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Introduction

At 30 June 2009 the Ansaldo STS Group reported net profit of EUR 37,471 thousand compared with EUR 31,113 thousand for the same period last year. Revenues at 30 June 2009 were EUR 547,304 thousand, compared with EUR 502,561 thousand at 30 June 2008. The Group's EBIT went from 10.12% at 30 June 2008 to 10.38% at 30 June 2009.

Orders at 30 June 2009 came to EUR 832,325 thousand compared with EUR 491,556 thousand at 30 June 2008. The increase (EUR 340,769 thousand) is attributable to the exceptionally large amount of orders acquired for the first half of 2009 in the Transportation Solutions Business Unit, while the Signalling Business Unit posted a slight decrease compared with the same period of the previous year. To that regard, acquisitions of EUR 456,036 thousand are recorded for the Transportation Solutions Business Unit, mainly related to the Taipei Metro (EUR 214,200 thousand) and the contract for the designing and execution of the electrical/rail systems of the Naples Metro Line 1 (EUR 53,700 thousand) and the acquisition with AnsaldoBreda, associated company of the Finmeccanica Group, of the contract for the Riyadh Metro, Women's University, for EUR 148,800 thousand; acquisitions of EUR 390,069 thousand are recorded for the Signalling Business Unit, mainly attributable to the maintenance of the Madrid-Lerida (Spain) HSL (EUR 31,300 thousand), the contracts acquired in Germany, Italy and the United Kingdom for a total EUR 98,200 thousand and the contracts acquired in the US and Australia for EUR 133,100 thousand.

The value of backlog at 30 June 2009, equal to EUR 3,405 million, reflects the performance of acquisitions and rose by 8.58% from that for the end of 2008, which amounted to EUR 3,136 million.

The data outlined above are evidence of the first six months of 2009 that can be considered satisfactory overall from the standpoint of the Group's growth, profitability, and capital and financial solidity.

The actions undertaken and results achieved in the prior year have paved the way for the continuation of a positive trend for the Group also for the near future.

More specifically, as regards the Transportation Solutions Business Unit, due to the exceptionally large orders acquired in the previous years, together with a good level of acquisitions for the period, the backlog exceeded the already significant amount of the end of 2008 standing at EUR 2,122 million, equal to 6 years of productive activity. This paves the way for significant development of this business over the next three years. As far as the Signalling Business Unit is concerned, in line with the previous year, the first six months were marked by a sizeable geographic expansion of the potential market, which has already yielded important results in terms of the acquisition of new orders in particularly important business segments and countries.

The solid knowledge already acquired (ERTMS and ATC driverless) and the expertise being consolidated (CBTC) in the strategic technologies of the sector, the peculiar geographic distribution of the Group business at global level, and the additional efforts of commercial penetration in the new areas characterised by high growth rates (Central and Eastern Europe, and Middle and Far East) confirm the Group's favourable competitive position and make it possible to look to the future with reasonable serenity.

In the period from 2 January to 30 June 2009, the official price of the stock passed from EUR 10.02 to EUR 13.03 with an increase of 30%. The increase in value materialized in a financial market that showed a slight increase over the previous six months.

The Ansaldo STS stock showed relative strength over the reference indexes and is counter-trending, as is revealed by the correlation with the FTSE All-Share index, which was minimal on average during the period at issue (46%).

On the last day of the period at issue, the Ansaldo STS stock hit an all-time high with closing price of EUR 13.12.

In the same period, the FTSE Mib index reported a decrease of 2.04%, and the FTSE Italia STAR reference index reported a 15.92% increase

The proven defensive ability of the stock and the non-cyclicity of the reference business, which is growing continuously due to several decisions of new investments, help keeping investors' and reference shareholders' confidence, partly due to the commercial performances achieved and the efficient market communication strategy.

The following should be noted:

  • starting from 1 January 2009 the merger of Ansaldo STS SpA and the subsidiaries Ansaldo Segnalamento Ferroviario SpA and Ansaldo Trasporti Sistemi Ferroviari SpA, became operational. It was approved on 20 June 2008 and the deed was executed on 26 September 2008.
  • on 1 January 2009, the Consolidated taxation mechanism was interrupted for the purposes of the application of the IRES tax (Corporate Income Tax). It was opted for on 15 June 2007. Interrupting the adoption of this mechanism does not change the benefits acquired when the option was exercised, as Article 124 of the Income Tax Code does not apply here.
  • from December 2008 the balance sheet, income statement and cash flow statement are compliant and disclose related party transactions as required by IAS 1, IAS 24 and the (Italian securities regulator) Consob regulation;
    • from January 2009 the American subsidiaries changed their company names:
    • Union Switch & Signal Inc. became Ansaldo STS USA Inc.;
    • Union Switch & Signal International Co. became Ansaldo STS USA International Co.;
    • Union Switch & Signal International Projects Co. became Ansaldo STS USA International Projects Co.;
    • Transcontrol Corporation became Union Switch & Signal Inc.
  • in the first half of 2009 the subsidiaries Ansaldo STS Infradev South Africa, Ansaldo STS Southern Africa and Ansaldo Railway System Technical Service (Beijing) Ltd were consolidated on a line-by-line basis
  • starting 1 June 2009, Balfour Beatty Ansaldo Systems JV SDN BHD (Joint Venture subject to common control, as envisaged in the shareholders' agreements) held by our subsidiary Ansaldo STS Malaysia SDN BHD (40%) and Balfour Beatty Rail SDN BHD (60%) entered the scope of consolidation; this entity is consolidated using the proportionate method.