Monday, November 3, 2014 - 09:15

On 1 January 2014, Ansaldo STS adopted IFRS 11 governing joint arrangements. The new standard has eliminated
the possibility to consolidate interests in joint ventures using the proportionate method. Accordingly, they are now
measured using the equity method. The joint ventures’ income statement figures are grouped into one caption,
while the statement of financial position figures are presented under equity investments, without impacting the
group’s equity.

This interim financial report presents the 2013 corresponding figures, which have been restated for comparative
purposes. The restatement did not significantly affect the group’s figures, as described in paragraph 2.5 of the
notes to the condensed interim consolidated financial statements.
The new organisational structure became fully operational in January 2014 to respond to new market requirements
and increase efficiency.
The recent reorganisation is driven by the need to centralise management of projects which use different products
and technologies, and the need for greater cohesion between the various teams, particularly the design and sales

Specifically, under the new organisational model, the revenue centres (hence, those in charge of the sales/
bidding processes, Project Management and Operations & Maintenance) will be more distinctly separate from
the Operations cost centres which are responsible for all internal processes (Engineering and Development,
Construction & Commissioning, Supply Chain and Manufacturing) that generate contract costs.
The two revenue centres represent the Rail and Mass Transit and the Freight markets, respectively, with a strongly
geographical focus (mainly Australia and the US).

The new management team has commenced an analysis of the main businesses in order to assess potential
business opportunities and areas for streamlining.

In general, the group’s financial performance was satisfactory and in line with expectations in the first nine months
of 2014. Specifically, thanks to the actions taken to acquire new customers and penetrate new markets, the group
obtained considerable commercial success, including winning the contract for the Lima metro in Peru and the new
Light Rail Transit (LRT) system in Aarhus, Denmark.