Bilancio Ansaldo - Ansaldo Energia

2011
A N N U A L
R E P O R T

Ansaldo Energia S.p.A.
16152 Genoa - Italy - Via N. Lorenzi, 8
Phone + 39 0106551 - Fax + 39 0106556209
ansaldoenergia@aen.ansaldo.it
www.ansaldoenergia.it

Disclaimer
This Annual Report 2011 has been translated into English solely for the convenience of the international reader.
In the event of conflict or inconsistency between the terms used in the Italian version of the report and the English version,
the Italian version shall prevail, as the Italian version constitutes the sole official document.

CONTENTS
06_Boards and Committees
08_Report on operation
15_Ansaldo Energia results in the three-year period 2009-2011
16_Analysis of performance and financial position
20_Financial position
22_Transactions with related parties
24_Alternative non-GAAP performance indicators
28_Information on the management and coordination activities of the
Company and transactions with related parties
30_Performance
40_Research, Development and Innovation
44_Human resources
48_Security Policy Statement
50_Environment
54_Health and safety at work
56_Performance and highlights of the main Group companies
60_Outlook
62_Registered offices of the Company
64_Report of the Board of Directors and proposals to the Shareholders’
Meeting
66_Financial statements and related notes at 31 December 2011
68_Statement of Financial Position (Balance Sheet)
70_Statement of cash flows
71_Statement of Changes in Equity
72_Statement of Comprehensive Income
74_Notes to the financial statements at 31 December 2011
74_1 General information
74_2 Basis of preparation and accounting standards used
75_3 Accounting standards adopted
83_4 Significant issues

84_5 Significant non-recurring events or transactions
86_6 Segment information
87_7 Intangible assets
88_8 Property, plant and equipment
89_9 Equity investments
90_10 Transactions with related parties
93_11 Receivables and other non current assets
94_12 Inventories
95_13 Contract work in progress and advances received
96_14 Trade and financial receivables
97_15 Tax receivables and payables
97_16 Other current assets
98_17 Cash and cash equivalents
98_18 Non current assets held for sale
99_19 Shareholders’ equity
101_20 Borrowings
102_21 Provisions for risks and charges and contingent liabilities
105_22 Employee obligations
106_23 Other current and non current liabilities
107_24 Trade payables
107_25 Derivatives
107_26 Guarantees and other commitments
109_27 Economic transactions with third parties
111_28 Revenues
112_29 Other operating income (costs)
112_30 Cost of goods and services
113_31 Personnel costs
114_32 Changes in inventories of finished goods, work in progress
and semi-finished goods
114_33 Depreciation, amortisation and impairment

114_34 Capitalisation of internal construction costs
115_35 Financial income and expense
115_36 Income taxes
118_37 Cash flow from operating activities
118_38 Financial risk management
121_39 Key management personnel compensation
122_Detailed schedules
136_Report of the Board of Statutory Auditors
140_Report of the independent auditors on the financial statements at 31
December 2011
ANSALDO ENERGIA ANNUAL REPORT 2011

Boards and Committees

BOARD
OF DIRECTORS
in office for the period 2011/2013
appointed by the Shareholders’ Meeting
on 6 June 2011
Francesco Giuliani
Chairman
Luigi Calabria
Vice Chairman
Giuseppe Zampini
Managing Director
Mark Adrian McComiskey
Director
Giovanni Pontecorvo
Director
Giovanni Soccodato
Director
Ryan Nicolas Zafereo
Director
ANSALDO ENERGIA ANNUAL REPORT 2011
BOARD
OF STATUTORY AUDITORS
in office for the period 2011/2013
appointed by the Shareholders’ Meeting
on 6 June 2011
Pietro Mastrapasqua
Chairman
Armando Cascio
Standing Auditor
Salvatore Randazzo
Standing Auditor
Enrico Casanova
Alternate Auditor
Silvio Tirdi
Alternate Auditor
INDEPENDENT AUDITORS
engaged for the period 2009/2011
PricewaterhouseCoopers S.p.A.
7

Report on operations

ANSALDO ENERGIA ANNUAL REPORT 2011
9

Shareholders
The main feature of the Italian and international economic scenario in 2011 was the high level of
uncertainty, which had a particularly negative impact on decisions to invest in infrastructure.
Despite a positive start of the year 2011, showing a growth in the main macroeconomic indicators
such as world gross domestic product, industrial production and international trade indexes, several
events then occurred during the year introducing high levels of uncertainty.
These were the earthquake in Japan and the resulting incident at the Fukushima nuclear power plant,
the highly turbulent political situation in several areas of the world (the Middle East and North Africa),
and finally the sovereign debt crisis in several Euro area countries, including Italy, which has had
serious repercussions on the banking system’s ability to fund investments at competitive costs.
Against this difficult backdrop, your Company received new orders totalling Euro 1,250 million, in line
with the previous year’s figure and maintaining backlog at about Euro 3,073 million. This is positive
not only in quantitative terms, but also because your Company has shown at a difficult time that it is
competitive enough to win orders in new markets (Turkey) or to defend its positions in markets where
it already plays a leading role (Algeria). It should also be remembered that this figure does not include
orders worth about Euro 330 million awarded to subsidiary company Yeni Aen Insaat A.S. in
connection with the Gebze project.
We would like to draw your attention in particular to the fact that in 2011 your Company and
subsidiary Yeni Aen Insaat A.S. were awarded a contract worth a total Euro 638 million to build and
then maintain a combined cycle plant rated about 825 MW in Istanbul’s Gebze industrial district in
Turkey.
Ansaldo Energia, in addition to its traditional role as turnkey builder of the plant, is also an investor in
this specific case.
Concurrently with the supply contract, your Company also stipulated an agreement with Unit NV to
invest in the equity of Yeni Elektrik, which will build the power plant and operate it based on a
merchant business model. Yeni Elektrik will finance the project, requiring the coverage of about USD
1,000 million total costs (including interest during the construction stage), of which:

• 70% funded by a pool of four local banks (about US$ 700 million) and;
• 30% in the form of share capital (about USD 300 million).
ANSALDO ENERGIA ANNUAL REPORT 2011
11
Under the terms of the investment agreement, your Company will acquire a 40% stake in the share
capital of Yeni Elektrik and subscribe the capital increases needed to provide the company with the
necessary funds, amounting to about USD 120 million (about Euro 86 million).
The equity investment is accompanied by a series of additional agreements with partner Unit to
ensure that the investment has a low risk profile.
The agreement also stipulates the provision by your Company of contingent equity to cover events
defined in the contract with the banks, in relation to which it has signed a contract with Finmeccanica
S.p.A., which will take on this risk for the entire project duration against payment of an insurance
premium in 2011.
Revenues of Euro 1,231 million are about 6.8% down on 2010.
It should be remembered that as a result of market stagnation and uncertainty over how long the
recovery will take, investments during the year were limited and the policy of carefully assessing
human resource needs continued.
Profitability has remained very positive, with ROS standing at 10%, a fall on the previous year due to
exceptional events.
In September 2011, in the first stage of the legal process regarding the Enipower question, the Court
of Milan found your Company guilty of violating Legislative Decree 231/2001. The Court ordered your
Company to pay a Euro 150,000 fine and the confiscation of a presumed 10% contract profit
quantified in Euro 98,700,000.
This proceeding, which has been pending for several years before the Court of Milan, has been duly
reported in the notes to the financial statements in recent years, but without making any provision
based on the unlikelihood to be found guilty.
After the aforementioned sentence was handed down, while reiterating its full confidence that the
sentence will be overturned when the case goes to appeal, your Company has made provision for the
fair value of this liability, estimated on the basis of the presumed residual duration of the proceeding
in the amount of Euro 82,548,000.
This provision had a negative impact on the result for the year, which would otherwise have been
largely positive.
REPORT ON OPERATIONS

On 26 September 2011, in the framework of a wider ranging project to reorganize and rationalize the
activities of your Company, the merger of subsidiary Ansaldo Fuel Cells S.p.A was completed.
The company already held the entire share capital of Ansaldo Fuel Cells S.p.A. since 1 January 2011.
This merger has and will continue to allow better use to be made of Ansaldo Fuel Cells’ highly
specialised resources, with significant streamlining of staff activities and maximization of the value of
intellectual property in the Fuel Cells product.
Looking at the most significant events in 2011 in more detail, it should first be pointed out that the
fall in volumes mainly affected the service segment, whereas plants and machinery are basically
unchanged on the previous year.
There was also strong growth in the renewable energy sector as a result of new orders received last
year.
Free operating cash flow stands at Euro -16.2 million, while the net financial position, after distributing
a dividend on previous year net income of Euro 65 million, stands at Euro 384 million.
In fact your Company was kept busiest during the year by financial management activities. As
described above, the global economic crisis put both customers and suppliers under strong pressure,
and the results reported were achieved only by maintaining a constant focus on financial issues.
100%
80%
60%
40%
20%
0%
REVENUES BY BUSINESS AREA
3
24 28
76 69 72
2009 2010 2011
n Renewable energy n Service activities n Plants and components
4
24

ANSALDO ENERGIA ANNUAL REPORT 2011
13
Your Company operates in a business sector featuring extensive internationalization, strong supply
side concentration and high technological and management complexity, resulting in general risks and
uncertainties, in addition to risks linked to the type of business and specifically to your Company.
General risks
Demand for goods and services in the power generation sector is driven by GDP and demographic
trends in individual countries. This market is also affected by specific environmental policies and the
price trend of the main fossil and other fuels used to generate electricity.
In 2011, despite the general uncertainty described above, demand for electric power held up and this
trend had a different impact on the various types of technology. There was significant recovery in gas
cycles, which have lower initial investments, shorter completion times and fewer risks because they
are based on consolidated technologies.
The foreseeable development scenario points to a gradual return of the market to pre-crisis levels in
2014, but with a different mix of energy sources featuring more gas cycles and renewable sources, at
the expense of conventional coal and nuclear thermal cycles.
This situation is also very diversified according to geographical area.
So far as demographics are concerned, there do not seem to be any specific signs of risk in this area.
International environmental policies are consistent with the development roadmap for the products
manufactured by your Company; it should be remembered that your Company’s main product (gas
turbines for combined and open cycles) represents the technology with the least environmental impact
compared to alternative forms of power generation using fossil fuels.
Finally, in 2011 the price of the main fossil fuels remained way below the maximum values touched in
the first half of 2008. At the present time there is no reason to believe that the price of fossil fuels
will vary significantly in 2012 and no specific future risks have therefore been identified for your
Company.
Risks relating to type of business
The international market in which your Company operates exposes it to financial risks. The Company
adopts an extremely prudent policy to the coverage of risks of a financial nature. Significant
REPORT ON OPERATIONS

operations in currencies other than the Euro subject to exchange risk are hedged by means of specific
forward contracts. To eliminate or minimize the credit risk, deriving in particular from work in foreign
countries, the Company adopts a policy of carefully analyzing commercial operations right from the
outset, closely examining the terms and conditions of payment to propose in offers and subsequently
in contracts of sale.
Specifically, according to the value of the contract, the type of customer and the importing country, all
the necessary precautions are taken to limit risk as regards both payment terms and the financial
instruments used, with recourse in the most complicated cases to insurance coverage or providing
assistance to help the Customer obtain supply financing.
Typical risks for your Company
Fierce competition in the reference markets in which your Company operates is reflected in risks
connected with its ability to maintain adequate levels of investment in innovative technology, in order
to ensure that the product portfolio remains competitive with that offered by the competition. So far
as the main gas turbine product is concerned, your Company has investment programmes under way
to ensure that the technical characteristics of the main models remain competitive.
The risk of a paradigm shift in technology introduced by the competition, such as to make your
Company’s products obsolete, cannot at the present time be assessed.
Uncertainty over the global economic trend in 2012 makes it impossible to have a high level of
confidence in forecasts. However, the substantial order backlog, a solid financial position and the
prospects for several negotiations currently in progress, lead us to believe that financial 2012 should
allow your Company to confirm or slightly improve on its economic results in 2011.
Finally, there were no significant events after the closure of the accounts such as to require comment
on their possible economic and financial effects.

Ansaldo Energia results for the three-year period 2009-2011
Euro milioni
Euro million
Euro million
1,750
1,500
1,250
1,000
750
500
250
0
180
150
120
90
60
30
0
90
75
60
45
30
15
0
-15
-30
1561
REVENUES
ADJUSTED EBIT
NET RESULT
Euro million
Units
NET FINANCIAL POSITION
0
2009 2010 2011 2009 2010 2011
154
2009 2010 2011
83
1322
140
65
1231
124
-16.3
ANSALDO ENERGIA ANNUAL REPORT 2011
15
EMPLOYEES
2009 2010 2011
ORDERS
0
2009 2010 2011 2009 2010 2011
Euro million
600
500
400
300
200
100
3,200
3,000
2,800
2,600
2,400
2,200
2,000
1,400
1,200
1,000
800
600
400
200
530
3014
1107
501
384
2935 2937
1271 1250
REPORT ON OPERATIONS

Analysis of performance
and financial position

The financial statements of Ansaldo Energia S.p.A.
at 31 December 2011 have been prepared in
accordance with the International Accounting
Standards and the International Financial Reporting
Standards (IAS/IFRS) endorsed by the European
Commission and supplemented by the relevant
interpretations (Standing Interpretations Committee
ANSALDO ENERGIA ANNUAL REPORT 2011
17
– SIC and International Financial Reporting
Interpretations Committee – IFRIC) issued by the
International Accounting Standard Board (IASB).
Reclassified statements have been prepared and
commented on to provide further information about
the performance and financial position of Ansaldo
Energia S.p.A.
Euro/thousand 2011 2010
Revenues 1,231,970 1,321,859
Costs for purchases and personnel (1,093,671) (1,161,890)
Amortisation and depreciation (25,016) (23,183)
Write-downs
Other net operating revenues (costs) 11,020 2,809
Adjusted EBITA 124,303 139,595
Adjustments 82,548
EBIT 41,755 139,595
Net financial income (charges) (4,695) (22,512)
Income taxes (53,332) (51,704)
NET PROFIT BEFORE DISCONTINUED OPERATIONS (16,272) 65,379
Result of discontinued operations
NET PROFIT (16,272) 65,379
2011 closed reporting a drop in revenues of about
6.8%. This fall is mainly attributable to the service
segment (-20%) and to a lesser extent to the plant
and machinery area, while renewable and distributed
energy sources are growing (+37%) compared with
2010. In the service segment, against a slight
increase of 3% in the contribution of long term
service agreements, there was a reduction of the
same amount in current services, with a fall of 25%
in spare parts and 83% in the solutions product
segment.
Service business represents about 24.4% of
revenues (28.5% in 2010) and about 45.6% of the
gross margin generated during the year.
EBIT fell Euro 97.8 million and stands at 3.4% of
revenues (10.5% in 2010).
The total includes non-recurring costs amounting to
about Euro 85.8 million; without these costs EBIT
would have stood at Euro 127.6 million or 10.4%.
In 2010 EBIT included Euro 6.5 million attributable
to management fees charged by Finmeccanica
S.p.A.; without these costs EBIT would have stood at
Euro 146 million or 11.1% of revenues.
Non-recurring charges in 2011 include the provision
of about Euro 82.5 million to the litigation risk
reserve set up to cover the sanctions imposed by
the Court of Milan, which found your Company guilty
pursuant to law 231 on the administrative
responsibility of legal persons for crimes committed
by their employees.
Your Company has set aside the fair value of this
liability, calculated on the best possible estimate of
the duration of the next two stages in the legal
process (Courts of Appeal and Cassation); EBIT also
includes provisions to the incentive plan reserve of
Euro 2.6 million and Euro 0.7 million management
fees.
Research and development expenditure rose to Euro
29.6 million in 2011, of which Euro 18.6 million was
recognized in the income statement and Euro 11
million capitalized to intangible assets, against Euro
31.3 million in 2010, of which Euro 21.3 million was
recognized in the income statement and Euro 10
million capitalized.
ANALYSIS OF PERFORMANCE AND FINANCIAL POSITION

The balance of other net operating revenues/(costs)
was a negative Euro 71.5 million, as opposed to a
positive Euro 2.8 million in 2010.
This item includes the provision for risks described
above, the Euro 3.0 million provision to the
guarantee reserve, indirect taxes for the year
amounting to Euro 2.8 million net of insurance
refunds totaling Euro 14.2 million, the release of
reserves of Euro 1.5 million relating to Ansaldo Fuel
Cells set aside in previous years, exchange
differences on cost items of Euro 0.6 million and
other minor items.
Amortization and depreciation rose by about Euro 2
million, attributable to the rise in tangible fixed
assets as a result of investments.
Of net financial income/(costs), standing at a
negative Euro 4.7 million, Euro 1,9 million refers to
the dividend received from subsidiary Ansaldo
Nucleare S.p.A. and the release of investment writedown
provisions relating to Indian company ASPL
amounting to Euro 0.9 million.
The prospects and profitability of Ansaldo
Thomassen and Ansaldo ESG were carefully analyzed
and their fair value calculated, requiring a write-down
of Euro 7.0 million and Euro 1.5 million respectively
due a permanent loss of value of the investments.
Financial income associated with financial
management stands at Euro 3.9 million, while
financial exchange rate differences total Euro -1.3
million.
The 2010 value of Euro -22.5 million included,
among other amounts, the write-down of the
investment in Ansaldo Fuel Cells of about 25.0
million due to a permanent loss of value.
Income tax amounting to Euro 53.3 million (Euro 52
million in 2010) includes, in addition to Euro 31.3
million IRES (corporate income tax), Euro 9.4 million
IRAP (regional business tax) and Euro 7 million
foreign taxes, net of compensation in connection
with extra income tax set aside in previous years
amounting to Euro 0.5 million.
Taxation rose on the previous year, despite the fall in
income, due to the non-deductibility of non-recurring
charges, as a result of which the IRAP and IRES tax
bases are higher than in 2010.
The table below breaks down the balance sheet at
31 December 2011, with comparative information at
31 December 2010:
Euro/thousand 12.31.2011 12.31.2010
Non current assets 278,820 177,987
Non current liabilities 281,729 117,581
(2,909) 60,406
Inventories 371,221 359,090
Trade receivables 296,727 234,733
Trade payables 988,831 1,007,306
Working capital (320,883) (413,483)
Provisions for short term risks and charges 39,686 50,233
Other net current assets (liabilities) (6,454) (3,872)
Net working capital (367,023) (467,588)
Net invested capital (369,932) (407,182)
Shareholders’ equity 13,693 94,672
Net financial debt (cash and cash equivalents) (383,625) (501,187)
Net (assets) liabilities held for sale – 667
Non current assets are basically attributable to
intangible assets (Euro 25.1 million), property, plant
and equipment (Euro 131.1 million), other
receivables (Euro 111.0 million), equity investments
(Euro 10.6 million) and deferred tax assets (Euro
0.9 million).

Other receivables rose against the previous year as
a result of the quota paid into Yeni Elektrik (Euro
26.2 million) and prepaid income deriving from the
acquisition by parent company Finmeccanica S.p.A.
of the right to use the Ansaldo Energia trademark
until 31 December 2035 for Euro 91.8 million, net
of Euro 3.7 million amortization and depreciation
recognized in the income statement and the
reclassification of the same amount to short term;
intangible assets rose Euro 9 million on the
previous year, mainly as a result of the capitalization
of development costs for the AE94.3A and AE94.2
model gas turbines, net of about Euro 2 million
amortization in the period calculated using the
‘‘stamp method’’ of accounting.
Investments in subsidiaries fell Euro 7,6 million
following the write-down of the carrying value of
subsidiary companies Ansaldo Thomassen (Euro -
7.0 million) and Ansaldo ESG (Euro -1.5 million), net
of the increase resulting from the payment of Euro
0.9 million equity into Turboenergy S.r.l. Non-current
liabilities include severance pay and other definedbenefit
plans for employees amounting to Euro 30.7
million (Euro 34.8 million in 2010) and provisions
for risks of Euro 245.6 million against Euro 80
ANSALDO ENERGIA ANNUAL REPORT 2011
19
million in 2010. Of the increase in this item, about
Euro 77.5 million is attributable to the net increase
in the reserve for post-order closure costs incurred
to complete projects nearing completion in Algeria
(Euro +85.5 million), net of uses in 2011 for other
projects; Euro 82.5 million to the provision to cover
the sanctions imposed by the Court of Milan; and
Euro 4.5 million to the increase in provisions for
taxes.
Net working capital rose Euro 100.6 million.
This deterioration is entirely attributable to
operating items because operating working capital
(inventory, work in progress net of advances and
trade payables and receivables) increased Euro
92.6 million.
Shareholders’ equity stands at Euro 13.7 million
and is represented by share capital amounting to
Euro 12.0 million, reserves generated by conversion
to IAS/IFRS, and retained earnings and other
reserves amounting to Euro 18 million, in addition
to the loss for the year of Euro 16.3 million.
Cash flow before strategic investments is a
negative Euro 16.2 million, while Funds From
Operations stand at Euro 22.1 million, a fall of Euro
37.6 million on the previous year.
Euro/thousand 2011 2010
Cash and cash equivalents at 1 January 16,831 30,135
Cash flow from operating activities 151,652 167,235
Changes in other operating assets and liabilities (129,457) (107,452)
Funds From Operations (FFO) 22,195 22,195 59,783 59,783
Change in working capital (22,072) 36,230
Cash flow generated by (used in)
investing activities 123 96,013
Cash flow from ordinary investment activities (16,303) (25,294)
Free operating cash-flow (FOCF) (16,180) 70,719
Strategic operations
Changes in other financing activities (36,044) (18,624)
Cash flow generated by (used in)
investing activities (52,347) (43,918)
Dividends paid (65,338) (82,000)
Cash flow from other financing activities 129,432 15,672
Cash flow generated by (used in)
investing activities 64,094 (66,328)
Exchange rate differences on cash and cash equivalents 929
Cash and cash equivalents at 31 December 28,701 16,831
ANALYSIS OF PERFORMANCE AND FINANCIAL POSITION

Financial position

Net cash and cash equivalents at 31 December
2011 are reported in the table below, with
comparative information at 31 December 2010.
The net financial position fell as a result of the
payment of a Euro 65.3 million dividend to the
shareholder and negative cash flow during the year.
Of financial receivables from related parties, Euro
357.2 million refers to cash and cash equivalents
deposited according to Group policy with
Finmeccanica, as part of a cash pooling scheme
which benefits all group companies by rationalising
and optimizing recourse to the banking system.
Cash and cash equivalents are remunerated at the
best market conditions, also with recourse to
temporary investments.
ANSALDO ENERGIA ANNUAL REPORT 2011
21
Ansaldo Energia also pools the treasury
management of its subsidiaries, applying the same
market rates.
This justifies the presence of financial payables to
related parties, basically attributable to the cash
and cash equivalents of Ansaldo Nucleare and
Ansaldo Esg, while receivables include financing for
the activities of Ansaldo Thomassen and Indian
subsidiary company ASPL.
Receivables and payables from/to the banking
system should therefore be considered as residual
and, so far as payables are concerned, attributable
for the most part to term deposits or foreign
currency which cannot be transferred in connection
with local activities.
Euro/thousand 12.31.2011 12.31.2010
Short term financial payables 2,089 1,280
Medium/long-term financial payables
Cash or cash equivalents 28,701 16,831
BANK AND BOND DEBT (26,612) (15,551)
Securities
Financial receivables from related parties (357,180) (489,658)
Other financial receivables
FINANCIAL RECEIVABLES AND SECURITIES (357,180) (489,658)
Financial payables to related parties 3,855
Other short term financial payables 167 167
Other medium/long term financial payables
OTHER FINANCIAL PAYABLES 167 4,022
NET FINANCIAL DEBT (CASH AND CASH EQUIVALENTS) (383,625) (501,187)
FINANCIAL POSITION

Transactions with related
parties

Transactions with related parties refer to ordinary
management activities and are carried out at arm’s
length, as is settlement of interest bearing
receivables and payables when not governed by
specific contractual conditions.
They mainly relate to the exchange of goods, the
performance of services and the provision and use
of funds from and to the parent company and
subsidiary and associated companies, joint
ventures and consortia.
Furthermore, the application of the revised version
of IAS 24 has had disclosure-related effects with
ANSALDO ENERGIA ANNUAL REPORT 2011
23
regard to related parties and required the
modification of comparative data referring
exclusively to the related parties presented in the
income, equity and cashflow statements, in order to
account for the related parties which are companies
subject to significant control or influence by the
Italian Ministry of the Economy and Finance (MEF).
Income and equity balances with related parties,
and their percentage of the total, are detailed in the
section containing the Financial Statements and
Related Notes at 31 December 2011.
TRANSACTIONS WITH RELATED PARTIES

Alternative non-GAAP
performance indicators

Management assesses the Company’s economic
and financial performance using several indicators
not envisaged by IFRSs.
As required by Communication CESR/05 - 178b,
the components of each of these indicators are
described below:
EBIT - Equal to the pre-tax and pre-financial
income/expense result, without any adjustments.
EBIT also excludes income and expense deriving from
the management of non consolidated equity
investments and securities, as well as the results of
any transfers of consolidated equity investments,
which are classified in the “financial income and
expenses” tables or, so far as concerns equity
investments assessed on a shareholders’ equity
basis, under the item “effects of the assessment of
equity investments on a shareholders’ equity basis”.
The value of this indicator in 2011 stands at Euro
41.8 million, against Euro 139.6 million in 2010.
Adjusted (Adj) EBITA - Obtained by eliminating the
following components from EBIT, as defined above:
ANSALDO ENERGIA ANNUAL REPORT 2011
25
� any goodwill adjustments (impairment);
� amortization of the portion of the purchase price
allocated to intangible assets as regards nonrecurring
operations (business combination), in
accordance with IFRS 3;
� restructuring charges with regard to major plans
defined;
� other non-recurring income or charges
attributable to particularly significant events not
relating to ordinary business.
The Adjusted EBITA determined in this way is used
to calculate ROS (Return On Sales) and ROI
(Return On Investment) (the ratio between Adjusted
EBITA and the average value of invested capital in
the two financial years presented for the purposes
of comparison). The value of this indicator in 2011
stands at Euro 124.3 million against Euro 139.6
million in 2010.
The reconciliation between the result before
taxation and financial items and Adjusted EBITA for
the current and previous years is given below:
Euro/thousand 12.31.2011 12.31.2010
EBIT 41,755 139,595
Provision for risks 82,548
Adjusted EBITA 124,303 139,595
Adjusted Net Income - Obtained from the net
income reported in the financial statements by
eliminating the positive and negative income items
attributable to events considered to be nonrecurring
because of their significance and the fact
Euro/migliaia 12.31.2011 12.31.2010
Net profit (loss) (16,272) 139,595
Provision for risks 82,548
Adjusted pre-tax profit 66,276 139,595
Free Operating Cash-Flow (FOCF) - The sum of cash
flow generated from/(used in) operations and the
cash flow generated from/(used in)
investments/divestments of tangible/intangible
assets and equity investments, net of cash flow
deriving from the acquisition or sale of equity
that they cannot be regarded as forming part of the
company’s ordinary operations.
The reconciliation between Net Income and
Adjusted Net Income is given below:
investments which, in relation to their nature and
importance, are considered as “strategic
investments”. The formation of FOCF for
comparison with previous years is presented in the
reclassified cash flow reported in the previous
paragraph. The value of FOCF at 31 December
ALTERNATIVE NON-GAAP PERFORMANCE INDICATORS

2011 stands at Euro -16.2 million, a sharp fall
against Euro 71 million at 31 December 2010.
Funds From Operations (FFO) - Given by cash flow
generated from operations, net of the change in
working capital.
The formation of FFO for comparison with previous
years is presented in the reclassified cash flow
reported in the previous paragraph. The value of
FFO at 31 December 2011 stands at Euro 22.1
million, against Euro 59.8 million at 31 December
2010.
Economic Value Added (EVA) - This indicator is the
difference between Adjusted EBITA net of taxation
and the cost of the average value of invested
capital in the two years presented for the purposes
of comparison, measured on the weighted average
cost of capital (WACC). In 2011 EVA stands at Euro
111.4 million, against Euro 131.2 million in 2010.
The WACC rate used for both 2011 and 2010 is
10.4%.
Working Capital - Includes trade receivables and
payables, work in progress and advances from
customers. At 31 December 2011 Working Capital
amounts to Euro -320.9 million, against Euro -
413.5 million at 31 December 2010.
Net Working Capital - This indicator is given by
Working Capital net of the reserve for current risks
and other current assets and liabilities. At 31
December 2011 Net Working Capital stands at
Euro -367 million, against Euro -467.6 at 31
December 2010.
Net Invested Capital - This indicator is defined as
the sum of non current assets, non current
liabilities and Net Working Capital. Net Invested
Capital at 31 December 2011 stands at Euro
369.9 million, against Euro -407.2 million at 31
December 2010.
Net Financial Indebtedness - The method of
calculation complies with the provisions of
paragraph 127, CESR/05-054b recommendations,
which implement Regulation (EC) no. 809/2004.
The amount at 31 December 2011 stands at Euro -
383.6 million, against Euro -501.2 million in 2010.
Orders - This indicator is given by the sum of
contracts signed with customers during the year,
with contract characteristics such as to be
recorded in the order book. New orders in 2011
amount to about Euro 1,250 million, against Euro
1,271 million in 2010.
Order backlog - This indicator is given by the
difference between new orders and turnover
(economic) in the reference period, net of the
change in contract work in progress. This
difference is added to the backlog in the previous
period. The Order backlog at 31 December 2011
stands at Euro 3,072 million (Euro 3,132 million in
2010).
Employees - This indicator is given by the number
of employees entered on the payroll on the last day
of the financial year. At 31 December 2011, 2,937
employees were entered on the payroll (2,935 in
2010). The average number of employees on the
payroll in 2011 (taking account of part-time
reductions, maternity leave, sabbaticals, etc.)
stands at 2,901 (2,942 in 2010).
Return On Sales (ROS) - (calculated as the ratio of
Adj EBITA to revenues) stands at 10.1% against
10.6% in 2010.
Return On Investment (ROI) - (calculated as the
ratio of Adj EBITA to the average value of net
invested capital in the previous two years
presented for comparison purposes).
The indicator is not applicable.
Return on Equity (ROE) - (calculated as the ratio
between net result and the average value of
shareholders’ equity in the two years presented for
comparison purposes) stands at -30% against
63.81% in 2010. This indicator is not very
meaningful due to the limited amount of
shareholders’ equity.

ANSALDO ENERGIA ANNUAL REPORT 2011
27
ALTERNATIVE NON-GAAP PERFORMANCE INDICATORS

Information on the management
and coordination activities of
the Company and transactions
with related parties

In accordance with the provisions of Article 2497
bis of the Italian Civil Code, it should be noted that
the Company is subject to management and
coordination by the Group Parent Finmeccanica
S.p.A. and First Reserve Power.
Highlights of the latest financial statements
approved by Finmeccanica S.p.A. are given in
Appendix no. 12.
Below are the figures for transactions with related
parties in 2011 and in the previous year (details by
company are provided in Notes 10 and 26).
Related parties include not only the Group Parent
and the companies in which Ansaldo Energia S.p.A.
has direct or indirect interests, but also the other
related parties as defined by International
Accounting Standards.
Euro/thousand Parent Companies Subsidiaries Associates (*) Companies Total
controlled
or subject to
significant influence
by the Italian MEF
Current receivables
- financial 309,330 47,850 357,180
- trade 385 10,441 4,081 37,367 52,274
- other 25,867 25,867
Current payables
- financial –
- trade 13,641 1,504 7,051 1,994 24,190
- other 18,096 18,096
Revenues 5,298 2,718 16,165 24,181
Other operating revenues 192 192
Costs 20,709 1,440 17,253 3,327 42,729
Financial income 2,994 719 3,713
Financial charges 24 27 8 59
(*) Companies subject to direction, control and coordination by Finmeccanica S.p.A.
ANSALDO ENERGIA ANNUAL REPORT 2011
29
INFORMATION ON THE MANAGEMENT AND COORDINATION ACTIVITIES

Performance

Market prospects and competitive
positioning
Global performance of the power generation market
and prospects
The trend in the global electric power market is
closely linked to the global macroeconomic
situation.
After the dramatic global financial crisis in 2009
and modest recovery in 2010, the main feature of
2011 was a worsening of the situation, with the
transformation of the financial crisis into a
sovereign debt crisis, particularly in Europe and in
the US, and a stabilization of growth in emerging
economies.
The ongoing sovereign debt crisis has led, among
other things, to a downward revision of global
economic growth forecasts for 2012-2013, from
about 5% to about 4%, while the clear disconnect
between growth in advanced and emerging
economies has been confirmed.
As a result, demand for electric power in 2009 fell
for the first time since the Great Depression of
1929. In 2010 it reported an increase of about
4.5% against 2009, while in 2011 lower growth of
about 4% is estimated against 2010 figures
(Economist Intelligence Unit). This increase is
mostly attributable to growth in emerging
economies.
So far as concerns medium to long term
prospects, the benchmark scenario established by
the International Energy Agency (WEO, November
2011) estimates an annual increase in demand for
electric power of 2.4% for the next 25 years.
However, it is undeniable that other events have
had an impact on this market, including for
example the incident in 2011 at the Fukushima
Dai-ichi power plant, which affected public opinion
in certain countries, causing delays in the short
term, accelerated decommissioning and the
cancellation of national nuclear programmes in
some cases.
The consequences of the incident will also have an
impact in the mid to long term as the loss of
electricity production from nuclear power will have
to be replaced by other energy sources.
ANSALDO ENERGIA ANNUAL REPORT 2011
31
Some international forecasters (WEO 2011 - IEA)
are even talking about a possible “golden age” of
gas, which could replace some of the lost future
production from nuclear sources, because of the
operating flexibility it offers.
So far as concerns the mix of fuels used to
generate electric power, today coal is the main
source at over 40%, followed by gas at 21%;
nuclear power contributes 13% and hydroelectric
power 16%, while oil represents a marginal 4%.
In 2011 other renewable sources (biomasses,
wind, solar) therefore contributed about 5% of
world electric power production (source: World
Energy Outlook 2011 - EIA).
The global market for power generation plant and
machinery in 2011 is estimated at about 270 GW,
or slightly higher than in 2010, but about 25-30%
lower than the values in the peak 2007/2008
period and in any case in line with the historical
global growth trend in the sector.
In more detail, in 2011 orders for coal-fired plants
are expected to hold up, while a slight rise is
forecast for gas-fired plants.
We also draw your attention to the fact that
following the Fukushima incident, there was a
strong contraction in new nuclear segment orders,
although certain key countries confirmed their
interest in investing in this sector, including China,
India and Russia.
Finally, power production from renewable sources,
driven in part by the incentive schemes recently
introduced in many countries, continues to show
the strong growth trend that has been a feature of
the segment in recent years.
It seems unlikely that the worsening current
macroeconomic scenario will contribute to a
positive review of the investment plans drawn up
by the main utilities operating in the power
generation sector, most importantly in the US and
Europe.
The mix of fuels is expected to evolve with a
significant rise in gas for electric power generation
for the following reasons: the discovery of new
non-conventional, lower cost gas reserves (shale
gas), potential growth in Chinese demand as a
result of constraints on the use of coal, the use of
gas as a back-up for renewables and, finally, the
PERFORMANCE

ongoing transition in the rest of the world from
more polluting sources (coal and petrol) to cleaner
fuels such as gas.
However, a great deal will depend on the
international policies introduced in the short term
to reduce pollutant emissions and increase energy
security. In the absence of new binding
international agreements, electric power generation
will nevertheless continue to depend for the most
part in coming decades on increasingly efficient
plants fired by fossil fuels (mainly gas).
The use of sources with a reduced environmental
impact will continue in the coming years,
supported by various factors including: continuing
government incentives; a post Fukushima recovery
in nuclear power (China, India and Russia in
particular); the policies introduced by the main
economies regarding procurement security for
fossil fuels and protection against the risk of price
volatility.
Performance of the reference market
and prospects
The main reference market for Ansaldo Energia is
represented by countries with 50Hz networks
(excluding China), where gas plants (open or
combined cycle) are sold that use gas turbines
rated over 50MW.
Figures for 2011 point to an increase in demand in
this segment, estimated at about 10% compared
with 2010 values (orders for about 24 GW).
However, market conditions worsened in the last
semester of the year, basically due to the
worsening of the sovereign debt crisis.
Of the areas of interest to Ansaldo Energia, Europe
is the most affected by the aforementioned crisis
and continues to report very low order levels, while
there are signs of market recovery in Russia and
Turkey.
MENA (Middle East and North Africa), however,
continues to hold up despite the geopolitical
tensions that initially blocked new orders.
South East Asia, and India in particular, confirms
that it is extremely interesting in terms of the
number of orders raised.
If we look at orders for gas turbines (used for open
or combined cycle plants) in the main reference
market, Ansaldo Energia market share in 2011
stands at around 8%, a slight improvement on 7%
in 2010.
In 2011, in the same reference market, while
General Electric confirmed its leadership (35%), it
lost market share to Siemens (more than 25%).
Alstom and MHI seem to be starting to recover
from the deep crisis that was a feature of 2009
and 2010.
BHEL, as a new market player, reports a market
share of about 5%.
In the medium term, based on the macroeconomic
and geopolitical situation, the two-year period
2012-2013 is expected to be difficult, with Europe
looking for a way out of the crisis, MENA stabilising
and South East Asian countries looking to confirm
their recent high growth trends.
In general terms we can see the increasing
importance of orders in South East Asian
countries, which could be confirmed in the mid
term too.
In the long term the importance of gas is
confirmed as the primary energy source for electric
power generation, most importantly with a view to
environmental concerns and as a backup for
renewables.
Sales
In 2011 Ansaldo Energia received total orders
worth Euro 1,250 million.
This represents a slight fall of 1.7% due to the
combined effect of growth in new units (+21%) and
a reduction in renewables (-85.5%) and service
activities (-8.4%).
In the service segment, flow activities rose 59.7%
while LTSAs fell significantly by 81.3%. We remind
you however with regard to the Gebze-Yeni Elektrik
operation, that the LTSA contract (worth Euro
141.4 million) was awarded to subsidiary company
Yeni AEN.
2011 orders break down as follows by type of
supply and geographical area, with 2010 results
provided for comparison:

36
2
0,5
ORDERS BY TYPE OF SUPPLY (EURO/MILLION)
2011 2010
% 38
%
63
2011
Plant and machinery 783
Service activities 448
Renewable energy 20
ORDERS BY GEOGRAPHICAL AREA (EURO/MILLION)
5
4
Italy 312
Europe 355
Middle East 71
Plant and machinery 647
Service activities 489
Renewable energy 135
2010
38.5 % 36 %
2
1
Italy 335
Europe 389
Middle East 28
31
27
Africa 479
Asia 3
Americas 15
ANSALDO ENERGIA ANNUAL REPORT 2011
33
11
2
25
28
51
Africa 461
Asia 51
Americas 21
PERFORMANCE

Plant and machinery
New orders for plant and machinery in 2011
improved on 2010, confirming the lasting effects of
the economic crisis and its impact on investments
in the sector.
So far as geographical distribution is concerned,
the market in western Europe continued to
stagnate, making the internationalisation of
Ansaldo Energia increasingly necessary in non
traditional markets too.
2011 was a positive year for your Company’s
international growth.
The volume of new orders, standing at about Euro
782.6 million, while penalised by the sharp drop in
demand, exceeded the 2010 figure.
The main new orders during the year were:
� the supply of machinery for the 800 MW Gebze
combined cycle plant in Turkey, to be built on a
joint basis with subsidiary company Yeni Aen;
� the supply of two 300 MW simple cycle plants in
Algeria;
� the supply of a 350 MW steam turbine for the
Bahna power plant (Egypt);
� the supply of two 350 MW steam turbines for
the Giza power plant (Egypt), with an option for a
third unit;
� the supply of 3 geothermal steam turbines for
Enel Green Power in Italy.
The current world scenario, featuring deep
uncertainty about how long it will really take to
recover from the financial crisis and strong political
instability, particularly in traditional markets, has
driven Ansaldo Energia to increase its activities,
presence and supply capacity in new areas and
particularly in Eastern Europe, South America and
the Middle East.
Agreements have been signed with international
EPC players and local partners in order to give the
company a more effective presence in these new
countries. The confidence shown by customers in
Ansaldo Energia’s technical capabilities, flexibility
and efficient execution put our company in the
best position to pursue its growth and expansion
path in new markets.
Service activities
The rising trend in Service segment orders was
reversed in 2011, with a drop of 8.4% to a total of
Euro 447.6 million new orders.
This does not include the LTSA contract for the
Gebze power plant, which was awarded to
subsidiary company Yeni AEN as a result of the
sales effort by your Company.
If this contract were taken into account, the
positive trend would have been confirmed (+20%
vs. 2010), despite the economic crisis which has
affected the sector since 2008 and which has not
yet come to an end.
There was a negligible rise in European energy
demand in the first half of 2011 and a weak
recovery in the second half, but Ansaldo Energia,
despite the widespread crisis in the area,
successfully managed to win 75% of the company’s
total new orders in this area.
In this framework, Service activities have improved
on the results expected, mainly because of the
loyalty of major customers like Enipower in Italy
and the acquisition of new European customers
like the Turkish Yeni Elektrik.
Current service activities (spare parts, repairs,
maintenance and repowering) reported a rise on
the previous year.
The following paragraphs comment on performance
in the various geographical areas in 2011.
Italy
Although the energy market has felt the European
crisis, Ansaldo Energia has maintained its
leadership position on the domestic market, which
represents 62% of the total volume of service
orders in 2011, demonstrating that it can provide
valuable technical support for companies that have
to comply with the new European directives on
industrial emissions by the end of 2012, at the
same time as increasing their operating flexibility.
With this in mind, Enipower has set a major
programme in motion to optimise the performance
of its plants and increase their rating and flexibility.
Overall, the volume of orders received from
Enipower alone represented about 40% of total
service orders in 2011, confirming its position of

top-ranking customer for the year. Also worthy of
note in terms of volume are Tirreno Power and
Enel, confirming the confidence these customers
have in your Company.
Europe
The European market represents about 12.4% of
new orders in 2011 by volume. Ansaldo Energia’s
operations in the Iberian peninsula were
consolidated by the new long term contract worth
over Euro 35 million to maintain the Escatron and
Algeciras combined cycle thermoelectric power
stations owned by E.ON Generación.
Africa
This area confirms that it is critical in terms of
current service activity growth.
The result reported of about Euro 69 million is
basically attributable to orders for the new Labreg
and Ain D’jesser plants. Subsidiary company
Ansaldo Thomassen delivered a good result in the
area with the LTSA contract worth about Euro 10
million stipulated in Ghana with public entity VRA.
America
This area, which continues to be of great interest
with new orders worth about Euro 15 million, has
been affected mainly by delays on a major
repowering project.
The results are nevertheless satisfying, with new
orders in the competitive hydro segment and the
reinstatement of the Bolivian EVH as a customer.
The main customers in the area, in addition to
NA.SA, are AES Chile, AES Argentina, Endesa Chile,
E-CL and Tractebel Energia (both GDF Suez
companies) and Covalco Ecuador.
Middle East
Despite a strong local presence, this is the area,
and Dubai in particular, most affected by the
international crisis and by the widespread social
and political upheaval that has had an impact on
many Arab countries which are important for
Ansaldo Energia.
Some important initiatives have been delayed.
These problems have be offset in part by the
Damanhour and Giza contracts in Egypt, by the
ANSALDO ENERGIA ANNUAL REPORT 2011
35
renewal of the LTPA agreement for Barka (Oman)
and by the performance of subsidiary company
ATG.
Asia and Oceania
This area represents a great opportunity because
of its enormous market development prospects,
even though Ansaldo Energia does not have a
significant installed fleet. In 2011 it was
particularly penalised by organisational changes
and the postponement of several important
projects in India. The new local service structure is
expected to deliver an important boost in 2012.
Renewable and Distributed Energy Resources
In 2011 there were significant legislative
developments in Italy regarding the incentive
system for photovoltaic plants and the Company
decided it was appropriate to devote more effort to
creating the conditions for consolidation.
Orders in 2011 were therefore limited to two major
supplies for photovoltaic plants, one in Montenero
di Bisaccia, for HFV Montenero srl, and one in
Stigliano for General Construction S.p.A., as well
as a revenue-increasing variant for a completed
photovoltaic plant.
In the meantime, marketing and technology
development initiatives have identified important
new opportunities in the field of Concentrated
Solar Power (CSP), in the biomass treatment sector
and in the installation of photovoltaic and/or wind
power plants abroad.
In CSP, Ansaldo Energia has successfully qualified
for a tender in Algeria as part of a consortium with
an international partner and has begun to market
itself as a supplier of steam turbines. In the
biomass segment, Ansaldo Energia has
established business relations with possible users
of gasifiers, focusing marketing actions on
applications of the solutions it will shortly be able
to provide.
Turning to plants in foreign countries, the target
markets have been identified and plants will be
built in these countries if and where the contingent
international situation is favourable.
PERFORMANCE

Production
Despite the continuing global economic crisis and
its negative effect on the energy market, there was
only a slight fall in volumes of both turnkey plants
and individual machines, with a limited reduction in
both factory and engineering workload.
The company therefore continued its policy of not
introducing measures which could have a
significant social impact, and of optimising
planning and outsourcing.
The following machines were delivered in 2011:
1 turnkey simple cycle gas turbine plant (6th
October);
1 single shaft combined cycle (Sousse);
1 dual shaft combined cycle (Deir Ali);
18 separate components.
Design work is underway on 3 turnkey plants.
Manufacturing
In 2011, the Genoa Campi production facility
manufactured, assembled and delivered the
following complete machines:
5 AE943A gas turbines;
6 AE942 gas turbines;
8 steam turbines;
15 turbogenerators;
1 hydraulic generator;
for a total of 35 units.
It should also be pointed out that in 2011 the hot
blade line achieved the production target of about
12,000 hot blades.
Work sites and plant start-ups
2011 confirmed the trend established in previous
years of a growing presence on foreign markets.
The following plants/machines were completed
and delivered:
• Bayet (400 MW combined cycle);
• Dunamenti (Hungary - AE 94.3A);
• Pervomaiskaya 3 and 4 (Russia – AE 64.3A);
• S.West 1 and 2 (Russia – AE 64.3A);
• Vlore (Albania - single shaft, 100 MW);
• Angamos (Cile - 1 ST RT30 250 MW).
Erection and start-up work was performed on these
plants in 2011:
• Sixth October (Egypt, open cycle - 4 x AE 94.2
700 MW);
• Gebze (Turkey – 800 MW combined cycle);
• Sylet (Bangladesh - 1 x AE 64.3A);
• Forssa (Finland - 2 x AE 94.2);
• Dier Ali (Syria - 2 x AE 94.3° + ST);
• Sousse (Tunisia - 400 MW single shaft);
• Tzsafit (Israel - 1 x ST MT15 150 MW);
• Batna 2 (Algeria, open cycle - 2 x AE 94.2 265
MW);
• Labreg (Algeria, open cycle - 2 x AE 94.2 281
MW);
• Campiche (Cile - 1 x ST RT30 300 MW);
• Marcinelle (Belgium - 400 MW single shaft).
The main production activities for the domestic
market were:
• Delivery of the S. Severo plant (400 MW
combined cycle);
• Delivery of Torino Nord (1 x AE 94.3A);
• Delivery of the Turano Lodigiano plant (800 MW
combined cycle);
• Erection / start-up of the Aprilia plant (800 MW
combined cycle).
Service segment
In 2011 we saw the first effects of the economic
crisis, with production volumes falling by about
20% on the previous year.
This drop is basically due to reduced machine
usage by leading European customers and
therefore fewer maintenance calls and fewer parts
to replace with spares.
Production for the year was also affected by a
reduction in the number of short cycle orders due
to belt-tightening by customers.
This reduction was in part offset by production
relating to the renewal of the Servola contract with
customer Elettra, to the supply of the generator
stator for Enel’s Nove 71 hydroelectric power plant
and the turbine and generator rotors for Neyveli in
India, and to production for the Isab contract as a
result of contract renewal.
Production was also healthy as regards work in
South America, and in particular at the Embalse
power plant in Argentina.
The second operation to transform an AE94.3A2

turbine into a latest generation AE94.3A4 was
successfully completed for customer Eni.
This will be followed by other similar operations
during 2012.
LTSAs also came into effect regarding the Aprilia
and Turano plants.
During the year work continued on initiatives to
strengthen on-site capabilities and on a targeted
investment programme to acquire the equipment
needed to satisfy new requirements.
Contract management
In 2011 production for international contracts was
consolidated, confirming sales plan predictions.
Economic and financial results continued to
improve and customer satisfaction was high.
Billing milestones were successfully achieved for
plants under construction and there were no
significant disputes with customers.
Further consolidating the company’s role as EPC
contractor, Provisional Acceptance Certificates
(PAC) were signed for the San Severo and Bayet
(France) single-shaft combined cycle plants, both
rated 400 MW, for customer Alpiq.
Provisional acceptance was also issued for the
AE94.3A4 gas turbines at the Dunamenti
combined cycle plant in Hungary for customer
Nunamenti Eromu zrt, for the steam turbines and
relative alternators for units 1 and 2 at the
Angamos plant (Chile) for customer POSCO, for the
AE64.3A gas turbines and relative alternators for
units 3 and 4 at the Pervomayskaya power plant
for customer OJSC Power Machines (Russia), and
the AE64.3A gas turbines and relative alternators
for units 1 and 2 at the West St. Petersburg power
plant for customer PJSC Stroytransgaz (Russia),
after successfully passing the necessary tests to
both the customer’s and our satisfaction.
Final acceptance certificates have been issued for
the Napoli Levante power plant (400 MW combined
cycle) by customer Tirreno Power; the AE94.2 gas
unit and relative alternator for the Sumenoja plant
by customer Fortum Power and Heat OY (Finland);
and the steam turbine unit for Amarceour 1 by
customer Electrabel GDF Suez (Belgium).
ANSALDO ENERGIA ANNUAL REPORT 2011
37
Renewable and Distributed Energy Resources
In 2011, revenues in the Renewable and
Distributed Energy Resources segment grew 34%
on 2010 (Euro 47.1 million against Euro 35.1
million the previous year).
This increase in production was accompanied by
rising profitability, encouraged by the completion on
time and with the expected performance levels of
three big photovoltaic plants.
Production involves the realisation as EPC
contractor of multi-MW solar and wind power plants
and subsequently their operation and management
(O&M).
In 2011, the contracts reporting most cost and
revenue progress were supplies for: the Bisaccia
(near Avellino) 66 MWp wind plant; the Stigliano
(near Matera) 5 MWp photovoltaic plant; the
Montenero di Bisaccia (near Campobasso) 3.5
MWp photovoltaic plant; and the Francofonte (near
Siena) 3.4 MWp photovoltaic plant.
Also in 2011, PACs were issued for the Martano
and Soleto (in Puglia) photovoltaic plants
completed in 2010.
At the Montenero site, despite a series of
authorisation issues arisen during construction
(the customer’s responsibility), Ansaldo Energia
successfully completed the plant a month ahead of
schedule, enabling the investor to obtain a higher
incentivated price. Work on the Bisaccia wind plant
is proceeding on schedule and should be
concluded in 2012, with the potential for early
completion in this case too.
Organisation and process/product
developments
Manufacturing
The new production model (NeMO) was fully
introduced across all gas turbine, steam turbine
and generator products.
As a result of the integration of the new production
model with the other projects coming online during
the year (Team Center Manufacturing, 5S, OEE,
etc.), the improvement in the efficiency of
workshop activities was confirmed and the positive
effect deriving from the entry into service of new
PERFORMANCE

machine tools continued in 2011. Once again in
2011, outsourcing related to workload issues was
significantly reduced compared with previous years,
thanks in part to detailed planning to optimise
machine tool performance.
The hot blade product was managed with special
care to achieve the objective of reducing
production while maintaining previous year
employment levels.
There was a special focus on keeping working
capital under control and therefore on closely
monitoring the warehouse levels of articles
manufactured for stock (higher turnover) or to
order, achieving stock levels at the end of 2011
that are aligned with the financial equilibrium goals
your Company set itself.
Service Segment
With confirmation of Ansaldo Energia’s expansion
into international markets by acquiring new plant
orders and the ongoing desire to raise the profile
of the international installed fleet, the organisation
of service activities was reviewed to improve
regional focus at operational level too, with the aim
of increasing proximity to customers and
competitiveness.
In 2011 customers continued to demand ever
higher levels of availability and flexibility.
This forced Ansaldo Energia to realign the type and
quality of technical and operating support services
available, in addition to their capabilities,
particularly in terms of organisation, in order to
provide an immediate response to customers in
terms of quality and reduced outages.
Finally, the greater maturity of the resources
involved, combined with organisational synergy, has
made it possible to improve diagnostic capabilities
still further, and to develop best of breed solutions,
providing added value both for customers and
Ansaldo Energia itself. Development and testing
work also continued on new combustion systems,
with the goal of improving emissions, flexibility and
operating stability. These systems benefit existing
plants most.
Engineering
With the confirmation of the strategy to develop
the Company’s presence on international markets
and as EPC contractor, an initiative was launched
to develop international turnkey contracts.
As part of this process, the plant product structure
was defined and design systems optimized and
modernized.
On the product front, during the year the improved
AE943A and AE942 gas turbine models were
released onto the market, both for new plants and
as refits for in-service units.
Machinery and plant automation also made an
important step forward with the introduction of the
latest generation Ansaldo Energia branded
platforms.
Investments
Investments in plant, equipment and machinery in
2011 focused on one hand on upgrading existing
production machinery, with the goal of ensuring
efficiency on ordinary production activities, and on
the other hand focused on introducing new plant
and machinery to improve product quality
standards.
Safety was once again a central theme in 2011 for
the entire company and an integral part of the
continuous improvement process introduced some
years ago, in both production and office areas.
Action in blade production departments focused on
recouping the efficiency of several strategic
machines and the introduction of new technology
to provide the department with adequate product
control processes and so improve quality
standards. In more detail, the first grinding
machine bought in the mid 1990s and used to
machine hot blades for the AE94.3A and AE94.2
gas turbines was given a major overhaul.
This was necessary to maintain the levels of
machining precision and efficiency that are
indispensable for the hot blades department and
at the same time to ensure that the planned
production volumes are achieved.
Also in the blades line, in order to improve quality
and to rationalise the production process, a new
automatic system was introduced to perform
penetrant liquid tests on blades.
This replaces a manual system which did not
ensure constant cleaning quality. Also installed

were a new blade washing unit and a special
washing station for the high pressure, high
temperature flushing of rotating blades.
In the generator line, the copper flat wire
straightening, stripping and cutting system for rotor
semi-coils was replaced. The refrigerator cell resin
preparation area was renovated to align it with
safety regulations.
In the turbine line, a major overhaul was performed
on one of the most important horizontal lathes
used to machine large-scale steam turbine parts in
order to restore its operating conditions and
efficiency.
Significant investments were also made to evolve
ICT systems.
ANSALDO ENERGIA ANNUAL REPORT 2011
39
The increasingly critical nature of information
security has encouraged the company to introduce
an elaborate new preventive ICT security system,
with new defences designed to protect the
company’s assets.
So far as investments in the Company’s property
are concerned, in the framework of a broaderranging
process to rationalise and digitise the
company’s archives, the area used to store
documentation about the company’s various
activities has been renovated and completely
reorganised. In addition, to protect the health and
well-being of factory workers, the ventilation has
been improved in areas with high concentrations of
machine tools to reduce humidity and temperature.
PERFORMANCE

Research, Development and
Innovation

In 2011 Ansaldo Energia’s product innovation and
development activities focused on innovative
solutions for fossil fuel fired power plants and the
relative service activities, with a special focus on
the needs expressed by customers regarding
projects under way.
A significant commitment has been retained in the
nuclear sector and in diversified renewable
resources too.
Specifically, in the framework of Ansaldo technology
gas turbine development, work continued on the
evolution programme for the class F AE94.3A unit,
with the aim both of improving performance in
terms of power and efficiency and of increasing
operating flexibility and the range of fuels used.
These improvements will be seen in both single
cycle installations and combined gas-steam cycle
plants, aiming at efficiency levels higher than 59%.
Specifically, testing was completed at a customer’s
site of the improved version of the AE94.3A4, fitted
with a combustion system based on the latest
developments in the Company’s proprietary
VeLoNox® technology (very low emission of nitrogen
oxides) and incorporating further significant
innovations affecting the mechanical structure of
the machine and turbine blade cooling.
The results of the test were particularly interesting
and provided the technical information needed to
look in more detail at issues relating specifically to
combustion, identifying and performing trials in a
full pressure test rig on new burner configurations
with innovative geometries, with the aim of
selecting the ones that will be installed in the field
during 2012.
Once again in relation to Ansaldo Energia
technology gas turbines, the construction project
was completed for the advanced version of the
AE94.2, with several solutions already included in
construction projects underway.
They include turbine blades with an advanced
design in terms of aerodynamics and the use of
cooling air, for which micro casting qualification
activities have begun.
Development projects continued in 2011 on the
operating flexibility of combined cycle plants in
response to new electricity market needs in both
Italy and Europe. The focus on these issues is
ANSALDO ENERGIA ANNUAL REPORT 2011
41
demonstrated by the Company’s active participation
in the European Turbine Association (EUT) working
group which contributes to the preparation of new
network codes at European level.
A major development effort was also addressed to
service activities on gas turbines using both
Ansaldo Energia and third party technology, through
the Original Service Provider (OSP) business line
which includes subsidiary company Ansaldo
Thomassen.
The programmes under way are addressed on one
hand to providing Ansaldo Energia with advanced
tools to assess the residual life cycle of critical
forged parts in its own technology products (based
on appropriate non-destructive inspection
techniques), and on the other hand on extending
the scope of the service offering for work on
machinery based on third party technology, with the
development of turbine blades that have optimised
maintenance intervals and low emission
combustion systems.
In 2011, the qualification was completed of micro
casting equipment to produce the first blades,
which represents an important step towards
completing the programme.
In the field of steam turbines, the USC machine
basic development programme was completed and
work was also performed on defining the optimum
parameters for CSP plant steam turbines.
Work also continued, with the support of the latest
three-dimensional electro magneto thermal
calculation tools and using increasingly high
performance insulation materials, on the
development of electric generators of an optimum
size to exploit developments in gas and steam
turbines. Specifically, in the field of air-cooled
machines, the top-rated 400 MW model is now
ready for construction.
Turning to plant and machinery automation, work
continued on the development of the new Ansaldo
Energia branded steam turbine control system,
based on the AC800 platform (including the SIL3
protection system), in the framework of the
agreement with ABB signed the previous year.
Further, following the introduction in 2011 by ABB
of the Symphony Plus control platform,
development work began on new gas turbine
RESEARCH, DEVELOPMENT AND INNOVATION

control systems based on this technology.
Detailed studies continued on the impact on
Ansaldo Energia products of technology to separate
CO2 from flue gas in thermoelectric power stations
(CSS - Carbon Capture and Storage).
During 2011 the Open Gate project entered the
operating phase, on a joint basis with the Scuola
Superiore S. Anna, Pisa.
The project is inspired by the principles of Demand
Driven Open Innovation and has set itself the task
of gathering and enhancing the value of ideas and
know-how from customers in order to establish a
co-development path for new products that uses
their needs and active contributions as its point of
departure.
Indeed, Ansaldo Energia is convinced that this
process can contribute to improving its ability to
innovate and the efficiency of the new product
development process, consistently with the
roadmap followed in recent years and the
competitive strategies currently implemented by the
company at international level.
Turning to the development of innovative solutions
in the field of renewable energy sources, work has
started on the construction of the prototype
biomass gasification plant using “staged”
technology, for which a patent has been applied
and a trademark registered. Plant start-up is
scheduled for the end of the first half of 2012, with
plans to perform initial tests using virgin wood
biomass.
In 2011 construction work began on a prototype
plant to produce a liquid hydrocarbon from
vegetable oils using a thermo-catalytic process.
This differs from the better known
transesterification process in that it does not use
methylic alcohol or produce glycerine as a
byproduct. The process has been tested with virgin
vegetable oil and at a later date tests are planned
using spent vegetable oils sent for disposal.
So far as concerns nuclear activities, research work
continues at subsidiary company Ansaldo Nucleare
on IV generation reactors.
Ansaldo Nucleare is the European industrial
benchmark for lead-cooled fast reactor
development as a result of its coordination of the
EU-FP7 LEADER project.
Having designed the pilot project for this
technology, known as ALFRED (300 MWth), the
Romanian Energy Minister approved its
construction in Romania.
To this end a MOU was signed to set up a
consortium between Ansaldo, ENEA and INR (the
Rumanian research institute). Ansaldo Nucleare will
also participate in other European projects, and the
CDT project in particular, to design the European
Myrrha irradiation facility at the Mol site operated
by Belgian nuclear research body SCK-CEN.
Ansaldo Nucleare has prequalified as part of a
consortium with Areva to bid for the design of
Myrrha systems (FEED - Front End Engineering
Design).
All activities relating to 4th generation reactors
form part of the development framework provided
by SNE-TP (Sustainable Nuclear Energy - Technology
Platform) and in particular the European
Sustainable Nuclear Industrial Initiative (ESNI) to
which the main European stakeholders contribute.

ANSALDO ENERGIA ANNUAL REPORT 2011
43
RESEARCH, DEVELOPMENT AND INNOVATION

Human Resources

Once again in 2011, human resources
management was one of the levers used by the
Company to tackle the market in its current state.
Work continued to contain human resources costs,
by increasing control actions addressed to several
26
26
8
7
7
12.31.2011
70 Managers
251 Line managers
1397 White collars
8
%
%
2
2
9
12.31.2010
9
48
48
74 Managers
254 Line managers
1382 White collars
769
213
237
Total 2,937
756
232
236
Total 2,935
Direct blue collars
Indirect blue collars
Overseas personnel
Direct blue collars
Indirect blue collars
Overseas personnel
work performance indicators (overtime, holidays,
absenteeism) with the aim of improving efficiency.
In parallel, compensation policy parameters were
strictly enforced at all levels.
Careful human resources management continued
(as detailed in the relative section), with the
implementation of a policy to provide incentives to
encourage employees to leave the company when
they satisfy pension requirements and with the
signing, on 21 April, of a new agreement with the
Trade Unions that makes mobility programmes
mandatory for all employees who, during the period
established, mature the maximum pension
requirements (41 years of contributions, including
the legal mobility window).
In parallel, once again with a view to recouping
efficiency and containing costs, the programme
continued to rationalise the use of outplacing
services by hiring 37 resources (direct) who were
working for the Company with this type of contract.
Personnel
ANSALDO ENERGIA ANNUAL REPORT 2011
45
The number of personnel at 2011 year end stands
at 2,937, the same level as 2010, but it should be
remembered that during the year Ansaldo Fuel
Cells (with 35 employees) was merged into
Ansaldo Energia.
Terminations of open-ended contracts are at the
same level as 2010.
Also stable is the number of “foreign resources”
and it should be noted how the number of direct
employees has increased, while the number of
indirect employees has fallen.
HUMAN RESOURCES

Outgoing employees
open-ended contract terminations 87
• of which benefitting from Italian Law 223/91 9
fixed term contract terminations 49
of which:
� Italian law 398 (foreign activities) 36
� fixed term contracts 13
– overseas personnel (ESE) 13
New recruits
– new open-ended contract recruits 54
– new fixed term contract recruits
of which:
43
� Italian law 398 (foreign activities) 38
� fixed term contracts 5
– entries from Energy/Finmeccanica Group 40
– overseas personnel (ESE) 9
Training and Development
In 2011 Ansaldo Energia continued to provide
support to help managers coordinate their
collaborators, through special training activities
and development initiatives.
The company’s in-house training school also
provided training for both our own personnel and
those of the customer.
Among training courses for internal resources, we
would like to draw your attention in particular to
the “Product Training” and “Trainer Training”
initiatives.
The first was led by internal trainers from the
various engineering units in the company, with the
aim of generating greater awareness about the
product even among resources with backgrounds
outside this specialisation.
The “Trainer Training” course was created in
response to the need to create a team of internal
teachers to train customers’ personnel - an activity
which forms an integral part of the product offered
by Ansaldo Energia - and during 2011 a total of
52,952 hours of training were provided to 377
people.
On the subject of mandatory training, courses were
organised on a joint basis with the corporate
function involved, in accordance with the law, on
the subject of health and safety at work.
In 2011 training activities coordinated by
Finmeccanica continued, including the now
consolidated “Project Management Programme”
(PMP), an initiative that aims to introduce a
systemic approach to contract management.
During the year, 50,136 hours of training (of which
9,160 from public funding channels and
Interprofessional Funds) were provided to 3,386
employees.
Organisation
Organisational initiatives mainly affected top
management, to whom the Service, Innovation and
Development and Administration, Finance and
Control Units now report. Activities regarding
environmental and health & safety at work
processes have been transferred to the Quality
office, in order to unify the governance of corporate
management systems and in order to pool auditing
skills and approaches.
In 2011, the Company has implemented the
organisational changes in the service business
introduced in the previous year.
These changes have the aim to integrate services
for the company’s own (OEM) and third party (OSP)
products and the value chain, as well as to
establish a greater focus on the various regional
markets in which the Company competes.
The creation of a special General Management
unit to oversee “new markets” is in response to
the need for a greater understanding of the local
reality in which your Company will be asked to
operate.

ANSALDO ENERGIA ANNUAL REPORT 2011
47
HUMAN RESOURCES

Security Policy Statement
(Legislative Decree no. 196/2003)

In 2011 your Company defined and scheduled
various initiatives at corporate security policy level
to reduce the risk of data destruction or loss even
further and to eliminate any processing that is not
in compliance with the law.
The chain of appointments to data processing
"Controller" in the various areas of responsibility
was also reviewed and revised, involving the
identification of the respective "Representatives",
also for the purposes of aligning roles with the new
organisation structure introduced.
ANSALDO ENERGIA ANNUAL REPORT 2011
49
In application of the 27 November 2008 Provision
of the Italian Data Protection Commission, the
Company has received the list of "System
Administrators" appointed by its outsourcer ELSAG
DATAMAT. Reference to the above will be made
during the annual review of the Security Policy
Statement on Corporate Data Security.
Finally, initiatives continued to inform human
resources about the subject, also by means of the
periodical publication of information material on the
corporate intranet portal.
SECURITY POLICY STATEMENT

Environment
San Severo combined cycle power plant.

All Ansaldo Energia sites:
� are not subject to IPPC “lntegrated Pollution
Prevention and Control”;
� are not subject to the provisions of Legislative
Decree 334/99, as amended (Risk of Major
Incident);
� are not classified as Sites of National Interest
pursuant to Law 426/98, as amended;
� are not the object of environmental remediation
work.
The Genoa Via Lorenzi 8 and Corso Perrone 118
sites are subject to the provisions of the Emission
Trading Directive in the category “1.1 Combustion
plants with a calorific combustion power of more
than 20 MW (excluding plants for hazardous or
urban waste)”. Constant supervision of the
application of procedures and instructions ensured
that environmental certification was maintained by
the certification society, with no major
observations.
In the framework of environmental protection
activities, there was a special focus on the issues
described below.
Gestione delle risorse idriche
The water used at the Genoa site in via Lorenzi 8 is
obtained from the city water main through a series
of connection points fitted with volume counters
and distributed to internal users through a ring
network.
The water is used for civil, industrial, process and
cooling purposes.
Depending on use, water is discharged into three
clearly distinct discharge networks:
� civil waste waters are discharged into the site’s
waste water sewer network;
� rainwater is conveyed to the site’s clean water
sewer network;
� industrial water (process and cooling) is
discharged into the site’s industrial network.
The waste water from certain highly polluting
processes is collected and disposed of as waste.
ANSALDO ENERGIA ANNUAL REPORT 2011
51
Special waste production and management
Special waste management is split into various
operating phases as summarised below:
� depositing of waste by Ansaldo Energia
personnel in containers tagged with the code
C.E.R. (European Waste Code) and colour-coded
to indicate the different types of waste;
� collection of full containers and their transport to
the internal temporary waste storage plant;
� completion of the incoming/outgoing register;
� preparation of the waste transport procedure for
final disposal;
� completion of transport forms;
� termination of the waste disposal process by
checking that the fourth copy of the form has
been returned.
Monitoring energy consumption, CO 2 , emission
trading and other emissions
To satisfy its power needs for production and civil
purposes, the Company uses the following types of
fuel and energy and uses meters to monitor
consumption:
� electric power for industrial and civil use;
� natural gas;
� district heating;
� diesel fuel for road haulage.
Ansaldo Energia is subject to Emission Trading
provisions because it has a total power rating of
over 20 MW; based on a preliminary estimate, total
CO2 emissions in 2011 exceeded the previous
year total due to a fault in the district heating plant.
This resulted in extensive use of the emergency
power plants and therefore the CO quotas assigned
were exceeded. This surplus was offset against
quotas unused in previous years.
Management of hazardous substances
The company works constantly to manage and
verify the hazardous products and substances used
in production, ensuring compliance with the two
European regulations on the subject using IT-based
and other methods:
ENVIRONMENT

� REACH REGULATION - Regulation (EC) no.
1907/2006;
� CLP REGULATION - Regulation (EC) no.
1272/2008.
Improvement projects
Investments in 2011 related to:
� installation of anti-spill monitoring;
� construction of containment tanks;
� refurbishment of the authorised water discharge
measurement system.
Investments covered by the 2012 budget include:
� improvement of critical areas of the factory as
regards rainwater management;
� refurbishment of the system to monitor water
supply;
� SISTRI.
The company constantly monitors the evolution of
legislation and implementation instructions to ensure
prompt action.
Communication, training and information
Communication and information activities are of
vital importance to keep the continuous
improvement process active.
They are performed by means of:
� information releases posted on Company notice
boards;
� standard courses for environmental service
personnel working at head office and on work
sites;
� training school courses for personnel who play a
critical role in the environmental management
system;
� distribution of theme leaflets to personnel;
� meetings with personnel - meetings of the
Environment Committee.
The courses and training products, developed with
the support of the company’s Training School, have
the following goals:
� to raise awareness and inform all mid-high level
personnel who manage human resources for any
reason and/or perform functions involved in the
Environmental Management System;
� provide specific training for personnel involved
directly in the Corporate Environmental
Management System and statutory compliance;
� provide specific training for operating personnel
who perform important functions in relation to
the Environmental Management System and
personnel who work on plants or perform
activities with a potentially significant
environmental impact.
We would like to draw your attention to the
environmental emergency training course organised
in 2011 for warehouse operatives, with a practical
exercise on how to manage a potential spill of
hazardous substances.

ANSALDO ENERGIA ANNUAL REPORT 2011
53
ENVIRONMENT

Health and safety at work

Once again in 2011, the Company implemented
numerous initiatives to reduce the number of
accidents, as well as in relation to other indicators
that define current conditions and on which basis
future improvements can be planned.
A special report was therefore prepared to measure
(on an analytical and objective basis) the efficiency
and effectiveness of prevention and protection
measures in relation to health and safety in
working areas, assessing the changes introduced
over time and taking action to correct the system
as appropriate.
In order to raise awareness across the board and
at all levels, various general and specific safety
training courses were initiated.
The Environment and Safety Committee was also
set up and significant developments are expected
in terms of sharing corporate targets and finding
effective solutions with officers and managers.
Improvement projects
In 2011 the plan was set in motion to revise and
rationalise all procedures and instructions so that
they are better aligned with BS OHSAS 18001
standard and to revise/implement the Risk
Assessment Document.
It is expected that activities will be completed by
Spring 2012.
Measures are being prepared to reduce the factory
accident rate still further, including the
identification/testing of individual protection
devices that are better suited to the various jobs
involved, raising the awareness of personnel and
infrastructure initiatives.
Communication, formation and information
Communication and information activities are
extremely important for effective interaction with
ANSALDO ENERGIA ANNUAL REPORT 2011
55
the corporate organisation and the relative
contributions that generate continuous
improvement.
The main forms of communication and information
are as follows:
� information releases posted on Company notice
boards;
� distribution of information leaflets to personnel
on specific risk factors;
� meetings with officers, managers and Workers’
Safety Representatives (RLS);
� contractor awareness initiatives.
Annually, the appropriate corporate function
measures training requirements, in part by meeting
the managers of the company’s various units. This
is supplemented by mandatory training or training
needed as a result of the introduction of new rules,
as discussed with the training office.
Courses and individual training products have the
following goals:
� to raise awareness and inform all the personnel
involved;
� to provide specific training for personnel directly
involved in the Corporate Safety Management
System and statutory compliance;
� o provide specific training for operatives who
perform important activities in relation to safety
at work.
2011 highlights:
� the online course for white collars;
� the specialist course for personnel who work in
confined spaces;
� the specialist course for personnel who work at
height;
� the specialist course for personnel who use
forklift trucks.
HEALTH AND SAFETY AT WORK

Performance and highlights
of the main Group companies

Ansaldo Nucleare S.p.A.
This company performs and supplies projects and
services for the nuclear power generation industry.
The main work performed was on the development
of the AP1000 reactor and engineering for the
Mochovce power plant, on Antreeva Bay waste
storage and activities relating to resin processing
at Trino, on maintenance work for the Creys
Malville power plant and on work for the Embalse
power plant shut down.
The main new orders during the year, in addition to
ongoing engineering work on behalf of
Westinghouse, referred to the continuation of work
on the Mochovce plant.
The serious accident involving three of the six units
at the Fukushima Daichi power plant, as a result of
the earthquake and tsunami that struck Japan on
March 11, triggered a critical review throughout the
world of nuclear power and the process has not yet
been concluded.
In addition, the referendum held in Italy shortly
after the incident, with its unanimous outcome, not
only cancelled plans to return to nuclear power
pursued since 2008, but has also created a
situation that seems likely to preclude any debate
in the coming years.
In the face of these events, the Company reviewed
its entire development strategy, identifying three
main directions in the short to mid term: to focus
on the service segment; to internationalise
activities in the decommissioning and waste
processing sector; and to reshape the role of the
company in the new plant sector, with a focus on
the supply of engineered components or
engineering services, in consideration of the
postponement of various international programmes
and the disappearance of Italian prospects.
2011 company highlights:
� Result for the year: Euro 0.5 million
� Production revenues: Euro 44.6 million
� Shareholders’ equity: Euro 1.2 million
� Net financial position: Euro -2.6 million
� Workforce: 209 employees.
Asia Power Projects Private Ltd
This company, with headquarters in Chennai, India,
manages the on-shore activities of Ansaldo Energia
in this geographical area and performs service
activities.
In 2011 the company performed: long term
operation & maintenance work for the Samalkot
power station (minor gas turbine); service activities
for the Neyveli (steam turbine overhaul) and
Akrimota power plants (minor turbines and major
generators); generator supervision activities for
Ramagundam power plant; and gas turbine
revamping for Valuthur.
2011 company highlights:
� Result for the year: Euro -0.2 million
� Production revenues: Euro 3.4 million
� Shareholders’ equity: Euro -7.9 million
� Net financial position: Euro -6.0 million
� Workforce: 11 employees.
Ansaldo ESG AG (AESG)
ANSALDO ENERGIA ANNUAL REPORT 2011
57
This company specialises in on-site service work
for steam turbines and generators, which it
performs by sending highly qualified professionals
and/or portable equipment to power generation
plants.
The company has headquarters in Wurenlingen
(Aarau canton), Switzerland, where the engineering
and administrative departments are located.
Technical staff are usually hired on a contract
basis as needed. In 2011 the main activities were
the repair and refurbishment of machine parts,
including turbine rotor straightening and the
refurbishment of steam cycle auxiliary components
in Argentina and Ghana. Reconditioning work was
also completed on the Tuncbilek power plant in
Turkey and commissioning activities got underway.
2011 company highlights:
� Result for the year: Euro 0 million
� Production revenues: Euro 7.4 million
� Shareholders’ equity: Euro 2.9 million
� Net financial position: Euro 2.6 million
� Workforce: 19 employees.
PERFORMANCE AND HIGHLIGHTS OF THE MAIN GROUP COMPANIES

Ansaldo Thomassen BV (ATH)
This company specialises in service activities for
General Electric technology gas turbines, providing
spare parts, repairs, maintenance and performance
improvement solutions.
During the year the company won an important long
term contract in Ghana to maintain two power
generation plants based on Frame 9E gas turbines.
We draw your attention to the fact that the
Company accumulated an operating loss for the
year of about Euro 1.2 million, attributable mainly
to loss of revenues (associated with insufficient
order volumes) and several project execution
issues during the year (particularly affecting a
project to modify a gas turbine in Spain).
2011 company highlights:
� Result for the year: Euro -1.2 million
� Production revenues: Euro 34.9 million
� Shareholders’ equity: Euro 0.6 million
� Net financial position: Euro -22.6 million
� Workforce: 145 employees.
Ansaldo Thomassen Gulf Llc (ATG)
This company specialises in service work on
General Electric technology gas turbines (mainly
repairs) and is wholly owned by Ansaldo
Thomassen b.V. ATG operates in Abu Dhabi with a
workforce of 66. Considering the extremely
strategic location of the site in a growth market,
the company has good development prospects.
During the year the production facility focused work
on qualifying the repair processes that will enable
the company to extend its customer base in
coming years and become the energy group’s
centre of repair excellence.
2011 company highlights:
� Result for the year: Euro -2.2 million
� Production revenues: Euro 4.6 million
� Shareholders’ equity: Euro -2.6 million
� Net financial position: Euro -9.0 million
� Workforce: 66 employees.
Yeni Aen Insaat Anonim Sirketi (Yeni Aen)
This Istanbul-based Turkish company started
operations during the year. It was incorporated to
perform commissioning work for the plant your
company is building through local subcontractors in
the Gebze industrial district; the Company has also
been awarded the associated maintenance
contract.
2011 company highlights:
� Orders: Euro 180 million for new units and Euro
141 million for LTSA service business
� Result for the year: Euro 1.5 million
� Production revenues: Euro 13 million
� Shareholders’ equity: Euro 1.4 million
� Net financial position: Euro 23.6 million
� Workforce: 10 employees.

ANSALDO ENERGIA ANNUAL REPORT 2011
59
Ansaldo Thomassen Gulf in Abu Dhabi
PERFORMANCE AND HIGHLIGHTS OF THE MAIN GROUP COMPANIES

Outlook

So far as the outlook for 2012 is concerned, on
one hand there are reasons for moderate
optimism, although the general situation continues
to be one of uncertainty as regards the financial
crisis under way.
Your Company believes that 2012 will be similar to
2011 in terms of volumes and profitability, based
on the following indicators:
� an order book at 31 December 2011 worth
about Euro 3,073 million, which provides a
robust base for 2012. The backlog is significant
not only for reasons of size, but also because its
make up in terms of product type and financial
conditions ensures balanced production and
financial flows;
ANSALDO ENERGIA ANNUAL REPORT 2011
61
� a solid financial position and the availability of
resources for future investment;
� technology renewal programmes under way to
innovate products and keep them aligned with
market demand;
� continuous improvement of production processes
which, when taken together with investments to
increase efficiency, will make it possible to
deliver profitability growth.
We would also like to draw your attention to the
fact that your Company has signed several
important contracts worth about Euro 500 million
which have not yet come into force; these contracts
will put ambitious order and revenue targets within
reach. On this basis, in 2012 production and order
volumes should be at the same level as 2011.
OUTLOOK

Registered offices
of the Company
Ansaldo Energia factory - Genova Campi

Genoa Via N. Lorenzi, 8
Registered office and production facility
Milan Via P. Lomazzo, 60
Secondary head office
Rome Via G. Carducci, 10
Local office
ANSALDO ENERGIA ANNUAL REPORT 2011
63
in addition to sites opened for specific work on
individual orders.
So far as concerns its foreign business, Ansaldo
Energia S.p.A. operates through worksites and
branch offices on activities linked to orders, and
through commercial offices in the geographical
areas of greatest interest.
REGISTERED OFFICES OF THE COMPANY

Report of the Board of Directors
and proposals to
the Shareholders’ Meeting

Shareholders,
the 2011 Financial Statements submitted for your
approval closed reporting a loss of Euro
16,272,616, against Euro 11,966,812 share
capital and Euro 17,998,274 available reserves,
which we propose to carry forward.
We advise you that the Financial Statements for the
year ended 31 December 2011 were audited by
PricewaterhouseCoopers, as appointed by the
Ordinary Shareholders’ Meeting of 7 April 2009, and
that on signing off the relative audit report their
three-year mandate expires.
Therefore, in accordance with the Agenda contained
in the notice of General Meeting, you are invited to
vote on:
� the approval of the Financial Statements at 31
December 2011, after taking note of the Board
of Statutory Auditors’ Report;
� the appointment of the independent auditors for
the three-year period 2012-2020 and the
determination of their fee.
FOR THE BOARD OF DIRECTORS
THE CHAIRMAN
Francesco Giuliani
ANSALDO ENERGIA ANNUAL REPORT 2011
65
REPORT OF THE BOARD OF DIRECTORS AND PROPOSALS TO THE SHAREHOLDERS’ MEETING

Financial statements
and related notes
at 31 December 2011

Income Statement (Profit and Loss)
ANSALDO ENERGIA ANNUAL REPORT 2011
67
Euro of which of which
with related with related
Notes 2011 parties 2010 parties
Revenues 28 1,231,970,982 24,181,999 1,321,859,695 17,210,283
Other operating income 29 20,373,807 176,000 15,149,112 13,374
Costs for goods 30 527,532,500 3,278,937 477,558,019 733,000
osts for services 30 375,142,703 39,358,743 465,285,631 33,233,000
Personnel costs 31 196,695,358 191,518,540
Ammortisation, depreciation
and impairment 33 25,015,857 23,183,358
Other operating costs 29 91,903,104 90,229 12,339,863 261,000
Changes in inventories
of work in progress,
semi-finished and finished goods 32 (859,880) (34,092,301)
(-) Capitalisation of internal
construction 34 6,560,490 6,563,688
EBIT 41,755,877 139,594,783
Financial income 35 7,391,900 3,712,805 6,992,249 2,533,029
Financial charges 35 12,088,056 59,736 29,504,096 49,417
Profit before taxes and the effect
of discontinued operations 37,059,721 117,082,936
Income tax expense 36 53,332,337 51,703,829
Net profit (16,272,616) 65,379,107
FINANCIAL STATEMENTS AT 31 DECEMBER 2011

Statement of Financial Position (Balance Sheet)
Euro of which of which
with related with related
Notes 12.31.2011 parties 12.31.2010 parties
Non current assets
Intangible assets 7 25,121,969 16,087,001
Property, plant and equipment 8 131,154,324 140,780,298
Equity investments 9 10,597,486 18,200,470
Receivables 11 26,590,942 373,388
Deferred tax assets 36 936,909 2,547,342
Other non current assets 11 84,419,200
278,820,830 177,988,499
Current assets
Inventories
Due from customers
12 307,766,864 284,199,541
for contract work 13 63,454,447 74,890,515
Trade receivables 14 296,726,630 52,273,505 234,734,207 49,162,791
Tax receivables 15 3,952,567
Financial receivables 14 357,179,088 357,179,088 489,657,500 489,657,500
Total derivatives 25 78.509
Other assets 16 71,599,400 25,866,529 49,211,911 24,530,026
Cash and cash equivalents 17 28,700,771 16,831,160
1,125,427,200 1,153,555,910
Non current assets
held for sale 18 667,278
Total assets 1,404,248,030 1,332,211,687

Euro of which of which
with related with related
Notes 12.31.2011 parties 12.31.2010 parties
Shareholders’ equity
Share capital 11,966,812 11,966,812
Reserves 1,725,658 82,706,189
Total shareholders’ equity 19 13,692,470 94,673,001
Non current liabilities
Severance pay and other
employee liabilities 22 30,699,439 34,788,153
Provision for risks and charges 21 245,612,756 79,947,949
Deferred tax liabilities 36 203,764 388,357
Other liabilities 23 5,212,523 2,456,435
281,728,482 117,580,894
Current liabilities
Due to customers
for contract work 13 586,179,929 624,123,274P
Trade payables 24 402,649,542 24,188,885 383,182,506 14,375,894
Financial payables 20 2,255,650 5,301,515 3,854,609
Tax payables 15 957,082
Provision for risks and charges 21 39,685,906 50,233,189
Total derivatives 25 123,357
Other liabilities 23 76,975,612 18,096,058 57,117,308 3,427,139
1,108,827,078 1,119,957,792
Total liabilities 1,390,555,560 1,237,538,686
Total liabilities
and shareholders’ ewquity 1,404,248,030 1,332,211,687
ANSALDO ENERGIA ANNUAL REPORT 2011
69
FINANCIAL STATEMENTS AT 31 DECEMBER 2011

Statement of Cash Flows
Euro/thousand of which of which
with related with related
12.31.2011 parties 12.31.2010 parties
Cash flow from operating activities:
Gross cash flow from operating activities 151,652 167,235
Change in working capital (22,072) (37,350) 36,230 1,791
Changes in other operating assets and liabilities (116,905) (11,736) (41,654) (11,736)
Net financial incom ecollected 2,241 2,484 2,193 2,484
Income taxes paid (14,793) (67,991)
Cash flow generated by (used in) operations 123 96,013
Cash flow from investing activities:
Acquisition of companies, net of cash acquired
Investments in property, plant and equipment
(11,738) (19,651)
and intangible assets
Disposals of property, plant and equipment
(27,412) (29,548)
and intangible assets 11,115 4,281
Change in non current financial assets (26,212)
Other investing activities 1,900 1,000
Cash flow generated by (used in) investing (52,347) (43,918)
Cash flow from financing activities:
Net change in other financial payables 129,432 128,623 15,672 16,358
Dividends paid (65,338) (82,000)
Cash flow used in investing activities 64,094 (66,328)
Net decrease in cash and cash equivalents 11,870 (14,233)
Cash and cash equivalents at 1 January 16,831 30,135
Exchange differences on cash and cash equivalents 929
Cash and cash equivalents at 31 December 28,701 16,831

Statement of Changes in Equity
Euro/thousand Share Retained Cash Reserve Reserve for Currency Total
capital earnings and flow for stock actuarial conversion Group
consolidation hedge option/ gains (losses) reserve Sharereserve
reserve grant recognised holder
plans in equity equity
1 January 2010 11,967 95,755 (284) 1,051 1,747 110,236
Dividends paid (82,000) (82,000)
Capital increases
Buy-back of treasury shares
Total income (charges) 65,379 (1,118) 64,261
Stock option/grant plans:
- value of benefits (737) (737)
Other changes (603) 3,516 2,913
31 December 2010 11,967 79,134 (887) 3,830 629 94,673
Dividends paid (65,339) (65,339)
Capital increases
Buy-back of treasury shares
ANSALDO ENERGIA ANNUAL REPORT 2011
71
Total income (charges) (16,272) 1,076 (15,196)
Stock option/grant plans:
- value of benefits
Other changes (692) 689 (442) (445)
31 December 2011 11,967 (3,169) (198) 3,388 1,705 13,693
FINANCIAL STATEMENTS AT 31 DECEMBER 2011

Statement of Comprehensive Income
Euro 12.31.2011 12.31.2010
Result for period (16,272,616) 65,379,107
Reserves of income (charges) recognised in Shareholders’ Equity
- Financial assets available for sale:
sales of shares
fair value adjustment
- Actuarial profit (loss) on defined-benefit plans:
assessment of plans 1,076,000 (1,118,000)
exchange rate difference
- Cash-flow hedge differences:
fair value adjustment 738,000 871,000
transfer to income statement (67,000) (1,474,000)
exchange rate difference
- Tax effect of charges (income) recognised in Shareholders’ Equity
fair value assessment / adjustment
transfer to income statement
exchange rate difference
Proventi / (oneri) riconosciuti a Patrimonio netto 1,747,000 (1,721,000)
Total income and (charges) for the period (14,525,616) 63,658,107

ANSALDO ENERGIA ANNUAL REPORT 2011
73
FINANCIAL STATEMENTS AT 31 DECEMBER 2011

Notes to the financial statements at 31 December 2011
1. General information
Ansaldo Energia S.p.A. is a Finmeccanica Group company with headquarters in Genoa. As the Company is a
sub-group pursuant to section 27, sub-section 3 of Legislative Decree 127, 1991, it does not prepare
Consolidated Financial Statements, which are drawn up by the Controlling Company Finmeccanica SpA.
The mission of the Company is to perform, in Italy and internationally, industrial, commercial, design, supply,
technology assembly, start up and service activities in the power generation plant and component sector, as
well as in similar sectors, in addition to performing all works connected with the aforementioned activities.
Advanced technology, high professional standards, extensive production capacity and competitive projects
and products have been constant features of the Company from the outset and will drive it forward into the
future.
2. Basis of preparation and accounting standards used
Pursuant to Regulation (EC) no. 1606/2002, 19 July 2002, the financial statements at 31 December 2011
have been prepared in accordance with International Accounting Standards and International Financial
Reporting Standards (hereafter IFRSs) endorsed by the European Commission, supplemented by the relevant
interpretations (Standing Interpretations Committee – SIC and International Financial Reporting
Interpretations Committee – IFRIC) issued by the International Accounting Standards Board (IASB).
The general principle used in preparing these consolidated financial statements is the cost method, except
for derivative instruments and some financial assets, which must or – exclusively in relation to financial
assets – can be recognised at fair value under IAS 39.
All figures are shown in Euros unless otherwise indicated.
These financial statements prepared in accordance with IFRSs were audited by PricewaterhouseCoopers
Spa.
Preparation of the financial statements required management to make certain estimates.
New IFRSs and interpretations of the IFRIC
At the date of publication, EC Legislators have endorsed several standards and interpretations which are not
yet mandatory and which Ansaldo Energia will introduce in subsequent years. These changes are given below
with their potential effects on the financial statements of Ansaldo Energia:
IFRS – IFRIC interpretattion Effects on Company
IFRS 7 Amendments Financial instruments This standard defines supplementary
information to provide in the case of the
transfer of financial assets which have not
been eliminated from the accounts or of
residual involvement in the transferred
assets. Ansaldo Energia will introduce this
standard on 1 January 2012 and adjust its
reporting accordingly.

There are also several standards or amendments to existing standards issued by the IASB or new
interpretations of the International Financial Reporting Interpretations Committee (IFRIC) for which the
review and approval process have still not been completed. They include:
� IFRS 9 Financial instruments - with this standard the IASB proposes significant amendments to the
treatment of financial instruments. In its final version, this standard will replace IAS 39. At present the
IASB has modified the requirements relating to the classification and valuation of financial assets
currently provisioned by IAS39, and has published a document on how to measure the amortised cost of
financial instruments and assess any impairment. The new overall framework applicable to financial
instruments is, however, still the subject of discussion by the various competent organisations and the
date of adoption cannot at present be forecasted.
The current version of IFRS 9 will be applicable, after ratification by the European Union, as of 1 January
2013;
� IAS 12 Income tax - with this amendment the IASB defines an exception to the current method of
assessing deferred taxation on investments in plant, property and equipment valued at fair value.
The current version of IFRS 9 will be applicable, after ratification by the European Union, as of 1 January
2012.
3. Accounting standards adopted
ANSALDO ENERGIA ANNUAL REPORT 2011
75
Segment information
The Company works exclusively in the energy sector, organized by geographical areas regarded as
‘secondary’, as Company risks and benefits are significantly influenced by operating in different countries or
different geographic areas.
Currency translation
Identification of the functional currency
This report is presented in Euro (EUR) which is the functional currency of Ansaldo Energia S.p.A.
Translation of transactions denominated in foreign currency
Items expressed in a currency other than the functional currency, whether monetary (cash and cash
equivalents, receivables or payables due in pre-set or measurable amounts, etc.) or non-monetary (advances
to suppliers of goods and services, goodwill, intangible assets, etc.), are initially recognised at the exchange
rate prevailing at the date on which the transaction takes place. Subsequently, the monetary items are
translated into the functional currency based on the exchange rate at the reporting date, and any differences
resulting from this conversion are recognised in the income statement. Non-monetary items continue to be
carried at the exchange rate on the date of the transaction, except in situations where there is a persistent
unfavourable trend in the exchange rate concerned. If this is the case, exchange differences are recognised
in the income statement.
Intangible assets
Intangible assets are non-monetary items without physical form, but which can be clearly identified and
generate future economic benefits for the company. They are carried at purchase and/or production cost,
including directly related expenses allocated to them when preparing the asset for operations and net of
accumulated amortisation (with the exception of intangibles with an indefinite useful life) and any
impairments of value. Amortisation begins when the asset is available for use and is recognised
systematically over its remaining useful life. In the period in which the intangible asset is recognised for the
first time, the amortisation rate applied takes into account the period of actual use of the asset.
NOTES TO THE FINANCIAL STATEMENTS AT 31 DECEMBER 2011

Development costs
Development costs are related to the application of the results of research or other knowledge in a plan or a
project for the production of materials, devices, processes, systems or services that are new or significantly
advanced, prior to the start of commercial production or use, for which future economic benefits can be
demonstrated. These costs are amortised over the entire period in which the future earnings are expected to
be realised for the project itself, and in any case for no longer than 10 years. “Non-recurring costs” as
defined by Finmeccanica Group are separately classified under intangible assets.
Research costs, on the other hand, are expensed in the period in which they are incurred.
Industrial patent and intellectual property rights
Patents and intellectual property rights are carried at acquisition cost net of amortisation and accumulated
impairment losses. Amortisation begins in the period in which the rights acquired are available for use and is
calculated based on the shorter between the period of expected use and that of ownership of the rights.
Concessions, licences and trademarks
This category includes: concessions, i.e. government measures that grant private parties the right to
exclusive use of public assets or to manage public services under regulated conditions; licences that grant
the right to use patents or other intangible assets for a determinate or determinable period of time;
trademarks that establish the origin of the products of a given company; and licences for the know-how or
software owned by others. The costs, including the direct and indirect costs incurred to obtain such rights,
can be capitalised after receiving title to the rights themselves and are amortised systematically over the
shorter of the period of expected use and that of ownership of the rights.
Tangible assets
Property, plant and equipment are measured at purchase or production cost net of accumulated depreciation
and any impairment losses. The cost includes all direct costs incurred to prepare the assets for use, as well
as any charges for dismantlement and disposal that will be incurred to return the site to its original condition
and financial charges relating to acquisition, construction or production which require a significant amount of
time to be prepared for use and sale.
Charges incurred for routine and/or cyclical maintenance and repairs are fully expensed when incurred.
Costs related to the expansion, modernisation or improvement of owned or leased structural assets are only
capitalised to the extent that such costs meet the requirements for being classified separately as an asset
or part of an asset. Any public capital grants related to property, plant and equipment are recognised as a
direct deduction from the asset to which they refer.
The value of an asset is adjusted by systematic depreciation calculated based on the residual useful life of
the asset itself.
In the period in which the asset is recognised for the first time, the depreciation rate applied takes into
account the period of actual use of the asset.
The estimated useful lives adopted by the Company for the various asset classes are as follows:
Land indefinite useful life
Industrial buildings 33
Plant and equipment 20-5
Minor equipment 8-2,5
Furniture 8-5
Vehicles 5-4
Years

ANSALDO ENERGIA ANNUAL REPORT 2011
77
In the event the asset to be depreciated is composed of distinct elements with useful lives that are
significantly different from those of the other constituent parts, each individual part that makes up the asset
is depreciated separately, in application of the component approach to depreciation.
The item also comprises equipment for specific projects (tooling), although they are depreciated, like the
other “non-recurring charges”, accordingly to the method of units produced vs. the total planned.
The gains and losses from the sale of assets or groups of assets are calculated by comparing the sales
price with the related net book value.
Losses of value of tangible and intangible assets (impairment)
Assets with an indefinite useful life, which are not subject to amortisation or depreciation, are tested at least
once a year to assess the recoverability of the amount recognised in the financial statements.
For assets subject to depreciation or amortisation, indicators of losses of value are assessed: if a loss of
value is assessed, the recoverable value is estimated and any difference booked in the income statement.
If the reasons for the previous write-down no longer apply, the book value of the asset is restored up to the
net carrying value: the write-up of the value is also posted to in the income statement.
Equity investments
The company classifies its equity investments as follows:
� “subsidiaries” in which the owner of the interest has the power to determine the financial and operating
decisions and to receive the related benefits;
� “associated companies” in which the owner of the interest exercises a significant influence (which is
assumed to exist when the owner can exercise at least 20% of the votes in the ordinary shareholders’
meeting). This also includes companies subject to joint control (joint ventures);
� “other companies” that do not fall under any of the categories above.
Subsidiaries (including those subject to joint control), associates and other companies, with the exception of
those that are held for sale, are recognised at cost. The cost value is maintained in subsequent financial
statements except in the event of an impairment loss. Equity investments held for sale are carried at the
lower of cost and fair value net of sales costs.
The Appendix to these notes provides a summary of investments. Figures for subsidiaries are taken from the
relevant financial statements at 31 December 2010 approved by the Board of Directors; for associates and
other companies, the carrying values of the equity investments were matched against the equities of the
investee companies, as appearing in the latest available financial statements approved.
Any value losses in excess of book value are recorded in the provision for risks on equity investments.
Should the reasons for write-downs cease to exist, the value of equity investments is restored up to the
original cost.
Inventories
Inventories are recorded at the lower of cost and net realisable value. The Group used the weighted average
cost method. The net realisable value is the sales price in the course of normal operations net of estimated
costs to ultimate the goods and those needed to make the sale. Any write-down is eliminated in future
periods if the reason for the write-down should cease to exist. Manufactured raw materials are assessed at
standard cost and reviewed on a half-year basis.
The company classifies inventories as follows:
� Raw materials, supplies and consumables
� Work in progress and semi-finished goods
� Advances
NOTES TO THE FINANCIAL STATEMENTS AT 31 DECEMBER 2011

Work in progress is recognised at production cost using the weighted average cost, excluding financial
charges and general overheads.
Contract work in progress
Work in progress is recognised on the basis of progress (or percentage of completion), whereby costs,
revenues and margins are recognised based on the progress of production. The state of completion is
determined on the basis of the ratio between costs incurred at the measurement date and the total
expected costs for the programme.
The valuation reflects the best estimate of the schedules prepared at the reporting date. The assumptions
upon which the valuations are made are periodically updated. Any impact on profit or loss is recognised in
the period in which the updates are made. In the event the completion of a contract is expected to result in
a loss at the gross margin level, the loss is recognised in its entirety in the period in which it becomes
reasonably foreseeable.
Contract work in progress is recorded net of any write-downs, as well as pre-payments and advances relating
to the contract being performed.
This analysis is carried out contract by contract: in the event of positive differences (where the value of work
in progress is greater than total pre-payments), the difference is recorded as an asset; negative differences,
on the other hand, are recorded as a liability under ‘due to customers for contract work’.
If it has not been collected at the date of preparation of the annual or interim accounts, the amount recorded
among advance payments will have a direct contra-item in trade receivables.
Contracts with payments in a currency other than the functional currency (the Euro for the company) are
measured by converting the portion of payments due, calculated using the percentage-of-completion method,
at the exchange rate prevailing at the close of the period in question. However, the company’s policy for
exchange-rate risk calls for all contracts in which cash inflows and outflows are significantly exposed to
exchange rate fluctuations to be hedged specifically. In such cases, the recognition methods described in
paragraph 3.2.1 are applied.
Receivables and financial assets
The company classifies its financial assets into the following categories:
� financial assets at fair value through profit or loss;
� loans and receivables;
� held-to-maturity financial assets;
� available-for-sale financial assets.
Management classifies assets at the time they are first recognised.
Fair value assets with contra-items in the income statement
This category includes financial assets acquired for short term trading or defined as such by management, in
addition to derivatives, which are covered by the paragraph below. The fair value of these instruments is
calculated with reference to the market value (bid price) at the date of closure of the period in question:
instruments in this category are posted immediately to the income statement. The classification as current
and non current reflects the expectations of management as regards their negotiation: those which are
expected to be traded within 12 months or which are identified as held for the purposes of trading are
classified under current assets.
Loans and receivables
This category includes non-derivative financial assets with fixed or determinable payments that are not
quoted on an active market. They are measured at their amortised cost using the effective interest method.
Should objective evidence of impairment emerge, the cumulative loss – measured as the difference between

ANSALDO ENERGIA ANNUAL REPORT 2011
79
the acquisition cost and the current fair value, less any impairment loss on that financial asset previously
recognised in profit or loss – is removed from equity and recognised in the income statement.
If the reasons for the write-down should cease to exist, the value of the asset is restored to the amortised
cost value it would have if no impairment had been recognised.
These assets are classified as current assets, with the exception of portions expiring beyond 12 months,
which are classified under non current assets.
Financial assets held to maturity
These are non-derivative assets with fixed maturities that the company has the intention and ability to hold
to maturity. Those maturing within 12 months are carried as current assets. Should objective evidence of
impairment emerge, the cumulative loss – measured as the difference between the acquisition cost and the
current fair value, less any impairment loss on that financial asset previously recognised in profit or loss – is
removed from equity and recognised in the income statement. If the reasons for the write-down should cease
to exist in future periods, the value of the asset is restored up to the amortised cost value it would have if
no impairment had been recognised.
Financial assets held for sale
This category includes financial assets, other than derivative instruments, specifically assigned to it or not
classified in any previous item. These assets are assessed at fair value, which is calculated with reference
to market prices at the balance sheet date or using financial valuation techniques and models, and any
changes in value are reported by contra-items in a specific shareholders’ equity reserve (“reserve for assets
available for sale”). This reserve is reversed to the income statement only when the financial asset is actual
transferred or, in the event of a negative change, when the reduction in value posted to shareholders’ equity
cannot be recovered. The classification as current or non current asset depends on the intentions of
management and the actual tradability of the security: assets which are expected to be realised in the
upcoming 12 months are classified under current assets.
If there is objective evidence of a loss of value, the value of the assets is reduced so that it is equal to the
discounted value of future cash flows: negative changes of value previously posted to the shareholders’
equity reserve are reversed to the income statement. Losses of value previously accounted for are restored
if the circumstances which caused their reduction no longer obtain.
Derivatives
Derivatives are still regarded as assets held for trading and stated at fair value through profit and loss,
unless they are deemed eligible for hedge accounting and effective in offsetting the risk in respect of
underlying assets, liabilities or commitments undertaken by the company.
In particular, the company uses derivatives as part of its hedging strategies to offset the risk of changes in
the fair value of assets or liabilities on its balance sheet or the risk associated with contractual
commitments (fair value hedges) and the risk of changes in expected cash flows in contractually defined or
highly probable operations (cash flow hedges). For details regarding the methodology for recognising hedges
of the exchange rate risk on long-term contracts, see Note 3.
The effectiveness of hedges is documented both at the start of the operation and periodically thereafter (at
least every time an annual or interim report is published) and measured by comparing changes in the fair
value of the hedging instrument against changes in the hedged item (‘dollar offset ratio’). For more complex
instruments, the measurement involves statistical analysis based on the variation of the risk.
Fair Value Hedge
Changes in the value of derivatives that have been designated and qualify as fair value hedges are
recognised in profit or loss, similarly to the treatment of changes in the fair value of the hedged assets or
liabilities that are attributable to the risk that has been offset with the hedge.
NOTES TO THE FINANCIAL STATEMENTS AT 31 DECEMBER 2011

Cash Flow Hedge
Changes in the fair value of derivatives that have been designated and qualify as cash flow hedges are
recognised – with reference to the ‘effective’ component of the hedge only – in a specific equity reserve (‘cash
flow hedge reserve’), which is subsequently recognised in profit or loss when the underlying transaction affects
profit or loss.
Changes in fair value attributable to the non-effective component are immediately recognised in profit or loss for
the period. If the derivative is sold, or ceases to function as an effective hedge against the risk for which it was
originated, or the occurrence of the underlying operation ceases to be highly probable, the relevant portion of
the cash flow hedge reserve is immediately recognised in the income statement.
Determining fair value
The fair value of instruments quoted on public markets is determined with reference to the bid price for the
instrument in question at the reference date.
The fair value of unquoted instruments is determined with financial valuation techniques. Specifically, the fair
value of interest rate swaps is measured by discounting the expected cash flows, while the fair value of
foreign exchange forwards is determined on the basis of the market exchange rate at the reference date and
the rate differentials among the currencies involved.
Cash and cash equivalents
The item includes cash, deposits with banks or other institutions providing current account services, post
office accounts and other cash equivalents, as well as investments maturing in less than three months from
the date of acquisition. Cash and cash equivalents are recognised at their fair value.
Patrimonio Netto
Share capital
Share capital consists of the capital subscribed and paid up by the company. Costs directly associated with
the issue of shares are recognised as a decrease in share capital, less deferred taxes, if any, when they are
directly attributable to capital operations.
Profits (losses) carried forward
These include net profits or losses for the period and for previous years that are not distributed or allocated
to reserves (for profits) or covered (for losses). The item also includes transfers from other equity reserves
when the restrictions on their release cease to apply, as well as the effects of changes in accounting policies
and significant errors.
Payables and other liabilities
IPayables and other liabilities are initially recognised at fair value net of transaction costs. They are
subsequently valued at their amortised cost using the effective interest rate method (see Note 2.20).
Payables and other liabilities are defined as current liabilities unless the company has the contractual right
to settle its debts at least 12 months after the reporting date.
Taxation
The tax burden of the Company is given by current taxes and deferred taxes. If they refer to items accounted
for in income and charges recognised in shareholders’ equity in the income statement, these taxes are
recorded with a contra-item under the same heading.

ANSALDO ENERGIA ANNUAL REPORT 2011
81
Current taxes are calculated on the basis of tax legislation in force in the countries where the Company
operates on the balance sheet date; any risks regarding different interpretations of positive or negative
income items, and likewise any pending disputes with tax authorities, are assessed at least quarterly and
the provisions recorded in the financial statements adjusted accordingly.
Deferred tax assets and liabilities are calculated based on temporary differences arising between the tax
bases of assets and liabilities and their carrying amounts in the consolidated financial statements.
Deferred tax assets and liabilities are calculated applying the tax rate which is forecasted to be at the time
the temporary differences will be reversed; this forecast is determined based on the tax legislation in force
or substantially in force at the reference date for the period. Deferred tax assets are recognised to the
extent that it is probable the company will post taxable income at least equal to the temporary differences in
the financial periods in which such assets will be reversed.
Employee benefits
Post-employment benefit plans
The Company uses several types of pension and supplementary benefit plans, which can be classified as
follows:
� Defined contribution plans in which the company pays fixed amounts to a distinct entity (e.g. a fund) but
has no legal or constructive obligation to make further payments if the fund does not have sufficient
assets to pay the benefits accrued by employees during their period of employment with the company. The
company recognises the contributions to the plan only when employees rendered their services to the
company specifically in exchange for these contributions;
� Defined benefit plans in which the company undertakes to provide agreed benefits for current and former
employees and incur the actuarial and investment risks associated with the plan. The cost of the plan is
therefore not determined by the amount of the contributions payable in the financial period but, rather, is
assessed with reference to demographic and statistical assumptions and wage trends. The methodology
used is the projected unit credit method.
As a result of this option, the value of the liability recorded in the financial statements is aligned with its
actuarial evaluation, with full and immediate recognition of actuarial gains and losses in the income
statement in the period in which they occur, through a special reserve under shareholders’ equity (“Reserve
for actuarial gains (losses) recognised in equity”).
Other long-term benefits and post-employment benefit plans
The Company grants employees other benefits (such as seniority bonuses after a given period of service with
the company) that, in some cases, continue to be provided after retirement (for example, medical care).
These receive the same accounting treatment as defined benefit plans, using the projected unit credit
method. However, the corridor approach cannot be used for ‘other long-term benefits’. Consequently, net
actuarial gains and losses are recognised both immediately and fully as they occur, including related social
charges.
Benefits payable for the termination of employment and incentive plans
Termination benefits are recognised as liabilities and expenses when the enterprise is demonstrably
committed to terminating the employment of an employee or group of employees before the normal
retirement date or to providing termination benefits as a result of an offer made in order to encourage
voluntary redundancy.
The benefits payable to employees for the termination of employment do not bring any future economic
benefit to the enterprise and are therefore recognised immediately as expenses.
NOTES TO THE FINANCIAL STATEMENTS AT 31 DECEMBER 2011

Equity compensation benefits
The Company uses stock option plans as part of its compensation of senior management. In these cases,
the theoretical benefit attributable to the recipients is charged to the income statement in the financial
periods for which the plan is operative with a contra-item in an equity reserve.
The benefit is quantified measuring the fair value of the assigned instrument using financial valuation
techniques that take into account market conditions and, at the date of each annual or interim report, an
updated estimate of the number of instruments it is expected will be distributed.
Other compensation benefits
The Company compensates Key Management in part through a plan called the “AEN incentive plan”, which is
based on targets set for the Company and the trend of salary statistics.
The fair value of these charges is recorded in the income statement under cost of labor for each year in
which the plan is in effect.
Provisions for risks and charges
Provisions for risks and charges cover certain or probable losses and charges of uncertain timing or amount
at the reporting date.
The provision is recognised only when a current obligation (legal or constructive) exists as a result of past
events and it is probable that an outflow of economic resources will be necessary to settle the obligation.
The amount reflects the best current estimate of the cost of fulfilling the obligation. The interest rate used to
determine the present value of the liability reflects current market rates and includes the additional effects
relating to the specific risk associated with each liability.
Risks for which the emergence of a liability is merely a possibility are reported in the section in the notes on
commitments and risks and no provision is recognised.
Leasing
Operating leasing
Receipts and payments in respect of contracts qualifying as operating leases are recognised in the income
statement over the duration of the contract.
Revenue
Revenues generated by an operation are recognised at the fair value of the amount received and receivable,
inclusive of volume discounts and reductions.
Revenues also include changes in work in process, the accounting policies for which were described in Note
2 above.
Revenues generated from the sale of goods are recognised when the enterprise has transferred to the buyer
substantially all of the significant risks and rewards of ownership of the goods, which, in many cases, will
coincide with the transfer of title or possession to the buyer; and when the value of the revenues can be
reliably determined.
Revenues from services are recognised on a percentage-of-completion method when they can be reliably
estimated.
Government grants
Once formal authorisation for their assignment has been issued, grants are recognised on an accruals basis
in direct correlation with the costs incurred. Specifically, set-up grants are taken to the income statement in
direct relation to the depreciation of the relevant goods or projects, and are recognised as a direct reduction
in the value of the depreciation expense.

Costs
Costs are recorded in compliance with the inherence principle and the matching principle.
ANSALDO ENERGIA ANNUAL REPORT 2011
83
Financial income and expense
Interest is recognised on an accruals basis using the effective interest rate method, i.e. the interest rate
that results in the financial equivalence of all inflows and outflows (including any premiums, discounts,
commissions etc.) coming from a given operation.
Financial expense, if related to qualifying assets, is capitalised under assets.
Dividends
Dividends are recognised as soon as shareholders obtain the right to receive payment, which is normally
when the shareholders’ meeting approves the distribution of dividends.
Dividends distributed to Ansaldo Energia S.p.A. shareholders are recognised as liabilities in the period in
which their distribution is approved by the shareholders’ meeting.
Related party transactions
Related party transactions are carried out at arm’s length.
4. Significant issues
Hedging long-term contracts against foreign exchange risk
In order to hedge exposure to changes in flows of receipts and payments associated with long-term
construction contracts denominated in currencies other than the functional currency, the company enters
into specific hedges for the expected individual cash flows in respect of the agreement. An hedge
transaction is entered into at the moment the commercial contracts are finalised.
Exchange-rate risk is normally hedged with plain vanilla instruments (forward contracts); in all cases where
hedges prove to be ineffective, changes in the fair value of such instruments are taken immediately to the
income statement as financial items, while the underlying asset is valued as if it were exposed to exchange
rate variations.
The effects of this recognition policy are reported in Note 28. Hedges in the former case are carried as cash
flow hedges, considering as ineffective the part relating to the premium or discount in the case of forwards
or the time value in the case of options, which is recognised under financial items.
Provisions for risks and estimates of final costs of long-term contracts
The Company operates in business sectors and with contractual arrangements that are particularly complex.
They are recognised on a percentage-of-completion basis. Margins recognised in the income statement are in
function of both the state of progress on contracts and the margins that are expected to be recognised for the
completed contract.
Accordingly, correct recognition of work in progress and margins on contracts that have not yet been completed
requires management to make a careful estimate of the final costs and expected increases, as well as delays,
extra costs and penalties that could reduce the expected margin. In order to enhance support for this activity,
the company has adopted contract management and risk analysis tools designed to identify, monitor and
quantify the risks associated with such contracts.
The amounts posted in the financial statements and in the interim reports represent management’s best
estimate at the reporting date using the aforementioned procedures.
NOTES TO THE FINANCIAL STATEMENTS AT 31 DECEMBER 2011

In addition, the company’s operations regarding sectors and markets where many disputes are settled only after
a considerable period of time, especially in cases where the customer is a government entity, making it
necessary for management to estimate the outcome of such disputes. The main potential loss situations
classified as ‘probable’ or ‘possible’ (no provision is recognised for the latter) are reported in Note 20.
Asset impairment
The Company’s assets are subjected to impairment testing at least once a year if they have an indefinite life,
or more frequently if there are indications of permanent losses of value. Similarly, the impairment tests are
conducted on all the assets for which there are indicators of losses of value, even if the depreciation or
amortisation process has already been started.
Impairment tests are generally conducted using the discounted cash flow method, which is, however, highly
sensitive to the assumptions contained in the estimate of future flows and interest rates used. In order to
calculate these values, the company uses the plans approved by company management and financial
parameters in line with current values in relevant markets.
5. Significant non-recurring events or transactions
During the year the Company incorporated subsidiary company Ansaldo Fuel Cells S.p.A. The incorporation was
performed by public notary deed no. 87545, 26 September 2011, with effect from 1 October 2011 for tax
purposes, in consideration of the synergy targets set in the framework of the group reorganisation plan.
The effects of the incorporation on equity are reported in the table below:

Balance Sheet
ANSALDO ENERGIA ANNUAL REPORT 2011
85
Euro of which of which
with related with related
1.1.2011 parties 9.30.2011 parties
Non current assets
Intangible assets 16,278 4,071
Tangible assets
Property, plant and equipment
Equity investments
7,291,970 2,589,272
Receivables
Deferred tax assets
Other non current assets
3,652 3,562
Current assets
7,311,809 2,596,905
Inventories 104,295 104,295
Due from customers for contract work 6,129 319
Trade receivables 4,767,387 5,151,497 3,379
Tax receivables 123,829 123,829
Financial receivables
Derivatives
3,918,603 3,918,603
Other assets 6,104,949 5,943,825 1,317,391 1,173,499
Cash and cash equivalents 4,459 13,072
11,111,048 10,629,006
Total assets 18,422,857 13,225,911
Shareholders’ equity
Share capital 20,504,943 5,126,236
Reserves (26,193,198) (906,792)
Total shareholders’ equity (5,688,255) 4,219,444
Non current liabilities
Severance pay and other employee liabilities
Provision for risks and charges
Deferred tax liabilities
444,025 331,308
Other liabilities 9,134 3,219
Current liabilities
453,159 334,527
Due to customers for contract work 2,707,266 321,234
Trade payables 2,585,621 653,162 2,370,091 508,949
Financial payables
Tax payables
6,695,635 6,695,635
Provision for risks and charges
Total derivatives
11,000,000 5,573,919
Other liabilities 669,431 406,696
23,657,953 8,671,940
Total liabilities 24,111,112 9,006,467
Total liabilities and shareholders’ equity 18,422,857 13,225,911
NOTES TO THE FINANCIAL STATEMENTS AT 31 DECEMBER 2011

6. Segment information
The Company operates exclusively in the energy sector.
Company revenues can be broken down geographically as follows, based on the customer’s home country
net of transactions with related parties:
Euro/thousand 12.31.2011 12.31.2010
Italy 440,731 678,600
United Kingdom 4,614 21,215
Rest of Europe 283,301 370,629
Other countries 479,143 248,364
Assets are geographically distributed as follows:
1,207,789 1,318,808
Euro/thousand 12.31.2011 12.31.2010
Europe 638,844 762,987
North America
Other 115,365 23,568
Capital expenditure is distributed as follows:
754,209 786,555
Euro/thousand 12.31.2011 12.31.2010
Europe 27,412 29,548
Other
27,412 29,548

7. Intangible assets
ANSALDO ENERGIA ANNUAL REPORT 2011
87
Euro/thousand Development Patents Concessions, Others Total
costs and similar licences and
rights trademarks
1 January 2010
Cost 187 450 9,894 10,531
Depreciation and impairment 180 450 146 776
Carrying amount 7 – 9,748 9,755
Investments 9,114 875 9,989
Sales 2,304 2,304
Amortisation
Increases from business combinations
Reclassification
Other changes
31 December 2009 broken down as follows:
1,347 6 1,353
Cost 9,114 187 450 8,465 18,216
Depreciation and impairment 1,347 186 450 146 2,129
Carrying amount 7,767 1 – 8,319 16,087
Investments
Sales
11,003 11,003
Amortisation
Merger
Riclassifiche
1,968 17 1,985
Merger
31 December 2010 broken down as follows:
16 16
Cost 9,114 367 450 19,571 29,502
Depreciation and impairment 3,315 367 450 249 4,381
Carrying amount 5,799 – – 19,322 25,121
Intangible assets amount to Euro 25,121 thousand and refer to development activities amounting to Euro 5,799
thousand and intangible assets in progress in connection with research and development projects amounting to
Euro 19,322 thousand. In 2011 the Company launched several projects with highly innovative content such as to
justify the capitalisation of costs amounting to Euro 11,003 thousand. The first and most important project
regards the development of the AE94.3A gas turbine, in order to upgrade its performance in line with market
demand and the standards offered by the competition. Still in the gas turbine area, work has been completed on
the basic design of the evolved version of the AE94.2. The other project refers to the continuation of study and
design work on the main gas turbine components in the 90-120 MW class, consistently with the strategic
importance of service work performed on our own and third-party installed machinery.
A total of Euro 18,633 thousand R&D costs were posted to the income statement during the year.
NOTES TO THE FINANCIAL STATEMENTS AT 31 DECEMBER 2011

8. Property, plant and equipment
Euro/thousand Land and Plant and Equipment Others Capital. Total
buildings machinery of plants
in progress
and advances
1 January 2010
Cost 80,235 206,788 50,742 16,490 19,787 374,042
Revaluations –
Depreciation and impairment 37,107 137,017 41,160 13,795 229,079
Carrying amount 43,128 69,771 9,582 2,695 19,787 144,963
Investments 5,831 14,170 4,295 1,011 (5,748) 19,559
Sales 43 12 8 1,849 1,912
Amortisation 2,511 13,583 4,966 770 21,830
Reclassification –
Other changes –
31 December 2009 broken down as 46,448 70,315 8,899 2,928 12,190 140,780
Cost 84,814 218,765 53,604 16,360 12,190 385,733
Revaluations –
Depreciation and impairment 38,366 148,450 44,705 13,432 244,953
Carrying amount 46,448 70,315 8,899 2,928 12,190 140,780
Investments 3,223 4,801 5,522 2,391 472 16,409
Merger 7,155 100 33 3 7,291
Sales 4,079 5,446 22 747 10,294
Amortisation 2,482 14,967 4,509 1,073 23,031
Reclassification (18) 18 –
Other changes
31 December 2010 broken down as 43,110 61,858 9,972 4,297 11,918 131,155
Cost 83,478 225,472 59,193 17,888 11,918 397,949
Revaluation –
Depreciation and impairment 40,368 163,614 49,221 13,591 266,794
Carrying amount 43,110 61,858 9,972 4,297 11,918 131,155
Property, plant and equipment are stated net of accumulated depreciation.
Land and buildings refer to the industrial sites at Genoa-Campi (Euro 42,995 thousand) and the Teheran
property in which the Iranian branch has its headquarters (Euro 115 thousand).
The net fall of Euro 9,625 thousand compared to the previous year is determined by:
� purchases and capitalisation of new plant (Euro 16,409 thousand) relating to the realisation of the “S3
DEFEND” defensive control project to protect the company’s assets, the partial renovation of the second
floor of Building 1, the renovation of the Fegino canteen building, the renovation of archives, network
infrastructure work, heat treatment saddles, mixing chambers;

ANSALDO ENERGIA ANNUAL REPORT 2011
89
� depreciation in the year of Euro 23,031 thousand, calculated based on the useful life of the assets at the
following rates:
Industrial buildings 3-5%
Plant and machinery 5-20%
Minor equipment 12,5-40%
Minor equipment 12-20%
Vehicles 20-25%
� decreases of Euro 10,294 thousand deriving from disposals, net of depreciation, are basically attributable
to the divestment of assets resulting from the incorporation of Ansaldo Fuel Cells;
� decreases of Euro 664 thousand for transfers to the income statement and the recovery of advances.
9. Equity investments
Euro/thousand 12.31.2011 12.31.2010
Opening balance 18,200 19,919
Acquisitions/subscriptions and capital increases 951 19,651
Revaluations/impairment
Merger eliminations
(8,539) (20,613)
Sales 15 90
Reclassifications
Mergers
(667)
Closing balance 10,597 18,200
The changes in the year relate mainly to:
1. the merger by incorporation of Ansaldo Fuel Cells on 1 October 2011, with effect on 1 November 2011,
resulting in the elimination of the investment of Euro 10,791 thousand, which had been written down in
2010;
2. the subscription of a capital increase in Turboenergy S.p.A. amounting to Euro 941 thousand, as a result
of which the stake now stands at 16.8%. The subscription took the form of a transfer of receivables owed
by the company;
3. the subscription of a stake amounting to Euro 6 thousand in the company Santa Radegonda Srl, which
was set up to promote a project for the future construction of a power plant in Italy;
4. impairment testing of equity investments, as a result of which the stakes in Ansaldo Thomassen and
AESG were written down by Euro 7,000 thousand and Euro 1,538 thousand respectively;
5. the sale of the stake in Newco Energy for Euro 15 thousand.
NOTES TO THE FINANCIAL STATEMENTS AT 31 DECEMBER 2011

List of equity investments at 31 December 2010
Euro/thousand
% Carrying Total Total
Name ownership amount assets liabilities
Subsidiaries and associates
Ansaldo Energy Inc. 100% 1 182 73
Ansaldo ESG AG 100% 2,890 6,321 3,431
Ansaldo Nucleare S.p.A. 100% 107 60,088 59,058
Ansaldo Thomassen Bv 100% 4,953 57,279 56,692
Asia Power Project Private Ltd 100% 5,189 13,102
- Write-down reserve (7,913)
Polaris Srl 49% 48
Yeni Aen Insaat Anonim Sirketi 99.96% 49 41,613 40,165
Turboenergy 16.80% 941
170,672 172,521
Other equity investments and consortia
Consorzio Chiara in liq. 50% 16
Consorzio CISA in liq. 66% 68
Consorzio CORIBA in liq. 5% 3
Consorzio CREATE 16.23% 5
Consorzio CRIS 48.40% 1,165
Consorzio Energie Rinnovabili 51% 10
Consorzio Quinn 8.33% –
Consorzio SIRE 29.41% 25
Euroimpresa Legnano 9.917% 155
Libian Italian Joint Co. 0.33% 9
Presenzano Energia 10.00% 12
Consorzio Cer1 15.00% 3
SIET S.p.A. 3.58% 107
Santa Radegonda 19.00% 6
Polo innovazione energia nucleare 1
SIIT Distretto Tecnologico Ligure 2.30% 14
SOGEA 0.10% 9
Total equity investments (net of impairment provisions) 10,597
The Appendices include a Table of investee companies which provides the information required by the Italian
Civil Code.
10. Transactions with related parties
Commercial transactions with related parties are generally carried out at arm’s length, as is settlement of
interest bearing receivables and payables when not governed by specific contractual conditions.
Below are the amounts:

ANSALDO ENERGIA ANNUAL REPORT 2011
91
Euro/thousand Current Trade Other Total
financial receivables current
Receivables al 12.31.2011 receivables receivables
Parent companies
Finmeccanica 309,330 242 25,808 335,380
Ansaldo Energia Holding 143 143
309,330 385 25,808 335,523
Subsidiary companies
Ansaldo Esg 7 667 674
Ansaldo Nucleare 3,244 5,835 9,079
Ansaldo Thomassen B.V. 33,414 3,794 37,208
Yeni AEN insaat anonim 3,185 27 3,212
Ansaldo Thomassen Gulf 104 104
ASPL 8,000 14 8,014
47,850 10,441 – 58,291
Associated companies (*)
Ansaldo Breda 15 15
Yeni Elektrik uretim an. 3,166 3,166
Elsag Datamat 17 17
Fata 883 59 942
– 4,081 59 4,140
Companies controlled or subject to significant influence by the Italian MEF
Eni 22,359 22,359
Enel 15,008 15,008
– 37,367 – 37,367
Total 357,180 52,274 25,867 435,321
% of total for year 100 17.62 36.13
Receivables at 12.31.2010
Parent company
Finmeccanica 443,378 221 24,530 468,129
Subsidiary companies
Ansaldo Electric Drives 793 17 810
Ansaldo Esg 378 378
Ansaldo Fuel Cells 6,696 646 7,342
Ansaldo Nucleare 1,912 1,912
Ansaldo Thomassen B.V. 30,791 316 31,107
Ansaldo Thomassen Gulf 36 36
ASPL 8,000 8,000
46,280 3,305 – 49,585
Associated companies (*)
Ansaldo Breda 29 29
SO.GE.PA. In liq. 377 377
Elsag Datamat 17 17
Fata 217 217
– 640 – 640
Companies controlled or subject to significant influence by the Italian MEF
Enel 32,448 32,448
Eni 12,547 12,547
– 44,995 – 44,995
Total 489,658 49,161 24,530 563,349
% of total for year 100 20.94 44.43
NOTES TO THE FINANCIAL STATEMENTS AT 31 DECEMBER 2011

Euro/thousand Current Trade Other Total
financial payables current
Payables at 12.31.2011 payables payables
Parent company
Finmeccanica – 13,641 18,096 31,737
Subsidiary companies
Ansaldo E.S.G. 194 194
Ansaldo Nucleare 650 650
Ansaldo Thomassen B.V. 647 647
Ansaldo Thomassen Gulf 13 13
– 1,504 – 1,504
Associated companies (*)
Elsag Datamat 4,197 4,197
Fata Logistic System 1,358 1,358
Fata 5 5
Finmeccanica Group Service 57 57
Alenia SIA 63 63
Selex Elsag 74 74
Selex Galileo 38 38
SO.GE.P.A. in liq. 1,259 1,259
– 7,051 – 7,051
Companies controlled or subject to significant influence by the Italian MEF
Enel 1,696 1,696
Fintecna 14 14
Cassa depositi e prestiti 281 281
Ferrovie dello stato 3 3
– 1,994 – 1,994
Total – 24,190 18,096 42,286
% of total for year 6.01 24.70
Payables at 12.31.2010
Parent company
Finmeccanica
Subsidiary companies
– 3,479 3,427 6,906
Ansaldo Esg 15 206 221
Ansaldo Nucleare 3,840 3,840
Ansaldo Thomassen B.V. 726 726
Ansaldo Thomassen Gulf 359 359
Associated companies
3,855 1,291 – 5,146
(*)
Elsag Datamat 4,319 4,319
Fata Logistic System 1,425 1,425
Fata 74 74
Finmeccanica Group Service 292 292
Alenia SIA 30 30
Telespazio 17 17
Elsacom 6 6
Selex Galileo 38 38
SO,GE,P.A. in liq. 1,459 1,459
Digint 980 980
Space Software Italia 22 22
– 8,662 – 8,662
(segue)

(segue)
ANSALDO ENERGIA ANNUAL REPORT 2011
93
Euro/thousand Current Trade Other Total
financial payables current
Debiti al 31.12.2010 payables payables
Companies controlled or subject to significant influence by the Italian MEF
Enel 788 788
Cassa Depositi e Prestiti 152 152
Ferrovie Stato 3 3
Fintecna 1 1
– 944 – 944
Total 3,855 14,376 3,427 21,658
% of total for year 72.70 3.75 6.00
(*) companies subject to the direction and coordination of Finmeccanica S.p.A.
The various payables and receivables with the Parent Company include receivables deriving from advance
taxation due to temporary differences of Euro 12,373 thousand, VAT receivable amounting to Euro 13,435
thousand and deferred tax liabilities of Euro 2,664 thousand transferred to the Finmeccanica tax
consolidation scheme, in addition to tax liabilities for the year of Euro 16,440 thousand. Changes for the
year and a breakdown of assets by maturity in foreign currency and by geographical area are provided in
Appendices 5, 6, 9 and 10 to these Notes.
11. Receivables and other non current assets
Euro/thousand 12.31.2011 12.31.2010
Security deposits
Severance indemnity receivables (TFR)
289 280
Others 90 93
Receivables from Yeni Elektric 26,212 93
Non current receivables 26,591 466
Advance taxation 937 2,547
Other non current assets 937 2,547
As amply commented on in the report on performance, in 2011 the Company was awarded a contract to
build a combined cycle power plant rated about 825 MW in the Gebze industrial district of Istanbul in Turkey.
Ansaldo Energia, in addition to its traditional role as turnkey builder of the plant, is also an investor in this
specific case. Concurrently with the supply contract, your Company stipulated an agreement with Unit NV to
invest in the equity of Yeni Elektrik, which will build and operate the power plant.
Under the terms of the investment agreement, your Company will acquire a 40% stake in the share capital of
Yeni Elektrik and subscribe the capital increases needed to provide the company with the necessary funds,
amounting to about USD 120 million (about Euro 86 million).
The equity investment is accompanied by a series of further agreements with partner Unit, and subordinately
with Finmeccanica, which clearly define how Ansaldo Energia accrues the right from Unit NV to realise the
value of the investment made at a certain set date and a fixed compensation, and that there are no other
risks for the Company.
These agreements, the direct correlation between the investment and the contract award, and the reasons
NOTES TO THE FINANCIAL STATEMENTS AT 31 DECEMBER 2011

that induced the Company to make the investment mean that it has been classified as a receivable under
fixed assets amounting at 31 December 2011 to Euro 26,212 thousand.
In June, Finmeccanica S.p.A. stipulated a contract of rent for a consideration to use the Ansaldo brand for
25 years, which resulted in the recognition of a prepayment of Euro 84,419 thousand.
Other changes refer to reduced use of severance indemnity receivables (TFR) and a net reduction in advance
IRAP tax liabilities (Euro 1,610 thousand).
Changes for the year and a breakdown of assets by maturity in foreign currency and by geographical area are
provided in Appendices 3, 4, 5 and 6 to these Notes.
12. Inventories
Euro/thousand 12.31.2011 12.31.2010
Raw materials, supplies and consumables 157.625 148.204
Work in progress and semi-finished goods 108.089 108.949
Advances to suppliers 42.052 27.047
307.766 284.200
Raw materials, supplies and consumables
These items are recorded net of provisions for depreciation amounting to Euro 9,608 thousand. They are
assessed at average weighted cost, which is certainly below the net realisation value, excluding products
manufactured for stock, which are valued at standard cost and reviewed half-yearly. During the year this item
rose a total of Euro 9,421 thousand, consistently with commitments as demonstrated by the order book.
Work in progress and semi-finished products
Semi-finished products, which fell Euro 860 thousand, are assessed at production cost and refer to highly
standardised parts that are associated to sales orders only when specific projects are identified. Of the fall
against 2010, Euro 22,976 is attributable to association to sales orders finalised during the year, and Euro
23,836 thousand to production of new semi-finished products.
Advances to suppliers
This item, which mainly relates to contract work for plant orders in progress in the year, fell by Euro 15,005
thousand. It also contains Euro 149 thousand advances to related parties.

13. Contract work in progress and advances received
ANSALDO ENERGIA ANNUAL REPORT 2011
95
Euro/thousand 12.31.2011 12.31.2010
Contract work in progress (gross) 555,072 415,341
Advances from customers 491,617 340,451
Contract work in progress (net) 63,455 74,890
Advances from customers (gross) 3,748,141 4,244,200
Contract work in progress 3,161,961 3,620,077
Advances from customers (net) 586,180 624,123
Net contract work in progress fell Euro 11,435 thousand compared with the previous year and mainly refers
to component sales.
The main orders are given below (Euro/thousand):
Euro/thousand Gross WIP at Advances at NET WIP AT
Contract Description of plant 12.31.2011 12.31.2011 12.31.2011
0481 AIN DJASSER II CICLO APERTO N.2 UNITA' 26,433 (16,609) 9,824
0490 6TH OCTOBER - 600MW POWER PLANT 174,350 (165,486) 8,864
0461 ENEL - C.LE TERMOELETTRICA LA SPEZIA 10,890 (5,782) 5,108
0488 YENI ELEKTRIK 850 MW CCGT 72,168 (67,375) 4,793
0435 MARCINELLE - N.1 TG V94.3A4 - N.1 AT 67,749 (63,477) 4,272
0455 TORINO NORD - BOP PER CICLO COMBINATO 16,277 (13,104) 3,173
0474 ISAB MANUT.PROGR. E FORNITURA RICAMBI 6,663 (4,394) 2,269
7270 SHOAIBAH - MAJOR OVERHAUL 2,015 2,015
7213 PARAND - PALETTE TG V94.2 1,844 1,844
0445 VLORE - LTSA 1,588 1,588
0409 WEST ST.PETERSBURG RUSSIA 15,255 (13,710) 1,545
Net advances from customers decreased by Euro 37,943 thousand, mainly due to the fact that most of the
orders in progress are for plant engineering, where invoicing is not strictly correlated with production
progress.
The main orders are given below (Euro/thousand):
NOTES TO THE FINANCIAL STATEMENTS AT 31 DECEMBER 2011

Gross WIP atl Advances at Net WIP at Receivables at
Contract Description of plant 12.31.2011 12.31.2011 12.31.2011 12.31.2011
0292 ENIPOWER-MANUT.+RIC. A DISPOSIZIONE 221,078 (252,079) (31,001) 7,362
0322 ENIPOWER-FERRARA - LTSA GRUPPI 1/2 (1,117) (26,838) (27,955) 3,374
0469 DEIR ALI - CC 800 MW 105,792 (133,719) (27,927) 6,406
0355 RIZZICONI - GARANZIA TOT FUNZIONAMENTO 27,407 (49,352) (21,945) 564
0432 APRILIA - CC MULTISHAFT 2+1 800 MW 243,873 (261,110) (17,237) 18,355
0323 CALENIA EN./SPARANISE (CE)-GTF 2X12 ANNI 60,824 (76,580) (15,756) 955
0422 CTE FEDERICO II - MOD.TV PARTITE 1-2-3 26,264 (40,474) (14,210) 89
0509 GIZA NORTH - N.2 TV RT30+N.2 AT THRL45 303 (12,854) (12,551) 12,854
0413 SAN SEVERO - CC SINGLE SHAFT 400 MW 242,642 (254,765) (12,123) 20
7371 ENIPOWER FE-RA-BR -UPGRADING TG 1,640 (13,425) (11,785) 1,275
0485 SOUSSE - C.C. 400 MW 44,774 (56,215) (11,441)
0421 ADLER RUSSIA - N.4 TG + N.4 AT 79,671 (90,948) (11,277) 1,578
0429 TURANO - LTPA 6 ANNI TG V94.3A+AT 2,774 (13,906) (11,132) 314
For orders regarded as complete, costs still to incur after the end of work were assessed and a special
provision for risks and charges established.
Pursuant to IAS 11, long-term orders are assessed using the cost to cost method, which involves
establishing the percentage progress, as a ratio between costs incurred and the planned totals, and applying
it to contract revenues in order to obtain the value to state under contract work in progress at the end of the
period. Such margins for the year amount to Euro 216,111 thousand.
As commented on in the directors’ report, during the year an important contract was finalised in Turkey worth
Euro 271,576 thousand by customer Yeni Elektrik. This contract is associated with another contract to
acquire 40% of the share capital in Yeni Elektrik, involving the payment of Euro 90,000 thousand share
premium to partner Unit NV.
This amount cannot be recovered on the basis of existing agreements with partner Unit and therefore, in
compliance with IAS 11, revenues over the full contract period have been reduced by this amount and
increased by the yield recognised on the investments in Yeni Elektrik, as described in the “receivables under
fixed assets” section, equivalent to an estimated value to date of about Euro 45,000 thousand. The pro rata
amount of these two items, Euro 27,173 thousand, is recorded in under advances for this contract.
14. Trade and financial receivables
Euro/thousand 12.31.2011 12.31.2010
Trade Financial Trade Financial
Receivables 248,206 189,325
(Impairment) (3,753) (3,753)
Receivables from related 52,274 357,180 49,161 489,658
296,727 357,180 234,733 489,658
Receivables are stated at their fair value at 31 December 2011.

ANSALDO ENERGIA ANNUAL REPORT 2011
97
Receivables that are disputed, or where there is any doubt over their recovery with regard to legal disputes,
judicial proceedings or insolvency, are recorded at their nominal value and written down in a special reserve
for doubtful receivables to reflect the effects of the impairment test performed.
The receivables recorded are not represented by bills of exchange or similar securities.
The net rise of Euro 61,994 thousand is basically due to the gradual reduction of receivables from customer
Ojsc Enel for the Sgres Project contract in Russia (Euro 14,520 thousand), Ojsc Enel for the Adler Russia
contract (Euro 11,243 thousand), Solenergy for the Martano contract (Euro 10,212 thousand), Sorgenia
Power for the Turano power plant (Euro 8,941 thousand), offset by increases attributable to customer CPEC
for the 6th October contract (Euro 32,706 thousand), Sorgenia Power for Aprilia (Euro 16,171 thousand),
CPEC for Giza Nord (Euro 12,854 thousand) and Winbis for the Bisaccia wind plant (Euro 11,577 thousand).
During the year the Company had recourse to factoring with regard to several receivables from customers
amounting to Euro 37,288 thousand and made repayments of Euro 17,055 thousand, incurring
commission of Euro 220 thousand which was recognised among other operating costs.
Financial receivables refer to the current account with parent company Finmeccanica and fell Euro 132,479
thousand in relation to support for the Company’s activities, including the payment of the Euro 65,379
thousand dividend.
15. Tax receivables and payables
Euro/thousand 12.31.2011 12.31.2010
Receivables Payables Receivables Payables
Direct taxation 957 3,952
– 957 3,952 –
Receivables
Direct tax receivables fell Euro 3,952 thousand as a result of the use during the year of residual IRAP.
16. Other current assets
Euro/thousand 12.31.2011 12.31.2010
Accrued income - current portion 27,417 8,981
Receivables from employees and social security 729 704
Other receivables from tax authorities 10,013 6,881
Other assets 7,574 8,117
Other receivables from related parties 25,866 24,530
Other current assets include:
71,599 49,213
� accrued income, mainly relating to the future year portion of insurance costs to cover erection risks,
attributed to orders according to their state of completion; the increase of Euro 18,436 thousand is mainly
due to insurance coverage of contractual risks, excluding construction risks, stipulated with Finmeccanica
for the contract in Turkey;
NOTES TO THE FINANCIAL STATEMENTS AT 31 DECEMBER 2011

� a receivable from NLC Neyveli for interest on the late payment of Withholding Tax amounting to Euro 3,005
thousand, improperly withheld, for which a formal dispute is pending in India and for a receivable from the
Algerian tax authorities of Euro 2,500 thousand due to a withdrawal made by the tax authorities which the
company is appealing. The risks relating to these receivables, and likewise the entire dispute with the
Indian tax authorities, have been accounted for by means of an overall payment into the taxation reserve.
Changes for the year and a breakdown of assets by maturity in foreign currency and by geographical area are
provided in Appendices 3, 4, 5 and 6 to these Notes.
17. Cash and cash equivalents
Euro/thousand 12.31.2011 12.31.2010
Cash 28,701 16,831
28,701 16,831
Of bank deposits, Euro 24,705 thousand relates mainly to cash and cash equivalents in the local currency
deriving from collections on Algerian contracts for on-site work, Euro 520 thousand to deposit accounts and
Euro 3,474 thousand to ordinary current accounts.
We remind you that in accordance with Group treasury policy, the Company’s cash and cash equivalents are
deposited with Finmeccanica S.p.A. and remunerated at arm’s length.
The amounts deposited in bank accounts at year end should therefore be considered as residual assets.
18. Non current assets held for sale
Euro/thousand 12.31.2011 12.31.2010
Non current assets held for sale 667
– 667
The fall is attributable to the equity investment in Ansaldo Electric Drives held for sale the previous year and
actually sold in February of the current year with the transfer of the stake to Finmeccanica Financial Service.

19. Shareholders’ equity
ANSALDO ENERGIA ANNUAL REPORT 2011
99
Shareholders’ equity at 31 December 2011 was Euro 13,693 thousand, a net fall of Euro 80,980
thousand.
A breakdown of shareholders’ equity with regard to cash and cash equivalents and availability is provided in
Appendix 7 to these Notes. Changes during the year are detailed in the “other reserves” item.
Share capital
Number of Par Treasury
ordinary shares value share Total
Outstanding shares 11,966,812 € 1 11,966,812
Treasury shares –
31 December 2010 11,966,812 – 11,966,812
31 December 2011 broken down:
Outstanding shares 11,966,812 € 1 11,966,812
Treasury shares –
11,966,812 € 1 – 11,966,812
The share capital is divided into 11,966,812 ordinary shares with a par value of Euro 1 each.
Following the transfer of the equity stake held by Finmeccanica to Ansaldo Energia Holding S.p.A., the entire
share capital is held by the latter. The transfer took place on 13 June 2011.
The Company does not possess any treasury shares.
NOTES TO THE FINANCIAL STATEMENTS AT 31 DECEMBER 2011

Other reserves
Euro/thousand Retained Cash-flow Reserve forr Reserve for Other Total
earnings hedge stock- actuarial reserves
reserve option/ gains (losses)
grant recognised
plans in equity
31 December 2009 95,755 (284) 733 1,747 318 98,269
Dividends paid (82,000) (82,000)
Premium on share capital increases –
Reclassification from Reserve for
deferred taxation in Shareholders’ equity –
Actuarial profit (losses) (1,118) (1,118)
Net profit for the year 65,379 65,379
Stock option/grant plans:
- value of benefits (737) (737)
- issue of new shares 3,125 391 3,516
Fair value adjustments 871 871
Transfers to income statement (1,474) (1,474)
Deferred taxation –
Translation differences –
31 December 2010 79,134 (887) 3,121 629 709 82,706
Dividends paid (65,338) (65,338)
Premium on share capital increases –
Reclassification from Reserve for
deferred taxation to Shareholders’ equity (692) 692 –
Actuarial profit (losses) 1,076 1,076
Net profit for the year (16,272) (16,272)
Stock option/grant plans:
- value of benefits (3,121) (3,121)
- issue of new shares 2,679 2,679
Fair value adjustment 64 64
Transfers to income statement (67) (67)
Deferred taxation –
Translation differences –
31 December 2011 (3,168) (198) – 1,705 3,388 1,727
Cash Flow hedge reserve
This reserve has been created in compliance with IAS 39 to recognise changes in the derivative and swap
contracts entered into by the company to hedge exposure to exchange risk on cash flows in foreign
currencies. The reserve is stated net of the related deferred tax liabilities.
Reserve for stock option and stock grant plans
With the termination of the Finmeccanica stock grant plan and the transfer of the shares allocated to it, this
reserve has been reduced to zero. The surplus of Euro 2,697 thousand was transferred to the plan’s share
consignment reserve.

20. Borrowings
ANSALDO ENERGIA ANNUAL REPORT 2011
101
Euro/thousand 12.31.2011 12.31.2010
Non Non
Current current Total Current current Total
Bank borrowings 2,089 2,089 1,280 1,280
Other financial borrowing 167 167 167 167
Payables to related parties 3,855 3,855
2,256 – 2,256 5,302 – 5,302
Changes in borrowings are given below:
Euro/thousand 12.31.2010 New Re- Area Other 12.31.2011
loans payments change changes
Bank borrowing 1,280 809 2,089
Other financial borrowing 167 167
1,447 809 – – – 2,256
Lenders
The change in payables to banks is due mainly to an increase of Euro 809 thousand in connection with
current accounts at foreign banks.
Net financial position
Financial information is given below in the form suggested by CONSOB in circular no. DEM/6064293, 28
July 2006:
Euro/thousand 12.31.2011 of which with 12.31.2010 of which with
related parties related parties
Cash 165
Bank deposits 28,701 16,666
Cash and cash equivalents 28,701 16,831
Current financial receivables 357,180 357,180 489,658 489,658
Current bank payables 2,089 1,280
Current portion of non-current borrowings
Other current borrowings 167 4,022
Current financial borrowing 2,256 5,302
Current net financial borrowing
(cash and cash equivalents) (383,625) (501,187)
Non current bank payables
Other non current payables
Non current net financial borrowing – –
Net financial borrowing
(cash and cash equivalents) (383,625) (501,187)
NOTES TO THE FINANCIAL STATEMENTS AT 31 DECEMBER 2011

21. Provisions for risks and charges and contingent liabilities
Euro/thousand Re- Provision Products Pending Taxation Other Total
structuring for equity guarantees disputes reserve
investment risks
1 January 2010
Current 5,396 10,041 22,312 9,927 47,676
Non current 20,699 27,728 36,046 84,473
5,396 10,041 20,699 22,312 27,728 45,973 132,149
Increases 5,661 6,650 12,311
Utilisations 103 1,210 134 20 12,812 14,279
Other movements (1,000) 1,000 –
31 December 2010 4,293 14,492 20,699 22,178 34,358 34,161 130,181
broken down as follows:
Current 4,293 14,492 22,178 9,270 50,233
Non current 20,699 34,358 24,891 79,948
4,293 14,492 20,699 22,178 34,358 34,161 130,181
Increases 3,000 5,121 82,548 90,669
Utilisation 1,199 917 2,020 5,890 515 8,645 19,186
Other movements (5,661) 89,295 83,634
31 December 2011 3,094 7,914 21,679 16,288 38,964 197,359 285,298
broken down as follows:
Current 3,094 7,914 16,288 12,390 39,686
Non current 21,679 38,964 184,969 245,612
3,094 7,914 21,679 16,288 38,964 197,359 285,298
Restructuring charges
This item contains prior year provisions against asset disposal risks. During the year Euro 1,199 thousand
was used.
Provisions for equity investment risks
In 2011 subsidiary ASPL reported a positive net result, allowing the provision for equity writedown to be
reduced by Euro 917 thousand to align it with the new shareholders’ equity value.
There was a Euro 5,661 thousand reduction during the year as a result of the disposal by merger of the
equity investment in Ansaldo Fuel Cells.
Product warranties
This reserve makes provision for direct and indirect risks deriving from performance guarantees pledged,
also after the contractual warranty period. There is a statistical possibility that indirect damage caused by
the performance of your company’s products may occur across the entire installed park.
Euro 2,020 thousand was used during the year in relation to damage to the Bayet power plant and the
reserve was increased by a Euro 3,000 thousand provision.

ANSALDO ENERGIA ANNUAL REPORT 2011
103
Pending disputes
This reserve makes provision for the best estimate of arbitration proceedings and legal disputes with
employees (Euro 620 thousand) and with third parties (Euro 15,668 thousand). The reserve for pending
disputes with third parties makes provision for legal and arbitration disputes in Italy and internationally
deriving from contracts and assignments of business performed in previous years. Because of uncertainty
over the time needed to reach a final judgement in the aforementioned disputes, it is impossible to establish
when the disbursement may take place. During the year the civil dispute with the Argentine state was
concluded and Euro 5,627 thousand used from the reserve.
Taxation
This reserve makes provision for the best estimate of exposure to Italian and foreign tax risks. The provision
during the year of Euro 5,120 thousand refers to taxes in Turkey and elsewhere.
Overall, of provisions to the reserve for taxation for the year and previous years:
� Euro 12,712 thousand, in part already paid out, refers to a dispute with the Indian tax office regarding the
taxability of materials sold FOB to Indian customers. The company considers said materials to be exempt
from local taxes by virtue of the treaty against dual taxation in force between the two countries. To
strengthen its position, in addition to pursuing its defence at all levels in India, the company has also
activated the procedure envisaged by the treaty for the amicable settlement of the dispute;
� Euro 10,077 thousand refers to the estimate of tax payable to the Iranian tax authorities, with whom the
amount has not yet been defined;
� Euro 4,000 thousand refers to the risk of tax expenses in Algeria regarding financial 2007–2008;
following an audit by the revenue service, the tax office forcibly withdrew the amount of Euro 2,600
thousand from our bank accounts. The bureaucratic compliance procedures have been initiated and are
still in progress. It is believed that a positive outcome to requests is possible and therefore that exposure
to the risk will be reduced next year;
� Euro 504 thousand Italian income tax, pursuant to the report issued by the Tax Police following an audit in
2008;
� Euro 11,670 thousand taxation not yet defined due to timing differences with the competent authorities.
Other provisions
Other provisions refer to costs to be incurred after the completion of contracts relating to guarantees or
other contract undertakings (Euro 102,420 thousand), mainly due to the completion of contracts in Algeria
and costs to cover the asbestos risk (Euro 8,111 thousand).
This allocation was made necessary by the non-renewal of the insurance policy covering “professional
illnesses deriving from the use of or exposure to asbestos”, which expired in January 2007. The amount of
the allocation represents the best estimate based on historical data available and consolidated scientific
doctrine regarding the “latency” period of the illness even beyond 15-20 years.
Past events mainly refer to the Legnano production facility, which has been disposed of. We remind you that
the site was acquired by Ansaldo Energia in 1991, and that asbestos had been almost entirely eliminated
from work processes by the end of the 1980s, and therefore well before the legal prohibition introduced in
1992.
During the year, following the merger with Ansaldo Fuel Cells, a provision for risks amounting to a net Euro
4,208 thousand was created to cover risks relating to the activities contributed by Ansaldo Fuel Cells.
The situations below do not fall into this category, but are mentioned here solely for the purposes of full
disclosure.
On 20 November 1997 the company Abengoa, in connection with a contract commissioned by the Porto Rico
NOTES TO THE FINANCIAL STATEMENTS AT 31 DECEMBER 2011

Electricity Authority (“Prepa”), signed a sub-supply contract with Ansaldo Energia for repowering work on the
San Juan power station in Porto Rico.
With regard to the contract between Abengoa and Prepa, American International Insurance Company of
Puerto Rico (“AIIP”), an AIG Group company, issued a Performance Bond and a Payment Bond, each worth
US$ 125 million, for which Ansaldo Energia provided counter-guarantees of US$ 36 million in connection with
its scope of supply.
In 2000 Abengoa, without informing Ansaldo Energia, unilaterally terminated its contract and filed suit
against the customer with the Court of Porto Rico to terminate the contract and claim for damages. Prepa, in
turn, claimed US$ 500 million damages from Albengoa and the guarantor AIIP.
In order to prevent the discussion of the aforementioned bonds, Ansaldo Energia filed suit with the Court of
Milan to declare its bonds ineffective and subordinately to apply for Albengoa to hold it harmless.
AIIP and Albengoa opposed this stance, and in particular AIIP requested that Ansaldo Energia be obliged
jointly to hold AIG harmless from any claim by Prepa and the sub-suppliers of Abengoa.
On 9 July 2010 the Court of Milan handed down a judgement which can be summed up as follows:
1) the Court upheld that the bonds may not be discussed at first request and a residual payment obligation
was recognised as accruing to Ansaldo with regard to AIIP in the sole case in which the Court of Porto Rico
were to convict Albengoa and same were not to make payment and AIIP after making payment were unable to
obtain full repayment from Albengoa;
2) the application to declare the bonds ineffective and the ascertainment of the amount of Euro 36 million
dollars were not granted.
In the opinion of counsel the judgement should be regarded as a positive result because it qualifies
Ansaldo’s obligation as a recourse bond, raising a right of recourse against Abengoa, which is a solvent
company.
In 2004, in the framework of a Court investigation into contracts awarded by Enipower S.p.A., Ansaldo
Energia S.p.A., as supplier of same, received notice of investigation pursuant to the law on the
administrative liability of corporations pursuant to D.Lgs. 231, 8 June 2001, for alleged supervisory failings
in connection with an employee of the company, who subsequently resigned and is alleged to have
committed illegalities.
On 19 December 2011 the arguments were filed for the decision, which was handed down on 20 September
2011, to find Ansaldo Energia responsible for the violation of legislative decree 231/2001 and therefore to
order it to pay a sanction of Euro 150,000 in addition, pursuant to section 3, article 12 of the same
legislative decree, to the confiscation of the equivalent amount of profit, which it quantified in 10% of the
value of the contract and therefore Euro 98,700 thousand.
The reasons for the decision do not clarify doubts regarding the reconstruction of events and the
responsibility of the Company as presented by the prosecution. The appeal that will be filed in February with
the Milan Appeal Court will therefore be an application for the re-examination of all the facts to have
emerged in the proceeding and an application for a complete reassessment of all the case documents with
a view to the revision of the decision.
As the Court did not examine the matters presented in their entirety, all the questions will be referred to the
Appeal Court and if necessary to the Court of Cassation.
The gravity and decisiveness of the questions raised make it reasonably likely that the appeals will be
upheld, even though at present this cannot be assured, also in consideration of the fact that many of the
questions raised relate more to fact than to points of law.
The company has therefore made a mid term risk provision of Euro 98,700 thousand, discounted back 4
years to a current value of Euro 82,548 thousand.

22. Employee obligations
ANSALDO ENERGIA ANNUAL REPORT 2011
105
Euro/thousand 12.31.2011 12.31.2010
Severance obligations 28,749 32,886
Defined-benefit pension plans 600 571
Other employee obligations 1,350 1,331
30,699 34,788
The statutory severance pay obligation is specific to Italy and calls for the payment of the entitlement
accumulated by employees until the time they leave the company. This provision is calculated in accordance
with Article 2120 of the Italian Civil Code, by dividing the fixed components of an employee’s compensation
by 13.5.
Italian law 296, 27 December 2006, and subsequent Decrees and Regulations issued in early 2007 in the
framework of complementary pension reform, have significantly modified the operation of this mechanism,
establishing that severance pay maturing after the date of the Reform be transferred to the complementary
pension fund or the Treasury fund managed by INPS.
With defined-benefit plans, the Company assumes the obligation to ensure a specific retirement benefit level
for employees participating in the plan, guaranteeing to make good any negative difference between the
value of plan assets and the agreed-upon benefit level.
Defined-benefit retirement plans break down as follows:
Euro/thousand 12.31.2011
Present value
Net liability for
defined-benefit
of the obligation plans
Opening balance 571 571
Costs of benefits paid 128 128
Benefits paid 99 99
Closing balance 600 600
Euro/thousand 12.31.2010
Opening balance 531 531
Costs of benefits paid 92 92
Benefits paid 52 52
Closing balance 571 571
Changes in severance obligations are shown below:
Euro/thousand 12.31.2011 12.31.2010
Opening balance 32,886 34,617
Interest expense 1,022 943
Actuarial losses (profits) recognised in equity (1,053) 1,118
Merger 436
Decreases for sales 4,542 3,792
Closing balance 28,749 32,886
NOTES TO THE FINANCIAL STATEMENTS AT 31 DECEMBER 2011

The amount recognised in the income statement was calculated as follows:
Euro/thousand 12.31.2011 12.31.2010
Interest expense 1.022 943
Total cost 1.022 943
The main actuarial assumptions made in assessing defined benefit plans and the component of severance
pay that continues to represent a defined benefit plan are the following:
Severance obligations
12.31.2011 12.31.2010
Discount rate 2.75% 3.14%
Expected return on plan assets 2.90% 3.14%
Rate of salary increase 3.90% 5.00%
Rate of turnover 10.00% 9.40%
Other reserves for personnel amounting to Euro 1,350 thousand represent the portion regarding
Complementary Pension Funds which will be paid in January.
23. Other current and non current liabilities
Euro/thousand Non current Current
12.31.2011 12.31.2010 12.31.2011 12.31.2010
Employee obligations 5,213 2,456 30,598 27,586
Social security payable 10,925 12,620
Other payables 11,658 11,302
Tax payables 5,698 2,182
Other payables to related parties 18,096 3,427
Total other liabilities 5,213 2,456 76,975 57,117
Non current employee obligations
This item refers to obligations to employees for seniority premiums, assessed at fair value.
Following an agreement regarding the fair value compensation of an outgoing Key Manager, a provision of
Euro 250 thousand was made.
During the year, following the changes in the company organisation, an incentive plan was introduced for
Ansaldo Energia key management and a provision was made amounting to Euro 2,361 thousand based on
a fair value assessment.
This incentive plan, which was approved by the Board of Directors of Ansaldo Energia S.p.A. in June 2011,
recognises variable compensation for beneficiaries if certain corporate events and operations occur,
calculated based on the Company’s economic and financial performance. According to the plan, each
beneficiary has the right to receive variable cash compensation payable in instalments and calculated as a
multiple of invested capital and the annual internal yield realised through the divestment, even partial if
necessary, of the shareholding by the shareholder. The incentive plan is of the “cash settled” type pursuant
to IRFS2. Therefore the fair value of the incentive plan, amounting to Euro 26.4 thousand, has been
estimated using the discounted cash flow method and charged to the income statement during the year
based on the estimated vesting period.

ANSALDO ENERGIA ANNUAL REPORT 2011
107
Current employee obligations
This item rose Euro 3,012 thousand and refers to obligations to employees for: holidays not taken (Euro
11,045 thousand), remuneration for incentives and compensation policy (Euro 12,605 thousand), MBO and
overtime attributable to the year (Euro 3,257 thousand), and early retirements already agreed (Euro 2,225
thousand).
Pension and social security liabilities
This item refers to amounts payable to these entities for contributions owed by the company and its
employees regarding December salaries paid in January, and to remuneration for the year on which
contributions are paid quarterly or annually.
Other liabilities
This item contains payables to insurance companies (Euro 9,478 thousand) and to consultants (Euro 731
thousand) and other minor liabilities.
24. Trade payables
Trade payables rose Euro 19,467 thousand, in line with procurement forecasts due to new orders.
The maturity factoring operations included in this item reported total liabilities of Euro 44 million at 31
December 2011. The Company uses this instrument to allow its suppliers to enter into factoring
relationships for the purpose of liquidating and collecting the receivables they are owed by the Company for
supplies of goods and/or services, while the Company obtains a further extension of the terms of payment
of trade payables and pays the applicable interest. Such interest totalled Euro 127,000 for the year and is
recorded in the Income Statement under “other operating costs”.
A breakdown of liabilities by maturity in foreign currency and by geographical area is provided in Appendices
8, 9 and 10 to these Notes.
25. Derivatives
The table below provides details of the asset and liability positions relating to derivative instruments. The
portion of changes recognised in the income statement is shown in Note 28.
Euro/thousand 12.31.2011 12.31.2010
Assets Liabilities Assets Liabilities
Forward forex instruments 123 79
– 123 79 –
26. Guarantees and other commitments
Leasing
The company holds a number of operating leases primarily for the purposes of acquiring the use of
multipurpose digital office photocopiers, civil facility management equipment and the property in Via
Lomazzo in Milan, where the Company has its secondary head office.
Below are the non-cancellable minimum future payments relating to operating lease contracts and the
commitments for contracts that may be considered as operating lease contracts:
NOTES TO THE FINANCIAL STATEMENTS AT 31 DECEMBER 2011

Euro/thousand Operating lease contract
Within 1 year 776
2 to 5 years 2,578
The Company has no current capital lease contracts.
Guarantees
At 31 December 2011, the company had the following outstanding guarantees:
3,354
Euro/thousand 12.31.2011 12.31.2010
Guarantees to third parties 1,119,526 880,866
Other guarantees to third parties
Unsecured guarantees given 1,119,526 880,866
Guarantees in favour of third parties
This item relates to guarantees issued by banks and insurance companies to:
� customers to bid for tenders (Euro 28,142 thousand);
� customers for advances received and good performance (Euro 1,034,669 thousand);
� suppliers for letters of credit issued to secure payments (Euro 2,084 thousand);
� others: lenders, customs and excise offices, lessors (Euro 45,170 thousand);
� guarantees issued by parent company Finmeccanica in favour of the Italian Tax Authorities against VAT
credits from previous years deriving from the “Group VAT” procedure (Euro 9,461 thousand).
Unsecured guarantees received
Euro/thousand 12.31.2011 12.31.2010
Guarantees given by third parties 165,944 143,628
Holding harmless 34,240 33,934
Other 267,645 112,900
Unsecured guarantees received 467,829 290,462
These items refer to:
� guarantees received from suppliers for good performance of work orders (Euro 165,944 thousand);
� the undertaking by Sogepa S.p.A. to honour the guarantees given by Ansaldo Energia S.p.A. to customers
for the good performance of transferred work orders (Euro 11,853 thousand);
� the undertaking by Ansaldo Nucleare S.p.A. to honour the guarantees given by Ansaldo Energia to
customers for the good performance of transferred work orders (Euro 19,355 thousand);
� the undertaking by Ansaldo Thomassen Turbine System BV to honour guarantees given by Ansaldo Energia
S.p.A. to customers for the good performance of transferred work orders (Euro 1,404 thousand);
� the undertaking by Ansaldo E.S.G. AG to honour guarantees given by Ansaldo Energia S.p.A. to customers
for the good performance of transferred work orders (Euro 1,467 thousand);
� the undertaking by Ansaldo Thomassen Gulf to honour guarantees given by Ansaldo Energia S.p.A. to
customers for the good performance of transferred work orders (Euro 161 thousand);
� letters of credit in our favour given by customers to guarantee collection (Euro 267,645 thousand).

27. Economic transactions with third parties
ANSALDO ENERGIA ANNUAL REPORT 2011
109
Below are all the costs and revenues of the Company with related parties for the years 2011 and 2010:
Euro/thousand
Revenues Other operating Costs Financial Financial
Year 2011 revenues income expenses
Parent companies
Finmeccanica 20,709 2,994 24
Ansaldo Energia Holding (104) 2
20,605 2,996 24
Subsidiaries
Ansaldo Energy 407
Ansaldo ESG 894 259
Ansaldo Nucleare 4,279 64 (1,499) 33 21
ASPL 14
Ansaldo Thomassen 111 128 2,432 638
Ansaldo Thomassen Gulf (5)
Yeni Aen Insaat anonim serketi (50) 46
5,298 192 1,544 717 21
Affiliated (*)
Alenia 97
Ansaldo Breda
Ansaldo STS 2
Selex Elsag Cyberlabs 227
Elsacom 33
Elsag Datamat 11,720
Fata 190
Fata Logistic System 3,928
Finmeccanica Group Services 943
Finmeccanica Group Real Estate 31
Sogepa 2,718 14
Selex Elsag 74
Telespazio 8
2,718 17,253 14
Companies controlled or subject to significant influence by the Italian MEF
Enel 4,736 2,925
Eni 11,429
Cassa depositi e prestiti 375
Fintecna 12
Ferrovie dello Stato 15
16,165 3,327
24,181 192 42,729 3,713 59
% of total for year 1.96% 0.94% 3.89% 50% 0.49%
NOTES TO THE FINANCIAL STATEMENTS AT 31 DECEMBER 2011

Euro thousand Revenues Other Costs Financial Financial
operating income expenses
Year 2010 revenues
Parent companies
Finmeccanica – – 12,742 1,916 28
Subsidiaries
Ansaldo Electric Drives (76) 12
Ansaldo Energy 637
Ansaldo ESG 874 909 3
Ansaldo Fuel Cells 220 13 (496) 214
Ansaldo Nucleare 1,268 (2,411) 21
Ansaldo Thomassen 2,125 388
Ansaldo Thomassen Gulf 1,727
2,362 13 2,415 617 21
Affiliated (*)
Alenia 67
Ansaldo Breda (48)
Ansaldo STS (52)
Digint 832
Elsacom 19
Elsag Datamat 10,810
Fata 198
Fata Logistic System 4,258
Finmeccanica Group Services 1,110
Finmeccanica Group Real Estate 139
Sogepa 689 (1)
689 – 17,332 – –
Companies controlled or subject to significant influence by the Italian MEF
Enel 9,537 861
Eni 4,622 13
Cassa Depositi e Prestiti 781
Ferrovie dello Stato 1 44
Selex Communications 24
Telespazio 15
14,160 – 1,738 – –
17,211 13 34,227 2,533 49
% of total for year 1.30% 0.09% 3.58% 22% 0.17%
(*) companies subject to the direction and coordination of Finmeccanica S.p.A.
I rapporti economici verso la controllante Finmeccanica afferiscono al riaddebito dei costi per personale
distaccato e sostenuti dalla Capogruppo per attività comuni.
I proventi finanziari sono relativi all’impiego della disponibilità effettuata nel corso dell’anno, anche con il
ricorso a temporanei vincoli di liquidità, sempre nel rispetto delle migliori condizioni di mercato. Gli oneri

ANSALDO ENERGIA ANNUAL REPORT 2011
111
finanziari riguardano commissioni su fideiussioni.
I rapporti economici verso le controllate sono relativi a costi per prestazioni ricevute al netto dei recuperi
spese per quelle effettuate. Gli oneri e proventi finanziari sono inerenti a rapporti di natura finanziaria
regolati ai tassi di mercato vigenti nel Gruppo.
I rapporti economici verso le parti correlate riguardano prevalentemente forniture di materiali e prestazioni
per specifiche commesse o per servizi di carattere generale.
28. Revenues
Euro/thousand 12.31.2011 12.31.2010
Revenue from sales 1,524,749 1,517,750
Change in contract work in progress (316,960) (213,102)
Revenue from related parties 24,181 17,211
Total revenue 1,231,970 1,321,859
Revenue from sales and services is detailed in the table contained in the “Segment information” section.
Below are the main contracts contributing to revenue for the year:
Euro/thousand
Customer Description of plant Revenue
CPEC 6TH OCTOBER - 600MW POWER PLANT 174.350
SORGENIA POWER APRILIA - CC MULTISHAFT 2+1 800 MW 120.129
YENY ELEKTRIK URETIM YENI ELEKTRIK 850 MW e CCGT 71.918
METKA (GR) DEIR ALI - C.C. 800 MW 64.056
ENIPOWER ENIPOWER-MANUT.+RIC. A DISPOSIZIONE 59.140
SONELGAZ ALGERIA M'SILA-CICLO APERTO TG 2X215 MW 58.096
STEG SOUSSE - C.C. 400 MW 37.413
SONELGAZ ALGERIA LARBAA - 4TG + 4AT X 139,9 MW 36.890
FINGRID OYJ FINGRID - 2 TG AE94.2+2 AT VY21Z-092+BOP 32.911
3CB - SAS BAYET - CC SINGLE SHAFT 400 MW 31.849
Revenue, in addition to the value of production in the period, also comprises definitive payments on contract
work in progress. We draw your attention to the closure of the Algerian contracts at Euro 839,438 thousand
and the reduction to zero of WIP.
NOTES TO THE FINANCIAL STATEMENTS AT 31 DECEMBER 2011

29. Other operating income (costs)
Euro/thousand 2011 2010
Revenues Expenses Revenues Expenses
Other operating subsidies
Gains on the sale of intangible assets and
300 193
property, plant and equipment 190 51 29 54
Income from property investments 240 46
Accruals to/Reversals of provisions for risks and charges 1,500 85,548
Exchange rate differences on operating items
Adjustment of receivables and liabilities in a foreign
2,772 1,775 3,449 3,401
currency at the end-of-period exchange rate 451 71 2,201 3,064
Financial income from operating receivables 263 612
Insurance reimbursement 14,247 8,383
Indirect taxes 2,767 2,748
Other operating income (costs) 499 1,338 835 2,200
Other operating income (costs) from related parties 176 90 13 261
20,375 91,903 15,149 12,340
Of indirect taxes of Euro 2,767 thousand, Euro 350 thousand refers to ICI property tax and Euro 2,422
thousand to foreign indirect taxes, mainly in connection with Egypt (Euro 2,330 thousand), and to other taxes of
Euro 92 thousand. Operating subsidies derive from funding for human resource training.
Other operating income (Euro 499 thousand) basically refers to previously written-down receivables from
insolvent countries collected through SACE (Euro 498 thousand). Insurance reimbursements refer to damage to
buildings as a result of flooding in Genoa (Euro 4,400 thousand) and damage to various power stations (Euro
9,846 thousand).
The other costs (Euro 1,338 thousand) refer to membership fees (Euro 509 thousand), donations (Euro 202
thousand), gifts (Euro 230 thousand) and others (Euro 398 thousand).
Financial charges deriving from operating receivables are mainly due to pro-soluto factoring charges.
30. Cost of goods and services
Euro/thousand 2011 2010
Purchases of materials from third parties 533,675 458,331
Changes in inventories (9,421) 18,494
Cost of purchases from related parties 3,279 733
Total cost of goods 527,533 477,558
Services rendered by third parties 329,312 425,666
Cost of rents and operating leases 6,472 6,386
Cost of purchases from related parties 39,360 33,233
Total cost of services 375,144 465,285
The cost of materials purchased amounted to Euro 533,675 thousand, an increase of Euro 75,344
thousand on the previous year. This change is attributable to procurement for new orders.

ANSALDO ENERGIA ANNUAL REPORT 2011
113
Costs for services fell (Euro 90,141 thousand), basically as a result of the completion of erection work on
plant engineering contracts. They include costs for services performed by the parent company in the
interests and on behalf of group companies, consistently with direction and coordination activities (Euro 705
thousand), costs for external work and various services (Euro 317,630 thousand), emoluments for directors
and statutory auditors (Euro 1,559 thousand), customs charges and transport costs (Euro 15,319
thousand), travel and transfers (Euro 16,864 thousand), outsourced services (Euro 9,045 thousand),
ordinary maintenance costs (Euro 5,443 thousand) and catering (Euro 3,286 thousand), net of cost
recoveries from third parties (Euro 2,955 thousand).
Costs of rent and operating leases amount to Euro 6,472 thousand and include rent for the Milan and Rome
offices and areas for storage and production (Euro 3,771 thousand), photocopier and IT equipment hire
(Euro 1,968 thousand), and other rents (Euro 733 thousand).
31. Personnel costs
Euro/thousand 2011 2010
Wages and salaries 143,095 142,958
Costs of stock option/grant plans 2,611 3,125
Social security contributions 40,051 36,219
Severance indemnity costs 128 92
Costs related to other defined-benefit plans 7,958 7,752
Redundancy incentives 5,068 3,625
Personnel cost recoveries 2,780 2,859
Other costs 564 607
196,695 191,519
The average workforce at 31 December 2011 numbered 2,937, compared with 2,935 at 31 December
2010.
Below is a breakdown of average workforce by category:
2011 2010 Chamges
Managers 73 74 (1)
Middle managers 250 251 (1)
White collars 1,594 1,603 (9)
Blue collars 984 1,014 (30)
Total 2,901 2,942 (41)
The cost (Euro 196,695 thousand) represents all liabilities for salaries and deferred remuneration, social
security contributions and severance pay maturing at 31 December 2011, and includes the cost of
personnel in permanent foreign establishments, amounting to Euro 12,772 thousand.
The Euro 5,176 thousand increase is attributable to a higher charge for incentive bonuses and a change in
the legislation regarding contributions, which has caused an increase in the amount of contributions and
redundancy incentives (Euro 1,443 thousand) because of the rise in the number and the different mix of
resources leaving the Company.
Cost recoveries on loans to personnel stood at Euro 2,780 thousand.
NOTES TO THE FINANCIAL STATEMENTS AT 31 DECEMBER 2011

32. Changes in inventories of finished goods, work in progress and semi-finished goods
Euro/thousand 2011 2010
Changes in inventories of finished goods,
work in progress and semi-finished goods (860) (34,092)
The change of Euro 33,232 thousand compared with the previous year is due basically to standard machines
in production for contracts in the process of personalisation and to the transition to production of alternators
for stock.
33. Depreciation, amortisation and impairment
Euro/thousand 2011 2010
Depreciation and amortisation:
intangible assets 1,985 1,353
property, plant and equipment 23,031 21,830
Write-downs:
operating receivables
25,016 23,183
Total depreciation, amortisation and impairment 25,016 23,183
The amortisation of fixed-life intangible assets (Euro 1,985 thousand) refers to development costs.
Depreciation of property, plant and equipment represents the residual working life of the various assets.
34. Capitalisation of internal construction costs
Increases in fixed assets as a result of internally generated assets refer to the cost of labour and materials
in connection with intangible assets (Euro 19 thousand) and with plant, property and equipment (Euro 6,542
thousand).
Euro/thousand 2011 2010
Personnel costs 6,542 6,435
Materials 19 129
6,561 6,564

35. Financial income and expense
ANSALDO ENERGIA ANNUAL REPORT 2011
115
Euro/thousand 2011 2010
Income Expense Net Income Expense Net
Dividends 1.900 1.900 1.000 1.000
Interest cost on defined-benefit plans
Discounting back of receivables,
1.022 (1.022) 943 (943)
liabilities and provisions – –
Interests 369 150 219 794 266 528
Commission
Premiums paid/collected on
497 (497) 298 (298)
forward instruments 64 64 254 23 231
Exchange rate differences 429 1.628 (1.199) 1.201 1.651 (450)
Equity investment value adjustments 917 8.539 (7.622) 1.210 26.274 (25.064)
Non-effective portion of forward coverage 192 (192) –
Other financial income and charges – –
Financial income/charges from related parties 3.713 59 3.654 2.533 49 2.484
7.392 12.087 (4.695) 6.992 29.504 (22.512)
Of 2011 dividends, Euro 1,900 thousand was collected from subsidiary Ansaldo Nucleare. Interest income
basically refers to interest on current accounts in foreign currencies and deposits (Euro 326 thousand) and
interest collected from defaulting countries through SACE (Euro 42 thousand).
The charges mainly relate to currency exchange and bank guarantee commissions (Euro 497 thousand), to
bank and other interest (Euro 90 thousand) and to interest expense payable to other lenders in connection
with research work (Euro 60 thousand).
Of adjustments to the value of equity investments, Euro 7,000 thousand refers to the writedown of the
investment in subsidiary company Ansaldo Thomassen and Euro 1,539 thousand to the alignment of the
investment to the shareholders’ equity of Ansaldo ESG.
36. Income taxes
Income tax expense can be broken down as follows:
Euro/thousand 2011 2010
Corporate income tax (I.Re.S.) 31,339 25,863
Regional business tax (IRAP) 9,357 8,438
Other taxes paid in foreign countries 1,902 1,318
Tax related to previous periods (499) (3,758)
Provisions for tax disputes
Lieu tax
5,121 6,650
Net deferred taxes payable (receivable) 6,111 13,193
53,331 51,704
The table below shows the reconciliation between the average effective tax rate and the applicable tax rate:
NOTES TO THE FINANCIAL STATEMENTS AT 31 DECEMBER 2011

Euro/thousand 2011 2010
Basis Tax Percentage Basis Tax Percentage
theoretical effective theoretical effective
IRES
Result before tax 37,060 10,192 27.50% 29.09% 117,082 32,198 27.50% 27.79%
Temporary differences of which 12,501 8,636 73.20% (38,221) 16,519 4.16%
- provisions 2,919
- forex conversion charges
- unpaid remuneration
payable to directors
(380) (66)
and statutory 133 130
- WIP assessment
Permanent differences
with no effect on
12,748 (41,204)
subsequent years of which: 69,490 19,084 25,219 (11,298)
- off-balance sheet position 95 1,024
- non-deductible taxes 350 395
- expenses for vehicles
- write-down/revaluation
452 406
of equity investment 8,539 25,063
- provisions 86,139
- others (26,085) (1,669)
IRAP 9,357 3.90% 25.25% 8,438 3.90% 7.21%
Value of production 41,755 335,138
Temporary differences
Permanent differences
with no effect on
(273,522) (38,285)
subsequent years 198,176 (80,498)
IRAP tax base 239,931 216,356
Net deferred taxation
Current taxation from
752 2,03% 1,637 1.40%
previous years (surplus) (498) (1.34%) (3,758) (3.21%)
Tax provisions (surplus)
Value assessment of previous
year tax losses
Lieu tax
Ires separate taxation
Effect of rate change
on deferred taxation
5,121 13.83% 6,650 5.68%
Others
Total effective taxes
688 2,85% 1,318 1,13%
recognised in income statement 53,332 31.40% 144.91% 51,704 31.40% 44.16%
The tax rate applicable to Ansaldo Energia has increased substantially as a result of provisions against
general items amounting to Euro 86,139 thousand and in relation to tax audit risks.

ANSALDO ENERGIA ANNUAL REPORT 2011
117
The income tax expense for the year, in addition to IRES and IRAP, also includes a provision for taxes matured
but not yet claimed by several foreign tax authorities amounting to Euro 5,121 thousand.
Deferred tax liabilities and the relative receivables and payables at 31 December 2011 derive from the
following temporary differences:
Euro/thousand Income statement Balance
Assets Liabilities Assets Liabilities
Write-down of WIP inventories (6,031) 5,768 1,297
Provisions for risks and charges (375) 4,177
Severance pay, pension funds and seniority bonuses 354 (26) 2,314 1,404
Others (823) (737) 1,051 167
Valuation Allowance (6,875) (763) 13,310 2,868
Net provisions for deferred taxes break down Euro 6,123 thousand IRES and Euro 752 thousand IRAP, while
deferred tax liabilities amount to Euro 763 IRES.
Of receivables/payables deriving from advance taxation, Euro 12,373 thousand was transferred to the
Finmeccanica tax consolidation scheme, as were deferred tax liabilities amounting to Euro 2,664 thousand.
Provision has been made for advance taxation on all temporary differences arising during the year as follows:
Euro/thousand
Advance tax liabilities attributable to:
Taxable amount Taxes
Provisions for work contract risks 18,369 5,768
Other taxed provisions for risks
Accounts receivable impairment reserve
211,846 58,478
TOTAL 230,215 64,246
Assets which will probably not be received 185,222 50,936
Provision for advance taxes 44,993 13,310
The provision for advance taxation was made after a careful assessment of the possibility of recovering said
assets in the future based on the business plans approved by the Board of Directors.
For these reasons, the theoretical future tax benefit of Euro 64,246 thousand (equal to the total taxes
advanced on all the temporary differences) was the subject of valuation allowance amounting to a total of
Euro 13,310 thousand, in consideration of the fact that the year of expiry of some tax-deductible temporary
differences is without limit or impossible to predict.
Deferred taxes and the relative receivables and payables at 31 December 2011, with a contra-item under
shareholders’ equity, are detailed below:
Euro/thousand 31 dicembre Utilizzi 31 dicembre
2010 2011
Deferred tax liabilities recognised
directly in equity for
cash flow hedge costs 61 18 43
NOTES TO THE FINANCIAL STATEMENTS AT 31 DECEMBER 2011

37. Cash flow from operating activities
Euro/thousand For the 12 months to 31 December
2011 2010
Net profit (loss) (16,272) 65,379
Depreciation, amortisation and impairment 25,016 23,183
Income taxes 53,332 51,704
Provisions 84,892 1,215
Cost of pension plans and stock grants 128 3,217
Losses (gains) on property sales
Value adjustments to equity investments carried at cost
Financial charges and income, net of value adjustments
(139) 25
to equity investments carried at cost 4,695 22,512
Other non monetary items 151,652 167,235
The changes in working capital, net of the effects of the acquisition and sale of consolidated companies and
translation differences, are as follows:
Euro/thousand 2011 2010
Inventories (23,462) 85,654
Contract work in progress and advances received (30,053) (38,194)
Trade receivables and payables 31,443 (11,230)
Changes in working capital (22,072) 36,230
The changes in other operating assets and liabilities, net of the effects of the acquisition and sale
ofcompanies and translation differences, are as follows:
Euro/thousand 2011 2010
Payment of severance indemnity and other defined-benefit plans (5,083) (4,190)
Changes in provisions for risks (16,769) (13,069)
Changes in other operating items (95,053) (24,395)
(116,905) (41,654)
38. Financial risk management
The Company is exposed to financial risks in connection with its operations, and particularly to risks of the
following types:
� market risks, regarding exposure to positions which generate interest (interest rate risk) and operations in
currency areas other than the functional currency (exchange risk);
� credit risks, deriving from ordinary commercial operations or financing activities.
The Company monitors each of the aforementioned risks individually, taking prompt action to minimize same,
also through the use of derivative hedging instruments.

ANSALDO ENERGIA ANNUAL REPORT 2011
119
The paragraphs below, also through the use of sensitivity analysis, examine the potential impact on results
reported deriving from hypothetical fluctuations in the reference parameters. In accordance with IFRS 7, the
analysis is based on simplified scenarios applied to actual figures for the reference periods and, due to their
nature, cannot be considered as indicative of the real effects of future changes in the reference parameters
if the equity and financial structure and the market conditions change, nor can they reflect the interrelations
existing between and complexity of reference markets.
Interest rate risk management
The Company, which has a stable, positive, financial position, is exposed to interest rate changes in
connection with the use of liquidity, which is for the most part used by parent company Finmeccanica S.p.A.
in accordance with Group policy.
Interest rate risks are measured by means of sensitivity analysis, in accordance with IFRS 7. If the reference
rates were 50 basis points higher (lower) at 31 December 2011, the result and shareholders’ equity would
have been Euro 1,919 thousand higher (lower).
Exchange risk management
On contract acquisitions, Company procedures require the hedging of all revenues in foreign currencies
subject to exchange risk. On the cost side, the company adopts the policy of stipulating procurement
contracts prevalently in Euros. Any purchases in local currencies are usually covered by a corresponding
amount of revenue in the same currency.
The Parent Company performs hedging operations in the form of forward currency purchases/sales. At the
end of 2011 the total domestic value in Euros of items covered by derivative instruments stood at Euro
2,438 thousand.
The sensitivity of exchange rate changes is not significant due to very low foreign currency exposure.
Credit risk management
The Company is exposed to credit risks in connection both with the counterparties of its commercial
operations, as well as by financing and investment activities, in addition to guarantees pledged on third party
payables or commitments.
In order to eliminate or minimise the credit risk deriving from commercial operations, and overseas
commercial operations in particular, the company adopts the policy of hedging the risk from the outset of the
commercial operation, carefully examining the conditions and payment methods to propose in bids, for
subsequent ratification in contracts of sale.
Specifically, according to the contract amount, the type of customer and the importing country, the necessary
precautions are taken to limit the credit risk both in terms of payment and the financial instruments planned,
such as stand-by L/C or irrevocable and confirmed letter of credit. In cases in which this is not possible and
if the country / customer is particularly at risk, the opportunity is assessed of applying for adequate
insurance coverage through Export Credit Agencies such as SACE or through international banks for
contracts for which supply financing is required.
To better explain the concentration and ageing of receivables recognised in the financial statements, the
table below has been prepared:
NOTES TO THE FINANCIAL STATEMENTS AT 31 DECEMBER 2011

At 12.312011 Other customers
Euro/thousand Europe America Other Total
- Guarantee withholdings 4,717 4,717
- Unexpired receivables 85,985 1,734 53,104 140,823
- Receivables expired for less than 6 months 18,256 2,127 45,921 66,304
- Receivables expired for at least 1 year 1,842 16,228 18,070
- Receivables expired for between 1 and 5 years 6,496 2,919 5,124 14,539
- Crediti scaduti da più di 5 anni
112,579 6,780 125,094 244,453
At 12.31.2010 Other customers
Euro/thousand Europa America Other Total
- Guarantee withholdings 4,035 4,035
- Unexpired receivables 87,615 4,026 40,385 132,026
- Receivables expired for less than 6 months 48,485 126 9,121 57,732
- Receivables expired for at least 1 year 18,419 245 5,050 23,714
- Receivables expired for between 1 and 5 years 4,480 2,876 5,704 13,060
- Crediti scaduti da più di 5 anni
158,999 7,273 64,295 230,567
Liquidity risk
In consideration of the stable, positive, financial position of the company, there is no liquidity risk.
Derivates
The table below gives the fair value of the various derivatives in the portfolio:
Euro/thousand Fair Value at Fair Value at
31 December 2011 31 December 2010
Assets
Currency forward/swap/option
Cash flow hedge 79
Liabilities
Currency forward/swap/option
Fair value hedge 123

39. Key management personnel compensation
ANSALDO ENERGIA ANNUAL REPORT 2011
121
The compensation due to persons who have the power of and the responsibility for planning, directing and
controlling the company, including executive Directors, is as follows:
Euro/thousand 2011 2010
Wages and salaries 8.500 3.448
Post termination benefits 90
Other long term benefits
Severance indemnity costs 960
Stock grant plans 394 133
Total 9.944 3.581
The fees due to Directors amount to Euro 2,280 thousand in 2011. The fees due to Statutory Auditors
stand at Euro 70 thousand.
These fees include emoluments and any other sum paid as compensation and social security for the
exercise of the office of Director or Statutory Auditor of the company.
The parent company Finmeccanica S.p.A. has established a stock grant plan under which shares in
Finmeccanica S.p.A. are granted to Group employees and consultants if targets are achieved, in order to
provide incentives and encourage loyalty.
At 31 December 2011 the stock grant plan lapsed.
for the BOARD OF DIRECTORS
THE CHAIRMAN
Francesco Giuliani
NOTES TO THE FINANCIAL STATEMENTS AT 31 DECEMBER 2011

Detailed schedules

ANSALDO ENERGIA ANNUAL REPORT 2011
123

Schedule 1 - Equity investments
Euro/thousand 12.31.2010
Costs Write-down/ Book
Disposals value
Equity investments in subsidiary companies
Ansaldo Energy Inc. 1 1
Ansaldo ESG AG 6,743 (2,314) 4,429
Ansaldo Fuel Cells S.p.A. 39,541 (39,541) –
Ansaldo Nucleare S.p.A. 107 107
A S P L interamente svalutata –
Ansaldo Thomassen BV 11,953 11,953
Yeni Aen Insaat Anonim Sirketi 49 49
58,702 (42,163) 16,539
Equity investments in associated companies
Polaris S.r.l. 48 48
Turbo Energy S.r.l. 1,073 (1,073) –
1,121 (1,073) 48
Consortia
CHIARA 16 16
CISA 68 68
CORIBA 3 3
CREATE 5 5
CRIS 1,165 1,165
ENERGIE RINNOVABILI 10 10
ENERGIE RINNOVABILI 1 –
PROCOMP 7 (7) –
SIRE 25 25
1,299 (7) 1,292
Other ventures
Euroimpresa Legnano 155 155
Libian Italian Joint Co. 9 9
Newco 15 15
Polo Innovazione Energia Nucleare –
Presenzano Energia 12 12
Santa Radegonda –
SIET S.p.A. 107 107
SIIT Distretto Tecnologico Ligure 14 14
SOGEA 9 9
321 321
TOTAL EQUITY INVESTMENTS 61,443 (43,243) 18,200

ANSALDO ENERGIA ANNUAL REPORT 2011
125
Acquisitions/ Disposals (Write-downs Reclassific- Cost
12.31.2011
Write-downs/ Book
Capitalisations./ Revaluations ation Disposals value
1 1
(1,539) 6,743 (3,853) 2,890
39,541 (39,541) –
107 107
–
(7,000) 11,953 (7,000) 4,953
49 49
– – (8,539) – 58,394 (50,394) 8,000
48 48
941 2,014 (1,073) 941
941 – – – 2,062 (1,073) 989
16 16
68 68
3 3
5 5
1,165 1,165
10 10
3 3 3
7 (7) –
25 25
3 – – – 1,302 (7) 1,295
155 155
9 9
(15) 15 (15) –
1 1 1
12 12
6 6 6
107 107
14 14
9 9
7 – (15) – 328 (15) 313
951 – (8,554) – 62,086 (51,489) 10,597
DETAILED SCHEDULES

Schedule 2 - List of equity investments
Referemce Share
Name Head office financial capital
statements
Equity investments in subsidiary companies
Ansaldo Energy Inc. USA 12.31.2011 1
Ansaldo ESG AG Switzerland 12.31.2011 338
Ansaldo Nucleare S.p.A. Genoa 12.31.2011 500
Ansaldo Thomassen B.V. The Netherlands 12.31.2011 91
Asia Power Project Private Ltd India 12.31.2011 46
Yeni Aen Isaat Anonim Sirketi Turchia 12.31.2011 41
Equity investments in associated companies
Polaris S.r.l.
Turbo Energy S.r.l.
Equity investments in jointly controlled companies
Consortia
CHIARA
CISA
CORIBA
CREATE
CRIS
ENERGIE RINNOVABILI
ENERGIE RINNOVABILI 1
SIRE
Other ventures
Euroimpresa Legnano
Libian Italian Joint Co.
Polo Innovazione Energia Nucleare
Presenzano Energia
Santa Radegonda
SIET S.p.A.
SIIT Distretto Tecnologico Ligure
SOGEA
TOTAL EQUITY INVESTMENTS

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127
Shareholders’ Profit Ownership Net equity Carrying
Currency equity (loss) % in financial value
statements
USD 109 0 100 109 1
FRSV 2,971 (37) 100 2,971 2,890
EUR 997 507 100 997 107
EUR 587 (1,191) 100 587 4,953
RUPIE (8,106) 248 100 (8,106) –
LIRA TURCA 1,448 1,470 99,96 1,447 49
8,000
49 48
16,8 941
989
50 16
66 68
5 3
16,23 5
48,4 1,165
51 10
15 3
29,41 25
1,295
9,917 155
0,33 9
1
100 12
19 6
3,58 107
2,3 14
0,1 9
313
10,597
DETAILED SCHEDULES

Schedule 3 - Non current receivables
Euro/thousand 12.31.2010 12.31.2011
Residual Impairment Carrying Outpayments Refunds Residual Impairment Carrying
nominal value nominal value
value value
Non current
financial receivables – 26,212 26,212 26,212
Other receivables 373 373 19 13 379 379
Schedule 4 - Assets by due date
Euro/thousand 12.31.2011 12.31.2010
Amounts falling due Amounts falling due
between 2 beyond Total between 2 beyond Total
and 5 years 5 years and 5 years 5 years
Receivables
Financial receivables – –
Other receivables 26,591 26,591 373 373
26,591 – 26,591 373 – 373
Advance tax
receivables 937 937 2,547 2,547
Total non current assets 27,528 – 27,528 2,920 – 2,920
Trade receivables
373 – 373 26,321 13 26,591 – 26,591
27,528 – 27,528 2,920 – 2,920

Schedule 5 - Assets in foreign currencies
31.12.2011 31.12.2010
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129
In foreign In Euros Total In foreign In Euros Total
currency currency
Receivables
Financial receivables 26,212 26,212 –
Other receivables 379 379 373 373
26,212 379 26,591 – 373 373
Other non current assets 85,356 85,356 2,547 2,547
Total non current assets 26,212 85,735 111,947 – 2,920 2,920
Current receivables
from related parties
Financial receivables 357,180 357,180 489,658 489,658
Trade receivables 52,274 52,274 4,166 4,166
Other receivables 25,867 25,867 24,530 24,530
– 435,321 435,321 – 518,354 518,354
Trade receivables 22,901 221,552 244,453 22,860 207,707 230,567
Tax receivables – 3,952 3,952
Derivatives – 79 79
Other assets 45,734 45,734 629 24,054 24,683
Cash and cash equivalents 24,705 3,996 28,701 12,361 4,470 16,831
Total current assets 47,606 706,603 754,209 35,929 758,537 794,466
73,818 792,338 866,156 35,929 761,457 797,386
DETAILED SCHEDULES

Schedule 6 - Assets by geographical area
Euro/thousand 12.31.2011 12.31.2010
Italy Rest North Rest of Total Italy Rest North Rest of Total
of Europe America world of Europe America world
Receivables
Financial receivables 26,212 26,212
Other receivables 379 379 373 373
379 – – 26,212 26,591 373 – – – 373
Receivables for
advance taxes
Other non current
937 937 2,547 2,547
assets
Totale non current
84,419 84,419 –
assets 85,735 – – 26,212 111,947 2,920 – – – 2,920
Current receivables
from related parties
Financial receivables 312,574 36,606 8,000 357,180 450,867 30,791 8,000 489,658
Trade receivables 44,502 7,654 118 52,274 3,436 694 36 4,166
Other receivables 25,867 25,867 24,530 24,530
382,943 44,260 – 8,118 435,321 478,833 31,485 – 8,036 518,354
Trade receivables 100,393 28,810 115,250 244,453 109,437 49,562 7,273 64,295 230,567
Tax receivables – 3,952 3,952
Derivatives – 79 79
Other assets
Total current
45,734 45,734 24,054 629 24,683
assets 529,070 73,070 – 123,368 725,508 616,355 81,047 7,273 72,960 777,635
614,805 73,070 – 149,580 837,455 619,275 81,047 7,273 72,960 780,555

Schedule 7- Reserves and portion available for allocation
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131
Euro/thousand Summary of uses
Natura/descrizione Importo Possibilità di Quota per copertura per altre
utilizzazione disponibile perdite ragioni
Share capital (*) 11,967 B C 11,967
Profit reserves:
Legal reserve 2,393 B 2,393
Extrordinary reserve
Statutory reserve
Fair value assessment reserve
Cash flow hedge reserve (155) B (155)
Reserve for assets available for sale
Reserve for stock option/grant plans 3,388 3,388
Reserve for actuarial gains (losses)
recognised in equity 1,705 B 1,705
Deferred taxation referring
to shareholders’ equity items (43) B (43)
Retained earnings 10,710 ABC 10,710
Total 17,998 17,998
Portion not available for allocation
Remaining portion available for allocation 17,998
Key: (*) net of treasury shares – A for capital increase; B to settle losses; C to allocate to shareholders
Schedule 8 - Liabilities by due date
Euro/thousand 12.31.2011 12.31.2010
Amounts falling due Amounts falling due
between 2 beyond Total between 2 beyond Total
and 5 years 5 years and 5 years 5 years
Non current financial payables
Other non current liabilities 5,213 5,213 2,456 2,456
5,213 – 5,213 2,456 – 2,456
Total non current liabilities 5,213 – 5,213 2,456 – 2,456
DETAILED SCHEDULES

Schedule 9 - Liabilities in foreign currency
Euro/thousand 12.31.2011 12.31.2010
In foreign In Euros Total In foreign In Euros Total
currency currency
Non current
financial payables – –
Other
non current liabilities 5,213 5,213 2,456 2,456
Total
non current liabilities – 5,213 5,213 – 2,456 2,456
Current payables
to related parties
Financial payables – 3,855 3,855
Trade payables 207 23,983 24,190 13,432 13,432
Other payables 18,096 18,096 3,427 3,427
207 42,079 42,286 20,714 20,714
Trade payables 26,867 351,594 378,461 21,829 347,922 369,751
Financial payables 2,089 167 2,256 1,270 177 1,447
Tax payables 957 957 –
Derivatives 123 123 –
Other liabilities 1,200 57,679 58,879 53,689 53,689
Total current liabilities 30,486 452,476 482,962 23,099 422,502 445,601

Schedule 10 - Liabilities by geographical area
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133
Euro/thousand 12.31.2011 12.31.2010
Italy Rest North Rest of Total Italy Rest North Rest of Total
of Europe America world of Europe America world
Non current
financial payables
Other non current 5,213 5,213 2,456 2,456
Total non current
liabilities 5,213 – – – 5,213 2,456 – – – 2,456
Current payables to related parties
Financial payables – 3,840 15 3,855
Trade payables 23,336 841 13 24,190 12,141 932 359 13,432
Other payables 18,096 18,096 3,427 3,427
41,432 841 – 13 42,286 19,408 947 – 359 20,714
Trade payables 325,291 27,251 2,023 23,896 378,461 295,242 62,617 944 10,948 369,751
Financial payables 167 2,089 2,256 1,447 1,447
Tax payables 957 957 –
Derivatives 123 123 –
Other payables 57,679 1,200 58,879 53,689 53,689
Total current
liabilities 425,649 28,092 2,023 27,198 482,962 369,786 63,564 944 11,307 445,601
430,862 28,092 2,023 27,198 488,175 372,242 63,564 944 11,307 448,057
Schedule 11 - Engagements pursuant to article 149 of the Issuer Rules
Type of engagement Audit firm/ Consideration for year Total
other entity engaged to perform engagement
Auditing services PRICEWATERHOUSECOOPERS 369 369
Tax consulting services DELOITTE 135 135
PRICEWATERHOUSECOOPERS 70 70
Sundry consulting services PRICEWATERHOUSECOOPERS 22 22
ERNST YOUNG 104 104
DELOITTE 160 160
860
DETAILED SCHEDULES

Schedule 12 – Highlights of the financial statements most
recently approved by the company exercising direction and
coordination activities (art. 2497-bis, Italian Civil Code))
FINMECCANICA SPA
BALANCE SHEET
ASSETS
euro thousand
NON CURRENT ASSETS 10.383.472
CURRENT ASSETS 3.376.530
NON CURRENT ASSETS HELD FOR SALE –
TOTAL ASSETS 13.760.002
LIABILITIES
SHAREHOLDERS’ EQUITY:
- Share capital 2.516.767
- Reserves and retained earnings 3.816.041
- Profit for the year 236.829
6.569.637
NON CURRENT LIABILITIES 3.464.384
CURRENT LIABILITIES
LIABILITIES DIRECTLY RELATED TO ASSETS
3.725.981
HELD FOR SALE –
TOTAL LIABILITIES 13.760.002
INCOME STATEMENT
REVENUE 99.706
COSTS (190.683)
FINANCIAL INCOME AND CHARGES 269.448
INCOME TAX FOR THE YEAR 58.358
PROFIT (LOSS) IN CONNECTION WITH ASSETS SOLD –
PROFIT FOR THE YEAR 236.829
THE CONSOLIDATED FINANCIAL STATEMENTS ARE PREPARED BY FINMECCANICA S.P.A.

FIRST RESERVE FUND XII, L.P.
STATEMENT OF ASSETS, LIABILITIES AND PARTNERS’ CAPITAL
(Income Tax Basis) - December 31, 2010
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135
U.S. Dollars
ASSETS
INVESTMENTS 2,307,404,139
CASH AND CASH EQUIVALENTS 10,166,352
PREPAID EXPENSE 315,356
OTHER ASSETS
ORGANIZATIONAL COSTS, NET OF
12,868,589
ACCUMULATED AMORTIZATION OF $ 480,715 2,678,498
SYNDICATION COSTS 5,794,849
TOTAL ASSETS 2,339,227,783
LIABILITIES AND PARTNERS’ CAPITAL
LIABILITIES
Accounts payable and accrued expenses 1,186,327
TOTAL LIABILITIES 1,186,327
PARTNERS’ CAPITAL
General partner 38,023,994
Limited partners 2,300,017,462
TOTAL PARTNERS’ CAPITAL 2,338,041,456
TOTAL LIABILITIES AND PARTNERS’ CAPITAL 2,339,227,783
DETAILED SCHEDULES

Report of the Board of
Statutory Auditors
art. 2429 - 2, Italian Civil Code

Shareholders,
the Board of Statutory Auditors has carried on its
work in compliance with article 2403, Italian Civil
Code, and in line with the principles of conduct for
statutory auditors recommended by the Italian
Accounting Profession (Consigli Nazionali dei
Dottori Commercialisti e dei Ragionieri).
Pursuant to article 2409 bis, Italian Civil Code,
supervision of the good keeping of the accounting
records of your Company and their results, and
likewise the alignment of the accounting records
with financial statements, is the responsibility of
the Independent Auditors, PriceWaterhouseCoopers
S.p.A.; the Board of Statutory Auditors, therefore,
makes observations on the financial statements
and assesses compliance with principles of good
administration and the adequacy of the internal
control system.
That said, the Board of Statutory Auditors has
examined the draft Financial Statements at 31
December 2011, prepared by the Directors and
given by them to the Board of Statutory Auditors,
together with the management report, which
describes in detail the management events
recorded by your Company and its investee
companies.
Specifically, the Board of Statutory Auditors has
verified that these Financial Statements have been
prepared in accordance with IAS/IFRS international
accounting standards, as issued by the
International Accounting Standard Board and
endorsed by the European Commission, in
compliance with EC Regulation no. 1606/2002
issued by the European Parliament and ratified by
Italian Law with Legislative Decree no. 38, 28
February 2005, and supplemented by the relative
interpretations issued by the International
Accounting Standard Board.
The Board of Statutory Auditors has undertaken the
supervisory activities required by Law, in
observance of the “Principles of Conduct of the
Board of Statutory Auditors” recommended by the
Italian Accounting Profession (Consigli Nazionali dei
Dottori Commercialisti e dei Ragionieri).
In detail:
ANSALDO ENERGIA ANNUAL REPORT 2011
137
– it has monitored compliance with the Law, the
Bylaws and principles of good administration;
– it has attended the Board of Directors’ and
Shareholders’ meetings, as indicated in the
appropriate minutes. During the meetings of the
Board of Directors it verified that same were
conducted in compliance with statutory, legal and
regulatory rules and that the operations
performed by the Directors were not obviously
imprudent, risky, in potential conflict of interest
or, in any case, in contrast with the resolutions of
the General Meeting of Shareholders. It also
verified that the decisions taken appeared to be
in accordance with the principles of prudence
and good administration and no irregularities
were found in the management of the company;
– it confirms, with regard to good administration,
that the Company is managed competently and
in accordance with the provisions of the Law and
the Bylaws, that the equity, income and financial
information provided during the year is clear and
reliable, that the Board documents and meetings
demonstrate that the Directors have always
operated within the framework of the powers and
authority conferred on or granted to them;
– it has verified that transactions between group
companies and with related parties have been
conducted in the framework of normal operating
relations and at arm’s length;
– it obtained information from the Directors and
managers of the various company functions
about: the general performance trend and
foreseeable outlook for both your Company and
its subsidiaries; about the organisational
structure of the Company, which appear to reflect
its size and complexity; the adequacy of the
system of procedures implemented by your
Company pursuant to Legislative Decree
231/2001 and, in particular, the adequacy of the
Organisation Model and the activities performed
by the Supervisory Body; and finally the internal
control and reporting system and Internal
Auditing;
– it met the Independent Auditors on various
occasions for a reciprocal exchange of
information and no facts requiring special
mention emerged from these meetings;
REPORT OF THE BOARD OF STATUTORY AUDITORS

– it assessed and monitored the adequacy of the
administration and accounting system, as well as
the reliability of the latter to provide a true
picture of management events, by obtaining
information from those responsible for the
functions involved, from the person responsible
for accounting control and by examining company
documents; it has no particular comments to
make in this regard;
– no statements or representations have been
received by the Board of Statutory Auditors
pursuant to article 2408, Italian civil code;
– in the framework of the exchanges of information
required by the Law, the Board of Statutory
Auditors has not received any significant
observations from the Boards of Statutory
Auditors of Subsidiary companies.
The Board of Statutory Auditors has examined the
financial statements at 31 December 2011, which
can be summarised as follows:
Shareholders’ equity Euro
ANon current assets 278,820,830
Current assets 1,125,427,200
Total assets 1,404,248,030
Share capital and reserves 29,965,086
Non current liabilities 281,728,482
Current liabilities 1,108,827,078
1,420,520,646
Loss for the year -16,272,616
Total liabilities and shareholders’ equity 1,404,248,030
Income statement results
Revenue 1,231,970,982
EBIT 41,755,877
Net result -16,272,616
The Board of Statutory Auditors has supervised the
general organisation of the aforementioned
Financial Statements and the legal compliance of
their form and structure and has no comments to
make in this regard.
So far as the Board of Statutory Auditors is aware,
in the preparation of the financial statements, the
Directors have not departed from the Law pursuant
to article 2423, section 4, Italian Civil Code.
In consideration of the above, the Board of
Statutory Auditors, pursuant to article 2429,
section 2, Italian Civil Code, in its sphere of
competence and based on the information
gathered, as there are no causes of impediment,
believes that the Financial Statements at 31
December 2011, as prepared by the Board of
Directors, deserve your approval.
Genova, 2 march 2012
THE BOARD OF STATUTORY AUDITORS
Pietro Mastrapasqua
Armando Cascio
Salvatore Randazzo

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139
REPORT OF THE BOARD OF STATUTORY AUDITORS

ANSALDO ENERGIA ANNUAL REPORT 2011
141
INDEPENDENT AUDITORS’ REPORT

Edited by Ansaldo Energia
May 2012
Graphic design: Petergraf
Print: Microart - Recco (Genoa - Italy)