financial statements at 31 december - Ferrovie dello Stato Italiane

This change mainly arises from the instructions given by the customer Regional Governments, which led to an average
increase of 6.9% in regional fares and a 0.8% reduction in traffic volumes as a result of the cuts in the services
requested.
During 2012 the regulatory provisions governing competition in the public transport services sector changed twice. First,
Article 25 of Legislative Decree no. 1 of 24 January 2012, bearing “Urgent measures for competition, development of
infrastructures and competitiveness” stated that Regional Governments had to put regional transport services out to
tender when the current agreements expired and prevented the Regional Governments from renewing the agreements
for a further six years. The legal framework then changed completely as a result of Constitutional Court judgment no. 199
of 20 July 2012, which ruled the constitutional illegality of Article 4 of Decree Law 138/2011, as amended and converted
by Law 148/2011, repealing, for all practical purposes, the obligation to award public services by tender, thus, in practice,
allowing Service Contracts to be renewed/renegotiated.
In the regional and local Universal Services sector, together with greater intermodal rail-road integration, which is to be
achieved through new partnerships/acquisitions with local firms in compliance with the line laid down in the Business
Plan, it is expected that metropolitan services will be developed by means of an expansion of the fleet and a
reorganisation of the range of services (in terms of both quantity and quality) in agreement with the competent local
authorities. The aim is to speed up and streamline train services between peripheral and large urban areas, at the same
time increasing the frequency of the trains and the number of stations at which they stop within the metropolitan areas.
The massive plan for the modernisation of the rolling stock for regional and local transport is also expected to be
completed during the period covered by the Business Plan.
In the Cargo Transport and Logistics sector, even if the lasting international economic crisis has been particularly felt in
business to business services, the Ferrovie dello Stato Italiane Group already intends to aim at breaking even (in terms of
EBIT) in 2013, developing train drive and logistics services through its companies (Trenitalia Cargo, TX Logistik, FS
Logistica, CEMAT). From the commercial point of view, we shall have to continue to concentrate on the busiest routes
and try to work together with others and form partnerships in order to be present at the key points of access to the
services (ports and freight terminals).
As we know, the “market” sector was affected, starting from the second quarter of 2012, by the change in equilibrium
resulting from the entry of new private operators that began to run services on what is, in fact, the most remunerative
part of the market.
In spite of this, in a scenario in which the Group’s operating revenues held firm – coming to Euro 8.3 billion again, as in
2011 – “market” revenues from the profitable segment were Euro 24 million higher at the end of 2012 (+ 1.8%).
As regards investments, in 2012, even if it had to operate in a macroeconomic scenario that was still unfavourable and
with a scarcity of public funds, the FS Italiane Group managed to achieve better results than the previous year,
confirming the virtuous path to growth and expansion on which it had already embarked. The FS Italiane Group continues
to carry out its Investment Plan with the aim of creating value to the benefit of the Italian business and production
system, contributing to the stimulation of a new growth cycle, even if this was in contrast to the negative trend in the
country as a whole, both with respect to investments in construction (-6.9% compared to 2011) and in machinery and
means of transport (-11.3% compared to 2011) 1 .
1 Source: Prometeia forecast report, January 2013.
2012 Report on Operations 5