CONSOLIDATED INTERIM ANSALDO STS S.p.A. FINANCIAL REPORT Registered Offi ce: AT 30 SEPTEMBER 2013 Via P. Mantovani 3 - 5, Genoa Paid-up share capital: 90,000,000 Genoa company registration no. and tax code: 01371160662 www.ansaldo-sts.com

A Finmeccanica Company WorldReginfo - 173f7aa4-cf09-487c-9520-2c74eed9e2ed WorldReginfo - 173f7aa4-cf09-487c-9520-2c74eed9e2ed Contents

Directors’ report at 30 September 2013 1 Directors’ report at 30 September 2013 2 1.1 Introduction 2 1.2 Key performance indicators 2 2 Non-IFRS alternative performance indicators 5 3 Related party transactions 6 4 Performance 7 4.1 The market and commercial situation 7 4.1.1 Signalling business unit 7 4.1.2 Transportation Solutions business unit 8 4.1.3 Sales information 9 4.1.4 Signalling - performance by business unit 10 4.1.5 Transportation Solutions - performance by business unit 12 5 Key events of and after the reporting period 15

Condensed interim consolidated financial statements as at and for the nine months ended 30 September 2013 6 Condensed interim consolidated financial statements 18 6.1 Income statement 18 6.2 Statement of comprehensive income 18 6.3 Statement of financial position 19 6.4 Statement of cash flows 20 6.5 Statement of changes in equity 21 7 Notes to the condensed interim consolidated financial statements at 30 September 2013 22 7.1 General information 22 7.2 Basis of preparation 22 7.2.1 Effects of amendments to the IFRS 22 7.3 Consolidation scope 23 7.4 Exchange rates adopted 24 8 Segment reporting 25 8.1 Primary reporting format 25 8.2 Secondary reporting format 26 9 Notes to the condensed interim consolidated financial statements at 30 September 2013 27 10 Related party transactions 35 10.1 Impact of related party transactions on profit or loss 35 10.2 Related party assets and liabilities 37 11 Financial risk management 41 12 Significant non-recurring events and transactions 43 13 Atypical and/or unusual transactions 43 14 Net financial position 43 15 Earnings per share 44 16 Outlook 45 17 Disclosure on the opt-out regime 46 Annex A: Statement pursuant to article 154-bis.2 of Legislative decree no. 58/1998 47

(Translation from the Italian original which remains the definitive version) WorldReginfo - 173f7aa4-cf09-487c-9520-2c74eed9e2ed Directors’ report at 30 September 2013 | Key performance indicators

1 Directors’ report at 30 September 2013 1.1 Introduction

Ansaldo STS group recognised a profit of e50,829 thousand for the nine months ended 30 September 2013, compared to e45,570 thousand for the corresponding period of the previous year. Revenue came to e866,755 thousand, compared to e873,529 thousand and the ROS was 9.0%, compared to 8.9% in the corresponding period of the previous year. New orders totalled e1,013,835 thousand, compared to e1,050,885 thousand for the nine months ended 30 September 2012, and the order backlog came to e5,737,294 thousand (e5,634,847 thousand at 30 September 2012 and e5,683,253 at 31 December 2012).

The official share price in the 31 December 2012 to 30 September 2013 period went up from e6.27 (updated after the fourth instalment of the share capital increase was issued on 15 July 2013) to e6.85. The share’s period high of e7.38 was recorded on 15 May 2013 and its low of e5.93 on 13 March 2013. An average 1,122,904 shares were traded daily in the period, compared to 987,131 shares traded in the corresponding period of the previous year. The FTSE All Share Italy fell 7.6%, while the FTSE Italia STAR rose 34.1%, again with a focus on the small & mid caps segments.

Share performance compared to the main indices (base 100) Ansaldo STS S.p.A. Italy FTSE Italia Star Italy FTSE Italia All-Share 140 Price (Indexed to 100) 34.1% 130

120

110 9.2% 7.6% 100

90

80 Jan-13 Feb-13 Mar-13 Apr-13 May-13 Jun-13 Jul-13 Ago-13 Sep-13

1.2 Key performance indicators

First nine First nine (e’000) months of 2013 months of 2012 Change 2012

New orders 1,013,835 1,050,885 (37,050) 1,492,346 Order backlog 5,737,294 5,634,847 102,447 5,683,253 Revenue 866,755 873,529 (6,774) 1,247,849 Operating profit (EBIT) 78,322 77,586 736 117,073 Adjusted EBIT 78,829 81,806 (2,977) 123,526 Profit for the period/year 50,829 45,570 5,259 75,696 Net working capital 84,988 23,171 61,817 (48,147) Net invested capital 302,819 240,053 62,766 167,184 Net financial position (185,368) (202,588) 17,220 (301,982) Free operating cash flow (75,553) (63,536) (12,017) 37,569 ROS 9.0% 8.9% +0.1 p.p. 9.4% ROE 17.4% 16.7% +0.7 p.p. 17.0% EVA 34,370 35,867 (1,497) 62,514 Research and development 21,879 23,838 (1,959) 32,260 Headcount (no.) 4,122 4,037 85 3,991

Revenue came to e866,755 thousand, down from the corresponding period of the previous year (e873,529 thousand).

The Signalling business unit recognised revenue of e513,151 thousand, up e8,030 thousand over the corresponding period of the previous year (e505,121 thousand). The Transportation Solutions business unit recognised revenue of e383,445, up e1,933 thousand over the corresponding period of the previous year (e381,512 thousand). Eliminations between the two business units were up e16,737 thousand (see paragraph 8).

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Revenue for the periods ended 30 September 2013 - 2012 (€m) and the contribution of the business units

874 867 Signalling business unit

Transportation Solutions business unit

44 % 44 % 56 56 30 September 2013 30 September 2012

Operating profit (EBIT) came to e78,322 thousand, compared to e77,586 thousand for the corresponding period of the previous year. ROS was 9.0% compared to 8.9% in the same period of 2012. Specifically: • the Signalling business unit recognised an operating profit of e43,215 thousand (e47,851 thousand in the corresponding period of 2012). The e4,636 thousand decrease is due to the different mix and profitability of projects in the reporting period and the corresponding period of the previous year; • the Transportation Solutions business unit recognised an operating profit of e39,186 thousand, slightly down by e1,092 thousand on the corresponding period of the previous year (e40,278 thousand), due to the greater impact of commercial costs.

EBIT and ROS for the periods ended 30 September 2013 - 2012 (€m)

78.3 77.6

9.0% 8.9% 30 September 2013 30 September 2012

Net invested capital totalled e302,819 thousand, compared to e167,184 thousand at 31 December 2012. The increase is mainly due to the improvement in net working capital from -e48,147 thousand at 31 December 2012 to e84,988 thousand at 30 September 2013. Specifically, the increase in work in progress and the decrease in trade payables were only partly offset by the decrease in trade receivables. The group’s net financial position (greater loans and receivables and cash and cash equivalents than loans and borrowings) at 30 September 2013 was e185,368 thousand, compared to e301,982 thousand at 31 December 2012, down e116,614 thousand, after the e28,800 thousand dividend payment approved by the shareholders in their meeting of 6 May 2013 and the repayment of loans and borrowings by the Indian subsidiary. It includes the e70,643 thousand advance received from the Russian customer, Zarubezhstroytechnology (“ZST”), for the project signed in August 2010 and interrupted as from 21 February 2011, for the development of signalling, automation, telecommunication, power distribution, security and ticketing systems on the Sirth to Benghazi section in Libya. Loans and receivables also includes the euro equivalent amount of the Libyan dinars received as an advance on the first of the two contracts acquired in Libya and deposited in a local bank (e28,443 thousand). In August, ZST requested the enforcement of the Advance Payment Bond issued by the bank, Credit Agricole, to guarantee such advance. The customer claims breach of contract by Ansaldo STS. In its defence, the company stated that ZST’s enforcement should be considered illegitimate as the latter’s claim that Ansaldo STS breached its obligations as subcontractor was fraudulent. The company claims the contract was not executed due to force majeure following the disorder that has been rife in Libya in recent years. In light of the above, on 14 August 2013, the judge of the Milan Civil Court allowed Ansaldo STS’s request and ruled in favour of the latter, ordering Credit Agricole not to proceed with the enforcement requested by ZST. On 12 October, the Milan Civil Court confirmed the decree of 14 August 2013, also ruling that Credit Agricole and ZST, with the latter intervening in the proceedings, should pay the legal fees.

Cash and cash equivalents at 30 September 2013 amounted to e103,184 thousand, compared to e146,837 thousand at 31 December 2012.

The free operating cash flow (FOCF) used before strategic transactions totalled e75,553 thousand, compared to e63,536 thousand for the nine months ended 30 September 2012; this is largely due to the change in working capital.

Research and development expense for the reporting period totalled e21,879 thousand, down e1,959 thousand over the corresponding period of the previous year (e23,838 thousand). The activities generated by the Signalling business unit totalled e21,210 thousand (down e1,329 thousand on the corresponding period of the previous year) and mainly related to the following companies: • Ansaldo STS S.p.A.: e9,942 thousand • Ansaldo STS France S.A.S.: e7,354 thousand • Ansaldo STS USA Inc.: e3,914 thousand

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The activities generated by the Transportation Solutions business unit totalled e669 thousand, down e629 thousand over the corresponding period of the previous year.

Research expense of e1,350 thousand was capitalised in relation to the “satellite project”, against which grants of e516 thousand were recognised.

The group’s headcount at 30 September 2013 was 4,122, up a net 85 employees on the 4,037 employees at 30 September 2012 (3,991 employees at 31 December 2012). Specifically: 30.09.2013 30.09.2012 Managers 100 109 White collars 3,528 3,484 Blue collars 494 444

The group’s average headcount for the nine months ended 30 September 2013 numbered 4,055, compared to 4,024 employees for the nine months ended 30 September 2012 (4,010 employees for 2012).

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2 Non-IFRS alternative performance indicators

Ansaldo STS’s management also assesses the performance of the group and the business units using certain indicators that are not defined by the IFRS. The components of each indicator are described below as required by CESR/05 - 178b Communication: • EBIT: earnings before interest and taxes, before any adjustment. EBIT excludes gains or losses on unconsolidated equity investments and securities, as well as any gains or losses on sales of consolidated equity investments, which are classified under “financial income and expense” or “share of profits (losses) of equity-accounted investees” if related to equity-accounted investments. • Adjusted EBIT: is the EBIT as described above, net of: - any impairment of goodwill; - amortisation of the portion of purchase price allocated to intangible assets acquired as part of business combinations, pursuant to IFRS 3; - restructuring costs in relation to defined and significant plans; - other income or expense not of an ordinary nature, i.e., related to particularly significant events unrelated to ordinary activities.

A reconciliation of EBIT and Adjusted EBIT for the reporting period and corresponding period of the previous year is set out below:

First nine months of (€’000) 2013 2012

EBIT 78,322 77,586 Restructuring costs 507 4,220

Adjusted EBIT 78,829 81,806

• Free operating cash flows (FOCF): this indicator is the sum of cash flows generated by (used in) operating activities and cash flows generated by (used in) investing and disinvesting in property, plant and equipment, intangible assets and equity investments, net of cash flows from acquisitions or sales of equity investments which are deemed “strategic” due to their nature or importance. The reclassified statement of cash flows set out in paragraph 9 shows how FOCF is arrived at for the current reporting period and corresponding period of the previous year. • Funds from operations (FFO): this indicator is the cash flows generated by (used in) operating activities, net of changes in working capital. The reclassified statement of cash flows set out in paragraph 9 shows how FFO is arrived at for the current reporting period and the corresponding period of the previous year. • Economic value added (EVA): the difference between EBIT net of income taxes and the cost of the average invested capital of the current reporting period and the corresponding period of the previous year measured on the basis of the weighted average cost of capital (WACC). • Working capital: comprises trade receivables and payables, work in progress and progress payments and advances from customers. • Operating working capital: comprises trade receivables and payables, inventories, work in progress, progress payments and advances from customers and provisions for risks and charges. • Net working capital: is operating working capital less other current assets and liabilities. • Net invested capital: the sum of non-current assets, non-current liabilities and net working capital. • Net financial (position) or debt: the calculation method used complies with paragraph 127 of the CESR/05-054b recommendations implementing Regulation (EC) no. 809/2004. • New orders: the sum of the contracts agreed with customers during the reporting period that meet the contractual requirements to be recorded in the orders book. • Order backlog: the difference between new orders and revenue for the period (including the change in contract work in progress). This difference is added to the backlog for the previous year. • Headcount: the number of employees recorded in the relevant register on the reporting date. • Return on Sales (ROS): the ratio of EBIT to revenue. • Return on Equity (ROE): the ratio of the profit or loss for the reporting period to the average amount of equity at the reporting date and the corresponding period reporting date. • Research and development expense: total expense incurred for research and development, both expensed and sold. Research expense taken to profit or loss usually relates to “general technology”, i.e., aimed at gaining scientific knowledge and/or techniques applicable to various new products and/or services. Sold research expense represents that commissioned by customers and for which there is a specific sales order and it is treated exactly like an ordinary order (sales contract, profitability, invoicing, advances, etc.) in accounting and management terms.

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3 Related party transactions

Transactions with related parties relate to ordinary operations. They take place on an arm’s length basis (unless governed by specific contractual terms), as does the settlement of interest-bearing receivables and payables. They mainly comprise the exchange of goods, the provision of services and the obtaining/granting of financing from and to the parent, associates, joint ventures, consortia and unconsolidated subsidiaries. Moreover, the amended disclosure requirements of IAS 24 (revised) with reference to related parties entail the restatement of comparative figures shown in the financial statements to consider as related parties those entities under the control or significant influence of the Ministry of Economy and Finance (“MEF”). The effects (including as a percentage of the relevant total balances) of related party transactions are shown in the condensed interim consolidated financial statements as at and for the nine months ended 30 September 2013. There are no atypical and/or unusual transactions 1.

1. as defined by CONSOB communication no. DEM/6064293 of 28 July 2006.

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4 Performance 4.1 The market and commercial situation 4.1.1 Signalling business unit New orders for the nine months ended 30 September 2013 approximated e343 million (e598 million for the nine months ended 30 September 2012).

Key events of the reporting period are described below.

ITALY New orders totalled e55 million and mainly relate to the maintenance of CAS (central automated systems) and CTC (Centralised Traffic Control) plants of conventional passenger railway networks (e27 million) and metro lines (e1 million).

Activities on the conventional passenger railway networks related to order variations totalling approximately e19 million, with the main variations referring to the CTC of Campo di Marte (e7 million), ATCS (Automatic Train Control System) and CTC of the Pontremolese junction (e3 million).

There were also orders for components amounting to e4 million.

REST OF EUROPE Ansaldo STS group won a two-year contract in Spain for the maintenance of the railway traffic control, level 1 and 2 ERTMS (European Rail Traffic Management System) signalling and associated systems for the Madrid-Puigverd de Lleida high-speed line (495 km connecting Madrid and Barcelona with the French border), approximating e27 million.

In France, new orders exceeded e52 million, including approximately e34 million relating to the high-speed lines with orders for on-board equipment “Thalys Evolutions logiciel V8.1” (e14 million), for the HS South-East Atlantique (e13 million) and HS East (e5 million) sections.

For the conventional railway network, there were orders for components and maintenance services (roughly e12 million) and for adjustments to interlocking systems of certain network stations (e6 million).

In Germany, orders amounted to approximately e8 million, with the most significant related to the development of new software functionalities for the signalling equipment to be installed on the Velaro trains (e6 million).

In Sweden, orders totalled approximately e24 million, including contracts for order variations to the ESTER programme (e13 million) and for the Stockholm metro “Red Line” (e7 million).

In Turkey, new orders exceeded e17 million and related to the implementation of line variations already underway.

AMERICA In the USA, new orders approximated e68 million, including roughly e47 million for the sale of components. Orders in the metro sector include e5 million for the New York City metro of the operator PATH-Port Authority Trans-Hudson (PATH WTC signal recovery work of e4 million and PATH PTCC of e1 million), e5 million for the Los Angeles metro, e2 million for the Washington metro, in addition to e4 million for other minor order variations.

In Brazil, orders amounted to approximately e3 million related to project variations on Lines A and F of the Sao Paolo metro.

NORTH AFRICA AND THE MIDDLE EAST A contract was won in June worth approximately e40 million for the design, supply, installation and roll-out of the ERTMS signalling systems for the new 130 km-line connecting Oued Tlelat and Tlemcen in North West Algeria.

At the beginning of April, Morocco’s Office National des Chemins de Fer (ONCF) awarded the project to design and supply the railway signalling centre, telecommunications and traffic control for the 183 km high-speed line that will connect the cities of Tangiers and Kenitra along the Atlantic coast to the consortium comprising Ansaldo STS France and Cofely Ineo. Ansaldo STS group will supply the telecommunications equipment, next generation interlocking, track circuits, automatic controls and automatic train protection systems based on level 1 and 2 ERTMS, as well as the traffic control centre located in Rabat. The complete system will enable the safe and reliable commercial operation of the new line, at speeds of up to 320 km/h. The total contract is worth e120 million, of which some e58 million pertains to Ansaldo STS group. The contract is expected to be formally registered by the end of the year when certain conditions precedent come about. The most significant commercial opportunity underway is in the United Arab Emirates relating to the construction of new railway lines (stage 2 – 750 km) as an extension to the line already assigned to Ansaldo STS and currently being built (stage 1 – 220 km), with the introduction of ERTMS Level 2 signalling systems, in addition to the telecommunication network and asset power supply and security/ protection systems.

ASIA PACIFIC In Australia, orders amounted to roughly e14 million, including the upgrade of the “Coal Loop and Spur Line - Caval Ridge” freight line (e4 million) and the sale of components (e4 million). There were also new orders for maintenance and order variations on conventional railway lines (e4 million).

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Finally, new orders won in China totalled e9 million, of which approximately e4 million related to the Chengdu metro line 1 South extension featuring CBTC (Communication based train control) technology, e3 million related to engineering services on the XiBao high- speed line and e2 million for sales of components. The main commercial activities relate to lines 1 and 2 of the Dalian metro and the extension of the Shenyang metro line 2.

Finally, in India, orders amounted to approximately e5 million, related to various adjustments and maintenance of traffic regulation equipment.

4.1.2 Transportation Solutions business unit New orders acquired during the reporting period totalled e681 million (e460 million in the corresponding period of the previous year).

Key events of the reporting period are described below.

ITALY During the period, the variation to the T3 section (Colosseo/S.Giovanni) of line C of the Rome metro was recognised for approximately e51 million. With respect to line 4 of the Milan metro (S. Cristoforo - Linate), the actual amount of the ancillary agreement approximated e47 million. This agreement, which was signed by the parties in June, marks the launch of activities, pending the completion of the process which will lead to the signing of the concession agreement. In September, the group registered the order related to the Genoa metro depot (e8 million). Although they have nearly all suffered delays and been impacted by the financial and economic situation and lack of funding, the outlook in relation to the further long-term expansion programmes to the transportation networks of the main Italian cities is confirmed.

REST OF EUROPE In the third quarter, an order variation was acquired for the installation of platform doors at interim height for the Copenhagen metro (e25 million). Various opportunities are expected in Denmark as part of complementary projects to the expansion of the Copenhagen metro and new infrastructures in other cities. Recently, the group presented a bid for the Aarhus tram-train contract to be assigned in 2014.

NORTH AFRICA AND THE MIDDLE EAST In Saudi Arabia, the group acquired the turn-key contract for the Riyadh Red Line. Ansaldo STS will look after the technological part (worth approximately USD680 million). In addition, the group has secured an option for the subsequent 10 years maintenance (worth roughly USD249 million). The implementation stage is expected to last five years. In addition to Ansaldo STS, the consortium for such project includes Salini-Impregilo, Larsen & Toubro and Nesma, for the civil works, and Bombardier, for rolling stock. The consortium has been assigned works for a total investment of roughly USD6 billion, including the construction of two large landmark stations, “Qasr Al Hokom” and “Western Station”. The design of the stations is currently being finalised by two internationally-renowned architecture studios, thus further boosting the overall value of the contract for Ansaldo STS. Ansaldo STS’s work on the contract entails the full technological integration of the signalling systems, ATC (Automation Train Control) with the CBTC (Communication Based Train Control) system, the power supply system including the third track, the Operational Control Centre, the telecommunications systems and depot outfitting. This is the most important contract Ansaldo STS has won in the Middle Eastern market. This area boasts the greatest future growth rates and highlights the technological excellence achieved by the company over the years. This new contract confirms the group’s presence in Saudi Arabia, which it has already built the country’s first metro serving the world’s largest university campus. The offer submitted for the Lusail tramway, featuring the overhead line-free “TramWave” solution, is under assessment by the customer; the winner is currently expected to be announced within the first half of 2014. Again in Qatar, after having been short-listed, the tender process was launched for the Doha metro which will be made up of three lines. The winner is expected to be announced by mid 2014.

ASIA PACIFIC New orders acquired in Australia exceeded e42 million, relating to the master agreement with the Rio Tinto mining company. Australian municipal authorities are increasingly interested in high-efficiency urban transportation systems and opportunities are expected to arise in the metro sector in the coming years.

In India, certain metro projects are scheduled for the short- and medium-term and potential partnerships are being evaluated with local contractors.

SOUTH AMERICA Activities are underway for the design of metros for the main South American cities, as well as several railway projects for which the best competitive strategy is being developed. Ansaldo STS is bidding for tenders to build metros in Lima, Quito and Santiago.

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4.1.3 Sales information New orders for the reporting period totalled approximately e1,013,835 thousand, compared to e1,050,885 thousand in the corresponding period of the previous year. New orders acquired by the Signalling business unit amounted to e342,931 thousand and those of the Transportation Solutions business unit to e681,072 thousand.

Key orders acquired by the Signalling business unit in the first nine months of 2013 were as follows:

Country Project Customer Amount (€m)

Algeria ERTMS Oued Tlelat - Tlemcem Condotte 40.0 Spain Madrid - Llerida HSL Maintenance 2013-2015 ADIF 26.9 Turkey Ankara metro – order variation DLH 17.4 France Thalys V8.1 on-board equipment SNCF 13.8 France LGV SEA Ineo 13.1 Sweden ESTER - order variation Trafikverket 13.0 Italy ATCS / other CTC – order variation RFI 11.8 Italy Renewal of the S&M master agreement for ATCS Trenitalia 9.1 Sweden Metro Stockholm – Red Line order variation S L 7.2 Italy CTC Campo di Marte RFI 7.2 Germany Velaro Siemens 6.2 USA Los Angeles CTMA Microlok Replacement LACTMA 5.3 Italy Italy high-speed railways: order variation Various 5.0 France LGVEE Stage 2 RFF 4.7 USA New Jersey PATH WTC Signal Recovery Work New Jersey PATH 4.1 Australia BMA Coal Loop and Spur Line - Caval Ridge Thiess Pty Ltd 4.0 Sweden Fagersta station - Design, development, training Trafikverket 4.0 China Chengdu L1 South extension Insigma 3.9 USA Components, services and maintenance Various 46.6 Italy Components, services and maintenance Various 21.5 France Components, services and maintenance Various 17.6

Key orders acquired by the Transportation Solutions business unit in the first nine months of 2013 were as follows:

Country Project Customer Amount (€m)

Saudi Arabia Riyadh metro – package 2 ADA 505.2 Italy Rome metro line C – T3 extension Roma Metropolitane 51.3 Italy Milan Metro Line 4 (supplementary agreement) Comune di Milano 47.4 Australia Rio Tinto – RAFA orders as per master agreement Rio Tinto 41.6 Denmark Copenhagen: O&M variation Metroselskabet 25.4 Italy Genoa metro (Dinegro depot order variation) Comune di Genova 7.8

New orders for the nine months ended 30 September 2013 and 2012 (€m) and the contribution of the business units

1,014 1,051

Signalling business unit

Transportation Solutions business unit 33 44 % % 56

67 30 September 2013 30 September 2012

The order backlog at 30 September 2013 totalled e5,737,294 thousand, up e102,447 thousand over 30 September 2012. e644,677 thousand relates to projects in Libya which are currently halted.

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The order backlog of the Signalling business unit amounted to e2,392,035 thousand (e2,169,204 thousand net of transactions with the Transportation Solutions business unit).

The order backlog of the Transportation Solutions business unit amounted to e3,652,921 thousand (e3,568,090 thousand net of transactions with the Signalling business unit). Order backlog at 30 September 2013 and 2012 (€m) and the contribution of the business units

5,737 5,635 Signalling business unit

Transportation Solutions business unit 41 62 % 38 % 59 30 September 2013 30 September 2012

4.1.4 Signalling - performance by business unit

First nine First nine (€’000) months of 2013 months of 2013 Change 2012

New orders 342,931 598,456 (255,525) 893,197 Order backlog 2,392,035 2,514,164 (122,129) 2,616,684 Revenue 513,151 505,121 8,030 725,588 Operating profit (EBIT) 43,215 47,851 (4,636) 62,530 ROS 8.4% 9.5% -1.1 p.p. 8.6% Operating working capital 136,183 136,643 (460) 103,705 Research and development 21,210 22,539 (1,329) 30,566 Headcount (no.) 3,052 3,028 24 2,971

(The amounts shown in the table include inter-segment transactions).

Revenue for the nine months ended 30 September 2013 came to e513,151 thousand, compared to e505,121 thousand in the corresponding period of the previous year. The key production activities are summarised below.

ITALY RAILWAYS - HIGH SPEED The High-Speed railways programme concerning the historical sections (Turin–Milan–Bologna–Florence–Rome–Naples) is more or less finished. The work mainly related to design activities and launching initial procurement activities on the new Treviglio–Brescia section. The civil and technological stage of the “High-speed connection at Naples junction” project is nearly completed, with the testing and assessment stages, still underway, planned to be both launched by the end of the year. Moreover, following the upgrade of the Milan–Bologna high-speed line in June, the group continued to work with RFI on the subsequent implementation of such plant.

RAILWAYS - ON-BOARD ATCS/ERTMS In the On-board systems line, production mainly related to the development of ERTMS systems for the new ETR1000 high-speed trains for the Trenitalia fleet and the supply of new rolling stock to AnsaldoBreda S.p.A. and Stadler. Development and validation activities were completed for the new ERTMS 2.3.0.d. version and activities for the resumption of works on the Greek railways contract continued, as well as those related to the upgrade of Trenitalia’s ETR 500 Frecciarossa fleet.

RAILWAYS - INTERLOCKING In the Station equipment line, activities continued on certain projects, including: Rebaudengo (variations to Turin Porta Susa tracks I and II), Palermo Centrale, the Genoa junction (provision of materials) and Brescia (design). The reconfiguration of the ATCS SST (wayside systems) continued for the Turin, Genoa, Florence, Naples and Verona sections, as well as automation activities comprising both modifications and revamping of existing CTC (Centralised Traffic Control)/SCCs (command and control system) (including the Naples SCC, Florence-Rome CTC, and Bari-Lecce and Bari-Taranto CTCs) and activities related to new SCC systems (Palermo). The project for the technological upgrade of the Turin-Padua section deserves special mention, where production mainly comprised materials procurement, detailed executive design and installation of the Milano Greco control room and some stations.

MASS TRANSIT Key activities related to the completion of the design of the interface for the seven new traction units for Genoa metro and beginning the yard assembly activities for the Dinegro depot.

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Testing was carried out on the commands and controls of the new control room of the Naples metro Line 1 and the signalling part of the Dante-Garibaldi section was rolled out. Furthermore, production of the on-board and undercarriage equipment for the traction units continued for line 6 of the Naples metro, as did the roll-out of the Milan metro supervision system for the Comasina-Maciachini extension.

REST OF EUROPE (This section includes Turkey and the former Soviet republics).

In France, activities mainly related to systems (LGV SEA, Bretagne Pays de la Loire BPL and Honam) and on-board equipment (Thalys) for the country’s high-speed network, as well as the usual maintenance, assistance and production contracts for individual parts. In Sweden, the group developed production activities on the Ester project, continuing the integration of systems with the related updating of safety documentation. Production also continued on the “Red Line” project, with testing activities of lines including a demonstration to the customer and various Final Acceptance Tests (DCS of hardware related to the wayside radio antenna, central cabinet and ATS). In the United Kingdom, the completion of the Cambrian line project (the first line in Britain to be equipped with the European level 2 ERTMS standard) has been put back to this year due to additional requests of the customer with respect to a new RBC (radio block centre) version for which commissioning has been completed. Activities in Germany were halted for the POS (Paris-Ostfrankreich-Südwestdeutschland) project, pending the customer’s review of the project inputs. In relation to first deliveries and testing activities on the set-up of the Rostock-Berlin line, the customer suspended the works due to a new redefinition of the technical/contractual requirements. An extension to the scope of work has been agreed for the on-board project to supply 30 multistandard facilities for 15 Velaro high-speed trains. During the third quarter, the system design for the V2 version was reviewed. In Khosta, Russia, after providing assistance in assembling Itarus RBC and power supply systems, the communication protocol testing stage was completed (between the RBC and the customer’s system) necessary for the roll-out of the ERTMS standard in Russia (trial site). In Turkey, under the Mersin-Toprakkale project, the rolling stock and multistations are being installed on-site along the southern and northern sections. In relation to the Ankara metro, design and on-site installation base contract activities continued as well as the installation of materials for the variation for the implementation of the DTP (discontinuous train protection) system (related to the CBTC sub-system). The materials procurement stage was completed for the Gebze-Kosekoy project.

NORTH AFRICA AND THE MIDDLE EAST The Electrification Banlieue Sud de Tunis project in Tunisia is in the reliability, availability and maintainability (RAM) performance guarantee and checking stage. No direct agreement was reached with the customer (SNCFT) in negotiations aimed at avoiding the application of penalties and receiving payment for extra costs incurred. The group filed an arbitration request with the International Chamber of Commerce in Paris together with the lead contractor Alstom. In Libya, activities for the project to develop the signalling, telecommunications, security and power supply systems for the Ras Ajdir–Sirth and Al Hisha–Sabha sections have not recommenced since the upheaval started. In a letter dated 21 February 2011, the customer, a construction company of the Russian railways, Zarubezhstroytechnology (ZST), also halted a project to develop a similar system for the Sirth–Benghazi section. Negotiations are underway with this company to agree an extension to the period of the contract’s suspension. It is presently difficult to say when production for these contracts will resume, given the situation in the country. As previously reported, the currently recognised asset is more than offset by the amount of progress payments.

In the United Arab Emirates, initial activities linked to preliminary design, delivery of material and installation of the first suburban sites were completed for the Abu Dhabi project (Shah-Habshan-Ruwais Line). Commissioning activities are set to begin in the next quarter.

AMERICA Production activities focused both on long-term projects and the sale of components. With respect to the former, there was intense activity for the customer, Union Pacific, for the OTP/CADX project, in addition to ordinary maintenance activities. They also included activities for the customer, Southeastern Pennsylvania Transportation Authority (SEPTA), for the procurement, design, production, construction and installation of a Positive Train Control (PTC) system on 13 lines. Wayside and communication design and configuration, as well as activities with subsuppliers, continued in the period.

ASIA PACIFIC Production in Australia focused on the alliances with local mining companies. With respect to Newcastle, the last installations and commissioning of the period have been completed, while alliance mobilisation will be completed in the next quarter. A Caretaker agreement transition plan was approved, clarifying all pending commercial aspects.

The preliminary engineering activities for the new Roy Hill project have been approved by the customer.

Production in India mainly focused on the following projects:

KFW During the period, an extension was approved for the delivery of the project as well as a variation to the third line. Two stations and one block section were commissioned.

NORTH TPWS The installation reworking on the “Kosi Yard and BAD - FAR” sections was completed and the safety case has been sent to the customer for approval. A contractually-agreed training session for the customer’s personnel was organised and completed and an extension was also approved.

11 WorldReginfo - 173f7aa4-cf09-487c-9520-2c74eed9e2ed Performance | The market and commercial situation

SOUTH TPWS Installation and building site works were completed for both the on-board and wayside portions. The as-built and safety case documentation has been sent to the customer for approval.

CALCUTTA METRO The Calcutta metro project is still in its initial stages. The customer has officially notified a one-year delay for certain civil works; investigations are underway to better establish timing and cost implications. Engineering activities have commenced and purchase orders were finalised with telecommunications providers. The General requirements and preliminary design milestones were reached and submitted to the customer for examination.

Deliveries of equipment continue as scheduled in Korea.

In China, the ZhengXi Line project is almost complete. Minor on-board systems issues have been resolved and laboratory and on-site tests carried out together with Hollysys. The first train featuring on-board systems modifications began operating.

Operating profit (EBIT) of the Signalling business unit for the period ended 30 September 2013 came to e43,215 thousand (8.4% as a percentage of revenue), compared to e47,851 thousand (9.5% as a percentage of revenue) in the corresponding period of the previous year, due to the different mix and profitability of contracts in the two periods.

Operating working capital at 30 September 2013 was e136,183 thousand, up e32,478 thousand on e103,705 thousand at 31 December 2012, due to increased net work in progress, only partially offset by the decrease in trade receivables.

Research and development expense for the reporting period equalled e21,210 thousand, compared to e22,539 thousand in the corresponding period of the previous year.

The headcount at 30 June 2013 numbered 3,052 (3,028 employees at 30 June 2012). The increase, which is mainly related to fixed-term contracts, refers in particular to the Spanish area and reflects the acquisition of the contract for the maintenance of the railway traffic control and signalling and associated systems for the Madrid-Puigverd de Lleida high-speed line.

4.1.5 Transportation Solutions - performance by business unit

First nine First nine (€’000) months of 2013 months of 2012 Change 2012

New orders 681,072 460,084 220,988 642,712 Order backlog 3,652,921 3,410,669 242,252 3,388,258 Revenue 383,445 381,512 1,933 564,853 Operating profit (EBIT) 39,186 40,278 (1,092) 69,130 ROS 10.2% 10.6% -0.4 p.p. 12.2% Operating working capital (44,401) (85,490) 41,089 (129,106) Research and development 669 1,298 (629) 1,695 Headcount (no.) 677 615 62 631

(The amounts shown in the table include inter-segment transactions).

Revenue generated by the Transportation Solutions business unit in the nine months ended 30 September 2013 amounted to e383,445 thousand, compared to e381,512 thousand in the corresponding period of the previous year. Volumes generated in Italy accounted for 27% and those generated abroad for 73%. Production mainly related to the following projects: line C of the Rome metro, the Copenhagen metro, the Milan metro, the Genoa metro, line 6 and line 1 of the Naples metro, the Brescia metro, Riyadh, Honolulu and the Australian Rio Tinto project.

The key production activities are summarised below.

ITALY HIGH-SPEED RAILWAYS: Interconnections continued to be rolled out and works performed under warranty on those lines already in operation in the high-speed line. With respect to the Rome-Naples section, after the arbitration between TAV and IRICAV UNO consortium was concluded in June 2012, with the award in favour of IRICAV UNO, the customer has stated its intention to appeal against the award on 7 February 2013. Meanwhile, following the enforcement of the award obtained from the Rome Court, IRICAV UNO served a writ of execution to obtain payment of 65% of the amount set in the award, subject to a subsequent action to obtain payment of the residual amount. RFI and IRICAV UNO reached an agreement whereby RFI paid the requested amount and IRICAV UNO issued the corresponding guarantees. In March 2012, the arbitration between RFI/TAV and the IRICAV DUE consortium was also concluded for the Verona-Padua section; under the award, RFI/TAV shall partially compensate IRICAV DUE and the 1992 agreement is still valid and in force. RFI has already paid IRICAV DUE the amount set in the award but has not yet forwarded IRICAV DUE the definitive project for the section in order to commence the execution plan. In relation to the Saturno consortium, the executive design and procurement continue for the Treviglio-Brescia functional section.

12 WorldReginfo - 173f7aa4-cf09-487c-9520-2c74eed9e2ed Signalling and Transportation Solutions | Interim Financial Report at 30 September 2013

ALIFANA REGIONAL LINE: Following the halt of all activities related to the Piscinola-Aversa section, the group deemed it necessary to redetermine and agree a suspension of the physical activities so as not to incur extra costs. With reference to the Piscinola-Capodichino section, as the customer failed to fulfil its commitments, a review of the claims was commenced and there is a court order imposing the customer to pay outstanding receivables.

NAPLES METRO LINE 6: On 4 March, part of a building collapsed in Riviera di Chiaia, near the Arco Mirelli building site. Following the event, the public prosecutor appointed consultants identified specifically to investigate the causes of the collapse. On 7 March 2013, the public prosecutor’s office served the CEO and two employees a notice of investigation through the Naples Court in respect of the offences covered by articles 434 and 449 of the Code of criminal procedure. The causes are not yet known and all relevant investigations are being carried out. The Naples municipal authorities and the operator, Ansaldo STS S.p.A., took immediate steps to obtain authorisation to implement safety measures on the building site with a view to swiftly resuming regular activities. Following the above, the completion of works at the station is expected to be postponed by a few months. Works at the other sites continued in accordance with the work schedule. No particular issues are expected with respect to the originally agreed timetable.

ROME METRO LINE C: The execution plan for the T3 section was formally approved in February 2013 and the area acceptance report was signed at the end of March. With reference to the progress of on-site activities, in September the general contractor completed the System Demonstration activities on the Pantano-Centocelle section, which is the first to be rolled out. Activities continued to lay down the tracks of the Centocelle-Lodi section, expected to be completed by the end of October. Testing and roll-out activities will follow.

MILAN METRO LINE 5: The Bignami-Zara line commenced operations in February. No particular issues have arisen in relation to the activities to complete the Zara to Garibaldi section and its roll-out is slated for the end of 2013. System integration tests are currently underway and will be completed in mid November 2013 in order to enable the launch of the pre- operational stage. With reference to the line’s extension from Garibaldi (excluded) to the San Siro station, the executive design is substantially complete and orders for all main supplies have been issued. Testing of the signalling, SCADA (supervisory control and data acquisition) and telecommunications materials is nearing completion. Monitoring activities are scheduled to take place in the next quarter. Due to delays in delivery from the customer, there is presently a discrepancy between the final date for the work compared to the contractually-agreed programme. An agreement has been reached with the Milan municipality for a situation that, although on a smaller scale (skipping some stations), will allow the partial opening of the Garibaldi to San Siro line by the contractually-agreed date of April 2015 (in time for EXPO 2015) and the completion of all works and the opening of the complete line by October 2015.

NAPLES METRO LINE 1: The Toledo station’s second exit (Montecalvario) was opened to the public in September. Activities are simultaneously underway on the other sites that will lead to the completion of the Dante-Garibaldi section in its final configuration, except for the Municipio and Duomo stations, in the next quarter.

BRESCIA METRO: The metro became operational in March, after receiving all necessary safety certifications from the relevant ministerial bodies. Monitoring and support activities and the completion of minor activities necessary to reach the performance levels established (which will be assessed during the technical/administrative acceptance) are underway.

REST OF EUROPE THESSALONIKI METRO: The technical variation related to the CBTC signalling system are being agreed with the customer, while the Detailed Final Design has been unveiled with respect to other technologies. In May 2013, the Greek government passed a law regulating the projects financed by the European Community in order to definitively settle most of the litigation arising between 2006 and mid-2012. Consequently, all the claims related to the AIASA joint venture in respect of the design and construction of the Thessaloniki metro, will be covered by the relevant arbitration procedure. The AIASA joint venture sent the Greek government its official application to subscribe to such law in September.

COPENHAGEN METRO: The Permanent Way and Power Supply milestones were reached for Detailed Design. Preliminary Engineering and Detailed Engineering activities are underway. The civil works underway at the electricity substation, offices and workshops have been more or less completed. The structural part of the washing plant (to wash vehicles both inside and outside) are being completed, while the electrical-mechanical installations of non-system plant are underway. The factory testing of the CMC equipment is almost completed and delivery of the materials to the site has begun.

13 WorldReginfo - 173f7aa4-cf09-487c-9520-2c74eed9e2ed Performance | The market and commercial situation

NORTH AFRICA AND THE MIDDLE EAST RIYADH AUTOMATED PEOPLE MOVER SYSTEM (APM): The system has been running automatically since September 2012; at such time, following the signing of the contract, Ansaldo STS group commenced direct operation and maintenance activities. In addition to the activities necessary to consolidate system performance, the roll-out of the automated depot equipment, the installation and roll-out of the track lubrication system and the roll-out of the automatic operation of vehicle two are yet to be completed. The system integration tests will be carried out during the System Demostration.

AMERICA HONOLULU: Design activities continue, with the first two stages (definitive and interim) almost fully finalised and the third and final stage launched. After construction being halted during the finalisation of some archaeological research, the other contractors resumed all of their civil works building activities.

ASIA PACIFIC TAIPEI METRO CIRCULAR LINE: The new contractual programme based on an extension of time of 19.5 months was approved in April 2013. Detailed design activities continue. All documents were submitted for the customer’s approval and, to date, the critical documents have been approved. Manufacturing activities will commence in the next quarter, while the installation work is slated to start next year.

AUSTRALIA: Production of the period related to projects under the master agreement with Rio Tinto (RAFA). The key production activities of the reporting period related to AutoHaulTM and other traditional signalling projects.

Operating profit (EBIT) of the Transportation Solutions business unit for the nine months ended 30 September 2013 came to e39,186 thousand (10.2% as a percentage of revenue), compared to e40,278 thousand (10.6% as a percentage of revenue) in the corresponding period of the previous year, due to the greater impact of commercial costs. Operating working capital at 30 September 2013 was negative by e44,401 thousand, compared to a negative e129,106 thousand at 31 December 2012. The change is mainly due to the increase in net work in progress and the decrease in trade payables, only partly offset by the decrease in trade receivables. Research and development expense taken to profit or loss totalled e669 thousand, compared to e1,298 thousand in the corresponding period of the previous year. The headcount at 30 September 2013 numbered 677, up 62 employees on the 615 employees at 30 September 2012. This rise is mainly linked to the increase in activities on projects in Australia.

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5 Key events of and after the reporting period

Through its subsidiary Ansaldo STS España S.A.U., Ansaldo STS group won a contract during the period for the maintenance of the railway traffic control and signalling and associated systems for the Madrid-Puigverd de Lleida high-speed line. The 495 km line connects Madrid and Barcelona with the French border. The approximately e27 million contract comprises the maintenance of the signalling (level 1 and 2 ERTMS) and security systems being developed for this line.

At the beginning of April 2013, the Office National des Chemins de Fer (ONCF) awarded the project to design and supply the railway signalling centre, telecommunications and traffic control for the 183 km high-speed line that will connect Tangiers and Kenitra (along the Atlantic coast) to the consortium comprising Ansaldo STS France S.A.S. and Cofely Ineo. The total contract is worth e120 million, of which approximately e58 million pertains to Ansaldo STS group. The consortium leader, Ansaldo STS group, will perform all stages of the signalling implementation, from design to integration and roll out, supply the telecommunications equipment, next generation safety interlocking, track circuits, automatic controls and automatic train protection systems based on level 1 and 2 ERTMS, as well as the traffic control centre located in Rabat. These technologies have already been rolled out or are under development in France.

In June 2013, Ansaldo STS group won a contract to implement ERTMS signalling technologies on the new line linking Oued Tlelat to Tlemcen (Algeria). The consortium, which is made up of Condotte d’Acqua and Rizzani de Eccher (Italian companies operating in the field of civil works), engaged Ansaldo STS group to design, supply, install and roll-out ERTMS signalling systems, including all necessary equipment, of the new 130-km line linking Oued Tlelat to Tlemcen, in North West Algeria. The contract totals e40 million and has an estimated term of two and a half years. This project is part of a national plan to develop infrastructure and upgrade the railway networks of the country from east to west. As part of the contract, Ansaldo STS group will cover all the implementation stages of both ERTMS (levels 1 and 2) technology and the traditional signalling system along the tracks, bringing mixed traffic on the new line, where both passenger and goods train circulate. In addition to the signalling systems along the tracks, Ansaldo STS group will equip the Orano-based Traffic Control Centre and 15 trains. The entire system will ensure safe and reliable operations with a speed of up to 220 km/h.

Again in June 2013, Ansaldo STS group won a e13 million contract for the implementation of the level 2 ERTMS signalling technology on the new high-speed line linking Tours to Bordeaux (S.E.A line) in France. The new contract, which was assigned to Ansaldo STS group by Cofely Ineo (GDF Suez Group), together with Systra, is worth e13 million and includes an option for an additional e4.9 million. This contract follows the agreement signed in 2011 which appointed Ansaldo STS group with the provision of the entire signalling system for the new high-speed S.E.A. line. It covers the design, supply, testing and roll-out of the entire level 2 ERTMS technology, which will flank the traditional signalling system. Once completed, this project will ensure safe and reliable operations with a speed of up to 320 km/h, along the 343 km-long new line. Together with the projects in Eastern Europe and those for the high-speed railway in the Loire Valley, this project confirms Ansaldo STS’s leading position in level 2 ERTMS systems in France. Ansaldo STS’s global leadership in the railway and mass transport sector continues to grow, confirming its ability to implement projects from scratch or update existing networks, with respect to both signalling systems and turn-key programmes.

At the end of July, His Royal Highness Prince Khalid bin Bandar bin Abdulaziz Al Saud, the Governor of the Riyadh Province, Chairman of the Ministerial Committee for the Riyadh Public Transport Project and the High Commission for the Development of Riyadh, in the presence of the ministers of the commission and the country’s most important authorities, entrusted Ansaldo STS group, as part of the ArRiyadh New Mobility (ANM) consortium, with the construction of the longest line (40.7km) of the new Riyadh metro, Line 3 (Red Line): Madina Al Munawara – Amir Saad bin Abdul Rahman Al Awal Road. The winning consortium for this line, organised by Ansaldo STS, includes Salini- Impregilo, Larsen & Toubro, Nesma, for the civil works, Ansaldo STS, for the technological part, and Bombardier, for the supply of vehicles. The contract is worth approximately USD680 million for Ansaldo STS. In addition, the group has secured an option for the subsequent 10 years’ maintenance (worth roughly USD249 million). The implementation stage is expected to last five years. The consortium has been assigned works for a total investment of roughly USD6 billion, including the construction of two large landmark stations, “Qasr Al Hokom” and “Western Station”. The design of the stations is currently being finalised by two internationally-renowned architecture studios, thus further boosting the overall value of the contract for Ansaldo STS. Ansaldo STS’s work on the contract entails the full technological integration of the signalling systems, ATC (Automation Train Control) with the CBTC (Communication Based Train Control) system, the power supply system including the third track, the Operational Control Centre, the telecommunications systems and depot outfitting. This is the most important contract Ansaldo STS has won in the Middle Eastern market. This area boasts the greatest future growth rates and highlights the technological excellence achieved by the company over the years. This new contract confirms the group’s presence in Saudi Arabia, which it has already built the country’s first metro serving the world’s largest university campus.

15 WorldReginfo - 173f7aa4-cf09-487c-9520-2c74eed9e2ed Directors’ report at 30 September 2013 | Titoloxxxxxxxxx

16 WorldReginfo - 173f7aa4-cf09-487c-9520-2c74eed9e2ed Signalling and Transportation Solutions | Interim Financial Report at 30 September 2013

Condensed interim consolidated fi nancial statements as at and for the nine months ended 30 September 2013

17 WorldReginfo - 173f7aa4-cf09-487c-9520-2c74eed9e2ed Condensed interim consolidated financial statements | Consolidated Statement of comprehensive income

6 Condensed interim consolidated financial statements 6.1 Income statement

For the first nine months of of which, of which, (€’000) 2013 related parties 2012 related parties

Revenue 866,755 142,176 873,529 130,234 Other operating income 18,411 112 23,678 164 Purchases (181,050) (6,847) (174,620) (3,304) Services (369,648) (49,097) (382,094) (46,612) Personnel expense (234,160) - (241,049) - Amortisation, depreciation and impairment losses (13,060) - (15,347) - Other operating expense (12,763) (168) (11,534) (67) Changes in finished goods, work-in-progress and semi-finished products 2,144 - 4,853 - (-) Internal work capitalised 1,693 - 170 -

Operating profit (EBIT) 78,322 77,586

Financial income 13,915 210 13,408 116 Financial expense (16,291) (208) (22,262) (45) Share of profits (losses) of equity-accounted investees (116) - 3,530 -

Pre-tax profit 75,830 72,262

Income taxes (25,093) - (26,692) - Profit/(loss) from non-current assets held for sale 92 - - -

Profit for the period 50,829 45,570

attributable to the owners of the parent 51,017 - 45,638 - attributable to non-controlling interests (188) - (68) - Earnings per share Basic and diluted 0.31 0.28*

* Recalculated following the bonus issue of 15 July 2013.

6.2 Statement of comprehensive income

For the first nine months of (€’000) 2013 2012

Profit for the year 50,829 45,570

Other comprehensive income Actuarial gains (losses) on defined benefit plans 737 (2,555) - Change in fair value of cash flow hedges 1,972 38 - Income tax on other comprehensive income 176 1,334 - Exchange rate gains (losses) (7,738) 659

Other comprehensive expense, net of taxes (4,853) (524)

Total comprehensive income for the period 45,976 45,046

Attributable to: - owners of the parent 46,027 45,077 - non-controlling interests (51) (31)

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6.3 Statement of financial position

of which, of which, (€’000) 30.09.2013 related parties 31.12.2012 related parties

ASSETS Non-current assets Intangible assets 49,773 - 51,062 - Property, plant and equipment 88,834 - 91,099 - Equity investments 39,062 - 37,735 - Loans and receivables 27,367 6,055 22,345 6,779 Deferred tax assets 39,718 - 38,127 - Other non-current assets 22,518 - 24,628 -

267,272 264,996

Current assets Inventories 130,921 - 131,584 - Contract work in progress 404,199 - 313,096 - Trade receivables 625,318 112,880 748,747 168,966 Tax assets 23,510 - 25,081 - Loan assets 88,387 22,965 173,520 120,533 Derivatives 5,676 - 4,627 - Other current assets 63,989 1,525 57,061 1,555 Cash and cash equivalents 103,184 - 146,837 -

1,445,184 1,600,553

Non-current assets held for sale 92 -

Total assets 1,712,548 1,865,549

EQUITY AND LIABILITIES Equity Share capital 90,000 - 79,998 - Reserves 397,905 - 388,741 - Equity attributable to the owners of the parent 487,905 468,739 Equity attributable to non-controlling interests 374 - 427 -

Total equity 488,279 469,166

Non-current liabilities Employee benefits 30,295 - 30,724 - Deferred tax liabilities 9,535 - 8,102 - Other current liabilities 9,611 - 10,839 -

49,441 49,665

Current liabilities Progress payments and advances from customers 668,223 - 710,720 - Trade payables 397,942 53,423 500,563 58,741 Loans and borrowings 6,203 - 18,375 - Tax liabilities 6,601 - 5,727 - Provisions for risks and charges 14,276 - 15,842 - Derivatives 5,861 - 4,108 - Other current liabilities 75,722 397 91,383 397

1,174,828 1,346,718

Total liabilities 1,224,269 1,396,383

Total liabilities and equity 1,712,548 1,865,549

19 WorldReginfo - 173f7aa4-cf09-487c-9520-2c74eed9e2ed Condensed interim consolidated financial statements | Statement of cash flows

6.4 Statement of cash flows

For the first nine months of of which, of which, (€’000) 2013 related parties 2012 related parties

Cash flows from operating activities: Gross cash flows from operating activities 97,492 - 86,827 - Change in working capital (124,078) 50,527 (117,809) 51,163 Changes in other operating assets and liabilities (42,383) (56) (30,626) (5,012)

Cash flows used in operating activities (68,969) (61,608)

Cash flows from investing activities: Acquisitions/coverage of losses of companies, net of cash acquired 2,697 - (375) - Investments in property, plant and equipment and intangible assets (6,617) - (7,927) - Sales of property, plant and equipment and intangible assets 33 - 5,528 - Sales of equity investments - - 846 - Changes in non-current financial assets 33 - - - Cash flows used for strategic transactions (3,431) - (216) - Other investing activities - - - -

Cash flows used in investing activities (7,285) (2,144)

Cash flows from financing activities: Net change from other financing activities 64,246 94,840 28,615 (42,889) Share capital increases - - 2 - Other financing activities (2) - 30,756 - Dividends paid (28,800) - (28,000) -

Cash flows generated by financing activities 35,444 31,373

Net decrease in cash and cash equivalents (40,810) - (32,379) - Exchange rate gains (losses) (2,843) - 1,033 - Opening cash and cash equivalents 146,837 - 160,928 -

Closing cash and cash equivalents 103,184 129,582

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6.5 Statement of changes in equity

Changes in equity are shown in the following table:

Equity Equity Retained attributable attributable earnings and to the to non- Share consolidation Other owners of controlling Total (€’000) capital reserves reserves the parent interests equity

Equity at 1 January 2012 69,998 301,670 51,346 423,014 1,122 424,136

Change in consolidation scope - 94 678 772 (785) (13) Change in consolidation reserves - - - - (2) (2) Net change in stock grant reserve - - 1,472 1,472 - 1,472 Other comprehensive expense net of taxes - (2,555) 1,994 (561) 37 (524) Dividends (28,000) (28,000) - (28,000) Net change in treasury shares 2 - - 2 - 2 Bonus issue of 20,000,000 shares 10,000 - (10,000) - - - Profit for the period ended 30 September 2012 - 45,638 - 45,638 (68) 45,570

Equity at 30 September 2012 80,000 316,847 45,490 442,337 304 442,641

Equity at 1 January 2013 79,998 347,008 41,733 468,739 427 469,166

Change in consolidation scope - (103) - (103) - (103) Net change in stock grant reserve - - 2,040 2,040 - 2,040 Other changes 2 2,150 (2,150) 2 - 2 Other comprehensive expense net of taxes - - (4,990) (4,990) 137 (4,853) Dividends - (28,800) - (28,800) - (28,800) Bonus issue of 20,000,000 shares 10,000 - (10,000) - - - Profit for the period ended 30 September 2013 - 51,017 - 51,017 (188) 50,829

Equity at 30 September 2013 90,000 371,272 26,633 487,905 374 488,279

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7 Notes to the condensed interim consolidated financial statements at 30 September 2013 7.1 General information

Ansaldo STS is a company limited by shares with its registered office in Via Paolo Mantovani 3-5, Genoa, and a branch in Via Argine 425, Naples. It has been listed on the Star segment of the stock exchange managed by Borsa Italiana S.p.A. since 29 March 2006 and included in the FTSE MIB index since 23 March 2009. Ansaldo STS S.p.A. is a subsidiary of Finmeccanica S.p.A., with its registered office in Piazza Monte Grappa 4, Rome, which manages and coordinates the company. On 15 July 2013, the company carried out the fourth instalment of the bonus issue approved by the shareholders in their extraordinary meeting of 23 April 2010. Following the issue of this fourth instalment, the company’s share capital now equals €90,000,000.00, comprising 180,000,000 ordinary shares of a nominal amount of €0.50 each. Ansaldo STS group operates internationally in the design, construction, marketing and sales of solutions, systems, products, components and services in the above-ground railway and metro segment Signalling and Transportation Solutions business units. Ansaldo STS S.p.A., as parent, also exercises industrial and strategic guidance and control, coordinating the activities of its operating subsidiaries (together, “Ansaldo STS group” or the “group”), which operate in the above industrial sectors.

7.2 Basis of preparation

Ansaldo STS group’s interim financial report at 30 September 2013 is drafted in accordance with the International Financial Reporting Standards (IFRS) issued by the International Accounting Standards Board (IASB), endorsed by the European Union pursuant EC regulation no. 1606/202 and in force at the reporting date, and the interpretations issued by the International Financial Reporting Interpretations Committee (IFRIC) and the Standing Interpretations Committee (SIC) applicable at such date. The acronym “IFRS” covers all the above standards and interpretations. Specifically, these financial statements have been drafted in accordance with IAS 34 “Interim Financial Reporting”, issued by the International Accounting Standard Board (IASB) and are comprised of an income statement, a statement of comprehensive income, a statement of financial position, a statement of cash flows, a statement of changes in equity and the notes thereto. As per IAS 34 “Interim financial reporting”, the notes to the condensed interim consolidated financial statements do not include all disclosures required for annual financial statements, as they refer only to those items that are essential to understand the group’s financial position, results of operations and cash flows given their amount, breakdown or changes therein. These condensed interim consolidated financial statements should, therefore, be read in conjunction with the 2012 annual consolidated financial statements. The accounting policies used for these condensed interim consolidated financial statements are unchanged from those of the 2012 annual consolidated financial statements, except for those which apply specifically to interim financial statements and the interim financial report at 30 September 2012. As described in paragraph 7.2.1, the new standards which became effective as of 1 January 2013 had no significant effect on this interim financial report. Specifically, as detailed later on, starting from 1 January 2013, the group has adopted IAS 19 revised.

The condensed interim consolidated financial statements of Ansaldo STS group at 30 September 2013 were approved and authorised for publication by the board of directors in accordance with ruling legislation on 4 November 2013.

Amounts are shown in thousands of euros unless stated otherwise.

The condensed interim consolidated financial statements were reviewed by KPMG S.p.A..

7.2.1 Effects of amendments to the IFRS The group has adopted the following new standards with effect from 1 January 2013. • IAS 1 Amendment – Presentation of financial statements: as a result of this amendment, captions related to other comprehensive income are now broken down between those that can or cannot be reclassified to profit or loss; • IFRS 7 Amendment – Financial instruments - Disclosures: this standard requires disclosure about the effects or the potential effects of offsetting financial assets against financial liabilities on the statement of financial position; • IFRS 13 – Fair value measurement: it sets out in a single standard a framework for measuring fair value; • IAS 19 Amendment – Employee benefits: this standard eliminates the use of the “corridor” approach and instead mandates recognition of all actuarial gains and losses in other comprehensive income, as already elected by the group. Moreover, past service cost must be recognised immediately. Finally, the interest cost, net of expected return on plan assets, was replaced with a net interest cost, calculated by applying the interest rate to the net liability. The retrospective application of the revised standard did not entail the restatement of the comparative figures shown in the financial statements as the group has no plan assets.

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7.3 Consolidation scope

Ansaldo STS group’s condensed interim consolidated financial statements at 30 September 2013 include the interim financial statements at 30 September 2013 of the companies/entities in the consolidation scope (the “consolidated entities”) drafted pursuant to the IFRS applied by Ansaldo STS group. The consolidated entities are listed below, showing the group’s related direct or indirect interest therein: Companies consolidated on a line-by-line basis SHARE INVESTMENT CAPITAL INVESTMENT NAME TYPE REGISTERED OFFICE (/000) CURRENCY %

ANSALDO STS AUSTRALIA PTY LTD Direct Eagle Farm (Australia) 5,026 AUD 100 ANSALDO STS SWEDEN AB Direct Solna (Sweden) 4,000 SEK 100 ANSALDO STS UK LTD Direct London (United Kingdom) 1,000 GBP 100 ANSALDO STS IRELAND LTD Direct Tralee (Ireland) 100 EUR 100 ACELEC Société par actions simplifiée Indirect Les Ulis (France) 168 EUR 100 ANSALDO STS ESPAÑA SA Indirect Madrid (Spain) 1,500 EUR 100 ANSALDO STS BEIJING LTD Indirect Beijing (China) 837 EUR 80 ANSALDO STS HONG KONG LTD Indirect Hong Kong (China) 100 HKD 100 ANSALDO STS FRANCE Société par actions simplifiée Direct Les Ulis (France) 5,000 EUR 100 UNION SWITCH & SIGNAL INC Indirect Greenville (Delaware USA) 1 USD 100 ANSALDO STS MALAYSIA SDN BHD Indirect Petaling Jaya (Malaysia) 3,000 MYR 100 ANSALDO STS CANADA INC Indirect Kingstone (Canada) - CAD 100 ANSALDO STS USA INC Direct Wilmington (Delaware USA) 0,001 USD 100 ANSALDO STS USA INTERNATIONAL CO Indirect Wilmington (Delaware USA) 1 USD 100 ANSALDO STS USA INT. PROJECTS CO Indirect Wilmington (Delaware USA) 25 USD 100 ANSALDO STS TRANSPORTATION SYSTEMS INDIA PVT LTD Indirect Bangalore (India) 3,012,915 INR 100 ANSALDO STS DEUTSCHLAND GMBH Direct Munich (Germany) 26 EUR 100 ANSALDO RAILWAY SYSTEM TRADING (BEIJING) LTD Direct Beijing (China) 1,500 USD 100 ANSALDO STS-SINOSA RAIL SOLUTIONS SOUTH AFRICA (PTY) LTD Indirect Frankenwald (South Africa) 2 ZAR 51 ANSALDO STS SOUTHERN AFRICA PTY LTD Indirect Gaborone (Botswana) 0.1 BWP 100

Companies consolidated on a proportionate basis SHARE INVESTMENT CAPITAL INVESTMENT NAME TYPE REGISTERED OFFICE (/000) CURRENCY %

BALFOUR BEATTY ANSALDO SYSTEMS JV SDN BHD Indirect Kuala Lumpur (Malaysia) 6,000 MYR 40 KAZAKHSTAN TZ-ANSALDO STS ITALY LLP1 Direct Astana (Kazakhstan) 22,000 KZT 49

1. In its meeting of 26 June 2013, Ansaldo STS’s board of directors approved the dissolution of the JV with JSC Remlokomotiv and authorised the early closure and liquidation of “Kazakhstan TZ-Ansaldo STS Italy LLP”. Based on the information available to directors, to date, the above transactions will not generate significant liabilities for Ansaldo STS group.

Companies measured using the equity method SHARE INVESTMENT CAPITAL INVESTMENT NAME TYPE REGISTERED OFFICE (/000) CURRENCY %

ECOSEN CA (VENEZUELA) Indirect Caracas (Venezuela) 1,310 VBF 48 ALIFANA SCARL Direct Naples (Italy) 26 EUR 65.85 ALIFANA DUE SCARL Direct Naples (Italy) 26 EUR 53.34 PEGASO SCRL Direct Rome (Italy) 260 EUR 46.87 Metro 5 S.p.A. Direct Milan (Italy) 53,300 EUR 24.6 Metro Brescia S.r.l. Direct Brescia (Italy) 4,020 EUR 19.796 INTERNATIONAL METRO SERVICE S.r.l. Direct Milan (Italy) 700 EUR 49

During the first half of the year, no significant changes occurred in the consolidation scope. Following the signing of a preliminary sale agreement between the subsidiary Ansaldo STS France S.A.S. and an independent party, the investment in Ecosen CA (Venezuela) was reclassified to non-current assets held for sale.

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7.4 Exchange rates adopted

The following exchange rates were adopted to translate the foreign currency financial statements and balances for the reporting period and the corresponding period of the previous year:

Average rate for Average rate for the nine-month the nine-month Spot rate at period ended Spot rate at period ended 30.09.2013 30.09.2013 30.09.2012 30.09.2012

USD 1.34990 1.31674 1.28450 1.28177 CAD 1.39090 1.34806 1.26330 1.28458 GBP 0.84180 0.85197 0.79490 0.81235 HKD 10.46730 10.21489 9.96000 9.94551 SEK 8.65540 8.57735 8.49980 8.73597 AUD 1.43900 1.34546 1.24210 1.23916 INR 83.80000 75.69362 68.74000 68.06659 MYR 4.33910 4.12474 3.96110 3.97093 BRL 3.00340 2.78910 2.61180 2.45509 CNY 8.26220 8.12188 8.09610 8.11083 VEB 8,493.71000 7,811.04667 5,516.48000 5,095.67667 BWP 11.50270 10.96662 9.81908 9.64440 ZAR 13.47250 12.48988 10.57000 10.31167 KZT 207.29600 199.61395 192.75200 190.55174 AED 4.95813 4.83632 N/A N/A KRW 1,454.27000 1,456.57545 N/A N/A JPY 133.41000 127.22820 99.82000 101.76225

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8 Segment reporting 8.1 Primary reporting format

Reference should be made to paragraph 1.2 Key performance indicators of the directors’ report for information on the indicators that management uses to assess the performance of the group.

The group operates in two business segments: via the Signalling business unit, in the above-ground railway and metro segment and, via the Transportation Solutions business unit, in the transportation systems segment. Reference should be made to the directors’ report for a more in-depth analysis of the main programmes, outlook and revenue for each business unit. The results of the business units for the reporting period, compared to those of the corresponding period of the previous year, are as follows: Operating profit (loss) by business unit Transportation Other First nine months of 2013 (€’000) Signalling Solutions activities Eliminations Total Revenue 513,151 383,445 - (29,841) 866,755 Other operating income 4,058 8,407 19,702 (13,756) 18,411 External costs (306,183) (289,416) 18,286 30,452 (546,861) Personnel expense (157,062) (56,271) (20,827) - (234,160) Other operating expense (4,702) (4,848) (16,969) 13,756 (12,763) Amortisation, depreciation and impairment losses (6,047) (2,131) (4,882) - (13,060) Operating profit (loss) 43,215 39,186 (4,690) 611 78,322

Transportation Other First nine months of 2012 (€’000) Signalling Solutions activities Eliminations Total Revenue 505,121 381,512 - (13,104) 873,529 Other operating income 11,021 6,707 19,509 (13,559) 23,678 External costs (295,399) (291,100) 21,166 13,642 (551,691) Personnel expense (163,693) (50,854) (26,502) - (241,049) Other operating expense (3,658) (2,097) (19,339) 13,560 (11,534) Amortisation, depreciation and impairment losses (5,541) (3,890) (5,916) - (15,347) Operating profit (loss) 47,851 40,278 (11,082) 539 77,586

Working capital by business unit Transportation Other First nine months of 2013 (€’000) Signalling Solutions activities Eliminations Total Inventories 115,890 42,644 - (27,613) 130,921 Work in progress, net of progress payments and advances from customers (118,744) (172,893) - 27,613 (264,024) Trade receivables 338,301 354,800 741 (68,524) 625,318 Trade payables (190,072) (265,106) (11,288) 68,524 (397,942) Provisions for risks and charges (9,192) (3,846) (1,238) - (14,276) Operating working capital 136,183 (44,401) (11,787) - 79,997 Other assets, net - - 4,991 - 4,991 Net working capital 136,183 (44,401) (6,796) - 84,988

Transportation Other 31.12.2012 (€’000) Signalling Solutions activities Eliminations Total Inventories 112,250 45,740 525 (26,931) 131,584 Work in progress, net of progress payments and advances from customers (210,720) (213,834) - 26,931 (397,624) Trade receivables 408,054 397,877 5,865 (63,049) 748,747 Trade payables (195,121) (355,042) (13,449) 63,049 (500,563) Provisions for risks and charges (10,758) (3,847) (1,237) - (15,842) Operating working capital 103,705 (129,106) (8,296) - (33,698) Other liabilities, net - - (14,449) - (14,449) Net working capital 103,705 (129,106) (22,745) - (48,147)

25 WorldReginfo - 173f7aa4-cf09-487c-9520-2c74eed9e2ed Segment reporting | Secondary reporting format

8.2 Secondary reporting format

A breakdown of revenue by geographical segment is as follows:

First nine First nine (€’000) months of 2013 months of 2012

Italy 231,536 300,214 Rest of Western Europe 188,303 170,367 North America 305,340 87,638 Asia/Pacific 106,514 288,859 Other assets 35,062 26,451

866,755 873,529

A breakdown of investments by geographical segment is as follows:

(€’000) 30.09.2013 30.09.2012

Italy 3,864 3,832 Rest of Western Europe 2,457 945 North America 1,449 1,582 Asia/Pacific 727 1,438 Other assets - 94

8,497 7,891

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9 Notes to the condensed interim consolidated financial statements at 30 september 2013

The reclassified income statement, reclassified statement of financial position, reclassified net financial position and reclassified statement of cash flows follow to provide further disclosure on the group’s financial position, results of operations and cash flows.

The group’s performance for the reporting period and corresponding period of the previous year is shown in the following table:

First nine months of Reclassified income statement( €’000) 2013 2012

Revenue 866,755 873,529

Purchases and personnel expense (*) (780,204) (793,421) Amortisation, depreciation and impairment losses (13,060) (15,347) Other net operating income (**) 3,194 12,192 Change in work-in-progress, semi-finished products and finished goods 2,144 4,853

Adjusted operating profit 78,829 81,806

Restructuring costs (507) (4,220)

Operating profit (EBIT) 78,322 77,586

Net financial expense (2,492) (5,324) Income taxes (25,093) (26,692)

Profit for the period before other non-current assets held for sale 50,737 45,570

Non-current assets held for sale 92 -

Profit for the period 50,829 45,570

attributable to the owners of the parent 51,017 45,638 attributable to non-controlling interests (188) (68) Earnings per share Basic and diluted 0.31 0.28^

^ Recalculated following the bonus issue of 15 July 2013.

Notes to the reconciliation between the reclassified income statement and the income statement included in the consolidated financial statements: (*) Includes the captions “Purchases”, “Services”, “Personnel expense” (net of restructuring costs) and “Accrual to (use of) the provision for expected losses to complete contracts” net of “Internal work capitalised”. (**) Includes the net amount of “Other operating income” and “Other operating expense” (net of restructuring costs, impairment losses and accruals to (use of) the provision for expected losses to complete contracts).

Revenue for the reporting period decreased e6,774 thousand to e866,755 thousand, from e873,529 thousand in the corresponding period of the previous year. Revenue by business unit is discussed in the directors’ report. “Purchases and personnel expense” came to e780,204 thousand, compared to e793,421 thousand in the corresponding period of the previous year, showing a decrease of e13,217 thousand. The operating profit of e78,322 thousand is largely in line with that for the first nine months of 2012 (e77,586 thousand). The profit for the period of e50,829 thousand rose by e5,259 thousand on the same period of the previous year (e45,570 thousand), mainly as a result of lower financial expense and the smaller tax impact.

27 WorldReginfo - 173f7aa4-cf09-487c-9520-2c74eed9e2ed Notes to the condensed interim consolidated financial statements at 30 september 2013

Other operating income

First nine months of (€’000) 2013 2012

R&D grants 2,220 1,053 Gains on sales of property, plant and equipment and intangible assets 29 4,462 Reversals of impairment losses on loans and receivables - 152 Reversals of provisions for risks and charges 478 2,791 Royalties 377 623 Financial income and exchange rate gains on operating items 4,819 4,400 Tax asset for R&D 1,844 2,579 Other operating income 8,532 7,454

Other third party operating income 18,299 23,514

Other related party operating income 112 164

Total other operating income 18,411 23,678

Other third party operating income amounted to e18,299 thousand, down e5,215 thousand compared to e23,514 thousand in the corresponding period of the previous year. The decrease is mainly related to the reduced release of the provision for risks and charges and the gains on sales of non-current assets in the previous year. In 2012, the American subsidiary, Ansaldo STS USA INC., recognised a gain on the sale of intangible assets (mainly software) to a local business.

Purchases and services

First nine months of (€’000) 2013 2012

Materials 175,982 171,861 Change in inventories (1,779) (545) Services 299,606 317,994 Rentals and operating leases 20,945 17,488

Total third party purchases and services 494,754 506,798

Total related party purchases and services 55,944 49,916

Total purchases and services 550,698 556,714

Total purchases and services for the first nine months of 2013 fell slightly by e6,016 thousand over the corresponding period of the previous year, in line with the fall in revenue.

Personnel expense

First nine months of (€’000) 2013 2012

Wages and salaries 189,341 193,626 Stock grant plans 2,161 1,644 Social security and pension contributions 38,222 37,699 Italian post-employment benefits 179 178 Other defined benefit plans 388 386 Other defined contribution plans 2,813 2,793 Restructuring costs 507 4,172 Other costs 704 551

Total personnel expense 234,160 241,049

Total personnel expense amounts to e234,160 thousand, down e6,889 thousand on the same period of the previous year (e241,049 thousand), mainly as a consequence of reduced restructuring costs.

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Amortisation, depreciation and impairment losses

First nine months of (€’000) 2013 2012

Amortisation and depreciation: - intangible assets (no goodwill) 3,929 3,899 - property, plant and equipment 7,428 7,496 - Depreciation of leased assets - 111

Total amortisation and depreciation 11,357 11,506

Impairment losses: - current loans and receivables 1,703 3,776 - other assets - 65

1,703 3,841

Total amortisation, depreciation and impairment losses 13,060 15,347

Amortisation/depreciation and impairment losses amount to e13,060 thousand, down e2,287 thousand on the same period of 2012, mainly following the smaller impairment losses on loans and receivables recognised by the parent, Ansaldo STS S.p.A..

Other operating expense

First nine months of (€’000) 2013 2012

Accruals to the provisions for risks and charges 485 781 Restructuring costs paid - other than personnel expense - 96 Membership fees 692 677 Losses on sales of property, plant and equipment and intangible assets 10 281 Losses to complete contracts (2,454) - Exchange rate losses on operating items 5,629 4,035 Interest and other operating expense 4,538 1,580 Indirect taxes 1,954 1,837 Other operating expense 1,741 2,180

Total other operating expense 12,595 11,467

Other related party operating expense 168 67

Total 12,763 11,534

Other operating expense equalled e12,763 thousand, up e1,229 thousand on the same period of the previous year, mainly due to greater interest and exchange rate losses which were offset only in part by losses to complete contracts.

Internal work capitalised First nine months of (€’000) 2013 2012

Internal work capitalised (1,693) (170)

Internal work capitalised mainly relates to the parent, Ansaldo STS S.p.A., with respect to the Satellite and Rail Telecom project to develop satellite technologies for new railway signalling systems. This project is co-financed by the European Space Agency and the Galileo Supervisory Authority.

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Net financial expense

Net financial expense is detailed in the following table:

First nine months of 2013 2012 (€’000) Income Expense Net Income Expense Net

Interest and fees 795 854 (59) 1,756 4,821 (3,065) Exchange rate gains and losses 11,492 11,811 (319) 10,451 12,311 (1,860) Fair value gains and losses 729 1,208 (479) 741 2,063 (1,322) Interest on Italian post-employment benefits - 366 (366) - 537 (537) Interest on other defined benefit plans - 270 (270) - 338 (338) Other financial income and expense 689 1,574 (885) 344 2,147 (1,803)

Total net financial expense 13,705 16,083 (2,378) 13,292 22,217 (8,925)

Net related party financial income 210 208 2 116 45 71

Total 13,915 16,291 (2,376) 13,408 22,262 (8,854)

The e6,478 thousand change is attributable to smaller interest and fees recognised by the Indian subsidiary and to the effect of exchange rate and fair value gains and losses on hedging transactions:

Share of profits (losses) of equity-accounted investees

First nine months of 2013 2012 (€’000) Income Expense Net Income Expense Net Share of profits (losses) of equity-accounted investees - 116 (116) 3,530 - 3,530

Total - 116 (116) 3,530 - 3,530

The share of profits (losses) of equity-accounted investees of e116 thousand mainly comprises the loss of Metro 5 S.p.A..

Income taxes

Income taxes came to e25,093 thousand and are made up as follows:

First nine months of (€’000) 2013 2012

IRES 5,107 6,953 IRAP 3,123 3,653 Other foreign taxes 16,709 12,130 Prior year taxes (830) - Net deferred tax expense 984 3,956

Total 25,093 26,692

Income taxes decreased by an overall e1,599 thousand compared to the corresponding period of the previous year. Specifically, the decrease is due to the parent’s smaller taxable base. The increase in other foreign taxes is offset by that of the net deferred tax expense in profit or loss. The effective tax rate is equal to 33.1% in the reporting period compared to e36.9% in the corresponding period of the previous year. The percentage decrease is due to the smaller impact of the loss of the Indian subsidiary on the taxable base for the purposes of calculating the tax rate.

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Reclassified statement of financial position

The group’s reclassified statement of financial position as at 30 September 2013 is set out below:

Statement of financial position( €’000) 30.09.2013 31.12.2012

Non-current assets 267,272 264,996 Non-current liabilities (49,441) (49,665)

217,831 215,331

Inventories 130,921 131,584 Contract work in progress 404,199 313,096 Trade receivables 625,318 748,747 Trade payables (397,942) (500,563) Progress payments and advances from customers (668,223) (710,720)

Working capital 94,273 (17,856)

Provisions for risks and charges (14,276) (15,842) Other assets/(liabilities), net (*) 4,991 (14,449)

Net working capital 84,988 (48,147)

Net invested capital 302,819 167,184

Equity attributable to the owners of the parent 487,905 468,739 Equity attributable to non-controlling interests 374 427

Equity 488,279 469,166

Non-current assets held for sale 92 -

Net financial position (185,368) (301,982)

Notes to the reconciliation between the reclassified statement of financial position and the statement of financial position included in the consolidated financial statements: (*) Includes “Tax assets”, “Other current assets” and “Derivatives assets”, net of “Tax liabilities”, “Other current liabilities” and “Derivatives liabilities”.

Non-current assets totalled e267,272 thousand at 30 September 2013, as follows:

(€’000) 30.09.2013 31.12.2012

Intangible assets 49,773 51,062 Property, plant and equipment 88,834 91,099 Equity investments 39,062 37,735 Loans and receivables 27,367 22,345 Deferred tax assets 39,718 38,127 Other non-current assets 22,518 24,628

Total 267,272 264,996

Specifically: • intangible assets mainly relate to the group’s goodwill (e34,569 thousand). Acquisitions of the period mainly relate to the parent, Ansaldo STS S.p.A.. Of these, e651 thousand refers to the purchase of software, licences and trademarks and assets under development, while e690 thousand to acquisitions made by Ansaldo STS France S.A.S., Ansaldo STS USA Inc. and Ansaldo STS Australia PTY LTD. With respect to assets under development, internal work capitalised during the period amounts to e1,391 thousand, of which e1,350 thousand refers to the parent, Ansaldo STS S.p.A., specifically the “Satellite and Rail Telecom” project to develop satellite technologies for new railway signalling systems. This project is co-financed by the European Space Agency and the Galileo Supervisory Authority. • Property, plant and equipment include the residual value of the building located in Genoa, Via Mantovani 3/5, owned by the parent which it purchased from the ultimate parent Finmeccanica S.p.A. in December 2005, equal to e50,064 thousand. Following the application of the component approach to this amount, in accordance with IAS 16, e9,353 thousand was reclassified to “Land”. Depreciation for the period amounts to e7,428 thousand, while acquisitions of the period amount to e5,462 thousand and mainly relate to the parent, Ansaldo STS S.p.A., and the subsidiaries, Ansaldo STS USA Inc. and Ansaldo STS France S.A.S., for the purchase of assets for the maintenance of production equipment. • Investments amount to e39,062 thousand at 30 September 2013, of which e16,299 thousand equity accounted and e22,763 thousand measured at cost. Equity-accounted investments rose by e1,290 thousand on 31 December 2012 (e15,009 thousand),

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mainly as a consequence of the subscription of the equity investment in Metro Brescia S.r.l. (e594 thousand) and Metro 5 S.c.p.A. (e812 thousand). The e37 thousand increase in investments measured at cost is due to the subscription of the investments in Società di Progetto Consortile per azioni M4 (e19 thousand), Società Consortile D.A.T.T.I.LO (Distretto Alta Tecnologia Trasporti e Logistica) (e14 thousand) and Società Consortile Top-In (Tecnologie elettroniche per l’industria) (e4 thousand). • Other non-current assets amount to e22,518 thousand and mainly relate to the non-current portion of the costs for Finmeccanica S.p.A.’s acquisition of the licence to use the “Ansaldo” trademark for a 20-year period. On 27 December 2005, Ansaldo STS S.p.A. agreed a contract with Finmeccanica allowing the latter to use the “Ansaldo” trademark on the market. Against the advance payment of e32,213 thousand, this contract gives Finmeccanica the exclusive right to use this trademark for a 20-year period within the group’s business segments.

Non-current liabilities of e49,441 thousand at the reporting date are made up as follows:

(€’000) 30.09.2013 31.12.2012

Employee benefits 30,295 30,724 Deferred tax liabilities 9,535 8,102 Other non-current financial liabilities 9,611 10,839

Total 49,441 49,665

• Employee benefits amount to e30,295 thousand and are substantially in line with the e30,724 balance at 31 December 2012. • Deferred tax liabilities of e9,535 thousand are largely in line with the 31 December 2012 figure.

Inventories totalled e130,921 thousand at the reporting date, as follows:

(€’000) 30.09.2013 31.12.2012

Raw materials, consumables and supplies 26,740 24,892 Work-in-progress and semi-finished products 19,632 17,980 Finished goods 11,138 11,104 Advances to suppliers 73,411 77,608

Total 130,921 131,584

Inventories are substantially in line with 2012. The increase in raw materials, consumables and supplies, along with work-in-progress and semi-finished products, of Ansaldo STS France S.A.S. and Ansaldo STS Sweden A.B. is offset by the decrease in advances to suppliers of the parent, Ansaldo STS S.p.A., and the subsidiaries of the Asia/Pacific area, specifically, Balfour Beatty Ansaldo Syst. JV SDN BHD.

Contract work in progress, net are negative by e264,024 thousand and are as follows:

(€’000) 30.09.2013 31.12.2012

Advances from customers (47,707) (40,036) Progress payments (1,565,167) (1,572,751) Work in progress 2,026,526 1,934,916 Provision for expected losses to complete contracts (9,453) (9,033)

Work in progress (net) 404,199 313,096

Advances from customers (381,720) (390,371) Progress payments (3,713,492) (3,500,233) Work in progress 3,427,739 3,184,132 Provision for expected losses to complete contracts (750) (4,248)

Progress payments and advances from customers (net) (668,223) (710,720)

Work in progress, net of progress payments and advances from customers (264,024) (397,624)

Work in progress is recognised under assets when a contract-by-contract analysis shows the gross amount of work in progress is higher than progress payments and advances from customers, or under liabilities if progress payments and advances from customers exceed the related work in progress. Work in progress, net of progress payments and advances from customers (e133,600 thousand) rose on 2012 mainly as a consequence of production in excess of revenue. Work in progress, net of progress payments and advances from customers also includes net advances of e182,797 thousand related to the contracts in Libya, which are currently halted.

32 WorldReginfo - 173f7aa4-cf09-487c-9520-2c74eed9e2ed Signalling and Transportation Solutions | Interim Financial Report at 30 September 2013

Trade receivables and payables are made up as follows:

30.09.2013 31.12.2012 Trade Trade Trade Trade (€’000) receivables payables receivables payables

Third parties 512,438 344,519 579,781 441,822

Total third parties 512,438 344,519 579,781 441,822

Related parties 112,880 53,423 168,966 58,741

Total 625,318 397,942 748,747 500,563

Third party trade receivables amount to e512,438 thousand at 30 September 2013, down e67,343 thousand over 31 December 2012 (e579,781 thousand). The decrease is mainly due to the parent following the considerable collections of the outstanding receivables due from the Naples Municipality. With respect to CONSOB communication no. DAC/RM/97003369 of 9 April 1997, we note that, during the period, Ansaldo STS France S.A.S. factored without recourse unexpired receivables due from third parties for e26,589 thousand. Related party trade receivables fell e56,086 thousand mainly as a result of the amounts due from Metro 5 S.c.p.A. and Ferrovie dello Stato group following completion of the relevant activities. Provisions have been made for risks that are probable and for which the amount can be determined.

There were no particular changes in ongoing disputes from that described in the 2012 annual financial statements, except for that set out in paragraph 1.2 about the enforcement of the Advance Payment Bond by the Russian customer, Zarubezhstroytechnology (ZST).

Other current assets/(liabilities), net at 30 September 2013 can be analysed as follows:

30.09.2013 31.12.2012 (€’000) Assets Liabilities Assets Liabilities

Prepayments - current portion 12,081 678 12,329 - Research grants 11,870 - 10,302 - Employees 1,025 31,619 1,045 30,314 Social security institutions 81 12,434 61 13,567 Indirect and other tax assets 23,749 8,622 19,430 17,962 Other 13,658 21,972 12,339 29,143

Total other current assets/liabilities 62,464 75,325 55,506 90,986

Related parties 1,525 397 1,555 397

Total 63,989 75,722 57,061 91,383

Derivatives 5,676 5,861 4,627 4,108 Tax assets 23,510 6,601 25,081 5,727

Total 93,175 88,184 86,769 101,218

Details of the main items are set out below: • prepayments mainly related to the current portion of costs paid by Finmeccanica S.p.A. for the licence to use the “Ansaldo” trademark for a 20-year period and insurance premiums; • indirect tax assets totalled e23,749 thousand at 30 September 2013 compared to e19,430 thousand at 31 December 2012, mainly due to an increase in the VAT receivable; • other third party liabilities are mainly due to the outstanding 62% of the consideration to be paid for the acquisition of the investment in Metro C S.p.A. – Rome. • indirect and other tax liabilities amount to e8,622 thousand at 30 September 2013, compared to e17,962 thousand at 31 December 2012. The decrease is mainly due to the lower VAT payable and other indirect taxes.

33 WorldReginfo - 173f7aa4-cf09-487c-9520-2c74eed9e2ed Notes to the condensed interim consolidated financial statements at 30 september 2013

The group’s net financial position at 30 September 2013 and 31 December 2012 is set out below:

(€’000) 30.09.2013 31.12.2012

Current loans and borrowings 6,118 18,188 Cash and cash equivalents (103,184) (146,837)

BANK LOANS AND BORROWINGS (97,066) (128,649)

Related party loan assets (22,965) (120,533) Other loan assets (65,422) (52,987)

LOAN ASSETS (88,387) (173,520)

Other current loans and borrowings 85 187

OTHER LOANS AND BORROWINGS 85 187

NET FINANCIAL POSITION (185,368) (301,982)

The group’s net financial position totalled e185,368 thousand at the reporting date, compared to e301,982 thousand at 31 December 2012, with a net decrease of e116,614 thousand. During the period, related party loan assets were lower by e97,568 thousand.

The reclassified statement of cash flows for the period ended 30 September 2013 follows:

First nine months of (€’000) 2013 2012

Opening cash and cash equivalents 146,837 160,928

Gross cash flows from operating activities 97,492 86,827 Changes in other operating assets and liabilities (42,383) (30,626)

Funds from operations 55,109 56,201

Change in working capital (124,078) (117,809)

Cash flows used in operating activities (68,969) (61,608)

Cash flows used in ordinary investing activities (6,584) (1,928)

Free operating cash flow (75,553) (63,536)

Strategic transactions (3,431) (216) Other changes in investing activities 2,730 -

Cash flows used in investing activities (7,285) (2,144)

Sale/use of treasury shares - 2 Dividends paid (28,800) (28,000) Cash flows from other financing activities 64,244 59,371

Cash flows from financing activities 35,444 31,373

Exchange rate gains and losses, net (2,843) 1,033

Closing cash and cash equivalents 103,184 129,582

Cash and cash equivalents totalled e103,184 thousand at the reporting date, down by e26,398 thousand over the figure at 30 September 2012 (e129,582 thousand), specifically: • cash flows used in operating activities of e68,969 thousand reflect the change in working capital and other operating assets and liabilities; • cash flows used in investing activities of e7,285 thousand are up over the corresponding period of the previous year when they were impacted by the sale of the assets pertaining to the subsidiary Ansaldo STS USA INC.; • exchange rate losses amount to e2,843 thousand and mainly reflect the change in the exchange rate of the foreign subsidiaries of the Asia/Pacific area.

34 WorldReginfo - 173f7aa4-cf09-487c-9520-2c74eed9e2ed Signalling and Transportation Solutions | Interim Financial Report at 30 September 2013

10 Related party transactions 10.1 Impact of related party transactions on profit or loss

Other Other operating Financial Financial operating First nine months of 2013 (€’000) Revenue income Costs income expense expense

Ultimate parent Finmeccanica S.p.A. - - 2,259 210 208 12 Subsidiaries Alifana S.c.r.l. - - (2) - - - Alifana Due S.c.r.l. 223 - 183 - - - Associates International Metro Service S.r.l. 400 4 - - - - Metro Service A.S. - - 33,160 - - - Metro 5 S.c.p.A. 9,740 88 45 - - - Metro 5 Lilla S.r.l. 8,933 - 185 - - - Metro Brescia S.r.l. 130 - (250) - - - Pegaso S.c.r.l. - - 339 - - - Joint ventures (*) Balfour Beatty Ansaldo Syst. JV SDN BHD 6,038 - (3) - - - Consortia Saturno consortium 4,934 - 1,072 - - - Ascosa Quattro consortium 161 - 139 - - - SanGiorgio Volla consortium 32 - 1 - - - SanGiorgio Volla 2 consortium 468 - (6) - - - Ferroviario Vesuviano consortium - - 48 - - - Cesit consortium - - - - - 23 Sesm consortium ------Cris consortium - - 1 - - - MM4 consortium - - 450 - - - Other group companies AnsaldoBreda S.p.A. 8,413 - 3,789 - - - AnsaldoBreda España SLU 31 - - - - - Fata Logistic Systems S.p.A. - - 1,314 - - - Fata S.p.A. - - 161 - - - Finmeccanica UK LTD - - 92 - - - Finmeccanica Group Service S.p.A. - 20 393 - - 38 Finmeccanica North America INC. ------Selex Sistemi Integrati LTD 22 - - - - - Selex Elsag S.p.A. 180 - 9,886 - - 95 I.M. Intermetro S.p.A. ------Electron Italia S.r.l. 12 - - - - - Egeos S.p.A. - - 30 - - - DRS Technologies INC - - 2 - - - Other - MEF Ferrovie dello Stato group 87,052 - 1,070 - - - ENI group 15,407 - 12 - - - ENEL group - - 1,574 - - -

Total 142,176 112 55,944 210 208 168

% of the total at the reporting date 16% 1% 10% 2% 1% 1%

(*) Portion not eliminated on proportionate consolidation.

35 WorldReginfo - 173f7aa4-cf09-487c-9520-2c74eed9e2ed Related party transactions | Impact of related party transactions on profit or loss

Other Other operating Financial Financial operating First nine months of 2012 (€’000) Revenue income Costs income expense expense

Ultimate parent Finmeccanica S.p.A. - 63 3,377 116 94 - Subsidiaries Alifana S.c.r.l. - - (1) - - - Alifana Due S.c.r.l. 107 - 596 - - - Associates International Metro Service S.r.l. 1,701 5 (110) - - - Metro Service S.p.A. - - 29,735 - - - Metro 5 S.c.p.A. 7,459 79 746 - - - Metro 5 Lilla S.r.l. 9,655 - 232 - - - Pegaso S.c.r.l. - - 623 - - - Joint ventures (*) Balfour Beatty Ansaldo Syst. JV SDN BHD 7,392 - 2 - (49) - Consortia Saturno consortium 4,989 - 1,192 - - - Ascosa Quattro consortium 44 - 23 - - - SanGiorgio Volla Due consortium 572 - - - - - Ferroviario Vesuviano consortium 10 - 137 - - - Cesit consortium - - - - - 35 Sesm consortium - - 15 - - - Cris consortium - - 49 - - - SanGiorgio Volla consortium 17 - 10 - - - Other group companies AnsaldoBreda S.p.A. 7,491 1 3,322 - - - Fata Logistic Systems S.p.A. - - 1,341 - - - Fata S.p.A. - - 161 - - - Finmeccanica UK LTD - - 52 - - - Finmeccanica Group Service S.p.A. - 16 420 - - 32 Finmeccanica North America INC. - - 65 - - - Selex Elsag S.p.A. 776 - 6,331 - - - I.M. Intermetro S.p.A. 164 - - - - - Electron Italia S.r.l. 107 - 16 - - - Ansaldo Energia S.p.A. - - 1 - - - Other - MEF Ferrovie dello Stato group 87,430 - 1,555 - - - ENI group 2,320 - 5 - - - ENEL group - - 21 - - -

Total 130,234 164 49,916 116 45 67

% of the total at the reporting date 15% 1% 9% 1% 0.2% 1%

(*) Portion not eliminated on proportionate consolidation.

36 WorldReginfo - 173f7aa4-cf09-487c-9520-2c74eed9e2ed Signalling and Transportation Solutions | Interim Financial Report at 30 September 2013

10.2 Related party assets and liabilities

Related party trading transactions generally take place on an arm’s length basis. The relevant statement of financial position balances are shown below. The statement of cash flows presents the impact of related party transaction on cash flows.

Non- Other non- Other current current Current current loan financial loan Trade financial Financial assets at 30.09.2013 (€’000) assets assets assets receivables assets Total

Ultimate parent Finmeccanica S.p.A. - - 22,965 86 151 23,202 Subsidiaries Alifana S.c.r.l. - - - 93 - 93 Alifana Due S.c.r.l. - - - 249 - 249 Associates International Metro Service S.r.l. - - - 2,689 - 2,689 Metro 5 S.c.p.A. - 3,103 - 1,625 - 4,728 Pegaso S.c.r.l. ------Metro Brescia S.r.l. - 1,545 - 79 - 1,624 Metro Service A.S. - - - 1,000 - 1,000 Metro 5 Lilla S.r.l. - - - 29,331 9 29,340 Joint ventures (*) Balfour Beatty Ansaldo Syst. JV SDN BHD - - - 5,761 - 5,761 Kazakhstan TZ-Ansaldo STS Italy LLP - 1,225 - 1,928 - 3,153 Consortia Saturno consortium - - - 3,093 1,361 4,454 Ascosa Quattro consortium - - - 1,158 - 1,158 Ferroviario Vesuviano consortium - - - 14,113 - 14,113 San Giorgio Volla consortium - - - 1,421 - 1,421 San Giorgio Volla 2 consortium - - - 1,971 4 1,975 MM4 consortium - 182 - 282 - 464 Other group companies AnsaldoBreda S.p.A. - - - 6,002 - 6,002 AnsaldoBreda España SLU - - - 17 - 17 Ansaldo Energia S.p.A. - - - 6 - 6 Selex Elsag S.p.A. - - - 211 - 211 Selex Galileo S.p.A. ------I.M. Intermetro S.p.A. - - - 331 - 331 Other - MEF Ferrovie dello Stato group - - - 36,402 - 36,402 ENI group - - - 5,032 - 5,032 ENEL group ------

Total - 6,055 22,965 112,880 1,525 143,425

% of the total at the reporting date 22% 26% 18% 2%

(*) Portion not eliminated on proportionate consolidation.

37 WorldReginfo - 173f7aa4-cf09-487c-9520-2c74eed9e2ed Related party transactions | Related party assets and liabilities

Non- Other Other current non-current Current current loan financial loan Trade financial Financial assets at 31.12.2012 (€’000) assets assets assets receivables assets Total

Ultimate parent Finmeccanica S.p.A. - - 120,533 426 145 121,104 Subsidiaries Alifana S.c.r.l. - - - 123 - 123 Alifana Due S.c.r.l. - - - 167 - 167 Associates International Metro Service S.r.l. - - - 2,112 - 2,112 Metro 5 S.p.A. - 3,828 - 8,800 - 12,628 Pegaso S.c.r.l. (In liq.) ------Metro Service A.S. - - - 1,892 - 1,892 Metro 5 Lilla S.r.l. - - - 28,473 - 28,473 Metro Brescia S.r.l. - 1,545 - 196 - 1,741 Joint ventures (*) Balfour Beatty Ansaldo Systems JV Sdn Bhd - - - 6,010 - 6,010 Kazakhstan TZ - Ansaldo STS Italy LLP - 1,224 - 1,928 - 3,152 Consortia Saturno consortium - - - 3,640 1,360 5,000 Ascosa Quattro consortium - - - 1,157 - 1,157 Ferroviario Vesuviano consortium - - - 14,113 - 14,113 MM4 consortium - 182 - 245 - 427 San Giorgio Volla Due consortium - - - 1,625 5 1,630 San Giorgio Volla consortium - - - 1,421 - 1,421 Other group companies AnsaldoBreda S.p.A. - - - 4,896 3 4,899 Selex Elsag S.p.A. - - - 509 - 509 Selex Sistemi Integrati S.p.A. - - - - 42 42 Ansaldo Energia S.p.A. - - - 53 - 53 Selex Galileo S.p.A. - - - 13 - 13 I.M. Intermetro S.p.A. - - - 331 - 331 Other - MEF Ferrovie dello Stato group - - - 86,880 - 86,880 ENI group - - - 3,956 - 3,956 ENEL group ------

Total - 6,779 120,533 168,966 1,555 297,833

% of the total at the reporting date 30% 69% 23% 3%

(*) Portion not eliminated on proportionate consolidation.

38 WorldReginfo - 173f7aa4-cf09-487c-9520-2c74eed9e2ed Signalling and Transportation Solutions | Interim Financial Report at 30 September 2013

Non- Other non- Other current current Current current loans and financial loans and Trade financial Financial liabilities at 30.09.2013 (€’000) borrowings liabilities borrowings payables liabilities Total

Ultimate parent Finmeccanica S.p.A. - - - 56 - 56 Subsidiaries Alifana S.c.r.l. - - - 82 3 85 Alifana Due S.c.r.l. - - - 162 - 162 Ansaldo Railway System Technical Service (Beijing) Ltd ------Associates International Metro Service S.r.l. ------Metro Service A.S. - - - 10,181 - 10,181 Metro 5 S.c.p.A. - - - 64 - 64 Metro 5 Lilla S.r.l. - - - 231 - 231 Pegaso S.c.r.l. ------Consortia Saturno consortium - - - (315) - (315) Ascosa Quattro consortium - - - 73 8 81 Team consortium ------SanGiorgio Volla Due consortium - - - 74 - 74 Ferroviario Vesuviano consortium - - - 393 8 401 SanGiorgio Volla consortium - - - 8 8 16 Cesit consortium - - - 12 - 12 Cris consortium - - - 1 - 1 Other group companies Finmeccanica Group Service S.p.A. - - - 145 - 145 AnsaldoBreda S.p.A. - - - 4 - 4 Ansaldo Energia S.p.A. - - - 516 - 516 Egeos S.p.A. - - - 30 - 30 DRS Technologies INC - - - 2 - 2 Selex ES S.p.A. - - - 40,682 - 40,682 MetroB S.r.l. - - - - 370 370 Fata Logistic Systems S.p.A. - - - 452 - 452 Fata S.p.A. - - - 65 - 65 Electron Italia S.r.l. ------Other - MEF Ferrovie dello Stato group - - - 489 - 489 ENI group - - - 9 - 9 ENEL group - - - 7 - 7

Total - - - 53,423 397 53,820

% of the total at the reporting date 13% 1%

39 WorldReginfo - 173f7aa4-cf09-487c-9520-2c74eed9e2ed Related party transactions | Related party assets and liabilities

Non- Other Other current non-current Current current loans and financial loans and Trade financial Financial liabilities at 31.12.2012 (€’000) borrowings liabilities borrowings payables liabilities Total

Ultimate parent Finmeccanica S.p.A. - - - 281 - 281 Subsidiaries Alifana S.c.r.l. - - - 104 3 107 Alifana Due S.c.r.l. - - - 157 - 157 Associates International Metro Service S.r.l. ------Metro Service A.S. - - - 10,441 - 10,441 Metro 5 S.p.A. - - - 114 - 114 Pegaso S.c.r.l. - - - 18 - 18 Consortia Saturno consortium - - - 483 - 483 Ascosa Quattro consortium - - - 45 8 53 Team consortium ------San Giorgio Volla Due consortium - - - 92 - 92 Ferroviario Vesuviano consortium - - - 363 8 371 San Giorgio Volla consortium - - - 6 8 14 MM4 consortium - - - 200 - 200 Cesit consortium - - - 24 - 24 Cris consortium - - - 1 - 1 Other group companies Finmeccanica Group Service S.p.A. - - - 573 - 573 AnsaldoBreda S.p.A. - - - 3,377 - 3,377 Selex Elsag S.p.A. - - - 40,331 - 40,331 Finmeccanica North America INC. - - - 50 - 50 Fata Logistic Systems S.p.A. - - - 216 - 216 Fata S.p.A. - - - 65 - 65 Electron Italia S.r.l. - - - 24 - 24 MetroB S.r.l. - - - - 370 370 E-Geos S.p.A. - - - 73 - 73 Other - MEF Ferrovie dello Stato group - - - 1,695 - 1,695 ENI group - - - 8 - 8 ENEL group ------

Total - - - 58,741 397 59,138

% of the total at the reporting date 12% 0.4%

40 WorldReginfo - 173f7aa4-cf09-487c-9520-2c74eed9e2ed Signalling and Transportation Solutions | Interim Financial Report at 30 September 2013

11 Financial risk management

The group’s operations expose it to the following financial risks: • market risks, related to operations in areas that use currencies other than the company’s functional currency (currency risk) and the risk of interest rate fluctuations; • liquidity risks, related to the availability of financial resources and access to the credit market; • credit risk, arising from normal trading transactions or financing activities.

The group specifically monitors each of these financial risks and acts promptly to minimise them including via hedging derivatives. Ansaldo STS group’s approach to managing these risks, in line with internal policies, is described below.

Currency risk management

As described in the “treasury management” policy, Ansaldo STS group manages currency risk by pursuing the following objectives: • limiting potential losses generated by unfavourable exchange rate fluctuations against the currencies used by Ansaldo STS S.p.A. and its subsidiaries. Losses are defined in cash flows rather than accounting terms; • limiting forecast or actual costs related to the implementation of currency risk management policies.

Currency risk shall only be hedged if it has a material impact on cash flows, compared to the functional currency. Costs and risks related to a hedging policy (hedge, no hedge or partial hedge) shall be acceptable in both financial and commercial terms. Currency risk may be hedged using the following tools: • purchase and sale of currency forwards: these are the most commonly used cash flow hedges; • funding/lending in foreign currency: used to mitigate the currency risk related to similar receivable and payable positions with banks or group companies.

The use of funding and lending in foreign currency as a hedging instrument shall only take place when consistent with Ansaldo STS group’s overall treasury management and financial position (both long- and short-term). The purchase and sale of foreign currency is generally the hedging tool used when foreign markets are not sufficiently liquid or when it is the most cost effective hedging method.

Currency risk hedging

There are three main types of currency risk: 1. The economic risk is the impact exchange rate fluctuations can have on capital budgeting decisions (investments, the location of production facilities and supply markets). 2. Transaction risk is the possibility that exchange rates may fluctuate between the time a commitment is undertaken to make future collections or payments in foreign currency (price list, budgets, orders preparation and invoicing) and when the actual collection or payment takes place, generating either exchange rate gains or losses. 3. The translation risk is the effect on the financial statements of multinational companies of translating dividends, or of consolidating assets and liabilities when exchange rates adopted for consolidation purposes differ from one reporting period and the next.

The Ansaldo STS group hedges the transaction risk in line with the Foreign Exchange Risk management policy, i.e., via the systematic hedge of cash flows generated by firm contractual commitments to buy and sell, in order to fix the exchange rates at the date the construction contracts are agreed, thereby neutralising the effects of exchange rate fluctuations.

Cash flow hedges

Hedges are entered into at the time sales contracts are agreed, using plain vanilla instruments (currency swaps and forwards) that qualify for hedge accounting under IAS 39. They are recognised as cash flow hedges, whereby the effective portion of fair value gains or losses on hedging derivatives is recognised in the relevant hedging reserve once the hedging strategy is demonstrated to be effective. If the hedge is not deemed effective (i.e., does not fall within the 80% and 125% range), fair value gains or losses on hedging instruments are immediately expensed as financial items and the related fair value gains or losses accumulated in the hedging reserve up to the date of the most recent successful test of effectiveness are reclassified to profit or loss.

41 WorldReginfo - 173f7aa4-cf09-487c-9520-2c74eed9e2ed Financial risk management

Fair value hedges

These hedge fair value changes in a recognised asset or liability, an unrecognised firm commitment, an identified portion of this asset, liability or irrevocable commitment, related to a particular risk and that could impact profit or loss. The group hedges fair value gains or losses related to the currency risk on recognised assets and liabilities.

Hedges are mainly undertaken with banks. The group has contracts in place for the following notional foreign currency amounts at the reporting date:

(€’000) Sell 09 13 Buy 09 13 30.09.2013 Sell 12 12 Buy 12 12 31.12.2012

Euro 87,097 83,167 170,264 96,108 56,953 153,061 US dollar 62,315 19,316 81,631 74,188 23,180 97,368 Pound sterling 8,722 - 8,722 8,847 1,042 9,889 Swedish krona 419 29,037 29,456 3,065 29,228 32,293 Australian dollar 421 3,231 3,652 - 42,261 42,261 Hong Kong dollar 254 40 294 309 - 309 Abu Dhabi dirham 23,396 6,051 29,447 19,603 - 19,603 South African rand 1,511 - 1,511 - - -

The net fair value of the derivatives in place (both fair value and cash flow hedges) at 30 September 2013 is a negative e185 thousand.

Interest rate risk management

Under the policy, the aim of interest rate risk management is to reduce the negative effects of interest rate fluctuations on the group’s financial position, results of operations and weighted average cost of capital. Ansaldo STS group manages interest rate risk to pursue the following objectives: • stabilising the weighted average cost of capital; • minimising Ansaldo STS group’s medium- and long-term weighted average cost of capital by focusing on the effects of interest rates on debt funding and equity funding; • optimising the return on financial investments within a general risk/return trade-off; • limiting costs related to the implementation of interest rate management policies, including direct costs related to the use of specific instruments and indirect costs linked to the internal structure needed to manage the risk.

Excess liquidity is invested in the short term for future acquisitions. Consequently, financial indebtedness is mainly of a short-term nature. Thanks to joint short-term management of assets and liabilities, the group’s exposure to interest rate fluctuations in the long term is relatively neutral. Also in 2013, the group managed this risk without the use of derivatives.

Liquidity risk management

Ansaldo STS group has rolled out a series of tools to optimise treasury management with a view to the efficient management of cash and cash equivalents and to help its business grow. This was achieved by centralising the treasury function and an active presence on financial markets which has enabled the group to obtain short- and long-term non-revolving cash and unsecured credit lines to meet its needs. It had a net financial position of e185,368 thousand and e301,982 thousand at 30 September 2013 and at 31 December 2012, respectively.

Credit risk management

The group does not have significant credit risks, either in terms of its trading counterparties or its financing and investing activities. Its main customers are public entities or related to public bodies, mostly in the European, US and South-East Asia areas. Ansaldo STS group’s typical customer rating is therefore medium-to-high. However, for contracts with customers/counterparties with which the group does not have regular trading transactions, solvency is analysed at the time the offer is placed, in order to avoid future credit risks. Given the nature of the group’s customers, collection times are longer (and, in certain countries, significantly longer) than those typical of other businesses, leading to overdue amounts, which are sometimes considerable.

42 WorldReginfo - 173f7aa4-cf09-487c-9520-2c74eed9e2ed Signalling and Transportation Solutions | Interim Financial Report at 30 September 2013

12 Significant non-recurring events and transactions

There were no significant non-recurring events or transactions during the reporting period.

13 Atypical and/or unusual transactions

During the reporting period, no atypical and/or unusual transactions took place.

14 Net financial position

The following disclosure is required by CONSOB communication no. DEM/6064293 of 28 July 2006.

(€’000) 30.09.2013 31.12.2012 A. Cash-in-hand 136 80 B. Other cash and cash equivalents (bank current accounts) 103,048 146,757 C. Securities held for trading - -

D. CASH AND CASH EQUIVALENTS (A+B+C) 103,184 146,837

E. CURRENT LOAN ASSETS 88,387 173,520 F. Current bank loans and borrowings 6,118 18,188 G. Current portion of non-current loans and borrowings - - H. Other current loans and borrowings 85 187

I. CURRENT FINANCIAL DEBT (F+G+H) 6,203 18,375

J. NET CURRENT FINANCIAL POSITION (I-E-D) (185,368) (301,982)

K. Non-current bank loans and borrowings - - L. Bonds issued - - M. Other non-current financial liabilities - -

N. NON-CURRENT FINANCIAL DEBT/(POSITION) (K+L+M) - -

O. NET FINANCIAL POSITION (J+N) (185,368) (301,982)

43 WorldReginfo - 173f7aa4-cf09-487c-9520-2c74eed9e2ed Earnings per share

15 Earnings per share

Earnings per share (“EPS”) are calculated by: • dividing the profit for the period attributable to holders of ordinary shares by the average number of ordinary shares outstanding in the period, net of treasury shares (basic EPS); • dividing the profit for the period by the average number of ordinary shares and those that could arise from the exercise of all options under stock option plans, net of treasury shares (diluted EPS).

Basic EPS 30.09.2013 30.09.2012

Average shares outstanding during the period 165,713,286 165,692,319 Profit for the period (e’000) 50,829 45,570

Basic and diluted EPS 0.31 0.28*

* Recalculated following the bonus issue of 15 July 2013.

44 WorldReginfo - 173f7aa4-cf09-487c-9520-2c74eed9e2ed Signalling and Transportation Solutions | Interim Financial Report at 30 September 2013

16 Outlook

No significant changes are expected in the performance for 2013.

Genoa, 4 November 2013 On behalf of the board of directors The Chairman Luigi Calabria (signed on the original)

45 WorldReginfo - 173f7aa4-cf09-487c-9520-2c74eed9e2ed Disclosure on the opt-out regime

17 Disclosure on the opt-out regime

Pursuant to article 70.8 of the Issuer regulation, we note that, in their meeting of 28 January 2013 and as permitted by articles 70.8 and 71.1-bis of the Issuer regulation, the company’s board of directors resolved to opt-out of the requirement to prepare the relevant documents at the time of significant transactions such as mergers, demergers, share capital increases via contributions in kind, acquisitions and sales.

46 WorldReginfo - 173f7aa4-cf09-487c-9520-2c74eed9e2ed Signalling and Transportation Solutions | Interim Financial Report at 30 September 2013

Annex A: Statement pursuant to article 154-bis.2 of legislative decree no. 58/1998

In accordance with the provisions of article 154-bis.2 of the Consolidated Finance Act, the undersigned, Christian Andi, manager in charge of financial reporting of Ansaldo STS S.p.A., states that the interim financial report at 30 September 2013 is consistent with the accounting evidence, ledgers and records.

Genoa, 4 November 2013 The Manager in charge of financial reporting

Christian Andi (signed on the original)

47 WorldReginfo - 173f7aa4-cf09-487c-9520-2c74eed9e2ed Strategic Concept, Copywriting, Graphic Design and Execution by:

www.mercuriogp.eu WorldReginfo - 173f7aa4-cf09-487c-9520-2c74eed9e2ed WorldReginfo - 173f7aa4-cf09-487c-9520-2c74eed9e2ed CONSOLIDATED INTERIM ANSALDO STS S.p.A. FINANCIAL REPORT Registered Offi ce: AT 30 SEPTEMBER 2013 Via P. Mantovani 3 - 5, Genoa Paid-up share capital: 90,000,000 Genoa company registration no. and tax code: 01371160662 www.ansaldo-sts.com

A Finmeccanica Company WorldReginfo - 173f7aa4-cf09-487c-9520-2c74eed9e2ed