Perspectives for TRAINOSE and through the Presence of the FS Italiane Group Ferrovie dello Stato Italiane Group

Organizational structure

Ministry of Economy and Finance Ministry of Infrastructure and Transport

100% Ferrovie dello Stato Italiane      100% 100% 100% 100% 100%

RFI ANAS Group* Mercitalia Group

Rail infrastructure Operator of Railway Roadway infrastructure Integrated logistic manager passenger rail engineering manager and operator operator (rail and road) transport

company  51% 55,7% 100% 100% Group Italcertifer BusItalia Group TX Logistik Other Companies Operator of regional Company for certification Operator Rail freight passenger transport (rail of rail components and of public bus operator (Europe) transport

and road) in systems  100% 100% 100% 100% Trenitalia UK Trainose

Operator of Local public transport for passenger rail service company in the passenger and freight rail Netherlands transport in UK 8

*Administrative issues under finalization FS Italiane Group – Strategic plan 2017-2026

Modal Growth in Integration 1 services abroad Passenger

Development of local public transport abroad, 2 mainly relying on the Integrated International international presence of Logistics development the Group by acquisition

Growth abroad for the construction of major 3 infrastructure as General Contractor

Digital & Integrated customer infrastructure centricity

7 Our financial performance

Net result (M€) 552 Year 2017 Revenues 9.299 M€ 2017 Revenue share in foreign markets 15,4 % Staff (employees) 74.436

9,299 Revenues

2017:

1.975 -6,5% Ebitda Revenues 9.299 M (+0,9% vs. 2016)

EBITDA 2.313 M (+3,4% vs. 2016)

6,986 Costs

9 Profitability benchmark

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Revenues - M€ 6.703 7.680 7.816 7.821 7.985 8.264 8.228 8.329 8.390 8.585 8.928 9.299 Ebitda Margin - % -9,7% 6,0% 13,2% 17,4% 21,0% 21,6% 23,3% 24,4% 25,2% 23,0% 25,7% 24,9% Ebit Margin - % -28,8% -0,3% 5,7% 5,6% 6,3% 8,0% 8,7% 9,9% 7,9% 7,5% 10,0% 7,7%

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Revenues - M€ 32.912 34.528 36.498 33.199 37.530 41.041 42.739 41.960 42.552 43.175 43.391 Ebitda Margin - % 16,5% 16,5% 14,6% 15,2% 12,6% 12,5% 13,7% 11,9% 11,8% 10,0% 10,3% Ebit Margin - % 7,5% 8,4% 7,1% 6,7% 4,8% 5,3% 5,9% 4,2% 4,3% -0,4% 3,4%

2006 2007 2008 2009 *2010 2011 2012 2013 2014 2015 2016 2017 Revenues - M€ 21.965 23.691 25.184 24.882 30.466 32.645 33.820 32.232 29.898 31.393 32.273 33.515 * Ebitda Margin - % 13,4% 11,7% 10,3% 6,8% 7,1% 9,3% 8,5% 8,7% 15,5% 14,1% 12,8% 13,7% Ebit Margin - % 6,2% 6,9% 3,4% -1,8% 4,6% 2,5% 3,5% 0,9% 7,5% -32,2% 6,6% 7,8%

FS Italiane Group is the top European player in profitability

* Starting from 2014, the consolidated KPI of SNCF include also the KPI of the Infrastructure Manager SNCF Réseau (Integration between the BU SNCF "Infra" and the former GI RFF)

Source: Elaborations carried out by FS Italiane based on the Annual Reports of FS Italiane Group, DB and SNCF Group 10 Infrastructure of the national railway network

Operating Length Km. 2.780 Km. 2.039

% single 79%

% double 21%

% electrified 19%

% not 81% electrified

Untill 79 km/h 736 km. Design 80 -119 km/h 861 km. speed 120-159 km/h 580 km. Over160 km/h 377 km.

 The main line starts from Piraeus and runs through central Greece to the north, up to the border with FYROM in Idomeni.

 The main suburban lines serve the cities of Kiato, Corinth, Chalkida, as well as the routes in the area.

 Other lines are Western Macedonia (Platy - Edessa - Amyntaio - ), Eastern Macedonia ( - Strymonas - Alexandroupolis-Ormenio) and the Peloponnese Network Evolution railway sector in Greece

1920 Constitution of the Greek State Railways 1970 OSE only player to manage infrastructure and rail transport (freight and passenger) 2005 Separation of infrastructure management from rail transport activities, through the establishment of TRAINOSE 2007 TRAINOSE becomes operational for freight and passenger transport 2013

Spin - off of maintenance activities of from OSE Constitution of ROSCO; 100% of TRAINOSE and ROSCO shares transferred to HRADF. Launch of the privatization process 2017

Ferrovie dello Stato Italiane SpA buys 100% of TRAINOSE

ROSCO privatization procedure is ongoing The current structure of the Greek railway sector

In September 2017 TRAINOSE entered into the FS Group. RAS (*) Hellenic Republic It’s the first privatization RAEM (*) in the Greek railway Infrastructure sector Management

100% 100%

HRADF OSE

100% 100% 100% 100% ROSCO TRAINOSE GaiaOSE ErgOSE (EESTY)

Gestione Construction Manutenzione Managementpatrimonio of and Railway Rolling Stock rotabili realimmobiliare estate and e maintenance of operator maintenance rollingrotabili stock railway infrastructures

Privatization ongoing (*) Regulatory authorities TRAINOSE – company overview

 TRAINOSE S.A. is the main railway operator in Greece and provides the following services:  traction for the of passengers and freight transport;  organization and development of urban, suburban, regional, and international rail and passenger transport;  transport by bus;  multimodal transport;  logistics and related services;  other ancillary and secondary activities (i.e. consulting services in the field of rail transport) TRAINOSE – rolling stock

1.160 total rolling stock

68 locomotives 53 diesel locomotives 15 electric locomotives

246 Railcars (self propelled) 171 diesel railcars 75 electric railcars

131 Passenger wagons

24 A class coach 84 B class coach 7 couchettes 14 Restaurants 2 bars

715 Freight Wagons 270 open 51 covered 32 wagons for 274 flat wagons 88 tank wagons wagons wagons motor vehicles

6 TRAINOSE acquisition – FS strategic rationale

 the acquisition of TRAINOSE is fully consistent with the strategy of strong international development (passenger transport, logistics, infrastructure) of the FS Group  it represents a first step in the Greek market of local and extra-urban public transport services, which will be the protagonist of further important privatizations in the next months. It could be a good change to manage the urban services of Athens, Thessaloniki and in synergy with the railway offer, best exploiting the FS know how and expertise to integrate road-rail services  it is an opportunity of growth the freight railways transport in the Balkans due to the strategic location of Greece on the corridor TEN-T Core Newtork Orient-East / Med (OEM). TRAINOSE is also servicing the two main Greek ports of Piraeus and Thessaloniki (whose privatization procedure have already been completed), as well as other Greek ports (e.g. Volos, Alexandroupolis). It’s expected a strong growth in traffic volumes to and from Greek ports.  significant infrastructure investments are ongoing (financed from EU funds) that will be activated in the 2018/2020 that will allow an upgrading of railway infrastructure (higher speeds on the network, greater infrastructural capacity, reduction in operating costs) and therefore the modernization and improvement of the transport service TRAINOSE - main contractual relationships

Maintenance Track Access agreement Agreement

GREEK STATE Public Service Rolling Agreement Stock leasing Agreement GAIAOSE Real estate leasing Agreement

12 Rosco and the agreements with the other entities of greek railway sector

ROSCO is the main provider of maintenance and repair services TRAINOSE rolling stock in RSLA RSMA RSLA Greece RSMA Flusso di costi legato alle Flusso di ricavi legato locazioni degli assets immobiliari Gaiose al contratto di manutenzione EESSTY SA Costs(durata flow 30 anni) from Revenuedel materiale rotabile flow the leases of real Now it offers its (durata 10 anni) from the estate assets services, maintenance Gaiose (workshops and exclusively, to the contract depos - duration of rolling stock 30 years) main Greek (duration 5+5 railway operator, years) TRAINOSE, acquired by FS in September 2017 ROSC0 – company overview

Company description

 ROSCO was established in 2013 as an independent corporate entity following the spin-off of the rolling stock maintenance unit of OSE.  ROSCO is uniquely positioned in the Greek market, being the only rolling stock maintenance provider for all types of rolling stock, including electric and diesel locomotives.  ROSCO has entered into a number of long-term lease contracts for the assets (workshops and rail depots) it operates from GaiaOSE.  ROSCO has a 10-year contract (5+5) ending in 2027, for the maintenance of the rolling stock operated by TRAINOSE, the sole operator in the Greek market now

Main services

 Core activities include the provision of services relating to the maintenance, repair, reconstruction and preventive maintenance of rolling stock, other rail materials and other track-based modes.  Day-to-day/light maintenance services (e.g. servicing, inspection, examination and repair of defects, scheduled repairs to machines, and scheduled replacement of consumable items of the rolling stock) are undertaken in the rail depots. Rosco privatization procedure - timetable

DATE

Jul, 21 2016 Relaunch of the Trainose privatization procedure

Oct, 17 2016 After submission Expression of Interess, FS is qualified for the next phase of the procedure

Oct, 31 2016 Launch due diligence process

Dec, 6 2017 Trainose replaces FS as qualified bidder

Mar, 6 2018 Trainose submits the Binding Offer

Binding Offer evaluation process is currently in progress April, 26 2018 TRAINOSE submits its improved Binfing Offer Rosco acquisition – FS strategic rationale

 Value creation through the vertical integration of one of the key suppliers of TRAINOSE to take advantage of the strategic and economic benefits connected to the evident industrial synergies existing between two companies. TRAINOSE can immediately manage the inefficiencies of the current Rolling Stock Maintenance Agreement (RSMA)  An efficient and high quality maintenance service is an essential part of the Greek railway sector development to improve services and fully capitalizing on the capacity which will be available when the Athens – Thessaloniki infrastructure works will be completed. The acquisition of Rosco involves additional AV investments (500 M€)  Such integration is essential to consolidating the Group's presence in Greece and in the Balkans area; further development of the Greek network on the main communication axes (Athens - Thessaloniki, the Orient/East-Med corridor towards the Bulgarian border as well as the connections to Patras and Igoumenitsa) involves an increase of the railway offer which, for the part not covered by new rolling stock, will imply the need for further maintenance activities  Successful integration of Rosco by FS TRAINOSE would allow the reconstruction of the Greek railway sector in a more modern and efficient way. There will be evident benefits for Greece in terms of railway security, more jobs, new , more effective and efficient railway services. So, Greece can be really going to be competitive on an international level The Greek railway network in international connections - Orient / East – Med corridor

The Orient / East-Med corridor (OEM) links the ports of the North Sea, the Baltic, the Black Sea and the Mediterranean to optimize - via inland - the use of the relevant motorways of the sea. The objective of the European Union - which finances the infrastructure projects related to this corridor - is the development of multimodal connections between Northern Germany, the Czech Republic, the Pannonian region and South-East Europe, extended to Greece and Cyprus.

The OEM corridor includes all the most important lines of the Greek railway network, ie the North- South axis between Athens, Thessaloniki and the Bulgarian border, as well as links to Patras and Igoumenitsa (only partially completed)

Approximately 1,068 km of the railway line of the OEM corridor are in Greece, i.e. 18% of the total

Some lines (Kalambaka - Igoumenitsa and Kiato - Patras) and road-rail terminals provided by the OEM are in Greek territory are being planned (Thessa- loniki and Patras) and/or construction (Thriassio)

Source: Study on the Orient / East-Med Core Network Corridor, DG MOVE, European Commission - Contractor: iC / ITC / Panteia / Railistics / SYSTEMA / Prodex / UPB / PwC Infrastructure to be

SEPTEMBER 2019 * ATHENS – THESSALONIKI : W + ETCS1, max speed 200 KM/H O CAPACITY 5 TIMES OF 2017 R K FEBRUARY 2019 * S ATHENS – THESSALONIKI : + SIGNALLING & I N TELECOMMANDER SEPTEMBER 2018 * P ATHENS – THESSALONIKI : R DOUBLE LINE ELECTRIFIED O CAPACITY 3 TIME OF 2017 G R APRIL 2018 * E ATHENS – LIANOKLADI : S DOUBLE LINE ELECTRIFIED S

* According to OSE Project: new service Athens - Theessaloniki

The project includes:

• realization of a new commercial market service between Athens and Thessaloniki; • reduction of travel time from 6h30m to less than 4h using new trains to be competitive (mainly) to the plane; • improvement of quality standards (cleaning, punctuality, information and comfort); • objective 2018: showcase of the first trial service from Athens to Thessaloniki in third quarter;

The constraints: • completion of the electrification and doubling of the entire section scheduled for the end of June 2018 (Exogenous factor; It depends on OSE); • completion of the telecomanding and signaling expected for January 2019 (Exogenous factor; It depends on OSE); • upgrading of maintenance facilities to the new rolling stock; • qualification and certification for train drivers and maintenance personnel. Freight Transport – International and Domestic

st Ton/km per year 2014 - 2017 Ton/km per 1 quarter 2014 - 2018 120.000.000 400.000.000

350.000.000 100.000.000

300.000.000 80.000.000 250.000.000 60.000.000 200.000.000

150.000.000 40.000.000 100.000.000 20.000.000 50.000.000

0 0 2014 2015 2016 2017 2014 2015 2016 2017 2018

INTERNATIONAL DOMESTIC TOTAL INTERNATIONAL DOMESTIC TOTAL

20 Container and Conventional Transport - per border station

Arrivals per year 2014 - 2017 Departures per year 2014 -2017

120.000.000 120.000.000

100.000.000 100.000.000

80.000.000 80.000.000

60.000.000 60.000.000

40.000.000 40.000.000

20.000.000 20.000.000

0 0 Container Container Container Container Container Container Container Container Conventional Conventional Conventional Conventional Conventional Conventional Conventional Conventional

2014 2015 2016 2017 2014 2015 2016 2017

GEVGELIJA KULATA PYTHION SVILENGRAD GEVGELIJA KULATA PYTHION

21 Container and Conventional Transport - per border station

Arrivals per 1st quarter 2014 - 2018 Departures per 1st quarter 2014 - 2018 45.000.000 45.000.000

40.000.000 40.000.000

35.000.000 35.000.000

30.000.000 30.000.000

25.000.000 25.000.000

20.000.000 20.000.000

15.000.000 15.000.000 10.000.000 10.000.000 5.000.000 5.000.000 0 0 Container Container Container Container Container Container Container Container Container Container Conventional Conventional Conventional Conventional Conventional Conventional Conventional Conventional Conventional Conventional 2014 2015 2016 2017 2018 2014 2015 2016 2017 2018 GEVGELIJA KULATA PYTHION TRANSIT SVILENGRAD GEVGELIJA KULATA

22 Evolution of transported volumes – Ton/km

Ton/km (x1.000.000) per year (*)

(*) under the following preconditions:  completion of infrastructure works in the Athens – Thessaloniki axis,  development of logistics activities,  ensuring the required rolling stock,  ensuring the required number of staff in the specialties of train drivers and freight dispatchers, as well as the formation of the specialty of car inspectors.

23 Growth potential

TRAINOSE has a high potential for growth in freight transport:

•Doubling forecasts of container traffic to/from the ports of Piraeus and Thessaloniki

• Good positioning of these ports, connected through the international corridor TEN-T Orient-East Med with Western and Central Europe, the Balkans and the Eastern Mediterranean

• completion of Thriasio logistics center (inner harbour of Piraeus) with the possibility for TRAINOSE to exploit two intermodal areas

24 Thank You for your attention