Transportation Solutions

The orders acquired at 31 December 2009 came to EUR 632,468 thousand and reflect an increase of 84.7% from the same period of the prior period (EUR 342,467 thousand at 31 December 2008).

The order backlog at 31 December 2009 came to EUR 2,048,073 thousand from EUR 1,843,542 thousand at 31 December 2008.

The significant events of the year 2009 referring to the Areas where the Business Unit operates are outlined below.

ANSALDO STS – ITALY REGION

The year 2009 was marked by the important initiatives in the driverless metro segment. The sum of EUR 214 million was awarded in March for the order for the construction of the technological works, track and vehicles (these on behalf of AnsaldoBreda, sole partner of Ansaldo STS in the winning Consortium) for the First Stage of Taipei’s Circular Line (16.5 kms, 14 stations and the main line depot).

In June, an order for EUR 148.8 million was acquired in respect of the contract for the technological works for the driverless light metro of the 11.3 km-long Riyadh’s Women’s University including 17 stations and one depot.

In February the contract with Metropolitana di Napoli SpA, concessionaire for the Municipality of Naples, was signed for the construction designing and construction of the electrical/rail systems of Line 1 of the Naples Metro for the piazza Dante - piazza Garibaldi line. The value of the job order is EUR 59.68 million. The works completion is expected by July 2012 and the works assigned to ASTS are part of the fourth application contract to the master agreement for the construction of Line 1 of the Naples Metro. In December 2009 a contract for EUR 28.0 million regarding the Vesuvian lines was also acquired.

During 2009 the orders for Operational Lot 2 on the High-Speed Rome-Naples line were also formalised. The company posted acquisitions for the participation in the IRICAV1 consortium for civil works, equipment and small variations and direct orders from the Saturno consortium for a total value of EUR 38.6 million.

Finally, in the second quarter of 2009 the order connected to the Rome Line C driverless metro was formalised for EUR 30.0 million in relation to the alternative for civil and technological works closed by the consortium company Roma C S.c.p.A. with Roma Metropolitane.

Regarding opportunities, expectations are confirmed regarding expansion programmes, in the medium- and long-term, of the transport network for all the main Italian cities, which help keep steady the development estimates of the Ansaldo STS Italia systems market. In the next 5/10 years Milan, Rome, Naples, Palermo, Catania, Bologna will commence the construction of extensions and new metro lines.

In Italy the tender for the award of the First Lot of Line 4 of the Milan metro was delayed. Regarding Line 5 of the Milan metro, it is possible that it may be extended south and west to S. Siro.

The award of the D Line of the Rome Metro has not received the final approval and the award of public budgets yet and therefore will be delayed to the end of 2010.

With regard to the extension of the Rome Line B for the Rebibbia – Casalmonastero segment, the bid is expected to be called in March 2010.

Regarding the foreign market, generally in the global macroeconomic scenario following the financial crisis commenced in 2008 some projects were delayed, in particular in the Eastern Europe area, where the development programmes driven by the European Community do not seem adequate to fully finance the major expansion projects for transport networks.

In a partial counter-trend performance compared with the above trends, the development of the “turnkey” systems market in Northern Africa and in the Middle East did hold fairly good as compared with the market volumes of the last few years. To that regard, it is worth noting the commencement of some initiatives and infrastructural projects in Kuwait, Bahrain, Qatar, Saudi Arabia, Libya, Tunisia and Algeria.

In Libya several projects are expected to be carried out in both the Mass Transit and the railway segments. In that scenario, it is important to highlight that ASTS is taking part in the bid for the construction of a driverless metro system in Tripoli, for which the offer was submitted in a grouping with some Italian companies and AnsaldoBreda SpA. The award is expected in the first half of 2010.

Regarding the Middle East, the development programmes in Qatar are noteworthy. Several projects are planned in the coming years for the construction of heavy and light metros (LRT).

Regarding the European market, Denmark plays a strategic role due to the strong presence of ASTS in the country. The Copenhagen Metro project, where ASTS also is the Operator, remains one the best references for ASTS worldwide. In Copenhagen bids are being called for the operation and maintenance of the existing line and the construction of the new City Ring line.

Regarding the technological solutions adopted, the demand in driverless metros is still growing (driverless CBTC), in particular in Italy, Central and Northern Europe and the Middle East.

The orders acquired at 31 December 2009 came to EUR 586 million compared with EUR 167.1 million at 31 December 2008. The order backlog at 31 December 2009 amounted to EUR 1,872 million as compared with EUR 1,675.4 million at 31 December 2008.

 ANSALDO STS – FRANCE REGION

 As regards the opportunities for the Transportation Solutions Business Unit in France, those regarding the “Greater Paris” project have medium-long implementation times.

In the Northern Africa area, a bid in Morocco is expected in 2010 for the LRT project in Casablanca. Other LRT systems are planned in the future for Marrakech and Agadir.

In Tunisia the bid is being called by Société du Réseau Ferroviaire Rapide de Tunis for the construction of the first two lines of the suburban railway network in Tunis. Other projects are planned in the future, including a high-speed line linking Tunisia to Morocco.

ANSALDO STS – AMERICAS REGION

In this region ASTS is developing its presence in the Transportation Solutions segment. It is important to highlight the achievement of the pre-qualification for the Honolulu Driverless Metro, whose bid will be completed by the first half of 2010.

 ANSALDO STS – ASIA PACIFIC REGION

In India several projects are expected in the coming years in both the mass transit and the cargo segments. This country might become an interesting business area for ASTS; the objective is to get to know the market and its dynamics in order to fully exploit the future commercial developments.

In Australia, important developments are expected in the segment of the transportation of goods for mining activities.

Following the award of the contract for the construction of the TransAsean Rail Network in consortium with BBR, Malaysia is one of the countries of great interest for ASTS in this geographic area, as is Taiwan, where further developments are expected in the mass transit segment.

China represents a market of extreme interest where both the mass transit and the railway segments are developing. ASTS’s commitment in China during 2009 was particularly high, in order to pursue every possible business opportunities and in order to search for and strengthen strategic alliances at local level in order to enhance the important presence of the Group in that country.

The orders acquired at 31 December 2009 came to EUR 46.4 million compared with EUR 175.3 million at 31 December 2008. The order backlog at 31 December 2009 amounted to EUR 176.1 million as compared with EUR 168.1 million at 31 December 2008