AC T I V I T Y R E P O R T 2 0 15 / 16

CREATING LONG TERM

VALUE
 1 FA I V E LE Y TR A N S PO R T  ACTI V IT Y R EPO R T 2 015/16

IN MOTION
2 / New multi-product
manufacturing site
3 / Increase in Indian footprint
4 / Faiveley NeoFlexx ® Disc
in passenger operation
Faiveley Transport is a world leader
5 / Combination with Wabtec
to create a global rail leader in products and engineering services
6 / New platform orders
signal regained customer confidence
7 / Deployment of our Values
for the rail industry.
8 / Key role in Paris metro
We offer high added-value technical solutions
to help our customers build and operate
DELIVERING
PERFORMANCE trains that are safe, reliable and cost-efficient
10 / CEO’s message throughout their life cycle. Our global footprint,
12 / Wabtec combination
14 / Our Executive Committee
15 / Our financial performance
with nearly 6,000 employees in 24 countries,
16 / Our QHSE performance
ensures we are close to our customers,
and to major rail markets.
CREATING
VALUE As the rail industry evolves, we are moving
20 / Shape
21 / Execute forward: developing world-class production
22 / Create
23 / Develop facilities, innovating to create highly ­
24 / Grow talent
efficient products, and pursuing a combination
with Wabtec Corporation. Our aim:
STRENGHTENING
OUR BUSINESS to secure our long-term leadership position
26 / Access & Mobility
28 / Brakes & Safety
and in doing so, provide the best possible
30 / Energy & Comfort
32 / Services
components, systems and services
34 / China
36 / A worldwide partner to our customers. 
 3 FA I V E LE Y TR A N S PO R T  ACTI V IT Y R EPO R T 2 015/16

IN MOTION E

P
SHA
INCREASE IN INDIAN
FOOTPRINT
In India, one of our four key markets,
we extended the capacity of our site
in Hosur, near Bangalore.
This site utilizes our new ERP system
and has been FWE certified: it will
allow us to offer our full range of systems
and services to our Indian customers
and abroad. In 2015-16, we began
manufacturing doors at the site, and
increased our HVAC capacity. 

E
P
SHA

NEW MULTI-
PRODUCT
MANUFACTURING TE

U
EX EC
SITE IN THE CZECH FWE certification for seven sites

REPUBLIC The Faiveley Worldwide

Excellence (FWE) program was
launched two years ago to
operating model and best
practices in areas such as quality
and risk management become
alongside external certifications
such as ISO 9001. To date,
seven sites have been certified.
standardize the way we operate FWE certified. The certification They include sites in Germany,
In 2016, Faiveley Transport opened a 20,000 m2 state-of-the-art industrial facility in Plzen, Czech
across the organization. Sites is intended as a demonstration China, France, India and the
Republic. It will be used to manufacture pantographs, power collectors and auxiliary inverters as
that implement the program’s of excellence, and used Czech Republic. 
well as to assemble buffers, couplers, and brake and door components. With improved logistics,
production flow and working environment, the facility is designed to provide the highest standards
of quality to our customers, and of safety to our employees. 
 4 I N M OTI O N 5 FA I V E LE Y TR A N S PO R T  ACTI V IT Y R EPO R T 2 015/16

TE
A
CRE

FAIVELEY
NEOFLEXX® DISC
IN PASSENGER
OPERATION
In August 2015, we began field trials
with Swiss Federal Railways (SBB)
of the Faiveley NeoFlexx® Disc.
-20%
REDUCTION
IN WEAR COMPARED
The innovative brake disc uses patented TO A STANDARD
manufacturing technology to provide BRAKE DISC
customers with flexibility in design and
dimensions and faster time to market.
Superior reliability and low weight also
help optimize total cost of ownership.
We are now delivering the disc to another
European operator, and laying the
groundwork for serial manufacturing
at our plant in Witten, Germany. We
expect to receive our first commercial
orders for the disc in 2016-17.  COMBINATION WITH
WABTEC TO CREATE A
GLOBAL RAIL LEADER
A proposed combination with Wabtec Corporation reached a number of milestones, including
agreement between the two parties and approval by our Works Council. Review by competition
authorities in Europe and the United States is underway. The combination would secure the
long-term future of Faiveley Transport by capitalizing on the complementary strengths of the two
companies to create a global player with combined sales of around €4 billion. The transaction is
expected to close end-2016. 
© SBB CFF FFS
 6 I N M OTI O N
P
O
L
DE VE
NEW PLATFORM ORDERS
SIGNAL REGAINED
CUSTOMER CONFIDENCE
2015-16 was a bumper year for orders on new platforms, reflecting our customers’ renewed faith
in our ability to deliver high quality, reliable products.
Contracts on our customers’ new
platforms are extremely important to
Faiveley Transport. This is because new
platforms are highly likely to be sold in
several countries, thereby generating
future opportunities for the Group. In
2015-16, we won new platform contracts
with four major customers: Alstom,
Siemens, Bombardier and CRRC.
© ALSTOM DESIGN & STYLING
 In Paris, we are supplying HVAC and
braking systems for Alstom’s MP14
Paris metro trains. Contracts for the first
35 trains amount to nearly €15 million:
more than 180 additional trains could
be delivered over a 15-year period. Our
energy-efficient HVAC systems and
efficient brake systems contribute to
the project’s objectives of low energy
consumption, high performance and
ease of maintenance.
© SIEMENS
 In Germany, we will supply HVAC
and braking systems for the 82 new
Rhine-Ruhr Express (RRX) trains
to be built by Siemens. The contract,
which totals over €25 million, includes
overhaul of brake parts for 10 years.
Specific technical solutions were
designed to support Siemens in
delivering unrivalled levels of reliability,
comfort and sustainability.
© BOMBARDIER
 In Brussels, we are supplying a wide
range of products to Bombardier for
their M7 double-decker train cars. The
contracts*, which cover 355 cars, are
7 FA I V E LE Y TR A N S PO R T  ACTI V IT Y R EPO R T 2 015/16
Collaborative
Reliable
Passionate
worth more than €60 million and include
We are
braking systems, couplers, cabin HVAC
and auxiliary converters. Bombardier has
options to build an additional 710 cars.
Faiveley
Transport.
© CRRC
 In China, we are working with the
recently-formed giant CRRC, supplying LE
NT
G ROW TA
HVAC systems for MBTA’s fleet renewal
metro project in Boston. The contract,
which totals €15 million, reflects CRRC’s
confidence that Faiveley Transport is the
right supplier to provide support in its
first project in the United States. 
DEPLOYMENT
*Contracts to supply auxiliar y conver ters
were signed during the 2015-2016 financial year.
OF OUR VALUES
The contracts for all other elements were
booked in the first quar ter of 2016-17.
2015-16 was the year in which our 5,950 people fully adhered to our values:
Collaborative, Reliable and Passionate. Having worked with our employees to define
4
these values in 2014-15, this year was about communication. We translated the values
into 21 languages and explained them via information booklets and induction courses
NEW for new employees. We also included them in our performance management system.
PLATFORMS The aim: to reinforce a shared culture, and ensure our people feel part of One Faiveley. 
 8 I N M OTI O N

P
O
L
DE VE

KEY ROLE IN P

PARIS METRO
O

L
DE VE
Strong growth
in Services

DELIVERING
PERFORMANCE
Our Services Division recorded organic
growth of 8.8% (13.4% at constant
currencies) during 2015-16.
© RATP

This strong growth was the result of

record order volumes the previous year,
particularly on large overhaul programs
Faiveley Transport will play a key role in Faiveley Transport saw solid sales in 2015-16, as the benefits
in the UK, Australia and the US.
the automation of line 4 of the Paris metro, of our Creating Value 2018 strategic plan started to be felt
following RATP’s award of a €75 million contract
It took us one step closer to our across the business. Our clear focus on both quality and
to provide platform screen doors for 29 existing
Creating Value 2018 goal to rebalance employee safety contributed to our customers’ renewed
and new stations. Working in consortium with
our sales from Original Equipment confidence. This, in turn, resulted in significant orders during
Eiffage Energie Ferroviaire, we will develop,
towards Services: the Services Division
supply and install semi-full-height platform the year, including contracts on new customer platforms.
now accounts for 45% of our total
edge barriers at 27 existing stations and 2 new Looking ahead, we will continue to execute our strategic
sales. Strong growth also contributed
ones. To meet RATP’s requirements for zero plan, led by our reinforced senior management team, as we
to our improved profitability*
service interruption and maximum safety during
as after-sales enjoy higher margins work towards the proposed combination with Wabtec. 
installation and testing, we will pioneer a new
than Original Equipment. 
modular fitting system. Full automation of the line,
which is expected to deliver major improvements
in passenger service, is scheduled for 2022. 
*Adjusted Group operating profit,
excluding restructuring costs and costs related
to the planned combination with Wabtec.
10 D E LI V E R I N G PE R FO R M A N C E
STÉPHANE RAMBAUD-MEASSON, CHIEF EXECUTIVE OFFICER OF
FAIVELEY TRANSPORT AND CHAIRMAN OF THE MANAGEMENT
BOARD, DISCUSSES HIGHLIGHTS OF 2015-16, INCLUDING PROGRESS
ON THE CREATING VALUE 2018 STRATEGIC PLAN.
 How would you characterize
the year?
2015-16 was a very positive year for Faiveley
Transport, and one of intense change. It was
the first year of our Creating Value 2018
strategic plan, in which we successfully
achieved major milestones. It was also a year
of transition as we laid the groundwork for
a proposed combination with Wabtec. We
regained our customers’ confidence, winning
a number of landmark projects, which I see
as testimony of our growing reputation for
strong execution. And we generated strong
financial results in terms of sales, profitability
and cash flow.
 Last year you unveiled the Creating
Value 2018 strategic plan. What
were the key achievements in the
first year?
One of the key objectives of Creating Value
is to create a more efficient industrial
DELIVERING
ON OUR
PROMISES
11
footprint and cost base in order to improve
our performance, and our service to
customers. In January we opened our new
industrial site in Plzen in the Czech Republic.
A multi-product facility, it increases our
competitiveness in Europe.
In India, one of our four key markets,
we extended the capacity and capabilities
of our Hosur site, near Bangalore, to cover
our full product portfolio and we invested
to master the special processes that are
unique to our industry. The site is booming,
and turnover has increased sharply,
demonstrating the logic of our investment.
In technology, we invested in a number of
areas. I would like to highlight Faiveley
NeoFlexx® Disc, whose innovative production
process brings significant benefits to
customers, including shorter time to market,
reduced weight and lower lifecycle costs.
Finally, I would like to stress our solid organic
growth, driven by the performance of our
Services business, which is a key driver
of our profitability.
 What were the year’s highlights
in terms of contracts?
Our most important wins are those where we
have gained positions on our customers’ new
platforms. This is because new platforms
have a high probability of being sold
elsewhere, making us well positioned to win
more projects going forward.
For example, we won a landmark project with
Siemens for the new Rhine-Ruhr Express
trains, the largest regional project in Germany
last year. Bombardier awarded us contracts
for several products for their M7 commuter
train in Belgium, one of the largest European
platforms today. And we won contracts on
Alstom’s new Metropolis platform.
We also won projects in Australia, India and
the Americas demonstrating our strength in
major markets outside Europe.
FA I V E LE Y TR A N S PO R T  ACTI V IT Y R EPO R T 2 015/16
 Why is the proposed combination
with Wabtec attractive?
The proposed combination with Wabtec would
be an excellent strategic move for Faiveley
Transport. The complementary nature of our
activities is striking, both in terms of product
range and geographic coverage. This
transaction would allow us to pursue our aim of
building a global leader in rail equipment and
services in the Passenger Transit field.
 What is the current state of the rail
market in Faiveley Transport’s key
geographies?
Year on year the rail market is growing in line
with UNIFE* projections. This steady growth
masks some differences depending on product,
segment and geography.
We have already started to see a downturn in
freight in the United States, as well as in
mining-dominated countries, but this is largely
offset by overall growth in the transit market.
Europe has been slow during the last couple of
years, but we see it stabilizing, with growth
coming from northern Europe.
China remains a strong market, driven by the
expansion of the high-speed rail network, a large
number of metro projects, and the emergence of
Light Rail Vehicles, albeit with lower growth than
in previous years. Finally, India is booming,
driven by a large number of metro projects and a
fast-paced program of modernization of Indian
Railways. It is a market where we enjoy a strong
reputation and position.
 What progress have you made
on customer satisfaction and
operational excellence?
We have demonstrated to our customers
that we are reliable and have enhanced our
control over the entire project value chain,
putting in place strong governance of our
projects. We have put quality at the top of the
agenda, and the improvements we have made
are visible in the indicators we systematically
monitor. These include non-conformity reports
(NCRs), a measure on which I believe we
outperform the industry today.
 What were the principal reasons
behind your increase in profitability
in 2015-16?
Our contract margin has improved, driven
by three factors. The first is improved project
execution, which has resulted in far fewer
project margin deteriorations. The second is
our mix between services and original
equipment, with higher-margin services now
accounting for 45% of total sales.
We also enjoyed higher sales volumes.
This is important as we had taken the
decision to increase our cost structure
to gain better control. While we booked
one-off costs relating to restructuring and
the Wabtec transaction, our adjusted Group
operating profit was slightly above our
market guidance.
 What are your priorities
in 2016-17?
Looking ahead to 2016-17, there are three main
priorities. We will focus on closing the Wabtec
deal, completing the regulatory process. We will
work hard to deliver our full year guidance to
the market. And we will execute our three-year
strategic plan.
We have delivered the first visible milestones
of our transformation, but Creating Value 2018
is a mid-term change program. We have agreed
with Wabtec that we will pursue the plan after
closing, incorporating best practices where
appropriate. In this way, we will position the
combined company for the future, and serve
our customers even better. 
*UNIFE: Union des Industries Ferroviaires Européennes,
a professional association for the railway supply industry.
12 D E LI V E R I N G PE R FO R M A N C E 13 FA I V E LE Y TR A N S PO R T  ACTI V IT Y R EPO R T 2 015/16

WABTEC
Two market leaders with complementary strengths

COMBINATION: WABTEC FAIVELEY TRANSPORT

CREATION OF $3.3bn
IN SALES
13,000
EMPLOYEES.
50 MANUFACTURING
€1.1bn
IN SALES
5,950
EMPLOYEES.
56 SITES

A GLOBAL RAIL
PLANTS WORLDWIDE

United States Increasingly global

LEADER A LEADER IN ITS HOME COUNTRY,
WITH 53% OF SALES TO THE US
57% OF SALES IN EUROPE; 22% IN
ASIA-PACIFIC; 20% IN AMERICAS

On 27 July 2015, Faiveley Transport
announced its entry into exclusive
negotiations with Wabtec Corporation.
Following review with employee
representative bodies, on 6 October 2015
the Faiveley family and Wabtec Corporation
signed the share purchase agreement as
well as a shareholders’ agreement; Faiveley
Transport and Wabtec Corporation signed
the agreement related to the tender offer.
Wabtec’s firm offer relates to the acquisition
of the entire Faiveley Transport share
sales of approximately €4 billion. The
complementary nature of the two
companies’ activities is strong, both in
terms of product range and geographic
coverage (see opposite).
Finalization of this project is subject to
the fulfilment of standard closing conditions
and specifically to the approval of the
competent competition authorities (the
European Commission and the US
Department of Justice, as well as Russia’s
Federal Antimonopoly Services)*.
quarter of 2016 and the proposed tender Freight leader Strength in transit
offer will be filed with the Autorité des 62% OF TOTAL SALES MAJOR NEW CONTRACTS ON NEW
IN THE FREIGHT SEGMENT METRO AND PASSENGER TRAIN
Marchés Financiers (AMF – French financial PLATFORMS IN 2015-16
markets authority) in the weeks following
this change in control. 
Services
BOTH FAIVELEY TRANSPORT AND WABTEC HAVE A STRONG FOCUS ON DEVELOPING
AFTERMARKET PARTS AND SERVICES: 62% OF WABTEC TOTAL SALES COME
FROM SERVICES; AT FAIVELEY TRANSPORT, THE FIGURE IS 45%
*At the time of publication, the project had already been
approved by the Russian competition authority. The process
for applying to the European Commission for authorization

capital, valuing it at an enterprise value

in the region of €1.7 billion, and would give
rise to one of the world’s leading rail
equipment manufacturers with combined
In this context, the acquisition of the
controlling interest from the Faiveley family
by Wabtec is expected to occur in the fourth
was ongoing. Following the formal notification submitted
on 4 April 2016, on 12 May 2016 the European Commission The combination will …with two strong
opened an in-depth investigation (Phase 2) with respect
to a few products areas which could be affected create a leading global player… segments
by the combination. In the United States, the Department
of Justice was continuing the second request review in
relation to the planned acquisition.

€4bn
IN SALES
7%
“The proposed combination with Wabtec 28% OTHERS
EUROPE
secures our long-term growth. The consolidation 10
of our customer base we have seen to date 54% ASIA-PACIFIC

is only the beginning. As major industry players AMERICAS

Transit Freight
merge, we need to make sure we provide HEADED BUILDING ON WABTEC’S
customers with the best possible offer, as well BY STÉPHANE
RAMBAUD-MEASSON:
HISTORIC
LEADERSHIP POSITION:
as withstanding competition.” AROUND 53%
OF TOTAL SALES
AROUND 47%
OF TOTAL SALES
SALES BY GEOGRAPHY (ESTIMATE)
STÉPHANE RAMBAUD-MEASSON, CEO of Faiveley Transport
and Chairman of the Management Board
 14 D E LI V E R I N G PE R FO R M A N C E 15 FA I V E LE Y TR A N S PO R T  ACTI V IT Y R EPO R T 2 015/16

OUR FINANCIAL
FAIVELEY TRANSPORT STRENGTHENED ITS EXECUTIVE COM-
MITTEE IN 2015-16 BY APPOINTING TWO NEW MEMBERS. THEIR
EXPERTISE WILL HELP US ACHIEVE THE GOALS SET OUT IN OUR
CREATING VALUE 2018 STRATEGIC PLAN.
PERFORMANCE
OUR EXECUTIVE ORGANIC GROWTH
IN THE ORDER BOOK
STRONG GROWTH
IN SERVICES
11.9% INCREASE IN ADJUSTED
GROUP OPERATING PROFIT

COMMITTEE Building on last year’s record order book,

Faiveley Transport’s Executive Committee
oversees operational activities, notably
the Faiveley Worldwide Excellence program
and various initiatives in place to deliver
outlook: they represent three continents,
and around half are non-French. In 2015-16,
we welcomed two new members to
the Committee: Mihaela Andronic, Vice-
and HSE. The appointment of these two
talented executives reflects the priority given
to their two areas of expertise in the strategic
plan: developing talent and improving quality
the Group achieved further organic
growth of +1.6% (-1.6% when including
the negative 3.2% currency effect).
This positive momentum reflects customers’
renewed confidence in Faiveley Transport.
Major customers entrusted us with
new platforms, and we won significant
contracts in all regions.
Total sales grew by 5.4%, led by a strong
performance from the Services Division.
Thanks to exceptional organic growth
of 8.8%, Services now accounts for 45%
Better project execution and an increase in
sales of higher-margin Services contributed
to a significant increase in gross profit.
Despite a significant increase in SG&A*
of sales. Original Equipment Divisions’ sales linked to the implementation of the strategic
declined due to the planning of deliveries plan, Faiveley Transport increased its
on major platforms. Around the world, adjusted Group operating margin to 9.8%
Americas recorded the strongest sales of sales, in line with its Creating Value
growth performance. objectives.** 
* Sales, General & Administrative costs.
** 11% to 12% by 2017/18.

the Creating Value 2018 strategic plan. President HR and Internal Communication; are both seen as essential to the ongoing
Its members benefit from an international and Hakim Aoudia, Vice-President Quality success of the business. 
Order book Sales and operating margin
From left to right: (in € millions) (in € millions) Operating margin* (in % of sales)

1,877 1,847 1,105

1,690 1,048
1,616 1,660 988 957
901

STÉPHANE SIMON CHARLESWORTH GUILLAUME BOUHOURS JUN HE

RAMBAUD-MEASSON Vice President Sales & Marketing Chief Financial Officer President China
Chief Executive Officer Member of the Management Board
and Chairman of the OLIVIER RAVIT
LILIAN LEROUX 10.4 11.2
Management Board President Energy & Comfort
9.3 9.8
President Brakes & Safety 9.2

2011/12 2012/13 2013/14** 2014/15 2015/16 2011/12 2012/13 2013/14** 2014/15 2015/16

RALPH FÜRDERER
Chief Technology Officer
HAKIM AOUDIA
Vice President Quality and HSE
MIHAELA ANDRONIC
Vice President Human Resources
and Internal Communication
THOMAS FESER
Vice President Corporate Development
€1,105  MILLION SALES
9.8%
ADJUSTED GROUP OPERATING MARGIN
€38.5 
MILLION FREE CASH FLOW
RÉMI CAUSSE JÉRÔME SPENCER ALAIN DESCHÊNES
President Access & Mobility President Services Vice President Operations and IT
* Adjusted Group Operating margin. ** Restated figures from IFRS 10, 11, 12 impact.
16 D E LI V E R I N G PE R FO R M A N C E 17 FA I V E LE Y TR A N S PO R T  ACTI V IT Y R EPO R T 2 015/16

FAIVELEY TRANSPORT’S QHSE INITIATIVES ARE INCREASINGLY OUR QUALITY STRATEGY IS BASED ON 3 PILLARS
FOCUSED ON PREVENTION: PUTTING IN PLACE THE RIGHT
­SYSTEMS UPSTREAM, AND STANDARDS AND TRAINING TO ENSURE
OUR EMPLOYEES REMAIN SAFE, OUR PRODUCTS ARE OF HIGH
QUALITY, AND OUR IMPACT ON THE ENVIRONMENT IS MINIMIZED.

OUR QHSE Reactivity Control Anticipation

PERFORMANCE
IN HANDLING CUSTOMER ISSUES OF PRODUCTION BASICS FOR NEW PROJECTS

Faiveley Transport focuses its work in quality,
to improve and monitor their QHSE  
Achieved by implementing a best
practice approach to deal with
customer issues rapidly and effectively
using a QRQC approach (Quick
Response Quality Control).
Improved environmental
Investment in better control throughout
our supply chain of key special
processes such as welding
and painting. We also deploy
Faiveley Transport quality
representatives to client sites.
Introduction of a system of “gate
reviews” to track projects from the early
stages of design and development and
anticipate future milestones and risks.
The system also takes into account
previous lessons learned.

health & safety and the environment (QHSE)
around the needs of two key stakeholders:
employees and customers.
Our approach in recent years has evolved
from the reactive to the truly proactive,
a fact reflected in our clearly defined
structure for managing QHSE across
the Group. This is backed by strong and
visible leadership commitment: in 2016,
the Vice President for QHSE was appointed
and operational performance. Sites reaching
the same high consistent level of quality
achieve FWE certification.
We have also introduced tighter control
of our supply chain and have deployed
Faiveley Transport quality residents
on major client sites.
 New initiatives in Health
& Safety
management
Finally, we take steps to minimize
our environmental impacts resulting from
our worldwide production. We have put
in place Environmental Management Systems
CERTIFICATION HELPS US IMPLEMENT THIS STRATEGY –
AND DEMONSTRATE PROGRESS
and certified 19 of our production sites
to ISO 14001 standard, and have launched INTERNAL
our first initiatives to reduce energy
and water consumption.  7 
SITES CERTIFIED

to the Group’s Executive Committee.
 Putting quality at the heart
We believe our people are our greatest
resource, and that their wellbeing contributes
Faiveley Worldwide Excellence
to our ability to deliver high quality products.
INTERNATIONAL RAIL INDUSTRY

of our approach
Our central objective is to provide our
customers with the best possible quality
by putting in place the right systems, tools
and methods. Our strategy for improving
our quality performance, supported by
our FWE (Faiveley Worldwide Excellence)
certification program, is delivering strong
results for our customers (see opposite).
FWE represents a key plank of our approach.
All sites follow the Faiveley Management
System and our Internal Control rules,
30  19 
As such, we strive to provide facilities
and equipment that meet all the major
international HSE standards and have also SITES CERTIFIED SITES CERTIFIED
set an objective of zero workplace accidents.
In 2015-2016 we launched several initiatives
ISO 9001 IRIS
to emphasize a strong safety culture
among all employees. Employees received
regular personal messages from our
OUR APPROACH HAS BROUGHT REAL BENEFITS FOR CUSTOMERS
CEO on the importance of safety, reinforced
by Safety Days with top executives
and communications campaigns deployed
across all sites.
90% 75%
reduction in PPM reduction in backlog
SINCE 2012, WE HAVE REDUCED OUR PARTS SINCE 2012, WE HAVE REDUCED OUR BACKLOG
PER MILLION (PPM) DEFECTS MORE THAN TENFOLD OF CUSTOMERS’ NON-CONFORMITY REPORTS BY FOUR
 19 FA I V E LE Y TR A N S PO R T  ACTI V IT Y R EPO R T 2 015/16

Our strategic three-year plan, Creating Value 2018,

is ­d esigned to bring tangible benefits to customers,­­
share­holders and employees. It aims to help the Group
become more competitive, and grow profitably.
Structured around five building blocks, it encompasses all CREATING
operational ­aspects of our business, from our industrial
footprint and organization, to our growth strategy and our
VALUE
2018
people. In 2015-16, the first year of the plan, we made
substantial progress, driving innovation while putting in
place solid processes to attain operational excellence. 

CREATING
VALUE Shape Execute Create
Adapt our industrial footprint Achieve operational excellence Invest in Product and System
and our organization to improve in terms of Quality, Project innovation to maintain a
our performance and our management, and On-Time technological edge, meet
competitiveness. Delivery in order to provide customers’ needs and improve
full satisfaction to our customers our competitiveness.
and improve our financial
performance.

Develop Grow talent

Focus and accelerate Promote a shared culture
our commercial initiatives and a working environment
to achieve steady and profitable which foster talent development
growth that outpaces and team commitment.
the rail market.
20 C R E ATI N G VA LU E 21 FA I V E LE Y TR A N S PO R T  ACTI V IT Y R EPO R T 2 015/16

Shape Execute
FAIVELEY TRANSPORT IS ADAPTING ITS INDUSTRIAL FOOTPRINT, DEVELOPING WE AIM FOR OPERATIONAL EXCELLENCE TO MEET THE NEEDS OF OUR
MANUFACTURING AND PROCUREMENT IN LOW COST COUNTRIES WHILE CUSTOMERS AND IMPROVE OUR OWN FINANCIAL PERFORMANCE.
MAINTAINING ENGINEERING AND PROJECT MANAGEMENT IN ESTABLISHED REGIONS STRATEGIC INITIATIVES TARGET IMPROVEMENTS IN QUALITY, PROJECT
OF EXPERTISE. WE ARE ALSO RESHAPING OUR ORGANIZATION TO IMPROVE MANAGEMENT, ON-TIME DELIVERY AND COMPETITIVENESS, THROUGH USE
COMPETITIVENESS AND PERFORMANCE. OF NEW WAYS OF WORKING AND TOOLS.

In line with the Creating Value 2018 strategic plan, cost-effectiveness. We have also invested significantly
Faiveley Transport increased capital expenditure dur- in our Indian footprint, which supports both the local
ing 2015-16, to increase its footprint, and improve market, and the export market for our European custom-
customer experience and efficiency. ers. We have extended capacity in specific processes
Our largest investment was the development of the such as painting, and have opened an engineering
industrial site at Plzen in the Czech Republic, com- center in Bangalore.
pleted in nine months. The multi-product, state-of- Other transformation projects are ongoing in Germany,
the-art plant replaces former installations at Blovice, France and Scandinavia, as well as in China, where we
around 20 km away, and increases quality as well as are developing a footprint for our brakes business.  the model and best practices to be used across the
REORGANIZATION COMPLETED
Fully China Finance HR business
empowered management organization model
Divisions team staffed deployed underway
Faiveley Transport sees operational excellence as key
to its future success: it enables us to grow profitably, by
meeting the needs of our customers for high levels of
quality and service.
Our Faiveley Worldwide Excellence (FWE) program
is central to our efforts to achieve operational excel-
lence. It standardizes the way we operate, via the
Faiveley Management System, which establishes
business, and the Internal Control manual, which
defines our approach to risk. An important part of
FWE is certification, which is awarded following an
audit to confirm a site has met the program’s objec-
tives. This year, seven sites gained certification.
We also embarked on a series of programs to
strengthen operational functions and risk manage-
ment. New IT tools are being rolled out to harmo-
nize our procedures, and in 2015-16, we introduced
the new enterprise resource planning (ERP) tool at
12  sites. Three initiatives are in place to improve
project management. The creation of a Project Man-
agement Office (PMO) has enabled us to offer a
strong cross-divisional center of competencies and
grow our talent in this area of expertise. We have
instigated a program to select and pool suppliers
at Group level. And we have introduced global gov-
ernance across our projects that encompasses not
only financial reviews, but also purchasing, supplier
development, and risk identification and ­planning.
The result is that project execution has been enhanced
across all Divisions. We have also improved our cash
and inventory management at all critical sites, through
the use of monthly reviews and sales forecasts, in turn
enabling us to improve o ­ n-time delivery. 

20,000 m2 x2 3.4% 7 12
AIM TO DOUBLE
SIZE OF THE NEW PLZEN OUR BUSINESS OF SALES INVESTED SITES CERTIFIED UNDER
SITES USING
MANUFACTURING FACILITY IN INDIA OVER THE IN CAPITAL THE FAIVELEY WORLDWIDE
THE NEW ERP TOOL
IN THE CZECH REPUBLIC 3 YEARS OF THE EXPENDITURE EXCELLENCE PROGRAM
CREATING VALUE PLAN
22 C R E ATI N G VA LU E 23 FA I V E LE Y TR A N S PO R T  ACTI V IT Y R EPO R T 2 015/16

Create Develop
INNOVATION IN PRODUCTS AND SYSTEMS HELPS FAIVELEY TRANSPORT WE AIM TO ACHIEVE STEADY, PROFITABLE GROWTH AND OUTPERFORM
MAINTAIN A TECHNOLOGICAL AND COMPETITIVE EDGE. THE RAIL MARKET BY REBALANCING THE BUSINESS TOWARDS SERVICES,
WE SEEK TO MEET CUSTOMERS’ NEEDS FOR ENERGY EFFICIENCY, AND BY FOCUSING ON FOUR PRIORITY REGIONS – CHINA, INDIA,
MASS REDUCTION, SYSTEMS RELIABILITY, AND LOWER COSTS – BOTH FOR NORTH AMERICA AND WESTERN EUROPE. WE ALSO EXAMINE MERGER
ORIGINAL EQUIPMENT, AND THROUGHOUT A PRODUCT’S LIFECYCLE. AND ACQUISITION OPPORTUNITIES.

Faiveley Transport invests around 2% of annual sales
in research and development, the majority of which is
used to develop solutions that meet specific needs
expressed by the Group’s existing customers.
We invest in three types of innovation. The first is
“pure” innovation – new products that demonstrate
Faiveley Transport’s technological edge. The second is
performance improvements to existing products. The
third is product development to meet new regulatory
requirements.
The 30-35 year life span of rail products makes Total
Cost of Ownership (TCO) an important consideration
for customers. Energy efficiency and reliability both
impact operating costs, as do ease and cost of main-
tenance. Customers are also interested in innovations
that improve configurability. Many of our customers
want to receive flexible, plug and play solutions from
system suppliers. A good example of how we respond
to these two needs is Faiveley NeoFlexx® Disc, a brake
disc used for coaches, locomotives, regional and high-
speed trains. It allows for customization depending on
requirements – for example it can be made from steel,
which offers lower upfront costs, or aluminum, which is
lighter, and offers better thermal properties and dura-
bility. An all-new manufacturing process allows for
flexible production and logistics, reducing lead time.
ESP4C, our new sliding plug door mechanism, also
meets customer needs for flexibility by offering a single
door architecture for different types of LRVs, metros
and regional trains. We have reduced space envelope
by over 50%, and weight by 30%, thereby meeting
needs for lower TCO. 
Exploring the potential for mergers and acquisitions
represents a core part of our Develop pillar. The most
significant events of 2015-16 therefore relate to the
progress we made in our proposed combination with
Wabtec (see pg 12-13).
Separately, we made progress in further strengthening
our Services division, which saw strong sales growth
and order intake. We structured our organization to
provide local support to customers, expanding our
REGIONAL ORGANIZATION IN SERVICES
engineering services offering, and improving delivery.
The aim: to take advantage of opportunities related to
our installed base, and accelerate growth.
Our four priority regions are those where we see
growth and, therefore, an opportunity to outperform
the rail market. We have developed plans for each of
these regions, won major contracts in 2015-16, and
believe we are well positioned for large projects com-
ing to tender. 

Local Customer Greater Faster

support intimacy accountability decisions

FOUR PRIORITY REGIONS

-50% Up to 20% 8.8% 1 2

WESTERN NORTH
EUROPE AMERICA
SPACE ENVELOPE WEIGHT AND WEAR LIKE-FOR-LIKE
REDUCTION REDUCTION WITH FAIVELEY GROWTH IN SERVICES 3 4
WITH ESP4C NEOFLEXX® DISC IN 2015-16
CHINA INDIA
24 C R E ATI N G VA LU E 25 FA I V E LE Y TR A N S PO R T  ACTI V IT Y R EPO R T 2 015/16

Grow talent
THE 5,950 MEN AND WOMEN THAT MAKE UP FAIVELEY TRANSPORT
ARE KEY TO OUR SUCCESS. WE ARE FOCUSED ON PROMOTING SHARED VALUES
AND A WORKING ENVIRONMENT THAT INSPIRES COMMITMENT FROM OUR
TEAMS, AND ON IDENTIFYING AND DEVELOPING OUR PEOPLE’S TALENT.

At Faiveley Transport, we recognize the vital role our that our project managers have the skills they need to
employees play in the company’s development, and perform their roles and ensure efficient delivery of pro-
have put them at the heart of our Creating Value 2018 jects. We worked to define a skills profile for project

STRENGTHENING
strategy. managers that included both technical skills and soft
One of the challenges of a large international Group is skills – for example, influencing and communications.
fostering a shared sense of identity and purpose. Last We then assessed our project managers against this tar-

year, we carried out an in-depth exercise among employ-
ees to define the Group’s common values.
The result – “Reliable, Collaborative and Passionate” –
defines what makes us One Faiveley. This is why our
efforts in 2015-16 were focused on communicating and
translating these values, and including them in our per-
formance management system. Going forward, we plan
to include them in our selection process for new hires.
Another major focus during 2015-16 was on reinforcing
our project management capabilities. Our aim: to ensure
OUR BUSINESS
get profile, and developed individual plans to help them
improve. We also invested in training, offering a program
in project management fundamentals at seven sites dur-
ing the year. Our next step is to develop a mobile learn-
ing platform. Our final focus was on talent reviews, as
part of our aim to identify and develop the Group’s future
leaders. We have now completed the full cycle of talent
reviews at site, Division and Executive Committee level.
Going forward, this will enable us to provide people with
rewarding career paths, and motivate our key talents. 

FAIVELEY TRANSPORT’S THREE

SHARED VALUES ARE:
RELIABLE, COLLABORATIVE
AND PASSIONATE

Our three Product Divisions – Brakes & Safety, Energy &

7
Comfort, and Access & Mobility – design, manufacture,
RELIABLE COLLABORATIVE PASSIONATE
and market our equipment. Through our Services
We can be counted on. We work as a global We are passionate about
We deliver our team. We listen railways. Passion and Division, we support customers in optimizing the
commitments with to and respect each other. expertise are the pillars
TRAINING ON PROJECT integrity. We are We share of our craft. We build on lifecycle costs of their assets, by providing maintenance
MANAGEMENT accountable and our knowledge and them to address our
trustworthy partners. believe in our collective customers’ needs and spares, and by retrofitting equipment. In China, the
FUNDAMENTALS CARRIED contribution. creatively and swiftly.
OUT AT SEVEN SITES world’s largest rail market, we have brought all our
products and services ­under one roof, to enable our
teams to offer customized solutions. This structure
enabled us to support our customers with specialized
teams across all regions.  
26 S TR E N GTH E N I N G O U R B U S I N E S S 27 FA I V E LE Y TR A N S PO R T  ACTI V IT Y R EPO R T 2 015/16

Access
& Mobility 36
PROJECTS TO BE
DELIVERED BETWEEN
2016 AND 2020
1.

 5

 5

1. Glass bonding
EET
on RS10 door leaves,
STR
MA
IN Hosur, India.
 3
 1 Platform doors 2. Door leaf glass fixation,
 2 Automatic platform gates Plzen, Czech Republic.
 3 Access doors
3. Platform Screen
 4  4 Movable step and ramp Doors of metro line 1
 1 for disabled person - before retrofit project -,
 5 Interior doors 2. 3. Lille, France.
 2

Faiveley Transport invests
in research and development,
creating innovative products
that contribute to our strategic
objectives to standardize
our offer and reduce installation
time. During 2015-16,
we won high-value projects
in the growing market
for platform screen doors,
as well as major contracts in
access doors.
The Access & Mobility Division supplies
manufacturers, operators and railway main-
tenance bodies worldwide with a complete
range of passenger access systems and
platform screen doors.
As the market leader in platform screen
doors and automatic gates, we produce
door systems, as well as the surrounding
glass and metal panels. The external and
internal doors of trains, considered access
products, constitute the remainder of the
Division’s business activity.
 Leveraging expertise, ensuring
delivery
Retrofitting is an expertise that enables
Faiveley Transport to differentiate itself from
its competitors. We are able to work within
extremely tight space and time constraints.
In Lille, for example, we successfully fit plat-
form screen doors for the existing metro
line 1 at night, enabling it to open for normal
service during the day.
We continuously invest in research and
development to produce innovative prod-
ucts that reduce installation time and
improve security. Clear-FlowTM, for exam-
ple, is a higher, safer platform edge barrier.
Designed to facilitate retrofit projects with
its use of modular installation, it is able to
reduce installation time by 30%, resulting in
significant cost savings for customers.
Prototypes for other innovations include
new door operators able to serve multiple
transport systems and reduce weight and
volume. ESP4C, our compact door opera-
tor, targets the light rail, metro and EMU/
DMU markets with a high level of standardi-
zation using service-proven components.
Our new ways of working contributed
to our excellent reliability and track record
in delivery.
 A record year for orders
In 2015-16, the Division won several key
projects worldwide. In access doors, we
won contracts for lines 8 and 13 for CRRC
in Shanghai, the 93 MTRC trains for CRRC
in Hong Kong and for DMRC in New Delhi
as well as contracts in Latin America. We
gained record orders in platform screen
doors, including high value projects such target region. Our ambition is to transform
as the retrofit of line 4 of the Paris metro our facility in the Czech Republic into an
with RATP, who also awarded us contracts export hub for Europe. We are also devel-
on line 14. We also won a contract with a oping our industrial footprint in India to
new customer: MHI Transportation Sys- better serve the local market. 
tems, a subsidiary of Mitsubishi Heavy
Industries, who awarded us the screen
doors contract for line 6 of the metro in
São Paulo, Brazil.
Going forward, we expect the market for
platform screen doors to flourish, thanks
to its added value in security and passen-
ger traffic, as well as its compatibility with
new metro lines and driverless trains.
In 2016-2017, we plan to continue our
regional development in order to manage
projects and manufacture locally in every
28 S TR E N GTH E N I N G O U R B U S I N E S S
Brakes
& Safety
In 2015-16, the Brakes & Safety
Division began to reap
the benefits of its programs
to standardize and modularize
products, which form part
of the Creating Value 2018
strategic plan. We also reduced
time to market and increased
market competitiveness with
enhanced localized solutions and
manufacturing for our customers.
1.
Three business units  – Transit Brakes,
Freight and Couplers  –  form the Brakes &
Safety Division. We offer complete braking
systems and safety solutions for all types
of rolling stock, and cover the entire brak-
ing command chain in trains.
While transit system customers require a
high degree of customization, the freight
sector is characterized by off-the-shelf
products.
 Implementing the Creating Value
2018 strategic plan
Improved efficiency at all project levels,
greater standardization and increased
competitiveness were our main objectives
in 2015-16. For example, in Brakes Transit,
a single tender team of system engineers
and costing experts was created, to bet-
2.
1. Coupler trial testing,
Hosur, India.
2. Wheel Mounted Discs
(WMDs) Induction,
Witten, Germany.
29
ter support customers by offering the right
balance between performance and costs.
This year, we began seeing the benefits of
our investment to standardize and modu-
larize products. In brakes, our progress
in developing a catalog of standardized
products, with stringent testing programs
and protocols, resulted in increased suc-
cess in both transit and freight. In cou-
plers, we made significant progress in our
modularization program, and started to
see benefits in the form of improved time
to market and greater competitiveness.
We believe strongly in technical differentia-
tion and see Research and Development
as key to better serving our customers.
In partnership with Swiss Federal Rail-
ways (SBB), we put Faiveley NeoFlexx®
Disc into operation this year. This prod-
 1 Couplers and/or Draw gear
 2 Buffers and self lubricated buffers
 3 Air Generation and Treatment Unit
 4 Brake Control (Pneumatic, electro-
pneumatic and electronic)
 5 Brake frame
 6 Wheel and axle mounted discs
 7 Disc and tread brake units
 8 Magnetic track brake
 9 Sanding
 10 Pantograph Compressor
 1
EET
STR
MAIN
FA I V E LE Y TR A N S PO R T  ACTI V IT Y R EPO R T 2 015/16
uct boasts significant market advantages
compared to standard brake discs, thanks
to its reduced weight, longer life cycle and
reduced energy consumption. Other inno-
vations include the ParkLock® concept, a
compact brake offering superior braking
force, and a new brake control system.
 Developing international markets
Contracts for couplers in India and China,
and activity in the freight sector, demonstrate
our progress in meeting customer demands
with standardized solutions. In addition
to existing contracts in India, we were
awarded a series of contracts for the Kochi
and Lucknow Metro Projects with Alstom.
We are also supplying braking systems to
Bombardier as part of a wider contract in
Delhi. Other major contracts included the
 3
 5  1
 7
 10  
 6
 8
 4
 5
­ upply of couplers to CRRC Sifang for
s
the Hong  Kong metro, braking systems
for Alstom’s Metropolis metro trains, for
use in Sydney, and braking systems and
10 years’ maintenance for Siemens’ Rhine-
Ruhr Express (RRX) trains in Germany.
We also received orders for more than
1,200 UIC integrated freight brake systems,
and it was a record year for orders in the
US freight market.
In 2016-2017, we aim to accelerate local
production in Czech Republic and India, to
the benefit of our customers. We are con-
fident that we will continue to benefit from
the positive trend in orders in both brakes
and couplers, an extremely active mar-
ket in India, and continued fleet renewals
­in Europe. 
 2
9
4
NEW PLATFORMS
Contracts included braking
systems for four new platforms
by Alstom, Siemens and
Bombardier
30 S TR E N GTH E N I N G O U R B U S I N E S S 31 FA I V E LE Y TR A N S PO R T  ACTI V IT Y R EPO R T 2 015/16

-10%
ENERGY SAVING
THANKS TO
OUR ECOPARK®

Energy
SOLUTION
1. Auxiliary power
converter wiring,
La-Ville-aux-Dames, France.

& Comfort
2. HVAC final assembly,
Hosur, India.
3. Pantograph assembly
Plzen, Czech Republic. 1.

 1  6
 5 '

0
Einfg +

 6
Enter

 6
 2
 4
 3
7:0
3  6
Pa
ris

 7
 6
 1 Pantograph
 5  7
 2 Energy meter  5
EET
STR
 3 Switch MA
IN

 4 Auxilliary power
converter 3.
 5 Heating, Ventilation
and Air Conditioning
 6 Driving Aid
and recording
 7 CCTV and passenger
information 2.

In a competitive market,
Faiveley Transport seeks to
provide added-value solutions
for customers that optimize
total cost of ownership,
notably by improving energy
efficiency. We focus on
research and development to
create technical differentiation
and meet customer needs.
The Energy & Comfort Division brings
together two product groups related to a
train’s energy management chain: Heating,
Ventilation and Air Condition (HVAC), and
Power & Information (auxiliary inverters,
pantographs, switches, CCTV and event
recorders).
By identifying and developing synergies
between products, the Division helps cus-
tomers increase energy efficiency, reduce
energy consumption, cut maintenance
costs, and decrease weight and space
envelope.
 Major wins on new platforms
Against the backdrop of a competitive
market, we won significant contracts in
2015-2016. The Group confirmed its posi-
tion as global market leader in HVAC
systems, supplying customers in Swit-
zerland, Germany, France, Belgium, India,
China, Russia and the United States. One
key contract included the supply of HVAC
systems for Boston metro MBTA to Chi-
nese manufacturer CRRC, the world’s
largest rolling stock manufacturer, in its
first project in the United States.
Other major contracts for new platforms
took advantage of product synergies.
Our ability to meet Bombardier’s require-
ments for reduced weight and space
envelope enabled us to win the contract
to supply auxiliary inverters and cabin
HVAC systems for 355 M7* train cars.
We are also supplying HVAC for Alstom’s
new MP14 Paris metro trains, and Stadler
Rail Group’s EC250 EuroCity high-speed
trains.
 Innovating to meet customer needs
With customers increasingly demand-
ing local content, Faiveley Transport has
adopted a “glocal” strategy, focusing on
customer proximity and regional produc-
tion while upholding global standards. In
addition to our existing footprint in Europe,
China and the United States, we have
begun manufacturing in Hosur, India, and
are investigating production opportunities
in Turkey, Brazil and Russia.
Our response to price pressure is to focus
on added-value solutions that increase
energy efficiency and lower Total Cost
of Ownership. In 2015-16, we created a
cross-business Energy Efficiency Centre
Of Competence. We work with clients to
collect and analyze data relating to equip-
ment and use, before proposing custom-
ized solutions to optimize and reduce
their energy consumption. We make use
of service-proven technologies, such as
inverter integrated solutions, heat pumps,
and CO2 sensors regulating fresh air entry
and heat recovery, as well as our own pat-
ented innovations. With HVAC systems, for
example, accounting for up to 40% of a
train’s energy consumption, our EcoPark®
solution, currently being tested on SNCF
trains, provides attractive energy and cost
savings. Other solutions include lighter,
space-saving pantographs, as well as cus-
tomizable software for video vigilance and
event recorders.
Looking ahead, we see opportunities in
Asia Pacific and in the US. We also plan
to develop further in Turkey and Rus-
sia. We believe our technical expertise,
global business presence, and expertise
in energy efficient solutions will differenti-
ate us from competitors, and enable us to
meet customer needs. 
*Contracts to supply auxiliary inverters were signed
during the 2015-2016 financial year. The contracts for all
other elements were booked in the first quarter of 2016-17.
32 S TR E N GTH E N I N G O U R B U S I N E S S 33 FA I V E LE Y TR A N S PO R T  ACTI V IT Y R EPO R T 2 015/16

Services The Services division supports customers

with long-term maintenance of their original
equipment, including optimization solutions
and spare parts. Already the largest of the
linked to our focus on customers. We
have adapted our organization to provide
better local support. No longer centered
on business units, our new regional
needs together to help them simplify their
supply chain and logistics.

 Targeting excellence in delivery

Services saw strong
momentum in 2015-16, in line
with our ambition outlined in
our Creating Value 2018
strategic plan to become a
one-stop shop for customers.
Improved delivery, more
1. Maintenance proactive sales strategies, and
of the SW4 distributor,
Amiens, France. a new regional organization
five divisions, Services achieved like-for-like
sales growth of +9% in 2015-16. This strong
growth was the result of record order vol-
umes the previous year, particularly on large
overhaul programs in the UK, Australia and
the US. Key orders include services to sup-
port sales of the Faiveley NeoFlexx® Disc;
a 10-year contract for supply and over-
haul of parts for Siemens new Rhine-Ruhr
Express trains; and an overhaul contract for
X40 trains operated by SJ in Sweden.
 Developing customer proximity
organization brings better customer
understanding and faster decisions.
We are also increasing localization to
improve our reactivity and turnaround
time for repair and overhaul projects:
examples include new sites in Morocco,
UK, Australia and Turkey.
We are improving the value we bring cus-
tomers via proactive sales strategies.
As a result of customer visits, we better
understand their needs and expectations,
enabling us to develop new services. We
are developing overhaul kits adapted to
Similarly, we have strengthened our teams
and are working much more closely with
our customers’ supply chains on demand
management and forecasting. Our aim is to
maximize sales of parts, by driving excel-
lence in delivery. Cuts to lead times for
spares have been significant with strong
cooperation with customers. For exam-
ple, we have worked in partnership with
SNCF to reduce lead times to two weeks
for a list of products, resulting from strong
alignment between our supply chains. The
contract also represents the first step in our
turnaround times to reduce the overall
duration of repairs and overhauls.
Increasingly, we are developing partner-
ships with customers. These are frequently
focused on innovation, such as our part-
nership in Switzerland with SBB to bring
Faiveley NeoFlexx® Disc into operation.
We are also developing digital services, for
example cloud services for ATESS black
box users, and real time CCTV streaming
for buses.
Going forward, we see clear opportuni-
ties to develop our Services business,
addressing our installed base systemati-
cally and proactively as a one-stop shop,
able to address all products with a single
point of contact for customers, and to pro-

2. Brake disc inspection

that better serves customer Our ambition for growth in Services forms customers’ specific programs, for exam- shift to a distribution model with 48-hour pose innovative services focusing on ben-
Ashford, UK. needs were key to this success. part of our strategic plan, and is intimately ple, and bundling all their spare parts delivery targets. We are also working on efits for customers. 

Our services

Installation Commissioning Preventive & Upgrades Remote diagnostic

and training corrective and predictive
1. maintenance maintenance

45%
OF GROUP SALES Reliability Friction pair Energy Saving Overhauls
NOW REPRESENTED and maintainability
BY SERVICES 2.
studies
34
China
1.
China has become a major
player in the global railway
sector, with the world’s largest
high-speed rail network,
and the number one rolling
stock manufacturer. This year,
our China Division optimized
services, remained competitive
and won several key contracts.
We also invested in employee
training and research and
development.
S TR E N G HTE N I N G O U R B U S I N E S S
Faiveley Transport launched its China
Divi­sion in 2014 in response to customer
demand for products and services in metro,
high-speed rail and locomotive systems.
As a supplier for China’s largest metro sys-
tems, including the Shanghai, Beijing, Har-
bin, Guangzhou, Changchun, and Wuhan
metros, as well as Hong Kong's MTR, we
are well positioned in the domestic market.
Major contracts won domestically included
couplers and door systems for 744 cars of
the Hong Kong Metro and access doors
for Shanghai line 8 and 13. In another
significant achievement, we provided the
door system for the first driverless metro
lines in Beijing Yanfang line. We are also
well positioned as a pioneer in the grow-
2.
1. HVAC components assembly,
Shanghai, China.
2. Door leaf painting,
Shanghai, China.
3. Door leaf glass bonding,
Shanghai, China.
4. Door operator assembling,
Shanghai, China.
ing LRV market by providing a pantograph
solution for Suzhou’s second LRV line. In
total, we are equipping 36 trains in Suzhou
with our pantographs.
 Expanding abroad, adapting locally
Our Chinese manufacturing expertise is
recognized abroad, in North America,
South America, South-East Asia and
Europe. We won major contracts to sup-
ply parts manufactured in Shanghai for
the New Delhi and Kochi Metro Projects
in India.
In October 2015, we were awarded a mile-
stone contract to supply HVAC systems for
China Railway Rolling Stock Corp (CRRC)
in its first project for the Boston metro line
35
3.
in the United States. We have preferred
supplier status with CRRC, especially in
door systems, pantographs and HVAC,
and continue to work in partnership with
the world’s largest train manufacturer.
In the high-speed rail sector, we have sus-
tained development in the growing Chi-
nese market. We currently offer braking
systems that are undergoing homologa-
tion for new high-speed platforms. In 2015,
our Brakes & Safety Division was success-
fully approved for homologation on three
Chinese-made trains (CRH3G, CRH3A
and CRH2-250).
For the locomotives segment in six-axle
and eight-axle generations, we have main-
tained a strong presence and developed
FA I V E LE Y TR A N S PO R T  ACTI V IT Y R EPO R T 2 015/16
new products for locomotive platforms
such as the DMU 215, a future platform for
the global market. Our locomotive control
units, certified by local Chinese authori-
ties, are accepted by all platforms.
 Focus on operational excellence
Since the launch of the “China Quality
Year” program in April 2015, we improved
local customer satisfaction by focusing on
quality standards in products, processes,
delivery and services.
Our intensive training programs, available
on all sites, as well as a dedicated learn-
ing campus in Beijing, allow us to increase
overall quality awareness. Each employee
now benefits from a minimum of 20 hours
4.
19,000
KILOMETRES
OF HIGH-SPEED RAIL
NETWORK IN CHINA
of training. In addition to developing prod-
uct and marketing training, our employee
engagement program brings a competitive
edge to our hiring efforts.
Moving forward, we continue to adapt to
the local market with our localization initi-
atives, inciting sales and marketing teams
to consistently update market intelligence
and develop acquisition strategies. We
also invest in research and development
to focus on strategic local projects that
boost our current position in the Chinese
market. 
36 S TR E N G HTE N I N G O U R B U S I N E S S

A WORLDWIDE
PARTNER CENTRES OF COMPETENCE SALES BY
GEOGRAPHIC REGION
COMMERCIAL SITES

PEOPLE
57%
EUROPE
 RODUCTION AND
P
EUROPE MAINTENANCE SITES 22%
ASIA-PACIFIC

22  19  20%

AMERICAS
12  3,592 1%
REST OF THE
WORLD

ASIA-PACIFIC WORKFORCE
BY GEOGRAPHIC REGION
AMERICAS 20  14 60%
EUROPE
1,639
10  9
28%
720 ASIA-PACIFIC

12%
AMERICAS

SALES BY DIVISION
45%
SERVICES
NEARLY

6,000 €1,105 56 sites 23%

BRAKES & SAFETY

Design and layout:

EMPLOYEES IN 24 COUNTRIES MILLION SALES INCLUDING:
14%
52 COMMERCIAL SITES ACCESS Writing : IMPACT Communications.
42 PRODUCTION & MOBILITY
3d Illustration: Manuel Bortoletti.
AND MAINTENANCE SITES
12 CENTRES OF COMPETENCE 18% Photos credit: Christophe Recoura,
ENERGY & COMFORT Patrick Sordoillet.
 Limited liability company governed by
a Management Board and a Supervisory Board
with share capital of €14,614,152.
3, rue du 19 Mars 1962
92230 Gennevilliers – France
Tel.: +33(0)1 48 13 65 00
Fax: +33(0)1 48 13 65 54
www.faiveleytransport.com
E-mail: info@faiveleytransport.com