Hitachi and Ansaldo STS Innovation

STRATEGIC

DRIVERS

• Ansaldo STS

and Hitachi:

Best of both worlds

Rail industry demand is underpinned by strong fundamentals Sources: 1 World Bank data 2 United Nations: World Urbanization Prospects: The 2014 Revision 3 World Health Organisation

1950 1970 1990 2010 2030 2050

Population Growth

Environment

Global Population (billions) 1

Greenhouse Gas Emissions by Travel (grams of CO2 per passenger km) 3

Global population is forecast to grow to approximately 10.8 billion by 2080

Rail will play an increasingly important role in the mass transit segment of travel as global as global population grows

As population and urbanisation increases, reducing CO2 emissions will become an increasingly politically sensitive issue

Rail could play a key role reducing CO2 emissions

30–70g150g170g

3.0 4.46.1

7.8 9.2 10.2 10.8

1960 1980 2000 2020 2040 2060 2080

Urbanisation Percentage of People Living in Urban Areas 2 Significant increase in urbanisation over the last century, which is forecast to continue

Urban mobility has been a key factor in enabling this change

Inner-city metro and commuter rail demand will increase with continued urbanisation

30%37%

43%52%

60%66%

70%

34%

% Urban

% Rural

As the rail market continues to grow, so does the potential for new technology enabled applications within the infrastructure

Source: Frost & Sullivan

Internet-of-thingsSocial Infrastructure

Current projectsstandardisation

initiatives

Unmanned features and subsystems

Heterogeneous system integration

Auto-learningIntelligent

Automation

Inte

gra

tio

n

Automation

Key Strategic Drivers in Innovation Road Map

We have a geographically diverse business with the ability to bid effectively on major projects all over the world

Note: Percentages represent geographical split of FY16 revenues. (1) – Headcount as at 31 March 2017

Global Footprint

JapanRevenues: 17%

Asia Pacific (excl. Japan)

Revenues: 10%

Middle East & Africa

Revenues: 4%

Europe (excl. UK)

Revenues: 32%

UKRevenues: 26%

AmericasRevenues: 11%

Total global headcount – 11,091 (1)

Hitachi Rail

Ansaldo STS

Hitachi Rail

Ansaldo STS

Hitachi Rail

Ansaldo STS

Offices/Sales Presence Headquarters Factories

RS MaintenanceRS Refurbishment Signalling O&M Asset Management

Full product range

53% Rolling Stock 26% Signalling & Systems

Rolling Stock ComponentsSignalling & Traffic

ManagementStation & Information Solutions

Commuter Traction Motor CBTC

Components

Ticketing & PaymentVery High Speed Shinkansen

Traction Inverters & Transformers TMS ETCS Security

Bogies Interlocking Satellite TrainControl

Passenger Information

HVAC Driverless

Crowd Flow ManagementMetroIntercity LRV

Monorail Facility Control

O&M8%

TURNKEY13%

Key milestone achievement

Extensive Freight and PassengerRail Experience

Data Scientists Team to apply Advanced Analytics

Leader in Rail and UrbanSystems Integration

Global Leader in IT, Databases, and Enterprise Storage

Developer ofTop-Edge Traffic ManagementTechnology

Satellite LocalisationDetermination System and Multi Bearer Comms for control systems

Next GenerationAutonomous Trains and One-Man Crews

(BI) provides industry leading Reporting and Analytics

Hitachi Platforms Developed for use by Big Data and Analytics

Industrial Equipment and Operational Technology (OT) Expertise

Extensive Freight and PassengerRail Experience

Data Scientists Team to apply Advanced Analytics

Leader in Rail and UrbanSystems Integration

Global Leader in IT, Databases, and Enterprise Storage

Developer ofTop-Edge Traffic ManagementTechnology

Satellite LocalisationDetermination System and Multi Bearer Comms for control systems

Next GenerationAutonomous Trains and One-Man Crews

(BI) provides industry leading Reporting and Analytics

Hitachi Platforms Developed for use by Big Data and Analytics

Industrial Equipment and Operational Technology (OT) Expertise

Key milestone achievement

Journey has only just begun…

Towards our more challenging goal - creating smarter communities for the future

Rail systems will become arterial transportationmodes that will form the core integral

part of Inter urban mobility

Delivering key pillars of Urban 4.0

Automated Transport

Logistic Services

Integrated IT and IoT Solution

Data Analytics Solution

Predictive Analysis and Diagnosis Systems

Artificial Intelligence Analytics engine

Physical City Infrastructure and Urban Operation

Sensor Networks

Government Services

Urban Planning

Integrated Operations

Big Data and computing

Ansaldo STS and Hitachi: towards Urban 4.0

What we think, we become

Hitachi and Ansaldo STS Innovation

STRATEGIC

DRIVERS