activity Report 2012/13 on track to excellence

Transcription

1 activity Report 2012/13 s on track to excellence

2 summary 01 Profile 02 strategy 02 Trends 04 Chairman s message 06 Executive Committee 08 World overview 09 Financial results 10 Industrial excellence 11 Human resources 12 Highlights 14 activities 16 Services 18 Brakes & Safety 20 Access & Information 22 Energy & Comfort

3 Profile s A year focused on growth For more than 90 years, Faiveley Transport has been designing, manufacturing and marketing high-added value railway equipment. Its ability to design tailor-made solutions allows it to satisfy the expectations of car builders, operators and maintenance organisations worldwide. Today, its solutions are structured into four activities Services, Brakes & Safety, Access & Information and Energy & Comfort guaranteeing a high level of safety, comfort and availability. Thanks to a strategy centred on four key countries and a strong commitment to offering innovative systems, the Group achieved sales of e988 million in 2012/13.

4 Key figures nearly 5,400 employees Sales e988 million 52 sites in 26 countries worldwide Sales by continent Sales by activity 57% Europe 16% North & South America 20% Brakes & Safety 17% Access & Information 22% Energy & Comfort 27% Asia-Pacific 41% Services Workforce by continent 62% Europe 2% Oceania 14% North & South America 22% Asia-Pacific Our activities s Services The Services activity supports rail operators and maintainers in all their rolling stock maintenance and optimisation. s Brakes & Safety The Brakes & Safety activity incorporates all equipment, ensuring from hand through to wheel that the train can brake in complete safety. Coupling and speed measurement form an integral part of this system.

5 8 centres of competence 37 production and maintenance sites A worldwide partner Western Europe Eastern Europe ,207 North America Asia and Africa South America , Oceania Production and maintenance site Centre of competence Commercial site Employees s Access & Information The Access & Information activity optimises the safety and flow of passengers from the platform to the train, whilst keeping travellers well informed. s Energy & Comfort The Energy & Comfort activity ensures the collection of electrical energy from the catenary and its transformation and use as thermal energy.

6 02 Trends Recent studies have underlined the growth potential of the rail equipment market: the world, the markets and practices are changing. To meet these ever-changing expectations, Faiveley Transport follows these trends closely integrating the appropriate changes into its strategy and product offering. s Population growth and increased urbanisation By 2010, half of the world s population lived in cities and, according to some calculations, 180,000 people move from the country to the city every day. As a result, 5 billion people or 60% of the world s population will be living in cities by In light of this, it is estimated that future demand will be especially focused on collective urban mobility solutions. Metros and tramways are the only public transport that can guarantee faster travel within rapidly expanding cities and move away from the dominance of the car on a sustainable basis. s An evolving competitive landscape Three elements must be taken into consideration. Firstly, the increasing importance of Chinese car builders, as well as smaller players, can be seen on the international stage. At the same time, operations are becoming increasingly privatised. Lastly, certain historical operators now outsource their maintenance and the servicing of their rolling stock. These changes to the competitive landscape are also growth opportunities.

7 Activity Report 2012/13 03 s A growing need for raw materials Market globalisation generates a significant increase in demand for raw materials, in particular in emerging countries. Furthermore, extracting countries, such as South Africa, Brazil and Australia could see their freight needs grow. The volumes mined are too large to be transported by lorry to ports. In addition, rail links are preferred to shipping, often deemed to take too long, particularly between China, Turkey and the rest of Europe. This explains the expected growth in the freight segment, which should account for 24% of the global rail market in s The pursuit of energy efficiency and eco-mobility A study* also pointed out that public and political interest in environmentally friendly public transport will contribute to the development of the rail market. Trains are far less polluting per passenger-kilometre than other forms of transport. Improved technical solutions also make it increasingly energy efficient. It is estimated that current trains use 30%-40% less energy than their predecessors. * World Rail Market Study carried out by UNIFE (Association of the European Rail Industry).

8 04 STRATEGY A record sales year With e988 million in sales, 2012/13 was a record year for Faiveley Transport in terms of revenue. Thierry Barel, Chairman of the Management Board and Chief Executive Officer z What is your assessment of the 2012/13 financial year? With e988 million in sales, 2012/13 was a record year for Faiveley Transport in terms of revenue. Overall, Original Equipment and Services grew by nearly 10%. This positive momentum is a direct result of the strategy we have been implementing over the last four years. This strategy entails the Group s business activity focusing on four key countries: the US, Russia, Germany and China. How does Faiveley Transport stand in these regions? Over the last three years, our presence in the North American market has increased by 43%. The integration of Graham-White and the continuing success with Amsted Rail are the reasons for this achievement. We also strengthened our positions in Russia in the locomotive and metro segments. The Chinese market seems to be confirming its recovery Indeed. After freezing its investments for two years, the Chinese Ministry of Transport has launched new platforms in the high speed and locomotive segments. Faiveley Transport will supply some braking systems, which is a major step forward. Other opportunities are taking shape in the shortterm and the metro segment remains particularly promising. You have announced significant growth in Services. How do you explain this success? For a number of years, the Group has been implementing a proactive policy aimed at developing engineering services on existing trains. Recently, this has helped us win numerous contracts, including for example the retrofit of doors on the Eurostar fleet. At the same time, the growth of our installed base automatically increases opportunities. Lastly, the economic climate is good for Services: certain operators are starting to outsource operations historically kept in-house, thus widening the market. Overall, the Services activity reported remarkable growth of 22% this year. This figure obviously includes the contribution of Graham-White, recently acquired in the US.

9 Chairman s message Activity Report 2012/13 05 Recently, you have been awarded a significant number of new platforms, including your largest ever order. How is the implementation of these programmes proceeding? We are in the midst of a particularly active engineering phase and the validation of our products is a resource-intensive process. Our priority is to deliver our systems on time and with the level of quality our customers expect. This doesn t happen overnight, and is the reason why, while constantly improving our responsiveness, we carry out background work to optimise the organisation of projects and improve our processes and level of quality. How do you achieve this in practice? We have recently reformed our processes to include the best industrial practices in a new version of our Faiveley Management System (FMS). FMS is the cornerstone of our performance, which leads to improved profitability. FMS processes provide the basis for our ERP 1, which is currently being rolled out worldwide. Finally, we particularly focused this year on improving our Quality organisation and its supporting tools, by putting the emphasis on responsiveness and on reducing faults detected at the delivery and operational stages. Background work is fundamental in the rail industry, where there is very little time to validate systems that are specifically designed for each platform. What developments do you expect in the rail industry? The outlook remains promising and UNIFE 2 is forecasting growth of between 2 and 3% over the next five years. Our goal is to meet demand whilst winning market share. We will focus our efforts on the following five areas: Continuing our policy of supplying innovative, comprehensive and high technological added value systems in our three core activities: Energy & Comfort, Access & Information, Brakes & Safety; Continuing to develop Services over and above market growth; Strengthening our presence in key markets, particularly in China, Russia, the US and Germany, as well as consolidating our positions in our mature markets and harnessing the opportunities offered by certain emerging markets; Continuing a policy of acquisitions in strict accordance with our strategic, product and geographical priorities, while increasing our production capacity in low cost countries; Winning market share in the freight segment where we are currently developing our presence. 1. Enterprise Resource Planning. 2. Association of the European Rail Industry. An operator polishes a new air-conditioning unit, before dispatch, in Pilsen, Czech Republic. An after sales technician carries out an operation on the automatic platform gates, in Hong Kong.

10 06 STRATEGY industrial performance at the heart of our strategy Faiveley Transport continues to develop its activity worldwide, seizing significant opportunities in Russia, South Africa, the Middle East, China and Europe. Simon Charlesworth, International Sales and Marketing Director 01 Our strategy together with the reliability and quality of our systems are the cornerstone of our competitiveness. Thomas Feser, Corporate Development Director 02 This last year has given us the opportunity to re-examine our recruitment process and optimise it in order to meet our customers requirements in a dynamic market. Laurent Brémond, Human Resources Director* 03 Faiveley Transport has demonstrated its ability to defend its intellectual property by securing a final judgement against Wabtec in February 2013 and the payment of e12 million in damages after 4 years of litigation. Guillaume Bouhours, Chief Financial Officer 04 Our goal is to continue to gain market share. To achieve this, we will concentrate our efforts on five areas: we must continue to design and produce innovative systems; maintain growth in Services; strengthen our presence in our key markets; continue our acquisition policy and lastly, increase our presence in the highly promising freight segment. Thierry Barel, Chairman of the Management Board and Chief Executive Officer *Laurent Brémond joined the Group on 1st June 2013.

11 Executive Committee Activity Report 2012/13 07 Faiveley Transport made headway this year in terms of quality and responsiveness, an improvement acknowledged by our customers. Nevertheless, we are only at the beginning of this process, which, with everyone s involvement, we will accelerate in 2013/14 thanks to the launch of our new project Faiveley Worldwide Excellence. François Feugier, Chief Operating Officer 06 We intend to use past successes in particular of our C3 and Buran tm products and our Smart Brakes and EPAC control ranges to pursue new geographic markets. Marc Jammot, Brakes & Safety Director Our capacity to respond to the needs of rolling stock maintainers with responsiveness and proximity, together with our worldwide technical expertise, remains the basis for our growth in the Services activity. Lilian Leroux, Services Director 08 A strengthened presence in key markets, such as Russia and Brazil, and a more streamlined, higher added value range of systems are at the heart of our strategy for the coming years. Olivier Ravit, Energy & Comfort Director 09 Our goal is to go even further in terms of systems and integration by promoting synergies between the three components of our Access & Information activity: platform doors, access doors and information and safety systems inside trains. Rémi Causse, Access & Information Director 10

12 08 STRATEGY World overview Good results, excellent potential Faiveley Transport s commercial results showed remarkable resilience across the world. The year was even more positive than we expected. We are in a position to leverage our potential as the market confirms its recovery. Simon Charlesworth, Group Sales & Marketing Director Europe In Europe, Faiveley Transport s business continued to perform well, with the order in France of platform doors for Lille s new upgraded metro. In Italy, the company recorded sizeable contracts. Alstom Transport awarded the Group a contract to supply brakes for regional Electrical Multiple Units with Trenitalia. AnsaldoBreda chose Faiveley Transport to equip the Milan metro with brakes, air conditioning and couplers. In Eastern Europe, Faiveley Transport s engineering services offer was seen as a relevant and appropriate response to customers looking to extend the life of their existing equipment. China The Chinese market picked up considerably during the year. Faiveley Transport has won an important contract to supply the braking systems for 150 new generation locomotives with Datong, says Simon Charlesworth, Group Sales & Marketing Director. Other regions In other areas of the world, there is considerable potential in light rail and metro projects in India, South America and the Middle East. The Group is well positioned in Russia where it intends to put its know-how to the service of the Moscow metro, in locomotives and passenger trains.

13 Financial Results Activity Report 2012/13 09 Another year of strong growth Thanks to strong sales growth and good control of fixed costs, the Group reported a 25% increase in net profit for the financial year. sales over the last 6 years (in millions of euros) order book over the last 6 years (in millions of euros) 1,616 1,690 In 2012/13, the Group reported a strong year of growth in both sales and results, as well as in terms of debt reduction ,055 1,301 1,453 Guillaume Bouhours, Chief Financial Officer 2007/ / / / / / / / / / / /13 10 % sales growth 25% net profit growth Balanced growth Group sales grew 9.7% during the financial year to e988 million. On a like-for-like basis, growth was 3.3% and was evenly spread between the various geographic regions: up 3% in Europe, driven in particular by Italy, up 5% in Asia-Pacific, due to strong growth in Russia, and up 4% in America. The Services business had an excellent year and reported organic growth of 9%, which was the result of the strategy to expand the Group s service range, analysed Guillaume Bouhours, Chief Financial Officer. Original equipment activities were stable overall, he continued. 19% increase in operating profit Due to good control of fixed costs, sales growth led to a 19% increase in operating profit to e111 million. The operating margin improved significantly to 11.2%, as against 10.4% in the previous financial year. The decrease in finance costs and stability in the income tax rate meant that net profit grew 25% to e59 million. Stronger financial position Cash flow of e51 million was generated during the financial year. This healthy level led to a e34 million reduction in net financial debt to e161 million. The net debt to EBITDA ratio improved significantly to 1.5x, compared to 1.8x at the end of March 2012.

14 f 10 STRATEGY Industrial excellence Raising the Group s quality levels Reducing the cost of poor quality by 20% every year An overriding priority: quality Faiveley Transport s Quality strategy was strengthened in 2012/13 and is now structured around three core principles, namely: 1 - optimising our responsiveness by resolving on-going issues more promptly 2 - re-establishing the fundamentals including 5S 1 and the control of specialised processes 3 - ensuring our systems are sound by implementing a more structured project development process, recalls Hakim Aoudia, Group Quality Director. A fundamental rethink of our work practices The good practices that will help the Group raise its quality level, and thus achieve its growth and profitability objectives, are all contained in the Faiveley Management System (FMS). The FMS and the Internal Control Manual constitute the framework of rules, working methods and tools that will enable the Faiveley Transport sites to develop their improvement plans, explains François Feugier, Chief Operating Officer of Faiveley Transport. The global deployment of FMS will be structured as a corporate project over the next three years. The sites will be supported by a number of IT tools which are currently being rolled out: ERP 2, PDM 3 and CRM A method aimed at improving quality, in 5 steps; sorting tidying, cleaning, organising, installing discipline. 2. Enterprise Resource Planning. 3. Product Data Management. 4. Customer Relationship Management. Frank Kreimendahl, Quality Officer, Faiveley Transport Witten ///Germany We have recently begun the QRQC* rollout at Faiveley Transport Witten. This is about managing quality problems quickly and efficiently every day. Every team member is responsible for thoroughly following up action plans and analysing the problems root causes. Thanks to training, everybody at the site understands and shares this method, which helps us continue to deliver high quality systems to ensure maximum customer satisfaction. *Quick Response Quality Control.

15 f Human resources Activity Report 2012/13 11 Optimising our resources to be more efficient More than 25 contracts are signed every year with young apprentices Serving quality A special project was carried out this year to improve the quality performance of both our systems and services, recalls Laurent Brémond, Human Resources Director. With this in mind, we have increased our in-house expertise by recruiting employees who came from industrial environments where quality is key. In addition, Faiveley Transport has set up a team trained in project management and ERPs* to roll out its own software package in China. The Group has also appointed an agency to assist it in optimising its structure and its approach. Improving our working methods will in time enable us to offer high quality systems and services at lower costs, Laurent Brémond points out. Tomorrow s talent Human Resources software has also begun to be rolled out within the Group. This comprehensive tool will contain useful information for skills assessments or annual reviews. It will make it easier to spot in-house talent worldwide. Targeting talented young people outside the Group will be facilitated by the creation of Employer and Career pages on LinkedIn. Our commitment is clear, Laurent Brémond says, We have to be present wherever young talent is developing. Faiveley Transport also continues to promote apprenticeship, a process it has been encouraging for a number of years. *Enterprise Resource Planning. Elaine Ying, Human Resources Officer, Shanghai Faiveley Rail Technology ///China The seven-person M3 deployment team that we have just finished recruiting is a great blend of skills. It brings together internally mobile people, who are familiar with the company and its procedures, and external talents experienced in ERP projects and used to working in an international environment. For this challenging recruitment process, we drew on Group IT expertise to identify the skill sets required. We then used both headhunters and social media to find the right people.

16 12 STRATEGY highlights s a world first Faiveley Transport is awarded the first project for the complete retrofit of platform screen doors. Lille Métropole Communauté Urbaine (LMCU The City of Lille) has chosen Faiveley Transport to replace the old platform doors of Line 1 of its metro. 18 stations (36 platforms) are included in this project. The Group is well acquainted with this equipment that it designed, manufactured and installed in Being awarded this retrofit contract more than 20 years later is evidence of the trust LMCU places in the Company. In order to meet the customer s very detailed specifications, Faiveley Transport has developed a custom made solution, including night time installation so it will not disrupt the operation of the metro. s Braking systems The Group is to equip 40 locomotives belonging to Russian manufacturer Transmashholding. In partnership with Alstom, Transmashholding awarded Faiveley Transport a contract for the supply of braking systems for 40 EP20 locomotives. These systems will include bogie brake equipment, power generation and oil-free air treatment units, brake indicators and auxiliary pantograph compressors. All this equipment has been designed to operate under extreme weather conditions (-50 C). The systems will be manufactured by three of the Group s European sites, supported by its various centres of competence. The first prototypes will be delivered in the course of the year and serial production is due to start in 2013/14. s Services Two new key contracts in Europe. The Services activity has been selected by Eurostar International Limited (EIL) for the mid-life retrofit of the access and interior doors of its fleet. The activity will also develop new solutions to extend the performance and operation of the equipment and facilitate its future maintenance. In addition, Bombardier Services has entrusted Faiveley Transport with the maintenance of brakes for the E 464 locomotives owned by the Italian operator Trenord. Support will be provided directly at Bombardier Services Milan depot to optimise operations.

17 success Activity Report 2012/13 13 s Brake pads Faiveley Transport and SNCF develop an innovative solution. In partnership with SNCF and the University of Lille, Faiveley Transport has begun a research project aimed at developing a new brake pad. This solution will cover high-speed applications as well as regional trains. To date, the potential market totals e73 million and could range between e100 and e150 million over the next five years. Demand is all the more strong given that these pads should reduce the noise emitted by braking systems as well as their cost price, while increasing their lifetime and efficiency. With an overall budget of e5.4 million (with e3.6 contributed by Faiveley Transport), this innovative and environmentally-friendly project received 40% financial backing from the Ademe*. *Agence de l Environnement et de la Maîtrise de l Energie (French Environmental Agency for Energy Management). s Legal action against Wabtec The New York Court of Appeals vindicates Faiveley Transport. On 6 February 2013, the New York Court of Appeals upheld the jury s verdict against Wabtec, awarding the companies Faiveley Transport USA, Faiveley Transport Nordic, Faiveley Transport Amiens and Ellcon National USD 15 million plus interest. This decision particularly punishes the trade secret misappropriation, unfair competition and unjust enrichment relating to the manufacture of brake cylinders and actuators that make up brake systems. s InnoTrans 2012 Faiveley Transport reaffirms its identity as a systems manufacturer. The Group took advantage of the last InnoTrans tradeshow to reassert its identity as a systems manufacturer. On a stand of over 300 m 2, larger and more comprehensive models than in the past enabled visitors to discover an installation comprising half a platform door, showing a promotional film, and half an on-board door with passenger information and video surveillance products. Further on, the Pégase system (which includes a pantograph, switches and air conditioning) and a new air conditioning model featuring a converter were exhibited. The braking range highlighted the Group s expertise in freight. Finally, three animated films detailed, step-by-step, the solutions offered by the Services business.

18 14 Activities 4 activities devoted to the safety, flow and optimisation of rail traffic

19 Activity Report 2012/ s services s BRAKES & safety s access & information s energy & comfort The Services activity is structured around three businesses: the engineering business unit spare parts and logistics friction pairs, which is particularly focused on optimising the brake disc/pad combination. The Brakes & Safety activity includes two main businesses operating in the Mass Transit/ Passenger and Freight markets: braking systems coupling systems and buffers. The Access & Information activity is structured in three business units dedicated to: onboard doors platform screen doors and automatic platform gates information and safety systems. The Energy & Comfort activity encompasses two businesses: current collection and energy conversion air conditioning. Reliability & maintainability studies Installation Commissioning & training Corrective maintenance Upgrades Remote diagnostic & predictive maintenance Routine maintenance Friction pair Overhaul maintenance D Couplers F Brake control unit G Oil free Buran air generator H Nowe sanding J Axle mounted disc K Magnetic track brake L Disc brake stations c Air generation & treatment unit v Pantograph compressor b Brake pads g Platform doors F Automatic platform gate G Beacon H Access door J Step Interior door K L Passenger Information Systems Z Cctv surveillance X Infotainment D Cab heating ventilation and air conditioning (hvac) system F Saloon heating ventilation and air conditioning (hvac) system G Air distribution duct H Exhaust device J Urs Dolder heaters K Pantographs & switches L Energy meter Z Auxiliary power converters X Master controllers & Drivers vigilance system b Odometry & event recording V Beacon m Speed sensor

20 16 Activities Services A year of growth supported by a high-performance offering The significant expansion of its range and the successful integration of Graham-White enabled the Services activity to record a 22% increase in sales in An intervention on a group of cooling systems at Bombardier, in Crespin, France.

21 Services Activity Report 2012/ % sales growth over the last four years The new services workshop in Hosur, India. Technical solutions with higher added value A significant part of our growth is the direct result of the maintenance solutions that we offer, says Lilian Leroux, Services Director. Our expertise is made available to our customers, enabling them to optimise the performance of equipment in operation (operating and maintenance costs, functional enhancements, etc.). The Services activity also offers an innovative contractual approach, under which Faiveley Transport bears a wider responsibility. The service is said The strong growth recorded this year is a direct result of both the implementation of innovative technical solutions and the integration of Graham-White, which reinforces our position in the North American market. Lilian Leroux, Services Director to be dematerialised, continues Lilian Leroux. This means that we commit to levels of equipment availability by openly taking responsibility for maintenance. An acquisition strategy that is bearing fruit The acquisition in the United States of Graham-White was completed in February The successful integration of this company, which is focused on the after-sales market has ensured the Services activity s external growth. A sales team has been created exclusively for the North American market. Faiveley Transport now has a presence in the United States through three subsidiaries and six maintenance sites, notes Lilian Leroux. The Group also has the Graham-White installed product base throughout the world to expand its range of services linked to air treatment solutions for compressed-air brakes. Amongst other future objectives, the Services activity plans to consolidate the strong growth (47%) recorded over the past four years. Sales growth by geographical region over the last four years (in thousands of euros) 274, /10 25,736 29, , /11 31,978 40, , /12 31,333 46,542 Western Europe - Eastern Europe Asia-Pacific Americas 402, /13 81,719 64, , , , ,017 Partnership with SNCF: New brake pads are under development Faiveley Transport is currently focusing its research on a key component: the brake pad. What makes this project unique is the partnership with SNCF, points out Jean-Marie Guérin, Director of Faiveley Transport Gennevilliers. Apart from the skills of its employees, SNCF is going to let us use its testing facilities so that we can develop new technical solutions together. These will then be tested on its fleet of rolling stock. The University of Lille and Ademe* are also partners in this project which should last four years and will serve to significantly increase the life of this product. *Agence de l Environnement et de la Maîtrise de l Energie (French Environmental Agency for Energy Management).

22 18 Activities Brakes & Safety Optimisation of our production tools After winning several flagship orders over the last few years, the Brakes & Safety activity focused on industrialising its production and test processes in order to improve product quality and become even more competitive. Production line of the oil-free compressor Buran TM in Piassasco, Italy.

23 Brakes & Safety Activity Report 2012/13 19 Brakes & Safety workforce by role 48% Production 10% Supply Chain 5% Sales and Marketing 4% Purchasing 17% Engineering 9% Administration 3% Project Management 4% R&D Optimising our industrial facilities enables us to offer stronger and more sustainable systems. Marc Jammot, Brakes & Safety Director Test bench for the Icx contract braking systems in Amiens, France. The decision to invest 2012/13 has been a year of investment, assesses Marc Jammot, Brakes & Safety Director, and we specifically worked on optimising the industrialisation at three key sites: Amiens, Piossasco and Witten. In concrete terms, the Brakes & Safety activity strengthened the links between R&D, Project Engineering, Purchasing, the Supply Chain and Methods to implement its systems. We have also invested in new assembly lines and test benches (e.g. endurance, lifespan and resistance to humidity, dust or pollution), continues Marc Jammot. We have an ambitious target: we want to progressively head towards zero defects. Test benches for the Régiolis and R2N trains have also been installed at the Amiens site. They will enable us to analyse potential risks within very short timeframes in order to provide a rapid response to the operator. Increased presence in China and North America The Brakes & Safety activity also continued to expand its freight solution range. We have therefore achieved certification for a valve that will enable us to offer more comprehensive, high performance systems to the American market, notes Marc Jammot. Lastly, the Brakes & Safety activity benefited from the market recovery in China to confirm its position in two segments which are expected to develop: locomotives and intercity EMU* trains. *Electrical Multiple Unit. +25% increase in production in Europe brake distributor valve: A change of scale A new brake distributor valve has been added to Faiveley Transport s catalogue. What makes it special? It is extremely compact, points out Jean-Philippe Bouteille, Technical Director of the Amiens site. Two years of R&D have made it possible to reduce the volume of this product five-fold and to halve its weight, without compromising either its reliability or its quality. This development process was accompanied by an industrialisation stage. We actually built the production line of this brake distributor valve at the same time we conducted our research, Jean-Philippe Bouteille continues. This enabled us to identify potential assembly errors and eradicate them before the start of serial production. This compact brake distributor valve will initially equip the ICx trains manufactured for Deutsche Bahn, followed by other future projects, especially in German-speaking countries.

24 20 Activities Access & Information From made-to-measure to serial equipment Recognised worldwide for the performance and durability of its systems, the Access & Information activity confirmed its presence in Asia across all its segments. The new automated painting booth in Saint-Pierre-des-Corps, France.

25 Access & Information Activity Report 2012/13 21 An after sales technician servicing the automated platform gates and on-board doors, in Hong Kong. Recovery in Asia The Access & Information activity encompasses platform screen doors, access doors and foot steps, as well as a great deal of electronic equipment, says Rémi Causse, Access & Information Director. For several years, our ambition has been to provide as much information as possible about these various products. Many of these systems have now been adopted in Asia, where the Group s presence in China, India and South East Asia fosters business opportunities. We are going Our ability to provide both serial and made-to-measure equipment explains our success amongst a very varied customer base. Rémi Causse, Access & Information Director to supply the access doors for two lines of the Singapore metro, the Hyderabad metro (India) as well as for Chinese high-speed trains, continues Rémi Causse. Our platform screen doors will also equip platforms for metro lines in Suzhou (China), and the Korean company Rotem is going to install our safety systems (speed sensors, automatic shut-off systems, etc.) in its trains. A promising outlook There are many on-going projects in Latin America, particularly in Brazil, and primarily in the metro segment. Some large tenders are taking their course in North America, South Africa and Russia, says Rémi Causse. They relate to access doors, with or without foot steps. The Access & Information activity is also maintaining its R&D efforts. It plans to develop the integration of multimedia content (such as advertisements and passenger information) into platform doors, optimise high-speed train doors and improve the reliability of tramway doors and make them more streamlined. sales 59% Europe 17% North & South America 24% Asia-Pacific 33,000 modules. 180 km of Faiveley Transport platform screen doors and gates have been installed worldwide New automated painting workshop Increased productivity and quality One of the Group s Centres of Competence, the Saint-Pierre-des-Corps site, is now equipped with an automated painting workshop. This new facility employs the infra-red technique, which reduces the painting cycle from three weeks to one. Moreover, it both guarantees the high quality of the process and increases productivity. The workshop is able to produce 50% more door leaves than previously. It also means that product quality exceeds the level expected by increasingly demanding customers.

26 22 Activities Energy & Comfort A significant breakthrough in Russia With an increase of 22%, the Energy & Comfort activity made a remarkable breakthrough in the Russian market this year. Significant R&D efforts and the continued localisation of its production will enable the Group to confirm its leadership in this country. Production of air conditioning units in Pilsen, Czech Republic.

27 Energy & Comfort Activity Report 2012/13 23 Our branched sales network, our close proximity to our customers and an improvement in the quality of our services explains the strong growth of our activity. Olivier Ravit, Energy & Comfort Director Undisputed leadership Our strategy is to ensure a decentralised sales presence that can draw on engineering teams and production sites located in close proximity to customers, notes Olivier Ravit, Energy & Comfort Director. This decision was clearly the right one: Faiveley Transport is the world leader in HVAC *, third ranked for pantographs and fourth ranked for converters. This positioning was strengthened this year by the Group s breakthrough in Russia. Several key projects conducted in China, India, the Middle East, the US and South Africa are also expected to consolidate this leadership over the next few years. Orders by geographic region 50% Europe 20% Russia A sustained R&D policy The Energy & Comfort activity also supports an active R&D approach structured around three areas: they comprise supplementing the range of products with strong potential (such as the 750-volt converters), improving product quality and performance, and creating even more added value through system building. As an example, over the last few years we have integrated converters into HVAC and energy meters into pantographs, continues Olivier Ravit. These innovative, high technical added value systems have an obvious advantage in terms of functionality, weight and size. They have proved very attractive to our customers due to their price and life cycle cost. *Heating, ventilation and air conditioning. Energy meter DEMETRA. +22% Growth in sales in 2012/13 20% China 10% Other DEMETRA energy meter: MASTERIS signs a first order After four years of research, the DEMETRA energy meter (pictured above) recorded its first order in Masteris, an SNCF subsidiary, has selected our product for its compliance with the NF EN standard, which is now in force. The energy meter measures the energy regenerated by the train accurately and can be integrated into the roofing quickly and efficiently, explains Christophe Fevre, Head of the Power Business Unit. Another advantage of the meter is its capacity to measure the energy used, coupled with software solutions developed by the Group, which will eventually lead to encourage economic driving solutions for drivers, thereby optimising the train s energy efficiency. Certain studies have actually demonstrated that energy usage on a given route can vary by up to 25% depending on driving patterns, notes Christophe Fevre.

28 Design and layout:. Writing: Philip Hall et Frédérique Paganessi. Translation: RWM Translation Services. 3D Illustration: idé. Photo credits: front cover Lynsey Addario/VII/Corbis, Anthony Marsland/ Stone Sub/Getty Images, Christophe Recoura, David Richard/Transit/Picturetank, Patrick Sardoillet, Steven Vidler/Eurasia Press/Corbis, Xinhua/ZUMA/REA. Printing: SIC Communication.

29 Limited liability company governed by a Management Board and a Supervisory Board with share capital of e14,614,152 Immeuble Le Delage Hall Parc - Bâtiment 6A 3, rue du 19-Mars Gennevilliers - France Tel.: + 33(0) Fax: +33(0) info@faiveleytransport.com