FS Italiane Green Bond programme update Investor Presentation June 2019 CONTENTSINDICE 1 Ferrovie dello Stato Italiane Group Overview 2 Operations and Industry Overview 3 Corporate Sustainability 4 Sustainable Finance – Green Bond Programme 5 Financial Overview 6 Contacts 2 Disclaimer IMPORTANT NOTICE – STRICTLY CONFIDENTIAL By accessing this investor presentation, you agree to be bound by the following limitations. This presentation has been prepared by Ferrovie dello Stato Italiane S.p.A, is the sole responsibility of Ferrovie dello Stato Italiane S.p.A.. The information set out herein may be subject to updating, revision, verification and amendment and such information may change materially. Ferrovie dello Stato Italiane S.p.A. is under no obligation to update or keep current the information contained in this presentation or in the presentation to which it relates and any opinions expressed in them is subject to change without notice. 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Any such forward-looking statements in this presentation will speak only as at the date of this presentation and Ferrovie dello Stato Italiane S.p.A. assumes no obligation to update or provide any additional information in relation to such forward-looking statements. 3 Ferrovie dello Stato Italiane Group Overview FS Group in a snapshot Ferrovie dello Stato Italiane SpA (“FS” or the “Issuer”) – 100% Italian State owned – is the holding company of the Italian railway group (FS Group). As one of the largest industrial groups in the country, it manages rail and road networks and transport services by rail and bus both passenger and freight, contributing to develop integrated mobility and logistics in Italy and abroad. 100% Coordination and control of the whole industrial process INFRASTRUCTURE TRANSPORT SERVICES: STATIONS AND REAL BUSINESS SUPPORT INFRASTRUCTURE OPERATION AND Trenitalia ESTATE: SERVICES: DESIGNING: MAINTENANCE: Busitalia GS Rail Italcertifer Italferr Rete Ferroviaria Italiana Mercitalia Centostazioni Rail Fercredit ANAS others FS Sistemi Urbani Ferservizi Group Revenue by segment (2018) ** 2018 Consolidated Highlights (€mn) Real Estate Other services Revenue 12,078** Services 2% 1% EBITDA 2,476 EBITDA Margin 20.5% Infrastructure EBIT 714 39% Transport EBIT Margin 5.9% 58% Net Income 559 Net Invested Capital 48,418 Equity 41,763 Net Financial Debt 6,655 Source: FS 2018 Annual Report **Net of (1,645)m of cons.adj. 5 Benchmarking with European rail players (€b) 2016 2017 2018 Issuer Rating Revenue 8.9 9.3 12.1 Fitch BBB EBITDA margin % 25.7% 25% 20.5% S&P BBB EBIT margin % 10% 7.7% 5.9% (€b) 2016 2017 2018 Issuer Rating Revenue 43.3 45.6 47.1 Fitch AA EBITDA margin % 10.3% 9.9% 9.5% S&P AA- EBIT margin % 3.4% 3.7% 3.8% Moody’s Aa1 (€b)* 2016 2017 2018 Issuer Rating* Revenue 32.3 33.5 33.3 Fitch A+ EBITDA margin % 12.8% 13.7% 12% S&P AA- EBIT margin % 6.6% 7.9% 6.7% Moody’s Aa3 * Results of SNCF Group; Rating of SNCF Mobilites Source: FS, DB, SNCF Annual Reports and rating agencies’ websites 6 Rating Overview RATING COMMENTS FS' rating reflects the: • “very important” role for the Italian government as holding group of the country’s national railway and Corporate the “integral” link with its sole owner (Italian Govt) Rating BBB Outlook • “Strong” business risk profile: «…dominant market position in the Italian transport segment and network concessionaire…the vertical integration combines infrastructure manager and transportation Stand NEGATIVE services and gives earnings operating stability» Alone Credit bbb • “Intermediate” financial risk profile: «FS’s financial metrics remain solid with FFO/debt at ~ 20% in 2016» Profile On November 5th 2018 S&P released a bulletin affirming is premature to assess the impact of the potential Outlook revised on acquisition of Alitalia…and that the strong link with the Italian government provides protection against October 29th 2018 after potential impact same change on Italy In June 2019 FS has been included in the ESG Industry Report Cards for its engagement on the ESG topics among a selection of companies active in the transport sector FS' rating reflects the: Corporate BBB • Full ownership and high integration with the Italian government and its key role for railway Rating transport and mobility in Italy as well as the national infrastructural development Outlook NEGATIVE • Revenue Defensibility: «…a dominant market share in passenger transportation services in Stand Italy and growing operations in UK, Greece and Netherlands» Alone BBB • Rating Financial profile: «…Fitch expects FS to maintain strong operating cash flow generation capacity» Outlook revised on On November 7th 2018 Fitch issued a press release where affirmed that FS Italiane’s offer for the October 5th 2018 after potential acquisition of Alitalia, does not immediately affect the rating of FS same change on Italy 7 Source: S&P and Fitch reports. Please refer to the rating agencies’ websites for further information. Key Operating Data Long-haul transport - market Long-haul transport – Public Regional transport Trasporto Long Haul - Universaleservices contribuito - “Frecce” Service Contract 2017 4.239 2018 4.491 2017 26.769 2018 31.683 Trasporto Long Haul - Mercato Trasporto Long Haul - Universale contribuito Trasporto Short Haul 2017 2017 16.643 2017 4.239 23.614 2018 23.911 2018 17.213 2018 4.491 2017 26.769 2017 63.645 2017 206.643 2018 66.479 2018 31.683 2018 209.221 Trasporto Long Haul - Mercato Road transport* Network Infrastructure Cargo transport 2017 16.643 2018 44,000 km 17.213 Railway network Road network 2017 63.645 2018 66.479 Trasporto merci* Trasporto su gomma * 2017 2.333 10.967 2017 22.659 2018 2.429 16,781 km 10.143 26.000 km of roads and 2018 21.335 2017 153.332 2018 192.372 1,467 km HS tracks 1,300 km of highways Tonnellate Km - milioni Tons Km total - million Tons Km abroad - million Tonnellate Km di cui territorio estero- milioni Passengers - km million Trains\Bus - km thousand (*) passengers-km of road transport do not include Qbuzz traffic volume Source: FS 2018 Annual Report 8 17.554 2017 43.358 17.081 2018 41.721 Treni Km - migliaia Treni Km di cui territorio estero - migliaia Operations and Industry Overview Transport Trenitalia: rail passenger transport in Italy and abroad Key highlights Financial highlights • Trenitalia is one of the leading railway operators in Europe €mn 2017 2018 • Everyday manages about 9,000 trains and each year transports c.