Chief Executive Officer Sergio De Luca Analyst introduction meeting

(1)

Chief Executive Officer

Sergio De Luca

Analyst introduction meeting

(2)

2 1998

2000

2006

Degree in electrical engineering from the Polytechnic of

Turin and then for the same university, assistant professor

at Electrical Machine dept. He has authored some scientific

works and has lectured at the universities of Turin, Genoa,

Pavia and Naples.

He began to work for the Finmeccanica Group subsidiary:

Ansaldo - Società Generale Elettromeccanica as part of

central R&D team.

From

1981

to

1994

he held various important positions

within Ansaldo Trasporti’s Vehicles Division, closing this

professional

experience

as

Technical

Director

with

managerial responsibilities in some important projects in

joint venture with Mitsubishi, Siemens and Alstom.

Following the spin-off of Ansaldo Trasporti’s three divisions

(Vehicles, Systems and Signalling) into separate companies

in

1996

, he joined Ansaldo Segnalamento Ferroviario Spa,

as Chief Operating Officer and where he became CEO in

1998

.

Since

2006

, he has also served as Managing Director of

Ansaldo Trasporti Sistemi Ferroviari.

In these experiences he contributed to reach an higher level

in technology and safety for Italian Railways, striking on

Value of Production

EBIT

FOCF

Backlog

Value of Production 21,5%

EBIT 42%

CAGR 2000

–

2006:

BACKLOG 9%

Turn around period

Growth period

Ansaldo STS Group:

Sergio De Luca

-

Since 1980 in Ansaldo transportation business

Ansaldo

Segnalamento

Ferroviario

(3)

3

3 49,3%

50,7%

73%

27%

Italy

Rest of Europe

North America

Asia / Pacific

Others

Backlog Update

€

mil 2.370

Transportation Systems

55%

8%

13%

17%

7%

Signalling

Under De Luca’s business management

Ansaldo STS Group:

Backlog Update at the end of March 2007

(4)

4

Ansaldo STS - Italia Ansaldo STS - France Ansaldo STS - U.S.A. Ansaldo STS - Australia

Sergio De Luca Georges Dubot Ken Burk Lyle Jackson

Regional Leader Companies

Ansaldo STS Group:

The Structure

Ansaldo Segnalamento Ferroviario (Italy) Ansaldo Signal Sweden Ansaldo Signal Ireland Ansaldo Signal UK Union Switch & Signal PVT (India) Union Switch & Signal (USA) CSEE Transport (France) Union Switch & Signal PTY (Australia)

(5)

5

5 R. Pignatelli

Legal & Company Affairs

D. Leccese

V. Improta

R.A.M.S.

Quality Insurance

Administration Finance &

Control

C. Cremona

R.Gallo

deputy F. Romano

deputy M. Giganti

New Initiative

F. Di Maio

M. Manfellotto

G. Bocchetti

Transportation System

Division

Signalling Division

Sergio De Luca

Human Resources

Business Support

A. Amendola

Chief Executive Officer

Ansaldo STS ITALY :

The Integrated Structure

General Contractor Components, Services & Maintenance Veh icle s Oth er S u_b sy st_em s Infr astr uctu re Technological Integrator System Provider S ig_n al_lin g

Ansaldo STS scope of work

General Contractor Components, Services & Maintenance Veh icle s Oth er S u_b sy st_em s Infr astr uctu re Technological Integrator System Provider S ig_n al_lin g

(6)

6

• The integration of the Signalling and System business of Finmeccanica inside the

new entity ANSALDO STS is determined by the consideration the

synergies

between the two sectors are able to help the overall growth of volumes and

profitability, the expansion over the

international markets

and the entrance in new

business segments

(e.g., security and TLC in the rail sector).

• In fact a better integration allows to take the following strategic opportunities in a

more effective way:

–

for the System SBU:

a more direct and visible access to the safety technology, that is the key factor

in order to act as Technology Integrator, increases the credibility, reputation,

and competences and, as a consequence, business opportunity

–

for the Signalling SBU:

a more solid connection with the System SBU increases its commercial

effectiveness in those market segments where the Sygnalling technology is

managed by a System Integrator.

Ansaldo STS ITALY :

Integration as opportunity

(7)

7

7 –

for both SBU

:

the exploitation of the

synergies

arising from the

presence on the

markets

of each other, the

strategic coordination of R&D efforts

and the reduction of

transaction times and costs

.

–

for the Group:

a more effective and quick start up of

new business (e.g., the

security)

, that don’t belong to the primary mission of each SBU, and

require joint developments and effort.

Ansaldo STS ITALY :

Integration as opportunity

(8)

8 Security

IT

Security

Backup

Communication

Systems

Ridondanza

Geografica

Access

Controls

Video

Overseeing

Sensors

NBCR

Specific

Solutions

Safety

Railway

System

Threats

A

c

ci

dent

_Accident

Unavailability

_{Unavailability}

Efficient, Effective and Secure Management of

Railway network

Ansaldo STS ITALY :

Integration as opportunity : SAFETY & SECURITY

(9)

9 Ansaldo STS Group:

Ansaldo STS Group:

Business Model Priorities & Strategic Guidelines

A

EBITDA:

average growth

1.5% – 2% points

(period ’05 – ’09)

A

ROS:

despite the different commercial mix between Signalling and Systems

Transportation,

average growth

1.5% – 2% points

(period ’05 – ’09)

A

TAX rate:

possible average reduction in three years

=>

2009 objective: consolidated tax rate between 44% - 45%

A

Net Financial Position

(CAGR ‘05-’09)

:

Without

considering M&A activities and Dividend distribution

=> progressive growth sustained by a

FOCF

about equal to the

Net Income

Based on Actual 2005

843 928 1100 2005 2006 2009 Production Revenues ~ CAGR CAGR 05 05--0909 +6% +6% 1015 1271 1466 2005 2006 2009 Orders Booking ~ CAGR CAGR 05 05--0909 +7% +7% 843 928 1100 2005 2006 2009 Production Revenues ~ CAGR CAGR 05 05--0909 +6% +6% 1015 1271 1466 2005 2006 2009 Orders Booking ~ CAGR CAGR 05 05--0909 +7% +7%

New Companies:

Ansaldo STS Deutschland

intended to establish local partnerships;

Partnerships: Strategic alliance with Chinese IT giant

Zhejiang

Zheda

Insigma Group

Acquisitions:

RM STAR Inc

US leader in control system for train yard operations

External Growth

New Companies:

Ansaldo STS Deutschland

intended to establish local partnerships;

Partnerships: Strategic alliance with Chinese IT giant

Zhejiang

Zheda

Insigma Group

Acquisitions:

RM STAR Inc

US leader in control system for train yard operations

External Growth

A

PRODUCTION REVENUES

(CAGR ‘05-’09)

At Consolidated Level continued growth of about

+ 6 %

-

Signalling possible average growth

+ 5 %

-Systems possible average growth

+ 9 %

A

ORDERS

(CAGR ‘05-’09)

At Consolidated Level continued growth of about

+ 7 %

-

Signalling possible average growth

+ 4 %

(10)

10 Ansaldo STS Group:

Ansaldo STS Group:

Business Model Priorities & Strategic Guidelines

International continuous growth : also based on technological diversification

to become a global signalling player and an international Turnke

y System player;

Margin growth

and

performance control

Maintaining cost competitiveness

Strong business integration

to complete signalling portfolio and develop

“

off the shelf

”

unmanned systems

Based on :

1.

1. Acquired experiences on ERTMS, Driverless and High Speed Lines p

Acquired experiences on ERTMS, Driverless and High Speed Lines p

rojects;

2.

2. Geographical multi

Geographical multi

-

local presence;

3.

3. Business Unit new opportunities valorisation;

Business Unit new opportunities valorisation;

4.

(11)

11 Traffic Control Systems

Interlocking

Automatic train Control

High Speed Lines

Ansaldo STS Group:

Main references & technologies

RAI

L

W

AY

RAI

L

W

AY

M

AS

S

M

AS

S

T

RA

NSI

T

RA

NSI

T

(12)

KOREA Seoul – Taegu (Pusan) FRANCE - All TGV Lines

UK - Channel Section 1 & 2

CHINA - Quinhungdao - Shenyang

ITALY Milan - Bologna Bologna - Florence Rome - Naples Turin - Novara Novara - Milan SPAIN - Madrid - Lleida

FRANCE – BELGIUM HS Link Paris – Brussels HSL

SPAIN – FRANCE HS Link Figueras - Perpignan

**According to the UIC*, 56% of all HS lines in the world have been built by Ansaldo Signal (excluding Japan)**

Ansaldo STS Group:

High Speed Lines

Korea: Seoul-Pusan

UK: Eurotunnel

France

Italy

China

…

(13)

13 Dec. 2009

Operative since

Feb. 2006

Operative since

Dec. 2005

Sept. 2008

Dec. 2009

Dec. 2007

July 2007

Situation at end of 2006

MI – RM (Eurostar):

4h 30’

MI – NA: (Tbiz + AV)

5h 57’

RM - NA: (AV)

1h 27’

TO - MI: (AV)

1h 22’

Situation at the project end

MI–RM:

3h (- 1h 30’)

MI–NA

:

4h 10’ (- 1h 47’)

RM–NA:

1h 05’ (- 22’)

TO-MI:

50’ (-32’)

On service since

Dec. 2005

Operative since

Dec. 2006

Travelling time reduction

Design

Construction

Operative

Design

Construction

Operative

Ansaldo STS Group:

High Speed Lines

(14)

• ERTMS, was developed to secure an

interoperable Traffic Control System for the whole

European Railway Network

–

providing a single signalling standard as a

basis for the full interoperability of the

European railway network.

• ERTMS can be superimposed on national

signalling systems, allowing lines to work both on

national specifications and ERTMS

Ansaldo Signal has been awarded contracts for the development,

deployment and maintenance of ERTMS lines and vehicles in

France, Spain, Italy, Belgium, Czech Republic, Scandinavia, India

Ansaldo STS Group:

European Rail Traffic Management System (ERTMS)

(15)

15

SPAIN Madrid - Lleida HSL

ITALY - Whole Italian High Speed Network

BULGARIA - Plovdiv Junction and Stara Zagora-Burgas line AUSTRIA & HUNGARY -Vienna Budapest line SCANDINAVIA - STM FRANCE - TGV Est FRANCE Tournan -Marles-En-Brie line SLOVENIA Branch INDIA - Delhi INDIA - Chennai CHINA – CTCS level2 CZECH REPUBLIC PoNíPany - Kolín BELGIUM - Belgian Network level 1

SPAIN – FRANCE HS Link -Figueras - Perpignan

Ansaldo STS Group:

ERTMS Applications

(16)

Vienna - Budapest line

Madrid-Sevilla

Arezzo-Rigutino

HS line

Torino-Marles-en-Brie line

Plovdiv junction and

Stara Zagora-Burgas line

Site Tests

Ongoing

Madrid-Lerida- HS line

Whole Italian H. S. network

(first line will be Roma-Napoli)

France: East TGV

Scandinavia:STM

Belgium: ERTMS 1

Ansaldo Signal offers the complete answer to ERTMS levels 1, 2 (& 3)

India

One of the first

applications

outside of Europe

India

_India

One of the first

applications

outside of Europe

India

Ansaldo STS Group:

ERTMS Applications

(17)

17

ITALY Rome, Turin, Naples & Genoa

MALAYSIA

Tanjung Pelepas, Rawang Ipoh, Westport, KL Monorail, Seremban & KL Sentral

UK - Manchester South

PORTUGAL - Lisbon USA

Los Angeles - Green Line Long Island Rail Road Jamaica New York - Metro North Dallas - DART

Chicago - CTA Blue Line _{CHINA - Beijing}

to Hong Kong -Jing Liu Line

INDIA Over 100 Stations Throughout India

AUSTRALIA Queensland, New South Wales, Western Australia & South Australia DENMARK - Copenhagen

SWEDEN - Roslagsbanan line FINLAND - Ratahallintokeskus

CHINA - Shanghai Metro Line 2

BOTSWANA 8 stations

BANGLADESH 16 stations

Roma Termini station

Jing Jiu lines (China)

Manchester South

Belo Horizonte

Kuala Lumpur

Tanjung Pelepas (Malaysia)

Ansaldo STS Group:

Computer Based Interlocking IXL

(18)

MALAYSIA - Kuala Lumpur CTC

CHINA - Hong Kong Metro Lantau Airport Express Station Management System ITALY

Genoa - Rama Line Bari - Bologna Line Venice Railway Junction Florence - Rome Line

National Integrated Traffic supervision system Railtrack plc Network Management Centre CSX - Next Generation Dispatching System Genoa

Naples

BRAZIL - Belo Horizonte

CHINA -Shanghai Line 2 DENMARK - Copenhagen FRANCE - Lyons SWEDEN - Roslgsbaban UK - Newcastle Metro

USA - Boston (MBTA)

USA - Pittsburgh (PAAC)

AUSTRALIA- Perth, North West, North East Coast INDIA – Ghaziabad-Kanpur BOTSWANA – 622 kms Main Line

SCC (RFI)

SISCT (RFI)

Hong Kong MCS

Kuala Lumpur CTC

Ansaldo STS Group:

Operation and Traffic Control

(19)

19 Conventional Metro:

• Transport system running on

dedicated and protected track

• Capacity between 8,000

-50,000 (and above)

passengers per hour per

direction (pphpd)

• Required maximum speed

cannot exceed 100 km/h

• Vehicle frequency up to 90

seconds

Mass-Transit is focused on urban mobility, with high headway and volumes of

passengers per hour on relatively short routes

Driverless Metro:

• Same features of

Conventional Metro but no

personnel on board

• Full operational flexibility with

vehicle frequency below 90

seconds

Tramway:

• Ordinary urban mobility with

capacity between few

thousands and 8,000 pphpd

• Minimum vehicle frequency

about 3 minutes

• Distance between two stops

500 m or less (in city centre)

Mass-Transit

Ansaldo STS Group:

Mass Transit

(20)

Seoul Shanghai Taipei Hong Kong Kuala Lumpur Cairo ITALY

Genoa, Brescia, Trieste, Circumvesuviana, Milan, Naples & Rome

Bucharest Stockholm Oslo Copenhagen Lisbon Madrid Paris & Lyon

Manchester Birmingham Mexico City Lima Santiago Sarmiento San Paulo Rio de Janeiro Belo Horizonte USA

Atlanta, Baltimore, Boston, Chicago, Cleveland, Dallas, Kansas City, Los Angeles, Miami, New York,

Philadelphia, Pittsburgh, Portland & Washington Caracas Dublin Thessaloniki Lisbon Madrid Thessaloniki Bucharest

Chicago

New York

Genoa

Lisbon

Naples

Paris

Ansaldo STS Group:

Metros

(21)

21 Technical Characteristics

Technical Characteristics

Line length

21.8 km

Stations

22 Maximum system capacity

12,000 pphpd

Minimum headway

90 sec

Power supply system

750 Vdc - third rail

Signalling system

Automatic Train control

(ATO, ATP, ATS)

Operation and maintenance

5+3 years

Ansaldo STS Group:

Transportation System

Copenhagen fully automated driverless Metro

(22)

Technical Characteristics

Line length

13.7 km

Stations

18 Maximum system capacity

17,000 pphpd

Minimum headway

90 sec

Power supply system

750 Vdc - third rail

Signalling system

Automatic Train control

(ATO, ATP, ATS)

Operation and maintenance

2+7 years

Under Construction

Ansaldo STS Group:

Transportation System

Brescia

(23)

23 Technical Characteristics

Technical Characteristics

Line length

25 km

Stations

30 Maximum system capacity

48,000 pphpd

Minimum headway

90 sec

Power supply system

750 V dc - overhead catenary

Signalling system

Automatic Train control

(ATO, ATP, ATS)

Under construction

Ansaldo STS Group:

Transportation System

Rome line C

(24)

Technical Characteristics

Line length

5.6 km

Stations

9 Maximum system capacity

21,000 pphpd

Minimum headway

75 sec

Power supply system

750 Vdc - third rail

Signalling system

Automatic Train control

(ATO, ATP, ATS)

Operation and maintenance

27 years

Under construction

Ansaldo STS Group:

Transportation System

Milan line 5

(25)

25 Technical Characteristics

Technical Characteristics

Line length

9.5 km

Stations

13 Maximum system capacity

21,000 pphpd

Minimum headway

90 sec

Power supply system

750 Vdc – third rail

Signalling system

Automatic Train control

(ATO, ATP, ATS)

Maintenance assistance

3 years

Under construction

Ansaldo STS Group:

Transportation System

Thessaloniki metro

(26)

France

& China (

Italy

)

CBTC with/without driver

Ansaldo STS Group:

Transportation System

New CBTC Frontier

ATS nuovo Odometria, antenne

ATP

Fibra (*) Nodi (*) Radio fissa Boe

Istallare IXL nuovi (*) Eliminare IXL vecchi (*) Radio mobile OBCU Rete dedicata segnalamento (Ultimo treno) Zone Controller Zone

Controller(s) Interlockingnuovi Interlockingvecchio ATP ATS vecchio ATS nuovo Officina ATP CC Radio

Fissa RadioFissa

ATS nuovo Odometria, antenne

ATP ATP

Fibra (*) Nodi (*) Radio fissa Boe

Istallare IXL nuovi (*) Eliminare IXL vecchi (*) Radio mobile OBCU Rete dedicata segnalamento (Ultimo treno) Zone Controller Zone Controller(s)Zone

Controller(s) Interlockingnuovi Interlockingvecchio ATP ATS vecchioATS vecchio ATS nuovoATS nuovoATS nuovo Officina ATP CC Officina ATP CC ATP CC Radio

Radio

Radio Fissa Radio

(27)

27

Key

Contact

Headquarters:

Via Paolo Mantovani, 3-5

16151 Genoa, Italy

Investor Relations:

Andrea Razeto

investorelations@ansaldo-sts.com

www.ansaldo-sts.com

Tel: +39 010 655 2111

Fax: +39 010 655 2055