1 1
Ansaldo STS
2013 First Quarter Results
Genoa – May 6th,2013
Analyst Conference call presentation
1
2 2
245.0
Order Backlog 5,433.8
Revenue 259.5
ROS 8.4%
Net Financial position (214.2)
1Q 2013 1Q 2012
-51.1%
+2.8%
-2.5%
-0.2 p.p.
+11.5%
% change
EBIT 21.7 -4.6%
Profit for the period / year 12.0 +0.8%
Net Working Capital (5.5) -672.7%
R&D 8.5 -14.1%
Total Headcount 4,101 -0.8%
New Orders 119.7
5,588.5
253.1
8.2%
(238.8)
20.7
12.1
31.5
7.3
4,068
1Q 2013 – Key data
(M€)
1,492.3
5,683.3
1,247.8
9.4%
(302.0)
117.1
75.7
(48.1)
32.3
3.991
FY 2012
3 3
1Q 2013 – Key data by business unit
Order Backlog
Revenue
ROS
1Q 2013 1Q 2012
EBIT
Operating Working Capital
R&D
Headcount (no.)
New Orders 197.8
2,493.5
155.5
8.9%
13.8
122.6
8.0
3,133
50.0
3,266.6
104.8
10.7%
11.2
(102.6)
0.4
556
Signalling Business Unit
Transportation Solutions
Business Unit
The above mentioned figures are gross of eliminations between business units.
(M€)
118.3
2,603.5
150.9
8.5%
12.9
1.4
3,304.9
106.8
9.1%
9.7
107.8 (58.0)
7.1
3,019
0.2
663
1Q 2013 1Q 2012
4 4
58%42%
30%
22%13%
31%
4%Italy
RoW
North America
APAC
RoE
Data gross of intra-business unit eliminations
Revenue: 253 M€ by Geographic area
Transportation Solutions
Signalling
1Q 2013 – Revenue
by Business Unit and Region
5 5
1Q 2013 – Main Orders
The list represents about the 85% of total order intake for 1Q 2013
(M€)
Italy France USA Components, Service & Maintenance Various 27.9
Spain Madrid - Llerida HSL Maintenance 2013-2015 ADIF 26.9
Turkey Metro Ankara - variation DLH 13.4
Sweden Metro Stockholm – Red Line variations S L 7.2
Germany Velaro Train Siemens 5.6
USA Los Angeles CTMA Microlok Replacement LACTMA 5.3
France LGVEE Phase 2 RFF 4.7
USA New Jersey PATH WTC Signal Recovery Work New Jersey PATH 4.1
Australia BMA Coal Loop and Spur Line - Caval Ridge Thiess Pty Ltd 4.0
Italy SCMT / CTC – variation orders RFI 3.5
6 6
10%
56%
22%
9%
3%
99%
1%
Transportation
Solutions
Signalling
Italy
RoW
North
America
APAC
RoE
New Orders: 120 M€ by Geographic area
Data gross of intra-business unit eliminations
1Q 2013 – New Orders
by Business Unit and Region
7 7
42%58%
24%
25%20%
18%
14%
Order Backlog: 5,588 M€
Italy
RoW
North America
Signalling
Transportation
Solutions
APAC
RoE
by Geographic area
1Q 2013 – Orders Backlog
by Business Unit and Region
8 8
2013 guidance and 2015 targets:
in line with fundamentals and strategic directions
(1) Including restructuring severance costs for 6,5M€ in 2012 and 2M€ in 2013
(2) After dividend payments
2013 Guidance
2012 Year End (M€)
2015 Targets
New Orders
Order
Backlog
Revenue
ROS (1)
Net Financial
position (cash)(2)
1,500 – 1,700
5,800 – 6,100
1,250 – 1,350
~ 9.5%
1,492.3
5,683.3
1,247.8
9.4%
(302) (300) – (320)
6,100 – 6,500
1,500 – 1,700
~ 10%
(340) – (380)
• Book-to-bill remains above 1.0 but
conservatively decreases over time
• 58% from backlog 2012
• Recovery in challenging environment
thanks mainly to efficiency programs
already in place
• Continued improvement even with
worsening payment terms
9 9 9
München
Country Main
Headcount Locations
ITALY Genoa 1,530 Naples
Turin
Potenza
FRANCE Les Ulis 506
Riom
SPAIN Madrid 123
UK London 3
GERMANY 4
SWEDEN Stockholm 42
USA - CANADA Pittsburgh
Batesburg
AUSTRALIA Brisbane 597
Perth,
INDIA Bangalore 201
MALAYSIA Kuala Lumpur 197
CHINA Hong Kong 65
Other Locations 35
TOTAL 4,068
765
Montreal
Bejing
0,1%
26%
19%
17%
38%
1Q 2013 – Total headcount end of March
Other
APAC
USA Canada
Rest of Europe
Italy
10 10
Five years free capital increase
01-Jan-07 01-Jan-08 01-Jan-09 01-Jan-10 03-Jan-11 02-Jan-1260
80
100
120
140
160
180
July 05, 2010:
I tranche,
free capital increase
July 04, 2011:
II tranche,
free capital increase July 09, 2012:
III tranche,
free capital increase
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 :
2010 2011 2012 2013 2014
i.e. Offering price adj., after each
tranche 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
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Christian Andi, 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
This Analysts Presentation contains forward-looking statements which are based on current plans and
forecasts of Ansaldo STS S.p.A. Such forward-looking statements are by their nature subject to a number of
risk and factors not foreseeable that could cause actual results to differ from the plans, objectives and
expectations expressed in such forward-looking statements.
These such forward-looking statements speak only as of the date on which they are made, and Ansaldo STS
S.p.A. undertakes no obligation to update or revise any of them, whether as a result of new information,
future events or otherwise.
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NB:The management of Ansaldo STS also assesses the business and financial performance of the Group and its business segments based on 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 indicators used 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 unconsolidated subsidiaries
and securities, and gains/losses on any sales of consolidated subsidiaries, which are recorded under “financial income and expenses”, or in the case
of profits/losses from shareholdings valued using the equity method, under the item “effects of the valuation of shareholdings at equity”.
EBIT Adjusted (Adj) is given by EBIT, as defined above, by following where applicable:
- Any impairment of goodwill;
- Amortization of the portion of the purchase price allocated to intangible assets in relation to business combinations,
as required by IFRS 3;
- Restructuring costs, defined plans and measures;
- Other operating expenses or income not ordinary, ie relating to events of particular are not related to the ordinary business.
Return on Sale (ROS): is calculated as the ratio of EBIT to revenue.
Free operating cash flow (FOCF): this is the sum of the cash flows generated by/used in operations, cash flow generated by/used in investments 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”.
Funds From Operations (FFO): This is the cash flow generated by (used in) operating activities, net of the component represented by changes in
working capital.
Economic Value Added (EVA): is calculated as difference between EBIT, net of taxes and the cost of the average value of capital invested, of the
two periods being compared, measured on the basis of the weighted-average cost of capital (WACC).
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Operating working capital: It includes trade receivables and payables, inventories, work in progress, advances from customers and provisions for
risks and charges.
Net Working Capital: It is the operating working capital, net of other assets and liabilities.
Net Financial Position: Loan assets and cash and cash equivalents greater than loans and borrowings
Net Invested Capital: It is defined as algebraic sum of non-current assets, non-current liabilities and net working capital.
Debt (cash) or Net Financial Position: The calculation model is consistent with that provided in paragraph 127 of the recommendations of
CESR/05-054b implementing EC Regulation 809/2004.
New Orders: It is the sum of the contracts signed with customers during the period that satisfy the requirements to be entered in the order book.
Order Backlog: It is the difference between new orders and revenue for the period, net of the change in work in progress. This difference is added to
the portfolio of the previous period.
Headcount: It is the number of employees reported on the last day of the period.
Return on Equity (ROE): It is calculated as the ratio between the net income and the average value of the net assets in the two periods being
compared.
Research and development costs: They are the sum of the costs incurred for research and development and expensed sold. The costs for the
search expensed normally are those referring to the so-called "core technology", i.e. directed to the achievement of new scientific knowledge and / or
techniques applicable to different new products and / or services. Research costs are those sold commissioned by the Client in respect of which there
is a specific sales order and have an accounting and operational treatment identical to an ordinary supply (contract sales, profitability, invoicing,
payments, etc.).
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AFO - Audio frequency track circuit - Part of an Automatic Train Control
System (ATC), providing both train detection and transmission of digital
cab Signalling data for the Automatic Train Protection (ATP) function of
the ATC.
ATC — Automatic Train Control, or ATC, is an integrated Signalling
system that guarantees the secure movement of trains. ATC integrates
various subsystems positioned on-board and wayside. In addition to a
full interlocking system, a complete ATC system consists of three
subsystems: (i) ATP, (ii) ATO and (iii) ATS.
ATP — Automatic Train Protection, or ATP, is an ATC subsystem
responsible for the safe operation of a Signalling system. It imposes
speed limits on trains, both to maintain a safe operating distance
between them and to comply with safety and speed requirements. The
ATP system is designed to be a fail-safe (vital) system.
ATO —Automatic Train Operation, or ATO, is an ATC subsystem which
performs on-board, non-vital functions normally performed by a train
driver, including ensuring a smooth acceleration of the train to the
running speed, speed regulation and smoothly stopping the train at the
proper position at station platforms or in front of stopping signals. ATO
subsystems are primarily located on-board and represent one of the
principal components of a driverless system. Additionally, ATO
subsystems report vehicle health status to the central control offices.
ATS — Automatic Train Supervision, or ATS, is an ATC subsystem which
operates to control trains automatically by means of ATO and ATP, in
accordance with the railway timetable and regulations needs. This also
involves a CTC system.
Balise — An electronic beacon or transponder placed between the rails
of a 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 replaced by software logic
running on special-purpose fail-safe control hardware. The fact that the logic is
implemented by software rather than hard-wired circuitry greatly facilitates the
ability to make modifications when needed by reprogramming rather than rewiring.
CBTC — Communication Based Train Control, or CBTC, is a system that allows for
the interchangeability of different technological systems in use on various metro
lines. CBTC can be understood as an attempt to create an ERTMS type standard for
the mass transit industry.
CTC — A Centralized Traffic Control system, or CTC, monitors the status of
Signalling on a line or network and displays the relevant status information to a
central operator, assists in the management of the line or network consistent with
the timetable and exercises control to prevent small schedule disturbances from
becoming traffic jams. CTC also notifies the operator of ATC equipment failures
and of failures in traction power and passenger station support facilities.
GNSS (Global Navigation Satellite System) satellite-based global navigation system,
can rely on US GPS (Global Positioning System) or Russian GLONASS (Global
Navigation Satellite System) or European Galileo system under development or
Galileo.
ETCS — The European Train Control System (ETCS) is a Signalling, control and
train protection system designed to replace the many legacy safety systems
currently used by European railways, especially on high-speed lines and main
conventional ones.
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 of command,
control and coordination of rail traffic to allow for ‘‘interoperability’’ 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. Now ERTMS
is evolving to be used also with no standard GSM/R radio network, including ATO
and satellite localization as well
Glossary (I)
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EUROCAB / EVC — Onboard computer used to process ETCS
information.
FS — Ferrovie dello Stato S.p.A, or FS, the operator of the Italian railway
network.
HSL — High Speed Line, or HSL, refers to railway lines with capacity for
speeds in excess of 200 km/h (125 mph).
ICSS — Integrated Control & Safety System. Integrated Communication
Switching System.
Interlocking System (IXL) — An interlocking system is responsible for
the reliable and safe movement of trains inside a station, through
complex junctions and for the length of the line. The interlocking
system ensures that train movement is permitted only when a route is
available and the switches along this route are safely locked in their
position. In all cases the interlocking allocates a track 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
that utilizes equipment and infrastructure that is typically less massive
than that used for metro systems, with modern light rail vehicles usually
running along the system.
MicroLok® — Wayside control system consolidating vital and non-vital
control logic, data transmission and coded track circuits into a single
package (Interlocking).
MT — Mass Transit.
OTP — Optimizing Traffic Planner, or OTP, is a traffic management
system that permits real time monitoring of the positioning of trains
throughout a railway system. OTP optimizes system or network
capacity by safely minimizing the time between trains, thereby reducing
operating costs. OTP is primarily designed for those markets where
railway systems infrastructure is being used to full capacity..
PTC — Positive Train Control: Australia & North American freight railway
implementation (VSS, Vital Safety Server, manages both Interlocking and ATP
functions, by using satellite localization and object controllers only along the line,
interfaced with VSS throw open networks).
RBC — Radio Block Centre. All trains report their position to RBC that sends vital
Movement Authorities to the trains.
RFF — Réseau Ferré de France: manager, project leader and owner of the 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 railways infrastructure.
SCADA A Supervisory Control And Data Acquisition system, or SCADA, allows for
the supervision of the various subsystems at work in a railway or mass transit
environment. SCADA collects information from remote installations, transfers it
back to a central office, analyzes the information, takes appropriate action and
displays that data on a number of operator screens.
SCC – Automation system to supervise circulation, maintenance and diagnostic of
the overall mass transit and railway infrastructure
SCMT — Sistema di Controllo della Marcia del Treno: automatic train protection
system.
SNCF — Société Nationale des Chemins de fer Français. The French National
Railway Company is concerned with the operation of rail services for passengers
and freight, and the maintenance as well as Signalling of rail infrastructure owned
by RFF.
SSC —Sistema Supporto Condotta: Italian train stopping system. Less
sophisticated than SCMT.
TLC — Trainline Controller provides an interface between CBTC equipment and the
rolling stock’s conventional controls.
TTCS: Train Conformity Check System verifies the conformity of running Rolling
Stocks
Glossary (II)
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Our commitment to the theme of sustainable development is expressed in the countries where we operate, across five continents, through the dissemination of our corporate vision, attention to environmental, social, and promote our work through a climate of
cooperation with local cultures.
In coherence with our vision this year we have joined the Global Compact, a voluntary initiative launched by the UN to spread the culture of respect for human rights, labor, environment and the fight
against corruption.
Ansaldo STS SpA
Via Paolo Mantovani, 3
16151 Genoa, Italy
V.P. Investor & External Relations
Andrea Razeto
www.ansaldo-sts.com
Tel: +39 010 655 2068
Fax: +39 010 655 2055