Investments As noted elsewhere, the COVID-19 pandemic heavily affected 2020 around the world. Investments were, alongside consumption, one of the drivers of the recovery in Italy in the third quarter (gross capital expenditure +31.3% on the previous quarter), enabling a return to pre-crisis levels. In particular, excluding construction, investments in Italy posted a quarter-on-quarter gain of roughly 20% in Q3. However, because of the estimated drop in the fourth quarter, substantially tied to the “second wave” of the pandemic, the annual contraction in investments, excluding construction, should come to 8.9%. Despite this context, the FS Italiane group managed to ensure the continuity of investment development and, in line with its investment trend since 2012, maintained an average capital expenditure/depreciation ratio greater than 1 in 2020, securing not only the replacement of assets which become obsolete from one year to the next but also steady growth. Indeed, investment spending rose again in 2020, confirming the group’s standing as the largest investor in Italy, as it continues to support the development and renewal of transport, infrastructure and logistics. In short, despite the significant difficulties of the scenario in the wake of the pandemic, total capital expenditure by the FS Italiane group exceeded €6.5 billion in 2020. The precise figure is €6,693 million, €2,341 million of which self-financed and €4,352 million from government sources, for a decrease of just barely 3.6% on 2019.
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The group’s capital expenditure entailed developing and managing volumes of roughly €9 billion in 2020 2, 98% of which in Italy (+5% on the €8.5 billion at 2019 year end 3). In addition to the consolidated investments described above, capital expenditure includes the investments made by Anas S.p.A. and FSE S.p.A., recognised in accordance with IFRIC 12 (approximately €2 billion), while the remainder is comprised of the investments of unconsolidated special-purpose vehicles (e.g., TELT, BBT, etc.). 3 Capital expenditure in 2019 has been restated with respect to the 2019 financial statements. For the purposes of a consistent comparison with the 2020 balance, contractual advances granted in 2019 have been included in capital expenditure for that year (€381 million). As noted, this restatement was necessary to make the caption comparable to the 2020 caption, which saw a significant increase in advances (totalling €633 million) partly due to Law no. 77 of 17 July 2020. 2
Annual report highlights
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