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Page 1: Financial statements 2013...Financial statements 2013 Financial statements 2013 Piazza della Croce Rossa,1 00161 Roma . TRENITALIA S.p.A. FINANCIAL STATEMENTS AT 31 DECEMBER 2013 Disclaimer

Financialstatements

2013

Financialstatements

2013

Piazza della Croce Rossa,100161 Roma

www.trenitalia.com

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TRENITALIA S.p.A.

FINANCIAL STATEMENTS

AT 31 DECEMBER 2013

Disclaimer

This Annual Report 2013 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.

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TRENITALIA S.p.A.

2013 Financial Statements 2

Trenitalia SpA

Company with a sole shareholder subject to the direction and coordination activities of Ferrovie dello Stato Italiane S.p.A. Share capital: Euro 1,654,464,000.00 fully paid-up Registered office: Piazza della Croce Rossa no. 1, 00161 Rome Fiscal code and Register of companies: 05403151003 R.E.A. (Repertorio Economico Amministrativo, Administrative Economic Register): no.: 0883047

VAT: 05403151003

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TRENITALIA S.p.A.

2013 Financial Statements 3

OUR MISSION

Trenitalia operates in the sector of services for the mobility of passengers and goods within a national and

international context.

For Trenitalia, the basic conditions underlying its mission are the safety of the service, quality, workers’

health, protection of the environment and it considers the importance of the relationship with the customer as

the means to achieve a steady competitive advantage and create value for shareholders.

The whole organisation of Trenitalia, which is committed to meeting the needs of customers and the

requirements of the market, always guarantees the highest standards of safety and it implements

development and modernisation plans in compliance with social and environmental sustainability.

In order to achieve its mission the Company has created an organisational structure split into Divisions, each

of which is assigned a specific mission depending on the particular features of its relevant market.

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TRENITALIA S.p.A.

2013 Financial Statements 4

CORPORATE BODIES AND INDEPENDENT AUDITORS

Board of Directors:

Chairman Marco ZANICHELLI

CEO Vincenzo SOPRANO

Directors Domenico BRACCIALARGHE

Francesco ROSSI

Barbara MORGANTE

Board of Statutory Auditors:

Chairman Silvana AMADORI

Regular members Enrico ROSSI

Roberto SERRENTINO

Substitute members Francesco ROSSI RAGAZZI

Gianpaolo Davide ROSSETTI

Independent auditors: PRICEWATERHOUSECOOPERS S.p.A.

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TRENITALIA S.p.A.

2013 Financial Statements 5

TABLE OF CONTENTS

Report on operations

Main indicators ................................................................................................................................................ 8

Main events in the financial year .................................................................................................................. 9

Macro-economic scenario............................................................................................................................. 12

Performance of the relevant markets......................................................................................................... 16

Relations with customers ............................................................................................................................. 17

Income statement and statement of financial position ........................................................................... 22

Human resources .......................................................................................................................................... 34

Environmental policy and safety ................................................................................................................. 37

Investments ................................................................................................................................................... 41

The Trenitalia fleet ........................................................................................................................................ 46

Risk factors..................................................................................................................................................... 47

Relations with Related Parties ..................................................................................................................... 47

Trenitalia Group ............................................................................................................................................. 48

Own shares .................................................................................................................................................... 54

Other information .......................................................................................................................................... 54

Outlook ........................................................................................................................................................... 57

Proposed allocation of the result for the year .......................................................................................... 58

Accounting statements

Statement of financial position .................................................................................................................... 60

Income statement ......................................................................................................................................... 61

Statement of comprehensive income ......................................................................................................... 62

Statement of changes in equity .................................................................................................................. 63

Statement of cash flows ............................................................................................................................... 64

Notes to the financial statements

Preamble ........................................................................................................................................................ 65

Company ........................................................................................................................................................ 65

Criteria for the preparation of the financial statements .......................................................................... 66

Accounting standards applied ..................................................................................................................... 67

Financial risk management and other risk factors ................................................................................... 87

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TRENITALIA S.p.A.

2013 Financial Statements 6

Information on the balance sheet .............................................................................................................. 99

Information on the income statement ..................................................................................................... 124

Contingent assets and liabilities ................................................................................................................ 132

Fee due to directors and statutory auditors ............................................................................................ 132

Fees due to the independent auditors ..................................................................................................... 133

Information on the direction and coordination activity ......................................................................... 134

Related parties ............................................................................................................................................. 135

Guarantees ................................................................................................................................................... 141

Events after the balance sheet date ......................................................................................................... 141

Annex 1 ........................................................................................................................................................ 143

Certification issued by the Manager responsible for preparing Company’s accounting

documents and CEO

Board of Statutory Auditors’ and Independent Auditors’ Reports

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TRENITALIA S.p.A.

2013 Financial Statements 7

Report on Operations

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TRENITALIA S.p.A.

2013 Financial Statements 8

MAIN INDICATORS

ECONOMIC HIGHLIGHTS (amounts in millions of euros)

Operating revenues 5,497.8 5,498.0 5,708.0 5,707.8

Operating costs (4,112.5) (4,147.8) (4,317.0) (4,458.4)

EBITDA 1,385.3 1,350.2 1,391.1 1,249.4

EBIT 431.7 418.3 496.2 341.9

Net result 181.5 206.5 156.4 73.1

ECONOMIC AND FINANCIAL RATIOS

ROI 5.2% 5.1% 6.5% 4.3%

ROS 7.9% 7.6% 8.7% 6.0%

NAT 0.66 0.67 0.74 0.71

PROFITABILITY RATIOS

Personnel (FTE) 33,665 35,770 37,549 40,924

Train-Km/Employee (th.) 7.88 7.27 7.19 6.76

Operating revenues/Employee 163,307 153,704 152,018 139,473

EBITDA Margin 25.2% 24.6% 24.4% 21.9%

FINANCIAL RATIOS (amounts in millions of euros)

Net financial position 6,241 6,339 5,854 6,337

D/E 2.98 3.31 3.22 3.82

Operating Cash Flow 544 242 1,054 342

Investments (excluding cyclical maintenance) (552) (752) (509) (497)

Amortisation and depreciation (excluding cyclical maintenance)/Investments 1.2 0.9 1.2 1.4

Financial requirements (98) 481 (483) 39

Final balance

2013

Final balance

2011

Final balance

2010

Final balance

2012

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TRENITALIA S.p.A.

2013 Financial Statements 9

MAIN EVENTS IN THE FINANCIAL YEAR

January

On 16 January 2013 the Share Capital of Cisalpino was reduced to CHF 100,750 (a decrease of CHF

162,399,250), thus applying the resolution passed by the Shareholders’ Meeting at the end of 2012. This

decision fell within the scope of the shareholders’ decision to dissolve the Company.

February

On 5 February Trenitalia and ECTAA (the European Travel Agents and Tour Operators’ Associations)

signed a strategic partnership for the promotion and distribution of Trenitalia tickets and the entire range

of its services through all European travel agencies and tour operators. Trenitalia is the first railway

company to have concluded an agreement with ECTAA, the association founded in 1961 which combines

more than 30 national travel agents and tour operators’ associations.

On 6 February the Trenitalia Board of Directors decided that Trenitalia, in the capacity of Founder, would

be a party to the establishment of the FS Italiane Foundation together with Ferrovie dello Stato Italiane

and Rete Ferroviaria Italiana, authorising the contribution of 196 items of rolling stock and endowing the

Foundation with the library and archives, respectively, of the Library and Archives of the former Materials

and Traction Service in Florence.

On 14 February a letter of intent was signed by Trenitalia and Expo 2015 SpA in view of the Milan

Universal Exhibition. There will be “train and admission” packages, connections will be boosted and there

will be a vast campaign to promote the offer. The projects envisaged in the letter of intent will help to

show that trains are the most ecological means of transport in the world, thus taking up one of the most

important challenges of the Milan Universal Exhibition: sustainable mobility.

During February Dusmann Service S.p.A. won the Trenitalia tender for the High-Speed Frecce trains

cleaning services. Features of the contract are: the introduction of best practices and innovative

technologies that are absolutely the latest in the whole of Europe, the reorganisation of the cleaning

service on the train and constant attention to customer satisfaction.

March

The first edition of Frecciaviaggi was published, a new quarterly magazine that joins the monthly La

Freccia. This latest publishing project is a travel magazine distributed in thousands of copies on the

Frecciarossa and Frecciargento trains, at Fiumicino Airport and in travel agencies. It provides its readers

with helpful, original and exclusive advice so that they can enjoy our fascinating country to the most.

April

On 11 April Giorgio Napolitano, the President of the Republic, opened the Frecciarossa Village 1000, set

up in Piazza del Popolo in Rome to present the new train.

May

On 27 May Trenitalia joined the health and prevention programme to fight addiction to smoking in the

framework of the World No Tobacco Day. For four days from 28 to 31 May a team of specialists from

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2013 Financial Statements 10

anti-smoking centres of the Italian Health Service (Servizio Sanitario Nazionale), in collaboration with the

staff of the Observatory of Smoking, Alcohol and Drugs (Osservatorio Fumo Alcol e Droga) of the Italian

Higher Institute of Health (Istituto Superiore della Sanità), offered Frecce travellers advice on the

prevention and treatment of smoke-related diseases.

June

On 23 June the Children’s Train, a special Frecciargento train carrying more than 250 children in difficulty,

left Milan at 7.30 a.m. and arrived in Rome just before noon. The little travellers were received by Pope

Francis on the platform of St Peter’s Station in the Vatican City.

July

On 3 July there was an exclusive preview of the new Frecciarossa 1000 high-speed train, completely fitted

out, at the Bombardier plant in Vado Ligure, named after Pietro Mennea. The new train was ordered by

Trenitalia and constructed by Bombardier and AnsaldoBreda and with designer Bertone.

On 9 July a memorandum of understanding was signed by Trenitalia and Enel Energia regarding, in

particular, an increase in the efficiency of the Naples Multifunctional Facility (Impianto Dinamico

Polifunzionale) for the maintenance of the Frecciarossa trains. Under this arrangement, Enel Energia will

check and analyse the energy consumption of the facility, which is connected to Naples Central Station,

by installing, operating and reading an electricity load monitoring system. This understanding is a further

step in a direction that Trenitalia has taken for some time and which it considers its own particular

mission: to make a contribution to energy saving and the reduction of polluting emissions from transport.

September

During the summer more than 21 million visitors chose Trenitalia’s services. The main flows were towards

the big cities, the metropolitan areas and the art cities. A summer services schedule was drawn up in

order to meet the growing demand for mobility services and to make travelling conditions as comfortable

as possible, increasing the number of trains for the destinations most in demand and enhancing customer

assistance facilities.

On 20 September the Certification Body conducted the second supervisory inspection at the Foggia

engineering shop, also in the presence of ACCREDIA, the Italian accreditation body, to conclude the

three-year programme from 2010 to 2013 during which all the Cyclical Maintenance Shops (Officine di

Manutenzione Cicilica) were first certified and afterwards had their certification confirmed in accordance

with UNI EN 15085 standards for all maintenance work having an impact on welding processes.

The European Sustainable Mobility Week ended on 22 September. The aim of this EU-funded initiative is

to encourage the public to use means other than private cars for their daily travel. Each year the Frecce

trains enable about 900,000 tons of CO2 to be saved with respect to the amount produced if the same

people had used their cars, and 1.4 million tons with respect to aeroplanes.

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2013 Financial Statements 11

October

The third edition of Frecciarosa started during the month of October: this campaign, which promotes

awareness and prevention of women’s diseases, was conducted together with the Associazione

IncontraDonna charity. The 2013 Frecciarosa programme again included medical consultations on board

trains and the distribution of handbooks containing advice and useful tips for the entire female world with

the aim of making women, their health and their rights the centre of attention.

November

During November technical on-track tests began in order to obtain approval for the new regional

transport train, designed and constructed in Italy by Alstom.

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2013 Financial Statements 12

MACRO-ECONOMIC SCENARIO

The international macroeconomic scenario, still profoundly affected by the consequences of the financial

crisis, did not show sufficiently firm signs of recovery during 2013. The expansion of global economic activity

and international trade was meagre and irregular, but while the emerging economies slowed down – even if

they continue to be the driving force behind global growth – the advanced economies gradually strengthened.

The growth in world economy came to 2.9%, substantially in line with the value posted in 2012 (+3.0%),

with a 4.6% contribution from emerging countries and 1.2% from developed countries.

The highest rate of growth on the global scene was again that of China, the second economy in the world.

This country’s 7.6% growth rate was obtained despite the Government having set a slightly lower target

(7.5%). China is now getting ready to tackle major structural reforms in order to achieve a more balanced

growth system, mainly driven by investments and domestic consumption rather than exports.

After overcoming the difficulties arising from the budget and public debt, the US economy gave signs of

rediscovered vigour owing to a slow improvement in the labour market and a favourable trend in domestic

demand. US GDP rose by 1.9% on average on an annual basis.

Japanese economic growth (+1.8%) was stimulated by the Government’s adoption of a monetary expansion

policy, a more flexible fiscal policy and an increase in public expenditure, also to encourage private

investments.

Even if growth in international trade was quite brisk in the last part of the year, volumes were stationary on

last year’s figures (+2.1%).

Global inflation was limited, more so for the industrialised countries, in which inflation rates were well below

2% (USA 1.5%; Eurozone 1.4%), than for the emerging and developing countries (India 7.8%; Russia 6.9%).

As regards the prices of energy products, Brent quality crude oil ($ 108.6 per barrel) was lower than in

previous years in spite of some tension in Libya, in which the offer was well below the country’s potential,

mitigated by an increase in supply from Saudi Arabia.

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2013 Financial Statements 13

Global Economic data 2013 2012

GDP (% change over the previous year)

World 2.9 3.0 Developed countries 1.2 1.3 USA 1.9 2.8

Japan 1.8 1.4

Eurozone -0.4 -0.6 Emerging Countries China 7.6 7.9 India 3.5 4.1 Latin America 2.6 2.4

World trade 7.1 2.1

Oil ($per barrel) Brent 108.6 112.1

Source: Prometeia Rapporto di Previsione gennaio 2014 (Prometeia Forecast Report of January 2014)

Unlike the expansionary monetary policies adopted in the United States and Japan, monetary rigour and

attention to borrowing limits persisted in the Eurozone. GDP in the area as a whole fell by 0.4%, feeling the

effects of lower consumption owing to the squeeze on household income caused by the high jobless rate,

which touched 12% with higher rates in Spain and Greece, countries in which nearly 27% of the population

are out of work. At the tail-end of the year, however, there was a recovery, slight as it was, as a result of a

sluggish increase in domestic demand and a gradual rise in exports. Core European countries such as

Germany performed more steadily, while recovery was much slighter in the peripheral countries.

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2013 Financial Statements 14

Eurozone Economic data 2013 2012

GDP (% change over the previous year)

Eurozone

-0.4 -0.6

Germany

0.5 0.9

France

0.2 0.0

Italy

-1.8 -2.6

Spain

-1.2 -1.6

Inflation (% change over the previous year)

Eurozone

1.4 2.5

Germany

1.6 2.1

France

1.0 2.2

Italy 1.3 3.3

Spain 1.5 3.0

Domestic demand (% change over the previous year)

Eurozone

-1.0 -2.2

Germany

0.9 -0.2

France

0.4 -0.9

Italy -2.5 -5.2

Spain -3.1 -4.0

Source: Prometeia Rapporto di Previsione gennaio 2014 (Prometeia Forecast Report of January 2014)

The Italian economy, engaged in a laborious process of putting the country’s accounts on a stable footing

again, slowly marched towards an exit from the recession. The economic situation improved slightly during

the autumn months after a long period of decline. However, the change in the GDP on average on an annual

basis was still strongly negative (-1.8%).

The trend of the economic cycle showed a drop in GDP (-0.6%) in the 1st quarter, but at a slower rate than

the last quarter of 2012. GDP also showed a reduction in the 2nd quarter, but at a lower rate (-0.3%). In the

third quarter GDP stabilised, interrupting a fall that had persisted since the summer of 2011, and increased by

0.4% in the fourth quarter (according to the last data of the national accounting).

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2013 Financial Statements 15

Italy Economic data Q1 Q2 Q3 Q4

% changes

GDP -0.6 -0.3 0 0.4

Domestic demand -0.4 -0.7 0.3 0.2

Household spending -0.5 -0.5 -0.2 0

PA* and ISP** spending 0.1 0 0 -0.3

Gross fixed capital formation -2.9 0 -0.6 -0.2

constructions -4 -0.9 0 -1

other investment assets -1.7 1 -1.2 0.7

Imports of goods and services -0.5 -0.7 2 0.1

Exports of goods and services -1.2 0.7 0.7 0.5

Source: Prometeia Rapporto di Previsione gennaio 2014 (Prometeia Forecast Report of January 2014) * PA = Pubblica Amministrazione, Public Administration **ISP = Istituzioni Sociali Private, Private Social Institutions

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2013 Financial Statements 16

PERFORMANCE OF THE RELEVANT MARKETS

In spite of the weakening of the economic cycle and the consequent decline in domestic and international

trade, during 2013 there was an attenuation of the negative trend of previous years in the overall

performance of the transport sector, both in the passenger and in the cargo segment.

The results achieved in the cargo sector in a scenario of a fall in industrial production (-3.0%), slightly positive

exports (+1.3%) and a sharp drop in exports (-9.5%) constituted, on the whole, an inversion of the trend, in

line with the situation in the Italian economy. For example, the Air transport sector recorded an increase of

1.9% in tonnes handled; once again, Milan Malpensa airport ranked first by volume of cargo handled (421

thousand tons, equal to about 50% of the total), with an increase of 3.8% compared to 2012. Rome

Fiumicino ranked second, with 136 thousand tonnes handled (-0.6% compared to the previous year).

Highway traffic also showed a fall compared to 2012: a total of about 16 billion heavy vehicles/km was

recorded between January and November, showing a decrease of 2.7% compared to 2012. The maritime

transport of containers in the main Italian ports showed an increase of 4.0% in the first half of the year. The

driving force behind this recovery was Gioia Tauro, the biggest Italian transhipment port, with a 15% growth.

The passenger segment still recorded negative trends, to a more or less pronounced extent, for all means of

transport. Air transport proved to be badly affected by a reduction in the services offered by the traditional

carriers, which were no longer in a position to remain widely represented in the Italian airport system, in

favour of low-cost airlines and increasing competition from high-speed trains on some of the country’s major

routes. During 2013 about 144 million passengers passed through the 38 Italian airports monitored by

Assaeroporti (the Italian association of operators of the Italian civil airports), recording a decline of 1.9%

compared to 2012. Once again, Rome Fiumicino airport ranked first in passenger transport, with more than 36

million passengers (-2.2% compared to 2012), followed by Milan Malpensa airport with about 18 million

passengers (-3.1% compared to 2012). Highway traffic also recorded a decline, which produced about 54

billion light vehicles/km from January to November, corresponding to a decline of 1.7% compared to the same

period in 2012. In the maritime transport sector, the cruise segment reported a growth of about 2%

according to the last Cemar projections.

The traffic results of the main European railway companies

Demand for railway transport in Europe has been at a standstill for several years owing to the unfavourable

economic scenario. According to the provisional data to hand at the moment (source: UIC, Union

internationale des chemins de fer, International Union of Railways), there was a decline in the railway

passenger transport sector (-0.4% compared to 2012), while the fall in the railway cargo transport sector was

even more pronounced (-5.1% compared to 2012) noticeably exceeding the decrease in industrial production

in the Eurozone (-0.8% compared to 2012).

In the cargo sector, in spite of the European Community’s adoption of measures and instruments to

strengthen competition, railway undertakings continued to linger in a phase of stagnation. The Spanish Renfe

was the best among them, with a 16% increase in volumes in tons/km. While there was an overall decrease

in the amount of freight carried by the French Sncf (-1.8%) and by the German DB AG (-5.6%).

Renfe stood out in the passenger sector too, recording a 16% increase in its volumes, expressed in

passengers/km. While there was a decline in passengers/km transported by Sncf (-1.5%) and DB AG (-2.1%).

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2013 Financial Statements 17

RELATIONS WITH CUSTOMERS

“Market Service” – National and International Passenger Segment

2013 was characterised by an improvement in the offer in the Market Service segment and by the gradual

completion of diversification in service levels; the segment’s offer accounted for +13% compared to 2012.

2013 was also characterised by the full operation of competition in the High Speed segment.

Pricing policy for all the products of the Division was subject to a substantial process of change represented

by a new pricing structure, which was presented to customers, with a mixture of flexibility and low cost: BASE

– ECONOMY - SUPERECONOMY. Furthermore, starting from April 2013, the Economy fares were also

extended to the Executive service level, in order to harmonise the range and expand the potential market.

Apart from the price range, fares were offered specially conceived for certain customer targets or particular

occasions related to special events: Speciale 2x1, Bimbi Gratis, CartaFreccia Special.

Promotional offers also continued for customers buying one-day or week-end return and fares with some

seats also on the Frecciabianca trains and Premium and Executive services and the possibility of one change

of time per leg.

The Night + High-Speed offer was maintained for night-train travellers. It offers a special price for a journey

on the High-Speed Frecciarossa and Frecciargento trains combined with a night connection in order to make

travel from one part of the country to another more efficient and more feasible.

During the year the number of customers with Cartafreccia programme loyalty cards exceeded the 2.5 million

threshold. This programme was enriched with exclusive extra benefits, such as the possibility of buying

journeys at special prices.

2013, in consideration of the positive results reported in 2012, saw the confirmation of Trenitalia into the

world of sports marketing with the football clubs that are included in the Frecciarossa network: Juventus,

Turin, Milan, Inter, Bologna, Fiorentina, Rome, Lazio and Naples.

The percentage of medium/long-distance trains in the market Service segment that arrived at their destination

in time or in any case with a delay of 0-15 minutes band remained stable, beyond 96%. The customer

satisfaction data recorded by entities outside the company showed the overall travel satisfaction level, at the

end of the year, equal to 93.6%, showing a slight improvement compared to the results recorded at the end

of 2012.

The main developments in 2013 were:

Frecciarossa

During the year the restyling of the ETR500 fleet were completed for the Frecciarossa train with the

adaptation of the new Executive, Business, Premium and Standard environments.

At the same time work started on the first Bistrò Frecciarossa carriages, which will gradually replace the

present restaurant cars.

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2013 Financial Statements 18

WIFI and UMTS internet services continued being consolidated and improved with the extension of the

entertainment service using the Android system at terminals and enriching the programme by including films

that can be seen free of charge.

High-Speed Frecciarossa services were further boosted on the Turin, Milan and Rome lines, cutting the

minimum journey time between Rome and Turin down to 3 hours 52 minutes. This allowed the Rome to Milan

line to be better served, also as a result of the creation of new fast Bologna-Rome-Naples links and more

services for travellers returning after the week end.

A new Frecciarossa Milan-Adriatic line service was launched during 2013 in order to adjust supply to demand

and 32 more trains now stop at Rome Tiburtina.

The percentage of Frecciarossa trains arriving at destination on time or, in any case, in the 0–15 minutes

band exceeded 98% in 2013. The customer satisfaction data, recorded by entities outside the company,

showed a level of overall travel satisfaction of 96.1% at the end of the year, in line with the results recorded

at the end of 2012.

Frecciargento

During 2013 substantial investments were made in the entire Frecciargento fleet to raise the standards of

comfort and make it easier to use technological services, in fact, the upholstering of the first-class seats on

the ETR 600s and ETR610s in leather (seat, back, headrest and armrest) and of any devices necessary for

providing on-board train multimedia services, was completed. The Frecciargento Portal was opened to

customers on 18 December, containing the same range of services as those on the Frecciarossa Portal: a free-

of-charge WIFI internet connection, multimedia entertainment and travel information.

In 2013 Frecciargento services were further expanded by more trains between Venice/Bolzano and Naples

and more trains stopping at Rome Tiburtina: 36 additional trains on the Rome to Venice service stopped at

this station.

The percentage of Frecciargento trains arriving at destination on time or, in any case, in the 0–15 minutes

band exceeded 98% at the end of the year. The customer satisfaction data showed a level of overall travel

satisfaction of 92.5% at the end of the year.

Frecciabianca

The Frecciabianca product travels on traditional lines and serves three main lines: Padana Cross Road (Turin-

Milan-Venice/Udine/Trieste), Adriatic (Milan-Bologna-Ancona-Bari/Lecce/Taranto) and Tyrrhenian (Rome-

Genoa-Milan). During 2013 the work of opening bar services on all Frecciabianca connections was completed

and the quarterly Frecciaviaggi magazine began to be distributed. The process of the replacement of the

ordinary and ETR460 rolling stock livery with the new Frecciabianca markings continued, while the first two

ETR460 materials were also completed.

The percentage of Frecciabianca trains arriving at destination on time or, in any case, in the 0–15 minutes

band exceeded 94% at the end of the year. The customer satisfaction data showed a level of overall travel

satisfaction of 92.5 at the end of the year.

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2013 Financial Statements 19

International traffic

In June a cooperation agreement was signed with the Swiss Railway Company (FFS). The objective of the

arrangement is to improve transport service quality between the two countries by providing additional trains

into Milan and renewing the rolling stock. It was entered into in order to satisfy growing demand for services

between the two countries after the opening of the San Gotthard and Ceneri Base Tunnels and EXPO 2015 in

Milan.

From the pricing point of view, various promotional offers were made on the Italy-Switzerland EuroCity trains

and the number of seats reserved for the promotional offers on Euronight Thello, Germany Night and Austria

trains was increased.

“Universal Service” Passenger Segment

In line with the provisions of the service contract for long-distance routes, 2013 saw the confirmation of the

model of products defined by the customer, the Ministry of Infrastructures and Transport. This offer provide,

among other things, for some night trains from the South to stop at the Rome hub and from this hub

passengers travelling towards the cities of northern Italy can continue their journey using High-Speed trains.

The Notte + AV (“Night + High-Speed Train”) promotion was confirmed for such travellers, which has been

mentioned above.

The percentage of medium- and long-distance Universal Service and Other trains that arrived on time or not

more than 15 minutes late exceeded 90%, in any case showing a decline compared to 2012, also as a result

of the introduction of new door control technology.

Regional Transport

In 2013 the Regional Transport segment recorded a 3.3 %, increase in revenues from traffic compared to the

previous financial year. This change was mainly linked to the increase in the fares applied by the regional

Governments to offset, albeit partially, the reduction in fees in some cases; these changes entailed a 4.2%

increase in average unit revenues; the production of trains/km fell by 0.8% in consideration of the cuts

applied by some regional Governments. 2014 is the year in which most of the contracts with the Regional

Governments expire. The Regions may, if they decide to do so, extend the present contracts for another six

years with amendments that must be agreed by the parties. In this context, the Emilia Romagna Regional

Government has extended the Service Contract up to 30 June 2015, while starting the tender for the

awarding of railway services, providing for a coverage of about 22 years. In November 2013, the company

submitted its expression of interest for the participation in the tender.

In December 2013 the Veneto, Abruzzo and Tuscany Regional Governments informed that they were to start

tender procedures for the awarding of railway services, while the publication of the call for tenders for the

Friuli Venezia Giulia Region is expected to be published in the first four-month period of 2014. The Service

Contract between the Special Regions (Regioni a Statuto Speciale) and the Ministry for Infrastructures and

Transport has been awaiting renewal for a long time and the company is continuing to provide services on the

basis of requests that the Ministry is confirming from one year to another; the Ministry’s requests also involve

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2013 Financial Statements 20

the extensiveness of the services. At the same time the Ministry has been gradually devolving responsibility to

the Special Regions; in fact, following the programme agreement that was entered into by the Sardinia

Regional Government and the competent Ministries on 7 June 2012, the procedure was completed for the

transfer of financial resources from the Ministry of Economy and Finance to the regional government itself.

The same procedure is being conducted with the Sicily Regional Government. According to the latest

legislative measures, the State remains responsible for the services provided for the Valle d’Aosta Regional

Government and the joint services.

The percentage of regional transport trains that arrived at their destination in the 0-5 minutes band exceeded

92%.

Customer satisfaction data recorded improvements, specifically the customer satisfaction relating to the

overall travel achieved 73.8% in 2013 compared 71.9% in 2012; while, as regards the quality of cleanliness

perceived on board regional trains showed a significant improvement compared to 2012, passing from 50.2%

in 2012 to 54.8% in 2013, compared to 33% a few years ago. This result was achieved after a full review of

the entire cleaning cycle and of the several changes in the contractors made in previous years.

A number of measures have been taken and investments made to make it easier for passengers to make use

of the services:

electronic tickets are also now available on regional trains; it is no longer necessary to print a ticket

purchased on line; it is sufficient to show the rail staff on the train the file received on the passenger’s

computer, smartphone or tablet after the purchase on screen. Electronic tickets allow travel on the

regional train of choice or within the four hours following purchase on the same stretch. May be

purchased from seven days before the journey date to 30 minutes before departure;

the project for the replacement of the former self-service ticket machines, which involved the installation

of 1,265 new machines in main passenger traffic stations, including some with substantial passenger

flows, such as universities and exhibition districts, has been all but completed. The quality and security of

the new self-service machines are far superior to the former generation machines, are very easy for

customers to use and allow the purchase of fares for all company’s domestic services not only in cash but

also by credit or debit card;

the installation of new ticket reading machines has also been completed. These machines, among other

functions, enable new ticket recognition methods to be used, such as for example through the reading of

the bar code and cards with microchips;

the first electronic ticketing system was tried out in Piedmont, as also integrated through cards with

microchips.

Cargo

The transport segment, the railway traffic was affected by the difficult economic situation of the Italian

market and recorded a reduction in international traffic, from and to Germany, Austria, France, Poland,

Slovenia and Hungary, while the domestic railway transport remained almost stable or recorded a minimum

decline.

International railway transport in all the commodity sectors were affected by the crisis to an equal extent, the

most marked declines being in the traditional traffic sector, such as those in the steel and automotive

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2013 Financial Statements 21

industry, while intermodal traffic held well, thanks above all to container movements from and to the ports of

Genoa, La Spezia, Trieste and Livorno.

Domestic cargo transport performed better than the previous year. In the automobile, steel and chemical

sectors the loyalty policies adopted for big customers that stabilised traffic by means of long-term contracts

succeeded in limiting the effect of the crisis in these sectors. In the Raw Materials and Consumer Goods

sectors, the steady increase in transportation for the Large-Scale Retail Trade (Grande Distribuzione

Organizzata) (mineral waters and various consumer goods) managed to offset the serious decrease in the

amount of raw materials handled for industries such as building and manufacturing. There was also a

recovery, however marginal it was owing to poor demand, in the transportation of timber from Austria.

Combined maritime and land domestic traffic fluctuated considerably with a decline over the year as a whole

notwithstanding the creation of new services and the reorganisation of those already existing in order to raise

the quality of the range offered.

Nonetheless, even if domestic transport volumes held, this was not enough to offset the losses on

international traffic due to constant falls in demand.

The complex project of rationalisation of the Cargo Division was pursued, enabling the plan for reorganising

internal corporate processes to be put in hand so that permanent economic stability could be attained in this

division in the shortest possible time.

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2013 Financial Statements 22

INCOME STATEMENT AND STATEMENT OF FINANCIAL POSITION

Income Statement

amounts in millions of Euro

2013 2012 Change

Operating revenues 5,497.8 5,498.0 (0.2)

- Revenues from sales and services 5,272.8 5,279.3 (6.5)

- Other revenues 225.0 218.7 6.3

Operating costs (4,112.5) (4,147.8) 35.3

EBITDA 1,385.3 1,350.2 35.1

Amortisation and depreciation (932.7) (924.6) (8.1)

Write-downs, impairment losses (value write-backs)

(20.8) (7.3) (13.5)

EBIT 431.7 418.3 13.4

Finance income and costs (169.3) (202.3) 33.0

PRE-TAX RESULT 262.4 216.0 46.4

Income taxes (80.9) (9.5) (71.4)

NET PROFIT (LOSS) FOR THE YEAR 181.5 206.5 (25.0)

2013 recorded a Net Profit of Euro 181.5 million compared to a profit of Euro 206.5 million in 2012; in this

regard, it should be noted that the 2012 net profit benefitted from the recognition of deferred tax assets of

about Euro 72 million through profit and loss. Accordingly, net of this effect, the net profit also showed a

sharp improvement. EBITDA passed from Euro 1,350.2 million in 2012 to Euro 1,385.3 million in 2013 with an

increase of 2.6%, the impact of 25.2% on operating revenues in 2013, up compared to 24.6% recorded in

2012.

EBIT also recorded an increase of 3.2% coming to a positive result of Euro 431.7 million compared to Euro

418.3 million in the previous year, with an impact of 7.9% on operating revenues in 2013 (7.6% in 2012).

The elements in the scenario that affected performance in 2013 cannot be overlooked in analysing the net

profit for the year. Particularly to be considered is the persistence of the negative performance of the Italian

and world economy, which had an unfavourable effect on all business sectors, even if to different degrees of

intensity, and Trenitalia’s high-speed train competitor completed its entry into this market in the same period.

Even against this background of greater difficulty, the Company managed to attain important objectives, not

only in terms of the quality of its range, and succeeded in keeping and improving its economic fundamental,

compared to previously years.

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2013 Financial Statements 23

The Company succeeded in carrying out measures that enabled it to keep up its leading position in the High-

Speed train market by continuous adjustments and improvements to the marketing mix, product

differentiation and a pricing policy aimed at meeting the needs of the different categories of customer. The

operations involved in changes to Universal Service Medium- and Long-distance and Regional Transport

services continued in order to adapt them to customers’ needs, in strict compliance with service contracts.

The Cargo Division went on with the complex process that it has been conducting over the recent years for

the rationalisation/reorganisation of its operating structure in order to adapt it to market requirements and lay

the foundations for achieving economic and structural stability. Among market operations, the Cargo Division

is the Company’s business area that has been affected more than others by the serious economic crisis that is

affecting industry in all sectors.

The table below summarises the trend in the two main economic indicators of the company. It should be

pointed out that, for a correct reading of the unit values from previous years, operating revenues and costs of

the table reported below are net of charges-back to Trenord (2010 and 2011), as they relate to clearing

entries, with a substantial zero balance on the income statement. This approach allows a reading that is not

impaired by costs that no longer concern the production of Trains/Km of Trenitalia. This figure points to the

progress that the Company has made towards financial stability, even considering the complex factors

involved in the sectors of which it is composed.

ITA GAAP IAS

The total trains/Km includes trains/Km recorded by other railway companies and realised on the Cargo Division’s foreign networks on a subcontract basis.

15.7

15.2 15.0 15.215.7 15.8 15.9

15.5

15.0

16.8

17.9

18.9

20.2

21.0 21.120.7

12

14

16

18

20

22

2006 2007 2008 2009 2010 2011 2012 2013

Costs for Train Km Revenues for Train Km

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2013 Financial Statements 24

Operating revenues

The table below reports the main indicators relating to the three Business Divisions through which Trenitalia

operates in the relevant markets.

For the National and International Passenger Division, some indicators are reported for “Market services” for

which there are no public grants and, therefore, there are no regulations laid down by service contracts and

“Universal Service” to which the trains which are produced on the basis of the specific service contract with

the Government are allocated.

2013 2012 Delta %

National and International Passenger

Transport Division

Operating revenues (€/mil.) 2,236 2,224 0.5%

Passengers / Km (mil.): 18,862 18,444 2.3%

- of which: Market Service 14,550 13,987 4.0%

- of which: Universal Service 4,312 4,457 -3.3%

Trains /km (thousand) 77,531 71,058 9.1%

- of which: Market Service 53,888 48,098 12.0%

- of which: Universal Service 23,642 22,960 3.0%

Regional Transport

Operating revenues (€/mil.) 2,711 2,689 0.8%

Passengers / km (million) 18,890 19,045 -0.8%

Trains / km (thousand) 154,531 154,785 -0.2%

Cargo transport

Operating revenues (€/mil.) 637 666 -4.3%

Tons / km (million) (*) 14,953 15,412 -3.0%

Trains / km (thousand) (**) 33,115 34,261 -3.3%

Other Revenues/Eliminations (***) -86 -81 6.5%

Total Operating Revenues 5,498 5,498 0.0%

(*) Includes foreign Tons/Km.

(**) Includes Trains/Km from other railway companies and realised in foreign countries.

(***) Eliminations related to the offsetting of interdivision items.

Revenues from sales and services

Revenues from sales and services recorded a slight decrease of 0.1%, coming to Euro 5,272.8 million at the

end of the financial year, compared to Euro 5,279.3 million in 2012. Below are summarized the changes that

occurred by individual type of revenues:

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2013 Financial Statements 25

Description 2013 2012 Change

%

Revenues from Traffic 3,121.6 3,107.1 0.5%

Revenues from Service Contracts 2,021.7 2,022.2 0.0%

Revenues from other transport-related services

129.5 150.0 -13.7%

Total 5,272.8 5,279.3 -0.1%

Revenues from Traffic

Revenues from National and International Passenger Transport:

The medium- and long-distance passenger transport recorded a positive performance in revenues from traffic

of Euro 13.5 million (0.7%) compared to 2012. This performance was characterised by different dynamics

between the different types of service:

Market Services Segment: An overall increase of 1.1%, equal to Euro +17 million, was recorded. This

performance was due to the increase in revenues from “Freccia” products for about Euro 39.4 million,

mainly related to a better offer in the High Speed system in the Turin-Milan-Naples-Salerno section; the

positive performance of the “Freccia” products was partially offset by reduced revenues from services for

which there is little demand and with negative margins, which forced the Company to outline a

rationalization plan; this transaction involved, in particular, some InterCity day trains (Euro -10.8

million); a decline was also recorded in revenues from international trains (Euro -8.4 million) and charter

trains for religious tourism (Euro -3.2 million). The increase in revenues from “Freccia” products is

particularly worthy of mention, despite the full operation of competitors in the High Speed segment

market.

Universal Service: note a reduction of Euro 3.6 million (-1.2%). This reduction was affected by the

gradual shifting of the share, on long-distance routes, to alternative means of transport in line with what

has already occurred in Europe.

Regional Passenger Transport:

Revenues from traffic in the regional transport segment recorded an increase of Euro 26.2 million (+3.3%),

compared to 2012; this change was mainly linked to the increase in tariffs equal to 4.2%; trains/km went

down by 0.2% after the Regional Governments carried out a review of services in order to counter the

growing difficulties in local authority finances. In general terms, however, passenger/kilometres only went

down by 0.8%.

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2013 Financial Statements 26

Cargo Transport:

In 2013 the Cargo Division recorded overall revenues from traffic equal to Euro 478.6 million, with a decrease

of -5.1% compared to 2012. The Company reported an overall amount of 33.1 million trains/km, recording a

decrease (-3.3%) compared to 2012. 4.8 million trains/km were produced abroad, showing an increase of

4.2% compared to 2012. The main business sectors, which follow the relevant product areas, recorded the

following performance:

Traditional Transport Business

In 2013 the Traditional Transport Business recorded a decrease of -4.8% in volumes, compared to 2012, in

terms of trains/km produced, with a decrease of -8.2% in turnover compared to 2012.

Below is an analysis of the performance of the main traditional transport business segments:

Iron and steel segment: 2013 closed with an overall decline of -3.8% in trains/km compared to 2012

and a decrease of -9.5% in revenues compared to the previous year, in particular as a result of a decline

in the production of steel.

Automotive segment: 2013 closed with a reduction of -7.1% in volumes in terms of trains/km, above all

because of lower traffic from and to international routes, with a decrease of -10.4% in revenues

compared to 2012.

Chemical segment: this segment recorded a decline of -9.5% in the overall amount of trains/km

compared to 2012, with a more limited reduction of -2.2% in revenues.

Other sectors - Raw Materials and Consumers’ Goods: the sector of building materials showed significant

turnover losses also in 2013, as did the timber and paper sectors. Railway transport in this sector fell by

-6% over 2012 in terms of trains/km, while the acquisition of new traffic (mineral water and refrigerated

products) partly made up for the decrease in other commodities.

Combined Transport Business

The performance of the European container market was uneven in the extreme, and the trend of railway

traffic in terms of trains/km was therefore also irregular: there was a slight recovery in domestic freight

(+1.1% in terms of trains/km compared to 2012, +0.3% for turnover), thanks to the substantial turnover in

the customer portfolio of the combined maritime traffic, which was sufficient to counter-balance the loss of

traffic on combined land traffic. Turnover held up well in spite of lower international transport volumes (-

12.1% in terms of trains/km compared to 2012), equal to +2.5% compared to 2012. There was a more

pronounced decrease in volumes in the international combined land traffic since it tended to be increasingly

related to the reduction in the volumes handled by international MTOs (Multimodal Transport Operators)

owing to poor demand.

Revenues from Service Contracts

Revenues arising from fees for public service contracts (Regional Governments and the Government)

remained substantially unchanged compared to 2012.

The performance of the various contracts was uneven. No changes were recorded in the fees applied to

service contracts for Medium- and Long-distance and Cargo transport compared to the previous year. While

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2013 Financial Statements 27

fees for services acquired by the State for Special Regions (Regioni a Statuto Speciale) showed an increase of

about Euro 22.6 million as a result of the recognition of revenues related to the performance of some services

which has been formally required by the Ministry of Infrastructure and Transportation.

As regards service contracts with Ordinary Regions (Regioni a Statuto Ordinario), public finance obligations

entailed a reduction of about Euro 15.5 million in the fees, which was partially offset by increased fares that

allowed the Regional governments to meet the commitments undertaken under the contracts; these two

factors did not affect the financial equilibrium of the contracts themselves.

Revenues from Other Transport-Related Services

Revenues from other transport-related services recorded an overall decrease of Euro 20.5 million compared to

2012. This decrease mainly arose from changes in the following kind of fees:

A decrease for accompaniment, handling and drive services attributable to the services provided to

Trenord S.r.l. (Euro -5.4 million);

A decrease in rolling stock maintenance services on account of third parties (Euro -15 million), which was

mainly relating to a reduction in the services provided by the Company’s Technical Head Office in favour

of Trenord S.r.l..

Other Revenues

Other Revenues recorded an increase of Euro 6.3 million compared to 2012.

The following are the main items in which there were changes compared with 2012, mainly attributable to the

treatment of some non-core business items between the two financial years:

an increase in revenues from rolling stock scrapping for Euro 16.1 million;

an increase in fees receivable for Euro 2.1 million;

a decrease in withholdings for travel tickets and reimbursements for Euro 3.9 million;

a reduction in general services and amounts debited to Trenord srl for about Euro 2.6 million;

lower insurance indemnities for Euro 5.1 million.

Operating costs

Operating costs recorded an overall improvement of Euro 35.3 million (-0.9%) compared to 2012.

This effect was due to the dynamics reported below:

Personnel cost recorded an improvement of Euro 59.4 million (-3.0%). This reduction was mainly due to the

combined effect of some factors such as:

lower costs for reduction in average staff (FTE) by 2,105 units, with a positive effect of about Euro

111.3 million;

higher costs of Euro 89.0 million, as a result of an increase in average unit costs following the full

application of the financial terms and conditions of the collective labour agreement;

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2013 Financial Statements 28

higher revenues from reimbursements for personnel seconded to other group companies for Euro 4.5

million;

higher personnel-related costs for Euro 8 million relating to luncheon vouchers and clothing;

higher labour litigation costs for Euro 4.9 million;

lower accruals to the income support fund (fondo di sostegno al reddito) for Euro 33.8 million; for

more details, reference should be made to the 2012 financial statements;

the release of an excess portion of the income support fund (for Euro 11.6 million) following the final

discounting-back of projects to be included in the fund compared to the regulatory rules.

Other costs, net of capitalization for cyclical maintenance and other operations for revamping of rolling

stock, recorded an increase equal to Euro 24.1 million (1.1%). This item was affected by:

higher charges connected to transport services (production and circulation of trains) for about Euro

1.3 million as a result of an increase in the costs of access to the infrastructure (toll and electricity)

for Euro 27.9 million arising from an increase in the commercial offer in the long-distance Market

Services segment, net of the effect of Euro 9 million arising from a reduction in the tolls on the High

Speed routes starting from September; this increase was almost fully offset by lower costs for rolling

stock hire, equal to Euro 16.2 million, which were mostly due to the termination of a contract in

2012, regarding the hire of the ETR 610 rolling stock of Cisalpino, following the acquisition of the

same that took place in accordance with the agreements which provided for the dissolution of

Cisalpino;

lower costs for the purchase of fuels, equal to Euro 3.4 million, as a result of both lower consumption

and lower prices and costs for the ferry services provided by the infrastructure manager, equal to

Euro 2.4 million;

lower shunting costs of about Euro 14 million in the Cargo segment after the rationalisation of the

train formation process;

higher costs of on-board train services (Euro +17 million) arising from an increase in costs for

catering services (Euro +15.4 million) as a result of both an increase in the number of trains (+12%

of trains/km on Market Services trains compared to 2012) and an increase in the passengers

transported (+4% of passengers/km on Market Services trains compared to 2012), to which welcome

drink costs are correlated; higher costs of on-board train services were partially offset by a reduction

in the night train steward service, mostly due to the decrease in the number of trains (Euro -2.3

million);

higher costs connected to maintenance and cleaning of the rolling stock for Euro 2.6 million;

higher sales and distribution costs for about Euro 11 million, mainly attributable to the sales fees

payable to travel agencies for Euro 3.2 million, to external communication expenses for about Euro

1.6 million and to the costs of services for passengers with reduced mobility for about Euro 3.5

million;

the remaining costs recorded a net overall increase of about Euro 6.2 million compared to 2012. An analysis

of these costs shows that the increase was mainly due to higher expenses for IT services for about Euro 7

million following the gradual entry into service of new systems.

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2013 Financial Statements 29

Amortisation and depreciation

Amortisation and depreciation increased by Euro 8.1 million. This change was determined by amortisation

relating to the capitalization of value-increasing maintenance for the 2013 financial year, which accounted for

about Euro 54.2 million; the remaining change was due to the combined effect of new investments and the

completion of the amortisation and depreciation of some assets.

Impairment losses

Impairment losses increased by Euro 13.5 million; this change was mainly due to an increase in the write-

downs of rolling stock (Euro -10.8 million) and workshop equipment (Euro -2.5 million).

Finance income and costs

Finance income and costs recorded an overall improvement of Euro 33.0 million. This result was attributable

both to finance income, which showed an improvement of Euro 11.8 million and to finance costs, which

recorded a decrease of Euro 21.2 million compared to 2012.

Finance income benefitted from exchange differences of Euro 16.7 million, mainly correlated to the

implementation of a decrease in the Share Capital of Cisalpino AG down to CHF 100,750 (a reduction of CHF

162,399,250), which took place on 16 January 2013, following the resolution passed by the Shareholders’

Meeting at the end of 2012. Exchange difference gains were partially offset by reduced dividends from the

subsidiary TX Logistik for Euro 7.5 million. Finally, there was a positive recognition of the time value

component of the derivatives for about Euro 2 million.

The performance of finance costs connected to the debt servicing on medium- and long-term loans recorded

an improvement of Euro 6 million. These lower costs were attributable to reduced average cost of debt, which

passed from 2.87% in 2012 to 2.75% in 2013. This reduction was due to the fall in market interest rates

which enabled the Company to seize the financial benefits on both the short-term and the medium-term debt

components, whose hedges, collars and caps allowed the capitalisation of the downward trend in interest

rates. Furthermore, finance income and costs benefitted from a reduced interest cost of the severance pay for

about Euro 18.6 million, arising from a reduction in the rate applied, which passed from 4.05% to 2.05% and

from a debt reduction, following the considerable outs of personnel in 2013. Furthermore, there was an

increase in the write-downs of equity investments for Euro 9.9 million, which was fully attributable to the

adjustment made to the book value of the equity investment in order to bring it into line with the equity of

the subsidiary Thello S.a.S. and reduced interest on trade and sundry payables for about Euro 2.1 million.

Income taxes

The tax burden for the period increased by Euro 71.4 million. This increase was correlated to the following

dynamics:

a negative change for Euro 75.0 million arising from the assessment of deferred tax assets in the

2012 financial statements against tax benefits quantified for the subsequent financial years. As

reported in the previous financial statements, the 2012 financial year confirmed the ongoing stability

of Trenitalia’s results and that it had almost completely finished its reorganisation process. Therefore,

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2013 Financial Statements 30

as it reported substantial previous tax losses which could be recovered without any time limits

according to the provisions of law, Trenitalia recorded an appropriate value of deferred tax assets of

Euro 72 million. In fact, the Company adopted an extremely prudent policy in recognising this credit

item in profit and loss on the basis of the 2013 budget and the 2014 plan, only assessing

recoverability over this timescale. In 2013 this item was adjusted on the basis of the new business

plan, again keeping to the same two-year time horizon for recovery, resulting in a negative effect of

Euro 3 million on the tax burden arising from the recognition of deferred tax assets assessed for

2013 in profit and loss (Euro 44.0 million) and the estimated amount for 2015 (Euro 41.0 million).

There were no significant changes in the amount of the income tax for the year compared to the

previous year, even if, looking into details, it is seen that the IRAP (Imposta Regionale sulle Attività

Produttive, Local Tax on Production Activities) tax liability was about Euro 2.7 million lower, while the

IRES (Imposta sul Reddito delle Società, Corporate Income Tax) tax liability increased by about Euro

2.9 million as a result of changes in the related taxable basis;

Finally, there were positive changes of Euro 5.5 million arising from the recognition of adjustments to

estimates of taxes from previous periods which were settled with the submission of the related

returns during 2013.

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2013 Financial Statements 31

Reclassified balance sheet

Amounts in millions of Euro 31.12.2013 31.12.2012 Change

ASSETS

Net current operating assets 952.4 781.2 171.2

Other net assets (liabilities) (536.4) (297.0) (239.4)

Current assets 416.0 484.3 (68.3)

Property, plant and equipment 8,991.6 9,053.7 (62.1)

Equity investments under non-current assets 144.2 195.7 (51.5)

Net fixed assets 9,135.8 9,249.3 (113.5)

Severance pay (952.2) (1,094.2) 142.0

Other provisions (267.1) (387.4) 120.2

Severance pay and Other provisions (1,219.3) (1,481.6) 262.2

TOTAL NET INVESTED CAPITAL 8,332.5 8,252.1 80.4

COVERAGE

Short-term net financial position 1,068.8 1,478.4 (409.6)

Medium/long-term net financial position 5,172.2 4,860.7 311.5

Net financial position 6,241.0 6,339.1 (98.1)

Equity 2,091.5 1,912.9 178.5

COVERAGE 8,332.5 8,252.1 80.4

Net Invested capital

Net Invested Capital increased by Euro 80.4 million compared to 31 December 2012. This increase was due to

a decrease of Euro 262.2 million in the Severance Pay and Other provisions, which was partially offset by a

reduction of Euro 113.5 million in net fixed assets and a reduction of Euro 68.3 million in current assets.

Net Current Operating Assets: Net Current Operating Assets increased by Euro 171.2 million; this change

was due to the movements in balances described below:

a decrease of about Euro 221.9 million in trade receivables, which was attributable to a decrease in

receivables from the Ministry of Economy and Finance (Euro -112.1 million), as well as in receivables

from Regional Governments (Euro -75.4 million); finally, there was a reduction in other trade

receivables (Euro -36 million). There was a substantial decrease in overdue receivables from Regional

Governments (Euro -117.4 million) and an increase in those due but not overdue (+42.4%). Despite

the situation improved slightly, the amounts owed by some Regional Governments were still at a no

longer physiologically acceptable level in spite of the regular transfers of funds to the Regional

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2013 Financial Statements 32

Governments from the Ministry of Economy and Finance during 2013. At 31 December 2013 the overall

overdue receivables from Regional Governments amounted to about Euro 689 million compared to

Euro 793 million in 2012. As well as having taken appropriate legal steps for the collection of its credit

in order to safeguard its assets, the Company arranged repayment plans with some Regional

Governments and constantly monitored their compliance with these plans. This should result in a

further gradual return of the Company’s exposure to within acceptable limits;

the increase in stock of about Euro 26 million, in particular with reference to the component of

serviceable materials, while that referred to spare parts remained substantially unchanged;

trade payables reduced by Euro 367.2 million; Euro 195.6 million of this changes was due to the

financial settlement of the debt to Cisalpino incurred mainly in order to purchase rolling stock (ETR 610

and ETR 470). The amount was settled by offsetting it against a receivable of Euro 117.4 million

arising from the assumption of the financial debt to Eurofima and the credit consisting of the amount

of the reduction in the relative share capital (Euro 65.7 million) and the consequent payment of the

difference; furthermore, there was a decrease in payables to RFI S.p.A. (Euro -80.2 million).

Other Net Assets (Liabilities) decreased by Euro 239.4 million, mainly as a result of:

a reduction of about Euro -117.4 million in the receivable from Cisalpino AG, following the financial

settlement of the takeover, through FSI, of the Eurofima loan for the purchase of the rolling stock of

Cisalpino AG referred to in the Split agreement signed in December 2012;

a decrease of Euro -35.7 million in receivables for deferred tax assets, which was mainly linked to the

adjustment of derivatives at fair value ;

an increase of Euro 84.1 million in payables to personnel, due to the amount transferred from the

corporate restructuring fund (bilateral fund) for projects to be implemented.

Net Fixed Assets: the performance of Fixed Assets recorded a net decrease of Euro 113.5 million, due to a

reduction in non-current assets, which was mainly attributable to net increases in amounts accounted for in

relation to the investments for the period (Euro 892.6 million), on one hand, and on the other, to

amortization, depreciation and write-downs (Euro 953.5 million) for the period; furthermore, the net value

was affected by a reduction in the value of the equity investment in Cisalpino AG (Euro -50.5 million) as a

result of the capital decrease resolved by the company in December 2012.

Severance Pay and Other Provisions: the Provisions reduced by Euro 262.2 million; this change was due:

a reduction of Euro 142 million in the Severance Pay and Other Employee Benefits, arising from the

use of the Severance Pay for Euro 121.1 million as a result of the termination of employment

contracts and advances paid, which was offset by accrued interest cost of Euro 23.2 million in the

year, as well as by actuarial gains of Euro 44.1 million;

a decrease in other provisions by about Euro 120.2 million, mainly due to the reclassification as

payables of the portion of the industrial restructuring fund for projects which had already started, for

Euro 124.9 million, as well as to the release of Euro 11.6 million in profit and loss, as commented on

above, which were partially offset by an accrual of Euro 6.4 million for write-downs of equity

investments and by an increase of Euro 11.3 million in the provision for deferred tax liabilities.

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2013 Financial Statements 33

Net Financial Position

The Company’s net financial position came to Euro 6,241.0 million, recording an overall improvement of Euro

98.1 million in 2013. In 2013 current operations generated a positive cash flow of Euro 770.3 million. Current

operations benefited from the favourable effects of a partial improvement in payments from the Regional

Governments and from the State which cut down the amount of overdue debts.

The cash flow from current operations was used for Euro 532.1 million for investments and for Euro 153.3

million to serve the financial facilities, and benefitted from an amount of Euro 14.2 million from investment

grants, which was offset by the payment of a VAT of Euro 17 million for customs clearance in connection with

the purchase of the ETR 610 trains from Cisalpino.

As regards medium- to long-term financial operations, during September a loan of Euro 600 million from the

Parent Company taken out during 2007 was repaid on its natural expiry date.

After the issue of the MTN programme bonds, the Company took out a loan from the Parent Company,

totalling Euro 600 million, which was disbursed in two instalments, one of Euro 500 million in August and the

other tranche of Euro 100 million in December, in order to support its investment programme.

Equity

The Equity reported in the reclassified statement includes, with respect to the Statutory Equity, payables

arising from hedging financial instruments (derivatives); therefore, for avoidance of doubt, below is reported

the statement of reconciliation between equity and the statutory equity.

31.12.2013 31.12.2012 Changes

Reclassified Equity 2,091.5 1,912.9 178.5

Payables for derivatives included under equity (174.7) (295.5) 120.9

Statutory equity 1,916.8 1,617.4 299.4

Equity increased by Euro 178.5 million. This change was due to the result of operations for the period, equal

to about Euro 181.5 million and to an increase of Euro +118 million in the Cash Flow Hedge reserve and

Actuarial Gains/Losses, which was offset by a reduction in payables for derivatives, equal to Euro 120.9

million.

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2013 Financial Statements 34

HUMAN RESOURCES

The size of the company’s workforce reached 32,489 units at the end of the period; the statement below

reports the most important information:

Employees Middle

managers Managers Total

Numbers as at 31.12.2012 30,446 4,106 267 34,819

Increases 153 62 6 221

Decreases (1,909) (622) (20) (2,551)

Numbers as at 31.12.2013 28,690 3,546 253 32,489

With the exception of transfers between companies, recruitment related almost exclusively to staff involved in

maintenance activities within railway operations.

Decreases recorded in the year were due to ordinary employment termination, to projects being realised in

relation to the activation of the Income Support Fund (Fondo di Supporto al Reddito) and intergroup

transfers.

Below is reported the trend in the numbers of staff members in the last years:

Trenitalia (*) 2006 2007 2008 2009 2010 2011 2012 2013

FTE 50,183 49,243 46,273 43,737 40,925 37,549 35,770 33,665

(*)All the scenarios were based on proforma data in order to make them comparable; specifically: - 2006: the perimeter was adjusted as a result of the demerger of the Handling and Facility branch and the transfer of the former

Lombardy Region branch. - 2007: the perimeter was adjusted as a result of the demerger of the Handling branch and the transfer of the former Lombardy Region

branch.

- 2008/9/10: the perimeter was adjusted as a result of the transfer of the former Lombardy Region branch.

The Income Support Fund has the purpose - for the companies in the FS Italiane Group which are not

provided with the traditional “social shock absorbers” - to implement the actions envisaged under article 59,

paragraph 6, of the organic law no. 449 of 1997, aimed at encouraging the reorganization and restructuring

of the Group itself in consideration of the process of restructuring and development of the railway transport

system.

As highlighted in the previous financial statements, a trade union agreement was reached nationally in

November 2010 which allowed trade union procedures to be launched in 2010 and 2011 at local level and

agreements to be reached for the identification of surplus workers to be made redundant from March 2011

through the activation of the special benefits of the Fund; the special measures of the fund relating to 2011

and 2012 have been described in the respective Reports on Operations.

During July the FS Group and the Trade Unions signed an agreement to start the negotiating procedures for

terminations of employment and access to extraordinary benefits from the income and employment support

fund for the employees of the FS Group companies that had have paid the minimum number of contributions.

Extraordinary payments from this Fund in connection with the process of the Company’s production

reorganisation were made to 936 persons from all business sectors. 872 of these received benefits from the

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2013 Financial Statements 35

fund during the same year as a result of projects that had been completed and 64 more were helped in

connection with the tail-ends of 2012 projects.

An intense liaison activity continued with INPS (Istituto Nazionale della Previdenza Sociale, National Social

Security Institute) offices continued for the operation of the Fund’s operational procedures for allowing access

to the Fund and the payment of special benefits at the scheduled times. Starting from December 2012, INPS

started updating the social security positions of former employees of the Company that had received these

special benefits, applying rules that envisage:

the adjustment of retirement requirements to increased expectation of life from 2013 (law no.

122/2010, article 12, paragraph 12-bis);

the postponement of the payment of pensions to persons who have paid contributions for at least 40

years starting from 2012 (law no. 111/2011, article 18, paragraph 22-ter);

the gradual increase in the pensionable age of 60 for women starting from 2014 (law no. 148/2011,

article 1, paragraph 20).

The financial effects of the review of these social security positions and the additional costs estimated in order

to implement the programmes that are to be carried out in accordance with the Plan have been recognised in

the accounts.

Trenitalia training activities

Training has gained importance as a tool for passing on knowledge, enhancing experience and developing the

skills of staff, for focusing and orienting activities on themes relating to rail transport and operational safety,

support for company processes and professional families.

The 2013 Trenitalia Training Plan gave rise to about 138,500 man/days of training (145,000 man/days of

training in 2012) with about 128,000 days of attendance (126,000 days of attendance in 2012). The aim of

the Plan was to support the attainment of the Company’s business targets, focusing attention on issues

related to the Business Plan, namely:

developing competitiveness and the market, both national and international;

ensuring safety at work and the protection of the environment;

to enhance attention to customers in a free market environment.

Contributions from Fondimpresa totalling Euro 3.7 million were used to fund training. This is the entire sum

provided by this body for the training projects to be realised before the end of the year.

Below are the details relating to the areas of intervention of Trenitalia training activities in 2013:

Company training: training which presents the company to new graduates, new recruits with

professional experience and trainee Train Service Managers (Capi Servizio Treno) when they join

the FS Italiane Group.

Managerial training: training on typical managerial, behavioural and relational skills. It is aimed at

managers and at other roles that need support or accompaniment in moments of growth.

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2013 Financial Statements 36

Technical/vocational training: training measures aimed at giving staff the technical/vocational

skills, both practical and theoretical, that are essential to be able to carry out their working

activity, such as technical and vocational qualifications and updates for train driving, checking,

accompanying and training staff, training of Instructors and Tutors and training for workplace

safety with particular reference to certification of managers and the staff in the prevention and

protection service.

In connection with this, sales personnel were given training courses when the new PICO (Piattaforma

Commerciale Integrata, Integrated Sales Platform) sales system came into service and an e-learning refresher

course regarding Legislative Decree 231 was arranged in order to inform all staff of the new developments in

this sphere and of the consequent changes to the code of ethics.

Safety at work

The Group’s objective of reducing the number and rates of accidents at work entailed a range of

activities performed at central and local level:

special attention is now paid to near misses: the internal procedure was revised so that all accidents

and near misses are thoroughly and systematically analysed by the Prevention and Protection

Service (SPP - Servizio Prevenzione e Protezione) function in consultation with workers and the

Workers’ Safety Representative (RLS - Rappresentante dei Lavoratori per la Sicurezza). With these

new methods, prompt corrective and preventive action will be taken in relation to both actual

accidents and near misses;

reports on accident trends, classified under 7 macro-causes, are drawn up and circulated periodically and

compared with the corresponding period the previous year;

setting work accident indicators as specific corporate and divisional targets (absolute number of

accidents, incidence rate, severity rate) and monitoring them;

a campaign was launched to inform personnel and enhance their awareness of safety issues and of the

need to provide correct and complete information in reports of accidents;

training continued, paying special attention to health and safety at work management systems in addition

to providing the various legally obligatory courses.

The main aspects in which training was given were work-related stress, explosive atmospheres and

pressurised containers.

The activities carried out allowed the preset corporate targets to be exceeded for the reduction in the

number of accidents (- 5%) and incidence rate (- 2%), as shown below.

Unfortunately a fatal accident also occurred in 2013, in Naples during a shunting operation, caused by

human error; no corporate liability emerged even after a public prosecutor’s investigation. In any case

the Company set up training sessions for the detailed discussion of shunting activities, together with the

operational risks attached to them.

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2013 Financial Statements 37

Type 2013 2012 Change

Number of accidents

(> 3 days, indemnified by INAIL or still to be defined,

excluding accidents while commuting)

1,307 1,493 - 12.46

%

Incidence rate

(Number of accidents X 1000 / average number) 38.68 41.61 -7.06 %

Of which Number of fatal accidents 1 1 0

ENVIRONMENTAL POLICY AND SAFETY

Integrated system for quality, environment and safety at work

During 2013, the activities concerning safety and environmental protection were mainly aimed at the

following:

Training projects implemented in 2013 were aimed at employees dealing with environmental issues, with

the aim to train experts to be able to handle environmental issues autonomously. This entails applying

the regulations governing the sector, acquiring the necessary technical and legal environmental expertise,

specifically: with regard to environmental law, emissions into the atmosphere, ozone-depleting

substances, the greenhouse gas effect, the defence of the soil, water protection and water discharges,

waste management, reclamation, environmental damage, energy, noise and electro-smog, offences

against the environment, hazardous substances and fire prevention.

Emission Trading System: at the end of 2013 Trenitalia had 7,869 emission rights filed with the EU

Registry of Quotas and Emissions. The unit value of a quota was Euro 4.84 as of 31 December 2013. No

emission rights were purchased in 2013 because the power stations released a lower number of tons of

CO2 into the atmosphere than they were allowed (emission rights). The third period of the

implementation of the Emission Trading Directive began on 1 January 2013. This period will last until

2020: the number of allowances issued to installations free of charge was considerably reduced.

After a number of studies conducted into energy efficiency measures during the past few years, an

Energy Service Company (ESCO) was appointed to carry out the procedure for obtaining Energy

Efficiency Certificates (TEE, Titoli di Efficienza Energetica) and the proposals in the “Metering Project and

Programme” (Progetto e Programma di Misura) for the workshops in Verona, Foligno and Foggia were

already presented to and approved by the competent authorities (ENEA and GSE). After the necessary

assessments and energy analyses, procedures were started for the installation of PV panels and energy

efficiency improvements at four pilot plants.

The collection for recycling of special waste assimilated to urban waste was extended not only to all office

units but also to all workshops, setting each division a target for the reduction of the special waste sent

for disposal from maintenance and services.

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2013 Financial Statements 38

Continuous attention was paid to noise pollution problems. A number of measurements were taken in

many of the Company’s production sites (e.g. the Milan Martesana yard, the Bari and Lecce plants, the

Lecce Surbo cargo station, the Trento plant, the Naples High-Speed train area, etc.). A plan for the

reduction and abatement of noise at Milan Martesana was sent to the Ministry for Environment and

Territory, the Lombardy Regional Government and Milan City Council in June and a contract was signed

with Italcertifer for taking acoustics measurements in order to retain the certificate that approves the

rolling stock at present in service.

Trenitalia and the environment on www.trenitalia.com: this is a new section of Trenitalia’s website

dedicated to environment and sustainability issues, which gives information on the most important steps

that Trenitalia takes to reduce the impact of its activities on the environment, details of commercial

arrangements that encourage intermodality between the train and other sustainable means of transport

and provides Ecopassenger customers with an on-line calculator which estimates and compares the

impact of their journeys on the environment in terms of the greenhouse gases and polluting emissions

produced.

Operational safety

The corporate Operational Safety Policy contains themes that commit the Company to observe the binding

requirements that are specific to the sector and, at the same time, the findings of the internal Operational

Safety Management System (Sistema di Gestione della Sicurezza di Esercizio, SGSE) evaluation process in a

process of continuous improvement. Appropriate safety macro-objectives are taken from among the issues

referred to in the Policy, and prevention and mitigation action and measures are selected each year that are

introduced into the Company’s annual Safety Plan, in which the Policy is also published. In accordance with

the SGSE procedures, the Policy is reviewed every year on the basis of developments inside and outside the

Company. The 2013 Policy confirms the general principles and the commitments already contained in the

2012 Policy and considers the developments that have occurred in the process of the reorganisation of the

regulatory framework governing operational safety, promoted and coordinated by the National Railway Safety

Agency. In Decree 4/2012, ANSF laid down rules for railway operators’ activities and responsibilities in this

process of reframing operational regulations in the light of regulatory, technical and scientific progress.

Considering the scope of this new law and the commitment it requires, the Company’s management included,

among the commitments that it declares in the Policy, that of fostering, “... the implementation of procedures,

instructions and requirements with the aim of regulating the adoption of mandatory rules and standards by

operating units in line with the safety guidelines issued by ANSF, also in the light of Decree 4/2012”

(regulatory reorganisation)...".

In the view of the Company, the safety of railway operations is the binding and fundamental basis for all its

activities and is therefore a strategic area for its business development.

The safety of railway operations is mainly assured by conformity to mandatory standards and rules. The

scrupulous observance of rules is, above all, a cultural value underlying the activities of the Company’s

personnel, who have always seen safety as their ethical duty in their day-to-day work.

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2013 Financial Statements 39

The compliance model that has been adopted requires all Executives, Middle Managers and operational

personnel, at their different levels, to assume their responsibilities in order to ensure the safety of travellers,

personnel and third parties in addition to that of things and the environment.

Specifically, the Company deems it indispensable:

to see that the human resources responsible for the SGSE system work in close contact with

resources responsible for operational processes with the objective of the continuous improvement

of their respective parts of the system, “...in order to tend towards achieving zero accidents,

considering the evolution of regulations, technical and scientific progress and giving priority to the

prevention of serious accidents” (ANSF Decree 4/2012, Article 2). For this purpose safety

information is managed transparently, completely and promptly, unequivocally stating the level at

which instances of non-compliance have been ascertained, establishing the causes, putting the

appropriate corrective action and measures in hand and verifying that they are effective, ensuring

that all action taken is traceable by all those concerned;

to exploit the human factor as a vehicle to spread the awareness among the personnel of their

own roles in the safety process and of the need to prepare for the mission they are to undertake,

using the following means:

- ensure that the Policy is circulated among all personnel as widely and efficiently as possible;

- plan continuous training and refresher sessions for all the personnel and all those involved

in performing the service by means of a constant process, managed and organised in such a

way as to make the best possible use of the operators’ own know-how;

- involve personnel at all levels, in addition to their representatives, with a view to the

acceptance of all suggestions that help to create a virtuous circle of operators’ experience in

order to attain the corporate and Policy safety targets;

- see that the greatest possible attention is paid to the awareness and growth of the

Company’s human resources as a decisive factor in providing transport safety.

to foster investments in technology that meets the highest international standards;

to ensure that rolling stock is correctly and promptly serviced through the coordinated supervision

of all the operational, technological and logistic variables of the maintenance process;

to promote the implementation of procedures, instructions and directions to regulate the adoption

of mandatory rules and standards by operating units according to the guidelines laid down in this

matter by ANSF, also in the light of Decree 4/2012 (regulatory reorganisation) and also to foster

a cycle of the continuous improvement of safety performance;

to stimulate the risk assessment culture:

- when substantial changes (operational, organisational or technical) are made to the railway

system;

- when the risks attached to operational activities are periodically monitored in order to take

appropriate mitigation measures, if necessary;

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2013 Financial Statements 40

- encourage the development of IT systems to support operational safety processes and

activities in order to simplify their operational procedures and cause them to be more

effectively traceable.

The Company’s commitment to safety also envisages cooperation with the Infrastructure Manager and the

other railway operators (railway companies, suppliers, entities in charge of maintenance, keepers, etc.) in

conformity to the Italian and European regulatory framework and its evolution.

Safety on board trains

The FS Italiane-Polfer (Polizia Ferroviaria, Railway Police) agreement, now fully implemented, has allowed

increased Police presence and checks on board trains and in stations in order to guarantee customers and

workers a safe trip that is free, as far as possible, from petty crime.

Prevention measures also involved the most critical trains, i.e. night trains and very busy urban trains.

From the point of view of technology, video surveillance appliances are being installed on rolling stock; these

were in any event envisaged when the material was first built.

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2013 Financial Statements 41

INVESTMENTS

The commitments reported in the Trenitalia’s 2014-2017 Investment Plan are equal to about Euro 4,040

million. 80% of said commitments, equal to Euro 3,280 million, arises from the portfolio of investments in

progress, made up of about 350 projects.

These commitments do not include value-increasing maintenance capitalisations. The capitalisations estimated

for each year are equal to:

2014 Euro 805 million; 2015 Euro 1,551 million; 2016 Euro 1,019 million; 2017 Euro 666 million.

On the basis of the current planning, an amount of about Euro 450 million is still to be accounted for after

2017.

2013 accounting

The amounts entered in the accounts in relation to the investments made in 2013 were equal to about Euro

950 million, whose breakdown, compared to 2012, is reported in the following table:

(amounts in millions of euro)

2013 2012

Changes

Absolute %

Purchasing *

310

436 (126) -41%

Revamping

113

138 (25) -18%

Rolling Stock

423

573 (150) -26%

On-board Technology

10

54 (45) -82%

Plants & other

46

45 1 1%

Development

0.03

1 (0,8) -96%

Information Technology

74

79 (5) -7%

TOTAL

552

752 (201) -27%

Value-increasing Maintenance

398

369 29 8%

(*)the item “Purchasing” includes: contract advance payments equal to Euro 163.2 million and recoveries of advances paid for Euro 32.8 million in previous financial years. These changes mainly relate to advances paid out against

purchase of new rolling stock.

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2013 Financial Statements 42

It should be noted that in 2012 seven ETR 610 trains were bought from Cisalpino, after the closure of the

joint venture with SBB, for a value of Euro 149 million; therefore, net of this acquisition, the 2012 value of

accounting would have been equal to Euro 287 million. Furthermore, the orders for the purchase of 150 E464

electric locomotives for regional transport were completed during 2013 and the process of the reorganisation

of the present High-Speed trains according to a model based on a range of four levels of service was also

terminated in 2013. The on-board technology project was practically concluded during the year as well.

Below is the breakdown of investments by Division/Management:

(amounts in millions of euro) 2013 2012 Changes

Absolute %

Passenger Division 189 333 (144) -43%

Regional Passenger Division 299 310 (11,0) -3.55%

Cargo Division 10 9 1 15%

Other 54 101 (47) -47%

TOTAL 552 752 (201) -27%

Value-increasing Maintenance 398 369 29 8%

Passenger Division: investments included accounting of Euro 67 million for work progress reports for the

purchase of the new High-Speed “Frecciarossa 1000” electric trains. Dynamic tests are in progress for

approval.

The project to renovate the present High Speed trains, in accordance with the new product offer model based

on four new levels of service, accounted for Euro 22 million. The last 14 trains were refurbished during the

year. About Euro 2 million was accounted for on upgrading the signalling and energy supply system.

The layout of the ETR 500 Bistrot coach was concluded. About Euro 6 million was accounted for on this

project and 15 carriages were delivered.

Work continued at the Milan Martesana facility, Euro 1.1 million, and at the Vicenza factory with the objective

of reorganising and developing maintenance sites to ensure maintenance activities on the High Speed fleet.

Tender procedures were started for the construction of the new “IMC Torino Smistamento” current

maintenance plant, which provided for maintenance activities to be allocated to a single site, both as regards

the Passenger Division and as regards the Regional Transport according to efficiency criteria. In 2013 about

Euro 1.4 million was accounted for.

Some corrective work was carried out on the ETR 485 trains, mainly on the electricity circuits in order to

enhance their reliability in service, accounting for Euro 4.8 million.

The amounts accounted for in relation to the upgrading of coaches and locomotives for the offering relating to

the “Frecciabianca” trains were equal to Euro 39 million. Adjustments were made to the control units for the

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2013 Financial Statements 43

doors of 232 carriages, accounting for Euro 9.4 million, and work continued on upgrading on-board systems

and internet for an amount of Euro 6.8 million.

An amount of Euro 4.3 million was accounted for as regards work on station environments, relating to

improvements to the areas in which ticket offices, customer assistance and Freccia Club rooms are located.

The other investments on the plants were the enlargement of the Milan Greco maintenance installation for

Euro 1.3 million, and the upgrading and reorganisation of the Naples installation for Euro 1.1 million. An

amount of about Euro 1.6 million was accounted for on renewing equipment in various plants.

Regional transport: the regional transport fleet expansion programme continued according to the

commitments in the service contracts with the Regional Governments.

The purchase of the new single-deck Coradia-type EMU trains accounted for Euro 44 million and deliveries

were completed in relation to the orders in progress for E464 locomotive, which accounted for Euro 15.4

million.

Activities continued for the purchase of Double Decker coaches: in 2013 an amount of about Euro 150 million

was accounted for and 108 coaches were delivered. The Medium-distance coach face-lift programme was

continued, which will increase comfort and conform the trains to safety standards; the project accounted for

an amount of Euro 31 million.

The Low-Floor carriages were refurbished, Euro 2 million, and the transformation of the UIC-X carriages into

driving van trailer mode continued, Euro 1.4 million. Other work involved door controls for Euro 1.5 million.

After the negative outcome of the tender for the purchase of double-decker EMU trains owing to the

unsustainable cost, it was agreed with the customers Regional Governments to replace this type with trains

composed of traditional double-decker carriages and 464 locomotives.

In this regard, an option was exercised for the purchase of additional 150 Double-Decker carriages and 29

E464 electric locomotives.

Three FLIRT trains were purchased for the Autonomous Province of Bolzano, accounting for an amount of

Euro 12.5 million.

In the Liguria Region work was in progress for strengthening the maintenance network in accordance with the

new organisational model which envisages freight train measures, allowing the reduction in the activities of

shunting and putting together trains. The project for the reorganisation of the maintenance network in the

Veneto Region continued, accounting for an amount of Euro 1.4 million.

The renewal of the self-service ticket issuing and validating machines continued, accounting for an amount of

Euro 15.5 million. An amount of Euro 3.9 million was accounted for on the STIMER (Sistemi di Tariffazione

Integrata Magnetico-elettronica Regionale, Integrated Regional Magnetic-Electronic Fare Systems) project,

while an amount of Euro 2.1 million was accounted for on the interoperability of the electronic ticketing

systems. The pilot Regions were Piedmont and Emilia Romagna.

Furthermore, an amount of Euro 0.6 million was accounted for on increasing the number of washing platforms

at Rome Tuscolana, Cassino and Formia, while an amount of Euro 2.7 million was accounted for on the

renewal of equipment and the maintenance of the infrastructures of various installations.

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2013 Financial Statements 44

Cargo: an amount of about Euro 1.8 million was accounted for in relation to the final activities for the

purchase of wagons. Activities continued in relation to the process of adapting the fleet of wagons to the

technical regulations concerning “coupling parts” of rolling stock which must comply with the requirements of

interoperability.

Work on permanent ways, track replacement and switches was in the final phase, as also work on the current

maintenance plants at Bologna San Donato and Verona Santa Lucia to restore conditions of safety in handling

rolling stock, which accounted for Euro 1 million.

2013 saw the definition of the transfer of some assets and activities concerning the “Chemistry &

Environment” process from FS Logistica to Trenitalia. The transfer involved containers, wagons and junctions

for an amount of Euro 1.3 million.

Technical Head Office: most of the work was done on the technological upgrading of Workshops for Euro 4

million and the renewal of equipment for Euro 5.4 million.

Investments across business areas: during 2013 supply contracts were closed and the credit and debit

items were settled with the supplier in connection with the SCMT (Sistema Controllo Marcia Treno, Train

March Control System) equipment; these contracts also included all work on the STB System (Sistema

Tecnologico di Bordo, On-Board Technologic System), such as the DIS black box, CAB Radio and GSM-R

appliances. A new project was started under the responsibility of the Regional Passenger Division for

completing the STB installations on the remaining 370 rolling stock. An amount of about Euro 10 million was

accounted for on this during the year.

As regards ITC investments, work was in progress in relation to the implementation of the PICO platform

through the integration of the various sales channels and the Infomobility development, Euro 10.4 million,

distributed between the Passenger Division for Euro 8.1 million and the ITC Division for Euro 2.3 million.

Activities continued in relation to the “CRM – Customer Relationship Management” for integrated customer

management and in order to offer a high-quality service level on a multi-channel basis. In 2013 amounts were

accounted for Euro 5.3 million, of which Euro 2.8 million for the Passenger Division and Euro 2.5 million for

the Regional Passenger Division.

Trenitalia set up an Integrated Sales System Program (Programma Sistema Commerciale Integrato) to

oversee and operate the different company sales platforms, with the aim of discovering all the possible

market combinations and opportunities among its different lines of business.

The year saw the implementation and completion of the Production Platform (Piattaforma di Produzione, PdP),

which included activities for: changing and updating the train timetable, using the staff, scheduling the

maintenance at the Current Maintenance Plants (Impianti di Manutenzione Corrente, IMC) and managing the

railway traffic within control rooms. An amount of Euro 7.7 million was accounted for, of which Euro 7.5

million for the Integrated Planning Function and Euro 0.2 million for the Regional Passenger Division.

As regards the Cargo Information System (SIM, Sistema Informativo Merci), the new integrated platform

entered into service in support of the sales and distribution cycle and of traffic in the Cargo Division,

accounting for an amount of Euro 3 million.

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Among the other IT projects in the Technical Head Office, about Euro 2 million was invested in the RSMS -

Rolling Stock Management System and the automated WMS - Warehouse Management System, Euro 1.1

million.

As regards the IT Systems Division, an amount of Euro 3.6 million was accounted for in relation to the

replacement of obsolete hardware, the rationalisation of the Data Centres and the technical management of

the systems in service and of the networks and the applications.

Safety investments: an amount of Euro 8 million was accounted for on programmes regarding conformity

to Legislative Decree 81 of 9 April 2008 in the matter of health and safety at work, broken down as follows:

Euro 1.4 million in the Passenger Division, Euro 4.4 million in the Regional Passenger Division and Euro 2.1

million in the Technical Head Office.

Below is reported the number of vehicles purchased and those that were the object of the main revamping

actions:

New rolling stock Revamping

no. of vehicles no. of vehicles

Locomotives

10 -

Passengers 6 -

Regional Transport 4 -

Coaches/Wagons 108 284

Passengers

• ES* City - 60

• ETR500 Bistrot Coach - 15

Regional Transport

• Double-Decker 108 -

• MD Medium Distance - 207

• UIC-X with a driving van trailer - 2

Trains 14

Passengers

• Frecciarossa (ETR 500) - 14

In the Long-Haul Passenger Division: - the doors of 232 carriages were fitted with a CSDE (Correct Side Door Enable) system. In the Regional Transport Division: - the train door control system of 517 light vehicles, 72 TAF (Treni ad Alta Frequentazione, High Occupancy Trains) and 281 trains with a driving van trailer was upgraded; - the train door control system of 46 diesel locomotives was upgraded.

In the Cargo Division work was done on the couplings of 137 wagons.

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2013 Financial Statements 46

THE TRENITALIA FLEET

The Trenitalia fleet, following investments and disposals made in 2013, is made up as follows:

Rolling Stock Fleet operating as of 31.12.2013

Category Description Unit

Driving material Electric Locomotives 1,427

Driving material Diesel Locomotives 196

Total driving material 1,623

light vehicles Electric vehicles (Ale, Le) 900

light vehicles Diesel (Aln, Ln) 604

Total light vehicles 1,504

Complexes TAF 98

Complexes Minuetto Trains 195

Complexes Electric trains 121

Total complexes 414

Handling vehicles Locomotives/Diesel Power Cars 559

Total handling vehicles 559

Driven material Passenger Coaches 6,314

Driven material Wagons 20,883

Driven material Wagons and car vehicles 10

Driven material Other 40

Total driven material 27,247

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2013 Financial Statements 47

RISK FACTORS

No significant risks and uncertainties were expected as at the reporting date of the current report on

operations, which could have caused significant effects on the Company’s economic and financial position in

the short term, in addition to those that will be mentioned in the notes to the financial statements to which

reference is made. The crisis in public finance, which is taking a particular serious form with regard to local

authorities, could lead to uncertainties regarding compliance with contractual deadlines for the collection of

payments on service contracts. The operational risks deriving from the new operator’s entry into the High

Speed sector were assessed in the Company’s Business Plan. At the moment these risks still appear to be

consistent with the assumptions made. Whether the assumptions are confirmed depends on the performance

of the mobility market and the extent to which it undergoes pressure as a result of exploiting the price factor:

if this is done there could be effects on profit levels. Any effects of a failure to renew the service contracts

with the Regional Governments would emerge after 2014 and cannot be forecast at the moment; in any case,

they are considered risks attributable to a company which operates on a free market. As already reported, up

to now three Regional Governments have announced that they do not intend to renew their contracts when

they expire on 31 December 2014 and will start tender procedures for the awarding of rail services. During

2014 there could be more requests from certain Regional Governments to reorganise services in order to

tailor them to the funds available: this could also affect profitability levels. In executing the service contracts,

the Company has included suitable safeguarding clauses to protect the investments it has made and counter

the risk of agreements not being renewed.

RELATIONS WITH RELATED PARTIES

The interrelationships between the Group companies, and between them and any other related parties are

maintained according to criteria of material correctness with a view to mutual economic convenience, at

arm’s length, for the identification of which – if required – they also make use of external professionals.

Intercompany transactions pursue the common objective of creating value for the entire Group. In this

regard, it should be pointed out that, in accordance with the Business Plan of the Ferrovie dello Stato

Italiane Group, a more rational allocation of assets has been implemented and is being completed within the

Group itself, in order to concentrate the focus of each company on its core business, providing each

company with the assets considered essential for the regular performance of its business activities. To date,

this objective has been carried out through a number of demergers which the company reported in its

previous financial years. These processes and transactions take place in compliance with the specific

regulations governing the sector, statutory and tax regulations, in accordance with the policies set out by the

supervising Ministries and taking account of the features and peculiarities of the activities carried out by

many Group companies.

Credit and debit relationships maintained with controlling companies and any other affiliated companies

during the year and any information on relations with related parties are reported in the notes to the

financial statements, to which reference is made.

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2013 Financial Statements 48

TRENITALIA GROUP

At 31 December 2013 the Trenitalia Group was made up as follows:

In 2013 the investment portfolio of Trenitalia did not report significant changes; however, on 27 November

2013 the Company acquired 4.5% of the share capital of La Spezia Shunting Railways S.p.A, in order to

promote railway services in the La Spezia Port. The subsidiary Serfer also participated in the transaction,

acquiring 15.5% of the share capital. On 1 January 2014, the Company exercised its right to withdraw from

the Campania Unico consortium while continuing to belong to the integrated fare system.

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2013 Financial Statements 49

ECONOMIC PERFORMANCE OF SUBSIDIARIES

Below are reported the 2013 economic results of Serfer S.r.l., TX Logistik AG, Cisalpino AG, Trenord S.r.l.

and Thello Thello S.a.s.

SERFER S.r.l.

(amounts in €/000)

2013 2012

Operating revenues 60,643 62,542

Costs (56,806) (58,774)

EBITDA 3,837 3,768

Amortisation and depreciation (1,106) (1,096)

Write-downs, impairment losses / value write-backs

(180) (622)

EBIT 2,551 2,050

Finance income and costs (192) (241)

Pre-tax result 2,359 1,809

Income taxes (2,007) (1,286)

Net profit (loss) for the year 352 523

The company is active in the railway business and provides handling, railway traction, rolling stock

maintenance services, as well as services for the design, construction and maintenance of railway sidings.

2013 financial year recorded a decrease in operating revenues, totalling about 3%. This reduction was

characterised by upswings and downswings in different business areas, as there was a strongly rising trend

in shunting services also as a result of combining opportunities with Group companies, resulting during the

period in starting new activities in the Regional Transport and Cargo sectors of Trenitalia, Trenord and FS

Logistica, while railway market services fell owing to some line closures. Among the other business areas,

there was a fall in turnover in the junction construction sector on one hand and a rise in the locomotive

maintenance sector on the other hand.

Operating costs fell by about 3.3% overall. There was an increase of about 10.9% in labour costs owing to

the rise in the number of workers (59.2% increase in Full-Time Equivalent employment compared with

2012), mainly engaged in shunting and to contract pay increases arising from the entry into force of the

Mobility CCNL (Contratto Collettivo Nazionale di Lavoro, National Collective Labour Agreement). Other

operating costs, on the other hand, dropped by about 14.2%, mainly due to the

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2013 Financial Statements 50

reduction in the volumes of work carried out in the Railway Company area and the junction construction and

maintenance segment.

The economic performance of operations allowed the consolidation of the positive results already achieved in

the previous financial year both at gross profit level (EBITDA Margin 6.3%) and operating result (EBIT

Margin 4.2%). The balance of financial operations showed an improvement compared to 2012.

The net profit for the year showed a decrease because of a higher tax burden, the increase in which was

due to an increase in both IRAP and IRES taxes, in addition to the fact that, in the previous year, taxes had

benefitted from the tax relief of Euro 643 thousand as a result of the application of the rule under Decree

Law no. 2001/2011 concerning the deductibility of IRAP tax concerning labour costs incurred from 2007 to

2011 from the IRES tax.

TX Logistik AG

(amounts in €/000)

2013 2012

Operating revenues 204,009 186,595

Costs (199,198) (180,156)

EBITDA 4,811 6,439

Amortisation and depreciation (1,091) (663)

Write-downs, impairment losses/ value write-backs

(405) 65

EBIT 3,316 5,841

Finance income and costs (73) 143

Pre-tax result 3,243 5,985

Income taxes (1,667) (1,549)

Net profit (loss) for the year 1,576 4,436

This company, which operates in the logistics sector at European level, specialises in integrated railway

transport and is one of the main rail operators. The TX Group is licensed to carry out railway activities in

Germany, Austria, Switzerland, Holland, Sweden, Norway, Denmark and Italy and offers the market a high-

quality integrated logistics long-haul service. During 2013, the European rail transport market was even

more noticeably affected by the persistence of the difficult economic conditions. In this scenario, some

operators gave the market up, while others were placed on the market by their shareholders, who no longer

considered their accumulated losses to be sustainable. In spite of the critical economic situation in the

European transport market, the company pursued its target of raising operating revenues (+9.3%) during

2013, taking on an increasingly important role among independent undertakings. Another feature of the

2013 financial year was strong price competition, especially forcefully pursued by the German leader with a

view to recovering market shares. Among other factors were the substantial increases in costs (+10.5%)

relating to tolls and, above all, in the cost of energy arising from the use of the German infrastructure. In

spite of these circumstances, the policies and measures adopted by TX Logistik resulted in a net profit for

the year of Euro 1.6 million. In order to sustain its growth, this company carried out a careful process of

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revision of its structure and internal processes and, among other steps, started a major programme of

acquisition of rail trucks specially designed to carry semi-trailers, thus mitigating the effects of the intense

volatility of leasing costs and making sure that rolling stock was always available; it also continued to put

driving personnel on a permanent basis, only making use of agency staff to meet peak period requirements.

At the end of the period the first signs of possible stable economic growth were to be glimpsed: this is a

great challenge and a major opportunity for TX Logistik to pursue its objective of being increasingly

competitive.

Cisalpino AG

(amounts in €/000)

2013 2012

Operating revenues 469 36,905

Costs (697) (6,972)

EBITDA (228) 29,933

Amortisation and depreciation/write-downs/provisions

- (65,088)

EBIT (228) (35,155)

Finance income and costs 1,115 13,997

Pre-tax result 887 (21,158)

Income taxes (34) 23

Net profit (loss) for the year 853 (21,135)

The company closed the financial year with a positive net profit of Euro 853 thousand. The 2013 financial year

is not comparable with 2012 because operations had been of a different nature in the latter year. In the first

part of 2012 the company’s business consisted of hiring the ETR 610 fleet out to the shareholding companies

(SBB and Trenitalia), while in the second part it transferred the ownership of the fourteen trains (ETR 610) to

the two shareholders in equal parts, transferring the original supply contract, the remaining debts and the

loan taken out from Eurofima at the same time. As a result of this it carried out no operations, which, in

practice, made the results of 2012 and 2013 hardly comparable. The 2013 income statement merely presents

the company’s functioning costs. Therefore, the positive net profit was substantially attributable to the

contribution from financing activities for Euro 1.1 million, mainly arising from foreign exchange gains.

It was not yet possible to wind up and liquidate the company because there were still two actions pending

regarding accidents to travellers during 2007 and 2008, the damages for which are covered by insurance.

January 2013 saw the implementation of the resolution passed by the Shareholder’s Meeting in 2012,

concerning the capital decrease of Euro 134.7 million. The company also issued guarantees to the Italian

Revenue Agency in connection with the refund of a VAT credit of about Euro 19.4 million for the years from

2007 to 2010: the amount is expected to be paid during the first half of 2014.

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In consideration of the expected winding-up of the company, the going-concern requirements no longer

apply; however, the financial statements have been prepared according to accounting policies on a going-

concern basis, as the most of the company’s financial items is made up of liquidity and, therefore, there are

no substantial differences arising from the application of the accounting policies.

Trenord S.r.l.

(amounts in €/000)

2013 2012

Operating revenues 759,770 733,054

Costs (705,237) (673,223)

EBITDA 54,533 59,831

Amortisation and depreciation/write-downs/provisions

(35,246) (41,058)

EBIT 19,287 18,773

Balance of finance income and costs (5,113) (4,451)

Pre-tax result 14,174 14,322

Income taxes (14,074) (11,139)

Net profit (loss) for the year 100 3,183

This company provides transport services for travellers mainly within the borders of the Lombardy Region or

in the other local areas specified in the service contract with the Lombardy Regional Government, which will

expire on 31 December 2014.

In its session on 24 January 2014 the Lombardy Regional Government resolved the approval of the outline for

a “Addendum supplementing and amending the 2012-2014 Service Contract for regional and local public

railway transport”, which supplemented the contract in force as at the date. In the same resolution the

Lombardy Regional Government also undertook to award the regional and local public railway transport

Service Contract for the period from 1 January 2015 to 31 December 2020 directly to the Trenord s.r.l. railway

company on the basis of the terms and conditions of the current Service Contract.

In 2013 Trenord further strengthened its operating programme, and production passed from 38.2 to 39.9

million trains/km, with an increase of about 4.6%. The main reason for the rise is the increase in the services

provided but the effects of the inefficiencies in December 2012 are another reason. Service quality

performance indicators were falling because service was affected by the knock-on effects of the change of

timetable in December 2012, the effects of works on the railway line in view of Expo 2015 and the absence of

specific rolling stock for the railway by-pass. In 2013 the company reported a Net Profit of Euro 0.1 million,

with EBITDA of Euro 54.5 million, down compared to 2012 (-8.9%), while EBIT came to Euro 19.3 million, up

compared to (+2.7%). At the end of the 2013 financial year, the company’s staff members came to 4,207

people employed.

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Thello S.a.s.

(amounts in €/000)

2013 2012

Operating revenues 38,218 28,736

Costs (47,752) (30,672)

EBITDA (9,534) (1,936)

Amortisation and depreciation/write-downs/provisions

(259) (190)

EBIT (9,793) (2,126)

Finance income and costs 6 -

EBIT (9,788) (2,126)

Income taxes (596) (439)

Net profit for the year (10,384) (2,565)

In 2013 Thello revised its international connections: the Paris-Rome service was first performed with 2 pairs

of night trains daily, joining the Venice to Paris service. In October the Paris-Rome service was reduced and in

the middle of December it was cut. Now the company only has a Venice-Paris service.

The company closed the financial year with a negative result of Euro 10.4 million. On 23 December 2013 the

company increased its capital up to Euro 5.2 million, through shareholders’ payments of Euro 3.7 million

(Trenitalia’s share of Euro 2.4 million); at the same time, the capital itself was reduced to Euro 1.5 million to

cover losses accrued in previous financial years.

In 2014 Thello is reviewing its range of services, introducing a new form of Paris to Rome service with a

change in Milan, thus connecting the service to Paris with the Frecce trains.

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OWN SHARES

As at 31 December 2013 Trenitalia S.p.A. did not own, nor did it buy or sell, during the year, own shares

and/or shares of the controlling company, neither directly, nor through trustee companies or third parties.

OTHER INFORMATION

Investigations and proceedings in progress

As regards the investigations and proceedings in progress at the end of the financial year, it should be pointed

out that:

Criminal proceedings no. 20758/2011 R.G.N.R. (Ruolo Generale delle Notizie di Reato, General Register

of Crimes) of the Public Prosecutor’s Office of Rome (initially no. 78261/2007 R.G.N.R.): these

proceedings originated in complaints from some workers regarding the safety of carriage door

opening, closing and control systems. The Public Prosecutor’s office confirmed its request for the case

to be dismissed, also since no evidence pointing to the possibility of successful criminal action emerged

from the additional investigations it had conducted.

Criminal proceedings no. 11126/2012 R.G.N.R. (Registro Generale delle Notizie di Reato, General

Register of Crimes) of the Public Prosecutor’s Office of Rome: the Public Prosecutor asked for the case

to be dismissed on the grounds that the matter was attributable to a complex relationship in civil law

with regard to which a criminal action would probably not have led to a conviction. The origin of the

proceeding was a complaint from Pietro Mazzoni Ambiente S.p.A. (PMA) of “bid-rigging in a public

procurement process” following the actions taken by Trenitalia S.p.A. (termination of contracts and

master agreements, as well as exclusion from future tenders) because it had found serious breaches of

contract in PMA’s management of train cleaning. PMA deemed that Trenitalia S.p.A. decision was a

pretext (breaches of contract that were non-existent or not correctly evaluated) and a means of

preventing certain undertakings from succeeding in being awarded additional tender contracts.

Criminal proceedings no. 2709/2009 R.G.N.R. (Registro Generale delle Notizie di Reato, General

Register of Crimes) of the Public Prosecutor’s Office of Massa: these proceedings concerned the

relations with DELCA, which specialises in taking over, storing and destroying railway sleepers acquired

from RFI S.p.A. for which Trenitalia S.p.A. only provided transportation services through its Cargo

Division. After severing the matter from the original action, the Public Prosecutor opened case no.

3228/2011 R.G.N.R., in which the Managing Director of Trenitalia S.p.A. was under investigation for

corruption. The proceedings are still in the investigation stage and the time limit for this stage to be

concluded has been extended by the Preliminary Investigation Judge (GIP, Giudice Indagini

Preliminari) of the Court of Massa.

Criminal proceedings no. 2317/2013 R.G.N.R. (Ruolo Generale delle Notizie di Reato, General Register

of Crimes) (severed from initial proceedings no. 3723/2012 R.G.N.R.) of the Public Prosecutor’s Office

of Bergamo: this procedure was initiated after an accident on 18 August 2010 while the R 2098 train

was leaving Treviglio Station, when two travellers, in spite of the fact that the Guard had closed the

doors automatically, left the moving train forcing a carriage door. The case against the Managing

Director was dismissed in the end by order of the Preliminary Investigation Judge, who considered the

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charge unfounded since the elements obtained during the preliminary investigations did not appear to

justify a prosecution.

Criminal proceedings no. 6305/09 RGNR (Ruolo Generale delle Notizie di Reato, General Register of

Crimes), - which are pending before the Public Prosecutor’s Office of Lucca, as a result of the railway

accident that occurred in Viareggio on 29 June 2009 –, the trial is at present in the stage of discussion

after all the accused persons and entities were committed to trial pursuant to Legislative Decree no.

231/2001, as ordered by the Judge for Preliminary Hearing (GUP, Giudice dell’Udienza Preliminare) on

18 July 2013, while granting the requests submitted by the Public Prosecutor at the end of the

preliminary investigations.

Currently, no liabilities can be surmised that are payable by the Companies in the FS Italiane Group,

which are covered by suitable insurance policies.

Criminal proceedings no. 491/2012 RGNR (Ruolo Generale delle Notizie di Reato, General Register of

Crimes) - no. 956/2012 R.G. G.I.P. (Ruolo Generale del Giudice Indagini Preliminari, General Register

of the Preliminary Investigation Judge) of the Court of Mondovì. The event that gave rise to this

procedure was an accident to a guard, in Ceva Station, in the Province of Cuneo, who was the victim

of an attack by an unidentified traveller while carrying out his activity and involved the managing

director in connection with the offence of causing serious bodily harm, committed in breach of the

rules governing the prevention of accidents at work. The Preliminary Investigation Judge authorised an

extension of the time limit for the completion of the preliminary investigations at the request of the

local Public Prosecutor’s Office.

Criminal proceedings no. 35874/13 R.G.N.R. (Ruolo Generale delle Notizie di Reato, General Register of

Crimes) of the Public Prosecutor’s Office at the Court of Rome: they originated in an alleged violation

of Legislative Decree 81/2008 in connection with the measures adopted from 3 August 2010 to 24

January 2011 after the introduction of the “sole agent/only agent” drivers’ handbook to prevent the

risks attached to cases of emergency and/or the need for first aid that might arise as a result of only

using one driver. The investigations were first conducted by the Genoa Public Prosecutor’s Office,

which afterwards forwarded the file to the Rome Public Prosecutor’s Office.

On 12 March 2014, the Competition Authority (Autorità Garante della Concorrenza e del Mercato)

served an order for the closure of the “proceedings A/443 - NTV/FS/Impediments to access to the

market of high-speed railway transport services for passengers” on the Company. The proceedings

ended without Trenitalia having been guilty of any infringement and, accordingly, no sanction was

inflicted.

For any other pending investigations and judicial proceedings, there are no significant changes to be reported

with respect to the information reported in the 2012 financial statements.

Legislative Decree no. 231/2001

In 2013, the Company’s Supervisory Board carried out supervisory activity with regard to the operation of and

compliance with the Company’s “Organisational, Management and Control Model” by analysing and

monitoring information flows sent by corporate units and the performance of targeted audits, with the

operational support of the Audit department, in the areas theoretically considered at risk of crime.

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2013 Financial Statements 56

The Supervisory Board devoted itself to working on the completion of the revision of the Model, which it had

begun in 2012 after additions were made to the list of criminal offences for which businesses have

administrative liability pursuant to Legislative Decree 231/2001 referred to in Legislative Decree no. 109 of 16

July 2012, concerning the employment of illegally-staying third-party nationals, and Law no. 190 of 6

November 2012, which made some amendments to the section on offences of corruption (improper

inducement to give or promise something of value and corruption between private persons).

The process of updating the Model concluded on 19 December 2013, with the approval of the new Model of

Trenitalia on the part of the Board of Directors. The changes to the Model were widely publicised through

internal information tools, are published on the Company’s intranet site and may be consulted by all its

employees.

All personnel carrying out work in which it is considered that there is a theoretical risk of the commission of

criminal offences for which a corporate entity is liable under Legislative Decree no. 231/2001 were given

training sessions in e-learning mode during the year. At the end of the sessions participants were tested to

confirm that they had actually mastered the contents of the course.

Disclosures relating to article 2497-ter of the Italian Civil Code

Any activities carried out for extraordinary transactions, such as demergers and purchases of equity

investments, originate in the Company’s Business Plan as approved by the Parent Company. As regards

operating activities, the company complied with the provisions laid down in the Corporate Governance

regulations.

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2013 Financial Statements 57

OUTLOOK

The results were substantially in line with the 2011-2015 Business Plan.

Operating cash flows (before investments) show a positive balance, despite significant delays in the receipts

from some Italian regional governments. The compliance with the payments would allow the Company to

further improve its operating cash flow, thus being able to limit finance costs.

As described in the risk factors to which the Company is exposed, it should be remembered that medium- and

long-distance passenger transport services are conditional on consumption levels, employment levels and the

overall development of the main economic factors. The High-Speed segment of the “Market” sector was

affected by changes in market equilibrium resulting from the entry of new private operators. The risks

resulting from the entry of the new operator were assessed in the Company’s Business Plan and reflected in

the forecasts and plans; these assumptions are consistent with performance as observed up to this time and

no changes such as to modify the trend are expected in the near future. Whether the assumptions behind the

Company’s plans are correct depends on trends in the mobility market and the extent to which the market is

attracted by means of further pricing mechanisms. If this happens, profitability margins could be affected.

Market risks are especially plain to see in the Cargo sector, which is particularly affected by the poor

performance of the country’s economy. The price lever could still be a factor leading customers to

discriminate between one operator and another and this policy would enable the company to defend the

market share that is open to competition, while of course impacting on its Cargo Division's profit margins.

The Company is also engaged in completing the challenging Cargo sector reorganisation plan in accordance

with the guidelines that were marked out in the second half of 2009, whose aim is to lead this sector towards

a position of overall financial stability.

The possible effects arising from the failure to renew service contracts with the Regional Governments will

report effects, if any, in the periods after 2014.

The reorganisation plans that were scheduled and practically completed towards the end of 2013 lay the

foundations for a further review of baseline operating costs, in the light of the trade union agreements signed

at the end of July.

It is appropriate to point out that the maintenance of the investment plan resolved in previous years entails

considerable financial commitments for the company. The recapitalization transactions resolved by the Board

of Directors of Trenitalia in September 2009, and only partly already implemented, represent a decisive

support which allows a gradual re-equilibrium of the equity structure.

In light of the considerations reported, the Company expects that the results achieved in 2013 will be

confirmed in 2014.

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2013 Financial Statements 58

PROPOSED ALLOCATION OF THE RESULT FOR THE YEAR

The Company’s financial statements for the year ended 31 December 2013 showed a net profit of Euro

181,488,615 that is proposed to be allocated as follows:

Euro 9,074,431 to Legal Reserve

Euro 172,414,184 to the Reserve for Profits Carried Forward.

The Board of Directors

The Chairman

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2013 Financial Statements 59

Financial Statements: accounting

statements and notes

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2013 Financial Statements 60

Statement of financial position

(Euro) Notes 31.12.2013 31.12.2012

Assets

Property, plant and equipment (6) 8,885,478,183 8,964,110,287

Intangible assets (7) 106,130,521 89,562,341

Deferred tax assets (8) 116,434,403 152,135,321

Equity investments (9) 144,201,722 195,670,815

Non-current financial assets (including derivatives) (10) 23,329,135 23,922,569

Other non-current assets (11) 26,482,383 28,933,006

Total non-current assets 9,302,056,347 9,454,334,339

Inventories (12) 686,857,910 660,905,867

Current trade receivables (13) 1,880,905,804 2,098,621,410

Current financial assets (including derivatives) (10) 16,609,354 2,352,173

Cash and cash equivalents (14) 123,760,033 61,511,053

Tax receivables (15) 625,247 2,746,133

Other current assets (11) 62,657,890 193,969,357

Total current assets 2,771,416,239 3,020,105,993

Total assets 12,073,472,586 12,474,440,332

Equity

Share capital (16) 1,654,464,000 1,654,464,000

Valuation reserve (16) (225,465,493) (343,416,330)

Other reserves (16) 199,859,139 189,537,922

Profits (Losses) carried forward (16) 106,473,559 (89,629,556)

Profit (Loss) for the year (16) 181,488,615 206,424,332

Total Equity 1,916,819,820 1,617,380,368

Liabilities

Medium/long term loans (17) 5,195,528,297 4,884,697,416

Severance pay and other employee benefits (18) 952,227,122 1,094,217,685

Provisions for risks and charges (19) 144,605,997 278,448,713

Deferred tax liabilities (8) 118,544,242 107,361,364

Non-current financial liabilities (including derivatives) (20) 174,634,972 248,874,260

Other non-current liabilities (21) 80,598,396 25,916,808

Total non-current liabilities 6,666,139,026 6,639,516,246

Short-term loans and current portion of medium-long term loans (17) 423,594,686 740,870,121

Short-term portion of Provisions for risks and charges (19) 3,963,453 1,549,147

Current trade payables (22) 1,622,122,560 1,989,329,908

Current financial liabilities (including derivatives) (20) 804,339,208 870,755,565

Other current liabilities (21) 636,493,832 615,038,977

Total current liabilities 3,490,513,740 4,217,543,718

Total liabilities 10,156,652,766 10,857,059,964

Total equity and liabilities 12,073,472,586 12,474,440,332

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2013 Financial Statements 61

Income Statement

(Euro) Notes 2013 2012

Revenue and income

Revenues from sales and services (23) 5,272,761,352 5,279,323,113

Other income (24) 225,014,274 218,665,431

Total revenues 5,497,775,626 5,497,988,544

Operating costs

Personnel costs (25) 1,919,715,554 1,979,140,642

Raw and secondary materials, consumables and goods for sale (26) 385,907,241 382,770,989

Costs for services (27) 2,063,270,032 2,010,685,170

Leases and rentals (28) 129,521,162 151,468,450

Other operating costs (29) 45,453,396 33,910,555

Capitalization of internal construction costs (30) (431,367,920) (410,185,222)

Total costs 4,112,499,464 4,147,790,584

Amortisation and depreciation (31) 932,740,417 924,642,671

Write-downs, impairment losses (reversals) (32) 20,833,449 7,324,533

Write-down of property, plant and equipment 20,545,341 6,674,434

Value adjustments and write-backs on receivables 288,107 650,099

Provisions for risks and charges - -

Operating result 431,702,297 418,230,756

Finance income and costs

Finance income (33) (35) 26,324,883 14,548,962

Finance costs (34) (35) 195,605,715 216,781,574

Pre-tax result 262,421,464 215,998,144

Income taxes (36) 80,932,849 9,573,812

Profit for the Year from continuing operations 181,488,615 206,424,332

Net profit for the year 181,488,615 206,424,332

Income statement

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2013 Financial Statements 62

Statement of comprehensive income

(Euro) 2013 2012

Net profit for the year 181,488,615 206,424,332

Other comprehensive income

Components that will not be reclassified subsequently under profit/(loss) for the period, gross of tax affect:

Profits (losses) relating to actuarial benefits 43,867,123 (174,612,481)

Tax effect of profits/(losses) relating to actuarial benefits (12,127,796) 46,972,281

Components that will be reclassified subsequently under profit/(loss) for the period,

(if certain conditions are met), gross of tax effects:

Effective portion of changes in fair value of cash flow hedge 118,912,428 (52,292,829)

Tax effect of the effective portion of changes in fair value of (32,700,918) 14,380,528

cash flow hegde

Other comprehensive income for the year, net of tax effects 117,950,837 (165,552,501)

Total comprehensive income for the year 299,439,452 40,871,831

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Statement of Changes in Equity

____________________________________________________________________________________________ 2013 Financial Statements 63

(Euro)

Legal reserveExtraordinary

reserve

Reserve for change in FV on

derivatives - Cash Flow Hedge

Reserve for Actuarial gains

(losses) for employee benefits

Total ReservesProfits (losses)

carried forward

Profits (losses)

for the yearTotal Equity

Balance as at 1 January 2012 1,654,464,000 4,635,139 177,084,324 (173,353,541) (4,510,289) 3,855,633 (238,180,293) 156,369,196 1,576,508,537

Capital increase

Distribution of dividends

Allocation of the net profit for the

previous year 7,818,460 7,818,460 148,550,736 (156,369,196) -

Recognised comprehensive

Profit/(Loss) of which:

Profit/(Loss) recognised directly in equity

(37,912,301) (127,640,200) (165,552,501) (165,552,501)

Profit (Loss) for the year 206,424,332 206,424,332

Balance as at 31 December 2012 1,654,464,000 12,453,599 177,084,324 (211,265,842) (132,150,489) (153,878,408) (89,629,557) 206,424,332 1,617,380,368

Capital increase

Distribution of dividends

Allocation of the net profit for the

previous year 10,321,217 10,321,217 196,103,115 (206,424,332) -

Recognised comprehensive

Profit/(Loss) of which:

Profit/(Loss) recognised directly in equity

86,211,510 31,739,327 117,950,837 117,950,837

Profit (Loss) for the year 181,488,615 181,488,615Balance as at 31 December

2013 1,654,464,000 22,774,816 177,084,324 (125,054,332) (100,411,162) (25,606,354) 106,473,558 181,488,615 1,916,819,820

Equity

Share capital

Reserves

Reserves Valuation reserves

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2013 Financial Statements 64

Statement of cash flows

Euro 2013 2012

Net profit for the year 181,488,615 206,424,332

Amortisation and depreciation 932,740,417 924,642,671

Provision for risks and charges 27,961,307 175,262,106

Write-downs 24,024,495 6,687,434

Provision for employee benefits 21,780,069 38,666,222

Provisions and write-downs 73,765,871 220,615,762

(Capital gains)/Losses from disposal (23,464,564) (7,903,264)

Change in inventories (25,952,043) (6,248,326)

Change in trade receivables 217,715,606 (414,833,929)

Change in trade payables (367,207,348) 206,852,845

Change in other assest and liabilities 214,074,555 (125,352,405)

Uses of provisions for risks and charges (159,389,717) (294,210,416)

Payment of employee benefits (119,903,508) (106,588,488)

Cash flow generated from (used by) operating activities 923,867,884 603,398,782

Investments in property, plant and equipment (901,009,913) (1,080,116,514)

Investments in intangible assets (49,535,553) (40,432,373)

Investments valued at equity (2,511,790) (296,300)

Investments, including grants (953,057,256) (1,120,845,187)

Grants in property, plant and equipment 14,224,990 9,082,621

Grants 14,224,990 9,082,621

Divestments of property, plant and equipment 67,897,319 24,229,108

Divestments of intangible assets 665,830 3,164,185

Divestments of equity intrests 50,501,729 186,614

Divestments 119,064,878 27,579,907

Change in financial assets (13,663,746) (2,369,093)

Net cash flow generated/(used) in investing activities (833,431,134) (1,086,551,752)

Use and repayment of medium/long term loans (90,885,901) 32,857,411

Use and repayment of short-term loans 84,441,347 (4,636,180)

Change in financial liabilities (6,423,809) 5,095,712

Cash flow generated from financing activities (12,868,363) 33,316,943

Total cash flows generated/(used) in the year 77,568,387 (449,836,027)

Cash and cash equivalents at the beginning of the year (739,418,960) (289,582,933)

Cash and cash equivalents at the end of the year (661,850,573) (739,418,960)

Intercompany current account (785,610,607) (800,930,013)

Cash and cash equivalents 123,760,034 61,511,053

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2013 Financial Statements 65

NOTES TO THE FINANCIAL STATEMENTS

1. Preamble

These financial statements for the year ended 31 December 2013 (hereinafter also referred to as the

“financial statements”) were prepared in accordance with the International Financial Reporting Standards,

issued by the International Accounting Standards Board and adopted by the European Union (“EU-IFRS”).

Specifically it should be noted that Trenitalia S.p.A. made use of the right provided for in Legislative Decree

no. 38 of 28 February 2005, which regulates the exercise of the options under article 5 of Regulation (EC) no.

1606/2002 on the application of international accounting standards. Specifically, pursuant to articles 3 and 4

of the abovementioned legislative decree, the Company applied the EU-IFRS to the preparation of the

Separate Financial Statements starting from the financial year ended 31 December 2010. Up to the financial

year ended 31 December 2009, the Company prepared its separate financial statements in accordance with

the relevant provisions laid down under Legislative Decree no. 127 of 9 April 1991, as interpreted by the

accounting standards issued by the Italian Accounting Board (Organismo Italiano di Contabilità) (the “Italian

GAAPs”).

2. Company

Trenitalia S.p.A. (hereinafter also referred to as the “Company” or” Trenitalia”) is a company incorporated and

domiciled in Italy and is organised according to the Italian legal system of the Italian Republic. The Company

has its registered office in Rome, at Piazza della Croce Rossa no. 1.

The Company is subject to the direction and coordination activities of the Parent Company Ferrovie dello Stato

Italiane S.p.A..

On 26 March 2014 the Directors approved the draft annual accounts as at 31 December 2013 which were

made available, from said date, within the time limits set out in article 2429 of the Italian Civil Code. These

financial statements will be submitted to the Shareholders’ Meeting for approval on 23 April 2014, within the

time limits set out in article 2364 of the Italian Civil Code, and will be filed within the time limits set out in

article 2435 of the Italian Civil Code. The Shareholders’ Meeting is entitled to make amendments to these

financial statements. For the purposes of paragraph 17 of IAS 10, the date taken into consideration by the

Directors in preparing the financial statements is 26 March 2014, the date of approval of these financial

statements by the Board of Directors.

The Company has opted for the exemption from the obligation to prepare consolidated financial statements,

even if there are controlling interests, making use of the exemption provided for in paragraph 10 of IAS 27.

The consolidated financial statements for public use have been prepared by the controlling company Ferrovie

dello Stato Italiane S.p.A., with registered office in Rome, Piazza della Croce Rossa no. 1, the address at

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2013 Financial Statements 66

which it is possible to obtain them within the time limits and according to the methods set out in the current

regulations.

PricewaterhouseCoopers S.p.A. has been appointed to carry out the statutory audit of accounts, pursuant to

article 14 of Legislative Decree no. 39/2010 and articles 2409-bis and ff. of the Italian Civil Code.

3. Criteria for the preparation of financial statements

Below are reported the main criteria and accounting standards applied to the preparation of the financial

statements.

As previously specified, the financial statements were prepared in accordance with EU-IFRS, including all

International Financial Reporting Standards, all International Accounting Standards (IAS), all interpretations of

the International Financial Reporting Interpretations Committee (IFRIC), which was previously named

Standing Interpretations Committee (SIC), as adopted by the European Union and contained in the related EU

Regulations published until 26 March 2014, i.e. the date when the Company’s Board of Directors approved

this document. Specifically, the EU-IFRS were consistently applied to all the periods presented herein.

Furthermore, it should be pointed out that these financial statements were prepared on the basis of the best

knowledge of EU-IFRS and taking account of the best relevant doctrine; future interpretation guidelines and

updates (if any) will be reflected in subsequent financial years, according to the procedures set out in the

relevant accounting standards from time to time.

The financial statements were prepared and presented in Euro, which represents the Company’s functional

currency, i.e. the current money of the countries where the Company mainly operates; all amounts included in

the tables of the following notes, except as otherwise specified, are expressed in thousands of euros.

Below are specified the schedules used in the financial statements and the related classification criteria

adopted by the Company within the options provided for in IAS 1 “Presentation of Financial Statements”:

The statement of financial position was prepared by recognising assets and liabilities according to the

“current/non-current” classification;

The income statement was prepared by classifying operating costs by nature;

The statement of comprehensive income includes the profit for the year, as well as any other changes in

equity items attributable to transactions that have not been carried out with the Company’s shareholders;

furthermore, as a result of amendments made to IAS 1- Presentation of Financial Statements - the

Company shows other comprehensive income separately, depending on whether or not they can be

subsequently reclassified to profit or loss;

The statement of cash flows was prepared by reporting cash flows arising from operating activities

according to the “indirect method”.

These financial statements were prepared on a going-concern basis, as the directors established the non-

existence of indicators of a financial, operational or any other nature that could report criticalities about the

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2013 Financial Statements 67

Company’s capacity to meet its obligations in the foreseeable future and specifically in the next 12 months.

The description of the procedures through which the Company manages financial risks is contained in note 5

“Financial and operating risk management” below.

The financial statements were prepared on the basis of the conventional historical cost principle, except for

the valuation of financial assets and liabilities, including derivative instruments, in the cases which require the

application of the fair value criterion.

4. Accounting standards applied

Below are reported the most significant accounting standards and accounting policies used for the preparation

of financial statements.

Property, plant and equipment

Property, plant and equipment are entered at purchase or production cost, net of accumulated depreciation

and impairment losses (if any). The purchase or production cost includes any charges that are directly

incurred to make assets available for use, as well as dismantlement and removal charges (if any) that will be

incurred as a result of contractual obligations that require the asset to be returned to its original conditions.

Any financial charges that are directly attributable to the acquisition, construction or production of qualified

assets are capitalized and depreciated on the basis of the useful life of the asset to which they refer. Any

costs for value-increasing improvement, upgrade and transformation of property, plant and equipment are

recognized under balance sheet assets.

Any charges incurred for ordinary maintenance and repairs are directly charged to the income statement at

the time they are incurred. The capitalization of costs concerning the expansion, upgrade or improvement of

the structural elements owned or used by third parties is made within the limits in which they meet the

requirements to be separately classified as assets or part of an asset, applying the component approach

method, according to which each component that is capable of an independent valuation of the useful life and

of the related value must be treated individually.

Depreciation is calculated systematically and on a straight-line basis on the basis of the rates that are deemed

to represent the estimated economic and technical useful life of the assets.

The useful life of property, plant and equipment and their residual value are reviewed and updated, where

necessary, at least at the end of every financial year. Land is not depreciated.

Below are the depreciation rates used:

Rolling stock

- Components to be restored 15.4% - 20%

- Components subject to wear and tear 15.4% - 20%

- Restyling/Safety of Driving Material 8%

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2013 Financial Statements 68

- Restyling/Safety of Driven Material 10%

- Basic component 4.3% - 3.3%

- Capitalised second-level maintenance 15.4% - 20%

- Value-increasing maintenance (large revamping) 5.5%

Land and buildings

- Property land -

- Land for auxiliary uses -

- Industrial buildings and light construction 2%

- Value-increasing maintenance of Industrial Buildings 5%

- Leasehold improvements 20%

Industrial systems

- Workshop systems 5%

- Value-increasing maintenance of Workshop systems 10%

Industrial equipment

- Vehicles circulating on road and rail 7.5%

- Machinery and equipment 10%

- Loading vehicles 10%

- Communication systems 25%

Other assets

- Motor vehicles 20% - 25%

- Furniture and fittings 12%

- Ordinary office machines 12%

- Electronic office machines 20%

- Mobile phones 20%

- Specific systems 12%

- General systems 8%

- Sundry and small equipment 12%

- Health equipment 12.5%

- Leasehold improvements 20%

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2013 Financial Statements 69

Intangible assets

Intangible assets are made up of non-monetary elements that are identifiable and without physical substance,

that can be controlled and are aimed at generating future economic benefits. These elements are recognized

at purchase and/or production cost, including any directly-attributable expenses incurred to make the asset

available for use, net of accumulated amortization and impairment losses (if any). Interest expense (if any),

which accrue during and for the development of intangible assets, are considered to form part of the

purchase cost. Amortisation begins when the asset is available for use and is distributed systematically in

relation to the residual possible use of the same, i.e. on the basis of its estimated useful life. Specifically, the

following main intangible assets can be identified within the Company:

(a) Concessions, licenses and trademarks

Concessions, licences and trademarks are amortised on a straight-line basis and on the basis of the related

term.

Costs of software licences, including any expenses incurred to make the software available for use, are

amortised on a straight-line basis and on the basis of the related term.

Any costs relating to the maintenance of software programmes are expensed at the time when they are

incurred.

(b) Research and development costs

Costs relating to the research activity are charged to the income statement of the year at the time they are

incurred, while development costs are entered under intangible assets where all the following conditions are

fulfilled:

the project is clearly identified and any costs referred thereto are identifiable and can be measured

reliably;

it has been demonstrated that the project is technically feasible;

it has been demonstrated that there is the intention to complete the project and to sell the intangible

assets generated by the project;

there is a potential market or, in case of internal use, it is demonstrated that the intangible asset is

useful for the production of the intangible assets generated by the project;

technical and financial resources are available which are necessary to complete the project.

The amortisation of development costs (if any) entered under intangible assets begins from the date when

the result generated by the project can be used and is carried out in a period of 5 years.

If the research phase of an identified internal project to create an intangible asset cannot be distinguished

from the development phase, the cost arising from this project is fully charged to the income statement as if it

were incurred in the research phase only.

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2013 Financial Statements 70

Profits and losses arising from the sale of an intangible asset are determined as the difference between the

value of disposal, net of selling costs, and the book value of the asset and are recognised in the income

statement at the time of the disposal.

Below are reported the amortisation rates used with reference to the intangible assets with a definite useful

life:

Rates

Development costs 20%

Software 20%

Impairment of intangible assets and property, plant and equipment

i) Intangible assets and property, plant and equipment with a definite useful life

At each balance sheet date, a review is carried out which is aimed at establishing if there is any evidence that

the property, plant and equipment and intangible assets may be impaired. For this purpose, account is taken

of both external and internal indicators of impairment. In relation to the first ones (internal indicators) the

following must be considered: the obsolescence of or physical damage to the asset, significant changes (if

any) in the use of the asset and the economic performance of the asset with respect to what is expected. As

regards external indicators, the following must be considered: the trend in the market prices of the assets,

negative changes (if any) in technology, markets or laws, the trend in market interest rates or in the cost of

capital used to measure investments.

If there is an indication that an asset may be impaired, it is necessary to estimate the recoverable amount of

the abovementioned assets, charging the write-down (if any) compared to the related book value in the

income statement. The recoverable amount of an asset is represented by the higher of an asset's fair value

less additional costs to sell and its value in use, the latter being the current value of the future cash flows

estimated for this asset. In determining the value in use, the expected future cash flows are discounted using

a discount rate, including taxes, which reflects the current market valuations of the cost of money, compared

to the period of investment and to the specific risks of the asset. The recoverable amount of an asset that

does not generate largely independent cash flows is determined in relation to the cash generating unit to

which this asset belongs.

An impairment loss is recognised in the income statement in the event that the entry value of the asset, or of

the related cash generating unit to which the same is allocated, is higher than its recoverable amount. The

impairment of cash generating units is charged firstly as a reduction in the carrying amount of the goodwill (if

any) assigned to the same and therefore as a reduction in the other assets, proportionally to their carrying

amount and within the limits of the related recoverable amount. If the reasons for a write-down previously

carried out no longer apply, the carrying amount of the asset is restored and charged to the income

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statement, within the limits of the net book value that the asset in question would have had had the write-

down not been carried out and had the related amortization or depreciation been made.

Equity investments in subsidiaries, associates and jointly-controlled entities and other investments

Equity investments in subsidiaries, associates and jointly-controlled entities are valued at their cost as

adjusted for any impairment.

The equity investment held by the company, which is neither a subsidiary nor an associate and which is not

listed in an active market and for which the use of an appropriate valuation model should not be reliable, is in

any case valued at cost.

In the case of equity investments valued at cost, they are written down through profit and loss, where any

lasting losses of value are identified. If the reasons for a write-down no longer apply, it is necessary to restore

the value at most up to the amount of the initial cost. This reinstatement is entered in the income statement.

Financial Instruments

Financial assets and trade receivables

Financial assets are initially measured at fair value and classified under loans and receivables, available-for-

sale financial assets or financial assets at fair value through profit or loss, depending on the related nature

and the purposes for which they have been acquired.

Financial assets are accounted for at the trade date of the acquisition/sale and are derecognised from the

accounts when the right to receive the related cash flows is extinguished and the company has substantially

transferred all risks and rewards relating to the financial instrument and the related control.

Loans and receivables

Loans and receivables are non-derivative instruments with fixed or determinable payments that are not

quoted in an active market. Specifically, this category classifies the following items of the statement of

financial position: “Non-current financial assets (including derivatives)”, “Current financial assets (including

derivatives)” and “Current trade receivables”.

Loans and receivables are initially accounted for at fair value and subsequently measured at amortised cost

using the effective interest rate, net of the provision for write-down. Loans and receivables are included under

current assets, except for those having a contractual term exceeding twelve months compared to the balance

sheet date, which are classified under non-current assets.

Any losses on loans and receivables are recognised when there is any objective evidence that the company

will not be able to collect the due amount from the counterparty on the basis of the contractual terms. The

objective evidence includes events such as:

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2013 Financial Statements 72

significant financial difficulties of the issuer or debtor;

legal disputes pending with the debtor in relation to receivables;

the probability of the debtor being declared bankrupt or of other financial reorganisation procedures

being started.

The amount of the write-down is measured as the difference between the carrying amount of the asset and

the present value of the expected future financial flows and recognized in the income statement under the

item “Write-downs and impairment losses (reversals)”. Unrecoverable loans and receivables are recognised in

the statement of financial position, net of the provision for write-down. If the reasons for the write-downs

previously carried out no longer apply in the subsequent periods, the value of the assets is reinstated up to

the amount of the value that would be derived from the application of the amortised cost method.

Available-for-sale financial assets

Available-for-sale financial assets are any non-derivative financial assets expressly designated as available for

sale and are included under non-current assets, except for those assets which the directors intend to transfer

in the twelve months subsequent to the balance sheet date.

Available-for-sale financial assets are initially measured at fair value, as increased by any additional charges

and are subsequently always measured at fair value, charging the subsequent profits or losses from

measurement to an equity reserve. Their recognition in the income statement is made only at the time when

the financial asset is actually transferred, or, in the case of accumulated negative changes, at the time when

the same are considered to be durable and significant.

Any dividends arising from equity investments entered under the category in object are charged to the income

statement, at the time when the Company becomes entitled to receive the related payment.

At each balance sheet date the Company assesses whether there is any objective evidence of an impairment

loss of the financial assets. In the case of equity investments classified as available for sale, a reduction in the

fair value of the equity investment to below the initial cost is considered to be an impairment loss. If this

evidence exists for available-for-sale financial assets, the cumulative loss – which is calculated as the

difference between the acquisition cost and the fair value at the balance sheet date, net of impairment losses

(if any) previously accounted for in the income statement – is transferred from equity and recognised in the

income statement. These losses crystallise and therefore they cannot be subsequently reinstated in the

income statement. Any changes in the exchange rates relating to the equity investments entered under

available-for-sale financial assets are recognised under the specific equity reserve.

Financial assets at fair value through profit or loss

Financial assets at fair value through profit or loss are represented by securities held for trading, as they are

acquired for the purpose of being transferred in the short-term. Derivatives are measured as securities held

for trading, unless they are designated as hedging financial instruments.

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2013 Financial Statements 73

Financial assets at fair value through profit or loss are initially recognized at fair value and the related

additional charges are immediately expensed in the income statement. Subsequently, these assets are

measured at fair value with changes in profit or loss.

Cash and cash equivalents

Cash and cash equivalents include cash on hand and available bank deposits and any other forms of short-

term investment, with an initial maturity of three months or less. At the balance sheet date, current account

overdrafts are classified as borrowings under current liabilities in the statement of financial position. The

elements included in cash and cash equivalents are measured at fair value with changes recognized in profit

or loss.

Loans, trade payables and other financial liabilities

Loans, trade payables and other financial liabilities are initially entered at fair value, net of directly-attributable

additional costs, and are subsequently valued at amortised cost, applying the effective interest rate method. If

there is a change in the estimated expected cash flows, the value of the liabilities is recalculated to reflect this

change on the basis of the present value of the new expected cash flows and of the effective internal rate as

initially determined. Loans, trade payables and other financial liabilities are classified under current liabilities,

except for those with a contractual term beyond twelve months compared to the balance sheet date and

those for which the Company has an unconditional right to defer their settlement for at least twelve months

after the reporting date. Loans, trade payables and other financial liabilities are derecognized at the time of

their repayment and when the company has transferred all risks and charges related to the instrument itself.

Derivative financial instruments

Derivative financial instruments entered into by the Company are aimed at coping with the exposure to the

interest rate risks and a diversification of the indebtedness parameters that may allow a reduction in their cost

and volatility. At the date of execution of the contract, derivative instruments are initially accounted for at fair

value and, if the derivative instruments are not accounted for as hedging instruments, the subsequent fair

value changes are treated as components of the income statement.

Hedging derivative financial instruments are accounted for according to the procedures set out for hedge

accounting only when:

at the inception of the hedge, there is formal designation and documentation of the hedging

relationship itself;

hedge is expected to be highly effective;

effectiveness can be measured reliably;

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2013 Financial Statements 74

the hedge itself is highly effective during the different accounting periods for which it is designated.

If the derivative financial instruments are eligible for hedge accounting, the following accounting treatments

shall apply:

Cash flow hedge

If a derivative financial instrument is designated as a hedge of the exposure to variability in cash flows of a

recognized asset or liability or of a highly probable forecast transaction, the effective portion of profits or

losses arising from the fair value adjustment to the derivative instrument is recognized under a specific equity

reserve. The cumulative profit or loss is reversed from the equity reserve and accounted for in the income

statement in the same financial years in which the effects of the transaction being hedged are recognised in

the income statement. The profit or loss associated with the ineffective portion of the hedge is immediately

entered in the income statement. If the transaction being hedged is no longer considered to be probable, the

profits or losses that have not yet been realised, accounted for in the equity reserve, are immediately

recognized in the income statement.

Derivative financial instruments are accounted for at the trade date.

Estimate of the fair value

The fair value of the financial instruments listed in an active market is based on the market prices at the

balance sheet date. Instead, the fair value of the financial instruments that are not listed in an active market

is determined by using valuation techniques based on a series of methods and assumptions linked to market

conditions at the balance sheet date.

Given the short-term features of trade receivables and payables, it is deemed that the book values represent

a good approximation of the fair value.

Inventories

Inventories, which are mainly made up of spare parts for the maintenance of rolling stock, are entered at the

lower of purchase and/or production cost and net realizable value. The cost is determined according to the

weighted average cost method.

The accounting management of inventories is made according to the so-called “metodo patrimoniale”.

The net realisable value corresponds, for finished products to the selling price estimated in the ordinary

course of business, net of estimated selling costs. For raw and secondary materials and consumables, the net

realisable value is represented by the replacement cost.

The purchase cost includes additional charges; the production cost includes directly-attributable costs and a

portion of indirect costs, which are reasonably attributable to the products.

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The obsolete and/or slow-moving inventories are written down in relation to their alleged possible use or

future sale, through the recognition of a special provision adjusting the value of inventories. The write-down

is derecognised in the subsequent financial years if the reasons for the same no longer apply.

Employee benefits

Short-term benefits are represented by salaries, wages, related social security contributions, paid vacation and

incentives paid out in the form of bonuses payable in the twelve months of the balance sheet date. These

benefits are accounted for as personnel cost components in the period in which the working activity is

performed.

Severance pay and other employee benefits

The Company has in place both defined contribution and defined benefit plans. Defined contribution plans are

managed by third parties that manage funds, in relation to which there are no legal or any other obligations

to pay additional contributions if the fund has no sufficient assets to meet the commitments undertaken to

employees. For defined contribution plans, the Company pays contributions, either voluntary or set out as per

contract, into public and private insurance pension funds. Contributions are entered as personnel costs on an

accruals basis. Advance payments of contributions are entered as an asset that will be repaid or entered as an

offset of future payments, if they are due.

A defined benefit plan is a plan that cannot be classified as a defined contribution plan. Under defined benefit

plans the amount of the benefit to be paid out to the employee can be quantified only after the termination of

the employment relationship, and is linked to one or more factors, such as age, years of service and

remuneration. Therefore, defined benefit obligations are determined by an independent actuary using the

projected unit credit method. The present value of defined benefit plans is determined by discounting future

cash flows at an interest rate equal to that of (high-quality corporate) bonds issued in the foreign currency in

which the liability will be settled and that takes account of the term of the related pension plan. Profits and

losses arising from the actuarial calculation are fully charged to equity, in the reporting year, taking account of

the related deferred tax effect.

Specifically, it should be pointed out that the Company manages a defined benefit plan that is represented by

the provision for Severance Pay (Trattamento di Fine Rapporto, TFR). The Italian Companies are required to

set aside this provision pursuant to article 2120 of the Italian Civil Code; it is treated as a deferred

remuneration and is correlated to the duration of the working life of the employees and to the remuneration

received in the period of service performed. Starting from 1 January 2007, law no. 296 of 27 December 2006,

“2007 Finance Act” and subsequent Decrees and Regulations, introduced significant amendments to the TFR

regulations, including the worker’s right to choose to allocate its accruing TFR being accrued either to

supplementary pension funds or to the “Treasury Fund” managed by the INPS (Istituto Nazionale di

Previdenza Sociale, National Social Security Institute). Therefore, this has entailed that the obligation to the

INPS and the contributions paid into supplementary pension funds are now treated, pursuant to IAS 19

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2013 Financial Statements 76

“Employee benefits”, as defined contribution plans, while the quotas entered in the provision for TFR at 1

January 2007 are still treated as defined benefit plans. The provision for TFR also includes the retirement

allowance due to the personnel for the period of service rendered up to 31 December 1995.

The Company also has in place a defined benefit pension plan referred to the “Free Travel Card” (Carta di

Libera Circolazione, CLC) that grants the employees, even if they are retired employees, and to their relatives,

the right to make use - free of charge or, in some cases, through the payment of admission fees – of the

Company’s railway services.

Therefore, a provision has been set aside in the accounts, on the basis of the actuarial techniques previously

mentioned, which includes the discounted charge relating to retired employees who are entitled to the

benefit, as well as the portion of benefit accrued for the employees in service and to be paid out after the

termination of the employment relationship. The accounting treatment of the benefits produced by the Free

Travel Card and the effects arising from the actuarial measurement are the same as those envisaged for the

provision for Severance Pay.

Provisions for risks and charges

Provisions for risks and charges are entered against certain or probable losses and charges, whose amount

and/or date of occurrence cannot be determined. The provision is recognized only when a current obligation

(legal or constructive) exists as a result of past events and it is probable that a future outflow of financial

resources will be required to settle the obligation. This amount represents the best estimate of the charge to

fulfil the obligation. The rate used to determine the present value of the liability reflects the current market

values and takes account of the specific risk that can be associated to each liability.

When the financial effect of time is significant and the dates of payment of the liabilities can be estimated

reliably, provisions are measured at the present value of the outlay expected by using a rate that reflects

market conditions, any change in the cost of money over time and the specific risk inherent in the obligation.

The increase in the value of the provision determined by changes in the cost of money over time is accounted

for as an interest expense.

The risks for which the emergence of a liability is only possible are specified in the special section on

contingent liabilities and no provision has been made for them.

Translation of currency items

Any transactions in a currency other than the functional currency are recognised at the exchange rate

prevailing at the date of the transaction. Monetary assets and liabilities denominated in a currency other than

the Euro are subsequently adjusted at the exchange rate prevailing at the closing date of the financial year.

Non-monetary assets and liabilities denominated in a currency other than the Euro are entered at historical

cost using the exchange rate prevailing at the date of initial recognition of the transaction. Any exchange

differences that may arise are reflected in the income statement.

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2013 Financial Statements 77

Revenues

Revenues are recognised insofar as it is probable that economic benefits will flow to the Company and their

amount can be determined reliably, taking account of the value of returns, rebates, trade discounts and

premiums concerning quantity (if any).

Revenues from performance of services are recognised in the income statement with reference to the state of

completion of the service and only when the result of the service can be estimated reliably.

Revenues from sales of goods are measured at the fair value of the consideration received or due. Revenues

from sales of goods are recognized when the significant risks and the rewards of ownership of the assets are

transferred to the purchaser and the related costs can be estimated reliably.

Interest income is recorded in the income statement on the basis of the effective rate of return.

Government grants

Government grants, in the presence of a formal resolution assigning them and, in any case, when the right to

their payment is deemed final as there is reasonable certainty that the Company will comply with any

conditions attached to the grant and that the grants will be received, are recognised on an accruals basis in

direct correlation with the costs incurred.

i) Set-up grants

Government set-up grants refer to sums paid out by the Government and by any other Public Bodies to the

Company for the implementation of initiatives aimed at the construction, reactivation and expansion of

property, plant and equipment. Set-up grants are accounted for as a direct reduction in the assets to which

they refer and contribute, as a reduction, to the calculation of the depreciation rates.

ii) Operating grants

Operating grants refer to sums paid out by the Government or by any other Public Bodies to the Company by

way of reduction in costs and charges incurred. Operating grants are charged to the income statement under

“Other income”, as a positive component of the income statement.

Cost recognition

Costs are recognised when they relate to goods and services acquired or consumed in the year or by

systematic allocation.

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2013 Financial Statements 78

Income taxes

Current taxes are determined on the basis of the estimated taxable income and in accordance with the

regulations in force.

Deferred tax assets, relating to previous tax losses, are recognized insofar as it is probable that a future

taxable income will be available against which the same may be recovered. Deferred tax assets and liabilities

are determined using the tax rates that are expected to be applied in the financial years in which the

differences will be realized or discharged.

Current taxes, deferred tax assets and liabilities are recognised in the income statement, except for those

relating to items recognised under other components in the comprehensive income and directly debited or

credited to equity. In the latter cases, deferred tax liabilities are recognised under the item “Tax effect”

relating to the other components of the comprehensive income and directly in equity, respectively. Deferred

tax assets and liabilities are offset when the same are applied by the tax authorities themselves, there is a

legal right of setoff and a settlement of the net balance is expected.

Any other taxes that are not correlated to income, such as indirect taxes and duties, are included in the

income statement item “Other operating costs”.

Assets and liabilities held for sale and discontinued operations

Non-current assets (or disposal groups) whose carrying amount will be recovered mainly through the sale

rather than through their continuous use are classified as held for sale and are entered separately from any

other assets and liabilities in the statement of financial position. The corresponding equity values of the

previous year are not reclassified. A Discontinued Operation is a component of the entity that has been

disposed of or classified as held for sale; and:

represents either a major line of business or a geographical area of operations;

is part of a co-ordinated plan to dispose of a major line of business or geographical area of

operations; or

is a subsidiary acquired exclusively with a view to resale.

The results from discontinued operations – either disposed of or classified as held for sale and being divested

– are recognized separately in the income statement, net of tax effects. The corresponding values relating to

the previous financial year, where present, are reclassified and recognized separately in the separate income

statement, net of tax effects, for comparative purposes. Non-current assets (or disposal groups) classified as

held for sale, are firstly recognized in accordance with the specific relevant IFRS applicable to each asset and

liability and, subsequently, are recognised at the lower of carrying amount and the related fair value, net of

selling costs. Subsequent impairment losses (if any) are recognised directly as an adjustment to non-current

assets (or disposal groups) classified as held for sale through profit or loss.

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2013 Financial Statements 79

Instead, a reinstatement of value is recognised for each subsequent increase in the fair value of an asset, net

of selling costs, but only up to the amount of the total impairment loss previously recognized.

First-time adoption accounting standards

The EU legislator has adopted some accounting standards and interpretations, whose application became

compulsory on 1 January 2013, which regulate cases and case studies that were not present within the

Company at the date of this annual financial report, but which could have accounting effects on future

transactions and agreements:

IFRS 13 – Fair value measurement

On 12 May 2011 the IASB issued IFRS 13 – Fair value measurement which illustrates the procedures for

determining the fair value for the purposes of the financial statements and will be applicable to all the cases in

which the standards require or allow fair value measurement or the presentation of information based on the

fair value, with some limited exclusions. Furthermore, the standard requires more extensive information on

the fair value measurement (fair value hierarchy) than that required by IFRS 7.

The company adopted this new standard on a prospective basis from 1 January 2013.

IAS 19 – Employee benefits

On 16 June 2011 the IASB issued an amendment to IAS 19 – Employee benefits, which eliminates the

option to defer the recognition of actuarial gains and losses according to the corridor method, providing for all

actuarial gains or losses to be recognised immediately in the Other comprehensive income (OCI), so that the

entire net amount of provisions for defined benefits (net of assets serving the plan) is entered in the

consolidated statement of financial position. The amendment also provides for any changes in the provision

for defined benefits and of any assets serving the plan, between a financial year and the subsequent one, to

be divided into three components: the cost components linked to the working activity of the financial year

must be recognised as “service costs” in the income statement; net financial charges, which are calculated by

applying the appropriate discount rate to the net balance of the provision for defined benefits, net of assets

arising at the beginning of the financial year, must be recognised in the income statement as such; actuarial

gains and losses that arise from the re-measurement of liabilities and assets must be entered in the statement

of comprehensive income. Furthermore, the return of the assets included under net financial charges, as

specified above, shall be calculated on the basis of the discount rate of the liabilities and no longer on the

basis of the expected return of the assets.

Finally, the amendment introduces new additional information to be provided in the notes to the financial

statements. The application of these amendments to the standard has not entailed any effect on the

Company, as employee benefits are already treated through their recognition under other comprehensive

income.

The company adopted this amendment on a retrospective basis as from 1 January 2013.

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IAS 1 – Presentation of financial statements

On 16 June 2011 the IASB issued an amendment to IAS 1 – Presentation of financial statements to

require the companies to group all the components reported in the “Other comprehensive income” depending

on whether or not they can be subsequently reclassified to profit or loss.

The company adopted this amendment as from 1 January 2013.

IFRS 7 – Financial Instruments: disclosures

On 16 December 2011 the IASB issued some amendments to IFRS 7 – Financial Instruments:

disclosures. These amendments require information on the actual or potential effects of the setoff of

financial assets and liabilities on the statement of financial position of an enterprise.

The company adopted these amendments as from 1 January 2013.

IFRS 1 – First-time adoption of International Financial Reporting Standards

On 14 March 2012 the IASB issued an amendment to IFRS 1, First-Time Adoption of International

Financial Reporting Standards, which introduces another exception to the retrospective application of

IFRS 9 and IAS 20 in relation to the recognition of government loans in being on the transition date, equating

the positions of first-time users to those of entities that have already prepared their financial statements

according to international accounting standards previously.

This amendment has not had any effects on the Company’s financial statements.

Annual Improvements to IFRSs: 2009-2011 Cycle

On 17 May 2012 the IASB published a document named Annual Improvements to IFRSs: 2009-2011

Cycle, which adopts the changes to the standards in the framework of their annual improvement process,

concentrating on changes that are deemed necessary but not urgent. After this it refers to those that will

entail a change in the presentation, reporting and measurement of the items in the accounts, setting aside

those that entail changes in terminology or editing changes with very little effect in terms of accounting, or

those that have an impact on the standards or interpretations not applicable to the company:

IAS 1 Presentation of financial statements – Comparative information: it is clarified that, in the

event that additional comparative information is provided, it must be presented in accordance with

IAS/IFRS; if an entity voluntarily provides additional comparative information, this may be included even

in only one of the mandatory financial statements, for which the related notes must be then provided.

Furthermore, it is clarified that in the event that an entity changes an accounting standard or makes a

retrospective adjustment/reclassification, the entity itself shall also present a balance sheet at the

beginning of the comparative period (“third statement of financial position” in the financial statements),

while no comparative disclosures are required to be reported in the notes to the financial statements in

relation to this “third statement of financial position”, except for any relevant items.

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IAS 16 Property, plant and equipment – Classification of servicing equipment: it is clarified that any

servicing equipment shall be classified under “Property, plant and equipment” if it is used for more than

one financial year; otherwise, under “Inventories”.

IAS 32 Financial instruments: presentation – Direct taxes it is clarified that direct taxes on

distributions to holders of equity instruments and transaction costs on equity instruments will apply IAS

12.

IAS 34 Interim Financial Reporting – Information on operating segments”: this standard clarifies

requirements on information to be reported in interim reports as to assets and liabilities relating to

operating segments.

The company adopted these amendments as from 1 January 2013.

Standards endorsed by the European Union and not applied by the Company in advance

IFRS 10 – Consolidated Financial Statements

On 12 May 2011 the IASB issued IFRS 10 – Consolidated Financial Statements, which replaces SIC-12

Consolidation - Special Purpose Entities and IAS 27 - Consolidated and Separate Financial Statements, which

will be renamed “Separate Financial Statements” and will regulate the accounting treatment of equity

investments in separate financial statements. The new standard identifies a single control model applicable to

all companies. Below are the main developments:

according to IFRS 10, there is only one fundamental principle for the consolidation of all types of

entity, and this principle is based on control. This change removes the inconsistency that was

perceived between the previous IAS 27 (based on control) and SIC 12 (based on the transfer of risks

and rewards);

a firmer definition of control has been introduced with respect to the past, based on three elements

on the part of the investor: (a) power over the acquired enterprise; (b) exposure or rights to variable

returns from the investor’s involvement with the investee; and (c) the ability of the investor to use its

power over the investee to affect the amount of the investor’s returns;

IFRS 10 requires an investor, if it wishes to assess whether it has control over the acquired

enterprise, to focus on the activities that significantly affect its returns;

IFRS 10 states that only substantive rights should be considered in assessing the existence of

control, namely those that can be exercised in practice when important decisions are to be taken

concerning the acquired enterprise;

IFRS 10 gives practical guidance in order to help in the assessment of whether there is control in

complex situations, such as de facto control, potential voting rights, situations in which it has to be

established whether the decision-maker is acting as agent or principal, etc..

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The standard will be applicable on a retrospective basis from 1 January 2014, with early application permitted

as from 1 January 2013. This standard has no effects as no Trenitalia’ consolidated accounts are prepared.

IFRS 11 – Joint arrangements

On 12 May 2011 the IASB issued IFRS 11 – Joint arrangements which replaces SIC-13 – Jointly Controlled

Entities – Non-monetary Contributions by Venturers and IAS 31 – Interests in Joint Ventures. IFRS 11, without

prejudice to the criteria to identify joint control, sets out the reporting principles for entities that are parties to

said agreements, defining the equity method as the only method of accounting for the purposes of

consolidated financial statements. According to IFRS 11, the existence of a separate vehicle is not a sufficient

condition to classify a joint arrangement as a joint venture.

Following the issue of the standard, IAS 28 – Investments in Associates and joint venture was amended in

order to also include interests in joint ventures within its scope of application from the effective date of the

standard.

The standard will be applicable on a retrospective basis from 1 January 2014, with early application permitted

as from 1 January 2013. This standard has no effects as no Trenitalia’ consolidated accounts are prepared.

IFRS 12 – Disclosure of Interests in Other Entities

On 12 May 2011 the IASB issued IFRS 12 – Disclosure of Interests in Other Entities, which is a new

and complete standard on the additional information to be provided in the consolidated financial statements

on any type of equity investment, including those held in subsidiaries, joint arrangements, associates,

unconsolidated special purpose entities and any other vehicle company.

The standard will be applicable on a retrospective basis from 1 January 2014, with early application permitted

as from 1 January 2013. This standard has no effects as no Trenitalia’ consolidated accounts are prepared.

IAS 32 – Financial Instruments: presentation

On 16 December 2011 the IASB issued some amendments to IAS 32 – Financial Instruments:

presentation, in order to clarify the application of some criteria for the setoff of financial assets and liabilities

governed by IAS 32, thus actually making it more difficult. The amendments will be applicable on a

retrospective basis for the financial years commencing on or after 1 January 2014, with early application

permitted as from 1 January 2013.

IFRS 10 IFRS 11 IFRS 12 – Amendments: transition guidance

On 28 June 2012 the IASB issued some amendments to IFRS 10 – Consolidated financial statements,

IFRS 11 – Joint arrangements and IFRS 12 – Disclosure of Interests in Other Entities, as resulting

from the proposals contained in the Exposure Draft – Transition Guidance published in December 2011. The

amendments substantially provide further relief in the transition to the new standards by limiting the

obligation to provide adjusted comparative information to the previous comparative financial year only.

Furthermore, for the first year that IFRS 12 is applied, the requirement to present comparative information for

the disclosures related to unconsolidated structured entities is removed. The amendments will be applicable

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2013 Financial Statements 83

for the financial years commencing after 1 January 2014, with early application permitted as from 1 January

2013.

IFRS 10 IFRS 12 IAS 27 – Investment entity

On 31 October 2012 the IASB published some amendments to IFRS 10 – Consolidated Financial

Statements, IFRS 12 – Disclosure of Interests in Other Entities and IAS 27 – Separate Financial

Statements. The abovementioned amendments clarify the definition of “investment entity” and introduce an

exception to the application of the principle of consolidation for such entities, and allow the same to measure

their subsidiaries at Fair Value. Furthermore, the amendments better define some disclosure requirements

that the investment entities must provide in the notes. The standard will be applicable for the financial years

commencing on or after 1 January 2014.

IAS 36 – Impairment of Assets – Disclosures on the recoverable amount of non-financial assets

On 29 May 2013 the IASB issued an amendment to IAS 36 – Impairment of Assets – Disclosures on

the recoverable amount of non-financial assets. The amendment regulates the information to be

provided in relation to the recoverable amount of an impaired asset in the case this amount is determined at

the asset’s fair value less costs of disposal.

The standard will be applicable for the financial years commencing on 1 January 2014.

IAS 39 – Financial Instruments: Recognition and Measurement

On 27 June 2013 the IASB issued some amendments to IAS 39 – Financial Instruments: Recognition

and Measurement, named “Novation of Derivatives and Continuation of Hedge Accounting.” The

amendments provide an exception to the requirement to discontinue hedge accounting in situations where

derivatives designated in hedging relationships are novated to replace the original counterparty as a

consequence of laws or regulations, in order to ensure the successful discharge of the obligation undertaken

and if certain conditions are met.

The same amendment will be included in IFRS 9 – Financial Instruments. These amendments will be

applicable from the financial years commencing on 1 January 2014, with early application permitted.

Accounting standards not endorsed by the European Union.

As at the date of these Financial Statements, the competent bodies of the European Union had not yet

concluded the necessary process of endorsement for the adoption of the following accounting standards and

amendments:

IFRS 9 – Financial instruments

On 12 November 2009 the IASB published IFRS 9 – Financial instruments, which represents the first

stage of a phased process that is aimed at fully replacing IAS 39 and introduces new criteria for the

classification and measurement of financial assets and liabilities. Specifically, the new standard applies, for

financial assets, a single approach based on the procedures to manage financial instruments and on the

characteristics of contractual cash flows of the financial assets themselves in order to determine their

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2013 Financial Statements 84

accounting policy, replacing the different rules laid down in IAS 39 up to now. On the contrary, as to financial

liabilities, the main amendment concerns the accounting treatment of changes in fair value of a financial

liability designated as financial liability at fair value through profit and loss, in the event that they are due to a

change in the credit rating of the liability itself. According to the new standard, these changes must be

recognized in Other comprehensive income (OCI) and will no longer be taken through profit or loss. The

endorsement of this standard is currently suspended.

IFRIC 21 – Levies

On 20 May 2013 the IASB issued IFRIC 21 – Levies, which is an interpretation of IAS 37 – Provisions,

Contingent Liabilities and Contingent Assets. IFRIC 21 provides guidance on when an entity must recognise a

liability for levies imposed by a government, except for those already regulated by other standards (e.g. IAS

12 – Income Taxes).

One of the requirements laid down under IAS 37 for the recognition of a liability is represented by the

existence of a present obligation of the entity as a result of a past event (obligating event). The interpretation

clarifies that an entity recognises a liability for a levy when the activity that triggers payment, as identified by

the relevant legislation, occurs.

IFRIC 21 will be effective from the financial years commencing on 1 January 2014.

IAS 19 – Employee benefits

On 21 November 2013 the IASB issued some amendments to IAS 19 – Employee Benefits, named

“Defined Benefit Plans: Employee Contributions”. The objective of the amendments is to simplify the

accounting for contributions that are independent of the number of years of employee service, such as, for

example, employee contributions that are calculated according to a fixed percentage of salary. The

amendments will be applicable from 1 July 2014, with early application permitted.

Annual Improvements to IFRSs: 2010-2012 Cycle

On 12 December 2013 the IASB published a document named Annual Improvements to IFRSs: 2010-

2012 Cycle, which adopts the changes to the standards in the framework of their annual improvement

process, in response to eight issues addressed during the 2010-2012 cycle. The standards included in this

cycle are: IFRS 2, IFRS 3, IFRS 8, IFRS 13, IAS 7, IAS 16/38 and IAS 24. These amendments will be

applicable from 1 July 2014, with early application permitted.

Annual Improvements to IFRSs: 2011-2013 Cycle

On 12 December 2013 the IASB published a document named Annual Improvements to IFRSs: 2011-

2013 Cycle, which adopts the changes to the standards in the framework of their annual improvement

process, in response to four issues addressed during the 2011-2013 cycle. The standards included in this

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2013 Financial Statements 85

cycle are: IFRS 1, IFRS 3, IFRS 13 and IAS 40. These amendments will be applicable from 1 July 2014, with

early application permitted.

Use of estimates and valuations

The preparation of the financial statements requires the directors to apply accounting standards and methods,

which are based, in some circumstances, on difficult and subjective valuations and estimates based on

historical experience and on assumptions that are from time to time considered to be reasonable and realistic

depending on the related circumstances. Therefore, the final results of the items in the financial statements,

whose current calculation is based on the abovementioned estimates and assumptions have been used may in

the future differ, even significantly, from those reported in the financial statements, because of the

uncertainty that characterizes the assumptions and conditions on which the estimates are based. The

estimates and assumptions are reviewed periodically and the effects of any change are recognized in the

income statement, if the same affects the financial year only. In the event that the review affects financial

years, both current and future, the change is recognized in the financial year when the review is carried out

and in the related future financial years.

Therefore, the final results may differ, even significantly, from these estimates following possible changes in

the factors considered in the determination of these estimates.

Below are briefly summarised the accounting standards that require, more than others, a major subjectivity by

the directors in the preparation of estimates and for which a change in the conditions behind the assumptions

used could have a significant impact on the financial data:

i) Impairment of assets

In accordance with the accounting standards applied by the Company, property, plant and equipment and

intangible assets with a definite life are subject to a test aimed at establishing whether there is an impairment

loss, which must be recognized through a write-down, when there is evidence that difficulties will arise for the

recovery of the related net book value through the use. The test to check the existence of the

abovementioned evidence requires the directors to make subjective valuations based in the information

available within the Company and in the market, as well as from the historical experience. Furthermore,

should it be established that there is a potential impairment loss, the Company determines the same using

valuation techniques that are considered to be suitable. The correct identification of the elements indicating

the existence of a potential impairment loss, as well as any estimates for the determination of the same

depend on factors that may vary over time, thus affecting valuations and estimates made by the directors.

ii) Amortisation and depreciation

The cost of property, plant and equipment and intangible assets is amortised and depreciated on a straight-

line basis over the estimated useful life of the related assets. The useful economic life of the Company’s fixed

assets is determined by the directors at the time when the fixed asset has been purchased; it is based on the

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2013 Financial Statements 86

historical experience for similar fixed assets, market conditions and forecasts concerning future events that

may have an impact on the useful life. Therefore, the actual economic life may differ from the estimated

useful life. The Company assesses any technological and sector changes to update the residual useful life on a

periodical basis. This periodical update may entail a change in the period of amortisation and depreciation and

then also in the amortisation and depreciation rates of future financial years.

iii) Provisions for risks and charges

Provisions are set aside against legal and tax risks which represent the risk of a negative outcome. The value

of recognised provisions relating to these risks represents the best estimate made by the directors at the

reporting date. This estimate entails the adoption of assumptions that depend on factors which may vary over

time and which may have significant effects compared to the current estimates made by the directors for the

preparation of the Company’s financial statements.

iv) Taxes

The recognition of deferred tax assets is made on the basis of the forecast income expected in future financial

years. The valuation of any expected income for the purposes of the recognition of deferred taxes depends on

factors that may vary over time and determine significant effects on the measurement of deferred tax assets.

v) Fair value of derivative financial instruments

The fair value of derivative financial instruments that are not listed in active markets is determined using

valuation techniques. The Company uses valuation techniques that use inputs that can be observed in the

market, either directly or indirectly, at the end of the financial year, and that are connected to the assets and

liabilities being measured. Even if the estimates of the abovementioned fair values are considered to be

reasonable, any possible changes in the estimate factors on which the calculation of the aforesaid values is

based may produce different valuations.

vi) Operating segments

As at the date of these Financial Statements, the Company had not debt instruments or shares listed on a

regulated market and was included in the scope of consolidation of the FS Italiane Group, which provides

information on its operating segments in the Notes to the Consolidated Financial Statements, in accordance

with IFRS 8.2 b.

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2013 Financial Statements 87

5. Financial risk management and other risk factors FINANCIAL RISKS

The activities carried out by the Company expose it to various types of risks that include market risk (interest

rate, price and exchange risk), liquidity risk and credit risk.

This section provides information relating to the Company’s exposure to each of the risks listed above, the

objectives, policies and processes for the management of these risks and the methods used to assess them,

as well as the management of the capital. These financial statements also include additional quantitative

information. The Company’s risk management focuses on the volatility of financial markets and is aimed at

minimizing potential side effects on the Company’s economic and financial performance.

Credit risk

The credit risk is the risk that a customer or one of the counterparties of a financial instrument may cause a

financial loss in not complying with an obligation. The credit risk mainly arises from trade receivables,

receivables from the public administration, the company’s financial investments and cash and cash

equivalents. For financial institutions and banks, the company will only accept counterparties with an

independent rating.

The Company has issued organisational procedures for credit management in order to define strategies and

guidelines of the commercial credit policy, to assign credit limits for customers, to split credit risk, to check

customers’ solvency and to start debt collection operations.

The forecast recoverability of credits is valued position by position, taking account of the instructions given by

the heads of department and by the internal and external legal counsels who deal with the recovery

procedure (if any). Accordingly, any credits for which as at the balance sheet date it is probable that a loss

will arise are written down.

In relation to derivative financial instruments which are used for hedging purposes and which can potentially

generate credit exposure to counterparties, the company applies a policy that defines concentration limits by

counterparty and by class of rating.

The table below reports the Company’s exposure to credit risks:

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2013 Financial Statements 88

The tables below report the exposure to credit risks by counterparty, in absolute terms and as a percentage,

excluding Cash and cash equivalents:

Owing to the activities that the Company performs, among its receivables are the sums due to it in

accordance with services contracts with the Regional Governments and the Government and receivables from

ordinary customers which are mainly related to its work for Cargo customers. Therefore, the type of

receivables claimed by the Company is largely attributable to government and public bodies, such as the

Ministry of Economy and Finance and Regional Governments. Special procedures are followed that tend to

31.12.2013 31.12.2012

Current trade receivables 2,111,791 2,318,843

Provision for bad debts (230,886) (220,353)

Current trade receivables, net of provision for bad debts 1,880,906 2,098,490

Other current assets 51,413 175,593

Provision for bad debts (1,671) (2,027)

Other current assets, net of provision for bad debts 49,742 173,566

Non-current financial assets (including derivatives) 23,329 23,923

Provision for bad debts - -

Non-current financial assets (including derivatives), net of

provision for bad debts 23,329 23,923

Other non-current assets 21,629 24,079

Provision for bad debts - -

Other non-current assets, net of provision for bad debts 21,629 24,079

Cash and cash equivalents 123,760 61,511

Current financial assets (including derivatives) 16,609 2,352

Provision for bad debts - -

Current financial assets (including derivatives), net of

provision for bad debts 16,609 2,352

Total exposure, net of provision for bad debts 2,115,975 2,383,922

31.12.2013 31.12.2012

Public Administration, Italian Government, Regions 1,438,144 1,529,979

Ordinary customers 171,663 259,983

Financial institutions 22,750 22,750

Other debtors 359,659 509,699

Total exposure, net of provision for bad debts 1,992,215 2,322,411

31.12.2013 31.12.2012

Public Administration, Italian Government, Regions 72.19% 65.88%

Ordinary customers 8.62% 11.19%

Financial institutions 1.14% 0.98%

Other debtors 18.05% 21.95%

Total exposure, net provision for bad debts 100% 100%

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2013 Financial Statements 89

minimise the risk of creditors’ insolvency by assessing their degree of reliability, especially big Cargo

customers. Only companies that issue satisfactory guarantees are allowed to exceed the credit limit.

Therefore, the credit risk, which is represented by the Company’s exposure to potential losses arising from the

failure by its own debtors to comply with their obligations is significantly reduced.

The table below provides a distribution of financial assets at 31 December 2013, as broken down by overdue

items, net of provision for bad debts and excluding cash and cash equivalents:

Receivables from Public Administrations mainly related to receivables from regions and from the Ministry of

Economy and Finance for Services contracts, equal to about Euro 1,205 million and Euro 246 million,

respectively, of which about 58% has already expired. Particular importance is attached to expired receivables

from Regions: Lazio (about Euro 254 million), Campania (about Euro 196 million) and Piedmont (about Euro

168 million).

Liquidity risk

The liquidity risk is the risk that an entity may have difficulties in complying with the obligations associated

with financial liabilities to be settled delivering cash on hand or any other financial asset. As stated in the

previous paragraph, the Company claims considerable receivables from the Government and the Regional

Governments, which are not collected within the due time limits. However, the payment of the same by the

Not expired 0-180 180-360 360-720 beyond 720 Total

Public Administration, Italian Government, Regions (gross) 612,323 540,769 171,787 133,796 - 1,458,675

Provision for bad debts (3,901) - - (16,631) - (20,531)

Public Administration, Italian Government, Regions (net) 608,423 540,769 171,787 117,165 - 1,438,144

Ordinary customers (gross) 137,288 23,367 172,741 26,887 - 360,283

Provision for bad debts (1,144) - (164,051) (23,426) - (188,620)

Ordinary customers (net) 136,145 23,367 8,690 3,461 - 171,663

Financial institutions 22,750 22,750

Other debtors (gross) 271,438 25,714 14,667 70,212 1,033 383,064

Provision for bad debts (1,677) - - (21,728) - (23,405)

Other debtors (net) 269,761 25,714 14,667 48,485 1,033 359,659

Total exposure, net of provision for bad debts 1,014,328 589,849 195,144 191,861 1,033 1,992,215

Not expired 0-180 180-360 360-720 beyond 720 Total

Public Administration, Italian Government, Regions (gross) 724,708 435,859 164,766 217,629 - 1,542,963Provision for bad debts (3,901) - - (9,084) - (12,984)Public Administration, Italian Government, Regions (net) 720,808 435,859 164,766 208,545 - 1,529,979Ordinary customers (gross) 179,769 47,238 165,322 48,643 - 440,972Provision for bad debts (1,086) - (155,844) (24,059) - (180,988)Ordinary customers (net) 178,683 47,238 9,478 24,584 - 259,983Financial institutions 22,750 22,750Other debtors (gross) 393,545 58,489 12,504 73,568 - 538,106Provision for bad debts (2,272) - - (26,135) - (28,407)Other debtors (net) 391,273 58,489 12,504 47,433 - 509,699

Total exposure, net of provision for bad debts 1,290,763 541,587 186,748 303,313 - 2,322,411

Overdue by

Overdue by

31.12.2013

31.12.2012

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2013 Financial Statements 90

Government and the Regional Governments, even if slow, allows the Company to manage any financial

requirements arising from the need to meet the expiry dates of medium-long terms debts envisaged in the

2014 financial year. For this purpose, the Company has access to credit facilities on committed and

uncommitted terms that are held by the Parent Company, specifically earmarked for Trenitalia in order to

meet temporary cash requirements, and it also belongs to the Ferrovie dello Stato Italiane Group’s cash

pooling system for the optimisation of liquidity. The committed and uncommitted credit lines amount to about

Euro 130 million.

The table below reports the contractual expiry dates of financial liabilities, including interest to be paid:

The tables below report the repayments of financial liabilities as at 31 December 2013 and 31 December

2012, as broken down by maturity within 12 months, from 1 to 5 years and beyond 5 years:

Non-derivative financial liabilities

Loans from banks 2,075,596 2,209,943 122,805 163,568 368,799 930,576 624,195

Loans from shareholders 3,543,527 4,078,812 144,476 31,280 291,557 1,362,779 2,248,720

Trade payables 1,622,123 1,622,123 1,622,123 - - - -

Financial liabilities 785,611 785,611 785,611 - - - -

Total 8,026,857 8,696,489 2,675,015 194,848 660,356 2,293,355 2,872,915

Derivative financial liabilities

Derivatives on interest rate 193,364 181,015 44,390 40,786 64,289 30,288 1,262

Total 193,364 181,015 44,390 40,786 64,289 30,288 1,262

Non-derivative financial liabilities

Loans from banks 2,158,926 2,289,730 47,594 47,317 286,466 1,112,194 796,159

Loans from shareholders 3,466,642 3,791,937 60,991 606,529 22,135 888,755 2,213,527

Trade payables 1,989,330 1,989,330 1,989,330 - - - -

Financial liabilities 801,342 801,342 801,342 - - - -

Total 8,416,240 8,872,339 2,899,257 653,846 308,601 2,000,949 3,009,686

Derivative financial liabilities

Derivatives on interest rate 318,288 305,679 60,337 60,978 84,979 94,739 4,646

Total 318,288 305,679 60,337 60,978 84,979 94,739 4,646

1-2 years 2-5 yearsBeyond 5

years31/12/2013

Book

value Contractual

cash flows

6 months or

less

6-12

months

2-5 yearsBeyond 5

years

6-12

months1-2 years31/12/2012

Book

value Contractual

cash flows

6 months or

less

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2013 Financial Statements 91

The contractual flows from variable-rate loans have been calculated by using the forward rates estimated at

the closing date of the financial statements. The balance of the intercompany current account and short-term

loans payable disbursed by the Parent Company are classified, due to their nature, under the shorter maturity

(“6 months or less”) set out in the disclosure table.

Market risk

The market risk is the risk that the fair value or future cash flows of a financial instrument may fluctuate

following changes in market prices, due to changes in exchange rates, interest rates or quotations of equity

instruments. The objective of the market risk management is the management and control of the Company’s

exposure to this risk within acceptable levels, while optimizing returns on investments. The Company uses

hedging transactions for the purpose of managing the volatility of the results.

Interest rate risk

The company is mainly exposed to the interest rate risk relating to medium/long-term loans payable. For the

purposes of optimising interest rate risk, the company has opted to benchmark its own long-term financial

debt only to the most liquid market index (6-month Euribor).

Non-derivative financial liabilities

Loans from banks 2,075,596 274,554 1,227,708 573,334

Loans from Shareholders 3,543,527 149,040 1,426,026 1,968,461

Trade payables 1,622,123 1,622,123

Financial liabilities 785,611 785,611

Total 8,026,857 2,831,328 2,653,734 2,541,795

Non-derivative financial liabilities

Loans from banks 2,158,926 83,926 1,337,708 737,292

Loans from Shareholders 3,466,642 656,944 822,121 1,987,577

Trade payables 1,989,330 1,989,330

Financial liabilities 801,342 801,342

Total 8,416,240 3,531,542 2,159,829 2,724,869

Beyond 5

years31/12/2013 Book value

Within 12

months1-5 years

Beyond 5

years31/12/2012 Book value

Within 12

months1-5 years

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Following the resolution passed by the Board of Directors of Trenitalia starting from 2005 and with

subsequent resolutions the Company has defined an interest rate risk management policy. The policy, which

was updated in 2013, provides for:

a hedge of up to 50% of the medium/long-term debt through plain vanilla derivative instruments on

interest rates that have a term equal to that of the transaction;

constant monitoring of the residual 50% in order to seize further hedging opportunities in a short

period.

The objective of the strategy, as a whole, is to limit changes in cash flows relating to financing operations in

place (Cash Flow Hedge) in order to meet the borrowing cost objectives laid down in the long-term plan

and/or annual budget. The Company only uses Interest Rate Swaps/Plain Vanilla Collars/Plain Vanilla Caps.

The implementation of the strategy has allowed the Company to limit borrowing costs, including the credit

spread, below 3% in the last 3 financial years.

As of 31 December 2013 the portion of medium- to long-term debt with fixed finance costs or costs covered

until the maturity of the transaction concerned was nearly 50%.

Hedging transactions that are more limited in time, effective between the second half of 2013 and the second

half of 2015, are at present in being with regard to the portion of debt that is not covered until maturity. 70%

of this debt has been hedged through Interest Rate Collars, while the remaining 30% is hedged through

Interest Rate Caps.

The tables below report the indebtedness of Trenitalia, including short-term debt, and the related hedges.

The table below reports the breakdown of medium/long-term loans (including the short-term portion) and

current and non-current financial liabilities, excluding hedging derivatives, at variable and fixed rate:

The table below reports the incidence of medium/long-term loans (including the short-term portion) and

current and non-current financial liabilities, excluding hedging derivatives, which convert variable rates into

fixed rates or which provide hedging against rises in variable rates beyond the preset maximum levels:

Book

value Contractual

cash flows

Current

portion 1 and 2 years 2 and 5 years beyond 5

years

Variable rate 5,727,505 6,214,910 1,214,011 633,855 2,185,613 2,181,431

Fixed rate 677,228 859,456 33,728 26,501 107,743 691,484

Balance at 31 december 2013 6,404,733 7,074,366 1,247,739 660,356 2,293,356 2,872,915

Variable rate 6,350,532 6,796,005 1,561,675 298,771 1,965,903 2,969,656

Fixed rate 76,377 87,003 2,098 9,830 35,046 40,029

Balance at 31 December 2012 6,426,909 6,883,008 1,563,773 308,601 2,000,949 3,009,685

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2013 Financial Statements 93

The Company does not account for fixed-rate financial assets or liabilities at fair value through profit or loss

and does not designate derivative instruments (interest rate swaps) as hedging instruments according to the

fair value hedging model. Accordingly, any changes in interest rates at the closing date of the financial

statements would have no effects on the income statement.

Below is reported a sensitivity analysis that shows the effects that would have been recorded in terms of

changes in financial charges had a change arisen, either as an increase or a decrease, of 50 basis points in

the Euribor interest rates applied to loans payable in the course of 2013:

It should be noted that an increase in financial charges on the variable-rate debt is partially offset by a

reduction in net flows from hedging derivatives (and vice versa).

Below is also reported a sensitivity analysis that shows the effects of a parallel shift of 50 basis points, either

as an increase or a decrease, in the swap rate curve recorded as at 31 December 2013 on the fair value of

hedging derivative instruments:

Exchange risk

The company is mainly active in the Italian market, and in any away in countries of the Euro zone and,

therefore, the risk arising from the different currencies in which it operates is very limited.

31.12.2013 31.12.2012

Before hedging with derivative instruments

Variable rate 89.43% 98.81%

Fixed rate 10.57% 1.19%

After hedging with derivative instruments

Variable rate 14.96% 13.95%

Protected variable rate 57.68% 48.77%

Fixed rate 27.36% 37.28%

Shift + 50 bps Shift - 50 bps

Interest expense on variable-rate debt 26,791 (26,791)

Net Cash Flow from hedging transactions (21,398) 23,109

Total 5,393 (3,682)

Shift + 50 bps Shift - 50 bps

Fair value of hedging derivatives 40,472 (42,962)

Total 40,472 (42,962)

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It should be noted that the Company has loans in place which are denominated in Swiss francs for an overall

amount of CHF 81 million, as reported in the table below:

Capital management

The Company’s main objective within the capital risk management is that of safeguarding the going-concern

basis of the business so as to ensure the protection and the increase in the value for shareholder and benefits

to the other stakeholders.

Financial assets and liabilities by category

To complete information on financial risks, the table below reports a reconciliation between financial assets

and liabilities as reported in the statement of financial position and category of financial assets and liabilities

identified on the basis of the requirements of IFRS 7:

Counter-value

in EURCHF

Counter-value

in EURCHF

Payables to Group companies 65,982 81,000 67,097 81,000

Gross exposure in the Balance Sheet 65,982 81,000 67,097 81,000

Forward contracts on foreign exchange rates - - - -

Net exposure 65,982 81,000 67,097 81,000

31/12/2013 31/12/2012

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31 December 2013

Receivables

and loans

disbursed

Payables and

loans received

Hedging

derivatives

Non-current financial assets (including derivatives) 23,329

Other non-current assets 26,482

Current trade receivables 1,880,906

Current financial assets (including derivatives) 16,609

Cash and cash equivalents 123,760

Tax receivables 625

Other current assets 62,958

Medium/long-term loans 5,195,528

Non-current financial liabilities (including derivatives) 174,635 174,635

Other non-current liabilities 80,598

Short-term loans and current portion of medium/long-term loans 423,595

Current trade payables 1,622,123

Current financial liabilities (including derivatives) 804,339 18,729

Other current liabilities 636,494

31 December 2012

Receivables

and loans

disbursed

Payables and

loans received

Hedging

derivatives

Non-current financial assets (including derivatives) 23,923

Other non-current assets 28,933

Current trade receivables 2,098,621

Current financial assets (including derivatives) 2,352

Cash and cash equivalents 61,511

Tax receivables 2,746

Other current assets 193,969

Medium/long-term loans 4,884,697

Non-current financial liabilities (including derivatives) 248,874 248,874

Other non-current liabilities 25,917

Short-term loans and current portion of medium/long-term loans 740,870

Current trade payables 1,989,330

Current financial liabilities (including derivatives) 870,756 69,414

Other current liabilities 615,039

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2013 Financial Statements 96

OTHER RISK FACTORS

Business risks

The medium- and long-distance Passenger Transport, as reported in the 2012 Financial Statements, is

conditional on consumption levels, employment levels and the overall development of the main economic

factors. The competition in the means of transport is a decisive factor to be successful in the railway transport

market.

High Speed lines and related accessory services allowed the railway sector in question to start competition

with the other means of transport (airplane-car), above all through the reduction in travel times, the comfort

of the journey and the arrival to the urban centres of major cities. In this market segment the successful

crucial factor will increasingly be the maintenance of and improvement in the quality of the service offered

and the rapid adaptation to the trend in market demand. For this reason the Company has taken important

actions that will allow it to respond to the expectations of its customers, including: renewal of the fleet

starting from 2015 with the new High Speed trains, the expansion of the High Speed offer, the diversification

of service levels in lieu of classes, the improvement in the Frecciarossa services (WiFi, multi-media services,

etc.) and the new sales platform via Web and on the traditional channels.

Starting from 2012 the “market” sector was also affected by the change in market equilibriums resulting from

the entry of new private operator, which began to run a gradually increasing number of services on the High

Speed Rome Venice and Turin Salerno lines. At present, operating risks arising from the entrance of the new

operator in the High Speed sector, appear to be consistent with the assumptions made in the Company’s

Business Plan. Furthermore, whether the assumptions are confirmed depends on the performance of the

mobility market and the extent to which it undergoes pressure as a result of exploiting the price factor: if this

is done there could be effects on profit levels.

Changes to law took place in 2012, coming into effect during the year 2013, which contemplated the

obligation, afterwards abrogated in Constitutional Court judgment no. 199 of 20 July 2012, for Regional

Governments to put regional transport services out to tender when the current contracts expired.

Nevertheless tenders are allowable even if they are no longer compulsory and some Regional Governments

have confirmed their intention to proceed in this manner. In fact, during the year, some Regional

Governments (Emilia Romagna, Tuscany, Veneto and Umbria) informed that they did not intend to renew the

contract upon expiry and that were to start tender procedures for the award of railway services. The Friuli

Venezia Giulia Regional Government call for tender was expected to be published as early as in the first four

months of 2014. Discussions were started, on the other hand, in other Regions regarding the renewal of

expiring services contracts. The possible effects should the services contracts with the Regional Governments

not be renewed will come into play in financial years following 2014; they are not foreseeable at the moment

and are, in any case, to be considered as risks run by a company operating on the free market. In executing

the services contracts, the Company has included suitable safeguarding clauses to protect the investments it

has made in order to counter the risk of agreements not being renewed. It is absolutely evident that this

uncertainty reflects on the company plans and on the commitments undertaken by the Company with the

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2013 Financial Statements 97

Regional Governments in the definition of the services contracts, with specific regard to the sums to be

destined to investments.

The crisis in public funds, which has been seriously affecting local authorities for some time, could lead to

uncertainties as to whether the payments of the fees for the services will be collected at the contractually

agreed times. However, Trenitalia has signed contracts with the Italian Regional Governments which do not

depend from the procedures through which the Regional Governments themselves find the necessary sources

of financing for the service; nevertheless, the uncertainty that dominates the entire sector and the lack of

available resources induced the Regional Governments to reduce the offer in the course of the financial year,

as permitted by the contracts themselves. These processes, even if included within the company’s capacity to

adapt, are in clear conflict with the mobility needs expressed by local areas on one hand, and on the other

with a planning criterion, even if minimum, which is imposed by the railway sector in relation to the time

required for the implementation of any investment plans which could accompany the offer development.

The market risks continue to be particularly evident in the Cargo transport sector, which is heavily affected by

the negative trend in the economy with a sharply reduced industrial production The price lever is a factor that

discriminates between the different operators and the different forms of transport in a significantly shrinking

market. Against this background, in the Cargo Division the complex process of the rationalisation of the

operational structure continued with a view to the reorganisation of processes, which will enable the

corporate restructuring plan to be implemented; this plan has been designed so that the Division can become

more efficient and competitive in terms of service costs. The Cargo Division also continued with its efforts to

penetrate the French market specifically with the transport of goods in the cereals, motor vehicle and steel

sectors.

Operational risks

As already reported in the 2012 Financial Statements, the Company makes use of outside suppliers to do

maintenance work and construct new rolling stock and also always for the provision of spare parts for

maintenance. During the past few years Trenitalia has put a substantial change to procurement policies in

hand during the last few years by reformulating its internal procedures and, in compliance with public

contracts legislation, has made even stronger efforts to buy all components connected with safety only from

original manufacturers, while it has always called public tenders for all other components.

The staying power of some suppliers in the maintenance and construction sector of rolling stock was severely

strained by the financial crisis, followed by a severe credit squeeze, owing to their intrinsically weak position in

the structure of their business financing.

The Company continues to monitor the different issues reported, in particular in the past, on important job

orders that have generated disputes with suppliers but that have generated above all operational difficulties in

the year and heavy disservices in some cases.

In other cases, contracts were terminated due to the non-compliance by the suppliers themselves, activating

the enforcement of the sureties given to secure contracts. It is absolutely evident that the general crisis of the

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2013 Financial Statements 98

credit market also affected heavily railway sub-suppliers, thus creating, in some cases, strong tensions on the

manufacturers, which are also small/medium-sized businesses.

An additional risk may arise from the management of cleaning service contracts that could have an impact on

the quality of the service.

Legal and contractual risks

No major legal or contract risks are reported additional to those mentioned in the financial statements at 31

December 2012, which mainly arise from disputes pending between the company and various parties, such as

suppliers, customers and personnel. In relation to these risks, instructions are given and provisions are set

aside after having estimated the respective probability of contractual and legal risks arising. The current

utilization of these provisions depends on when the risk materializes and to the extent that it was estimated.

In this regard, note in particular:

(i) the numerous actions brought by the former cleaning service contractors following the

termination of contracts decided by the company as a result of the serious defaults reported

in the performance of the contracts;

(ii) a litigation brought by the company responsible for the building of the Impianto Dinamico

Polifunzionale (IDP) plant in Naples for objections that were raised during the performance

of the work;

(iii) some disputes brought by a manufacturing company of rolling stock with reference to

objections raised by the Customer for delays or disservices that occurred within the supplies

which have been subjected to the penalties set out as per contract, a portion of which has

been deducted from the payments made;

(iv) the recourse to legal actions by the former employees of the cleaning firms that have not

been awarded contracts, in order to seek enforcement actions to recover, against the

company (joint liability), portions of remuneration and/or TFR not paid out by their

employers at the end of the employment relationship;

(v) the payment orders against some Regional Governments for the collection of expired

receivables.

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2013 Financial Statements 99

Information on the Balance Sheet 6. Property, plant and equipment

Below is reported the statement of amounts of property, plant and equipment at 31 December 2013 with the

related changes of the financial year. It should be noted that, during 2013, no changes were recorded in the

estimated useful life of the assets.

Land, buildings,

railway and port

infrastructure

Plant and

machinery

Industrial and

business

equipment

Other assets

Fixed assets

under

construction and

advances

Total

Historical cost 1,976,470 13,810,819 165,316 375,854 821,110 17,149,569

Depreciation and impairment losses (595,569) (6,898,336) (112,832) (318,292) (12,448) (7,937,477)

Grants - (398,451) - (76) (2,846) (401,373)

Balance at 01.01.2012 1,380,901 6,514,032 52,484 57,486 805,816 8,810,719

Investments 64 1,080,053 1,080,117

Entries into service 28,950 938,391 6,457 38,366 (1,010,604) 1,560

Depreciation (22,900) (842,900) (11,720) (20,275) (897,795)

Impairment losses (6,190) (6,190)

Disposals and divestments (11,331) (8) (16) (4,971) (16,326)

Other changes -

Change in grants (3,981) (5,101) (9,082)

Other reclassifications 23,518 (23,518) 1,107 1,107

Total changes 29,568 50,471 (5,271) 19,246 59,377 153,391

Historical cost 2,028,938 14,714,361 171,765 415,375 885,588 18,216,027

Depreciation and impairment losses (618,469) (7,747,426) (124,552) (338,567) (12,448) (8,841,462)

Grants - (402,432) - (76) (7,947) (410,455)

Balance as at 31.12.2012 1,410,469 6,564,503 47,213 76,732 865,193 8,964,110

Investments 72 900,937 901,009

Entries into service 15,539 928,200 7,507 34,277 (986,405) (882)

Depreciation (23,736) (841,351) (11,478) (22,857) (899,422)

Impairment losses (12,524) (18) (2) (7,392) (19,936)

Disposals and divestments* (8,014) (1) (1,117) (9,132)

Increases in grants for the period (10,669) (3,556) (14,225)

Other changes (35,853) (35,853)

Other reclassifications** - (191) (191)

Total changes (8,197) 55,642 (3,990) 10,373 (132,460) (78,632)

Historical cost 2,044,477 15,634,547 179,271 448,607 764,076 19,070,978

Depreciation and impairment losses (642,205) (8,601,301) (136,048) (361,426) (19,840) (9,760,820)

Grants - (413,101) 0 (76) (11,503) (424,680)

Balance as at 31.12.2013 1,402,272 6,620,145 43,223 87,105 732,733 8,885,478

Disposals and divestments*

Decreases in historical cost from disposals and divestments (246,049) (49) (8,883) (254,981)

Decreaeses in depreciation fund for disinvestments 131,887 48 7,766 139,701

Decreases in impairment losses for disposals 106,148 106,148

Total disposals and disinvestments - (8,014) (1) (1,117) - (9,132)

Reclassifications**

Change in historical cost for reclassifications (191) (191)

Changes in depreciation fund for reclassifications -

Changes in impairment losses for reclassifications -

Totale reclassifications - - - (191) (191)

PROPERTY, PLANT AND EQUIPMENT

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2013 Financial Statements 100

The most significant changes recorded in the financial year related to:

Investments of Euro 901,009 thousand mainly relate to rolling stock for Euro 829,280 thousand

(including advances for the purchase of rolling stock) and to other investments in workshop systems

and buildings and technical equipment for Euro 71,657 thousand. Specifically, for investments in

rolling stock, note that the Company completed the project for the purchase of light E464

locomotives and the project for the refurbishment of High Speed trains in accordance with the new

offer model based on four new levels of service. Work continued on the projects for the purchase of

the Double-Decker carriages and the new Frecciarossa 1000 high-speed electric trains, the

refurbishment of Low-Floor carriages and on the projects for upgrading the fleet of cargo carriages

to the new technical regulations. For a more detailed analysis, reference should be made to the

paragraph on “Investments” in the Report on Operations;

Entries into service for Euro 986,405 thousand, specifically concerning the rolling stock, both for

new acquisitions, such as Double Decker coaches (Euro 151 million), E464 and E403 locomotives

(Euro 39 million) and an ETR170 train (Euro 9 million), as well as value-increasing maintenance

(Euro 445 million) and restyling e revamping (Euro 234 million). As regards Other assets, the

ticketing and validating machines (Euro 18 million) and hardware (Euro 14 million) came into

service;

Depreciation shows the portion recognised in the income statement in the financial year according

to the rates defined for property, plant and equipment;

Impairment losses, equal to 19,936 thousand, are essentially attributable to the write-down of four

ETR 450 trains, which will no longer be used in 2014 (Euro 10,812 thousand), the write-down of

workshop equipment (Euro 2,003 thousand) and other investments that no longer meet the

requirements set out by the Company (Euro 7,392 thousand);

Disposals and divestments, equal to Euro 9,132 thousand, essentially relate to fixed assets that can

no longer be used in the production cycle;

Other changes, equal to 35,853 thousand, show a reduction in fixed assets under construction and

advances related to the closure during 2013 of the SCMT equipment contracts and the settlement

with the supplier of the related credit and debit items.

Any guarantees on the rolling stock issued in favour of Eurofima for the medium- and long-term loans raised

through the Controlling Company Ferrovie dello Stato Italiane amounted to Euro 3,409,660 thousand.

Below is reported the information on the statutory revaluation by type of fixed assets, including and excluding

depreciation.

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2013 Financial Statements 101

The above revaluation, according to article 5 of Ministerial Decree no. 162/2001, was applied only to historical

cost, against an entry under a revaluation reserve subject to tax relief, excluding the value of the provision for

deferred tax liabilities, a provision that is taken to the income statement in relation to the taxation of non-

deductible depreciation.

7. Intangible assets

Below is reported the statement of amounts of intangible assets at 31 December 2013 with the related

changes. In 2013 no changes were recorded in the estimated useful life of said assets.

Revaluation

including

depreciation

2008 2013

Land 50,878 50,878

Buildings 139,100 124,495

189,978 175,373

TYPE OF ASSET

Revaluation pursuant to Law no.2

of 28/01/2009

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2013 Financial Statements 102

The changes recorded in 2013 both in “Investments” (Euro 49,536 thousand) and “Entries into service” (Euro

40,966 thousand) were essentially attributable to “Software”. The investments in this sphere were made in

order to continue with the work involving:

Development

costs

Concessions,

licences,

trademarks and

similar rights

Fixed assets

under

development

and advances

Total

Historical cost 12,908 413,775 6,954 433,637

Amortisation and impairment losses (10,272) (338,682) (26) (348,980)

Grants (1,959) (428) (2,387)

Balance as at 01.01.2012 677 74,665 6,928 82,270

Investments 40,432 40,432

Entries into service 217 38,285 (40,062) (1,560)

Amortisation (190) (26,658) (26,848)

Impairment losses (460) (460)

Disposals and divestments (3,164) (3,164)

Other reclassifications (1,108) (1,108)

Total changes 27 10,519 (3,254) 7,292

Historical cost 13,125 452,060 4,160 469,345

Amortisation and impairment losses (10,462) (366,448) (486) (377,396)

Grants (1,959) (428) (2,387)

Balance as at 31.12.2012 704 85,184 3,674 89,562

Investments 49,536 49,536

Entries into service 93 41,755 (40,966) 882

Amortisation (222) (33,096) (33,318)

Impairment losses (57) (57)

Disposals and divestments* (666) (666)

Other reclassifications** 191 191

Total changes (129) 7,993 8,704 16,568

Historical cost 13,219 493,149 12,921 519,097

Amortisation and impairment losses (10,684) (399,544) (543) (410,580)

Grants (1,959) (428) - (2,387)

Balance as at 31.12.2013 576 93,177 12,378 106,130

Disposals and divestments*

Decreases in historical cost from disposals and divestments (1,187) (1,187)

Decreases in amortisation fund for divestments 384 384

Decreases in impairment losses for divestments 137 137

Total disposals and divestments - (666) - (666)

Reclassifications**

Change in historical cost for reclassifications 191 191

Changes in amortisation fund for reclassifications -

Changes in impairment losses for reclassifications -

Total reclassifications - - 191 191

INTANGIBLE ASSETS

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2013 Financial Statements 103

the implementation of the PICO integrated sales platform to combine the different sales channels

and on the Infomobility development;

the construction of an integrated platform on the SIM cargo information system to support the Cargo

Division sales, distribution and traffic cycles;

the construction of the CRM - Customer Relationship Management system for integrated customer

management and for the delivery of a high level of service from a multi-channel point of view,

the development of a production platform (PdP, Piattaforma di Produzione) to change and update

the railway timetable, to manage the use of personnel, to schedule maintenance at the Current

Maintenance plants and to manage railway traffic from operations rooms.

Amortisation, equal to Euro 33,318 thousand, related to the portion recognised in the income statement in the

financial year according to the rates defined for intangible assets.

Impairment test for cash generating units

For the purposes of the impairment test, the Company had already identified the Cash Generating Units

(CGUs) that represent independent business units, which can be clearly identified within the company’s

organisation and which are able to generate cash flows that are largely independent within the company

itself. The CGUs have been identified consistently with the business, and therefore organisational and

operating, structure of the company, as the three operating business segments:

Medium- and Long-Distance Passengers;

Regional Passenger Transport;

Cargo Transport.

In accordance with the company’s control model, the cross-company divisions (Technical Head Office,

Industrial Logistics Head Office, Industrial Planning Head Office and Staff) are already allocated to the income

statements of the various CGUs; on the contrary, the balance sheet items referred to the cross-company

divisions have been allocated to the CGUs by using appropriate drivers.

In the 2013 financial year, cash flows were determined on the basis of the best information to hand at the

time of their preparation in accordance with the 2014 budget forecasts and the figures in the last version of

the 2015 -2017 Business Plan; instead, as regards 2018, since no forecast data were available, the 2017 data

were employed.

The Value in Use was estimated by applying the method of the unlimited capitalization of the prospective cash

flow of the last year of explicit forecast, making reference to normalized growth rates. The calculation of the

Value in Use also made reference to “normalised” investments as defined by assuming stable conditions for

each CGU on the basis of long-term forecasts. For the purposes of the determination of the value in use

defined on the basis of the prospective cash flow of the last year of forecast, average growth rates were

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2013 Financial Statements 104

considered which were equal to the rates inferable from the long-term forecasts of the inflation rate equal to

2%.

The discount rate used is the “WACC” (Weighted Average Cost of Capital) rate measured for each CGU.

Below are reported the values used for the purposes of the test:

CGU

Net invested

capital

(€/mil.)

Discount rate

(WACC)

Growth

Rate

Medium/Long

Distance Passengers 3,337 7.1 % 2%

Regional Passenger

Transport 5,354 7.1 % 2%

Cargo transport 745 9.0 % 2%

Totals 9,436

No impairment losses arose from comparing the invested capital of the individual CGUs and the discounted

value of cash flows.

8. Deferred tax assets and deferred tax liabilities

The statements below report the amounts of deferred tax assets and deferred tax liabilities at 31 December

2013, with the related changes that occurred in the year.

31.12.2012

Increase

(decrease)

through P&L

Other

Changes31.12.2013

Deferred tax assets

- Measurement of financial instruments 80,135 (32,701) 47,434

- Deferred tax assets on past losses 72,000 (3,000) 69,000

Total 152,135 (3,000) (32,701) 116,434

Deferred tax liabilities

- Value differences on property, plant and equipment

and intangible assets 121,285 (819) 120,466

- Severance pay and other employee benefits (14,432) 12,128 (2,304)

- Other items: Provision for Charges for Workshops 508 (126) 382

Total 107,361 (945) 12,128 118,544

Balance (44,774) 2,055 44,829 2,110

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2013 Financial Statements 105

Deferred tax assets recorded an overall decrease of Euro 35,701 thousand of which: Euro 32,701 thousand

related to the measurement at fair value of the hedging of any risks of changes in interest rates against an

entry under equity, while Euro 3,000 thousand related to the difference between the recognition of the 2013

portion of deferred tax assets on previous losses through profit or loss (Euro 43,975 thousand) and to the

adjustment to the receivable for the losses that were considered to be “recoverable” in the 2014 and 2015

financial years on the basis of the expected positive results (Euro 40,975 thousand).

The tax losses that have already been transferred to the Group’s consolidated accounts, which Trenitalia still

has the right to offset financially as envisaged in Group procedure (up to 80% of the taxable income) and

which was not yet utilised as of 31 December 2013, amount to about Euro 1,393,000 thousand. This value

includes tax losses for which the effect of the recognition of deferred tax assets has been determined as

specified above.

The overall amount of tax losses currently transferred to the Group’s consolidated accounts does not take

account of the recalculation of the tax losses for the period arising from the application for the refund of IRES

tax, for the higher deduction of IRAP tax, relating to costs for subordinate employees and employees treated

as such (Article 2, paragraph 1-quater, of Decree Law 201/2011).

Deferred tax liabilities, equal to Euro 118,544 thousand, recorded a net increase of Euro 11,183 thousand.

This increase was essentially due to the adjustment to the provision following the recognition of actuarial

gains on employee benefits (TFR) to be charged to equity (Euro 12,128 thousand), which was partially offset

by the release of deferred taxes in the income statement, which had been entered in previous financial years,

for Euro 945 thousand, as detailed in the table.

Furthermore, it should be noted that the value of deferred tax assets and liabilities was determined by

applying rates of 27.5% for IRES and 4.23% for IRAP taxes (taking account of regional additional taxes).

9. Equity investments

The tables below report the amounts of the equity investments in question at the beginning and at the end of

the year, as broken down by category, and of the related changes that were recorded in 2013.

Net value as at

31.12.2012

Net value as at

31.12.2013

Accumulated

provision for write-

down as at

31.12.2013

Equity investments in

Subsidiaries 99,542 98,535 1,013

Jointly-controlled entities 93,569 43,101 -

Associates 1,607 1,613 648

Other companies 953 953 3,470

195,671 144,202 5,131

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2013 Financial Statements 106

Below are the changes reported in 2012:

Net Value as at

31.12.2011

Acquisitions /

subscriptions

Acquisitions/

Repayments

Write-downs /

write-backsReclassifications

Other

changes

Net Value

as at

31.12.2012

Accumulated

provision for

write-down

Equity investments in subsidiaries 98,535 256 751 99,542 6

Serfer Srl 7,088 7,088

TX Logistik AG 91,410 91,410

Trenitalia Logistik France S.a.S. 37 37 6

Thello S.a.S. - 256 751 1,007

Equity investments in jointly-

controlled entities 94,319 (751) 93,569 -

Cisalpino AG 55,509 55,509

Trenord Srl 38,060 38,060

Trenitalia Veolia Transdev S.a.S. 750 (751) -

Equity investments in associates 1,789 40 (35) (187) 1,607 642

Pol Rail Srl 1,522 1,522 568

East Rail SrL in liquidation 18 40 (35) 23 74

Alpe Adria SpA 44 44

Logistica S.A. 19 19

FS Formazione SpA in liquidation 187 (187)

Other companies 957 (4) 953 3,470

Eurogateway S.r.l. 75 75

Centro Merci Orte 24 24 28

Consorzio Unico Campania 28 28

Gestione Servizi Interporto 77 77

ICF intercontainer Interfrigo in liquidation - - 3,329

Interporto Padova 316 316

Interporto Toscano Amerigo Vespucci 129 129

Interporto Bergamo Montello-Sibem 35 35 89

Interporto Bologna 204 204

Verona Cargo Center in liquidation 4 (4) 10

Consel S.c.a.r.l. 1 1

Ralpin AG 20 20

Consorzio Trasporti Integrati 10 10

Isfort 34 34 14

195,600 296 (39) (187) 195,671 4,118

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2013 Financial Statements 107

Below are the changes reported in 2013:

Note the following:

the carrying amount of the investment in Cisalpino AG was recalculated for Euro 50,468 thousand,

after the reduction in its Share Capital resolved by the Shareholders’ Meeting preliminary to the

company’s winding-up and consequent liquidation;

the investment in Thello S.a.s. was written down for Euro 1,007 thousand in view of its persistently

negative operating result, after having participated in the capital increase and the simultaneous

reduction for covering previous losses (Euro 2,467 thousand), as already described in the Report on

Operations;

the alignment of the value of the equity investment with Equity of East Rail Srl;

the acquisition of La Spezia Shunting Railways SpA for Euro 45 thousand, of which an amount of

Euro 11 thousand was paid at the time of the subscription and an amount of Euro 34 thousand for

amounts due for subscribed capital to be paid up.

Net Value as at

31.12.2012

Acquisitions /

subscriptions

Acquisitions/

Decreases

Write-downs /

write-backsReclassifications

Other

changes

Net Value

as at

31.12.2013

Accumulated

provision for

write-down

as at

31.12.2013

Equity investments in subsidiaries 99,542 2,467 (2,467) (1,007) 98,535 1,013

Serfer Srl 7,088 7,088

TX Logistik AG 91,410 91,410

Trenitalia Logistik France S.a.S. 37 37 6

Thello S.a.S. 1,007 2,467 (2,467) (1,007) 1,007

Equity investments in jointly-

controlled entities 93,569 (50,468) 43,101

Cisalpino AG 55,509 (50,468) 5,041

Trenord Srl 38,060 38,060

Equity investments in associates 1,607 45 (34) (5) 1,613 648

Pol Rail Srl 1,522 1,522 569

Logistica S.A. 19 19

Alpe Adria SpA 44 44

East Rail SrL in liquidation 23 (5) 18 79

La Spezia Shunting Railways SpA 45 (34) 11

Other companies 953 953 3,470

Eurogateway S.r.l. 75 75

Centro Merci Orte 24 24 28

Consorzio Unico Campania 28 28

Gestione Servizi Interporto 77 77

ICF intercontainer Interfrigo in

liquidazione - - 3,329

Interporto Padova 316 316

Interporto Toscano Amerigo Vespucci 129 129

Interporto Bergamo Montello-Sibem 35 35 89

Interporto Bologna 204 204

Verona Cargo Center in liquidation - - 10

Consel S.c.a.r.l. 1 1

Ralpin AG 20 20

Consorzio Trasporti Integrati 10 10

Isfort 34 34 14

195,671 2,512 (52,969) (1,012) - - 144,202 5,131

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2013 Financial Statements 108

The table below reports the comparison between the carrying amounts of equity investments in subsidiaries,

jointly-controlled entities and associates and the corresponding portion of equity for the period.

Below are analysed the most significant positive changes between carrying amounts and equity pertaining to

equity investments:

In TX Logistik AG the positive difference is to be considered to be fully recoverable as it reflects the

company’s ability to generate income, which is estimated on the business plan of the same.

In Thello S.a.s., the equity investment was written down owing to the improbability of the recovery

of the losses in the short term (Euro 1,007 thousand) and a provision for risks was set aside for Euro

6,376 thousand, equal to the accrued portion of negative equity.

As regards La Spezia Shunting Railways S.p.A., the difference between the carrying amount and the related

equity (Euro 34 thousand) is made up of the payable to the company for subscribed capital to be paid up.

Below is reported the summary of the main financial and economic items of jointly-controlled companies and

associated companies:

HQ Share capitalProfit (loss) for

the year

Equity as at

31.12.2013Ownership %

Accrued

equity (a)

Carrying

amount as

at

31.12.2013

(b)

Difference

(b) - (a)

Equity investments in subsidiaries

Serfer Srl Genoa, Via Rolla 22r 5,000 352 9,531 100% 9,531 7,088 (2,443)

TX Logistik AGBad Honnef, Rhondarfer Str.

85 286 1,576 17,631 100% 17,631 91,409 73,778

Trenitalia Logistik France S.a.S. Paris, 182 rue Lafayette 43 11 56 100% 56 38 (18)

Thello S.a.S. Paris, 15 rue des Sablons 1,500 (10,384) (9,563) 67% (6,376) 0 6,376

98,535

Equity investments in jointly-

controlled entities

Cisalpino AG (*) Bern, Fabrikstrasse 35 82 853 38,956 50% 19,478 5,041 (14,437)

Trenord S.r.l. Milan, Via P. Paleocapa 6 76,120 100 74,296 50% 37,148 38,060 912

43,101

Equity investments in associates

La Spezia Shunting Railways SpA (**) La Spezia, Via del Molo 1 1,000 0 1,000 4.5% 45 11 ( 34)

Pol Rail Srl Rome, Via Scalo S.Lorenzo 16 2,000 407 3,613 50% 1,807 1,522 ( 285)

East Rail SrL in liquidation Trieste, Via Ghega 1 130 (17) 54 32% 17 18 1

Alpe Adria SpA (***)Trieste, Via S.Caterina da

Siena 1 120 20 172 33% 57 44 ( 13)

Logistica S.A. Clichy la Garenne Cedex,

Cap West 7/9 Allées d l'Europe 37 310 3,104 50% 1,552 18 ( 1,534)

1,613

TOTAL 143,249

(*) average Swiss Franc exchange rate 2013: 1.2307; as at 31/12/2013: 1.2274

(**) non-operating company incorporated on 27 November 2013

(***) estimated values as at 31/12/2013

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2013 Financial Statements 109

10. Current and non-current financial assets (including derivatives)

The table below reports the breakdown of financial assets compared to the previous financial year:

The increase in this item was due to current receivables and was essentially attributable to the positive

balance of the transaction account held with Trenord S.r.l. (Euro 15,919 thousand).

The table below summarises the breakdown of the receivables for loans:

Non-

current Current Total

Non-

current Current Total

From Banks 579 579 833 - 833

Trenord Srl 22,750 15,919 38,669 22,750 3 22,753

Ferrovie dello Stato Italiane SpA - 340 340 340 1,999 2,339

Logistica SA - 350 350 - 350 350

Total 23,329 16,609 39,938 23,923 2,352 26,275

31.12.2013 31.12.2012

Residual Receivable

Ownership % Current assetsNon-current

assetsTotal assets Current liabilities

Non-

current

liabilities

Total

liabilitiesRevenues Costs Profit/(loss)

Equity investments in jointly-

controlled entities

Cisalpino AG (**) 50% 172,015 5,741 177,756 4,492 - 4,492 63,965 85,100 ( 21,135)

Trenord S.r.l. 50% 299,558 187,709 487,267 319,011 94,508 413,519 737,107 733,924 3,183

Equity investments in associates

Pol Rail Srl 50% 8,745 330 9,075 5,404 3671 9,075 19,504 19,018 486

East Rail SrL in liquidation 32% 96 1 97 25 72 97 10 27 ( 16)

Alpe Adria SpA 33.33% 9,957 56 10,013 9,799 62 9,861 37,425 37,410 15

Logistica S.A. 50% 788 2,762 3,550 755 1 756 247 564 ( 317)

31.12.2012

Equity investments in jointly-

controlled entities

Cisalpino AG (**) 50% 21,530 18,580 40,111 1,155 - 1,155 2,184 1,331 853

Trenord S.r.l. 50% 341,241 240,142 581,383 409,959 171,425 581,384 760,433 760,333 100

Equity investments in associates

Pol Rail Srl 50% 8,385 75 8,460 4,648 3,812 8,460 26,562 26,155 407

East Rail SrL in liquidation 32% 77 - 77 23 54 77 2 19 ( 17)

Alpe Adria SpA 33.33% nd nd - nd nd - nd nd nd

Logistica S.A. 50% 842 3,080 3,922 816 1 817 603 293 310

31.12.2013

(**) values in euro

Non-

current Current Total

Non-

current Current Total

Non-

current Current Total

Financial assets

- Receivables for loans 23,329 16,609 39,938 23,923 2,352 26,275 (594) 14,257 13,663

23,329 16,609 39,938 23,923 2,352 26,275 (594) 14,257 13,663

Book value

31.12.2013 31.12.2012 Differences

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2013 Financial Statements 110

11. Other non-current and current assets

This item is broken down as follows:

The item “Other non-current and current assets” mainly includes:

non-trade receivables from group companies, equal to Euro 16,111 thousand; for detailed disclosures

on transactions with the same, reference is made to the paragraph on related parties. The decrease

compared to the previous year, equal to Euro 119,943 thousand, essentially related to the financial

settlement of the receivable from the subsidiary Cisalpino following the assumption of the financial

debt to Eurofima (Euro 117,420 thousand) ;

VAT receivables from the controlling company, equal to Euro 7,408 thousand. The reduction in said

receivables compared to the previous year (Euro 4,036 thousand) was due to the periodical VAT

payments for the 2013 financial year;

the receivable from the controlling company for tax consolidation, equal to Euro 10,341 thousand.

The receivable essentially reduced as a result of the financial settlement of the IRES tax charge

accrued in 2013 (Euro 10,994 thousand);

receivables from Other State administrations, equal to Euro 28,041 thousand, relating to receivables

from the Ministry of Infrastructures and Transport, for grants correlated to the Autostrada Ferroviaria

Alpina project (of which a non-current portion of Euro 20,831 thousand and a current portion of Euro

7,007 thousand);

other receivables, equal to Euro 28,907 thousand, which include: receivables from social security

institutions (Euro 5,716 thousand); receivables from personnel (Euro 3,461 thousand), sundry

receivables from the distributors of tickets for regional traffic (Euro 7,117 thousand), advances to

suppliers (Euro 6,770 thousand) and other minor receivables (Euro 5,046 thousand).

It should be noted that the recoverable value of receivables from third parties was adjusted by the

corresponding provision for bad debts (Euro 1,671 thousand).

Non-

current Current Total

Non-

current Current Total

Non-

current Current Total

Other receivables from group companies 16,111 16,111 136,054 136,054 (119,943) (119,943)

VAT receivables from the controlling

company4,851 2,557 7,408 4,851 6,593 11,444 (4,036) (4,036)

Receivables for the consolidated tax

base10,341 10,341 13,926 13,926 (3,585) (3,585)

Other VAT receivables 3 3 3 7 10 (7) (7)

Other State administrations 20,831 7,210 28,041 23,098 5,729 28,827 (2,267) 1,481 (786)

Sundry receivables and accruals

/deferrals 797 28,110 28,907 981 33,687 34,668 (184) (5,577) (5,761)

Total 26,482 64,329 90,811 28,933 195,996 224,929 (2,451) (131,667) (134,118)

Provision for write-downs (1,671) (1,671) (2,027) (2,027) 356 356

Total, net of Provision for write-

down 26,482 62,658 89,140 28,933 193,969 222,902 (2,451) (131,311) (133,762)

31.12.2013 31.12.2012 Differences

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2013 Financial Statements 111

The maximum exposure to credit risk, as broken down by geographical area, is the following one:

12. Inventories

Inventories are broken down as follows:

Increase is mainly due to Inventories of Raw and secondary materials and consumables, which reported,

compared to the previous year, an increase of Euro 20,843 thousand, mainly attributable to the purchases of

new serviceable components. The net value also increased as a result of the reduction in the provision for

write-down (Euro 2,420 thousand) that arose from the combined effect of the use for about Euro 19 million to

cover the scrapping of stock materials, which was partially offset by a provision of Euro 17 million recognized

in the application of the write-down procedures adopted by the Company. Written-off assets to be disposed

of, net of the related provision, represent the presumed realisable value estimated by the structures that

manage these assets.

31.12.2013 31.12.2012 Differences

Raw and secondary materials, and consumables 893,995 873,152 20,843

Provision for write-down (216,181) (218,601) 2,420

Net value 677,814 654,551 23,263

Written-off assets to be disposed of 20,907 16,496 4,411

Provision for write-down (11,863) (10,141) (1,722)

Net value 9,044 6,355 2,689

Total Inventories 686,858 660,906 25,952

Non-

current Current Total

Non-

current Current Total

Non-

current Current Total

National regions 26,482 61,165 87,647 28,933 67,874 96,807 (2,451) (6,709) (9,160)

Eurozone countries 2,242 2,242 7,315 7,315 (5,073) (5,073)

United Kingdom 12 12 26 26 (14) (14)

Other European countries (non-euro EU) 199 199 7 7 192 192

Other non-EU European countries 711 711 120,773 120,773 (120,062) (120,062)

Other countries 1 1 (1) (1)

26,482 64,329 90,811 28,933 195,996 224,929 (2,451) (131,667) (134,118)

31.12.2013 31.12.2012 Differences

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2013 Financial Statements 112

13. Current trade receivables

Trade receivables are broken down as follows:

The decrease in receivables compared to the previous financial year, equal to Euro 217,715 thousand, was

substantially attributable to the combined effect of:

an increase in receivables from Regional Governments (Euro 12,455 thousand) for local passenger

transport service contracts, following the extension of the periods of time for the payment of

considerations;

a decrease, as a result of the financial settlements that took place in the year, in receivables from

the Ministry of Economy and Finance (MEF, Ministero dell’Economia e delle Finanze), for the Public

Service Contract for Euro 152,108 thousand;

a decrease in receivables from Group companies for Euro 37,753 thousand, following a better

financial settlement that took place in the year. For detailed information on the transactions with said

companies, reference should be made to the annex on related parties.

In 2013, for a better presentation, some customers were reclassified from “Ordinary customers” to “State

Administrations and other public administrations”. For a homogeneous comparison, the same reclassification

was made in the 2012 values for an amount of Euro 59,535 thousand.

It should be noted that, excluding the Ministry of Economy and Finance and Regional Governments,

transactions with individual ordinary customers did not exceed 10% of revenues of Trenitalia.

31.12.2013 31.12.2012 Differences

Ordinary customers

- Customers 192,727 227,772 (35,045)

- Customers for travel irregularities 167,555 153,666 13,889

State Administrations and other Public

Administrations 115,549 121,199 (5,650)

Foreign Railways 29,344 27,604 1,740

Railways under concession 6,362 9,004 (2,642)

Agencies and other transport agencies 24,760 26,828 (2,068)

Receivables from Service Contract:

- Service Contract with Regional

Governments 1,089,903 1,077,448 12,455

- Service Contract with the Government 246,013 398,121 (152,108)

Receivables from Group companies 239,579 277,332 (37,753)

Total 2,111,792 2,318,974 (207,182)

Provision for write-down (230,886) (220,353) (10,533)

Total net provision 1,880,906 2,098,621 (217,715)

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2013 Financial Statements 113

Below is reported the maximum exposure to the credit risk, as broken down by geographical region:

31.12.2013 31.12.2012 Differences

National regions 2,053,913 2,250,174 (196,261)

Eurozone countries 48,608 52,339 (3,731)

United Kingdom 11 193 (182)

Other European countries (non-Euro UE) 852 712 140

Other non-EU European Countries 8,301 15,449 (7,148)

Other countries 107 107 -

2,111,792 2,318,974 (207,182)

The provision for bad debts recorded an increase, compared to the previous financial year, whose change is

reported below:

The provision for 2013 is almost fully referred to the increase recorded in the provision for the coverage of

travel irregularities (Euro 35,088 thousand).

14. Cash and cash equivalents

The item is broken down as follows:

The positive balance of “bank and postal accounts” essentially relates to receipts that were settled by the

banks on 31 December and that passed through the daily cash pooling system operating between the

Controlling Company and the Company at the beginning of 2014.

The item “cash and cash on hand” represents the share of receipts from ticket offices paid into the current

bank accounts of the Company by 31 December 2013, but that the credit institutions credited on a

subsequent date of transaction.

Provision for write-down of trade receivables 31.12.2012 Provisions Uses Reclassifications 31.12.2013

Ordinary customers

- Customers 30,827 420 (1,183) (5,494) 24,570

- Customers for travel irregularities 150,162 35,088 (21,199) 164,051

State Administrations and other Public Administrations 12,985 (10) 7,556 20,531

Railways under concession 6 6

Agencies and other transport agencies 16,035 (2,209) (171) 13,655

Receivables from Group companies 10,338 (152) (2,113) 8,073

Total 220,353 35,508 (24,753) (222) 230,886

Description 31.12.2013 31.12.2012 Differences

Bank and postal accounts 52,633 1,587 51,046

Cheques 2 2 0

Cash and cash on hand 38,332 49,579 (11,247)

Treasury current accounts 32,793 10,343 22,450

Total 123,760 61,511 62,249

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2013 Financial Statements 114

The “Treasury current accounts” item, equal to Euro 32,793 thousand, represents the payments made to

Ferrovie dello Stato Italiane’s treasury current account by the Ministry of Economy and Finance as

considerations for the public service contract with the Special Regions (Euro 30,000 thousand) and commuter

transportation on the Rosarno-Reggio Calabria-Melito line (Euro 2,793 thousand), not yet cleared for

collection, which were recorded in the banking system at the beginning of 2014.

15. Tax receivables

Tax receivables, equal to Euro 625 thousand, showing a decrease of Euro 2,121 thousand compared to 2012,

substantially represent the IRAP tax credit for self-taxation on account for 2013 (Euro 80,479 thousand), net

of IRAP tax payable in the year (Euro 80,032 thousand).

16. Equity

The changes recorded in 2012 and 2013 for the equity items are reported analytically in the statement

reported after the financial statement schedules.

Share capital

At 31 December 2013 the share capital of the Company, which was fully subscribed and paid up, was made

up of 3,308,928 ordinary shares, with a par value of Euro 500 each, for a total of Euro 1,654,464 thousand.

Legal reserve

The legal reserve, which aims at covering share capital against any losses that may arise, is set up through

the allocation of 5% of annual net profits, up to an amount equal to the fifth of the share capital. At 31

December 2013 it was equal to Euro 22,775 thousand, following the attribution of the 5% of profit of the

2012 financial year, equal to Euro 10,321 thousand.

Extraordinary reserves

This item includes the revaluation reserve that was set up in 2008, pursuant to article 15, paragraphs 16 and

23, of Decree Law no. 185/2008 (so-called Anti-Crisis Decree Law), as converted by Law no. 2 of 28 January

2009, following the revaluation of some workshop complexes deriving from the FRE demerger, on the basis of

the surplus values specified in the expert’s report. The revaluation, as required by paragraph 18 of the

abovementioned Decree, was set up net of the Provision for deferred taxes and is equal to Euro 177,084

thousand.

Reserve for change in fair value on derivatives (Cash Flow Hedge)

The reserve for change in fair value on derivatives includes the effective portion of the cumulative net change

in the fair value of cash flow hedge derivatives relating to related transactions that have not yet taken place.

This Reserve as at 31 December 2013 showed a negative balance of Euro 125,054 thousand. The reserve

decreased, compared to 31 December 2012, by a gross amount of Euro 118,912 thousand, as a result of the

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2013 Financial Statements 115

changes in the fair value of derivatives (IRSs and Collars) held in the portfolio as at 31 December 2013,

which was offset by a change of opposite sign of Euro 32,701 thousand relating to deferred tax assets

generated.

Reserve for actuarial gains (losses) for employee benefits

The reserve for actuarial gains (losses) for employee benefits includes the effects of the actuarial changes in

the Severance Pay and in the Free Travel Card and amounted to Euro 100,411 thousand at 31 December

2013. In 2013 there was the recognition of an actuarial gain of Euro 31,739 thousand (net of a tax effect of

Euro 12,128 thousand), compared to an actuarial loss of Euro 127,640 thousand recorded in 2012. This

positive change was essentially due to an increase in the discount rate of liabilities for employee benefits

considered as at 31 December 2013 compared to the end of the previous year, as well as to a reduction in the

debt as a result of the 2013 change in the number of staff members.

Profits (losses) carried forward

After the allocation of the 2012 profit of Euro 196,103 thousand, net of the portion allocated to Legal reserve

(Euro 10,321 thousand), as at 31 December 2013 profits had been carried forward for Euro 106,474

thousand, after having covered losses carried forward for Euro 89,630 thousand as at 31 December 2012 .

Profit for the year

The 2013 financial year reported a net profit equal to Euro 181,489 thousand.

Availability of Reserves

The table below specifies the origin, availability and distributability of Equity items, as well as their use in the

three previous years:

Capital

increase

Coverage

of losses

Distribution

to

shareholders

Other

Share Capital 1,654,464 1,654,464 - - - - - -

Capital reserves:

Revaluation Reserve (L.D. 185/2008) 177,084 - 177,084 - - - - -

Reserve for FV change on CHF

Derivatives (125,055)(125,055) - - - - - -

Reserve for actuarial gains (losses) for

employee benefits(100,411) (100,411) - - - - - -

Retained earnings:

Legal reserve 22,775 22,775 - - - - - -

Profits (losses) carried forward 106,474 43,054 63,420 - - - - -

TOTAL 1,735,331 1,494,827 240,504 - - - - -

Summary of uses in the three previous years

Origin

Amounts as

at

31.12.2013

(a+b)

Unavailable

share (a)

Available

share (b)

Distributable

share of b

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2013 Financial Statements 116

17. Medium/long-term and short-term loans

This item includes medium/long-term and short-term loans from the Controlling Company and the Banks.

The medium- to long-term portion of loans was equal to Euro 5,195,528 thousand (Euro 4,884,697 thousand

as at 31 December 2012), showing an increase of Euro 310,831 thousand, mainly as a result of the new fixed-

rate loans from the Parent Company of Euro 593,604 thousand, partially offset by the reclassification of the

loans maturing in 2014 as short-term loans: from the Parent Company for the Eurofima loan of Euro 7,700

thousand, from Banca Infrastrutture Innovazione e Sviluppo (formerly Opi) for Euro 83,333 thousand and

from the European Investment Bank for Euro 190,625 thousand.

The current portion of medium-to long-term loans fell by Euro 401,717 thousand as a result of the difference

between these reclassifications of portions of loans maturing in 2014 (Euro 281,658 thousand) and the

payment of the principal of the loans that expired in 2013: a loan of Euro 600,000 thousand from the Parent

Company and a loan of Euro 83,333 thousand granted by Banca Infrastrutture Innovazione e Sviluppo

(formerly Opi).

Short-term loans, equal to Euro 141,258 thousand (Euro 56,817 thousand as at 31 December 2012) increased

by Euro 84,441 thousand, mainly as a result of an increase in the short-term bank withdrawal towards the

Parent Company.

This item also includes the accruals calculated on the loans themselves.

The table below summarises the terms and conditions of all medium/long-term loans:

Medium/long term loans 31.12.2013 31.12.2012 Differences

Loans from banks 1,801,041 2,075,000 (273,959)

Loans from shareholders 3,394,487 2,809,697 584,790

Non-current total 5,195,528 4,884,697 310,831

Current portion of medium / long term loans31.12.2013 31.12.2012 Differences

Loans from banks 274,554 83,926 190,628

Loans from shareholders 7,782 600,127 (592,345)

Total 282,336 684,053 (401,717)

Short-term loans31.12.2013 31.12.2012 Differences

Loans from banks - 1,370 (1,370)

Loans from shareholders 141,258 55,447 85,811

Total 141,258 56,817 84,441

Current total 423,594 740,870 (317,276)

Total 5,619,122 5,625,567 (6,445)

Book value

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2013 Financial Statements 117

18. Severance pay and other employee benefits

Creditor Currency Nominal Interest RateYear of

expiryNominal value Nominal value

FERROVIE DELLO STATO ITALIANE EUR 6-month Euribor +/- Spread 2013 -€ 600.000€

FERROVIE DELLO STATO ITALIANE EUR 3,885% 2014 7.700€ 7.700€

FERROVIE DELLO STATO ITALIANE EUR 6-month Euribor +/- Spread 2015 165.300€ 165.300€

FERROVIE DELLO STATO ITALIANE EUR 6-month Euribor +/- Spread 2015 83.000€ 83.000€

FERROVIE DELLO STATO ITALIANE EUR 6-month Euribor +/- Spread 2016 310.000€ 310.000€

FERROVIE DELLO STATO ITALIANE EUR 6-month Euribor +/- Spread 2016 194.000€ 194.000€

FERROVIE DELLO STATO ITALIANE EUR 6-month Euribor +/- Spread 2016 32.300€ 32.300€

EUROPEAN INVESTMENT BANK EUR 6-month Euribor +/- Spread 2017 600.000€ 600.000€

EUROPEAN INVESTMENT BANK EUR 6-month Euribor +/- Spread 2018 325.000€ 325.000€

FERROVIE DELLO STATO ITALIANE EUR 6-month Euribor +/- Spread 2018 200.000€ 200.000€

FERROVIE DELLO STATO ITALIANE EUR 6-month Euribor +/- Spread 2018 200.000€ 200.000€

FERROVIE DELLO STATO ITALIANE EUR 6-month Euribor +/- Spread 2018 149.400€ 149.400€

FERROVIE DELLO STATO ITALIANE EUR 6-month Euribor +/- Spread 2018 62.700€ 62.700€

FERROVIE DELLO STATO ITALIANE EUR 6-month Euribor +/- Spread 2019 160.000€ 160.000€

FERROVIE DELLO STATO ITALIANE EUR 6-month Euribor +/- Spread 2019 183.000€ 183.000€

FERROVIE DELLO STATO ITALIANE EUR 6-month Euribor +/- Spread 2020 62.700€ 62.700€

FERROVIE DELLO STATO ITALIANE EUR 6-month Euribor +/- Spread 2020 47.400€ 47.400€

FERROVIE DELLO STATO ITALIANE EUR 4,20% 2020 500.000€ -€

FERROVIE DELLO STATO ITALIANE EUR 3,70% 2021 100.000€ -€

FERROVIE DELLO STATO ITALIANE EUR 6-month Euribor +/- Spread 2022 120.000€ 120.000€

BANCA INFRASTRUTTURE INNOVAZIONE E SVILUPPO EUR 6-month Euribor +/- Spread 2022 450.000€ 533.333€

BANCA INFRASTRUTTURE INNOVAZIONE E SVILUPPO EUR 6-month Euribor +/- Spread 2022 300.000€ 300.000€

FERROVIE DELLO STATO ITALIANE EUR 6-month Euribor +/- Spread 2024 122.200€ 122.200€

BANCA INFRASTRUTTURE INNOVAZIONE E SVILUPPO EUR 6-month Euribor +/- Spread 2024 400.000€ 400.000€

FERROVIE DELLO STATO ITALIANE EUR 6-month Euribor +/- Spread 2025 42.500€ 42.500€

FERROVIE DELLO STATO ITALIANE EUR 6-month Euribor +/- Spread 2026 190.000€ 190.000€

FERROVIE DELLO STATO ITALIANE EUR 6-month Euribor +/- Spread 2026 100.000€ 100.000€

FERROVIE DELLO STATO ITALIANE EUR 6-month Euribor +/- Spread 2026 116.000€ 116.000€

FERROVIE DELLO STATO ITALIANE EUR 6-month Euribor +/- Spread 2027 128.700€ 128.700€

FERROVIE DELLO STATO ITALIANE EUR 6-month Euribor +/- Spread 2027 65.700€ 65.700€

Totale EUR loans 5.417.600€ 5.500.933€

FERROVIE DELLO STATO ITALIANE CHF 2,606% 2016 12.500CHF 12.500CHF

FERROVIE DELLO STATO ITALIANE CHF 2,900% 2017 23.500CHF 23.500CHF

FERROVIE DELLO STATO ITALIANE CHF 2,675% 2020 45.000CHF 45.000CHF

Total CHF loans 81.000CHF 81.000CHF

Counter-value in Euro 65.982€ 67.097€

Total loans 5.483.582€ 5.568.030€

31.12.2013 31.12.2012

31.12.2013 31.12.2012

Preent value of Severance Pay obligations 935,439 1,077,427

Present value of Free Travel Card obligations 16,694 16,676

Total present value of Severance Pay

and Free Travel Card obligations 952,133 1,094,103

Other employee benefits 94 115

Totale Severance Pay and other employee benefits 952,227 1,094,218

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The table below illustrates the changes that were recorded in the present value of liabilities for defined benefit

obligations for TFR and CLC:

The use of the provision for TFR, equal to Euro 119,056 thousand, was generated from benefits paid to the

personnel leaving the Company in the course of the financial year, advances and transfers of employees to

other Group companies. The difference between the value of the expected allocations at the end of the period

of observation and the expected present value of the benefits payable in the future as recalculated at the end

of the period, on the basis of the regular staff resulting at that date and of the new valuation assumptions,

constitutes the amount of actuarial gains/(losses).

In the current financial year, this item generated, for the provision for TFR, actuarial gains of Euro 44,101

thousand compared to the actuarial loss of Euro 170,809 thousand in 2012. This change was mainly due to

the increase in the discount rate of the TFR liability (2.50% at 31 December 2013 compared to 2.05% at 31

December 2012).

The Free Travel Card constitutes a defined benefit plan for the employees of the Company and consists of the

possibility of making use, free of charge, of the railway services rendered by the Company, except for the

payment of the right of admission for some additional products or services. The present value of the benefit

was determined by using actuarial techniques and was equal to Euro 16,694 thousand at 31 December 2013,

compared to Euro 16,676 thousand at 31 December 2012. The Free Travel Card also generated actuarial

losses of Euro 234 thousand compared to actuarial losses of Euro 3,804 thousand in 2012.

Other employee benefits at 31 December 2013, equal to Euro 94 thousand (Euro 115 thousand at 31

December 2012), are made up of a supplementary insurance policy towards the staff.

Severance pay (TFR) 2013 2012

Defined benefit obligations at 1 January 1,077,427 974,469

Interest cost (*) 21,169 37,961

Actuarial (gains) losses recognised in equity (44,101) 170,809

Advances and uses (119,056) (105,812)

Severance pay liabilities 935,439 1,077,427

Free travel card (CLC)

Defined benefit obligations at 1 January 16,676 12,928

Service cost (**) 172 119

Interest cost (*) 439 586

Actuarial (gains) losses recognised in equity 234 3,804

Advances and uses (827) (761)

Free Travel Card liabilities 16,694 16,676

(*) with recognition through P&L

(**) expected present value of benefits payables in the future

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2013 Financial Statements 119

Actuarial assumptions

Below are reported the main assumptions made for the actuarial estimate process:

The assumptions relating to the expected mortality are based on statistics published by the General

Accounting Office (Ragioneria Generale dello Stato), while the assumptions relating to disability are based on

the INPS tables broken down by age and gender.

Below is reported a sensitivity analysis that shows the possible present values of defined benefit obligations,

following reasonably possible changes in actuarial assumptions.

The tables below show the contribution expected for the subsequent financial year, the average duration of

the defined benefit plans obligation and the payments scheduled by the plan.

31.12.2013 31.12.2012

Discount rate of Severance Pay 2.50% 2.05%

Discount rate of Free Travel Card 3.2% 2.7%

Annual increase rate of Severance Pay 3% 3%

Rate of inflation 2% 2%

Expected turnover rate of employees 3% 3%

Expected rate of advances 2% 2%

Mortality

Disability

Retirement age

Mortality tables RG48 published by the

General Accounting Office

INPS tables broken down by age

and gender

100% subject to meeting the

Compulsory General Insurance

requirements

31.12.2013 TFR CLC

Turnover rate +1% 934,845 -

Inflation rate +0.25% 947,463 17,083

Inflation rate -0.25% 923,621 15,557

Discount rate +0.25% 917,901 15,854

Discount rate -0.25% 953,528 16,775

31.12.2013 TFR CLC

Service cost - 166

Duration of the plan (in years) 8.3 12.2

Estimated future

disbursements

1 64,759 914

2 59,737 926

3 64,454 936

4 68,947 945

5 77,610 957

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2013 Financial Statements 120

19. Provisions for risks and charges

The table below reports the amounts at the beginning and at the end of the year and the changes recorded in

provisions for risks and charges for 2013, showing the short-term portion.

The Provision for Industrial reorganisation recognises the forecast expenditure necessary to implement

income support policies, as described in detail in the 2012 Financial Statements, to which reference is made.

In 2013 the changes concerned the use of Euro 124,888 thousand against the commitments relating to both

the completion of projects started in 2012 (Euro 11 million) and the new 2013 projects (Euro 112 million); on

the contrary, the surplus in the provision was recognised in the income statement, equal to Euro 11,560

thousand, as a result of the assessment of the financial commitments required to take the projects started in

2013 to a close, estimated at Euro 34,742 thousand.

The Provision for Charges for Workshops (Euro 18,176 thousand) did not report significant changes in the

financial year. It should be noted that the short-term portion was equal to Euro 3,963 thousand.

At 31 December 2013 the Provision for Risks and Charges was equal to Euro 95,651 thousand (Euro 90,986

thousand at 31 December 2012) and was broken down as follows:

labour litigation for Euro 18,709 thousand (Euro 15,745 thousand as at 31 December 2012) relating to

charges estimated against disputes of court concerning labour issues pertaining to the company;

specifically, this item includes disputes in the current financial year, which mainly involved the following

cases: subcontract of workers, higher duties, length of service and other issues;

any possible penalties to Regional Governments for Euro 9,623 thousand (Euro 14,192 thousand as at 31

December 2012) as to the quality of the transport services rendered in relation to the Services Contract;

civil litigation for disputes and other risks connected to customer relations and towards third parties for

Euro 60,943 thousand (Euro 61,049 thousand as at 31 December 2012), which could have an

unfavourable outcome for the company;

risks on equity investments for Euro 6,376 thousand, against losses incurred by the investee company

Thello S.a.s, as described in note 9.

Description 31.12.2012 ProvisionsUses and other

changes

Release of

excess

provisions

Reclassifications 31.12.2013

Provision for industrial reorganisation 171,190 (124,888) (11,560) 34,742

Other provisions:

Provision for Charges for Workshops 16,273 457 (2,517) 14,213

Provision for risks and charges 90,986 27,504 (22,839) 95,651

Non-current total 278,449 27,504 (147,270) (11,560) (2,517) 144,606

Short-term portion of Provision for Charges

for Workshops 1,549 (103) 2,517 3,963

Current total 1,549 - (103) - 2,517 3,963

Total Provisions for risks and charges 279,998 27,504 (147,373) (11,560) - 148,569

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2013 Financial Statements 121

The Provision for Risks and Charges was adjusted by Euro 27,504 thousand in 2013, relating to: (a) labour

litigation for Euro 11,777 thousand; (b) any possible objections by the Regional Governments for Euro 6,703

thousand; (c) disputes and any other risks connected to customer relations and towards third parties for Euro

2,648 thousand; and (d) accrued charges on equity investments for Euro 6,376 thousand.

Finally, this provision was used for Euro 22,839 thousand: penalties payable in relation to the cargo sector

(Euro 1,815 thousand), the penalties acknowledged to the Regional Governments for Service Contracts (Euro

11,272 thousand), the charges incurred against disputes in court or out of court concerning labour issues

pertaining to the Company (Euro 8,813 thousand) and the disputes with other third parties that have been

settled unfavourably for the company (Euro 939 thousand).

20. Non-current and current financial liabilities (including derivatives)

The item “Hedging derivative financial instruments” reports the overall value of the transactions of Interest

Rate Swaps (IRS) and Interest Rate Collars, as calculated according to the standard market valuation

formulas (fair value) as specified by IFRS 13, entered into by the Company to cover fluctuations in interest

rates on medium/long-term loans at variable rate. The overall fair value, equal to Euro 193,364 thousand, was

calculated in relation to all the transactions in place as at 31 December 2013 and showed a decrease of Euro

124,924 thousand compared to the previous year.

The fair value of hedging derivatives is attributable to level 2 on the basis of the fair value hierarchy laid down

in IFRS 7.

The item “Other financial liabilities” related to the debit balance of the intercompany current account held with

the Parent Company, equal to Euro 785,610 thousand (Euro 800,930 as at 31 December 2012), which showed

a decrease of Euro 15,320 thousand compared to the previous year as a result of the fact that on the

reporting date less cash in hand was required than on the previous year’s reporting date.

Non-

currentCurrent Total

Non-

currentCurrent Total

Non-

currentCurrent Total

Financial liabilities

Hedging derivative

financial instruments 174,635 18,729 193,364 248,874 69,414 318,288 (74,239) (50,685) (124,924)

Other financial

liabilities - 785,610 785,610 - 801,342 801,342 - (15,732) (15,732)

174,635 804,339 978,974 248,874 870,756 1,119,630 (74,239) (66,417) (140,656)

31.12.2012 Differences31.12.2013

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2013 Financial Statements 122

21. Other non-current and current liabilities

Other non-current and current liabilities were broken down as follows:

Other current liabilities showed an overall increase of Euro 21,455 thousand compared to 2012, which was

essentially attributable to the changes in the following items:

the increase recorded in “VAT payables”, equal to Euro 14,272 thousand, is attributable to the

increase in the deferred VAT payable on the invoices issued to the Public Administration that

becomes payable only at the time of the collection;

the decrease in “Payables to group companies (Euro 20,034 thousand) is essentially attributable to

the settlement of non-trade payables to the affiliate company RFI;

the increase in “Other payables and accrued expenses and deferred income” equal to Euro 26,286

thousand.

Below is reported the breakdown of the latter item, showing the related changes:

payables to the bilateral management Fund equal to Euro 149,830 thousand (of which Euro

80,597 thousand beyond the year), which increased by Euro 84,225 thousand compared to the

previous year as a result of the difference between the settlement that took place in 2013 (Euro

44,158 thousand) and the activation of the 2013 projects to be paid for in coming years (Euro

124,888 thousand) and the allocation by the Parent Company of the accrued portion of the

ordinary fund equal to Euro 3,496 thousand;

payables to personnel for Euro 173,666 thousand; the decrease of Euro 14,537 thousand is

mainly due to lower payables for additional fees to be paid, essentially attributable to a

reduction in the number of staff members;

payables for withholding taxes for IRPEF purposes for Euro 46,034 thousand, down by Euro

5,796 thousand;

guarantee deposits of Euro 28,787 thousand, up by Euro 5,796 thousand;

deferred income of Euro 43,426 thousand, with an increase of Euro 7,375 thousand compared to

2012, which essentially related to deferred revenues related to the customer loyalty campaign

and advance sales of tickets.

For an analysis of relations with Group companies, reference is made to the paragraph on related parties.

Non-

current Current Total

Non-

current Current Total

Non-

current Current Total

Payables to Social Security

Institutions 133,204 133,204 132,273 132,273 931 931

VAT payables 93,462 93,462 79,190 79,190 14,272 14,272

Other payables to Group companies 18,158 18,158 38,192 38,192 (20,034) (20,034)

Other payables and accrued

expenses and deferred income 80,598 391,670 472,268 25,917 365,384 391,301 54,681 26,286 80,967

Total 80,598 636,494 717,092 25,917 615,039 640,956 54,681 21,455 76,136

Differences31.12.2013 31.12.2012

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2013 Financial Statements 123

22. Current trade payables

The item is broken down as follows:

The decrease in the item “trade payables”, compared to the previous financial year, equal to Euro 367,208

thousand is attributable to:

a decrease of Euro 59,705 thousand in payables to suppliers as a result of the financial settlements

that took place in the year;

l00ower payables to group companies for Euro 307,382 thousand. The decrease was mainly

attributable to the financial settlement of the payable to Cisalpino AG for the purchase of rolling

stock (Euro 195,612 thousand), which was carried out through setoff against the receivable of Euro

117,420 thousand for the assumption of the financial debt to Eurofima and the receivable

corresponding to the countervalue of the capital decrease (Euro 65,705 thousand) and the

consequent payment of the difference; and to the financial settlement of trade payables to RFI

S.p.A. (Euro 80,185 thousand).

For more details on trade payables to Group companies, reference should be made to the paragraph on

related parties.

31.12.2013 31.12.2012 Differences

Payables to suppliers 809,046 868,751 (59,705)

Commercial advances 222 343 (121)

Trade payables to Group companies 812,854 1,120,236 (307,382)

Total 1,622,122 1,989,330 (367,208)

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2013 Financial Statements 124

Information on the Income Statement 23. Revenues from sales and services

The tables and comments below report the breakdown of the items that make up revenues from sales and

services.

2013 2012 Changes

Revenues from Transport Services 5,143,279 5,129,307 13,972

Market revenues 3,121,624 3,107,115 14,509

Passenger traffic products 2,652,279 2,613,165 39,114

Cargo traffic products 469,345 493,950 (24,605)

Fees for the Public Service Contract 2,021,655 2,022,192 (537)

Fees from the Government 489,990 514,263 (24,273)

Fees from Regional Governments 1,531,665 1,507,929 23,736 Revenues from Services to Railway Companies and Additional Traffic Services 129,482 150,016 (20,534)

Total 5,272,761 5,279,323 (6,562)

The item amounted to Euro 5,272,761 thousand, showing a decrease of Euro 6,562 thousand compared to

the previous year owing to the difference between revenues from transport services (Euro +13,972 thousand)

and revenues from services to railway companies and additional traffic services (Euro -20,534 thousand).

The positive change in market revenues for Euro 14,509 thousand is mainly attributable to:

An increase in revenues both from the medium- and long-distance sector for Euro 12,268 thousand,

mainly due to increased revenues from “Freccia” products, and from the regional transport sector for

Euro 26,849 thousand, mainly connected to increased fares;

a decrease of Euro 24,605 thousand in revenues from Cargo transport, substantially due to a

reduction in the trains/km linked to the general negative performance of the economy that entailed a

sharp decline in railway cargo traffic.

Revenues arising from fees for public service contracts (Regional Governments and the Government)

remained substantially unchanged compared to 2012. For an analysis of the internal performance of the single

contracts, reference is made to the comments on the reclassified income statement in the report on

operations.

The table below reports the breakdown of fees for the Public Service Contract with the Government:

2013 2012 Changes

Fees for the Public Service Contract with the Government

For passenger transport 386,800 408,174 (21,374)

For cargo transport 103,190 106,089 (2,899)

Total 489,990 514,263 (24,273)

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2013 Financial Statements 125

Revenues from other transport-related services showed an overall decrease of Euro 20,534 thousand

compared to 2012. This decrease was essentially attributable to a reduction in the performance of services for

rolling stock maintenance for Euro 15,945 thousand, of which Euro 14,996 thousand was attributable to

relations with Trenord Srl.

24. Other income

The table below reports the breakdown of other income:

2013 2012 Changes

Revenues from Property Management 10,120 9,722 398

Capital gains 27,328 10,693 16,635

Other sundry income 187,566 198,250 (10,684)

Total 225,014 218,665 6,349

Other income recorded an overall increase of Euro 6,349 thousand compared to the 2012. The most

significant changes in other income included:

an increase of Euro 16,635 thousand in capital gains, mainly due to scrapped rolling stock;

a decrease of Euro 10,684 thousand in Sundry income, mainly due to lower insurance compensation

payments (Euro 5,103 thousand) and to reductions in withholdings on tickets and other third-party

reimbursements (Euro 4,052 thousand).

25. Personnel costs

The table below reports personnel costs:

2013 2012 Changes

Permanent staff 1,855,916 1,923,448 (67,532)

Wages and salaries 1,381,962 1,406,565 (24,603)

Social security contributions 378,863 375,269 3,594

Other permanent staff costs 1,537 8,813 (7,276)

Severance pay 93,615 92,355 1,260

Provisions/Releases (61) 40,446 (40,507)

Self-Employed Staff and Collaborators 92 239 (147)

Wages and salaries 75 214 (139)

Social security contributions 17 25 (8)

Other costs 63,708 55,454 8,254

Service costs CLC (654) (643) (11)

Temporary employment, Seconded staff and Stage 1,206 1,010 196

Other costs 63,156 55,087 8,069

Total 1,919,716 1,979,141 (59,425)

Personnel costs, which totalled Euro 1,919,716 thousand, showed a decrease of Euro 59,425 thousand

compared to the previous year.

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2013 Financial Statements 126

This change was attributable to:

a reduction in permanent staff costs (Euro -67,532 thousand) due to a reduction by 2,084 resources

in average staff and to lower accruals to the income support fund;

an increase of Euro 8,254 thousand in other personnel costs, mainly relating to luncheon vouchers.

The table below reports the company’s average staff broken down by category:

PERSONNEL 2013 2012 Change

Executives 255 273 (18)

Middle managers 3,865 4,177 (312)

Other staff 29,672 31.426 (1,754)

TOTAL 33,792 35,876 (2,084)

26. Raw and secondary materials, consumables and goods for resale

The item is broken down as follows:

2013 2012 Changes

Raw materials and consumables 310,678 310,056 622

Electricity and drive fuels 63,810 60,913 2,897

Lighting and driving force 11,419 11,802 (383)

Total 385,907 382,771 3,136

“Raw materials and consumables”, equal to Euro 310,678 thousand, related to the consumption of stock

materials for Euro 298,591 thousand, to the purchase of heating fuel for Euro 4,707 thousand and to the

consumption of materials bought locally for the remaining amount.

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2013 Financial Statements 127

27. Costs for services

The balance is broken down in the table below:

2013 2012 Changes

Transport services 1,082,340 1,062,337 20,003

Toll 857,097 832,660 24,437

Cargo transport services 103,956 104,590 (634)

Other Transport-related services 60,210 55,003 5,207

Handling services 42,943 49,581 (6,638)

Ferrying services 18,134 20,503 (2,369)

Maintenance, cleaning and other contracted services 524,400 513,681 10,719

Services and works contracted-out on behalf of third parties 364 311 53

Cleaning services and other contracted-out services 224,925 218,256 6,669 Maintenance and repair of intangible assets and property,

plant and equipment 299,111 295,114 3,997

Real estate services and utilities 36,392 34,137 2,255

Administrative and IT services 96,459 89,264 7,195

External communication and advertising costs 15,825 14,237 1,588

Sundry services 307,854 297,029 10,825

Professional services 5,695 6,102 (407)

Tenders and fees to other Railway Companies 15,268 15,362 (94)

Group common costs 2,057 2,133 (76)

Insurance 28,758 30,492 (1,734)

Night train services 20,923 23,571 (2,648)

Catering 65,370 50,746 14,624

Consultancy 693 399 294

Commissions to agencies 44,521 41,050 3,471

Other 121,921 127,151 (5,230)

Provisions/Releases 2,648 23 2,625

Total 2,063,270 2,010,685 52,585

The trend in costs for services shows an increase equal to Euro 52,585 thousand.

The most significant changes included:

transport services increased by Euro 20,003 thousand, attributable to higher costs for tolls (Euro

+24,437 thousand) due to an increase in the offer of Long-Distance market services and to higher

costs of providing assistance to passengers with reduced mobility, which were partially offset by

lower costs for ferrying services (Euro -2,369 thousand) and lower costs for handling services (Euro -

6,638 thousand);

costs for maintenance, cleaning services and other contracted services increased by about Euro

10,719 thousand, mainly due to increased costs for cleaning services;

the cost of administrative and IT services rose by Euro 7,195 thousand owing to an increase in the

amount of maintenance of the outsourcer’s software;

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2013 Financial Statements 128

costs for sundry services increased by Euro 10,825 thousand; this change was mainly due to higher

costs for catering services (Euro 14,624 thousand), for commissions to agencies (Euro 3,471

thousand) and higher provisions for civil disputes (Euro 2,625 thousand) set aside compared to the

same period in the previous year, which were partially offset by a reduction in insurance costs (Euro

-1,734 thousand), costs for night train services (Euro -2,648 thousand) and savings in sundry costs,

in particular for Logistics and Facility management services.

28. Leases and rentals

The table below reports the breakdown of costs for leases and rentals.

2013 2012 Changes

Operating lease rentals 8 2 6

Lease rentals, service charges and IRE 77,624 77,071 553

Rentals and indemnities of rolling stock and other 37,006 49,912 (12,906)

IT services and other 14,883 24,483 (9,600)

Total 129,521 151,468 (21,947)

The cost of leases and rentals decreased by Euro 21,947 thousand owing to a fall in the amount of rolling

stock leased (Euro 12,906 thousand) as a result of the cancellation of the ETR 610 lease agreement with

Cisalpino AG after these trains had been transferred to Trenitalia in 2012 and also as a result of lower rentals

payable for the use of Ferrovie dello Stato Italiane brand for Euro 9,600 thousand as a result of amendments

to the contract.

29. Other operating costs

The table below reports the breakdown of other operating costs:

2013 2012 Changes

Other costs 34,886 26,936 7,950

Capital losses 3,864 2,790 1,074

Provisions/Releases 6,703 4,185 2,518

Total 45,453 33,911 11,542

The increase in other operating costs, equal to Euro 11,542 thousand, was essentially attributable to higher

costs for the single municipal tax (Imposta Municipale Unica, IMU) (Euro 1,199 thousand), higher waste

collection charges (Euro 2,119 thousand), higher contractual penalties to Group companies (Euro 2,568

thousand) and the capital losses arising from the disposal of rolling stock in the production cycle (Euro 1,074

thousand). Furthermore, there were higher provisions of Euro 2,518 thousand in relation to possible disputes

with the Regional Governments.

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2013 Financial Statements 129

30. Capitalization of internal construction costs

Capitalization of internal construction costs mainly related to the value of costs of materials, personnel and

transport costs capitalised in 2013 against value-increasing maintenance actions of rolling stock carried out at

the workshops owned by the Company.

The amount of the item (Euro 431,368 thousand) is almost fully attributable to the capitalisation of value-

increasing maintenance.

31. Amortisation and depreciation

The item is broken down as follows:

2013 2012 Changes

Amortisation of intangible assets 33,318 26,848 6,470

Depreciation of property, plant and equipment 899,422 897,795 1,627

Total 932,740 924,643 8,097

The overall increase of Euro 8,097 thousand in this item was due to the entry into operation of new assets

and to the ordinary course of the process of amortisation/depreciation of any assets already in operation.

32. Write-downs and impairment losses (reversals)

The item is broken down as follows:

2013 2012 Changes

Write-downs of property, plant and equipment 20,545 6,675 13,870

Value adjustments and write-backs on receivables 288 650 (362)

Total 20,833 7,325 13,508

Write-downs and impairment losses increased by Euro 13,508 thousand; this change was mainly attributable

to an increase in write-downs of rolling stock (Euro 10,812 thousand) and workshop equipment (Euro 2,531

thousand).

33. Finance income

The table below reports the breakdown of finance income:

2013 2012 Changes

Finance income from non-current receivables and securities 1,038 1,055 (17)

Sundry finance income 3,392 2,997 395

Finance income on derivatives 1,999 0 1,999

Dividends 2,683 10,012 (7,329)

Foreign exchange gains 17,213 485 16,728

Total 26,325 14,549 11,776

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2013 Financial Statements 130

The balance of finance income was equal to Euro 26,325 thousand, showing an increase of Euro 11,776

thousand. This increase was due to finance income on derivatives (Euro 1,999 thousand) and to foreign

exchange gains (for more information, reference is made to note 35 on net foreign exchange gains).

Furthermore, there was a reduction of Euro 7,329 thousand due to lower dividends collected from TX Logistik.

34. Finance costs

The table below reports the breakdown of finance costs:

2013 2012 Changes

Finance costs on payables 161,467 171,998 (10,531)

Finance costs for employee benefits (TFR and CLC) 24,132 42,410 (18,278)

Finance costs on derivatives (CAPS and COLLARS) 0 1.056 (1,056)

Write-downs of financial assets 9,855 38 9.817

Foreign exchange losses 152 1,280 (1,128)

Total 195,606 216,782 (21,176)

Finance costs on payables showed a decrease, compared to 2012, equal to Euro 21,176 thousand, which was

mainly attributable to the combined effect of the reduction in interest rates recorded in international markets

and in particular of the Euribor rate to which charges from debt service are linked and of the reduction in the

average debt for the year. This item, which totalled Euro 161,467 thousand, is essentially made up of:

interest expense on loans from banks for Euro 11,701 thousand;

interest expense on IRS derivative instruments for Euro 73,321 thousand;

interest expense and premiums on Cap and Collar derivatives for Euro 43,190 thousand;

interest expense on loans and other charges to the subsidiary for Euro 30,338 thousand.

Finance costs for employee benefits, amounting to Euro 24,132 thousand, are attributable to the discounting

of provisions for TFR (Euro 23,236 thousand, of which Euro 2,067 related to the portion of the revaluation

paid to the Tax Office) and Free Travel Card (Euro 439 thousand) determined by the actuarial valuation of the

two balance sheet items. Write-downs of financial assets (Euro 9,855 thousand) related to the adjustment to

the book value of the equity investment in order to bring it into line with the equity of the subsidiary Thello

SaS. For more information, reference is made to the note on equity investments.

35. Foreign exchange gains (losses)

Net foreign exchange gains, which totalled Euro 17,061 thousand, showed an increase of Euro 16,266

thousand compared to 2012, which was mainly attributable to the recognition of foreign exchange gains from

the decrease in the share capital of Cisalpino.

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2013 Financial Statements 131

36. Current, deferred tax assets and liabilities for the year

The table below reports the breakdown of income taxes:

2013 2012 Changes

IRAP tax 73,019 80,698 (7,679)

IRES tax 5,859 3,464 2,395

Deferred tax assets and liabilities 2,055 (74,588) 76,643

Total 80,933 9,574 71,359

The tax charge accrued in the year, which was determined through a prudent application of the current tax

regulations, increased by Euro 71,359 thousand. The increase was the result of the following developments:

a negative change of Euro 76,643 thousand in deferred tax assets and liabilities arising from the

comparison between the deferred tax assets calculated in the 2012 accounts against tax benefits

quantified in the subsequent periods (equal to Euro 72,000 thousand) and the adjustment made in

2013, with a negative effect of Euro 3 million on the tax charge due to the recognition of deferred tax

assets for 2013 (Euro 43,975 thousand) through profit or loss and the amount of tax estimated for

2014-2015 (Euro 40,975 thousand);

a reduction of Euro 7,679 thousand in the IRAP tax charge. The amount accruing in 2013 is reported

net of the adjustments to the estimated tax for previous periods, settled with the presentation of the

relative returns during 2013;

an increase of Euro 2,395 thousand in the IRES tax charge. The amount accruing in 2013 is reported

net of the income resulting from the Company’s adoption of the Group’s consolidated tax base and the

adjustments to the estimated tax for previous periods, settled with the presentation of the relative

returns during 2013.

Below is reported the table of reconciliation of the actual tax rate:

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2013 Financial Statements 132

37. Contingent assets and liabilities

As at the balance sheet date, there were no contingent assets or liabilities to be reported.

38. Fees due to Directors and Statutory Auditors

Below are reported the fees due to the Directors and to the members of the Board of Statutory Auditors for

the performance of their duties:

Fees due to Directors include emoluments envisaged for the positions of Chairman and Chief Executive

Officer, as well as any emoluments envisaged for the remaining Board members.

To the above fees must be added the fees due to the external member (Chairman) of the Supervisory Board

for about Euro 40 thousand.

2013 % 2012 %

Profit (loss) for the year 181,489 206,424

Total income tax from the financial statements 80,933 9,574

Pre-tax profit 262,421 215,998

Theoretical IRES tax (27.50%) 72,166 27.5% 59,399 27.5%

Lower taxes:

Use of Provisions for Risks and charges and Corporate Restructuring (40,625) -15.5% (71,727) -33.2%

IRAP amount related to personnel costs deductible from IRES tax (15,385) -5.9% (18,320) -8.5%

Dividends recognized through P&L (701) -0.3% (2,616) -1.2%

Other Changes (17,396) -6.6% (295) -0.1%

Higher taxes:

Impairment losses and accruals that cannot

be deducted in whole or in part 18,455 7.0% 54,170 25.1%

Other Changes 38,454 14.7% 19,953 9.2%

Total current income taxes (IRES tax) 54,968 20.9% 40,564 18.8%

Income from adoption of the consolidated tax base and other

adjustments (49,109) -18.7% (37,100) -17.2%

IRES tax 5,859 2.2% 3,464 1.6%

IRAP tax 73,018 27.8% 80,698 37.4%

Total deferred taxation 2,055 0.8% (74,588) -34.5%

TOTAL INCOME TAXES 80,933 30.8% 9,574 4.4%

RECIPIENTS 2013 2012 Change

Directors 491 499 (8)

Statutory Auditors 63 63 0

554 562 (8)

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2013 Financial Statements 133

39. Fees due to the Independent Auditors

It should be noted that – pursuant to article 37, paragraph 16, of Legislative Decree no. 39/2010 and letter

16-bis of article 2427 of the Italian Civil Code, the total amount of fees due to the Independent Auditors is

equal to Euro 611 thousand, including the relevant fees paid to them in the financial year for other auditing

services other than statutory audit (Euro 142 thousand).

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2013 Financial Statements 134

40. Information on the direction and coordination activity

The essential data of the controlling company Ferrovie dello Stato Italiane S.p.A., which are reported in the

summary statement required by article 2497-bis of the Italian Civil Code, have been taken from the related

financial statements for the financial year ended 31 December 2012. For an adequate and full understanding

of the equity and financial position of Ferrovie dello Stato Italiane S.p.A. (controlling company) at 31

December 2012, as well as of the result of operations achieved by the company in the financial year ended on

that date, reference is made to the financial statements that are available, together with the report of the

independent auditors, in the forms and according to the manners prescribed by law.

It should be noted that Ferrovie dello Stato Italiane S.p.A. prepares consolidated accounts.

amounts in thousands of euro

(Euro) 31.12.2012 31.12.2011

Assets

Total non-current assets 41,342,070 43,084,969

Total current assets 3,664,642 2,534,679

Total assets 45,006,712 45,619,648

Equity

Share capital 38,790,425 38,790,425

Reserves 298,488 298,231

Profits (losses) carried forward (2,987,495) (3,026,753)

Profit (loss) for the year 73,291 41,305

Total Equity 36,174,709 36,103,209

Liabilities

Total non-current liabilities 5,663,086 7,601,630

Total current liabilities 3,168,917 1,914,808

Total liabilities 8,832,003 9,516,439

Total equity and liabilities 45,006,712 45,619,648

2012 2011

Operating revenues 156,569 145,739

Operating costs 146,360 152,121

Amortisation and depreciation 21,474 18,902

Write-downs and impairment losses (reversals) 1,323 1,552

Provisions for risks and charges 0 3,000

Finance income and costs 72,770 13,238

Income taxes (12,649) (57,904)

Profit from assets held for sale, net of tax effects 460 -

Profit (loss) for the year 73,291 41,305

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2013 Financial Statements 135

41. Related parties

Transactions with executives with strategic responsibilities

Below are reported the fees due to executives with strategic responsibilities:

2013 2012

Short-term benefits 4,229 3,785

Post-employment benefits 214 218

4,443 4,003

The benefits relate to the fees paid to executives with strategic responsibilities, plus MBO fees (if any). In

addition to short-term benefits of Euro 4,229 thousand paid out in 2013, note a variable part to be paid in

2014, for an amount not exceeding Euro 730 thousand (Euro 740 thousand in 2012).

It should be noted that the executives with strategic responsibilities did not receive benefits for the

termination of the employment relationship, nor any other long-term benefits.

Other transactions with related parties

Below are described the main relations with related parties maintained by the Ferrovie dello Stato Italiane

Group, which are all regulated at arm’s length:

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Name Credit relationships Debt relationships

Subsidiaries

Cargo Transport service Handling services

Rolling stock maintenance and hire Railway transport terminalisation services

Hire of carriages Carriages maintenance

Secondment of staff

Trenitalia Logistik France S.a.s. International cargo transport service Handling support services

Rolling stock maintenance and hire Commissions expense

Sale of railway tickets

Sales commissions

Secondment of staff

International cargo transport service International cargo transport service

Rolling stock maintenance and hire Handlings, terminalisation services

Secondment of staff

Jointly-controlled entities

Purchase of materials

Financial relationships:

Interest expense

Rolling stock hire Commissions expense

Rolling stock maintenance Servizi integrati gestione circolazione

Handling and traffic services

Sales commissions

Secondment of staff

Financial relationships:

Interest income on loans

Associates Credit relationships Debt relationships

Cargo transport service Cargo transport service

Rolling stock hire

Alpe Adria S.p.A. Cargo transport service

Financial relationships:

Interest on loans

Controlling companies

Transport of employees and relatives

Supply and management of staff

services

Train hire Secondment of staff

Secondment of staff Corporate positions

Tickets

Rentals and charges for lease of

properties

Licence for use of the Brand

Financial relationships: Financial relationships:

Interest income Intercompany current account

Interest expense on loans

Guarantees

Other affiliates Credit relationships Debt relationships

Rete Ferroviaria Italiana S.p.A. (b) Transport of employees and relatives Toll

Cargo transport service Electricity for train drive

Rolling stock maintenance Handling service

Rolling stock hire Ferrying service

Maintenance engineering Additional traffic services

Secondment of staff Maintenance

Railway Police services

Health services

Secondment of staff

Rentals and charges for lease of

properties

Serfer S.r.l.

Logistica SA

Pol Rail S.r.l.

Ferrovie dello Stato Italiane S.p.A. (a)

Tx Logistik AG

Thello S.a.s.

Cisalpino AG

Trenord S.r.l.

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Netinera Deutschland GmbH (b) Secondment of staff

SGT S.p.A. Rolling stock hire Handling service

Cargo transport service Integrated logistics

Rolling stock maintenance and testing

Hire of carriages

Tickets

Cargo transport service Transport and shipment

Operation of cargo terminals

Railway transport terminalisation

services

Rolling stock hire Manual labourers for porterage

Secondment of staff Rolling stock hires

Tickets Leases of areas

Transport of employees and relatives Personnel administration

Accounting and treasury

Facilities management

Ferrotel

Catering administrative management

Group purchasing services

Metropark S.p.A. Parking agreements

Tickets Rentals for lease of properties

Sponsorships

Advertising campaigns at stations

Service charges

Tickets Maintenance of properties

Pubblicità sui treni System cleaning service

Rentals and charges for lease of

properties

Busitalia - Sita Nord (b) Rental for parking areas Replacement bus services

Tickets Credit scoring services

Transferee of payables to suppliers

Financial relationships:

Interest expense

Transport of employees and relatives Engineering services

Rentals and charges for lease of properties

Secondment of staff Testing activities

Certification and Testing

FS Sistemi urbani S.r.l. (b) Rentals and charges for lease of

properties

Terminali Italia S.r.l.

FS Logistica S.p.A. (b)

Fercredit S.p.A. (b)

Italcertifer Soc.Cons.p.A. (b)

Ferservizi S.p.A. (b)

Grandi Stazioni S.p.A. (b)

Centostazioni S.p.A. (b)

Cemat S.p.A.

Italferr S.p.A. (b)

Name Credit relationships Debt relationships

Subsidiaries

Cargo Transport service Handling services

Rolling stock maintenance and hire Railway transport terminalisation services

Hire of carriages Carriages maintenance

Secondment of staff

Trenitalia Logistik France S.a.s. International cargo transport service Handling support services

Rolling stock maintenance and hire Commissions expense

Sale of railway tickets

Sales commissions

Secondment of staff

International cargo transport service International cargo transport service

Rolling stock maintenance and hire Handlings, terminalisation services

Secondment of staff

Jointly-controlled entities

Purchase of materials

Financial relationships:

Interest expense

Rolling stock hire Commissions expense

Rolling stock maintenance Servizi integrati gestione circolazione

Handling and traffic services

Sales commissions

Secondment of staff

Financial relationships:

Interest income on loans

Associates Credit relationships Debt relationships

Cargo transport service Cargo transport service

Rolling stock hire

Alpe Adria S.p.A. Cargo transport service

Financial relationships:

Interest on loans

Controlling companies

Transport of employees and relatives

Supply and management of staff

services

Train hire Secondment of staff

Secondment of staff Corporate positions

Tickets

Rentals and charges for lease of

properties

Licence for use of the Brand

Financial relationships: Financial relationships:

Interest income Intercompany current account

Interest expense on loans

Guarantees

Other affiliates Credit relationships Debt relationships

Rete Ferroviaria Italiana S.p.A. (b) Transport of employees and relatives Toll

Cargo transport service Electricity for train drive

Rolling stock maintenance Handling service

Rolling stock hire Ferrying service

Maintenance engineering Additional traffic services

Secondment of staff Maintenance

Railway Police services

Health services

Secondment of staff

Rentals and charges for lease of

properties

Serfer S.r.l.

Logistica SA

Pol Rail S.r.l.

Ferrovie dello Stato Italiane S.p.A. (a)

Tx Logistik AG

Thello S.a.s.

Cisalpino AG

Trenord S.r.l.

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2013 Financial Statements 138

(a) The company that carries out direction and coordination activities.

(b) Jointly-controlled entity.

The table below summarises the financial and economic values of the financial year ended 31 December 2013

for transactions with related parties.

Other related parties

Secondment of staff Complementary pension funds

Tickets

CDP Group Tickets Purchase of materials

Transport of material Lighting and driving force

Lease rentals Electricity utilities

Transport of material Drive diesel

Tickets Gas utilities

EXPO 2015 Group Rolling stock hire

National and international cargo transport Rolling stock maintenance

Nolo materiale rotabile Purchase of materials

GSE Group Tickets

Invitalia Group Tickets

IPZS Group Tickets

National cargo transport Ticket printing, publications

Transport and shipment

Postal charges

Rai Group Subscriptions

Sogin Group Tickets

Pension funds

Poste Group

Enel Group

Eni Gropu

Finmeccanica Group

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2013 Financial Statements 139

Business and other relations

(in thousand of euro)

Subsidiaries 17,279 13,145 - - - 37,151 30,649

Serfer S.r.l. 3,973 7,093 22,807 3,141

Trenitalia Logistik France S.a.s. 1,068 24 315 3,579

Thello S.a.s. 9,942 352 1,131 17,545

Tx Logistik AG 2,296 5,676 12,898 6,384

Jointly-controlled entities 49,031 20,657 1,736 - - 12,237 110,525

Cisalpino AG 83 303 291 41 154

Trenord S.r.l. 48,948 20,354 1,445 12,196 110,371

Associates 2,128 1,205 - - - 5,964 12,400

Pol Rail S.r.l. 1,655 1,196 5,953 7,051

Alpe Adria S.p.A. 466 9 11 5,342

East-Rail S.r.l in liquidation 7 7

Controlling companies 23,218 33,918 - - - 50,446 2,210

Ferrovie dello Stato Italiane S.p.A. (a) 23,218 33,918 50,446 2,210

Other Affiliates 181,880 761,943 19,065 - - 1,221,379 187,505

Rete Ferroviaria Italiana S.p.A. (b) 103,175 447,941 13,273 1,032,304 129,274

Netinera Deutschland GmbH (b) 604 210

SGT S.p.A. 167 624 541 66

Cemat S.p.A. 23,350 7,996 2,427 44,808

Terminali Italia S.r.l. 1 27 45

FS Logistica S.p.A. (b) 38,408 12,801 1,327 27,367 8,400

NET in liquidation 1 7

Ferservizi S.p.A. (b) 1,007 28,324 83,022 2,185

Metropark S.p.A. 230 128

Grandi Stazioni S.p.A. (b) 114 7,429 1,178 30,578 181

Centostazioni S.p.A. (b) 52 4,446 141 12,048 608

Busitalia - Sita Nord (b) 375 10,633 32,092 294

Fercredit S.p.A. (b) 35 239,733 215 9

Italferr S.p.A. (b) 2,456 1,056 2,985 1,291

Sita S.p.A. in liquidation 10,204 29

Italcertifer Soc.Cons.p.A. (b) 1,930 598 161 232 133

FS Sistemi Urbani S.r.l. (b) 1 69 425 1

Name

31.12.2013 2013

Receivables Payables

Purchases for

investments Guarantees

Commitments Costs Revenues

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2013 Financial Statements 140

Financial relations

Other related parties 155,364 167,041 110,566 - - 78,453 37,693

Pension Funds 38 1,092 272

CDP Group 35 824 1,570 163

Enel Group 1,575 995 10,136 1,931

Eni Group 1,785 1,233 16,866 18,631

EXPO 2015 Group 16

Finmeccanica Group 151,885 161,113 110,566 46,141 16,019

GSE Group 21

Invitalia Group 23 126

IPZS Group 16 59

Poste Group 1,548 3,680 206

Rai Group 236 60

Sogin Group 7 249

TOTAL 428,900 997,909 131,367 - - 1,405,630 380,982

(in thousand of euro)

Subsidiaries - - - - - 2,500

Tx Logistik AG 2,500

Jointly-controlled entities 38,670 - - - 143 1,351

Trenord S.r.l. 38,670 1,351

Cisalpino AG 143

Associates 350 - - - - 185

Logistica SA 350 3

Pol Rail S.r.l. 182

Controlling companies 340 4,329,046 - - 30,338 -

Ferrovie dello Stato Italiane S.p.A. 340 4,329,046 30,338

Other affiliates - - - - 350 -

Fercredit S.p.A. 350

TOTAL 39,360 4,329,046 - - 30,831 4,036

Name

31.12.2013 2013

Receivables Payables Guarantees Commitments Charges Income

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2013 Financial Statements 141

42. Guarantees

The overall value of guarantees given is Euro 3,577,737 thousand and essentially relates to:

collaterals on pledges on the Company-owned rolling stock, issued by the company in favour of Eurofima

to secure medium- and long-term loans raised through Ferrovie dello Stato Italiane (Euro 3,409,660

thousand);

guarantees issued in favour of the Regional Governments for the Service Contract and to other Entities on

the part of Credit Institutions and Poste (Euro 168,077 thousand).

43. Events after the balance sheet date

In January 2014 Trenitalia learned from the Infrastructure Manager that the electric energy traction costs

was to be increased from 1 January 2014 by virtue of Resolution no. 641/2013/R/COM passed by the

Energy and Gas Authority (Autorità dell’Energia Elettrica e Gas, AEEG) on 27 December 2013. Specifically,

given the ongoing revision of the costs saddling power intensive companies, the resolution changed

profoundly the application of the Additional Tariff Components (Componenti Tariffarie Aggiuntive)

(Stranded Costs), which in fact resulted in a significant abatement of the tariff discounts extended,

among others, to railway companies. The company initiated administrative proceedings to request the

Court to declare the AEEG resolution null and void.

On 24 February the IC 660 train that derailed at Andora on 17 January 2014 owing to a landslide from

private land was removed using a crane lighter. Work began with the positioning of the lighter at 6 a.m.

and railway services resumed along the whole line some days later.

On 17 February, the ruling was filed which rejected the class action initiated by certain Calabrian

passengers and municipalities requesting, through an appeal filed with the Lazio Regional Administrative

Court in October 2012, that night train service be restored on the south-north line. The Court ruled that

Trenitalia did not “violate the obligations contained in the service charters and the quality and economic

standards set for public service concessionaires”, defining the Company’s choices “consistent with the

general rules and regulations as well as with the provisions of the service contract.” The railway services

covered by the appeal, in fact, are part of the universal services that Trenitalia performs upon request of

the State, which outlines in the specific service contract the relevant quantity and characteristic plans.

Starting from 27 February, Trenitalia’s tickets may be purchased from the TV at home. This innovative

sales channel was activated thanks to the “ProntoTreno” application which, after the success of the

versions created for smartphones and tablets, has now been made available on Samsung’s smart TVs.

With ProntoTreno travellers can now purchase tickets for national and regional destinations and can

change their bookings, apply for a refund, see whether train in circulation are running on time, check the

departing track and receive useful information directly while sitting in front of the TV at home.

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2013 Financial Statements 142

On 19 March 2014 the Company was informed that the Council of State had filed a favourable judgment

in the appeal submitted in 2007 by a group of railway undertakings, including Trenitalia, regarding the

application of the criterion for the calculation of the K2 charge for access to the railway infrastructure. At

the moment the Company is waiting to learn the contents of the judgment and the amount of discount on

the access charge that will be payable for the previous financial years. It is appropriate to observe that

the amount of the discount could constitute a substantial contribution to the Company’s revenues.

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2013 Financial Statements 143

Annex 1

Reclassified Balance Sheet of the cargo transport segment

Full-cost Reclassified Income Statement of the cargo transport segment

(in thousand of euro)

31.12.2013 31.12.2012 Differences

NET ASSETS

Net current operating assets 159,122 219,970 (60,848)

Other net assets (66,878) (72,925) 6,047

Net working capital 92,244 147,045 (54,801)

Property, plant and equipment 598,852 596,278 2,574

Investments under non-current financial assets 101,024 101,019 5

Net fixed assets 699,876 697,297 2,574

Severance Pay (TFR) (144,391) (185,981) 41,590

Other provisions (34,238) (34,423) 185

Total provisions (178,629) (220,404) 41,775

TOTAL NET INVESTED CAPITAL 613,491 623,938 (10,447)

2013 2012 Differences

Operating revenues 637,168 665,660 (28,492)

- Revenues from sales and services 578,885 610,211 (31,326)

- Other revenues 58,283 55,449 2,834

Operating costs (626,006) (686,405) 60,399

EBITDA 11,162 (20,745) 31,907

Amortisation and depreciation (67,213) (74,218) 7,005

Write-downs and impairment losses (reversals) 0 (8) 8

EBIT (56,051) (94,971) 38,920

(in thousand of euro)

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AUDITORS’ REPORT IN ACCORDANCE WITH ARTICLE 14 OFLEGISLATIVE DECREE No. 39 OF 27 JANUARY 2010

TRENITALIA SPA

FINANCIAL STATEMENTS AS OF 31 DECEMBER 2013

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PricewaterhouseCoopers SpA

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AUDITORS’ REPORT IN ACCORDANCE WITH ARTICLE 14 OF LEGISLATIVE DECREENo. 39 OF 27 JANUARY 2010

To the Shareholder ofdi Trenitalia SpA

1 We have audited the financial statements of Trenitalia SpA as of 31 December 2013, whichcomprise the statement of financial position, income statement, statement of comprehensiveincome, statement of changes in equity, statement of cash flows and related explanatory notes.The directors of Trenitalia SpA are responsible for the preparation of these financialstatements in compliance with International Financial Reporting Standards as adopted by theEuropean Union. Our responsibility is to express an opinion on these financial statementsbased on our audit.

2 We conducted our audit in accordance with the auditing standards issued by the ItalianAccounting Profession (Consiglio Nazionale dei Dottori Commercialisti e degli EspertiContabili) and recommended by Consob, the Italian Commission for Listed Companies andthe Stock Exchange. Those standards require that we plan and perform the audit to obtain thenecessary assurance about whether the financial statements are free of material misstatementand, taken as a whole, are presented fairly. An audit includes examining, on a test basis,evidence supporting the amounts and disclosures in the financial statements. An audit alsoincludes assessing the accounting principles used and significant estimates made by thedirectors. We believe that our audit provides a reasonable basis for our opinion.

For the opinion on the financial statements of the prior period, which are presented forcomparative purposes, reference is made to our report dated 7 May 2013.

3 In our opinion, the financial statements of Trenitalia SpA as of 31 December 2013 comply withInternational Financial Reporting Standards as adopted by the European Union; accordingly,they have been prepared clearly and give a true and fair view of the financial position, result ofoperations and cash flows of Trenitalia SpA for the year then ended.

4 The directors of Trenitalia SpA are responsible for the preparation of a report on operations incompliance with the applicable laws. Our responsibility is to express an opinion on theconsistency of the report on operations with the financial statements, as required by law. Forthis purpose, we have performed the procedures required under Italian Auditing Standard no.

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2 of 2

001 issued by the Consiglio Nazionale dei Dottori Commercialisti e degli Esperti Contabili andrecommended by Consob. In our opinion the report on operations is consistent with thefinancial statements of Trenitalia SpA as of 31 December 2013.

Rome, 8 April 2014

PricewaterhouseCoopers SpA

Signed by

Leda Ciavarella(Partner)

This report has been translated into the English language from the original, which was issued inItalian, solely for the convenience of international readers.

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Bilanciodi esercizio

2013

Bilanciodi esercizio

2013

Piazza della Croce Rossa,100161 Roma

www.trenitalia.com