Faiveley Transport: Orderbacklog at a New Record High

Regulatory News:

(€ millions)	Â	2010/2011	Â	2011/2012	Â	% change reported	Â	Organic growth	Â	Forex effects
Q4 : 1 Janv. – 31 Mars.	Â	287	Â	290	Â	1,1%	Â	(2,8)%	Â	0,5%
Annual sales	Â	914	Â	900	Â	(1,5)%	Â	(2,3)%	Â	(0,6)%
	Â		Â		Â		Â		Â
Â	Â	31 March 2011	Â	31 March 2012	Â	Â	Â	Â	Â	Â
Order book	Â	1, 453	Â	1, 690	Â	16,3%	Â	13,7%	Â	1,7%

Full year revenues: slight decrease of yearly sales in line with forecast

Faiveley Transport (Paris:LEY) generated sales of €290.3 million in the fourth quarter of the 2011/2012 financial year, an increase of 1.1% compared to the same period of 2010/2011. On a like-for-like basis, sales declined by (2.8)% over the quarter.

For financial year 2011/2012 as a whole, Group sales were €900.5 million, down (1.5)% compared to the previous year. On a like-for-like basis, sales decreased by (2.3)%. Foreign exchange had a negative effect of (0.6)% over the full year, while acquisitions had a positive contribution of 1.5%.

By geographic region and on a like-for-like basis, this change in sales reflects diverse regional developments:

• Sales decreased slightly in Europe (down 3% on a like-for-like basis). Strong growth in Italy and Eastern European countries offset the significant decline in deliveries to Spain, as this country remains the most severely affected by the economic crisis. France, still the Group's leading market (17% of total sales), recorded a slight decrease in sales due to the end of delivery of major projects in the previous financial year.
• Sales in the Asia-Pacific region were down 9% compared to the previous year, with a substantial decline in deliveries to China and India, which was offset by growth in other countries in the region, particularly Russia and the Middle East.
  As previously announced, the events that took place in China during the year linked to the Ministry of Railways, had an adverse effect on business activity, with an overall decline of 24% in sales.
  In India, the decrease in sales was due to a high comparable base, following deliveries for Delhi metro in 2010/11.

• Sales in Americas posted strong organic growth of 27%. This significant increase was primarily due to the success of the joint venture with Amsted Rail and the recovery of the US freight market.

The share of the Services activity improved to 36% of group sales, due to organic growth of 6% during the financial year, reflecting the strong resilience of its markets and the success of its strategy of expansion of the range of services.

+16% year-on-year increase in order book

Thanks to an exceptional year in terms of order intake, the Group posted a record order book of €1,690 million at 31 March 2012, reflecting an increase of 16.3% compared to the end of March 2011, the sixth consecutive year of double-digit growth.

The historic contract awarded by Siemens and Bombardier for the supply of brakes, on-board doors and air-conditioning systems for the first 130 ICx high-speed trains in Germany amounts to more than €210 million.

In addition to this major contract, the Group continued to book various new orders in all the regions where it operates.

• In Europe, Faiveley Transport will supply Siemens with doors for the Munich and Warsaw metros and air-conditioning systems for Eurostar trains. In Germany, Faiveley Transport will supply Bombardier with access doors for 90 German intercity trains (430 series) for the Frankfurt region. The Group also won three major air conditioning equipment orders with Stadler for 70 intercity trains in Switzerland. In France, Faiveley Transport's braking systems will be installed in 66 new metro cars of line 9 of the Paris Metro network, built by Bombardier and Alstom. In Sweden, operators Västtrafik and Skanetrafiken have ordered 30 Coradia Nordic (X61) intercity trains from Alstom, whose braking and air-conditioning systems will be supplied by Faiveley Transport.
• In the Asia-Pacific region, Faiveley Transport has been awarded the contracts for the Moscow metro air-conditioning systems and the contracts for the brakes, couplers, pantographs and on-board door systems for the Chennai metro. The Group also signed several contracts for the supply of on-board doors, air conditioning and brakes for new metro lines in China.
• In the Americas, the Group will equip the metros in Lima, Panama, Santo Domingo and the line 5 of the Sao Paolo metro, built by Alstom, with on-board door systems. Through its joint-venture with Amsted Rail, the Group has been awarded numerous orders for braking equipment for the US freight market.

Strong financial position in spite of EBIT decrease

The Group's operating profit is expected between 10% to 11% of sales, a decline of 3 percentage points of profit margin over the financial year, primarily due to project execution issues in China in the platform doors unit, and, to a lesser extent, to the decline in business activity on the Chinese and Spanish markets. The difficulties encountered on platform door projects managed in China have led to significant margin revisions on these contracts. In order to rapidly restore this situation, the Group has taken drastic reorganisation and restructuring measures.

During the financial year, cash generation was very satisfactory and allowed for a reduction in the level of net financial debt over the year, excluding the acquisition of Graham-White.

Favourable outlook for 2012/13

The Group expects renewed organic growth and improved profitability for the 2012/13 financial year, with the following sales outlook by region:

• In Europe, sales should remain broadly stable, with a further year of transition before the start in 2013/14 of deliveries on some of the major contracts awarded to the Group over the past few years.
• In Asia-Pacific, a recovery in Chinese investments should materialise in 2012 for locomotives and high-speed trains with the usual leadtime between orders and deliveries, while Russia should experience a further year of strong growth.
• In North America, the railway freight and locomotive segments remain buoyant. Thanks to the acquisition of Graham White, Faiveley Transport will strengthen its presence in the American locomotive and services markets.

Next communication: 7 June 2012 (after close of trading), 2011/2012 Annual Results.

FAIVELEY Transport, world leader in the railway industry

About Faiveley Transport Group

Faiveley Transport is a global leader in high tech components for rail systems. The Group supplies manufacturers, operators and railway maintenance bodies with the most comprehensive range of systems in the market: air conditioning, passenger access systems, platform doors and gates, braking systems, couplers, power collectors, passenger information and services.

FAIVELEY Transport employs more than 5,000 people in 24 countries.

For more information, please visit www.faiveleytransport.com.

Compartment B of NYSE Euronext Paris
Member of the CAC Allshare and CAC Mid 60 indices
ISIN: FR0000053142
Bloomberg: LEY FP / Reuters: LEY.FP

Contacts:

Faiveley Transport
Guillaume Bouhours
Chief Financial Officer
[e-mail]
+ 33 1 48 13 65 03
Maryline Berlin
Financial communications
[e-mail]
+ 33 1 48 13 65 76
NewCap
Emmanuel Huynh
Communications agency
[e-mail]
+ 33 1 44 71 94 99