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Group key figures

 (EUR 000’s)    31.12.2008    31.12.2007    Change  
 Orders    1,296,609    1,532,452   (235,843)
 Order backlog    3,136,430    2,980,009   156,421
 Production Revenues    1,105,515   973,094 132,421
 EBIT   117,562 100,294 17,268
 Adjusted EBITA   119,197 100,294 18,903
 Net Profit (Loss)   77,599 58,278 19,321
 Net working capital   (166,322) (216,689) 50,367
 Net invested capital   42,882 (6,820) 49,702
 Net financial position (liquidity)   (195,870) (184,521) (11,349)
 Free Operating Cash Flow   43,242 26,896 16,346
 R.O.S.   10,63% 10,31%  +0,32 p.p.  
 R.O.E.   37,27% 38,57%  -1,30 p.p.  
 E.V.A.   71,401 56,557 14,844
 Research and development   44,512 41,236 3,276
 Employees (no.)   4,352 4,243 109

The year of 2008 closed with a consolidated net profi t of EUR 77,599 thousand compared with a net profi t of EUR 58,278 for 2007. The incremental profi t of EUR 19,321 thousand refl ects the increase of EUR 17,268 thousand in EBIT, additional net fi nancial income of EUR 899 thousand and a decrease in taxes equal to EUR 1,154 thousand. In line with the Group’s growth objectives, production revenues rose by 13.61%, going from EUR 973,094 thousand for the year of 2007 to EUR 1,105,515 thousand for the year of 2008, with an increase of EUR 132,421 thousand in absolute value, principally attributable to the contribution of the Signalling Business Unit and the Transport Systems Business Unit during the two-year period of comparison:

  • the Signalling Business Unit closed the year with production revenues (net of transactions with the Transport Systems Business Unit) equal to EUR 803,932 thousand (EUR 824,497 thousand inclusive of the transactions with the Transport Systems Business Unit), for an increase of EUR 74,404 thousand compared with the prior year;
  • the Transport Systems Business Unit closed the year with production revenues equal to EUR 301,583 thousand (equal to the amount inclusive of the transactions with the Signalling Business Unit), for an increase of EUR 60,145 thousand compared with the prior year.

Production Revenues by Business Unit for 2008 and 2007 (EUR millions)

 

 Production Revenues by Business Unit

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EBIT at 31 December 2008 came to EUR 117,562 thousand, for an increase of EUR 17,268 thousand compared with EUR 100,294
thousand for 2007. The EBIT margin was 10.63% for 2008 compared with 10.31% for 2007.
It is thus noted that:

  • the Signalling Business Unit closed the year of 2008 with operating profi t of EUR 96,980 thousand compared with the prior-year figure of EUR 86,507 thousand, with an increase of EUR 10,473 thousand;
  • the Transport Systems Business Unit reported operating profi t of EUR 28,070 thousand 31 December 2008, compared with the prioryear figure of EUR 21,986 thousand, with an increase of EUR 6,084 thousand.

 EBIT and ROS 2008 -2007 (EUR millions)

EBIT and ROS 2008 -2007

In order to provide additional information about earnings, capital and financial position, the Group has prepared a reclassifi ed Income Statement, a reclassified Balance Sheet, a reclassifi ed Statement of net Financial Debt, and a reclassifi ed Cash-Flow Statement.

Income statement

 (EUR 000’s)    31.12.2008   31.12.2007 
 Revenues (*)   1,105,515    973,094  
 Production Revenues    1,105,515    973,094  
 Costs for purchases and cost of labour (**)    (976,050)    (860,787)  
 Amortisation and Depreciation    (10,505)    (10,355)  
 Write-downs   (3,728)    (594)  
 Other net operating income (costs) (***)    6,543    (2,017)  
 Changes in inventories of work in progress, semi-finished products and finished goods    (2,578)    953  
 Adjusted EBITA    119,197    100,294  
 Restructuring costs    (1,635)    - 
 EBIT   117,562    100,294  
 Net financial income (costs)    4,465    3,566  
 Income taxes   (44,428)    (45,582)  
 Net Profit (Loss)    77,599    58,278 
  Group    77,544    58,172 
  Minority interests    55    106  
 Earnings per share      
 Basic and Diluted    0.78    0.58  

Notes for reconciling the reclassifi ed Income Statement and the Income Statement:
(*) Includes “Revenues” and “Revenues from related parties”.
(**) Includes “Costs from related parties”, “Costs for purchases”, “Costs for services” and “Costs of labour “, net of “Capitalised costs for internally produced assets”.
(***) Includes the net amount of “Other operating income”, “Other operating income from related parties”, “Other operating costs “and “Other operating costs from related parties”.

 Balance sheet

 (EUR 000’s)    31.12.2008   31.12.2007 
 Non-current assets    254,051    257,064  
 Non-current liabilities    (44,847)    (47,195)  
   209,204    209,869  
 Inventories   92,874    98,305  
 Contract work in progress    145,681    151,895  
 Trade receivables    370,014    326,537  
 Trade payables    (213,501)    (194,510)  
 Advances from customers    (502,405)    (506,802)  
 Working capital    (107,337)    (124,575)  
 Provisions for risks and charges    (28,541)    (26,215)  
 Other net current assets (liabilities) (*)    (30,444)    (65,899)  
 Net working capital    (166,322)    (216,689)  
 Net invested capital    42,882    (6,820)  
 Group shareholders’ equity    238,259    177,315  
 Minority interests    493    386  
 Shareholders’ equity    238,752    177,701  
 Net financial debt (liquidity)    (195,870)    (184,521)  

Notes on the reconciliation between the reclassifi ed Balance Sheet and the Balance Sheet:
(*) Includes “Income tax receivables”, “Other current receivables from related parties (including “current receivables from related parties”) and “Other current assets”, net of “Income tax payables”, “Other current payables to related parties”(including “current payables to related parties”), “Other current liabilities” except for financial receivables from related parties (included in “Current receivables from related parties”).

At 31 December 2008, the consolidated net invested capital is equal to EUR 42,882 thousand compared with negative consolidated net invested capital of EUR 6,820 thousand at 31 December 2007; the difference of EUR 49,702 thousand is principally attributable to the change in net working capital which goes from a negative value of EUR 216,689 thousand at 31 December 2007 to a negative value of EUR 166,322 thousand at 31 December 2008, with a change of EUR 50,367 thousand. The change in the working capital balance can be attributed to the increase in trade receivables, only partially offset by the increase in trade payables.

The Group’s net financial position (prevalence of fi nancial receivables and cash/cash equivalents over borrowings) at 31 December 2008 is equal to EUR 195,870 thousand compared with a liquidity at 31 December 2007 of EUR 184,521 thousand and refl ects an increase in liquidity equal to EUR 11,349 thousand, after the payment of the dividend of EUR 19,992 thousand, pursuant to the resolution of the shareholders’ meeting of 1 April 2008.