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Company & Business presentation Company & Business presentation 2006 Full Year End Results 2006 Full Year End Results

Analyst Presentation Analyst Presentation

FIRST LISTING YEAR 2006

Milan, March 23 Milan, March 23rd

rd 2007

2007

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Ansaldo STS Group: Ansaldo STS Group: 2006 Full Year results 2006 Full Year results – – Key Figures Key Figures

FIRST LISTING YEAR 2006

€mil 2006 FY 2005 FY Var.% Orders 1.271,2 1.015,5

25,2%

Backlog 2.413,6 2.091,8

15,4%

Production Revenues 928,2 842,6

10,1%

EBIT 91,4* 79,8

14,6%

ROS 9,8%* 9,5%

0,3%

Net Profit 52,6* 44,3

18,7%

Net Financial Position 158,2 120,8

30,9%

R&D 35,9 34,7

3,4%

Total Staff 3.962 3.622

9,4%

* Figures not including the 2006 not recurrent listing costs of 6.8 €mil

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Presence in 18 countries worldwide, with about 4,000 employees

Ansaldo STS Group: Resources around the world Ansaldo STS Group: Resources around the world

HEADQUARTERS REGIONAL HQ OPERATIONS MANUFACTURING R&D CAPABILITIES

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Acquired orders 833,1 796,5 534,3 240,1 Value of production 707,5 613,3 236,8 252,7 EBIT 73,9 63,9 21,4 18,4 EBIT margin 10,4% 10,4% 9,1% 7,3% Working capital (70,0) (7,9) (171,9) (133,7) Net invested capital 8,6 64,3 (124,3) (126,0) R&D 33,2 33,3 2,0 1,4 Total staff 3.606 3.304 327 318

€mil.

Order Backlog 1.319,6 1.223,4 1.248,1

SIGNALLING TRANSPORT SYSTEMS

950,1

2006 FY 2005 FY 2006 FY 2005 FY

Ansaldo STS Group 2006 Results: Ansaldo STS Group 2006 Results: Key figures by Business Unit Key figures by Business Unit

CTC / SCADA On board ATP / ATO Wayside ATP + Interlocking CTC / SCADA On board ATP / ATO Wayside ATP + Interlocking

The values reported in the table include the transactions between the Business units. The figures for 2005 were drawn from the aggregate financial statements prepared at the time of the listing

General Contractor Components, Services & Maintenance V e h i c l e s O t h e r S u b s y s t e m s Infrastructure Technological Integrator System Provider Signalling General Contractor Components, Services & Maintenance V e h i c l e s O t h e r S u b s y s t e m s Infrastructure Technological Integrator System Provider Signalling

Track Circuit Replacement Washington - WMATA (7,1 €mil) Track Circuit Replacement Washington - WMATA (7,1 €mil) Dearborn Congress – Chicago CTA (24,1 €mil) Dearborn Congress – Chicago CTA (24,1 €mil) Spain - ERTMS, High- Speed Line Perpignan Figueras - IFP Cobra (7,9 €mil) Spain - ERTMS, High- Speed Line Perpignan Figueras - IFP Cobra (7,9 €mil) CTCS Wayside signalling

• MOR (3 €mil)

CTCS Wayside signalling

• MOR (3 €mil)

Line CTC – ARTC frame Contract (11,1 €mil) Line CTC – ARTC frame Contract (11,1 €mil) Gooty Pullanpet Doubling of line signalling - Leighton Emrail (Malaysia) (10,7 €mil) Gooty Pullanpet Doubling of line signalling - Leighton Emrail (Malaysia) (10,7 €mil) Venezuela Los Teques - Caracas Metro (5 €mil) Venezuela Los Teques - Caracas Metro (5 €mil) Railways Signalling Ghaziabad Kampur - IRPMU (India) (55,7 €mil) Railways Signalling Ghaziabad Kampur - IRPMU (India) (55,7 €mil) ERTMS, Eurocab - CAF (5,9 €mil) ERTMS, Eurocab - CAF (5,9 €mil) Lower Hunter Valley - ARTC (4,1 €mil) Lower Hunter Valley - ARTC (4,1 €mil) MossValo to Vingello - ARTC (3,5 €mil) MossValo to Vingello - ARTC (3,5 €mil) ICSS 10 locomotives - Pilbara Iron (3,4 €mil) ICSS 10 locomotives - Pilbara Iron (3,4 €mil) Driverless Metro Thessaloniki - Attiko Metro A.E. (166,4 €mil) Driverless Metro Thessaloniki - Attiko Metro A.E. (166,4 €mil) Operation & Maintenance Copenhagen - Orestad (135.5 €mil) Operation & Maintenance Copenhagen - Orestad (135.5 €mil) Other Components & Services (106.4 €mil) Other Components & Services (106.4 €mil) ARTC Projects (9,2 €mil) ARTC Projects (9,2 €mil) Railway 6 station PBI Bangladesh (4,4 €mil) Railway 6 station PBI Bangladesh (4,4 €mil)

• SCMT-SSB-ERTMS for SSB - Breda (7,2 €mil)
• SCMT-SSB-ERTMS for SSB - Breda (7,2 €mil)
• SCMT On board - Trenitalia (23 €mil)
• SCMT On board - Trenitalia (23 €mil)
• SCMT Wayside - RFI (47,5 €mil)
• SCMT Wayside - RFI (47,5 €mil)
• Driverless Metro Milano – Metro 5 (118,4 €mil)
• Driverless Metro Milano – Metro 5 (118,4 €mil)
• High Speed – R.F.I. (16,1 €mil)
• High Speed – R.F.I. (16,1 €mil)
• Alifana – Metro Campania Nord Ovest (91,8 €mil)
• Alifana – Metro Campania Nord Ovest (91,8 €mil)
• ATC On Board - Trenitalia (96,7 €mil)
• ATC On Board - Trenitalia (96,7 €mil)
• Piscinola Capodichino (83,1 €mil)
• Piscinola Capodichino (83,1 €mil)

Maintenance – RATP (3,1 €mil) Maintenance – RATP (3,1 €mil) IXL Resignalling programme Thalys Adaptation (3,5 €mil) High-Speed-Line / RBI - SNCF RFF (2,8 €mil) IXL Resignalling programme Thalys Adaptation (3,5 €mil) High-Speed-Line / RBI - SNCF RFF (2,8 €mil) ERTMS Eurocab HAS (11.8€mil) UK Network Rail Cambrian Line (4 €mil) ERTMS Eurocab HAS (11.8€mil) UK Network Rail Cambrian Line (4 €mil)

Ansaldo STS Group: Main Ansaldo STS Group: Main Orders acquired in the year 2006 Orders acquired in the year 2006

HSL Taegu – Pusan Korea (37,0 €mil) HSL Taegu – Pusan Korea (37,0 €mil)

60% 17% 13% 9% 1% 40% 34% 10% 15% 1%

Production Revenues Distribution Production Revenues Distribution Orders Distribution Orders Distribution

€ €mil 1.271,2 mil 1.271,2 € €mil 928,2 mil 928,2

75% 25% 58% 42%

Business Unit Systems Business Unit Signalling

Ansaldo STS Group: Ansaldo STS Group: Orders & Production Revenues Orders & Production Revenues by Geographic area in 2006 by Geographic area in 2006

Italy Rest of Europe North America Asia / Pacific Others

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Signalling SBU Orders*

Total 2006 € 736,9 mil* (58% of ASTS Orders 2006)

2006 2006 2005 2005

Total 2005 € 775,5 mil* (77% of ASTS Orders 2005)

Ansaldo STS Group: Orders Signalling Ansaldo STS Group: Orders Signalling Breakdown by geographic area Breakdown by geographic area

Italy Rest of Europe North America Asia / Pacific Others

* Net of intercompany. 2005 = 21.1 €mil ; 2006 = 96.1 €mil

Of which Italian Railways € 252 mil

(34% of ’06 total orders)

Of which Italian Railways € 334 mil

(43% of ’05 total orders)

2% 13% 19% 20% 46% 38% 17% 17% 26% 2%

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Transport Systems SBU Orders

44% 56% 96% 4%

2006 2006 2005 2005

Total 2006 € 534,3 mil (42% of ASTS Orders 2006) Total 2005 € 240,1 mil (23% of ASTS Orders 1H 2005)

Ansaldo STS Group: Ansaldo STS Group: Orders Transport Systems Orders Transport Systems Breakdown by geographic area Breakdown by geographic area

Italy Rest of Europe

Ansaldo STS Group: SBU Orders Booking at Ansaldo STS Group: SBU Orders Booking at the end of 2006 the end of 2006 – – Breakdown by SBU & Business line Breakdown by SBU & Business line

78% 2% 7% 13% 71% 11% 3% 15%

RAILWAYS RAILWAYS MASS TRANSIT MASS TRANSIT SERVICE & MAINTENANCE SERVICE & MAINTENANCE COMPONENTS COMPONENTS

Signalling New Orders

87% 13% 73% 3% 24%

Transportation Systems New Orders

Total € 534,3 mil Total € 736,9 mil*

*Euro mil. Net intercompany

2006 2006 2005 2005 2006 2006 2005 2005

Total € 240.1 mil Total € 775.5 mil*

Components

(Sold separately from systems)

14%

(about 97 €mil)

• Signalling, Control

& Automation systems for Railways and Mass-Transit Markets

Signalling Systems 81%

(about 560 €mil)

Services & Maintenance 5%

(about 35 €mil)

• Signals
• Point

Machines

• Level

Crossings

• Track Circuits
• Hot Box

detectors

• Relays
• Beacons
• Access

Control Gates

• Encoder and

transponder for safe data transmission

• End-to-end

maintenance

• Training of

personnel

• Engineering

and diagnostic tools

• Simulators
• Signalling, Control & Automation systems

for High-Speed (specifically designed, based

• n ERTMS) and Conventional Railway (based
• n national standards) networks
• Signalling, Control &

Automation systems for Mass-Transit Markets

Railways Systems 89% Mass-Transit Systems 11% Signalling Revenues ’06 691,4 €mil.

Euro mil. Net intercompany

Ansaldo STS Group: SBU Signalling Revenues at Ansaldo STS Group: SBU Signalling Revenues at the end of 2006 the end of 2006 – – Breakdown by Business line Breakdown by Business line

Signalling Production Revenues

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Mass-Transit 80 %

(about 190 €mil)

Transport Systems Revenues ’06 236,8 €mil. Railways 20 %

(about 47 €mil)

Ansaldo STS Group: SBU Transport Systems Ansaldo STS Group: SBU Transport Systems Revenues at the end of 2006 Revenues at the end of 2006 – – Breakdown by Business line Breakdown by Business line

Conventional:

• Link of main nodes

to minor network points

• Different rolling

stock depending

• n the lines
• perated

(interregional, regional, or local)

• Maximum speed of

180-200 km/hr

High-Speed:

• Link between

major cities’ main stations

• Maximum speed
• f 350 km/hr

Conventional Metro:

• Transport system

running on dedicated and protected track

• Capacity between

8,000 and 50,000 passengers per hour per direction (pphpd)

• Required maximum

speed cannot exceed 100 km/hr

• Vehicle frequency up

to 90 seconds

Driverless Metro:

• Same features of

Conventional Metro but no personnel on board

• Full operational

flexibility with vehicle frequency below 90 seconds

Tramway:

• Ordinary urban

mobility with capacity between few thousand and 10,000 pphpd (passengers per hour per duration)

• Minimum vehicle

frequency about 5 minutes

• Distance between

two stops 500 m or less (in city centres)

Transportation Systems Production Revenues

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EBITDA Margin (%)

4,2% 6,8% 8,3% 9,3% 10,5% 11,6% 11,5% 7,8% 9,6% 10,6% 10,1% 9,3% 2003 2004 2005 2006 Transport Systems Signalling Consolidated

NFP - Backlog - Production Revenues (€m)

• Substantial margin increase

thanks to:

– Product mix improvement – Business Development in specific areas and technologies – Cost efficiencies

• Focus on project management

and cash generation

2004 2005 2006

2.413 2.092 1.889 928 843 777

158

Net Financial Position Backlog Production Revenues

121 84

Ansaldo STS Ansaldo STS -

• Strong Financial Track

Strong Financial Track-

• Record and

Record and Cash Flow Generation Cash Flow Generation

Strategic Guidelines for next three years Strategic Guidelines for next three years

FIRST LISTING YEAR 2006

Milan, March 23 Milan, March 23rd

rd 2007

2007

4

Ansaldo STS Group: The aims of the Strategic Guidelines Ansaldo STS Group: The aims of the Strategic Guidelines

Starting from the 2006 Orders and Backlog good performances Starting from the 2006 Orders and Backlog good performances

• ASTS strategic guidelines are based on :

ASTS strategic guidelines are based on :

• Business Development & Business Improvement

Geographical expansion to become a global signalling player and an

international Turnkey System player

Product portfolio extension to complete signalling portfolio and develop

“off the shelf” unmanned systems;

Increasing cost competitiveness.

• To pursue its strategic objectives ASTS is proceeding with:

To pursue its strategic objectives ASTS is proceeding with:

Re-shaping the organization: organization structure based on 4 regional

areas responsible for the Signalling and Transport Systems businesses with a reinforced headquarters to drive overall strategy implementation;

Completing selected acquisitions in both business units

Continuous stable growth Continuous stable growth

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Starting from the 2006 Orders and Backlog good performances Starting from the 2006 Orders and Backlog good performances

• Identified action plan is based on:

Identified action plan is based on:

Three main streams to implement organizational change

(Regionalization, Turnkey competence spread and HQ reinforcement);

Regional / country specific actions for business development; Focus the Group’s attention on Integration between Signalling and Systems

Transportation;

Improve the penetration outside of Italy, in particular in Turnkey Systems; Maximise the use of the financial resources to both support core business

development and exploit new opportunities;

Ansaldo STS Group: Action Plan Ansaldo STS Group: Action Plan

Continuous stable growth Continuous stable growth

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1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q METROBRESCIA

• M. GENOVA DE FERRARI BRIGNOLE
• M. NAPOLI LINEA 6

A.V. ROMA NAPOLI G.C. COPENHAGEN (SUPPLY + O&M) ALIFANA THESSALONIKI MILANO LINE 5 2005 Main contracts being started-up Transportation Systems Over 2006 2007 2008 2009

Ansaldo STS Group: Ansaldo STS Group: Strategic Guidelines for next three years Strategic Guidelines for next three years -

• Backlog consistency

Backlog consistency

→ Average project life

for Transportation Systems business: 6-7 years → The contracts acquired during the last 15 months will start progressively to generate revenues already in 2007 → The Revenues generation will continue beyond 2009 → The list represents: 71% of 2006 2006 Transportation Transportation Systems Backlog Systems Backlog

Continuous stable growth Continuous stable growth

Producing Revenues for an amount < 20mil€ in a year Producing Revenues for an amount > 20mil€ in a year

BACKLOG

48,20% 51,70%

Transportation System Signalling

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1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q SCMT ON BOARD UP CAD X/OTP HSL TORINO MILANO HSL MILANO BOLOGNA SCMT WAYSIDE KFW GHAZIABAD KANPUR ACS PISA CTRL PHASE 2 ATP ON BOARD CHINA OURAGAN TEAGU PUSAN KOREA 2005 Main contracts being started-up Transportation Systems Signalling Over 2006 2007 2008 2009

→ Average project life for Signalling business: 3-4 years The contracts acquired during the last 15 months will start progressively to generate revenues already in 2007 → The Revenues generation will continue beyond 2009 → The list represents: 51% of 2006 2006 Signalling Backlog Signalling Backlog

Ansaldo STS Group: Ansaldo STS Group: Strategic Guidelines for next three years Strategic Guidelines for next three years -

• Backlog consistency

Backlog consistency

Continuous stable growth Continuous stable growth

Producing Revenues for an amount < 20mil€ in a year Producing Revenues for an amount > 20mil€ in a year

BACKLOG

48,20% 51,70%

Transportation System Signalling

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♦ Production Revenues (CAGR ‘05-’09) At Consolidated Level continued growth of about + 6 %

• Signalling possible average growth + 5 %
• Systems possible average growth + 9 %

♦ Orders Booking (CAGR ‘05-’09) At Consolidated Level continued growth of about + 7 %

• Signalling possible average growth + 4 %
• Systems possible average growth + 20 %

Based on Actual 2005

Ansaldo STS Group: Strategic Guidelines for next three years Ansaldo STS Group: Strategic Guidelines for next three years

843 928 1100 2005 2006 2009

Production Revenues

~ CAGR CAGR 05 05-

• 09

09 +6% +6%

1015 1271 1466 2005 2006 2009

Orders Booking

~ CAGR CAGR 05 05-

• 09

09 +7% +7%

Continuous stable growth Continuous stable growth

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Ansaldo STS Group: Strategic Guidelines for next three years Ansaldo STS Group: Strategic Guidelines for next three years

EBITDA: average growth 1.5% – 2% points (period ’05 – ’09) ROS: despite the different commercial mix between Signalling and Systems Transportation, average growth 1.5% – 2% points (period ’05 – ’09) TAX rate: possible average reduction in three years => 2009 objective: consolidated tax rate between 44% - 45% Net Financial Position (CAGR ‘05-’09): Without considering M&A activities and Dividend distribution => progressive growth sustained by a FOCF about equal to the Net Income

Based on Actual 2005

Continuous stable growth Continuous stable growth

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Ansaldo STS Group: Growth Strategy Ansaldo STS Group: Growth Strategy

1.

External growth through some selected possible targets and through further

• pportunities in other countries

Rationales for Acquisition Rationales for Acquisition

GEOGRAPHICAL GEOGRAPHICAL ATTRACTIVENESS ATTRACTIVENESS EXTEND PRODUCT EXTEND PRODUCT PORTFOLIO/ CAPABILITIES PORTFOLIO/ CAPABILITIES SUPPLY CHAIN SUPPLY CHAIN CONSOLIDATION CONSOLIDATION

2.

New Company: Ansaldo STS Deutschland Ansaldo STS Deutschland intend to establish local partnerships;

3.

Further partnerships in other areas.

Continuous stable growth Continuous stable growth

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Key Contact Key Contact Headquarter: Via Paolo Mantovani, 5 16151 Genoa, Italy Investor Relations: Andrea Razeto investorelations@ansaldo-sts.com www.ansaldo-sts.com Tel: +39 010 655 2111 Fax: +39 010 655 2055

FIRST LISTING YEAR 2006