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1
Ansaldo STS
2012 First Semester Results
26th July 2012Analysts Conference
2
1H 2012 Results - Key data
(M€)
Backlog
Revenues
ROS
Net Financial position
1H 2011 FY 2011
EBIT
Net Profit
Working Capital
R&D
Total Headcount
Orders
1H 2012
2.163,7
5.452,8
1.211,9
9,6%
(289,7)
116,1
73,1
(89,0)
33,9
4.100
667,7
4.617,7
569,2
9,2%
(212,8)
52,2
32,1
(61,5)
19,9
4.189
796,1
5.689,0
568,5
8,9%
(213,3)
50,6
29,7
(1,3)
16,2
4.028
19,2%
-0,1%
-0,3p.p.
-3,1%
-7,5%
-18,6%
-3,8%
23,2%
-97,9%
0,2%
% change
3
Backlog
Revenues
ROS
1H 2012 1H 2011
EBIT
Operating Working Capital
R&D
Total Headcount
Orders
1H 2012 results - Key data by business unit
448,4
2.155,6
351,4
10,3%
36,3
100,0
18,9
3.184
222,6
2.705,8
226,2
9,3%
21,1
(123,5)
1,0
565
Signalling Transportation Solutions
The above mentioned figures are gross of eliminations between business units
1H 2012 1H2011
453,9
2.581,8
334,2
10,4%
34,8
139,8
15,3
3.033
349,9
3.441,6
242,4
10,3%
25,1
(114,0)
0,9
592
(M€)
4
57%43%
Transportation Solutions
Signalling
1H 2012 - Revenues by business unit and region
35%
21%10%
31%
3%
SignallingSystems
ComponentsService
&Maintenance
82% 10% 8%
Signalling:334 M€
Service & Maintenance
Tsl systems Tramways
9%
Transportation Solutions:242 M€
90% 1%
Italy
RoW
North America
APAC
RoE
Revenues: 568 M€ by Geographic area
Data gross of inter-company eliminations
5
First Semester 2012 – Major Business Events
Australia - Contracts awarded for mining rail network
July 6th, Signed in June, is for the development and delivery of an automated trainmanagement system for 1,500km heavy-haul iron ore rail network in the Pilbara region of Western Australia.The automated heavy haul railway, to be completed in 2015, will be the first of itskind in the world and will significantly enhance the flexibility and capacity of our clientmining rail network.
Australia - Heavy rail traffic with satellite positioning part of the Roy Hill Iron Ore project
May 2nd: The first two phases of a staged signalling and communications system for the Roy Hill Iron Ore Project Mine’s 342km heavy haul rail Line, in the Pilbara region of Western Australia. The signalling solution offered is technically significant for the global rail industry as it involves centralized routing and automatic train protection (ATP) with satellite positioning. This Solution is the result of the integration of Ansaldo STS’ technical skill with its leading edge products, and sets a new benchmark for railway signalling systems offering major advantages in terms of increased availability, quality and safety.
Roy Hill 1project area
USA - Positive Train Control (PTC) system for the Southeastern Pennsylvania Transportation Authority (SEPTA)
April 3rd, Ansaldo STS’s PTC system will control SEPTA’s regional rail system, which serves five counties in the Philadelphia, Pennsylvania region, using a PTC-compliant speed enforcement system..
6
Agreement for TRAMWAVE® to ChinaTransfer of licensed technology to CNR Dalian and General Resources Company, July 16th
TRAMWAVE® is an Innovative Power Supply SolutionWhat is it• Solution to provide power via a contact line energizing only a
small section of the line as the tram passes over it
Design to maximize• Eco-friendliness, preservation of natural/ cultural heritage and
respecting the urban legacy and the old buildings near the line
• Safety (only gravity and electro-magnetic principles)• Diagnostic level in all conditions
Where can TRAMWAVE® be applied?• Virtually all new tramway lines
TECHNOLOGY Agreement• The ASTS, CNR Dalian and GRC are interested in a
long term cooperation in order to jointly develop
business opportunities in the Chinese catenary-free marketand wishes to further assess any other joint business
opportunity in the Chinese Mass Transit and Railway market independently from the catenary-free technology
7
1H 2012 - Main order acquisitions
Australia* AutoHall Rio Tinto 252,8
Australia Roy Hill 1 Hancock Prospecting 118,0
USA PTC SEPTA 73,4
Australia* ATO Implementation Rio Tinto 66,8
Italy France USA Components, Service & Maintenance Various 65,2
UAE – Abu Dhabi GCC – Abu Dhabi SAIPEM 58,8
Canada Phase 2, 3 & a Extention TTC 22,8
Canada North Spadina Extension TTC 18,3
Italy* Metro Line 1 Naples Municipality 13,2
Italy HSL variation orders MI-BO / Rm-NA RFI 9,5
Country Project Customer Value(M€)
The list represents about 88% of total order intake for 1H 2012(*) Transportation Solutions Orders
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43%57%
41%59%
24%
23%20%
19%
14%
Backlog: 5.689 M€
Italy
RoW
North America
Signalling
1H 2012 - Backlog by business unit and region
Transportation Solutions
APAC
RoE
by Geographic area
1H 2011
37%
26%4%
17%
16%
Data gross of inter-company eliminations
9
56%44%
7%
5%
20%61%
7%
Orders : 796 M€ by Geographic area
Transportation Solutions
Signalling
1H 2012 - Orders intake by business unit and region
ItalyRoW
North America
APAC
RoE
Data gross of inter-company eliminations
10
Transportation Solutions revenues contribution
Data subject to possible revisions
As for Transportation Solutions BU the list represents~90% of SG June Backlog
2011 2012 2013 2014 2015 2016 2017
Honolulu Metro
Roma Line C
Rio Tinto RAFA application contracts
Naples Line 6
Thessaloniki
Main Transp. Solutions Orders from June Backlog
Milan line 5
Riyadh
Brescia Metro
Naples Metro
Genoa Metro
Copenhagen O&M extension
Taipei
Copenhagen City Ring
11
2011 2012 2013 2014 2015 2016 2017
Roy HillTurin - PaduaMain Signalling Orders from June Backlog
LGV ph 2Turkey Mersin ToprakkaleETCS Greece KFW (IRPMU)ERTMS ZefiroTurkey Gebze-KosekoACC Genoa MultistationLGV SEAIpoh Pedang BesarATC Kolkata MetroUP CADXABU DHABIBretagne Pais de la LoireSEPTA USA
Ankara MetroRed Line Stockholm
As for Signalling BU the list represents orders above 13mil€ and ~40% of SG June Backlog
Signalling revenues contribution
Data subject to possible revisions
12
Ansaldo STS: Guidance 2012 – Confirmed
Orders 1.500 - 1.700
Backlog 5.700 - 5.900
Revenues 1.200 - 1.300
ROS (1) ~9,5%
Net Financial position ~(300)
2012Guidance
(M€)
(1) Including restructuring severance costs for 8m€ in 2012
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Back up details - 1H 2012 - Total headcount
CountryMain
HeadcountLocations
ITALY Genoa 1.526Naples
TurinPotenza
FRANCE Les Ulis 520Riom
SPAIN Madrid 70
UK London 10Manchester
SWEDEN Stockholm 44
USA - CANADA PittsburghBatesburg
AUSTRALIA Brisbane 556 Perth,
INDIA Bangalore 209
MALAYSIA Kuala Lumpur 165
BOTSWANA Gaborone 29
CHINA Hong Kong 68
Other Locations 21
TOTAL 4.028
810
Montreal
Bejing
1%
38%
16%
20%
25%
Rest of EuropeUSA Canada
APACOther
Italy
14 Including Libya’s orders
Back up details – Ansaldo STS key data trends by quarter
2006 2007 2008 2009 2010 2011 2012
-
200
400
600
800
1,000
1,200
1Q 2Q 2Q1Q4Q3Q2Q1Q4Q3Q
5,000
7,500
2,500
4Q3Q2Q1Q4Q3Q2Q1Q4Q3Q2Q1Q4Q3Q2Q1Q
Backlog
Backlog
Revenues
Orders
15
50,652,2
9,6
3,7
-11,8
-0,2
0
10
20
30
40
50
60
June 2011
M€
LowerVolumesImpact
8,9%9,2%
June 2012Contractmix
R&DCosts
decrease
Opex& Other costs
decrease
-2,9
Restructuringcosts
Back up details - EBIT evolution1H 2011 vs 1H 2012
16
01-Jan-07 01-Jan-08 01-Jan-09 01-Jan-10 03-Jan-11 02-Jan-1260
80
100
120
140
160
180Five years of free capital increase - details
The free cap. increase is just an accounting operation with no effects on the financial structure of the company:
Free capital increase plan: 2010 2011 2012 2013 2014
Mil of shares before the capital increase 100 120 140 160 180
Mil of shares after the capital increase 120 140 160 180 200
Factor of correction 0,833 0,857 0,875 0,889 0,9
This factor of correction (in 2012 is 0.875) must be used to make comparable the prices above periods of time.For instance in order to compare the present value of the share with the one concerning one year ago, it is necessary to correct last
price multiplying it for 0.875. In fact the IPO offering price adjustment will be :
share capital
assets
liabilities
equities
reservesreserves
share capital
free capital increase
2010 2011 2012 2013 2014
i.e. Offering price adj., after eachtranche of free cap. increase
6,5= 7,8x0.833
5,57= 6,5x0,857
4,87= 5,57x0,875
4,33= 4,87x0.,89
3,9= 4,33x0,9
July 05, 2010: I tranche,
free capital increase
July 04, 2011: II tranche,
free capital increase July 09, 2012: III tranche,
free capital increase
17 Ansaldo STS Investor Relations Dept.
GlossaryAF-900® —Part of an Automatic Train Control System (ATC), providingboth train detection and transmission of digital cab signalling data forthe Automatic Train Protection (ATP) function of the ATC.
ATC — Automatic Train Control, or ATC, is an integrated signallingsystem that guarantees the secure movement of trains. ATC integratesvarious subsystems positioned on-board and wayside. In addition to afull interlocking system, a complete ATC system consists of threesubsystems: (i) ATP, (ii) ATO and (iii) ATS.
ATP — Automatic Train Protection, or ATP, is an ATC subsystemresponsible for the safe operation of a signalling system. It imposesspeed limits on trains, both to maintain a safe operating distancebetween them and to comply with safety and speed requirements. TheATP system is designed to be a fail-safe (vital) system.
ATO —Automatic Train Operation, or ATO, is an ATC subsystemwhich performs on-board, non-vital functions normally performed by atrain driver, including ensuring a smooth acceleration of the train to therunning speed, speed regulation and smoothly stopping the train at theproper position at station platforms or in front of stopping signals. ATOsubsystems are primarily located on-board and represent one of theprincipal components of a driverless system. Additionally, ATOsubsystems report vehicle health status to the central control offices.
ATS — Automatic Train Supervision, or ATS, is an ATC subsystemwhich operates to control trains automatically by means of ATO andATP, in accordance with the railway timetable. This also involves a CTCsystem.
ATSF — Ansaldo Trasporti Sistemi Ferroviari, Transport SolutionsBusiness Unit.
Balise — An electronic beacon or transponder placed between the rails ofa railway as part of an Automatic Train Protection system.
CBI —Computer Based Interlocking, or CBI, is an Interlocking System(see below) where the traditional wired networks of relays are replacedby software logic running on special-purpose fail-safe control hardware.
The fact that the logic is implemented by software rather than hard-wiredcircuitry greatly facilitates the ability to make modifications when needed byreprogramming rather than rewiring.
CBTC — Communication Based Train Control, or CBTC, is a system underdevelopment that will allow for the interchangeability of different technologicalsystems in use on various metro lines. CBTC can be understood as an attemptto create an ERTMS type standard for the mass transit industry.
CPTM — The Companhia Paulista de Trens Metropolitanos runs the city ofSão Paulo's suburban passenger services.
CTC — A Centralized Traffic Control system, or CTC, monitors the status ofsignalling on a line or network and displays the relevant status information to acentral operator, assists in the management of the line or network consistentwith the timetable and exercises control to prevent small schedule disturbancesfrom becoming traffic jams. CTC also notifies the operator of ATC equipmentfailures and of failures in traction power and passenger station supportfacilities.
DPL — Dedicated Passenger Line.
GNSS (Global Navigation Satellite System) satellite-based global navigationsystem, can rely on US GPS (Global Positioning System) or Russian GLONASS(Global Navigation Satellite System) or European Galileo system underdevelopment.
ETCS — The European Train Control System (ETCS) is a signalling, controland train protection system designed to replace the many incompatible safetysystems currently used by European railways, especially on high-speed lines.
ERTMS — The European Rail Traffic Management System, or ERTMS,ERTMS was introduced by the EU in 1992 as a means of creating a uniformsystem of command, control and coordination of rail traffic to allow for‘‘interoperability’’ throughout EU territory. The ERTMS standard exists atthree levels (ERTMS 1, 2 and 3) depending on use, each distinguished by thetype of wayside and on-board equipment used and the manner in which thisequipment communicates relevant data.
18
Glossary
Ansaldo STS Investor Relations Dept.
EUROCAB — Onboard computer used to process ETCS information.
FS — Ferrovie dello Stato S.p.A, or FS, the operator of the Italian railwaynetwork.
HSL — High Speed Line, or HSL, refers to railway lines with capacity for speedsin excess of 200 km/h (125 mph).
ICSS — Integrated Control & Safety System. Integrated CommunicationSwitching System.
Interlocking System (IXL) — An interlocking system is responsible for thereliable and safe movement of trains inside a station, through complex junctionsand for the length of the line. The interlocking system ensures that trainmovement is permitted only when a route is available and the switches along thisroute are safely locked in their position. In all cases the interlocking allocates atrack portion or a route to one train at a time, excluding all others.
LRT — Light Rail Transit, or LRT, refers to a form of urban rail transit thatutilizes equipment and infrastructure that is typically less massive than that usedfor metro systems, with modern light rail vehicles usually running along thesystem.
MicroLok® — Wayside control system consolidating vital and non-vital controllogic, data transmission and coded track circuits into a single package.
MT — Mass Transit.
OTP — Optimizing Traffic Planner, or OTP, is a traffic management systemthat permits real time monitoring of the positioning of trains throughout arailway system. OTP optimizes system or network capacity by safely minimizingthe time between trains, thereby reducing operating costs. OTP is primarilydesigned for those markets where railway systems infrastructure is being used tofull capacity.
OURAGAN — A large-scale programme implemented by RATP for the re-signalling of 13 lines. OURAGAN is intended to standardize CBTC technologyand diversify suppliers, based on the concept of interchangeability.
PTC — Positive Train Control: North American freight railway implementationof CBTC.
RBC — Radio Block Centre. All trains automatically report their exactposition and direction of travel to the RBC at regular intervals.
RFF — Réseau Ferré de France: manager, project leader and owner ofthe French national rail network.
RFI — Rete Ferroviaria Italiana S.p.A., or RFI, is a subsidiary of FS(defined above), responsible for managing the Italian railwaysinfrastructure.
RZD — Rossiyskie Zheleznye Dorogi/Russian Railways is the state-owned railway company of Russia.
SCADA A Supervisory Control And Data Acquisition system, orSCADA, allows for the supervision of the various subsystems at work ina railway or mass transit environment. SCADA collects informationfrom remote installations, transfers it back to a central office, analyzesthe information, takes appropriate action and displays that data on anumber of operator screens.
SCMT — Sistema di Controllo della Marcia del Treno: automatic trainprotection system.
SNCF — Société Nationale des Chemins de fer Français. The FrenchNational Railway Company is concerned with the operation of railservices for passengers and freight, and the maintenance as well assignalling of rail infrastructure owned by RFF.
SSC —Sistema Supporto Condotta: Italian train stopping system. Lesssophisticated than SCMT.
TLC — Trainline Controller provides an interface between CBTCequipment and the rolling stock’s conventional controls.
TTCS: Train Conformity Check System verifies the conformity ofrunning Rolling Stocks
19 Ansald STS Investor Relations Dept.
Mr. Alberto Milvio, the Manager in charge of preparing the company’s financial reports, hereby declares, pursuant to article 154-bis, paragraph 2 of the Consolidated Law on Finance, that the actual accounting information contained in this presentation corresponds to document results, books and accounting records NB:The management of Ansaldo STS also assesses the business and financial performance of the Company and its business segments based ona number of indicators not provided for by IFRS.
As required by CESR recommendation CESR/05 - 178 b, the components of each of the non-GAAP alternative performance indicators used inthis press release are defined below.
EBIT: i.e. earnings before interest and tax, with no adjustments. It excludes income and expenses from the operations of unconsolidatedsubsidiaries and securities, and gains/losses on any sales of consolidated subsidiaries, which are recorded under “financial income andexpenses”, or in the case of profits/losses from shareholdings valued using the equity method, under the item “effects of the valuation ofshareholdings at equity”.
EBIT margin: is calculated as the ratio of EBIT to revenues.
Free operating cash flow (FOCF): this is the sum of the cash flows generated by/used in operations, cash flow generated by/used ininvestments in or disposals of tangible and intangible assets and shareholdings, net of cash flows from the purchase/sale of shareholdings that,due to their nature or size, are considered “strategic investments”.
Ansaldo STS SpA
Via Paolo Mantovani, 316151 Genoa, Italy
V.P. Investor Relations Andrea Razeto
Tel: +39 010 655 2068Fax: +39 010 655 2055