Analysis of financial statements

At 31 December 2011 the Ansaldo STS Group posted net profit of EUR 73,056 thousand compared with EUR 94,908 thousand for the same period last year. Revenue was EUR 1,211,944 thousand compared with EUR 1,283,710 thousand in the previous year. The Group operating revenues stood at 9.6%, as compared with 10.7% in 2010.

Orders at 31 December 2011 amounted to EUR 2,163,745 thousand from EUR 1,985,012 thousand at 31 December 2010, up EUR 178,733 thousand (+9%).
It is thus noted that:

  • For the Transportation Solutions Business Unit, acquisitions of EUR 1,256,058 thousand mainly relate to the contract for the Driverless Metro in Honolulu, to the extension of the Metro 5 in Milan, and to the Australian project named Rio Tinto.
  • For the Signalling Business Unit, acquisitions of EUR 1,045,870 thousand mainly relate to the order for the upgrade of the technological systems of the Turin-Padua line, to the project for the Red Line in Stockholm, to the contract for the designing and construction of the ERTMS Level 2 signalling system for the new Le Mans – Rennes High Speed line in France, and to the order for the technological systems of the Kolkata Metro in India.

The value of backlog at 31 December 2011, equal to EUR 5,452,770 thousand, reflected the performance of acquisitions and rose by 20% from that for the end of 2010, which amounted to EUR 4,551,127 thousand.

In the broader international scenario, the year saw a reduction in investments and an increase in competitive pressure, but this is to be considered a positive year, despite the significant decrease in revenue and margins as compared to both initial expectations and the prior year. This reduction is substantially due to the suspension of the contracts in Libya, where the Company was supposed to carry out a significant amount of activities during the year.

In general, despite the serious financial and economic crisis, the Company’s reference market remains solid and globally presents growth rates of 3-4% per year. On the other hand, the year 2011 saw the dramatic intensification of the competitive tension among the major world players, with the effect of a considerable reduction in unit prices.

In this increasingly stiffer competition, Ansaldo STS can take pride in valid technological assets in the key segments (ERTMS, CBTC, driverless metro) and the emerging segments (satellite signalling), a presence strengthened in the major world markets, an integrated global organisation, a business model that proved to be particularly effective.
Key to the further development of the company is the success of the plans launched in 2011 for making the company operating structure more efficient, and of the reduction in the external purchasing costs, which had commenced in 2010. The activities carried out in 2011 involved almost all of the company organisation entities and allowed the identification, and in some cases the acquisition, of numerous opportunities for increasing efficiency in Delivery, R&D, manufacturing and staff functions.

From the organisation standpoint, the Fast Forward Driven by Business (FFDB) project ended at 31 December 2011. Thanks to this, Ansaldo STS S.p.A. (hereinafter ASTS or Ansaldo STS) changed from the original financial and strategic holding company to an operating company, taking all the business responsibilities into its company structures. At the same time, the programme for the implementation of the new IT system was made operational in all the main companies of the Group.

As regards the company structure and Group governance, the following should be noted:

  • in October 2011 a new company based in Italy named “Metro Brescia S.r.l.” was incorporated by and between Ansaldo STS S.p.A., AnsaldoBreda S.p.A. and Astaldi S.p.A.. The purpose of this company is the 2-year technical operation and the 7-year ordinary and extraordinary maintenance of the Brescia driverless metro. The share capital of “Metro Brescia S.r.l.” amounts to EUR 500,000.00 and was subscribed by Ansaldo STS SpA to the extent of 40.4% of the full amount;
  • At the end of 2011, effective from January 2012, in South Africa a Joint Venture was incorporated by the indirect subsidiary ASTS South Africa PTY (LTD) and Sinosa Rail Solutions South Africa PTY (LTD). The corporate name will be changed to Ansaldo STS – Sinosa Rail Solutions South Africa (PTY) LTD.

It must be noted that, based on local regulations, in order to take part in public tenders for a considerable amount companies must be BBBEEE-compliant (Broad Based Black Economic Empowered Enterprise), which necessarily involve the incorporation of a partnership between foreign and local companies.
The local market is highly growing, and important opportunities are expected in the future.

Registered Office: 16151 Genoa Via Paolo Mantovani, 3 - 5
Paid-in Share Capital EUR 70,000,000 R.E.A. n. 421689 Register of Enterprises of Genoa Tax Code 01371160662
A Finmeccanica Company