Segment reporting

Reference should be made to paragraph 2.4 of the directors’ report for information on the indicators that management uses to assess the performance of the group.

The group operates in two business segments: via the Signalling business unit, in the above-ground railway and metro segment and, via the Transportation Solutions business unit, in the transportation systems segment. Reference should be made to the directors’ report for a more in-depth analysis of the main programmes, outlook and revenue for each business unit.
The results of the business units for the reporting period, compared to those of the corresponding period of the previous year, are as follows:

Operating profit (loss) by business unit

 First half of 2013 (€’000)
 Signalling Transportation
Solutions
Other
activities
 Eliminations  Total
Revenue  343,149  255,759  -  (15,510)  583,398
Other operating income
 3,461  4,278  14,312  (9,423)  12,628
External costs
 (200,212)  (191,315)  11,054  16,038  (364,435)
Personnel expense
 (108,301)  (39,567)  (14,777)  -  (162,645)
Other operating expense
 (4,234)  (2,144)  (11,523)  9,424  (8,477)
Amortisation, depreciation and impairment losses  (3,997)  (794)  (3,087)  -  (7,878)
Operating profit (loss)
 29,866  26,217  (4,021)  529  52,591

Operating profit (loss) by business unit

 First half of 2012 (€’000)
 Signalling  Transportation  Solutions  Other   activities
 Eliminations  Total
Revenue  334,174  242,440  -  (8,128)  568,486
Other operating income
 9,499  5,727  13,949  (8,885)  20,290
External costs
 (193,906)  (184,599)  14,179  8,483  (355,843)
Personnel expense
 (109,621)  (33,494)  (18,717)  (1)  (161,833)
Other operating expense
 (1,671)  (1,429)  (15,077)  8,887  (9,290)
Amortisation, depreciation and impairment losses
 (3,677)  (3,559)  (3,990)  -  (11,226)
Operating profit (loss)
 34,798  25,086  (9,656)  356  50,584

Working capital by business unit

 30.06.2013(€’000)
 Signallin
 Transportation
Solutions
  Other
activities
 Eliminations  Total
Inventories   119,081  44,892  -  (27,613)  136,360
Work in progress, net of progress payments and advances from customers
 (137,124)  (139,842)  -  27,613  (249,352)
Trade receivables
 334,099  313,073  6,389  (67,169)  586,392
Trade payables
 (187,290)  (297,921)  (9,883)  67,169  (427,925)
Provisions for risks and charges
 (9,577)  (3,846)  (1,237)  -  (14,660)
Operating working capital
 119,189  (83,644)  (4,731)  -  30,815
Other liabilities, net
 -  -  (12,585)  -   (12,585)
Net working capital
 119,189  (83,644)  (17,316)  -   18,230

Working capital by business unit

31.12.2012 (€’000)
 Signalling  Transportation
Solutions
  Other
activities  
 Eliminations  Total
Inventories   112,250  45,740  525  (26,931)  131,584
Work in progress, net of progress payments and advances from customers    (210,720)  (213,834)  -  26,931  (397,624)
Trade receivables    408,054  397,877  5,865  (63,049)  748,747
Trade payables    (195,121)  (355,042)  (13,449)  63,049  (500,563)
Provisions for risks and charges    (10,758)  (3,847)  (1,237)  -  (15,842)
Operating working capital    103,705  (129,106)  (8,296)  -  (33,698)
Other liabilities, net
 -  -  (14,449)  -  (14,449)
Net working capital    103,705  (129,106)  (22,745)  -  (48,147)

Registered Office: 16151 Genoa Via Paolo Mantovani, 3 - 5
Paid-in Share Capital EUR 70,000,000 R.E.A. n. 421689 Register of Enterprises of Genoa Tax Code 01371160662
A Finmeccanica Company