Letter from the Chairman and CEO

Ansaldo STS fi rmly believes that a strategy is sustainable only if it is capable of building long-term economic, social and environmental value. Each day we respond to the genuine needs of our customers and more generally, our stakeholders, with technological solutions and passion from our personnel. This dedication is refl ected once again in our 2014 financial, social and environmental results.

Ansaldo STS is committed to creating value for our customers, shareholders, employees and the communities in which we are based. These people are, and will always be, the compass guiding our management team.
To reinforce this commitment, in 2014, we directed our effort, expertise and passion into the launch of the “Values to Actions” project to effect a significant change, in line with our values and history.

  • Customer Focus: we exist and grow thanks to our customers.
    “Growth” is our priority: we renewed the market strategy, working hard to obtain and complete even the smallest order, and in 2014 new orders grew by 23% compared to the previous year.
  • Innovation and excellence: we decided to assert ourselves as a market competitor in order to generate profi ts and value, introducing new working methods such as the Lean approach, the six sigma and supply chain optimisation. In this way, we strengthened the planning and control tools that enable us to operate faster, enhancing our personnel’s skills. In 2014, we invested €33 million in R&D (up 3.1% on 2013), with 77 families of patents.
  • People: customer satisfaction is achieved through the satisfaction of our personnel.
    The transformation plan we are preparing requires responsible personnel and managers, who we have decided to reward for their efforts. In this way, we promote talent, using objective tools to assess the awards and a widespread training andcoaching plan. In 2014, 95% of our employees were included in the competences measurement system and the average increase in training hours per employee was 17%.
  • Team spirit: none of our goals can be achieved by one individual alone.
    We have put together a compact and competent managerial team who will ensure the cooperation and development of our personnel and the upholding of our goals and commitments. To support the work company, we are developing projects such as the Project team effectiveness, with coaching sessions for international teams responsible for strategic projects.
  • Integrity: Our customers have faith in us because we act with integrity. We strive to be transparent and loyal without compromising our integrity and respect for others.

Led by these values, Ansaldo STS uses its unique edge and skill to compete with large competitors in a market that grows at a rate of 3%, driven by demographic growth, fast urbanization processes and global commercial growth. There has never been a greater need than now for more effi cient and safe transport solutions, developed from attentive strategies and with respect for social and environmental conditions, in order to be sustainable and improve our lives.

Indeed, we are the end users of Ansaldo STS’ products when we embark on safe and reliable journeys via train, metro and tram. Millions of people each day are mobile thanks to our technology and in this way Ansaldo STS “connects the pieces of our world”.

With our 2014 Sustainability Report, we would like to reiterate our conviction that we are creating a better world for future generations.

After six years of reporting on sustainability, we look back on the past with pride and to the future with faith. We turn to all our stakeholders to explain what we have done and what results we have obtained in the pursuit of sustainable growth objectives.

Care for the environment, the reliability of our products, and our personnel’s passion, help ourcompany grow: our employees reach personal and professional goals at Ansaldo STS, which is in turn reflected in our results.

The company continuously takes on board the opinions of its stakeholders, including in relation to sustainability issues, in order to identify the most important areas for improvement.

In 2014, we completed and delivered 18 projects, about 650 km of lines and more than 300 vehicles built using our technology. Plants and lines are in use in various parts of the world in the metro sector (Turkey, China and Italy), in conventional railways (Italy, India and Malaysia) and freight transported by rail (Australia).

This culture produces concrete facts.

All our operations are carried out sustainably, as refl ected by the 33% increase in training hours on the environment, health and safety; the 25% reduction in greenhouse gas emissions between 2012 and the present, earning us second place amongst industrial companies in the Carbon Disclosure Project rating, and the 47% reduction in the accident frequency rate at productive sites.

Furthermore, we continue to pay high attention to “sustainability chains”, which involve relationships with our suppliers, with a new qualification questionnaire requiring respect for safety and the environment.

Finally, but not less importantly, we have cultivated our company’s image via all communication channels: we have updated our website (Ansaldo STS ranks fi rst in the Italian industrial sector in the WebRanking classifi cation) and various digital platforms, and better public relations with social media, whose users and followers gave us positive feedback.

These are some examples that immediately spring to mind that reflect the successful year we have had, which is further demonstrated by economic and financial indicators. This year has made us proud of our people and confi rmed our technological leadership and the reliability of our products and solutions.

We will always keep vigilant, confident in the future, continuing to improve ourselves and judging our performance in terms of sustainability against the most innovative evaluation criteria such as the principles and parameters from the most recent version of the Global Reporting Initiative guidelines.

We believe that, in order to be sustainable, we must act responsibly in line with universally recognised principles, taking care of the social and environmental aspects of our operations.

Sustainability must become part of the Group’s DNA, be encouraged and directed from the highest levels, and be reported on periodically and transparently.

Sustainability enables us to better interpret the path that we have chosen to follow: membership of a major group allows us to redesign our future.

We would like to thank all our employees and their families who support them each day for their passion, continuous improvement efforts and attention to the world around us, which makes our work, year by year, more valuable and important.