1. Ansaldo STS Group Year End 2011 Results Genova – 5th March 2012 Analysts Conference1
2. YE 2011 Results - Key data (M€) % 2011 2010 change Orders 2.163,7 1.985,0 9,0% Backlog 5.452,8 4.551,1 19,8% Revenues 1.211,9 1.283,7 -5,6% EBIT 116,1 137,1 -15,3% ROS 9,6% 10,7% -1,1p.p. Net Profit 73,1 94,9 -23,0% Working Capital (89,0) (154,3) -42,3% Net Financial position (289,7) (318,2) -9,0% R&D 33,9 34,8 -2,6% Total Headcount 4.100 4.217 -2,8% Tax Rate 36,7% 28,8% +7,9p.p.2
3. YE 2011 vs YE 2010 - Income Taxes break down (M€) Dec. Dec. 2011 2010 Corporate Italian income taxes (IRES) 23.615 32.384 Regional taxes (IRAP) 7.010 8.416 Other taxes on profit (foreign companies) 6.421 6.163 Taxes related to previous years 44 332 Net Deferred taxes 5.206 (8.992) Total 42.296 38.303 Tax Rate 36,7% 28,8%3
4. YE 2011 – Dividend declaration• The Board of Directors of Ansaldo STS will propose to next Shareholders meeting , a total dividend amount equal to 28 M€, corresponding to 38,3% of Consolidated Group Net Result of the Year 2011, instead of previous 33,6 M€ corresponding to 35% of Consolidated Group Net Result 2010.• The dividend per shares is 0,2€, compared with 0,28€ of the previous year (based on 120 m/shares) or 0,24€ (based on current 140 m/shares) after the second tranche of the capital increase of 4 July 2011.4
5. YE 2011 - Backlog by business unit and region Backlog: 5.453 M€ by Geographic area Signalling RoW 13% APAC Italy 39% 13% 29% 61% 19% 26%Transportation North RoE Solutions America 2010 17% 42% 36% 16% 58% 5% 26% 5
6. YE 2011 - Main order acquisitions Country Project Customer Value (M€) USA * Honolulu Metro HART 841,8 Italy TO-PD line (and variations) RFI 210,5 Denmark * Copenhagen - vehicles Metroselskabet 121,9 Italy * Milan Line 5 ext. Garibaldi - San Siro Milan Mun. 105,2 Sweden Stockholm Red line SL 85,0 France Italy USA Components, Service & Maintenance Various 86,3 Australia * Rio Tinto RAFA phase 1 Rio Tinto 70,0 France HSL Bretagne – Pays de Loire EIFFAGE 62,0 Australia * Various Rio Tinto small projects Rio Tinto 48,2 France LGV SEA INEO 46,7 India Kolkata Metro KMRC 46,1 Australia * Rio Tinto RAFA phase 2 Rio Tinto 33,2 Turkey HSL Gebze - Kosekoy Salini-CGF-Kolin 31,5 Australia ARTC various projects ARTC 30,0 Italy HSL variation orders & price escalation RFI 20,3 South Korea Uhi-Shinseoul POSCO 20,0 Italy SCC – CTC variation orders RFI 18,1 France RATP Metro Paris Maintenance RATP 17,8 France LGVEE Phase 2 SNCF 15,0 Germany Berlin – Rostock DB 13,8 Canada STM Montreal STM 12,1 Saudi Arabia * Riyadh - PNU variation orders SBG 11,8 (1) Representing about the 90% of total order intake for FY 20116 (*) TSBU Orders
7. YE 2011 results - Key data by business unit Signalling Transportation (M€) Solutions 2011 2010 2011 2010 Orders 1.045,9 890,2 1.256,1 1.142,8 Backlog 2.341,4 2.090,6 3.442,3 2.721,5 Revenues 728,4 841,8 512,3 504,4 EBIT 75,1 104,2 55,0 46,3 ROS 10,3% 12,4% 10,7% 9,2% Operating Working Capital 111,4 0,3 (172,4) (105,3) R&D 32,5 33,0 1,4 1,8 Total Headcount 3.081 3.315 600 4497 The above mentioned figures are gross of eliminations between business units.
8. Ansaldo STS: Actual 2011 results and Guidance 2012 2012 (M€) 2011 Guidance Orders 2.164 1.500-1.700 Backlog 5.453 5.700-5.900 Revenues 1.212 1.200-1.300 ROS (1) 9,6% ~9,5% Net Financial position (290) (~330) (2) Volumes still impacted by Libya Profitability also by restructuring costs (1) Including restructuring severance costs for 8m€ in 2012, 1m€ in 20118 (2) Before Dividend payment
9. Ansaldo STS: focus on backlog evolution Geographical mix and business Backlog evolution By Geo Area By Business 2 59 2008: 4 12 <1 O&M 3.136M€ Italy & Europe>80%, 21 41 almost no O&M 59 59 61 EPC 2011: 61 O&M 5.453M€ 24 28 18 Emerging Markets 39 taking the lead, 3 61 EPC increasing 19 43 26 weight of O&M Italy North America Emerging Transportation Solution Rest of Europe Australia Signalling9
10. Ansaldo STS Group Backup details10
11. Ansaldo STS: Focus on backlog evolution Business type, Actual 2011 data 2008 2011 3 3 19 2 36 47 58 32 Mass Transit Railways Components Operations and maintenance Operations and Maintenance a key asset in Ansaldo STS portfolio: the confirmation of a successful value proposition11
12. Ansaldo STS: Strong Backlog Build-up in the last 4 years sustained by an above average Book to Bill ratio Signalling: cover ratio 2,9x 1.500 1.243 964 1.045 1.000 1,54 890 Ansaldo STS: cover ratio 4,5x 1,17 1,40 825 805 842 728 2.500 500 1,06 2.164 1.985 0 2.000 1.786 4,5 2008 2009 2010 2011 3,5 f 3,2 2,8 1.297 1,54 1,79 Transportation Solutions: cover ratio 6,5x 1.500 1,52 1.284 1.212 1.500 1,17 1.106 1.176 1.256 1.143 1.000 1.000 2008 2009 2010 2011 2,45 1,52 633 2,27 500 343 Orders Revenues 504 512 1,13 417 302 Book to Bill Backlog to sales 0 2008 2009 2010 201112
13. YE 2011 - Orders intake by business unit and region Orders : 2.164 M€ by Geographic area RoW APAC 1% Italy Signalling 15% 19% 42% 58% North 21% RoE America 44% Transportation Solutions13 Data gross of inter-company eliminations
14. YE 2011 - Revenues by business unit and region Revenues: 1.212 M€ by Geographic area Transportation RoW Solutions APAC 6% Italy 22% 40% 42% 58% North 10% Signalling America 22% RoE Signalling: Transportation Solutions: 728 M€ 512 M€ Service Service & Signalling Tsl systems Tramways Components & Maintenance Systems Maintenance 80% 13% 90% 1% 9% 7%14 Data gross of inter-company eliminations
18. YE 2011 - Total headcount end of December Country Main Headcount Locations ITALY Genoa 1.518 Naples Turin Potenza FRANCE Les Ulis 521 16% 21% Riom SPAIN Madrid 73 1% UK London 10 Manchester GERMANY Monaco 7 SWEDEN Stockholm 42 25% 37% USA - CANADA Pittsburgh 862 Batesburg Montreal AUSTRALIA Perth, Brisbane 530 USA - Canada Italy INDIA Bangalore 211 APAC Other MALAYSIA Kuala Lumpur 154 Rest of Europe BOTSWANA Gaborone 33 CHINA Hong Kong 77 Bejing Other Locations 62 TOTAL 4.10018
19. Five years of free capital increase - details July 04, 2011: I tranche, free capital increase July 05, 2010: I tranche, free capital increase 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 2011 was 0.857) 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 0.857. In fact the IPO offering price adjustment will be : 2010 2011 2012 2013 2014 i.e. Offering price adj., after each 6.5 5.57 4.87 4.33 3.9 tranche of free cap. increase = 7.8X0.833 = 6.5X0.857 = 5.57X0.875 = 4.87X0.889 = 4.33X0.9 The free cap. increase is just an accounting operation with no effects on the financial structure of the company: liabilities reserves assets reserves equities free capital increase share share19 capital capital
20. GlossaryAF-900® —Part of an Automatic Train Control System (ATC), providing CBI —Computer Based Interlocking, or CBI, is an Interlocking System (see below)both train detection and transmission of digital cab signalling data for the where the traditional wired networks of relays are replaced by software logic runningAutomatic Train Protection (ATP) function of the ATC. on special-purpose fail-safe control hardware. The fact that the logic is implementedATC — Automatic Train Control, or ATC, is an integrated signalling by software rather than hard-wired circuitry greatly facilitates the ability to makesystem that guarantees the secure movement of trains. ATC integrates modificationswhen needed by reprogrammingrather than rewiring.various subsystems positioned on-board and wayside. In addition to a full CBTC — Communication Based Train Control, or CBTC, is a system underinterlocking system, a complete ATC system consists of three subsystems: development that will allow for the interchangeability of different technological(i) ATP, (ii) ATO and (iii) ATS. systems in use on various metro lines. CBTC can be understood as an attempt toATP — Automatic Train Protection, or ATP, is an ATC subsystem createan ERTMS type standard for the mass transit industry.responsible for the safe operation of a signalling system. It imposes speed CPTM — The Companhia Paulista de Trens Metropolitanos runs the city of Sãolimits on trains, both to maintain a safe operating distance between them Paulos suburban passengerservices.and to comply with safety and speed requirements. The ATP system is CTC — A Centralized Traffic Control system, or CTC, monitors the status ofdesigned to be a fail-safe (vital) system. signalling on a line or network and displays the relevant status information to a centralATO —Automatic Train Operation, or ATO, is an ATC subsystem which operator, assists in the management of the line or network consistent with theperforms on-board, non-vital functions normally performed by a train timetable and exercises control to prevent small schedule disturbances from becomingdriver, including ensuring a smooth acceleration of the train to the running traffic jams. CTC also notifies the operator of ATC equipment failures and of failuresspeed, speed regulation and smoothly stopping the train at the proper in traction power and passengerstation support facilities.position at station platforms or in front of stopping signals. ATO DPL — Dedicated PassengerLine.subsystems are primarily located on-board and represent one of theprincipal components of a driverless system. Additionally, ATO GNSS (Global Navigation Satellite System) satellite-based global navigation system,subsystems report vehicle health status to the central control offices. can rely on US GPS (Global Positioning System) or Russian GLONASS (Global NavigationSatellite System) or European Galileosystem under development.ATS — Automatic Train Supervision, or ATS, is an ATC subsystem whichoperates to control trains automatically by means of ATO and ATP, in ETCS — The European Train Control System (ETCS) is a signalling, control andaccordance with the railway timetable. This also involves a CTC system. train protection system designed to replace the many incompatible safety systems currentlyused by European railways,especially on high-speed lines.ATSF — Ansaldo Trasporti Sistemi Ferroviari, Transport SolutionsBusiness Unit. ERTMS — The European Rail Traffic Management System, or ERTMS, ERTMS was introduced by the EU in 1992 as a means of creating a uniform system ofBalise — An electronic beacon or transponder placed between the rails of a command, control and coordination of rail traffic to allow for ‘‘interoperability’’railway as part of an Automatic Train Protection system. throughout EU territory. The ERTMS standard exists at three levels (ERTMS 1, 2 and 3) depending on use, each distinguished by the type of wayside and on-board equipment used and the manner in which this equipment communicates relevant data.20 Ansaldo STS Investor Relations Dept.
21. GlossaryEUROCAB — Onboardcomputerused to processETCS information. PTC — Positive Train Control: North American freight railwayFS — Ferrovie dello Stato S.p.A, or FS, the operator of the Italian railway implementationof CBTC.network. RBC — Radio Block Centre. All trains automatically report their exactHSL — High Speed Line, or HSL, refers to railway lines with capacity for position and direction of travel to the RBC at regular intervals.speedsin excess of 200 km/h (125 mph). RFF — Réseau Ferré de France: manager, project leader and owner of theICSS — Integrated Control & Safety System. Integrated Communication French national rail network.SwitchingSystem. RFI — Rete Ferroviaria Italiana S.p.A., or RFI, is a subsidiary of FS (defined above), responsible for managing the Italian railways infrastructure.Interlocking System (IXL) — An interlocking system is responsible for thereliable and safe movement of trains inside a station, through complex junctions RZD — Rossiyskie Zheleznye Dorogi/Russian Railways is the state-ownedand for the length of the line. The interlocking system ensures that train railway company of Russia.movement is permitted only when a route is available and the switches along this SCADA A Supervisory Control And Data Acquisition system, or SCADA,route are safely locked in their position. In all cases the interlocking allocates a allows for the supervision of the various subsystems at work in a railway ortrackportion or a route to one train at a time, excludingall others. mass transit environment. SCADA collects information from remoteLRT — Light Rail Transit, or LRT, refers to a form of urban rail transit that installations, transfers it back to a central office, analyzes the information,utilizes equipment and infrastructure that is typically less massive than that used takes appropriate action and displays that data on a number of operatorfor metro systems, with modern light rail vehicles usually running along the screens.system. SCMT — Sistema di Controllo della Marcia del Treno: automatic trainMicroLok® — Wayside control system consolidating vital and non-vital control protectionsystem.logic, data transmissionand codedtrack circuitsinto a single package. SNCF — Société Nationale des Chemins de fer Français. The FrenchMT — Mass Transit. National Railway Company is concerned with the operation of rail services forOTP — Optimizing Traffic Planner, or OTP, is a traffic management system passengers and freight, and the maintenance as well as signalling of railthat permits real time monitoring of the positioning of trains throughout a infrastructure owned by RFF.railway system. OTP optimizes system or network capacity by safely SSC —Sistema Supporto Condotta: Italian train stopping system. Lessminimizing the time between trains, thereby reducing operating costs. OTP is sophisticated than SCMT.primarily designed for those markets where railway systems infrastructure is TLC — Trainline Controller provides an interface between CBTC equipmentbeingused to full capacity. and the rolling stock’s conventional controls.OURAGAN — A large-scale programme implemented by RATP for the re- TTCS: Train Conformity Check System verifies thesignalling of 13 lines. OURAGAN is intended to standardize CBTC technologyand diversifysuppliers,basedon the conceptof interchangeability. conformityof running Rolling Stocks21 Ansaldo STS Investor Relations Dept.
22. Mr. Alberto Milvio, the Manager in charge of preparing the company’s financial reports, hereby declares, pursuant toarticle 154-bis, paragraph 2 of the Consolidated Law on Finance, that the actual accounting information contained inthis presentation corresponds to document results, books and accounting recordsNB:The management of Ansaldo STS also assesses the business and financial performance of the Group and its business segments basedon a 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 indicatorsused in this 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 shareholdingsthat, due to their nature or size, are considered “strategic investments”. Ansaldo STS SpA Via Paolo Mantovani, 3 16151 Genoa, Italy V.P. Investor Relations Andrea Razeto email@example.com www.ansaldo-sts.com Tel: +39 010 655 2068 Fax: +39 010 655 205522 Ansald STS Investor Relations Dept.