpsthe financial community to identify currencyrisks, implement proper cover instrumentsand monitor the impact of these on income& cash-flow.

8

9

ENVIRONMENT, HEALTH & SAFETY

ActivitiesDuring 2009-10, the number ofparticipants in EHS training doubled, withan offer of new programmes and additionalsessions. New programmes included EHS AllTogether!Construction Excellence Program, EHSReporting, Process & Tools (launchedrespectively in July and August 2009) andCrisis Management. The EHS RoadmapInternal Assessor programme was enrichedby the addition of two new one-daycourses: EHS Roadmap Security Assessorand EHS Roadmap Fire and NaturalCatastrophe. The training programmes previously runby Power were transferred to AlstomUniversity, which also contributed toredesigning programmes following therestructuring of Power Service & PowerSystems.

Crisis ManagementEHS AllTogether! Construction Excellence ProgramEHS Awareness for Transporting HazmatEHS Reporting, Process & ToolsEHS Roadmap Fire and NaturalCatastropheEHS Roadmap Internal AssessorEHS Roadmap Security AssessorManaging EHS Supervisor Behavioural Coaching Program (SBCP)

e-Learning programmes:EHS Elevator – Level 1EHS Elevator – Level 2EHS Elevator – Level 3EHS Elevator – RefresherEHS Elevator – International GeneralCertificate

Key Figures: A total of 2,360 employeesparticipated in face-to-face and e-Learningprogrammes in 2009-10 compared to 1,404participants in 2008-09 (+40.5%).

1,184 Total trainees

(819 in 2008-09, +30.8%)

1,176EHS e-Learning programmes: Total trainees

(585 in 2008-09, +50.2%)

1,312 Total trainees

(943 in 2008-09, +28.1%)

PROJECT & CONTRACT MANAGEMENT

ActivitiesThe Project & Contract ManagementCurriculum was officially launched this yearwith a Programme Manager dedicated tothis important subject. In 2008-09, Alstom University administratedprogrammes solely on behalf of Power. Thisyear, training programmes from both Powerand Transport are managed by AlstomUniversity.From April 2010, overall 20 trainingcourses will be offered, some of which arecross-Sector. The Project ManagementCertificate Programme allows the Project & Contract Management communitymembers to earn an internationallyrecognised accreditation from the ProjectManagement Institute (PMI).

Commercial AwarenessCommercial ProficiencyDriving for Results in a Project TeamPlanning @ the Heart of the ProjectProject Management CertificateProgrammeProject Management FundamentalsProject Management Methodology (IS&T)Project Planning: Analysis and Control, the Alstom WayProject Planning: Time OptimisationProject Risk & Opportunity Management

Key Figures: 65 sessions compared to 44 in2008-09 (+32.3%)

Advan

ced M

anag

emen

t

Semina

r (IN

SEAD)

Alstom

Perform

ance

Manag

emen

t

& Talen

t Dev

elopm

ent

Chang

e Man

agem

ent

Effecti

ve Pres

entat

ions

Essenti

al Fa

cilitat

ion Skil

ls

Finan

ce for

Non-Fi

nanc

ial M

anag

ers

From Crea

tivity

to Inn

ovati

on

Manag

ing

Dispers

ed Te

ams

Positiv

e Pow

er

and I

nflue

nce

Project

Man

agem

ent F

unda

mental

s

for N

on-P

roject

Man

agers

Situati

onal

Lead

ership

The L

eade

rship

Journe

yTra

in the

Alstom

Traine

rTra

ining

Design

ProgrammeNumber of participants

75*

319

79 139

64 176

131

83 231

113

298

46 44 8

*Covers 2 cycles and 2 fiscal years

LEADERSHIP & MANAGEMENT

Key Figures: 128 Leadership & Managementsessions in 2009 compared to 118 in2008-09 (+7.8%)

ActivitiesIn the period 2009-10, the Leadership &Management Curriculum evolved andexpanded. This year, e-Team ManagementFundamentals (e-TMF), a 10-modulecourse for newly appointed managers ofpeople providing fundamental skills andbest practices, was launched worldwide.Recognised for its quality, this course hasbecome a mandatory prerequisite formanagers who enroll for the first time to amanagerial face-to-face course. During the year, Alstom PerformanceManagement & Talent Development wasredesigned in coordination with the HRInternal Trainers community, to integrate aWeb Conferencing tool and a solid prework.

This interactive training makes it morepragmatic, thus closer to the managers'needs. Also, a new blended learning“Finance for non-Financial Managers”course, custom-designed uniquely forAlstom’s reality, uses the latest simulationtechniques to equip learners to use thebasic financial tools.Alstom University has also created a series of short videos that are based onstudents’ and trainers' testimonies to helpparticipants choose the best programme forthemselves before enrolling.

259

e-Team Management Fundamentals

Total licenses

1,806Total trainees

(1,612 in 2008-09, +10.7%)

10

ADVANCED MANAGEMENT SEMINAR (AMS)

The Advanced Management Seminar (AMS) is an executive training programmedeveloped in partnership with the International Business School INSEAD. Managers withat least two years of seniority and ready to take on new responsibilities within Alstom arechosen by their managers as part of the performance management process. Candidatesmust actively participate in the entire programme, which lasts over several months, whilecontinuing to meet their professional commitments throughout the training period.

This year, the focus was on Alstom’s recovering environment. The visit of Patrick Kron andPhilippe Joubert was an opportunity to meet participants on the INSEAD campus inSingapore, to share their views and take questions on this year’s topic: “In the new and‘recovering’ social and economic environment, how can Alstom optimise its success?”

The current projects being studied by the class are:- Globalisation and Localisation- Our Green Credentials- Leadership Culture- Multimillion Euro Challenge

Innovation Management System (IMS) projectIn 2008, one AMS challenge team worked on innovation and proposed to the AlstomExecutive Committee an “Innovation Management System” (IMS) with a view to beingapplied to the business. The IMS project was based on simple concepts such as cross-fertilization between Sectors, cultural diversity, a bottom-up approach, and the creation of acommunity of managers becoming the main stakeholders of the proposed system. TheAlstom Innovation Board has decided to implement the IMS project on a 12-month pilot,applied to Power Thermal Services TUS and Transport TGS Infra Businesses. After a two-dayinnovative kick-off seminar at the La Courneuve site (Paris area), a new community of ahundred managers from both Businesses was formed, and dedicated to the deployment ofthe IMS project. This seminar is setting the pace for a new innovative life of the two unitswith specific methods, training, means and tools to drive Alstom towards a day-to-dayculture of Innovation.

INSEAD – Alstom Advanced Management Seminar 18th Cycle, Module 1.1 12 February 2010 in Singapore.

“The aim is to get‘everyone’ working on innovation. It will work faster if we all go at the same pace and rhythm.”Jean-Luc Alexandre, VP Infra TGS-Transport& David Briggs, TurbineService Unit ManagingDirector –2 of the 8participants in the 2008AMS challenge team on Innovation.

11

“PEOPLE QUEST

ALSTOM CONNECTION

41 ........50 ...... 45 ....■ Europe32 ........11 ...... 0 ......■ Asia0 ............0 ........ 53 ....■ North America0 ............0 ........ 0 ......■ Latin America27 ........39 ...... 2 ......■ India

2009

/10

2008

/09

2007

/08

2009

/10

2008

/09

2007

/08

69 ..........67 ........ 35 ....■ Power22 ..........26 ........ 63 ....■ Transport7................4 .......... 1 ......■ International

Network & Group

2................3 .......... 1 ......■ IS&T

People Quest is a five-day cross-Sector event built around four Leadership & Managementtraining courses. Participants learn from senior management and also participate in sitevisits, team building, networking and special workshop activities. This year, three People Quest events were organised. They took place in India (Delhi), Europe(Birmingham, UK) and in Asia (Beijing, China). Despite inactivity in North America and LatinAmerica, the total of participants increased by 22.8%.

ALSTOM UNIVERSITY EVENTS

472Total participants Alstom Connection

(292 in 2008-09, +38.1%)

232Total participants People Quest

(179 in 2008-09, +22.8%)

12

People Quest is aperfect demonstration

of Alstom principles: “It’s all about people!”

It was an intense exchangeof practices with other

participants. Despitedifferent origins,

Functions, Sectors, sites,we felt as ONE team!

Catarina Abrantes, StrategicPlanning & President Office

Manager, Switzerland

42 ........34 ...... 37 ....■ Europe12 ........30 ...... 29 ....■ Asia16 ........2 ........ 4 ......■ North America11 ........2 ........ 26 ....■ Latin America18 ........32 ...... 4 ......■ India

2009

/10

2008

/09

2007

/08

2008

/09

2007

/08

2009

/10

70 ........73 ...... 53 ........■ Power23 ........18 ...... 34 ........■ Transport4 ............7 ........ 10 ........■ International

Network & Group3 ............2 ........ 3 ..........■ IS&T

Alstom Connection is an induction training programme for newcomers with 3 to 12 monthsseniority in Alstom, nominated by their managers.Each induction programme brings together some 100 newly hired employees to learn aboutthe Group’s Values, visit Alstom sites and network through an innovative approach known as“Speed Connecting”. This year, activities bringing Alstom employees closer to the localcommunity have been systematically included in each of the events. Eighty tree saplings wereplanted by participants in India, 700 toys wrapped as Christmas presents for underprivilegedchildren in Brazil, and over 200 voluntary donations were presented to a school for migrantworkers’ children in China. This year, the number of Alstom Connection events doubled from 3 to 6. Each Regionorganised an Alstom Connection event, and one international version took place in Paris. The events took place in Europe (Hannover, Germany and Paris, France), North America(Atlanta, USA), India (Kolkata), Latin America (São Paulo, Brazil), and Asia (Wuhan, China).

Participants’ workplace location(from April 2009 to March 2010 in %)

Participants’ Sector (from April 2009 to March 2010 in %)

Participants’ workplace location(from April 2009 to March 2010 in %)

Participants’ Sector (from April 2009 to March 2010 in %)

Daniela Sandoval, Country Treasurer, Chile

Alstom is a very largecompany that operatesin several markets. Alstom Connection givesemployees the opportunity to meet other people, activities and functionsenabling personal growth and increasing ourintegration into Alstom. Daniela Sandoval, Country Treasurer,Chile

“

Catarina Abrantes, Strategic Planning & President Office Manager, Switzerland

“

472Total participants Alstom Connection

(292 in 2008-09, +38.1%)

232Total participants People Quest

(179 in 2008-09, +22.8%)

People Quest is aperfect demonstration

of Alstom principles: “It’s all about people!”

It was an intense exchangeof practices with other

participants. Despitedifferent origins,

Functions, Sectors, sites,we felt as ONE team!

Catarina Abrantes, StrategicPlanning & President Office

Manager, Switzerland

Alstom is a very largecompany that operatesin several markets. Alstom Connection givesemployees the opportunity to meet other people, activities and functionsenabling personal growth and increasing ourintegration into Alstom. Daniela Sandoval, Country Treasurer,Chile

“The Partners Advisory Board is the occasion for all of Alstom University’s key trainingpartners to meet with Alstom University and with each other. Organised around a series ofworkshops, it gives our service providers an opportunity to share on learning needs and tonetwork amongst themselves, creating new links that are to the advantage of all.The third edition of the Partners Advisory Board, held on 2 October 2009 in Paris, France,was opened with an update on Alstom’s business by Patrick Dubert. Two workshops wereorganised and facilitated by selected partners on the subjects of Certification and DeliveryMethods. The day was closed by Miklos Sarvary, Dean of Executive Education INSEAD, withan address on New Trends in Learning, the use of interactive technologies and the increasinginterest in Return of Investment (ROI) for training.

Partners Advisory Board Members:

Boostzone Bouygues Cegos Center for Creative Leadership (CCL) Center for Leadership Studies (CLS)/Professional Development & Consulting (PDC) Associates C.G. Wright & AssociatesChalk Media Service Convince Imagics INSEAD Interactive Services

International Institute for LearningKaos Consulting Linkage Pearson Learning Solutions Personnalité Right Management Sales Academy Smart Business Communications The Oxford Group Tower Watson Transnational Management Associates

15

PARTNERS ADVISORY BOARD

Distance Learning

Our business priority remains the improved profitability of Alstom. In the period 2009-10,Distance Learning – enveloping the new and alternative solutions to learning that producehigh quality results and can be delivered rapidly and globally – has geared up significantly.The year abounds in proof of its adoption.

The year’s main highlight was the Beta launch in March 2010 of AUtube, a peer videostreaming portal dedicated to learning. AUtube is in perfect phase with our desire to promotea sharing environment within Alstom. It is based on video learning, (v-Learning), anemerging learning method for the fast-paced worker who has little time for formal classroomtraining. All Alstom employees will be able to create and upload their educational videos toAUtube. Videos can cover a vast range of topics; offering a tip, a nugget of expertise, a pieceof information in an educationally entertaining way (“Edutainment”). This tool will evolveover the next year as new features become available.

AUtube embodies thespirit of innovation and

inspires the creativityof employees.

It brings lots of opportunitiesto learn from and

communicate with othercolleagues, as well as being a true self-learning processfor participants. During the

making of the film, weresearched how to use

Fengshui to improve theworking environment.

The video created great buzz!More than we hoped for.

Kathy Zhang, Executive Assistant to General Manager, China

“

16

AUtube is an invitation to learn from each other by capturing and sharing employees’knowledge through educational videos, problem solving and best practices.

AUtube at a glance

Hamid Shoebi, Director Infrastructure Transport,France

I found the e-Learningmodule on Ethics wellpresented, with clearcontent and an easyinterface.Now, I better understand the rules of the Code of Ethics and enjoy puttingthe code into contextthrough real-life scenarios.It made it clear... and easyto apply!

Hamid Shoebi, Director Infrastructure Transport,France

“

14,396e-Learning programmesTotal trainees

Kathy Zhang, Executive Assistant to General Manager,China

AUtube embodies thespirit of innovation and

inspires the creativityof employees.

It brings lots of opportunitiesto learn from and

communicate with othercolleagues, as well as being a true self-learning processfor participants. During the

making of the film, weresearched how to use

Fengshui to improve theworking environment.

The video created great buzz!More than we hoped for.

Kathy Zhang, Executive Assistant to General Manager, China

“

AU Mobile Solutions, training designed specifically to bring learning to your mobile device, isin the pre-market study phase. In 2009-10, Alstom University together with IS&T, conducteda pre-study of the technical solutions available for Smartphone devices. Although thetechnology is not yet fully mature, Alstom University is looking at this solution with enormouspotential.

I found the e-Learningmodule on Ethics wellpresented, with clearcontent and an easyinterface.Now, I better understand the rules of the Code of Ethics and enjoy puttingthe code into contextthrough real-life scenarios.It made it clear... and easyto apply!

Hamid Shoebi, Director Infrastructure Transport,France

“

14,396e-Learning programmesTotal trainees

19

Flagship e-Learning programmes

e-Englishe-Frenche-Germane-SpanishEnglish Phone callse-Ethics (our Code of Ethics)

e-Team Management FundamentalsAlstom Discovery TourEHS ElevatorEHS, the basicsHedging for DummiesOur Shared Values

Virtual classes (vc-Learning) were introduced in 2009-10. Similar to on-line meetings,virtual classrooms have real-life instructors who teach employees using Web Conferencingtechnologies. The first course delivered entirely by using the Web Conferencing technologywas deployed by the Sourcing Community.

In February 2010, as a result of the GAIN programme, an instruction was issued indicatingthat at least 50% of all language training must be conducted through e-Learning. Pilots tolearn a foreign language through virtual classrooms have had excellent results, as weoptimise employees’ time out of the office, accommodate travel schedules, and provide real-life instruction at a lower cost.

In partnership with Alstom’s Ethics and Compliance department, Alstom University designedand developed e-Ethics, an e-Learning module in 8 languages, mandatory for all Managersand Professionals and open to all employees. The programme was launched on 8 March2010. More than 12,000 employees were certified within just one month. The programmewill continue to be deployed during 2010-11.

Shared Services

The externalisation of the deployment administration of our training programmes to anexternal specialist was achieved successfully this year. New techniques, including blendedlearning and e-Learning have also found a role here in response to the demand for DistanceLearning solutions. With the Sourcing department, we were able to negotiate reductions of pedagogical costsand logistics expenses remained contained.With costs in mind, Regional Campuses helped to optimise locations for courses and injudging whether to host events on or off-site.As a result, reductions of Alstom University prices (from April 2010) are 7.5% on hotels and 17% on Sites on average. The most significant decrease occured in India and in Asia withreductions of 25.1% and 18.7% respectively.

attended Alstom University face-to-face training programmes were satisfied with the quality of the content delivered and the facilitation of the instructor.

of participants who attended Alstom University face-to-face training programmes were satisfied with the quality of the content delivered and the facilitation of the instructor.

95%

20

Quality Rating(from April 2009 to March 2010 out of 4)

08-09 09-10 08-09 09-10 08-09 09-10 08-09 09-10 08-09 09-10 08-09 09-10 08-09 09-10 08-09 09-10 08-09 09-10

2.5 2.5

3.0

Objectives 2009-2010

3.2

3.3 3.3 3.33.2 3.2

3.13.1

3.1 3.2 3.2 3.4 3.3 3.3 3.2 3.1 3.3 3.3 3.2 3.1 3.2 3.0 3.2 3.1

Prepara

tion w

ith th

e man

ager

Cours

e con

tent

Instru

ctor 1

Instru

ctor 2

Organis

ation

Recommen

datio

n

Overal

l satis

factio

n

Network

ing

Total

avera

ge

The quality rating objectives were the same as last year to maintain the sessions’ qualitywhile deploying more sessions at the international level.Local delivery of programmes shows an increased number of Internal Trainers and localproviders. The challenge was the improvement of the instructor quality and the improvementof the Internal Trainers skills.We are still working on the improvement of the “Preparation with the manager” indicatoras we strongly believe this involvement affects the long-term benefits of all programmes.

Our Internal Trainers

Human Resources

Project Management

Leadership & Management

EHS

Sourcing

Other Functional Programmes*

Sales & Marketing

Finance

Product Development/Engineering

10% 10%

8%

6%

6%

23%

16%

19%

2%

To continue fostering knowledge sharing and transfer within Alstom, Alstom University tooka proactive approach to identifying employees who are open to training others to share theirexpertise. Our Internal Subject Matter Experts (SMEs) facilitate learning and developmentwhile contributing to their personal and professional development.

Anyone interested in becoming an internal trainer should contact Alstom University. Onceselected, new Internal Trainers participate in Train the Alstom Trainer programme to helpensure success when delivering or co-facilitating a course.

800Internal Trainers from

47countries have been identified

In 2009-10 more than

To better understand the profile of our Internal Trainers, their needs and expectations, AlstomUniversity carried out an Internal Trainers survey. The survey was sent to our 817 InternalTrainers with 449 responding. First highlight to mention is that half of those who answeredcontributed twice yearly to the delivery of Alstom University courses. Among the respondents,47% of Internal Trainers declared they attended training programmes to reinforce theirtechnical and behavioural skills, and to better manage the facilitation of an Alstom classroomtraining.Respondents also recognised the advantages of being an Internal Trainer. There is the pleasureof sharing, a welcome diversity in activity and valuable networking opportunities with participants and other Internal Trainers (85% of respondents want to be connected withother Internal Trainers). The possibilities for self-development via the chance to refresh and increase knowledge,develop professional self-confidence and improve communication skills are considerable. Thereis likewise the pleasure and benefits of peer recognition. Today, for 36% of respondents, theirrole and commitment as an Internal Trainer is part of their annual Performance Review andincluded in their Development Plan.

21

Internal Trainers breakdown

* Other Functional Programmes: Information Systems and Technology, Quality Management, Legal, Production &Supply, General Management, Communication, General Services/Utilities, Maintenance & Post-Sales services

Internal Trainers survey (Survey launched on 23 February 2010 and closed on 12 March 2010)

Top 5 locations of Internal Trainers: 1 China 2 France 3 US 4 Switzerland 5 Brazil

817Internal Trainers

55%response rate

Survey sent to

Alstom Collaborative Way

Alstom continues to recognise the value of the collaborative approach both to implement itsgrowth strategy successfully and to execute complex operations efficiently. Capitalising onour expertise, Know-How and diversity, creativity is the best means to achieve this with theemphasis not only on tools, but on people interacting in the most collaborative way possible.In 2009-10, the Alstom Collaborative Way (ACW) moved from Project to Adoption phase.Collaboration – increasingly seen as a crossover between knowledge management andcommunity networks – is an essential way of working.

ACW Operational CouncilMarking this shift, the ACW Operational Council was created in May 2009. Its role is toenhance the deployment of collaborative activities in a more efficient way across the Group.Among its tasks is to identify and select suitable transversal collaboration opportunities,supply launch and coordination, advice for collaborative initiatives, offer diverse operationalguidance, and generally to promote collaborative actions in a coherent way and with acommon methodology, throughout Alstom.

Communities in a Knowledge Management contextIn the past years, Alstom has adopted a wide range of knowledge related practices(Knowledge Transfer, Critical Knowledge mapping, Transfer of Technology,…) often startingwith information and communication technology projects to facilitate knowledge flow. Communities are now being seen as a useful way to share that knowledge and have thereforegained management attention, allowing people form relationships and establish trust.Much of this attention has been given by the Sectors, Functions and Businesses seeking tofind new ways to respond ever more quickly to the demands of the Knowledge ManagementCommunity and Innovation topics.

Knowledge Management Knowledge Management is not a new concept. It is a combination of collaborative ways of working and collaboration technologies. It enables individuals, teams, and communities to create, capture, share, and harness knowledge to do the things they do well, even better. Collaborative initiatives continue to gain momentum across Alstom thanks to their strategic importance to the organisation. Technologies such as blogs, wikis, discussion threads, and communities are gaining in awareness, acceptance, and adoption.

22

ACW at a glance

Telepresence● 10 sites equiped● Av. 53 hours

monthly per site

Wiki● 75 wikis● Av. 365 visits

per day

Web Conferencing● 2,200 webmeeting

per month ● 6,500 participants

per month

DocumentManagementSystem● 21 Docspaces● +23,500 hits

per day

Community Networks

As a means of supporting our mission to build a learningenvironment, Alstom University has believed firmly, since itsbeginnings, in the value of creating communities to improvecollaboration across Alstom. To achieve this goal, the role ofCommunity Networks is to provide a model and referencepoint for the organisation’s collaborative culture, helpingpeople to connect by integrating collaborative technologiesinto ways of working.Following this success, the Community Networks team has been able to shift from promoting the benefits of creating

communities to providing guidance and support for their creation and development.

During 2009-10, Communities have contributed to the organisation in many ways. - Innovation: IMS Community and the Innovation Award are examples of how Communities

stimulate innovation. - Easier reuse of knowledge assets, for example through shared access to a repository of

best practices. Some examples include: Alstom Power Plant Encyclopedia, and severalwikis in the areas of Power Supply Chain, Project Controlling, Transport Safety Related Codeof Practices, EHS, and Finance.

- Quicker response to business needs by providing access to the expertise needed to solveproblems. A good example is the Global Field Service Network whose main objective is tosupport the Alstom Power strategy by sharing best practices, skills and Know-How withinits organisation and its 5,000 employees located in 30 countries.

- Rendering new employees productive quickly by access to mentoring and support. In thisarea, we have the University Relations wiki, the Interns Collaborative network, as well assome newcomer integration initiatives like the Power Risk Management Day held in October 2009.

- New ideas for products and services by sharing perspectives and ideas. One example is TheSeawater Flue Gas Desulfurization (SWFGD) Community whose role is to ensure Alstom’sglobal leadership position in this Product Line through product differentiation via increasedperformance and reduced overall cost.

Developing Community Leaders As part of its role to provide community leaders and sponsors with the right support and skill set, the Community Networks team piloted a one-day training in November 2009 for Community leaders and key actors in community management, along with Knowledge Management teams.

23

The Regional Campuses continue to evolve and are maintaining therate of participation. In the meantime, work continues being carriedout to identify local providers who can combine a global perspectivewith high standards of professionalism in delivering training.

24

world Our mindset aroundthe

Regional Campuses

Latin America

28Total sessions

(18 in 2008-09, +35.7%)

25

Giving back to the local community This year, Alstom employees were asked to collect toys for donation to charity organisations as part of a project by Hydro Taubaté. In all, 700 dolls, cars, educative games, balls, and other toys were collected. Participants of Alstom Connection visiting the Site had the opportunity to wrap the presents for disadvantaged children. They contributed with pleasure and energy to the initiative which reinforced the sense of Alstom being a global community.

This year, an increased number of programmes were run with local providers and in the locallanguages (Spanish and Portuguese). For example, Effective Presentations in Brazil andVenezuela, and Time Management in Venezuela. The latter was launched this year andequips participants to identify values, set goals accordingly and manage the flood ofinformation we encounter daily to reach our business goals. Some courses were run for thefirst time in the region, including Negotiation in 7 Steps, Legal Training for Supply Chain fromSourcing, and The Leadership Journey from the Leadership & Management Curriculum. Aone-month pilot e-Learning programme in English was run over the whole region with 300participants. One of the main objectives of the coming year will include the development ofmore e-Learning programmes within the Region.

It is my fervent wishthat all could have an

experience of such a memorable Site visit

to Durgapur andparticularly the tree

planting activity:an environmentally friendly

job truly kissed by the Gods!In today's busy life, Peace,Solitude and Purity of the

soul are the treasures you look for. It was amemorable feast for

all of us in Alstom.

Chitra Punjabi, Accounts executive, India

“ India

"The Alstom Connection event in Kolkata was a great example of the effectiveness of theprogramme. Our colleagues from all Businesses participated withenthusiasm as was in evidence with their pro-active involvement. It will be good to see more of these programmes in India as we go forward to our next level of growth here."

Sunand Sharma, India CountryPresident

26Total sessions

(18 in 2008-09, +30.8%)

26

The India Regional Campus focused on Project & Contract Management related trainingssuch as Project Management Fundamentals for non-Project Managers, Project ManagementCertificate Programme, Commercial Awareness, Project Risk & Opportunity and ProjectPlanners Development Programme. Also, a Project Management Day was organised in April2009. EHS continues to be a vital focus of training. In all, 488 employees participated inLeadership & Management and Functional trainings.

During the Alstom Connection held in Kolkata in November 2009, 77 new employeesenjoyed a new experience when they planted over 80 tree saplings in the Durgapur townshiparea. This action is part of the Group’s initiative to support local communities andenvironmental actions worldwide by involving Alstom employees.

Li Ding, Media Relations Manager, China

It is a big honour for me to participatein the voluntarydonation programmeduring the AlstomConnection. I do wish the students will find our donated itemsuseful to their study and life. It is not only a company's responsibility,but also everyone's duty to contribute to thecommunity and give a hand to those who need help. I look forward to seeing more suchvoluntary initiatives in the future.Li Ding, Media Relation Manager, China

“

Chitra Punjabi, Accounts Executive, India

It is my fervent wishthat all could have an

experience of such a memorable Site visit

to Durgapur andparticularly the tree

planting activity:an environmentally friendly

job truly kissed by the Gods!In today's busy life, Peace,Solitude and Purity of the

soul are the treasures you look for. It was amemorable feast for

all of us in Alstom.

Chitra Punjabi, Accounts executive, India

“

"The Alstom Connection event in Kolkata was a great example of the effectiveness of theprogramme. Our colleagues from all Businesses participated withenthusiasm as was in evidence with their pro-active involvement. It will be good to see more of these programmes in India as we go forward to our next level of growth here."

Sunand Sharma, India CountryPresident

It is a big honour for me to participatein the voluntarydonation programmeduring the AlstomConnection. I do wish the students will find our donated itemsuseful to their study and life. It is not only a company's responsibility,but also everyone's duty to contribute to thecommunity and give a hand to those who need help. I look forward to seeing more suchvoluntary initiatives in the future.Li Ding, Media Relation Manager, China

“

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Asia

Programmes on Operational, Managerial and Leadership Know-How, and crossbordercooperation formed the focus this year. The Asia Regional Campus met an increase in trainingneeds in Leadership & Management programmes, as 6 programmes were delivered in 5 countries compared to 2 countries in 2009-08. Advanced Performance Management & Talent Development was one the key programmesdeployed in the Region. One of the main focuses was also the development of e-Learningprogrammes such as e-English, introduced in some Power Business Units, with more than100 participants. Besides the organisation of the third session of Alstom Connection, the firstsession of People Quest in Beijing, China, was also successfully delivered. In all, 819 employees from 12 countries attended Alstom University learning programmes.

51Total sessions

(44 in 2008-09, +11.8%)

From left to right: Hong-Chai Cheong, Jun Zhou, Xin Tian, Vanessa Pascual

During the Alstom Connection event in Wuhan (China) in March 2010, participants brought voluntarydonations of toys and educational material for the students of the Spring Buds School in Wuhan, whichprovides elementary education to the children of immigrant workers in the city.

30

North America

North America has also embraced the Alstom Collaborative Way initiative as a value-addedopportunity for all Businesses in the Region to enhance communication, create synergies and reinforce a positive, “thinking out of the box” philosophy. Web Conferencing meetings and problem solving sessions are becoming more and morecommon as managers and professionals become familiar with the advantages of the newtools available. For example, a NAM Thermal Services all-employee meeting was conductedon-site, offering a Web Conferencing option for employees located at distant/remote sites. Itwas effective and well received. Additionally, the ACW tool, “Community of Interest” wikiwas established by the Country VP of HR for the US HR teams.One of the highlights this year was an Alstom Connection conducted in Atlanta, GA with 70 participants in attendance from all Sectors and Businesses and involving one of our maincustomers as guest speakers. Lastly, Alstom University Financial & Leadership courses have been recertified in the U.S. for2010 by the National Association of State Boards of Accountancy (NASBA).

Europe

In 2009-10, the Europe Regional Campus continued its strategy of getting closer to theworkforce. The Campus ran 74 Leadership & Management sessions in 7 countries and at 13different locations. Among the 1,009 participants, the “Positive Power and Influence”,“Finance for non-Financial Managers” and “Situational Leadership Applied” programmeswere the most popular. In addition to the regular Alstom University Curricula, 28 HumanResources sessions were also organised.Nearly 120 cross-Sector newcomers from the Region gathered in June 09 for an AlstomConnection event in Hannover, Germany. In September 09, a further 100 employeesattended the week-long People Quest event in Birmingham, UK. With its ever-growingexperience, the Europe Campus reduced overall cost of events by nearly 40%, contributing tothe GAIN programme. On 1 April 2010, Training Centre Baden (TCB) in Switzerland and Campus Europe will merge.This increases the number of programmes in the portfolio and is another step towardsbringing us closer to our customers. The TCB was launched in 2001 and provides trainingprogrammes for all Alstom Switzerland employees.

273Total sessions

(235 in 2008-09, +13.6%)

47Total sessions

(51 in 2008-09, -7.8%)

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Alstom University, while passionately involved in thepresent, looks continuously towards the future and newperspectives.

new tools, on the go always

ways, New

One focus is to obtain Quality accreditation for the Alstom University organisation, andsubsequently to look at extending certification and higher education credits for ourprogrammes. Certification of selected AU programmes will offer Alstom employees access toin-house courses with externally recognised credentials. Alstom University also wishes toextend the scope of certification by offering employees the opportunity to certify themselves.We have negotiated a 15% discount for Alstom employees from the Association ofProfessionals in Business Management (APBM). Employees are offered the possibility toschedule free consultations with APBM staff to discuss how Certified Associate BusinessManagement (CABM) and Certified Business Manager (CBM) certifications can enhancetheir career development. We intend to explore other partnerships with top professionalbodies to reduce further the cost of mandatory and voluntary certifications.

Phase 2 of AUtube is imminent, bringing with it improvements such as allowing certainelements to be password protected if desired. This brings us firmly into the era of“Edutainment”.

In the coming year, Quality and Operations modules will be integrated into the AlstomUniversity offering.

We will also work with our colleagues in Transmission to better reinforce our training offers,and evaluate the necessity for an additional campus to meet the broader spread ofemployees.

In early 2010-11, we will enter Phase 2 of the Learning Management System (LMS) project– the global system that will facilitate training planning and budgeting, and host DistanceLearning solutions, manage learning administration and reporting. The tools and providerselection phase will start mid-2010. The LMS project is part of the GAIN programme and islinked with the HR Efficiency Project.

With a mind to providing both excellence and maximising returns, we will pursue the effortsbegun in the GAIN programme, and continue to look for economies in the coming year.

An exciting new self-directed learning project called Business Insiders will roll out during2010-11 making a selection of the “Best Business Book Abstracts” available to all employeesvia Alstom University Intranet pages.

Yali Wei, Development & Strategy Manager, China

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