The 2022-2031 strategic and business plan

(102-14, 102-15)

THE PANDEMIC HAS CAUSED A DRAMATIC OPERATIONAL AND STRATEGIC DISRUPTION WHILE ALSO CREATING THE OPPORTUNITY TO BEGIN A RESILIENCE PROCESS FROM WHICH WE WILL EMERGE STRONGER THAN BEFORE, HAVING OVERCOME THE UNCERTAINTY AND HARNESSED THE EXPERIENCE GAINED, OUTLINING THE ROLE THAT THE FS ITALIANE GROUP CAN PLAY WITHIN THE COUNTRY.

The pandemic has caused a dramatic operational and strategic disruption while also creating the opportunity to begin a resilience process from which we will emerge stronger than before, having overcome the uncertainty and harnessed the experience gained, outlining the role that the FS Italiane Group can play within the country. With its 2022-2031 business plan, the Group aims to implement a system of resilient infrastructure, sustainable mobility and integrated logistics, leveraging various factors: * making national rail and road infrastructural investments; * recovering and subsequently developing pre-Covid (passenger and freight) traffic volumes, also via suitable repositioning and stimulation actions; * placing renewed focus on the core business, meticulously overseeing service quality; * promoting increasingly more sustainable mobility and logistics services; * developing systems aimed at large-scale self-production of energy from renewable sources; * creating synergies between the various transport systems to foster intermodal transport

Switching from the historical logic of cost cutting and operating efficiency to a logic of creating value for all stakeholders will need a shift in mindset, facilitated by a change management process which will guide the Group’s organisational transformation by defining the following business hubs:

Infrastructure: integrated, resilient physical infrastructure and engineering services to step up investments, also via suitable support provided along the chain, and creating rail-road synergies to foster the modal shift of passenger and freight transport;

Passengers: multimodal, customised (commuter, corporate and leisure) passenger services focused on creating value and top quality services;

Logistics: sustainable, integrated logistics, setting up a Europe-wide intermodal transport operator to boost the share of railways in modal distribution, also by coordinating with terminals and offering sustainable freight transport products;

Urban: urban regeneration and first/last mile intermodal and logistics solutions in urban areas. The organisational restructuring will entail new strategic actions which will define unique, coordinated safeguards for managing the Group’s portfolio of international activities, for managing energy issues - aiming to reduce the Group’s CO2 emissions and dependency on external energy sources (via energy efficiency, developing new plants for self-production of electricity, sourcing green energy from external sources for the remaining part, phasing out fossil fuels) - and, finally, for managing and developing shared services to support the core business. Playing a key role in the collective sustainable mobility of the future also via sustainable procurement management and remodelling production cycles to boost the circular economy. The underlying factors for such transformation are digital infrastructure, by building a centre of excellence to make sure that digital investments meet business needs and help develop platforms to connect people and freight, and our people, with ad hoc programmes created to enhance and develop their expertise.