Economic and industrial dynamics, environmental and social performance of a company in continuous dialogue with its stakeholders

The 2017 Sustainability Report expresses, in a clear and transparent manner, the commitment to pursue the vision represented in the 2017-2026 Industrial Plan: transforming the Group into a mobility company of the future capable of operating in compliance with the principles of sustainability, whilst maintaining the highest levels of ethics and integrity.

This commitment is also demonstrated by the adhesion, in August 2017, to the United Nations' Global Compact, which establishes the Group's participation in the process of creating an inclusive and sustainable global economy, through the integration of the ten principles of the Global Compact in daily strategy and action.

The FS Group, in 2017, was the top investor at the first industrial level in Italy. With an economic volume of € 5.6 billion, it has contributed to strengthening the economic development of the country, generating almost 100,000 induced jobs, estimated according to ISTAT parameters. The distributed economic value, consisting mainly of the total operating costs for goods and services and for the payment of personnel, was € 7.2 billion.

The FS Italiane Group recorded a net profit of 552 million euros with an EBITDA of 2.3 billion euros, thanks to actions that have given substance to the development of integrated mobility, such as agreements with other transport companies. The leading company is Trenitalia, followed by the Netinera group, controlled by FS Italiane in Germany. Revenues from transport services amounted to 7.1 billion euros.

Accomplishments in the infrastructure sector were also of note with the leadership of the Rete Ferroviaria Italiana, followed by Italferr in engineering. FY 2017 closed with over 4.4 billion euros spent and calls for tenders published for around 7.5 billion euros. In 2017 Italferr, in addition to taking over the work of the third pass replacing the General Contractor, completed construction activities on over 30 infrastructure projects throughout the country. Iron works in the South also came alive with the new Naples Afragola station and progress on the construction and authorization process of important lots on both the Naples-Bari line and in Sicily.

In 2017 the FS Italiane Group obtained significant national and international results: the pursuit, on a voluntary basis, of the Single Anti-Corruption Framework articulated on model 231; the introduction of a digital platform to evaluate the sustainability profile of partner suppliers; and the issuance at the European level of the first Green Bond (duration 6 years, 600 million euro) for the purchase of trains.

FS Italiane, for the fourth consecutive year, got first place in the Best Employer of Choice ranking. Recruitment was significant: 4,379 hires (23% women). The company also started activities to raise awareness, and point young female students towards, "STEM" studies (Science, Technology, Engineering and Mathematics) and Employer branding activities; over 8,000 young people guided in 2017, to attract, train, and select students and recent graduates and assist in their studies of collective, integrated, and shared mobility.

Results that allow all Group employees to be proud of the important achievements in the process of creating value for all relevant stakeholders, for the community, and for the Italian territory.

The 2017 Sustainability Report was prepared in compliance with "GRI Sustainability Reporting Standards", defined in 2016 by the Global Reporting Initiative (GRI), according to the "Comprehensive" reporting option.