Letter from the Chairman and CEO

We would like to take this opportunity to address everyone who interacts and works with Ansaldo STS every day: the millions of passengers who transit safely using our railway and metro transportation technologies, our customers, our shareholders, our men and women workers, institutions, our partners and the communities and associations with which we operate and collaborate and which continuously motivate us and provide us with invaluable recommendations.

Ansaldo STS management and all its employees are committed to achieving strategic objectives for profitable growth and ensure that they are in synergy with our sustainability values, respect for the environment and quality of life.

Sergio De Luca Chairman, Ansaldo STS S.p.A.

This mission is described in our charter of values, which represents who we are and reminds us why customers choose us, why our workers are so committed to our company and that we are “upstanding” people who do things the “right” way, working together to innovate and meet the needs of our valued customers.

This is why we have begun publishing a report called the integrated review on the Ansaldo STS website. The report highlights the close ties between economic, social and environmental aspects.

In accordance with the G4 guidelines of the Global Reporting Initiative, we aim to genuinely consider our stakeholders’ expectations and this is why Ansaldo STS’ sustainability committee has conducted a materiality analysis.

We are always striving to improve and this is why we have started comparing our stakeholders’ opinion of Ansaldo STS’ performance in these aspects with our own opinion. Accordingly, not only is Ansaldo STS’ 2013 sustainability report dedicated to our stakeholders, but it is written with and for them.

Ansaldo STS’ presence on the world’s leading markets ensures that we have the necessary solutions for customers and the various local companies seeking the benefits of technologies that improve the safety and efficiency of railway and metro transportation.

For the first time, Ansaldo STS has devoted a section of this document to a local business that is particularly sensitive to sustainability issues, Australia, in which the best practices and local characteristics of a key domestic Ansaldo STS company are described.

In macro terms, Ansaldo STS’ market is sound and shows, at a global level, annual growth rates in the range of 2% to 3%. Key market drivers remain positive: growing global trade and rising traffic, urbanisation processes, environmental concerns and growth in emerging markets, infrastructures and intermodal transport. An even more significant increase can be seen in emerging markets, while there are significant opportunities in the US and Australia as well. Ansaldo STS boasts strong roots in markets in industrialised countries, is well positioned on emerging markets and meets global demand by drawing on its demonstrated skills and expertise in delivering on time and on budget.Stefano Siragusa CEO, Ansaldo STS S.p.A.

In this highly competitive scenario, the standardisation of certain products and innovation are crucial elements which management knows how to manage.

Ansaldo STS’ business model is sound and validated by its leadership, making it possible to successfully offer global and integrated railway and metro transportation solutions for passengers and freight.

2013 presented changes and developments that led the company to focus increasingly on boosting growth, innovating its products and consolidating its experience and expertise.

It was another year in which we upheld our commitment to roll out automated metro lines, like those in Milan and Brescia, and to complete work that enabled us to activate the Ankara and Mumbai metro lines in early 2014.

We also met our commitments in the signalling segment, delivering version 2.5.3 of the ERTMS (the ESTER project) in Sweden and the central device on the Turin-Padua line.

Moreover, we achieved our objectives in terms of acquiring important, strategic orders, like the Saudi contract in Riyadh for the new metro (line 3) and the first contract for new Tramwave® technology in China, for the city of Zhuhai.

This demonstrates how Ansaldo STS is a company of value, and what is more, as demonstrated every day by our people, it is a company founded on values. These values represent who we are and explain why customers choose us and our products. They guide us in the development of our abilities and they help us grow.

Our values run alongside the “high speed” track that we are on, with enthusiasm and dedication, as we translate them, every day, into real action.

These actions are aimed at growth, keeping a close focus on customers, innovating and excelling, and we are aware that none of our objectives can be achieved by one person alone, but only by a group of people, including you, our stakeholders.

We would like thank everyone, Ansaldo STS’ workers and families, for having demonstrated their ability to achieve results, responding to the challenges of change by calling them opportunities.

Sergio De Luca Chairman, Ansaldo STS S.p.A.

Stefano Siragusa CEO, Ansaldo STS S.p.A.