Year End 2009 Results Year 2010 Guidance Milan - 2 th March 2010 Analyst Conference
YE 2009 Results Key Data million YE YE % mil 2009 2008 change Orders 1,786.0 1,296.6 37.7% Backlog 3,759.7 3,136.4 19.9% Production Revenues 1,175.6 1,105.5 6.3% EBIT 125.1 117.6 6.3% ROS 10.6% 10.6% - Net Profit 87.8 77.6 13.1% Working Capital (187.1) (166.3) 12.5% Net Financial Position (278.9) (195.9) 42.4% R&D 41.1 44.5-7.6% Total Headcount 4,339 4,352-0.3% Tax Rate 29.6% 36.4% -18.6% 2
Dividend declaration Ansaldo STS Board of Directors will propose to the next Shareholders meeting a dividend payment equal to 35% of Consolidated Group Net Result of the Year 2009, corresponding to 031 0.31 /share 3
Track-Record EBIT margin % 13,0% 12,0% 11,5% 11,8% 12,3% 11,0% 10,0% 9,0% 10,4% 9,5% 10,7% 9,8% 9,1% 9,1% 10,3% 9,3% 10,6% 10,6% 10,3% 8,0% 7,0% 7,3% 6,0% 5,0% 2005 2006 2007 2008 2009 Transportation solutions Signalling Group 4
Track-Record Net Financial Position Coverage Ratios 300 279 250 200 150 100 185 196 158 121 3,5 3 2,5 2 1,5 1 2,5 1,2 2,6 1,4 3,1 16 1,6 2,8 1,2 32 3,2 1,5 0,5 50 2005 2006 2007 2008 2009 2005 2006 2007 2008 2009 Backlog to sales Book to bill 5
Key data by Business Unit million YE 2009 SIGNALLING YE 2008 TRANSPORTATION SOLUTIONS YE 2009 YE 2008 Orders 1,243.0 963.0 632.5 342.5 Backlog 1,980.2 1,526.4 2,048.1 1,843.5 Production Revenues 805.0 824.5 417.1 301.6 EBIT 99.0 97.0 43.1 28.1 ROS 12.3% 11.8% 10.3% 9.3% Working Capital (66.7) (37.2) (113.7) (122.9) R & D 36.8 41.6 3.1 2.9 Total Headcount 3,821 3,901 442 376 (1) The above mentioned figures are gross of eliminations between business units. 6
YE 2009 Revenues by business unit and geography Revenues : 1.176 M Transportations Solutions 33% 35% North America APAC Revenues : 1.176 M 21% RoW 4% 48% Italy 67% Signalling 6% RoE 21% All data gross of inter-company eliminations 7
YE 2009 Orders by business unit and geography Orders : 1.786 M Orders : 1.786 M Transportations Solutions 33% RoW Italy 19% 39% RoE 9% 67% Signalling APAC 26% 7% North America All data gross of inter-company eliminations 8
YE 2009 Orders by business unit and geography Signalling : 1.243 M Transportation Solutions : 633 M RoW 15% Italy RoW 30% 27% Italy 12% 47% RoE 2% RoE 10% North America APAC 16% APAC 41% All data gross of inter-company eliminations 9
: YE 2009 Production Revenues by BU & Business Line Signalling : 804 M Transportation Solutions : 417 M Signalling Systems Components Service & Maintenance Railways Mass Transit 82% 13% 5% 17% 83% Railway ys 81% Mass Tran nsit 19% Revenues : 1.176176 M Transportations Solutions 33% 35% Signalling, Control & Automation systems for Railways and Mass-Transit Markets Signals Point Machines Level Crossings Track Circuits Hot Box detectors Relays Beacons Access Control Gates Encoder and transponder End-to-end maintenance Training of personnel Engineering and diagnostic tools Simulators 67% 65% Signalling All data gross of inter-company eliminations 10
: 2009 Main Order Acquisitions iti & Backlog by Business Unit Country Project Customer Value ( mil.) Lybia Linee Ras Ajdir Sirt / Al Isha Sabha lines LYBIAN RAILWAYS 541.0 Taiwan Taipei Circular Line - phase 1 SEMPO 214.2 Saudi Arabia Ryad Women's University MI. FIN. SAUDI ARABIA 148.8 USA France - Italy Total Components / Service & Maintennce MISCELLANEOUS 100.2 Italy Naples Metro Line 1: Dante - Garibaldi NAPLES MUNICIPALITY 59,6 Italy HSL Variation orders IRICAV / SATURNO 38,6 Italy HSL Variation orders IRICAV / SATURNO 47,2 Spain Maintenance HSL Madrid Lerida ADIF 31.3 Australia Miscellaneous ARTC 22.1 United States LIRR Harold Interlocking LIRR 19.4 India Mumbai Monorail SCOMI 19,11 Italy ACS Palermo RFI 19.0 United States PATH Control Center PATH 18.3 United States NYCT Lexington e 5th Avenue NYCT 17.9 Germany ATC On Board n.30 Velaro Train SIEMENS 16.8 United Kingdom Cambrian Line NR 13.0 Australia Maitland Branxton BiDirectional Construction ARTC 12.5 Italy SCMT Service and Maintenance SSB ETR 500 TRENITALIA 12.1 Australia Richmond Line Alliance TIDC 11.6 Australia Clearways 3 Kingsgrove g to Revensby TIDC 11.4 China Hangzhou Line 1 INSIGMA 11.1 Greece Salonicco Variation order ATTICO METRO 10.0 *Orders acquired by the Transportation Solutions business unit 11
: Backlog development by contract Backlog : 3.760 M 47% 53% Signalling Transportations Solutions SIGNALLING project average life : 3-4 years TRANSPORTATION SOLUTIONS project average life : 6-7 years Contracts acquired during the last 15 months will generate revenues already in 2010 12
Total Headcount End of December 2009 Country Main Headcount Locations ITALY Genoa 1.483 Naples Turin Potenza FRANCE Les Ulis 554 Riom SPAIN Madrid 80 UK London 40 Manchester IRELAND Dublin 28 SWEDEN Stockholm 42 USA Pittsburgh 820 Batesburg AUSTRALIA Brisbane 696 Perth INDIA Bangalore 318 MALAYSIA Kuala Lumpur 86 BOTSWANA Gaborone 24 CHINA Hong Kong 110 Bejing Other Locations 58 Total 4.339 18% 19% 2% 26% 35% USA Italy APAC China France 13
Guidance 2010 & Year End 2009 Results Key Data million Guidance YE YE mil 2010 2009 2008 Orders 1,550-1,750 1,786.0 1,296.6 Production Revenues 1,230-1,300 1,175.6 1,105.5 ROS 10.7% 10.6% 10.6% Free Operating Cash Flow (*) 45-55 114.0 43.0 Net Financial Position (280) - (300) (278.9) (195.9) Tax Rate 34% 29.6% 36.4% (*) After 2009 Dividend payment 14
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 Key Contact: Headquarter: Via Paolo Mantovani, 5 16151 Genoa, Italy V.P. Investor Relations Andrea Razeto investorelations@ansaldo-sts.comsts www.ansaldo-sts.com Tel: +39 010 655 2111 Fax: +39 010 655 2055 Ansaldo STS Investor Relations Dept.
: Glossary of Selected Terms As required by Communication CESR/05-17 b, the components of each of these non-gaap alternative performance indicators used in this press release are defined below. Free Operating Cash Flow (FOCF): This is the sum of the cash fl ow generated by (used in) operating activities and the cash flow generated by (used in) investment and divestment of intangible assets, property, plant and equipment, and equity investments, net of cash fl ows from the purchase or sale of equity investments that, due to their nature or significance, are considered strategic investments. The calculation of FOCF for the periods concerned is presented in the reclassified statement of cash flows. EBIT: i.e. Earnings Before Interest and Taxes, with no adjustments. EBIT also does not include costs and income resulting from the management of unconsolidated equity investments and other securities, nor the results of any sales of consolidated shareholdings, which are classified on the financial statements either as finance income and costs or, for the results of equity investments accounted for with the equity method, under effect of the accounting for equity investments with the equity method.. Economic Value Added (EVA): This is calculated as EBIT net of taxes and the cost of the average value of invested capital for the two periods concerned and measured on a weighted-average cost of capital (WACC) basis. Orders: This is the sum of the contracts executed with contractors during the year which have the contractual characteristics for being booked to the order book. Order backlog: This is the difference between the orders acquired and production revenues for theperiodof reference, net of the change in contract work in progress. This difference is added to the portfolio of the prior period. Research and development (R&D) spending: This is the sum of costs sustained for R&D expensed and sold. The costs for research expensed are normally referable to so-called basic technology, i.e. rights to the attainment of new scientific knowledge and/or techniques applicable to different new products and/or services. The costs of research sold are those commissioned by the customer against which a specific sale order exists and which have accounting and operational treatment identical to ordinary supply (sale contract, profitability, invoicing, advances, etc.). In consideration of therapid development within the productive sector in which the Ansaldo STS Group operates, this type of costs is generally not capitalized. Workforce / Headcounts: This is the number of employees reported on the last day of the period. Ansaldo STS Investor Relations Dept.