Microsoft PowerPoint - Ansaldo S by jianglifang

VIEWS: 1,001 PAGES: 125

									                                Ansaldo STS
                                Investor Conference
                                Market > Strategy > Value




London, October 16th16th 2008
  London, October 2008
                                Ansaldo STS
                                Investor Conference
                                Market > Strategy > Value
                                Welcome to Ansaldo STS Business
                                Alessandro Pansa
                                (Ansaldo STS, Chairman)




London, October 16th16th 2008
  London, October 2008                                  1
Signalling: Hi-Tech safety for
railways and mass transit systems




   The Old Way...




London, October 16th 2008           2
Signalling: Hi-Tech safety for
railways and mass transit systems                                       The New Way...

                                                                         Supervision
                     Automatic Train                                     CTC / SCADA
                     Control (ATC)
                     System

                                  Wayside                                                 - Traffic
                                    ATP                                                   - Manpower
   Point
                 Signals       + Interlocking                            Radio link
   Machines                                                                               - Stations
                                                                                          - Maintenance
                                                                        On board
                                                             Encoders   ATP / ATO


                                 Track
                                 circuit        Balises
                                                          Sensors
                            Trackside
                            equipment



London, October 16th 2008                                                             3
 Transport Systems: Transforming mobility
 needs into integrated transport systems

  Functional                                Technologies                                     Best-in-class
 Requirements                                                                              Transport System
Track layout
                                 Rolling Stock           Signalling


                                                                      Security
                               TLC          Electrification

                                                              SCADA


                                        Ticketing &                     Depots
• Line capacity:                       Passenger Info
                                                        Track works
  12,000 people per            Platform
  hour per direction         Screen Doors

• Availability:                                                                                 Copenhagen
  99,9%                                         People know-how                                Driverless Metro
• Scheduling                                Financing          Maintenance
                                                                                                World’s Best
• Others                       Project & Risk                             Operation
                                                                                               MetroRail 2008
                                Management
                                                                      System Integration
                                                                         Engineering

 London, October 16th 2008                                                                 4
Ansaldo STS: A wide portfolio of technologies
for moving people and goods safely
   Main Line Railways                    Low Density & Freight Railways                          High Speed Line




                                                   Queensland Rail
  Rome Termini (1st Computer Based Interlocking)   Broadlea Wotonga Implementation & Others
  Saarbrücken Mannhein, Swedish Ester project      Hamersley Hope, Rio Tinto (Australia)
  Cambrian line, Manchester Node & Metrolink                                               Italy HSL network
                                                   Optimized Traffic Planner,              France HSL network
                                                   Union Pacific (US)                      Madrid-Lerida (Spain 1st ERTMS Lev2)
                                                   CTC/CAD, CSX (US)                       Channel Tunnel
  Metro                                                                                   Paris-Channel Tunnel-London;
                                              LRT / Tramways
                                                                                          Paris- Brussels
                                                                                          Korea HSL
                                                                                          QinShen
                                                                                          (China 1st dedicated passenger line)

  Transport Systems
  Copenhagen (1st Driverless Steel-Wheel Metro)
  Brescia, Milan, Thessaloniki, Rome
  Signalling
                                                                     Dublin Light Metro
  NY, LA, Shanghai, Binhai, Paris
                                                                     Kuala Lumpur LRT
London, October 16th 2008                                                                    5
Ansaldo STS is outperforming the stock market
- Based also on Management approach focused on shareholders interest and long terms vision -

                     ASTS Stock Performance vs. Mibtel, Jan 1st - Sept 30th, 2008
                                                                    IPO yield
                                                               29.03.06 – 30.09.08
                                                                      28 %
                                                                                                         Year 2008 higher price
                                                                                                            11.08 € / share
                                                                                                         (September 3rd 2008)




               130
                                                                                                                           Ansaldo STS
               120
                                                                                                                           (rebased)   +15%

               110

                                                                                          Monthly avg. volume 2008
               100                                                                            438,021 shares

                90

                                                                                                                           Mibtel IT -33%
                80
                                                                                                                           (rebased)
                         Year 2008 Lower price
                70            6.8 € / share
                            (Jan 22th 2008)                                 Low volatility performances
                60
                  dec-08           jan-08   feb-08   mar-08   apr-08   may-08        jun-08     jul-08      aug-08     sep-08

                                                                                Ansaldo STS is #2 in 2007 for EVA / Invested Capital - Ambrosetti Stern


Source: Press search, Borsa Italiana


London, October 16th 2008                                                                                                   6
Ansaldo STS: A world wide based Group

                               Share Distribution
                                               France 10.0%
                     UK 9.1%                                      USA& Canada 10.4%


        Retail Italy                                                    Rest of EU                  Market Presence
          9.1%                                                            11.0%
                                                                                             North America         Asia Pacific 35.0%
                                                                                                 4.0%


                                                                                                                              Others 4.0%
          Italy 12.0%



                                                                  Finmeccanica 40.1%


                                                                                       Rest of Europe
                                                   17%                                                                        Italy 34.0%
                                                                     18%                   23.0%
     Free Float
                                                                                       Revenues by geographic area 2007
                                                                              18%
                                          15%


                                                   12%
                                                                        20%

At the time of last Shareholders general meeting 1st April 2008


London, October 16th 2008                                                                                    7
Ansaldo STS: Going ahead towards the future


            Strong organic growth: continue to focus on Signalling and
       1    Transportation Systems leveraging client positioning and
            technological leadership

       2
             Eventual opportunities for external growth in core business:
             small / medium sized acquisitions

       3     Margin improvement and growing dividend yield


       4     Finmeccanica commitment to support Ansaldo STS growth
             in value creating opportunities




London, October 16th 2008                                   8
                              London, 16 October 2008




ASTS Investor Conference
Market > Strategy > Value




Mauro Moretti, Chief Executive Officer
Ferrovie dello Stato Group
FS Group: 2007 turnaround year

The 2007 was a very important year in terms of economic and financial
development. We improved the net results, compared with 2006, to 1.700 million
euros, achieving quality best practice target and improving business economical
affordability.




                                                                          10
Ferrovie dello Stato Group: Passenger traffic
development on Trans-European corridors

Inhabitants per km2




                                                11
 Ferrovie dello Stato Group: Passenger traffic
 development on HS Lines




                         3.600 M€




              6.900 M€




                          2.000 M€
    700 M€




                                                       Actual
In Europe the M/Long distance turnover is 13.000 M€.   2020
           FS Market share is about 15%.

                                                                Source :   EURAILINFRA   12
  HS Services: the modal split revolution

   TGV Paris-Lyon         AVE Madrid-Seville      Thalis Paris-Bruxelles    TGV East European
      (1981 – 1984)            (1991 – 1997)            (1994 – 1998)            (2007 – 2008)

q Train modal share from q Train modal share from q Train modal share from q Train modal share from
  47 to 74%                19 to 53%                24 to 48%                28 to 63%
q Airplane modal share q Airplane modal share q Airplane modal share q Airplane modal share
  from 21 to 7%            from 39 to 12%           from 7 to 4%             from 57 to 25%
q Road modal share from q Road modal share from q Road modal share from q Road modal share from
  32 to 19%                42 to 35%                69 to 48%                15 to 12%




   Along the HS Lines Train will be by far the winner mode of transport.

                                                                                                 13
High-speed rail development in Italy

HS/HC: new lines                          AV/AC Network
                                           Km
                                2006       600
                                2008             800
                                2009                970

                                                      1.200




                                           Journey times
                        Lines     TO-MI      MI-BO        BO-FI   FI-RM    RM-NA
                        Now       1:22’      1: 42’        59’    1: 35’   1: 27’
                        HS/HC     1: 00’     1: 00’        35’    1: 20’   1: 10’




                                                                             14
On track with our commitment


                            Our milestones
                January    2008   Naples – Salerno
                July       2008   Passante di Milano
                December   2008   Bologna - Milan
                December   2008   Bologna - Verona
                December   2009   Novara - Milan
                December   2009   Bologna - Florence
                December   2009
                                  HS/HC Lines Completed




                                                       15
High-speed rail development in Italy

The medium/long distance “market” production increase planned
by 2011 is more than 40% due to the HS Train service.

The HS supply will be developed on a range of 10 (in rush hour)/60
minute frequencies.
M Train.km
60                         OTHERS ES    HS


40


20


 0
             2007   2008         2009        2010       2011

                                                               16
HS/HC: integrated system

         Mobility                       Freight                    Environment


• Transport      production   • Capacity increase           • Modal shift;
  increase (ex. + 50% in      • Comm. speed increase        • Urban development;
  metropolitan areas)
                              • Harbor, inland terminal     • Metropolitan       urban
• Journey time reduction        interconnection point         centers decongestion;
• Specialized lines           • Logistic              HUB   • Reducing air pollution
• Modal      split    point     Development                   and CO2 emissions;
  increase                    • International partnership




 Our modern railway system will be the greatest development opportunity
 for the country since 1970, increasing Italy’s competition level in the
 international/EU market.

                                                                                     17
  Quality improvement

q PUNCTUALITY
  Progressive improvement for passenger trains (target:
  91-92% trains running on time) and freight trains (target:   0,75    Number of Accidents (M trains.km)
  80% of trains at destination within 30 mins.)                                                                0,62
                                                                                             0,53
q SAFETY                                                        0,5
  European leadership even with the use of the new
  SCMT (Train Running Control System) technology on
  the conventional network and ERTMS (European Rail                       0,23
                                                               0,25
  Traffic Management System) on the HS/HC network

q CLEANING
  Modifying rolling stock cleaning process and upgrading         0
  control system                                                      Italian Network       German         French Network
                                                                                            Network

q ASSISTANCE           AND       INFORMATION            TO
  CUSTOMERS
  More efficient management of information on the
  abnormalities and computerised links with on-board
  systems




                                                                                                                   18
FS High-speed trains
                                                        Fleets

                  60 ETR 500                   HS AcT                New
                  12 coaches
                  Seats: 671
                  Power: 8.800 kw
                  Comm. Speed:300Km/h
                  Max Speed: 350 km/h
                                        2007     58
                                                                    Tender
                 12 ETR 600             2008     86              50 HS Trains
                 7 coaches
                 Seats: 432
                 Power: 5.500 kw        2009     86
                 Comm. Speed: 250Km/h
                 Max Speed: 280 km/h
                                        2010     86


                                        2011     96
                 15 ETR 480/485
                 9 coaches
                 Seats: 480
                 Power: 6.000 kw
                 Comm. Speed: 250km/h
                 Max Speed: 270 km/h




                                                                           19
New technologies: safety and efficiency

                                              SCC
   Traffic                                  Command
  Management                               and Control
                                             System


                                             SCMT                  GSM-R                    GSM-R
                   SCMT                       Train                                         Global
                                             Running                                       Switching
                                             Control                                        Mobile -
                                             System                                         Railway

    Safety
                                                           TdS                             ERTMS
                              SSC
                  SSC         Driving
                                                         ROLLING                           European
                                                          STOCK                          Railway Traffic
                             Support
                                                         HS - SCMT                       Management
                             System
                                                           - SSC                             System




 Efficiency and             ACC Multi-station
   development                                                       Train Diagnostics
                        Central computerised device


                                                                                                 20
Sub System Release Certification for Commercial
Operation




           12




                                                  21
On – Board Sub-System




       STM




 DMI SCMT


                        22
ETCS L2 with NVP
HS Rome – Naples & Turin – Novara lines




 - Primary
 - Secondary


                      Others




 BOE

                                          23
New HS/HC Lines




                  24
 European Rail Traffic Management System
 Value
   Maximum performance: Level 2 ETCS allows both high capacity and
   high speed optimizing line’s maximum capacity in respect of safety
   and reliability;
   Energy savings: Level 2 ETCS allows energy optimization giving
   information to train driver about lines and maximum speed;
   Interoperability: increase interoperability on lines and HS corridors;



FS Group made a technological leap implying a cultural and
organizational revolution in terms of performances.
The real challenge is to keep on this approach increasingly optimizing
processes in a cost-benefit analysis to maintain the leadership as
international benchmark.

                                                                      25
Relationship with suppliers
Technology evolution and system integration compliance require a different
approach with suppliers.

                                      Partner
       Business Impact




                                                Creating new competitive advantages through integration:
                                                Creating new competitive advantages through integration:
                                                     strategic approach (long-term, risk/reward sharing)
                                                     strategic approach (long-term, risk/reward sharing)
                                                     value engineering (codesign, etc)
                                                     value engineering (codesign, etc)
                                                     total focus on delivery, quality and innovation
                                                     total focus on delivery, quality and innovation
                         Supplier

                          Market Complexity




                                From supplier to strategic partner
                                committed on high level performance

                                                                                                           26
                                Ansaldo STS
                                Investor Conference
                                Market > Strategy > Value
                                SE Europe Region
                                Sergio De Luca
                                (Ansaldo STS, CEO)




London, October 16th16th 2008
  London, October 2008                               27
Ansaldo STS SE Europe Region in a snapshot
  Markets & Locations                               History & Key References
                                                    • 1853: Establishment of Giovanni Ansaldo & Co
     Headquarters                                   • 1981: Computer-based interlocking system and
     Sales office                                     Centralized rail traffic control
     Manufacturing site                             • 1993: ERTMS/ETCS system starting
     Engineering Quick                              • 1999: Computer-based interlocking system introduced
     Response Sites                                   at Roma Termini station
                                                    • 2002: Automated Copenhagen metro opened.
                                                    • 2005: First Italian high-speed line between Rome and
                                                      Naples, first in the world with a level 2 ERTMS
                                                    • 2006: Turin-Novara high-speed line becomes
                      Key Data                        operational. As well as signalling and electric
   €M                                                 substations.
 3,000
                                 2,446              • 2006: Ansaldo STS IPO

                      1,872
                                                    • 2007: Projects in Romania, Greece, Metro line 6 in
 2,000
           1,644                                      Naples and enters the German market
                              1,100                 • 2008: High-speed signalling equipment provided for
 1,000    622         832                Revenues
         573        576       557        Orders       the Zhengzhou-Xi’an line in China.
                                         Backlog    • 2008: Milano Bologna High-speed Line pre-exercise
    0
           2005      2006     2007




London, October 16th 2008                                                        28
Market Outlook: Signalling

 Market Drivers                                     Market Size & Growth                               CAGR
                                                                                                       '07-'12
                                                    3,000    €M
 • Interoperability requirements in EU                                     +5%   2,612
                                                                                         153 ME
   corridors                                                                                             5%
                                                                  2,087                      Eastern
 • High Speed Lines competing with airlines         2,000                 120            857 Europe&     7%
                                                                                             Turkey
 • Most of Eastern EU needs to update                                     615
                                                                                         316 Russia      7%
   obsolete Signalling technology                                         225
                                                    1,000
 • Congestion in large cities calling for                                 515            597 Germany     3%
   new/upgraded Mass Transit systems
                                                                          612            690 Italy       2%
 • Increasing need for safety in low traffic
                                                                  2007           2012
   and regional lines in Western Europe                  0




                                                    Key Success Factors
 Technological implications                          •   Trusted relationship with clients
 • ERTMS Lev. 2 for High Speed and Main              •   Strong reference base
   Lines                                             •   Technologically advanced solutions
 • Multi-station interlocking                        •   Ability to customize products
 • CBTC (Mass Transit)                                   according to clients' needs
 • Low cost solution for low traffic and regional
   lines

London, October 16th 2008                                                        29
Market Outlook: Transport Systems
Market Drivers                                Future Key Projects
• Increasing need for urban mobility, due     • High Speed Lines
  to urbanization and traffic congestion        (European Corridors, Mecca - Medina,
• accelerated urban development in Gulf         Sao Paulo - Rio de Janeiro, Buenos Aires -
  Coast Countries                               Mar del Plata, Moscow - St. Petersburg,...)
• Local agencies not scaled to handle         • Rail links (Sochi, Algiers, Libya...)
  technology integration and project          • Mass Transit
  management
                                                (Milan projects –Expo 2015-, Rome,
• Limited local funding calling for turnkey     Copenhagen Ring, Athens, Bucharest,
  structures including financing (e.g. PPP)
                                                European Tramways, Gulf Coast Countries...)
• Better risk management and incentive
  alignment with turnkey approach
                                              Key Success Factors

Technological implications                    • Existing references proving reliability
                                              • Lobbying power / ability to set-up
 •    High Speed Lines                            partnerships and alliances
 •    Suburban Rail                           •   Multidisciplinary engineering competences
 •    Driverless and Conventional Metro       •   Project and risk management competences
 •    Tramways                                •   Ability to provide financing solutions (PPP...)



London, October 16th 2008                                               30
Ansaldo STS SE Europe Region: A strong positioning in the market
               Current positioning                                          Key strengths
Signalling                                               Signalling
• Leader in Italy, excellent relationship with RFI       • Leadership in key technologies
• #3 in Russia, consolidating relationship with RZD      • Strong relationships with key clients
Transport Systems
• Strong references and credibility in driverless        Transport Systems
  metro segment: large order acquisitions in the         • World class references
  past 2 years                                           • Ability in structuring partnerships and alliances
                                                         • Strong competences



                                              Strategic moves
  Signalling
  • Consolidate leadership, develop additional domestic business in low traffic and regional lines
  • Increase presence in Germany, Eastern Europe, Turkey and Russia, by selective M&A
  Transport Systems
  • Aggressively pursue opportunities in Eastern Europe, Russia and Middle East, leveraging partnerships with
    local suppliers
  • Expand solution offering to new subsystems (e.g. Homeland Security), developing in-house competences
  • Strengthen the offering for Operation and Maintenance services
  • Develop advanced financing solutions




London, October 16th 2008                                                           31
                                Q & A Session




London, October 16th16th 2008
  London, October 2008                          32
                                Ansaldo STS
                                Investor Conference
                                Market > Strategy > Value
                                NW Europe Region
                                Mass Transit client's view
                                Jérôme Martres
                                (RATP, Directeur du Département Maîtrise d'Ouvrage)




London, October 16th16th 2008
  London, October 2008                                               33
RATP, the Company: A national public service company
 A public service created in 1949
       • Managing the world’s largest
         multimodal network
       • Aiming to offer the general
         public the best service at the
         best cost

 A State-owned national company
       • With an EPIC (Public Sector
         Industrial and Commercial
         Organization) status and the
         State as its sole shareholder
       • 1 CEO appointed for 5 years
         and a 27-member strong
         Board of Directors



London, October 16th 2008                 34
RATP in its environment: Ile-de-France
- The capital region -
 High population
       • 18% of France’s population on
         only 2,2% of its mainland territory
       • 11 million inhabitants (+10 % in 25
         years)

 A region that is particularly rich and
    dynamic
       • Accounting for 28% of France’s
         GP and 20% of all jobs

 A region that attracts tourists
       • 44 million visitors per year




London, October 16th 2008                      35
An integrated multimodal transportation network
- Surface network: efficiency / local service -

      The surface network in figures


       331 bus routes

       3 tram lines


       14,268 employees inc. 11,509 drivers

       4,064 vehicles

       999.7 million travellers per year




London, October 16th 2008                     36
An integrated multimodal transportation network
RER: Regional Express Network

               The RER in figures


    438 million journeys a year

    3,200 employees inc. 776 drivers

    66 stations


    115 km of lines

    120 second intervals between trains




London, October 16th 2008                  37
An integrated multimodal transportation network
- Metro: Density, Frequency, Reliability -




             The Metro in figures

       14 lines inc. 1 automatic

       10,000 employees inc 3,100 drivers

       1,372 million travellers per annum

       212 km of lines

       300 stations


London, October 16th 2008                   38
Increasing Mass Transit Demand
- Network extensions, extension of rush hours periods -
         Extensions of 5 lines is planned

               •   L 14     Olympiades                                    06/2007
               •   L 13     Asnières Gennevilliers                        05/2008
               •   L 8      Creteil Parc des Sports                     end of 2011
               •   L 12     Proudon Gardinoux                           start of 2012
               •   L 4      Mairie de Montrouge                         mid of 2012


         Transport offer was increased several times for the last years

               • a growing demand : since 10 years, traffic has increased by 15%
               • increase of rush hours period and off-peak hours too
               • operations during one additional hour on Friday and Saturday nights


         And building of 5 new tramways lines


London, October 16th 2008                                                  39
RATP network extensions

                               TW St Denis / Epinay/Villetaneuse

                                                                                        Tw St Denis / Sarcelles
                                  T1 St Denis / AGIII

                                                                                         M12 à Mairie
                                                              M13 à                     d’Aubervilliers
                 T2 la Défense / Pt                           AGIII                                         T1 Bobigny / Noisy-le-Sec
                     de bezons

                                                                                                          T1 Noisy-le-Sec / Montreuil-VdF
                                                                      M14 à St Lazare


                                                        TMS                  M14 à Olympiades




                                         T2 à Paris
                                                                     M4 à
                                                                   Bagneux
                                                                                                             M8 Créteil / Parc des Sports



                  Tw Châtillon / Vélizy/Viroflay


                                                                                              Tw Villejuif / Athis-Mons




London, October 16th 2008                                                                                             40
OURAGAN: Strategy and goals of the modernization
 • Renewal of all subway lines
     •   Renewal of Train control systems for all lines except L14 (ATP,ATO,ATS)
     •   Renewal of obsolete signalling equipments
     •   Operations management improvements with new traffic control centres
     •   Decrease operational costs
 • Increase of transport offer
     • Decrease of headways between trains, ability to offer a 90 seconds headway
     • Increase of the commercial speed (~5%-10%)
 • Quality of service improvement
     • Robustness with regard to single failures of signalling hardware to reach high availability
     • Platform doors compatibility, to prevent incidents with passengers, to guarantee the dwell time
 • Safety improvement
     • Continuous speed control in manual driving mode
 • Optimising « Life Cycle Cost »
 • Ensure competitive procurement of interoperable CBTC/OURAGAN systems for:
     other lines, line extension, rolling stock retrofit or renewal, upgrade of obsolescent pieces
     of equipment, equipment evolution
 • Establish design and operational standards for CBTC/OURAGAN implementation on
   Paris Mass Transit Authority (RATP)
 • Be able to manage evolutions & maintenance of future systems
 • Certifying several suppliers to keep competition between manufacturers



London, October 16th 2008                                                            41
OURAGAN: CBTC Program
 CBTC on lines 13 and then on lines 3, 5, 9, 12, 10

       •   permanent speed control
       •   with or without signal cancellation and cab-signal, depending of the type of trains
       •   automatic driving mode
       •   manual driving mode
       •   automatic return mode at terminal

 OURAGAN is a generic and modular New CBTC System with driver

       • Based on sub system exchangeability
       • Multiple suppliers sources
       • Core system applied to the lines




London, October 16th 2008                                                    42
Imperative rolling stocks replacement program
- CBTC program is closely linked to the rolling stocks replacement and
renewal program -


                          Years   03   04   05   06   07   08   09   10   11   12   13   14   15   16    17   18   19   20   21
           Rubber           L1
           Tyres 1        L 11
                            L.6

                            L.2
           MF 2000 1        L.5
                          L.9
                          L.12
             MF 67
                          L.10
           et MF 2015
                            L.3

                          L.13

            MF 77           L1
                            L1


                    Renewal
                    Replacement




London, October 16th 2008                                                                           43
OURAGAN: Program and full automation of line 1
             2004 2005   2006   2007   2008 2009 2010 2011   2012 2013 2014   2015   2016 2017   2018   2019   2020 2021   2022   2023    2024

    1
    13
    3    3 bis

    5
    12
    9
                                                                                                                            Engineering
    10                                                                                                                      Fixed equipments setup
                                                                                                                            On Board equipments setup
    8
                                                                                                                            Extension
    7                                                                                                                       Rolling Stocks
         7bis
                                                                                                                            TCC revenue service (Steps)
    6
    11
    4
    2
             2004 2005   2006   2007   2008 2009 2010 2011   2012 2013 2014   2015   2016 2017   2018   2019   2020 2021   2022   2023    2024




London, October 16th 2008                                                                                      44
Ansaldo STS is a value creating partner

                            Transport needs are still increasing
                              • Transport capacity to be improved
                              • Signalling systems are getting old, the following issues have to be
                                addressed: Obsolescence, Poor flexibility, Availability concerns.



                            Implementation of a new generation of CBTC system
                              Common Interchangeability specifications between three different suppliers
                              (System, Wayside, Onboard, Data Communications System, Safety,
                              Performance and Validation).

                            Standardization of the signalling system


                            Life cycle cost reduction
                              (At the operation level, at the maintenance level)

                            Reduction of risks thanks to a product approach



London, October 16th 2008                                                          45
                                Ansaldo STS
                                Investor Conference
                                Market > Strategy > Value
                                NW Europe Region
                                Georges Dubot
                                (Ansaldo STS France, CEO)




London, October 16th16th 2008
  London, October 2008                                      46
Ansaldo STS France Region in a snapshot
  Markets & Locations                               History & Key References
        Headquarters                                • 1902: founding “Compagnie des Signaux”
        Sales office                                • 1981 to 2007: all French TGV lines delivered to
        Manufacturing
                                                      SNCF/RFF; First HSL out of Japan in 1991
        site                                        • 1989: SACEM ATP system delivered to RATP (Paris
                                                      Metro): First Communication Based train control with
                                                      virtual block
                                                    • 1991 to 2000: 3900 km of lines delivered to China,
                                                      incl. Qin-Shen 250km/h: first 250 km/h line in China
                                                    • 1994: ASTS opens Channel Tunnel links equipments
                                                      in operation
                                                    • 2000: Hong Kong metro supervision in operation
                        Key Data                    • 2002: Madrid Lerida High Speed line delivered
   €M                                                 (ERTMS levels 1 & 2)
 3,000                                              • 2003: UK High Speed One in operation
                                   256
                       229                          • 2004: Ouragan contract for RATP & Korean High
             203
 2,000     177       184        193                   Speed Line in operation
                   154        164
         135                                        • 2007: Cambrian Lines contract (ERTMS in UK)
                                         Revenues
 1,000                                              • 2008: ESTER contract (ERTMS in Sweden)
                                         Orders
                                                    • More than 2000 sets of on-board equipment already
                                         Backlog      delivered in Scandinavia
    0
           2005        2006   2007




London, October 16th 2008                                                      47
Market Outlook: Signalling

  Market Drivers                                                            Market Size & Growth                             CAGR
                                                                                                                             '07-'12
    Rail:                                                                   3,000   €M
                                                                                                       2,773
                                                                                                 +6%
      • High Speed development                                                                                     China/
                                                                                                               928 Korea1      9%
      • New standard for interoperation                                                  2,065
      • New private operators                                               2,000
                                                                                                 610           153 North       5%
                                                                                                                   Africa
      • Energy & environment efficiency                                                          120           510 Spain       8%
    Metro high needs for:                                                                        350
                                                                                                               301 Nordics
                                                                            1,000
                                                                                                 225                           6%
      • Renovation
                                                                                                 530           614 UK          3%
      • Open market (interchangeability)
      • Increased capacities                                                                     230           267 France      3%
                                                                               0
      • Driverless solutions                                                              2007         2012



   Technological implications                                               Key Success Factors
    ERTMS and CBTC standard more or less                                     Credibility based on track record in
    mandatory worldwide                                                         • technical performance
    Local adaptations generally requested                                       • project management abroad
                                                                             Price competitiveness
                                                                             Experience in consortiums and partnership


1 Includes only HSL and conventional lines. Does not include mass transit


London, October 16th 2008                                                                              48
Market Outlook: Transport Systems

  Market Drivers                     Future Key Projects
                                     Railway
  • Trend to high level integrated   France: PPP (e.g.: Sud Europe Atlantique);
    contracts                        UK: London-Newcastle

  • New operators; PPP               Mass Transit
                                     Stockholm, London Cross rail, Thameslink
  • Development of Tramways market
                                     LRT / Tramways
                                     Spain (e.g.: Granada), UK

  Technological implications         Key Success Factors
                                     • Capability to manage large projects &
 • Capability to manage external
                                       partnership
   technologies
                                     • Technical integration capabilities
 • Integration capabilities
                                     • Project financing, Commercial presence



London, October 16th 2008                                    49
Ansaldo STS NW Europe Region: A strong positioning in the market
                Current positioning                                    Key strengths
 • Rail: leadership on High Speed Lines &             • High skilled resources, referenced products &
   strong references in ERTMS                           systems: ERTMS, HSL, IXL & CBTC
 • Metro: up to date technology in CBTC
                                                      • Large project management track record in
   (RATP reference)
 • Strong technological leadership                      international environment
 • Local presence in core countries (France,          • Large and proven experience in maintenance
   Spain, UK, Sweden, China, HK, Korea)                 both in Railway & Mass Transit
 • Great expertise in export project
   management


                                            Strategic moves
  •   Consolidate HSL & ERTMS positions
  •   Leverage CBTC projects to penetrate new markets
  •   In China, exploit opportunities through existing positions in DPL and On Board CTCS
  •   Develop leadership in EUROCAB
  •   Extend positions to conventional line regeneration
  •   Become a significant player in Transportation Systems, first focusing on selected projects
  •   Take advantage of possible M&A and/or partnership



London, October 16th 2008                                                      50
                                Q & A Session




London, October 16th16th 2008
  London, October 2008                          51
                                Ansaldo STS
                                Investor Conference
                                Market > Strategy > Value
                                Americas Region - Railway client's view
                                Paulo Assis Benites
                                (TRENDS Engenharia e Tecnologia Ltda., CEO)




London, October 16th16th 2008
  London, October 2008                                      52
Company Profile: TRENDS
  Holding company of Advanced
  Technology companies in
  Transportation and Infrastructure.

  Functions:
  Consulting, Project Management & Development, Equipment
  Manufacture & Supply, Energizing & Integrated Solutions




                                           Providing control services of vehicles and freight
                                           system charges

                                           Solutions and equipment, public transport, ticketing
                                           Solutions: tracking of vehicles (trains, buses,
                                           trucks, cars) with GPS and billing
                                           Development of software and solutions supply
                                           Management and supervision of collection services
                                           for systems of public transport


London, October 16th 2008                                                    53
References

         São Paulo Metro Energy System with Primary and rectifier
              substations Supply of line 2 (3 km 3 stations)
                              US$ 72.9 M
         São Paulo Metro Line 4 Data Transmission System Supply
                               US$ 3.5 M
     São Paulo Metro Line 2 extension - Ventilation System Supply for
                              US$ 10.0 M
     São Paulo Metro Line 2 extension - Platform Door System Supply
                              US$ 7.1 M
                    São Paulo Metro - Security Control Center
                                 US$ 11.8 M

   Signalling, Energy & Telecommunications for CPTM Line A&F
   Consortium Value approx US $ 125 million
           • EFACEC (Portugal)
           • Union Switch & Signal (USA)

London, October 16th 2008                                               54
        Brazil
   Population 190 million Area 8,511,965 km²
   GDP (2007): US$ 1,400 billion
   GDP per capita: US$ 7,200 million                                                                                                                                                     ~3000 miles

   The 10th largest economy in the world
   GDP growth rate (2007): 5.4%
   Inflation stabilized to around 4% per year

                                                                                                                                                             ~2800 miles

 Market size
                                  Countries with a population            22      Em % do PIB
                                  of >100 million                        21                                                                                                                               21.1
  Countries
  with an                              Bangladesh                        20
                                                                                                                                                                                               19.3
  area of >4                            Russia               Nigeria     19
  million                                        Pakistan                18
                                                                               18.0
                                        USA                                                  17.4
  square                                                                 17
                                                                                                        17.0             16.8     17.0                                        16.8
                                                     Indonesia                                                                                                                                  17.6
  kilometers   Australia                    Brazil
                                                                         16                                                              16.4               16.1
                                       China              India                    17.0
                  Canada                                  Japan          15                                     16.4                                                        16.3
                                                 Mexico                                                                                                     15.3
                   France           Spain
                                                                                 1995

                                                                                          1996

                                                                                                 1997

                                                                                                         1998

                                                                                                                  1999

                                                                                                                           2000

                                                                                                                                  2001

                                                                                                                                         2002

                                                                                                                                                     2003

                                                                                                                                                              2004

                                                                                                                                                                     2005

                                                                                                                                                                               2006

                                                                                                                                                                                      2007 P

                                                                                                                                                                                                 2008 P

                                                                                                                                                                                                             2009 P
                                                            Netherland
                                     Italy

                                                        United Kingdom
 Countries with        Germany
                                                                         Fonte: IBGE e BNDES ( Previsões)
                                 South Korea
 GNP >US$ 500
 billion

London, October 16th 2008                                                                                                                       55
Mass Transit in Brazil
- Metro and Suburban Transportation -

                                                 Total = 1.4 Billion Passengers in 2006

                                 Metro Sao Paulo 41%

                                                                            Others 1%
                                                                                B. Horizonte 3%
                                                                                   Porto Alegre 3%

                                                                                    Recife 4%



                                                                                    SuperVia 7%




                                     CPTM 31%                                Metro RIO 10%


                                                                          SAO PAULO + RIO = 89%



Sources: Revista Ferroviaria BIFER and SIMEFRE


London, October 16th 2008                                                                 56
Mass Transit Projects included in the Brazilian Growing
Acceleration Program (PAC)
   Metro Projects:                      LRT Projects:
   São Paulo Line 5         US$ 2.7 B   Natal                                   US$ 98 M
   Rio de Janeiro                       Maceió                                  US$ 79 M
   Metro Line 2 (ext)       US$ 700 M   João Pessoa                             US$ 98 M
   Metro Line 3             US$ 1.1 B   Santos                                  US$ 230 M
                                        Vitória                                 US$ 239 M
   Porto Alegre
   Metro Line 1             US$ 400 M   Brasília                                US$ 300 M
   Metro Line 2             US$ 880 M   Recife                                  US$ 125 M
                                        Ceará (Cariri)                          US$ 20 M
   Brasília Line 1          US$ 290 M
   Salvador                 US$ 350 M
                                        Federal Government Project: High Speed Train
                                        - Campinas - Sao Paulo - Rio: US$ 15 billion
   Other Projects:
   São Paulo Airport Line US$ 2.7 B
   CPTM Line B,D&E          US$ 700 M

   Rio de Janeiro
   Commuter Investment US$ 800 M
   High Speed Line
   Sao Paulo – Rio          US$ 15 B


London, October 16th 2008                                          57
                                Ansaldo STS
                                Investor Conference
                                Market > Strategy > Value
                                Americas Region - Railway client's view
                                Pedro Benvenuto
                                (Transportation Plans for the State of São
                                Paulo, Brazil 2007-2010)




London, October 16th16th 2008
  London, October 2008                                      58
            Transportation Systems under Jurisdiction of
            Sao Paulo State
   Summary:
      • 323 km of Transit Railways, 143 Stations and 10 Terminals
      • 6.4 Million passengers per day

   3 Metropolitan Regions in the State of São Paulo:
     • São Paulo – RMSP
     • Campinas – RMC
     • Baixada Santista – RMBS

   Transit Companies under STM:
     • Companhia do Metropolitano de São Paulo - Metro São Paulo
       (3 Million Passengers / day 61.3 km of rail)
     • Companhia Paulista de Trens Metropolitanos - CPTM
       (1.6 Million Passengers / day 262 km of rail)
     • Empresa Metropolitana de Transportes Urbanos - EMTU/SP
       (1.8 Million Passengers / day 5,500 buses)



London, October 16th 2008                                       59
Investment Program: 2007-2010

    Sources of Investement: 2007-2010                 Investment Program: 2007-2010

   Company                Amount         %          Source             Amount          %


                                                  São Paulo            R$ 6.6 B
                          R$ 9.1 B                                                    39.4
       Metro                            55.7       Govern.           (US$ 4.1 B*)
                        (US$ 5.7 B*)
                                                                       R$ 4.9 B
                                                  Financing                           29.5
                                                                     (US$ 3.1 B*)
                          R$ 6.4 B
       CPTM                             36.8                           R$ 4.5 B
                        (US$ 3.9 B*)                   PPP                            27.1
                                                                     (US$ 2.8 B*)
                                                                       R$ 0.2 B
                          R$ 1.2 B                    FDIC                             1.2
       EMTU                              7.5                         (US$ 0.13 B*)
                        (US$ 0.8 B*)
                                                                       R$ 0.5 B
                                                      Other                            2.8
                                                                     (US$ 0.29 B*)
                         R$ 16.7 B
      TOTAL                             100.0                          R$ 16.7 B
                        (US$ 10.4 B*)               TOTAL                            100.0
                                                                     (US$ 10.4 B*)
   * US$ 1.0 = R$ 1.6                           * US$ 1.0 = R$ 1.6




London, October 16th 2008                                             60
Airport expressway and Guarulhos’ train

   Key Projects
   • Airport Expressway and Guarulhos’ Train
   • CPTM – Modernization and Expansion of the System
   • Subway – Expansion of Line 5
   • High-Speed Train: Rio – São Paulo – Campinas




                                                        Airport Expressway         28.1 km
                                                        Guarulhos’s Train - Line 13 20.2 km
                                                        Line 12
                                                        Line 12 + Line 13
                                                        Station




London, October 16th 2008                                         61
Airport expressway and Guarulhos’ train

  Airport Expressway – Line 14

  •    Extension: 28.3 km
  •    Interval between trains: 15 minutes
  •    Journey Time: 20 minutes
  •    Demand: 19.800 pass/day
  Guarulho’s Train – Line 13

  •    Extension 20.8 km (structure of Line 12)
  •    Intervals between trains: 10 minutes
  •    Journey Time: 19 minutes
  •    Demand:100.000 pass/day
  Total estimated investment: US$ 1,1 B*
  Start of operation: 2011
  Concession: 30 years
  *US$ 1.0 = R$ 1,6
  Concessionary:

  • Construction and infrastructure investments, acquisition of equipment, trains
    and operation of the Airport Expressway
  • Implementation infrastructure of Line 13 Jade between Eng° Goulart and
    CECAP for CPTM operation

London, October 16th 2008                                                           62
CPTM SYSTEM
- Modernization and expansion -
   Lines circuit scheme
                                                Line 7 – Investments for
                                                 Headway of 3 minutes




                    Line 8 – Investments for                               Line 12 – Investments for
                     Headway of 3 minutes                                   Headway of 5 minutes




                    Line 9 – Investments for
                    Headway of 3,5 minutes                                     Line 11/Expresso
                                                                              Leste Investments for
                                                                               Headway of 3 min.
                                               Line 10/Expresso ABC
                                                   Investments for
                                                  Headway of 6 min.

             INVESTMENT AND MAINTENANCE ON THE 262 KM LINES AND 83 STATIONS : US$ 2.4 B*

*US$ 1.0 = R$ 1,6


London, October 16th 2008                                                         63
CPTM SYSTEM
- Modernization and expansion -
                                                                                    $ collection
                                                                                       CPTM


      State owned                                                             Tickets
                                                                            Central Unit



                                                        General
                            Operation    Maintenance
                                                        services



                                     SPE
                              Investment & Services
                                                                   $ Counterpast



                                                                                   CPP
      Investments           Rolling        Works        Systems
                            assets
                                  Administrative Concession



London, October 16th 2008                                              64
Metro São Paulo – Line 5 Extension
 Current Operation (since 20/10/2002): Capão Redondo - Largo 13
   • 9.4 km, 6 stations and 8 trains
   • Parking and maintenance yard
   • Transported Passengers: 90,338 pass./work day

 Extension: Largo 13 - Chácara Klabin
   • 11.4 km
   • 11 new stations
   • 26 new trains
   • Maintenance yard
   • Integration with:
   • Line 1 – Blue (Santa Cruz)
   • Line 2 – Green (Chác. Klabin)

 Total Investment
 US$ 2.5 B*




*1US$= R$1,6


London, October 16th 2008                                         65
HIGH-SPEED TRAIN: Rio de Janeiro - São Paulo - Campinas

 CAMPINAS – SÃO PAULO
 109 km

 SÃO PAULO – RIO
 403 km

 AGREEMENT:
 BNDES, GESP and GERJ

 Total Estimated
 Investment:
 US$ 10 B




London, October 16th 2008                  66
                                Ansaldo STS
                                Investor Conference
                                Market > Strategy > Value
                                Americas Region
                                Alan E. Calegari
                                (Ansaldo STS - Union Switch & Signal, CEO )




London, October 16th16th 2008
  London, October 2008                                     67
Ansaldo STS Union Switch & Signal - Snapshot
History & Key References
Union Switch & Signal over 125 years of                   Markets & Locations
experience 4,500 + Patents (70 active patents)
   1881:George Westinghouse forms the Union                                                Kingston,
                                                                                            Ontario
   Switch & Signal Company
                                                                                          Hamilton, NJ
   1985: Introduction of MicroLok®
                                                                                     Norristown, PA
    2002:Shanghai Line 2 (in operation) & Copenhagen                                 Washington, DC
   Driverless Metro (in operation)                                                   Pittsburgh, PA
    2005:Italy Driverless Metro                           Kansas
                                                          City, KS
    2005:Union Pacific Real-Time Traffic Planner
                                                          Batesburg, SC
    2006:Shenyang Line 1 CBTC
    2008:Sao Paulo (CPTM) Modernization
                                                             Jacksonville, FL

                                                                                                    Sao
                       Key Data                                                                    Paulo
                                                                                                                     Seoul
   $M                                                                                                      Beijing

5,000
                                       439                     Headquarters
4,000                    384
                                                               Sales offices
3,000
          308
                   264           241                           Manufacturing sites
        191                    185
2,000            182                                           Engineering Quick
      148                                      Revenues                                                       Shanghai
1,000
                                                               Response Sites
                                               Orders
   0                                           Backlog
        2005        2006         2007


London, October 16th 2008                                                            68
Market Outlook: Signalling
 Market Drivers                                           Market Size & Growth                               CAGR
                                                                                                             '07-'12
• Transit customers government managed                    2,000   $M
                                                                               +5%   1,963
• US railroads privately owned                                                               174 Korea        8%
                                                                                                  &Taiwan
• Security issues are beginning to influence                           1,549
                                                          1,500                117           310 China MT     9%
  decisions                                                                    199
                                                                                             319 South        5%
• Concessionaires also play a key role                                         247                America
                                                          1,000
• Low Price Wins - transit procurement process
• Government financing predominant funding
  source                                                                                     1,160 North      3%
                                                           500                 987                 America
• Passenger growth due to high fuel costs
• After 30 yrs, systems at end-of-design life                0
                                                                        2007          2012


 Technological implications                               Key Success Factors
 • Short term focus on traditional systems                • Ability to influence specifications
                                                          • Strong local approach in all markets
 • MicroLok® platform is well positioned, still plays a   • Ability to localize assembly and engineering to
   key role                                                 reduce costs
 • Long term technology based on CBTC & PTC               • Component manufacture is critical for value
                                                            added
 • Component enhancement for long-lived products          • Capability to design, supply and install
 • Technology transition plan for existing customers        Signalling projects
 • Integrated security solutions                          • Ability to arrange financing



London, October 16th 2008                                                            69
Market Outlook: Transport Systems

Market Drivers                                   Future Key Projects
  • Speed to Revenue Service                     •   Dulles Airport Link, USA             Transit
                                                 •   Ui-Shinseol, Korea                   Transit
  • Integrated systems solution
                                                 •   Taichung, Taiwan                     Transit
  • Negotiated procurement
                                                 •   Circular Line, Taiwan                Transit
  • Customers require long-term value            •   Lima, Peru                           Transit
  • Financing alternatives requested             •   Honolulu, USA                        Transit
                                                 •   Sao Paulo – Rio, Brazil          High Speed
                                                 •   Los Angeles – Las Vegas, USA     High Speed


Technological implications                       Key Success Factors
  • Systems Integration is key                   • Strong Customer interaction - define requirements
  • Current AF-900® technology will be the       • Early business development activities
    standard in the near term                    • Turnkey management capability
  • Future systems will employ a driverless      • Consortium development to suit each project
    system based on CBTC technology              • Strong relationships needed with Civil Partners,
  • Security solutions will require integrated     Consultants and Vehicle Suppliers
    communications technologies                  • Capability to perform long term maintenance



London, October 16th 2008                                                     70
Ansaldo STS Americas Region: A strong positioning in the market

 US&S Current positioning                            US&S Future Positioning and
                                                     Product Offerings
 • Market leader in switch machines
 • MicroLok® is the industry standard                • Components growth via new product offerings
 • Leadership position in Dispatch Systems           • Universal Track Circuit for system modernization
 • First to market with Optimized Traffic Planning   • New vehicle control product platform
   (OTP) system                                      • CBTC development – driverless platform
 • First Vital PTC deployment nearing completion     • Optimized Traffic Planner (OTP) and Common
 • Initial PTC & CBTC projects under development       Operational Picture (COP)
 • Quick response Engineering Services team          • Solutions targeting Homeland Security
                                                       opportunities

  US&S key references                                US&S strengths to Leverage
 • Union Pacific, CSX, Canadian National             • Quality
 • Burlington Northern – Santa Fe                    • Reliability
 • New York City, Wash. DC, Dallas, Los Angeles,     • Engineering
   Philadelphia, Pittsburgh
                                                     • Industry/Application know-how
 • Copenhagen, Brescia, Milan, Rome, Thessaloniki
                                                     • Service & Support
 • Shanghai, Binhai, Shenyang,
                                                     • 125 years of Brand Recognition
 • Seoul, Taipei, Sao Paulo



London, October 16th 2008                                                   71
                                Q & A Session




London, October 16th16th 2008
  London, October 2008                          72
                                Ansaldo STS
                                Investor Conference
                                Market > Strategy > Value
                                Asia Pacific Region - Railway client's view
                                Stephen Cantwell
                                (Queensland Rail Ltd., Group Executive General
                                Manager Freight)




London, October 16th16th 2008
  London, October 2008                                     73
Today, QR is one of Australia’s leading transport and
logistics companies
•   Australia’s largest freight business by volume (238 mtpa)
•   Over $3.2 billion in revenue p.a.
•   $10 billion asset base
•   Nearly 15,000 employees across five Australian states
•   Doubled coal tonnages hauled in the last 10 years
•   National intermodal service from Cairns to Perth
•   Owns and manages more than 10,000 km of track
•   One of Australia’s largest rail infrastructure and rolling stock construction and maintenance
    capabilities

We are now on a rapid journey to build a new QR
•    Safety as the highest priority
•    Targeted national expansion strategy
•    Clear mandate from our owners: capability, competitiveness, commerciality and value
•    A new organisational and company structure aligned to our markets
•    New management team combining strong commercial experience with QR operational
     excellence and expertise
•    $8 billion investment in rollingstock, facilities, and infrastructure for the future over five years


London, October 16th 2008                                                       74
We are a national transport and logistics business




London, October 16th 2008                     75
We have a strong platform for growth

• A national footprint with assets,         Domestic demand and imports are
  terminals and access                      driving the national freight market
• Industry-renowned operational             Total Domestic Freight Task (Excluding Air)
  expertise and capability                                         Billion tonne - Kilometers
                                      700
• Shareholder, board, and
                                                                                                                    Sea
  management commitment now           600
                                                                                                             19%
  enhanced by commercial
                                      500                                                                           Rail
  management expertise                                                                                              (Private)
                                                                                                             15%
                                                                                                                    Rail
• Business strategy to improve        400

  profitability and long-term                                                                                22%
                                      300                                 23%
  viability                                                                                                         Road
                                                                          14%                                45%
• Major investment to improve         200

                                                                          24%
  capability and national reach       100
                                                                          39%
                                       0
                                            1980 1983 1986 1989 1992 1995 1998 2001 2004 2007 2010 2013 2016 2019




London, October 16th 2008                                                                76
Market growth is a significant opportunity for QR



           • Australia’s commodity export earnings are set to increase by 30%
             to a record $189 billion in 2008/09
           • Iron ore and coal are among Australia’s largest export
             commodities
           • Australia’s general freight task to double between 2000 and 2020
           • Queensland and its south-east corner continue outstrip the rest of
             Australia in population growth
           • Safety and environmental considerations will continue to change
             policy and perception and shift traffic task from road to rail




London, October 16th 2008                                        77
Business Structure

                            Freight
                            Freight and logistics services – transport, warehousing,
                            shipping, port operations and distribution


                            Passenger
                            South-east Queensland urban network and award-winning
                            long-distance travel and tourist trains


                            Network
                            Maintaining and managing access and operations of more than
                            10,000 km track and infrastructure network


                            Services
                            Heavy engineering, rollingstock maintenance, track
                            construction and specialist track maintenance services


London, October 16th 2008                                                78
Four complementary freight businesses


                        Coal



                        Bulk
                                               QR Freight

                        Intermodal



                        Retail and Logistics



London, October 16th 2008                              79
Building a new              QR
Passenger :
Supporting public transport in SEQ


QR provides passenger suburban, long
distance and tourist rail services throughout
Queensland and consistently maintains one
of the world’s safest and most reliable
passenger rail operations.                      QR Passenger
58.8 million passenger journeys on 260,000
services in 2006/07
Urban peak patronage increased by 9% in
2006/07
$2.5 billion planned investment in next five
years



London, October 16th 2008                             80
Building a new              QR
Network:
Operating Australia’s largest rail network


QR maintains and manages access and
operations of 10,000 km of track, facilities
and infrastructure assets in Queensland

• Manages third-party access under
  regulatory regime                            QR Network
• Asset base of almost $5 billion
• Established first major rail multi-user
  terminal in 2007 with P&O, and processed
  more than 280,000 twenty-foot equivalent
  units up from 40,000 in the previous year
• Influencing national rail policy and
  environmental debate

London, October 16th 2008                             81
Building a new              QR
Services:
Operational capability


Expert rail construction, maintenance and
manufacturing expertise to provide a safe,
high-quality network and rolling stock to
QR’s businesses.                               QR Services

• Continuing to reduce maintenance costs and
  rolling stock overhaul cycle times
• Growth in external contracts
• Investing in research and development and
  future capability



London, October 16th 2008                              82
Capital Plan for next 5 years


                                   QR Capital Expenditure (2004-2012f)

                    2,000

                    1,800

                    1,600

                    1,400

                    1,200
                                                                                                Capex

                    1,000                                                                       Capex
                                                                                                Forecast
                      800

                      600

                      400

                      200
                            2004   2005   2006   2007   2008f   2009f   2010f   2011f   2012f




London, October 16th 2008                                                                          83
2006/07 results
                                                       Revenue by product
                                                      (6 months to 31/12/07)
• Improved margins and returns
• Net profit after tax increased
                                                              Network Access
  123% to $183.2 million
• Revenue up 27% to $3.25
  billion                          Travel Train

• A record $1.5 billion capital
  investment program
                                     Citytrain                                 Coal
  supported by strong operating
  cash flows
                                   Regional Freight
• A record in Australian freight
                                                 Intermodal
  haulage - 238 m tonnes hauled                                  Bulk
• On track for significantly
  improved performance in 07/08



London, October 16th 2008                                        84
                                Ansaldo STS
                                Investor Conference
                                Market > Strategy > Value
                                Asia Pacific Region
                                Lyle Jackson
                                (Ansaldo STS Australia, CEO)




London, October 16th16th 2008
  London, October 2008                                     85
 Ansaldo STS Asia Pacific in a snapshot
  Markets & Locations                   Headquarters
                                                              History & Key References
                                        Sales offices         Regional History:
                                        Manufacturing sites   • 1995: Australian company established
                                        Engineering Quick     • 1996: India company established (startup).
                                        Response Sites
                                                              • 2000: Malaysia company established (startup).
                                                              • 2007: Bangladesh branch established.
                                                              • 2008: Botswana company established (startup).
                                                              • 2008: South Africa company established (startup).

                                                              Key References:
                                                              • 1995: Australia - Rio Tinto ICSS Project
                                                              • 1997: Australia – Queensland Rail Tilt Train Project
                    Key Data                                  • 1998 - 2008: Australia–Rio Tinto ICSS Capacity Exp
$AUD M                                                        • 2001: Malaysia – Rawang to Ipoh Project.
3,000                                                         • 2003: Australia – PTA Train Control & Southern Suburbs
                  241 242 235 229 239                         • 2005: Australia – ARTC Hunter Valley & North Coast
2,000
                                                                Alliance
        145 138   156                                         • 2005: India – Chennai & Agra ETCS Projects: first
                                               Revenues
                                                                ERTMS project in India
1,000   78                                     Orders
                                                              • 2006: India – Ghaziabad to Kanpur Project
                                               Backlog        • 2008: Malaysia – Ipoh – Padang Besar Joint Venture
   0
         2005       2006      2007                            • 2008: Australia – Queensland Rail Synergy Alliance



 London, October 16th 2008                                                                86
Market Outlook: Signalling

  Market Drivers                                          Market Size & Growth                                 CAGR
                                                                                                               '07-'12
                                                          1,500   $AUD M
   • Freight - driven by unprecedented market
     price & demand for Iron Ore & Coal.                                   +4% CAGR   1,168
                                                                                                  South
   • Urban Passengers – driven by lack of                             949                     167 Africa        5%
                                                          1,000
     CAPEX renewals & upgrades over the past                                 131
                                                                                              383 India         6%
     decades & demand for increased safety                                   286
     (Automatic Train Protection).                         500
                                                                                                 South East
   • Metro Passengers – driven by community                                                   618 Asia          3%
                                                                             532
     obligation in the high population cities of Asia.                                           & Australia
                                                             0
                                                                      2007            2012



  Technological implications                               Key Success Factors
 Application of Existing Technologies                       • Ansaldo STS Group Technology
 • Freight: (Centralized Traffic Control; Interlocking)     • Regional Domain Knowledge
 • Urban Passenger: (Centralized Traffic Control;           • Relationships
   Interlocking; Automatic Train Protection)                • Capacity & Capability
 • Metro: (Integrated Automatic Train Operation &             • Project Management, Systems Integration,
   Supervision System)                                        Engineering
                                                            • Localization



London, October 16th 2008                                                                    87
Market Outlook: Transport Systems

  Market Drivers                                        Future Key Projects
  • Freight - driven by unprecedented market            • Australia - Sydney NW Metro, Gold Coast Light
    price & demand for Iron Ore & Coal.                   Rail, Rio Tinto ATO Project.
  • Urban Passengers – driven by lack of                • New Zealand – Auckland Rail Electrification
    CAPEX renewals & upgrades over the past             • Malaysia – Penang Monorail Project
    decades & demand for increased safety               • Thailand – Bangkok Metro Lines
    (Automatic Train Protection).                       • India – Kolkata, Bangalore & Hyderabad Metro’s
  • Metro Passengers – driven by community              • Botswana – CIC Rail Link
    obligation in the high population cities of Asia.   • South Africa – Capetown Metro
                                                        • South Africa – Moloto Rail Development Corridor

  Technological implications                            Key Success Factors
  Supply & Integration of                               • Ansaldo STS Group Technology
     • Signalling, Communications, Automation &         • Regional Domain Knowledge
       Information, Power and Homeland Security         • Relationships
       Technologies for rail & mass transit             • Capacity & Capability
       applications                                       • Project Management, Systems Integration,
  Turnkey Systems for Automatic Train                     Engineering.
  Operation for Freight Operations                      • Localization



London, October 16th 2008                                                      88
Ansaldo STS SE Europe Region: A strong positioning in the market
               Current positioning                                             Key strengths
Signalling
• Rail: dominant presence in the mature markets             •Local and Group references
  (Australia, Malaysia and India) and emerging in           •Regional domain knowledge and Relationships
  the developing markets (Thailand/South Africa)            •Regional localization providing a lower cost base.
• Metro: emerging presence in the fast developing           •Largest Signalling & Systems human capital base in
                                                             the region and creating additional Capacity &
  markets of India and Thailand
                                                             Capability through establishment of the Ansaldo
Transport Systems
                                                             Academy
• brand is well recognized/positioned and group
  references well regarded



                                               Strategic moves
• Continue to grow Capacity & Capability through strong commitment to professional development (Ansaldo
  Academy), career path development, strategic recruitment and retention programmers
• Increase transfer of technology from other Ansaldo STS group companies, with emphasis on the Metro and
  Systems sectors, to ensure strong cost competitive local delivery capability and support is available which will be
  a competitive differentiator
• Maintain positioning in Australia, Malaysia and India will leveraging embedded technology base and relationships.
• Increase penetration in Metro & Systems by localization/transferring of technology
• Exploit Ansaldo STS brand in other regional countries




London, October 16th 2008                                                               89
                                Q & A Session




London, October 16th16th 2008
  London, October 2008                          90
                                Ansaldo STS
                                Investor Conference
                                Market > Strategy > Value
                                Ansaldo STS Technology and
                                Competitive advantage
                                E. Viollet
                                (Ansaldo STS, Senior V.P. Business Development)




London, October 16th16th 2008
  London, October 2008                                     91
Ansaldo STS has leading technology for the
most attractive market segments
             HIGH
                                                                                    Core Segments
                                                                                                          Computer Based
                                                       TC and Driverless Metro                                 Interlocking (CBI)
                                                         Turnkey Solutions



                                                                                                          ERTMS L1&2

                                                    Emerging Segments                MT CBTC
    ASTS                                                                             (No Driverless)              Gaps to be filled
    Competitive
    Positioning
                                                                                                                Components
                                                                ARTC/PTC
                                                           Freight, regional, low
                                                                                            MT CBTC
                                                               density traffic,            (Driverless)
                                                             industrial & mining
                                                          lines (incl. ERTMS L3)
                       LOW

                                    LOW                                                                                      HIGH
                                                                      Market Attractiveness
      Main line & HSL                   Low density & freight      Components          Mass transit
Source: Interviews, market research, BCG analysis


London, October 16th 2008                                                                                  92
Pressure on margins and competitors already seeking
efficiency
- A “paradigm shift”: delivery being industrialized -

     Price under pressure, competitors                  ...A paradigm shift is needed:
         are working on efficiency...                    delivery to be industrialized

                                                    Service offering moving towards a standard
    Market will experience increasing competition
                                                    portfolio
    despite very high entry barriers
                                                    ...leveraging global delivery capabilities for
    Products being standardized and                 cross-customer execution
    substitution being scouted...
                                                    Paradigm shift built along key levers:
    ... while clients optimizing investments        Consistent services, process and tools
                                                    standardization, automation and excellence,
    Competitors aware of market signal and          Consolidated R&D
    seeking efficiency
                                                    Harmonized organizations, Strong governance,
                                                    Active cost management and controlling
                                                    enabling the shift




London, October 16th 2008                                                   93
Increasing product modularity is a key success factor
to improve margins and achieve a global reach
 Product Application        Specific Line Configuration
    Vital Mechanism         Product & Country Configuration

     Vital Hardware
                                                                       Non core
                                                                       • delegated to
                                                                         regional
                                                                         engineering
                                                 Core                    (e.g. India)
                                                 • strictly in-house   • or “outsourced”
                                                 • standardized          to partners
                                                   globally              (e.g. China)




London, October 16th 2008                                       94
Ansaldo STS will adapt its Product Portfolio strategy


     Develop families of solutions that    Develop products characterized by
     address as much as possible the       modularity, standardization and
     global market requirements            global usability


         • Mass Transit, including Metro     • Basic vital platforms usable for all
           and LRT/Tramways                    wayside and onboard Signalling
         • Railways                            systems

             • From High Speed Lines to      • Highly cost-effective solutions,
               Low Density Traffic Lines       with available add-on features

             • Freight and Passengers        • Standard suite of configuration
               applications                    tools, usable either internally or
                                               by local subcontractors / partners




London, October 16th 2008                                       95
Product Portfolio Strategy
- Rationalization Process -
    Starting position and constrains                                   Target
• Product portfolios managed by Op. Company            • Unique and complete product portfolio
  with overlaps gaps                                   • Standard products and technological
• Products designed for local markets and/or             platforms as common base for
  based on specific technology (partially due to         developing/customizing products for
                                                         local market
  Customers’ specific requirements and local markets
                                                       • Shared development methodology / tools
  specifications, eg. local Signalling rules,
                                                       • IT Knowledge Management at group level
  certification process...)                            • Clear and unique identified portfolio
• Different methodologies and tools for product          strategy managed by products manager
  lifecycle management (design, engineering,             at group level
  certification, installation, maintenance)            • Manufacturing sites identified at group
• Company partially independent in product               level (transfer price and company fees
  development (limited common R&D plans, ...)            defined)
• Manufacturing strategy defined in each               • Systems capabilities present in all
  Operating Company                                      regions/ companies with an initial input
                                                         from Italian region
• System capabilities concentrated in Italy (ATSF)




London, October 16th 2008                                                96
A product development roadmap to maintain
technology leadership in core and new markets
                                                     Key milestones
  Objective                 Segment                  2008    2009      2010     2011       2012        beyond

                                                             ERTMS                         ERTMS        ERTMS
  Develop                    Main line & HSL
                                                             L2 v2.3                       L2 v2.4      L2 v3.0
  technologies
  & applications
                             Low Density & Freight            PTC      ARTC                             ERTMS
                                                                                                       L3 ; Galileo

                                                             CBTC                CBTC       CBTC
                             Mass Transit
                                                                               driverless integrated
                                                                                          w/ new CBI


                             Main line & HSL                ERTMS L1 RBC/CBI RBC/CBI
  Adapt technologies                                          India  Germany Scandinavia
  and solutions to
  specific markets           Low Density & Freight          Southern
                                                             Africa

                             Mass Transit                    CBTC      CBTC
                                                             France    China




London, October 16th 2008                                                           97
                                Ansaldo STS
                                Investor Conference
                                Market > Strategy > Value
                                Value Creation
                                Jean Paul Giani
                                (Ansaldo STS, CFO)




London, October 16th16th 2008
  London, October 2008                               98
Strict Project and Risk management throughout the
project lifecycle

                                       Contract Award


                                    Bidding
       Business        Pre-                                                                   Testing &   After
                                   Cost Estim.         Design    Production   Installation
       Develop't       Qual.                                                                  Commiss.    Sales
                                   Tech Specs



    Signalling              3 - 12 months                             3 - 4 years

    Transport           12 - 24 months           3 (tramways) - 7 (metro) - 10 years (high speed lines)
    Systems


                                                             Risk Management

                                                                     Project Management


                                                  • Periodical update of cost to complete
                                                    and risk assessment
                                                  • Financial and contractual requirement
                                                  • Project milestones
Source: ASTS


London, October 16th 2008                                                                    99
     An example of value created with milestones management
     - Negative Working Capital achieved with early invoicing milestones -

         Transport Systems,                                           Transport Systems,                           Invoicing
         Driverless Metro (10 km)                                     Tramway (10 km)
                                                                                                                   Revenues
% lifetime value                                                      % lifetime value
                                                                                                                   Cash Flow
           60 %                                                                  60 %


           50%                                                                   50%


           40%                                                                   40%


           30%                                                                   30%


           20%                                                                   20%


           10%                                                                   10%


            0%           1                                                        0%
                                     2
                                         3                                       -10%      1
           -10%                                4
                                                     5                                               2
                                                                                    (order intake)
           -20%                                           6
                                                                                                           3
                                                                7   Year
                                                                                                               4
           -30%                                                                                                        Year

           -40%     (order intake)

                                         To face the reduction trend of advance payment

     Source: ASTS


     London, October 16th 2008                                                                       100
A key priority of recent years: Changing the mindset of the
team in alignment with the CEO's agenda
   The CFO organization shifted from...   ... to ..

   'Policeman'/controller                 Partner/advocate for value creation

                    Reporting             Analyst/catalyst

   Provide infrastructure                 Aim to influence business performance

          Finance focused                 Key levers across multiple functions

        Internally focused                Internally and externally balanced

      Historically focused                Future oriented

                      Reactive            Proactive



London, October 16th 2008                                    101
Resources focused on 4 key activities for value creation
and core process management
                                                                                       Shape direction
   Drive performance                                                                    • Support CEO aspirations, vision,
                                                                                          goals
    •   Set targets                                                                     • Align business plans with the
    •   Challenge/stretch BUs                                                             shareholder aspirations
    •   Monitor/guide planning                  Drive                 Shape
                                            performance              direction          • Establish the basis for value
    •   Processes and policies to                                                         creation
        fill gaps and enhance                                                           • Identify value gap
        performance                                       Role of                       • Set and assess integrated
                                              Build
                                                          Finance                         financial strategies and plans
                                                                         Drive
                                            platforms
                                                                      resource
                                           for growth
                                                                      allocation
   Drive practices capabilities                                                           Drive financial resource
                                                                                          allocation
   • Exploit synergies
                                                Traditional Finance &
   • Leverage inter- and intra-company            Accounting Roles                          • Resource allocation in terms
     activities into the business                                                             of strategic and value fit
   • Build platforms for growth by                                                          • M&A, divestitures and
     leveraging core linkages            • Accounting                                         alliances
   • Share and develop talent, ideas     • Statutory and management reporting               • Investor strategy &
     and best practices                  • Compliance, audit, tax and administration          communication
                                         • Optimize balance sheet, raise capital
                                         • Finance Technology infrastructure




London, October 16th 2008                                                                 102
Setting the four imperatives for aligning decisions with value
creation across all the organization…

                            •   Shift from volume, growth, share... to value
  Explicit top-down         •   Set clearly measurable and specific value creation goals
    commitment              •   Get the entire management team (and Board) aligned
                            •   Turn managers into owners

                            • All managers, and go deep into the overall work force
   Train intensively        • Cascade through “train the trainers” approach
                            • Promote and reward skill development and a bias to action


        Economic            • Simplify and focus the measures suite
      transparency          • Align value measurement units with decision making units


                            •   Integrate budgets with strategic plans
 Link tightly across        •   Avoid complexity - drive for simple, focused, consistent
     processes              •   Identify value drivers, communicate/train, and link to incentives
                            •   Allocate resources to strategies, not just projects


London, October 16th 2008                                                103
…and establishing a mutually reinforcing accountability framework
                                                   Target Setting
                                             • Set in line with value
      Rewards And Incentives                                               Planning and Decision Making
                                               creation aspirations
   • Reward outcomes, not                    • Reconciliation of targets   • Plan to fill the future value gap
     process                                   up and down the             • Adjustments to plan allowed at
   • Performance-based contracts               hierarchy                     appropriate levels
     for middle management                                                 • Plan for financial, activity and
                                                                             service outcomes
                                              ASTS Accountability
     Performance Management
                                                 Framework
                                                                                Resource Allocation
    • Performance evaluation and                                            • People, IT and strategic
      review forums                                                           resources allocated to best
                                             Reporting and Monitoring
    • Transparency                                                            value-creation opportunities
    • Performance coaching                    • Link tightly to plans &     • Use transparent, objective,
                                                budgets                       value-driven process
                                              • Standardized hierarchy
                                                covering financial and
                                                operational measures


                               We invested in top class Information Systems on a
                              world wide basis to allow close cost and risk control

  London, October 16th 2008                                                     104
Superior Value Creation achieved by aligning strategies,
priorities and capabilities

                                            Risk               Capital
                                                              structure


                            Investor        Revenue         Margin
                            strategy         growth          (%)          Dividend
                                                                           policy
                                                    Value
                                                   Creation

                               P/E                 Invested
                              multiple              Capital             Share
                                                                     repurchase
                                                Portfolio
                                                strategy




                                           Value Based Management
                                       (metrics, processes & capabilities)




London, October 16th 2008                                                         105
                                Ansaldo STS
                                Investor Conference
                                Market > Strategy > Value
                                Message to the Financial Community
                                Alessandro Pansa
                                (Ansaldo STS, Chairman)




London, October 16th16th 2008
  London, October 2008                                  106
Ansaldo STS: Going ahead towards the future


            Strong organic growth: continue to focus on Signalling and
       1    Transportation Systems leveraging client positioning and
            technological leadership

       2
             External growth in core business: small / medium sized
             acquisitions

       3     Margin improvement and growing dividend yield


       4     Finmeccanica commitment to support Ansaldo STS growth
             in value creating opportunities




London, October 16th 2008                                 107
                                Ansaldo STS
                                Investor Conference
                                Market > Strategy > Value
                                Market trends and Ansaldo STS
                                Strategic Plan
                                Sergio De Luca
                                (Ansaldo STS, CEO)




London, October 16th16th 2008
  London, October 2008                                  108
                                Macrodrivers &
                                Competitive Position




London, October 16th16th 2008
  London, October 2008                         109
Ansaldo STS: one of the world's leading players in
Signalling and Transport Systems
                           Total Revenues                                                     Revenues by segment, 2007, M€
               (Signalling + Transport Systems)
                                                                           1,600
       Siemens                                                                                             Signalling    Turnkey
                                                                               1,711            Company
                                                                                 1,820                        €M           €M
                                                           1,010
         Alstom                                           974                                 Siemens        ~1,200       ~620
                                                           1,000

                                                    843                                       Alstom             ~700     ~300
     ASTS                                             923
                                                       973
                                                                                              ASTS                750      241
                                           600
  Bombardier                                     764
                                                  780                                         Bombardier         ~400     ~380
                                             680
         Thales                              700
                                              700
                                                                                              Thales             ~700       -

                                           615
      Invensys                               642                      2005                    Invensys           ~650       -
                                            650                       2006
                                          560                         2007                    GE                 ~ 600      -
                                            600
               GE
                                           600
                                                                                         M€
                    0               500             1,000          1,500         2,500

Source: interview, company financial data, BCG estimate


London, October 16th 2008                                                                                  110
Clear Megatrends are supporting market growth
                 Megatrends                                                   Impacts
                        Growing population,             Increased demand for urban and suburban mass transit
                        increasing urbanization and     systems
                        traffic congestion
                        Growing emphasis on safety,     Investments in Signalling, the most effective way to
                        reliability and efficiency      improve safety and line capacity

                        Growing environmental           Increasing shift towards rail transportation: cleaner and
                        concerns and oil prices         cheaper than other transportation modes

                        Competitiveness
                                                        Demand for High Speed Lines, especially in Europe
                        of HSL vs. airways

                        GDP increase in                 Need for new rail infrastructure to support economic
                        emerging markets                growth

                        Increase of global commodity    Demand for rail freight systems for bulk commodities
                        trade                           (US, China, Russia, India, Australia..)

                                                        Deployment of ERTMS standard not only in Europe but
                        Interoperability requirements
                                                        also worldwide (e.g. China)


London, October 16th 2008                                                         111
Ansaldo STS will outperform market growth
                  Key Competitive Advantages                                      Opportunities
                • Wide product portfolio, covering most              • Increase synergies in global product portfolio,
                  customers’ needs and market segments                 with platform approach
                      • Technological leadership in key              • Export world-class technology in emerging
                        technologies (e.g. ERTMS L2, CBI)              markets (e.g. ERTMS in China)
                      • Ability to customize products according to   • Expand customer base beyond traditional
 Signalling             country and customers' specificities           incumbent railway operators (e.g. freight)

                • Long-lasting and trusted relationships with        • Exploit existing relationships and synergies to
                  major railways infrastructure companies,             enter new markets (e.g. Russia and Saudi
                  large installed base                                 Arabia)

                • Proven capabilities in turnkey mass transit        • Leverage know-how and references to access
                  systems, with world-class references (e.g.           future turnkey mass transit projects in Europe
                  Copenhagen Metro)                                    and emerging markets
 Transport
 Systems        • High flexibility in design, no legacy from         • Leverage partnerships with independent
                  proprietary rolling stock                            rolling stock producers

                • Deep know-how and focus on Signalling and          • Leverage high credibility in the market to
                  Transport Systems                                    acquire new customers and penetrate new
                                                                       markets
   Group        • Good track record of financial performance,        • Use cash to bridge specific gaps (M&A to
                  high backlog with strong balance sheet and           access new clients) and finance PPP contracts
                  cash


London, October 16th 2008                                                              112
                                Market > Strategy:
                                Signalling BU




London, October 16th16th 2008
  London, October 2008                         113
                                                                                                                                                 Signalling
Signalling market valued ~6.2 B€ and expected
to grow with CAGR of 5-6% in the period 2007-12

    Growth by region                                                                         Growth by segment

        M€                                                                            Cagr    M€                                                      Cagr
     8,000                                      7,9181                                                       +5-6%    7,9181
                                                                                             8,000
                           + 5-6%                          408       Africa & ME      5-6%
                                                                                                                               1,598   Freight        4-5%
                                                           1,173 Eastern EU           7-8%
                      6,230                                                                          6,230
     6,000                        320                      835       N. America              6,000
                                                                                      3-4%                   1,252
                                  840                      230       S. America                                                1,674   Mass           6-7%
                                                                                      5-7%                                             transit
                                  710
                                  180                                                                        1,251
     4,000                                                 2,222 Asia Pacific         6-8%   4,000

                                  1,640

                                                                                                                               4,646   Passengers 3-4%
     2,000                                                                                   2,000
                                                                                                             3,727
                                                           3,051 Western EU 4-5%
                                  2,540


          0                                                                                     0
                       2007                     2012                                                  2007             2012




                      HIGHER GROWTH RATE EXPECTED IN THE EMERGING COUNTRIES
                       (Asia Pacific, East Europe) AND IN THE MASS TRANSIT SEGMENT
1 Estimates based on low growth scenario of 5%
Source: SCI world wide market for Railway technology 2006, Interviews, BCG analysis


London, October 16th 2008                                                                                            114
                                                                                                                   Signalling

Key strategic goals for Ansaldo STS going forward

                                                    ASTS Status quo                          Key implications
1
                                 • ASTS presence strong in key               • Build strong presence in key markets and
      Selective                    traditional markets...                      selectively extend footprint outside
       global                    • ... but going global is essential to
       market                      sustain growth and exploit the
       growth                      opportunities in emerging markets


2                                • Product portfolio currently built around • Develop portfolio of standardized
    Standardized                   specific customer needs                    solutions including standard service levels
      product                    • Some products gaps to be filled, e.g.    • Perform key R&D investments to fill gaps,
        offer                      CBTC, components, APT/PTC                  make/buy strategy for components,
                                   dedicated solutions for freight...         optimize hardware and platform costs


3                                • Individual, customer specific deliveries • Global capabilities for cross-customer
                                 • Many delivery locations with sub           delivery
                                   critical size                               – Based on standard delivery elements and
    Industrialized
                                 • Operations performed not along                processes
       delivery
                                   standards with limited cross site           – Being delivered out of large scale factories
                                   activities                                    maximizing internal utilization

Source: Interviews, market research, BCG analysis


London, October 16th 2008                                                                       115
                                Market > Strategy:
                                Transport Systems BU




London, October 16th16th 2008
  London, October 2008                        116
Turnkey market is around 3- 4 b€ per year growing at 10% CAGR
- Major projects in HSL, investments in Mass Transit in WE (Auto. Metro) and Asiapac -
                                                                                                                                                                            Transport
                                                                                                                                                                            Systems

                                      Value1 of turnkey projects tendering, % of segment
                                                               2%
                                                                                                                  16%          12%        15%
         Argentina, Brazil                                    22%                                                              3%                                           M€           % tot
                                                                                                                                           4%
                                                                                       44%
                                                                                                                  12%
                                                               2%                                                              15%               Asiapac                 500 - 700      15 - 20%
                                                                                                                                          19%
                                                                                                                               9%
                                                                                                                  15%                            South America           450 - 650      15 - 20%
                                                              29%                                                                          4%
   Saudi Arabia, Algeria
                                                                                                                  5%
                                                                                       19%                                                       North America           150 - 200      5 - 10%
                                                               2%                                                 8%
                                                                                                                                                 Africa / Middle East    450 - 650      15 - 20%
                                                                                        9%
                                                                                                                                                 Eastern Europe          200 - 300      5 - 10%
                                                                                       12%                                     62%
                                                                                                                                          58%
          France, UK, Italy                                                                                                                      Western Europe         1 250 - 1 700   35 - 45%
                                                              44%                                                 43%
                                                                                       16%

                                              HSL                    Conventional                   Automated         LRT /         Other MT
                                                                        Metro                         Metro         Tramway         Systems
                          M€              950 - 1 300                   650 - 850                   950 - 1 300        300 - 400     200 - 300                    3 100 - 4 200          100%
                          % tot            25 - 35%                     20 - 25%                     25 - 35%           5 - 10%       5 - 10%


                                                   ~60% OF MARKET OUTSIDE WESTERN EUROPE
Note: Market calculated on 4 years rolling average
1. Including systems (Signalling, tlc, power supply, SCADA...); not including civil works and rolling stock
Source: UIC, ERRAC, Interfleet, World Bank, interviews to ASTS, BCG analyses and estimates


London, October 16th 2008                                                                                                                        117
Transport Systems are strategic for Ansaldo STS
- An attractive business standalone and a gatekeeper of Signalling -
                                                                                                                                                                                    Transport
                                                                                                                          +7% CAGR                   12.0 – 13.9                    Systems




                                                                                                                                                                   4.0 – 5.2

                                                                                                                       +10% CAGR
                                                                                                                                                                    1
                                                             b€                  8,8 – 9,5                                                                              1.0 - 1.2


       Transport                 Turnkey projects 3 - 4                                               2.4 – 3.4           +8% CAGR
                                                                                                                                                                    3.2 – 3.7
       Systems
                                                                                                  1
                                                                                                  0.7 – 0.6
                                New development
                                                3
       Signalling                   and upgrade                                                   2.4 – 2.2
                                                                                                                          +3% CAGR
       Market
                                      Renewal and 3.3                                                                                                                3.8
                                                                                                  3.3
                                      maintenance

                                                                                   2007                                                                  2012
       Signalling through turkey projects
                 / Total Signalling market                                        10-15%                                                              15-20%




Note: Figures calculated on 4 years rolling average
1. Signalling portion of the orders assumed to be ~20% of the total perimeter included in the turnkey market, i.e. all E&M excluding rolling stock
Source: SCI, Interviews, BCG analyses and estimates


London, October 16th 2008                                                                                                                                118
                                                                                                                            Transport
The key to win tenders in Transportation Systems                                                                            Systems




Key success factor                                                              Description
                                                                                                                           Transprt
                                                                                                                           Systems
1
                                                  • Reliability of execution strongly required on high public impacting projects
           References                                • reference base key to prove capability of execution on time and on budget



2                                                 • Local political influence crucial to orchestrate the deal
               Local                                  • deals requires local presence in each key market
             Presence

3                                                 • Government financing pressure transferred to suppliers
                                                     • financial skills and liquidity required to commit to the execution (equity stake)
          Financing                                  • partnership with financial community required to fund the whole effort
          Capabilities                               • competitors are bigger in size and have better staffed financing teams

4
                                                  • Project management skills key to execute the project...
             Efficient                                 • proven approaches and best practices to be rolled out across projects and
            Execution                                    location
                                                  • ... as well as global processes and tools to share know-how efficiently
                                                       • a globally steered and standardized approach should be rolled out across
                                                         regions
Source: Interviews with ASTS management, BCG experience


London, October 16th 2008                                                                               119
ASTS business model in transportation System strong

                                                                                                                                                                                                    Transport
                                                                                                                                                                                                    Systems
       Core competence                                                            Rail technology
                                                                                    Specialist
                                                                                                                 PM
                      Engineering                                                                                 System                             Project Mgmt
                        Expert                                                                                   Engineering
                                                                                                                                                      champion
                                               PM                                                                                                                                 PM




                                                                                                                                   Other Subsys
                                                                                                 Rolling stock
                                                                                   Civil works
                                                System                                                                                                                             System




                                                                                                                      Signalling
                                               Engineering                                                                                                                        Engineering




                                                                                                                                                                                                     Other Subsys
                                                                 Other Subsys




                                                                                                                                                                  Rolling stock
                               Rolling stock




                                                                                                                                                    Civil works
                 Civil works




                                                                                                                                                                                       Signalling
                                                    Signalling




                                                                                Technology Full liner
                                                                                                                 PM

                  Parsons                           The Washington                                                System
                                                                                                                 Engineering
                  Brinkerhoff                       Group
                   A pool of experts that                                                                                                          Potentially also clients
                   could enrich ASTS                                                                                                               for ASTS in some markets
                                                                                                                                   Other Subsys
                                                                                                 Rolling stock




                   capabilities
                                                                                   Civil works




                                                                                                                      Signalling




Source: Interviews BCG


London, October 16th 2008                                                                                                                         120
                                                                                                               Transport
Key strategic goals for Ansaldo STS going forward                                                              Systems


                                                    ASTS Status quo                      Key implications
1
                                • ASTS business model in transportation • Rolling stocks not required in-house
    Rolling stock                 systems successful as a pure player   • Leverage in case key Ansaldo Breda
    in house not                  operator                                partnerships for High speed lines
      strategic                                                         • Leverage local rolling stock player for
                                                                          Mass transit projects


2
                                • ASTS is a global player, but strong    • Roll out global capabilities with central
       Further                    market growth requires central           coordination and standardization
      Globalize                   coordination and standardization to    • Standardization of design tools
     operations
                                  protect margins                          (engineering) and delivery processes (risk
                                                                           management, project management)
                                                                           required
3

    Strengthen                  • Local lobbying power required to win   • Local influence can be obtained leveraging
     lobbying                     deals                                    local civil contractors’ lobbying power
    power and
     financial                  • Global project finance capabilities    • Globally structured finance group required
    capabilities                  required to structure global deals       as well as a financing partners
                                                                         • Allocate part of current liquidity needed to
                                                                           fund future PPP projects
Source: Interviews, market research, BCG analysis


London, October 16th 2008                                                                   121
Mr. Jean Paul Giani, 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




 London, October 16th16th 2008
   London, October 2008                                                    135
                                                                            CBI —Computer Based Interlocking, or CBI, is an Interlocking System (see
Glossary of Selected Terms                                                  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
AF-900® —Part of an Automatic Train Control System (ATC),                   circuitry greatly facilitates the ability to make modifications when needed by
providing both train detection and transmission of digital cab signalling   reprogramming rather than rewiring.
data for the Automatic Train Protection (ATP) function of the ATC.
                                                                            CBTC — Communication Based Train Control, or CBTC, is a system under
ATC — Automatic Train Control, or ATC, is an integrated signalling          development that will allow for the interchangeability of different
system that guarantees the secure movement of trains. ATC                   technological systems in use on various metro lines. CBTC can be
integrates various subsystems positioned on-board and wayside. In           understood as an attempt to create an ERTMS type standard for the mass
addition to a full interlocking system, a complete ATC system consists      transit industry.
of three subsystems: (i) ATP, (ii) ATO and (iii) ATS.
                                                                            CPTM — The Companhia Paulista de Trens Metropolitanos runs the city of
ATP — Automatic Train Protection, or ATP, is an ATC subsystem               São Paulo's suburban passenger services.
responsible for the safe operation of a signalling system. It imposes
                                                                            CTC — A Centralized Traffic Control system, or CTC, monitors the status of
speed limits on trains, both to maintain a safe operating distance
                                                                            signalling on a line or network and displays the relevant status information
between them and to comply with safety and speed requirements.
                                                                            to a central operator, assists in the management of the line or network
The ATP system is designed to be a fail-safe (vital) system.
                                                                            consistent with the timetable and exercises control to prevent small
ATO —Automatic Train Operation, or ATO, is an ATC subsystem                 schedule disturbances from becoming traffic jams. CTC also notifies the
which performs on-board, non-vital functions normally performed by a        operator of ATC equipment failures and of failures in traction power and
train driver, including ensuring a smooth acceleration of the train to      passenger station support facilities.
the running speed, speed regulation and smoothly stopping the train
                                                                            DPL — Dedicated Passenger Line.
at the proper position at station platforms or in front of stopping
signals.    ATO subsystems are primarily located on-board and               ETCS — The European Train Control System (ETCS) is a signalling,
represent one of the principal components of a driverless system.           control and train protection system designed to replace the many
Additionally, ATO subsystems report vehicle health status to the            incompatible safety systems currently used by European railways,
central control offices.                                                    especially on high-speed lines.
ATS — Automatic Train Supervision, or ATS, is an ATC subsystem              ERTMS — The European Rail Traffic Management System, or ERTMS,
which operates to control trains automatically by means of ATO and          ERTMS was introduced by the EU in 1992 as a means of creating a uniform
ATP, in accordance with the railway timetable. This also involves a         system of command, control and coordination of rail traffic to allow for
CTC system.                                                                 ‘‘interoperability’’ throughout EU territory. The ERTMS standard exists at
                                                                            three levels (ERTMS 1, 2 and 3) depending on use, each distinguished by
ATSF — Ansaldo Trasporti Sistemi Ferroviari, Transport Systems
                                                                            the type of wayside and on-board equipment used and the manner in which
Business Unit.
                                                                            this equipment communicates relevant data.
Balise — An electronic beacon or transponder placed between the
rails of a railway as part of an Automatic Train Protection system.
London, October 16th 2008                                                                                      136
                                                                               OURAGAN — A large-scale programme implemented by RATP for the
Glossary of Selected Terms                                                     re-signalling of 13 lines. OURAGAN is intended to standardize CBTC
                                                                               technology and diversify suppliers, based on the concept of
                                                                               interchangeability.
EUROCAB — Onboard computer used to process ETCS information.                   PTC — Positive Train Control: North American freight railway
                                                                               implementation of CBTC.
FS — Ferrovie dello Stato S.p.A, or FS, the operator of the Italian
railway network.                                                               RBC — Radio Block Centre. All trains automatically report their exact
                                                                               position and direction of travel to the RBC at regular intervals.
HSL — High Speed Line, or HSL, refers to railway lines with capacity
for speeds in excess of 200 km/h (125 mph).                                    RFF — Réseau Ferré de France: manager, project leader and owner of
                                                                               the French national rail network.
ICSS — Integrated Control &              Safety    System.       Integrated
                                                                               RFI — Rete Ferroviaria Italiana S.p.A., or RFI, is a subsidiary of FS
Communication Switching System.
                                                                               (defined above), responsible for managing the Italian railways
Interlocking System (IXL) — An interlocking system is responsible for          infrastructure.
the reliable and safe movement of trains inside a station, through             RZD — Rossiyskie Zheleznye Dorogi/Russian Railways is the state-
complex junctions and for the length of the line. The interlocking             owned railway company of Russia.
system ensures that train movement is permitted only when a route is
available and the switches along this route are safely locked in their         SCADA A Supervisory Control And Data Acquisition system, or
position. In all cases the interlocking allocates a track portion or a route   SCADA, allows for the supervision of the various subsystems at work in
to one train at a time, excluding all others.                                  a railway or mass transit environment. SCADA collects information
                                                                               from remote installations, transfers it back to a central office, analyzes
LRT — Light Rail Transit, or LRT, refers to a form of urban rail transit       the information, takes appropriate action and displays that data on a
that utilizes equipment and infrastructure that is typically less massive      number of operator screens.
than that used for metro systems, with modern light rail vehicles usually
                                                                               SCMT — Sistema di Controllo della Marcia del Treno: automatic train
running along the system.
                                                                               protection system.
MicroLok® — Wayside control system consolidating vital and non-vital
                                                                               SNCF — Société Nationale des Chemins de fer Français. The French
control logic, data transmission and coded track circuits into a single
                                                                               National Railway Company is concerned with the operation of rail
package.
                                                                               services for passengers and freight, and the maintenance as well as
MT — Mass Transit.                                                             signalling of rail infrastructure owned by RFF.
OTP — Optimizing Traffic Planner, or OTP, is a traffic management              SSC —Sistema Supporto Condotta: Italian train stopping system. Less
system that permits real time monitoring of the positioning of trains          sophisticated than SCMT.
throughout a railway system. OTP optimizes system or network                   TLC — Trainline Controller provides an interface between CBTC
capacity by safely minimizing the time between trains, thereby reducing        equipment and the rolling stock’s conventional controls.
operating costs. OTP is primarily designed for those markets where
railway systems infrastructure is being used to full capacity.


London, October 16th 2008                                                                                      137

								
To top