Economic and financial data in 2014

Highlights 2014

(IFRS compliant amounts in EUR million)

Highlights 2014

* Restated figures due to the adoption of IFRS 11

Analysis of the income statement, the balance sheet and the financial position

Ansaldo STS group recognised a net profit of €80.7 million for 2014, compared to €74.8 million for the previous year.

Revenue came to €1,303.5 million, up by €73.7 million on the restated €1,229.8 million of 2013. The increase is due to the development of the group’s important order backlog and, specifically, the progress made in projects in Saudi Arabia and Denmark and certain projects acquired by the French subsidiary in recent years.

Operating profit (EBIT) came to €124.5 million, up €7.5 million on the restated 2013 amount (€117.0 million) due to greater volumes developed. ROS was 9.6%, up on 2013 (9.5%).

Net invested capital totalled €281.4 million, compared to the restated figure of €253.5 million in 2013. The €27.9 million increase is due to the rise in non-current assets and liabilities (€16.8 million), for the new equity investments and advances granted to special-purpose entities to carry out work related to order backlog, and the change in net working capital (€11.1 million), due to the increase in trade receivables and contract work in progress partially offset by the increase in trade payables and advances from customers.

The net financial position (greater loan assets and cash and cash equivalents than loans and borrowings) was €293.4 million, compared to restated €245.5 million at 31 December 2013, up €47.9 million on the previous year following the distribution of dividends of €28.8 million (2013: €28.8 million).

Loan assets include the euro equivalent amount of the Libyan dinar advance on the first of the two contracts in Libya obtained by the parent and deposited in a local bank and tied up pending the resumption of activities (€28,443 thousand).

The net financial position at 31 December 2014 includes the €29.3 million remainder of the advance received from the Russian customer, Zarubezhstroytechnology (ZST), for the project signed in August 2010 and suspended as from 21 February 2011, for the development of signalling, automation, telecommunication, power supply, security and ticketing systems on the Sirth to Benghazi section in Libya.

Proceedings commenced in the second half of 2013 with ZST for the enforcement of the Advance payment bond. At the end of November 2013, the Milan court authorised Crédit Agricole to release part of the advance (€41.3 million), confirming that ZST only has the right to partial repayment thereof. Subsequently, on 25 March 2014, ZST issued the statement of claim which formally launched the arbitration procedure at the Vienna International Arbitral Centre in order to obtain payment of the portion of the Advance payment bond not recognised by the Milan court in the provisional measure.

In May 2014, the procedure to form the arbitration panel was completed and the discussion hearing is scheduled for the second half of 2015.